The widespread adoption of the Internet of Things, connecting sensors, equipment, machines and assembly lines to the network is driving a manufacturing industry transformation. In fact, nearly 30 percent of all manufacturing-related firms are in some stage of piloting, implementing, or expanding IoT deployments. By 2017, an expected 80 percent will have implemented an IoT solution.
Many manufacturers are in the process of figuring out how to deploy a Connected Factory, or perhaps pilot a smaller scale wireless network pilot project in their manufacturing facility. In fact, ARC analyst Greg Gorbach who covers ‘Industrial Internet of Things’ recently wrote a blog, ‘Let’s just try it’, focusing on a panel presentation that I was part of at their recent conference. This blog focuses on the Stanley Black and Decker success story at their Reynosa factory in Mexico and how a ‘let’s just try it’ approach yielded these results: “OEE increased 24%, defects decreased 16%, labor utilization is up from 80 to 92%, and line throughput is up 10%. In addition they now have empowered employees, improved labor ergonomics, reduced labor training, and better visibility for line supervisors.”
If you are in the midst of this decision process on ‘where to start’, I’d like to encourage you to access our webcast on demand titled “IoT: Oppportunities and Momentum in Manufacturing”, A part of the IoT in Action series, this webcast covers key learnings from industry thought leaders from Forrester Research, AeroScout Industrial, and Cisco. These experts, Michelle Pelino from Forrester, Priya Vijayakumar from AeroScout and Chet Namboodri from Cisco discuss what it takes to make the transition to IoT and how companies are reaping the benefits of efficiency, cost savings, better data analysis, and faster time to market. Check out this webcast and let me know what you think.
Recently, Cisco was honored in the Automation World 2014 First Team Honorees list. This award recognizes Cisco as a leader and trusted partner for manufacturing, distributing and industrial companies.
A Paved Path to IoE Value
We’ve heard a lot about the $14.9T value opportunity provided by the Internet of Everything (IoE) with $3.9T or 26% of the overall IoE value residing in manufacturing and industrial (Mining, Oil and Gas, …) industries. The challenge for the market is determining the best and most efficient path to capture that value.
In fact, these solutions are being deployed by leading manufacturers like Proctor and Gamble, GM,Stanley Black and Decker,Sub Zero, and Shell. These forward thinking companies are tightly integrating their entire business value chain from R&D, operations, and supply chain through to customer retention and acquisition sales, and driving the business outcomes that give them a competitive advantage in the market.
Its Not About Products or Solutions … It’s About the OUTCOMES!
This award is not about the ‘speeds and feeds’ on how the Cisco Aironet 1550 Series Outdoor Access Points enables a self-healing, and self-optimizing wireless network that mitigates the impact of wireless interference or how the Cisco Industrial Ethernet IE2000, IE3000 and IE400 Series Switches extends the proven Cisco Catalyst technologies prevalent in enterprise networks to industrial networks for ease of use and best in class performance.
…Stanley Black and Decker to maximize their plant productivity and operational efficiency.
“With the help of the Cisco and AeroScout Industrial solution, we are on our way toward realizing our vision of a virtual warehouse and fully connected factory, with complete visibility and traceability.” –Gary Frederick, CIO Industrial Division, Stanley
…Sub Zero to meet their new product introduction goals and reduce manufacturing downtime.
“With this solution, we found a way to see and discuss very detailed video and images from afar in a highly secure manner. We are now using video collaboration on a daily basis to finalize designs, correct production line issues, work with suppliers, and train installers and servicers.” – Paul Sikir, VP of Engineering, Sub-Zero
My colleagues Bryan Tantzen, Sr. Director -IoE Manufacturing and Todd Edmunds, IoE Architect demonstrate the possibilities of Connected Factory
Cisco Connected Factory is the foundational building block for these transformative business processes that leads to greater innovation and efficiencies throughout the business value chain. We thank our customers, partners and Automation World for partnering with us as we pave the way to IoE value nirvana!
What’s new and trending for the industry? Well, predictions for the upcoming year as a motif is certainly not new but is definitely trending, considering the deluge of pundits concentrating their well-informed thoughts about which industry happenings will emerge through hyperbole and into reality. Amongst go-to industry resources I find myself perusing is LNS Research, who has chosen to break down their Top Three 2015 predictions by industry trend/topic: Industrial IoT; Industrial Energy Management; Environmental Health and Safety; and Asset Performance Management.
In 2015, customer centricity requires higher standards for customer service excellence, efficient innovation, and responsive manufacturing, which motivates 75% of manufacturers to invest in customer-facing technologies.
By 2016, 70% of global discrete manufacturers will offer connected products, driving increased software content and the need for systems engineering and a product innovation platform.
By 2018, 40% of Top 100 discrete manufacturers and 20% of Top 100 process manufacturers will provide Product-as-a-Service platforms.
In 2015, 65% of companies with more than 10 plants will enable the factory floor to make better decisions through investments in operational intelligence.
Before the analyst predictions pushed their way onto my laptop screen, I was asked by Cisco’s press relations team to put forward my top 3 for the industry. So on All Saints Day, before heading out on weeks of travel to China, India, and several of the United States outside my home residence, I produced three ideas that didn’t make it to our PR megaphone. As part of this blog, I’ve decided to share these three predictions, with some relevant observations from my Nov-Dec travels and customer interactions …
Since manufacturers around the globe constantly have to adapt to ever shifting market conditions, any technology that lends a competitive advantage can be a game changer. Implementing wireless on the factory floor can be just that. And our announcement with Rockwell Automation this week at Automation Fair, will make this a no-brainer. The announcement covered enhancements to our joint architecture with Rockwell Automation called the Converged Plantwide Ethernet (CPwE). The Cisco branded version, called Connected Factory, is a portfolio of validated, proven architectures, capabilities and market-leading technologies and services for industrial markets. Factory Wireless is the latest solution offering in this portfolio and delivers unified wireless for industrial applications. Read More »
The appetite for the latest new products and services is growing exponentially driven by the 24 hour, on demand, social media driven, next day delivery expecting, ‘selfie’ posing with the new shiny object, hyper informed consumer. Satisfying the demand for this fast-paced consumer cycle requires manufacturers to move rapidly to stay ahead of competitors and consumer tastes. They must bring interesting and exciting new products to market in a timely fashion, whether they are first to market or responding to a competitor’s new product offerings.
Two specific trends are emerging and transforming how the industry develops, manufactures and meets the demands of the new on demand consumer driving market – crowd sourcing and 3D printing.
Manufacturing Game Changers: Crowdsourcing and 3D Printing
Crowdsourcing is not a new development model. In fact, the open-source model gave us the Linux operating system and the Apache Web server over 20 years ago. But there is one very distinct difference when applying crowdsourcing methodology to a manufacturing process, as opposed to software development, and that is raw material. This is where 3D printing technology is rapidly maturing driving orders of magnitude efficiencies and cost savings into the value chain.
A Printed Car
In fact, a start-up called Local Motors is on the cutting edge of combining crowdsourcing and 3D printing to revolutionize the automobile industry. In a process that Local Motors calls “co-creation,” — also known as “crowdsourcing” — the software allows enthusiasts to post a design for a part that other users in a worldwide community can call up on a browser, see in 3D, take measurements from, and comment on, thus providing a new model and methodology for innovation. Local Motors then leverage 3D printing technology to deploy “microfactories”
Can crowdsourcing and 3D printing produce an electric car?