Arconic Smart ManufacturingFOCAPO/CPC

January 9, 2017

Arconic: Transforming the way we fly, drive, build and power

2

2015 Revenue: $12.5B | Locations: 156 locations around the globe | Employees: 42,250

Arconic Engineered Products and Solutions

Arconic Fastening Systems and Rings

Arconic Titanium and Engineered Products

Arconic Forgings and Extrusions

Arconic Power and Propulsion

EPSArconic Global Rolled Products

GRP

Micromill Products and Services

Aerospace and Automotive Products

Brazing, Commercial Transportation and Industrial Solutions

Arconic Transportation and Construction Solutions

TCS

Building and Construction Systems

Latin American Extrusions

Arconic Wheel and Transportation Products

Source: Arconic

Arconic Technology Center: Core Competencies

Source: Arconic Technology Center 3

Alloy & MaterialDevelopment

Basic Science

Metal & Material ProductionTechnologies

End ProductManufacturing Technologies

EngineeredSurfaces Advanced Analytics &

Modeling

EnvironmentalTechnologies

Product Design,Development

and Manufacturing

Pilot Production/Product Prototyping

Source: Arconic Automation & Smart Manufacturing Team 4

Arconic’s vision for Automation & Smart Manufacturing

RecoveryQuality

Productivity

AnalyticsModelingSimulation

Optimization

PredictiveReal-timeFlexibility

Access VisualizationIntegration

Sensing

Data DrivenDecisions

Right dataRight timeRight form

Right people

Phase 2: Intelligence

Phase 1: Information

Smart Manufacturing

ITInf rastructure.& Applications

(ERP)

Data Historian, Manufacturing

Execution Systems (MES), Equipment Health Management

Advanced Control, Optimization, Operator Training Simulation,

Alarm & Event Management,

Controls – Distributed Control Systems (DCS), Programmable Logic Controllers (PLC),

Safety Instrumented Systems (SIS), Motor Drives

Supervisory Control & Data Acquisition

Field Devices – Control Valves, Pressure, Temperature, Level, Density, Analyzers, Motors, Variable Speed DrivesIn

fras

truc

ture

& S

ecur

ity

Automation

0

1

2

3

4

ISA-

S95

Auto

mat

ion

Leve

ls

Sensors

Real-time Control & Robotics

Advanced Control

Mfg Operations Management

Business Planning, Logistics

5

Competencies critical for developing Smart Manufacturing solutions

Source: Manufacturing Intelligence & Automation Technologies ATC

Process Modeling & Simulation

In-situ Sensing & NDE

Advanced Control & Automation Systems

Visualization

Advanced Analytics& Optimization

Physical Automation & Robotics

Smart Infrastructure

6

Using Advanced Analytics for Energy Forecasting

Source: Arconic Automation & Smart Manufacturing Team

Predicting peaks helpsoptimizeenergy usage

History Forecast

Ener

gy D

eman

d

Time

7

Leveraging internal and external research

RecoveryQuality

Productivity

AnalyticsModelingSimulation

Optimization

PredictiveReal-timeFlexibility

Access VisualizationIntegration

Sensing

Data DrivenDecisions

Right dataRight timeRight form

Right people

Phase 2: Intelligence

Phase 1: Information

Smart Manufacturing

ITInf rastructure.& Applications

(ERP)

Data Historian, Manufacturing

Execution Systems (MES), Equipment Health Management

Advanced Control, Optimization, Operator Training Simulation,

Alarm & Event Management,

Controls – Distributed Control Systems (DCS), Programmable Logic Controllers (PLC),

Safety Instrumented Systems (SIS), Motor Drives

Supervisory Control & Data Acquisition

Field Devices – Control Valves, Pressure, Temperature, Level, Density, Analyzers, Motors, Variable Speed DrivesIn

fras

truc

ture

& S

ecur

ity

Automation

0

1

2

3

4

ISA-

S95

Auto

mat

ion

Leve

ls

Sensors

Real-time Control & Robotics

Advanced Control

Mfg Operations Management

Business Planning, Logistics

Advanced Optimization Techniques

Simulation Tools

Physics BasedModeling

Advanced Analytics Methods

Advanced Visualization

MethodsAdvanced

Sensing/NDE

Advanced Process Control

Source: Arconic Automation & Smart Manufacturing Team

FOCAPO-CPC Smart Manufacturing in Energy Intensive Industries

January 2017

Praxair at Glance

A Fortune 300 company with sales of $10.8 billion in 2015

One of the largest industrial gases companies

Operations in more than 30 countries

26000 employees

One million customers worldwide

Presence Service Industries

Praxair Business

200+ air separation plants worldwide

• A large air separation plant can consume

60+ MW of power/hr

40+ hydrogen plants

Hundreds of smaller plants

Large distribution business

• 500+ trailers in USA alone

Large packaged gas business

• 10MM+ cylinders in USA alone

$1B+ expend in electricity & NG/year

Praxair Strategy on Smart Manufacturing

Faster replicationKPI’s to real time decision making

Descriptive

Diagnostic

PrescriptivePredictive

Variety Velocity Volume“Big Data”

Reactive to proactive business

Information ImpactInsightSensors and

wirelessAutomated monitoring

Intelligent platforms

Advanced control

Business & value chain tools

Mobile data collection

IIoT and Big Data

1 Billon+ measurements per year for a single compressor

Vibration

Pressure/volume

Rod runout

RPM

Data logger

Sensors

500K+ measurements per second

Server per plant & lack of analytics!

Advanced Analytics& visualizationInefficient system

Steam Methane Reformer

Good Partnership with UT & SMLC !

Before balancing

After balancing

Each camera collects millions Ts/min

Model based algorithms to recommend burner fuel valve positions to balance the reformer

Embedded algorithms into a user-friendly, web-based interface

Design TWTAvg TWT (lower level)

17001650 17501600

TWT distribution Max TWT

1550Temperature oF

Next Generation Product Allocation System

Enable integrated production and distribution planning

Network of plants, customers, and 3rd party sources

Site BCompetitor

Supply

Power supply

Pipeline customers

C2

Site A

C3

C1

Liquid customers

Next Gen PAMS Objective: Minimize total merchant liquid network costs by better coordinating sourcing, production, and distribution decisions

Optimizeplant-customer

assignments

Optimize production

plans

Next Gen PAMS Key Challenges

Key Modeling FeaturesProduction: energy contracts and production modes/slates

Distribution: driver contracts and vehicle capacities

Market: electricity and demand forecasts

Horizon: One week to one month at various granularity

0 H(Horizon)

Time interval = hours / days / weeks4 hr 1 day

Key DecisionsElectricity demand & liquid production at plants

Liquid sourcing & transfers to existing / new customers

Liquid inventory targets at plants and liquid depots

Response to outages & spot sales

Resource plan (# trailers & #drivers)

Strategic analysis (e.g. competitor swap, fleet sizing)

Technical ChallengesComputational time bounded by 15 min

Decisions that impact groups with conflicting metrics

Plant vs Cluster Unit production cost

Production vs Distribution

Gaps in production and routing scheduling

Holistic approach to merchant liquid sales and operations

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Providing manufacturing context to the research community

Process Expertise

Source: Arconic Technology Center, Praxair

Production Facilities

Materials

Talent& Tools

ExperimentalFacilities

ExploratoryFreedom

Industry Academia

InnovativeSolutions

Awareness

Talent Marketplace

Collaboration

Environment

ManufacturingChallenges &Opportunities

Research Areas of Interest for Arconic & Praxair

Using technology to maintain competitive edge

• Integrated Computational Materials Engineering (ICME)

• Multi-physics simulation for metals solidification, deformation processes

• Prediction of surface topography in metals manufacturing operations

• Multi-variate optimization for multi-production center flow paths

• Model based process control with uncertainty quantification

• In-situ property & surface sensing in metals manufacturing operations