by Gary Mintchell | Dec 1, 2015 | Automation, Technology
I have been writing on notifications in a personal sense. Here is an application of predictive notifications in manufacturing/production industry from ABB.
A new white paper that shows how predictive maintenance and notification technology can be combined to enable services that predict events that affect production, and then accelerate actions to avoid or exploit the events in order to produce higher equipment availability, more stable process performance and better product quality.
The white paper, entitled, “Are You on Track? How Predictive Notification Keeps Production on Track,” notes that though notifications are all around us (think smart phones with notifications for appointments, social media, software updates, sports scores, stock prices etc.), they haven’t yet entered the realm of industrial production. The paper proposes that the reason is because most notifications tell what has already happened. But combining notification technology with predictive maintenance technology can create a solution in which notifications become part of the daily industrial plant work practice.
“We have long provided control technology that triggers alarms for certain scenarios,” said Dan Duncan, Vice President, Sales and Operations for ABB Process Automation Service. “And we also deliver services that can automatically identify, categorize and prioritize maintenance issues that should be addressed. Both of these technological developments have made a huge impact on global industrial production.
“But what has been missing from our toolset is a simple way to take what is identified, categorized and prioritized by these advanced services technologies, and quickly and efficiently put an action into the hands of someone who can actually do something about it now,” Duncan said. “This white paper represents our thinking on how this can be accomplished by industrial producers everywhere.
“We expect it to have a significant beneficial effect on improving production efficiencies,” he said.
The paper covers predictive maintenance technology, problems with historical predictive approach and how to resolve those problems. The paper further identifies the value that can be produced by predictive notification technologies, and outlines a path to implementing a predictive notification program, including step-by-step guidance on how to get there.
by Gary Mintchell | Nov 25, 2015 | Automation, Security, Technology
Bedrock Automation extends to the industrial Ethernet domain its commitment to deliver “Simple, Scalable and Secure” automation. The SIO4.E Ethernet I/O module plugs into the Bedrock pinless electromagnetic backplane to receive Bedrock’s patented Black Fabric cyber security protection.
Each of the module’s five I/O channels is independently software configurable. The initial library of Ethernet protocols includes EtherNet/IP. Modbus TCP, OPC UA, and Profinet are slated for future releases on firmware updates. All channels also deliver Power over Ethernet (PoE).
Ethernet as a real-time control variable
Tightly coupling Ethernet into the process control and I/O network enables deployment of a wide range of edge device and enterprise data into real-time control logic, much in the same way an engineer incorporates more typical process sensor and actuator data. This results in real-time communication channels for the exchange of data between OT production and IT enterprise systems.
“Unlike an Ethernet switch traditionally sitting at Purdue levels 3 to 5 with the operations and business networks, the SIO4.E module delivers Ethernet as secure I/O at levels 0 and 1 with the sensor, actuator and process control logic. This collapses the legacy hierarchical ICS model into a simplified and inherently more secure automation architecture. Equally empowering is the deployment of OPC UA on any of the SIO4.E Ethernet I/O channels, opening up a world of opportunity and innovation while reducing all aspects of software lifecycle cost. This is the way of the future,” says Bedrock CTO and Engineering VP, Albert Rooyakkers.
Securing Ethernet I/O
Ethernet is becoming widely adopted for open industrial control system (ICS) applications because it builds on proven, high-speed stacks that have been enhanced for use on industrial devices such as robots, PLCs, sensors, CNCs and other industrial machines. Bedrock secures Ethernet I/O in many ways, including by connecting the FIPS compliant anti-tamper SIO4.E I/O module on a pinless electromagnetic backplane, embedding authentication logic, true random number generation (TRNG) and cryptographic keys into the semiconductor hardware, and by isolating information flow within each channel by way of separation kernel functionality in a secure real-time operating system (RTOS).
“Robust ICS cyber security is just part of the tremendous value that the new Bedrock module brings to process automation,” says Bedrock Automation President Bob Honor. “The fact that each channel can be software configured adds new levels of flexibility and scalability. No other I/O module allows process engineers to program so much communications capability into one system component. We are especially excited about the positive impact for ICS users. That user experience is increasingly configurable and Bedrock uniquely offers the tools and platform to shape it securely to their advantage.”
Pricing and availability
The Bedrock SIO4.E Ethernet I/O module is available at a price of $2000, about the same as a traditional Ethernet IP card. But unlike a typical Ethernet card, the five channel SIO4.E is cyber secure, software configurable for multiple protocols, and has more bandwidth, higher computing power and additional performance advantages.
by Gary Mintchell | Jul 30, 2015 | Commentary, Manufacturing IT, News, Operations Management, Software
OK, so I was wrong. Well, I was right and wrong.
My analysis of the Schneider acquisition of Invensys (Foxboro, Wonderware, et. al.) centered on European competition. Namely that as Schneider assembled a large industrial technology powerhouse it was looking at Siemens and ABB—its next-door rivals.
Schneider was already a competitor in the electrical power industry. Acquiring the process automation technologies business with Invensys brought it into more complete competition with ABB.
Software
On the other hand, I thought that Schneider might divest the software business partly because it never really had very much in the way of software.
OK, I was wrong.
Schneider announced last week that “it has reached a preliminary, non-binding agreement with AVEVA Group PLC (“AVEVA”) on the key terms and conditions of a combination of selected Schneider Electric industrial software assets and AVEVA (forming the “Enlarged AVEVA Group”).
On the surface this appears to be a strange marriage. In fact, my friend Walt Boyes did an anti-Schneider rant on his blog this morning. Amongst the rumors he alluded to about Schneider management and how Clayton Christensen’s analysis of acquisitions predicted that the acquisition would go south, he also misunderstood, I think, the implications of this move.
AVEVA is a construction engineering software company. It provides the front-end engineering for plants that Foxboro, Triconix, Avantis, and other ex-Invensys brands operate and maintain.
Design to operate
The upshot is that Schneider should be able to provide an end-to-end solution for process industries similar to what Siemens has done for discrete manufacturing with the integration of UGS and the Siemens PLM division.
By the way, this latter is an example of how a large company can beneficially absorb an acquisition. The merger has worked very well. Other European companies have closely watched this acquisition model. I believe that Schneider will have learned from it.
I wonder what implications for the OpenO&M Initiative and the OGI Pilot program—an ongoing effort to use standards to move data from the engineering design database to the operations & maintenance database. AVEVA was a key player.
Transaction details
It is expected that the proposed transaction would:
1. create a global leader in industrial software, with a unique portfolio of asset management solutions from design & build to operations, with both scale and a distinct market position to address critical customer requirements along the full asset life cycle in key industrial and infrastructure markets;
2. unlock additional value at enlarged AVEVA and Schneider Electric through the potential for material revenue and costs synergies, leveraging on complementary end-markets exposures, customer bases and product portfolios;
3. establish a ‘best in class’ management team and increased brand profile for attracting further talent; and
4. realize the full value of the contributed industrial software assets.
The enlarged AVEVA would have combined revenues and Adjusted EBITA of c. £534 million and c. £130 million, respectively. It is expected that the Enlarged AVEVA Group will continue to be admitted to listing on the Official List of the UK Listing Authority and to trade on the London Stock Exchange plc’s main market for listed securities. Schneider Electric intends to comply with the Listing Rules of the UKLA. As part of the transaction, Schneider Electric would contribute a selection of its industrial software assets to AVEVA and make a cash payment of £550m to AVEVA, (which would subsequently be distributed to AVEVA shareholders excluding Schneider Electric) in exchange for the issuance of new AVEVA shares, giving Schneider Electric a majority stake of 53.5% in the Enlarged AVEVA Group on a fully-diluted basis. Schneider Electric would fully consolidate the business in its Group financials.
In addition to any consultation procedures involving the personnel’s representative bodies that may be required, the transaction remains subject to, amongst other things, the completion of mutual due diligence to the satisfaction of both parties, agreement on the terms of legal documentation, the approval of the respective Boards of Schneider Electric and AVEVA, AVEVA shareholder approval and relevant anti-trust and regulatory approvals (if required). In accordance with the applicable law and regulation of the United Kingdom, a more detailed public announcement has been released today and is available on the AVEVA and Schneider Electric websites as well as on the AMF (French regulatory authority) website.
A further announcement will be made as and when appropriate.
by Gary Mintchell | Jun 22, 2015 | Internet of Things, Interoperability, Networking, News, Operations Management, Process Control
I have business related to an angel investment and too much other travel to attend this week’s Honeywell User Group in San Antonio and Siemens Summit in Las Vegas. Trying to get to both events was both expensive and too exhausting to attempt. I had one friend, at least, who was going to both. More power to Greg.
I’ll analyze from reports I see from those there and from press releases. I know that Honeywell Process Solutions anticipated one major security announcement at HUG, but I would have been gone had I decided to attend anyway.
Meanwhile, I’ve been writing about the Internet of Things, fieldbuses, and networks for some time. The ODVA reached out asking if I’d like an update on its process industry work with EtherNet/IP. Of course, was the reply. It has a stand at ACHEMA in Frankfurt (another place I could have gone…) and sent me this update that would be the centerpiece of its press conference there.
Along with Rockwell Automation’s entry into the process industry automation market, EtherNet/IP usage now must incorporate process industry standards to go along with factory automation (discrete industry) usage. Partner Endress + Hauser has been building out devices that are EtherNet/IP enabled. This is an interesting addition to process industry “fieldbus” market (I know, perhaps EtherNet/IP is not a “real” fieldbus, but it will be used like one).
This was ODVA’s first appearance at ACHEMA, where ODVA members and EtherNet/IP suppliers Endress+Hauser, Hirschmann, Krone, Rockwell Automation, Rosemount, Schneider Electric and Yokogawa have assembled a demonstration of EtherNet/IP to explain to visitors ODVA’s approach to the optimization of process integration. Illustrating typical process applications, such as clean-in-place, highlights of the demonstration include:
- Use of EtherNet/IP to connect best-in-class solutions and devices for process applications;
- Integration of traditional process networks, such as HART, Profibus PA and Fieldbus Foundation, into an EtherNet/IP network; and
- Movement of data between field devices, such as pressure sensors and flow meter, and plant asset management systems.
ODVA’s process initiative, launched in 2013, is intended to proliferate the adoption of EtherNet/IP in the process industries. Initial focus has been on the integration of field devices with industrial control systems and related diagnostic services, leading to a road map for adapting the technology to the full spectrum of process automation needs, including safety, explosion protection, long distances and comprehensive device management.
“EtherNet/IP is at the forefront of trends in convergence of information and communication technologies used in industrial automation. Although industrial Ethernet was first adopted in the discrete industries, today EtherNet/IP is widely adopted in hybrid industries and is spreading into process industries, said Katherine Voss, president and executive director of ODVA. “Because ACHEMA is an international forum for users in chemical engineering and the process industries as a whole, ODVA felt it would be helpful to the ACHEMA’s audience to broadly showcase to process users the opportunities for integration improvements, optimized network architecture and increased ROI that EtherNet/IP can afford.”
by Gary Mintchell | Jun 9, 2015 | Automation, Marketing, News
What Does It Mean When An Industry Consolidates?
For companies in the control and automation space, as well as manufacturing in general, acquisitions power growth.
Rockwell Automation became a factor in process automation through a number of strategic acquisitions. Siemens fulfills its digital manufacturing vision through acquisitions. ABB, until recently, pursued a growth by acquisition strategy. Schneider Electric, keeping pace with European rivals swallowed Invensys—and much to my surprise seems intent on not only keeping but even building its software presence.
What is the result of acquisitions in an industry? Consolidation. And the result of consolidation? Less competition.
Writing in Industry Week Michael Collins, president of MPC Consulting, asks, Is Manufacturing Industry Consolidation Stifling Competition and Innovation?
That is a fair question. I have been surveying the industry in the two years after leaving Automation World (and Maintenance Technology, where I stayed briefly) looking for what’s new and interesting. The latest cool startup was ThingWorx, which sold to PTC. There are companies doing instrumentation, control and automation well, but not much really new or innovative.
Collins tries out a definition, “Capitalism is a free market system that is supposed to promote competition. In capitalist theory, competition leads to innovation and more affordable prices for consumers. Without competition, a monopoly, oligopoly or cartel may develop.”
This statement contains an amount of belief, but it does describe a market economy in keeping with the 18th Century “liberals” who valued “liberty” over government. The economic theory superseded mercantilism where the government picked winners and losers.
Wishing for more government regulation, Collins reviews history, “This formation of monopolies and oligopolies also occurred in the Gilded Age, when the robber barons controlled entire industries, including oil, railroads, steel and the telegraph. The consolidation did not stop until President Theodore Roosevelt broke up the monopolies using antitrust legislation.”
Today’s monopolies/oligopolies
Collins then surveys today’s consolidations:
- Airlines
- Banks–“In 1995, the six biggest U.S. banks had assets equal to 18% of GDP. Today, they hold assets of about 63% of GDP.
- Search Engines–The search engine business is dominated by Google, which, according to Forbes, owns 90% of the market in non-mobile search worldwide.
- Media Companies–In 1983, 50 companies controlled the vast majority of news media including newspaper, magazines, radio and TV stations, books, movies, videos, and wire services. Consolidation reduced the original number to 24 companies by 1992 and to six companies by 2000. Today, five corporations—Time Warner, Disney, News Corp., Bertelsmann (of Germany) and Viacom control the majority of the U.S. media industry.
- Hospitals
Manufacturing industries also have consolidated:
- Meat Packers–In 1982, the five largest meatpackers controlled 16% of the meat industry. Today four firms control 85% of the beef market, an oligopoly that includes National Beef, Cargill, Tyson, and JBS (which purchased Swift).
- Microsoft
- Intel
- Beer–At that time (1970s), there were 43 firms making beer, and the largest had 25% of the market. Today two firms—Anheuser Busch and Miller/Coors—own 90% of the non-craft beer market.
- Autos–The auto industry is now a global industry where five multinational companies have 50% of the world market. The top 10 auto manufacturers control 70% of the world market. [Note: and now the Chrysler CEO is drumming up support for a merger with GM.]
- Oil and Gas–Exxon merged with Mobil Oil and Conoco merged with Phillips. Along with Chevron and Occidental Petroleum, these four giants have 70% of all oil produced in the U.S. (1,919 barrels).
Collins concludes:
I think it is in the DNA of capitalism to create oligopolies and monopolies, and they can only be restricted by government regulation.
Gary Responds
Often consolidation is a reflection of a mature industry. Not much is happening. It’s an industry ripe for disruption.
A number of entrepreneurs are trying innovative airline models. Who knows when one will “take off”, so to speak?
Doctors are forming small companies, removing outpatient surgery and other services out of the hospitals.
Brewery consolidation means companies run by finance people rather than product people. While many will buy according to price even if the taste is not there, the interesting end of the market is now wide open among small craft brewers. When I travel, I always ask for the local beer.
Microsoft is being pressured by Linux in the enterprise and smartphone and tablet products in the low end. Google docs are a viable alternative to Office.
Intel is pressured on many sides with new competition.
Software as a Service models are pressuring the major automation software companies. And open source hardware and software threaten disruption of those markets.
Innovation often comes from outside the dominant market leader group. It is difficult to predict. But there is no doubt disruption is occurring. What’s that famous phrase? “The future is here, just not evenly distributed.” Yep.
