by Gary Mintchell | Jul 17, 2020 | Business, Commentary, News
John Dyck is now CEO of CESMII, a US government initiative promoting Smart Manufacturing. I worked with him some at MESA International and in his previous role at Rockwell Automation. He sent me this note the other day, “I wanted to share with you a link to a recording of a Congressional Briefing (virtual) that I participated in (with ASME) on rethinking the manufacturing supply chain. My contributions start at the 10:20 mark and are ~10 minutes. This is part of a significant initiative that we’ve started here, which you see in the final 2 minutes of my presentation.” There are few people in Congress with any kind of science or engineering background. Let alone manufacturing and production. I hope they take the time to watch and learn.
Unlike the initiatives in Germany and China that have the full support from the top of the government, American government might fund initiatives such as CESMII, but as far as the top reaches of Congress and the administration are concerned, the outcomes are more along the lines of wishing and anxiety.
If you are American and involved in this area, listen and see where you might help. If you are outside America, you’ll find it interesting what we’re working on.
by Gary Mintchell | Dec 10, 2019 | Commentary, Internet of Things, Manufacturing IT, Operations Management
Top Tens and Top Twenties of the past or future year have never been my favorites. However, one can perceive trends and strain out little nuggets of gold by scanning several. Especially industrial taken broadly along with Internet of Things (IoT) and other current digital trends. I just had an interesting chat with Sean Riley, Global Director of Manufacturing and Transportation for Software AG, who released his Top Ten for 2020.
Following are his ideas interspersed with a few of my comments.
Cost Management Becomes Exceptional
As uncertainty enters the global manufacturing outlook, enterprises will become myopically focused on cost reductions. This will drive organizations to find more efficient methods of providing IT support, leveraging supplier ecosystems and simplifying value chains. [GM-much of my early work was in cost management/reduction; this is a never-ending challenge in manufacturing; however, tools continue to evolve giving us more and better solutions.]
A Blurred Line Between Products & Services
Manufacturers continue their product innovation quest and more manufacturers will begin focusing on how to deliver products as a service. The Manufacturers that have already created smart products and have elevated service levels will now begin to work out the financing considerations needed to shift from a sales based to a usage based revenue model. [GM-This is a trend most likely still in its infancy, or maybe toddler-hood; we see new examples sprouting monthly.]
Moving To Redefine Cost Models To Match Future Revenue Streams
Anticipating the shift to continual revenue streams, manufacturers will seek to shift costs to be incurred in a similar manner. This will be initially seen as a continued push to subscription based IT applications. While much progress has already been made, a larger focus will occur. [GM-I like his idea here of balancing capital versus expense budgets, continually finding the best fund source for shifting costs.]
IT Focuses on Rapid Support for Growth
The lines between business and IT users become blurred as no-code applications allow for business users to create integration services. IT professionals will leverage DevOps & Agile methodologies alongside of microservices and containers to rapidly develop applications that are able to generate incremental growth as requested by business users. This will be critical to the near term success for manufacturers, especially with economic headwinds that seem to be growing stronger. [GM-I didn’t ask about DevOps, but this idea is springing into the industrial space; cloud and software-as-a-service provide scalability both up and down for IT to balance costs and services.]
Industrial Self-Service Analytics Become Mission Critical
Industrie 4.0 / Smart Manufacturing initiatives continue to receive greater amounts of investment but in the near term, manufacturers will focus on unleashing the power of the data they already have. Historians, LIMS, CMMS’ have valuable data going to and in them and enabling production engineers to leverage that data rapidly is critical. Industrial Self-Service Analytics that allow production and maintenance professionals to leverage predictive analytics without IT assistance will sought as a powerful differentiating factor. [GM-we are beginning to see some cool no-programming tools to help managers get data access more quickly.]
Industrie 4.0 / Smart Manufacturing Initiatives Continue to Draw Investment
It’s no surprise that Manufacturers will continue to invest in Industrie 4.0 as the promises are great however, the scaled returns have not been realized and won’t be realized in the near term. The difficult of implementing these initiatives has surpassed manufacturers expectations for several reasons. First, traditional OT companies were trusted to deliver exceptional, open platforms and that wasn’t delivered. Secondly, collaboration efforts between IT & OT professionals proved to be more convoluted and difficult than expected. [GM-I’m thinking these ideas became overblown and complex, and that is not a good thing; to swallow the whole enchilada causes stomach pain.]
Artificial Intelligence Enters the Mix
AI won’t allow for users to sit back and relax while AI handles all of their tasks for them but it will make an appearance in back office tasks. Freight payment auditing, invoice payment and, in some select areas, chatbots will be the initial main stream uses of AI and will be seen as not becoming an anomaly but be understood to be more mainstream this year. [GM-I think still an idea looking for a problem; however some AI ideas are finding homes a little at a time.]
3D Printing Find New Uses
While this technology has steadily crept into production lines, the push towards usage based product pricing will have the technology move into after market services. Slow moving parts will be the first target for this technology which will help to free up much needed working capital to support financial transformation. [GM-watch for better machines holding tighter tolerances making the technology more useful.]
5G & Edge Analytics Enable New Possibilities
As Industrie 4.0 is continued to be pursued, Manufacturers will implement new initiatives that could not previously be realized without the high speed data transmission promises of 5G or the ability to conduct advanced analytics at the edge where production occurs. This will also provide manufacturers with new methods to securely implement Smart Manufacturing initiatives and in new locations that were not previously feasible due to connectivity issues. [GM-5G is still pretty much a dream, but there is great potential for some day.]
Security Still Remains a Critical Focus
With the increasing rate of IoT sensors, IT-OT convergence, the usage of API’s and the interconnectivity of ecosystems ensuring data security remains a top priority for manufacturers. As more data becomes more available, the need to increase levels of security becomes ever greater. [GM-ah, yes, security–a never-ending problem.]
by Gary Mintchell | Jul 30, 2018 | Commentary, Technology
Everybody has a list of transformative technologies. A news release from an advisory firm, ABI Research, came my way a few weeks ago. Its analysts came together and compiled a list of eight technologies they feel will be transformative in manufacturing and then they fit them with Smart Manufacturing. That latter phrase is one of the descriptors for the new wave of manufacturing strategy and technology.
We will have difficulty contesting the list. Most of these are, indeed, already well along the adoption path. I find it interesting that they refer to IIoT platforms, but they don’t view those as transforming technologies but rather as a sort of sandbox for the technologies to play in.
[This is a Gary aside—when an analyst firm makes a list of suppliers, I’d advise not considering it to be comprehensive. Rather the list is usually comprised of companies that the firm’s analysts get to sit down with and receive in-depth briefings.]
The ABI report identifies eight transformative technologies:
1 Additive manufacturing
2 Artificial intelligence (AI) and machine learning (ML)
3 Augmented reality (AR)
4 Blockchain
5 Digital twins
6 Edge intelligence
7 Industrial Internet of Things (IIoT) platforms
8 Robotics
From the ABI news release, “The manufacturing sector has already seen increased adoption of IIoT platforms and edge intelligence. Over the next ten years, manufacturers will start to piece together the other new technologies that will eventually lead to more dynamic factories less dependent on fixed assembly lines and immobile assets. Each step in this transformation will make plants and their workers more productive.”
“Manufacturers want technologies they can implement now without disrupting their operations,” says Pierce Owen, Principal Analyst at ABI Research. “They will change the way their employees perform jobs with technology if it will make them more productive, but they have no desire to rip out their entire infrastructure to try something new. This means technologies that can leverage existing equipment and infrastructure, such as edge intelligence, have the most immediate opportunity.”
ABI summary of its research
The transition towards a lights-out factory has started, but such a major disruption will require an overhaul of workforces, IT architecture, physical facilities and equipment and full integration of dozens of new technologies including connectivity, additive manufacturing, drones, mobile collaborative robotics, IIoT platforms and AI.
IIoT platforms must support many of these other technologies to better integrate them with the enterprise and each other. Those that can connect and support equipment from multiple manufacturers, such as PTC Thingworx and Telit deviceWISE, will last.
After decades of producing little more than prototypes, the AM winter has ended and new growth has sprung up. GE placed significant bets on AM by acquiring Arcam and Concept laser in 2016, and Siemens announced an AM platform in April 2018. Other leading AM specialists include EOS, Stratasys, HP and 3D Systems.
ML capabilities and simulation software have made digital twins extremely useful for product development, production planning, product-aaS, asset monitoring and performance optimization. Companies with assets that they cannot easily inspect regularly will significantly benefit from exact, 3D digital twins, and companies that manufacture high-value assets should offer digital twin monitoring as-a-service for new revenue streams. Innovative vendors in digital twins and simulation software include PTC, SAP, Siemens, and ANSYS.
The above technologies have already started to converge, and robotics provide a physical representation of this convergence. Robotics use AI and computer vision and connect to IIoT platforms where they have digital twins. This connectivity and AI will increase in importance as more cobots join the assembly line and work alongside humans. The robotics vendors that can integrate the most deeply with other transformative technologies have the biggest opportunity. Such vendors include the likes of ABB, KUKA, FANUC, Universal Robots, Rethink Robotics and Yaskawa.
“The vendors that open up their technologies and integrate with both existing equipment and infrastructure and other new transformative technologies will carve out a share of this growing opportunity. Implementation will go step-by-step over multiple decades, but ultimately, how we produce goods will change drastically from what we see today,” concludes Owen.
by Gary Mintchell | Jul 23, 2018 | Commentary, News
Most companies think they lead their Industry 4.0 competitors in AI and robotic technologies. This sounds like Garrison Keillor describing the mythic village of Lake Wobegon, MN where “all the children are above average.” I’m finding increased interest in digital manufacturing, Industry 4.0, smart manufacturing, or whatever the initiative is called locally.
As always, hype exceeds reality until that point in time when we suddenly realize that everyone is doing it rather than talking about it. Cloud computing falls into that category.
A huge confidence gap exists between the number of companies that try digital manufacturing strategies and those that successfully apply them, a new McKinsey & Co. survey found. In the 2018 Manufacturing Global Expert Survey, 92 percent of respondents think they lead or are on par with competitors in Industry 4.0 manufacturing strategies.
The survey consisted of 700 companies in seven nations. Each had at least 50 employees and $10 million in annual revenue. It found that two-thirds rank digitizing the production value chain as a top priority. Industry 4.0 pursuits fall in three areas:
Connectivity – Using digital performance management and augmented reality to move the right information to the right people in real time. These tactics help communicate interactive work instructions and standard operating procedures.
Intelligence – Advanced analytics and artificial intelligence are fostering better decision making. Examples: Predictive maintenance; digital quality management and AI-driven demand forecasting.
Flexible Automation – New robotic technologies are safer and improve productivity. Human-machine interactive “cobots” and driverless guided vehicles are changing life on the factory floor.
“Despite this focus and enthusiasm, companies are experiencing ‘pilot purgatory.,’ They have significant activities underway. But they are not seeing meaningful bottom-line results,” said Richard Kelly, a McKinsey partner.
China, India and the United States think they lead their competition in digital manufacturing. Japan was an outlier. Its view for the potential of digital manufacturing dropped from over 90 percent in 2017 to 75 percent. Japan’s loss of enthusiasm was far greater than declines in the other three countries. Even so, the success in implementing Industry 4.0 solutions rose significantly in Japan, China and the U.S. while stagnating in Germany.
Digital manufacturing topped the operations-strategy agenda at 68 percent of companies. India led China and Brazil in setting an Industry 4.0 agenda. At 63 percent, the U.S. was 5 percentage points below the 68 percent average.
Companies are piloting an average of eight different Industry 4.0 solutions. India leads with 10.6 digital pilots. China had 10.2 and Brazil had 8.9. The U.S. was fourth at 8.5.
“The challenge is to roll out successful pilot projects to the entire organization,” Kelly said. “That’s what makes transformation happen.”
Across business sectors, connectivity, intelligence and flexible automation solutions showed relevance. Pilots under way trailed that sentiment by 16 to 19 points.
A bigger drop off came when comparing pilot programs in the three areas with those that made it to scale. Only 30 percent rolled out companywide. Industrial automation, software and semiconductors fared best. Healthcare, automotive components and paper and packaging trailed.
In Germany, the U.S., Japan and China, optimism toward digital manufacturing fell after an all-time high in 2017.
“It is quite possible companies still believe in the potential of the various technologies of Industry 4.0,” Kelly said. “But pilot purgatory has been demoralizing. Many are less hopeful about their individual chances of reaping benefits at scale. But we’re seeing great success in the number pilot projects being launched, and the general attitude toward digital manufacturing is quite positive.”
by Gary Mintchell | Jul 31, 2017 | Internet of Things, Operations Management
We keep touting manufacturing jobs in America. An electronics assembly company has announced another plant in the US. When a process automation company lands a contract with a customer, it sends a press release touting the fact. But in process industries, the amount of the contract can be significant.
I seldom see one in discrete manufacturing.
On the heels of the Taiwanese manufacturer known as Foxconn announcing plans to perhaps build an assembly plant in Wisconsin, local automation supplier Rockwell Automation announces a partnership.
Main Point: This may be the most significant release I’ve ever seen from Rockwell. Not in terms of business value. Read this carefully and tell me where there is a product mentioned! This encompasses two things–one is workforce development and training. The second thing is a strategy. Sure, there will be products involved probably. But Connected Enterprise sounds more strategic, more consultative. This is decidedly not one of those things where we’ll cut you a deal if you buy 5,000 PLCs.
Maybe I’m reading too much into it, but I’m thinking this signals a direction shift under new CEO Blake Moret. Could be interesting times.
Downside: However, my research on Foxconn and America reveals a pattern of big announcements followed by little activity. For the people of rural Wisconsin, I hope this time they follow through.
News: Hon Hai Precision Industry Co. Ltd., also known as Foxconn, and Rockwell Automation announced July 28, 2017, that they are collaborating to implement Connected Enterprise and Industrial Internet of Things (IIoT) concepts for smart manufacturing in Foxconn’s new U.S. facilities.
The companies will also collaborate to develop and apply Smart Manufacturing solutions at Foxconn’s global electronics assembly operations and within the related industry ecosystem. Technologies and extensive domain expertise of both companies will be combined to deliver a state-of-the-art manufacturing system with unparalleled levels of operational efficiency.
Terry Guo, Foxconn chairman and CEO, said, “I am very excited about the opportunity for Foxconn and Rockwell Automation to work together. Foxconn is the global leader in electronics design manufacturing, and Rockwell Automation is the world’s largest company dedicated to industrial automation and information. I am confident that together we will increase operational efficiencies in electronics manufacturing to new levels, achieving the vision of Smart Manufacturing and Made in China 2025.”
The companies will also work together on workforce development and training. Specifically, as Foxconn increases its employee base in the United States, it has committed to participate in the previously announced program developed by Rockwell Automation and ManpowerGroup to upskill military veterans and create a pool of certified talent for in-demand advanced manufacturing roles across the United States.
Blake Moret, Rockwell Automation president and CEO added, “We are excited about the opportunity to work with a global technology and manufacturing leader to deliver advanced IIoT solutions to the electronics manufacturing industry. Our work with Foxconn will further demonstrate the power and broad applicability of The Connected Enterprise. We are also pleased that Foxconn shares our commitment to expanding and upskilling the U.S. workforce to ensure there is the necessary talent for advanced manufacturing roles.”
