Siemens Making Digital Manufacturing Acquisition

Siemens Making Digital Manufacturing Acquisition

Make no mistake about it, Siemens in “all in” on industry 4.0, otherwise known as digital manufacturing. As the company experiences some restructuring, the PLM business continues to add companies and technologies to its digital manufacturing business.

A news item from Reuters, also reported in many outlets this morning, says that Siemens is set to acquire privately held CD-adapco. This computer-aided-engineering (CAE) developer focuses on simulating engines and other mechanical systems. It looks like a good fit.

Reuters says the deal would be for about $1 billion. The founder/CEO of CD-adapco passed away in September. Is widow has been running the company since then.

The race between Siemens and GE just keeps getting more interesting. Meanwhile, Rockwell Automation focuses on the factory and process automation space, preferring to steer clear of the engineering and PLM software space. Schneider Electric’s moves have been interesting, although its attempt to acquire Aveva collapsed. ABB has been busy divesting and refocusing following former-CEO Joe Hogan’s sudden departure.

Digital manufacturing, especially featuring digital simulation of manufacturing processes, is the core of Germany’s Industrie 4.0 initiative. GE is pursuing a somewhat similar path, but it prefers the strategy of “Industrial Internet of Things.” Targeting automotive and aircraft manufacturers, these strategies hold the promise of not only increased manufacturing and supply chain efficiencies, but also possibilities of new business and income models.

What will be interesting to watch is whether Siemens and GE get so large in the space that they can no longer efficiently manage the diverse portfolio.

Siemens Making Digital Manufacturing Acquisition

GE, The Digital Thread, The Digital Twin, The Digital Company

UPDATED: Carpenter’s title changed after I wrote this. Also GE Intelligent Platforms is now called GE Digital.

GE now bills itself as the “digital industrial” company. It has realized the benefits of technologies such as the Watchdog Agent developed by the Center for Intelligent Maintenance Systems for monitoring and prognostics and the Industrial Internet of Things within its own manufacturing processes—especially aircraft engines.
Evidently it now all starts with the “digital thread.” To understand what was meant by this term, I was chatted with Rich Carpenter, Chief of Strategy Technology Strategist for GE Intelligent Platforms Digital.

I asked if this was essentially just a marketing term. “The digital thread is a way to describe a concept,” he told me. “People have become good at “leaning” out the manufacturing process. Now we are leaning out the entire new product introduction cycle. They are optimizing to the end of the path from design to engineering. Closing that loop and carrying forward to manufacturing.”

Companies have accumulated big data infrastructures, so they are also leaning out interactions between digital silos by managing the data flows. This enables remote diagnostics.

Carpenter also mentioned a process I’m beginning to hear around the industry. First you connect things—people, sensors, machines. Then you collect and analyze the data you get from the process. Finally given all this, you can begin to optimize the process.

Official word

Here is a definition from GE, “While the Industrial Internet may be unchartered territory to some manufacturers, early adopters are starting to understand the benefits of the ‘Digital Thread – a web of data created the second they initiated their Industrial Internet journey. The digital thread is the result of several advanced manufacturing initiatives from the past decade, creating a seamless flow of data between systems that were previously isolated.

“This data is essentially the manufacturing health record, which includes data from everything to operator logs to weather patterns, and can be added to as needed. For example, you could compile the digital threads across multiple plants to get a full understanding of the efficiency and health of particular processes and product lines. This record provides data context and correlations between downtimes and outside factors, allowing operators to be proactive in their maintenance strategies.”

Health

I especially appreciate the term “manufacturing health record.” That’s a term Jay Lee at the IMS Center used often in the first phase of prognostics and the Watchdog Agent—a consortium that GE played an active part in.

Digital twin

We’ve heard of cyber-physical systems, and then Industry 4.0 which is a digital manufacturing model based upon it. Now we have a new term, “digital twin” which Carpenter says is a new way to describe a real world physical asset. Then, trying to optimize it, we’ll create a digital representation—a model based on statistics or physics. We run the model, then apply successes of the simulation in the real asset. Then feedback the information.

News release predictive analytics

GE held a conference in September that I could not attend. So, I talked with Rich Carpenter and some marketing people and obtained these press releases. These technologies and applications reveal where GE is heading as a Digital Industrial Company—and where it can take its customers, as well.

GE’s predictive analytics solution, SmartSignal, will be available as part of GE Digital’s Asset Performance Management (APM) solutions on the Predix platform, the purpose-built cloud platform for industry. SmartSignal powered by Predix will deliver anomaly detection with early warning capabilities that is SaaS-based and therefore at a lower cost and at a higher speed, making it accessible to a broader range of distributed equipment.

“Until now, advanced equipment monitoring and predictive anomaly detection capabilities have only been available to enterprises with significant resources, both in terms of machinery expertise and capital,” said Jeremiah Stone, General Manager, Industrial Data Intelligence Solutions for GE Digital. “Because of this, insight gained through predictive analytics has been limited to high value assets due to these cost and knowledge barriers.”

Companies see condition-based maintenance as a means to cut existing operations & maintenance costs. With SmartSignal powered by Predix, they will be able to capitalize on cloud and Big Data platforms to drive more efficient and productive operations.

“There is an unmet need in the industry for a cloud platform that supports the unique requirements of industrial data and operations,” said Harel Kodesh, Chief Technology Officer and Vice President & GM of Predix. “GE Predix is the first cloud platform to meet these demanding requirements. By leveraging GE’s deep domain expertise in information technology and operational technology, Predix provides a modern cloud architecture that is optimized for operational services like asset connectivity, managing and analyzing machine data, and industrial-grade security and regulatory compliance.”

Today, SmartSignal technology provides early warning detection for more than 15,000 critical assets in customer operations. According to May Millies, Manager of Power Generation Services, Salt River Project, “SmartSignal has us listening to the right data and using that data to impact our work operations.” Salt River Project provides reliable, reasonably priced electricity and water to more than two million people in Central Arizona. Integrating data to improve visibility into operations was a key to maintaining their standing with customers. “Now that we have realized the incredible performance of the software and how strong and robust it is, we are improving asset utilization across the enterprise.”

Brilliant manufacturing

In a second announcement, GE announced the next version of its Brilliant Manufacturing Suite. Field-tested and optimized within GE’s own factories, the suite maximizes manufacturing production performance through advanced real-time analytics to enable all manufacturers to realize GE’s Brilliant Factory vision.

“Today’s demands on manufacturers are driving an unprecedented rate of change, innovation and agility,” said Jennifer Bennett, General Manager for GE Digital’s Manufacturing Software initiatives. “Manufacturers are challenged to decide what to build, how to build it, where and when to build it, and how to efficiently maintain it. We believe that the key to optimizing the full product life cycle from design to service is through analytics of data that has been traditionally locked inside corporate silos.”

GE’s Brilliant Manufacturing Suite allows customers to begin to realize their own vision of a Brilliant Factory. Integrating and aggregating data from design to service and leveraging analytics to support optimal decision-making allows manufacturers to drive improvements in end-to-end production. Analyzing data in context and providing the right information at the right time allows for better decision support throughout the manufacturing process. Data-driven analytics encompassing machines, material, people and process will transform the factories of today into Brilliant Factories.

GE’s next generation Brilliant Manufacturing Suite includes:

  • OEE Performance Analyzer – available for early access today, it transforms real-time machine data into actionable production efficiency metrics so that Plant Managers can reduce unplanned downtime, maximize yield and increase equipment utilization.
  • Production Execution Supervisor – digitizes orders, process steps, instructions and documentation with information pulled directly from ERP and PLM systems. Factories are able to ship higher quality products and deliver new product introductions faster by getting the right information in the right hands to focus on the highest priority manufacturing tasks.
  • Production Quality Analyzer – real-time identification of quality data boundaries that catch non-conforming events before they occur. Quality engineers can analyze this information to identify patterns and trends that enable factories to ship higher quality products faster.
  • Product Genealogy Manager – builds a record of all personnel, equipment, raw materials, sub-assemblies and tools used to produce finished goods. Service personnel can respond to customer and regulatory inquiries with confidence, knowing who, what, when, where and how for an individual shipment.
Siemens Making Digital Manufacturing Acquisition

Real-Time Synchronization of Product Data

This is a story about data interoperability and integration. This is a much-needed step in the industry. I just wish that it were more standards-driven and therefore more widespread.

But we’ll take every step forward we can get.

Arena Solutions, developer of cloud-based product lifecycle management (PLM) applications, announced that its flagship product, Arena PLM, now offers real-time synchronization with Kenandy Cloud ERP, an enterprise resource planning system for midmarket and large global enterprises built on the Salesforce Platform.

With this integration, the product record can be automatically passed from Arena PLM to Kenandy at the point of change approval. This eliminates errors and accelerates access of product information in Kenandy to create a more cohesive and efficient manufacturing process.

Arena PLM and Kenandy Cloud ERP can now communicate directly with each other, enabling customers to share up-to-date product data with finance, sales and manufacturing departments to ensure accurate financial planning and support operations.

“We are excited to be partnering with Kenandy to deliver a fully cloud-based integrated PLM and ERP solution.” said Steve Chalgren, EVP of product management and chief strategy officer at Arena Solutions. “The integration between our products is simple, clean, and can be implemented quickly. Isn’t that refreshing?”

Using the integration between Arena PLM and Kenandy Cloud ERP, customers can:

  • Manage the product development process of product data (items, bill of materials, manufacturer and supplier data) in a centralized Arena PLM system through the entire product lifecycle; and
  • Use Kenandy to quickly plan, procure and manufacture products upon handoff of the latest product release from Arena.

Primus Power Benefits from Seamless Integration

Delivering clean-tech energy storage solutions based on advanced battery technology, Hayward, California-based Primus Power was already successfully using Arena PLM for their design and engineering activities. It was essential that their new ERP and existing PLM system integrate seamlessly.

In Primus’ fast moving, design-focused environment, an engineer can now implement a product idea or improvement in the PLM system and within minutes the new part number is generated in Kenandy automatically. Instantly, people throughout the company can find that part; there’s a pricing history for it, a supply history. “People no longer say, ‘Did we order that bracket?’ They can now actually see that it’s on order. They can find the purchase order and the promised delivery date,” said Mark Collins, senior director of operations at Primus. “So much information is now available at people’s fingertips simply because we created a part number that’s now searchable in the system.”

“Cloud solutions deliver business agility in ways that on-premise solutions just cannot,” said Rod Butters, president and chief operating officer at Kenandy. “Together Arena and Kenandy are delivering a solution that can be deployed fast and, more importantly, helps the business run fast. Even though our customers are working with our two products, their entire team sees a single, complete, real-time source of truth from product design to product delivered to bottom-line results.”

I have written about Kenandy a couple of times this year here and here.

Digital Manufacturing Does It Need PLM

Digital Manufacturing Does It Need PLM

Zvi Feuer SiemensDuring my continuous research for topics such as Industry 4.0, digital manufacturing, smart manufacturing and the industrial Internet of things, I came across this Siemens PLM software blog.

In it, Zvi Feuer, Siemens PLM Software’s Senior Vice President, Digital Factory, Manufacturing Engineering Software, shares his perspective on “how Siemens helps companies worldwide to realize innovation in manufacturing.”

Feuer says, “I want to be able to offer our customers industry solutions which provide the means to turn any manufacturing operation into a high tech manufacturer. In order for us to sell not only the software but also usage methodologies And, in fact, to increase productivity with the customer and to help the customer deliver to his customers in a better and faster shape. This will obviously create opportunities for people, opportunities for jobs.”

Siemens executives have explained its digital manufacturing strategy to me for more than 10 years. And the vision has been remarkably consistent. The first conversations were even before the UGS acquisition that led to the Siemens PLM business.

PLM As ERP for Manufacturing

The blog refers to a white paper, PLM For Manufacturing, “If you are looking for ways to connect all domains of the design/build lifecycle, consider a manufacturing process management (MPM) solution. This provides an enterprise-scalable foundation that allows you to perform product design, while simultaneously optimizing manufacturing processes. This means that you can better manage lifecycle cost, meet launch dates and maintain product quality targets.”

That statement reflects Siemens thinking even before the acquisition. Is it possible to design not only the product but the manufacturing digitally, and then proof it all out digitally before even cutting the first steel.

“We believe that an MPM system that is part of an enterprise PLM system is the best way to move
forward. This will provide an environment that supports a flexible process plan capable of reflecting any changes to the product design or requirements. This might be called a single window for enterprise data management – a single application that supports the complete lifecyle of product data in an enterprise environment. The main idea is to provide users with one platform for all their data management needs. Teamcenter PLM software is the only comprehensive system that provides a platform in which users can conduct all their data management needs from engineering to manufacturing to execution.”

Is it sustainable?

This is a grand vision. It reads like Goldratt’s “The Goal” coming to life totally automated. But, there are inherent problems to the grand scheme. I have witnessed and otherwise seen the benefits of more and better information informing production/maintenance teams enabling better decisions and improvements. But to think that this could eventually happen without human intervention–I doubt that ever happens effectively.

The white paper also talks about complexities of manufacturing and software, then it argues that it would be better to put everything into one overarching software application. I would argue, along with my Lean friends, that this would just make for one very complex software application.

Any of us who have actually done automation know that when the application gets too complex, then it doesn’t work. It is not maintained. It is not understood. People begin developing their more simplified (and understandable) workarounds.

The vision is like most things I have witnessed over the past 40 years of applying technology. We develop something. We get benefits. We get over ambitious and build something cumbersome. People stop using it. We develop something simpler. People use it. And so on.

Digital manufacturing and Industrie 4.0? Interesting. The jury is still deliberating as to whether it is giving Germany the desired competitive edge in manufacturing.

Siemens Making Digital Manufacturing Acquisition

Automation Conferences and Jim Pinto

I have a potpourri of items to start the day. In the morning I leave for a week serving at the Tijuana Christian Mission. We will do a variety of service projects including building a section of a cinder-block security wall at its Rosarito orphanage site. We will do some work at the women’s shelter. We will also have some “real” Mexican tacos and check out the Pacific Ocean. I will be writing ahead, but there may be some gaps.

ABB

I decided that I just had too much going on along with watching my budget to attend this year’s ABB Automation and Power World event in Houston. This is the first one I’ve missed. And, yes, I do feel some withdrawal pain. What little news I’ve seen so far says that attendance is about 8,000. That is fantastic. I have seen no other news so far.

There were a couple of press releases in general. I subscribe to news feeds using Feedly on my iPad. I scan hundreds of items a day. Unfortunately, whatever Web technology ABB uses, when I click on the teaser lead in to the story to go to the Website, nothing happens. I’ve reported it to ABB several times in the past. For now, I don’t tweet or write up these items–I can’t see them.

Jim Pinto on Tolerance

My friend Jim Pinto who once wrote a monthly column on automation for me has switched his outlook on life. He has been tackling social problems lately in his new blog.

The latest edition is an impassioned plea for tolerance. He talks about treating other people with dignity. Certainly that is a life skill that will help you become successful except in the most toxic of organizational environment. But certainly successful as a person.

The piece did send me in search of a book in my library from the late 60s called “A Critique of Pure Tolerance.” For you philosophers, you might get just a sniff of Kant in the title. Rightly so. Three philosophers contributed essays–a Hegelian, a Kantian, and a positivist. One author was Robert Paul Wolfe. I can neither remember the other two or find the book right now. The point was (throwback to anti-VietNam protests) that sometimes you really shouldn’t tolerate the thoughts of others. I just offer that as a token of meaningless debate.

Real news from Dassault

Dassault Apriso 40Just received this update. By the way, I think these pre-configured apps are the beginning of the future for manufacturing software. Seems Apriso is making us smart–at least according to the press relations manager. Version 4.0 of Dassault Systèmes’ DELMIA Apriso Manufacturing Process Intelligence (MPI) application suite is now available. New Maintenance, Logistics and Warehouse Intelligence Packs add visibility to another 200+ new KPIs.

Manufacturers operating globally are challenged to accurately measure analytics across sites to identify “best-in-class” performance. MPI 4.0 now offers 700+ pre-configured, built-in measures and KPIs within seven DELMIA Apriso Intelligence Packs. Intelligence Packs are pre-configured to work out-of-the-box with existing Apriso products (or may be integrated with other vendor products) to deliver the industry’s most robust EMI solution for global manufacturing excellence.

MPI 4.0 now offers Maintenance, Logistics and Warehouse Intelligence Packs, in addition to existing Production, Machine, Labor and Quality Intelligence Packs.

Advanced manufacturing strategies

There is one thing that puzzles me. Does anyone care about the variety of “smart manufacturing” theories and initiatives that take up so much room in magazines and blogs these days? I keep asking and writing, but the response is muted.

Granted, the European initiatives, principally Industrie 4.0, seem to be supplier driven. The US counterpart, Smart Manufacturing, has a government component, but is largely academic backed by some private companies who wish to take advantage of a pool of Ph.D. candidate researchers. It does talk about building a platform. However, the commercial impact is still in the distant future.

Just checking in. I’m working on a paper. If you have anything to contribute, I’m all ears.

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