How Can a Modern OT/IT Infrastructure Help Address Food & Beverage Manufacturing Challenges?

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1 How Can a Modern OT/IT Infrastructure Help Address Food & Beverage Manufacturing Challenges? Sponsored by: Presented By: Craig Resnick Vice President ARC Advisory Group cresnick@arcweb.com

2 Agenda Who is Stratus? Who is ARC? Key Manufacturing Operational Challenges Shifting Market Demands Smart Manufacturing s Focus & New Workforce Digital Transformation Enables Technologies Barriers to digital adoption Laying the right foundation OT/IT Infrastructure Addresses Manufacturing Challenges OT/IT Convergence & Edge Control Case Study Summary and Q&A VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 2

3 The continuous application availability market leader Corporate headquarters Maynard, Massachusetts USA Systems installed 20,000+ worldwide Global presence ~500 people Americas EMEA APJ Protecting lives, assets and revenues since 1980 Over 40 hardware and software availability patents Major market segments Industrial automation, Building security & management, Financial services, Public safety, Healthcare Key Industrial Automation and technology partnerships VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 3

4 About ARC Advisory Group Founded in 1986 Focused on Operations Technology (OT) and Industrial Internet of Things (IIoT) Research Global Presence: US, Canada, Germany, Belgium, Middle East, Japan, China, Singapore, India, Brazil Research Domains Analytics and Big Data Asset Lifecycle Management Cybersecurity for Industry Energy Management and Sustainability Industrial Internet of Things Industrial IT and Cloud Computing Networks and Fieldbuses Operations Management Process Automation and Safety Sensors, Transmitters, and Actuators Smart Cities and Infrastructure Supply Chain and Logistics VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 4

5 Food & Beverage Industry Facing Key Manufacturing Operational Challenges Complex Processes Clean-in-place Traceability Capture Mislabeled Products Serialization Challenges: Manufacturing as well as Supply Chain Ensure Consistency Brand Product Quality Taste & Safety Lower Both Production & Packaging Costs, Compensate for Both Rising Ingredient & Regulatory Costs Government Regulations Food Safety Traceability Nutrition/Health Sustainability Agile & Responsive to Both Changing Consumer Demands & Opportunities This Requires Food & Beverage Manufacturers to Embrace New IIoT & Digital Technologies to Continually Address Process Improvements & Production Expansion Opportunities VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 5

6 Many Food & Beverage Industry s Manufacturing Challenges are a Result of Shifting Market Demands Driven by Rapidly Growing, More Affluent & Urban Population in Emerging Economies New Methodologies & Incorporation of Digital Technologies Needed to Enable Industry Requirements Embrace Digital, Traceable Supply Chain & Enable Digital Factory, Use Intelligence for Competitive Advantage Deploying Smart Manufacturing Solutions that Provide Real Time Visibility of Performance Predict Future Demand & Equipment Failures Measure Impact of Current Decisions on Future Operation Results VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 6

7 Poll question 1 What Do You Consider to Be Your Primary Operational Challenge? Process Issues, such as Clean-in-place, Traceability, Capture Mislabeled Products, Serialization, etc. Consistency Issues, such as Brand, Product Quality, Taste & Safety, etc. Government Regulation Issues, such as Food Safety, Traceability, Nutrition/Health, Sustainability, etc. Cost Control Issues, such as Production, Packaging, Ingredient, Regulatory Costs, etc. Agility & Responsiveness Issues, such as Flexibility to Addressing Changing Consumer Demands & Opportunities, etc. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 7

8 Smart Manufacturing s Focus : Get Information from Supply Chain, such as Production Forecast, and Have Full Traceability of Operations Need to Attract a New Modern Workforce Deploy Smart Manufacturing Technologies Get Smart Technology in Hands of Workers Operated by Experienced Baby Boomers Today 50 Percent of Total Plant Workforces Workers Approaching Retirement Age Manufacturing is Complex Operation Need Knowledge Capture Management Incorporation and Deployment of New Workflow Processes To Compensate, Food & Beverage Manufacturers Will Need to Capture and Manage Knowledge and Incorporate New Workflow Processes VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 8

9 A New Workforce, Mostly Consisting of Millennials, Needs New Tools & Workflows to Meet Challenges of Flexible, Agile Production AI Workflows Guide Users In Day to Day Tasks Facilitate Collaboration & Reduce Paperwork, Enabling Digital Transformation Mobility Allows Secured Access to Any Information from Anywhere Central Operation Centers Allow Participation of Remote Experts in problem solving Result is Improved Efficiency in Operations & Maintenance Tasks Improved Work Conditions For a New Dynamic Workforce VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 9

10 Digital Transformation Enables Host of Technologies Required for Smart Food & Beverage Manufacturing Process Complexity Can Be Constraint to Achieve Safety & Quality Goals To Help Enhance Safety & Quality, Simulation Technology Used to Help Design, Control & Operate Complex Processes Simulation Technology Allows Efficient Building Models of Complex Processes Concentrators & Dryers Examples Used for Design Performance Validation, Operator Training & Advanced Operations BIG DATA Result is Reduced Product Variability, Improved Performance, & Reduced Production Risks & Downtime VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 10

11 Supply Chain Complexity One of Key Concerns of Food & Beverage Companies AI High-Volume, Transaction-Intensive, Perishable Nature of Supply Chain Presents Challenges Digital Technologies Play Role in Improving Operations by providing Integrated Solution for Planning & Scheduling Examples: Feedstock Data Management, Planning, Scheduling, Envelope Optimization Result is Reducing Operational Risk, Shrinking Gap Between Plan & Actual Results Increased End-to-End Throughput, Reduction of Logistic Costs VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 11

12 Digital Transformation Can be Deployed in Key Operations Deployed in Key Operations Usually Not Well Managed Clean in Place: Digital Technologies Enable Effective Monitoring & Optimizing Cleaning Operations Digital Technologies Enable Collection of Information Needed to Document Evidence of Proper Cleaning Detect Causes of Waste in Water, Chemical Products or Energy, & Production Lost Opportunities Result is Increased Plant Productivity, Reduced Water, Energy & Chemical Product Waste Ability to Document Evidence of Proper Cleaning Operations VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 12

13 Barriers to digital transformation Primary ICS server Backup ICS server Historian server When applications stop working we don t even know until other issues arise Thick clients IT does a great job of scheduling planned downtime, but the bigger issue is break/fix PLCs and Automation devices Our systems are so old and fragile we dare not change anything in case it breaks Reactive Complex IT heavy Complex redundancy where most critical Break/fix or constant monitoring Each system individually managed Mixed O/S environments with security holes ICS isolated to secure plant floor devices Local workstation required to access information VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 13

14 Poll question 2 What concerns you most about the failure of your existing control systems? Additional costs due to manual operation Compromised operation due to lost data Impact due to incomplete data for regulatory compliance Complexity of getting everything running correctly again Explaining the failure to management VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 14

15 What is required to adopt a modern digital infrastructure? Be more proactive Reduce complexity Rely less on IT Detect issues before they become bigger problems Protect your entire IA technology stack Always keep your SCADA, Historian, HMI, MES and MOM running Easily take advantage of new technologies Consolidate 5+ servers into a single system Get built-in hardware redundancy with that single system Purchase and manage fewer software licenses Use a single pane of glass for all your OT and IT applications Get proactive notification of potential problems Automate hardware remediation Easily swap hardware components by yourself Get instant access to IT specialists with IA expertise VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 15

16 Protecting digital data is critical Can the applications work together and scale to my data needs? Predictive Serviceability Can we remotely manage and service the technology and can we predict a failure before it happens? Performant Applications Protected IIoT Data Secure Connectivity Can we deliver redundant compute, network and storage with no downtime? Reliable Infrastructure Can we ensure the data is not tampered with and has not been stolen? VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 16

17 A modern digial infrastructure eliminates disruption Cloud Thick, Managed thin, Mobile, and Web clients Microsoft Go To Market Partners PLCs and Smart automation devices leveraging OPC Proactive Simple IT lite Simplified virtualization & continuous availability Proactive remediation & on demand support Centralized management and thin clients Secure advanced data historian & analysis Secure connectivity to the plant floor devices Access to your information anytime, anywhere Optimize with tasks & analytics VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 17

18 Poll question 3 What would be the most important decision factor in selecting a new digital control platform? Initial cost irrespective of solution lifetime Operational simplicity Lifetime value (TCO/ROI) Eliminating unplanned downtime Getting the agreement of IT Justifying the expense to town/city officials VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 18

19 Protecting modern digital environments Standard Servers Clusters External LAN LAN 1 LAN 2 Heartbeat 1 APP OS Virtualization HA APP OS APP OS APP OS APP OS APP OS Integrated Redundant & Fault-tolerant Solution Heartbeat 2 Single Points of failures cause downtime and data loss Management complexity adds risk and expense Not optimized for availability Very similar to a cluster No single points of failure Optimized for IA applications 1-4 Hour Service Response to fix Days of outage in remote locations Scripts must be executed FAILURE RECOVERY NOT FAILURE PREVENTION Still experience failover Cannot move apps from a failed server FAILURE RECOVERY NOT FAILURE PREVENTION No downtime or data loss Simple integrated solution Easy to service FAILURE PREVENTION Fault tolerance is the preferred solution VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 19

20 Key considerations for modernizing platforms What is my tolerance for unplanned downtime? Would an increased level of 9 s generate savings and/or increased productivity? What hardware/application protection do you need? How important is your (in-flight) data? Is there a seamless migration path? Are specialized skillsets required? Is the solution future-ready with the best ROI? How do you restore normal application processing and how does this affect your ROA? Does data loss present risks for asset management & IIoT analytics and/or regulatory requirements? How much impact will an upgrade transition have to your operations? Does extensive (and costly) training have to be factored in? Will the system support new applications, such as IIoT, does to have a 5-7+ year lifespan? VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 20

21 The Stratus solution Stratus customer Active service network Automatic re-synchronization Hot swap replacement Overnight delivery Automatic replacement part ordering and shipment Automatic hardware problem detection On-demand support services Proactive recommendations to address problems Proactive notification of potential problems (failure or performance) Constant monitoring of ftserver generated notifications 24x7x365 access to IA IT experts ftserver OPC Application monitoring and re-start Continuous operation during failures Automatic Uptime Layer Integrated redundancy VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 21

22 Benefits of a Converged System Process Variability Fewer Process Upsets Production improvement Lower Energy Consumption Process Quality Reliable Supply Improve Customer Expectations Fewer Reruns Improved Waste Elimination Asset Health Reduce Unplanned Downtime MRO Optimization Improved Asset Performance Optimized Workforce Engagement Incident Prediction Lower Operational Risk Improved Worker Safety Fewer catastrophic incidents Cognitive Learning Digitizing Intelligence Unbind Knowledge and Experience Discover the unknown VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 22

23 Benefits of a Converged System: Reduced Process Variability / Improved Quality Fewer Process Upsets Production improvement Lower Energy Consumption More Reliable Supply chain Improve Stakeholder Expectations Fewer Reruns/Rework More Efficient Chemical Usage Improved Waste Elimination VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 23

24 How Modern OT/IT Infrastructure Helps Address Food & Beverage Manufacturing Challenges Cybersecurity Virtualization Cloud, etc. IT Smart, Connected Machines OT Powerful Analytics Platforms Data Scientists, Decision Support Engineers, Process Analytics No Challenges Addressed via Digital Transformation & Smart Technologies Deployed Without OT/IT Convergence Rapid Learning Curve for Both Groups IT Personnel Learn What Real Time, Non- Stop, Deterministic Mean to OT OT personnel Learn Advantages of Leveraging Latest IT-based Approaches Helps Address Unscheduled Downtime Legacy Automation Assets Need IIoT Technology to Connect to Cloud Can Act as Edge Device, Often by Addition of Smart Embedded Devices to Asset VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 24

25 How Modern OT/IT Infrastructure Helps Address Food & Beverage Manufacturing Challenges Cybersecurity Virtualization Cloud, etc. Smart, Connected Machines IT OT Powerful Analytics Platforms Data Scientists, Decision Support Engineers, Process Analytics No Challenges Addressed via Digital Transformation & Smart Technologies Deployed Without OT/IT Convergence Real-time/Near Real-Time Data, Available 24/7/365, Essential to Globally Compete OT/IT Convergence Trend Increases Need for Tighter Integration & More Information Enables Analytics from Manufacturing Assets & Legacy Automation System Contributes to Adoption of Cloud Computing & Big Data applications Drive Need for High-Availability Systems to Help Eliminate Unscheduled Downtime VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 25

26 OT/IT Convergence is One of Enablers of Edge Control Enterprise Applications Edge Infrastructure Devices, sensors, assets Ethernet Gateways ERP Analytics Wireless Gateway s Demand Planning DBMS PLM Cellular Gateways Purchasing Asset Management Ethernet Switches Etc. Routers Supply Chain Wireless Access Points Converged Control Architecture, Gives Critical Capability to Manage Assets On Premise or Cloud Includes Connected Control Platforms with Remote Access, Advanced Automation, & Operator Override Local Control & Firewall Protection for Cybersecurity Available to Maximize Benefits for Mission-Critical Situations Edge Applications: Power Monitoring, Machine Automation, & Process Automation Systems Device Monitoring, Control, & Safety VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 26

27 Summary Food AI & Beverage Manufacturers Deploying a Simplified OT/IT Infrastructure can Reduce Both Technical & Business Risks Providing Solutions Maintainable by Operations & Maintenance Personnel OT/IT Infrastructure Enables Integration of Disparate Equipment & System Information End-to-End Production Visibility & Traceability, automated data collection, efficiency & analysis Flexible & Robust OT/IT Infrastructure Easiest Path to Address Existing Applications & Achieving IIoT & Digital Transformation Initiatives A Modern OT/IT Infrastructure is Essential to Help Food & Beverage Companies Address Their Manufacturing Challenges & Make A Positive Impact to Productivity & Profitability VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 27

28 Dairy Farmers of America Producer of milk, ice cream and other dairy products, sports drinks and salsa for well-known brands Upgrade server architecture to standardize, ensure absolute availability and improve operation speed of Portales plant without interrupting operation Solutions considered High-end Dell/IBM/HP server farm Rockwell Automation s server offerings Low-end solutions such as Why don t we just go down to Walmart and buy some servers? Chosen solution Stratus ftserver 6410 system ACP ThinManager running 15 virtual machines supporting: PlantPAx, HMI, FactoryTalk, EWS, Histortian, and more Requirements 24x7 monitoring of entire stack Total hardware redundancy Enough capacity to run all VMs on one server No defined life expectancy Simple implementation Business impact Eliminated downtime Improved efficiency of overall system Lowered implementation cost Widened IT infrastructure Hours and perhaps days of downtime have been eliminated by removing the unsupported PCs and replacing them. Eric Miller, Engineering Manager Dairy Farmers of America 2016 Stratus Technologies. All Rights Reserved. 28

29 Next steps Learn more Gain more insight on how Stratus has helped similar organizations. On-demand Webinar: Process Magazine - Best Practices to Modernize and Simplify Your Industrial Control Systems Whitepaper: Trends in Accelerating Performance Improvements Talk with an expert For more information on Stratus, or to schedule a live demo, contact Greg Paden, Greg.Paden@stratus.com, (978) (AMER) Kasia Licwinko, Kasia.Licwinko@stratis.com, +44 (0) (EMEA) For more information on ARC Advisory Group, or the author, contact Craig Resnick at cresnick@arcweb.com Follow us Stratus Website: Stratus LinkedIn: Stratus Blog: ARC Website: ARC OT Blog: Industrial IoT Blog: VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 29

30 Sponsored by: Thank you!