What Is Smart Manufacturing and Why We Care

IDC Smart Mfg Info Graphic

[Updated: 1/28/15]

Last week I attended the board meeting of the Smart Manufacturing Leadership Coalition. Sometimes I’m an idealist working with organizations that I think have the potential to make things better for engineers, managers, and manufacturers in general. I derive no income from them, but sometimes you need to give back to the cause. SMLC is one of those organizations. MESA, OMAC, ISA, CSIA, and MIMOSA are other organizations that I’ve either given a platform to or to whom I have dedicated many hours to help get their message out.

In the area of weird coincidence, just as I was preparing to leave the SMLC meeting there came across my computer a press release from an analyst firm called IDC IDC Manufacturing Insights also about smart manufacturing. This British firm that is establishing an American foothold first came to my attention several years ago with a research report on adoption of fieldbuses.

The model is the “Why, What, Who, and How of Smart Manufacturing.” See the image for more information. I find this model interesting. As a student of philosophy, I’m intrigued by the four-part Yin-Yang motif. But as a manufacturing model, I find it somewhat lacking.

IDC insight

According to Robert Parker, group vice president at IDC Manufacturing Insights, “Smart manufacturing programs can deliver financial benefits that are tangible and auditable. More importantly, smart manufacturing transitions the production function from one that is capacity centric to one that is capability centric — able to serve global markets and discerning customers.” A new IDC Manufacturing Insights report, IDC PlanScape: Smart Manufacturing – The Path to the Future Factory (Doc #MI253612), uses the IDC PlanScape methodology to provide the framework for a business strategy related to investment in smart manufacturing.

Parker continues, “Smart manufacturing programs can deliver financial benefits that are tangible and auditable. More importantly, smart manufacturing transitions the production function from one that is capacity centric to one that is capability centric — able to serve global markets and discerning customers.”

The press release adds, “At its core, smart manufacturing is the convergence of data acquisition, analytics, and automated control to improve the overall effectiveness of a company’s factory network.”

Smart manufacturing

This “smart” term is getting thrown around quite a bit. A group of people from academia, manufacturing, and suppliers began discussing “smart manufacturing” in 2010 and incorporated the “Smart Manufacturing Leadership Coalition” in 2012. I attended a meeting for the first time in early 2013.

Early on, SMLC agreed that “the next step change in U.S. manufacturing productivity would come from a broader use of modeling and simulation technology throughout the manufacturing process”.

Another group, this one from Germany with the sponsorship of the German Federal government, is known as Industry 4.0, or the 4th generation of industry. At times its spokespeople discuss the “smart factory.” This group is also investigating the use of modeling and simulation. However, the two groups take somewhat different paths to, hopefully, a similar destination—more effective and profitable manufacturing systems.

Key findings from IDC:

  • Use the overall equipment effectiveness (OEE) equation to understand the potential benefits, and tie those benefits to financial metrics such as revenue, costs, and asset levels to justify investment.
  • Broaden the OEE beyond individual pieces of equipment to look at the overall impact on product lines, factories, and the whole network of production facilities.
  • Technology investment can be separated into capabilities related to connectivity, data acquisition, analytics, and actuation.
  • A unifying architecture is required to bring the technology pieces together.
  • Move toward an integrated governance model that incorporates both operation technology (OT) and information technology (IT) resources.
  • Choose an investment cadence based on the level of executive support for smart manufacturing.

Gary’s view

I’ve told you my affiliations, although I am not a spokesman for any of them. Any views are my own.

So, here is my take on this report. This is not meant to blast IDC. They have developed a model that they can take to clients to discuss manufacturing strategies. I’m sure that some good would come out of that—at least if executives at the company take the direction seriously and actually back good manufacturing. However, the ideas started my thought process.

Following are some ideas that I’ve worked with and developed over the past few years.

  • To begin (picky point), I wish they had picked another name in order to avoid confusion over what “smart manufacturing” is.
  • While there are a lot of good points within their model, I’d suggest looking beyond just OEE. That is a nice metric, but it is often too open to vagaries in definition and data collection at the source.
  • Many companies, indeed, are working toward that IT/OT convergence—and much has been done. Cisco, for example, partners with many automation suppliers.
  • SMLC is working on a comprehensive framework and platform (also check out the Smart Manufacturing blog). Meanwhile, I’d also reference the work of MIMOSA (OpenO&M and the Oil & Gas Interoperability Pilot see here and here).
  • I’d suggest that IDC take a look into modeling, simulation, and cyber-physical systems. There is also much work being done on “systems of systems” that bring in standards and systems that already exist to a higher order system.

I have not built a model, but I’d look carefully into dataflows and workflows. Can we use standards that already exist to move data from design to operations and maintenance? Can we define workflows—even going outside the plant into the supply chain? Several companies are doing some really good work on analytics and visualization that must be incorporated.

The future looks to be comprised of building models from the immense amounts of data we’re collecting and then simulating scenarios before applying new strategies. Then iterating. So, I’d propose companies thinking about their larger processes (ISA 95 can be a great start) and start building.

These thoughts are a main theme of this blog. Look for more developments in future posts.

Industrial Robotics Innovation and Farewell to Security Pioneers

Industrial Robotics Innovation and Farewell to Security Pioneers

Eric and Joann ByresI interrupt this blog to say good-bye and best wishes to industrial control systems security pioneers Eric and Joann Byres. They have been through a couple of iterations of entrepreneurship and had recently sold Tofino to Belden. They are leaving that company, taking some time off, and then looking for their next adventure. I appreciate the intense security conversations over the past 10-12 years. Check out the final blog post.

And, now back to our regularly scheduled program.

Industrial Robotics Once Again a Place for Innovation

Some industrial robots are hulking, highly specialized pieces of machinery that are cordoned off by cages from human factory workers.

But manufacturers have also begun experimenting with a new generation of “cobots” designed to work side-by-side with humans, and University of Wisconsin-Madison researchers are playing an important role in making these human-robot collaborations more natural and efficient.

Bilge Mutlu, an assistant professor of computer sciences, is working with counterparts at the Massachusetts Institute of Technology (MIT) to determine best practices for effectively integrating human-robot teams within manufacturing environments. Their research is funded by a three-year grant from the National Science Foundation (NSF) as part of its National Robotics Initiative program.

Furniture maker Steelcase, a global company headquartered in Grand Rapids, Michigan, is also a partner. “Working with world-class research universities like UW is critical to our strategy to evolve our industrial systems and develop industry-leading capabilities,” says Steelcase’s Edward Vander Bilt. “Our hope with this research is that we will learn how to extend human-robot collaboration more broadly across our operations.”

In recent years, the robotics industry has introduced new platforms that are less expensive and intended to be easier to reprogram and integrate into manufacturing. Steelcase owns four next-generation robots based on a platform called Baxter, made by Rethink Robotics. Each Baxter robot has two arms and a tablet-like panel for “eyes” that provide cues to help human workers anticipate what the robot will do next.

“This new family of robotic technology will change how manufacturing is done,” says Mutlu. “New research can ease the transition of these robots into manufacturing by making human-robot collaboration better and more natural as they work together.”

Mutlu directs UW-Madison’s Human-Computer Interaction Laboratory and serves as the principal investigator on the UW side of the collaboration. He works closely with Julie A. Shah, an assistant professor of aeronautics and astronautics at MIT.

Mutlu’s team is building on previous work related to topics such as gaze aversion in humanoid robots, robot gestures and the issue of “speech and repair.” For example, if a human misunderstands a robot’s instructions or carries them out incorrectly, how should the robot correct the human?

At MIT, Shah breaks down the components of human-robot teamwork and tries to determine who should perform various tasks. Mutlu’s work complements Shah’s by focusing on how humans and robots actually interact.

“People can sometimes have difficulty figuring out how best to work with or use a robot, especially if its capabilities are very different from people’s,” says Shah. “Automated planning techniques can help bridge the gap in our capabilities and allow us to work more effectively as a team.”

Over the summer, UW-Madison computer sciences graduate student Allison Sauppé traveled to Steelcase headquarters to learn more about its efforts to incorporate Baxter into the production line. She found that perceptions of Baxter varied according to employees’ roles.

While managers tended to see Baxter as part of the overall system of automation, front-line workers had more complex feelings. “Some workers saw Baxter as a social being or almost a co-worker, and they talked about Baxter as if it were another person,” she says. “They unconsciously attributed human-like characteristics.”

SAP Executives Bullish on Internet of Things

SAP Executives Bullish on Internet of Things

If this blog is going to discuss the connected manufacturing enterprise, we’re going to continue to focus on the Internet of Things (IoT). Companies are lining up at present to provide thought leadership and products/services to support IoT.

To be sure, the Industrial Internet of Things is similar, yet different than the popularized IoT from the consumer world. It is also much more robust, since we’ve been at this for years.

Michael Lynch and Richard Howells of SAP chatted with me recently to bring me up to speed with what’s happening with that company and IoT.

SAP is not a point solution company, rather it endeavors to bring all the solutions into an integrated whole. Therefore, it is quite interested in fitting automated connectivity into its portfolio of solutions.

Background

SAP supplied some background information as a prelude to the conversation.

Supply Chain Management – While only 10 percent of industrial operations are currently using the connected enterprise, looking ahead to 2015, the next phase will be about making the cloud truly functional for your business to help streamline processes. Factories and plants that are ‘connected’ are more productive and smarter than their non-connected counterparts – those that don’t take advantage of this connectivity will start to lag behind.

Manufacturing/Automotive – Automotive companies are already starting to use IoT-enabled technology to predict faults, quickly respond to maintenance conditions and take proactive action. Through IoT there is end-to-end visibility across manufacturing operations. Companies are integrating factory-floor operations with core business processes to optimize production with real-time updates from machine data and gain predictive analytics to automate parts and consumable ordering to maximize revenue.

Conversation

Here are some notes from our conversation.

We seem to be at the top of the “hype cycle.” We have been doing this for a long time considering technologies such as RFID and tracking software and the like. But what has changed are the cost of all the chips and the development of big data platforms. There are now chips in everything.

Information from the data gathered is now incorporated into the business process so that managers can make most decisions based on real-time information. Management of the business process itself will help managers run their business better.

Edge devices connected to each other can make decisions faster—say for collision avoidance systems.

Business networks will become more important—physical networks will feed into business networks.

We’re in early stages of this industrial Internet of Things. The first phase is connecting things. SAP can really participate in the second phase where companies ask how they can change and optimize the way they do business—where OT/IT converge. The third phase, the most exciting one, takes it to the next level. With more information displayed well, you can see things you never thought about. Pirelli realized that by managing tire inflation it can offer service in fuel optimization. Customers can do things they couldn’t do before.

At the manufacturing level with products such as MII and EMI, SAP is connecting asset management systems for machine health, as well as looking for deeper machine knowledge.

Connecting to business is critical. Imagine a truck with sensors, it may have 50-100 sensors, but they aren’t coordinated. But if connected and with geolocation, I can see traffic jams and do rerouting. I can see a problem with a truck and schedule maintenance. Connected logistic capability enables managers to manage large depots and hubs. Add geolocation, you can track the specific truck. You can deliver predictive maintenance and service by sending a repair person before customer even knows there’s a problem. This improves customer service. With new visibility into manufacturing, companies are capturing data and using it for reduce downtime, predictive maintenance, building analytics and enabling business solutions.

Business value

Needless to say, SAP is bullish on the IoT given the foreseeable added business value to suppliers and customers.

 

Improve Manufacturing Operations With EMI Applications

Improve Manufacturing Operations With EMI Applications

Mark DavidsonOne of my prognostications from my last post on 2015 prognostications riffing off Jim Pinto’s post, dealt with analytics. I think this will not only be big, it will be essential to making you and your manufacturing enterprise competitive.

Mark Davidson of LNS Research, just wrote about the subject, Enterprise Manufacturing Intelligence (EMI) software, on the LNS blog site.

He asks, “1) What are the business results that manufacturing/production companies are achieving utilizing these software capabilities? And 2) What should you and your company be doing in regard to the opportunities presented by these technologies?”

He correctly addresses the core capability—operational and business performance dashboards that provide timely information to different users and roles.

Are people using these now? “61% of companies in the LNS Research Manufacturing Operations Management (MOM) survey of over 550 professionals indicated that their companies either currently have EMI dashboards or are planning to install them in the next year.”

Here’s why this is important. “The joint LNS Research and MESA ‘Metrics That Matter’ survey uncovered a significant difference in average annual improvements in the costs of producing a unit of goods. Current users of EMI software recorded 24.1% average annual improvements in Total Cost per Unit Excluding Materials versus the 13.1% overall improvement of all respondents.” And, “Companies that have implemented EMI software solutions are experiencing 7.2% higher OEE performance than those who have not. The average OEE for those who have EMI solutions in place was 74, versus 69 for those who do not.”

Make sure your stars are aligned

And, his last thought, “It is imperative that you not only focus on these supporting new technologies, it’s important to also align your organization’s key resources: people and processes, along with your technology strategy.”

Check out Mark’s complete article. Then check out potential partners for implementing EMI applications. Let me know how you’re doing.

2015 Automation, Business, Manufacturing Prognostications

2015 Automation, Business, Manufacturing Prognostications

Jim Pinto w beardLet the debates begin! Jim Pinto has published his 2015 prognostications in the latest JimPintoBlog.

Check out his entire list and enter your thoughts on his blog. I’ll highlight some of his thoughts and add some of my own.

 

Automation Industry Trends

New inflection points will change the leadership lineup.

GM—I do not expect big changes in the automation leadership lineup. Mitsubishi, Rockwell Automation and Siemens are dominant in their home areas and fighting it out in China and India. Siemens has a bit of an edge having been international for a longer period of time. But as automation commoditizes, perhaps some new entrants will grab some share. If Bedrock Automation can market well, watch out for it. On the process side, Invensys is gone, absorbed by Schneider Electric. So the process automation business becomes even more of a minor part of the overall businesses, like ABB, Emerson Process Management, and Yokogawa. The only interesting situation in that market area is Honeywell Process Solutions. But I don’t really expect any change there.

I think 3D printing (additive manufacturing) is a game changer and one of the most important things from last week’s CES. It’s not strictly automation, though.

From Jim:

  • Internet of Things (IoT): The Industrial Internet will transform the next decade. Intelligent sensors and networks will take measurement and control to the next level, dramatically improving productivity and efficiencies in production. Growth in 2015 will be bottom-up, not top-down.
  • Smaller, Cheaper Sensors: Everyone is looking for or working on smaller, cheaper sensors for widespread use in IoT. Expect fast growth for sensors this year.
  • Cloud Computing: Cloud computing technology reduces capital expenditures and IT labor costs by transferring responsibility to cloud computing providers, allowing secure and fast access for data-driven decisions. The significant gains in efficiency, cost and capability will generate continuing rapid growth in 2015.
  • 3D Printing in Manufacturing: Today, do-it-yourself manufacturing is possible without tooling, large assembly lines or multiple supply chains. 3D printing is reshaping product development and manufacturing.
  • Mobile Devices in Automation: The use of WiFi-connected tablets, smartphones and mobile devices is spreading quickly. Handheld devices reduce costs, improve operating efficiency, boost productivity and increases throughput. More and more employers are allowing BYOD (bring your own device).
  • Robotics: Millions of small and medium-sized businesses that will benefit from cheaper robots that can economically produce a wide variety of products in small numbers. The next generation of robots will be cheaper and easier to set up, and will work with people rather than replace them.
  • Control Systems Security: In spite of apprehensions over consumer security breach events, industrial cyber security has mostly been ignored due to lack of understanding of solution costs. Many companies struggle to justify what is seen as added cost to secure their operation. Major security breaches will change this attitude.

Business Technology Trends

Gartner’s top trends for 2015 (3) cover three themes: the merging of the real and virtual worlds, the advent of intelligence everywhere, and the technology impact of the digital business shift. There is a high potential for disruption to the business with the need for a major investment, or the risk of being late to adopt.

Here are the top Gartner trends:

  • Computing Everywhere: As mobile devices continue to proliferate, there will be increased emphasis on the needs of the mobile users. Increasingly, the overall environment will need to adapt to the requirements of the mobile user
  • 3D Printing: Worldwide shipments of 3D printers are expected to grow 98 percent in 2015, followed by a doubling of unit shipments in 2016, reaching a tipping point over the next three years.
  • Advanced, Pervasive and Invisible Analytics: The volume of data generated by embedded systems generates vast pools of structured and unstructured data inside and outside the enterprise. Organizations need to deliver exactly the right information to the right person, at the right time, so analytics will become deeply, but invisibly embedded everywhere.
  • Smart Machines: Advanced algorithms will allow systems to understand their environment, learn for themselves, and act autonomously.
  • Cloud Computing: The convergence of cloud and mobile computing will continue to promote the growth of centrally coordinated applications that can be delivered to any device. Applications will evolve to support simultaneous use of multiple devices.
  • Risk-Based Security and Self-Protection: All roads to the digital future lead through security. Organizations will increasingly recognize that it is not possible to provide a 100 percent secured environment. They will apply more-sophisticated risk assessment and mitigation tools. Every app needs to be self-aware and self-protecting.

GM—My take is that the biggest thing in this area is analytics combined with improved visualizations and dashboards that take advantage of smartphones and tablets. Cloud is here. IoT is here. Security will forever be an important part of business.

2015 Consumer Electronics Show

  • Wearable Devices: The time is right for wearable devices.
  • Practical green tech.
  • Sustainability and transportation: Tesla Model X all-electric SUV with the doors that open like a Delorean. Electric-assisted bike technology; electric scooter with swappable batteries and dashboard analytics.
  • Kid-Tech: Apps to help teach children science, math, and tech. Fun little robots that teach kids computer programming concepts. Drawing, design, and color patterns to help kids learn about robotics and computer programming.

GM—as I’ve already written, autonomous vehicles could be a game changer and 3D printing was huge. The outlier is drones. Who knows where that might go?

Future Prognostications 2015-2025

Here are ten prognostications for the next decade, picked from the World Future Society (7) forecasts, plus other readings and discussions with Futurists.

  • – Education: A major shift to on-line education and certification is already happening, and will continue steadily.
  • – Jobs: Advances in artificial intelligence will eliminate human workers.
  • – Robot Work Force
  • – Middle Class Impasse: delaying retirement, income stagnating
  • – Driverless cars
  • – Speak to Computers.
  • – Robotic Augmentation (exoskeletons)
  • – Health & Well-being: sensors everywhere
  • – Brain scanning will replace juries
  • -Energy: Futurist Ray Kurzweil notes that solar power has been doubling every two years for the past 30 years while costs have been dropping. He says solar energy is only six doublings (less than 14 years) away from meeting 100% percent of energy needs.

GM-There are going to be some disruptions and huge benefits from a number of these. Autonomous vehicles and health advances are fantastic. I wish education would change more quickly that it does. Even those who wish to disrupt education mainly only have the political agenda of “teachers’ unions” and driving down salaries. (Why is it a political agenda to drive down salaries. Shouldn’t we be trying to improve everyone’s lot in life?)

I’m not a fan of Kurzweil. 100% is not realistic—maybe residential, but not everything. Don’t think there’s enough volts there!

I think we are going to need those labor-saving, productivity-enhancing advancements because we’re actually facing a labor shortage in 10 years. Time to start thinking farther ahead.

Humans have a way of adapting to thrive. I am optimistic about the future!

Yes, Jim, I’m with you there!

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