Automation & Enterprise Trends - F&B Industry

Transcription

1 ISAB/F&B Symp/ /Slide No. 1 Standards Certification Education & Training Publishing Conferences & Exhibits National Symposium on Automation & Digital Transformation of Food & Beverage Industry 26 th & 27 th February 2016 Automation & Enterprise Trends - F&B Industry G. Ganapathiraman GM & VP India & SE Asia ARC ADVISORY GROUP RamanG@arcweb.com

2 ISAB /F&B Symp / /Slide No. 2 About ARC Advisory Group Established in 1986 in Boston, USA Global: US, Canada, Germany, Belgium, Japan, China, India, Brazil, Argentina, Singapore Activities: Focused on Industry and Infrastructure Corporate Advisory Services, Market Research Reports, MIRA, STAR & Guides Forums, Custom Projects

3 ISAB /F&B Symp / /Slide No. 3 Research Domains Analytics and Big Data Asset Lifecycle Management Energy Management and Sustainability Governance and Risk Management Industrial Networks and Cyber Security Industrial Internet and M2M Manufacturing IT and Cloud Computing Machine Control and Safety Operations Management PLM and Virtual Manufacturing Process Automation and Safety Sensors, Transmitters, and Actuators Smart Cities and Infrastructure Supply Chain and Logistics ARC s Collaborative Management Model

4 ISAB /F&B Symp / /Slide No. 4 Key Industries Covered Aerospace and Defense Automotive and Heavy Machinery Chemical, Cement, and Glass CPG, Food, and Beverage Electric Power and Smart Grid High-Tech and Discrete Infrastructure and Smart Cities Life Sciences Logistics and Transportation Mining and Metals Oil and Gas Pulp and Paper Water and Wastewater

5 ISAB /F&B Symp / /Slide No. 5 Top Ten Business Challenges Achieving and Sustaining Exceptional Business Performance Increasing Asset Reliability Reducing Complexity and Customization Create a Proactive Culture to Capitalize on Emerging Opportunities Insulate Businesses from Unprecedented External Challenges Unify Business and Manufacturing with a Common Business Plan Utilize Automation to Satisfy HSE Requirements Protect Operations from Cyber Threats Provide and Sustain a Skilled Workforce Predicting and Realizing Value from Automation

6 ISAB /F&B Symp / /Slide No. 6 F&B Industry Overview The global food and beverage manufacturing industries produce over US$ 3.5 trillion worth of product. Manufacturers operate in highly competitive markets, competing against global, regional, local and private label manufacturers on the basis of price, quality, convenience, variety, nutritional value, and distribution. Innovative new products and packaging remain vital to meeting changing consumer and retailer demands, changing demographics, and local and cultural preferences. Continued emphasis on product and packaging innovation, adding value to retailers, and more effective communication through packaging are the keys to maintaining brand value. The food and beverage industries are remarkably diverse with many small to large, simple to complex manufacturing facilities. To further emphasize the size and diversity, the top 50 food manufacturers' share of global packaged food retail sales

7 ISAB /F&B Symp / /Slide No. 7 Key Questions F&B Manufacturers are Trying to Answer How do I address the fluctuating price and availability of commodities? How do I reduce my energy and other utility costs and ensure the long term availability of these resources? How do I find and evaluate new technology that will support innovation and speed time-tomarket? How do I find and evaluate technology that will improve my manufacturing efficiency and effectiveness? How do I come up with new ideas or equipment that allow multi-tasking and that can reduce change over time? How do I reduce my manufacturing cycle time? What are the best metrics to support future manufacturing requirements? What are the leading best practices in the food and beverage industries, in manufacturing in general, and for sustainable manufacturing? What is my competition doing? How do I support my ever-expanding manufacturing and business automation systems and networks? What are other companies doing to improve the skill sets of their operators and staff?

8 ISAB /F&B Symp / /Slide No. 8 Major Trends Global Scenario Emerging Markets, Urbanization, Changing Demographics BRIC and CIVETS countries identified as emerging markets due to actual and growing purchasing power Urban population growth explosion Addressing the needs of each demographic will be the key to future success Changing Consumer Purchasing Patterns Consumers becoming more value-conscious, health-conscious, and socially conscious Manufacturers are responding to rapidly changing consumer purchasing patterns with an even wider variety of product and packaging innovations Packaging Becoming a Key Differentiator In response to escalating productivity and efficiency demands from food and beverage manufacturers, packaging machinery OEMs have begun to embrace global equipment standards A growing trend toward integration, automation, and standardization is beginning to take hold in the packaging machinery manufacturing sectors The Walmart Effect Mega-size, power retailers, at the forefront of recognizing consumer purchasing patterns, are driving the demand for more sustainable manufacturing practices among their suppliers since they recognize that these can help them increase their respective market share and lower their business costs

9 ISAB /F&B Symp / /Slide No. 9 Major Trends Global Scenario Rising Food Safety Due Diligence and Cost of Quality Governments all over the world are intensifying their efforts to improve food safety in response to an increasing number of food safety problems and rising consumer concerns. Regulatory Requirements and Global Standards The requirements for a food safety plan include several elements, each of which appear to be more comprehensive than current requirements and are likely to drive investments in new automation and/or IT assets Drive Toward More Sustainable Manufacturing Sustainable manufacturing and supply chains practices that reduce waste, minimize the use of valuable and limited resources, and minimize impact on the environment, as well as taking on more social responsibility The Transparent Enterprise in the Information Age Manufacturers are being held to unprecedented levels of accountability throughout their supply chain and manufacturing operations

10 ISAB /F&B Symp / /Slide No. 10 Drivers of Automation in the F&B Industry

11 ISAB /F&B Symp / /Slide No. 11 Inhibitors of Automation in the F&B Industry

12 ISAB /F&B Symp / /Slide No. 12 Strategies for Success Mergers, Acquisitions, Joint Ventures, Divestitures Splits, and Outsourcing Two of the most common reasons for acquiring a company are to strengthen a product line or gain a distribution channel Three important trends include a new focus on vertical integration, manufacturers in emerging economies acquiring companies in developed economies, and bigger are no longer necessarily better Expansion of Distribution Channels and Markets There is a growing number and type of retail outlets. Consumers are less and less restricted to shopping at supermarkets and power retailer big box stores, which can be miles away. Portfolio Rationalization and Optimization PLM P&G s Swiffer, Tata Motors Nano, Nestlé s yogurt manufacturing project in India are all excellent examples of innovative thinking. Each company determined what the consumer needed, but didn t have, developed a product, and created a whole new market. Productivity, Cost Containment, and Customer Satisfaction CPM/MES, EAM, RPO, Energy saving hardware products, Process Engineering Tools According to several ARC surveys, the primary drivers for deploying CPM software are to help improve plant performance, ensure product quality, and improve product tracking and tracing

13 ISAB /F&B Symp / /Slide No. 13 Strategies for Success Packaging and Supply Chain Optimization Packaging remains a largely manual, standalone operation lacking the horizontal and vertical integration needed to properly manage and monitor operations performance or deliver timely and accurate information to business operations Food and beverage manufacturers and their technology and equipment suppliers are responding with New packaging operations management software New, more efficient packaging machinery with advanced controls and integral robotics systems Machines and equipment with modern communications capability The continued development and deploy-deployment of machine control and information standards Food Quality and Safety Companies are actively deploying new electronic product quality risk, and compliance management systems These include new electronic product quality, risk, and compliance management systems (QRC) and subsystems that include: Document management systems Laboratory information management systems (LIMS) Real time electronic hazards analysis and critical control points (HACCP) systems Corrective and preventative action systems (CAPA) Real time on-line SQC/SPC Model-based and multivariate predictive controls Product genealogy and tracking and tracing systems

14 ISAB /F&B Symp / /Slide No. 14 The Connected World is on the Horizon Systems Cloud, Virtual People Collaboration, Social Processes Information Analytics, 3D Things/ Assets Mobile, IoT Together, These Technologies can Help You Transform Your Business

15 ISAB /F&B Symp / /Slide No. 15 Industrial Internet: The New Frontier Apps Remote Monitoring & Services Advanced Analytics Network Connectivity Platform Most Industrial IoT Building Blocks are Already in Place

16 ISAB /F&B Symp / /Slide No. 16 Industrial Internet Drivers Reduced Downtime and Faster Service are Top Drivers Source: ARC Industrial Internet of Things Survey

17 ISAB /F&B Symp / /Slide No. 17 IoT is a Business Opportunity to Improve Machine Utilization Identifying Problems will Allow the Industry to do More with Less Machinery Reduce Operating time to produce work piece Improve Machine Production Output Improve Utilization of Labor Identify operational issues Identify poorly operating machines Increase the performance of the operator Close the loop with product design Close the loop with CAM systems

18 ISAB /F&B Symp / /Slide No. 18 Increase Utility of Machine Tool by Enabling Operators Machine utilization continues to rely on operators, but skill level is declining Operators often first to identify processes need attention. Operators are an Intelligent Sensor Process Engineers Quality Skill Level Maintenance Technicians Operators Time Today Continued workforce reductions make it necessary to capture the knowledge of process engineers and maintenance workers to maintain quality.

19 ISAB /F&B Symp / /Slide No. 19 Empower the Operator Low Skilled Operators Need to be Connected to an IoT Infrastructure to Improve Performance Workers senses Inspection target Skill Know-how Knowledge Judgment based on implicit knowledge Operation by skilled workers

20 ISAB /F&B Symp / /Slide No. 20 Knowledge Discovery Through Analytics Embeds Rules in Machinery & Production Systems Consistent quality Non dependence on skilled workers Quantitative Characteristics Knowledge Know-how Data sensing From machinery Knowledge-info Control Technologies No skilled workers Extract Learn Infer

21 ISAB /F&B Symp / /Slide No. 21 Knowledge Discovery & Analytics Summing Up Analytical tools that rapidly recognize trends in production Shorten the time from problem identification and corrective action Rapidly identify startup problems to ensure faster time to market Create an environment that is data driven instilling a consistency in corrective actions Decouple operator ability of providing early detection of machine degradation from manufacturing performance

22 ISAB /F&B Symp / /Slide No. 22 Analytics Drives Knowledge Discovery and Creation Improving Manufacturing Metrics

23 ISAB /F&B Symp / /Slide No. 23 Let s Change the Mix of Maintenance

24 ISAB /F&B Symp / /Slide No. 24 The Emerging Smart Production Environment (IIoT, I4.0, etc.) New or Changing - Software: Analytics, APS, MES/MOM, EAM/CMMS, LIMS, PAM, Security, etc. Connected - Mobility and enhanced worker connectivity Machine - Remote services; Product as-a-service - Smart sensors, assets, network connectivity, cloud All along with traditional automation and enterprise systems Self-Planning Systems Flexible Worker Schedules Smart Warehouse Connected Supply Chain Collaboration Augmented Reality Smart Tools Connected Worker Smart Logistics Smart Components Video Presence (Expert Help) Location/Nav Services Access Control Services RFID Smart Carriers Apps Connectivity Platform Smart Machines - Connected - Software-defined - Agents, Apps - Sensors e.g. vibration, ultrasound, infrared etc. Remote Monitoring & Services Advanced Analytics IIoT Smart Module Smart Metrology Enterprise Systems Plant Systems and Assets Smart Containers Connected Enterprise 3 rd Party Services Connected Products Smart Products

25 ISAB /F&B Symp / /Slide No. 25 The Connected Plant XYZ Company XYZ Company XYZ Company XYZ Company Maintenance Engineering Purchasing Corporate Machine Mfr. Service Provider Enterprise New IoT Analytics and Applications Private Cloud Business Systems Private Cloud Share Asset Data with 3 rd Parties Secure Connection Monitor in-service Products Secure Network XYZ Company Smart Machine IoT Smart Module Local IoT Compute and Communicate module Physical asset with sensors, actuators Plant Operations Emerging Option: Connect Big Assets Using New Technologies

26 ISAB /F&B Symp / /Slide No. 26 IoT Industry Groups Many focused on network connectivity for home AllSeen Alliance (2013) Qualcomm, LG, Haier, Panasonic, Sharp Industrial Internet Consortium (2014) AT&T, Cisco, GE, IBM, Intel IPSO Alliance (2008) ARM, Atmel, Ericsson, Freescale, EDF Open Interconnect Consortium (2014) Intel, Broadcom, Dell, Samsung Thread Group (2014) Google/Nest, ARM, Samsung ZigBee Alliance (2002) Freescale, TI, Philips, Schneider Electric Z-Wave Alliance (2005) ADT, Ingersoll Rand, Linear Technologies Smart Manufacturing Leadership Coalition (SMLC) Industrie 4.0 DMDII

27 ISAB /F&B Symp / /Slide No. 27 Industrie 4.0 in the Process Industries Industrie 4.0 has been conceived from a discrete industry perspective The process industry has many concepts of Industrie 4.0 in place Autonomous optimization, controllers are coordinated via the DCS concept (APC, RTO), integrated supply chain and production optimization, etc. The process industries has its own buzzwords and initiatives, also visible at the ACHEMA fair Modular automation and production technologies, to build small, flexible, reconfigurable production units (F3 Factory model) Predictive maintenance strategies (asset health diagnostics/analytics, useful life prediction, planning predictive maintenance, life cycle cost management Remote operation (workforce reduction, reduce night and weekend shifts) Digitalization (seamless engineering, operations and maintenance) US initiative SMLC (common IT platform, advanced modeling, and more) Exception is the German process industry (BASF, ThyssenKrupp) have a process interpretation of Industrie 4.0

28 ISAB /F&B Symp / /Slide No. 28 IIoT Impact on Industrial Companies More Sensors, More Data, More Automation More Analytics, More Visibility More Software Applications New Product Requirements New Production Equipment Capabilities Software defined, autonomous, intelligent New Architectures Cloud, Mobility, Virtual, Distributed New Service Requirements New Customer/Supplier Relationships New Ecosystem/Supply Chain New Business Models

29 ISAB /F&B Symp / /Slide No. 29 Enterprise Software Business Is Evolving New Model: Sell Apps that run as a service in a private or public Cloud require monthly payment can be implemented in weeks or days can support diverse user ecosystem are upgraded by the supplier provide tools for global collaboration

30 ISAB /F&B Symp / /Slide No. 30 Automation Systems are Evolving Attribute From To Focus Technology Business Structure Hierarchical Flattened Cyber Security After Thought Secure by Design Data Multiple copies Single Version of Truth Integration Project-based Standards-based MOM Applications Separate Integrated Control & Safety Separate Integration Options Control & Electrical Separate Integration Options Engineering Design Tied to Hardware/ Software Late-Binding for Hardware/Software Supported By Users Suppliers Technology is no longer a barrier

31 ISAB /F&B Symp / /Slide No. 31 Automation Products & Software for the F&B Industry Products DCSs PLCs Machine Safeguarding Solutions AC Drives General Motion Control (GMC) Unbundled Software Control Valves Transmitters Level Measurement Flowmeters Analytical What is included Distributed control system hardware, software, and related services. PLC hardware, software, and related services. Machine safeguarding solutions cover all key product segments used in machine safeguarding applications. Low and high power variable frequency AC drives (inverters, sensor-less, flux vector), peripheral hardware, drive systems, bundled software, integration, and other relevant software and services. Motion controllers (single and multi-axis), intelligent drives, servo and stepper amplifiers, servo and stepper motors, bundled and unbundled software, integration, and other relevant services provided by GMC suppliers EAM, PAM, RPO, PET, CPM for process, HMI, and LIMS All Control Valve, Actuator, and Positioner (CVAP) hardware, software, and related services. Pressure and temperature transmitters. Includes hardware, software, and services. Continuous ultrasonic level and radar level devices for continuous level measurement applications. Includes hardware, software, and services. Magnetic, Coriolis, ultrasonic, and vortex flowmeters. Includes hardware, software, and services. Process electrochemical systems (PES) and process infrared systems (PIRS) analytical products. Includes hardware, software, and services. Reference: Worldwide F&B Study, ARC Advisory Group

32 ISAB /F&B Symp / /Slide No. 32 IIoT and Transformational Change IIoT increases the value of existing infrastructure More uptime Better performance More responsive IIoT presents a new set of opportunities - and risks for Operations: Leverage data and analytics Leverage 3 rd parties for non-core operating activities Leverage IT organization and technologies IIoT enables machine makers to reinvent their relationship with customers Connected products enables ongoing relationship Engineering, marketing and manufacturing must collaborate Business model morphs to Products and Aftermarket Services PaaS Unpredictable disruption is predicted What is your strategy? Embrace Technology Friendly Culture

33 ISAB /F&B Symp / /Slide No. 33 Thank You! For more information, contact the author at or visit our web pages at