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Welcome to Fonterra‘s IoT journey

We’re a co-operativeOwned by 10,000Farming families.

We’re united by a fundamental belief in the power of dairy to make a difference.

GRASS

MILK POOLS

COLLECTIONPROCESSING

PACKING

STORAGE

SHIPPING

SALES

GLASS

UncompromisingStandards fromGrass to Glass

Confidential to Fonterra Co-operative Group

TraceabilityBuilding proof in our promiseFonterra is committed to delivering what matters most to our Customers and Consumers; providing food that is made to uncompromising standards of food safety and world class quality.

As part of ‘Trust in Source’ we are built the capability to electronically trace the goodness in every drop of milk we process.

We do this to enable our purpose to be the world’s most trusted source of dairy nutrition.

TRACE THE GOODNESS IN EVERY DROP

BACK TO THE SOURCE

AT EVERY STAGE

OF EVERY INGREDIENT

OF EVERY PRODUCT

IN EVERY COUNTRY


Traceability end-to-end

>10,000 Farms

>750,000 milk collectionsPer year

18 billion litres of milkAround 1 tanker every 15 minutes

Across 140+ countries

26 Manufacturing sites100 plants

>100 Warehouses and Distribution Centres globally

Secondary Manufacturing

1.4 million MT130,000 containers per year1 every 2 minutes


430,000devices connected2000 PLC’s 1800 PC’s 1400 servers


3,260,127 Batches20,366,987 Events


Traceability Our commitment to making total traceability real

Product authentication solution that uses a unique QR code to allows consumers to:

• Check the product is authentic – either pre or post purchase

• Get real time status information and information on place of manufacture

Batch history solution that allows us to track all our batches of product, and the ingredients that went into them:

• Electronic batch information linked from raw milk to customer

INTERNAL TRACEABILITY EXTERNAL TRACEABILITY

Benefits

• Near real time automated capture and sharing of electronic product traceability data at every step of the process

• Linking and visualisation of entire product flow from collection of raw milk at farm to delivery of product to customers

• Ability to complete trace upstream and downstream electronically from any point the supply chain identifying and locating potentially affected product in 3 hours or less.


Automation and Operational TechnologyAOT provides technology capability & solutions to enable Fonterra achieve its ambitions.

Operate with confidence• 24/7 support for manufacturing• Asset life cycle management• Capital projects• Cyber security

Improve & transform• Bankable initiatives • Transformation - Going Digital• Strategic capabilities – Historian, IIoT• New enabling technologies – cognition, AI

Infrastructure

Control Systems

Projects

Advanced Process Control (APC) Technology

Transformation

Manufacturing Systems


From Milk Reception….

….To Palletising


AOTCAE (Common Automation Environment)OT – Operational Technology

Operational Technology (OT) supportsmanufacturing processes. It comprisesthe hardware, software & networksnecessary to control and monitor plant& equipment e.g. PLCs, HMIs, MOM,model predictive control...

ITCOE (Common Office Environment)

IT – Information TechnologyInformation Technology (IT) is a range of technologies for information processing & other related corporate services e.g. email, SAP, data lake, Ariba, MyFonterra...


PROD01 | 2,000 PLCs | 1,800 PC’s | 1400+ Servers | 600+ Switches | 54 Firewalls | 50+ Routers | 17 Wireless Lan Controllers | 250+ Access Points

AOT DATA ACHITECTURE

ER

P

SHOP FLOOR – SITE x 26 26 x SERVER ROOMS CENTRAL

40,000,000@ < 200 mSec

2,800,000@ 2 sec

Machines

Pumps

Motors

Valves

Instruments

FTSE

RSView32

InTouch

iFix

Magelis

Panel View

Native HMI Log

FT Historian

iHistorian

FT Gateway

FS Gateway

430,000Real Time

DASCIP

DASTCP

OPC

FT Live Data

OFS

IGS

2,500,0002 sec

220,000@ 2 sec

HMISTORAGE

145,000@ 2-600 sec

SITESTORAGE

DATA CENTRESTORAGE

Raw data archivedafter 7 Years

Enterprise Historian

Collector e.g. AXON

Contextualisation

Site Historian

APC (RT Analytics)

PLC5

SLC500

M340

Quantum

Premium

Momentum

984

Compact

Compact Logix

Micrologix

C Logix

SAPAC

MOM EIGMIG

145,000+@ Various

Raw data kept 30 daysContextualised is kept forever

Kept for 30 days – Years(dependent on HMI storage)

CIP Reporting

Olga

DATA Extract

50+ Web Apps that contextualise

data for users

*2 Some of the 50+ web apps are hosted from the data centre.

*2

*1

*1 Smaller sites (5 of 26) have a collector in the data centre.

*3

*3 Current collector (AXON) captures 145,000 data points.Remainder is from PI apps, APC and contextualisation.

Axon only i.e. must add contribution of PI apps, APC and contextualisation

ISA95:L0-L1 ISA95:L2 ISA95:L3

Field Devices(I/O)

Logic Controllers(PLCs)

Data ServersOperator Stations

(HMIs)HMI Storage

Historian


Industry 4.0 Digital Transformation

Industry 4.0 is the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things and cloud computing

• 2006 … Part of a high-tech German strategic plan• 2010 … German cabinet re-introduced as the High-Tech Strategy 2020• Has influenced thinking throughout the world

• China’s ”Made in China 2025”• Japan’s “Industrial Value Chain”• India’s “Make in India”

• Autonomous Robots• Machine Learning• Internet of Things• Big Data• Cloud Computing• Augmented Reality


Industry 4.0 Technologiessubset of technologies – “cloud” is seen as the main enabler

Internet of ThingsThe interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data

Big DataExtremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions

Machine LearningA type of artificial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed

Augmented RealityA technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view

Digital TwinA dynamic software model of a physical thing or system that drives a business outcome

Additive ManufacturingProcess of building three dimensional objects by adding layer-upon-layer of material – i.e 3D Printing

Edge & Fog ComputingComputing close to the source of data. The terms are often interchanged but edge is more common to be at the sensor/actuator or plc. Fog is more common at network boundaries.

Collaborative RobotsA robot intended to physically interact with humans in a shared workspace (often referred to as a cobot)

Advanced AnalyticsA collection of techniques used to model internal and external data to yield valuable insights that can drive business-improving actions (turns information into knowledge and wisdom)


Our Problem

Our First attempts at Analytics showed us that we were not collecting enough data points with the fidelity we required to gain insights.

Collecting and storing around 250,000 tags at 30 second intervals was appropriate for our past aspirations but we needed to dramatically increase these.

Our internally developed system was not capable of scaling to the 4,000,000 tags at 1 second intervals we sought to achieve

We needed to look at the future

We undertook a procurement process and identified Microsoft as a partner and solution provider.


What did we do

We engaged with our OT vendors and ran a request for proposal RFP.

Alongside our traditional vendors we asked Microsoft to respond. We were looking for a disrupter.

The RFP concluded that the OT historian vendors could provide a solution however we were excited about the possibility of a collaboration with Microsoft and how this could provide benefit in many other areas.

We created a vision


What is an Operational Historian?• A historical repository of Operational Data – time-series measurements & state info

• Used for trending and visualisation, data extraction, supplying reporting applications

Factory

Factory

…

Time-series data

Data Extract tool

Data Centre

Currently

• Collect about 250,000 tags across 40+ sites

• 7+ years of data stored

• Not all available data is collected

• Built on old technology and difficult to scale-up

40+ operational facilities


Future Historian

Factory

Factory

…

Time-series data

40+ operational facilitiesFuture aspirations

• Collect more data - approx. 4 million tags

• Improve accessibility of the data - reduce barriers to using

• New technology – future proof, platform-as-a-service

• Extend data collection to include new data sources

ERP Data

visualisationstorage

Other Cloud

systems


Value of the new historian

Data: is more accessible is available when needed is trusted has context and is meaningful can be easily and flexibly viewed & analysed can be more easily merged with other data

Increasing the use of our operational data

Current

Future

Enabling new capabilities

Improving our current activities• Troubleshooting, Root-Cause-Analysis• Analytics• Monitoring/reporting• Benchmarking

• Cloud-based apps• IoT device data• Operational data from off-shore - JVs, TPMs, logistics networks • Connecting to other vendor cloud platforms – Kotahi, Lutra,

ABB, Tetra…

Improve our operations and

our decision-making -become more data-led


Computerisation Connectivity

Dashboards

Visibility

Time series historical data,

Hierarchical data modelling

Transparency

Predictive modelling, AI,

Machine learning

Predictions

Digital feedback Control and Optimisation

Adaptability

Digitally integrated business

Factory of the Future

1 2 3 4 5 6 7

Things

Insights

Actions

Advanced analytics

Integrated Operations Centre

Highly Automated Operations

Digitally Enabled Workforce

Operational Historian

Historian – foundational to strategy

The historian is foundational for Fonterra’s Technology Strategy – to unlock additional value to the business through new technologies


Historian Vision

The Historian will be Fonterra’s system of record for Operational time series data

The Historian data will be available for self-service visualising and processing with meaningful context

able to be applied

The Historian will allow for efficient deployment and support across Fonterra operations

User experience

Data availability

Enterprise support


Historian Features

Reliability

Reliable access to data when needed.

A supportable system that is configured,

maintained and monitored across the

enterprise

ConnectivityThe system connects to a variety of data

sources and destinations

StorageThe system stores and retains a large

volume of high fidelity, high quality,

trusted data

ContextWell-defined asset-

and event-based connections between data items to enable users to easily find, view and analyse data in context

AccessibilityAll users can rapidly and flexibly search,

visualise and summarise the data, and extract data for further analysis. The user experience is second-to-none

SecurityThe data and

systems are kept safe and secure e.g. by

not allowing unauthorised access

User experienceData availability Enterprise support


PROCESS OPERATOR ASSET CARER SYSTEM MAINTAINERIMPROVER BUSINESS OWNER

Plant/Utilities Operators Plant Supervisors Plant Managers Service Provider

Site Maintenance team Instrument Technicians Control System Engineers Calibration Technicians Reliability Engineers Group Asset Systems Manager Regional Engineering Services

AOT Engineers Control System Engineers Automation contractors IS connections

Analytics Engineers Data Scientists Advanced Process Control

team Process Technologists Product Technologists Capital Projects

Food Safety and Quality Laboratories Environmental Scheduling Commercial

FONTERRA ROLESFONTERRA ROLES FONTERRA ROLES FONTERRA ROLESFONTERRA ROLES

Personas

I run the plant safely to manufacture products in spec and on time

Identify deviations to plan/process capability

Perform fast corrective actions and participate in data-driven problem solving

BIOGRAPHY BIOGRAPHY BIOGRAPHY BIOGRAPHY BIOGRAPHY

I am responsible for maintaining the Asset/Plant to its optimum performance Accountable for

preventative and reactive maintenance

SME for Assets

I define and consume data to improve business processes, systems, products and plants Run trials to improve &

change operations Initiate change in

manufacturing through use of technology

Diverse group of users mostly SMEs

Technology and data savvy

I ensure the integrity of our historian system. Ensures system operates

within the acceptable limits Ensure data is correctly

collected Upgrades and maintains the

system to the correct standards

I am responsible for monitoring key performance metrics

I monitor and report on how the business is complying to relevant internal standards, customer requirements and legislation.


Agile approach

Development team

Product Owner

Product Backlog - features

Development sprints

Incremental delivery

Backlog item 789: Transfer data from PLC to Cloud

Description: Data is transferred via KEPserver to IOT Edge

Acceptance Criteria: Data is stored and visualised in Azure

Priority: 2




Priority: 2




Priority: 2




Priority: 2




Priority: 2

Roadmap

Use cases

Stakeholders / Users


January 2020

• Expanded data collection – 8 sites• Around 400,000 tags collected• Cloud-based app – Ethanol Tanks

• User engagement with access to TSI • UI improvements based on our feedback• Power BI connectivity

• Monitoring tools trialled – system, apps, data• DevOps practices – solution build, test, release pipelines• Site deployment process & tools developed

User experience

Data availability

Enterprise support


Cyber Security Risk


Specific risks for IOT device implementationsWe are internet enabled from cow to customer, with IOT devices in use across our entire supply chain. Our IOT landscape will continue to grow, so we need to ensure we build the appropriate security processes and controls to protect our production systems.

Security and procurement not being involved in design and implementation of IOT solutions

Top IOT Risks

1 2 3Improper use of Fonterra data and IP by third party vendors

Ongoing support, scalability, consolidation and security controls for IOT solutions


Known examples and breaches

Sensor installed by third party, using default user name and password

Electro-chemical Chlorine Dioxide Dispensing System at a manufacturing site – treating water in cooling towers

User name: adminPassword: admin


Keeping Fonterra safe with IOT solutions

3. Educate your teams

► Always get help from IT and procurement when selecting and implementing an IOT solution

► All procurement of IT services MUST be approved by IT as per the Group Procurement Standard. Please talk to your IT Manager if you see an IOT service that may benefit your business unit.

► Understand your obligations and accountability when selecting and implementing IOT solutions

► The standard will guide you through IOT specific risks and considerations as well as outline the mandatory controls required for any new or existing device

► Increase awareness with your teams about IOT risks

► Share this pack with them and/or assign the IOT online training module in MY Fonterra

► Ensure employees never allow anyone to install an IOT device at sites without authorisation

2. Familiarise yourself with

the IOT Standard

1. Engage with IT &

Procurement

Taking these steps helps us to:Operate confidently on a foundation of TRUST


Mandatory requirements for IOT devices1. The IoT device must be able to be identified both Logically and Physically

2. The IoT devices software and firmware must be able to be updated using a secure, controlled, and configurable mechanism.

3. Local and remote access to the IoT device and its interfaces must be controlled.

4. The IoT device must use industry-accepted standardised protocols for all layer of the devices transmissions.

5. The IoT device must log the relevant details of its cybersecurity events and make them accessible to authorised users and systems.

Thank you

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