Download - The value of a connected factory
Accelerate Growth and Improve Operations to Boost Visibility and Agility
The Value of a Conneted factory
Hazid MangroeCisco IOE SalesLead11 November 2015
2C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Waar gaan we het over hebben
Introductie Cisco
Trends
De waarde van IOE
Ecosystem van partners
Next Steps
3C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Two Cables and a Desire to Connect
Cisco Confidential 4© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Intelligent Connections at the Heart of Cisco
Intelligent Connections
Internet ofEverything
Digitize the World
Connecting:• People• Process• Data• Things
ConnectivityDigitize Access to Information• Email• Web Browser• Search
ImmersiveExperiences
Digitize Interactions (Business & Social)
• Social• Mobility• Cloud• Video
NetworkedEconomy
Digitize Business Process
• E-commerce• Digital Supply Chain• Collaboration
Cisco Confidential 5© 2013-2014 Cisco and/or its affiliates. All rights reserved.
The image part with relationship ID rId5 was not found in the file.
6C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Shifting Manufacturing Trends AreTransforming the Industry
Gain Share with LoB in FY16!(Momentum: Bookings Growth = 2x TAM)
FY16-18 TAM: Products $64.5B, CAGR +5.2%Services $64.6B, CAGR +5.4% New IoT $6.2B, CAGR +16%
Digital Disruption Across the Value Chain
Bottom Line: Manufacturers Seek Speed and Simplicity, with New Innovations
The image part with
The image part with relatio
The image
The image
The im
The image
Supply Chain Demand Chain
Right-ShoringCapacity Rationalizations
Velocity, Variation, Volume …Faster Inventory Turns
New Product and Service Innovations, DigitalBusiness Models
Flexibility with Agility for Mass Customization
7C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Markets Are Driving New Business Priorities
How canI better
manage myglobalsupplychain?
How can Ireduce
downtime?
I need toimproveproductquality
How do Iimproveworkforceproductivity?
How caninnovation drive profits?
I need to achievereal-time visibility
How can Iintroduce
new products faster?
8C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
It’s a New Way of Thinking about ManufacturingIDC FutureScape: Worldwide Manufacturing2015 Predictions:
“Our next phase of investment in the factory of the future includes a more transparent manufacturing model. … not only to advance our cost competitiveness, but to drive a different conversation with our customers and suppliers.” - Rob Goldiez, Scott Fetzer, a Berkshire Hathaway company
"If you went to bed last night as an industrial company, you're going to wake up today as a software and analytics company.”- Jeff Immelt, CEO, GE
“…the lines between hardware, software, and services are blurred or are disappearing”- Tim Cook, CEO, Apple
9C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Digital Disruptors Are Changing the Game
But up to 40 percent of manufacturers may be damaged by digital disruptors
58 percent of CEOs see tech change as a top challenge
They can innovate fast, and raise the stakesCPG manufacturers among those with maximum potential for disruption
The winners will be those who can harness digital for today’snew priorities
Digital Vortex: How Digital Disruption Is Redefining Industries,” Global Center for Digital Business Transformation, June 2015 18th Annual PwC CEO Survey, 2015
10C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Unleashing Dramatic Business Outcomes
Lower Downtime
Reduce Defects
Reduce Energy
Faster NPI
Maximize OEE
Lower Inventory
• Automation Network• Analytics and Big Data
• Wireless with LBS
• Wireless • Connected Machine• Automation Network• Energywise
• Automation Network• Plant Floor Virtualization
• Wireless• Collaboration
“Reduced labeling error rateby 16%”
“Achieving 20% energy reduction with real time visibility.”
“Shaved10-20% off NPI cycle time”
“Increased OEE mid 70s to high
80s”
“Reduced breaker
component tire loss by 20%.”
Multi-NationalBrewery
“Experienced $40 million downtime reduction”
Make Money Save Money
11C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
What If You Could Drive BetterBusiness Outcomes?
The Real Economic Value of Digital Manufacturing is Immense
Reduced Downtime
48%Unplanned
downtime down from 11% to 5.8%
Reduction in Defects
49%Defect rate down from 4.9% to 2.5%
New Product Introduction
23%New product
introduction cycle time reduced from 15 to 11 months
OEE Improvement
16%Average OEE improved
from 74% to 86%
Improved Inventory
35%Inventory
turns increasedfrom 14 to 19
Reduction in Energy Use
18%Annual energy cost down from $8.4M to $6.9M
Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things 2015” survey of 418 Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.
12C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
But To Get There, You Need to Span the Entire Supply Chain
Off-Line
Connected Factory
Connected Enterprise
Supply Chain Orchestration
+ 16% OEE
+ 23% NPI
- 48% Downtime
- 49% Defects
- 35% Inventory
• Factory Network• Factory Security• Factory Wireless
• Analytics and Big Data• Virtualization and Compute• Connected Machines• Factory Collaboration• Location Services
• Supply Chain Collaboration (SXP)
• Design Collaboration
13C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
One is the Loneliest Number
Sports & Entertainment
Smart+Connected Communities
Connected Energy
ConnectedIndustries
ConnectedTransportation
*
**
*
*
14C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
From Use Case to Business Value
Potential Use Cases(Long List)
ü In place today or already underway
X Not interesting…at least at this time (too complex;; value is not clear;; timing is not right;; etc.)
ü Interesting…worthy of further analysis
1
2
3
4
5
6
7
8
9
10
Prioritization (based on business value;; complexity to implement;; dependencies;; etc.)
1
2
4
6
Select 3-4 Use Cases for further study:ü Architecture & Designü Business Value Assessment
ü POCs (lab)…and potentially…ü Pilots / Wider Deployment