Empowering a Cultural Revolution in the Industrial Revolution

Leading an
Industry 4.0 Organization:
Empowering a Cultural Revolution
in the Industrial Revolution
Will Healy III
Business Development Manager
Email: will.healy@balluff.com
Twitter: @WillAutomate
Monday, November 11, 2019 12:30PM – 1:30PM

 Reduction of manufacturing costs
 Higher machine availability
 Raising OEE
 Improving asset utilization
 Traceability of products & parts
 Improving supply chain
 Reducing scrap rates
 Improve product quality
 Reduce unplanned downtime
WHAT ARE YOUR GOALS?
18. Oktober 2019Balluff Inc | Business Development Manager, Will Healy III @WillAutomate
Leading in an Industry 4.0 Organization

THAT’S
INDUSTRY 4.0!

Motivations:
1. Flexible
Manufacturing
2. Efficient
Production
3. Visibility
WHAT IS INDUSTRY 4.0?

Mass personalization
IoT CASE STUDY
18. Oktober 2019Balluff Inc | Business Development Manager, Will Healy III

INDUSTRIAL INTERNET
OF THINGS (IIoT)
18. Oktober 2019
!!
!
!
!
!
!
Balluff Inc | Business Development Manager, Will Healy III @WillAutomate

BUT WHY SHOULD I PAY
ATTENTION TO THIS?

Why IIoT &
Industry 4.0?
Balluff Inc | Business Development Manager, Will Healy III

MODERNIZATION IS OVERDUE
Industry 4.0
Projecting
a 48%
reduction in
unplanned
downtime!
48%

Successful IoT
initiatives drive
smart-data windfalls
& enable digitization
CISCO:
BUSINESS INSIGHTS

 IIoT Annual Budgets:
 Average: $328,160
 18% Responses: >$500,000
 Sensor budgets +14.7%
 Network budgets +18.8%
 60% expect Increase in Productivity
 60% - Benefits from connections
between people, data and machines.
 45% - Staffing is a Challenge
2017 IIoT for Engineers Report
CONTROL ENGINEERING:
FIVE KEY FINDINGS ON IIoT
71%
72%
73%
74%
75%
76%
77%
78%
Sensing Connectivity Data Analytics
Top IIoT Technologies being
pursued:

YOUR COMPETITORS
ARE INVESTING IN
SMART MANUFACTURING

1. Improve productivity
2. Optimize utilization
3. Enhance customer experience
4. Reduce costs (1st 2016)
5. Enhance safety
6. Improve sustainability
7. Create new business models /
revenue streams
WHY ARE MANUFACTURERS INVESTING?
Industry 4.0
Smart Industry
2019 State of the
Initiative Report

Must Read:
Metalforming Mag – Nov 2016
DO YOU PLACE A DOLLAR
VALUE ON DOWNTIME?
Brad Kuvin
ODM Tool & Mfg., Inc. worked on OEE
Wintriss’ ShopFloorConnect technology.
Shows the numbers & calculations!
“With all of the growth we’ve experienced without
adding a lot of new equipment or people, we had
to become smarter at managing the assets we
already had. The key to accomplishing that was
putting a dollar value on downtime, and then
committing to a process to ensure that we
minimize downtime throughout the plant. Once
we established the value of downtime and used
our new controls and Industry 4.0 connectivity
solution, we quickly (in less than three months)
realized a full payback on our control-technology
investment.”
Jay Michaelsen, ODM VP of Operations
COST JUSTIFICATION IS EASIER THAN YOU THINK.
IIoT & Industry 4.0
18. Oktober 2019Balluff Inc | Strategic Marketing Manager, Will Healy III @WillAutomate

BUT HOW DOES THAT APPLY
TO WHAT I'M DOING?
18. Oktober 2019 15Balluff GmbH | Abteilung, Autor

Industry 4.0
Motivations for
Manufacturers

 Limited support staff
 24/7 production
 Machine level visibility
 Operation level visibility
 Sensor level visibility
 Mobile device visibility
MAINTENANCE & ENGINEERING VISIBILITY
Case Studies - Industry
18. Oktober 2019Balluff Inc | Strategic Marketing Manager, Will Healy III

96 Powertrain Variations
VIRTUALLY INFINITE FLEXIBILITY
40,000 Driver Seat Variations 1.52quintillion Shoe Variations

Diagnostics AT Devices
EFFICIENCY:
SHORTER UNPLANNED DOWNTIME
Shop Floor Maintenance
18. Oktober 2019
Ethernet
ControllerInfo
Display Green = Signal
Red = Short
Power

Preventative Maintenance
 Timing based on age or use.
 82% random failure pattern.
Predictive Maintenance
 Employs condition monitoring and
analytics to predict failure.
 Benefits:
 Improved Uptime
 Asset Longevity
 Maintenance Cost Control
 Safety
IIoT Enables Predictive Maintenance of Assets
EFFICIENCY:
REDUCED UNPLANNED DOWNTIME
18. Oktober 2019 20Balluff Inc | Business Development Manager, Will Healy III @WillAutomate

Balluff Warehouse - Predictive Maintenance
EFFICIENCY:
PREDICTIVE ANALYTICS – SMART SENSORS
18. Oktober 2019 21Balluff Inc | Business Development Manager, Will Healy III @WillAutomate

 “The robot calls in and says, ‘I’ve got an
issue in one of my motors in one of my
joints,’ ” says Scott Whybrew, who directs
global manufacturing engineering at GM. “Or
it may say it’s about to get sick in a few
seconds.”
 The system ingests data flowing to and from
robots as well as external devices, … It
sends that information to a cloud network set
up by Cisco. There, Fanuc runs algorithms
tailored to the factory robots. The result?
Insights that plant managers … can tap to
avoid mishaps.
Fortune Magazine - GM Is Using the Cloud to Connect Its Factory Robots
EFFICIENCY:
18. Oktober 2019Balluff Inc | Business Development Manager, Will Healy III

• Analyzes the data and recommends
predictive maintenance measures.
• Reduce unplanned downtime by up to
70%,
• Extend motor lifetime by up to 30%
• Improve the energy efficiency by up to
10%
ABB's IIoT Enabled Low Voltage Motors
EFFICIENCY:
IIoT & Industry 4.0
18. Oktober 2019 23Balluff Inc | Strategic Marketing Manager, Will Healy III @WillAutomate

THIS IS CHANGE…
AND CHANGE IMPACTS CULTURE.

Cultural
Impacts of
Industry 4.0

IT/OT CONVERGENCE
Cultural Impacts of Industry 4.0
42%
38%
20%
Security Responsibility
NTT Security Survey
Engineering Director CTO Other
 Conflicting
objectives and
responsibilities
 What do we do
about IT security
but need
connectivity?
 How do we work
together better?

WHITE COLLAR AUTOMATION
& LOW-SKILL AUTOMATION
US News & World Report – Jan 2019
 25% of US Jobs are at Risk of Automation
 Office administration
 Production & Transportation
 Food preparation & Physical labor
 Information collection
 Routine processing activity
 Invest in retraining workers
 Expand certifications
 Financially support skills development

EVOLVING TO A
DATA-BASED CULTURE
How do we gain this benefit?
 How does it impact production,
employees and our ability to hire?
 How can we make better decisions to
improve efficiency?
 What data do we need to see to make
good decisions?
 How can we predict and eliminate
failures?

CULTURE IS IMPACTED
BY NEW TECHNOLOGY.

New
Technology
Awareness

 Collaborative
 Better maintenance
 Better visualization
 Safety with a mobile
device is not a new
topic.
More Mobile Devices,
Not Less.
NEW TECHNOLOGY AWARENESS
Safety & IIoT
18. Oktober 2019 31Balluff Inc | Business Development Manager, Will Healy III

 Increased Human & Robot Efficiency
 Human idle reduced 85%!
 Applicable to Small to Midsized Mfgr
 Increased ROI (<1yr)
 Greater Flexibility in the Human
Environment
 Safely Handle Complex & Dangerous
Tasks (prevent unwanted motion)
 Simpler, more effective, less expensive
safety
Kundinger.com
Collaborative Robots
Safety & IIoT

 Universal, Smart, Easy, IIoT-Ready
 Visibility down to the lowest automation device
 200+ vendors of: valves, sensors, grippers, lights & more!
Smart Sensors & Automation Devices with IO-Link
Safety & IIoT
Humans make
mistakes!
IO-Link is NOT a Network
For Computer
Technology
=
For Automation
Technology

 Collaborative
 Remote maintenance
 Better visualization
 Distracted walking?
 Distracted working?
Virtual Reality & Augumented Reality (VR & AR)
Safety & IIoT

 Assisted lifting,
positioning, moving
 Machine & Man are
one collaborative
unit.
 Machine/Man
Safety is going to
get more
complicated.
 Operators &
Bystander Safety.
Exoskeletons
Safety & IIoT

18. Oktober 2019 36
New Technology Awareness
Smart Industry
2019 State of the
Initiative Report
54%
45%
32%
26% 29% 25% 21%
30%
38%
33%
36% 25% 27%
24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
In Production In Test
Tech adoption in production & in test

Recommendations for the Manufacturer:
 Be willing to test and try new tech!
 Have a strategy for addressing how new
technologies are brought into the plant.
− Awareness
− Safety/Hazard Identification
− Training
− Change Management
 Be aware of existing policies and corporate
initiatives and be willing to adapt/change to the
new technology.
Safety & IIoT

WHO IS GOING TO
SUPPORT ALL OF THIS
NEW TECHNOLOGY?

Jumping the
Skills Gap
Balluff Inc | Business Development Manager, Will Healy IIII

 Not enough job candidates
 With the right skills
 With the right work ethic
 To fill all our openings
 Directly affecting production
 Reducing economic output (by $2.5trillion over 10yrs)
WHAT IS THE SKILLS GAP?

HOW BIG OF A PROBLEM IS THIS?
Industry 4.0
2018 Deloitte & NAM
Skills gap Report

WHAT SKILLS ARE WE MISSING?
Missing Roles & Skills
• Die Makers
• Welders
• Electricians
• Mechanics
• Electrical Engineers
• Mechanical Engineers
• Mechatronics Techs
• Materials Engineers
• Manufacturing Engr
• Computer Science
• Software Engineers
• Automation Expertise
• Robotics Expertise

 Gig workers
 Service providers
 Talent networks
 Part-time
 Contingent
 Can't fill low-
skilled jobs.
 Supplementing
workforce for
repetitive tasks.
 Focus workers on
jobs that require
higher skill.
 Implemented
Technologies:
robots, cobots, AI,
machine learning
Open Talent Ecosystem
WHAT CAN WE DO?
Automation Technologies
40%
0%
10%
20%
30%
40%
50%
alt work
Rethink Talent
More than 40% of
workers are now
employed in
"alternative work
arrangements," &
is steadily rising.
64%
0%
10%
20%
30%
40%
50%
60%
70%
automation helped
Filling Open Jobs
64% of executives
found that
automation helped
overcome
challenges in
filling open jobs.

 In-house training & re-skilling
 Interns / COOPs / Trainees
 Apprenticeships
 Capture retiree tribal knowledge
Build Your Own Talent!
WHAT CAN WE DO?

BUT BUILDING OUR OWN
TALENT MEANS TALKING
TO… YOUNG PEOPLE…

Gen Z in the
Workplace

WHAT IS GEN Z?
Gen Z in the Workplace
Gen ZMillennials
1997
Gen Z
48% identify as a
racial or ethnic minority
Baby Boomer
18% identify as a
racial or ethnic minority
Always had
high speed
internet &
streaming video
2008
Came of age during
significant turmoil.
Great Recession,
opioid epidemic &
school shootings.

Blended expectations of the workday:
go for a run or take a yoga class in
the middle of the day.
Work remotely when possible.
Want to be measured on productivity
not time in a chair or visibility.
What millennials pushed for, Gen Z expects.
GEN Z HAS A NEW
DEFINITION OF WORK

 Social media is part of life, share
information in multiple platforms.
 "Many Gen Zs consider e-mail to be
'too much work' to check."
 Mobile phone is an extension of who
they are, they are always connected.
 Youtube is their go-to search engine.
GEN Z NEEDS TECHNOLOGY AND
ONLY ENGAGES WITH HIGH TECH
Image Credit:
jasondorsey.com

GEN Z HAS A STRONG DESIRE FOR
DIVERSITY IN THE WORKPLACE
Gen Z is Global
Consider
themselves to be
members of a
global community
& expect the same
from employers.
77%
0%
20%
40%
60%
80%
100%
Decision
Hiring a Gen Z
77% said a
company's level of
diversity affects
their decision to
work there.
69%
0%
20%
40%
60%
80%
100%
Decision
Gen Z Retention
69% said a
company's level of
diversity affects
their decision to
stay beyond 5
years.
Diversity is Normal
Age
Race
Gender
Sexual Orientation
Education
Skill

 Supportive leadership & positive relationships
 Self-directed micro-learning
 Immediate & transparent feedback
 Constant communication and discussion of steps
 Opportunities to own a project from start to finish
 Members of the gig-economy
GEN Z CHANGES HOW WE
MANAGE PEOPLE
Image Credit:
MRO Magazine

GEN Z WANTS TO WORK
FOR MILLENNIALS…
SO THAT MEANS WE NEED…

Millennial
Leaders

WHAT IS A MILLENNIAL?
Gen ZMillennials
1997
Gen X
1981
Came of age in
the dawn of the
Information Age
from computer to
internet access.
Delayed rites of
passage: living with
parents, helicopter
parents, high housing
and high education
costs
Pragmatic Idealists
with a deep and
positive desire to
make the world a
better place.

1. Challenge millennials so they can improve their
technical skills and experience
2. Prioritize communication and transparency
3. Offer regular feedback
4. Give them leeway, but make them justify it
5. Match them with a mentor
FORBES: 5 EFFECTIVE WAYS TO
PREPARE MILLENNIALS FOR
LEADERSHIP ROLES

 Set clear goals
 Manage to the goals
 Delegate responsibilities
 Allow for questions
 Provide leadership training
DEVELOPING YOUR
MILLENNIAL LEADERS
Image Credit:
Intel / Litmus Automation

 Acknowledge their accomplishments
 Employee recognition reflects well on
your company
 Boost company morale in real-time
 Corporate Facebook or LinkedIn page
 Internal Yammer groups
ENGAGE MILLENIALS
ON SOCIAL MEDIA

NEW MOTIVATIONS
NEW TECHNOLOGY
+ NEW GENERATIONS
NEW CULTURE

Building a
Revolution
Culture

 Leaders as coaches with strong soft skills
 Clear corporate vision & mission
 Focus on value created not time spent
 Empower employees to make decisions
 Deconstruct bureaucracy / lean thinking
 Move quickly to remove negative people
"Paradoxically, managers become much
more effective if they give their employees
more freedom." ~Frederic Laloux
LEADERSHIP NOT
MANAGEMENT

 Internal social networks (Yammer)
 Micro-learning self-guided education
 More collaboration across:
 Facilities / Locations
 Departments / Skillsets
 Leaders doing work at all levels with
all levels can provide HUGE insights!
SOCIAL LEARNING

 Networked self-management
 Physical location agnostic teams
 Transparency into the organization
 Cross hierarchy collaboration
 Employee entrepreneurership
 Autonomous working conditions
BUILDING A CYBER-PHYSICAL
BUSINESS ENVIRONMENT

EFFECTIVE
CHANGE MANAGEMENT
Have a Plan
Team.
Test.
CommunicaTe.
Train.
IT.
51%
0%
10%
20%
30%
40%
50%
60%
Stifled Projects
Overcome the Old
Opsview study
found innovation
efforts stifled by
an organizational
reluctance to stop
old processes.
Fear of Change
Be open to
people's fear of
change.
Communicate.
Present the new
opportunities.
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4
Evidence Based
Articulate a
compelling story
to reset
expectations and
improve efficiency

"Industry 4.0 is an opportunity to shift
low-value tasks to systems and
machines… [and] democratize decision
making based on the availability of
timely analysis."
~Jonathan Gross in IIoT for Engineers
"Industry 4.0 should be an injector of
human capital… transforming work to
make it less repetitive, more interesting,
diversified and productive."
~WEC Forum & McKinsey
AUTOMATION IS NOT
A JOB DESTROYER
Traceability

FOUR IMPERATIVES FOR A
FUTURE-READY WORKFORCE
Ceridian - Manufacturing
the Future:
Building a next-gen
workforce for Industry 4.0

 Schools & Clubs
 Apprenticeships
 COOPs & Interns
 Tours & Events
COMMUNITY ENGAGEMENT

GAMIFICATION OF
MANUFACTURING
John Hitch – Industry Week – June 2018
 Young workforce was raised and
educated by games and rewards
 Immediate and visual feedback on
their performance level.
 Points / Badges / Leaderboards
 Using data analytics to drive
productivity & drive growth

THAT’S ALL NICE…
BUT HOW?

Cultural
Revolution
in the
Industrial
Revolution –
What now?

BULLDOZE
THE FACTORY!

Define
Vision
Set
Annual
Objective
Identify
Tactics &
Projects
Link
KPIs
Assign
Responsibility
INDUSTRY 4.0 IMPLEMENTATION

 What are we trying to accomplish?
 Where are we today?
 Are we prepared to integrate our
systems?
 What data do we need?
 What do we wish we knew?
 Is IT a part of the discussions? Being
informed is not being involved.
 What technologies do we have?
 What technologies do we need?
 What new skills or training do we need
to be successful?
QUESTIONS TO ASK

 Merge your IT/OT teams
 Industrial Technologist
 Integrate your systems
 Reduce siloed data stores
 Modernize your equipment
 Old software & hardware
 Invest in virtualization
 Strong availability strategy
 Prioritize serviceability
 Easy to manage remotely
5 THINGS TO THINK ABOUT FOR
INDUSTRIAL IOT READINESS
Ryan Francis – Network World

As manufacturing is going through an industrial revolution, it makes
sense that the cultures of our organizations need to follow suit:
more flexibility, more efficiency, more visibility
This applies to both the production & the culture to drive success.
INDUSTRY 4.0 CULTURAL
REVOLUTION

BALLUFF - INNOVATING AUTOMATION
60+ Countries. Sensors & Accessories. Industrial RFID & Networking. Training & Services.
Industry 4.0 & IIoT
18.10.2019 75Balluff Inc | Business Development Manager, Will Healy III @WillAutomate

BALLUFF TECHNOLOGIES
ENABLE & SCALE
INDUSTRY 4.0 & IIoT
IMPLEMENTATIONS
BY GENERATING DATA AT
THE LEVELS OF
AUTOMATION CLOSEST
TO PRODUCTION.
Industry 4.0 & IIoT
18. Oktober 2019

 Strong North American Support
 3 Stocking Locations
 Regional Sales Offices
 Local Area Sales Managers
 Regional Technical Application Support
 Local Automation Distribution Partners
Industry 4.0 & IIoT
18.10.2019 77Balluff Inc | Business Development Manager, Will Healy III @WillAutomate
Querétaro
Mississauga
Troy, MI
Florence, KY
Saltillo

Enabling a
Cultural
Revolution in
Industry4 0
Will Healy III
email: will.healy@balluff.com

THANK YOU FOR YOUR
ATTENTION!
Phone:
e-mail:
If there are any questions, please
feel free to contact me.
© All rights reserved: Balluff GmbH, Neuhausen. Transmission of this text in original or copy form as well as sharing with third parties is prohibited.
Will Healy III
Business Development Manager
1-859-496-6627
will.healy@balluff.com
18. Oktober 2019
LinkedIn: https://www.linkedin.com/in/willhealyiii

Empowering a Cultural Revolution in the Industrial Revolution

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