Industrial Internet of Things (IIoT) and Industry 4.0 webcast: Overview

and practical advice for today

Sponsored by:

About the Viewer Panel Technical problems? Click on the “Question Mark Symbol” on the upper right hand corner of your screen,

where you will be directed to a list of system checks Send a question from the “Ask a Question” window. Individual technical questions

will be answered in the “Answered Questions” on the left hand side of your screen Slides: Click the four pronged arrow button at the top right corner of the slides to view an

expanded window Slides should change automatically

Click on “Download Webcast Slides” under “Event Resources” for a PDF of all slides Warning: The PDF will be a large file

Archive: Within 7 days, an archive with Q&A will be posted We will send an email to registered attendees with hyperlink Can also access from www.controleng.com home page

RCEP Standards

Control Engineering has met the standards and requirements of the Registered Continuing Education Program. Credit earned on completion of this program will be reported to RCEP at RCEP.net. A certificate of completion will be issued to each participant. As such, it does not include content that may be deemed or construed to be an approval or endorsement by RCEP.

Now a Word From Our Sponsors

Presenter: Dr. Richard Soley, Executive Director, Industrial Internet Consortium Presenter, moderator: Mark T. Hoske, Content Manager, Control Engineering, CFE Media

Speakers:

Technical Questions and Support Technical problems? Click on the “Question Mark Symbol” on the upper right hand corner of

your screen, where you will be directed to a list of system checks. If you are experiencing issues with your slides or audio please refresh

your browser, or click the “Refresh Media” button directly under the presenter’s headshot.

You can control the volume settings of this webcast by adjusting the volume on your computer, or by adjusting the volume on the webcast platform.

If you need a technician, type a message into the “Ask a Question” box and someone will get to you as quickly as possible. Individual technical questions will be answered in the “Answered Questions” on the left hand side of your screen.

The Industrial Revolution Meets The Internet Revolution

Presenter: Dr. Richard Soley Executive Director

Industrial Internet Consortium

“A fundamental new rule for business is that the Internet changes everything.”

-Bill Gates, 1999

Or has it?

Where we have been

Discrete manufacturing

1980 Programming a 584 programmable controller

2015 Programming a 984 programmable controller

Energy management

1950 Energy grids delivered power (not information) from small number of plants to millions of businesses and homes

2015 Energy grids deliver power (and a little information) from small number of plants to millions of businesses and homes

Aviation

•

1960 Jet performance data is downloaded by hand

2015 Jet performance data is downloaded by hand

The industrial Internet is leading the next economic revolution

Industrial Revolution

Internet Revolution

Industrial Internet

Disruptive technologies lead to transformational change

Industrial Revolution

Internet Revolution

Industrial Internet

There are key differences between the industrial Internet and consumer IoT

The measurable outcome will be in the trillions of dollars

•

GE: $32.3 trillion opportunity representing 46% share of GDP today. Cisco: Internet of Things (IoT) will increase private sector profits 21% and add $19 trillion to the global economy by 2020. Gartner: IoT product and service suppliers will generate incremental revenue exceeding $300 billion in 2020. McKinsey Global Institute: $36 trillion operating costs of key affected industries could be impacted by IoT.

THE CONVERGENCE OF INTERNET OF THINGS, INDUSTRIE 4.0, CYBER-PHYSICAL SYSTEMS PRESENTS

AN ENORMOUS OPPORTUNITY.

Making sense of the numbers

•

Revenue generation Revolutionary new products and services Creating new markets Changing the way the world works

New operational efficiencies that drive down costs Workforce productivity gains digitization of tasks, better deployment of resources Reduced maintenance costs predictive maintenance Material, energy savings reduced need for product over-engineering Reduced waste Precision monitoring to predict and control machines

Improved customer satisfaction Improved service levels fewer unplanned disruptions

Opportunities across every industry: GE’s 15-year outlook

•

$30B fuel cost saving

in aviation industry

$66B fuel cost saving in gas powered

fleets

$63B productivity improvement in healthcare

$90B reduction in

Cap X in oil & gas exploration and development

92M vehicles with

Internet connectivity on the road by

2016

68% decrease in

crime rates with video

surveillance

Beyond the numbers, the Industrial Internet is changing how things work.

•

Yet there are current roadblocks to widespread adoption

Connectivity

Technology

Standards

Research Academia

Systems Integration

Security

Big Data Government Industries

The IIC: Things are coming together

•

Things are coming together.

Connectivity Government

Technology

Standards Research Academia

Industries

Big data

Security

Systems integration

Mission of the Industrial Internet Consortium (ICC) To accelerate growth of the Industrial Internet by coordinating ecosystem initiatives to connect and integrate objects with people, processes and data using common architectures, interoperability and open standards that lead to transformational business outcomes.

Launched in March 2014 by five founding members.

5 IIC founding members

More than 75 IIC small industry members

More than 30 IIC nonprofit/academic members

Industrial Internet Consortium (IIC) includes:

More than 45 IIC large industry members

IIC core focus areas

• Innovative products!

Activities fall into three main areas that ultimately drive new opportunities for IIC members:

The IIC ecosystem

Companies joining together to advance innovation, ideas, best practices, thought leadership and insights

Technology & security

Architectural frameworks, standards requirements,

interoperability, use cases, privacy and security of big data

Testbeds

Innovation to drive new products, processes,

services

IIC track and trace testbed: 3

members

•

IIC testbed: track and trace

•

Industrial Internet Consortium Member participants: 4 Market Segment Industrial manufacturing Power tool fleet management Goal Manage smart, hand-held tools in manufacturing,

maintenance and industrial environments Features and commercial benefits Asset management, work management Integration with factory manufacturing systems Improved safety and operational performance Monitor/control quality

IIC testbed: communication

and control

•

IIC testbed: communication and control for microgrid applications

•

Goals Enable efficient integration of solar, wind, and EVs Create a dynamic, open marketplace for Smartgrid vendors Prove the viability of a real-time, secure data network with distributed-control architecture in real-world grids Collaborators 3 leads With 4 more organizations Lead involvement DDS middleware and system integration Engineering software and cost-effective hardware Grid communications Phases Proof of concept Realistic simulation Live test showing the grid of the future

Neighborhood MicroGrid

Solar

Field Network

Wind

Local load control

Why now?

•

Driving the OT – IT Convergence: Low cost, powerful technology Cheap sensors & devices Low-cost processing power, data storage

Connected everything By 2020, the number of things connected to

the Internet will be approximately 7x the number of people on earth today.

Big data Collecting, storing and analyzing data is now more cost

effective

Smarter machines Equipment is increasingly embedded with sensors and software

What about standards? And open source?

•

Already plenty of standards at the communications level (such as OMG DDS) Semantic standards (8 at present) are going to be critical in all verticals: IIC is a source for standards requirements and priorities

The future

•

How will we minimize unplanned factory downtime?

How will we save lives through better patient care?

How will we reduce passenger fatalities?

How will we reduce waste of natural resources?

Things are coming together.

How will we reduce jet engine failure & maintenance costs?

Community. Collaboration. Convergence. Things are coming together.

Dr. Richard Mark Soley Executive Director Industrial Internet Consortium www.iiconsortium.org

Industry 4.0

Presenter, moderator: Mark T. Hoske Content Manager

Control Engineering

What is Industry 4.0 (in German, Industrie 4.0)? Industry 4.0 represents the fourth industrial revolution with the use of cyber-physical systems after 1) Steam engines, 2) Mass production and use of conveyors and 3) Electronics, IT, and information technology. Goal of Industry 4.0 is to facilitate the emergence of the intelligent factory, characterized by adaptability, resource efficiency, ergonomics, and integration of customers and business partners in business and value processes. It was adopted in the Action Plan for "High-Tech Strategy 2020” in November 2011 by the German federal government.

Purpose of the Industry 4.0 group The Plattform Industrie 4.0 organization aims to: Help those involved actively participate in the fourth industrial revolution (the source of the name) Strengthen the German economy. Encourage development of standards, business and organizational models and promote practical implementations with an exchange of technologies across industries. Ensure that Germany is a leading provider, by 2020, of "Cyber-Physical Production Systems."

Why is Mark Hoske giving this presentation? I am not associated with the Plattform Industrie 4.0 group. I met and invited a member of the Plattform Industrie 4.0 steering committee who agreed to speak. A date change for the webcast created a conflict. The organization, in an expansion transition, was unable to provide a replacement. I used information from primary sources (cited at the end) to assemble this presentation, just as I would write an article for Control Engineering.

Plattform Industrie 4.0 involvement Those involved in the Industry 4.0 organization include: BITKOM - Federal Association for Information Technology, Telecommunications and New Media eV, representing more than 2,200 companies in the digital economy, including about 1,400 direct members VDMA - German Engineering Federation, representing 3,100 mainly medium size member companies in the capital goods industry; it is said to be one of the largest and most important industrial associations in Europe. ZVEI - German Electrical and Electronic Manufacturers' Association, representing the common interests of the electronics industry and related service companies in Germany, about 1,600 companies globally.

Plattform Industrie 4.0 expansion At Hannover Fair in April, the new Industrie 4.0 platform group announced it is being headed by German Economic Affairs Minister Sigmar Gabriel, German Research Minister Johanna Wanka, as well as key representatives from industry and industrial associations, the German Metalworkers' Union (Industriegewerkschaft Metall), and the Fraunhofer Society, a German research organization said to be largest application-oriented research organization with 67 institutes covering health, security, communication, energy and the environment.

Working groups in Plattform Industrie 4.0 Industry 4.0 platform has working groups covering: Reference architecture Standardization Research and innovation Networked systems security Legal environment Work, education/training

Industry 4.0 (Industrie 4.0) basic concepts Cyber-Physical Production Systems (CPPS) use micro-computers as embedded systems (hardware and software components integrated into a comprehensive system to implement system-specific features). The Internet, mobile computing, and cloud computing have the potential to enable greater productivity for industrial processes. CPPS can be integrated into objects, products and equipment to exchange information automatically. Industrial processes are not organized centrally out of the factory, but are decentralized and dynamic.

Industry 4.0 smart objects and machines With Industry 4.0 products embed intelligence and inform machines what to do by using barcodes or radio frequency identification (RFID) chips with the appropriate information. Scanners and computers read data, transmit, and ensure that machines operate properly. Smart objects communicate with each other creating an Internet of Things and services. Physical world and virtual world merge into cyber-physical systems.

Networked factory Production logic is changing. Intelligent machines and products, storage systems and resources are consistently interlinked via the Internet, along the value chain, including logistics, production, marketing, and service.

Automotive automation example Car components continuously collect data about condition and tell when a replacement is needed, before failure occurs. The product independently sends a message to the manufacturer that replacement must be made. The order contains detailed information on the types of vehicles, the information, and where the component should be sent. The factory processes the order; machines automatically configure themselves so the right part is made and sent to the correct location at the right time for the repair.

5 benefits of Industry 4.0 1. High competitive strength 2. Flexible production 3. Individual production 4. Innovative business models 5. New work capabilities

Benefit 1: High competitive strength Germany is said to have an internationally leading manufacturing base strong in the field of embedded systems. Germany’s role is enhanced with active support of the transition to Industry 4.0. Networking of products and equipment and the efficiency of manufacturing companies promotes global competition.

Benefit 2: Flexible production With international competition, quick response to changes is crucial. In Industry 4.0, processes are transparent, companies track and act flexibly. Processes can be adapted on the fly so delivery quantities increase elsewhere to compensate as needed. Production processes be optimized across locations for quality, price, or resource efficiency as needed.

Benefit 3: Individual production Production of single pieces and small quantities can be profitable. Goods can be specified on machines earlier for selected operations, changing rapidly, responding to changing requirements with information technology. A product might be painted blue or red on the same machine without cumbersome reprogramming. Production quickly reacts to individual customer-specific requirements.

Benefit 4: Innovative business models The fourth industrial revolution enables new business models and services. Intelligent objects collect diverse data, which can be used for innovative services and offers, for example, in logistics. Start-ups and small and medium enterprises with ideas can benefit from big data and quickly establish themselves with business-to-business services in the market.

Benefit 5: New work capabilities Intelligent safety systems offers employees new potential to involve the elderly more in times of demographic change in the workforce. Processes are tailored to workforce capabilities. Industrial work can be made more flexible, to benefit employees, who can make work and family life more compatible.

Industry 4.0 concepts create new applications, business models, products.

Examples and advice: The resilient factory uses manufacturing IT to rapidly adapt a production line and processing stations to a quickly changing product mix to optimize capacity. Marketplace technology data improves with networking that increases ability to quickly and easily share knowledge. Laser machine parts are to be produced from customer-supplied metal sheets; cutting data is adjusted and optimized by accessing internal and external technology expertise to finish the order on time with the expected quality.

Examples and advice: Maintenance, networks, logistics

Intelligent maintenance: costs fall with predictive maintenance concepts significantly reduce unplanned shutdowns. Increased production networking helps enable mass customization, with turbulent markets, and complex production processes. Adaptive logistics: Networked production creates reliable production logistic processes for low-friction, error-free value-added process as demands for piece number and variant flexibility increase, creating supply bottlenecks and errors. Cyber-physical systems (CPS) help make materials and part movements transparent, forming dynamic intra-logistical control in a flexible factory.

Examples and advice: Integration, sustainability, lifecycles

Integrated engineering: Broader customer requirements for punctuality and late changes require rethinking the interaction of classic production functions with the customer and the supply chain. By integrating the customer in development, planning and value-adding activities, greater transparency and tighter synchronization results for all participants. Sustainability and up-cycling vs. recycling: As commodity prices increase (such as rare earths and platinum), better information flow allows sale of only products used, with retained ownership of raw materials used, with as information is stored in the product. Smart factory architecture: Product lifecycles and factory lifecycles can be enhanced and synchronized.

Examples, advice: Value creation, security Beyond any specific technology, Industry 4.0 creates value for customers. None of this happens without cyber security. Distributed systems have been around for years. Significant cyber security investments are needed for more real-time information flow and related value.

Control Engineering Research As part of an upcoming Control Engineering research report on system integration, we asked subscribers what parts of the IIoT technology framework is useful? 72% Interoperability and open standards connecting people processes, and data 47% Security 46% Mobile 29% Cloud 29% Analytics 2% Other With 123 responses, margin of error is +/- 8.8%.

Control Engineering Research As part of an upcoming Control Engineering research report on system integration, we asked subscribers what parts of the Industry 4.0 framework is useful? 55% Real-time capabilities 47% Modularity 45% Interoperability 39% Virtualization 32% Service orientation 29% Decentralization 2% Other With 87 responses, margin of error is +/- 10.5%.

Thank you to Amanda Pelliccione, director of research for CFE Media, for the research results.

Sources and more information Plattform Industrie 4.0 www.plattform-i40.de, including info from the Final Report of the Working Group Industry 4.0, April 2013. To see the information in English, use a browser that translates. Notes from the 2015 ARC Forum presentation and comments from Dr. Reinhold Achatz, member of the Industrie 4.0 Steering Committee and head of corporate function technology, innovation and sustainability at ThyssenKrupp AG. Announcement of Plattform Industrie 4.0 expansion from Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Education and Research. Control Engineering research at www.controleng.com/ce-research and coverage of Industry 4.0 at www.controleng.com and www.plantengineering.com.

Submitting Questions, Exit Survey and Archive Question? Type your question in the “Ask a Question” box on the Webcast Console and click “Send.” We will get to as many questions as we have time for. Questions that are for today’s presenters will be answered verbally during the Q&A session. Exit Survey: Please take a moment to answer a few questions on our exit survey that will pop up on your screen at the conclusion of the webcast. We use the answers to help make improvements to our webcast program. Archive:

Within 7 days, an archive with Q&A will be posted We will send an email to registered attendees with hyperlink Can also access from www.controleng.com home page

Presenter: Dr. Richard Soley, Executive Director, Industrial Internet Consortium www.iiconsortium.org Speaker, moderator: Mark T. Hoske, Content Manager, Control Engineering, CFE Media, the company that also owns Plant Engineering and Oil & Gas Engineering www.controleng.com

Speakers:

www.controleng.com/webcasts

CFE Media will provide 3 additional IIoT webcasts... The 2015 Industrial Internet of Things (lloT) Webcast Series: Webcast One: Design considerations

Tuesday, July 21, 2015 Webcast Two: Operations

Thursday, September 17, 2015 Webcast Three: Integration considerations

Tuesday, November 3, 2015

Industrial Internet of Things (IIoT) and Industry 4.0 webcast: Overview

and practical advice for today

Sponsored by: