by Gary Mintchell | Oct 20, 2017 | Commentary, News
Steve Levine writing in Axios Future of Work notes:
For many years, the economic rules were supported by both common sense and the data: When unemployment falls, wages rise soon after. But since the turn of the century and before, that relationship has broken down across the developed world, according to data from the OECD.
Stagnant wages aren’t just an American problem: Workers in the wealthier nations are facing similar headwinds, like declining union membership, increased competition from foreign workers in a global marketplace, and slow productivity growth. But no one knows precisely why economics are failing to observe the traditional supply-and-demand rules.
Gary’s descriptive take:
For years political and managerial attitudes have coalesced around the idea of driving down wages. Levine mentions declining union membership, for example. The political aspect was to break union power in elections toward electing Democrat candidates. Reagan recognized in the 80s (and Trump capitalized in the last election) that white male union members would vote conservative for social reasons.
I keep watching elections for years and seldom see a definitive correlation of votes and economic benefit. People surprisingly often vote against their economic benefit in favor of voting for emotional, social causes.
Twice this month I have been at technology conferences (Emerson Automation and Dell Technologies) where a top executive pronounces that the era of using technology for efficiency is over. We have likely achieved as much reduction in the workforce that will allow us to remain viable.
But I believe the mindset in top management ranks remains, “How can we ‘contain’ or drive down wages and salaries.”
Emotions and mindsets change slowly. The mechanistic law of supply and demand is powerful, but the emotional law of squeezing every last penny of cost has been bred in management DNA for 30 years. It won’t go away soon.
Gary’s prescriptive take:
I’m looking for leaders who see growth in more holistic ways. The “rising tide floats all boats” point of view. Better—the idea that all people in the organization contribute to the success of the organization and should share in the rewards.
There are leaders like that. Just too few
by Gary Mintchell | Oct 19, 2017 | Automation, Internet of Things, Podcast
Slowly catching up with podcast / video (you can see these on my YouTube channel and subscribe on YouTube or iTunes) reports on my travels. While I was at the Emerson Global Users Exchange, I sat in a panel session led by Mike Boudreaux on IoT. The session was packed–as are all IoT sessions at conferences.
During Q&A from the audience, people were curious about how to justify IoT projects. Good answers from end user Tom Madilao of Chevron in Singapore and Peter Zornio, CTO of Emerson Automation. Essentially target a proof of concept application with a defined benefit.
Emerson took us on a tour of a new facility with a $10 million training facility during the week. Fascinating. Wish I could have videoed it–but photos were not allowed.
by Gary Mintchell | Oct 18, 2017 | Internet of Things, Operations Management, Software
There are two types of people in industry—operations technology and information technology. God forbid if they should actually talk with each other.
Everywhere I go there is talk of overcoming the OT/IT divide. Something just crossed my email stream where there was a survey about whether the departments have merged anywhere. They were shocked, shocked I say, that only about 1 in 10 companies have merged the two departments. I think the purveyors of that survey must have been on Mars for the past bunch of years.
These people just have different jobs to do. Different things they are measured on. Different ways they contribute to the common welfare of the corporation. However, the technologies they use are overlapping at an ever greater pace.
Here is a survey that once again reveals what is seemingly a disconnect between IT and OT. But I think that interfacing to ERP systems is non-trivial. I’m actually amazed and heartened by the progress we’ve made to date.
I’d take a look at this survey and consider how far we have come—and yet, how far we still need to go.
IFS has released a primary research study on how the Internet of Things (IoT) affects readiness for digital transformation in industrial companies.
According to survey of 200 IoT decision makers at industrial companies in North America, only 16 percent of respondents consume IoT data in enterprise resource planning (ERP) software. That means 84 percent of industrial companies face a disconnect between data from connected devices and strategic decision making and operations, limiting the digital transformation potential of IoT.
The study posed questions about companies’ degree of IoT sophistication. The study also explores how well their enterprise resource planning (ERP), enterprise asset management (EAM) or field service management (FSM)software prepares them for digital transformation and to consume IoT data within enterprise software.
Respondents were divided into groups including IoT Leaders and IoT Laggards, depending on how well their enterprise software prepared them to consume IoT data—as well as Digital Transformation Leaders and Digital Transformation Laggards depending on how well their enterprise software prepared them for digital transformation.
The two Leaders groups overlapped, with 88 percent of Digital Transformation Leaders also qualifying as IoT Leaders, suggesting IoT is a technology that underpins the loose concept of digital transformation.
Digital Transformation Leaders made more complete use of IoT data than Digital Transformation Laggards; Leaders are almost three times as likely to use IoT data for corporate business intelligence or to monitor performance against service level agreements.
Digital Transformation Leaders were more likely than Digital Transformation Laggards to be able to access IoT data in applications used beyond the plant floor. They were more than four times as lilkely to have access to IoT data in enterprise asset management software, twice as likely than Digital Transformation Laggards to be able to access IoT data in high-value asset performance management software, and almost twice as likely to be able to be able to use IoT data in ERP.
The data suggests a real need for more IoT-enabled enterprise applications designed to put data from networks of connected devices into the context of the business.
In reviewing the findings, IFS Chief Technology Officer for North America, Rick Veague, commented, “Are your planning and maintenance systems robust enough to make real time decisions using IoT-sourced data? Many are facing the reality of having to answer ‘no.’ ”
“Study data suggest that the most common use case for IoT in these industrial settings is condition-based maintenance. The benefits go beyond operational improvements and maintenance cost avoidance,” said Ralph Rio, Vice President of Enterprise Software at ARC Advisory Group. “It increases uptime that provides additional capacity for increased revenue. It also avoids unplanned downtime that interrupts production schedules causing missed shipment dates and customer satisfaction issues. When married to demand and scheduling systems in ERP, IoT becomes a revenue-enhancement tool improving the top line.”
by Gary Mintchell | Oct 18, 2017 | News
Sad news today. I heard the Dick Morley has passed away. Known as the father of the programmable logic controller (PLC), he was an inventor also associated with anti-lock braking systems for autos and floppy discs for computer memory storage.
Later in life he applied his love and knowledge of physics to chocolate of all things. He had a great presentation on the physics of chocolate and then shared some of his product. A great joy.
We had several opportunities for private conversations. I learned something, usually lots of things, every time. Especially I learned about being curious and observant. In 2000, we hung out together for a couple of days and spent some time in a video game arcade. “The future of HMI,” he told me.
Then there were all the kids he and his wife adopted. And tons of stories.
He lived a full life. Rest In Peace.
by Gary Mintchell | Oct 17, 2017 | Operations Management, Software
Schneider Electric Software boosts Asset Performance, pricing model, and cloud offering. They called it a Schneider Electric Software Innovation Summit in San Antonio a couple of weeks ago. But as we know, that part of Schneider Electric is moving over to the new AVEVA which will be 60% owned by Schneider Electric. So, is this the last Schneider Electric Software summit, or will all the new company be absorbed at the conclusion of the buyout period?
I had committed to another conference by the time Schneider announced its software one, so I was not there. They did send news releases and I also talked with a friend who was there in order to gauge a little bit of what was happening. One other thing I find interesting. On the process automation side, they are clearly branding the legacy Foxboro name. On this side, not so much talk about Wonderware and Avantis. So I guess there is still some branding flux on the software side of the business.
Key takeaways: Schneider evidently saw a weakness in its asset performance management offering and has partnered with a European leader to add strength to it. Answering the challenge of a newer competitor regarding pricing for software, Schneider announced expansion of its subscription pricing model. The third larger announcement reflects the growing importance (and acceptance) of the Cloud for IT structure.
Short view of the news:
- Extends Enterprise APM Offering through New Partnership with MaxGrip: Schneider Electric has partnered with leader in Asset Performance Management (APM) software, MaxGrip, to deliver a more comprehensive asset lifecycle management offering. This expanded offering will include assessment services and risk-based maintenance capabilities, helping customers define and execute APM strategies for maximum return on assets.
- Extends Subscription Access Across Industrial Software Portfolio: Schneider Electric has expanded its subscription license model, enabling customers to purchase software licenses a la carte, providing greater value, new benefits and access to more industrial software applications than ever before. Subscription Access is now available when purchasing Engineering, Planning, Operations and Asset Performance, as well as Control and Information software solutions.
- Expands Cloud Platform with New Performance Module: Schneider Electric has announced the continued expansion of its Insight cloud platform, powered by Wonderware Online. The new Insight Performance Module provides Overall Equipment Effectiveness (OEE) monitoring, asset utilization analysis and downtime tracking in the cloud to enable operational efficiency improvement while reducing total cost of ownership.
- Enhances Manufacturing Operations Management Offering for Mining Industry: Schneider Electric announced enhancements to its Manufacturing Operations Management (MOM) solution for the Mining industry. By introducing real-time production accounting and inventory management, the enhanced solution will improve decision support, planning and reporting capabilities for mining companies, enabling them to meet their digital transformation goals.
- Powers Roy Hill’s Remote Operations Center to Drive Digital Strategy: Schneider Electric announced the success achieved at independent iron ore operation in Western Australia – Roy Hill. By implementing Schneider Electric’s Mining industry software solution, Roy Hill has been able to consolidate end-to-end operational visibility and optimize its mining value chain.
- Drives Digital Transformation in Food & Beverage with New Industry Solutions: Schneider Electric announced three new solutions – Energy Performance, Advanced Process Control and Label Assurance – all aimed at solving industry challenges from growing environmental and sustainability regulations, higher energy costs, consumer demands and product quality and safety standards. The solutions empower F&B manufacturers to simultaneously improve efficiency, quality and performance by delivering real-time visibility, control and intelligence across operations and functional areas.
APM Offering
Schneider Electric announced a new partnership with MaxGrip that will enable a more comprehensive asset lifecycle management offering that includes assessment services and risk-based maintenance capabilities. This expanded offering will be available as part of Schneider Electric’s Enterprise Asset Performance Management (APM) solution.
This solution delivers a comprehensive view of asset health as a first step of an asset reliability strategy that takes into account business context to benchmark current performance and identify areas for improvement. Expert consultants will address a number of key areas of evaluation such as HSE (health, safety and environment), cost control, resource allocation, use of OT/IT systems and asset utilization. These insights will be translated into a pragmatic action plan to optimize production and improve margins while ensuring regulatory compliance.
As a result of this partnership, Schneider Electric can offer enhanced APM capabilities that allow customers to better strategize and optimize maintenance execution according to asset criticality for optimal business results. Risk analysis, what if analysis and asset management strategic review can provide detailed insight into asset reliability and performance, facilitating long-term strategic planning. Users can optimize operations by eliminating reoccurring incidents with root cause analysis, inventory management and strategy simulations to identify hidden inefficiency and drive value across the enterprise. An extensive library of asset reliability data and templates allows up to 90% faster time to deployment.
Subscription Access Across Industrial Software Portfolio
An expansion of the company’s subscription license model – Subscription Access – includes greater value, new benefits and access to more industrial software applications. Customers choosing this offering can benefit from reduced upfront costs, ease of license fee management, access to exclusive products, bundled capabilities and a lower total cost of ownership. Subscription Access is now available when purchasing Engineering, Planning, Operations and Asset Performance, as well as Control and Information software solutions.
Expands Cloud Platform with New Performance Module
Continued expansion of its cloud platform, Insight, powered by Wonderware Online, with new Insight Performance module that provides Overall Equipment Effectiveness (OEE) monitoring, asset utilization analysis and downtime tracking in the cloud.
This Software as a Service (SaaS) offering offers the following capabilities:
- Light-weight applications that are easier to install, configure and maintain
- Virtually no on-premise servers or hardware requirement
Enhances Manufacturing Operations Management Offering for Mining Industry
The company announced enhancements to its Manufacturing Operations Management (MOM) solution for the Mining industry. This initiative can help optimize the mining supply chain, drive efficiency and maximize utilization of all operating assets, resulting in better profitability.
This data, when made available to domain-specific decision support tools and integrated with supply chain and enterprise resource planning systems, unlocks new levels of intelligence to drive continuous improvement. Eliminating manually entered production values while breaking down pervasive operational data silos can minimize time, errors and costs associated with manual and duplicate data-entry, further enhancing agility and efficiency.
Select improvements of Schneider Electric Software’s MOM solution for the Mining industry include:
- User selectable point in time feature for ‘Inventory data reprocessing’
- Data reprocessing has improved performance by 4X
- New “Calculated Inventory” feature to define custom calculations on captured inventory data
- Ampla Planner, Gantt Chart usability and user experience enhancements
- Client response times has improved performance by 2X
- Wonderware Online InSight connectivity
Powers Roy Hill’s Remote Operations Center
The company announced the success achieved at Roy Hill, an independent iron ore operation in Western Australia. Roy Hill implemented a Schneider Electric Mining industry software solution to consolidate end-to-end operational visibility and optimize their mining value chain.
Roy Hill built a greenfield iron ore mine and mine process plant in the Pilbara region, a heavy haul railway system from mine-to-port, new port facilities in Port Hedland, and a Remote Operations Center (ROC) in Perth. Each of these infrastructure components were designed to meet its capacity of 55 million tonnes per annum (Mtpa) of iron ore.
Most leading mining companies have historically evolved with organizational silos, usually between mines, processing facilities and logistics. In the age of increasing automation, data, and digitalization, these silos often prevent end-to-end visibility and optimization opportunities to realize resource to market potential. Through its efforts, as no small accomplishment, Roy Hill has been able to avoid these pitfalls with the help of its ecosystem partners, including Schneider Electric.
Roy Hill implemented Schneider Electric’s industrial software offering tailored for the mining industry, which included the following specific solutions:
- Demand Chain Planning and Scheduling (DCPS)
- Inventory Tracking and Quality Management (ITQM)
- Delay Accounting (DA)
- Capacity Simulation Model (Pre-CAPEX Analysis)
Drives Digital Transformation in Food & Beverage
Three new Food and Beverage manufacturing solutions were announced as part of the company’s ongoing effort to drive operational excellence, efficiency and performance while enabling regulatory and food safety compliance.
Food and Beverage and Consumer Packaged Goods manufacturers face a number of challenges, which are potentially impacting profitability. Growing environmental and sustainability related regulations are resulting in higher energy costs. Product yields must continually be improved to meet an increasingly diverse set of consumer demands. Each of these industry challenges must be addressed while maintaining product quality and safety standards to avoid product recalls and ensure continued consumer trust and confidence.
Three new industry solutions from Schneider Electric can help manufacturers to address these challenges:
- Energy Performance – provides improved visibility into energy usage, enabling opportunities to reduce consumption and costs
- Advanced Process Control (APC) – allows manufacturers to improve yield and product quality by minimizing unpredictable variations in the drying process
- Label Assurance – ensures compliance through 100% label inspection checks; reduces recalls
These solutions empower Food and Beverage manufacturers to simultaneously improve efficiency, quality and performance by delivering real-time visibility, control and intelligence across all operations and functional areas.
