The Internet of Things (IoT) and Manufacturing

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1 Stu Johnson Plex Systems 10 Nov., 2015 The Internet of Things (IoT) and Manufacturing Do you know MESA?

2 Introduction Stu Johnson Director Product Marketing Plex Systems Careers Mechanical Engineer A&D Systems Engineer CAD Biz Dev Industrial Design / CAD Product Marketing PLM Product Marketing ERP/MES/Cloud

3 The Smart Manufacturing Roadmap Internet of Things The power of knowing what MESA KNOWS

4 IoT vs. IIoT According to LNS Research The Internet of Things The Internet of Things (IoT) is a network of networks encompassing the use of standard Internet Protocol (IP) technologies to connect people, processes, and things to enable new cyber-physical systems. The Industrial Internet of Things The Industrial Internet of Things (IIoT) should be understood as a subset of the broader IoT, where the people, processes, and things are primarily engaged in the production of physical goods and maintenance of physical assets.

5 Projected economic impact of IoT Potential ranges from $ trillion annually $6.2T Impact by 2025 Potential for $ trillion in savings in manufacturing $2.3T McKinsey & Company 2013

6 Projected impact for manufacturing McKinsey Global Institute analysis: Discrete and process manufacturing industries Total operating cost of manufacturing $47T by % saving in operating costs, maintenance, and input efficiencies Low cost of sensors and large demand for optimization High adoption of IIoT 80 to 100% of all manufacturing = Leads to potential impact of $2.3T per year by 2025 < 1% of data currently used, mostly for alarms or real-time control; more can be used for optimization and prediction McKinsey & Company 2013

7 Market readiness Adoption of IIoT Impact of IIoT 2015 LNS Research. All Rights Reserved

8 IoT market maturity

9 The Internet of making things Intelligent equipment Fix me! Operators Associates Knowledge workers You can have it any color you want Videos courtesy of Plex Systems

10 Smart products Products: individually or as a system Connected via internet accessible by smart phones Better service, maintenance for higher uptime/utilization Deliver new features, functions, value-added services A platform for new business models, product as a service

11 Smart systems The number of people 80+ years old will be ~3x greater in just a few decades. Automated driving can extend their independence. Intel - On The Road To Autonomous Driving

12 Smart operations - Challenges

13 Smart operations - Benefits Operations optimization: productivity 10 to 25% Predictive maintenance: maintenance -10 to -40% downtime -50% capital invest -3 to -5% Inventory optimization: carrying cost -20 to -50% Automated quality Real-time dashboards McKinsey & Company 2015

14 The IIoT An enabler for Smart Manufacturing The power of knowing what MESA KNOWS

15 This will be a long journey LNS Research, 2015 Smart Connected Operations ebook 16

16 Thank You! Stu Johnson Director of Product Marketing Plex Systems Mobile: MESA International S. Southgate Drive - Chandler, AZ USA - HQ Phone: +1 (480) F: +1 (480) The information contained in this document is MESA International Proprietary Information and is disclosed in confidence. This information is to be used solely for the pursuit of MESA International purposes. This information shall not be used, disclosed to others or reproduced without the express written consent of MESA International. If you believe you have received this document in error, please notify the contact above immediately and delete the document. Do you know MESA?