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Mitigating Security Threats in Manufacturing with Cisco’s Connected Factory

Today’s manufacturing industry faces an aging industrial machinery infrastructure that presents huge security challenges poised for continued growth in the coming months and years. Increasingly, manufacturers are beginning to view data security as a top barrier to realizing the value of the Internet of Everything (IoE). In fact, the steady growth of the IoE is creating efficiencies and cost savings across the entire value chain, presenting a $3.9 trillion value opportunity for manufacturers. However, this exponential growth of connections and integration between people, processes, data, and things also presents added security risks and threats that are often complex and multifaceted.

Here are a few of the implications and impacts of security breaches for manufacturers:

  • Theft or Loss of proprietary or confidential information and intellectual property
  • Downtime in factories and lost productivity – potentially very severe
  • Violation of regulatory requirements
  • Loss of public confidence and brand
  • Economic loss
  • Impact on national security

According to Symantec, the manufacturing business sector was the most targeted in 2013, accounting for 24% of all targeted attacks. Of those attacks, industrial networks topped the list of systems most vulnerable to cybersecurity issues. Additionally, the number of attacks on industrial supervisory control and data acquisition (SCADA) systems doubled from 2013 to 2014. Unfortunately for manufacturers, 91% of breaches took just hours or less to perpetrate, yet more than 60% of attacks took months – or even years – to detect. This considerable gap gives cyber attackers plenty of opportunities to access a manufacturer’s trade secrets and sensitive production data.

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Solving Manufacturing Complexities through Data Analytics: Part Two – Implementing Data Analytics

Data analytics has been an integral part of manufacturing management for most of its history. However, analytics has undergone both evolutionary and revolutionary changes over the decades with the advent of information technology and digital data gathering and analysis. In Part One of this series, I took a look at the evolution behind data analytics and applications in Manufacturing. Part Two provides insights into implementation of analytics in manufacturing.

Part Two: Implementing Data Analytics in Manufacturing

Acquiring Data

The first step for data analytics in manufacturing should be to implement solutions that connect manufacturing equipment, sensors and controllers to a converged network so data can be captured, moved and stored for analysis in an appropriate manner. While manual data entry is common and will probably continue to some extent, automation is critical to ensure that data is captured in real time, accurately and in the right format to enable analytics and decision making.

The amount of data available on the manufacturing plant floor has increased by many orders of magnitude over the past decade, however analysis and application of such data in decision making has not kept pace. It is this space of analytics that is now driving adoption of ‘Internet of Things’ (IoT) technologies such that IoT and analytics have now become intricately linked to each other.

Going beyond just analyzing data from IoT and expanding it to include the impact of this data on the people, skills, business processes and linking all of these disparate elements into a single business-focused system is referred to as the ‘Internet of Everything’ (IoE). Manufacturers are only now just starting to take this wider perspective to analytics and the application of analytics in manufacturing. As manufacturers begin to rely more on data for analysis into business processes, they must also consider some challenges that may arise during implementation.

Virtualizing the Data

Today’s manufacturers need the ability to integrate all data from various departments/locations, which has proven to be difficult in the past. The old approach consisted of building a data warehouse where data was extracted from multiple sources, transformed (normalized, processed, condensed) and loaded on a periodic basis into a central data warehouse. Today’s manufacturers need data that can be used in real-time to make decisions, not data stored in a warehouse for historical analysis. A steep increase in the use of cloud storage for such data warehouses has led to data being stored across different clouds (mix of public and private) on different platforms. Bringing all of this together to yield meaningful results without moving all the data physically into one data warehouse has been a challenge. Data virtualization solutions now enable accessing data that is physically in different databases and geographic locations as if it were physically in a single data warehouse. This has becomes even more critical with the large volumes of big that are typically unstructured and not easily amenable to traditional data warehousing approaches.

Integrating analytics into business processes

Data analytics cannot be a standalone activity done in a data center by a team of experts. It has to be integrated into the key business processes such that analytics are focused only in areas that provide business value and are available to decision makers at the right time in the right place. Important questions to be considered when implementing analytics solutions are:

  • How will the data be used?
  • Who will use it and how often?
  • What kind of analysis is needed?

Responses to these questions will define your strategy and dictate how analytics are integrated into the business. Implementation models could include

  • Data acquisition from sensors and analytics at the ‘Edge’ to feed-back to control system or human operator. The data is acquired and moved to a computing platform on the switch (in the manufacturing cell network) or to a data center in the manufacturing plant where it is processed and the result is used to drive the manufacturing process through control signals or visual / audio signals through the Human Machine Interface (HMI). Example would be a high definition camera taking 3D images of the product and comparing it to standards to identify quality defects in real time to eject the defective product or stop the machine or just sound an alarm via the HMI for the operator to take action.
  • Data capture from sensors and equipment for periodic reporting. The data is acquired, moved to a data center and analysis / reporting is done in conjunction with other databases on a periodic basis. Application would be machine uptime and speed data acquired in real time and used to report Overall Equipment Effectiveness (OEE) in conjunction with data like product mix, raw material / packaging source etc to identify performance issues and improve OEE.
  • Adhoc analysis of data acquired from sensors, done offline, after data has been normalized and moved to a data center. Typical use case would be analysis in support of six sigma/quality improvement projects where data gathered from the machine / production system is analyzed to support (or reject) hypotheses for problem resolution by shop floor employees.
  • Data capture and streaming out to equipment vendor in real time (machine as a service) where the machine vendor monitors performance of the machine parts and is able to take remote corrective action or schedule predictive maintenance or bring in appropriate spares just-in-time to ensure machine up-time and performance per contractually agreed levels. In such cases, security becomes a key issue too.

Implementation challenges

Implementation of data analytics should consider the following:

  1. Appropriate manufacturing cell and zone network to ensure high speed, quality of service and reliability. This is absolutely critical and is a huge challenge for manufacturers give the proliferation of standards and protocols in use on the shop floor and the lack of convergence of the networks.
  1. Moving and storage of data and location of the data center. This becomes very critical when handling big data in large volumes and high velocity and the decision on whether data center should be co-located in the manufacturing plant or remote/cloud can drive performance and cost of the solution.
  1. A comprehensive strategy and implementation approach focused on the entire data chain and not just on the final analytics and visualization. Typically analytics is seen as using algorithms on data and developing reports/visualization with little focus on acquisition, movement, storage and organization of the data. What appears in the user interface is the most visible but not necessarily the most important or most challenging aspect of implementation.

How can Cisco help your manufacturing organization improve efficiencies and gain valuable insight through data? Visit our solutions page to find out more and share your thoughts with us in the comments section below. Stayed tuned for Part Three of this series where I will share experiences in implementation and detail how analytics and IoT are working together to bring results in manufacturing.

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Solving the Manufacturing Workforce Crisis of 2030

Sir James Dyson, British inventor, industrial designer and founder of the Dyson Company once said, “Manufacturing is more than just putting parts together. It’s coming up with ideas, testing principles and perfecting the engineering, as well as final assembly.” He’s absolutely right; manufacturing is more than just manual labor on a shop floor somewhere. Today’s manufacturing jobs require a new wave of skilled employees, but where are they?

It amazes me to think about how far manufacturing in the U.S. has come since the days of the industrial revolution and all the way up through the 1950’s. Fast forward to today and you’ll see a manufacturing industry that now relies on advances in technology to drive production and help fuel a global economy. In fact, my colleague Chet Namboodri in his blog ‘Manufacturing Predictions for 2015’ mentions that advancements and adoption of industrial robotics will rapidly advance across all manufacturing segments. However, the longstanding perception of manufacturing has been one of harsh work environments, something that is no longer the case in many manufacturing plants. This outdated perception must be laid to rest and changed amongst a new, younger generation of tech-savvy workers because it’s discouraging qualified candidates from pursuing lucrative careers in manufacturing and directly impacting production in the U.S., a trend that could cause a largely diminished manufacturing workforce by 2030.

The New Manufacturing Environment

Overall, the manufacturing industry is more productive, efficient, and poised for new technological advances made possible by the Internet of Things (IoT). In the 1950s, long, tedious business and production processes created a labor-intensive manufacturing industry. Employees worked in difficult and hazardous environments every day. But as technology advanced, so did manufacturing. A lot of manufacturing jobs are no longer traditional assembly line roles and an industry once driven by manual labor is now moving forward at a much faster pace thanks to machine automation, information technology, and increased plant floor communications. Operators now require advanced knowledge of computers, software, science, and math to program machines that control manufacturing processes.

The manufacturing industry in the U.S. faces a workforce crisis as a widening skills gap is created as many workers reach the age of retirement. If current trends continue, U.S. manufacturers will be unable to fill 2 million manufacturing jobs by 2025, due to a worsening shortage of required skills, according to a report by the Manufacturing Institute and Deloitte. Today, there are really good, well-paying positions that need to be filled across the manufacturing industry. Many students and new graduates fail to consider manufacturing on their quest to find a career path – something that must change. Manufacturers must begin engaging local high schools and trade schools to enhance pipelines of Science, Technology, Engineering and Mathematics (STEM) trained graduates and developing strategies to attract qualified candidates as they enter the workforce.

Girls For IoT Innovation

Attracting the Next Generation of Manufacturers

The next generation of workers expects to always be connected. They have multiple mobile devices and interact with peers in new ways all the time. This inherent skillset can be a great asset to the manufacturing industry and with the advance of IoT, there will be a strong need for a STEM ready workforce. To generate interest in STEM and perhaps a career in manufacturing, educators must start early. Starting in elementary school, up through high school and college, career relevant math, science and computer instruction should be made available to a wider audience of students across age groups, demographics and geographies.

Not only are more skilled and tech-savvy workers needed put part of the manufacturing skills gap is the result of a lack of women in manufacturing. In fact, women have become an underutilized resource in STEM careers in general – something else that also must change. Pa. Women make up half of the U.S. workforce, but less than a quarter of manufacturing (STEM) jobs are held by women. How can manufacturers attract women to the industry and fill the current skills and gender gaps?

It starts with education. We need to educate young women about what a career in manufacturing is actually about, without continuing the negative perception of work environments. We can do this by supporting STEM education with programs that give kids practical hands-on experience. This is best accomplished when manufacturing industry leaders and organizations reach out to students and new grads, and encourage government leaders to invest in the right kind of training experiences in school curriculum.

IoT World Forum Young Women’s Innovation Grand Challenge

Cisco is helping to educate young women about STEM careers through the IoT World Forum Young Women’s Innovation Grand Challenge . The initiative is a global innovation challenge open to young women between the ages of 13-18. The aim of the challenge is to recognize, promote, and reward young innovators as they come up with new uses for Internet of Things technologies and is open now through May 18th, 2015. You can learn more about the IoT World Forum Young Women’s Innovation Grand Challenge here.

Whether next-generation workers seek a traditional college experience or vocational schooling, students must be exposed to the various options and training opportunities that are available in the manufacturing industry. Organizations should position themselves as go-to resources for prospects looking for jobs in manufacturing. They should offer internships and be able to connect future employees to employers. Hosting workshops, seminars, and conferences are also good forums to make connections.

Through these types of experiences, we can allow students and educational professionals to build passion for the manufacturing industry. In turn, the necessary skillsets will follow. The next-generation techniques and technologies on the plant floor will entice the new age of tech-savvy students. We need solutions now for the workforce of tomorrow and we are the advocates of manufacturing’s next generation workforce. Let me know your ideas in the comments below on how we can all make a difference on this issue.

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2015 Manufacturing Industry Predictions

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.

Another annual favorite that I’ve blogged about in the past—including commentary on Cisco relevance—is IDC Manufacturing Insights, who this year took on a refreshing, new format entitled IDC Futurescape: Worldwide Manufacturing 2015 Predictions. The team of IDC manufacturing practice analysts quantify and qualify their ten most critical imperatives to be addressed by global manufacturers in 2015 and beyond—based on the coalescence of technology and line of business interests—including a few that are very pertinent to Cisco’s Internet of Everything (IoE) initiatives:

  • 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 …

Read More »

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Get Ahead of the Curve in 2015: Invest in IoT

As the holiday season gets into full swing, executives like you are polishing off strategic and operational plans for the New Year. For many manufacturing companies, 2014 was a good year, for some outstanding, and most manufacturers are optimistic for more of the same in 2015. According to MAPI’s US Industrial Outlook, “manufacturing will continue to grow faster than the overall economy,” with 2015 growing at a higher rate than 2014.

Because manufacturers are looking to get ahead of this growth curve and set the stage for competitive differentiation and advantage in 2015, you are utilizing budgets remaining from 2014 to make smart investments now in new technologies, before the year comes to a close. With strategic investments in operations or R&D/engineering, companies position themselves to be more agile, productive and competitive while the economy slowly but surely continues to strengthen. In an Industry Week report, “Manufacturers are optimistic about their businesses as well as the economy as a whole, and are investing accordingly … Following a profitable growth strategy, they are controlling costs while introducing new products, increasing sales from existing customers, and leveraging data to make smarter business decisions.”

In recent conversations with a few of my Cisco colleagues who happen to be 20+yr Manufacturing / OT (Operations Technology) veterans, these industry gurus describe how they counsel manufacturing clients during the transitional holiday season. Steve Gansen points out that for many companies, budgets need to be expended this calendar year-end (‘use it or lose it’), which presents a great opportunity to change the prioritization for projects. “Many of my customers see this as an opportunity to reprioritize projects and drive budget to improve R&D or product engineering and offerings.” (His comments reminded me of the Sub-Zero’s innovative investments in their product development, NPI and processes.)

Jim Fledderjohn and Dwayne Edwards add that there are other considerations for a variety of Internet of Things (IoT) proof-of-concept (PoC) projects for production environments and engineering programs that present incremental, re-directional opportunities at year-end. From video surveillance to energy management, to factory wireless and plant virtualization, there are many compelling use cases that can be easily ‘piloted’ to deliver immediate business outcomes and measurable ROI. In fact, an option recently announced at Automation Fair is Cisco Services Factory Starter Kit, a fast-track, turnkey PoC package of wireless capabilities for your plant environments.

Jim further describes, “Piloting an IoT project on a small scale lets manufacturers test out a concept in their environment and puts them in a better position to win budget and additional investment in 2015.” Particularly in the US—where according to the latest ISM Report On Business for November, the manufacturing sector expanded for the 18th consecutive month—momentum in the industry just keeps building. And considering manufacturing technologies that include embedded intelligence and IoT, according to the Association for Manufacturing Technology (AMT), orders for 2014 are showing growth of >5%.

Are YOU planning end-of-the-year investments in IoT? Let us know what you think in the comment block below. Thanks for reading.

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