Transcript
Smarter Manufacturing with the Internet of Things (IoT)
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An approach for how to leverage digital capabilities to transform Processes, Organizations, Strategy, and/or Business Models within their organization or across their value chain
What does digitization mean to manufacturing companies?
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Why now? Technology is having an exponential impact, It’s what’s different with this wave of Transformation- Things are possible now that were not before: Mobile engagement, analytics, cloud
delivery- Technology is PART of the value organizations can deliver, as opposed to just an
enabler- More scalability in transformation today because of the pervasiveness of technology
– nearly everything is connected (or will be)
“Smart, connected products are changing how value is created for customer, how companies compete, and the boundaries of
competition itself.”
What does digitization mean to connected products?
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Reduction in Defects
49%Defect rate down from
4.9% to 2.5%
Reduced Downtime
48%Unplanned
downtime down from 11%
to 5.8%
OEE Improvement
16%Average OEE
improved from
74% to 86%
Improved Inventory
35%Inventory
turns increased from
14 to 19
Reduction in Energy Use
18%Annual energy cost down from
$8.4Mto $6.9M
The Real Economic Value is Immense
New Product Introduction
23%New product introduction cycle time
reduced from 15 to 11
Source: SCM World/Cisco “Smart Manufacturing & the Internet of Things 2015” survey of 400 Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.
What specific business benefits does it provide?
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Where and how do you start?To Capture Value, Manufacturers Must Build Foundational Capabilities of a Digitized Business
Build a Hyperaware Organization
Ensure quality and uptimeRespond to customers and end users in real time
Achieve unprecedented standards of excellence
Make InformedDecisions
Transform data into insightGenerate value by gaining insights from dataEx: KM & collaboration platforms, dashboards, analytics
Execute Fast
Enable innovation and business-model changeBreak down silos between IT/OT and engineering/services (ex: preventative maintenance) Outpace the competition
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Where and how do you start? Digital Transformation Capabilities Required
Analyze / Distribute
Personalize/ Predict
Interact / Collaborate
- Real time accessibility and Visibility into info and insights.
In order to be able to deliver on Digital Business Transformation, organizations need to excel at a number of capabilities including:
- Providing context and recommended action
- The ability of people/customers/value chain to collaborate, communicate, and make better decisions
Capture/ Collect
- Organizations need to become Hyperaware by increasing their ability to sense, monitor, and identify
Act thru Automation - Automate where possible (closed loop)
SECU
RITY
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Off-Line Factory Communication, Collaboration, Data
Strategies & Platforms
Connected Factory
Analytics & Big DataVirtualization & Compute
Connected Machines Factory Collaboration
Location-based Services
Connected Enterprise
Value Chain Collaboration
Design & Service Synchronization
Value Chain Orchestration
Digital Manufacturing Maturity Model
+ 16% OEE
- 35% Inventory
+ 23%
NPI
- 49% Defects
- 48% Downtim
e
Capture/Collect
Analyze/DistributePersonalize/Predict
Action (Automate & Collaborate)
Hyper- Aware
Informed
Decision
Making
Fast Executio
n
Where and how do you start?
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Start w/clear understanding of business strategies across the entire value chainBrainstorm areas of improvement use-cases, develop hypothesis statements w/business
impactsPrioritize and group common use-cases with clear, measureable business outcomesDevelop phased, balanced approach (people, process, technology)
Where and how do you start?
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Client Examples
“We have cases where downtime is costing over $20,000 per minute. The ability to predict service requirements will have a tremendous impact.”
- Rick Schneider – NA CEO FANUC Robotics
https://www.youtube.com/watch?v=DN4duKoNsak
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Complexityinhibits growth
productivity Enterprise Resource Planning Transition
Define capabilitiesfor growth &value capture
Business Architecture
2013 2014
IOE PLATFORM
Breakthrough Value
2012
Collaboration
ApplicationsEnterprise Resource Planning (ERP) System
Data Management
Client Examples – Cisco Supply Chain
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Internet of Things
Edge Computing
Data Analytics
Cloud Collaboration
Mobility
Energy Management AutoTest Predictive Quality Universal Order Visibility Supplier Collaboration VMES for Quality Intercloud Pilot Augmented Reality Warehouse Mgt Build Metrics Build/Ship RevenueShip Metrics Distribution and Inventory Visibility Innovation
CONNECTED Supply Chain CONNECTED Factory
CONNECTED Supplier CONNECTED Customer
CONNECTED Warehouse
Cisco ioE Enabled Supply Chain
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