26 & 27 february 2016 automation & enterprise trends - f&b...

Standards

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Education & Training

Publishing

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National Symposium on

Automation & Digital Transformation of

Food & Beverage Industry26th & 27th February 2016

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G. Ganapathiraman

GM & VP

India & SE Asia

ARC ADVISORY [email protected]

Automation & Enterprise

Trends -

F&B Industry

Basics of Modern Industrial Automation

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About ARC Advisory Group

Established in 1986 in Boston, USA

Global:

US, Canada, Germany, Belgium, Japan, China, India, Brazil, Argentina,

Singapore

Activities:

Focused on Industry and Infrastructure

Corporate Advisory Services,

Market Research Reports, MIRA, STAR & Guides

Forums,

Custom Projects


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Research Domains

Analytics and Big Data

Asset Lifecycle Management

Energy Management and Sustainability

Governance and Risk Management

Industrial Networks and Cyber Security

Industrial Internet and M2M

Manufacturing IT and Cloud Computing

Machine Control and Safety

Operations Management

PLM and Virtual Manufacturing

Process Automation and Safety

Sensors, Transmitters, and Actuators

Smart Cities and Infrastructure

Supply Chain and Logistics

ARC’s Collaborative Management Model


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Aerospace and Defense

Automotive and Heavy Machinery

Chemical, Cement, and Glass

CPG, Food, and Beverage

Electric Power and Smart Grid

High-Tech and Discrete

Infrastructure and Smart Cities

Life Sciences

Logistics and Transportation

Mining and Metals

Oil and Gas

Pulp and Paper

Water and Wastewater

Key Industries Covered


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Top Ten Business Challenges

Achieving and Sustaining Exceptional Business Performance

Increasing Asset Reliability

Reducing Complexity and Customization

Create a Proactive Culture to Capitalize on Emerging Opportunities

Insulate Businesses from Unprecedented External Challenges

Unify Business and Manufacturing with a Common Business Plan

Utilize Automation to Satisfy HSE Requirements

Protect Operations from Cyber Threats

Provide and Sustain a Skilled Workforce

Predicting and Realizing Value from Automation


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F&B Industry Overview

The global food and beverage manufacturing industries produce over US$ 3.5

trillion worth of product.

Manufacturers operate in highly competitive markets, competing against global,

regional, local and private label manufacturers on the basis of price, quality,

convenience, variety, nutritional value, and distribution.

Innovative new products and packaging remain vital to meeting changing consumer

and retailer demands, changing demographics, and local and cultural preferences.

Continued emphasis on product and packaging innovation, adding value to retailers,

and more effective communication through packaging are the keys to maintaining

brand value.

The food and beverage industries are remarkably diverse with many small to large,

simple to complex manufacturing facilities. To further emphasize the size and

diversity, the top 50 food manufacturers' share of global packaged food retail sales

is less than 20 percent.


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Key Questions F&B Manufacturers

are Trying to Answer

How do I address the fluctuating price and availability of commodities?

How do I reduce my energy and other utility costs and ensure the long term availability of

these resources?

How do I find and evaluate new technology that will support innovation and speed time-to-

market?

How do I find and evaluate technology that will improve my manufacturing efficiency and

effectiveness?

How do I come up with new ideas or equipment that allow multi-tasking and that can reduce

change over time?

How do I reduce my manufacturing cycle time?

What are the best metrics to support future manufacturing requirements?

What are the leading best practices in the food and beverage industries, in manufacturing in

general, and for sustainable manufacturing?

What is my competition doing?

How do I support my ever-expanding manufacturing and business automation systems and

networks?

What are other companies doing to improve the skill sets of their operators and staff?


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Major Trends – Global Scenario

Emerging Markets, Urbanization, Changing Demographics

BRIC and CIVETS countries identified as emerging markets due to actual and growing purchasing

power

Urban population growth explosion

Addressing the needs of each demographic will be the key to future success

Changing Consumer Purchasing Patterns

Consumers becoming more value-conscious, health-conscious, and socially conscious

Manufacturers are responding to rapidly changing consumer purchasing patterns with an even

wider variety of product and packaging innovations

Packaging Becoming a Key Differentiator

In response to escalating productivity and efficiency demands from food and beverage

manufacturers, packaging machinery OEMs have begun to embrace global equipment standards

A growing trend toward integration, automation, and standardization is beginning to take hold in

the packaging machinery manufacturing sectors

The Walmart Effect

Mega-size, “power” retailers, at the forefront of recognizing consumer purchasing patterns, are

driving the demand for more sustainable manufacturing practices among their suppliers since they

recognize that these can help them increase their respective market share and lower their

business costs


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Major Trends – Global Scenario

Rising Food Safety Due Diligence and Cost of Quality

Governments all over the world are intensifying their efforts to improve food safety in

response to an increasing number of food safety problems and rising consumer

concerns.

Regulatory Requirements and Global Standards

The requirements for a food safety plan include several elements, each of which

appear to be more comprehensive than current requirements and are likely to drive

investments in new automation and/or IT assets

Drive Toward More Sustainable Manufacturing

Sustainable manufacturing and supply chains practices that reduce waste, minimize

the use of valuable and limited resources, and minimize impact on the environment,

as well as taking on more social responsibility

The Transparent Enterprise in the Information Age

Manufacturers are being held to unprecedented levels of accountability throughout

their supply chain and manufacturing operations


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Drivers of Automation in the

F&B Industry


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Inhibitors of Automation in the

F&B Industry


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Strategies for Success

Mergers, Acquisitions, Joint Ventures, Divestitures Splits, and Outsourcing

Two of the most common reasons for acquiring a company are to strengthen a product line or

gain a distribution channel

Three important trends include a new focus on vertical integration, manufacturers in emerging

economies acquiring companies in developed economies, and bigger are no longer

necessarily better

Expansion of Distribution Channels and Markets

There is a growing number and type of retail outlets. Consumers are less and less restricted

to shopping at supermarkets and power retailer big box stores, which can be miles away.

Portfolio Rationalization and Optimization

PLM

P&G’s Swiffer, Tata Motors’ Nano, Nestlé’s yogurt manufacturing project in India are all

excellent examples of innovative thinking. Each company determined what the consumer

needed, but didn’t have, developed a product, and created a whole new market.

Productivity, Cost Containment, and Customer Satisfaction

CPM/MES, EAM, RPO, Energy saving hardware products, Process Engineering Tools

According to several ARC surveys, the primary drivers for deploying CPM software are to

help improve plant performance, ensure product quality, and improve product tracking and

tracing


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Strategies for Success

Packaging and Supply Chain Optimization

Packaging remains a largely manual, standalone operation lacking the horizontal and vertical integration

needed to properly manage and monitor operations performance or deliver timely and accurate information

to business operations

Food and beverage manufacturers and their technology and equipment suppliers are responding with

New packaging operations management software

New, more efficient packaging machinery with advanced controls and integral robotics systems

Machines and equipment with modern communications capability

The continued development and deploy-deployment of machine control and information standards

Food Quality and Safety

Companies are actively deploying new electronic product quality risk, and compliance management

systems

These include new electronic product quality, risk, and compliance management systems (QRC) and

subsystems that include:

Document management systems

Laboratory information management systems (LIMS)

Real time electronic hazards analysis and critical control points (HACCP) systems

Corrective and preventative action systems (CAPA)

Real time on-line SQC/SPC

Model-based and multivariate predictive controls

Product genealogy and tracking and tracing systems


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The Connected World is on the Horizon

Processes

Systems

Things/Assets

People Information

Cloud, Virtual

Mobile, IoT

Analytics, 3DCollaboration, Social

Together, These Technologies can

Help You Transform Your Business


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Industrial Internet: The New Frontier

Remote

Monitoring & Services

Connectivity

Platform

Advanced Analytics

Apps

Network

Most Industrial IoT Building Blocks are Already in Place


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Industrial Internet Drivers

Source: ARC Industrial Internet of Things Survey

Reduced Downtime and Faster Service are Top Drivers


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IoT is a Business Opportunity to Improve

Machine Utilization

Reduce Operating time to produce work piece

Improve Machine Production Output

Improve Utilization of Labor

Identify operational issues

Identify poorly operating machines

Increase the performance of the operator

Close the loop with product design

Close the loop with CAM systems

Identifying Problems will Allow the Industry to do More

with Less Machinery


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Increase Utility of Machine Tool by

Enabling Operators

Machine utilization continues to rely on operators, but skill level is

declining

Operators often first to identify processes need attention.

Operators are an Intelligent Sensor

Skill

Level

Time

Operators

Maintenance

Technicians

Process Engineers

Today

Quality

Continued workforce reductions make it necessary to capture the knowledge of

process engineers and maintenance workers to maintain quality.


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Empower the Operator

Judgment based on implicit knowledge

Workers’

senses

Skill

Know-howKnowledge

Operation by

skilled workersInspection

target

Low Skilled Operators Need to be

Connected to an IoT Infrastructure to

Improve Performance


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Knowledge Discovery Through Analytics Embeds

Rules in Machinery & Production Systems

Knowledge-info Control Technologies

Knowledge

Know-how

No skilled workers

Extract InferLearn

Data sensing

From machinery

Quantitative

Characteristics

Consistent quality

Non dependence on skilled workers


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Knowledge Discovery & Analytics –

Summing Up

Analytical tools that rapidly recognize trends in production

Shorten the time from problem identification and corrective action

Rapidly identify startup problems to ensure faster time to market

Create an environment that is data driven instilling a consistency

in corrective actions

Decouple operator ability of providing early detection of machine

degradation from manufacturing performance


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Improving Manufacturing Metrics

Analytics Drives Knowledge

Discovery and Creation


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Let’s Change the Mix of Maintenance


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Smart Products

Connected Products

Smart Metrology

3rd Party Services

Plant Systems and Assets

Enterprise Systems

Connected Enterprise

Self-Planning Systems

Flexible Worker Schedules

Access Control Services

Location/Nav Services

Video Presence (Expert Help)

Augmented Reality

Smart Tools

Connected Worker

Collaboration

Smart Components

Smart Logistics SmartCarriers

RFID

Smart Warehouse

Connected Supply Chain

The Emerging Smart Production

Environment (IIoT, I4.0, etc.)

New or Changing …- Software: Analytics, APS, MES/MOM, EAM/CMMS,

LIMS, PAM, Security, etc.- Mobility and enhanced worker connectivity- Remote services; Product ‘as-a-Service’- Smart sensors, assets, network connectivity, cloud

… All along with traditional automation and enterprise systems

IIoT Smart Module

RemoteMonitoring &

Services

Connectivity Platform

Advanced Analytics

Apps

Smart Machines- Connected- Software-defined- Agents, Apps- Sensors e.g. vibration,

ultrasound, infrared etc.

Connected Machine

Smart Containers


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Physical asset with sensors, actuators

Local IoT Compute and Communicate module

Smart Machine

IoT Smart Module

Emerging Option: Connect Big Assets Using New Technologies

Secure Network

The Connected Plant

Plant Operations

CorporatePurchasingEngineering

XYZ Company XYZ Company XYZ Company

Enterprise

Maintenance

XYZ Company

BusinessSystems

New IoT Analytics and Applications

Private Cloud

Machine Mfr.

Secure Connection

Service Provider

Private Cloud

Share Asset Data with 3rd

Parties

Monitor in-service Products

XYZ Company


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IoT Industry GroupsMany focused on network connectivity for home

AllSeen Alliance (2013) – Qualcomm, LG, Haier, Panasonic, Sharp

Industrial Internet Consortium (2014) AT&T, Cisco, GE, IBM, Intel

IPSO Alliance (2008) ARM, Atmel, Ericsson, Freescale, EDF

Open Interconnect Consortium (2014) – Intel, Broadcom, Dell, Samsung

Thread Group (2014) Google/Nest, ARM, Samsung

ZigBee Alliance (2002) Freescale, TI, Philips, Schneider Electric

Z-Wave Alliance (2005) ADT, Ingersoll Rand, Linear Technologies

Smart Manufacturing Leadership Coalition (SMLC)

Industrie 4.0

DMDII


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Industrie 4.0 in the Process Industries

Industrie 4.0 has been conceived from a discrete industry perspective

The process industry has many concepts of Industrie 4.0 in place

Autonomous optimization, controllers are coordinated via the DCS concept (APC, RTO),

integrated supply chain and production optimization, etc.

The process industries has its own buzzwords and initiatives, also visible

at the ACHEMA fair

Modular automation and production technologies, to build small, flexible, reconfigurable

production units (F3 Factory model)

Predictive maintenance strategies (asset health diagnostics/analytics, useful life

prediction, planning predictive maintenance, life cycle cost management

Remote operation (workforce reduction, reduce night and weekend shifts)

Digitalization (seamless engineering, operations and maintenance)

US initiative SMLC (common IT platform, advanced modeling, and more)

Exception is the German process industry (BASF, ThyssenKrupp) have a process

interpretation of Industrie 4.0


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IIoT Impact on Industrial Companies

More Sensors, More Data, More Automation

More Analytics, More Visibility

More Software Applications

New Product Requirements

New Production Equipment Capabilities

Software defined, autonomous, intelligent

New Architectures

Cloud, Mobility, Virtual, Distributed

New Service Requirements

New Customer/Supplier Relationships

New Ecosystem/Supply Chain

New Business Models


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Enterprise Software Business Is Evolving

New Model: Sell Apps that…

run as a service in a private or public Cloud

require monthly payment

can be implemented in weeks or days

can support diverse user ecosystem

are upgraded by the supplier

provide tools for global collaboration


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Automation Systems are Evolving

Attribute From To

Focus Technology Business

Structure Hierarchical Flattened

Cyber Security After Thought Secure by Design

Data Multiple copies Single Version of Truth

Integration Project-based Standards-based

MOM Applications Separate Integrated

Control & Safety Separate Integration Options

Control & Electrical Separate Integration Options

Engineering Design Tied to Hardware/

Software

Late-Binding for

Hardware/Software

Supported By Users Suppliers

Technology is no longer a barrier


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Automation Products & Software

for the F&B Industry

Products What is included

DCSs Distributed control system hardware, software, and related services.

PLCs PLC hardware, software, and related services.

Machine

Safeguarding

Solutions

Machine safeguarding solutions cover all key product segments used in machine safeguarding

applications.

AC Drives Low and high power variable frequency AC drives (inverters, sensor-less, flux vector), peripheral

hardware, drive systems, bundled software, integration, and other relevant software and services.

General

Motion

Control

(GMC)

Motion controllers (single and multi-axis), intelligent drives, servo and stepper amplifiers, servo

and stepper motors, bundled and unbundled software, integration, and other relevant services

provided by GMC suppliers

Unbundled

Software

EAM, PAM, RPO, PET, CPM for process, HMI, and LIMS

Control

Valves

All Control Valve, Actuator, and Positioner (CVAP) hardware, software, and related services.

Transmitters Pressure and temperature transmitters. Includes hardware, software, and services.

Level

Measurement

Continuous ultrasonic level and radar level devices for continuous level measurement applications.

Includes hardware, software, and services.

Flowmeters Magnetic, Coriolis, ultrasonic, and vortex flowmeters. Includes hardware, software, and services.

Analytical Process electrochemical systems (PES) and process infrared systems (PIRS) analytical products.

Includes hardware, software, and services.Reference: Worldwide F&B Study, ARC Advisory Group


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IIoT and Transformational Change

IIoT increases the value of existing infrastructure

More uptime

Better performance

More responsive

IIoT presents a new set of opportunities - and risks – for Operations:

Leverage data and analytics

Leverage 3rd parties for non-core operating activities

Leverage IT organization and technologies

IIoT enables machine makers to reinvent their relationship with

customers

Connected products enables ongoing relationship

Engineering, marketing and manufacturing must collaborate

Business model morphs to Products and Aftermarket Services

PaaS

Unpredictable disruption is predicted

What is your strategy?Embrace Technology Friendly Culture


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3 Thank You!For more information, contact the author at

[email protected] or visit our web pages atwww.arcweb.com

26 & 27 february 2016 automation & enterprise trends - f&b...

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