arla foods @ arc forum march 2016 - i4.0 & packml
TRANSCRIPT
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Industry 4.0 in the Supply Chain of Arla Foods - Current PackML case - and future opportunities
Speaker: Arne Svendsen, Head of Corporate MES/Automation
Partially based on input from Industry thought Leaders:
Carsten Nøkleby(DK), Gavan Hood(AUS), Keith Unger(US), Valentijn de Leeuw,ARC.
March 2-3, 2016
Mercure Hotel Amsterdam City, the Netherlands
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Agenda
1. Arla Foods - Global Dairy Foods Manufacturer
2. Business environment & challenges
3. I4.0 overview
4. Mapping to Arla Foods’ Business needs
5. I4.0/Plug & Play - real world example of PackML
6. How I4.0 will become success - for all of us
7. Conclusions
8. Q&A
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Storyline of this presentation
1. Arla Foods - Global Dairy Foods Manufacturer
2. Business environment & challenges
3. I4.0 overview
4. Mapping to Arla Foods’ Business needs
5. I4.0/Plug&Play - real world example of PackML
6. How I4.0 will become success - for all of us
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Arla Foods Introduction (1:2)
13,500+
FARMER
OWNERS
FROM
7 COUNTRIES
70 Production
Sites
(EU, US,CHN)
MILK INTAKE
12,5+
BILLION KILO
19,000+
COLLEAGUES 10 BILLION EURO
REVENUE
PRODUCTS
SOLD IN
100+ COUNTRIES
Our vision: Creating the future of dairy to bring health and inspiration to the world, naturally
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Arla Foods Introduction (2:2)
Milk & cream Yoghurt
Butter & spreads Cheese
Cooking Nutritions Other beverages
1000’s of SKU’s - Arla Brands & Private Label
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2. Business environment & challenges
Storyline of this presentation
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Business Environment (1:3) Cooperative business since 1880
Cooperative dairy business - 1880 -> 2016
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Business Environment (2:3) A global supply chain today
• 70+ Production Sites, 50+ Distribution Centers
• Sales worldwide
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Business Environment (3:3) Strategic Focus
• Networked supply chain, fast moving consumer goods/cool chain
• A history of Mergers & Acquisitions
• Organic growth is the strategy now
• Partnering in Manufacturing & Distribution
• Core business: Product Innovation, Supply Chain & Distribution
• Non-core: Partnering with specialised service-providers
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3. I4.0 overview
Storyline of this presentation
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Industry 4.0 - high level (1:3) One (of many) views
The 1st (Steam)
The 2nd (Ford T)
The 3rd (www)
The 4th Industrial Revolution
Internet of Things (IoT) ”DIGITAL” -
New Business Models
INDUSTRIAL Internet of Things (IIoT) Smart Manufacturing
INDUSTRY 4.0
The good old www: Internet (of People)
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Industry 4.0 - high level (2:3) Technologies – and Connectedness
• (New) Technologies
• Connecting Anything
• => New Business Models
Connectedness & New Business Models
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Industry 4.0 - high level (2:3) Technologies – and Connectedness
Source: Acatech Report 2015: Smart Service Welt
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4. Mapping to Arla Food’s Business needs
Storyline of this presentation
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Mapping to Arla Business needs (1:4) TODAY: Connected, yet still hard work.
Technologies: - Automation - RFID, scanners - Printers - Wireless LAN
- AGVs - Robots - Inline measure - Analytical dev.
ERP Business system
FACTORY
Factory
Factory
Factory
Dist. Center
Dist. Center
Dist. Center
Functions: - Prod.Orders - BOM/Recipes - Collect ”all” data
- Traceability - Quality - Reporting - Analytics
DATA
MES
- AGVs - Robots - Inline measure - Analytical dev.
Technologies: - Automation - RFID, scanners - Printers - Wireless LAN
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Mapping to Arla Business needs (2:4) Arla Supply Chain needs:
We have Corporate standards for connecting ERP to MES to Shop Floor, so what’s next:
• Volatility in markets => Need Faster adapting the Supply Chain, the factories
• Utilise new technologies
• Optimise (IT) project implementations
• Move NON-core functions to external service providers
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Mapping to Arla Business needs (3:4) In I4.0 terms, the solution is:
Functions: - Core Realtime (remain on site) - Core Non-Realtime -> Cloud - Non-Core function -> ext. Service
FACTORY
Technologies/Sensors/Devices
Arla Internal BIG Data
Arla Strategic Innovation Center
Energy Optim.
Equipment Optim.
IT-systems Support
NON-core Service
Offerings
ERP
<-Faster Connect
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Mapping to Arla Business needs (4:4) What to consider, implementing I4.0
PARTIAL CONCLUSION:
• Decision: Which NON-core functions - to be bought as a service
• Cloud solutions: Costs move from CAPEX to OPEX
• INFORMATION strategy
• IT Security
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5. I4.0/Plug & Play – real world ex of PackML
Storyline of this presentation
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PackML - A real-world example (1:8) Build faster Packaging lines
ONE Business Solution
ERP
ONE Production Solution
MES/Manufacturing Operations Mgmt.
ONE Automation Solution
Process
Automation
Production
Automation
Packaging
Automation
• Adopted ISA95 in 2002 for SAP/MES integrations
• Corporate MES-solution, implemented on 50+ sites
• ISA88 Library in place for Process Automation
• Since 2013, focused on faster integration of production and packaging lines.
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PackML - A real-world example (2:8) Cheese Production Line – example
ON THIS ONE CHEESE PACKAGING LINE: 9 units, from 7 suppliers, from 4 countries
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PackML - A real-world example (3:8) The PackML ”USB” connector
• Arla has no large technology center. We build packaging lines, mainly by integrating standard units from our industry
• Challenge is to integrate units into a working line
• Faster, faster, faster
LINE Control
PackML
LINE Control
PackML PackML
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PackML - A real-world example (4:8) Cheese Production Line – example
PackML as interface to Units
PackML PackML
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PackML - A real-world example (5:8) Making it easy for the operators !
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PackML - A real-world example (6:8) Business Value
Success items:
Specification (forward to contract) much faster
Works across all automation (PLC) platforms
Test suitcase for remote FAT testing
Data => Business information from day-1
Harmonised Operator interfaces!
OEE SEE also ARC article:
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PackML - A real-world example (7:8) Business Value
Machine Project Time Cost Prod.Time
Specification -> Sign Contract ++ +
Integration tests (FAT & SAT) ++
Training (Operators & Maint.personnel) ++
Commisioning (”burn in”) +
Operations (5-8 years ?) Time Cost Prod.Time
Maintenance (time to repair) +
OEE / Optimisation +
Training (Operators & Maint.personnel) + +
Line changes/New units /New products + ++ ++
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PackML - A real-world example (8:8) Gathering momentum for PackML
• P&G and Arla Foods offer their company standards documents on OMAC website for unrestricted use (based on OMAC membership)
• Company and platform-independent OMAC Best Practice Guide is in progress. For end-users and Machine builders to get started. Nestlé is actively supporting this as well.
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6. How I4.0 will become success – for all of us
Storyline of this presentation
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For Industry 4.0 to get success (1:6) Connectedness need Protocols
Send Mail
Write English
Prequisite: Agree language
Receive Mail
Read English
”The Internet takes care of the rest ...”
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For Industry 4.0 to get success (2:6) What the Internet does for you...
An IP adress
Physical Infrastructure
WAN/LAN/ Wireless
IP Protocol
Mail protocol
Language
An IP adress
Physical Infrastructure
WAN/LAN/ Wireless
IP Protocol
Mail protocol
Language
The Internet
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For Industry 4.0 to get success (3:6) PackML – showing the way !
Line Control
An IP adress
Machine unit
An IP adress
Physical Infrastructure WAN/LAN/Wireless
OMAC PackML
Physical Infrastructure WAN/LAN/Wireless
OPC UA OPC UA
OMAC PackML
PackML is a good example of a high level ”DOMAIN” Protocol of I4.0
• An agreed common language, and lower levels taken care of
IIoT OPEN Standard Protocols
PackML in this case
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Mapping to Arla Business needs (4:6) OPC-UA – Basic I4.0 Protocol
Manufacturing Execution Processes/Functions ...
Milk Intake Area
Main Production Areas
Filling / Packaging Areas
Semi/Finish Goods Warehouse Areas
OPC UA Basic I 4.0 Protocol
OPC UA
SAP Business System
PackML PackML PackML
I4.0 I4.0 I4.0
Process Optimisation
OEE Detail Scheduling
Track & Tracing
Process Optimisation
OEE
Process Optimisation
OEE
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For Industry 4.0 to get success (5:6) Some of Current initiatives
• OPC-UA: https://opcfoundation.org/
• ISA-95 work group on Process Centric Messaging
• Smart Manufacturing Leadership Coalition: https://smartmanufacturingcoalition.org
• Open Connectivity Foundation: http://openconnectivity.org/
• Industrial Internet Consortium: http://www.iiconsortium.org/
• Alliance for Internet of Things Innovation (EU): https://ec.europa.eu/digital-agenda/en/alliance-internet-things-innovation-aioti
• At VDE.DE find: Reference Architecture Model Industrie 4.0 (RAMI4.0)
• OMAC is the organisation for automation and manufacturing professionals that is dedicated to supporting the machine automation and operation needs of manufacturing. www.OMAC.org
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For Industry 4.0 to get success (6:6) End users requirements to I4.0
1. Standardisation bodies (and there are many) must cooperate closely to define generic, OPEN Standards.
2. The end user requirements are: ”any application” to “any device” communication
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Wrap-up (1:2)
Storyline of this presentation
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Wrap-up (2:2) Conclusions
• Industry 4.0 is less about (new) technologies and more about Connecting & New Business Models – and doing it fast, maintainable, upgradable
• PackML is a clear case of Standardisation Benefits Cost reduction, faster projects, harmonised interface, operator efficiency, higher uptime. Its ready – use it!
• A background for understanding the ”Protocol challenges” of I4.0 (We, the end users, do NOT want to get caught - having to choose between proprietary platform communities in the Manufacturing space)
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Q&A
Your are always welcome to contact me at: [email protected]
www.Linkedin.com/in/ArneSvendsen