Smart Manufacturing, Manufacturing Intelligence and Demand-Dynamic Performance

Smart Manufacturing Leadership Coalition (SMLC)

Jim Davis – UCLA; Tom Edgar – UT-Austin; Jim Porter – retired DuPont

John Bernaden – Rockwell; Mike Sarli – retired ExxonMobil

FOCAPO 2012/CPC VIII

January 11, 2012

Building the Science of the Manufacturing Enterprise

Smart Manufacturing Leadership Coalition (SMLC)

It’s a business and technological journey not a technology

SMLC Implementing 21st Century Smart Manufacturing

• Air Liquide• Alcoa• Applied Materials• CH2MHill• Cisco• Dow• DuPont• Eli Lilly• Emerson• ExxonMobil• Ford• General Dynamics• General Mills, Inc.• General Motors• Honeywell International• Invensys• Kraft

• American Council for an Energy Efficient Economy

• American Institute of Chemical Engineers • Council on Competitiveness• Institute of Paper Science & Technology –

Georgia Tech• Manufacturing Institute• National Center for Manufacturing

Sciences• National Council for Advanced

Manufacturing• Putman Media• Walt Boyes – Spitzer and Boyes • Jim Porter – President Sustainable

Operations Solutions - Chief Engineer and Vice President Engineering and Operations DuPont Company (Retired)

• Denise Swink - Consultant

• Merck• Microsoft• Oakridge National Laboratory• Owens-Corning• Procter & Gamble• Pfizer• Praxair• Rockwell Automation• Sematech• Carnegie Mellon University• Purdue• Georgia Tech• RENCI/North Carolina

Chapel Hill• UCLA• University of Texas Austin• U. Wisconsin Milwaukee

School of Management

Smart Manufacturing Leadership Coalition (SMLC): Relevant Timelineshttps://smart-process-manufacturing.ucla.edu/

Advocacy & National Alignment• Office of Science and Technology

Policy and Whitehouse interactions (2010-2011)

• Interactions with DOE, NIST, DARPA, DOD, NSF (2010-2011)

• Council on Competitiveness (2010-2011)

• Obama’s AMP Announcement (1/24/11)

• Secretary of Commerce and Director of NEC White House of Manufacturing Policy 12/12/11

• AMP National Program Office to be in NIST (12/15/11)

• NIST workshop on U.S. Competitiveness in CPS 3/13/12

Development & Funding• September, 2006: Cyberinfrastructure in

Chemical and Biological Systems (NSF)• April, 2008: Workshop and Technology

Roadmap (NSF grant)• SM Operations and Technology Report in

November 2009 (NSF grant)• September, 2010: Implementing 21st Century

Smart Manufacturing Workshop (SMLC-DOE)• June 24, 2011Implementing 21st Century Smart

Manufacturing Report (SMLC and DOE)• August 2011 Awarded NSF RCN: Sustainable

Manufacturing Advances in Research and Technology (SMART) Coordination Network

• October 2011 SM Public-Partnership Proposal at OSTP request

• November 2011 SMLC DOE proposal emphasizing energy productivity

• January 2012 DOE SBIR SMLC Platform for fossil fuel test bed

4

5

Global Threshold Changes in Manufacturing

• Innovation and customer demand-dynamics will be key to economics– Faster and more product transitions– Operating globally but responding to local markets with resiliency

• Vertical organizations will give way to B2B interactions among small, medium and large enterprises

• EH & S compliance will increase and risks of non-compliance will increase• Social conscientiousness will be heightened while demands of a growing world

population increase• Pressure to manage risk and uncertainty and the need for radical improvements in

energy and raw materials productivity will heighten• Energy, environment, sustainability and safety performance will become significant

economic and competitive advantages

Dynamic demands accelerating on manufacturing

6

Global Threshold Changes in Manufacturing

• Existing assets need to become globally competitive while installed based runs its investment life cycle

• Capital and operating costs need to lowered• Performance will need to be responsive to multi-faceted objectives• Manufacturing workforce with advanced training and skills will be the

key competitive advantage• Job growth will not be with unskilled, high labor oriented

manufacturing

Dynamic demands accelerating on manufacturing

Advanced Manufacturing

2011-2012 Critical Issues Report Manufacturing Executive Board

• The Adaptive Organization• Global Value Chain Optimization• The Innovative Enterprise• Factories of the Future• Next Generation Leadership and

Culture• The New Workforce• The Sustainability Imperative• Game-Changing Technologies

President’s Council of Advisors on Science and Technology• Advanced manufacturing refers to a

family of activities that (a) depend on the use and coordination of information, automation, computation, software, sensing and networking and (b) make use of cutting edge materials and emerging capabilities enabled by physical and biological sciences.

• AM involves both new ways to manufacture existing products and especially the manufacture of new products emerging from new advanced technologies.

Raising the Level of Abstraction

If Smart Manufacturing is such a smart idea why aren’t companies already doing it?

Already Investing in Information Technology and Automation for 40 year

What is Smart Manufacturing?

Business (Collaboration, Broader MetricsReal-time Decisions)

Technology(Horizontal & VerticalPervasive)

Workforce(Innovation & Broad-Based)

OrganizationalMindset

21st Century Smart ManufacturingData

Analyze

Model

Apply

• Demand-dynamic economics keyed on the intelligence of the ‘customer’

• Coordinated enterprise responses throughout the entire manufacturing supply chain

• Predictive, preventive

• Integrated computational materials engineering

• Performance-oriented

enterprise, minimizing energy and material usage and maximizing environmental sustainability, health and safety and economic competitiveness

Dramatically intensified application of manufacturing intelligence using

advanced data analytics, modeling and simulation to produce a fundamental

transformation to transition/new product-based economics, flexible

factories and demand-driven supply chain service enterprises

SMLC Priority: Situational Awareness performance tools across the enterprise to manage dynamic production, use, and storage of essential resources (energy, water, air)

11

Supply ChainDistribution Center

Customer

Business Systems, ERP

an interconnected world… voice, data, mobile, etc.

Smart Grid

Smart Factory

Modern, smart factories will be interconnected with supply chain, distribution and business systems

Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

SMLC Priority: Production and Demand-Dynamic Supply Chain Efficiency - At Scale Virtual Supply Chain Planning, Computational Materials Engineering and Product Tracking & Traceability Tools

Manufacturing Plant

Supply Chain

Customer

Distributor

Farming

Mining

SMLC Priority:

New Productivity/Efficiency Metrics – Change from output/input productivity measures to customization, flexibility, responsiveness, energy performance and reuse

• Customers “pushing” demands• Flexible production of smaller volumes of custom products • Less vertically integrated• More information driven and automated

Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

Smart Manufacturing is the Application of a Manufacturing Industry Internet

13

Supply ChainDistribution Center

Customer

Business Systems, ERP

Smart Grid

Smart Factory

Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

New Degrees of freedom forPerformance, efficiency and productivity

Anticipate, plan,manage riskacrosssuppliers

Merging actionablebusiness &Operationsinformation

New formsequipmentbenchmarking

Tracking &traceability

New real-time globalperformancemetrics

Smart Manufacturing is Analogous to Healthcare IT

14

PatientPharmacies

Treatment

Facilities

Research & Hospitals

Patient Self-Care

Caregiver facilities

Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

Anticipate, plan,manage riskacrosssuppliers

Merging actionablebusiness &operationsinformation

Tracking &traceability

New real-time globalperformancemetrics

Enterprise Healthcare Record for each Patient

Integrated Intelligence of the Patient

Application of Health Care Intelligence

How do we proceed?

Excellent Work Underway

Technology Roadmap Report (2009)

1. Motivating Smart Process Manufacturing

2. The Business Case and the Business Transformation

3. The Technical Transformation

4. The Smart Process Manufacturing Roadmap

5. The Path Forward

17

18

SMLC Program Agenda

Lower the cost for applying advanced data analysis, modeling, and simulation in core manufacturing processes

Build pre-competitive infrastructure including network and information technology, interoperability, and shared business data

Establish an industry-shared, community-source platform and associated software that functions as an “apps” store and clearinghouse

Create and provide broad access to next-generation sensors, including low-cost sensing and sensor

fusion technologies Establish test beds for smart manufacturing concepts and make them available to companies of all

sizes

Achievable Meaningful Use Goals and Magnitude of Impact

• Demand-driven efficient use of resources and supplies in more highly optimized plants and supply

– 80% reduction in cost of implementing modeling and simulation– 25% reduction in safety incidents– 25% improvement in energy efficiency– 10% improvement in overall operating efficiency– 40% reduction in cycle times– 40% reduction in water usage

• Product safety – Product tracking and traceability throughout the supply

• Sustainable production processes for current and future critical industries– 10x improvement in time to market in target industries– 25% reduction in consumer packaging

• Maintain and grow existing U.S. industrial base– Environment for broad innovation– 25% revenue in adjacent industries– 25% revenue in new products and services– 2x current SME’s addressing total market– More highly skilled sustainable jobs created

20

2104/18/23Smart Process Manufacturing

ResilientProactive Plant Operations

Knowledge-enabled

Workforce in Global Operation

SmartPlant

Sensor networksexchanging real timedata

Risk & Uncertainty Mgmt

Networked situationalawareness &management

Smart Plant Operations: Visions, Progress and Challenges, AIChE J., Nov 2007

Predictive/fault-tolerantcontrol

Network & cyber securityDistributed

MPC stabilitybased-control

Operations

Networkedmonitoring/detection/control Business-operation

Performance Metrics

Higher granularitymodeling & sensing

Knowledge to Operating Models

The Smart ProcessOperation

Self awareSelf healingUnits/systems

Distributed intelligence

Process modelsself-evaluate performance

Active Management and Innovation

• Integrated performance metrics driving bottom up local and global decision making

• Involved workforce making decisions that drive performance and objectives and not tasks

• Explicit management of risk and uncertainty• Distributed business and operating

intelligence through integrated information• Distributed intelligent manufacturing and

innovation

Let’s raise the level of abstraction

Let’s define new, integrated and global performance metrics

Let’s define the minimum data, analytics, and modeling, that produces new degrees of operational freedom

Let’s establish a process of building and applying Manufacturing Intelligence in increasing levels of sophistication

s

META 3Supply Chain & Supplier

Network

META 3Supply Chain & Supplier

Network

Meta 1 Demand-Dynamic

Customer Specifications

Meta 1 Demand-Dynamic

Customer Specifications

Smart Manufacturing Platform

•Physical Test bed• Virtual/Physical Real Time Sync

• Community Source Model & Simulation Platform

• Manufacturing Enterprise Integration Practices

Smart Manufacturing Platform

•Physical Test bed• Virtual/Physical Real Time Sync

• Community Source Model & Simulation Platform

• Manufacturing Enterprise Integration Practices

Meta 4 Digital Engineering &

Integrated Computational

Materials Engineering

Meta 4 Digital Engineering &

Integrated Computational

Materials Engineering

Meta 2 ERP Performance

Metrics: Dynamic Energy, Sustainability, EH&S, &

Economic Planning, Management and

Optimization

Meta 2 ERP Performance

Metrics: Dynamic Energy, Sustainability, EH&S, &

Economic Planning, Management and

Optimization

Fourth Layer Difficult ProblemManufacturing Enterprise Integration Practices

Third Layer Difficult ProblemPrecompetitive Factory and Supply Chain Community Source Modeling & Simulation Assimilation Platform

Top Layer Difficult ProblemPhysical Test Bed/ At Scale Factory and Supply Chain Demonstrations of Applied Manufacturing Intelligence

Second Layer Difficult ProblemReal-time Syncing Virtual Models and Physical Operations

11/1/11

26

SME’sSME’s

• Information• Training• Expertise• Access

• Information• Training• Expertise• Access

Standards and Reference Architecture

•IT Provider Partners

Standards and Reference Architecture

•IT Provider Partners

Key Development Resources

• Universities• NCMS• AICHE• Consultants• Consortia

SMLC Industry-Driven Processes

Energy Performance Metric

SMLC Industry-Driven Processes

Energy Performance Metric

Smart Manufacturing Platform

Community Source Market Place

Workflow Toolkit& App DevelopmentProcesses

Shared Market Space

Collaborative Space

Pre-competitive& Competitive

Hub

Pre-competitive& Competitive

Hub

Test BedManufacturer

& SupplierCrosslinking Engagements

Test BedManufacturer

& SupplierCrosslinking Engagements

UCLA

Apps StoreCloud ServicesConsultation

Apps StoreCloud ServicesConsultation

Outreach Training web / tools materials

Outreach Training web / tools materials

Open &Community

Source Resources

Open &Community

Source Resources

Business CollaborationsBenchmarking

Business CollaborationsBenchmarking

UCLA

Nimbis

Applying the SM Platform

Ref Arch Data Collection

Manufacturer

Ref Arch Data Collection

ManufacturerManufacturer

Real-timeManufacturer

Real-timeManufacturer Data

WarehouseManufacturer Data

Warehouse

Energy Productivity Management Data & Modeling WorkflowEnergy Productivity Management Data & Modeling Workflow

Data Validation

App

Local/GlobalEnergy Productivity Metric

Dash Board

Process sensor data

Ref Arch Data Collection

Supplier

Ref Arch Data Collection

Supplier

Data and Computation Management Dashboard

EPMApp from

Toolkit

Risk ScenariosApp

Reduced Order Model

ScenariosApp

Real-time Action & Risk

SupportApp

SM PlatformData and

ComputationServices

Encrypted links

Linked Apps to Form Function

SM Platform Apps Store, Shared Market Place, Distribution Hub

Compute PlatformCompute Platform

HTTPS/VN

C/VPN

“App Store”

Buyer Account

HTTPS/VNC/VPN

Buyer Dashboard

Portal App

AuthenticatedBuyer

Internet

Cycles Software

HTTPS/VNC/VPN

AuthenticatedSeller

Seller Account

Seller Dashboard

Remote Desktop

Portal Extensions

Data Comp

PortalBaseline Services

Storage

IP, Restricted, Marketplace

UCLA

Community, Open source

New Technology R & D

• Economic, business, performance collaboration models• Education and training aimed at science, engineering and operating practices for Smart

Manufacturing• Static and real-time modeling architectures redesigned for apps store-like distribution,

competitive and pre-competitive management and managed crowdsourcing• Richer lower cost sensing and actuation technologies combined with richer real-time analytics to

build manufacturing intelligence• Tools and rapid evaluation procedures for the ‘right’ rigor and right ‘real-time’ for a model• Projection of global and local decision and/or action risk• Making control, optimization and planning indistinct while distributable• Accommodate modern processor architectures• Computer architectures for assured real-time actions with greater levels of active management• Real-time synchronization, verification and validation of enterprise data• Human centered dashboards with new expectations for decision-making

Old Traditional Factory• More jobs: labor-intensive• Lower output and productivity• Lower quality products• Lower paying unskilled jobs• Higher risk working conditions• Higher environmental impact• Higher production costs• Rigid, high-volume production• Longer time-to-market• Socially optimized (Six Sigma)

New Smart Manufacturing Plant• Less jobs: automation-intensive• Higher output and productivity• Higher quality products• Higher paying skilled jobs• Safer working environment• Less waste, resource use• Lower production costs• More flexible customization• Faster time-to-market• IT-optimized (models, simulation)

Copyright © 2011Rockwell Automation, Inc. All rights reserved.30

Attributes of a Smarter Manufacturing Sector

21st Century Manufacturing EcosystemMuch Greater 3x to 15x+ Economic Multiplier - Smart Manufacturing: The Essential Nucleus For SME’s & The Service Economy

100% automated Intel Chip FAB – Some engineers and technicians

Smart Factory

Innovation and specialties 25% automated 75% labor

Small Businesses

Components and other suppliers 50% automated, 50% labor

Medium-size Manufacturers

Financial, IT Services, Consulting, etc. 100% labor

Services & Support Community colleges and Universities, healthy knowledge workers, public-private partnerships

Education, Health Care and Government

As Factories Get Smarter, More Jobs Surround Them

Smart Grid

Customer

EnterpriseBusiness

System

Suppliers

OEMMachine Builders

DistributionCenter

Factory

SMLC Commitment to a Comprehensive Approach

• Higher value products• Improved quality• Zero downtime• Increased equipment

life / utilization

• Improved safety• Reduced energy

and emissions• Highly sustainable

• Higher product availability• No inventory• Product lifecycle

management

ENTERPRISE OPTIMIZATION & SUSTAINABLE PRODUCTIONENTERPRISE OPTIMIZATION & SUSTAINABLE PRODUCTION

ENERGY, SUSTAINABILITY, EH&SENERGY, SUSTAINABILITY, EH&S

AGILE DEMAND-DRIVEN SUPPLY CHAINSAGILE DEMAND-DRIVEN SUPPLY CHAINS

Smart Manufacturing

http://smart-process-manufacturing.ucla.edu/