by Gary Mintchell | Mar 2, 2016 | Operations Management, Software
Much time has been invested learning about GE’s new directions, including GE Digital, Digital Twin, Digital Thread, Industrial Software, and Industrial Internet of Things. Then I saw news coming from GE’s annual report–that it has a $5 billion industrial software and analytics company within it that is growing at 20% annually. That is a significant industrial software giant. Letting the GE letter speak for itself:
Digital Industrial
“We are just beginning our transformation as the Digital Industrial Company. The Internet has had a massive impact on consumer productivity and commerce. Its impact on industrial markets is just now being realized. By 2020, 10,000 gas turbines, 68,000 jet engines, more than 100 million lightbulbs and 152 million cars will be connected to the Internet.”
“At GE, we have decided to generate and model this data ourselves—both inside the Company and with our customers. This is what we mean by becoming a Digital Industrial. Our Digital Industrial capabilities will expand our growth rate, improve our margins and bring us closer to our customers.”
As for the Industrial Internet of Things
“There was a time when every sale had a clear endpoint, followed only by routine service and maintenance. Now, sensors on our products send constant streams of data, analyzed and translated into upgrades that drive productivity in industries where even the smallest incremental efficiency can mean very large gains. Capturing it will be a mission in every one of our businesses. Our aspiration is to offer with every GE product a pathway to greater productivity through sensors, software and big-data analytics.”
Benefits
“Our investments are aimed at delivering more productivity for our customers and GE. The performance, so far, of technology companies to generate industrial productivity has been subpar. Industrial productivity, which averaged 4% annually from 1990-2010, is only 1% today. This is because pure connectivity does nothing to create value. Operational productivity requires domain data, physical and digital engineering models, industrial analytics and the ability to modify machines to achieve different outcomes. Ask a hospital CEO how their results have changed once they implemented a new Electronic Medical Record System, and the answer is typically silence. They still lack the data that drives outcomes.”
Industrial Software Killer App
“The ‘killer app’ for the Industrial Internet is GE’s Digital Twin. GE is creating living digital profiles of 500,000+ industrial machines in the field to provide new opportunities for customer growth and productivity. The Digital Twin is a software model of a physical asset or process that will make it possible to manage more precisely than we ever thought possible and deliver better outcomes. The Twin will create new business models and services for GE’s customers and our businesses. On the GE90 engine, we have used Digital Twins to increase fleet availability while saving tens of millions of dollars in unnecessary service overhauls. In rail, we are using Digital Twin models of the Evolution Locomotive to enable our customers to minimize fuel consumption and emissions. The data economy for the industrial world has arrived, and GE is in a unique position to lead it. We enter it bringing decades of deep domain expertise about our industries and volumes of data about our machines and their processes that no one else can match.
Top 10 Software Company
“With this technical leadership, GE can become a top 10 software company by 2020. At the center of this effort is our cloud-based operating system, Predix. Predix offers our customers complete situational awareness to monitor, and continually improve, equipment performance. In practice, it will assure everyone in a given enterprise–whether it’s an airline, a hospital, a railroad, an oilfield, or a wind farm–a real-time stream of relevant information, accessible on mobile assets. Everything we are doing in data and analytics comes together in this operating system.
“We plan to open Predix to our customers and other industrial companies. This gives GE a unique opportunity to create value in the platform ecosystem. We launched Predix in the second half of 2015. By the end of 2016, we expect it to have 200,000 assets under management, 100 GE applications and 20,000 developers creating many more applications.”
Proof of Industrial Internet
“GE applications provide a show site for the Industrial Internet. This year we will generate $500 million of productivity by applying data and analytics inside GE. We will have 75 ‘brilliant factories’ driving yield, cycle and uptime through model-based design. We are using model-based design on our New Product Introductions which allows us to develop and launch new products with reduced cycles, lower cost and higher quality. We can correlate material usage with product performance to change the work scope in a service agreement which drives productivity for GE and the customer.”
by Gary Mintchell | Mar 1, 2016 | Automation, Internet of Things, Networking, Operations Management, Safety, Wireless
Enabling Industrial Internet of Things (IIoT), Reliability, Scalability, and pursuing Real ROI encompass the current mantra of Fluke. Maybe you only know that company for its multimeters or infrared cameras. Well, there is much more behind the curtain.
The company has focused product development on mobile solutions, wireless communications, and data. This quarter’s product releases reflect all of that.
Infrared
The new Fluke Ti450 Infrared Camera takes focus to a new level of clarity with MultiSharp Focus. An out-of-focus thermal image can give you data that may lead to misdiagnosis — potentially costing you thousands — with no way to correct it once it has been captured, short of taking new images. This new infrared camera solves this problem by delivering images automatically focused throughout the field of view.
“We are excited to announce this new technology, because it makes a real difference in situations where you have objects at multiple distances that you want in focus. Places like substations, motors driving a long production line, or electrical panels with components at varying depths,” notes Chris Rayburn, thermography business director.
MultiSharp Focus is a new technology that rapidly takes multiple images and combines them to produce one in-focus image. The advanced focusing system enables users to capture an automated, focused image of multiple targets at once, delivering the image clarity needed by professional thermographers and maintenance managers to produce top-quality results and avoid costly rework.
Waveforms
Today’s industrial machinery is more reliable and efficient, but can also be more difficult to troubleshoot because of the complexities of its advanced systems. The new Fluke ScopeMeter 120B Series Industrial Handheld Oscilloscope features Connect-and-View technology that recognizes signal patterns and automatically sets up the scope’s triggering, amplitude, and time base eliminating the typical trial-and-error setup process. Once the waveform is captured, the new IntellaSet intelligent measurement detection automatically selects key measurements based on the acquired waveform type and displays the most relevant measurement values (for example, Vrms and Hz for a line voltage signal, or Vpeak-peak and Hz for a square wave), helping technicians easily identify and characterize potential signal faults.
The 120B Series also features Event Capture function that captures and identifies elusive intermittent events and lists all those events that exceed a predetermined threshold. This lets technicians identify key events quickly, rather than combing through large data sets, reading by reading.
Fluke Connect
The Industrial Internet of Things is all about connections and data. As part of Fluke Connect— a system of wireless test tools that communicate via the Fluke Connect app, or Fluke Connect Assets software, a cloud-based solution that gathers measurements to provide a comprehensive view of critical equipment status — the 120B Series can automatically record waveform data to the Fluke Connect app on smartphones or tablets ensuring accuracy and eliminating manual recording of data. Those measurements are then wirelessly uploaded to the cloud and can be combined with measurement data from multiple Fluke Connect test tools to create and share reports from the job site via email and collaborate in real time with other colleagues, increasing productivity in the field. Storing then comparing and contrasting waveforms of specific asset test points over time enables maintenance engineers to better identify and troubleshoot conditions that can lead to failures.
Work Orders
Fluke introduces Work Orders, the latest enhancement to the Fluke Connect Assets, an asset management software solution that works with the Fluke Connect system of wireless test tools. Using this new Fluke Connect Assets feature maintenance managers can:
- View complete work order history coupled with measurement data related to a specific plant asset
- Create work orders from anywhere
- Confidently assign the job to the appropriate technician and balance the task with other work orders in the system.
Technicians are provided with actual measurement data right in the work order allowing them to better understand the problem and work instructions.
The Fluke Connect system allows entire maintenance teams to capture and wirelessly share data via their smartphones. Using the AutoRecord feature measurements are transferred directly from Fluke Connect wireless test tools – eliminating transcription errors – and can be uploaded to FlukeCloud storage. Measurements can be assigned to a specific asset for sharing and analysis. Technicians can collaborate with their colleagues to discuss problems while sharing data and images in real time with ShareLive video calls, which speeds problem solving, decision-making and approvals.
Clamp Meters
Often the most frustrating task for electricians and maintenance technicians is to troubleshoot intermittent faults because they rarely occur at convenient times. The new Fluke Connect-enabled 370 FC Series Clamp Meters log measurements to pinpoint intermittent faults precisely without the need for the technician to be present. Those measurements are then wirelessly transmitted to the Fluke Connect app on smartphones or tablets and automatically uploaded to the cloud, keeping technicians outside the arc flash zone and away from dangerous moving machinery, improving safety.
The CAT IV 600 V, CAT III 1000 V safety-rated clamp meters offer advanced troubleshooting performance to capture a wide range of measurements with a single tool, including:
- Proprietary in-rush measurement technology to filter out noise and capture motor starting current exactly as the circuit protection sees it;
- Integrated variable frequency drive low pass filter (376 FC and 375 FC models only) for accurate motor drive measurements;
- True-rms voltage and current for accurate measurements on non-linear signals;
- 500 mV dc measurement range to interface with other accessories (376 FC and 375 FC models only);
- Expanded measurement range to 2500 A ac with the iFlex flexible current probes, which provide access to large conductors in tight spaces.
As part of Fluke Connect— the industry’s largest system of software and more than 30 wireless test tools — technicians can wirelessly transmit measurement data from the 370 FC Series clamp meters and other test tools to their smartphones for secure storage on the Fluke Cloud and team access from the field. With the Fluke Connect smartphone app, technicians can combine measurement data from multiple Fluke Connect test tools to create and share reports from the job site via email and collaborate in real time with other colleagues with ShareLive video calls, increasing productivity in the field.
by Gary Mintchell | Feb 3, 2016 | News
ABB has had a rugged financial period, but its latest financial results indicate a righting of the ship. I’m not a financial analyst; I didn’t sleep at a Holiday Inn Express; but, I’m interested in corporate strategies and performance especially among industrial technology suppliers.
What follows is mostly from the company press release. However read CEO Ulrich Spiesshofer’s remarks. There are two significant comments. One–recovery in the Power Systems business. ABB moved some talented individuals from the process automation business over to Power Systems. It wasn’t an overnight success, but the team has made an impact. Two–“productivity improvements”, which is usually a euphemism for fewer people doing more work.
Anyway, I noticed a little bounce in ABB’s stock price in the last week. Looks promising.
Full-year 2015 Summary:
- Next Level strategy delivering positive results
- Orders and revenues stable, order backlog up 5%
- Operational EBITA margin up 60 bps to 11.8%
- Operational earnings per share +5% (constant currency)
- Cash return on invested capital up 70 bps to 13.4%; free cash flow +16%
- Power Systems ‘step change delivers strong financial turnaround in 2015
- 7th consecutive dividend increase to CHF 0.74 per share proposed
- 4 new Board members proposed for election at the next annual general meeting
Q4 Summary:
- Orders (-2%) reflect challenging market conditions; base orders -6%
- Operational EBITA margin up 60 bps to 11.7%
- Power Systems reached target margin corridor; strategic portfolio review of Power Grids on track
- Accelerated productivity and cost out measures in white collar, supply chain and operational excellence
- Net income of $204mn including a total $496mn restructuring and related expenses
- Cash flow from operating activities +18%
Full-year and Q4 financials impacted by currency translation due to strong appreciation of US dollar
“We took decisive actions to improve our customer focus and realized profitable growth in target segments to mitigate the impact of significant market headwinds. At the same time, we simplified the organization, drove productivity improvement and accelerated our cost reductions,” said CEO Ulrich Spiesshofer. “As a result, we increased margin and free cash flow. The successful turnaround in Power Systems demonstrates our execution capabilities and our focus on sustainable value creation. With our strong financial position and a leaner, more market oriented organization we are well placed to manage through the global uncertainties which we will continue to face in 2016.”
Short-term outlook
Macroeconomic and geopolitical developments are signaling a mixed picture with continued uncertainty. Some macroeconomic signs in the US remain positive and growth in China is expected to continue, although at a slower pace than in 2015. The market remains impacted by modest growth in Europe and geopolitical tensions in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company’s results.
Full-year 2015 Group Results
“We are shifting our center of gravity, fully in line with our Next Level strategy by driving organic growth in targeted segments, strengthening competitiveness and lowering risk,” said CEO Ulrich Spiesshofer. “We drove technology leadership with the launch of YuMi, the first truly collaborative robot. We strengthened our technology leadership position in the area of the Internet of Things, Services and People, for instance with our innovative Octopus offering for optimized vessel operations. Furthermore, our focus on high growth markets such as food and beverage and Africa is paying off.”
Orders were steady for the year (down 12 percent in US dollars). Large orders (above $15 million) grew 10 percent (down 5 percent in US dollars) and offset a base order decline of 3 percent (14 percent in US dollars). The order backlog at the end of December 2015 amounted to $24.1 billion, an increase of 5 percent (down 3 percent in US dollars) compared with the end of 2014. The book-to-bill ratio remained steady at 1.03x.
Revenues were steady (down 11percent in US dollars) compared with 2014 as revenue growth in Power Systems and Power Products offset the decline in Discrete Automation and Motion and Process Automation. Service revenues grew 6 percent (down 8 in US dollars) and grew 1 percentage point as a percent of total group revenues (adjusted for divestitures; 0.5 percent prior to adjustment).
ABB continued to execute its Next Level strategy in 2015 which resulted in a 60 basis points improvement of the operational EBITA margin to 11.8 percent and free cash flow generation improving 16 percent in constant currency (6 percent in US dollars) to $3 billion. The main drivers for the group’s enhanced profitability were the successful turnaround of Power Systems and continued cost savings and productivity measures.
“The strong execution of our strategy is showing results,” said Ulrich Spiesshofer. “In 2015 we continued to focus on growth opportunities in a disciplined way while mitigating the impact of market headwinds through capacity adjustments, productivity measures and cost reductions. Transforming ABB, we have made good progress towards enhancing our performance culture by implementing our new performance management and compensation model for more than 70,000 people in 2015. The divisional realignment has been completed and the strategic portfolio review of the Power Grids division is to be completed in 2016 as previously announced.”
Net income for the year amounted to $1.9 billion and was impacted by $626 million of restructuring and related expenses for capacity adjustments and white collar productivity measures. Successful measures to improve net working capital contributed to higher cash flow from operating activities (constant currency) and free cash flow conversion and supported an increased cash return on invested capital2 (CROI) of 13.4 percent. Basic earnings per share in the period was $0.87 and operational earnings per share2 on a constant currency basis was $1.35, an increase of 5 percent.
by Gary Mintchell | Feb 2, 2016 | Productivity
Ashton begins, “Brainstorming was invented by advertising executive Alex Osborn in 1939 and first published in 1942 in his book How to Think Up.” Osborn liked the process because it generated lots of ideas. But questions about its utility sprang up.
Ashton continues, “Follow-up research tested whether larger groups performed any better. In one study, 168 people were either divided into teams of five, seven, or nine or asked to work individually. The research confirmed that working individually is more productive than working in groups. It also showed that productivity decreases as group size increases.”
Personal productivity
Get that, an individual can be just as productive as a group. And the larger the group, the lower the productivity.
“Another assumption of brainstorming is that suspending judgment is better than assessing ideas as they appear. Researchers in Indiana tested this by asking groups of students to think of brand names for three different products. Half of the groups were told to refrain from criticism and half were told to criticize as they went along. Once again, independent judges assessed the quality of each idea. The groups that did not stop to criticize produced more ideas, but both groups produced the same number of good ideas. Deferring criticism added only bad ideas.”
The mantra is don’t criticize anything. Just write ideas. People who lead these things are always over the top enthusiastic. More ideas does not equal better ideas.
“Research into brainstorming has a clear conclusion. The best way to create is to work alone and evaluate solutions as they occur.”
And the conclusion:
“Having ideas is not the same thing as being creative. Creation is execution, not inspiration. Many people have ideas; few take the steps to make the thing they imagine.”
The blog post was excerpted from How to Fly a Horse: The Secret History of Creation, Invention, and Discovery, by Kevin Ashton, available here.
by Gary Mintchell | Feb 1, 2016 | Automation, Networking, News, Organizations
Time Sensitive Networking (TSN) becomes a critical component of companies’ Internet of Things technology strategy. In the past year, I’ve written about TSN and (mostly) AVnu Alliance, four times.
Engineering Software and Industrial Networking Trends
ODVA Enhances EtherNet/IP Industrial Networking Specifications
OPC Foundation Real-Time And Technology Partners
AVnu Alliance Launches Support for Industrial Ethernet Market
Today brings another AVnu Alliance and Time Sensitive Networking press release. Two new members have joined. And one isn’t really a “joiner” company.
Two New Time Sensitive Networking Members
“Rockwell Automation and Kollmorgen, both leaders in industrial automation, bring valuable expertise to AVnu Alliance activities incorporating new standards such as Time Sensitive Networking (TSN) into a common networking foundation.”
Rockwell Automation isn’t really a “joiner company”. It’s alliances are usually smaller with only a few competitors. This one is interesting.
“We continue to evolve our industrial control and information solutions to help customers drive real-time productivity and innovation as they strive towards building a Connected Enterprise.” said Joe Kann, vice president, Global Business Development, Rockwell Automation. “By participating in the AVnu Alliance, we plan to share our industry knowledge and work together with other members towards further enhancing standard IP-based Ethernet for manufacturing.”
Kollmorgen manufactures high performance motion control solutions.
“Kollmorgen’s business as a provider of innovative high-speed motion solutions is driven by ever-evolving customer needs for high-performance, multi-device fieldbus options,” said Steve Crass, VP North America Industrial Automation and Aerospace & Defense at Kollmorgen. “Joining AVnu Alliance is a logical next step for our business and AVnu provides us with a forum that will support open systems architectures for many years to come.”
According to the Association, “The addition of these companies exemplifies the importance of the continued evolution of standard Ethernet through TSN. The experience with control networking that these companies possess will complement the existing efforts within the AVnu Alliance to define a common foundation for the Industrial Internet. This next step for standard Ethernet will enable complete convergence of standard IT traffic and the control system and will enable IoT for the industrial, automation and manufacturing sectors.”
“Rockwell Automation and Kollmorgen have both shown leadership in their respective fields over the years. The AVnu Alliance looks forward to their contributions and forward-thinking philosophies when it comes to automation and how it can improve a variety of industrial processes,” said Gary Stuebing, AVnu Alliance President. “They both bring a range of products and technologies that will complement and bolster our efforts with TSN in the industrial space.”
