Robert Murphy Driving Value from Smart Manufacturing

Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC
The Connected Enterprise
Make Smart Manufacturing Work for You
Industry of Things World Forum 2018
Bob Murphy
Sr. Vice President, Operations
March, 2018

at A GLANCE
OUR STRATEGY IS TO BRING THE CONNECTED ENTERPRISE TO LIFE
We integrate control and information across the enterprise to help industrial
companies and their people be more productive.
$6.3B
FISCAL 2017 SALES
22,000
EMPLOYEES
80+
COUNTRIES
ABOVE-MARKET GROWTH | PRODUCTIVITY | INTELLECTUAL CAPITAL VALUE CREATION
2Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC

THE CONNECTED ENTERPRISE
Delivering great business outcomes
Faster Time
to Market
Lower Total Cost
of Ownership
Improved Asset
Utilization
Enterprise Risk
Management

20 YEARS
AVG PRODUCT LIFE
PRODUCT TYPES
• Stock + Configure to Order
• Engineered to Order
UP TO
200 SKUs
PER ORDER
20
PLANTS
387,000
SKUS
Who We Are

Rockwell Automation Products
Connection Devices
Components Control & Visualization Platforms Solutions / ETO
Push Button &
Signaling Devices
Sensors &
Switches
Small Controllers
Smart Motor
Controllers
Logix Family
Performance
& Visualization
Variable
Frequency Drives
Custom OEM Panels
LV Control
Centers
MV Control
Centers
PRODUCT COMPLEXITY & LEAD TIME

Transformation
DIGITAL

THE “HIDDEN” FACTORY
Sources: IndustryWeek, MESA, ARC
64%
Rely more on
experience when
addressing key
business issues
57%
Using
spreadsheets
to analyze
sensor data
25%
Using data
for proactive
purposes
THE PROBLEM ISN’T A LACK OF DATA
IT’S A LACK OF CONNECTIVITY

ACCELERATING TECHNOLOGY
CHANGES MANUFACTURING

Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC
The Rockwell Automation Journey

We make better decisions with better information,
increasing our annual labor productivity by 2x

WHERE WE ARE NOW
Best practices more accurately
identified and proliferated using
consolidated analytics
Using real-time data, more
profitable decisions are
easier to make
We have clearer visibility into
every plant’s operation

Remote Dashboarding

Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved. 13
ANALYTICS VALUE
WHAT HAPPENED? WHY DID IT HAPPEN? WHAT IS ABOUT TO HAPPEN? WHAT CAN I DO TO AVOID IT?
DESCRIPTIVE
Historical Data
DIAGNOSTICS
Historical
PREDICTIVE
Future
PRESCRIPTIVE
Future Action
Increasing Intelligence & Improving Performance

PROCESS CAPABILITY
Meaningful Data Driving Meaningful Results

NOZZLE MONITOR INTERACTIVTY
Surface Mount Technology Nozzle Defects That Contributes to 42% of All Rejects

DATA INGRESS APP MARKETPLACE
STREAMING DATA
ENTERPRISE DATA ENTERPRISE RISK
ASSET MANAGEMENT
& RELIABILITY
OPERATIONAL
PRODUCTIVITY
CONNECTEDASSETS
CONNECTEDSERVICES
DATA
MASHING
ORCHESTRATED
DATA
DATA
STAGING
OPEN, SECURE IIoT CONNECTIVTYOPEN, SECURE

AUTO DISCOVERY ZERO CONFIG DASHBOARDS ORCHESTRATION & WORKFLOW PEOPLE IN THE IIOT
INFORMATION SOLUTIONS CAPABILITIES – Cloud | On-Premise | Edge
SCALABLE EXECUTION SYSTEMS SCALABLE ANALYTICS MOBILITY & COLLABORATION CONNECTED SERVICES
The Connected Enterprise
Customer Outcomes Faster Time
to Market
Improved Asset
Utilization
Lower Total Cost
of Ownership
Enterprise
Risk Management
ROCKWELL AUTOMATION IIoT INFRASTRUCTURE – Integrated Architecture™
Enabling the Industrial Internet of Things (IIoT)
MOBILE / DISPLAYSCONTROLLERS MACHINES & EQUIPMENT REMOTE ASSETSINTELLIGENT MOTOR CONTROLSENSORS & ACTUATORS
SMART CONNECTED ASSETS – Ethernet/IP Enabled Network

VALUE
STREAMS

46-75%
REDUCTION
OF BATCH
RECORD REVIEW
MAN HOURS
MORE THAN
2 MILLION
VARIATIONS IN
PRODUCTION
MANAGED IN
REAL TIME
99% UPTIME
ACHIEVED AT
RETAIL LNG
STATIONS WITH
CLOUD SOLUTION
20X
INCREASE
IN ACCESS TO
PRODUCTION
DATA
ELIMINATED
2,500 HOURS
OF MANUAL
COLLECTION
BRINGING THE CONNECTED ENTERPRISE TO LIFE
Making it Happen

CONSUMERS LIFE SCIENCES TRANSPORTATION OIL & GAS, CHEMICAL MINING & CEMENT
CONNECTED ENTERPRISE SUCCESSES

THE CONNECTED ENTERPRISE REQUIRES A PLAN
We Provide Consulting Services for Both Planning & Implementation
BUSINESS EVALUATION TECHNOLOGY EVALUATION ORGANIZATION EVALUATION
• Solutions are not the same
for different companies
• Business drivers/costs vary
by industry and company
and determine the technical
capabilities that should be
deployed
• Operations strategy also
impacts implementation and
structure of the solution
Technologically enabling operations require a comprehensive approach to realize the benefits
• Equipment review to
determine current installed
capabilities
• Network infrastructure and
security review, identification
or requirements and current
gaps
• Operating software specified
to support data and analytics
• IT architecture needs to be
understood to determine
enterprise wide capabilities
• Alignment on the vision
of technology in the
operation
• Technical capabilities
within the key support
departments
• Change management
and readiness for the
key plants targeted

PLANNING THE CONNECTED ENTERPRISE
Rockwell Automation Approach to Planning the Transformation
COST ESTIMATES
• Develop initial cost estimate for the
sample facilities
• Costs are extrapolated for the
enterprise to understand and plan
for a multi-year implementation
STRATEGY REVIEW
• Understand future operating vision
• Review current operating strategy
• Understand stakeholder needs
• Create alignment around a single
vision for The Connected Enterprise
OPPORTUNITY IDENTIFICATION
• Identify sample facilities to review
and understand operating practices
• Review plant performance to
identify improvement areas
• Identify improvement projects and
estimate potential savings
BUSINESS CASE
• Develop project ROI based on
savings from the identified
opportunities and estimated costs
• Identify Operational improvements
that meet investment requirement
• Bundle individual projects that rely
on common costs elements
ROADMAP
• Projects that meet investment
requirements are sequenced
• Initiative can be sequenced with
other major projects
• Project timing and resources are
estimated to allow effective planning
Leadership Interview
Plant Visits,
Performance Data Review
Analysis, Workshops
Working Sessions,
Leadership Review
Activities:
Process:

What’s Next Within Rockwell Automation

The Connected Supply Chain

THE CONNECTED SUPPLY CHAIN
Manage Network Supply Planning Manufacturing Execution
Ship
Fulfillment & Distribution
Transportation
Customer Demand Management
• Sourcing Decisions
• Optimize Network
• Product Lifecycle Mgt
INFORMATION FLOW
MATERIAL FLOW
A fully integrated supply management capability that
expands the influence and value of our Connected Enterprise
• Service Level &
Inventory Mgt
• Procurement
• Supply Planning
• Manage Material Flow
• Resource Management
• Production Planning
• Production Order
Execution • Execute Manufacturing
• Product Validation &
Test
• Transportation Mgt
• Distribution
• Global Trade
Compliance
• Reverse Logistics
• S&OP
• DMI
• Demand Planning &
Forecast

CONNECTED ENTERPRISE JOURNEYQUANTIFIABLEBENEFITS
9 YEAR SPAN in $$$
CUSTOMER SERVICE
CUSTOMER SERVICE
77% to 96%
PRODUCT LEAD TIME
30 to 15 days
PAST DUE
$30m to $3m
SUPPLIER PERFORMANCE
SUPPLIER OTTP
88% to 95%
SUPPLIER LEAD TIME
26 to 17 days
SUPPLIER QUALITY
3800 to 400 ppm
SC COST AS A % OF REVENUE FLAT
Connected Supply Chain aims to build on the foundation that has been established

CONNECTED SUPPLY CHAIN
How we are managing the work and collaboration
PROCESS PEOPLE TECHNOLOGY
Benchmarking and Collaboration Companies

CONNECTED SUPPLY CHAIN
Benefits
SUPPLY CHAIN
NETWORK OPTIMIZATION
INVENTORY
OPTIMIZATION
“OUR CONNECTED
ENTERPRISE”
SUPPLY CHAIN
VISIBILITY
Ensure the optimal
allocation of inventory
across the entire supply
chain network
Design and evolve
the ideal value chain
Aggregate and present
data across the supply
chain enabling
increased efficiencies
and improved decision
making capabilities
Continue to mature
and refine our
application of The
Connected Enterprise
within RA’s operations
Inventory Reduction TCO Reduction TCO Reduction
TCO Reduction
Organizational Productivity
TOCT Reduction Organizational Productivity
Plant Productivity
Quality

MEIO GLOBAL DEPLOYMENT
SUPPLY CHAIN TRANSFORMATION
ENTERPRISE CAPACITY MANAGEMENT
PRODUCT AVAILABILITY DESIGN THINKING
ORDER TO CASH TARGET OPERATING MODEL
AUTOMATED BUSINESS PROCESS DISCOVERY

SCALABLE EXECUTION SCALABLE ANALYTICS MOBILITY & COLLABORATION CONNECTED SERVICES

Robert Murphy Driving Value from Smart Manufacturing

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