Digital Manufacturing
CCSIoT-2001
CCSIoT-2001
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<strong>Digital</strong> <strong>Manufacturing</strong><br />
Accelerate Growth and Improve Operations<br />
to Boost Visibility and Agility<br />
Douglas Bellin - Senior Manager, Industrial Industries<br />
CCSIoT-2001
What You Will Learn<br />
Industrial Trends and Business Challenges<br />
Driving New Business Priorities<br />
The <strong>Digital</strong> <strong>Manufacturing</strong> Journey<br />
Unlocking Real Business Outcomes<br />
Next Steps<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 3
Markets Are Driving New Business Priorities<br />
How can I<br />
introduce<br />
new products<br />
faster?<br />
I need<br />
to achieve<br />
real-time<br />
visibility<br />
How can<br />
innovation<br />
drive<br />
profits?<br />
How do I<br />
improve<br />
workforce<br />
productivity?<br />
I need to<br />
improve<br />
product<br />
quality<br />
How can I<br />
reduce<br />
downtime?<br />
How can<br />
I better<br />
manage my<br />
global<br />
supply<br />
chain?<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 4
Average<br />
Seismic Changes Will Displace Nearly<br />
40% of Top Incumbents, and It Will Happen Soon<br />
In your industry,<br />
how many<br />
companies will<br />
lose their place<br />
in the top 10<br />
due to digital<br />
disruption (over<br />
next 5 years)?<br />
4.3<br />
2.5<br />
4/10<br />
Expected time<br />
to disruption *<br />
3 years<br />
*Disruption = Substantial change in<br />
market share among incumbents<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 5
Immense Business Benefits Expected<br />
Reduced<br />
Downtime<br />
48%<br />
Reduction in<br />
Defects<br />
49%<br />
New Product<br />
Introduction<br />
23%<br />
OEE<br />
Improvement<br />
16%<br />
Improved<br />
Inventory<br />
35%<br />
Reduction in<br />
Energy Use<br />
18%<br />
Unplanned<br />
downtime down from<br />
11% to 5.8%<br />
Defect rate<br />
down from<br />
4.9% to 2.5%<br />
New product<br />
introduction cycle<br />
time reduced from<br />
15 to 11 months<br />
Average OEE<br />
improved<br />
from 74% to 86%<br />
Inventory<br />
turns increased<br />
from 14 to 19<br />
Annual energy<br />
cost down from<br />
$8.4M to $6.9M<br />
What business benefits do you expect to derive from <strong>Digital</strong> <strong>Manufacturing</strong>?<br />
Source: SCM World/Cisco “Smart <strong>Manufacturing</strong> and the Internet of Things 2015” survey of 418 <strong>Manufacturing</strong> Business Line<br />
Executives and Plant Managers across 17 vertical industries.<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 6
But To Get There, You Need to Span the<br />
Entire Supply Chain<br />
+ 16% OEE<br />
- 49% Defects<br />
+ 23% NPI<br />
- 35% Inventory<br />
- 48% Downtime<br />
Supply Chain<br />
Orchestration<br />
Off-Line<br />
Connected<br />
Factory<br />
• Factory Network<br />
• Factory Security<br />
• Factory Wireless<br />
Connected<br />
Enterprise<br />
• Analytics and Big Data<br />
• Virtualization and Compute<br />
• Connected Machines<br />
• Factory Collaboration<br />
• Location Services<br />
• Supply Chain<br />
Collaboration (SXP)<br />
• Design Collaboration<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 7
Connected Factory<br />
Infrastructure<br />
Apps<br />
Compute<br />
Comprehensive <strong>Digital</strong> <strong>Manufacturing</strong> Offering<br />
Analytics and Big Data<br />
Supply Chain<br />
Collaboration<br />
Factory<br />
Collaboration<br />
Factory Virtualization<br />
Data Center and Cloud<br />
Connected Machines and Edge Compute<br />
Cisco<br />
IoT<br />
System<br />
Factory Wireless<br />
Factory Security<br />
Factory Network<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 8
Digitization Where Are You Is the on Key the to <strong>Digital</strong> Leapfrogging Journey? the Industry<br />
Lower<br />
operational costs<br />
Predictive<br />
maintenance<br />
Rapid<br />
experimentation<br />
and<br />
simulation<br />
Remote<br />
maintenance<br />
Virtually<br />
guided<br />
selfservice<br />
Smart<br />
energy<br />
consumption<br />
Intelligent<br />
lots<br />
Real-time<br />
yield<br />
optimization<br />
productivity increase<br />
Routing<br />
flexibility<br />
Faster time<br />
to market<br />
Savings with<br />
accurate<br />
forecasts<br />
Concurrent<br />
engineering<br />
Customer<br />
co-creation/ open<br />
innovation<br />
Data-driven<br />
design to<br />
value<br />
Data driven<br />
demand<br />
prediction<br />
Higher quality<br />
<strong>Digital</strong> quality<br />
management<br />
Advanced<br />
process<br />
control<br />
(APC)<br />
Statistical<br />
process<br />
control<br />
(SPC)<br />
Time<br />
to<br />
market<br />
Supply/<br />
demand<br />
match<br />
Quality<br />
Batch<br />
size 1<br />
Service/<br />
after-sales<br />
Lower inventory costs<br />
Inventories<br />
Realtime<br />
SC<br />
optimization<br />
Resource/<br />
process<br />
effectiveness<br />
In situ<br />
3D<br />
printing<br />
Labor<br />
efficiency<br />
Asset<br />
utilization<br />
Machine<br />
flexibility<br />
Remote<br />
monitoring and<br />
control<br />
Predictive<br />
maintenance<br />
Augmented<br />
reality for MRO 1<br />
Remote<br />
monitoring<br />
and<br />
<strong>Digital</strong> control<br />
Human-robot<br />
collaboration<br />
performance<br />
Automation<br />
of ment<br />
manage-<br />
knowledg<br />
e work<br />
Faster time to<br />
completion<br />
lower<br />
downtime<br />
• Asset visibility<br />
• Asset utilization<br />
• Employee productivity<br />
• Automation<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 9
Common Phases of IoT Journey<br />
Common IoT capabilities<br />
Asset Management<br />
Predictive Maintenance<br />
Field operations<br />
Supply Chain Optimization<br />
• Industrial over IP<br />
• Transforming legacy infra<br />
• IT and OT convergence<br />
• Connected products<br />
• Analytics to improve processes<br />
• New thing-aaS biz models<br />
• Inter-connect<br />
Safety & Compliance<br />
silo’ed biz<br />
processes<br />
• Connect ecosystem<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 10
Complexity Stands in the Way<br />
Connectivity<br />
& Security<br />
Data<br />
Aggregation<br />
Real Time<br />
Visibility<br />
Automation &<br />
Management<br />
Value<br />
Monetization<br />
Ecosystem<br />
Interoperation<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 11
We Can Solve These Problems By<br />
New Innovations<br />
in Connectivity<br />
Cloud-Based<br />
Infrastructure<br />
Management<br />
Analytics &<br />
Actuation<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 12
Connected Machines and<br />
Edge Compute<br />
What Is It<br />
Embedded Switching, Security and Compute to Enable Connectivity and Edge Data<br />
Capture and Analytics<br />
Challenge<br />
Lack of visibility to machine data (temp,<br />
torque, hours, etc) to monitor and predict<br />
machine-related downtime.<br />
“We have cases where downtime is costing over $20,000 per<br />
minute. The ability to predict service requirements will have a<br />
tremendous impact.”<br />
- Rick Schneider - NA CEO FANUC Robotics<br />
Critical Needs<br />
Cisco Portfolio<br />
• Machine Monitoring, OEE<br />
• MTConnect, OPC<br />
UA integration<br />
• Scalable data acquisition<br />
• Enterprise security compliance<br />
and policy<br />
• Open Machine Architecture<br />
• Time-sensitive deterministic<br />
communications<br />
• Cisco Streaming<br />
Analytics<br />
• Memex Merlin<br />
• Cisco UCS Server<br />
• Memex MTC Adapter<br />
• Security<br />
• MTConnect Agents<br />
• Cisco Prime (Net Mgmt)<br />
• IE-2000/IE-4000<br />
• OEE Software<br />
Business Outcomes<br />
OEE<br />
Improvement<br />
Reduced<br />
Downtime<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 13
ZDT Data<br />
Collector<br />
Process<br />
Optimization<br />
Process Optimization<br />
at FANUC<br />
Challenge<br />
No visibility on how machines are utilized<br />
Machine downtime cost millions<br />
Data collection and edge compute<br />
Cloud managed service across plants<br />
Solution<br />
ZDT Service Center Portal<br />
Alert Monitoring, Schedule<br />
Parts and Maintenance,<br />
Enhanced Customer<br />
Service Tools<br />
ZDT Customer Portal<br />
Track alerts, View ZDT<br />
network status, Access<br />
ZDT reports, Authorize<br />
users, etc.<br />
@<br />
Web<br />
Services<br />
Customer<br />
Business<br />
Intelligence/<br />
Reporting Area<br />
Data<br />
Analytics<br />
Plant 1 Plant 2 Plant X<br />
Cisco Security<br />
Machine<br />
Learning<br />
FANUC CLOUD<br />
Persistent, Secure<br />
Encrypted<br />
Cisco Customer Security<br />
ZDT D/C<br />
Data<br />
Visualization<br />
Data<br />
Receive<br />
ZDT data collector with UCS on-prem<br />
Streaming machine data to Cisco Cloud service<br />
and perform data analytic with Cloudera cluster<br />
Business Outcomes<br />
Save estimated $40M in machine downtime<br />
Provide visibility on machines are utilized and<br />
increased the overall equipment efficiency (OEE)<br />
© 2016 Cisco and/or its affiliates. All rights reserved. CCSIoT-2001<br />
Cisco Public<br />
14
Process Optimization<br />
at Mazak<br />
Challenge<br />
Process<br />
Optimization<br />
Enable connectivity Mazak machines for predictive<br />
maintenance and MaaS business model<br />
Solution<br />
Cisco-enabled iSmart Machines with imbedded<br />
network switch, security and MTConnect Agent<br />
Business Outcomes<br />
300% Internal Rate of Return (IRR)<br />
increased production and overall equipment<br />
efficiency (OEE) by 10%<br />
© 2016 Cisco and/or its affiliates. All rights reserved. CCSIoT-2001 Cisco Public 15
Connected Machines Opportunity<br />
Source: March 2015 UPS Survey of 77 Industrial Machine Manufacturers with $10-$50 million revenue.<br />
http://www.manufacturing.net/sites/manufacturing.net/files/newsletter-ads/Final_Industrial_<strong>Manufacturing</strong>_Whitepaper.pdf<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 16
Connected Machines<br />
65M<br />
15yrs<br />
99%<br />
Network<br />
Switches<br />
and WiFi<br />
Machines worldwide,<br />
90% unconnected<br />
Age of 70% of<br />
the machines<br />
of data trapped in<br />
machines and unused<br />
Fog<br />
Analytics<br />
Connected Machines<br />
Cisco Connected Machines from Cisco and Partners<br />
Edge<br />
Compute<br />
Security<br />
Cloud<br />
Analytics<br />
UCS in<br />
OEM Cloud<br />
and DC<br />
What It Is<br />
• Integrated end-to-end<br />
machine data connectivity<br />
• Share data with manufacturer<br />
and with machine builder<br />
• Uses data and analytics to<br />
optimize processes<br />
Business Benefits<br />
Reduce Unplanned Downtime<br />
Predictive Quality<br />
Reduce Energy<br />
Enables New<br />
Machine-as-a-Service<br />
Business Models<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 17
Application<br />
Enablement<br />
ZDT<br />
OEE<br />
Energywise<br />
Visualization Predictive Maintenance Energy Management Location Visibility Supply Chain<br />
Solution<br />
Elastic Enablers<br />
Compute (“our digitization<br />
palette”)<br />
To Multiple Machine Builder Partners or Suppliers (many to many)<br />
IOT Platform & Middleware – FOG to CLOUD<br />
To Cloud (e.g., Hadoop)<br />
(data management services, device transformation services, application<br />
services, connectors & APIs, scalable compute & storage, analytics tools,<br />
etc…)<br />
To Industrial Data Center<br />
Advanced Data Collection Gateway (Edge compute on IOX)<br />
Secure<br />
Connectivity<br />
Ruggedized<br />
Wireless AP<br />
Industrial<br />
Routers & Switches<br />
Industrial<br />
Security<br />
Hardened Mobile<br />
M2M Gateway<br />
Video<br />
Things<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 18
IoT<br />
Apps<br />
Predictive<br />
Maintenance<br />
Inventory<br />
Management<br />
Utilization<br />
Optimization<br />
Energy<br />
Efficiency<br />
Predictive<br />
Quality<br />
IoT<br />
Middleware<br />
Edge App<br />
Provisioning<br />
Monitoring &<br />
Troubleshooting<br />
Message<br />
Broker<br />
Device<br />
Services<br />
Security<br />
Service<br />
1 Click<br />
Updates<br />
Distributed<br />
Data Network<br />
Edge<br />
M<br />
M<br />
FOG<br />
M<br />
UCS<br />
M<br />
M<br />
Data<br />
Center<br />
M<br />
Edge<br />
Machine<br />
Network<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 19
Connected Factory Reference Model<br />
Levels<br />
7<br />
6<br />
Collaboration & Processes<br />
(Involving People & Business Processes)<br />
Application<br />
(Reporting, Analytics, Control)<br />
Center<br />
Data at<br />
Rest<br />
5<br />
4<br />
3<br />
Data Abstraction<br />
(Aggregation & Access)<br />
Data Accumulation<br />
(Storage)<br />
Edge Computing<br />
(Data Element Analysis & Transformation)<br />
Data in<br />
Motion<br />
2<br />
1<br />
Connectivity<br />
(Communication & Processing Units)<br />
Physical Devices & Controllers<br />
(The “Things” in IoT)<br />
Edge<br />
Sensors, Devices, Machines,<br />
Intelligent Edge Nodes of all types<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 20
Connected Factory Reference Model<br />
Common Name Space<br />
Eliminates that need for engineered<br />
Solutions<br />
Scale & Integration<br />
across different machine and<br />
Control platforms<br />
Visualization<br />
Allows manufacturing to focus on<br />
Visualization tools like OEE Software<br />
Analytics.. Etc.<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 21
MTConnect Data Model is a game changer<br />
MANY<br />
ONE<br />
Applications IoT FOG Node Machines & Assets<br />
Historian<br />
Mazak Machine<br />
w/ MTConnect adapter<br />
Tool Health<br />
Memex Merlin<br />
OEE & Analytics<br />
Web service<br />
HTTP://IP:5000/current<br />
Stateless<br />
(Request/Response)<br />
Cisco<br />
IE-4000<br />
Agent<br />
5000<br />
TCP<br />
Constant<br />
Connection<br />
Adapter<br />
7878<br />
Quality<br />
Maintenance<br />
Industrial Switch<br />
Connect<br />
Compute<br />
Security<br />
Analytics<br />
© 2016 Cisco and/or its affiliates. All rights reserved. CCSIoT-2001<br />
Cisco Public<br />
22
How do we Add Software, Sensors, Cameras?<br />
Challenges<br />
How do I monitor coolant level,<br />
temperature, and PH on both old<br />
and new machines<br />
We often have parts that are<br />
mounted Incorrectly on fixtures.<br />
Can I automatically detect this?<br />
Sensors Analytics Cameras<br />
+<br />
I would like to have a flexible<br />
software solution that allows me<br />
to do historical analysis and real<br />
Time correlation of sensor data..<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 23
Mazak SmartBox:<br />
Scaled i-Smart Factory Integration<br />
Factory<br />
Historian<br />
Machine / Cell Package<br />
Tool Health<br />
Memex Merlin<br />
OEE & Analytics<br />
Quality<br />
Maintenance<br />
IoT FOG Node<br />
MTConnect<br />
Cell<br />
CCSIoT-2001 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public 24
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CCSIoT-2001<br />
© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public<br />
25
Continue Your Education<br />
• Demos in the Cisco campus<br />
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• Lunch & Learn<br />
• Meet the Engineer 1:1 meetings<br />
• Related sessions<br />
CCSIoT-2001<br />
© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public<br />
26
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