Transforming to Digital Manufacturing to Accelerate

NPI, Growth and ProfitsChet Namboodri, Global Industry Director - Manufacturing

PSOGEN-2004

• Introduction

• Global Manufacturing trends and business imperatives

• Customer Outcomes and the formation of Connected Factory

• Cisco Connected Factory of the future for Digital Manufacturing

• Catch the Digital Manufacturing wave and achieve real results

• Conclusion

Agenda

What’s on the Mind of a Manufacturing Executive?

Security, Security, Security

Lower Total Cost of Ownership

Workforce Productivity, New Skills, Safety-

Aging Workforce Dilemma

Faster Time to Market and New Product

Introduction (NPI)

Asset Optimization… Improving Flexibility,

Uptime, Efficiency

IDC 2015: ROI More Important than Ever

Customer Outcomes and the formation of Connected Factory

General MotorsFuture-Proof Operations with Plant Floor Control Networks (PFCN)

Accelerate entry into emerging

markets, specifically Brazil and

China

Improve product quality and

realize cost efficiencies

Create a globally integrated,

standards-based engineering

and manufacturing platform

Deploy modern, standards

based network architecture

“Plant Floor Communications

Network (PFCN)” enabled by

Cisco with ecosystem of

Industrial Automation vendors

and Machine Builders

$53M savings in network

operations staff

$76.3M/yr in automotive

production profit contribution

from improved uptime

$5.4M in spare inventory savings

166% ROI projected over 5 years

75% downtime reduction at

Greenfield assembly plants,

compared to legacy plants

ResultsChallenge Solution

“PFCN is a tremendous engineering accomplishment for GM. Standardizing

plant networks has reduced costs, improved uptime and provided a flexible

platform for future applications such as collaborative engineering”Nick Bell

Program Information Officer, Global Manufacturing & Labor

General Motors

Click here for GM case study

Harley-Davidson Retooling for Flexibility and Cost Productivity with IoE

Harley-Davidson moved to

reduce costs and increase

efficiencies

Hundreds of motorcycles

built each shift, with low

cycle time per operation

Manufacturing complexity

with 1200 different

configurations

Architect an end-to-end

Converged Plantwide Ethernet

Automation solution enabling

Harley-Davidson to achieve its

goals of world-class

manufacturing, built on RA-

Cisco IE switching and closed-

loop controls fabric

Cisco Unified Wireless

Layer in Visual MFG on the

wired-wireless infrastructure

Model NPI reduced from more

than a year to 1.5 wks

Enabled paperless factory

for rapid response

Increased OEE by 7-12%

(+1% OEE yields upwards of

+4% in Op Margin)

Up to 25x improvement in

build-to-order cycle times

Reduced downtime and

scrap, yielding $200M benefit

ResultsChallenge Solution

“What used to take hours or days to triage and troubleshoot problems now takes seconds.”

David Gutshall

Infrastructure Design Manager, Harley-Davidson Motor Company

Click here for H-D case study

Cisco Connected Factory of the future for Digital Manufacturing

IDC 2015: Heat Map of Leading IoT Applications

Connected Factory Digital Business Solutions

Factory

Digitization

Factory

SecurityFactory

Wireless

Factory

Automation

Connected Factory

Efficiency,

TTM, Flexibility

Speed, Agility,

Lower Costs

Remote & On-

Premise Access

Reduce energy,

downtime, recalls

12

Connected Factory Reference Model, Architecture

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Customer Use Case Solution Overview

Innovative assembly engineering for:

Ø Improved quality

Ø Increased volumes

Ø Greater utilization

Ø Reduced costs

Ø Improved concrete-to-carpet visibility

Ø Increased agility

Business Challenge

Ø Fully automated assembly using IP-

based control networks that transport

top-to-shop floor info in near real-time

Ø Improved process entitlement and efficiencies

Ø Remote monitoring

Ø Remote diagnostics

Capabilities Required

Ø Standard plant engineering templates for single set of network design guidelines and standards that drives out costs, reduces time-to-market and increases SLA of Manufacturing IT

Ø 70% reduction in network engineering, support and spares; 75% reduction in network-based plant downtime; 300x reduction in plant application deployment cycles

Ø Global visibility and platform for OEE improvements, cost reductions and profitability

Ø 25% improvement in operating margins; OEE (availability * throughput * quality) from as low as 60% to 90%; 11% reduction in TCO for plant network assets

Business Outcome / Value Proposition

Ø End-to-End architecture

Ø Secure remote machine access,

Ø Diagnostics and maintenance via

enterpise network using

Ø IT-friendly, proven, stds-based solution for Manufacturing automation.

Cisco Differentiation

Ø IE

Ø Catalyst

Ø ASA

Ø ISR

Ø AP

Ø Clean Air

Ø Wireless Controller

Cisco Products

CF Digitization

Converged Networks with

App / Data Integration

Flexible Manufacturing

Rapid Fault Isolation

Resiliency (REP, DLR)

Ease of Use (NAT)

Mobile controls visibility

Wireless tooling, I/O

Asset tagging with RTLS

Mobile Video

Mobile HMI, MES, other Apps

Energy visibility, analytics

Cloud / App Virtualization

Predictive Analytics

Machine as a Service

Plant Infrastructure as a Service

CF Automation

CF Security Identity Services

Physical Security

Machine / Controls cyber security

Secure Remote / On-Prem Access

Data & App Services Access

Business Domain Capabilities EnabledFoundational

SolutionUse Cases Supporting Architecture

Co

nn

ecte

d F

acto

ry

Enterprise

ZoneEnterprise Applications

and NetworkLevel

5

Site Business

Planning/Logistics NetworkLevel

4

Cell/

Area

Zone

DMZDemilitarized –

Share Access

Area Control Level

2

Basic Control Level

1

ProcessLevel

0

CF WirelessPlant

Site Manufacturing Operations and Control

Level

3

Enabling the Digital Factory of the Future

AutomationPervasive

IntelligenceSensors

Everywhere Machine-to-

Machine

Tighter Risk Management

Lower Total Cost of Ownership

Faster Time to Market, More Agility

Improved Asset Utilization

Robots and Machines

Personal Devices

SensorsSecurity Devices

Real-Time Analytics

Hardened Mobile

M2M Gateway

User- and Control-

Level Factory Security

Ruggedized

Wireless AP

Industrial Routers

and Switches

Mahindra AutomotiveDesigning and Implementing the Digital Factory of the Future

New Chakan Plant needed

to be adaptable to changes

in technology, equipment

and process

Minimize conversions by

standardizing technology

and vendors

Needed full integration from

‘top floor to shop floor’

Deployed (PFCN-derived)

Control Networks using IE and

Cisco & Rockwell Automation

converged architecture (CPwE)

Integrated TAKT Time Control

Full Digital Manufacturing

capabilities with centralized

control room utilizing Andon as

primary tool to manage all

areas

9-month faster startup (30%+

reduced TTM) of Chakan

Greenfield plant and new model

introductions, compared to

previous Mahindra Greenfields

and competitive benchmarks

Production output between year

1 and 2 of model NPI +73%

Plant performance within 5% of

stretch design targets

ResultsChallenge Solution

“We were missing the visibility in the shop floor and thru many parts of the

lifecycle journey of our vehicles. Now we have much better information and all

this connectivity through the Internet of Everything.”

V.S. Partharasathy

CFO and Group CIO, Mahindra and Mahindra

Click here for Mahindra case study

Catch the Digital Manufacturing wave and

achieve real results

Cisco Can Help You Capture IoT Value-AddOpportunities for Digital Manufacturing

Business challenges

Best practice sharing

Use case brainstorming

and prioritization

Discovery Workshop with OT and IT

Run POCs in a

showcase manufacturing

facility to prove

the value and technology

POC Design

TCO or OEE Opportunity Quantification

Quantify top value

opportunities for senior

management (TCO,

OEE, and overall

benefit models)

End-State Architecture Assessment

Document future state

architecture (3 to 5 years

out), gaps that exist today,

change management, and a

phased plan to reach goals

Food manufacturer expands product portfolio with Connected Factory

Get better transparency of real-time

production to schedule

Expand into a new product portfolio

that needs sensors everywhere

(Sous-Vide) for ideal production

Need to understand effects of

emergency issues and help first

responders in case of issues

Gain better visibility to real-time OEE

for all users in all locations

$100m annual energy bill

Cisco Advanced Services for

complete Greenfield design to

integrate the Cisco Connected

Factory architecture

Includes Cisco Wireless with

AeroScout RFID tags for Location

Based Services, Security, and

communications on one network

Integrates machine data to digital

signage and mobility applications

using Cisco Analytics

Cisco EnergyWise for Manufacturing

Projected ResultsChallenge Solution

“With the help of the Cisco Services and Global Manufacturing Industry practice, we

have been able to expand our product portfolio, production capacities, efficiencies and

capabilities with a new plant. We’re able to achieve many new benefits with the

additional insights into our operations not previously available.”Rob Daley

CEO Sugar Creek

Met Greenfield implementation and

start-up schedule, including new

product and process capabilities

Improved labor utilization to 90%

Integrated ‘single pane of glass’

visibility for all operations

New IoT sensors adding predictive

maintenance capabilities, lowering

costs and increasing OEE by 25%

Lower energy costs (per sq.ft) by 15%

Replicable blueprint for retro-fit of

other five facilities

Sugar Creek Packaging

Q&A

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Continue Your Education• Demos at the World of Solutions GENWOS-1000:

Connected Factory Experience

• Industry Table Topics, Meet the Engineer 1:1 meetings, Other Related Sessions …

• Tuesday: CISSOL-1035 Connected Factory and the IoE (Mini-Session) – Solution Theatre East @ 11:45am

BRKIOT-2108 Connected Factory Architecture Theory & Practice – 24C Upper Level @ 1pm

• Wednesday: CCSIOT-1834 Sugar Creek: Enabling IOT in the Connected Factory – 11A Upper Level @ 1pm

PCSSOL-1024 Bayshore & Cisco Cybersecurity for Industrial IoT – Solution Theater West @ 1:30

PSOIOT-2004 The Next Industrial Transformation with IoE – 14B Mezzanine @ 3:30

BRKIOT-1101 The Journey to the GE Brilliant Factory – 23AB Upper Level @ 3:30

CISSOL-1035 Connected Factory and the IoE (Mini-Session) – Solution Theatre East @ 4pm

• Thursday: PSOIOT-2005 Bridging the IT to OT Technology Gap – 14B Mezzanine @ 9:30am

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