Alexis Malchair

Solutions Sales Manager, Internet of Things

June 2016

IOT and Digital Manufacturing The new evolution

Digitization Trends Across Major Industries

ENABLE NEW BUSINESS MODELS

Create recurring revenue models with increased customer intimacy

TRANSFORM BUSINESS PROCESSES

Higher productivity by predictive maintenance and better asset utilization

Smart Manufacturing Grid Modernization Shopper Insights

IoT Enabling Transformation

Smart Cities Connected Transit Smart Space

Where is the value

Connect the

Unconnected 50Billion

Smart Connected Devices by 2020

Hyper-connectivity, IT and OT convergence

Interoperability across silo’ed systems

required to capture 40% of IOT value

<1% of data currently used, more can be

used for optimization and prediction

Over 60% of the IOT value will be

generated in Enterprise deployments

Source - McKinsey: The Internet of Things: Mapping The Value Beyond The Hype

CONTROL

ACT

AUTOMATE

IoT: The Internet of Things

Sensors

Connectivity

Analytics & insights

Processes & integration

1 0 0 1 0 0 0 1 1 0 1 1 0 0 0 1 0 1 1 0

1 0 0 1 0 0 0 1 1 0 1 1 0 0 0 1 0 1 1 0

1 0 0 1 0 0 0 1 1 0 1 1 0 0 0 1 0 1 1 0

1 0 0 1 0 0 0 1 1 0

Christian Horner Team Principal, Infiniti Red Bull Racing

“The network will play a crucial part in how we develop the car; gathering data, learning from it and adapting will ultimately determine our season.”

A New Industrial Revolution Digitizing Manufacturing to Capture the Value of the Internet of Everything

18th

Century

Steam

20th Century

Mass Production 70’s

Robots

Today

Digitization

Technology

Progress

Smart

Devices

Digital Manufacturing Priority Investments #1 Analytics | #2 Connectivity | #3 Automation | #4 Mobility

Source: SCM World/Cisco “Smart Manufacturing & the Internet of Things 2015” survey of 400 Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.

Design principles for Industry 4.0

• There are 6 design principles

1. One open standard for communication

2. Virtualization and simulation models of production

3. Flexible and decentralised control

4. Capability to collect, process and store data in real time

5. Service possibillities over the network

6. Modular and flexible production for fast adoption and small seriespå produkt

Reduction in

Defects

49%

Defect rate

down from

4.9%

to 2.5%

Reduced

Downtime

48%

Unplanned

downtime down

from 11%

to 5.8%

OEE

Improvement

16%

Average OEE

improved

from

74% to 86%

Improved

Inventory

35%

Inventory

turns increased

from

14 to 19

Reduction in

Energy Use

18%

Annual energy

cost down from

$8.4M

to $6.9M

The Real Economic Value is Immense

New Product

Introduction

23%

New product

introduction cycle

time reduced from

15 to 11

Source: SCM World/Cisco “Smart Manufacturing & the Internet of Things 2015” survey of 400

Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.

Digital Manufacturing Driving Business Outcomes

Disruptive Trends in Manufacturing

Security Convergence

Convergence (industry 4.0, Industrial Internet Consortium) • Network integration between machine and factory

• Factory network integrates with the enterprise network

• Single network platform

Increased focus on Services by OEM’s • Customer demand for high availability and uptime

• Take control of after market for parts and tools

• Remote connectivity and monitoring to reduce service costs

• Zero touch deployment and provisioning

Data Driven Manufacturing • TQM: Real time quality control with in-line re-work

• Real time operator visibility with OEE alerts from OEM

• Flexible cell manufacturing, rapid re-tooling

Secure Operations and Machines • Operations needs IT to address security

• Security strategy drives new business and partnership models

• Framework approach to address organization boundaries

Manufacturing Data Cloud Services

Smart Industry

Day -

16/06/2016

9

IOT Standard topology

Ethernet/IP, Profinet or any standard Ethernet protocol

Real–Time Control

Fast Convergence

Traffic Segmentation and Management

Managed switches

Site Operations and Control

Multi-Service Networks

Network and Security Management

Routing

Application and Data share

Access Control

Threat Protection

Gbps Link for Failover Detection

Firewall (Active)

Firewall (Standby)

HMI Scada

Application Servers

Cisco ASA 5500

Cisco Catalyst Switch

Network Services

Cisco Catalyst 6500/4500

Cisco Cat. 3750 Switch Stack

Patch Management Terminal Services Application Mirror

AV Server

Cell/Area #1 (Redundant Star Topology)

Drive

Controller

HMI Distributed I/O

Controller

Drive Drive

HMI

Distributed I/O

HMI

Cell/Area #2 (Ring Topology)

Cell/Area #3 (Linear Topology)

Layer 2 Access Switch

Controller

Enterprise/IT Integration

Collaboration

Wireless

Application Optimization

Cell/Area Zone Levels 0–2 Layer 2 Access

Manufacturing Zone Level 3 Distribution and Core

Demilitarized Zone (DMZ) Firewalls

Enterprise Network Levels 4–5

Web Apps DNS FTP

Internet

Cisco Validated Ethernet Architecture

Supply chain

Factory IT in a Box

Fog-Edge Cloud Core Data Center

Backup &

Replication

Backup & Replication

Management Centralized

SW/HW

Machine

Adapter

Connected Machine service model

Machine monitoring

Machine as a Service

green light,

utilization,

OEE

streaming analytics

Zero Down Time like Services

Condition based Monitoring

New OEM services models w/ SLA’s

Machine, Process, & Quality Optimization

Advanced Analytics

Cloud or Data Center Manufacturing Plant

Connected Machines

Rapid Provisioning

IT/OT Interface, security

Network Hosted

OPC MTConnect IoT SW

Agents

1:1 machine

1:1 cell

1:1 Plant

Plant Level

Systems

OEM

MES

Quality

OEE

Plant

Perimeter

FW

DPI

Policy

Data Center

Perimeter

FW

DPI

Policy

Data Store

Applications

Analytics

Visualization

1 Persistent

Secure

Connection

Transaction/Streaming

Utilization

OEE

Machine Application (ZDT, Advanced Quality Monitoring, Advanced Analytics)

IT/OT, Security, NAT

Plant

Network

Plant

Systems

IoT Platform

embedded/cell

Distribution