by Gary Mintchell | Oct 15, 2015 | Automation, News, Operations Management, Technology, Wireless
This is a long post, but it brings together several of the more important announcements from this week’s conference. I’ve seen bits of this coming as Emerson has moved its message to incorporate asset management over the past couple of years and is now taking the message to an even higher level in the customer organization. I find it interesting that it takes a holistic look at its product portfolio and then bundles it in such a way as to serve a higher purpose at the customer’s business.
Steve Sonnenberg, Emerson EVP and Emerson Process Management president, said during the opening keynote to Emerson Global Users Exchange 2015, “Managers are looking for dramatic improvements. This is not a time to be satisfied to be as good as everyone else. All are talking top quartile performance. What do you do when all the usual approaches no longer work? Top companies are finding all new approaches. “
The phrase of the day was “Top Quartile Companies.”
Then the concept of improvements in project management and execution was introduced. Jim Nyquist, president of Emerson Systems and Solutions business, added, “Projects are in crisis. 65% of industry’s projects over $1 billion are failing. 33% of projects of $500 million. It seems the larger the project the larger the overrun.”
Global market means more competition leading to increases in the scale of projects.
What’s needed to rein in this runaway stage coach? Nyquist declared that design, engineering, and project management need a reset. Budgets need a resent and predictability and reliability must be improved. Top quartile projects are completed at half the cost and half the schedule of 4th quartile companies. “Industry is at inflection point,” he predicted.
Project Certainty
Then he announced the launch of Project Certainty, an innovative technology- and engineering-based approach for improved capital efficiency and more reliable project schedules.
Emerson’s Project Certainty begins with early engagement during engineering and design studies to define project goals and high impact strategies to meet those goals. Despite traditionally accounting for approximately 4 percent of a project investment, automation is revealing unique and repeatable ways to eliminate cost, reduce complexity and accommodate late-stage project changes, beyond the automation discipline.
For example, Project Certainty relies on the right design engineering strategy to eliminate centralized control system room requirements by 70 to 80 percent, and can eliminate piping in some applications up to 50 to 60 percent. Additionally, tens of millions of dollars in capital spare parts can be eliminated through project-wide equipment reliability analysis.
“Project Certainty also tackles complexity by decoupling the dependencies suppliers have on each other, eliminating bottlenecks and allowing concurrent work streams,” said Nyquist. “Likewise, we are addressing the complexity of data and documentation with innovative technologies that provide features like a single source of project data as well as automated documentation.”
Addressing one of the greatest project vulnerabilities, Project Certainty significantly improves project schedule performance. Technologies like Electronic Marshalling with CHARMs, and pervasive wireless field instrumentation are helping project teams accommodate inevitable last-minute design changes without impacting schedule.
“The path to Top Quartile project performance is right in front of us,” said Nyquist. “The technologies and proven methodologies are here. It will take collaboration and commitment to eliminate outdated project approaches and drive change into the industry.”
Data Link
Part of this new environment is Project Data Link, a project engineering environment that helps reduce complexity and accommodate changes in capital projects. As projects become more complex with multiple contractors and stakeholders, Project Data Link helps keep projects off the critical path by efficiently and consistently translating project information, including tag databases and instrument indices, from multiple sources into project deliverables. It mitigates project risk by normalizing specifications into a single data source with traceability and an integrated change-management system.
Project Data Link gives multiple suppliers, engineering firms, and other stakeholders access to project information including specifications related to field devices and the distributed control system (including control logic and configuration). In addition, data provided in various formats are normalized so that all information is available in a single, consolidated standard view.
The integrity of project information is especially important during late project changes. The data link is always up to date, so when a change is initiated Project Data Link automatically reconciles it against what is in the system, identifies what needs to be changed, automatically sends updates to the DeltaV distributed control system and provides an audit trail of what has changed. This saves time and eliminates errors during the critical late stages of the project.
“Moving forward to improve project certainty, Emerson continues to find methods to reduce the risk of project errors, accommodate change and improve engineering efficiency,” said Randall Fong, project technical manager. “We are confident that Project Data Link will help our customers move towards on-budget and on-time projects.”
Smart Commissioning
Here is yet another part of the portfolio of improving products–Smart Commissioning, a technology-enabled process that reduces automation commissioning time and effort. Smart Commissioning helps automation projects meet strict and shifting deadlines by reducing trips to the field, eliminating tasks, and accommodating late project changes. Smart Automation Commissioning builds on advances made possible by the combination of the DeltaV distributed control system (DCS) Electronic Marshalling with CHARMs and AMS Device Manager Software to remove automation from the critical path of projects.
With the release of version 13 software for the DeltaV DCS and AMS Suite, Smart Commissioning brings ease to automation project implementation. From the initial device connections to final system testing, users save money as they shave weeks off the project schedule by reducing time spent on automation commissioning activities.
Upon arrival at a project site, pre-tagged smart devices can be connected immediately to any channel in a nearby junction box — no need to wait for wiring designs to be complete. Smart Commissioning also eliminates potential errors by automatically finding and identifying all smart devices, then binding them to the configuration. To further accelerate implementation, the device configuration is pushed to all devices based on pre-configured templates. Testing is easily and safely done from the control room by using digital communication, requiring no personnel in the field for confirmation.
“With Smart Commissioning, members of the project team can more easily meet tight project timelines and are not hampered by late design changes,” said Mark Howard, vice president of project execution for Emerson Process Management. “Developed based on industry experience, this solution is another step from Emerson toward attaining project certainty for users.”
Projects in Action
Sasol, an international energy and chemical company, has selected Emerson Process Management to help automate its $8.9 billion petrochemical complex in Lake Charles, La., designed to take advantage of abundant, low cost natural gas. The automation project is one of the largest in history awarded to Emerson.
When completed sometime in 2018, the massive petrochemical complex will more than triple Sasol’s chemical production capacity in the United States. The complex includes an ethane cracker that will produce 1.5 million tons of ethylene annually, as well as six chemical manufacturing plants designed to convert the ethylene into a diverse range of chemicals. Ethylene is a key ingredient in the production of plastics, detergents, anti-freeze, and other petrochemical products.
Emerson Process Management implemented a detailed engineering and project execution plan designed to mitigate project risks, lower costs and reduce time to completion, all part of the company’s strategic Project Certainty initiative.
“For a project of this scale, managing budget and schedule risk is paramount,” said Jim Nyquist, group vice president of Emerson. “This is a great example of our Project Certainty initiative. Early engineering and design work is being used to identify opportunities for automation technology to reduce complexity, create project cost savings, and reduce schedule and cost risks. As the project moves into the execution phase, Emerson is well-positioned to implement the design, accommodate late changes and reduce on-site work – all of which speed execution without compromising quality, safety or reliability.”
by Gary Mintchell | Oct 14, 2015 | Automation, News, Operations Management, Technology
Is it possible to remove automation from the critical path of a large process industry project? Not only that, but use automation to shorten the other paths of the project?
That is the goal of the latest thinking from Emerson Process Management–especially the Systems and Solutions business.
I have been at the 2015 edition of the Emerson Global Users Exchange in Denver this week. I have many details to share. I’ll get those on the plane going home this afternoon.
Before I talk about “Project Certainty”, a few thoughts on the conference.
Everyone knows how the oil & gas industry has been hit by falling oil prices (thank you shale and Saudi Arabia). The impact was first apparent in conference in our part of the industry when travel was cut and attendance at the ARC Advisory Group conference dropped. Same here. While this is still a large conference, the impact of travel budget cuts was obvious.
There were lots of sessions and around 2,500 people around, but in a more normal year there probably would have been maybe a thousand more.
But Emerson still unveiled lots of new products and initiatives.
The photo captures Emerson EVP and Emerson Process President Steve Sonnenberg and Emerson Process Systems and Solutions business President Jim Nyquist introducing Project Certainty.
What Emerson has done has been to look at all the technologies introduced and deployed over the past ten years or so and apply to the bigger picture. They have put forth an answer to how can wireless products, electronic marshaling, the CHARMS configurable I/O, and many more help companies shorten the project path if project planners use the ideas from the beginning of planning and design of a project.
The example is SASOL who is building what is in effect eight plants in Louisiana using these ideas and already showing returns.
I’ll have more on this in my next post. But this reveals some solid thinking about customers and needs by the Emerson team.
by Gary Mintchell | Oct 12, 2015 | Automation, Internet of Things, Manufacturing IT, Networking, News, Operations Management, Security, Technology
Cisco held a Global Editors’ Conference during which I was traveling and could not attend. However, here is news gleaned from the press releases and other sources.
Cisco has been building partnerships in the industrial and manufacturing space for quite some time. Emerson partnered as part of its wireless solutions. Rockwell Automation has become a valued partner even reselling Cisco switches and routers in industrially hardened configurations.
Rockwell has also partnered with Fanuc, the robot and CNC supplier. The primary reason for the partnership I would guess would be that each helps the other penetrate more deeply into some large accounts such as GM. However, the Fanuc on the technology front has developed EtherNet/IP connectivity for its products. This enables them to share data on a standard Ethernet network.
Connectivity between Rockwell and Fanuc products along a Cisco Ethernet platform becomes interesting. Indeed, note the announcement below where Fanuc is now partnering directly with Cisco.
Cisco postulates that forty percent of today’s leading companies will be displaced from their market position by digital disruption in the next five years, yet 75 percent of these companies have yet to address this risk by prioritizing their digital strategy, according to research conducted by the Global Center for Digital Business Transformation.
To help customers navigate this important transition. Cisco is introducing four new digital solutions for industries – manufacturing, transportation, utilities, and oil and gas. The solutions aim to help customers connect machines and assets, break through information silos, and digitize data in an integrated way across the business.
Additionally, Cisco is announcing a new, industrial Internet of Things (IoT) security solution. Customers will use the Cisco IoT System Security and professional services from Cisco and partners to mitigate the risk of system disruption – and efficiently assure compliance.
Removing Barriers to Efficiency
To remain competitive, industries like manufacturing, utilities, oil and gas, and transportation need to increase productivity, deliver more value, and create better experiences for customers and end users. Some of the greatest obstacles to efficiency are operational silos. Silos separate people, machines, systems, information, and complete areas of a business; they separate information from operational technology. Breaking through silos with a more holistic and connected architecture connects people, streamlines communication and drives a more agile operation.
Four New Digital Solutions:
- Connected Machines for Digital Manufacturing: A connected architecture that redefines secure, efficient, and visible operations. This solution enables rapid, standards-based, repeatable machine connectivity, and global factory integration while enabling OEM digitization and new business models – including highly secure remote access, monitoring and serviceability of machines. FANUC America and Cisco announced that they intend to implement the solution to enable robot connectivity and analytics for proactive maintenance. At an event in San Jose, high-tech manufacturer Flex outlined how it is already using the Connected Machines solution and FANUC Robots to drive efficiency and quality in its operations. Cisco is also today announcing a series of attractively priced solution bundles to simplify and accelerate infrastructure digitization for customers for the Factory Network, Factory Wireless and Factory Security.
- Smart Connected Pipeline for Digital Oil and Gas: A connected, highly secure architecture that allows oil and gas companies more control over their pipelines, helping to protect assets from accidents or cyber-attacks. Operations are safer, more efficient – and more secure. Schneider Electric and Cisco are collaborating to bring the Smart Connected Pipeline solution to market, and are already working with customers such as Italian multinational oil and gas company, ENI.
- Substation Security for Digital Utilities: A connected and timely architecture that enables highly-secure power grids for reliable, more efficient service across the utilities industry. Now, more than ever, the nation’s power grid needs additional layers of safety and security. Utility companies in North America must comply with the North American Electric Reliability Corporation Critical Infrastructure Protection (NERC/CIP) Version 5 mandated standards. South Carolina utility SCANA will be the first to deploy Cisco’s Substation Security Solution – a solution designed to enable utilities to comply with these regulations.
- Connected Mass Transit for Digital Transportation: A connected architecture that will enable the delivery of greater safety, mobility – and a better passenger experience. Through a converged network architecture that is based on the Cisco IoT System, transit systems can enhance automation, collaboration, video, cloud-to-fog agility and business intelligence. From the management control center to the transit station – onto the roads, the rails, and onboard mass transit vehicles themselves – the Cisco solution puts safety and security first. Situated on the River Danube, the Austrian City of Linz is implementing the solution to streamline operations across its tram network.
- IoT System Security: The IoT System Security product-portfolio helps deliver highly secure connectivity, visibility and control to assure that IoT initiatives deliver competitive advantage for customers across all verticals. The Cisco IoT System Security product portfolio includes IoT-specific security with the introduction of a new, dedicated security appliance (ISA-3000 for application visibility, policy enforcement and threat defense) and a Fog Data Services security solution. With today’s announcement, the IoT network can now act as a sensor and enforcer to provide security policy enforcement within router and switches. It also provides solutions for IoT physical security with video surveillance cameras, physical access control, and video surveillance manager with advanced security analytics. Cisco will continue to expand its IoT System security offering through additional developments and collaboration with key ecosystem partners, including Rockwell Automation.
A Few Quotes
Rick Schneider, North America CEO, FANUC: “Preventing unplanned downtime is a huge savings for our customers and makes the FANUC robots with ZDT a tremendous value. With Cisco, we are helping our customers access this new value and also re-imagining our go-to-market strategy for after-sales service and support. This has the potential to have the biggest impact of anything I’ve seen in my 35-year career.”
Murad Kurwa, Senior Vice President of Engineering, Advanced Engineering Group at Flex: “Cisco’s vision of the power of Industrial IoT was realized through joint collaboration using automation as the enabler. With Universal Mechanical Assembly process partnering with FANUC, we are now able to get data to create a pool of knowledge. This helps us take action through analytics and ultimately leads to a more robust ‘process’ performance – leading to a world class, smart factory.”
Ed Rodden, CIO, SugarCreek: “We are using Cisco’s Connected Machines solution as we build our new 418,000 square foot factory of the future. Cisco’s new Industrial IoT platform will provide us the ability to use all our company’s available pieces of data, including video and security, from all kinds of devices and to tie them all together to drive more operational efficiency in the new factory.”
Sujeet Chand, Sr. Vice President & CTO, Rockwell Automation: “The Cisco IoT System Security solution will make an immediate impact for customers by accelerating secure IT-OT convergence with an end-to-end security solution, simplifying compliance and mitigating threat vectors. Together with Cisco, we are helping industrial operations maintain the integrity and confidentially of their network in support of holistic enterprise risk management strategies throughout a Connected Enterprise.”
James Bielstein, CIO, Advanced Manufacturing Deployment for GE’s manufacturing facilities worldwide: “In order to start down the path to becoming a Brilliant Factory, the first step is to deploy a modern IT infrastructure. This infrastructure will give our plants the flexibility and security needed to develop a ‘digital thread’ from product design to shipping. Cisco is part of GE’s Brilliant Factory architecture.”
Georg Linhard, Project Manager for LINZ AG TELEKOM: “We decided to build on our existing Cisco network and channel its agility and simplicity to incorporate new security, mobile, and analytics technologies that help us achieve our goals and gain greater business insight.”
Patrick Albos, SVP, Oil and Gas Segment, Schneider Electric: “The Smart Connected Pipeline brings SCADA and IT infrastructure together in a converged, secure, easy to deploy and use platform, and brings significant business value in optimizing and reducing cost of pipeline operations.”
by Gary Mintchell | Oct 9, 2015 | Marketing
If I haven’t seemed my usual prolific self, business has gotten in the way. Next week I’ll be at Emerson Exchange and life will start getting back to normal.
We constructed this Website to support advertising, but I decided not to directly sell advertising. That despite the fact that page views and click throughs are not bad relative to other sites.
All of a sudden, I got swamped.
Part of my work (hint) is individual research and analysis of pieces of the market. People seem to like my analytical capabilities. I have a couple of contracts that have kept me busy.
My long-time part-time job is assigning soccer referees to high school contests. This year has seen more changes and problems than ever before. I’ve always dealt with sportsmanship issues, but this past week has just about seen a record.
I also work with companies on various aspects of marketing–social media, inbound ideas, messaging, focus points (another hint). Some of that picked up.
Finally, I began to do a little angel investing. One of my investments needed marketing help–so, there I am learning the consumer side of Facebook for marketing. Check out High Grounds Cafe on Facebook.
Looking forward to some good industry news from Denver next week. Maybe I can try stirring up something that I didn’t from Sacramento a couple of weeks ago. I also have a pile of stuff to digest, analyze and report on. Coming soon!
Have a great fall weekend (or spring for my Brazilian friends).
by Gary Mintchell | Oct 2, 2015 | Leadership
On my other blog, I write about leadership regularly on Fridays. I saw an article that came through an email newsletter that spurred some thinking. See if you relate to this.
You got shipped off to some type of leadership training. Maybe it was for work. Maybe for church. Maybe for another type of organization.
You attended the training. It was long. The coffee was less than satisfactory. The pastries were stale. The leader was pumped up on something that made him or her optimistic to the point of causing gagging. You recorded a bunch of cute sayings from old leaders in your conference notebook. The talks seemed like they belonged in some sort of old-fashioned tent revival meeting.
You went home. The boss asks what you learned. You show her the notebook with notes.
Nothing changes.
I have been to so many of these that I’m lucky to be able to lead a kid to a candy store!
So the article title on the email newsletter caught my eye. Why Leadership Training Is So Much BS. It is in a manufacturing trade journal called Industry Week written by an acquaintance, Steve Minton. He interviewed Jeffrey Pfeffer author of Leadership B.S.: Fixing Workplaces and Careers One Truth at a Time (Harper Business, September 2015). I’ll have to buy the book, now. Maybe I can score an interview.
Minton writes:
“But a steady diet of inspiration fables, Pfeffer warns, also misleads and does little to improve organizations.” He contrasts the state of leadership training with medical education, which strives to base its teaching on carefully measured studies and their results.
“No wonder medical science has made significant strides in treating many diseases while leadership as it is practiced daily all over the world has continued to produce a lot of disengaged, dissatisfied, and disaffected employees,” he writes.
What can businesses do to improve their leadership development efforts? Pfeffer told IndustryWeek that companies first need to change their evaluation criteria. Too much development work either is not evaluated or evaluated on the basis of enjoyment of the course.
“What are we trying to accomplish in leadership development? If we are trying to attain higher levels of employee engagement, higher levels of trust in leaders, higher levels of job satisfaction, lower levels of turnover, more people succeeding and having more people ready for leadership positions, then those are criteria you ought to use to evaluate your efforts,” he stresses, “not whether or not people had a good time, whether or not they liked the donuts, whether or not they thought the speaker was inspiring.”
Companies must also have people teaching these programs who have at least some expertise in leadership, he adds.
I continue to see people go off to leadership training only to memorize stories and tips. Putting the knowledge into practice is left to chance.
Thinking about various leadership training experiences I’ve had, I’d have to agree about using some sort of science. There was a class in 1981 that has stayed with me–and experience has proved it over again. The trainer displayed a 2×2 matrix. Feel for people (good, poor) versus Intellectual control of emotions (good, poor). Top performing leaders? Feel for people didn’t matter much. Intellectual control of emotions was the key ingredient.
Other than that, I’ve found that better leadership training is done in smaller groups over time. This allows time for trial and error and feedback.
Think Yoda teaching the young Jedi Luke Skywalker.
Find your Yoda. Or, find your Luke.
Me? I’m looking for another Luke to bring along.
