Automation University Aarau 2017

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1 PUBLIC 5058-CO900H Copyright 2016 Rockwell Automation, Inc. All rights reserved. Automation University Aarau 2017 AU2017 CHP06 Realisiern Sie Industrie 4.0 PUBLIC

2 Accelerating High Performance Operations 2

3 Macro Trends and PRESSURES Market Global Competitiveness Workforce Talent Shortages & Skills Gap Risks Changing Risk Patterns Technology Industrial Internet of Things Opportunities and challenges in changing global landscape Global challenge hiring and retaining Highly publicized and expensive incidents worldwide IoT value at stake and growth of internet enabled assets 220,000 New engineers every year 70% Suffered a security 11% Of worlds economy in 2025 until 2022 to connect the unconnected breach in the last year will be provided by IoT 2014 Ponemon Institute survey McKinsey & Co 2015 The World Bank Studies 3

4 84% of Executives believe Internet of Things (IoT) will create new income streams for their operations IoT will deliver: 87% long-term JOB growth 57% long-term REVENUE growth 46% saw improving productivity as the key benefit of IoT 61% Executives cited digital initiatives as a tool for growth, compared to 31% in Leaders understand IoT? 38% fully understand it 57% some understanding 4% little at all ONLY 7% have developed a comprehensive strategy SOURCE: Accenture CEO Briefing and The Economist Intelligent Unit 4

5 Industrial IoT Opportunity $4.6T Economic Impact of Industrial IoT by 2025 McKinsey & Co. Asset Utilization Employee Productivity Supply Chain Logistics Customer Experience Innovation 35% MANUFACTURERS at early adopter stage of IoT use case development LNS Research 5

6 Business Risks & Drivers Realizing Smart Manufacturing has become a business imperative $65B Automation systems reaching end of life ~75% U.S. plants are more than 20 years old $20B cost of unscheduled downtime 2 Exabytes Big data generated in manufacturing <14 % US Plants completely integrated 21% Suffered a loss of IP in the past year SOURCE: ARC SOURCE: Industry Week SOURCE: ARC SOURCE: McKinsey SOURCE: Industry Week SOURCE: Kapersky (2014) 6

7 SMART MANUFACTURING Highly Responsive to Consumers Less Supply Chain Risk & Variability Disaster Forecasting & Recovery Inventory Reductions Production Efficiencies 7

8 8 Government Coalitions Visions for fueling manufacturing leadership Technologies Innovations that redefine and create new value opportunities Smart Manufacturing Leadership Coalition Industrie 4.0 Made in China 2025 Manufacturing Innovation 3.0 Usine du Futur IoT Security CPS SMART MANUFACTURING ENABLED BY THE CONNECTED ENTERPRISE AVAILABLE Today and FOUNDATIONAL to Achieving These Visions Industry Consortiums Assemble and promote best practices Industry Standards Drive interoperability and commonality

9 KEY AUTOMATION MARKET DRIVERS Technology Tailwinds LOWER COST OF CONNECTIVITY IT-OT CONVERGENCE SCALABLE COMPUTING OPTIONS AVAILABILITY OF DATA CUSTOMER IMPLICATIONS More smart devices on the factory floor Secure connections between plants and the enterprise Greater value from managing information at the appropriate level Convert data to information for better business decisions

10 Rockwell Automation s Integrated Architecture is A High Performance Architecture Scalable Multidiscipline Control Built Upon Contemporary Technologies Manufacturing Intelligence Machines & Process Safety INTEGRATED CONTROL AND INFORMATION Diagnostics & Prognostics Secure Reference Architecture Track / Trace, Genealogy $ Integrated Architecture Intelligent Motor Control Services & Solutions

11 Contemporary Technologies Enhance The Connected Enterprise Scalable Computing (Control, Edge, Cloud) Information Management & Analytics Multi-discipline Control & Information Mobility & Visualization Smart Assets Secure Network Infrastructure SMART ASSETS ARE SELF-AWARE & SYSTEM AWARE 11

12 Bringing The Connected Enterprise to Life

13 Business Systems Transactional ERP - MRP FINANCIALS HR LOGISTICS QUALITY CRM IT CONVERGENCE Operations - Real-time OT SENSORS, ACTUATORS CONTROLLERS MATERIALS & TRANSPORT MACHINES & EQUIPMENT 13

14 World-Class Partners and Ecosystem Are ESSENTIAL IT COMMON SECURE NETWORK INFRASTRUCTURE OT

15 Business Drivers Faster Time to Market Improved Asset Utilization END USER OEM Flexibility Integration & Standardization Performance/OEE Enterprise Risk Management Lower Total Cost of Ownership Exceed Productivity & Efficiency Goals Innovation to Drive Differentiation After Market Service & Support Total Cost to Design, Develop & Deliver SMART MANUFACTURING SMART MACHINES & EQUIPMENT 15

16 SMART Machines & Equipment Real-time Data Voltage, Kwh, Running Time, Temperature Information CONTEXTUALIZATION Energy/Product, OEE Knowledge ANALYTICS Predict bearing will fail in 10 hours Optimize ACTION More efficient process workflows 16

17 Smart Machines & Equipment Integrated Safety Information Enabled Simplified Integration Real Time Diagnostics/ Analytics Operational Efficiency 17

18 Information Enabled Solutions: Embedded machine diagnostics from more intelligent devices Performance Dashboards Access to machine information (OEE) & advanced diagnostics Networking Infrastructure (shop floor to top floor) & remote access for the machine builder Change Detection Controller Log Secure Remote Access to Performance Analysis Data

19 Real-Time Diagnostics Solutions: Embedded intelligence devices Monitor motor currents, vibration/torque signatures Device diagnostic HMI faceplates and validated Add-on-Instructions Built-in web servers for device monitoring Reduced MTTR and MTBF by accessing real-time data locally or remotely

20 Smarter Plants & Operations Yield will meet today s production needs 7100KWh of energy used today ALERT Maintenance Line #1 Time to reach temperature is longer than normal 20

21 VISIBILITY See deeper into operations and logistics, with new ways to link processes and facilities to suppliers and customers. COLLABORATION Between people, between teams and departments, and even between the machines themselves. EFFICIENCY Transform information into insight. Increase ROI, get to market faster, and dramatically reduce waste. 21

22 Project management Workforce training solutions Best practice architecture & control design Global support centers Equipment optimization Machine Builder Channels Safety: conformity audits, hazard & risk assessments Local delivery, expertise, & support

23 Journey to a Connected Enterprise People, Processes and Technologies Business Impact CONNECT EVALUATE COLLECT PRESENT OPTIMIZE Connect plant equipment & people Use available, standard technologies Must be scalable and flexible What data is needed, from which assets, and define how it helps Ensure the assets are able to provide the information need Data from assets and organize to improve business processes Leverage information from across the plant and enterprise Contextualize it against other data Make it actionable & to make smarter decisions Put it in terminology that s right for the user Correlation & qualitative analysis of the information for process improvement Maximize plant workflow in a coordinated way Do it securely Make the plant integral to B2B partners 23

24 Organizational Alignment Competency, Talent CHALLENGES Technology Adoption Data Security, Privacy Interoperability Standards 24

25 387, 000 SKUS 20 PLANTS UP TO 200 SKUs AVG ORDER 20 YEARS AVG PRODUCT LIFE PRODUCT TYPES Stock + Configure to Order Engineered to Order 25

26 The Connected Enterprise Rockwell Automation Transformation Inventory 120 days to 82 days CapEx 30% per year in capital avoidance Delivery Mid-80s to 96% Lead Times Reduced 50% Time to Want 82% to 98% Quality 50% reduction in PPM Productivity 4% to 5% per year Rockwell Automation Journey Video 26

27 Organizational Structure Information Infrastructure Technology Upgrade Educate & Train Partnerships Change Management Build a collaborative team Reliability and security Modernize for the digital world Develop the skills Essential to close the gaps Don t underestimate the challenges and rewards Keys to a SUCCESSFUL Connected Enterprise

28 Assess & Plan The Connected Enterprise EXECUTION Secure & Upgrade Data & Analytics Optimize & Collaborate 28

29 The Connected Enterprise delivers transformational value in productivity and global competitiveness $ Faster Time to Market Lower Total Cost of Ownership Improved Asset Utilization Enterprise Risk Management

30 Thank you for your attention.