Pandemic Becoming a Trigger for Certain Enterprises to Accelerate Transformation

We only need look out the window to understand that the current situation with keeping people apart to prevent the spread of COVID-19 has slowed commerce and manufacturing to a crawl.

Wind River surveyed a set of executives in China and the US to see what they think the impact of the slowdown and then recovery will be. There are many similarities in outlook, although there are some differences. Wind River attributes most of the difference to the timing of the survey. China was beginning to come out from the shutdown, while the US was in the midst of it.

This is an IT-oriented report, but it is also quite relevant to us all given that operations and information areas are working ever more closely aligned.

[Note for my OT readers: DevOps is a set of practices that combines software development (Dev) and information-technology operations (Ops) which aims to shorten the systems development life cycle and provide continuous delivery with high software quality.]

[Note 2: A subset of DevOps relating specifically to data is called DataOps. See my writing on Hitachi Vantara and HighByte for more on this. This is relatively recent.]

Highlights

  • More than 1 in 3 executives in both the U.S. and China are seeing COVID-19’s impact as impetus to digitally transform their businesses
  • COVID-19 is influencing which technologies will receive increased attention, with enterprises desiring transformation placing 50%+ extra focus on investment in areas such as 5G, containers, and cloud-native technologies.
  • 75% of C-suite, IoT, and DevOps leaders are modifying corporate strategies due to COVID-19.

Wind River, a deliverer of software for the intelligent edge, has issued new research investigating how technology executives—specifically, C-suite leaders and senior executives in areas such as IoT, DevOps, security, and embedded development—from both the U.S. and China are realigning their focus during the COVID-19 pandemic. Their insights are embodied in the Wind River commissioned report titled “COVID-19 and Corporate Strategies in the U.S. and China: A Seismic Event Demanding Change and Action from Top Executives.”

Seismic events can disrupt our focus and thinking and force reassessment of drivers of future business success. The current COVID-19 pandemic is one of those major events producing a worldwide impact, especially given its reverberations on the two largest global economies, the U.S. and China.

“Prior to the pandemic, the vast majority of corporations were looking toward advancing their digital transformation. However, we’ve entered a different landscape that is triggering leaders in DevOps and IoT development to make profound decisions about the speed and nature of their technology investments,” said Kevin Dallas, president and chief executive officer, Wind River. “As we’ve seen from our study, in this COVID-19–shocked world, those most optimistic about the future of their business and the direction of their technology and development investments are the enterprises viewing this as a time to accelerate and even change the nature of that transformation.”

Looking inside the minds of technology executives in major sectors such as telecommunications, healthcare, automotive, aerospace, and manufacturing/industrial provides a view into how leaders are redirecting their focus and accelerating or delaying investments. The report surveyed 400 senior-level technology executives from the U.S. and China at enterprises with revenues ranging from $100 million to $1 billion.

With COVID-19–related challenges creating new pressures, enterprises are rapidly falling into the categories of simply surviving, pivoting to adapt to new realities, or doing nothing. While the U.S. and China are in different phases of the pandemic, in several aspects the responses from each country split in similar ways. More than 1 in 3 executives—39% of U.S. and 43% of Chinese leaders—are focusing on surviving this crisis, while 35% in the U.S. and 33% in China are spurred to make a transformation due to COVID-19.

The enterprises focused on transforming have a much higher propensity to accelerate key technology investments compared to those who are merely surviving. Those with a desire to digitally transform are placing 50%+ extra focus on key investment areas such as 5G, containers, and cloud native. The research findings among these leaders indicate that they understand the core technology components that will be vital for digital transformation. For these enterprises, executives are increasing spend in the following areas:

  • 5G projects: by 63% in China, 37% in the U.S.
  • Cloud-based application development: by 62% in China, 35% in the U.S.
  • AI: by 61% in China, 37% in U.S
  • Container-based development: by 56% in China, 38% in U.S.
  • IoT: by 60% in China, 33% in U.S.
  • Applications at the edge: by 57% in China, 25% in U.S.

As enterprises have had to implement changes to their business processes due to the pandemic, 98% in China and 90% in the U.S. note that their ability to meet customer demands has been impacted. Given recent needs, the interest in growing DevOps practices has risen across enterprises, with executives now placing more importance on DevOps (46% in U.S., 36% in China).

Regardless of region, most enterprises realize that the road ahead will be tough. Fifty percent of enterprises in the U.S. and 77% in China are seeing heavier workloads across their teams. They also anticipate the need to implement major initiatives such as accelerating new business models (83% in U.S., 89% in China) and building in more agile development (82% in U.S., 86% in China).

To tackle these challenges, there is a clear recognition among leaders that they will require transformative focus and skills. Therefore, in order to successfully lead a digital transformation, C-suite leaders and executives in DevOps/DevSecOps and IoT anticipate increased importance in their roles (ranging from 60%+ in the U.S. to 73%+ in China) as their businesses exit COVID-19.

As the world grapples with the disruption caused by COVID-19 and enterprises begin to understand major gaps and the resources required to deliver on customer needs, they must identify the right strategies and experts to help them accelerate a digital transformation and realize long-term success beyond the pandemic.

For information about Wind River’s efforts to support the battle against COVID-19.

Anchor Fabrication Improves Productivity by 200%

My first salaried position in manufacturing after leaving university involved production/inventory control, with some industrial engineering and manufacturing engineering thrown in to keep me busy. Production scheduling efficiently involves juggling many balls in the air keeping people, machines, work-in-process, and inventory balanced and productive.

This was at a department that manufactured a variety of component parts fulfilling the orders of three assembly plants in the organization. This was before widespread use of computers. I managed with a number of hand-written spreadsheets.

Production schedulers for metal fabricators who balance orders from multiple customers processed across many different machines and processes have my sympathy. This is difficult work.

The easiest way is to batch according to order. The problem with this at a manufacturing level is that this may lead to downtime due to frequent changeovers to the equipment to set up for each batch.

A more efficient way to manage this would be to gather the day’s/week’s orders and sort by process type. Then all the pieces processed by Machine A wit a particular process could be processed regardless of whose order it is. The trick to all this is to track the WIP and get all the components sorted by order at the end.

Epicor Software Corp. contacted me about a successful application of its ERP to tackle just such a problem. Anchor Fabrication, a Texas-based one-stop metal fabrication shop. It has improved its productivity by up to 200% through the help of the Epicor ERP solution.

Anchor Fabrication caters to a wide variety of customers with a range of product needs – from plasma- and laser-cutting to machining, welding, and assembly work. Headquartered in Fort Worth, Texas, Anchor Fabrication has more than 1,000,000 square feet of manufacturing space across six facilities.

“We’ve built a reputation within the metal fabrication industry based on our efficiency and ability to quickly execute on a variety of services,” said Hector Robles, VP of manufacturing at Anchor Fabrication. “During site visits, customers often tell us they appreciate our ability to quickly look up almost any particular part’s manufacturing history along with the number of times we’ve built those specific parts.”

Epicor ERP allows Anchor Fabrication to combine all work order data into a single job without the need for manual human entry – ultimately reducing order planning costs by over $100,000 each year.

“Anchor likes to inform employees with the most concise data and the best information possible for every job that goes to the floor. Epicor really helps to keep all that information together in one spot,” said Jason Davis, VP of sales at Anchor Fabrication.

Anchor Fabrication’s rapid delivery of manufacturing orders is due in part to their ability to perform dynamic nesting, made possible by the Epicor ERP platform, which allows the metal shop team to take work orders and perform them concurrently through integration with Service Connect. The software system examines all orders that are assigned to a certain machine and notifies the Anchor Fabrication team if any orders are a fit for simultaneous execution.

“Many metal fabricators only perform a single service – welding, cutting, coating – but Anchor Fabrication saw an opportunity to differentiate themselves from the competition. They’ve strategically positioned themselves as an all-in-one metal fabrication service provider, and as a provider that can complete customer orders faster than single-service competitors,” said Terri Hiskey, VP of global product marketing at Epicor. “We’re very happy to see that our vertical industry specialization and product knowledge and capabilities have enabled Anchor Fabrication to work smarter, not harder – making a marked difference in the company’s business, productivity, and revenue.”

“Epicor can tailor software solutions to fit the needs of the customer,” said Steven Pybus, VP of engineering at Anchor Fabrication.

They didn’t tell me who the production scheduling team was, but they should all be the heroes of this story for finding and implementing the wise use of manufacturing IT software to meet many company objectives.

Podcast 205 — Digital Transformation is a Journey

My new podcast is live.

When I would go to NI Week, National Instruments would always talk about solving big problems. I began to approach the history of digital transformation that same way. GM had a problem involving the changeover of machines from one model year to the next. It took too long to change the machines due to the relay logic. They went to Odo Struger of Allen-Bradley and Dick Morely who then founded Modicon for a solution. Each built a Programmable Logic Controller (PLC) to solve the problem and the race was on. We can then look at all the digital advances from then to now as the solving of successively more difficult problems. Today we have IoT, data science, edge computing, analytics, visualization, AR, VR. And we go on. It is a journey not a destination.

This podcast it sponsored by Ignition by Inductive Automation

Or it is on YouTube

Benefit of Digital Transformation in Industry

I laid out editorial direction for a magazine I helped to start with two basic ideas: contribute to thought leadership in industrial automation; and, tell stories of intelligent application of automation where the “heroes” of the story were the people doing the work not the products they used.

Seventeen years ago if you asked a company for a success story (you never get the “tried it and failed stories”) the formula was “Joe had a problem; Joe bought this list of products from his supplier; problem was solved and Joe was happy.”

Rockwell Automation has a Digital Transformation group headed by Vice President Keith Higgins. The PR folks sent me a “teaser” for an article about real-world application and benefits of digital transformation attributed to Higgins. I haven’t done many application stories at The Manufacturing Connection, so I jumped at the chance to get a real example for what companies are describing as digital transformation. I sent a bunch of questions. I received the formula company (all companies, not only Rockwell) app story.

However, reading into the story which I’m about to share were some lessons about successes from applying digital technologies and also to temper your enthusiasm lest you picture digital transformation like Clark Kent entering a telephone booth (remember those?) and emerging as Superman. While not so dramatic, nonetheless applying digital technologies can enhance productivity and therefore profitability.

This is a story about Agropur, a North American dairy processing company. Not a small one. It consists of over 3,367 dairy farmers who rely on 37 facilities across North America, processing over 1.5 billion gallons of milk into numerous dairy products, resulting in $5.9 billion in sales each year.

The company’s largest facility in Ontario had legacy industrial technologies which faced operational issues and downtime inhibiting its ability to produce the necessary data to continuously improve operations.

So, problem = downtime + inadequate data collection. Proposed solution = implement a standardized, plant-wide IT platform to collect, analyze, and understandably present data.

Agropur had already invested heavily in industrial technology at its Don Mills, Ontario facility, but none of those solutions have been able to provide it with the seamless data insights it needed to continually improve its operations. Data was not efficiently collected costing more than 2,500 hours per year and what data was collected could not be presented to management in such a way to enable continuous improvement teams.

On top of the data collection issue, the Don Mills facility’s equipment and systems were prone to failure. When the facility went down, it was forced to restore from the latest backup. That was no small feat considering there was no way to determine which of their seven maintenance laptops had the latest backup.

These inefficiencies and challenges drove Agropur to begin a search for a standardized, plant-wide

Rockwell Automation together with Grantek Systems Integration, a Rockwell Automation PartnerNetwork Solution Partner, deployed the new system with Agropur.

The result was an entirely new automation system built from the ground up. The system wasn’t only focused on creating a new way to collect data, it was also focused on overall equipment effectiveness (OEE), performance, capacity and more. From my point of view, the emphasis on OEE was unfortunate, but I guess it worked for the customer.

The technology involved included the Allen-Bradley family of ControlLogix controllers, PowerFlex drives, and PanelVew human machine interface (HMI) hardware from Rockwell Automation. Running FactoryTalk View Site Edition software on a virtualized server, each HMI could establish the standard for all additional software. This system collected data from production and provided information to operators to help them improve operations.

Supervisors decided to use OEE for benchmarking using FactoryTalk Metrics software, which collected performance data to power informed decisions.

With the information solution in place, employees from across the facility could see what was occurring on the plant floor and use that data to make continuous improvements.

Benefits: The Agropur team could eliminate 2,500 hours of manual data collection each year. Additionally, significant hours were saved annually thanks to the ease of managing assets through FactoryTalk software.

As soon as information was available, teams at Agropur deployed a data-driven approach to benchmark whether new hardware would curb the usage of lubricants for the lines. Creating benchmark reports and data-driven estimates of new hardware effectiveness, they were able to reduce lubricant consumption by 30%.

Here’s a benefit that I’m shocked to learn it took all this data collection and visualization investment to figure out. Supervisors seeking to identify opportunities for increasing capacity.discovered that lunches, breaks, and meetings caused more than 33 hours of downtime. Changing schedules turned lost processing time into productivity.

Harting A Partner for Industry 4.0 and IioT

Once again, in lieu of attending Hannover Messe in person, we attended a Web briefing. Harting held this one last week. I picked deeper information about a couple of technologies—especially “single-pair Ethernet (SPE).” It’s hard to do a complete Industrial Internet of Things (IioT) installation without connectors, cables, and the like. Harting has been a leader in this field.

“The industrial arena is undergoing far-reaching change: For Harting, this transformation means leveraging our key technologies and entering into targeted partnerships in order to pool skills and competencies capable of creating new solutions within the framework of our entire technology network,” explained Philip Harting, CEO Harting Technology Group. “Our ultimate goal here is to develop these solutions in larger contexts and create ecosystems that generate significant added value for our customers.”

Small Ethernet Infrastructures

Evolution of the Ethernet connector. Harting turned the RJ45 into the “RJ Industrial”, created modular M12 interfaces with X-coding and PushPull locking, and set the next major milestone in Industrial Ethernet with the miniaturized “ix Industrial interface” – which is 70% smaller than an RJ45, yet significantly more robust. ix Industrial is one of the most important components in the Harting solution portfolio for its All for Ethernet segment.

For more information, check out our Industrial Ethernet Trends 2020 webinar series.

Industrial standard interface for SPE

Users can now make investments with a reassuring measure of security: IEC 63171-6, published on 23 January 2020, sets the basis for future IIoT networks. The international standards bodies ISO/IEC and TIA have declared the IEC 63171-6 interface as the standard for SPE in industrial applications. On this foundation, a comprehensive portfolio for the Single Pair Ethernet market is now emerging.

SPE Industrial Partner Network grows to 20 members

Last year saw the foundation of the bhttps://www.single-pair-ethernet.com. As a registered association, the Network is more than just a loose association of companies with shared interests – it is a strong, legally binding community of partners. Consequently, it provides the security required to implement this new physical layer. All the companies in the network are technology leaders in their own right; between them, they specialise in the various fields needed to strengthen and complete the SPE ecosystem. The common, unifying basis of their work is the international standardisation for SPE infrastructure in accordance with IEC 11801-x, IEEE 802.3 and IEC 63171-6. In the space of just a few months, numerous strong partner companies from various fields of industrial production have expressed their support for IEC 63171-6 and joined the SPE Industrial Partner Network.

Han S: Safe contacting of modular energy storage systems

In Han S, Harting is – for the first time – introducing a special connector for battery storage modules. Global demand for electricity storage systems is booming. The new series meets the technical requirements of the latest standards for stationary energy storage systems (including UL 4128) and offers users optimum safety for the connected units. The single-pole connector solution with a 200A high-current contact is mechanically coded, is coloured red and black for easy identification, and locks intuitively. In this way, Han S enables fast, reliable contacting of storage modules and enables the processing of large volumes.

Han 1A: Miniaturised rectangular connector ideal for networking

The Ethernet networks sensors, machines, controllers, computers and data centres. Harting is now offering interfaces tailored to these applications as part of the miniaturized Han 1A industrial connector series.

The Han 1A features two new inserts for fast and secure data transmission. This can be used to supply end devices with up to 100 Mbit/s Cat. 5 Fast Ethernet for Profinet-based communication; a 10 Gbit/s, Cat. 6A version for High-Speed Ethernet is also available. The latter is used for live camera system applications.

High-performance switch with robust ix Industrial Interface

Imaging processes are becoming increasingly important for quality assurance and monitoring in all industry sectors. New camera technologies offer higher resolution despite their increasingly compact dimensions.

The new eCon 2000GX-I-A unmanaged Ethernet switches from Harting are high-performance Gigabit switches, enabling consistent networking of machine-monitoring and diagnostic systems via ix Industrial.

Focus on user-optimised DC power transmission

One current trend – particularly challenging from a technical perspective – lies in the field of DC power transmission, where demand is forecast to rise sharply. To equip the field of application with the appropriate installation technology, Harting is promoting technology concepts that offer increased personal and plant protection. A novel connector for industrial applications transmits voltages of up to 800V and currents of up to 40A and cannot be removed when under load. In addition to the DC Industries working groups, Harting is also engaged in the activities of the German Commission for Electrical, Electronic & Information Technologies (DKE) geared to drafting new standards. The project is based on cooperation with the SmartFactory KL.

Software solutions for cloud and edge: Partnership with PerFact

Harting are keenly focused on establishing optimal connections between the field level and software solutions in cloud and edge computing. Harting RFID solutions, digital twin, and the MICA edge computing gateway operate at this interface. What’s more, intelligent sensor technology solutions – which ensure seamless data exchange within networks – are also becoming increasingly important.

The partnership with PerFact, which Harting announced at the SPS trade fair in Nuremberg in November 2019, will be expanded in the field of software. PerFact develops customisable modules for servicing, maintenance, logistics and process management as IT solutions for industry.

“The market environment of the MICA edge computer, RFID, and IIoT is developing at an incredibly fast pace. Rapid, agile and entrepreneurial action is imperative,“ emphasized Philip Harting. In this context, the three companies peraMIC, PerFact, and Perinet will be advancing solutions in the field of digitalisation and will be cooperating closely with the Harting Technology Group.

PerFact develops individual, customization modules for service and maintenance, logistics, and process management as IT solutions for industrial clients. Perinet (Berlin) concentrates on the seamless connection of sensors and actuators with IT systems (ERP, for example), in order to improve the transparency and analytical performance throughout the value creation chain.

OSIsoft Launches Edge Data Store as Part of Its Pervasive Data Collection Strategy

In brief: IIoT edge software allows industrial organizations to store and send data from remote assets to PI Server or OSIsoft Cloud Services for full edge-to-cloud connectivity.

The spring “conference season” has either been cancelled or gone virtual. The first virtual conference of the season for me was OSIsoft PI World. I’ve made the trip to San Francisco a couple of times to be there in person, but this year I sat in my office with headphones firmly affixed to my ears.

The “Edge” has been a hot topic for a few years now—mostly from the IT-oriented technology providers that I follow. OSIsoft’s PI is the ubiquitous “system of record” for a huge percentage of the industrial world. This historian database is often used in platforms for moving data from the plant to the enterprise. PI is the bridging step in most cases. The Edge, in our industrial case, often refers to a device serving as a data concentrator from physical devices in the plant or in the field and then as a gateway serving the data to the cloud or to the enterprise.

At the conference, OSIsoft announced general availability of Edge Data Store. With Edge Data Store, customers can remotely monitor critical assets to improve uptime, while minimizing the costs and safety risks associated with manual, in-person inspections.

Edge Data Store is Industrial IoT (IIoT) software that allows operators to collect, store, and access data from assets and sensors in remote environments. Remote edge data can now be easily collected and integrated with primary control network data to create a holistic view of industrial operations. OSIsoft’s customers and partners have deployed Edge Data Store in a variety of settings, including on hardened gateways to monitor personnel safety at sea, track performance of pumps in the field, and optimize the efficiency of large-scale battery solutions around the globe.

To improve the safety of personnel who must work in the dynamic, dangerous environment of the drill floor on offshore rigs, Edge Data Store pilot customer Rolloos turned its CCTV technology into a comprehensive detection system that could track personnel as they entered active zones. Through the Edge Data Store pilot, Rolloos ensured that all data was accessible by offshore operators for immediate decision support and could be streamed onshore for further retrospective analysis.

“We can actually track people from video and can combine that with the output from the equipment data to improve efficiency even more. Then, we can stream it back to shore using the Edge Data Store,” said Martijn Handels, director at Rolloos.

Easy, reliable access to edge data has enabled real-time monitoring of personnel and equipment to improve both employee safety and overall process performance.


“Our pervasive data collection strategy, with support for over 450 industrial protocols, has been utilized by thousands of customers, and we’re supplementing these capabilities with edge connectivity,” said Chris Felts, senior strategic product manager for OSIsoft. “Edge Data Store is a major step toward helping industrial customers capitalize on the promise of IoT and ubiquitous sensing. By supporting both edge to on-premises and edge to cloud data patterns, Edge Data Store provides an easy way for customers to improve operations with full end-to-end visibility.”

Because Edge Data Store shares the same data storage and API technologies as OSIsoft Cloud Services, custom applications developed for the cloud can be used at the edge and vice versa.

The Edge Data Challenge

Industrial IoT and Industry 4.0 initiatives continue to transform critical operations with low-cost sensors and solutions. However, data from remote operations has remained isolated due to poor network connectivity, the difficulty of developing edge solutions that meet both the high standard of critical operations data management, and strict hardware requirements of rugged or remote devices. Valuable remote data is often stranded beyond the reach of automation systems, held up by unreliable network conditions. Edge Data Store overcomes these challenges; the software self-heals after hard reboots from power outages and runs on low-cost, rugged devices with Windows or Linux operating systems.

Edge Data Store provides no-code connectivity to common industrial protocols and can expose the data for use by field technicians or analytics applications. In addition to facing extended loss of connectivity, remote areas are often subject to limited connectivity, where data transfer costs are closely monitored.

For example, snow on a satellite dish could mean that a remote location is disconnected for days at a time, previously leading to data loss or requiring personnel to drive to the asset in harsh conditions. Edge Data Store delivers robust local storage and simple configuration options to optimize bandwidth and send edge data to PI Server or OSIsoft Cloud Services, allowing corporate users to augment existing data sets and drive further analysis.

“Edge technology simultaneously drives centralized knowledge and distributed decision making,” said OSIsoft President Michael Siemer. “For 40 years, OSIsoft has pushed the boundaries of real-time, high fidelity operations data. Edge technologies decentralize information access and empower essential employees to make local decisions for safer, smarter operations.”

Follow this blog

Get a weekly email of all new posts.