Smart, Safe and
                                                                  Sustainable
                                                                  Manufacturing

                                                                  John Bernaden
                                                                  Efficient Enterprises: Powering American Industry
                                                                  September 25, 2009




Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
Federal R&D and the U.S. Economy

• American science and engineering innovations underpin our economy
• Science and technology investments drove between 50 to 85 percent of
  U.S. economic growth over the past half-century
• Two-thirds of productivity gains in recent decades attributable to
  scientific and technological advances
                                                                                    Federal R&D Funding
• Federal R&D funding is half the 1970’s                                         Engineering/Physical Science
                                                                                     Source: American Physical Society of Public Affairs
  rates as a percent of GDP                                                    0.3




                                                             Percent of GDP
                                                                              0.25
• Applied research funding declined                                            0.2
  40 percent from 1990 to 1998; and                                           0.15
                                                                               0.1
  is 30 percent behind basic science                                          0.05
                                                                                 0
                                                                                     1970       1980       1990        2000        2009


   Manufacturing innovation especially needs applied research
                       Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
                                   2008                                                                                                    2
Smart Manufacturing 1.0: Islands of Efficiency


 Batch       Continuous                                              Motion                   Drive

                                                                                         Energy-efficient
Combined     Distributed                              Smart                                  Motors
 Heat &       Control                                Machines
 Power        Systems
  (CHP)        (DCS)                                                                             Discrete

                                                                           Safety Programmable
                                                                                      Logic
                                                                                   Controllers
                                                                                      (PLC)

 Today, most plants use multiple separate manufacturing technologies
                       Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                      3
Smart Manufacturing 2.0: Plant-wide Integration

                             Industrial
                              Energy
Batch            Continuous Management                                       Motion              Drive



                                                                                                   Discrete
                                            Ethernet/IP
                                                                                 Safety
• ACEEE estimates +2x energy savings
• Able to measure and manage carbon
footprints per product line
• More flexible, safer and productive
factories in the future


                Essential first step to the connected enterprise
                               Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                4
Smart Manufacturing 2.0: IT-Connected Plants
                                                                                      an interconnected
                                                                                     world… voice, data,
                                                                                            mobile, etc.


         Business
         Systems, ERP




                                                                                                   Customer
Supply
Chain                                                                               Distribution
                                                            Smart                   Center
                                                            Factory

                                              Modern, smart factories will be
          Smart                           interconnected via Ethernet/IP with the
          Grid                           supply chain, distribution, customers, and
                                                      business systems
                  Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                          5
Major Business Benefits
                                                                                  OPTIMIZED WITH BUSINESS RISK MGMT




                     Enterprise
                     Business Systems                                               Machine            Factory   Enterprise
                     Customer Relationship                                      -Track/Trace     -Analytics / Reporting
                     Management                                                 -Key Process Indicators –Batch Records
                     Supply Chain
                     Management
                     Enterprise Production
                     Management




                                                                                                                              Customer
   Supply
   Chain                                                                      HIGHER PRODUCTIVITY / LOWER TOTAL
FLEXIBLE: FASTER TIME TO MARKET                                                       COST OF OWNERSHIP  Distribution
                                                                                                         Center
    -Simulation / Advanced Control                                                            -Software Integration
    -Mechatronics                                                                             -Safety / Security
                                                                                                 -Wireless
    -Autonomous Control
    …..-Prognostics




                                     Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                                 6
Sustainable Production Benefits
                                                                              OPTIMIZED WITH BUSINESS RISK MGMT

                                                                                 ENERGY EFFICIENT




                Enterprise
                Business Systems                                         -Industrial Energy Management
                Customer Relationship                                    -Environmental Compliance
                Management                                               -Product Safety
                Supply Chain
                Management
                Enterprise Production
ALTERNATIVE POWER
                Management




                                                                                HIGH EFFICIENCY

                                                                      -Smart Grid Ready
                                                                      -Regeneration
                                                                      -Clean Power




                               Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                    7
Manufacturing the Future

• “Intelligent & Integrated
  Manufacturing” recommended as
  one of three top federal priorities for
  manufacturing R&D by the National
  Science & Technology Council
  interagency working group in
  March, 2008.
• European Union is ahead of the
  U.S. with an approved 1.2 billion
  Euros for a new “Factories of the
  Future” research program to
  develop and apply advanced
  manufacturing technologies.


                           Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
                                       2008                                                  8
Federal Government Benefits

Smart, Safe and Sustainable Manufacturing 2.0 is key to several
 federal agencies’ ability to achieve their missions:

• Commerce: Helps enable the U.S. to maintain and grow its
  leadership in manufacturing
• Energy: Essential to industrial energy management and
  “green” manufacturing
• EPA: Carbon footprints for each product
• FDA: Safer foods and drugs and faster recalls
• Labor: Sustainable, safer, green jobs

   All these agencies will play an important role in the evolution of
           Smart, Safe and Sustainable Manufacturing 2.0
                     Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
                                 2008                                                  9
Significant Potential for Energy Savings

• By 2020, industrial sector will consume 52% of the                                                                                         (2020)*
  energy in the U.S. with estimated reduction
  potential of 18% yielding potential savings of $47b
  / year (McKinsey, 2009)
• Of the approximately 4 billion kWh electrical
  energy used per day in industrial operations in the
  U.S., a 10% reduction during peak demand
  translates to savings of $6b/year
                                                                                                                 * McKinsey Report, 2009

• Energy management for industrial operations is
  more complex than for buildings since                                                             Potential Peak Load Reduction (MW)
  stopping/starting processes can increase
  production costs – domain knowledge is required                                                                                                 Wholesale
                                                                                          Other

• Energy management is manual and fragmented in                                                                                                        Industrial

  industrial operations today                                                                            Commercial
                                                                                                                    Residential

    – Leverage integrated architecture, sensors, and
      advanced analytics to automate energy                                        0          2500        5000           7500        10000     12500         15000

      management


          “Greenprint” needed for industrial energy management
                                  Copyright © 2009 Rockwell Automation, Inc. All rights reserved.                                                            10
Industrial Energy Management “Green Print”

    Six steps toward the next generation of energy-efficient manufacturing:

    1. Facility Energy Monitoring and Demand Management
           •    Equipment runtime decisions that lower energy consumption / cost
    2. Plant Floor Energy Monitoring
           •    Energy optimization in a manufacturing process
    3. Energy on the Production Bill of Materials
           •    Understand the cost of energy associated with manufacturing a specific product
    4. Production Modeling & Optimizing
           •    Model energy as a process variable utilizing advanced modeling tools
    5. Production Demand Management
Measure




           •    Schedule production with energy as a variable (responds to water or electricity restrictions)
Sense &




    6. Demand Response to Regulation
           •    Respond to external market signals (like the smart grid) to optimize demand to real-time supply
                and provide continuous emissions monitoring


                                    Copyright © 2009 Rockwell Automation, Inc. All rights reserved.               11
Public Support for U.S. Manufacturing


Factory automation important to U.S. economic growth
                                                                                   82%


Use stimulus $$ to increase factory automation
                                                             70%


U.S. losing its competitive edge
                  42%



                 Copyright © 2009 Rockwell Automation, Inc. All rights reserved.         12
Call to Action

•   Establish $2 billion in public-private partnership funding to research
    and develop a manufacturing “greenprint” for Smart, Safe,
    Sustainable Manufacturing 2.0
•   Establish “applied research “demonstration projects in collaboration
    with manufacturers to refine and improve the “greenprint” model
    across the five industries with the highest energy intensity –
    petroleum, chemical, metals, minerals and food processing, to
    achieve the following:
      •    Plantwide optimization of resources, including water, compressed air,
           natural gas, electricity and steam (WAGES)
      •    Industrial energy management that enables "real-time" inclusion of energy
           or emissions as part of a product's cost
      •    A safer working environment for employees
      •    Safer products and the ability to more efficiently meet federal regulations,
           especially for faster recall tracking and tracing
•   Establish educational and outreach programs about the “greenprint”
    model for Smart, Safe and Sustainable Manufacturing 2.0
                         Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
                                     2008                                                  13
Questions?




Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

                                                                  Copyright © 2009 Rockwell Automation, Inc. All rights reserved.   14

Smart, Safe and Sustainable Manufacturing

  • 1.
    Smart, Safe and Sustainable Manufacturing John Bernaden Efficient Enterprises: Powering American Industry September 25, 2009 Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
  • 2.
    Federal R&D andthe U.S. Economy • American science and engineering innovations underpin our economy • Science and technology investments drove between 50 to 85 percent of U.S. economic growth over the past half-century • Two-thirds of productivity gains in recent decades attributable to scientific and technological advances Federal R&D Funding • Federal R&D funding is half the 1970’s Engineering/Physical Science Source: American Physical Society of Public Affairs rates as a percent of GDP 0.3 Percent of GDP 0.25 • Applied research funding declined 0.2 40 percent from 1990 to 1998; and 0.15 0.1 is 30 percent behind basic science 0.05 0 1970 1980 1990 2000 2009 Manufacturing innovation especially needs applied research Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 2008 2
  • 3.
    Smart Manufacturing 1.0:Islands of Efficiency Batch Continuous Motion Drive Energy-efficient Combined Distributed Smart Motors Heat & Control Machines Power Systems (CHP) (DCS) Discrete Safety Programmable Logic Controllers (PLC) Today, most plants use multiple separate manufacturing technologies Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 3
  • 4.
    Smart Manufacturing 2.0:Plant-wide Integration Industrial Energy Batch Continuous Management Motion Drive Discrete Ethernet/IP Safety • ACEEE estimates +2x energy savings • Able to measure and manage carbon footprints per product line • More flexible, safer and productive factories in the future Essential first step to the connected enterprise Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 4
  • 5.
    Smart Manufacturing 2.0:IT-Connected Plants an interconnected world… voice, data, mobile, etc. Business Systems, ERP Customer Supply Chain Distribution Smart Center Factory Modern, smart factories will be Smart interconnected via Ethernet/IP with the Grid supply chain, distribution, customers, and business systems Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 5
  • 6.
    Major Business Benefits OPTIMIZED WITH BUSINESS RISK MGMT Enterprise Business Systems Machine Factory Enterprise Customer Relationship -Track/Trace -Analytics / Reporting Management -Key Process Indicators –Batch Records Supply Chain Management Enterprise Production Management Customer Supply Chain HIGHER PRODUCTIVITY / LOWER TOTAL FLEXIBLE: FASTER TIME TO MARKET COST OF OWNERSHIP Distribution Center -Simulation / Advanced Control -Software Integration -Mechatronics -Safety / Security -Wireless -Autonomous Control …..-Prognostics Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 6
  • 7.
    Sustainable Production Benefits OPTIMIZED WITH BUSINESS RISK MGMT ENERGY EFFICIENT Enterprise Business Systems -Industrial Energy Management Customer Relationship -Environmental Compliance Management -Product Safety Supply Chain Management Enterprise Production ALTERNATIVE POWER Management HIGH EFFICIENCY -Smart Grid Ready -Regeneration -Clean Power Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 7
  • 8.
    Manufacturing the Future •“Intelligent & Integrated Manufacturing” recommended as one of three top federal priorities for manufacturing R&D by the National Science & Technology Council interagency working group in March, 2008. • European Union is ahead of the U.S. with an approved 1.2 billion Euros for a new “Factories of the Future” research program to develop and apply advanced manufacturing technologies. Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 2008 8
  • 9.
    Federal Government Benefits Smart,Safe and Sustainable Manufacturing 2.0 is key to several federal agencies’ ability to achieve their missions: • Commerce: Helps enable the U.S. to maintain and grow its leadership in manufacturing • Energy: Essential to industrial energy management and “green” manufacturing • EPA: Carbon footprints for each product • FDA: Safer foods and drugs and faster recalls • Labor: Sustainable, safer, green jobs All these agencies will play an important role in the evolution of Smart, Safe and Sustainable Manufacturing 2.0 Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 2008 9
  • 10.
    Significant Potential forEnergy Savings • By 2020, industrial sector will consume 52% of the (2020)* energy in the U.S. with estimated reduction potential of 18% yielding potential savings of $47b / year (McKinsey, 2009) • Of the approximately 4 billion kWh electrical energy used per day in industrial operations in the U.S., a 10% reduction during peak demand translates to savings of $6b/year * McKinsey Report, 2009 • Energy management for industrial operations is more complex than for buildings since Potential Peak Load Reduction (MW) stopping/starting processes can increase production costs – domain knowledge is required Wholesale Other • Energy management is manual and fragmented in Industrial industrial operations today Commercial Residential – Leverage integrated architecture, sensors, and advanced analytics to automate energy 0 2500 5000 7500 10000 12500 15000 management “Greenprint” needed for industrial energy management Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 10
  • 11.
    Industrial Energy Management“Green Print” Six steps toward the next generation of energy-efficient manufacturing: 1. Facility Energy Monitoring and Demand Management • Equipment runtime decisions that lower energy consumption / cost 2. Plant Floor Energy Monitoring • Energy optimization in a manufacturing process 3. Energy on the Production Bill of Materials • Understand the cost of energy associated with manufacturing a specific product 4. Production Modeling & Optimizing • Model energy as a process variable utilizing advanced modeling tools 5. Production Demand Management Measure • Schedule production with energy as a variable (responds to water or electricity restrictions) Sense & 6. Demand Response to Regulation • Respond to external market signals (like the smart grid) to optimize demand to real-time supply and provide continuous emissions monitoring Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 11
  • 12.
    Public Support forU.S. Manufacturing Factory automation important to U.S. economic growth 82% Use stimulus $$ to increase factory automation 70% U.S. losing its competitive edge 42% Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 12
  • 13.
    Call to Action • Establish $2 billion in public-private partnership funding to research and develop a manufacturing “greenprint” for Smart, Safe, Sustainable Manufacturing 2.0 • Establish “applied research “demonstration projects in collaboration with manufacturers to refine and improve the “greenprint” model across the five industries with the highest energy intensity – petroleum, chemical, metals, minerals and food processing, to achieve the following: • Plantwide optimization of resources, including water, compressed air, natural gas, electricity and steam (WAGES) • Industrial energy management that enables "real-time" inclusion of energy or emissions as part of a product's cost • A safer working environment for employees • Safer products and the ability to more efficiently meet federal regulations, especially for faster recall tracking and tracing • Establish educational and outreach programs about the “greenprint” model for Smart, Safe and Sustainable Manufacturing 2.0 Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 2008 13
  • 14.
    Questions? Copyright © 2009Rockwell Automation, Inc. All rights reserved. Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 14