AI Research For Tomorrow’s Production

While at the Hannover Messe Preview last week in Germany, I talked with the representatives of a German consortium with the interesting name of “it’s OWL”. Following are some thoughts from the various organizations that compose the consortium.

Intelligent production and new business models

Artificial Intelligence is of crucial importance for the competitiveness of industry. In the Leading-Edge Cluster it’s OWL six research institutes cooperate with more than 100 companies to develop practical solutions for small and medium-sized businesses. At the OWL joint stand (Hall 7, A12) over 40 exhibitors will demonstrate applications in the areas of machine diagnostics, predictive maintenance, process optimization, and robotics.

Prof. Dr. Roman Dumitrescu (Managing Director it’s OWL Clustermanagement GmbH and Director Fraunhofer IEM) explains: “Our research institutes are international leaders in the fields of machine learning, cognitive assistance systems and systems engineering. At our four universities and two Fraunhofer Institutes, 350 researchers are working on over 100 projects to make Artificial Intelligence usable for applications in industrial value creation. With it’s OWL, we bring this expert knowledge into practice. In 2020, we will launch three new strategic initiatives worth 50 million € to unlock the potential for AI in production, product development and the working world for small and medium-sized enterprises.”

In the initiative ‘AI Marketplace’ 20, research institutes and companies are developing a digital platform for Artificial Intelligence in product development. Providers, users, and experts can network and develop solutions on this platform. In the competence centre ‘AI in the working world of industrial SMEs’, 25 partners from industry and science make their knowledge of work structuring in the context of AI available to companies.

Learning machine diagnostics and ‘SmartBox’ for process optimization

The Institute for Industrial Information Technology at the OWL University of Applied Sciences and Arts will present new results for intelligent machine diagnostics at the trade fair. Using a three-phase motor, it will be illustrated how learning algorithms and information fusion can be used to reliably identify, predict, and visualize states of technical systems. Patterns and information hidden in time series signals are learned and presented to the user in an understandable way. Inaccuracies and uncertainties in individual sensors are solved by conflict-reducing information fusion. For example, motors can be used as sensors. Within a network of sensors and other data sources in production plants, motors can measure the “state of health” and analyze the causes of malfunctions via AI. This reduces scrap and saves up to 20 percent in materials.

The ‘SmartBox’ of the Fraunhofer Institute IOSB-INA is a universally applicable solution that identifies anomalies in processes in various production environments on the basis of PROFI-NET data. The solution requires no configuration and learns the process behavior.

With retrofitting solutions of the Fraunhofer Institute, companies can prepare machines and systems in their inventory for Industrie 4.0 applications without major investment expenditure. The spectrum ranges from mobile production data acquisition systems in suitcase format for studies of potential to permanently installable retrofit solutions. Intelligent sensor systems, cloud connections and machine learning methods build the basis for data analysis. This way, processes can be optimised and more transparency, control, planning, safety, and flexibility in production can be achieved.

Cognitive robotics and self-healing in autonomous systems

The Institute of Cognition and Robotics (CoR-Lab) presents a cognitive robotics system for highly flexible industrial production. The potential of model-driven software and system development for cognitive robotics is demonstrated by using the example of automated terminal assembly in switch cabinet construction. For this purpose, machine learning methods for environ- mental perception and object recognition, automated planning algorithms and model-based motion control are integrated into a robotic system. The cell operator is thereby enabled to perform different assembly tasks using reusable and combinable task blocks.

The research project “AI for Autonomous Systems” of the Software Innovation Campus Paderborn aims at achieving self-healing properties of autonomous technical systems based on the principles of natural immune systems. For this purpose, anomalies must be detected at runtime and the underlying causes must be independently diagnosed. Based on the localization it is necessary to plan and implement behavioral adjustments to restore the function. In addition, the security of the systems must be guaranteed at all times and system reliability must be increased. This requires a combination of methods of artificial intelligence, machine learning and biologically inspired algorithms.

Predictive maintenance and digital twin

Within the framework of the ‘BOOST 4.0’ project, the largest European initiative for Big Data in industry, it’s OWL is working with 50 partners from 16 countries on various application scenarios for Big Data in production. it’s OWL focuses on predictive maintenance: thanks to the systematic collection and evaluation of machine data from a hydraulic press and a material conveyor system, it is possible to identify patterns in the production process in a pilot company. The Fraunhofer IEM has provided the technological and methodological basis. And successfully so: over the past two years the prediction of machine failures has been significantly improved in this specific application by means of machine learning methods. The Mean Time To Repair (MTTR) has already been reduced by more than 30 percent. The Mean Time Between Failures (MTBF) is now six times longer than before. A model of the predictive production line can be seen at the stand.

The digital twin is an important prerequisite for increasing the potential for efficiency and productivity in all phases of the machine life cycle. Companies and research institutes are working on the technical infrastructure for digital twins in an it’s OWL project. Digital descriptions and sub-models of machines, products and equipment as well as their interaction over the entire life cycle are now accessible thanks to interoperability. Requirements from the fields of energy and production technology as well as existing Industrie 4.0 standards and IT systems are taken into account. This is expected to result in potential savings of over 50 percent. At the joint stand, Lenze and Phoenix Contact will use typical machine modules to demonstrate how digital twins can be used to exchange information between components, machines, visualisations and digital services across manufacturers. Interoperability proves for the first time how the combination of data can be used to create useful information with added value for different user groups. For example, machine operators and maintenance staff can detect anomalies and receive instructions for troubleshooting.

Connect and get started – production optimization made easy

The cooperation in the Leading-Edge Cluster gives rise to new business ideas that are developed into successful start-ups. For example, Prodaso—a spin-off from Bielefeld University of Applied Sciences—has developed a simple and quickly implementable solution for the acquisition and visualization of machine and production data. The hardware can be connected to a machine in a few minutes via plug-and-play. The machine data is displayed directly in the cloud.

Prodaso has succeeded in solving a central challenge: Until now, networking machines from different manufacturers have been complex and costly. The Prodaso system can be retrofitted to all existing systems, independent of manufacturer and interface. In addition, the start- up also provides automated analysis and optimization tools. This enables companies to detect irregularities and deviations in the process flow at an early stage and to initiate appropriate measures. The company, founded in 2019, has already connected approximately 100 machines at companies in the manufacturing industry.

Software Investments—Looking Beyond the Surface

Software Investments—Looking Beyond the Surface

Rockwell Automation through Blake Moret, chairman and CEO, invested $1 billion in PTC with Moret gaining a seat on the board. The public reason was really to get early information about ThinkWorx, the IIoT product.

The investment valued PTC, a company with $1 billion in sales, at approximately $17 billion. On the surface, we all pondered why.

Speeding up the time, I was able to spend a couple of hours with several people from PTC at last week’s Automation Fair event. This really opened my eyes to the depth and breadth of the ThingWorx offering. There is much technology and usefulness under the hood. This is powerful software.

Now, I understand. Beyond a relationship and most likely some preferential access to ThingWorx and other PTC technologies, I’m surmising that Rockwell Automation can also drop some visualization projects, cut development costs, and utilize the full value of the PTC software. That alone would be a good return on the investment.

Therefore, the most prominent branding at Automation Fair–Powered by PTC.

Revealing more of Rockwell’s piece-at-a-time partnering strategy, it is not using PTC’s CAD and PLM offerings for its digital twin development, but instead it is partnering with ANSYS.

Like I noted in my initial report on Automation Fair, partnering was the centerpiece of news from the event. Looks like it is also the centerpiece of product development. That is most likely financially prudent.

Software Investments—Looking Beyond the Surface

Acquisitions Bolster Incumbents Further Consolidate Industry

The IT architecture of industrial / manufacturing applications increasingly boosts the role of cloud and edge. These technologies have become core to Industrial Internet of Things (IIoT) and improved Software as a Service (SaaS).

These recent acquisition news items reflect the acceleration of the trend. One is from Siemens and the other PTC.

Siemens plans acquisition of Edge technology

In brief:

  • Siemens further expands its digitalization portfolio for industry
  • Technology basis is the Docker IT standard
  • Siemens Industrial Edge ecosystem enables easy and flexible use of Edge apps

Siemens is planning the acquisition of Edge technology from the US company Pixeom. With this action, Siemens is strengthening its Industrial Edge portfolio by adding software components for Edge runtime and for device management. Siemens Industrial Edge provides an ecosystem, which enables the flexible provision and use of apps. This means for example that appropriate apps can analyze data locally at the machine and send relevant data to the higher-level Industrial Edge Management System for global analytics. With this acquisition, Siemens is driving forward the expansion of its Digital Enterprise portfolio and the integration of cutting-edge technologies for the digital transformation of industry.

With the resulting Industrial Edge ecosystem, industrial companies can use production data even more efficiently and react more flexibly to changes in conditions.

Ralf-Michael Franke, CEO of Siemens’ Factory Automation Business Unit, explains: “Cutting edge technologies such as Edge Computing open up new scope for automation. With Siemens Industrial Edge, we are creating an open edge ecosystem which offers benefits for companies of any size.”

Siemens is using Docker standard container technology: the provision of apps in the management system will therefore be just as simple as functional upgrades and updates of Edge devices in the factory from a central point.

Siemens intends to acquire this technology from Pixeom and use it in the Factory Automation Business Unit, which is part of Siemens Digital Industries. Pixeom has sites in San José, California and Udaipur, India and employs 81 people worldwide. Closing of the transaction is planned for the fourth quarter of 2019. Both companies have agreed not to comment on the financial details of the transaction.

PTC Makes SaaS Acquisition

I sat in on the analysts/press conference where PTC president and CEO Jim Heppelmann discussed the reason for this announced acquisition of Onshape, creators of the “first” Software as a Service product development platform. The company had also just released fourth quarter results. PTC has a little more than $1 billion in revenues, with about 45% CAD and 35% PLM. Interestingly, the IoT business contributes just over 10% of revenues.

Onshape’s product development platform unites computer aided design (CAD) with data management and collaboration tools, for approximately $470 million, net of cash acquired. The acquisition is expected to accelerate PTC’s ability to attract new customers with a SaaS-based product offering and position the company to capitalize on the inevitable industry transition to SaaS. Heppelmann believes that that cloud-based SaaS is the future of CAD. Pending regulatory approval and satisfaction of other closing conditions, the transaction is expected to be completed in November 2019.

Located in Cambridge, MA, Onshape was founded in 2012 by CAD pioneers and tech legends, including Jon Hirschtick, John McEleney, and Dave Corcoran, inventors and former executives of SolidWorks. Onshape has secured more than $150 million in funding from leading venture capital firms and has more than 5,000 subscribers around the world. The company’s software offering is delivered in a SaaS model, making it accessible from any connected location or device, eliminating the need for costly hardware and administrative staff to maintain. Distributed and mobile teams of designers, engineers, and others can benefit from the product’s cloud nature, enabling them to improve collaboration and to dramatically reduce the time needed to bring new products to market – while simultaneously staying current with the latest software.

“PTC has earned a reputation for successfully pursuing new innovations that drive corporate growth,” said Heppelmann. “Building on the strong momentum we have with our on-premises CAD and PLM businesses, we look to our future and see a new growth play with SaaS.”

This acquisition is the logical next step in PTC’s overall evolution to a recurring revenue business model, the first step of which was the company’s successful transition to subscription licensing, completed in January 2019. The SaaS model, while nascent in the CAD and PLM market, is rapidly becoming industry best practice across most other software domains.

“Today, we see small and medium-sized CAD customers in the high-growth part of the CAD market shifting their interest toward SaaS delivery models, and we expect interest from larger customers to grow over time,” continued Heppelmann. “The acquisition of Onshape complements our on-premises business with the industry’s only proven, scalable pure SaaS platform, which we expect will open new CAD and PLM growth opportunities while positioning PTC to be the leader as the market transitions toward the SaaS model.”

For customers, the SaaS model enables faster work, improved collaboration and innovation, with lower up-front costs and with no IT infrastructure to administer and maintain. For software providers, the SaaS model has been proven to generate a more stable and predictable revenue stream, increase customer loyalty as customers benefit from earlier adoption of technology innovations, and enable expansions into new segments and geographies.

“At Onshape, we share PTC’s vision for helping organizations transform the way they develop products,” said Jon Hirschtick, CEO and co-founder, Onshape. “We and PTC believe that the product development industry is nearing the ‘tipping point’ for SaaS adoption of CAD and data management tools. We look forward to empowering the customers we serve with the latest innovations to improve their competitive positions.”

Onshape will operate as a business unit within PTC, with current management reporting directly to Heppelmann.

Interoperability and Open Standards Drive Competition, Innovation

Interoperability and Open Standards Drive Competition, Innovation

Just to reveal a little more of my listening habits, here is a link to an O’Reilly Radar podcast with Cory Doctorow about data, security, interoperability and open standards.

This snippet from the conversation shows some of the urgency:

The first is that the kinds of technologies that have access controls for copyrighted works have gone from these narrow slices (consoles and DVD players) to everything (the car in your driveway). If it has an operating system or a networking stack, it has a copyrighted work in it. Software is copyrightable, and everything has software. Therefore, manufacturers can invoke the DMCA to defend anything they’ve stuck a thin scrim of DRM around, and that defense includes the ability to prevent people from making parts. All they need to do is add a little integrity check, like the ones that have been in printers for forever, that asks, “Is this part an original manufacturer’s part, or is it a third-party part?” Original manufacturer’s parts get used; third-party parts get refused. Because that check restricts access to a copyrighted work, bypassing it is potentially a felony. Car manufacturers use it to lock you into buying original parts.

This is a live issue in a lot of domains. It’s in insulin pumps, it’s in voting machines, it’s in tractors. John Deere locks up the farm data that you generate when you drive your tractor around. If you want to use that data to find out about your soil density and automate your seed broadcasting, you have to buy that data back from John Deere in a bundle with seed from big agribusiness consortia like Monsanto, who license the data from Deere. This metastatic growth is another big change. It’s become really urgent to act now because, in addition to this consumer rights dimension, your ability to add things to your device, take it for independent service, add features, and reconfigure it are all subject to approval from manufacturers.

We are all familiar with lock in. Heck, I’ve been in some product development meetings where some of these things came up. “How can we keep customers with us and away from the competition?” they ask. 

Meanwhile the customer says, “I’m pretty happy with your product now. But what if you start acting like Mylan and its EpiPen? I find myself locked in, and now I am susceptible to frequent price increases. Or what if your quality begins to dip? Not to mention, what is your incentive to innovate any longer?

And so, the inevitable dance continues.

I’m not opposed to big companies with comprehensive product offerings. Sometimes there is a lot of innovation. It takes a lot of money to invest in developing some of these products. Customers appreciate this. They welcome partners. They just want to see competition and alternatives. But sometimes the customer voice gets lost.

Sometimes I look at the situation as an independent analyst/writer not beholden to anyone and decide someone has to speak up for the customer.

GE Opens Advanced Manufacturing Works

GE Opens Advanced Manufacturing Works

The world of advanced manufacturing and digitization continues its steady advance. GE recently announced opening of its first advanced manufacturing facility—a power products manufacturing plant in Greenville, SC.

Interesting that Rockwell Automation just announced a CEO transition leading analysts to look back on Keith Nosbusch’s tenure. Certainly at a time when rivals such as Siemens, Schneider Electric, and, yes, GE have made strong moves in the digital manufacturing space, Rockwell stuck with the “Connected Enterprise.”

That strategy essentially refers to EtherNet/IP networking. I recall my last conversation with CTO Sujeet Chand. I thought maybe he was going to talk about adopting some new technologies. Instead, he introduced a Cisco executive who talked about switches.

I’m en route to Hannover where I have appointments already with Siemens and GE Digital to talk about their digital strategies. Throw in Dell and SAP, and things get interesting.

I think Blake Moret, the next CEO, has his work cut out for him to keep Rockwell Automation relevant in the new age. I’m not usually too critical of Rockwell. I know its reputation for being conservative. Nosbusch stayed the course firmly. I’m starting to think that if Moret doesn’t provide some new directions, there is a risk.

Meanwhile, Back to GE

  • The bullet points from its press release:
    New Facility Will Deploy Best-in-Class Technologies to Accelerate Improvements in Every Aspect of the Manufacturing Process Including Design, Engineering, Product Development, Production, Supply Chain, Distribution and Service and Will Unlock New Productivity and Growth across GE’s Power Portfolio
  • GE Has Invested $73 Million to Date and Will Invest an Additional $327 Million across the GE Power Greenville, S.C., Campus to Boost Innovation and Accelerate the Commercialization of Development of Best-in-Class Technologies for Customers across the Globe
  • Eighty Engineering and Manufacturing Jobs Created with the Facility’s Opening, Expected to Have a Multiplier Effect across the Supply Chain

GE celebrated the grand opening of its new state-of-the-art Advanced Manufacturing Works (AMW) in Greenville as the GE Power business continues to introduce tomorrow’s technologies, today. The announcement comes on the heels of GE’s grand opening of its first additive manufacturing center in Pittsburgh in early April and represents the next step forward in GE’s journey as the world’s premiere digital industrial company.

“The opening of the AMW is a pivotal moment for us. We’re building a skilled workforce and culture that’s devoted to delivering breakthrough innovations that deliver better, faster outcomes for our customers and unlock new productivity and growth.”

GE has invested $73 million in the facility to date and will invest another $327 million across the GE Power Greenville campus over the next several years to drive innovation and the faster development of best-in-class technologies that deliver more value for customers across the globe. At least 80 engineering and manufacturing jobs are being created with the facility’s opening.

GE Power President and CEO Steve Bolze was joined by South Carolina elected leaders for the grand opening of the 125,000-square-foot facility at GE’s Greenville manufacturing campus. The facility broke ground in mid-2014.

“GE is leading the transformation of manufacturing in the power industry, and this facility will ignite the digital industrial revolution for our company and the industry,” said Bolze. “The opening of the AMW is a pivotal moment for us. We’re building a skilled workforce and culture that’s devoted to delivering breakthrough innovations that deliver better, faster outcomes for our customers and unlock new productivity and growth.”

The AMW is GE Power’s first advanced manufacturing facility. The facility will revolutionize the way GE Power designs, creates and improves products by serving as an incubator for the development of advanced manufacturing processes and rapid prototyping of new parts for GE’s energy businesses—Power, Renewable Energy, Oil & Gas and Energy Connections. New techniques and production processes developed at the facility will bring new best-in-class products to global customers quicker than ever.

Advanced manufacturing brings a convergence of the latest technologies together to transform every aspect of the production process to make new, better things, faster. Industrial innovations, from new materials science, 3-D printing (additive manufacturing) and automation to advanced software platforms and robotics are redefining manufacturing for the future.

Advanced manufacturing has a huge and growing significance worldwide. Recent research1 found that nearly 24 million people are already employed in advanced manufacturing industries in the U.S., creating about 19 percent of GDP, and that each job in an advanced manufacturing industry supports another 3.5 jobs through the supply chain.

GE started in Greenville more than 40 years ago with a 340,000-square-foot site. With the latest addition of the AMW, the site has grown close to 1.7 million square feet of factories, offices and laboratories focused on manufacturing advanced products for customers worldwide. GE has more than 3,200 employees in Greenville and has invested more than $500 million in the last five years to bolster critical manufacturing activities housed on the campus. The company has established valuable relationships with local community schools, universities and technical programs to develop new technologies and create a system to support those who are passionate about growing with the industry.
1 The workforce of the future: Advanced manufacturing’s impact on the global economy, April 2016, GE. Authors: John Paul Soltesz, Marni Rutkofsky, Karen Kerr, Marco Annunziata

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