by Gary Mintchell | Mar 1, 2017 | Commentary, News
My friends over at the PwC industrial manufacturing practice have taken a look at 2017 industrial manufacturing trends. The report was composed by Marian Mueller, Bobby Bono, Steve Pillsbury, and Barry Misthal. I will summarize here. Check out the link for more in-depth discussion.
I think they have nailed most of the ideas coming up. Some of these will be difficult for suppliers to either swallow or develop. Likewise, customers may not always like increased connectivity back to the supplier. Pay for performance, so far, has not been a winner. Customers begin to think they are paying too much if performance really does increase. Then they want to go back to a fixed price <sigh>.
Six Industrial Manufacturing Trends
1. Leverage data and analytics in a new business model
By upgrading their technical capabilities, industrial manufacturers can bundle a variety of services enabled by connectivity and data, replacing the increasingly outmoded model of selling one big complex machine under warranty and a service agreement for maintenance and repair.
2. Innovate pricing
As technology begins to alter the relationship between industrial manufacturers and their customers, the traditional pricing model for the service contract must be changed as well, from pay-for-product to pay-for-performance. Condition-based maintenance, driven by predictive and interconnected industrial technology, will become commonplace. This should translate into fewer visits from repair technicians. As a result, customers will naturally expect more favorable terms, which can be facilitated by sharing risk.
3. Develop strategic partnerships — carefully
Industrial manufacturers must become more active players in the technology ecosystem, seeking expertise outside the industry in order to develop equipment connectivity, data analysis, and software development that are beyond their current abilities. For example, recognizing that it cannot grow the ecosystem alone, at least one major industrial company has aligned with a wide range of technology firms to create a dedicated cloud-based platform that can run industrial workplaces. Leaders have to balance the practice of close collaboration with strategic partners against the need to stay flexible in contracting and partner selection, all while maintaining their hold on their markets.
4. Mine operational data
If connected machines — the primary components of IoT — are to be the backbone of industry in the near future, industrial manufacturers will have to figure out how to manage the data coming from an avalanche of sensors, integrated equipment and platforms, and faster information processing systems. There is a critical need to hire people who can mine these bits and bytes of information and work more closely with customers to use the data to improve equipment performance and open new revenue streams. Indeed, the anticipated efficiency returns from digitization over the next five years across all major industrial sectors are substantial: nearly 3 percent in additional revenue and 3.6 percent in reduced costs per year, according to a recent PwC survey of companies.
5. Decide what intellectual property to share and what to develop
Many industrial manufacturers find it difficult to manage digitization and big data analytics because their internal IT systems are so unwieldy. As company operations have grown more complex, expanding into new global markets and product lines and integrating newly acquired firms over many years, the old enterprise resource planning (ERP) systems that were meant to drive efficiency and coordination have proliferated into a tangled mass of disparate networks.
Industrial manufacturers must begin the process of overhauling their IT systems, creating a completely new architecture that can serve as the backbone for internal and external technology initiatives. In this new approach, it is imperative that IT systems communicate throughout the organization with standardized protocols.
6. Create strategies for talent development and retention
In the digitization sweepstakes, industrial manufacturers often find themselves at a disadvantage when trying to attract and retain talent. For example, in the U.S. many of the best and brightest STEM (science, technology, engineering, and math) students would prefer to work in Silicon Valley, where innovation is on the menu for breakfast, lunch, and dinner, rather than in the stodgier old-world locales where many industrial manufacturers have their plants and headquarters.
Succeeding in challenging times
The next wave of leaders in industrial manufacturing will build an ecosystem that capitalizes on the promise of analytics and connectivity to maximize efficiency for themselves and their customers.
by Gary Mintchell | Dec 19, 2016 | Internet of Things, News, Operations Management, Organizations
Collaboration rules the technical world. A professor who influenced me greatly was ex-CIA (ex?). He would proclaim in our international politics classes during the height of the Cold War that politicians might want to close borders, but scientists would never allow it. “Scientists want to publish their findings,” he would say, “so they will publish and leave out a step in the mathematical proof. It would get past censors, but fellow scientists around the world would figure out the missing steps.”
Our world today is rife with politicians trying to close borders. No, it’s not only Trump in America.
Given the political times, I’m encouraged by all the technology collaboration I see. Last week I posted a year end update by Tom Burke of the OPC Foundation highlighting his work in collaborating with other standards bodies. I have been working with MIMOSA (and recently elected Chief Marketing Officer). This organization has also been working with a variety of organizations.
Last week came news of another collaboration. The Industrial Internet Consortium (IIC), the global, member-supported organization that promotes the accelerated growth of the Industrial Internet of Things (IIoT), announced it has signed a memorandum of understanding (MoU) with the China Academy of Information and Communications Technology (CAICT).Under the agreement, the IIC and CAICT will work together to help ensure interoperability for the industrial Internet in China.
The agreement is one of a number of agreements made by the IIC’s newly formed Liaison Working Group.
Joint activities between the IIC and CAICT will include:
- Identifying and sharing best practices
- Collaborating on testbeds and research and development projects
- Realizing interoperability by harmonizing architecture and other elements
- Collaborating on standardization
“We look forward to working with the China Academy of Information and Communications Technology to help further the development of the industrial Internet throughout China,” said Wael William Diab, Chair, IIC Liaison Working Group and Senior Director, Huawei. “We’re especially excited about joint activity on testbeds and research and development projects that will help advance the adoption of the industrial internet.”
“We highly value the cooperation between CAICT and the IIC,” said Mr. Xiaohui YU, CTO of CAICT. “The collaboration with the IIC will help establish tight relationships between the IIC and Chinese entities and organizations, such as the AII Alliance, and will develop, facilitate and enhance the industrial Internet.”
The Liaison Working Group is the gateway for formal relationships with standards and open-source organizations, consortia, alliances, certification and testing bodies and government entities/agencies.
China Academy of Information and Communications Technology (CAICT) is a research academy under the Ministry of Industry and Information Technology with over 2,400 employees. A specialized think-tank for the government, and an innovation and development platform for the industry, CAICT holds a service portfolio that covers the areas of information and communication technology, the integration of ICT and industries, such as 5G, Internet IoT and industrial Internet, cloud computing, big data, Intelligent manufacturing etc.
As a leading think-tank and platform in ICT field of China, it contributes to the development and innovation of the country and the ICT industry by providing support and services in terms of national strategies, plans, policies, standards, technology labs, testing and certification etc. CAICT is the national core supporting organization for industrial Internet, intelligent manufacturing and Internet relevant actions to the Chinese government, and is involved in the drafting of the “Internet+ action plan,” “Made in China 2025,”and other national strategies and guidance on IoT, Cloud computing, big data and Broadband China, etc. CAICT is currently the leading organization to promote the development of industrial Internet of China.
The Industrial Internet Consortium is a global, member-supported, organization that promotes the accelerated growth of the Industrial Internet of Things by coordinating ecosystem initiatives to securely connect, control and integrate assets and systems of assets with people, processes and data using common architectures, interoperability and open standards to deliver transformational business and societal outcomes across industries and public infrastructure. The Industrial Internet Consortium is managed by the Object Management Group (OMG).
by Gary Mintchell | Dec 16, 2016 | News, Operations Management, Organizations, Standards
Interoperability, standardization, and collaboration were the key words for OPC Foundation in 2016. Tom Burke, OPC Foundation President, recently recapped a busy 2016 for the Foundation. Adoption of OPC UA has been gaining momentum in the market. Collaboration with other groups is growing. And the technology is finally beginning to show significant use beyond industrial automation.
Burke says, “It has been a very exciting year. We have seen record growth in adoption of the OPC UA technology across multiple domains and vertical markets. The OPC Foundation policy of being truly open has expanded the reach of the OPC technology. The specifications are available to everyone, the technology is open sourced, and now we have opened up our certification labs to non-members.”
The OPC Foundation byline since the beginning has been recognized as the “The Interoperability Standard for Industrial Automation.” With the significant international membership growth and adoption of the OPC UA technology across multiple vertical markets the byline of the OPC Foundation has been ratified as “The Industrial Interoperability Standard.” This byline recognizes the case that OPC is no longer just for automation.
OPC UA specifications and technology are actively being deployed across global boundaries supplying the key infrastructure for everything related to the Internet of Everything (IIoT, Industrie 4.0, China 2025, IIC, M2M…); inclusive of:
- numerous testbeds with the OPC UA technology being standardized in the Industrial Internet Consortium (IIC)
- being recognized as the communication and information modeling standard for Industrie 4.0
- OPC UA being finalized as a Chinese National Standard
In May 2016, BSI (German Federal Office for Information Security) conducted a thorough security analysis of OPC UA and found it exceeded the security requirements for Industrie 4.0.
Collaboration with numerous organizations beyond industrial automation is the strategy and path forward to allow information integration from the embedded world to the cloud.
New members and new products are emerging as end users are looking for information solutions for IIoT, and the OPC UA technology is well-positioned to address the needs of the Internet of Everything.
Numerous organizations continue to partner with the OPC Foundation and/or develop companion specifications for their respective information models to seamlessly plug into OPC UA.
Organizations announcing releases of their companion specifications in 2016 for the OPC UA technology included:
• AutomationML
• PLCopen
• AIM
• VDMA: Injection Molding (status: release candidate)
• VDMA: Vision Cameras (status: in foundation)
• VDMA: Robotics, starting with the help of KUKA (status: in preparation)
VDMA is very active standardizing on OPC UA information models and expects to rollout a multitude of additional information models in 2017, leveraging OPC UA information integration communication as it’s strategy for seamless information integration and interoperability.
Board of Directors
Board members are elected as individuals for a two-year term. Elected to new 2-year terms were: Russ Agrusa, (ICONICS), Veronika Schmid-Lutz (SAP), Stefan Hoppe (Beckhoff) (also VP of OPC Foundation), and Matthias Damm (Ascolab). Also on the OPC Foundation Board of Directors are Thomas Burke (OPC Foundation), Thomas Hahn (Siemens) (also VP of OPC Foundation), Matt Vasey (Microsoft), and Ziad Kaakani (Honeywell) (also Treasurer of OPC Foundation), and Shinji Oda (Yokogawa).
by Gary Mintchell | Nov 18, 2016 | Automation, Networking, Standards
News regarding Time Sensitive Networking continues to flow. The University of New Hampshire InterOperability Laboratory (UNH-IOL), an independent provider of broad-based testing and standards conformance services for the networking industry, announced the launch of three industry-specific time sensitive networking (TSN) consortiums – Automotive Networking, Industrial Networking, and ProAV Networking – designed to provide deterministic performance within standard Ethernet for real-time, mission critical applications. By providing high quality test plans, tools, and test beds for TSN, UNH-IOL allows businesses to improve products and accelerate market readiness.
“Standards-based precise time, guaranteed bandwidth, and guaranteed worst-case latency in a converged Ethernet network is a game-changer to many industries,” said Bob Noseworthy, Chief Engineer, UNH-IOL. “Through UNH-IOL’s industry-specific TSN consortiums, companies can be at the forefront and drive the technology forward by validating their solutions with a full suite of testing services, which will allow applications such as self-driving cars and the Industrial Internet of Things (IIoT) to take off.”
Originally established as a “best effort” network, Ethernet needs additional specific features to deploy mission critical applications. TSN standards enable deterministic real-time communication over Ethernet, allowing solutions to be built to provide extremely precise, predictable timing across the network. By adding features to Ethernet such as time synchronization, ingress policing, seamless redundancy, frame preemption, scheduled traffic, and stream reservation, TSN ensures mission-critical, time sensitive data is not held up on the network, promoting an interoperable ecosystem spanning across many industries. As TSN standards mature, UNH-IOL consortium members are able to support rapid development of conformance and interoperability solutions for emerging standards, validating their silicon and early products by gaining access to test solutions as well as multi-vendor test beds.
A major driving force behind the development of TSN standards is the emerging Automotive Ethernet market. The future connected, autonomous vehicle requires the time sensitivity and predictability in networking that TSN provides to support Advanced Driver Assistance System (ADAS) requirements, infotainment expectations from consumers, and other elements of vehicle electronics. Supporting automotive original equipment manufacturers (OEMs) and manufacturers supplying OEMs enabled with deterministic Ethernet solutions, the TSN Automotive Networking Consortium provides a setting for collaboration and participation in shaping the emerging standards through neutral, third party conformance and interoperability testing.
TSN’s importance is also emerging in industrial automation due to the rise in interest around the IIoT, specifically the mission-critical, time sensitive data that must be transferred and shared within strict bounds of latency and reliability. TSN enhancements for Industrial Ethernet provide standards-based determinism and reliability needed for these applications. The TSN Industrial Networking Consortium brings together stakeholders to realize the benefits of TSN – bandwidth, security, interoperability, and latency and synchronization for IIoT, robotics, assembly plants, and machines, as well as shape the standards and protocols for TSN in the industrial market.
Recent enhancements and certifications in the audio/video market have created a wider choice of compatible products and open technology that brings high-quality AV networking within the reach of any size Professional AV system. TSN enhancements provide the important timing audio and video systems need. The Pro AV Networking TSN Consortium is a testing ground for the promises of seamless redundancy, low-latency, and synchronization in the professional audio/video market.
UNH-IOL provides the test facility for stakeholders across multiple industries – automotive, industrial, and Pro AV – to drive the emerging, maturing TSN standards. To learn more about joining the new consortiums, please visit: Automotive Networking TSN Consortium, Industrial Networking TSN Consortium, Pro AV Networking TSN Consortium.
by Gary Mintchell | Nov 14, 2016 | Automation, News, Operations Management, Software, Technology
I put on the pair of magic glasses. Immediately I was transported to a magic land of another reality. I saw things floating in front of me. I could walk around objects and view them from every angle, but I couldn’t touch them.
There was a white dot. I focused on the dot and brought my hand up to eye level forming a fist with fingers on top. Then I opened my fist like a jasmine bud you drop into hot water to make fragrant tea. And a computer screen appeared before my eyes. I raised a finger, pointed to a button, brought my finger down and then back up as if clicking. And a machine started.
No, I had not smoked something. (Although people suspect that in my days at university… well that’s another topic for another day!)
Perhaps you’ve seen the TV ads for the Samsung phone with Virtual Reality (VR) goggles? I was wearing a real product–the Microsoft Hololense. This is Augmented Reality (AR). I could see people walking through the first machine. I could see the actual machine in the second scenario. I controlled the fan speed of the real machine without touching anything. People watching would only see me waving my hand.
Yes, this was last week in Atlanta at Automation Fair sponsored by Rockwell Automation. At a stand called modestly enough The Future of the Connected Enterprise, they showed these working examples of AR in a manufacturing setting.
Innovation
Let’s be honest. In 20 Automation Fairs I’ve attended, I’ve never felt like I’ve seen the bleeding edge of technology. Cool new products? Sure. Rockwell kept advancing with the times. The Logix engine was an advance in the state of the art followed by Studio 5000. But that has been some time ago. This year just felt differently.
First there was a live demo during the media day that included information solutions. Next was the Innovation Zone demo of AR. Finally was a dive into Information Solutions–something initially highlighted by new CEO Blake Moret.
First an admission and some definitions. I stole the headline of the piece from both ControlGlobal and Automation World. I think I saw it in both places on the Web last week. Now the description–Rockwell calls “Software” its software for HMI, programming, and the like. What really has been building is “Information Solutions.” More accurately, the headline should have been, “Rockwell Automation, An Information Solutions and Services Company.”
An Information Solutions Company
Information Solutions and Process Solutions are headed by the same VP/GM, John Genovesi. Process had been growing for several years, but it seems to have leveled off lately. Information Solutions was front and center featured this year. My industry research this year revealed that IS accounts for the bulk of revenue increases within the “Connected Enterprise” strategy. And that makes sense.
One of the deep-dive interview opportunities offered me this year was the Information Solutions group. Spokesperson Khris Kammer told me that there were four pillars to discuss this year–Scalable MES, Scalable Analytic, Connected Services, and Collaboration/Teams. I’ll have more detail on product releases from the first two. Connected Services was touted by Moret during our interview.
The traditional challenge for MES has been its monolithic nature. If you want MES, you must buy a big chunk. Rockwell has been working on this customer challenge and barrier to entry. Rockwell introduced “suites”, but that did not address the entire problem. Now are “fit-for-purpose” apps–quality, production, performance. Read more below.
Analytics became the domain of data scientists through “Enterprise Manufacturing Intelligence” (EMI) which was a spin-off from enterprise Business Intelligence. Rockwell partners with Microsoft PowerBI, but it also worked on the scalable aspect to bring customers in a little at a time. Built upon existing products Historian and VantagePoint, developers built Analytics for Devices and Analytics for Machines–a cloud-based broader solution. Read more below.
Connected Services blends service in networks, security, and managed services. This has been a growing part of Rockwell’s business and now receives the attention and focus of landing as part of the Connected Enterprise strategy.Collaboration features a Web-based, HTML5 app called TeamOne. The team demonstrated it to media in perhaps the first live demo at a Rockwell keynote. Figuring that pretty much everyone already brings a smart phone to work, this app is IT-friendly and allows chatting, information access, video capability, and more among selected members of a team. These personnel may be in the same area, scattered around a facility, or even remote if necessary.
Scalable Analytics
“Our Connected Enterprise vision has always had analytics and collaboration at its core,” said Genovesi. “As we expand our Information Solutions offerings, a primary goal is to make analytics more approachable and right-sized for the customer. New analytics solutions help our customers move ahead on their Connected Enterprise journey, no matter where they are today.”
The new offerings expand capabilities for analytics across the plant floor for devices, machines and systems, as well as throughout the enterprise. In this approach, analytics are computed and gain context closest to the source of decision at the appropriate level in the architecture to return the highest value – from edge devices to the cloud on a variety of new appliances, devices, and on- or off-premise cloud platforms.
FactoryTalk Analytics for Devices appliance provides health and diagnostic analytics from industrial devices. It crawls your industrial network, discovers your assets and provides analytics by transforming the data generated into preconfigured health and diagnostic dashboards. The system also delivers “action cards” to your smartphone or tablet if a device requires attention.
At the machine level, FactoryTalk Analytics for Machines cloud application provides equipment builders access to performance analytics from deployed systems to help support their customers via the FactoryTalk cloud. For manufacturers, this capability capitalizes on connected technologies to help drive higher availability and output while reducing maintenance costs.
Rockwell Automation now provides a predictive maintenance solution that can predict failures before they happen and generate a maintenance work order to avoid costly downtime.
Scalable MES
Rockwell Automation has released the following applications, with more to come in the future:
FactoryTalk Production Application a scalable MES solution that addresses the challenges associated with enforcing processes in manufacturing. This application integrates with ERP, and tracks the order and recipe parameters necessary for production.
FactoryTalk Quality Application allows manufacturers to easily and efficiently model and enforce their plant’s in-process quality regimens at a scalable rate. Manufacturers can use the Quality application on a project basis and scale up when value is proven.
FactoryTalk Performance Application is a modular application that assists manufacturing companies with factory efficiency and production improvement. By providing visibility into the operations performance, this application allows for lean and continuous improvement, preventive manufacturing, improved asset utilization and operational intelligence.
Each expanded MES application is implemented on thin clients for a modern user experience and reduced, IT infrastructure cost. Users can add on each application to their current framework, helping protect their current investments while realizing these additional benefits.
