Demystifying Industry 4.0: Build Real a Roadmap to IIoT
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Learn the state of Industry 4.0 and how to build a real IIoT strategy that unlocks data to address areas of challenges such as labor, culture, continuous improvement, and driving more revenue.
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Demystifying Industry 4.0: Build Real a Roadmap to IIoT
- 1. Beyond Compliance Webinar & Podcast Series for Process Manufacturers Demystifying Industry 4.0: Build a Real Roadmap to IIoT Josh Payne VP of Business Development
- 2. // Meet Your Host ✔Improve Yield ✔Maximize Productivity ✔Ensure Compliance Plant Management Platform hello!
- 3. Casual but Professional Format ✔Ask questions! (Q&A at end) ✔Only panelists are displayed ✔Recording link will be shared ✔Audio issues: use call-in number Before We Get Started BEYOND COMPLIANCE Helpful tips
- 4. BEYOND COMPLIANCE Demystifying Industry 4.0: Meet the Speaker ● 25 years of enterprise business development and operations ● 16 years of enterprise IT sales and delivery across verticals ● First intern job was Nabisco Christie as a Manufacturers Rep ● Passion is rugby ● Loves coaching and helping others Josh Payne VP Business Development
- 5. Poll Question Who thinks the world is going to slow down and stop changing on us?
- 6. BEYOND COMPLIANCE Objectives: Pursuing Digitization of Workloads ● Step back: Why are we digitizing? ● Review the problem and the opportunity ● Encourage start / continuation of digital journey Session Overview BEYOND COMPLIANCE
- 7. BEYOND COMPLIANCE Digital Transformation: Reality Check Reality of Manufacturing Threats Technology Ease of Use It’s Hard and Won’t Get Easier. Cybersecurity Labor Shortage Globalization Regulation & Compliance Manufacturing Complexity Capital Cost Consumer Demands LEGACY <30% of projects realize the expected and necessary outcomes of digital transformation initiatives.
- 8. BEYOND COMPLIANCE Convergence: IT and Automation source: IOT Analytics ERP = Enterprise Resource Planning ; MES = Manufacturing Execution System ; SCADA = Supervisory Control and Data Acquisition PLC = Programmable Logic Controller ; I/O = Input/Output signals BEYOND COMPLIANCE Industrial Automation Information Technology
- 9. BEYOND COMPLIANCE Convergence: Building the Smart Factory
- 10. BEYOND COMPLIANCE Even the best companies take time
- 11. BEYOND COMPLIANCE BIG Dollars: Setting the Coarse source: Accenture and Frontier Economics IIoT GDP impact (current conditions) IIoT GDP impact with additional measures
- 12. BEYOND COMPLIANCE Time to Tune In source: McKinsey Global Institute BEYOND COMPLIANCE WIIFM WHAT’S IN IT FOR ME RADIO
- 13. BEYOND COMPLIANCE Where Companies Are Investing
- 14. BEYOND COMPLIANCE Bridging Today With Tomorrow BEYOND COMPLIANCE
- 15. How are we feeling generally at work these days? Poll Question
- 16. BEYOND COMPLIANCE Dramatic pause… BEYOND COMPLIANCE
- 17. BEYOND COMPLIANCE Section Two: There is a path forward 1. Remain Calm 2. Little Steps and Deep Breaths 3. Monitor and Track Success 4. Iterate 5. Repeat GET HELP!
- 18. BEYOND COMPLIANCE The Path Forward: The Journey BEYOND COMPLIANCE
- 19. BEYOND COMPLIANCE Leveraging Data: How it’s changing source: Cleveland Clinic
- 20. BEYOND COMPLIANCE The Path Forward: Building a Roadmap Look for Wins! Aggregate Visualize Orchestrate Automate
- 21. BEYOND COMPLIANCE Visibility Transparency into operations and production Integration Cross-platform analysis through integrated visualization Data Historization for product quality optimization Optimization Business planning and decision making Reliability through maintenance monitoring and downtime reduction Safety & Compliance: Part of Larger Operations Discussion
- 22. BEYOND COMPLIANCE Getting Creative: Visualize the Wins
- 23. BEYOND COMPLIANCE Getting Creative: Visualize the Wins
- 24. BEYOND COMPLIANCE Who Has the Answers: The People
- 25. BEYOND COMPLIANCE Development: Outcome Based vs. Action Based
- 26. BEYOND COMPLIANCE The Heart of Manufacturing: Repeatable Processes
- 27. BEYOND COMPLIANCE Progress: Seeing Digitization Differently ● Design ● Build ● Execute
- 28. BEYOND COMPLIANCE Origin Story: Step Behind The Scenes BEYOND COMPLIANCE
- 29. BEYOND COMPLIANCE Partnership: Mode40 & SafetyChain
- 30. BEYOND COMPLIANCE BEYOND COMPLIANCE Connected: End-to-End
- 31. Questions? BEYOND COMPLIANCE Josh Payne VP Business Development Mode40
- 32. More Resources at www.safetychain.com White Papers & Surveys Webinars & Videos Product & Partner Info Solution Consultation BEYOND COMPLIANCE Learning More: SafetyChain Content Library www.safetychain.com/content-downloads Mode40 Helpline: 204.771.3585 mode40.com/contact
Editor's Notes
- Speaker bio/intro: Josh says: “We have a limited amount of time to leave an impact on this world and I consider often how best to do that. I am driven to better myself and those around me. I want to be part of positive change for the planet and those living on it, which comes through one's career, social surroundings, and inner circle. I strive to leave things better after I have been there.” A proven, resolute Sales Leader with over 25 years of sales experience and training including +16 years of IT enterprise account sales focusing on and delivering digital outcomes for customers. He’s worked in verticals ranging from Biotech, Ag, Healthcare, Education, Government, Finance, Law, and of course Manufacturing. His work has consisted of Digital Transformation or rather ‘evolution’ engagements ranging from modernizations, consolidations, migrations, physical moves, digital hybrids, consumptive “XaaS” models, and the latest rapid work from anywhere during the pandemic. He brings strong knowledge across IT infrastructure, software, modern ‘edge’ networking, cloud platforms, IT sales distribution and resale channels. He’s happiest winning as part of a team effort and bringing people along for the ride!
- Alright starting things by warming us all up, let’s get our participation fingers ready. I’m testing the mood here and we’ll see what comes back. Some optimists, some cynics and some ostriches - as expected. Question: Who thinks the world is going to slow down and stop changing on us? It will if we ask nicely It cares nothing for our whims Has it really changed though?
- Thanks (Host) My goal is to provide some practical consideration. I’ll try and make this entertaining and fun if nothing else! You won’t find magic bullets here, in fact in some cases the answers are already in front of each of you. It’s about energizing the effort and reinvigorating the WHY we’re doing some of this work because on the face of it - it just seems like work. (maybe it’s news to you how your work fits into larger strategies)
- IT’S HARD AND WON’T GET EASIER. PACE OF CHANGE, ITERATIONS AND INNOVATION ARE ALSO ACCELERATING THIS WILL ALL BE FAMILIAR AS YOU LIVE IT EVERY DAY. BUT WE’RE NAMING SOME OF THE DEMONS OR GREMLINS, WHATEVER YOU WANT TO PERSONIFY THEM AS, THAT WE’RE FIGHTING AND OF COURSE STATING THE OBVIOUS. THE CHALLENGE SEEMS IMPOSSIBLE.
- Some of you may recall the advent of some of the earlier technology! The point is - Traditionally, the digital transformation of a business has been focused on the front office – normally the ERP system (marketing/sales; customer relationship management, or CRM; financial management; product/manufacturing engineering; production/resources planning; etc.). The opportunity to acquire meaningful production-related data from the manufacturing process has not been captured the same way; therefore, the opportunity to improve operational performance has not been exhausted. With components of the automation architecture becoming more affordable and higher functioning (components can do more now), the implementation of the IIoT into operations is now becoming more realistic and fundamental to the digital transformation of a business. Digital transformation is primarily about understanding the existing information and data in your business and then adjusting your business processes and systems. Following how your data flows through your business (how it is generated, captured, stored, shared and used, by which people, at which times and for what purpose) can ensure that you maximize the use of digital technologies (means somebody doesn’t question the money you spent!). It then also helps you challenge existing ways of doing things so you can restructure accordingly.
- Perhaps you’re heard reference or seen images like this before representing the scenario; because of the acceleration of innovation, there is also the convergence of already complicated fields - with technology at the crux. Smart manufacturing is at the core of modern production and the manufacturing industry as it moves towards digitalization. To paraphrase Satya Nadella of MS recently at their partner conference who was very profound in my opinion – what worked over the last 10 years will not work for the next 10 yrs. It is no longer about doing more with less, that is assumed, but it is also about finding sustainability within processes and extending productivity with fewer resources. Existing courses of action are not sustainable or scalable in a global context. Our competitiveness depends on it, our capital requires it, our human resources requires, the earth requires it. The successful implementation of smart manufacturing needs the support of IT, data technology, and operational technology; where edge computing, machine learning and even blockchain can play significant roles. But what does a plant floor operator know about any of this! We just need to know about the big moving pieces and hopefully see where we fit in this - no cog is too small!
- EVERYTHING WORTHWHILE TAKES EFFORT AND TIME - KNOWING HOW MANY FAIL BY TRYING TO GO TOO BIG, TOO FAST IS KEY MANUFACTURING HAS SIGNIFICANT INDUSTRY TRIBAL KNOWLEDGE ABOUT CHANGE AND IMPROVEMENT - but JUST NEVER APPLIED AT THE PACE REQUIRED THESE DAYS DUE TO INNOVATION, TECHNOLOGICAL CHANGE AND GLOBAL PRESSURES So how do we speed up? and why are executives hammering on about this?!
- WHY THE RUSH? Why the Push? MASSIVE POTENTIAL EVEN WITH DATED FIGURES - THESE ARE In TRILLIONS Global projections for the impact of the IoT over the next decade forecasted the potential for significant output growth across multiple sectors of the economy, with estimates from the McKinsey Global Institute projecting as much as an $11.1 trillion dollars total annual global impact (Dobbs, Manyika & Woetzel, 2015). Accenture Strategy estimated that the cumulative impact of IoT on total global gross domestic product (and additional measures) could range from $10.6 trillion to $14.2 trillion by 2030, depending upon investments made.
- WE NEED TO TUNE IN WHAT’S IN IT FOR ME - RADIO Stale data from McKinsey estimated that the potential economic impact of IoT on factories will range from $1.7 trillion to $3.7 trillion annually by 2025 (Dobbs, Manyika & Woetzel, 2015). This potential economic impact can be broken down into several application segments including operations optimization, predictive maintenance, inventory optimization, and health and safety. So the impact and opportunity for all of us is there.
- SO WHERE ARE COMPANIES INVESTING Whether you’re behind or advanced doesn’t really matter end of day – but you NEED to start and keep going.
- Sometimes it is tough to know where we’re going because we get so focused on the tasks at hand and the speed which items get thrown at us now. It does come down to trust but it’s not blind trust. We all recognize this bridge and we know where it goes, even if we can’t see the destination clearly - we know where we’re going much like Smart Manufacturing; it’s about how do we get there.
- How are we feeling generally at work these days? I’m The Rock and handle anything that comes my way I’m rocking it but could use guidance and assistance at times I’m a rock, getting bounced around on the Titanic
- The stage is set, and guess who you are in this picture!
- Keep calm , carry on and phone a friend!
- This looks really complex doesn’t it. There is contextual relation that can be applied to the systems we work with and our comprehension or cognitive functions (how are brain operates). Basically we want to drive up this pyramid - and it functions best from the shop floor up.
- Looking at other verticals, we can see that how data is leveraged is completely changing - but with significant opportunity for better, faster decision making, lower down the organization chart and closer to the shop floor - in the hands of operators and managers. Other verticals have adopted new paradigms of data utilization – this IS being adopted into Manufacturing. The IoT is about generating, aggregating, sharing and analyzing data to generate keener insight and better behavior. Most traditional manufacturers have been involved with digital transformation of their business for years (or decades, depending on the age of the business), while newer manufacturers are implementing digital manufacturing on an ongoing basis as a matter of best practices. Both instances here are demonstrations of the “paperless office,” or the computerized processes and information networks, which we now call IT - but one is better suited for manufacturing and the speed required to operate today. Business improvement methods all require the data used and generated by the business to be converted and handled in digital form. When interpersonal communications, reporting, production drawings, information storage and business analyses are converted to, and conducted in, a digital format it is referred to as digitization and we say it’s part of the digital transformation effort.
- Now this is sales and marketing gross oversimplification – but we don’t WANT to over complicate an already significant challenge. We want to make this seem easy and feel easy for everyone. There are known, progressive steps we take with our data and technology that’s on the floor. Everyone – operators, managers, executives – intrinsically know this is large and complicated so don’t beat a dead horse or you’ll never start. Manufacturing is actually VERY good at this! This is where you teach IT and the rest of the organization. KAIZEN – CI – apply it!
- Compliance, QA, Safety etc can have a spot at the table in the conversation by taking on improvements and demonstrating back to the business that they’re not just cost centers, but actually profit enablers. But they have to earn it.
- Sometimes a little bit of creativity goes along way. Visualize digestible wins with digitization - pardon the pun. This is an example from the real world used to spark creative juices within a site.
- Understand that even something as mundane as form creation has tremendous VALUE when applied back into context of the large macro trends we talked about earlier! When a little bit of technology is applied - it also becomes really COOL!
- Your number one asset already has the answers. When Running Kaizen/ Brainstorming/ SOP Change overs – Compliance and Quality play a role in these! If not - start, if you don’t know how, ask for help! •Take the time to learn about your people: - interesting facts heard in one of our recent meetings •Bill’s Great Grandma was found treading water in the Atlantic Ocean, thinking they were rescuing her at 82 yrs old, when she was out for a swim. •Blair played for the LA Rams and the Atlanta Falcons. •Judy’s Son likes riding his Arctic Cat Quad and is gaining responsibility from helping raise the Cattle. •Indian Creek Steakhouse was founded in 2011. Everyone is actually wanting to be a part of the solution - so let them! You’ll find operators what to be better, if they knew where to apply. Managers want to help their operators, if they knew how - each unlocks the other through the insights your data provides, only available through digitization.
- You can almost start anywhere - if you haven’t already begun digitization of workflows and processes on the shop floor - so there’s no concern of making mistakes. What IT teaches Manufacturing is to FAIL fast - which I appreciate is taboo in the production world. (no room for failure) Define objectives, measure and see what you come up with. Examples of outcomes: We target productivity uplift from employee and technology engagements to achieve between 15-18% in first 120 days. *(results vary) We’ve seen improved employee retention post technology implementation ~20% in 90 days We’ve seen Increase in communication and workplace culture through a technology implementation typically takes effect within 25 days A CPG manufacturer – seeking production Uplift and Facing High Turnover, implemented data visualization of operations, that led to faster front line decision making which instantly saw 26% uplift in throughput, 8% reduction in Quality Loss and retention increase of 11% The results will come.
- This becomes repeatable process even though it involves IT, which at heart is what Manufacturing is all about. Do not over complicate – keep focused on an achievable goal – one form, one proces, one line, one shift, one product, one facility etc. Project 1: Capture all the Quality data that people are doing manually, into digital Business Outcome: Adjusted product mix to capture new markets increasing revenue $50M per year Project 2: Help identify plant capacity to improve throughput Business Outcome after Data Analysis and technology implementation: 20% improvement in plant throughput eliminating $5M in capex Project 3: Visibility to plants across the country to better manage tools Business Outcome after integration of plant systems to ERP, with BI dashboards and Data Analysis - Improved OTIF (On Time in Full) by 50% Project 4: Legacy capital debt affecting performance - only manual/ analog management possible (this is VERY typical) Business Outcome afterwards: Throughput increase by 30% by elimination of waste areas
- Recall the ‘complex’ pyramid from earlier. As an organization, you begin to see digitization differently as you gain momentum. You begin to advance up the pyramid into more complex and higher value system propositions and outcomes as you digitize from the floor up.
- The story of where our founders originated from. This is where we cut our teeth. Forged in Mordor as they joke, from over 20 years involvement with and leading a top 5 global production experience at scale, our founders analyzed and struggled with the failures of traditional planning and manufacturing systems with the most difficult ‘product’ to produce – livestock. They were forced to manage through complete vertical integration of their supply chain. They struggled with not only the very real day to day challenges in the world of input optimization and production manufacturing but delivery, and obviously compliance finding out about and dealing with gaps in their system tooling that affected the most important aspects of their business; the production of animals. After successfully dealing with these challenges, they decided to repeat the challenge and help others in their journey! Some call that masochistic in my opinion.
- As discussed, alot of the key elements already exist - it’s about unlocking the doors they can open. Manufacturing understands continuous improvement. It understands operational data and the need for compliance. But the convergent forces we talked about and the accelerations of today’s age (economic, political, demographic, technologic, environmental) means that help is required.
- I’ll plug our sponsor now - but I’ll say I believe this vision really is the goal and why we’re all here. We’ll start to dive into more examples and get specific in later sessions, the intention today was to provide a quick back to basics, understand our purpose (our WHY) and to provide context to our North star journey by reinvigorating the mission!