Smart Solutions with Connected Manufacturing. Chet Namboodri Managing Director Global Manufacturing Industry Cisco Systems, Inc.

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1 Smart Solutions with Connected Manufacturing Chet Namboodri Managing Director Global Manufacturing Industry Cisco Systems, Inc.

2 Agenda Manufacturing Industry Business Drivers Business Value of IoE with Connected Manufacturing Connected Manufacturing Smart Solutions Solutions Use Case Examples & Closing Business Demonstration over TelePresence

3 How can I need to improve capturing knowledge for my transitioning workforce How can I improve workforce productivity? I need to achieve How can I better manage my introduce new products faster? How do I achieve

4 Internet of Everything (IoE) Convergence Helps to Address These Priorities Proprietary Networks Ruggedized Infrastructure Ethernet/IP Optimized for Industrial Applications IoE / IoT Architectures Connected Manufacturing evolution of Operational Technology Enterprise IT Why converge networks? Time to market Security: perimeter no longer viable Simplicity and Flexibility: maintenance and management Problem resolution Voice, video, data collaboration Control of plant performance Remote talent Standards convergence open systems Future proofing Manufacturing Operations

5 IoE Business Value at Stake: ~$2T for Manufacturing Industries Asset Utilization Employee Productivity Supply Chain / Logistics Customer Experience Innovation

6 IoE Business Value: Connected Manufacturing Smart products and services Smart ops processes Visual supply chains Customer experience Employee Productivity Connect devices, machines, facilities, transport fleets, grids and networks with advanced sensors, controls and software apps Visual plant operations, asset and people visibility, interactive and mobile plant workforce Inbound and outbound visibility and risk management Omni-channel experience Connecting people (enterprise, partners and customers) anytime to support R&D, Operations, Maintenance, Service Levels and Quality Advanced analytics Combination of power of science (physics, chemistry etc.), analytics, predictive algorithms, domain knowledge Source: Cisco IBSG, 2013

7 Connected Manufacturing Solutions Industrial Smart Solutions for Manufacturing Remote Expert for Manufacturing Business Video Visual Factory of the Future Connected Vehicle / Connected Product

8 What is a Smart Solution? Cisco Industrial Smart Solution for Manufacturing Validated and documented Smart Business Architecture Integrated Cisco and partner solutions and roadmaps Comprehensive support and service network Lifecycle services with smart capabilities Five year product warranty ROI tools and financing

9 Smart Solution Benefits Faster Network Implementation, Faster ROI The Industrial Smart Solution Business Architecture deployment is prescriptive, out-of-the-box, scalable and flexible Reduced Business Risks The Industrial Smart Solution follows the strict guidelines of Cisco s Smart Business Architecture (SBA) A validated architecture, rigorously tested, beyond the QA testing of individual components and systems Industry Leading Partners Architecture interfaces seamlessly with partners including ABB, Honeywell, Emerson, Rockwell Automation Lifecycle of Services Smart Solutions include comprehensive services for industrial network planning, building and management

10 Aspirational Context for Connected Innovate Manufacturing Solutions Redesign Run and rebalance Better execution of current ops. to improve competitiveness Industrial Smart Solutions Remote Expert for MFG Visual Factory of the Future Connected Vehicle Redesign operations to improve cost and / or increase growth Change the game by innovating across the industry value chain

11 Industrial Smart Solution Customer Use Cases Process Discrete Smart Assembly Converged Plantwide Visibility Connected Machine Plant OEE Integrated Industrial Energy Management Plant Alarm and Event Resolution

12 Smart Assembly & Connected Machine CHALLENGE: Inconsistencies in network integration between the manufacturing and enterprise zones Unable to share information between production cells and partners Static and inefficient processes Lack of remote diagnostics CUSTOMER BUSINESS BENEFITS: Lower the cost of deployment and operation through common, standard network Reduce downtime by remotely accessing systems and collaborating with partners Enhance equipment performance with realtime visibility and access to information Provides a proven, unified control and information infrastructure delivering precision, resiliency and reliability from the Plant Floor to the Enterprise

13 Plant Alarm and Event Resolution CHALLENGE: Lack of real-time notification of alarms and events at the sensor level Skill and training gaps Increased support cost due to service standby Lack of remote access CUSTOMER BUSINESS BENEFITS: Secure remote access and monitoring Leverage open standards and protocols to connect with sensor-level network Seamless integration with security and safety systems A Secure Integrated Plant Floor and Enterprise Architecture Decreasing Time to Resolution and Driving Efficiency and Scale into Maintenance Operations

14 Industrial Smart Solution: Commitment to Architecture and Product Roadmaps

15 With the advances in networking technology, the time is now for manufacturers to look into adopting the latest network technologies to overcome the historic isolation of the control platform from the enterprise. While only time will reveal the real value of Cisco's Industrial Smart Solution, the company is now better positioned to help their manufacturing customers overcome the historical isolation between field level, manufacturing operations level, and enterprise level networks. Aberdeen 2013 Market Alert

16 Remote Expert for Manufacturing: Business Video Use Cases Achieve Operational / Plant Floor Excellence Reduce Plant Downtime Improve Worker Productivity Create Immersive, Nimble Supply Chains Elevate Supplier Quality Improve Delivery Performance Improve Customer Intimacy Speed Issue Resolution Improve Customer Service Accelerate New Product Time to Market Discuss complex topics Transfer knowledge quickly

17 Operational Excellence with Connected Manufacturing Business Video Onsite Presence Remote Expert Share video, audio and annotated production failures with engineers in real-time Monitor production line quality and react immediately to deviations Link remote design teams for audits, design and service reviews Deliver remote hands-on training and improve problem resolutions by over 200% Mitigate risks with networked video surveillance

18 Visual Factory of the Future CHALLENGE: Information on the plant floor is often static Employees need real-time visibility of safety / security, and production information Skill gap due to transitioning workforce Corporate messaging difficult to deliver to plant personnel Incomplete awareness of critical production data, like schedule and quality metrics CUSTOMER BUSINESS VALUE: Info presented dynamically throughout plant Improved productivity and quality metrics Fewer safety incidents and removes silos for training, and production data Deploy secure real-time access to production data to enhance plant efficiency, safety, and return on assets.

19 IoE Enables Connected Manufacturing Integrated key expertise through voice, video and access to applications Improve improving operational efficiency Operational Response Safe and Secure Operations Integration Key experts respond to issues with access to Increased information on plant process and assets by extending sensor network and adding location determination operational applications and access to voice Tightly manage access to operational systems Reduced cost by relying on standard network and video Control flow of traffic and data between key zones Security and Network Administration Mobile technicians stay in touch and have access towide Area Hardened Wi-Fi Network Operations DMZ Operations IT Network key data Network Industrial Video Wi-Fi Mesh and Location Receivers Wireless Controller 1 Location Engine Core Routers Operations Operations 3 Managers, Engineers Terminal Costs Reduce Support Distribution Server Routers Rely on IT for support on standard networks Reduce the number of Access technologies supported Si Si ERP, etc. Voice 3 Management Internet IT Servers Wireless, Video and Voice Servers Video Ethernet Si 1 Router Extend Visibility: Plant Locationor System-wide Chokepoint 2 Location Improve operational efficiency with more information Switches Tags by cheaply deploying additional sensors and devices Automation and Reduce loss and search Wi-Fi timevoice with location context of Control Applications mobile assets and product Improve Support andindustrial Decision SwitchMaking Cell/Area Wireless Sensor Management or enterprise users access up to date Network Automation and Control Devices operational status Back-office applications integrate real-time with operational applications Sensor Mesh Network Si 2 Teleworkers/ Customers and Partners Remote

20 Connected Manufacturing Addresses Business Imperatives Agility with Efficiency Rapidly shift capacity to accommodate demand shifts or geographic events Optimize materials management through product lifecycles Decrease risk Speed with Security New Business Models Reduce problem resolution and TTM by collaborating with remote, virtual experts with context-rich audio, video and immersive data Create new service models with machine-to-machine networks feeding service expert workflows Access to detailed production data speeds decision making Secure remote access enhances global operations Intellectual property and downtime safeguards

21 Producing Tangible Business Benefits Best-in-Class Manufacturers Top 20% 8 hours of downtime per year (99.91% Uptime) 11% total cost of ownership reduction for industrial network 90% Overall Equipment Effectiveness (OEE) +25% operating margin vs. corporate plan 67% Converged Industrial Ethernet Adoption Rate Middle 50% Bottom 30% Downtime: 36 hours/year OEE: 80% Downtime: 135 hours/year OEE: 60% 33% Converged Industrial Ethernet Adoption Rate Source: Aberdeen Group 2012

22 This is about a business change, to make our manufacturing facilities more flexible, more agile and more lean. Kirk Gutmann GM Global Information Officer, Manufacturing and Quality

23 Questions? Thank You

24 TOMORROW starts here.

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