atlanta regional internet of things forum · atlanta regional internet of things forum . ... new...
TRANSCRIPT
© 2014 All rights reserved. Do not distribute. Hosted by 1
Realizing the IoE Opportunity with IoT Atlanta Regional Internet of Things Forum
Manufacturing Business Outcomes with IoT/IoE
Chet Namboodri
Global Director, Manufacturing Industry Marketing and Business Development
23 April 2015
Boosting Agility, Efficiency, NPI Revenues, and Customer Experience with the Internet of Everything
© 2014 All rights reserved. Do not distribute. Hosted by 4
The Internet of Everything (IoE) in Manufacturing
Manufacturing Trends and Imperatives
Vision: Connected Factory of the Future
Business Outcomes with Connected Manufacturing
Capture the Value with Connected Factory
© 2014 All rights reserved. Do not distribute. Hosted by 5
Trends in Manufacturing: Driving the Adoption of the Internet of Things (IoT) and IoE
Supply Chain Demand Chain
New Product
Introduction
Acceleration
Robotic,
Automation
Advancements
Manufacturing
Right-Shoring
Additive
Manufacturing,
Materials
Advancements
MFG growth in the US is 2x the
GDP in the developed world
© 2014 All rights reserved. Do not distribute. Hosted by 6
What’s on the Mind of a Manufacturing Executive?
Introduction to Cisco Nexus® 7700 Platform
Security, Security, Security
Lower Total Cost of Ownership
Workforce Productivity, New Skills, Safety-
Aging Workforce Dilemma
Faster Time to Market and New Product
Introduction (NPI)
Asset Optimization… Improving Flexibility,
Uptime, Efficiency
© 2014 All rights reserved. Do not distribute. Hosted by 7
IDC 2015: Business Value / ROI More Important than Ever
© 2014 All rights reserved. Do not distribute. Hosted by 8
General Motors Future Proofs with Next-Generation, Standardized Plant Floor Control Networks (PFCN) for Global Manufacturing Operations
Accelerate entry into emerging
markets, specifically Brazil and
China
Improve product quality and
realize cost efficiencies
Create a globally integrated,
standards-based engineering
and manufacturing platform
Deploy modern, standards
based network architecture
“Plant Floor Communications
Network (PFCN)” enabled by
Cisco
$53M savings in network
operations staff
$76.3M/yr in automotive
production profit contribution
from improved uptime
$5.4M in spare inventory
savings
166% ROI projected over 5
years
75% downtime reduction at
Greenfield assembly plants,
compared to legacy plants
Results Challenge Solution
“PFCN is a tremendous engineering accomplishment for GM. Standardizing
plant networks has reduced costs, improved uptime and provided a flexible
platform for future applications such as collaborative engineering” Nick Bell
Program Information Officer, Global Manufacturing & Labor
General Motors
Click here for case study
© 2014 All rights reserved. Do not distribute. Hosted by 10
Harley-Davidson Retooling for Flexibility and Cost Productivity with IoE
Harley-Davidson moved to
reduce costs and increase
efficiencies
Hundreds of motorcycles
built each shift, with low
cycle time per operation
Manufacturing complexity
with 1200 different
configurations
Architect an end-to-end
Converged Plantwide Ethernet
Automation solution enabling
Harley-Davidson to achieve its
goals of world-class
manufacturing, built on RA-
Cisco IE switching and closed-
loop controls fabric
Cisco Unified Wireless
Layer in Visual MFG on the
wired-wireless infrastructure
Model NPI reduced from more
than a year to 1.5 wks
Enabled paperless factory
for rapid response
Increased OEE by 7-12%
(+1% OEE yields upwards of
+4% in Op Margin)
Up to 25x improvement in
build-to-order cycle times
Reduced downtime and
scrap, yielding $200M benefit
Results Challenge Solution
“What used to take hours or days to triage and troubleshoot problems now takes seconds.”
David Gutshall
Infrastructure Design Manager, Harley-Davidson Motor Company
© 2014 All rights reserved. Do not distribute. Hosted by 11
IoT Can Introduce Complexity …
Line of Business Requirements
… So Why Mess With It?
New GTM Business Models
Need for IT and OT to Work Closely
For OT (Controls), New “IT” Vendors
Enterprise-to-Plant-&-Field Integration
Shift from CapEx to OpEx
© 2014 All rights reserved. Do not distribute. Hosted by 12
IDC 2015: Operational Benefits are Main Driver for IoT
© 2014 All rights reserved. Do not distribute. Hosted by 13
IDC 2015: Heat Map of Leading IoT Applications
© 2014 All rights reserved. Do not distribute. Hosted by 14
Converged Plantwide Ethernet (CPwE) / Connected Factory: Solutions Portfolios
Factory
Energy
Management
Factory
Security Factory
Wireless
Factory
Automation
Connected Factory / CPwE
© 2014 All rights reserved. Do not distribute. Hosted by 15
Enabling the Connected Factory of the Future
Automation Pervasive
Intelligence Sensors
Everywhere Machine-to-
Machine
Risk Management Lower Total Cost of
Ownership Fast Time to Market
Improved Asset Utilization
Robots and Machines
Personal Devices
Sensors Security Devices
Real-Time Analytics
Hardened Mobile
M2M Gateway
User- and Control-
Level Factory Security
Ruggedized
Wireless AP
Industrial Routers
and Switches
© 2014 All rights reserved. Do not distribute. Hosted by 16
Business Outcomes - Automation
Faster diagnostics = lower
downtime
Flexible manufacturing = higher
revenue
Converging motion, safety, data,
video, and wireless = higher
productivity
10-25X improvement in build-to-order (BTO) cycle times (ex: 18 months 2 weeks)
Increase OEE (equip. utilization) by 7-12% (1% OEE = 3-4% profitability)
Connected Factory
Automation Wireless
Security Energy
Management
Connected Factory Automation
© 2014 All rights reserved. Do not distribute. Hosted by 17
Business Outcomes - Wireless
Workforce enablement − 82% faster retrieval time
− 80% faster decision making
Wireless tools and assets
reduced cabling costs and setup
time
Continuous asset management
7% production throughput increase
Reduce cabling and other costs for machines that move 95%
Connected Factory
Automation Wireless
Security Energy
Management
Connected Factory Wireless
© 2014 All rights reserved. Do not distribute. Hosted by 18 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
Stanley Black and Decker
Get better transparency of
real-time production to
schedule
Dissect why actual labor costs
exceeding standard costs
Need to understand effects of
shift changes
Gain better visibility to real-
time OEE
Leverage Cisco WiFi
throughout the plant
Combine with AeroScout
RFID tags
Integrate RFID Tags to PLC
to Quality Scale
Results Challenge Solution:
“… we are on our way toward realizing our vision of a virtual warehouse and fully
connected factory, with complete visibility and traceability.”
-Gary Frederick,
CIO Industrial Division, Stanley
Toolmaker improves operations with IoT / RTLS
Click here for case study
24% in OEE improvement
in router tool line
Reduced labeling error
rate by 16%
Improved labor utilization
from 80 to 92%
Reduced inventory holding
costs by 10%
© 2014 All rights reserved. Do not distribute. Hosted by 19
Business Outcomes - Security
Connected Factory Security
Reduce downtime Increase MTBF and reduce MTTR
Reduce internal and external risks (Manufacturing is the most attacked industry)
Connected Factory
Automation Wireless
Security Energy
Management
Fundamental enabler of the Connected Factory
Securely connect factories to the enterprise
− Physical security
− Cybersecurity
− Identity/role-based access control
Secure remote access - use machine
builder expertise to reduce downtime
Securely monitor and respond to cyber and
physical incidents
© 2014 All rights reserved. Do not distribute. Hosted by 20
Business Outcomes - Energy Management
• Reduce variable costs
(energy is often the largest variable
cost)
• Monitor machine-level energy
consumption
• Demand response - receive alerts and
take action to avoid peaks
• Optimize energy by matching machine
energy utilization with activity
(e.g. idle machines)
Reduce energy consumption 10-20%
Avoid peak energy charges (up to 10X base load cost)
Connected Factory Energy Mgmt
Connected Factory
Automation Wireless
Energy
Management Security
© 2014 All rights reserved. Do not distribute. Hosted by 21
Cisco Can Help You Capture IoT Value Opportunities in the Factory
Business challenges
Best practice sharing
Use case brainstorming
and prioritization
Discovery Workshop with OT and IT
Run POCs in a
showcase manufacturing
facility to prove
the value and technology
POC Design
TCO or OEE Opportunity Quantification
Quantify top value
opportunities for senior
management (TCO,
OEE, and overall
benefit models)
End-State Architecture Assessment
Document future state
architecture (3 to 5 years
out), gaps that exist today,
change management, and a
phased plan to reach goals
© 2014 All rights reserved. Do not distribute. Hosted by 23 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
Sugar Creek Packaging
Get better transparency of real-time
production to schedule
Expand into a new product portfolio
that needs sensors everywhere
(Sous-Vide) for ideal production
Need to understand effects of
emergency issues and help first
responders in case of issues
Gain better visibility to real-time
OEE for all users in all locations
$100m annual energy bill
• Cisco Services for complete
Greenfield design to integrate the
Cisco Connected Factory
architecture
• Includes Cisco Wireless with
AeroScout RFID tags for Location
Based Services, Security, and
communications on one network
• Integrates machine data to digital
signage and mobility applications
using Cisco Analytics
• Cisco EnergyWise for MFG …
Connected Factory Energy Mgmt
Projected Results Challenge Solution:
“With the help of the Cisco Services and Global Manufacturing Industry practice, we
are able to expand our product portfolio, production capacities, efficiencies and
capabilities with a new plant. We’re going to achieve many new benefits with the
additional insights into our operations not previously available.”
-Rob Daley
CEO Sugar Creek
Food Manufacturer expanding product portfolio
Met Greenfield implementation and
start-up schedule, including new
product and process capabilities
Improved labor utilization to 90%
Integrated visibility of all operations
from one screen
New sensors added predictive
maintenance capabilities, lowering
costs and increasing OEE by 25%
Lowered relative energy costs (per
sq.ft) at this facility by 35%
Created blueprint for retro-fit of other
five facilities
© 2014 All rights reserved. Do not distribute. Hosted by 24
Connected Manufacturing and Factory of the Future: The Benefits
Introduction to Cisco Nexus® 7700 Platform
Abundant data from the IoT
A culture of innovation
Strengthened security
Faster new product introductions (NPIs)
Less downtime and higher overall equipment
effectiveness (OEE)