Transforming to Digital Manufacturing to Accelerate NPI, Growth and Profits Chet Namboodri, Global Industry Director - Manufacturing PSOGEN-2004
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1 Transforming to Digital Manufacturing to Accelerate NPI, Growth and Profits Chet Namboodri, Global Industry Director - Manufacturing PSOGEN-2004
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3 Agenda Introduction Global Manufacturing trends and business imperatives Customer Outcomes and the formation of Connected Factory Cisco Connected Factory of the future for Digital Manufacturing Catch the Digital Manufacturing wave and achieve real results Conclusion
4 What s on the Mind of a Manufacturing Executive? Asset Optimization Improving Flexibility, Uptime, Efficiency Faster Time to Market and New Product Introduction (NPI) Workforce Productivity, New Skills, Safety- Aging Workforce Dilemma Lower Total Cost of Ownership Security, Security, Security
5 IDC 2015: ROI More Important than Ever
6 Customer Outcomes and the formation of Connected Factory
7 General Motors Future-Proof Operations with Plant Floor Control Networks (PFCN) PFCN is a tremendous engineering accomplishment for GM. Standardizing plant networks has reduced costs, improved uptime and provided a flexible platform for future applications such as collaborative engineering Nick Bell Program Information Officer, Global Manufacturing & Labor General Motors Challenge Accelerate entry into emerging markets, specifically Brazil and China Improve product quality and realize cost efficiencies Create a globally integrated, standards-based engineering and manufacturing platform Solution Deploy modern, standards based network architecture Plant Floor Communications Network (PFCN) enabled by Cisco with ecosystem of Industrial Automation vendors and Machine Builders Results $53M savings in network operations staff $76.3M/yr in automotive production profit contribution from improved uptime $5.4M in spare inventory savings 166% ROI projected over 5 years 75% downtime reduction at Greenfield assembly plants, compared to legacy plants Click here for GM case study
8 Harley-Davidson Retooling for Flexibility and Cost Productivity with IoE What used to take hours or days to triage and troubleshoot problems now takes seconds. David Gutshall Infrastructure Design Manager, Harley-Davidson Motor Company Challenge Harley-Davidson moved to reduce costs and increase efficiencies Hundreds of motorcycles built each shift, with low cycle time per operation Manufacturing complexity with 1200 different configurations Solution Architect an end-to-end Converged Plantwide Ethernet Automation solution enabling Harley-Davidson to achieve its goals of world-class manufacturing, built on RA- Cisco IE switching and closedloop controls fabric Cisco Unified Wireless Layer in Visual MFG on the wired-wireless infrastructure Click here for H-D case study Results Model NPI reduced from more than a year to 1.5 wks Enabled paperless factory for rapid response Increased OEE by 7-12% (+1% OEE yields upwards of +4% in Op Margin) Up to 25x improvement in build-to-order cycle times Reduced downtime and scrap, yielding $200M benefit
9 Cisco Connected Factory of the future for Digital Manufacturing
10 IDC 2015: Heat Map of Leading IoT Applications
11 Connected Factory Digital Business Solutions Connected Factory Factory Automation Factory Wireless Factory Security Factory Digitization Efficiency, TTM, Flexibility Speed, Agility, Lower Costs Remote & On- Premise Access Reduce energy, downtime, recalls
12 Connected Factory Business Challenge Innovative assembly engineering for: Improved quality Increased volumes Greater utilization Reduced costs Improved concrete-to-carpet visibility Increased agility Capabilities Required Fully automated assembly using IPbased control networks that transport top-to-shop floor info in near real-time Improved process entitlement and efficiencies Remote monitoring Remote diagnostics Customer Use Case Solution Overview Business Outcome / Value Proposition Cisco Products IE Catalyst ASA ISR AP Clean Air Wireless Controller Cisco Differentiation End-to-End architecture Secure remote machine access, Diagnostics and maintenance via enterpise network using IT-friendly, proven, stds-based solution for Manufacturing automation. Standard plant engineering templates for single set of network design guidelines and standards that drives out costs, reduces time-to-market and increases SLA of Manufacturing IT 70% reduction in network engineering, support and spares; 75% reduction in network-based plant downtime; 300x reduction in plant application deployment cycles Global visibility and platform for OEE improvements, cost reductions and profitability 25% improvement in operating margins; OEE (availability * throughput * quality) from as low as 60% to 90%; 11% reduction in TCO for plant network assets 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 Connected Factory Reference Model, Architecture Business Domain Foundational Solution Use Cases Capabilities Enabled Supporting Architecture Enterprise Zone DMZ Plant Cell/ Area Zone Enterprise Applications and Network Level 5 Site Business Level Planning/Logistics Network 4 Demilitarized Share Access Site Manufacturing Operations and Control Area Control Basic Control Process Level 3 Level 2 Level 1 Level 0 CF Digitization CF Security CF Wireless CF Automation Energy visibility, analytics Cloud / App Virtualization Predictive Analytics Machine as a Service Plant Infrastructure as a Service Identity Services Physical Security Machine / Controls cyber security Secure Remote / On-Prem Access Data & App Services Access Mobile controls visibility Wireless tooling, I/O Asset tagging with RTLS Mobile Video Mobile HMI, MES, other Apps Converged Networks with App / Data Integration Flexible Manufacturing Rapid Fault Isolation Resiliency (REP, DLR) Ease of Use (NAT) 12
13 Enabling the Digital Factory of the Future Sensors Real-Time Analytics Personal Devices Robots and Machines Security Devices Sensors Everywhere Machine-to- Machine Pervasive Intelligence Automation Ruggedized Wireless AP Industrial Routers and Switches User- and Control- Level Factory Security Hardened Mobile M2M Gateway Faster Time to Market, More Agility Improved Asset Utilization Lower Total Cost of Ownership Tighter Risk Management
14 Mahindra Automotive Designing and Implementing the Digital Factory of the Future We were missing the visibility in the shop floor and thru many parts of the lifecycle journey of our vehicles. Now we have much better information and all this connectivity through the Internet of Everything. V.S. Partharasathy CFO and Group CIO, Mahindra and Mahindra Challenge New Chakan Plant needed to be adaptable to changes in technology, equipment and process Minimize conversions by standardizing technology and vendors Needed full integration from top floor to shop floor Solution Deployed (PFCN-derived) Control Networks using IE and Cisco & Rockwell Automation converged architecture (CPwE) Integrated TAKT Time Control Full Digital Manufacturing capabilities with centralized control room utilizing Andon as primary tool to manage all areas Click here for Mahindra case study Results 9-month faster startup (30%+ reduced TTM) of Chakan Greenfield plant and new model introductions, compared to previous Mahindra Greenfields and competitive benchmarks Production output between year 1 and 2 of model NPI +73% Plant performance within 5% of stretch design targets
15 Catch the Digital Manufacturing wave and achieve real results
16 Cisco Can Help You Capture IoT Value-Add Opportunities for Digital Manufacturing Discovery Workshop with OT and IT POC Design Business challenges Best practice sharing Use case brainstorming and prioritization Run POCs in a showcase manufacturing facility to prove the value and technology TCO or OEE Opportunity Quantification Quantify top value opportunities for senior management (TCO, OEE, and overall benefit models) End-State Architecture Assessment Document future state architecture (3 to 5 years out), gaps that exist today, change management, and a phased plan to reach goals
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18 Sugar Creek Packaging Food manufacturer expands product portfolio with Connected Factory With the help of the Cisco Services and Global Manufacturing Industry practice, we have been able to expand our product portfolio, production capacities, efficiencies and capabilities with a new plant. We re able to achieve many new benefits with the additional insights into our operations not previously available. Rob Daley CEO Sugar Creek Challenge Get better transparency of real-time production to schedule Expand into a new product portfolio that needs sensors everywhere (Sous-Vide) for ideal production Need to understand effects of emergency issues and help first responders in case of issues Gain better visibility to real-time OEE for all users in all locations $100m annual energy bill Solution Cisco Advanced Services for complete Greenfield design to integrate the Cisco Connected Factory architecture Includes Cisco Wireless with AeroScout RFID tags for Location Based Services, Security, and communications on one network Integrates machine data to digital signage and mobility applications using Cisco Analytics Cisco EnergyWise for Manufacturing Projected Results Met Greenfield implementation and start-up schedule, including new product and process capabilities Improved labor utilization to 90% Integrated single pane of glass visibility for all operations New IoT sensors adding predictive maintenance capabilities, lowering costs and increasing OEE by 25% Lower energy costs (per sq.ft) by 15% Replicable blueprint for retro-fit of other five facilities
19 Q&A
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21 Complete Your Online Session Evaluation Give us your feedback to be entered into a Daily Survey Drawing. A daily winner will receive a $750 Amazon gift card. Complete your session surveys though the Cisco Live mobile app or your computer on Cisco Live Connect. Don t forget: Cisco Live sessions will be available for viewing on-demand after the event at CiscoLive.com/Online
22 Continue Your Education Demos at the World of Solutions GENWOS-1000: Connected Factory Experience Industry Table Topics, Meet the Engineer 1:1 meetings, Other Related Sessions Tuesday: CISSOL-1035 Connected Factory and the IoE (Mini-Session) Solution Theatre 11:45am BRKIOT-2108 Connected Factory Architecture Theory & Practice 24C Upper 1pm Wednesday: CCSIOT-1834 Sugar Creek: Enabling IOT in the Connected Factory 11A Upper 1pm PCSSOL-1024 Bayshore & Cisco Cybersecurity for Industrial IoT Solution Theater 1:30 PSOIOT-2004 The Next Industrial Transformation with IoE 14B 3:30 BRKIOT-1101 The Journey to the GE Brilliant Factory 23AB Upper 3:30 CISSOL-1035 Connected Factory and the IoE (Mini-Session) Solution Theatre 4pm Thursday: PSOIOT-2005 Bridging the IT to OT Technology Gap 14B 9:30am
23 Internet of Things (IoT) Cisco Education Offerings Course Description Cisco Certification NEW! CCNA Industrial An associate level instructor led training course designed to prepare you for the CCNA Industrial certification CCNA Industrial Managing Industrial Networks with Cisco Networking Technologies (IMINS) Control Systems Fundamentals for Industrial Networking (ICINS) Networking Fundamentals for Industrial Control Systems (INICS) This curriculum addresses foundational skills needed to manage and administer networked industrial control systems. It provides plant administrators, control system engineers and traditional network engineers with an understanding of the networking technologies needed in today's connected plants and enterprises For IT and Network Engineers, covers basic concepts in Industrial Control systems including an introduction to automation industry verticals, automation environment and an overview of industrial control networks For Industrial Engineers and Control System Technicians, covers basic IP and networking concepts, and introductory overview of Automation industry Protocols. Cisco Industrial Networking Specialist For more details, please visit: Questions? Visit the Booth or contact
24 Thank you!
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