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Intelligent Manufacturing
A Smart Choice…
By: Sunil K. Wadhwa
• Key Pressure Points of Manufacturing
• Background: Stages of Industrial Manufacturing
• Elements of Intelligent Manufacturing
• Contents of Manufacturing Data Exchange
• Layers of Plant IT Solutions
• Typical Production Scenarios
• Key Benefits of Intelligent Manufacturing
• Summary and Conclusions
Topics of Report
25 December 2014 Intelligent Manufacturing: A Smart Choice 2
Key Pressure Points of Manufacturing
Key Pressure Points of Manufacturing:
– Quality, regulation and compliance
• In-line quality control
– Cost control, cash flow and compression
• Control of Reject Ratio in terms of Scrap, Utility management, vendor management,
quality raw materials at lowest price
– Safety
• Automated Safety & protection devices, uninterrupted safe operations
– Innovation
• Integrated SCM, Process Improvement, Complex Logix, Process Analytics, Efficiency
– Growth
• Expansions
• Automation, speed and increased productivity
• Multiple sites to monitor
• Asset Comparison & Management
– Sustainability
• Consistent Quality
• Predictable Operations & Productivity
25 December 2014 Intelligent Manufacturing: A Smart Choice 3
Background: Stages of Industrial Revolutions
25 December 2014 Intelligent Manufacturing: A Smart Choice 4
Background: Stages of Industrial Revolutions
25 December 2014 Intelligent Manufacturing: A Smart Choice 5
Various Stages of Industrial Revolution:
1. End of 18th Century: Introduction of Mechanical
Loom & Steam Engines
2. Start of 20th Century: Mass Production based on
division of labor powered by electrical energy
3. Start of 70’s: Introduction of Electronics & IT (PLC,
SCADA)
4. Today: Introduction of Cyber-Physical Production
System (Cloud/ Web based solutions, IIoT, Internet,
Global connectivity, ERP, MES, MIS, SCADA, PLC,
Robots, Sensors, Wireless Devices, Mobility, etc.)
Elements of Intelligent Manufacturing
Combined intelligence of machines, people, processes, products and
infrastructure makes a profound impact on overall economics of
manufacturing.
As a result, these essential elements of manufacturing are converging unlike
never before, creating a gateway to the world of Intelligent Manufacturing :
a) Intelligent Devices: Smart sensors, controls and software applications
work together to obtain and share real-time information as finished
goods make their way down the production line. “Intelligent Devices”
will enable machines to take autonomous actions.
b) Intelligent People: Connecting people across all business functions and
geographies, and providing them with relevant information in real-time,
“intelligent people” will be able to provide intelligent design, operations
and maintenance, as well as higher quality service and safety.
c) Intelligent Processes: Emphasizing bidirectional information-sharing
across the global manufacturing value chain — from supplier to
customer — “informed processes” lead to a flexible and adaptable supply
chain.
25 December 2014 Intelligent Manufacturing: A Smart Choice 6
Elements of Intelligent Manufacturing
d) Intelligent Connectivity: Using smart infrastructure components that
interface with mobile devices, products and people, “intelligent
connectivity” will better manage complexities and enable more
efficient manufacturing of goods.
e) Intelligent Products: Intelligent End-products use embedded
sensors to monitor performance and register in formation
associated with their production and operation (e.g., health
condition, history of manufacturing and service life). This gives them
unique identity.
f) Intelligent Infrastructure: Intelligent Infrastructure takes care of
real-time information availability among various plants, equipment,
processes, devices & people. It may include IT infrastructure such as
satellite link, Ethernet connectivity, Wi-Fi Routers, Remote PC
Servers, Data Storage servers, Fibre-optic link, Civil structures,
Mechanical, Electrical & Electronics hardware, etc.
25 December 2014 Intelligent Manufacturing: A Smart Choice 7
Contents of Manufacturing Data Exchange
25 December 2014 Intelligent Manufacturing: A Smart Choice 8
The contents of ERP-Plant floor data exchange calls for tight
integration at all levels and different information silos in
manufacturing environment using intelligent elements.
Plant Floor Information
Plant Operations, Area Supervision, Batch Process,
Reliability, Assurance, Traceability, Genealogy,
Maintenance, M/c. Automation, etc.
Production
Performance
(What was
made & used)
Production
Schedule
(What to make
and use)
Product
Definition
Information
(How to make
a product)
Production
Capability
Information
(What is
available to
use)
Enterprise Information
Production Planning, Production Scheduling,
Operations Management, Material Management,
Sales & Distribution, Sourcing, etc.
Layers of Plant IT Solutions
25 December 2014 Intelligent Manufacturing: A Smart Choice 9
• Various layers of Plant IT Solutions
make Manufacturing data exchanges
possible
• Integration of ERP systems with
Plant floor equipment horizontally
& vertically in real time as well as
storing historical data nurtures
needs of various manufacturing
stakeholders.
Typical Production Scenarios
Following are the typical issues in Production Environment and gains using
Intelligent Manufacturing (IM) solutions:
• Scenario-1: Inconsistent execution of manual procedures introduces
inefficiency and quality problems
• Gain using IM: Improved procedural execution enables agility for high-
product-mix production
• Scenario-2: Unplanned downtime consumes up to 30% of available capacity
• Gain using IM:Up to 15% of production capacity can be recovered as
equipment is proactively tuned for reliability
• Scenario-3: Increasing utility costs affect profit margins
• Gain using IM: Utility infrastructure is optimized against process needs,
improving efficiency and lowering consumption
• Scenario-4: In order to be sure of meeting customer delivery demands,
finished goods inventories must be held at several weeks anticipated orders
• Gain using IM: Reliable, predictable production capacity allows finished
goods buffers to be reduced 20% or more
25 December 2014 Intelligent Manufacturing: A Smart Choice 10
Typical Production Scenarios
• Scenario-5: Unpredictable quality and throughput lead to over- and under-stocks of
raw materials & inventory
• Gain using IM: Material Inventory is balanced to demand and production capacity
• Scenario-6: Inflexibility of existing process control systems limits capacity growth
• Gain using IM: Increased production capacity without large capital investment
• Scenario-7: Root Cause of quality and yield losses are unclear – testing and records
management is largely manual and disconnected from process
• Gain using IM: Supplier quality is validated, reducing operational variability and
product risk.
• Scenario-8: Multiple data from various sources leads to indecisiveness about a series
of breakdowns in the plant
• Gain using IM: Real-time & Historical data helps in analysis and implementing the
corrective actions in time leads to increase production
• Scenario-9: Huge manpower required due to lack of visibility & automated reporting
• Gain using IM: Integrating the ERP-Plant IT system results in increased efficiency and
reduction up to 27% in manpower (in a Tyre plant)
25 December 2014 Intelligent Manufacturing: A Smart Choice 11
Key benefits of Intelligent Manufacturing
Key benefits of Intelligent Manufacturing:
1. Reduce Total Cost of Ownership (TCO)
2. Maximise Return on Investment (ROI) & Assets (ROA)
3. Regulatory Compliance & Product Quality Management
4. Quick time to deliver product to the market
5. Optimized & Predictable Operations
6. Plant Visibility
7. Reliable Supply Chain Management (SCM)
8. Overall Equipment Efficiency (OEE) Improvement
9. Single truth at all levels
10. Reduced Inventory levels
11. Reduced Human Errors and
12. Manpower reduction
25 December 2014 Intelligent Manufacturing: A Smart Choice 12
Summary and Conclusions
Summary:
• Pressure Points for Manufacturing Industry
• Background: Stages of Manufacturing Revolutions
• Elements of Intelligent Manufacturing
• Contents of Manufacturing D ata Exchange
• Layers of Plant IT Solution help in Manufacturing data exchange
• How Typical Production Scenarios are resolved using IM
• Key benefits of Intelligent Manufacturing
Conclusions:
• It may take another 10-15 years to fully realize the benefits of
Intelligent Manufacturing at all the levels globally
• Manufacturing Organizations that fail to implement these
revolutionary technologies may lose on productivity and will be
highly vulnerable to competition
25 December 2014 Intelligent Manufacturing: A Smart Choice 13
25 December 2014 Intelligent Manufacturing: A Smart Choice 14
Thank You!
NOTE:
This presentation is a highlight of detailed report: ‘Intelligent Manufacturing: A Smart Choice’. This report is under preparation and
will be available soon for publication. All the data used is secondary and indicative in nature. For further details or your suggestions,
please contact by email at swadhwa2097@gmail.com.
Also, should you need to gain on productivity and visibility of your manufacturing operations, please feel free to contact for consulting
services for Business Process Analysis & Transformations, Plant IT, and Automation solutions. +91-9920358360.
© December 2014.
Mumbai, India.

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Intelligent Manufacturing - A Smart Choice

  • 1. Intelligent Manufacturing A Smart Choice… By: Sunil K. Wadhwa
  • 2. • Key Pressure Points of Manufacturing • Background: Stages of Industrial Manufacturing • Elements of Intelligent Manufacturing • Contents of Manufacturing Data Exchange • Layers of Plant IT Solutions • Typical Production Scenarios • Key Benefits of Intelligent Manufacturing • Summary and Conclusions Topics of Report 25 December 2014 Intelligent Manufacturing: A Smart Choice 2
  • 3. Key Pressure Points of Manufacturing Key Pressure Points of Manufacturing: – Quality, regulation and compliance • In-line quality control – Cost control, cash flow and compression • Control of Reject Ratio in terms of Scrap, Utility management, vendor management, quality raw materials at lowest price – Safety • Automated Safety & protection devices, uninterrupted safe operations – Innovation • Integrated SCM, Process Improvement, Complex Logix, Process Analytics, Efficiency – Growth • Expansions • Automation, speed and increased productivity • Multiple sites to monitor • Asset Comparison & Management – Sustainability • Consistent Quality • Predictable Operations & Productivity 25 December 2014 Intelligent Manufacturing: A Smart Choice 3
  • 4. Background: Stages of Industrial Revolutions 25 December 2014 Intelligent Manufacturing: A Smart Choice 4
  • 5. Background: Stages of Industrial Revolutions 25 December 2014 Intelligent Manufacturing: A Smart Choice 5 Various Stages of Industrial Revolution: 1. End of 18th Century: Introduction of Mechanical Loom & Steam Engines 2. Start of 20th Century: Mass Production based on division of labor powered by electrical energy 3. Start of 70’s: Introduction of Electronics & IT (PLC, SCADA) 4. Today: Introduction of Cyber-Physical Production System (Cloud/ Web based solutions, IIoT, Internet, Global connectivity, ERP, MES, MIS, SCADA, PLC, Robots, Sensors, Wireless Devices, Mobility, etc.)
  • 6. Elements of Intelligent Manufacturing Combined intelligence of machines, people, processes, products and infrastructure makes a profound impact on overall economics of manufacturing. As a result, these essential elements of manufacturing are converging unlike never before, creating a gateway to the world of Intelligent Manufacturing : a) Intelligent Devices: Smart sensors, controls and software applications work together to obtain and share real-time information as finished goods make their way down the production line. “Intelligent Devices” will enable machines to take autonomous actions. b) Intelligent People: Connecting people across all business functions and geographies, and providing them with relevant information in real-time, “intelligent people” will be able to provide intelligent design, operations and maintenance, as well as higher quality service and safety. c) Intelligent Processes: Emphasizing bidirectional information-sharing across the global manufacturing value chain — from supplier to customer — “informed processes” lead to a flexible and adaptable supply chain. 25 December 2014 Intelligent Manufacturing: A Smart Choice 6
  • 7. Elements of Intelligent Manufacturing d) Intelligent Connectivity: Using smart infrastructure components that interface with mobile devices, products and people, “intelligent connectivity” will better manage complexities and enable more efficient manufacturing of goods. e) Intelligent Products: Intelligent End-products use embedded sensors to monitor performance and register in formation associated with their production and operation (e.g., health condition, history of manufacturing and service life). This gives them unique identity. f) Intelligent Infrastructure: Intelligent Infrastructure takes care of real-time information availability among various plants, equipment, processes, devices & people. It may include IT infrastructure such as satellite link, Ethernet connectivity, Wi-Fi Routers, Remote PC Servers, Data Storage servers, Fibre-optic link, Civil structures, Mechanical, Electrical & Electronics hardware, etc. 25 December 2014 Intelligent Manufacturing: A Smart Choice 7
  • 8. Contents of Manufacturing Data Exchange 25 December 2014 Intelligent Manufacturing: A Smart Choice 8 The contents of ERP-Plant floor data exchange calls for tight integration at all levels and different information silos in manufacturing environment using intelligent elements. Plant Floor Information Plant Operations, Area Supervision, Batch Process, Reliability, Assurance, Traceability, Genealogy, Maintenance, M/c. Automation, etc. Production Performance (What was made & used) Production Schedule (What to make and use) Product Definition Information (How to make a product) Production Capability Information (What is available to use) Enterprise Information Production Planning, Production Scheduling, Operations Management, Material Management, Sales & Distribution, Sourcing, etc.
  • 9. Layers of Plant IT Solutions 25 December 2014 Intelligent Manufacturing: A Smart Choice 9 • Various layers of Plant IT Solutions make Manufacturing data exchanges possible • Integration of ERP systems with Plant floor equipment horizontally & vertically in real time as well as storing historical data nurtures needs of various manufacturing stakeholders.
  • 10. Typical Production Scenarios Following are the typical issues in Production Environment and gains using Intelligent Manufacturing (IM) solutions: • Scenario-1: Inconsistent execution of manual procedures introduces inefficiency and quality problems • Gain using IM: Improved procedural execution enables agility for high- product-mix production • Scenario-2: Unplanned downtime consumes up to 30% of available capacity • Gain using IM:Up to 15% of production capacity can be recovered as equipment is proactively tuned for reliability • Scenario-3: Increasing utility costs affect profit margins • Gain using IM: Utility infrastructure is optimized against process needs, improving efficiency and lowering consumption • Scenario-4: In order to be sure of meeting customer delivery demands, finished goods inventories must be held at several weeks anticipated orders • Gain using IM: Reliable, predictable production capacity allows finished goods buffers to be reduced 20% or more 25 December 2014 Intelligent Manufacturing: A Smart Choice 10
  • 11. Typical Production Scenarios • Scenario-5: Unpredictable quality and throughput lead to over- and under-stocks of raw materials & inventory • Gain using IM: Material Inventory is balanced to demand and production capacity • Scenario-6: Inflexibility of existing process control systems limits capacity growth • Gain using IM: Increased production capacity without large capital investment • Scenario-7: Root Cause of quality and yield losses are unclear – testing and records management is largely manual and disconnected from process • Gain using IM: Supplier quality is validated, reducing operational variability and product risk. • Scenario-8: Multiple data from various sources leads to indecisiveness about a series of breakdowns in the plant • Gain using IM: Real-time & Historical data helps in analysis and implementing the corrective actions in time leads to increase production • Scenario-9: Huge manpower required due to lack of visibility & automated reporting • Gain using IM: Integrating the ERP-Plant IT system results in increased efficiency and reduction up to 27% in manpower (in a Tyre plant) 25 December 2014 Intelligent Manufacturing: A Smart Choice 11
  • 12. Key benefits of Intelligent Manufacturing Key benefits of Intelligent Manufacturing: 1. Reduce Total Cost of Ownership (TCO) 2. Maximise Return on Investment (ROI) & Assets (ROA) 3. Regulatory Compliance & Product Quality Management 4. Quick time to deliver product to the market 5. Optimized & Predictable Operations 6. Plant Visibility 7. Reliable Supply Chain Management (SCM) 8. Overall Equipment Efficiency (OEE) Improvement 9. Single truth at all levels 10. Reduced Inventory levels 11. Reduced Human Errors and 12. Manpower reduction 25 December 2014 Intelligent Manufacturing: A Smart Choice 12
  • 13. Summary and Conclusions Summary: • Pressure Points for Manufacturing Industry • Background: Stages of Manufacturing Revolutions • Elements of Intelligent Manufacturing • Contents of Manufacturing D ata Exchange • Layers of Plant IT Solution help in Manufacturing data exchange • How Typical Production Scenarios are resolved using IM • Key benefits of Intelligent Manufacturing Conclusions: • It may take another 10-15 years to fully realize the benefits of Intelligent Manufacturing at all the levels globally • Manufacturing Organizations that fail to implement these revolutionary technologies may lose on productivity and will be highly vulnerable to competition 25 December 2014 Intelligent Manufacturing: A Smart Choice 13
  • 14. 25 December 2014 Intelligent Manufacturing: A Smart Choice 14 Thank You! NOTE: This presentation is a highlight of detailed report: ‘Intelligent Manufacturing: A Smart Choice’. This report is under preparation and will be available soon for publication. All the data used is secondary and indicative in nature. For further details or your suggestions, please contact by email at swadhwa2097@gmail.com. Also, should you need to gain on productivity and visibility of your manufacturing operations, please feel free to contact for consulting services for Business Process Analysis & Transformations, Plant IT, and Automation solutions. +91-9920358360. © December 2014. Mumbai, India.