Tenova in the Industry 4.0

The Microsoft -Tenova partnership

Tenova in Additive Manufacturing

Francesco Memoli

Executive Vice President

Tenova Inc.

November 2017

The four industrial revolutions

November 2017Tenova in the Industry 4.0 1

WHY WE CALL IT INDUSTRY 4.0

Industry 4.0 Steel Plant Vision

• New Field Data generator: Sensors, measurement devices etc.

• A unique Interconnecting Platforms

• “Whole Process” Data Analysis & Optimization

• Business Level Optimization

Today’s Challenges

November 2017Tenova in the Industry 4.0 2

WHAT WE HAVE TO OVERCOME AND IMPROVE IN THE MINING AND METAL SECTOR

Volatility Efficiency Productivity

Understand the

exposure at every stage

of the value chain. Avoid

risks arising from timing

differences between the

selling price of steel and

purchasing price of raw

materials.

Understand the

operational efficiency of

the value chain. Reduce

errors, downtime, improve

product quality, expand

faster beyond markets

and reach customers

quicker.

Understand the

production capacity of

the value chain. Improve

performances by monitor

the OEE, forecast market

supply and demand by

proactively plan key

activities.

- Risks - Errors + Performances

Industry 4.0

CapabilitiesCloud Computing Big Data Internet of Things Advanced Analytics

Today’s Challenges

November 2017Tenova in the Industry 4.0 3

WHAT WE HAVE TO OVERCOME AND IMPROVE IN THE MINING AND METAL SECTOR

Volatility

Business Challenges KPIs

Produce actionable

insights for supply chain

Develop more effective

procurement strategies

Efficiency

Digitizing the equipment to

streamline operations

Monitor machineries to

reduce errors and failures

Productivity

Detect inefficiencies and

increase process quality

Increase the overall

equipment efficiency

- Risks

% of expenditures saving

by predictive maintenance

% of expenditures saving

by forecast inbound stocks

- Errors

% of expenditures saving

by digitizing spare parts

% of revenues by

increasing the plant OEE

+ Performances

% of efficiency related to

MTTBF and MTTF

% of performance by

control the equipment

Industry 4.0 Capabilities

Cloud ComputingOpen standard platform,

able to compute tons of data

Big DataHeterogeneous data sets to

serve real-time analysis

Internet of ThingsCollect data from field

gateways and devices

Advanced AnalyticsData insights to drive

business actions

Partnership with Microsoftxx

Cloud computing, IoT, and machine learning: three key ingredients of Industry 4.0 that will change the way of creating

value in the near future. To make this happen in the metal Industry, Tenova and Microsoft combined efforts and

launched a partnership in May 2017 to develop a new platform which will support new business models based on

collaboration and services.

November 2017Tenova in the Industry 4.0

INDUSTRY 4.0

Microsoft - Tenova partnership

November 2017Tenova in the Industry 4.0 5

GOALS

• The goal of our partnership with the IT world leader is to develop an

integrated industrial system where the analysis of data gathered on the field

through multiple sensors and actuators allows to monitor plant machines,

detect anomalies autonomously and optimize overall plant performances. This

complex architecture is enabled through Microsoft Azure cloud platform and

provisional algorithms based on machine learning technologies.

• The centralized digital platform developed with Microsoft will provide more

informative support, so to offer a broad service portfolio, including

predictive maintenance, spare parts management, personalized settings,

and more effective remote assistance. The added value for the customer is

not just in the final product, but in the optimization of the entire process, gaining

advantages in terms of productivity and, consequently, competitiveness.

Tenova IoT Facts & Figures

13 December 2017

EXCEPTIONAL PRODUCTS WITH CUSTOMER IN MIND

Submerged Arc Furnace (SAF)

40Electric Furnace

(EAF, LMF)

Vacuum Degassers (VD/VOD/RH)

1000Heat treatment

Furnaces

11,000DRI Plants

20Burners on

Reheating Furnaces

20,000

300Strip

Processing &

Cold rolling mills600

Roll

Grinders

500,000 +

IoT devices

200,000+

IoT devices

80,000+

IoT devices

1,500,000+

IoT devices

800,000+ IoT devices 100,000+ IoT devices

50,000 +

IoT devices

6Tenova S.p.A. | Confidential & Proprietary

One Service

November 2017Tenova in the Industry 4.0 7

A SERVICE MODEL CENTERED IN THE RESULTS

Provide customers with the technology, information and insight needed to improve the productivity of their plants

Predict downtime and increase plant Availability/reliabilityGather data from the field Customers Deliverables &

Revenue Drivers

• Predictable maintenance and reduction of non-

planned assistance.

• Maintaining a high level of productivity and

production capacity for plants

• Remote spare parts and stocks Management

• Efficient assignment of labour resources

• Increasing the overall equipment efficiency

• Improving reliability and up-time of assets

• Energy saving & Environment sustainability

Customer Benefits

• Collecting product usage information and configuration

from customers to offer new value added services

• Collecting running data and root causes of downtown and

diagnostics to improve our product design

• Analysing data and insights coming from all production

plants in the world to ensure high level of productivity

• Digitalization of technical manuals and Bill of Material

(BoM) with focus on spare parts management

• Add value to our existing products by adopting cloud

technologies and Software

Win-Win opportunities

• Remote support by Tenova specialists who constantly monitor key

plant data: Telemetry, Performance, Maintenance and giving

suggesting actions, and advice for troubleshooting;

• Service assistance and spare part digitization and purchasing portal

fully integrate with maintenance (MTBF, MTTF) and remote support;

• Plant dashboard to provide more effective problem solving and

supervision both from client resources or our customer service

specialist with support of advanced technologies;

• Automatic Anomaly detection and Predictive Maintenance service, to

identify when equipment is likely to fail or need service in the future.

Value proposition

Sensors

Telemetry

Data from Equipment

Uptime/Downtime

Equipment

Digitalization

Plant Performance

Personalized

SettingsRemote

Assistance

Spare parts

Management

Predictive

Maintenance

Handheld

dashboardEquipment & Spare

Parts Digitalization

Analyze data coming

from plants

Digital Diagnostic

Center Customer Service

Advanced Analytics /

Machine Learning

Anomaly Detection

Assistance

One Service

November 2017Tenova in the Industry 4.0 8

A SERVICE MODEL CENTERED IN THE RESULTS

Practical example of system platform

November 2017Tenova in the Industry 4.0 9

A SERVICE MODEL CENTERED IN THE RESULTS

On Site

Off Site

• Agumented Reality

• Simulation

Training

Commissioning

• Monitoring key

equipment KPIs

• Anomaly Detection &

problem solving

Remote Plant

Monitoring

• Predictive Maintenance

• Entire process

optimization

• Equipment parameters

tuning

Cloud based

services

• Web Portal

• Digital Catalogue (Spare

parts Management)

• CRM (Service)

Online

Marketplace

Secure & Open

Standard

Hybrid Cloud

SAF EAF Furnaces

LOI

Furnaces

HTC

Grinders SP

I2S

Furnaces

ITA

DRI

Plant

OPC Gateway

Plant Control:• Sequence/PID

• Alarms

• Emergencies

Digital

Diagnostic

Center

Mobile tools

ERP

CRM

MES

Local

Partners

Scrap

YardEAF LF CCM

Reheat

FurnaceRolling

Mill

Billet

Yard

Heat

Treatment

Steel_4.0 Lighthouse: ORI Martin Cyber Physical FactoryIntelligent steelmaking as a collaborative platform

Tenova

DEPSRemote service

PLC / OPC Server

Plant Telemetry

Real-Time

Calculations

Big Data analysis

Level 3 production information

Tenova Electronics and

software

Anomaly Detection

Advanced Correlation

Process deviation

Model offline tuning

Plant Equipment feedback

Self auditing

Process measurements

Water leak detection

Equipment inspection

Process control

Safety

Environment

Predictive Maintenance

> 80 plants data

available

MADE4LO

A new model of productive chain based on 3D manufacturing. Starting from the optimization of the metal powders

process, the selection of the components to be made with 3D printing, with a focus on burners components for heat

treatment, reheating and electrical arc furnaces, and the realization of a furnace for their heat treatment that will be

assembled in the Pomini workshop, within Tenova’s Campus in Castellanza, Italy

November 2017Tenova In the Industry 4.0

OUR BUSINESS AREAS

Metal Additive for Lombardy

November 2017Tenova in the Industry 4.0 12

MADE4LO

• Additive Manufacturing (AM), also known as 3D printing, is one of the enabling

technologies of Industry 4.0.

• Despite rapid growth, the use of AM in industry is still marginal so far respect to

the traditional subtractive technology, but at AM is disruptive technology. The

use of AM with metal powders (Metal Additive Manufacturing) is a growing

industry and already suitable to produce complex metal parts. The current

applications span from aerospace and defense to automotive, industrial

products, medical devices and consumer products.

• MADE4LO, partially funded by the European Regional Development Fund in the

framework of Lombardy Region’s Research and Development Agreements,

consists in an investment of 6.6 million euros and involves in the partnership

two universities, among which Politecnico di Milano, three Big Industries and six

SMEs led by Tenova.

Metal Additive for Lombardy

November 2017Tenova in the Industry 4.0 13

MADE4LO PROJECT PARTNERS UNDER THE LEADERSHIP OF TENOVA

LINEA “ACCORDI PER LA

RICERCA E

L’INNOVAZIONE”

@#

Project definition

safety

Health and Safety

3d printing

laserPost

processing

Post treatment Final users

steel

Cu

powder

plant

Metal powder

process/technologies

!?!

Metal powder

production

Metal Additive for Lombardy

November 2017Tenova in the Industry 4.0 14

MADE4LO

Customised

product

Customised

powder

New

generation

3D printer

Technological

Knowhow

On-job

Training

13/12/2017

Case

study

Casing

valve

Gearmakers

Silencer

Laser head

for DEM

EAF oxygen

injector

3D printed parts for EAFs

November 2017Tenova in the Industry 4.0 15

FIRST EXAMPLE OF A 3D PRINTED PART FOR THE EAF STEELMAKING

EAF KT Supersonic Oxygen Lance Nozzles

• Formerly machined with conventional methods

• New material has been studied with CFD tools

• New optimized geometry has been designed

• New additive manufacturing process has been defined

• The right printer has been selected for the purpose

• Nozzles are now 3D printed and are working in EAFs

Benefits for Steelmakers

• Customized geometry

• Lighter weight

• Enhanced performance

• Extremely short lead time

• Reduced cost

• Streamlined supply chain

Tenova S.p.A.

Via Gerenzano 58

21053 Castellanza, VA – Italy

tenova@tenova.com

www.tenova.com

Tenova Inc.

100 Corporate Center Drive

Coraopolis, PA 15108 – USA

core@tenova.com