August 2021 | manufacturingglobal.com
AUTOMATION BEYOND IMAGINATION
ABB’s Robotic & Discrete Automation business provides value-added solutions
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The Manufacturing Team GEORGIA WILSON
EDITOR-IN-CHIEF
DUKE WEATHERILL JORDAN WOOD
VIDEO PRODUCTION MANAGER
MEDIA SALES DIRECTOR
DEPUTY EDITOR
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DIGITAL VIDEO PRODUCERS
SALES AND MARKETING DIRECTOR
RHYS THOMAS LAURA GARCIA
GEORGIA ALLEN DANIELA KIANICKOVÁ
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SCOTT BIRCH CREATIVE TEAM
OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH
OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH PRODUCTION EDITOR
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JASON WESTGATE MANAGING DIRECTOR
LEWIS VAUGHAN
CHIEF OPERATIONS OFFICER
STACY NORMAN PRESIDENT & CEO
GLEN WHITE
FOREWORD
All Things Sustainability in Manufacturing The race is on! Manufacturers around the world are ramping up their sustainability efforts.
“Organisations need clear and accessible support to identify priorities, manage risks and confidently define sustainable strategies to navigate disruption and uncertainty” Per Hong, Strategic Operations Partner and leader of the study at Kearney
MANUFACTURING GLOBAL MAGAZINE IS PUBLISHED BY
From automotive and aerospace to consumer goods, technology and consultants, the first six months of 2021 have seen not only the private sector but the public sector and governments around the world ramp up their sustainability efforts. Globally, manufacturers have set ambitious sustainability targets for the next decade, with many striving for carbon neutrality between 2030 and 2040. A full 10 to 20 years ahead of the Paris Agreement target! It is clear that technology and data will be critical to advance the sustainability agenda, with the likes of LEGO, Honda, Hyundai, the UK, and Spain harnessing innovative technologies, and forming collaborative partnerships, to drive the transition to a greener future. Particular focus for the manufacturing industry currently is placed on the decarbonisation of the industry, the electrification of the automotive sector (including the production of EV batteries), and the adoption of a circular economy approach to manufacturing and the supply chain.
GEORGIA WILSON
georgia.wilson@bizclikmedia.com
© 2021 | ALL RIGHTS RESERVED
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Creating Digital Communities
CONTENTS
Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Global News 16 People Moves 18 Timeline: Sustainable mobility 20 Legend: Ole Kirk Kristiansen 24 Five Mins With: Richard Boocock
28
ABB Digital
Automation Beyond Imagination
46
Digital Factory
Google Cloud, Realising the Value of Digital
56
Fortinet
Digital Security, everywhere you need it
90
AI & Automation
Advanced Robotics 101
68
Smart Manufacturing The Road to Smarter Manufacturing with IoT
98
Bell Food Group People, Not Systems
76
114
How one fintech company evolved for the future
Could 5G be the missing link for Industry 4.0 adoption?
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Technology
Secure manufacturing, everywhere you need it. Protect the possibilities with Fortinet. Prevent, detect and respond to cyberattacks from the plant floor to the cloud. Learn more at fortinet.com/manufacturing
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146
The Time for Digitalisation in Manufacturing is Now
Reduce the threat landscape for your ICS
PTC
TXOne TrendMicro
160
MT Connect
Powering free speech in the factory of the future
134
174
Manufacturing Supply Chains
Taking the load in global supply chains
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BIG PICTURE
10 August 2021 1 August 2021
Manufacturing’s Push for a Sustainable Future Texas, US
The latest sustainability report from Capgemini Research Institute reveals that manufacturers are setting ambitious targets for 2030, with 20% aiming to be carbon neutral and 40% looking to have 100% renewable operations. To achieve such targets, manufacturers are boosting their agendas by prioritising their deployment of digital technologies for sustainability (56%).
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11 2
THE BRIEF “The key for manufacturer’ ability to transform—despite the ongoing pandemic—is their embrace of digital enablers and disruptive technologies” Dominik Wee
Managing Director Global Automotive, Manufacturing and Energy at Google Cloud READ MORE
“The jump from 4G to 5G is like comparing a winding single-file A-road in the English countryside to a multilane German autobahn” Steve Foxley
CEO at the University of Sheffield Advanced Manufacturing Research Centre (AMRC)
BY THE NUMBERS
With the potential to disrupt and redefine manufacturing, which aspect of the industry will stand to benefit the most from Quantum Computing?
41.8% Chemical
25.5% Process
Discovery
Optimisation
1.8%
Other
20.0% Product
10.9%
Development and Design
Supply Chain
Did you know? 63% of European parts manufacturers will invest between €100,000 and over €1mn in digitalisation over the next 12 months READ MORE
READ MORE
“As soon as businesses realise the full potential of IoT – from enabling efficiency savings to delivering the needs of individuals – they will transform everything from design to production” David Sims
Solutions Sales Specialist at Dynabook Europe READ MORE
12 August2021 2021 3 August
Top Three Reasons for AI Adoption in Manufacturing Business continuity (38%), making employees more efficient (38%), and being helpful for employees overall (34%) READ MORE
The Future of 5G in Manufacturing 64% of organisations plan to adopt 5G-based edge computing services in the next three years to benefit from increased performance, reliability, data security and privacy READ MORE
LEGO LEGO expands its sustainable manufacturing practices, producing bricks from PET plastics from discarded bottles. LEGO has revealed its first prototype that also meets its strict quality and safety requirements.
Manufacturing a Greener Future When manufacturing a greener future, there are a number of ways manufacturers can be more sustainable; one, in particular, is adopting a circular economy approach to waste management. So What is a Circular Economy? Set to redefine the current linear model of production and consumption, a circular economy focuses on sharing, reusing, repairing, remanufacturing, and recycling products and materials. The overall goal is to extend the lifecycle of products and materials and reduce waste.
NORTHVOLT Northvolt raises US$2.75bn in equity to expand its cell capacity at its Swedish gigafactory to 60 GWh. To date, the company has secured over US$27bn in contracts from the likes of BMW, Fluence, Scania and Volkswagen. ROCKWELL AUTOMATION Rockwell Automation acquires Plex Systems for US$2.22bn, widening its capabilities to help manufacturers to connect, automate, track, and analyse their operations and connected supply chains.
But Why is Waste a Problem? Often waste is not accounted for and is therefore frequently overproduced. This waste creates environmental problems such as greenhouse gas emissions and damaged ecosystems. Waste can also be costly for manufacturers during generation and disposal, as well as contributing to the rapid depletion of finite resources.
SMMT SMMT reports that up to 90,000 jobs could be lost in the UK car manufacturing industry if the government doesn’t increase its support for electric car production to the levels of Germany and the US.
How Can Manufacturers Transition to a Circular Economy? Make UK states that manufacturers should look to understand flexible remanufacturing, as well as how reverse logistics can be harnessed to increase productivity. Ultimately investing in a circular economy requires prioritising long-term goals, as well as overcoming knowledge and cost barriers.
AMAZON Undercover footage from ITV revealed Amazon’s ‘destruction zone’ at the Dunfermline warehouse. The footage showed millions of unsold and/or returned items being destroyed each year.
W A Y U P
AUG21
W A Y D O W N
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GLOBAL NEWS
1
GLOBAL
Automotive Industry: Q2 2021 Results As industries emerge from the pandemic, the automotive industry so far continues to see positive results in their Q2 results for 2021. Many, however, report that the global semiconductor chip shortage is stunting their growth.
14 5 August August2021 2021
2
UNITED KINGDOM
AMRC Develops Smart Factory Open-Access Digital Architecture Designed by digital engineers at the University of Sheffield Advanced Manufacturing Research Centre (AMRC), Factory+ provides manufacturers with an open framework to standardise and simplify the way data is extracted, transported, stored, processed, consumed, and protected.
3
EUROPE
What is the European CEO Alliance? As a single driving force of 12 European companies in technology, software, manufacturing, automotive, energy, telecommunication, mining and metals, the European CEO Alliance furthers its efforts to reduce greenhouse gas emissions and achieve carbon neutrality.
5
SOUTH KOREA
Hyundai Signs Hydrogen Fuel Cell Propulsion Systems MoU
4
GERMANY
Porsche Calls for its Suppliers to Go Green Furthering its sustainability efforts to rescue its CO2 emissions in its supply chain, Porsche calls for its suppliers to go green, using renewable energy exclusively for the manufacturing of Porsche components. Those unwilling to switch will no longer be considered for contracts with Porsche in the long term.
Marking a significant milestone for Hyundai Motor Company, the automotive manufacturer is actively looking to expand its application of fuel cell system technologies into other industries, including sea vessels, railways and power generation.
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PEOPLE MOVES KAREN BETTS FROM: SCOTCH WHISKY ASSOCIATION TO: FOOD & DRINK FEDERATION (FDF) WAS: CEO NOW: CEO Joining the Food & Drink Federation (FDF), from Scotch Whisky Association (SWA), Karen Betts has been the CEO at the SWA since 2017. Prior to SWA, Betts background has been in Law, working in the Foreign, Commonwealth, and Development Office for 16 years. In joining the FDF, Betts will succeed Ian Wright as CEO, who will be stepping down from the role at the end of 2021 after seven years. Commenting on her appointment, Betts said: “these are rapidly changing times, with challenges and opportunities for the industry to grasp [...] I am looking forward to working with the FDF's members, the FDF team, with government and other organisations as we find the best answers to these questions for all involved.”
16 August 2021 7 August 2021
“I am delighted to have been appointed as the Food and Drink Federation's new Chief Executive, to represent the huge range of companies that keep food on our tables and make up [the] UK's largest manufacturing industry”
MARK MARK ALBISTON ALBISTON FROM: GARIC FROM: GARIC TO: GARIC TO: GARIC WAS: OPERATIONS DIRECTOR WAS: OPERATIONS DIRECTOR NOW: CEO NOW: CEO
LG TACKET TACKET LG FROM: PPC FROM: PPC TO: DUPONT TO: DUPONT WAS: GLOBAL INTEGRATED OPERATIONS WAS: GLOBAL INTEGRATED OPERATIONS LEADER, SAFETY & CONSTRUCTION LEADER, SAFETY & CONSTRUCTION NOW: VICE PRESIDENT OF GLOBAL NOW: VICE PRESIDENT OF GLOBAL OPERATIONS, INDUSTRIAL SEGMENT OPERATIONS, INDUSTRIAL SEGMENT Joining PPC from DuPont, LG Tacket has Joining PPC from DuPont, LG Tacket has been appointed as Vice President of Global been appointed as Vice President of Global Operations, Industrial Segment. Operations, Industrial Segment. Tacket’s new role - which will come Tacket’s new role - which will come into effect 9 August 2021 - will see him into effect 9 August 2021 - will see him responsible for leading the company’s global responsible for leading the company’s global manufacturing, supply chain, engineering, manufacturing, supply chain, engineering, asset management and continuous asset management and continuous improvement activities. improvement activities. Prior to DuPont, Tacket has held various Prior to DuPont, Tacket has held various executive and leadership positions in the executive and leadership positions in the manufacturing industry at the likes of Valspar, manufacturing industry at the likes of Valspar, Aleris International, Ticona, and Celanese. Aleris International, Ticona, and Celanese.
Following the move of its existing CEO Nigel Following the move of its existing CEO Nigel Quinn, Mark Albiston - currently Operations Quinn, Mark Albiston - currently Operations Director at the company - has taken on the Director at the company - has taken on the role of CEO. role of CEO. Albiston - who has held various executive Albiston - who has held various executive leadership roles in his career - will lead leadership roles in his career - will lead the company into the next phase of its the company into the next phase of its development. development. “I am very pleased to have been asked “I am very pleased to have been asked to take the role of Garic CEO and am really to take the role of Garic CEO and am really looking forward to continuing the great looking forward to continuing the great work we are all doing together. We have work we are all doing together. We have every opportunity to continue to grow our every opportunity to continue to grow our business, to continue with our focus on business, to continue with our focus on colleagues and customers and to make our colleagues and customers and to make our shareholders at Bibby Line Group proud,” shareholders at Bibby Line Group proud,” said Albiston on his appointment. said Albiston on his appointment.
'
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17 8 8
TIMELINE THE ROAD TO SUSTAINABLE MOBILITY Discover the history of the automobile, from the first petrol car to the production of electric vehicles
First Diesel Engine Invented by Rudolf Diesel, the engine was the first to confirm the fuel consumption efficiency, with 26.8% of heat converted into effective power.
1886
1897
First Petrol Car Carl Benz submitted the patent for his motor car, dubbed ‘the birth certificate of the automobile’. The car ran for the first time in 1879.
9
August 2021
First Hybrid Car Ferdinand Porsche designed the world's first functional hybrid car, the ‘Semper Vivus’ - Latin for ‘always alive’.
1900
First Fully Electric Car While Robert Anderson built the first crude electric car in 1832, it wasn’t until the late 1800s (1889-1891) that William Morrison developed the first successful electric car.
The Electric Car’s Fleeting Success in the US While the early 1900s saw two-thirds of vehicles on the road in the US being electric, this success was shortlived following Henry Ford’s unveiling of the Model T, which was easy to refuel and affordable.
Electric Car Production Ramps Up 60 years on from the short success of electric vehicles in the early 1900s, production began to ramp up towards the end of the century. • General Motors in 1973 prototypes an urban electric car • CitiCar produced 2,000 electric cars between 1974 and 1977, ranging 50 to 60 miles • General Motors released the EV1 - which quickly gained a following - in 1996
The Beginning of Tesla Founded three years prior, Tesla, in 2006, announced its plans to produce a luxury electric sports car with a range of more than 200 miles.
1936
1997
2006
First Diesel Car Mercedes-Benz unveils the world’s first series-produced diesel passenger car - 260 D - at the International Automobile and Motorcycle Show in Berlin.
First Mass Production of a Hybrid Car Toyota Motor Corporation releases the first worldwide mass-produced hybrid car the Prius.
2010
First Commercially Available Plug-In Hybrid and Full Electric Car General Motors releases the Chevy Volt, the first commercially available plug-in Hybrid. They were followed by Nissan’s AllElectric, zero tailpipe emissions vehicle, the Nissan LEAF. manufacturingglobal.com manufacturingglobal.com
19 10
LEGEND
OLE KIRK KRISTIANSEN
Job Title: Founder Company: LEGO Group
Re-Defining Play, Re-Imagining Learning
I
n his early years, LEGO founder Ole Kirk Kristiansen faced his fair share of challenging crises and misfortunes, some of which had him on the verge of hanging in the towel. What today has been named ‘toy of the century’ twice could have been a footnote in history. But how did it all start? 1916, aged 24, Kristiansen brought Billurd Joinery kick-starting his career in carpentry and joinery. For many years, Kristiansen tried his hand at the industry, transitioning from the likes of doors, windows, and agricultural tools, to building larger projects such as churches, houses and farm buildings, his dedication to first-class quality craftsmanship driving him.
20 11
August2021 2021 August
Born
1891
Died
1958
However, in 1929 the Wall Street stock market crashed. With a large proportion of his customers being from the agricultural industry, Kristiansen was forced to reflect on his business. “I looked to the future with hope. But within two months, my world was tumbling. There was a crisis in farming, but as we owed our living to the smallholders and farmers, we were also affected. We were in a difficult time – but it was as well that we could not see what lay ahead. During the summer, we were asked to make toys for Jens W. Olesen, Fredericia, and as we had no other work, we looked on it as a gift from God,” said Kristiansen in his memoirs. At a crossroads, Kristiansen had to choose between pursuing the manufacturing of toys or returning to his old craft. In 1934, backed by The National Association for Danish Enterprise (Landsforeningen Dansk Arbejde), Kristiansen pursued his career in toys - despite facing opposition from family members - showcasing his wooden toys at the Danish trade fair in Frederica. As such, the LEGO Group was born.
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LEGEND
Ole Kirk Kristiansen History of the LEGO name: deciding that the company should have a more catchy name than Billund Maskinsnedkeri (Billund woodworking factory), Kristiansen combined two Danish words LEG GODT - meaning ‘play well’ - to produce the LEGO name, placing emphasis on developing children’s play, and focusing on quality. It was not until much later that it was realised that LEGO in Latin means ‘I put together’.
13
August 2021
“Only the best is good enough”
Ole Kirk Kristiansen’s motto remains central to the company’s operations today In 1942, following the death of his wife, the outbreak of World War II and a second workshop fire, Kristiansen was ready to abandon the business. But with his strong determination and the help of Vejle Bank, it became possible to build a new factory that was much more modern and could mass-produce the toys. The Beginning of the LEGO Group we Know and Love Today... At the end of World War II, Kristiansen began to find it increasingly difficult to source quality beechwood for his toys. Committed to new trends, and despite initial opposition from his son, Godtfred Kirk Christiansen, invested in a plastic injection moulding machine in 1947. Two years later, in 1949, LEGO’s first primitive bricks known as ‘Automatic Binding Bricks’ hit the markets, laying the foundations for the LEGO bricks that millions of children (and adults too!) build and play around the world. manufacturingglobal.com
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FIVE MINS WITH...
RICHARD BOOCOCK Former Senior Vice President and Special Advisor to the Chairman at Air Products (Retired)
Q. WHAT IS YOUR EXPERIENCE IN THE MANUFACTURING INDUSTRY?
» I have spent almost 40 years
working in the manufacturing industry, almost all of that time working for a US-based multinational speciality chemical company. Starting as a graduate chemical engineer, I helped design, build and operate production facilities and then went on to lead various businesses, as well as corporate functions such as sustainability and information technology. I spent a lot of time working directly with customers and, as a result, developed a broad understanding of other manufacturing industries, ranging from refining through steel making and metal processing, glass manufacturing, semiconductor chip fabrication, food processing and many more!
1982
Joined Air Product.
38
Years at Air Product.
15
August 2021
University of Birmingham & Henley Business School Education.
Q. HOW DO YOU SEE THE INDUSTRY EVOLVING OVER THE NEXT DECADE?
» I think this is a very exciting time
for the manufacturing industry as the world continues to pivot to a more sustainable future. Sustainable products will bring new opportunities for new technologies and new techniques, industry 4.0 will bring yet more opportunities, and an increased emphasis on diversity and inclusion will give a broader cross-section of our society the opportunity to enjoy a career in manufacturing.
Q. WHAT TREND ARE YOU MOST EXCITED TO SEE EVOLVE?
» Industry 4.0, combined with
real steps forward in increasing diversity and inclusion in manufacturing leadership, is a combination that has the opportunity to advance manufacturing in the 21st century.
Q. OVER THE LENGTH OF YOUR CAREER, WHAT IS THE BEST PIECE OF ADVICE YOU HAVE EVER RECEIVED?
»I have had the privilege of
working with many wonderful people over the years and picked up many different “nuggets” of advice, so it would be difficult to pick just one. If I had to, I think it would be to never lose sight of the fact that we achieve our objectives through people and that if you treat people well and with kindness, together, you can move mountains.
“I think this is a very exciting time for the manufacturing industry as the world continues to pivot to a more sustainable future” Q. HAS THERE BEEN A PARTICULAR ACHIEVEMENT THAT YOU ARE PROUD OF?
» When I reflect back on my career
and think of all the projects I have been part of, plants I have helped build, businesses I have helped to start in new countries, I always end up with the images of the teams that I had the privilege to work with. As a leader, I take pride in having built successful teams which enable everyone to contribute and for some people to surprise themselves with what they are actually capable of!
Q. WHAT INSPIRES YOU?
» I have always been inspired by a
desire to be part of something that can make the world a better place, make the world a kinder place.
Q. WHAT ARE YOUR FAVOURITE THINGS TO DO OUTSIDE OF WORK?
» I spent many years of my life
travelling extensively for business, so my hobbies needed to be quite portable! Reading and listening to music was obviously convenient. I am a big believer in lifelong learning and that we should all try to learn something new every day, even if it is just about ourselves. manufacturingglobal.com
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Top 100 Leaders in Supply Chain September 2021 To be announced at the Procurement & SupplyChain LIVE Event NOMINATE NOW
A BizClik Media Group Brand
Creating Digital Communities
COMPANY NAME
HEADLINE EXAMPLE AUTOMATION SO PLAY BEYOND AROUND IMAGINATION WITH IT ABB's Robotics & Discrete Automation business provides value-added solutions in robotics, machinery and factory automation to businesses large and small: we discussed the new ecosystem with Arno Strotgen
WRITTEN BY: JOHN O’HANLON PRODUCED BY: BEN MALTBY 28
August 2021
ABB ROBOTICS
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ABB ROBOTICS
ABB's Robotics & Discrete Automation business provides value-added solutions in robotics, machinery and factory automation to businesses large and small: we discussed the new ecosystem with Arno Strotgen
S
ince producing the world’s first commercial, microprocessorcontrolled robot IRB 6 in 1974, ABB has led the development of industrial robotics. More than 500,000 ABB robot applications have been installed across the world, and not just in car plants where they are now ubiquitous in every kind of production facility. Of course the robot you see depends entirely on the instructions it receives. Thus, ABB focuses heavily on digitalisation in this article, which is applicable to industrial automation as well as automation across multiple businesses and segments. Here too, ABB is the pioneer, enabling the digitalisation of automation for its customers. COVID-19 threw a metaphorical spanner into the works for less prepared manufacturing enterprises. At the same time, it has been a big stimulus to automation and robotics. During the pandemic, ABB has been able to help its customers by remotely monitoring their robots, leading them through the use of tools like Wizard remote access and RobotStudio® offline programming software. As Arno Strotgen, Group SVP and Head of Customer Service and Digital Platform at ABB Robotics & Discrete Automation says: “During the pandemic the need for digitalisation has grown even more. Our digital tools have helped our customers when it became difficult to have engineers on-site due to lockdowns and social distancing requirements”. 30
August 2021
$2.9bn Revenue
11,000 Number of Employees
1988
Year Founded
ABB ROBOTICS
Arno Strotgen Group Vice President, Service & Digital Platform, Robotics and Discrete Automation, ABB
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ABB ROBOTICS
Automation beyond imagination
“During the pandemic, the need for digitalisation has grown even more”
The power of partnership their uptime and optimise Today's ABB started life as their businesses.” Where a merger and has grown innovation and startups through collaboration, are concerned, a great and collaboration remains example is the 'External central to its strategy. “We Innovation Challenge' have to acknowledge that that ABB Robotics we cannot be experts is currently running, in all fields and that the working with startups and partnerships we have technology companies with other companies are on the topic of Mobility, crucial”, says Strotgen. “We Intuitive Interfaces ARNO STROTGEN have strategic partnerships and Digitalization. The GROUP VP, SERVICE & DIGITAL PLATFORM, with some of the leading ABB team received ROBOTICS & DISCRETE AUTOMATION, ABB technology companies almost 100 applications such as Microsoft. By (from 29 countries), combining Microsoft’s Azure intelligent out of which discussions were held with cloud with ABB’s deep domain expertise and 45 companies, 11 of which were chosen to innovation in manufacturing, we deliver enddevelop proofs of concept and evaluations. to-end digital solutions such as ABB Ability To serve its customers in more than 45 Connected Services, which currently enables countries, giving all of them the same level more than 1,000 customers to connect their of support, ABB has invested heavily in its robots to our cloud, helping them to improve digital processes landscape. “We have digital 32
August 2021
ARNO STROTGEN TITLE: GROUP VICE PRESIDENT, SERVICE & DIGITAL PLATFORM, ROBOTICS AND DISCRETE AUTOMATION INDUSTRY: ROBOTICS, AUTOMATION AND DIGITAL SERVICES Arno is the Group VP of Customer Service & Digital Platform for the Robotics & Discrete Automation division, a unit with over 1,600 service specialists located across 53 countries. He has over 26 years experience in service, digital, sales and general management. Before assuming his current position, he was General Manager for ABB’s Robotics Business in Spain. Prior to that, Arno held several managerial positions in Mexico and Germany . Arno has an MBA, from IMD Lausanne in Switzerland and a Bachelor of Science in Industrial and Systems Engineering from Tec de Monterrey in Mexico.
EXECUTIVE BIO
processes from start to end. For sales and field service management we mainly use Salesforce. This allows us to have a 360-degree view of our customers and to put them in the centre of all we do. From service case management to field service planning & execution to seamless customer interactions - with Salesforce we've been able to digitalise our processes, gain more control and transparency over the customer journey, and respond quicker to customer requests and preferences”. ABB recognises that innovation is stronger when collaborating with partners and customers. The Robotics and Discrete Automation business recently joined the Open Manufacturing Platform, a consortium driving innovation across manufacturing community and value chain, he adds. When Brave Control Solutions became the first Canadian company to win an ABB Value Provider Solution Award (for developing a new process that introduces more customisation and flexibility into the construction industry) it underlined how ABB's systems integrator partners can help to provide sector expertise, says Strotgen. “We aim to couple their knowhow with our products and support to offer customers top-class solutions”. The line between the commercial and academic worlds is blurring, and ABB works with several universities and R&D institutions around the world on new applications for its technology. A good example is ETH, the Swiss Federal Institute of Technology in Zürich. ABB is part of ETH’s “Robot X” programme, which aims to train new talent and develop future robotic technologies for different industries. ABB has already been working with ETH to develop robotic fabrication solutions for architecture and construction, which has led to a joint project between ABB, ETH and Schindler Lifts to develop an AI-enabled robotic system for building lift shafts.
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ABB ROBOTICS
We BRING and COMPANIES CUSTOMERS TOGETHER
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Salesforce helps you connect marketing, sales, service, commerce, and IT on a single platform. So every employee gets the same, connected view. And every customer gets the personal experiences they love.
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ABB ROBOTICS
“ With Salesforce, we've been able to digitalise our processes, gain more control and transparency over the customer journey, and respond quicker to customer requests and preferences” ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB
Sharing knowledge among 1,600 service professionals is ciritcal to adding value to our customers and ABB’s long-standing relationship with Empolis, delivers advanced knowledge management systems powered by AI. “With this tool, our employees always have the newest service documents at hand and find the right case solution step-by-step, via guided troubleshooting”, says Strotgen.” This not only applies to our remote service, field service and support operations, but also to our customers as self service. Our primary benefit, however, is that our overall resolution time for service cases has dropped substantially,
thus, improving customer satisfaction”. “The platform is also valuable in training new service technicians”, he adds. In another partnership venture, this time into the fast-developing field of augmented reality (AR), ABB is running a pilot in collaboration with Techsee, a company that specialises in computer vision, AI, and AR, with the aim of giving remote support to its customers. “By simply sending our customers an SMS, we establish a secure connection to support them remotely with augmented reality: this was very helpful in the pandemic. When we couldn't physically visit them, we could establish a quick connection with them and then help them resolve their issues in a truly smart way”. ABB Robotics: an open door to the future It will be noted that some of the examples of collaborative innovation we have seen are found in the construction industry. This sector has been slower than many to embrace automation, but now due to conditions caused by the pandemic, climate change, and population shifts, it is catching up fast, Arno Strotgen believes. The pressure for more sustainable, carbonneutral, and affordable housing is driving this change and ABB is keen to develop the solutions the construction industry needs. There are several ways in which robotics is quietly revolutionising construction. Apart from helping with the chronic problem of skill shortages it can increase productivity and bring new tech skills. Modular construction and other examples of off-site fabrication bring huge cost and time benefits, and at the same time speed up the introduction of new materials, and technologies such as 3D printing. Reducing the numbers of workers on-site and automating some of the more risky operations will help solve that persistent bugbear of the industry – worker safety. manufacturingglobal.com
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ABB ROBOTICS
Though automation opportunities are apparent in almost every business today, when invited to suggest which markets are likely to benefit most, Arno Strotgen suggests five potential targets: • New applications such as electric vehicle (EV) manufacturing and an expanded offering in machine automation. Track systems, machinecentric robotics, and vision are high growth areas. • Increased complexity of manufacturing. The growth of e-commerce is creating increased complexity in logistics, for example, driving investment in intralogistics automation systems (integrating the processes that occur within a company during product handling). ABB is uniquely positioned to support both end-customers and integration partners in the logistics industry with strong knowledge of applications, modular solutions, and the widest service and support network.
“ With Techsee, by simply sending our customers an SMS, we establish a secure connection to support them remotely with augmented reality” ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB
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August 2021
• Customer segments with limited or no robotics and automation knowhow. SMEs, healthcare, and of course construction (see above) are all examples. • Cobots (collaborative robots that work alongside people) offer substantial scope for growth due to their ease of use and utility. They are especially attractive for small to medium enterprises. • As data management delivers insights that improve performance, productivity, and reliability (and, for some industries, traceability), customers' reliance on digital services will continue to grow exponentially.
SMEs – YES, YOU CAN AUTOMATE SUCCESSFULLY! The concept of a digital factory can be daunting. ABB's research shows that
Arno Strotgen, SVP, and Head of Customer Service and Digital Platform at ABB Robotics &
perceived complexity is a big issue of concern
Discrete Automation, says:
for SMEs in particular. ABB is tackling this with
* We see simplification as a very important part
its latest generations of cobots and Wizard easy programming software, aiming to make cobots easy to deploy and use for companies that have little or no experience in programming or
of the digital journey * Simplification is making robots easier to install, program and operate. * Simplification in a digital factory is about
operating robots. These are examples of how
making robots easier to install, program, and
companies can take steps to build confidence
operate. If robots are simple and intuitive to use,
and experience in automation by starting small
for new users as well as experienced users, we
and tackling the easiest challenges first. Once
can offset talent shortages. This is particularly
they have gained experience, they can then
beneficial for SMEs, which often lack integration
move up to the next levels of automation to
and engineering resources. They will benefit
tackle more difficult tasks.
greatly from the scalability of robotics, grow
ABB's approach is to guide its customers wherever they are in the journey of digitalisation and whatever it means to them.
with it and use the flexibility of automation to adapt quickly to changing markets. * We can manage increased automation
Digitalisation does not mean having to throw
complexity with intuitive tools and offering
out everything you already have – instead,
ease of programming that removes key entry
it is about finding the best ways to use new
barriers to new users.
technology to augment what you already
* Examples include lead through programming
have, identifying areas for improvement
on our YuMi®, GoFaTM, and SWIFTITM cobots;
and finding ways to solve them. The digital
Wizard easy programming on our cobots and
factory is flexible and means different things
IRB1100 industrial robot, that enables users
for different people and companies. A digital
to program a robot using pre-programmed
solution needs to range from digitalising and
block-based programming, enabling even
synchronising single robots to having the
complete novices to use a robot.
DID YOU KNOW...
complete view and dashboard. A good example of how ABB technology can
Our RobotStudio® programming software also
be used by a small manufacturer to open new
allows robot installations to be created, tested,
possibilities is DB Shoes in the UK. Established
and simulated in an offline environment, taking
in 1840, the company is using two ABB robots as
the time, cost and disruption out of installing
part of its shoe manufacturing operation. Using
and commissioning a robot or robot cell on the
the robots has given the company the flexibility
factory floor. By using augmented reality one can
to expand its offering to make new styles of
even visualize the robot solutions in the real-life
shoes and handle new designs in the future.
production environment as a hologram.”
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ABB ROBOTICS
“ With Empolis, our employees always have the newest service documents at hand” ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB
Readers will not find it hard to add to this list! ABB's strategy is to be prepared for these market openings while anticipating others. “We plan to accelerate in existing segments like automotive, drive new automation solutions like machine-centric robotics and flexible manufacturing, and leverage our existing expertise within under-served segments like logistics and healthcare that generate pull-through for robots. Investing and innovating in robotics for the service sector is a key element of our growth strategy, and our solutions will be indispensable to these new customers. We are offering modular and scalable solutions that provide them with a proven performance they can apply globally”. So, ABB is expanding its portfolio of products (e.g. track systems, cobots), solutions (e.g. machine-centric robotics), application cells and smart systems (e.g. 3D Quality Inspection). At the same time, it is placing its software and digital portfolio front and centre of its future strategy. “We already monitor more than 9,000 installed robots remotely, and are constantly adding new digital services to our digital ecosystem.” He also points, to ABB's flexible and digital robot controller family - OmniCoreTM, bestin-class when it comes to motion control and path accuracy, while virtual realisation through technologies such as Digital Twin 38
August 2021
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ABB ROBOTICS
Driving Visual Transformation Because Showing is Better than Telling Visual engagement at every touchpoint. Provide visual contactless assistance to your ‘remote-first’ customers and employees powered by AI & AR.
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August 2021
“ We are offering modular and scalable solutions that provide them with a proven performance they can apply globally” ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB
will continue to improve commissioning time. ABB can enable its customers to create a digital twin of their operations. “The RobotStudio® offline programming tool allows users to model, test, and refine a robot or robot cell in an offline environment.
This can help to greatly reduce the time associated with designing, installing, and testing a robot in a live production environment. Another example is our PickMaster® Twin software, which can be used to help model, test, and commission robotic picking and packing lines”. Robotics and digital transformation When moving forward into robotic automation, ABB can help companies to simplify each stage, from design and programming to operation and maintenance. “We have the biggest service network of any robot supplier, together with the ability to remotely monitor the performance of our customers’ robots in order to help identify problems before they escalate. We will work with the customer and go step by step through their requirements, identifying the best way to introduce digitalisation to their manufacturingglobal.com
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Empolis AI-powered solutions for excellent Service and Support Many global companies like ABB rely on Empolis Service Express® for excellence in: • Remote Service • Field Service • Support Operations • Customer Self Service
START YOUR FREE TRIAL TODAY!
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August 2021
ABB ROBOTICS
“We understand what customers are doing with robots and can help them do it better!” ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB
operation. This can include working with multiple stakeholders to gain a fully rounded understanding of their business, what they want to achieve and how to put a structure in place that will enable their aims to be met.” Companies can choose where they start their transformation. “We have solutions throughout the value chain. We support our customers with an ecosystem of software tools along their automation journey starting from commissioning and engineering, through to operations, maintenance, and service. We make digitalisation peoplefriendly, for example with the collaborative robots we spoke of earlier – you need a solution that is scalable, while easy enough for everyone to use.” This includes regularly revisiting the scheme once it is up and running to get feedback and identify any additional areas for improvement. Workers might request a simplified humanmachine interface (HMI), or need training to sharpen their skills on areas such as
robot programming. It's also important, he says, to include the people who use the technology at the design stage. “Workers can often introduce short cuts into processes that weren’t originally foreseen when the production line was built. These could be useful to know about when designing a digitalised solution.” In January 2021 ABB carried out a survey of 1,650 businesses. 85% of these confirmed that
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ABB ROBOTICS
HOW ROBOTICS IS TRANSFORMING THE CONSTRUCTION INDUSTRY ABB robots are being used by a number
of timber in the prefabrication production line.
of companies worldwide that produce
Three robotic systems are used, including several
modular prefabricated buildings and also 3D
robots integrated with tracks. Operating in cells,
structures for building projects. In both cases, our
the robots produce timber components according
robots are used in conjunction with digital design
to designs created in Intelligent City’s Platforms
software to build exactly what the customer
for Life (P4L) design software, enabling customized
wants, enabling a true design for manufacture
structures to be built according to specific
approach where what you see is exactly what
customer requirements.
you get. This approach will be increasingly vital
ABB’s RobotStudio® offline programming software
in the future to transforming the possibilities for
is used with Intelligent City’s P4L software to plan
what can be built, producing mass-customised,
tasks and movements for the ABB robots. Every
more environmentally friendly structures at mass
component gets its own file and can be simulated
production prices whilst also reducing waste and
and executed directly.
maximizing profitability.
Key benefits of using the robots include better
RobotStudio® offline programming and simulation
production efficiency, a 38% improvement in
software is a very useful tool for helping customers
project delivery times, and a 33% reduction in the
to see how they can use robots to optimize their
cost of producing a modular home. Wastage has
production processes. It can be used to model a
also been significantly reduced as the robots can
customer’s process to develop the best solution
be used to optimize the production process to
for their requirements, saving time and cost and
minimize off-cuts.
reducing commissioning and troubleshooting.
Also in Canada,Brave Control is helping companies in the construction industry to set up modular
Just a few examples:
fabrication production lines. In 2021 Brave won the ABB Value Provider Solution Award. The company came up with CAD to Path software specifically for the construction industry so that the manufacture of unique assemblies — a chassis for hotel rooms, mass timber floors, panel walls, plumbing — can be adjusted depending on the constructor’s different
DID YOU KNOW...
architectural and engineering requirements.
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House of Design is an ABB Robotics Integration company and robotics value provider. It recently Intelligent City, a company based in Vancouver,
worked with Autovol on a fully operational and
Canada, has become an expert in off-site
multi-unit housing factory. The factory floor is
construction of timber-built modules that can be
approximately 400,000 square feet, with an
connected to produce buildings up to 18 stories
adjoining office space of 30,000 square feet where
high. On the shop floor, ABB’s robots are used
multiple extremely high-quality living units are
to process, handle and assemble large sections
produced each day.
August 2021
ABB ROBOTICS
“ Workers can often introduce shortcuts into processes that weren’t originally foreseen when the production line was built”
the pandemic was game-changing for their business and industry. The same percentage already planned to introduce robotics, or increase their use, over the next decade: the pandemic only served to accelerate their investment plans. “We are much more than a robot company”. Arno Strotgen concludes. “We are a technology leader and have pioneered automation and digitalisation. We help customers of all sizes increase their productivity, quality & consistency, through enhanced flexibility and simplification of their processes. At ABB Robotics, we aren’t just witnessing this transformation, we’re leading from the front. While robots remain at the heart of our offering, today we provide everything from individual robots to application cells and smart systems. We also offer the benchmark in robot software and the industry’s broadest service offering – all connected in a digital ecosystem to create enhanced value for our customers. We understand what customers are doing with robots and can help them do it better”!
ARNO STROTGEN
GROUP VP, SERVICE & DIGITAL PLATFORM, ROBOTICS & DISCRETE AUTOMATION, ABB manufacturingglobal.com
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DIGITAL FACTORY
Realising the Value of Digital Google Cloud’s Dominik Wee discusses the value of adopting digital factory practices and how cloud platforms can help to realise value in manufacturing WRITTEN BY: GEORGIA WILSON
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August 2021
F
aced with the challenges of changing customer expectations, an evolving workforce, and increasingly urgent sustainability imperatives, it is vital for the manufacturing industry to address important issues faced by their employees and increase the digitalisation of their manufacturing and supply chain operations. Explaining that the impact of COVID19 has compelled manufacturers “to adopt virtual collaboration solutions like Google Workspace that enable productivity while employees work remotely,” Dominik Wee, Managing Director Global Automotive, Manufacturing and Energy at Google Cloud adds that, “worker safety is also more important than ever, with smart technologies on the shop floor that can visualise social distancing protocols through the use of vision AI, and factory reconfigurations can then enforce safe distancing. At the same time, advancements in the Industrial Internet of Things (IIoT) and artificial intelligence (AI) are reducing the cost of adopting new manufacturing technologies.”
DIGITAL FACTORY
manufacturingglobal.com
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6 Ways Inventory Management Fuels Supply Chain Explore How Inventory Management Enables Supply Chain to Reach Its Fullest Potential For most businesses, the supply chain is not only the primary cost centre but one of the most challenging aspects of running a profitable operation. This ebook examines the role of inventory management in each step of the supply chain and share best practices for how businesses can use inventory management to optimise and run a more profitable operation. Download Ebook Now
DIGITAL FACTORY
“The key for manufacturers' ability to transform—despite the ongoing pandemic—is their embrace of digital enablers and disruptive technologies” DOMINIK WEE
MANAGING DIRECTOR GLOBAL AUTOMOTIVE, MANUFACTURING AND ENERGY AT GOOGLE CLOUD
About Dominik Wee, Managing Director Global Automotive, Manufacturing and Energy at Google Cloud My name is Dominik Wee, I am the Managing Director of Global Manufacturing and Industrial at Google Cloud. I am responsible for Google Cloud's global business with companies in this sector, including industrial goods, automotive OEMs and suppliers, electronics, energy, and aerospace.
However, there continues to be a large percentage of manufacturers who struggle to move beyond pilots and fail to scale new technologies into the production line. Wee attributes this to a lack of “special skills required to implement and use these technologies in day-to-day operations. That is one of the reasons we are focused on bringing solutions to market that do not require any additional skills to use and are easy to get started with.” Why is it Important to Embrace Digital in Manufacturing? “The manufacturing industry hasn’t yet benefited from cloud and AI technology to the same extent as other verticals,” explains Wee, but this is something that Google Cloud hopes to change. manufacturingglobal.com
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DIGITAL FACTORY
Industry Insights: Addressing the 'new normal' in manufacturing
“ By optimising manufacturing operations, a digital factory unlocks new capabilities from existing assets, allowing companies to pursue new growth opportunities” DOMINIK WEE
MANAGING DIRECTOR GLOBAL AUTOMOTIVE, MANUFACTURING AND ENERGY AT GOOGLE CLOUD
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August 2021
“The key for manufacturers' ability to transform—despite the ongoing pandemic—is their embrace of digital enablers and disruptive technologies. According to our research, three-fourths of surveyed manufacturers (76%) revealed that the pandemic has caused their companies to increase the use of digital enablers and disruptive technologies such as cloud, AI, data analytics, robotics, 3D printing/additive manufacturing, Internet of Things, and augmented or virtual reality.” Creating a Digital Factory In its simplest form, a digital factory is created “when manufacturers use advanced technology to enable new business processes and unlock value,” explains SAP and Google Cloud.
DIGITAL FACTORY
Google Cloud and its Role in the Manufacturing Industry
By embracing digital factory practices, the average manufacturer can benefit from: • 5 to 10% improvement in production volume/ direct production • 20 to 30% savings in logistics-related costs • 10 to 20% savings in energy costs • 10 to 30% reduction in support function costs Impacting everyone within a manufacturing organisation, capturing the full potential value in the digitalisation of manufacturing “is largely dependent on utilising advances in technology to enable new ways of working. Roles and responsibilities for all employees, from the C-suite to machine operators and quality technicians, will shift in the digital manufacturing journey,” explains SAP and Google Cloud.
At Google Cloud, we are focused on industry solutions that help our customers improve efficiency, reduce cost, and capture new market opportunities. Manufacturing is one of Google Cloud’s priority industries, and we have invested heavily to create dedicated solutions that accelerate digital transformation, digitalise the customer journey, and also optimise operations and product development. As part of their digital transformation initiatives, manufacturers have begun making significant investments in cloud and AI technology. At Google Cloud, our portfolio of products and solutions— along with our ecosystem of partners—is helping manufacturers drive innovation and operational excellence across the value chain. Many manufacturing companies, including Siemens, Kaeser Kompressoren, Ingersoll Rand, and others, use Google Cloud to analyse vast quantities of operational data, reduce infrastructure costs, and reduce timeto-market for their new products. Dominik Wee, Managing Director Global Automotive, Manufacturing and Energy at Google Cloud manufacturingglobal.com
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DIGITAL FACTORY
“ The manufacturing industry hasn’t yet benefited from cloud and AI technology to the same extent as other verticals” DOMINIK WEE
MANAGING DIRECTOR GLOBAL AUTOMOTIVE, MANUFACTURING AND ENERGY AT GOOGLE CLOUD
Google Cloud’s Services for the Manufacturing Industry Google Cloud solutions like AutoML Edge enable manufacturers to detect defects and monitor quality control and factory safety. LG CNS is leveraging this technology to create manufacturing intelligence solutions that detect defects in products on the assembly line. Manufacturers can use BigQuery dashboards to improve forecasting and monitor supply and demand. Swiss Steel was able to improve procurement and efficiency while improving supply chain workflow through leveraging Google Cloud. By working with partners like SAP, manufacturers can combine their operational and business data at scale to build intelligent, connected digital factories. Southwire, a leading manufacturer of wire and cable, tools and components, chose SAP on Google Cloud as it was able to improve performance, reliability, security and scalability of its SAP environment. Dominik Wee, Managing Director Global Automotive, Manufacturing and Energy at Google Cloud
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August 2021
“By optimising manufacturing operations, a digital factory unlocks new capabilities from existing assets, allowing companies to pursue new growth opportunities. In a digital factory, regional managers, business unit leaders, and other manufacturing executives are empowered with real-time, accurate data on manufacturing operations to help make more informed decisions. Knowing where to make which products, deciding where to expand or reduce capacity, and identifying lower or higher-performing
DIGITAL FACTORY
facilities will all be possible with the right information made available through the digital factory. By augmenting the human workforce, manufacturers can improve overall quality, throughput and cycle time, for example,” says Wee. Adoption Challenges Faced By Manufacturers Asked to reflect on the current challenges for manufacturers when it comes to driving the adoption of digitalisation, Wee breaks it down to four key areas:
1. Data access: Data silos and legacy IT infrastructure are an area that has challenged manufacturers due to the systems that do not share information with one another or provide a holistic view of the operations. 2. W orkforce training: It’s incredibly important to train existing shop floor talent on how to effectively leverage digital technologies. This became evident during the pandemic. It’s crucial for technology to be made with ease of use in mind so that the existing workforce can adapt to the digital world. 3. Vendor landscape: Manufacturers are challenged with selecting vendors to partner with when shaping their transformation journeys. Companies are often overwhelmed by the variety of solutions in the marketplace and must be thorough in the selection of vendor partners. At the same time, they are looking to build a comprehensive digital ecosystem with solutions that work well together without complex integrations. 4. Initiative prioritisation: Due to innovations and the pace at which technology is evolving, executives struggle to prioritise projects and investments. Lack of prioritisation and innovation governance, paired with low investment budgets, can often lead to competing projects and a divided perspective amongst the leadership. Overcoming Challenges: The Use Case for Cloud Platforms Those in the industry that are deploying digital factory practices are applying cloud technologies to address core business challenges, such as reliable operations, inventory tracking and management, supply chain optimisation, intelligent production manufacturingglobal.com
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DIGITAL FACTORY
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DIGITAL FACTORY
“Advancements in the Industrial Internet of Things (IIoT) and artificial intelligence (AI) are reducing the cost of adopting new manufacturing technologies” DOMINIK WEE
MANAGING DIRECTOR GLOBAL AUTOMOTIVE, MANUFACTURING AND ENERGY AT GOOGLE CLOUD
control, digital quality, energy management, and workforce productivity and safety. Collaborating with Siemens, Google Cloud aims to address such challenges with the help of cloud technology, to optimise factory processes and improve productivity on the shop floor. “By combining Google Cloud’s data analytics and AI/ML capabilities with Siemens’ Digital Industries Factory Automation (SDIFA) software, manufacturers will now be able to harmonise their factory data, run cloud-based AI/ML models on top of that data, and deploy algorithms at the network edge to manage everything, including predicting the wear-and-tear of machines on the assembly line,” says Wee. By bringing operational data into the cloud, organisations can break down data silos, “enabling greater visibility, connectivity and insights across the operations,” explains Wee, who adds that “purpose-built solutions which leverage the cloud also reduce the complexity for end-users.” Ultimately, “the cloud offers the potential for a more comprehensive digital ecosystem with significantly reduced data and infrastructure costs, plus increased performance, simplicity, and scalability across IT environments. Moving to the cloud is an important way businesses can optimise their technology spend and find new efficiencies,” concludes Wee. manufacturingglobal.com
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FORTINET
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August 2021
FORTINET
DIGITAL SECURITY,
EVERYWHERE YOU NEED IT WRITTEN BY: WILL GIRLING PRODUCED BY: CAITLYN COLE
manufacturingglobal.com
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FORTINET
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August 2021
FORTINET
Rick Peters, CISO, explains why cybersecurity is a continuous journey and how Fortinet can help keep businesses secure in the post-COVID world
F
Rick Peters, CISO
rom an outsider perspective, one might imagine that cybersecurity has been a primary component of every company’s strategy since the beginning of the digital era. And yet, recent headlines demonstrate how much progress is still needed across the board. Founded in 2000 by CEO Ken Xie and headquartered in Sunnyvale, California, Fortinet has established a reputation as being a protector of small, medium and large-scale enterprises, and government institutions globally. Driven by a vision of the future in which the digital world is always safe and trustworthy, it has played an indispensable role in the evolution of cybersecurity with a suite of solutions that are among the industry’s most popular. This comprehensive and complementary portfolio prioritises integration and automation to yield self-healing, faster, and more efficient operations across cloud, networks, and mobile environments. In short, Fortinet enables organisations to thrive. Additionally, Fortinet espouses a philosophy that recontextualises cyber resilience as a journey, not a destination. As such, it recognises that IT and OT systems might change structurally over time but the need to keep them protected remains constant. Sustained protection of the cyber physical landscape and business innovation is achieved by integrating Fortinet’s cutting-edge Security Fabric with the technology alliance ecosystem to match today’s threat landscape. We spoke with Rick manufacturingglobal.com
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FORTINET
Security-Driven Networking for a Hyperconnected World | Cybersecurity
Peters, Chief Information Security Officer, Operational Technology (OT) North America, to learn more. Having spent almost four decades at the US National Security Agency (NSA) in a variety of managerial and executive roles, it is safe to say that Peters knows what constitutes strong cybersecurity system defences. During his long tenure, he was able to gain credentials, experience, and insight into what it takes to successfully launch a business in cyberspace. “I had the luxury of experiencing and executing missions from both the offensive and defensive sides. Post my IC career, I felt that whatever was next professionally needed to be a departure from working in the government, and private industry afforded such an opportunity.” It wasn’t long before Peters joined the Fortinet team in early 2018. 60
August 2021
“ YOU HAVE TO ALIGN YOUR VALUES WITH THE CUSTOMER’S AND DETERMINE HOW THEY’RE TRYING TO SOLVE THEIR MOST IMPORTANT PROBLEMS” RICK PETERS CISO, FORTINET
FORTINET
RICK PETERS TITLE: CISO INDUSTRY: COMPUTER & NETWORK SECURITY
EXECUTIVE BIO
LOCATION: UNITED STATES Mr. Peters brings to the Fortinet Operational Technology Critical Infrastructure team more than 37 years of cybersecurity and global partnering experience working across foreign, domestic, and commercial industry sectors at the National Security Agency (NSA). As Fortinet’s Operational Technology North American CISO, he delivers cybersecurity defense solutions and insights for the OT/ ICS/SCADA critical infrastructure environments. Prior to Fortinet, Rick led development of cyber capability across Endpoint, Infrastructure, and Industrial Control System technologies at the agency. Previously, Rick also served as an executive leader supporting the Information Assurance Directorate at the NSA. Earlier in his career, he served in a broad range of leadership and Engineering roles including Chief of Staff for the NSA Cyber Task Force and a five-year forward liaison charged with directing integration of cyber and cryptologic solution for US Air Force Europe, Ramstein AFB, Germany.
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FORTINET
“ I DISCOVERED THAT IT WAS A ‘SOLUTIONS FIRST’ ORIENTED ORGANISATION AND THAT GOT ME EXCITED” RICK PETERS CISO, FORTINET
Sharing a mutual desire to expand OT cybersecurity, Peters spoke with Fortinet’s leadership and was impressed by what he found: “I discovered that it was a ‘solutions first’ oriented organisation and that got me excited. If you glance at Fortinet’s patent wall, you naturally realise it’s not just talking about innovation, it’s executing development to achieve it,” he recalls. At the centre of this is Fortinet’s Security Fabric- the industry’s highest-performing cybersecurity platform, powered by FortiOS, with a rich ecosystem. Conceived as a framework to enable both digital innovation and protection from cyber threats, this platform incorporates three key attributes: 62
August 2021
• Broad visibility and protection across the entire attack surface • Integrated and unified security that closes security gaps and reduces complexity • Automated and context aware, it affords faster time to prevention and efficient operations With security taking on increasing prominence within critical infrastructure for Energy and Utilities, Manufacturing, Transportation, and digitally connected building sectors, possessing expert knowledge and comprehension of the
FORTINET
sector’s evolution is critical. “You can employ cutting-edge technology, but you also need to be committed to understanding the industrial environment. You are working with asset owners who have unique goals and a different perspective on what it means to protect the cyber-physical,” says Peters. Furthermore, he identifies two other qualities that put Fortinet ahead of its competition: speed and a transparent, ecosystem-driven approach that mitigates latencies and data loss. At the heart of this is FortiOS, the foundation of the Security Fabric and what Peters considers to be a true “game changer.” Delivering transparency, scalability, and sub-second response times, it employs
FortiGate technology, a “next-generation firewall,” fully capable of accommodating the secure remote access requirements and highly adaptive cloud environments that have gained greater favour since the events of 2020. In fact, the COVID-19 pandemic amplified an entirely new security environment challenge: circumstances made remote working a necessity to maintain business continuity, simultaneously expanding organisations’ surface area for attack and instigating a shift away from on-premises business as the primary means to sustain operations. In this new paradigm, which is still far from reaching a state of equilibrium, manufacturingglobal.com
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FORTINET
Fortinet is positioning itself as a guide for “new normal” security decision-making. “It's all about building trust,” states Peters. “You have to align your values with the customer’s and determine how they’re trying to solve their most important problems.” In his view, there is no denying that data has become one of the most important assets of the 21st century - the near-ubiquity of Internet of Things (IoT) devices and the mounting viability of 5G are testaments to this, and as executives continue to collect ever-larger volumes of information to assist with operational optimisation. Maintaining a focus on enabling safe and continuous OT operations, Fortinet strives to identify and remediate threats in a way that inspires confidence and helps clients build robust security track records. Fortinet aspires to “get out in front” of cyber threats at all times, a goal it achieves through endpoint detection and response and pre-/post-event analysis. The Fortinet Security Fabric enables the company to break down risks into manageable segments while still maintaining total visibility, therefore preventing customers from missing the big picture in the middle of an attack. “What we’re doing is flipping the script,” adds Peters. “If I were to sit down with a board today, I would probably try to convince them to behave as if they've already been compromised, because it’s highly likely that it will happen at some point in time. It could occur simply by employee error in accepting malware through an email. We've certainly heard many instances of that over the last couple of years.” Moving forward, he is confident that Fortinet will continue to enable even greater threat visibility wherever the customer needs it. The company’s highly adaptive and proactive approach, which captures 64
August 2021
granular elements of security without obscuring the whole, is a clear departure from cybersecurity’s highly reactive prior incarnations. Peters believes that new best-practice standards should coalesce on the idea of “zero-trust access” - “I think we have to insist on earning trust in 2021.” Several notable instances of ransomware attacks in the US confirm the formidable security challenges that modern businesses are facing. However, even here, Peters suggests a cultural solution that Fortinet can offer: stop thinking about the ransomware “payload” as the last event in a chain. “The attacker has probably undergone a period
FORTINET
FORTINET - KEY STATS • Stock symbol: FTNT (IPO October 2009) • 500,000+ customers • 6.8 million units shipped • 776 patents issued; 211 pending • 8,615 employees • US$2.59bn = 2020 revenue • US$3.09bn = 2020 billings
“ I DISCOVERED THAT IT WAS A ‘SOLUTIONS FIRST’ ORIENTED ORGANISATION AND THAT GOT ME EXCITED” RICK PETERS CISO, FORTINET
of reconnaissance and figured out how to distribute their payload. In a distributed attack, like those witnessed in recent instances of supply chain exploitation, a payload is used to attack a broad range of targets and then exploit them based on opportunity and vulnerability.” A multidimensional problem-solver, Fortinet believes in instilling a reliance on people, processes, and technology to secure IT and OT systems. “We’re advocating for the commitment of cybersecurity education as a means of improving situational awareness and realising the power of a wellinformed employee as an asset instead of manufacturingglobal.com
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FORTINET
2000 Year founded
8,615
Number of employees
$2.59B FY2020 Revenue
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FORTINET
“COMPLACENCY IS THE ENEMY IN THIS BUSINESS BECAUSE YOU’LL NEVER REACH THE END DESTINATION; CYBERSECURITY IS JUST A CONTINUOUS JOURNEY” RICK PETERS CISO, FORTINET
a liability.” It is the company’s belief that, through education and awareness of the role they can play, employees will naturally bolster cyber defences. “Of course, that's not perfect,” clarifies Peters. “The human element is always going to offer a compelling reason to improve cybersecurity beyond present capabilities.” This takes the conversation not only back to the utility of “zero-trust access” but also behaviouralbased endpoint security. “[The latter] raises the bar by recognising threats and learning from them. It gives you not just cyber resilience but a thorough comprehension of what's going on. I think that's really important: We never want to become complacent. Complacency is the enemy in this business because you’ll never reach the end destination; cybersecurity is just a continuous maturation.” Looking ahead, Peters suggests that 2021 will symbolise a year of growth for the company, both financially and in the ongoing evolution of the Security Fabric. With the size of its initiatives in the North America, Europe, and Asia-Pacific regions doubling in the last 12 months alone, it’s clear that Fortinet has achieved a truly global appeal. Moreover, it will be capitalising on the power of partnerships to expand its problem-solving capabilities. “No one is solving [security] problems alone. We can't be everywhere
- we're not omnipresent - but I think our offering [via partnerships] allows us to be so much more agile and effective working with organisations and businesses of all sizes.” However, commitment to the journey of cyber resilience is, has been, and will be Fortinet’s enduring focus. Peters explains, “Too often, leaders get trapped believing they can just commit a set amount of resources to a particular problem and then consider the issue to be resolved with a point solution. In today’s business world, whether you're in IT or OT, that approach amounts to becoming complacent.” Fortinet is combating this culture through cutting-edge technology and a determination to help others consider cybersecurity in a new way. This, Peters hopes, will grant customers a level of cyber resilience they can trust indefinitely, as Fortinet will share an equal dedication to their organisational objectives. “Our message is that resilience comes through persistence and the ability to continually grow and mature in the solution space. Let's make sure we're protecting that which is most important to our businesses so that we can remain sustainable and viable, not just this year but a decade from now.”
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SMART MANUFACTURING
The Road to Smarter
MANUFACTURING
WITH IOT 68
August 2021
SMART MANUFACTURING
As investment grows in IoT, Dynabooks and Ericsson talk us through the current trends, use cases and challenges, alongside its importance in the industry WRITTEN BY: GEORGIA WILSON
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espite being one of the hardesthit industries of COVID-19, facing slowed economic activity, reduced demand, and the inability to cover on-site jobs remotely, “manufacturing executives remain optimistic as the COVID vaccine roll-out raises hopes for a return to some kind of normal later this year,” says David Sims, Solutions Sales Specialist at Dynabook Europe. Over the last year, Gartner research has shown that manufacturers in response to the outbreak have “invested in IoT faster than expected,” says Kyle Okamoto, General Manager of IoT at Ericsson, in order to weather the disruption, “to reduce spending, increase employee safety, improve output and create new revenue streams. Lockdowns and travel restrictions mean businesses have adapted to get things done remotely and find new ways to interact with customers. Product manufacturers (OEMs) are the major drivers of IoT adoption. In fact, Gartner expects that by 2022, 75% of OEMs will use their IoT solutions to sell new services or consumable offerings to their customers.” While it’s difficult to determine the length of time it will take for manufacturers to recover, Sims emphasises that “it’s likely digitalisation - focused on facilitating greater efficiency and automation of production - will drive manufacturing’s return to profitable growth.” Echoing Sims' words, Okamoto adds, “we’re seeing strong trends among manufacturing companies to digitise their business processes, both in connecting their sites and connecting their products.” manufacturingglobal.com
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SMART MANUFACTURING
“ As soon as businesses realise the full potential of IoT – from enabling efficiency savings to delivering the needs of individuals – they will transform everything from design to production” DAVID SIMS,
SOLUTIONS SALES SPECIALIST, DYNABOOK EUROPE
How IoT is Being Used in the Manufacturing Industry From wearable technology to digital twins and predictive maintenance, IoT can be deployed in a number of ways to help manufacturers make their operations smarter; Okomoto lists some of the ways Ericsson has helped manufacturers enable IoT in their operations: • ABB: digitalising their ‘powertrain’ has led to smart services, while remote monitoring has made workplaces safer and more energyefficient. Unplanned downtimes and operating costs have dropped by up to 70% and 30%, respectively, while asset lifespans and system efficiency have increased by up to 30% and 10%. • Stanley Black & Decker: in conjunction with Deutsche Telekom, solar-powered connected water pumps have been deployed in rural India, resulting in a reliable and sustainable water supply that makes it possible for farmers to increase annual crop production by three times and sell excess solar energy to the government for extra incomes. • WMF Group: with Swisscom, their connected coffee machines are bringing new values to all ecosystem players along the supply chain.
From themselves as the coffee machine maker to the machine operator to the venue owner and finally to us as coffee drinkers. • Grundfos: Connecting their factory floors with private 5G networks as well as rolling out connected pumps around the world with cellular technology. With predictive analytics, Grundfos can determine not only when a pump may need to be replaced but also how to optimise the flow and delivery of water. These analytic capabilities have put them in a position to evolve their business from selling pumps to selling them with maintenance as-a-service. “IoT in manufacturing will continue its forward momentum with the proliferation of 5G (public and increasingly private), AI, cloud and edge computing, leading to new use cases – e.g. human-machine interaction on the factory floor and service personnel out in the field interacting with consumer/product end-users through AR/ VR. We can also expect to see greater impacts of data analytics when disparate systems along the supply chain become more integrated, leading to truly seamless visibility across the supply chain,” says Okamoto. manufacturingglobal.com
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Microsoft Azure IoT manufacturing solutions
The importance of IoT and how manufacturers can drive smarter operations When it comes to driving smarter manufacturing operations with IoT, Okamoto breaks down the benefits into three categories: 1. Agility: this includes not only operational flexibility and efficiency but also responsiveness to demand/market changes and shorter time-to-market. 2. Advanced operations: automation with data analytics to reduce production errors, provide predictive maintenance, and improve worker safety, for instance. 3. Intelligence: timely insights to make decisions on both day-to-day operations and on new products/services/business models to grow revenue. 72
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“One of IoT’s great strengths is that it generates huge amounts of data which can then be used to make smarter decisions. Using tools like artificial intelligence (AI) and machine learning (ML) in conjunction means manufacturers can leverage insights from collected data to increase efficiencies and speed up the rate of development, while at the same time reducing errors and ensuring the highest quality of production,” says Sims. “While IoT in the manufacturing industry has been on the cards for some time now, it will see renewed importance as we emerge from the pandemic,” says Sims, who further explains that by introducing newer concepts alongside AI and ML, like edge computing solutions, manufacturers
SMART MANUFACTURING
Challenges for IoT Adoption in Manufacturing Challenge 1: Security This is a top concern for all industries, not just manufacturing. More connected devices equal more attack risks. Cellular technology outperforms other connectivity technologies as it has a built-in security mechanism based on the proven 3GPP standards. Plus, our global IoT Accelerator platform has a global core network that has built-in security solutions around threat detection and mitigation and traffic analysis, ensuring we prioritise security for our enterprise customers and telecom service provider partners.
“ One of IoT’s great strengths is that it generates huge amounts of data which can then be used to make smarter decisions” DAVID SIMS,
SOLUTIONS SALES SPECIALIST, DYNABOOK EUROPE
Challenge 2: ROI Businesses need to justify investments and realise returns, and to that end, we have developed business calculators to help enterprises quantify the benefits of IoT so they can embrace change with confidence: Manufacturing calculator. For instance, we can demonstrate that the payback period for using AR in manufacturing is less than three years. Challenge 3: Technology Fragmentation Technology fragmentation with many moving parts to consider, including chipsets, devices, networks, platforms, applications – all of which need to be orchestrated appropriately with simplicity and governance. As this environment scales, having simple and API-driven capabilities to manage this ecosystem is where Ericsson’s IoT platform is focused. manufacturingglobal.com
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can “gather, analyse and redistribute vast data sets and assist in turning them into actionable insights. Particularly beneficial for the sector, it also offers a solution to relocate data processing closer to the IoT device at the edge of the network, eliminating lag and therefore reducing incidences of network-related failure.” Ultimately IoT will have an important role to play in the manufacturing industry both now and in the future. “As soon as businesses realise the full potential of IoT – from enabling efficiency savings to delivering the needs of individuals – they will transform everything from design to
David Sims TITLE: SOLUTIONS SALES SPECIALIST COMPANY: DYNABOOK EUROPE I’m a Solutions Sales Specialist for Dynabook, with over 22 years of experience in the telecommunications industry, successfully selling complex solutions and services. I am recognised for providing best in class technical and sales expertise across a broad range of technologies, including mobility, IoT, security, cloud, fixed/converged networks and managed services. Prior to working at Dynabook, I held various roles in the telecommunications industry at Vodafone, Huawei and Nokia.
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Kyle Okamoto TITLE: GENERAL MANAGER IOT COMPANY: ERICSSON I am Kyle Okamoto, General Manager of Ericsson IoT, which is focused on a global platform providing connectivity management that makes cellular connectivity easy to use for enterprises around the world. I have a fun job of turning business concepts into realities as we power innovation and modernisation across multiple industry verticals, making connectivity easy, unlocking intelligence around devices and the network, and simplifying market adoption of IoT.
production. Not to mention the impact the COVID-19 pandemic has had on everyone’s daily lives and how introducing technologies like IoT will enable seamless plant operations while keeping employees protected with fewer people on site. “Digital transformation obviously doesn’t come without extra investment, and the manufacturing industry has been on the cusp of a new digital-first era for some years now. However, while a lot of manufacturing organisations have embraced digitalisation to date, the pandemic may serve as the catalyst for more wide-scale adoption in this area,” concludes Sims. manufacturingglobal.com
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HOW ONE FINTECH COMPANY EVOLVED FOR THE FUTURE WRITTEN BY: JOANNA ENGLAND PRODUCED BY: JAMES WHITE
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For TripActions, the challenge of the pandemic sent innovation into overdrive—and positioned the company as a global leader in travel and spend management
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he pandemic may have irrevocably changed the worldwide business climate, but some companies have managed to turn adversity into opportunity, by making agile changes that drive innovation. That’s exactly what happened at TripActions, the leading international corporate travel and spend management platform, said Robin Gandhi, the company’s SVP of Product and Payments. Since the onset of the pandemic, a series of strategic expansions has transformed TripActions from a travel management company into an end-to-end travel and spend solution—and a respected trailblazer in the fintech space. “While it’s been a difficult time for us in the travel industry,” he explains, “we’ve been able to really innovate and prepare for our customers to get back to normal.” Here’s how TripActions has positioned the company for the future. Pandemic expansions As disruptive as the pandemic has been, it’s what companies have spent this period focusing on that will define how well they perform moving forward. TripActions has used the time to create innovative new functionality, improve existing functionality, and plan for what comes next. On the travel side of the business, this includes releasing enhanced notifications for health restrictions, finding more seamless ways to repurpose unused travel credits, and building functionality to easily enable group and event travel so remote teams can meet more easily. manufacturingglobal.com
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The Modern Era of 'No Expenses' with TripActions Liquid ™
That shift to a more remote workforce also hastened change on the payments and expense side of the business, says Gandhi. “We recognized the acceleration of digital payments and the need to capture both travel and non-travel spend in real time.” After all, a distributed and remote workforce requires employees to shift their spend to spot purchasing transactions (for things like office supplies and digital subscriptions) and make more business spend decisions on their own. CFOs and controllers want to give their employees the ability to make these decisions without losing control and visibility over where and why employees are spending. This remote workforce will also expand travel spend scenarios for trips like headquarter visits or team meetings. “You have employees like engineers who almost never travelled pre-pandemic, who are now going to be flying three to four times in a year,” says Gandhi, “and they will need to 80
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book flights, stay in hotels, take Lyfts, buy food, drinks, and go out on team outings. That's a big shift that finance teams need to think about.” The launch of TripActions Liquid These were just some of the goals for TripActions LiquidTM—a fintech solution purpose-built for enabling spending to happen digitally, seamlessly, and without putting the company at risk. The larger goals of TripActions Liquid have been focused on two areas that are especially important to finance teams right now: saving time and saving money. Digital payments can reduce the time it takes for finance teams to review and reconcile spend manually, says Gandhi, so they can focus on strategies to drive the business forward. TripActions Liquid is also an essential tool for tracking where spend is happening. CFOs and controllers are hyper-focused on ensuring that there is clear visibility on
TRIPACTIONS
ROBIN GANDHI TITLE: SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS INDUSTRY: COMPUTER SOFTWARE
EXECUTIVE BIO
LOCATION: UNITED STATES Robin Gandhi is the Senior Vice President of Product Management and Payments. He leads the product, engineering, design, and operations efforts for TripActions' Liquid offering, the next-generation spend management solution. Prior to TripActions, Robin headed Adyen's global issuing offering as well as acquiring and partnerships for North America, working with the global card schemes, banks, financial institutions, and third-party partners that make omnichannel commerce possible for their merchants across the globe. He has a strong payments background, having come to Adyen from Digital River World Payments. In addition, Robin has over 10 years in management consulting, having spent time at Accenture and Mitchell Madison Group. He also founded his own firm, Broadroots Consulting, which was acquired by the New York-based agency, Converseon. Robin holds an MBA from the top-ranked INSEAD business school in Fontainebleau, France.
“ One of the key reasons for TripActions’ success has been our laser focus on user experience” ROBIN GANDHI
SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS, TRIPACTIONS
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and control is pretty powerful—not only for me as a user, but also for my finance team.” Another money-saving benefit of techforward solutions: a reduction in fraud. With so many businesses relying on remote workers and online commerce solutions during the pandemic, the opportunities for hacks and breaches have skyrocketed. Gandhi believes that context-driven data, coupled with artificial intelligence (AI), is the most efficient way to monitor transactions, secure data, and avoid attacks. That’s why the company built TripActions Liquid with AI functionality. “We can notice trends that could indicate fraudulent behavior more quickly, so companies can stop bad actors and keep company funds safe,“ he points out. AI can also use receipt and merchant data to better categorise spend and improve how transactions are classified, making it more seamless for employees and finance teams to reconcile without manual intervention. every penny, says Gandhi, and they need the detailed level of information—in real time— that tech-forward solutions can provide. “Knowing the exact state of the business in real time can allow companies to make better financial decisions,” he says. With the digitisation of payments and people located all over the world, a lot of spending (that’s not T&E and not procurement) can happen with a virtual card. TripActions Liquid allows a company to generate a virtual card for a single vendor that the company can refill with a certain amount of money every month, quarter, or year. Gandhi explains, “As an example, I can get a single purchase card for my NetSuite membership that renews every year for $5,000 and only works with that vendor. Tracking spending with that kind of visibility
Customer centricity A focus on the user lies at the heart of many business strategies these days, especially in fintech. For TripActions, customer centricity
“ While it’s been a difficult time for us in the travel industry, we’ve been able to really innovate and prepare for our customers to get back to normal” ROBIN GANDHI
SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS, TRIPACTIONS
TRIPACTIONS
T&E FRUSTRATIONS According to a TripActions survey, businesses are experiencing these common frustrations in managing their T&E
DID YOU KNOW...
is not just essential to its strategy, but a core component of the company mission. Gandhi believes this philosophy has been a game changer for the company. He explains, “One of the key reasons for TripActions’ success on the travel side has been our laser focus on user experience. From the beginning, we always believed that we needed to create delightful experiences for the end customer.” TripActions Liquid grew from the same philosophy. “Whether the user is the employee submitting the expense, the manager reviewing the expense, or the finance team approving and reconciling the expense,” says Gandhi, “we want to ensure that we’re providing the best possible experience for everyone.”
41% cited chasing receipts 29% cited time wasted in reconciliation 26% said they had no visibility into real-time spending 4% said they had no payment audit trail
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2015
Year founded
1,200+
Number of employees
50+
Markets globally
5,000+
Corporate customers
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“Knowing the exact state of the business in real time can allow companies to make better financial decisions” ROBIN GANDHI
SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS, TRIPACTIONS
Employees have also traditionally disliked doing expenses because the process was more focused on getting the expenses into the ERP rather than improving the overall experience. “That experience is what we’re changing, by completely eliminating the idea of expense reports, and it’s why we’re seeing such high interest in our offering.” Strategic partners Such developments would not be possible without the close collaboration of strong partners, and TripActions has strategically constructed its network using a multipronged approach. The first step involved building an infrastructure that could support a seamless, user-friendly experience to handle the complex processes involved in spend management.
TRIPACTIONS
Powering In-Person Connections to Move Businesses Forward | TripActions
Most of these solutions didn’t exist five years ago. But recently, a number of great fintech infrastructure companies like Stripe, Plaid, and Modern Treasury have changed how we think about issuing, acquiring, and bank integrations. “It’s helpful to have access to these offerings as we reinvent the idea of expense management as we know it,” Gandhi says. Strategic partnerships TripActions partnered with Stripe as the issuer processor, a key component of the system. Having a modern issuer processor allows decision making to occur at the 86
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moment an employee swipes a card. “We can immediately check on a few things,” says Gandhi, “such as where the employee is located, based on their travel booking and the location of the merchant; who the employee is with, based on their calendar; and what that employee is allowed to spend, based on their policy.” With Stripe, these checks happen in milliseconds as transactions occur, allowing the TripActions system to make approval decisions dynamically, instead of setting controls beforehand. Having a global card network also helped TripActions reach customers and secure transactions. The company uses the Visa
TRIPACTIONS
“ Every tech-forward company now has an opportunity to be a part of the fintech ecosystem” ROBIN GANDHI
SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS, TRIPACTIONS
network, offering full coverage wherever TripActions customers are located and allowing instant provisioning of cards to mobile devices. Gandhi explains that the final piece is the bank connectors, for which TripActions uses Plaid and Modern Treasury. “They enable us to connect directly into employee bank accounts, to pay them back instantly for reimbursements in policy, and to pull personal card transactions for reimbursements,” he says. Thinking ahead Over the next five to 10 years, Gandhi predicts that more companies will leverage manufacturingglobal.com
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a similar multiplayer approach to convert a non-financial service business into a fintech product, with the goal of providing a richer overall customer experience. “Every tech-forward company now has an opportunity to be a part of the fintech ecosystem, by leveraging the tools being built by these infrastructure companies,” Gandhi says. The problem-solving solutions that fintechs offer are also making companies
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more efficient, as processes and transactions are much better tracked. “At the core, digital payments infrastructure through fintech enables companies to better monitor where and when money is being spent in real time—and for what purpose.” But at the heart of any successful enterprise today, he emphasises, is a great user experience built on top of best-ofbreed fintech infrastructure. “In our case, we built a killer user experience on top
TRIPACTIONS
“ Combining multiple technologies across a single product vision means we can eliminate the very concept of expenses” ROBIN GANDHI
SENIOR VICE PRESIDENT OF PRODUCT MANAGEMENT AND PAYMENTS, TRIPACTIONS
of our own proprietary travel inventory infrastructure.” It has proved to be a winning combination. While other travel companies are struggling, TripActions has diversified into offerings that simplify processes for the customer and provide swift solutions. “When you take what we can do with travel bookings and combine it with what we’re building around payments and expenses, the result allows us to bring end-to-end, real-time spend visibility to a company at a level that very few others can provide.” He continues, “Combining all of these technologies across a single product vision means we can eliminate the very concept of expenses, from submission to approval to reconciliation.” All of these changes add up to limitless opportunity, says Gandhi. The travel side of the business will be essential, because hybrid and remote work will result in more employees travelling more often for company and team meetings. And the spend management side of the business will be just as important: With employees coming to the office less often, TripActions Liquid offers them ways to make business decisions on their own—without putting the company at risk. “Between our travel and payments business, we’re thinking of all of these things,” says Gandhi, “and we’re excited about the new normal.”
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AI & AUTOMATION
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AI & AUTOMATION
ADVANCED ROBOTICS 101 Manufacturing Global deep dives into the application of advanced robotics in the manufacturing industry WRITTEN BY: GEORGIA WILSON
C
ompared to their counterparts - conventional robotics - the capabilities of ‘advanced robotics’ provide manufacturers with “superior perception, integrability, adaptability, and mobility. These improvements permit faster setup, commissioning, and reconfiguration, as well as more efficient and stable operations,” explains BCG. As such, manufacturers that are implementing ‘factory of the future’ and ‘industry 4.0’ strategies are deploying advanced robotics as an essential part of advanced automation. Those embracing advanced robotics are benefiting from enhanced plant structures and processes, increasing productivity and flexibility in the factory and along the supply chain. “Analysis found that using advanced robots can reduce conversion costs by up to 15%, and combining advanced robotics with other technologies, process enhancements, and structural layout changes can yield savings of up to 40%,” notes BCG.
So What Makes Robotics Technology ‘Advanced’? BCG defines advanced automation as “decentralised intelligence that allows devices and equipment to make decisions and take actions autonomously, without human intervention.” BCG adds that the technology consists of four core elements: 1 | Holistic data models (digital twins): providing a digital representation of products and the production system. “Production equipment (such as advanced robots) can access the models to, for instance, plan the required path on the fly.” 2 | Cloud-edge infrastructure: to shift computational power and storage to the production network’s edges, bridging IT and operations technology. “It allows producers to collect data and transfer it to cloud services for processing. In addition, it enables processes on the shop floor to adjust autonomously to environmental changes.” manufacturingglobal.com
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“ ADVANCED ROBOTICS WILL BRING FLEXIBILITY INTO AUTOMATED PROCESSES” SEBASTIAN ELMGREN,
PORTFOLIO MANAGER FOR SMART MANUFACTURING AT ERICSSON
3 | D ata processing technologies: to convert data of varying size, type and velocity into meaningful information. “Recent advances in data processing technologies allow producers to continuously optimise processes (such as path planning).” 4 | W orkflow control system: to synchronise all tasks that humans or equipment perform. “Efficient management of the entire workflow requires the digital connection or integration of both machines and human workers. Workflow control system configurations are likely to evolve from centralised architectures into decentralised ones.”
Why Should Manufacturers Adopt Advanced Robotics? With the current advanced robotics market value in manufacturing totalling US$16.6bn in 2020, which is expected to rise a further US$2bn to US$18.6bn in 2021, it is clear that the digitalisation of operations is providing value for global manufacturers. Some of the many benefits that can be gained from adopting advanced robotics in manufacturing include: • Perception: compared to conventional robotics, advanced robots harness natural language processing, computer vision, and sensors to improve autonomy, dexterity and precision. As a result, advanced robotics can complete more complicated tasks. manufacturingglobal.com
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“ TO ADDRESS THE FULL SCOPE OF DECISIONS, A COMPANY MUST DEVELOP A HOLISTIC TARGET PICTURE OF THE FACTORY OF THE FUTURE” BCG
• Integrability: with service-oriented architectures, improved connectivity, access to holistic data models, and interface and programming improvements, advanced robotics are quicker to set up and require less time to learn to perform tasks. • Adaptability: advanced data processing and cloud services allow advanced robots to learn and autonomously adapt to environments to improve workflow. • Mobility: harnessing machine learning and computer vision, advanced robotics are able to autonomously guide themselves through environments. • Efficiency: by augmenting advanced robotics into complex tasks, flexible automations can help to reduce costly changeover times and improve efficiency. 94
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• Productivity: similar to efficiency, with increased flexibility and real-time problemsolving capabilities, advanced robotics can increase productivity. • Safety: using advanced sensors and low latency communication, safety is significantly improved with advanced robotics due to their better understanding of their environments and their ability to adapt and react to events. • Quality: with the use of network sharing data, advanced robotics reduce silos, making it easier to identify quality issues and track down the root cause. • Agility: independently adapting, advanced robotics allows production operations to be more agile without time-consuming preparation.
AI & AUTOMATION
Overcoming Adoption Challenges
The value of advanced robotics and the role it plays in the connected factory of the future With most manufacturers recognising the significant role advanced robotics will play in the factory of the future, many functionality types, including multispeed usage, mobile applications, and robotic kitting, are expected to become increasingly important. According to BCG, “approximately 70% of survey respondents describe these functionalities as very relevant to their future production.” With the potential to transform factory processes, manufacturers believe that advanced robotics will be the necessary tool to address increasing complexities in the industry. “Advanced robotics will bring
“From my perspective, communication is the key challenge here-both on the shop floor as well as between the shopfloor and different IT systems. On the shopfloor, connectivity needs, on one hand, to be flexible enough to match the flexibility of the robots, but on the other hand, it needs to be stable and secure enough to support the industrial use cases. Robots in the future will draw data directly from many different data systems to fulfil their tasks; this puts new requirements onto IT security to ensure that the connectivity is not open to new threats. “Wireless connectivity is the key for the shopfloor communication to provide the flexibility needed, and I see 5G bringing the perfect match of flexibility, stability and security. When it comes to the IT security part, I think it is important not to try to expand the existing office network into the factory but to build a separate network optimised for the conditions and needs in the factory.” Sebastian Elmgren, Portfolio Manager for Smart Manufacturing at Ericsson manufacturingglobal.com
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Smartest Factory Automation That Shocked The World
Myth Busters: Top Three Misconceptions About Advanced Robotics 1. Adding advanced robotics to my existing processes will give me all the benefits. No, you need to find new ways of working to make use of all the benefits. 2. It is only about the robots. No, you need to think about the whole system. 3. It is something for the future. No, the technology is here today to start using, and you should not wait. Sebastian Elmgren, Portfolio Manager for Smart Manufacturing at Ericsson
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flexibility into automated processes as well as making it possible to automate what could not be automated before, opening up for mass-customisation of products,” says Sebastian Elmgren, Portfolio Manager for Smart Manufacturing at Ericsson. Adding to his comments, Elmgren says: “I see that advanced robotics will open up more generic factories [in the future]. With the full potential of advanced robotics, a factory could almost produce any product. This will remove the need for productspecific factories, moving production closer to the customers shortening the logistics chains. It would also lower the bar for new companies to start producing their products, making it possible to buy production as a service rather than [making] large investments in dedicated means of production.”
AI & AUTOMATION
“70% [OF MANUFACTURERS] EXPECT ADVANCED ROBOTICS TO BECOME A VERY IMPORTANT PRODUCTIVITY DRIVER IN PRODUCTION AND LOGISTICS BY 2025” BCG
With 52% of manufacturers expecting advanced robotics to “become one of the most important drivers of productivity improvement by 2025,” current applications of the technology are largely found in production, logistics, quality and maintenance. “70% [of manufacturers] expect advanced robotics to become a very important productivity driver in production and logistics by 2025. Participants also expect to see significant productivity gains in quality and maintenance,” said BCG. Best Practices for the Future of Robotics Adoption When it comes to adopting advanced robotics in an organisation, BCG explains that it “extends beyond capital investments,” adopting advanced robotics affects many aspects of a manufacturing company’s business model.
“To address the full scope of decisions, a company must develop a holistic target picture of the factory of the future. This vision should encompass the implementation of multiple automation technologies, including advanced robotics,” comments BCG. To result in the successful adoption of such technology, manufacturers need to not only identify quantities, lot sizes, product variations, and plant layout and processes but take into account the business context and the implications of implementing such technology, creating a clear and holistic implementation roadmap. Manufacturers should also look to build organisational competencies and design the system architecture, as well as test and collaborate on pilot projects, to rapidly scale up successful solutions in the pilot stage. manufacturingglobal.com
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BELL FOOD GROUP
PEOPLE, NOT SYSTEMS WRITTEN BY: HARRY MENEAR
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PRODUCED BY: MIKE SADR
BELL FOOD GROUP
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Sven Friedli, CIO of Bell Food Group, talks AI, Machine Learning, Video Analytics, and how to make tech serve the business’ needs.
A
Sven Friedli, CIO of Bell Food Group
t its heart, every digital transformation - no matter what sorts of flashy technology you employ - needs to serve the interests of the business. Sven Friedli, Chief Information Officer at Bell Food Group, can’t stress enough the fact that “People, not systems, make the difference. If you don't have clever people who understand how your technology works, you're not going to benefit from it. If you don't have people working hard to understand what the business needs, not just which technologies are the coolest, you'll never end up with a good result.” Friedli joined Bell Food Group in October of 2020, taking on the significant task of driving digital adoption and transformation across the multinational meat and convenience food production company. One of the major challenges inherent to the role, he explains, is that Bell Food Group’s scale (last year, the group sold over half a billion kilos of food, including more than 300mn kilos of meat, poultry and seafood and nearly 200mn kilos of convenience products) is matched only by the diversity of its business units. It's quite a challenging prospect, given all our different locations and sites, all operating with different technologies. The Group grew quite fast over the past 10 years, so there are a lot of newlyadded companies that Bell Food owns, each with their own IT environment,” he explains. “My job is to ensure that all these systems stay up and running, find clever harmonisations that fulfil our business needs in the future and today, and drive a step-by-step digital transformation of the company as a whole.” manufacturingglobal.com
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SVEN FRIEDLI TITLE: CIO INDUSTRY: FOOD PRODUCTION LOCATION: SWITZERLAND
EXECUTIVE BIO
Passionate manager with 15+ years of experience in it, telecom, enterprise architecture, manufacturing and organisational development. Before Sven entered Bell Food Group he spent the past 12 years in the telecom industry. He started his career studying computer science and business economics at the university of applied science in Bern and worked for a startup in software development. Within Swisscom, Sven first was responsible for several managing roles in the enterprise business group, mostly focusing on managing and delivering IT projects and telecom services. Over the last five years he was responsible for the strategic direction guiding architecture, technology, and innovation within Swisscom. Since October 2021, Sven has been managing the IT of Bell Food Group. He has to keep the balance in order to master the increasing complexity in IT, to ensure the daily 7/24 operation of the company, and to make sensible use of the opportunities of digitisation for Bell Food Group.
“ IT'S IMPORTANT TO SHOW OUR INDIVIDUAL BUSINESS UNITS WHAT THESE NEW TECHNOLOGIES CAN DO FOR THEM IN TERMS OF EFFICIENCY, STABILITY, AND TRANSPARENCY” SVEN FRIEDLI
CIO, BELL FOOD GROUP
BELL FOOD GROUP
Title of the video
Founded in 1869 by Samuel Bell, the once-small Swiss meat processing firm has grown into a truly pan-regional player, with operations in 15 countries throughout Europe, from Spain to Romania. “We offer products ranging from meat and poultry to charcuterie and seafood. We are also in the convenience sector, so we produce everything from salads and sandwiches to ready-made pasta, soups, and so on,” says Friedli. “We have about 12,000 employees working across our 63 locations, as well as a huge network of suppliers and sales partners in both the food industry and the IT sector who help us fulfil the needs of our customers.”
Efficiency, Stability and Transparency The potential benefits that Friedli hopes the adoption of cutting edge technologies like video analytics, artificial intelligence (AI), machine learning (ML), and cloud-based business intelligence (BI) solutions can deliver are - he stresses - firmly contingent on an IT department that truly understands and works to serve the needs of Bell Food Group’s business functions. In order to get individual business units to support and embrace new technologies, Friedli is a keen advocate of the personal touch. “Since I started, I've been meeting a lot of different people and visiting a lot of different sites. You'd better believe that I have filled manufacturingglobal.com
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My ERP. Gives me what I need to know now. It is good to follow your intuition; however, facts are now more important than ever. Gross margins, material costs, stock on hand, or simply the right pricing. The CSB-System enables you to manage your food company based on key performance indicators, so you can always have an accurate picture in complex situations.
Find out more about the CSB solutions www.csb.com
BELL FOOD GROUP
“ EACH PROJECT IS DIFFERENT, AND WE NEED TO BE FLEXIBLE”
PETER ETTRICH TITLE: HEAD OF DEVOPS CENTRE CSB INDUSTRY: FOOD PRODUCTION LOCATION: SWITZERLAND
PETER ETTRICH
HEAD OF DEVOPS CENTRE CSB, BELL FOOD GROUP
EXECUTIVE BIO
out an incredible number of forms to get back and forth to where I've been needed over the past seven months,” he laughs. However, he readily admits that two COVID-19 tests a week and a life lived almost perpetually on the road are essential if he is to effectively drive Bell Food Group towards its digital transformation goals. “It's important to show our individual business units what the new technologies we are exploring can do for them in terms of efficiency, stability, and transparency,” he explains. “In the food industry, digitalisation makes it much easier to show our customers exactly where our product came from, which kind of farmer is contributing the
Peter Ettrich started his career over 30 years ago with the first implementation and support of the ERP System CSB at a meat and sausage factory in south Germany. After a few years, for the first time he connected his professional life with Bell Food Group and ended up taking care of CSB Systems at various Bell’s locations. The next step in his career was CSB Switzerland, where he worked as a Project Manager and CSB Consultant for national and international CSB Customers. 5 years ago he joined Bell Food Group again. His previous experience and participation in many international projects allowed him to take on the position of Project Manager and Team Leader. Additionally, starting this year, Peter became the leader of the DevOps Centre CSB, and is responsible for the CSB Applications in 19 of Bell’s factories throughout Europe.
BELL FOOD GROUP
ANABELLE KLUSMANN TITLE: HEAD OF APPLICATION LIFECYCLE MANAGEMENT INDUSTRY: FOOD PRODUCTION LOCATION: SWITZERLAND
EXECUTIVE BIO
Drives strategic digitalisation at the Bell Food Group and is enthusiastic about innovations and process optimisation. Anabelle successfully completed her dual studies as a Bachelor of Science in Business Information Technology at the Bell Food Group in 2010 where she started as a project assistant. She then became responsible for the group’s SAP Solution Manager as a Test Manager, and was later promoted to Head of Test Management. With the implementation of more and more ALM scenarios within the SAP Solution Manager, such as Solution Documentation, Change and Release Management, and IT Service Management. She continued to expand her area of responsibility, and was later promoted to Head of SAP ALM. This formed the basis for the Service Now project, which will become the new IT service management solution for the Bell Food Group at the end of 2021. In addition to the SAP Solution Manager scenarios and the ServiceNow project, Anabelle is responsible for SAP Basis and SAP Authorisation as Head of ALM since April 2021.
ingredients to it, what kind of quality product it is, and so on. Using a mixture of business intelligence (BI) solutions, data warehousing, and other technological innovations, we're able to bring information about our business together and, on the one side, leverage it to improve production and, on the other side, give more transparency to our customers.” These business-driven solutions are the result of Friedli and his team’s tireless efforts to reposition Bell Food Group’s IT function into an organisation wholly focused on understanding and meeting those needs.
BELL FOOD GROUP
“WITH THE NEW IT SERVICE MANAGEMENT TOOL WE CAN ACHIEVE OUR GOAL TO REDUCE COSTS AND DRIVE STANDARDISATION” ANABELLE KLUSMANN
HEAD OF APPLICATION LIFECYCLE MANAGEMENT, BELL FOOD GROUP manufacturingglobal.com
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“In the past, our organisation was a bit more technology-focused, but I've changed that structure to be completely businessoriented. The different tech units - ERP solutions, networking, and so on - are always supporting the business. Now, we put the business units at the centre of the organisation,” says Friedli. Taking ERP as an example, he notes that “lots of different ERP solutions can fulfil your needs. Lots of cloud solutions can help you reduce costs and drive standardisation,” but he can’t stress enough the importance that, “no matter what you decide to go with, you really understand the business needs that your technology is meeting.” Total Ham-sparency Spanning 65,000 square metres, staffed by 120 full-time employees, and capable 108
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BELL FOOD GROUP
NORA HERTZSCHUCH TITLE: HEAD OF ADMINISTRATION & INFORMATION INDUSTRY: FOOD PRODUCTION
of producing 5,000 metric tonnes of raw ham (including the highly-sought after Jamon Ibérico variety, from a very specific and ancient breed of Iberian pig), Bell Spain’s factory southwest of Madrid is one of the key production facilities for the company’s raw ham revenues in Europe. “It's a very delicious and expensive product, being produced at scale,” says Friedli. “We're talking up to a million hams hanging in our warehouses in Fuensalida as they dry and cure.” With different breeds of pig being turned into different grades of ham, which are then cured and hung for different amounts of time, depending on their quality and intended certification, the execution of thousandyear-old traditional methods in an industrial environment at scale can be a challenging one.
EXECUTIVE BIO
LOCATION: SWITZERLAND As a trainee, Nora joined the Group in July 2008. She completed a 3-year apprenticeship, during which she was able to move through a different department every six months. At the end of her training, Nora decided to stay in IT. In the IT Services department, she was first an employee until 2017, when she became the Deputy Head of the department. Her main focus here was on IT controlling, training and administration of the Bell Food Group's SharePoint, procurement of IT material resources and support of the ITSM tool. In October of 2019, she took over the position as Junior SharePoint Administrator/Data Services in which she focused more on SharePoint administration in the area of infrastructure and identity access management. At the end of 2020, Sven Friedli requested her for the IT Administration & Information area, which she took over in February 2021. Due to the wide range of tasks, which include the management of IT staff planning and the IT line budget, SharePoint administration and the sub-project management request management, the work is very versatile.
BELL FOOD GROUP
“IT IS INCREASINGLY IMPORTANT TO BE WELL-NETWORKED ACROSS OUR MANY LOCATIONS AND TO WORK CLOSELY TOGETHER” NORA HERTZSCHUCH
HEAD OF ADMINISTRATION & INFORMATION, BELL FOOD GROUP
PARTNERING FOR SUCCESS
DID YOU KNOW...
“In the past, the company didn't really have an accurate, comprehensive view of their production process,” Friedli explains. “For example, when they used to do inventory, it used to take them weeks and weeks to count all their hams. Now, we've introduced an end-to-end supply chain solution that tracks the whole process, from buying the pigs to selling the ham. All the information and data is now in one system throughout the whole process, so their inventory is a one-click process, checking revenues is a one-click process.” The project has been a massive success, helping Bell Spain to solve pain points in their production process through technology - an achievement that Friedli emphasises was only possible due to the fact that “lots of time was taken by the IT team, by consultants, down at Bell Spain to understand what kind of problems the business was facing and how they could be solved with technology.” He reflects: “We took the time to understand the steps involved in production, what kinds of reports the company needed to better understand that process, and how best to generate useful data from the different steps of the production cycle.”
Partners “I'm still learning lots about my new partners. Some I knew in the past; some I'm still getting to know,” Friedli reflects. He adds that, because mutual understanding of key goals, needs and capabilities is so essential to a strong partner relationship, “it's important to have a few but strong partners.” He continues: “In difficult situations and they're always difficult situations, believe me - you have to act in a way that works for both you and your partner. So, for me, it's important to be transparent, open and honest with your partners and ask for help when you need it.” Since he admits he is still relatively new to Bell Food Group, Friedli explains that asking for help is a big part of his problem solving process. “I'm asking for help, asking my partners how their technologies, capabilities, and experience can help me drive better business outcomes for Bell Food Group.”
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BELL FOOD GROUP
Accelerate the digital transformation. Green inspires your evolution. As a leading Swiss data center and cloud platform, we expedite your company’s future-proof and sustainable digital transformation. Established food producers are among those who put their faith in our excellent infrastructure networks. This is the digital future.
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“ PEOPLE, NOT SYSTEMS, MAKE THE DIFFERENCE” SVEN FRIEDLI
CIO, BELL FOOD GROUP
Video Analytics for a Better Chicken Nugget Now, at Bell Food Group’s ham production sites as well as in other factories throughout Europe, video analytics backed by powerful AI and ML tools - are helping further improve the production process. “With video analytics, we can capture every important step of the production process and determine in real time whether each individual ham-slice meets the right quality standards," Friedli explains. “We do the same thing at our factories that process chickens. Based on things like size, color and structure, our video analytics can determine whether which part of a bird ends up as chicken sausage nuggets or stays, uh, chickenshaped as part of better quality products.” At this point, Sven and I both agreed that we were reaching levels of hunger that weren’t conducive to a quality interview, and steered our discussion towards the future.
The Road Ahead Digital transformation is, as anyone overseeing a digital transformation is quick to tell you, an involved and unending process. Friedli is proud of the progress made so far, but readily admits that some elements of the business have a ways to go. “In some areas, we're really advanced. We're using machine learning, predictive analytics and a whole load of other cutting edge technology for example to optimise our supply chain and production planning. In others, however, we still definitely have a lot more of our journey ahead of us,” he says. As he settles into his role, meeting with different business units, learning the ropes, and finding the pain points that technology can soothe, Friedli explains that “First, I'm working to fully understand the business’ needs so that I can help use technology to meet those needs as best as possible.” Once those needs are fully understood, he continues, “My second major goal is to clearly define the digital transformation journey that the company is on - to really understand which technologies, whether that's automation, analytics, or something else to use. It's important to have a clear goal. There are so many technology trends happening all at once that it would be very easy to do lots of cool stuff, but if we don't focus, then we will never see the benefits of those technologies reach the business. Having a clear strategy is essential.”
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TECHNOLOGY
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TECHNOLOGY
5G
Could be the missing link for
INDUSTRY 4.0
adoption?
L
eading the 5G Factory of the Future (5GFoF) consortium, the University of Sheffield Advanced Manufacturing Research Centre (AMRC) is embarking on its innovative 5G journey as an active industrial research programme. “We’re hugely proud to be leading the way on this flagship project driven by our team in Lancashire at AMRC North West. We want this programme of research to be a beacon for the potent role that 5G can
Manufacturing Global speaks to Steve Foxley, CEO of AMRC, to get to the bottom of this question WRITTEN BY: GEORGIA WILSON
have for manufacturing,” says Steve Foxley, CEO at the University of Sheffield Advanced Manufacturing Research Centre (AMRC). This Government funded project includes key global players and multiple SMEs in the industry - BAE Systems, IBM, aql, Digital Catapult, Miralis and MTT – the AMRC’s role in the consortium is to integrate the 5G technology within a manufacturing context. Currently, the AMRC is testing the 5G technology through a number of use
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TECHNOLOGY
5G Smart Factories
“ The jump from 4G to 5G is like comparing a winding singlefile A-road in the English countryside to a multi-lane German autobahn” STEVE FOXLEY CEO, AMRC
cases. “These include real-time closed-loop manufacturing processes, digital twins, hybrid and mixed reality spaces, factory ecosystem management, remote asset monitoring. The AMRC North West brand new building is also going to be a smart-building and low carbon demonstrator where 5G will serve the fundamental connectivity requirements,” adds Foxley. So Why is 5G Important in Connected Factories of the Future? Could it be the Missing Link to Advance Industry 4.0? “5G is much more than a simple replacement for Wi-Fi or cable,” explains Foxley. “5G builds a new paradigm for connecting factory equipment with intelligent computational units. The unprecedented high bandwidth and low-latency characteristics offered by wireless technology breaks numerous barriers faced by industry.” manufacturingglobal.com
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TECHNOLOGY
“ 5G builds a new paradigm for connecting factory equipment with intelligent computational units” STEVE FOXLEY CEO, AMRC
What is the AMRC? The University of Sheffield Advanced Manufacturing Research Centre (AMRC) is a leading facility for translational research. We work with businesses to help them build better products and processes, drawing from academic research. We are celebrating our 20th year in 2021 - 20 years of making industrial products in aerospace, in energy, in automotive, in construction better than they otherwise would be and therefore supporting the wider economy whether at the local or national level. We have transformed the site on which we operate in South Yorkshire from a scene of de-industrialised scarring and conflict to a globally renowned research and development facility, thriving with collaboration. We have acted as a magnet to a cluster of global manufacturing companies that employ some 2500 people on the Advanced Manufacturing Park. Alongside our work in South Yorkshire, we now have operations in Samlesbury in Lancashire and Broughton in North Wales, where those regions have asked us to support their regional manufacturing ambition.
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With the use of 5G being a hot topic to discuss, the scale of the shift to 5G is both unprecedented and significant. “The jump from 4G to 5G is like comparing a winding single-file A-road in the English countryside to a multi-lane German autobahn,” says Foxley. “Fewer corners equals less latency, and faster information flows (up to 250x faster with a theoretical 1ms). The speed represents the bandwidth, where the 60mph national speed limit is compared with as fast as you are comfortable going. Or, in this case, up to 10Gbps, 10x more than the previous 4G/LTE speeds. The number of lanes represents one of the biggest enhancements of 5G, which is network slicing. This allows (as with the autobahn) parts of the network to go at different speeds, latencies, ranges and have different
TECHNOLOGY
security. Finally, there is the number of cars that you can fit on the road, and more lanes means more cars. In the case of 5G, this is 1 million devices per km2 in comparison to only 4,000 with 4G. Taken together, this represents a significant uplift in capability and opportunity for the manufacturing community; our role is to explore the potential and to highlight the areas that require further work,” adds Foxley. What Are the Benefits of 5G for Manufacturers? Understanding what makes 5G different to 4G from a technical point of view, Foxley explains the benefits of 5G for manufacturers from a practical application viewpoint: • Improved connectivity: as the number of devices on the shopfloor continues to increase; we need the ability to potentially
connect hundreds of devices. 5G provides us with that capability. • Low latency: the ability to reduce the latency of data, capture, analysis and action to a few milliseconds means that real-time control can become a reality. • High reliability: gone will be the days of the signal dropping off or of losing connectivity as you move around the shop floor. • Improved productivity and end-to-end traceability of data: access to better data more quickly means that quality can be improved, and through improved quality, we can take out the rework loop, leading to improved productivity as well as reduced waste. • Advanced technology adoption: the capability to deploy other advanced technologies such as the Internet of things (IoT). manufacturingglobal.com
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TECHNOLOGY
“ The very nature of 5G allows the computer components to come closer and tightly coupled to the industrial processes” STEVE FOXLEY CEO, AMRC
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TECHNOLOGY
Steve Foxley, CEO at the University of Sheffield Advanced Manufacturing Research Centre (AMRC) My name is Steve Foxley. I’m the Chief Executive at the University of Sheffield Advanced Manufacturing Research Centre. I’ve led the AMRC since the beginning of 2020. Prior to joining the AMRC, I was a member of the Executive Management Board of Siemens plc. During my time with Siemens, I held various senior roles in the UK, Austria and China.
The Future of 5G in Manufacturing Operations When it comes to adopting technology, Foxley emphasises that new technology often brings fresh challenges. “For 5G, there are several challenges that through this 5G Factory of the Future programme we are looking to explore for the benefit of the UK manufacturing community. “The most significant challenge the AMRC is experiencing among manufacturers is demonstrating the Return on Investment; at this point, like many new technologies, we need to build the evidence and working knowledge so that the technology can drive improvements in business performance we anticipate.” Beyond this, he also highlights the skills gap, different deployment models, potential machine interface bottlenecks, and the shortage of 5G terminals as other key challenges to overcome in the industry. However, AMRC’s 5GFoF programme aims to break down and analyse every part of the 5G deployment to overcome these challenges. “We have already gathered a significant knowledge base and skill sets; therefore, we can offer help to resolve problems faced by manufacturers at various levels, whether strategic decision making, deeper assistance with the technology, finding suppliers, or cost-benefit analysis,” says Foxley. Looking to the next 12 to 18 months, Foxley concludes: “We are expecting to see a larger number of suppliers for the infrastructure, devices, and software services. The very nature of 5G allows the computer components to come closer and tightly coupled to the industrial processes. That means we can expect to see some market disturbances; for example, larger software vendors will try to enter the manufacturing sector, which will drive greater competitiveness amongst the actors.” manufacturingglobal.com
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PTC
The Time for Digitalisation in Manufacturing is Now WRITTEN BY: GEORGIA WILSON PRODUCED BY: JAMES RICHARDSON
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PTC
James (Jianjie) Zhang
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PTC
PTC’s James (Jianjie) Zhang, VP of Market Development, discusses the importance of digitalisation for manufacturers and the future for digital factories
J
oining PTC in 2018, James Zhang, VP of Market Development describes the organisation as a fast-paced and innovative company driven by its mission to help industrial companies to create value for themselves, their customers, and the world. At PTC, Zhang is responsible for the strategies and go-to-market of its smarter connected operations solutions. “This is where we help our customers to make the factory of the future a reality. So headquartered in Boston (US), we have been helping industrial companies over the world to better design, manufacture and serve their customers and their products,” says Zhang. “If we look at industry in relation to new technology adoption, we are really seeing more and more companies adopting new technologies like the internet of things (IoT), augmented reality (AR), and analytics from proof of concept to a production deployment at larger enterprise scale. So this is a really important moment for the industry, and meanwhile, at PTC, everything we are doing with our portfolio, our solution strategy, our customer engagement approach, our go-to-market model, and how we collaborate with our ecosystem is
to help our customers capture the value of this industrial digital transformation at enterprise scale.” Contemplating the current landscape of the manufacturing industry, Zhang comments that there are “several things that really stand out. If you talk with manufacturing executives, there are really three things on the top of their radar. The first one is maximising the throughput while keeping the CapEx and OpEx as low as possible; this is about improving efficiency and operational productivity. That’s the first thing that is becoming really important as demand changes and disruptions rise in the supply chain. It has never been more important for manufacturers to maximise their throughput and efficiency.” “The second thing we hear again and again from our customers is the agility, flexibility and resilience of their supply chain. Personalisation, customisation and consumer power are really making agility and flexibility across the whole supply chain and manufacturing operations a necessity. It is no longer an option. The third trend we are seeing a lot these days is sustainability. Again and again, we are not only hearing this from the bottom or middle; we
“Since COVID, there has been a clear trend that companies are accelerating their digital transformation” JAMES (JIANJIE) ZHANG
VP MARKET DEVELOPMENT, PTC
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PTC
PTC: The Time for Digitalisation in Manufacturing is Now
“We have the privilege of working with hundreds of companies and thousands of factories all over the world to help them to transform their operations” JAMES (JIANJIE) ZHANG
VP MARKET DEVELOPMENT, PTC
are hearing the sustainability discussion at the boardroom level. There are not only regulation requirements today, but also there are more pressures from the investors and from customers directly.” 126
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“One final thing we are seeing is the labour/skills gap. This is pretty common in the manufacturing industry across the world whether you are looking at well-developed or developing areas.” The Time for Digitalisation is Now “Before COVID-19 digital transformation was thought of as ‘really cool, with a lot of interesting technology, but not that urgent’. But since COVID, there has been a clear trend that companies are accelerating their digital transformation. They are moving from the pilot stages to actual production deployment. I think this is because it is clear that those who adopted digital transformation during COVID had much stronger resilience than the ones who didn’t. I believe this is a big factor why this trend is accelerating now,” explains Zhang. “In general, I would say there are roughly 30% of manufacturing companies already on the journey to adopting digital capability
PTC
at enterprise scale. For most of these companies, a digital transformation strategy is a central programme at the corporate level, driving the adoption of digital capabilities across the entire production network. Then there are roughly 40% of companies started their journey. They have done the pilots, the studies, and now because of COVID and the pressures on their operations, they are accelerating their transition from pilot to enterprise adoption.” Taking the overall operations of a manufacturing organisation into account, Zhang highlights that there are four things that are most important in the factory: “machines, people, processes, and placings (what is where and when).” “So what we are seeing here is that digital transformation is really helping manufacturers optimise these four elements, making machines perform better and making people do their jobs better with a much smarter approach. Meanwhile, it also helps to improve the process efficiency of their entire operations.” “We call it ‘double-digit impact’ in operational metrics, for example, the quality, the overall equipment effectiveness (OEE), and labour productivity. This improvement in operational metrics really helps companies to drive the bottom line and also help them
$1.5 Bn Revenue
10,000+
Number of employees
TITLE: VP MARKET DEVELOPMENT INDUSTRY: COMPUTER SOFTWARE LOCATION: MASSACHUSETTS James Zhang is the Vice President of Market Development of Connected Operations Solutions at PTC. James works to build and deliver high impact solutions for factories of the future that incorporate PTC’s industry-leading IoT, Analytics, AR and PLM technologies. His responsibilities include prioritizing market problems, pursuing product-market fit and working directly with customers and partners to scale industry 4.0 transformations. Prior to joining PTC, James was a Director at Fujitsu America’s Business and Application Services organisation where he served as a subject matter expert on the Industrial Internet of Things and a business leader of Digital Supply Chain and Manufacturing practice.
EXECUTIVE BIO
1985
Year founded
JAMES (JIANJIE) ZHANG
PTC
“Digital transformation can impact all aspects of operations to improve machine performance, people performance, and process efficiency” JAMES (JIANJIE) ZHANG
VP MARKET DEVELOPMENT, PTC
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PTC
on the balance sheet as well. For example, some companies we have worked with have improved their OEE between 5% and 20%. “So that percentage really, if you translate that into throughput and capacity, for those where the demand is much higher than their capacities, they can quickly ramp up their productions and meet customer demands. For those who are under pressure to reduce the conversational cost, this double-digit improvement on OEE for capacity can help them to do that as well. So again, this is really where digital transformation can impact all aspects of operations to improve machine performance, people performance, and process efficiency when and where there is most impact, which eventually translates into double-digit impact and into financial benefits.” Making Manufacturing Smarter Discussing the ways in which technology is helping to make manufacturing smarter, Zhang says that “the internet of things (IoT), augmented reality (AR), digital platforms, and analytics are all enablers. PTC is an industrial leader of IoT and AR. So we have the privilege of working with hundreds of companies and factories all over the world to help them to transform their operations. There are hundreds of use cases, but there are a handful that are really powerful. “The first one is, I would say, a must-have for all digital transformation initiatives in factories, which we call digital performance management. Not only is this the most popular, most powerful, and most valuable use case by itself, but is also a foundation for a company’s digital transformation journey. Digital performance management allows the whole organisation from top to bottom access real-time actionable insights to identify, prioritise, and analyse problems manufacturingglobal.com
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PTC
PTC: HELPING OUR CUSTOMERS When it comes to customer engagement at PTC, Zhang explains that at the company, there is a common blueprint consisting of three stages.
1 | Plan value: “this is where we come in, work with our partners and customers to get alignment with their business strategy and business priorities. Are they trying to increase throughput? Improve service level? Or reduce conversional operating cost? Based on the business priorities, we work with partners and customers to define the transformation value roadmap. Most of time digital performance management is a no-regret starting point and the best use case to get started”
2 | Prove value: “with the program designed and the organisation
committed, the next critical stage is to prove the value in the selected site. It is not only about installing and configuring the software on the shop floor, more importantly, coaching frontline workers to leverage the real-time insights to inform and influence their daily jobs and run machines and processes in a more efficient and reliable way. The key of this stage is to validate the value hypothesis you defined in the plan value stage, and make what you did in the selected pilot site a template that you can roll out quickly to another 20, 50 sites”
3 | Scale value: “at this stage, PTC, customers and partners will streamline and execute parallel implements while continuously refining and optimising the program’s design”
DID YOU KNOW...
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PTC
ThingWorx Industrial IoT Platform
and implement the countermeasures, measuring the results, standardising and rolling out the closed-loop problem solving across production networks. The second is the combination of AR and IoT for labour productivity. In doing so, organisations can improve their ability to train or upskill their employees and better perform their daily job from the assembly, quality inspection to maintenance. The third is predictive maintenance and condition-based maintenance that really helps to improve machine availability and improve the return on assets.” The Evolution of Manufacturing Technology at PTC In just three short years, Zhang has seen the manufacturing industry and PTC rapidly evolve. “In my time at PTC, technology has moved from a platform only to solutions plus platform.”
Explaining what he means by this, Zhang uses LEGO as an analogy. “If you think about one box of LEGO, there are maybe 300 bricks, and you can assemble them into whatever you want to build - a car or a plane. A platform approach was similar to this. It is so powerful that it has all the bricks there to achieve the desired outcome. However, today we know what our most impactful use cases are - digital performance management, labour productivity, predictive maintenance, and condition-based maintenance. So at PTC, we have been building ready to deploy solutions for these high-value use cases. So, if you think about it this way, coming back to LEGO, you now not only have a box of bricks, you have a motor, you have pre-built components that allow you to build more complex models at a much faster speed and more importantly because they are all proven with double-digit impact, you can now get these transformational impact across your own production networks.” manufacturingglobal.com
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“The second big evolution is the ‘SaaSification’ of cloud technology. Circling back to organisations moving from the pilot stage to enterprise-scale, three things matter: the impact, speed, and scale. Cloud for sure is a great enabler of digital transformation scale and speed. It brings much better customer experience, much lower Total cost of ownership and much more scalable architecture” Factories of the Future Looking to the future of manufacturing 132
August 2021
“Eventually, digital platforms will become the foundation for companies to scale up and scale out different capabilities across the production network and the value chain, enabling capabilities that were not possible before” JAMES (JIANJIE) ZHANG
VP MARKET DEVELOPMENT, PTC
PTC
factories, Zhang reflects that “if you look at a factory of the future, a key thing here is how you can bring this digital capability through the whole production network so that this digital capability can be leveraged by not only 10 people, but by 1000s workers all over the world. That's really where you will see the transformation.” “In that concept, digital platforms, IoT, and AR not only bring speed and scale but will become the digital foundations for the factory of the future. Digital platforms will make factories more robust and more
agile. They will also enable factories to do things that are simply not possible with analogue systems, such as predictive maintenance and predictive quality. Eventually, digital platforms will become the foundation for companies to scale and upskill different capabilities across the production network, enabling capabilities that were not possible before.”
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TOP TEN 10
MANUFACTURING
SUPPLY CHAINS WRITTEN BY: GEORGIA WILSON
Following the release of Gartner’s Supply Chain Top 25, Manufacturing Global takes a look at the Top 10 from the manufacturing industry 134
August 2021
TOP TEN
F
aced with social and environmental challenges, fluctuating demands, disruption, and accelerated digitalisation, supply chains around the world have been hit with some of their biggest challenges yet following the outbreak of COVID-19. Emerging from the pandemic, Gartner identifies three key trends that are being adopted by those who are “effectively navigating the post-pandemic landscape through excellence in supply chain management”:
1. Integrated and purposedriven organisations 2. Customer-driven business transformation 3. The digital-first supply chain In this Top 10, we take a look at Gartner’s Supply Chain Top 25, identifying the manufacturers who have excelled in these three areas.
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TOP 10
10 Nike
Founded: 1964 CEO: John Donahoe Believing that “collaboration is key to raising the bar on industry standards, working conditions and issue remediation,” Nike is committed to improving standards, monitoring working conditions and providing sustainable remediation. “Today, we are working with a wide range of partners, including our suppliers, other businesses, governments, multi-stakeholder organisations, unions, civil society organisations and others to address risks and to strengthen the resiliency and capability of our supply chain,” says Nike.
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09 AbbVie
Founded: 2013 CEO: Richard A. Gonzalez Working “with the future in mind”, AbbVie is committed to supply chain, sustainability, agility, and visibility. Like many other organisations today, AbbVie has been faced with the challenges presented by COVID-19. To combat these challenges, AbbVie has been working to incorporate realtime transportation visibility into their strategy to improve agility and improve its customer experience. Purchasing goods and services from over 56,000 suppliers, AbbVie - via its Sustainable Supply Chain Programme - is also committed to working with its supplier network to ensure quality, compliance and social responsibility.
TOP 10
08 Alibaba
Founded: 1999 CEO: Daniel Zhang Helping businesses to transform the way they market, sell and operate, Alibaba provides the technological infrastructure and marketing reach to help merchants, brands, and other businesses operate more efficiently. When it comes to Alibaba’s own supply chain, the company is committed to: Demonstrating leadership in supply chain sustainability - in particular integrating a closed-loop recycling system into its operations Innovating customer to manufacturer product design to improve efficiencies Developing platforms that enable real-time management of supply chain operations “We do not pursue size or power; we aspire to be a good company that will last for 102 years. We aim to build the future infrastructure of commerce,” says Alibaba.
07 L’Oréal
Founded: 1909 CEO: Jean-Paul Agon Recognised for its agility, digital transformation and performance in sustainability, L’Oréal has been operating for more than 100 years in the cosmetics industry. Driven to accelerate its supply chain transformation, L’Oréal focuses its efforts on three key areas: agile beauty, services beauty, and digital beauty. “We are very proud of this renewed recognition that encourages us to go further and to continue accelerating our Supply Chain’s transformation,” says Francisco Garcia Fornaro, Chief Supply Chain Officer at L’Oréal, who emphasised that the achievements and transformation strategy “are all made possible thanks to the strong commitment and incredible drive of our teams.” manufacturingglobal.com
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TOP 10
05 Intel
Founded: 1968 CEO: Patrick P. Gelsinger Responsible, resilient, and diverse - Intel’s global supply chain strategy is driven by these three words in order to create technology solutions for its customers that “unleash the potential of data.”
06 PepsiCo
Founded: 1965 CEO: Ramon Laguarta As one of the biggest Food and Beverage manufacturers in the world, PepsiCo is committed to efficiency, highquality raw materials and outstanding suppliers in its supply chain. Being increasingly focused on its investment into digital tools and advanced technologies, PepsiCo strives to have a more collaborative and integrated supply chain to distribute products to the market depending on product characteristics, local trade practices and customer needs.
Four Core Areas Intel Is Committed to Tackle in the Supply Chain Include: Combatting slavery and human trafficking Responsible minerals sourcing Reducing environmental impact Increasing diversity in the supply chain “Through leadership and collaboration with our suppliers, stakeholders, consortia, and fellow travellers, we are accelerating responsible standards and accountability across industries,” says Intel.
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04 Nestlé
Founded: 1866 CEO: Ulf Mark Schneider Defining itself as “an aligned, agile, and adaptable organisation that is committed to delivering results, not only within [the] supply chain but also in support of overall business priorities," Nestlé is committed to investing in its global supply chain. Key Focus Areas for Nestlé Include: Demonstrating its strength in ESG and leadership Investing in reducing package waste Adapting to new business models and improving its end-to-end supply chain “Supply chain professionals at Nestlé play a critical role in ensuring quality products reach our customers and consumers. To achieve this, we collaborate with the commercial teams to develop the demand forecast and with our suppliers around the world to ensure responsibly sourced materials,” says Nestlé.
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03 Schneider Electric
Founded: 1836 CEO: Jean-Pascal Tricoire Against the backdrop of what has been a significantly tough year for most organisations, Schneider Electric has strived to continue on its mission to deliver its Sustainable Connected 4.0 Strategy. Combining people, processes and technology, the company has developed a unique supply chain strategy - built on three key trends tailored, sustainable and connected 4.0 - that is both good for the company and the planet. “It’s truly an honour to be held in such high regard by our supply chain peers globally. Leveraging our supply chain strategy, STRIVE, we managed to demonstrate resilience during a challenging year,” says Mourad Tamoud, Chief Supply Chain Officer, Schneider Electric.
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Johnson & Johnson Founded: 1886 CEO: Alex Gorsky
Starting out as a “simple partnership among three forward-thinking siblings,” Johnson & Johnson (J&J) sits today as one of the largest healthcare companies in the world. Leading the life science industry, the company’s leadership, operational strength and innovative expertise has helped it to not only navigate the challenges of COVID-19 but rapidly scale its operations to manufacture an effective vaccine against the virus. Ways in Which J&J Helped Navigate the Pandemic: Leveraging its manufacturing network, J&J’s medical device company - Ethicon in partnership with Prisma Health, used 3D printing to make and distribute VESper™ Ventilator Expansion Splitter at no cost going from concert to launch in 10 days. Repurposing its supply chain, J&J converted its manufacturing lines around the world to produce hand sanitiser, donating its products to health and community service workers. When demand for Tylenol doubled in certain markets, J&J ramped up its production of critical medications, running sites 24/7 to produce and ship at all times.
“In the wake of COVID19, it's organisations with the strongest supply chains that have been able to ensure people around the world continue to receive access to the products they need to stay safe and healthy” Johnson & Johnson
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Creating Digital Communities manufacturingglobal.com
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#SafeHands Soaps Production
“During times of disruption, these companies continue to lead by example and provide advanced lessons for the supply chain community” Mike Griswold, vice president team manager with the Gartner Supply Chain practice.
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Colgate-Palmolive
Founded: 1806 CEO: Noel R. Wallace Number one on our list is Colgate-Palmolive. Focused on transformation, ColgatePalmolive’s supply chain strives to be ahead of the curve, harnessing customer segmentation strategies and new business models, as well as investing in advanced digital technologies. Such enhanced capabilities have helped the company to continue to grow, becoming more resilient, agile and efficient. Not only does Colgate-Palmolive look to transform internally, but the company is also committed to reducing its impact on the environment and openly shares its innovations with third parties, such as its recyclable plastic tube - a world first.
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Reduce the threat landscape for your ICS WRITTEN BY: JANET BRICE PRODUCED BY: JAMES RICHARDSON
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“ If you have a profitable manufacturing business, you will be targeted by hackers” DR TERENCE LIU
CEO OF TXONE NETWORKS, VICE PRESIDENT OF TREND MICRO
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TXOne Networks delivers convenient and reliable cybersecurity for the era of IT-OT convergence
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f you have a profitable manufacturing business, you will be targeted by hackers.” This is the stark warning given by Dr Terence Liu, CEO of TXOne Networks and Vice President of Trend Micro. For more than two decades Liu’s single-minded pursuit has been the eradication of cyber risk to industrial control systems (ICS). During a year in which we saw ransomware attacks on both the Colonial Pipeline, which supplies 45% of the US East Coast’s fuel, and JBS Foods, the world’s largest meat supplier, President Joe Biden has released a call to action for large-scale improvements to ICS cybersecurity - a call which has been answered by TXOne Networks. Speaking from his office in Taipei, Taiwan, Liu discusses the importance of adaptive cybersecurity for ICS shop floor protection and shows how this can be achieved from network to endpoints with maximised operational integrity for both legacy and modernised assets. Cybersecurity is the practice of protecting systems, networks, and computer programs from digital attacks in which hackers seek to change or destroy sensitive information, extort money from targets, or disrupt business activities. Hackers are manufacturingglobal.com
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Approaching Risk: Defending Against the Rapid Rise of OT-Focused Ransomware Attacks
becoming increasingly innovative in their targeted attacks on OT systems, which is why TXOne Networks works with global manufacturing clients from a wide range of specialisations including smart factories, the oil and gas sector, healthcare, and other critical infrastructure sectors to ensure there are no disruptions to critical missions. Mitigation of cyber risks Since their founding in 2019, TXOne has focused on using customised technology to mitigate cyber risk in connected industrial settings. 150
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“Our solutions are natively designed to fit a manufacturer's needs and special environments. They fit seamlessly into daily operations, becoming part of standard operating procedures. Cybersecurity is fabricated into your daily operation. It's not like an IT security product being put into OT – this is why manufacturers adopt TXOne products on their shop floor and in their plants,” commented Liu. “We listen to the needs of leading manufacturers and critical infrastructure operators to develop the best actionable approach to OT cyber defence. This allows us to create customised technology that
TXONE NETWORKS
DR TERENCE LIU TITLE: CEO OF TXONE NETWORKS, VICE PRESIDENT OF TREND MICRO INDUSTRY: CYBERSECURITY
goes beyond traditional security tools to mitigate the complex challenges of securing modern work sites. “Given that ICS environments are layered and composed of a variety of equipment in different operating systems, TXOne Networks offers both network-based and endpoint-based products to secure the OT network and mission-critical devices in a real-time, defence-in-depth manner. “Both IT and OT can have comprehensive visibility of ICS assets, protocols, control commands, risks, and threats. The goal is not only to maximise ICS protection, but also to keep the business and operation running
EXECUTIVE BIO
LOCATION: TAIWAN Dr Terence Liu is the CEO of TXOne Networks, a subsidiary company of Trend Micro. TXOne Networks brings pragmatic and practical OT cyber defence to the industrial world by integrating Trend Micro’s security technology and Moxa’s ICS hardware and experience. As a vice president of Trend Micro, Liu also leads Trend Micro's Network Threat Defense Technology Group, where he focuses on developing and marketing distributed security solutions across the telecommunication infrastructure by leveraging new-generation telecommunication technologies like Software Defined Networks (SDN) and Network Function Virtualisation (NFV). Prior to this Liu was the CEO of BroadWeb. He defined its DPI licensing business and led profitability for five years in a row. BroadWeb was acquired by Trend Micro in October 2013.
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Smart Factory. Smart Defense. Digital Security for Manufacturing.
Manufacturing is a lucrative target for cybercrime. As a large industry with valuable data and a growing IoT attack surface, your data is of direct value to hackers.
Learn more
TXONE NETWORKS
Securing Critical Infrastructure: Lessons Learned from the Colonial Pipeline Ransomware Attack
even when security is threatened. Hackers will pick the most profitable manufacturer or enterprise to attack. If your business is profitable and successful sooner or later they will come for you. You need to be prepared and protected.” Heightened risk from pandemic According to Liu, the current pandemic has shifted the security landscape considerably and introduced many new risks leaving the door wide open for malicious adversaries.
“ When the hackers get into the system, they have the ability to cause a catastrophe or even cause injury – this makes cybersecurity much more important” DR TERENCE LIU CEO OF TXONE NETWORKS, VICE PRESIDENT OF TREND MICRO
“The cybersecurity world has fundamentally changed. Prior to COVID-19, a manufacturer could rely on physical help for the machines on their shop floor. Now, such help is delivered through remote diagnostics which may have to be accessed through the internet. “When you open the door to that technician, you also open the door to hackers – actually, it's the same door. If hackers decide to target your company, they’ll return again and again trying to find a way into your network, and if they’re successful then not long after that the key to your door will be available for sale on the internet. Another group of hackers will leverage that information to get into your system, implant ransomware, exfiltrate sensitive data, and demand money for its return.” “Manufacturers need to think more about the process of creating protection, and how to have a secure way for your vendors or technicians to be able to access your system. That's a challenge for companies who don't have a good defensive strategy in place. manufacturingglobal.com
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Portable Security™ 3 makes it easy for ICS owners & operators to scan for malware on standalone computers
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TXOne ICS Cybersecurity Deployment Architecture
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In-depth Data Breach Analysis of Critical Infrastructure in the Asia Pacific Region
“Since the pandemic, manufacturers need to think about how they’re making their systems more automated. As new technology makes factories more automated, we don't need as many technicians or employees on site – but that automation also makes cyber attacks easier to conduct. Added convenience and control for personnel is turned into added convenience and control by intruders. When the hackers get into the system, they have the ability to cause a catastrophe or even cause injury – this makes cybersecurity much more important.” Research into cyber threats is crucial to educating the public and strengthening the defensive tools that help combat threat actors and attacks. TXOne Networks is supported by R&D and security research teams based in their US and Taiwan offices, as well as business development managers and subject matter experts working all over the world.
Three TXOne Network solutions for ICS environments: 1. Endpoint protection Modern work sites usually need to accommodate legacy endpoints in their operational environment, which must be able to interconnect and work with their different assets. “Traditional antivirus is not designed for the ICS environment – constant virus signature updates depend on an internet connection while intrusive file scans take up a lot of processing power and can easily interfere with operations,” comments Liu. “ICS endpoint protection requires a different spectrum of consideration. Security must never jeopardise routine operation, slow down computation, or delay decisions made in the factory production process.” TXOne Networks offers adaptive, allterrain ICS cybersecurity solutions in the manufacturingglobal.com
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form of different endpoint suites that secure both legacy systems and modern devices in a variety of work site environments, customized with input from leading specialists in each vertical. 2. Network defence Cyber attacks can spread through an OT network lightning-fast, creating a catastrophe with a price tag numbering into the millions of dollars. Unpatched and legacy assets are usually essential to operations, and they require specialised protection that safeguards and maintains productivity. “TXOne Networks’ adaptive ICS cybersecurity solutions are specifically designed to create 156
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a safe, reliable work environment even for the most sensitive or essential technologies, keeping the operation running,” said Liu. “Virtual patching shields unpatchable or legacy devices and network segmentation mitigates risk by making the network fundamentally more defensible while advanced ICS protocol-based trust list profiling gives granular, highly-detailed control over assets. These have been worked into industrial-grade ISIPS (Internal Segmentation IPS) appliances purpose-built for any business intention.” 3. Security inspection Continuity of security inspections is integral to a modern work site defense plan. “Without
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routine security inspections personnel, process, and technology are all vulnerable,” comments Liu. “The correct solution for scanning and clean-up streamlines the necessities: supply chain security auditing, inspection of all devices that visitors bring on-site, and checkups for air-gapped assets. “TXOne Networks’ Trend Micro Portable Security 3 offers a USB form-factor easy for non-experts to use, with LED lights that show the inspection result after scanning Windows or Linux devices. To eliminate the shadow OT, asset information will be collected during every scan and sent to the central management console where it’s easily reviewed and archived. This installation-free device’s portability and
user-friendliness is tailored to the fast-moving needs of ICS environments and fits in the palm of your hand.” Partnership with ATOS TXOne Networks began as a joint venture by “cyber giant” Trend Micro, which has more than 30 years of experience in cyber defence, and Moxa, who provide industrial networking products. “Having Trend Micro and Moxa on board allows us to leverage their technology and knowledge so that we can create ideal solutions for operational environments,” said Dr. Liu. Commenting on their partnership with ATOS, Liu said: “Our host, ATOS, has a manufacturingglobal.com
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QUICK FIRE QUESTIONS: Dr Terence Liu, CEO of TXOne Networks, Vice President of Trend Micro Why should a smart factory adopt TXOne Networks solutions? “Manufacturers should adopt TXOne Networks solutions because we offer native cybersecurity technologies developed for manufacturers and critical infrastructure operators to make sure they can be seamlessly integrated into your operation.” What do you consider to be the biggest cybersecurity threats in 2021/22? “Targeted ransomware and double extortion are two of the biggest security threats right now, and potentially devastating supply chain attacks will be one of the main attack methods during the next two years.” What is the biggest mistake a company makes when looking at cybersecurity? “A company should be able to segment their infrastructure into small networks, have streamlined routine inspections, and make sure their east-west traffic is clean.” What technology are you most excited about in the future when it comes to enhancing cybersecurity? “ Artificial Intelligence and machine learning will be significant technologies for creating more manageable workflows and reducing alert fatigue in SOCs (Security Operation Centres). We also expect increased accuracy from XDR (Extended Detection and Response) platforms to ensure early breach detection and that the ideal response is chosen.”
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“Our solutions are natively designed to fit a manufacturer's needs and a spatial environment. They can seamlessly fit into the operation and become the standard procedure” DR TERENCE LIU
CEO OF TXONE NETWORKS, VICE PRESIDENT OF TREND MICRO
fantastic relationship with Trend Micro. “We work closely with ATOS, who have partnered with us to make our products available in Europe.” Competitive edge “I think TXOne Networks is in a very unique situation,” said Liu. “When companies began trying to do industrial cybersecurity, they started from providing asset management, because if you founded a cybersecurity company for OT 10 years ago people didn’t have the anxiety that they do now – they just wanted visibility. “TXOne Networks was founded in 2019 at the right time, when the spotlight was shining on OT. Cybersecurity has three stages – you find, you identify, and then you protect. We’ve focused on providing streamlined, ICS-tailored protection to our customers,” said Liu, who admitted that while the pandemic may have slowed the
pace of development for some start-ups it had set off a significant increase in the need for OT cybersecurity. “Our competitive advantage is that our solutions are natively designed for the world of OT and the ability to work with a full modern control system – our competition takes their IT-based product, puts it into ruggedized hardware and calls it OT security, but to us there is a huge difference. OT stakeholders need solutions specially adapted to their environments and daily work. This is especially true for the different OT verticals, which often have different mission-critical needs. Our ability to adapt to the potentially fragmented OT environment and provide OT-native cybersecurity products is our main difference,” said Liu.
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POWERING FREE SPEECH IN THE FACTORY OF THE FUTURE WRITTEN BY: JANET BRICE
PRODUCED BY: JAMES RICHARDSON
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“Data is the new oil in a factory” according to Dr Stephan Biller, CEO of Advanced Manufacturing International and Board member of MTConnect, which drives seamless communication between manufacturing devices
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he factory of the future will depend on “Key performance indicators (KPIs) in a seamless communication between factory include productivity, quality, costs, devices, and this is exactly what noton-time delivery, sustainability, and safety. for-profit organisation MTConnect MTConnect’s tools will create a seamless Institute is offering. environment and resilient future which will “Data is the new oil in a factory,” said Dr help reduce energy, such as water or heating, Stephan Biller, CEO of Advance Manufacturing and improve the sustainable footprint of a International (AMI) and Trustee of MTConnect, factory,” said Biller. who outlines how the company is helping to create connected factories through In essence, MTConnect is building its success their common device language and on the following attributes: communication. • Simple MTConnect is an open, royalty-free standard • Free that provides a semantic vocabulary for • Open manufacturing devices. In practice, it is used • Powerful for factory floor monitoring, Overall Equipment Effectiveness (OEE) calculation, predictive MTConnect has been developed by analytics or maintenance, manufacturing the industry and supported by AMT – The cell integration, scheduling and routing, and Association for Manufacturing Technology Enterprise Resource which is focused on Planning (ERP) integration. promoting the MTConnect “The factory of the “The factory of the Standard. “As a member future depends future depends on stronger of the board of trustees, communication among I help guide the decision on stronger devices, speaking freely making of what standards communication which is what MTConnect to develop next,” said among devices, offers,” said Biller who Biller who was recently speaking freely, which elected to The National pointed out the systems allow machines within Academy of Engineering is what MTConnect manufacturing to know (NAE) in recognition of can offer” what other machines are professional excellence doing - whether they are in engineering. He was DR STEPHAN BILLER on-site or thousands of elected for leadership CEO OF ADVANCE MANUFACTURING miles away in another part and advancement INTERNATIONAL AND TRUSTEE of the US. of manufacturing OF MTCONNECT 162
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technologies and innovations based on IoT and digital data. Since the first initial specification was published in 2007 the standard has been adopted by more than 400 companies and research organisations including automotive, aerospace, medical, as well as software developers, system integrators. Today, MTConnect helps shop floor monitoring and control.
“ We wanted to create a standard that every machine could use, so the data and communication protocols were not proprietary to that company” DR STEPHAN BILLER
CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE OF MTCONNECT
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“We wanted to create a standard that every machine could use. So, the data and communication protocols were not proprietary to that company but were the same. That would allow the users of the products to easily integrate them into their IoT platform. The access to data from the users of those machines is what is advantageous to their customers and the producers of those machines,” said Biller. Advantages of using MTConnect include: • Widely adopted • Easily implemented • Installed on new and legacy equipment • Many new devices MTConnect is built-in Supporting all of this is the MTConnect Institute community which is continuing to grow its open-source libraries, free agents and adaptors for new and legacy machines. Biller highlighted a new agent is now available to modernise and streamline performance on any device.
MT CONNECT
DR STEPHAN BILLER TITLE: CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE COMPANY: MTCONNECT INDUSTRY: TECHNOLOGY Dr. Stephan Biller is the CEO and Founder of Advanced Manufacturing International, a not-for-profit that aids Small and Medium Manufactures with their Digital Transformation. Prior to that he was the Vice President of Product and Offering Management for AI and IoT at IBM, the Senior Technology Director and Chief Manufacturing Scientist at General Electric and a Tech Fellow and Global Group Manager at General Motors. He holds a Dipl.-Ingenieur degree from RWTH Aachen, Germany; a Ph.D. in Industrial Engineering and Management Sciences from Northwestern University; and an MBA from the University of Michigan. He is a member of the National Academy of Engineering.
2008
year MTConnect was founded
4
Number of Employees
$6K Revenue
EXECUTIVE BIO
Focus on SMEs MTConnect has been offering seamless connectivity since 2007, with Biller’s company AMI focussing on small and medium enterprises (SMEs). Biller points out that 98% of US companies have less than 500 in their workforce, so they are determined to help these smaller manufacturers who are the backbone of the economy. “Manufacturing helps with the fabric of our society - every manufacturing job produces about four other jobs, and this statistic extends to seven jobs for the auto industry in Germany. Everybody counts, but I think we can all agree that it's quite
MT CONNECT
“ Where data is playing a role, it is becoming the enabler of Industry 4.0” DR STEPHAN BILLER
CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE OF MTCONNECT
significant for the infrastructure of the community and I think this is the class we need to help,” he said. “There are significant benefits to integrating digital manufacturing technologies and processes into manufacturing operations. I look forward to helping our customers, particularly SME manufacturers, harness the vast potential of digital manufacturing to transform their companies,” he said. “All the decision-making is going to be data-driven in some cases with the humans in the loop, in many cases without. It will be sustainable, flexible, and agile. It reduces the cost and complexity of system integration 166
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and fosters interoperability for the factory,” said Biller from his office in North Carolina. Cross-factory learning MTConnect systems not only drive communication within the factory but can have devices ‘talking’ in different parts of the world creating cross factory learning. “If you fix a problem on one site, you can take those learning and transfer them to the other site. MtConnect helps us to standardise between different factories on the communication protocols, and that allows for cross factory learning. “You could even think about extending this to cross-company learning. Imagine if
50,000 devices use MTConnect
50
countries use MTConnect
400
companies have signed up to be members of MTConnect
13
years since first release
1000’s of software solutions
300
machine builders, integrators and end-users developed the system
companies would be willing to share data, not their intellectual property, of course, but on the process side, they may be willing to do that and then you would have learned from one company to the next. I am very excited about those possibilities.” Seamless connectivity with open-source Biller pointed out that MTConnect not only provides the connectivity but also trains the engineers in the factory and helps to monitor the processes. “In the past, you would buy machines from all sorts of outstanding companies and would have their proprietary communication protocol. Your engineers would have to learn
this, decipher it and try to figure out how to integrate it with their databases and their infrastructure,” he commented. “Now, with MTConnect, they are already trained in this. It’s always the same communication protocol that allows us to get to a plug-and-play environment where we just connect the machines, connect the data cable or connect to the wireless infrastructure, and you’re up and running. It's a very seamless way for companies to get the data off the machines.” Data is the new oil in a factory Commenting on how MTConnect uses analytics, Biller said: “You immediately manufacturingglobal.com
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“ By making the data more accessible, which is what MTConnect does, we are getting to an environment where you really get this plug and playoff” DR STEPHAN BILLER
CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE OF MTCONNECT
know the speeds, feeds, and process parameters of a machine. That’s incredibly helpful in developing an understanding if something goes wrong and then improving on it not to make the same mistake again. “Data is the new oil in a factory. There is some truth to that saying because data is now improving manufacturing operations, predicting when machines are going down, helping to improve or detect problems, as well as improve long-term systems quality and throughput. “Where data is playing a role, it is becoming the enabler of Industry 4.0. “By making the data more accessible, which is what MTConnect does, we are getting to an environment where you get this plug-andplay. A manufacturer can install a machine and get the data right away, which is very helpful,
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QUICK FIRE QUESTIONS: Dr Stephan Biller, CEO of Advance Manufacturing International (AMI) and Trustee of MTConnect What does a factory of the future look like with MTConnect? “All the decision-making is going to be data-driven in some cases with the humans in the loop, in many cases, without humans in the loop. It will be sustainable, flexible, and agile.” How will this benefit a manufacturing company? “AMI and MTConnect will help a manufacturer on that journey to the digital transformation because it allows you to collect the data in a very inexpensive way and then use that data to make better decisions for throughput, quality, cost, and fulfilment, which is the KPI in every factory.”
instead of having the engineers in the company go through manuals to learn the proprietary and communication protocols.
What technology are you most excited about in the future? “Many people talk about Artificial Intelligence (AI), but I would expand on that to AI and real-time system optimisation driven by cloud, 5G and IoT.
DID YOU KNOW...
Digitisation - driven by the human touch Despite the focus on digital transformation, Biller admits the human aspect is critical to its development. “It is vital that the people who are using these tools help to install them and even contribute to developing them as this gives them ownership. “You must start with the basic data collection, then maybe the visualisation of the data, and move to decision support, a little bit more analytics, then you get two optimisations, and only finally you get to automation of decision-making, and you need to do this at the right space speed. It’s critical everyone in the factory knows what is going on and that you provide an opportunity for feedback. “If you don’t bring the people along in the digital journey, you will fail.”
Is AMI planning to expand into Europe? “As the name suggests, AMI (Advanced Manufacturing International) is a global company, so we are currently working with another consortium called European Institute of Innovation & Technology (EIT) to transfer and share technologies across the Atlantic. MTConnect is already in Europe providing standard communication interfaces to many machine tools.
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“Digital transformation is something manufacturers should really co nsider, or they will be left behind” DR STEPHAN BILLER
CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE OF MTCONNECT
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“Digital transformation is something manufacturers should consider, or they will be left behind. Start small, with something important, but start now. It’s critical because it helps you to reduce costs and improve revenue as you become more transparent for your customers - a game Amazon is winning right now - and you can only win. MTConnect and AMT The MTConnect Institute is a subsidiary of AMT, and together they are on a mission to create open standards and foster greater interoperability between devices in manufacturing. “MTConnect is sponsored by AMT, which is a membership organisation for manufacturers, big or small,” said Biller. His company AMI is even providing a year-long free membership
SPOTLIGHT ON ADVANCED MANUFACTURING INTERNATIONAL
in their Smart Manufacturing Leadership Consortium, to get SMEs going on their digital transformation. “We're planning to continue this and give a free membership to any small or medium manufacturer who's buying our product so that they can freely exchange about the use of that particular product. “It can be difficult for SMEs to share this type of information, but if we can achieve this, we can all get better,” said Biller. “I am interested in helping small companies as I think there is a big need. That is why we my company, AMI, is selling a product that is very basic but ultra cost-competitive. It's simple enough for people to operate it. We are AMI is helping to not only give them a product but also educate the workforce. We have AMI also has a membership programme, the
Advance Manufacturing International (AMI) is a subsidiary of The Manufacturing Technology Deployment Group (MTDG) located in Clearwater, Florida, USA and was founded in August 2020. Dr Stephan Biller was appointed as its CEO. AMI is a sister, not-for-profit company to the National Center for Defense Manufacturing and Machining (NCDMM) to support MTDG’s longterm growth strategy within the global advanced manufacturing industry. AMI aims to accelerate the digital transformation of Small and Medium Manufactures through ultralow-cost easy-to-implement digital products, a membership program through the Smart Manufacturing Leadership Coalition, and workforce development Biller, after career stints with General Motors, General Electric and IBM, brings to AMI more than 20 years of experience in analytics, Artificial Intelligence, Internet of Things (IoT), additive manufacturing, and digital manufacturing, for which he has recently been elected to the National Academy of Engineering.
Smart Manufacturing Leadership Coalition Consortium, that is helping us to get a group together, with SMEs, so that they can help each other.” Virtual launch for Advanced Manufacturing International (AMI) Reflecting on starting a company at the height of the pandemic in September 2020, manufacturingglobal.com
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SNAPSHOT OF MTCONNECT Is MTConnect software? No. The standard defines data tags and the behaviour of a software agent. What is the standard used for? There is no one target use case. Any application that benefits from a normalised, pre-defined vocabulary of terms will benefit from the MTConnect standard. In practice, it is used for factory floor monitoring, OEE calculation, predictive analytics or maintenance, manufacturing cell integration, scheduling and routing, and ERP integration. How do I use MTConnect? Most manufacturers using MTConnect buy machines, software, and systems that support the standard. Devices require a software adapter to translate native registers/data tags to the vocabulary defined in the MTConnect spec. Most users will only access their device data via another application (OEE software, MES.) Where can I get it? Current and archive releases of the standard are free and publicly available here. Free, opensource developer tools are on GitHub. Do I need MTConnect if I’m already using another protocol (OPC, Profinet, Modbus, SCADA)? Terms defined in MTConnect are specific to discrete manufacturing and intended to carry useful real-world semantic meaning. That vocabulary is created, vetted, and agreed upon by industry stakeholders with domain expertise. For applications where uniform semantics are already defined, the additional semantic definitions from MTConnect may be unnecessary.
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“ Manufacturing helps with the fabric of our society” DR STEPHAN BILLER
CEO OF ADVANCE MANUFACTURING INTERNATIONAL AND TRUSTEE OF MTCONNECT
Biller said it was an interesting endeavour. “At AMI, we had to build all these relationships virtually, which was a bit more challenging. But one of the things we did, and still do, is call a daily scrum of the team, so we all meet up and talk for 30 minutes, and then off we go. “But as the US is now well ahead in terms of vaccinations, I am now starting to visit clients, which is very exciting because I can get to
understand their problems. We can then start to build a strategy and pave the way for their factory of the future.” Commenting on AMI’s competitive edge, Biller said it came down to just three things, simplicity, low cost, and being a non-profit organisation. “AMI is a non-profit organisation, so we don't have to worry about stock price, stockholders and profit margins. We provide simple, ultralow-cost solutions - so our competitive advantage comes down to those three things. We then train people and also have a workforce development programme.” Focus on cybersecurity Biller pointed out that AMI is working very closely with universities, and they have a partner called StrongKey that is helping out on cybersecurity.
“Whenever you install IoT devices, you have to worry very much about bad actors who try to stop you from doing what you want to do. I recently saw this first-hand at my home in North Carolina when we almost ran out of fuel due to a cyber attack. So, whenever you do an IoT installation, you have to think about cybersecurity, and we have partners, like StrongKey, that work with us on that.” Biller pointed out the power of working with PhD students at the universities. “This offers the combination of our experience and young, fresh minds. I believe that you don’t throw away old knowledge; you enhance it with new knowledge and take a hybrid approach when it comes to modelling, AI, and data.”
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TAKING THE LOAD IN GLOBAL SUPPLY CHAINS WRITTEN BY: JANET BRICE PRODUCED BY: THOMAS LIVERMORE
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P
Bespoke load handling equipment from SMAG is the one-stop-supplier for the world’s top 10 ports and in construction
einer Grabs “is a brand name in every harbour on the planet,” according to Rainer Veith, the CFO of Salzgitter Maschinenbau AG (SMAG), as he explains how the acquisition and the development of the grabs product range resulted in SMAG becoming an international brand. PEINER SMAG Lifting Technologies (PSLT) is a subsidiary of SMAG, the worldwide leading manufacturer of grabs and lifting equipment that are critical to the flow of global supply chains. SMAG is renowned for its problem-solving skills, bespoke products and close relationship with the customer, which are cited by Veith as three reasons for its global success in load handling equipment, process engineering and special machine construction. “The secret of our success is that SMAG evolves with the times and re-invents itself - resilience is in our DNA,” said Veith, who joined the German-based company just after its centenary celebrations in 2019. “We now have a brand name that is known across the globe.” Today, through its subsidiaries, SMAG is the world market leader in the manufacture of grabs used in global transport, waste management and agriculture. Other divisions include process engineering, special vehicles and mobile antenna masts. The group, which employs 2,000 people, has dedicated manufacturing facilities in Germany, China and India, 27 locations 176
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worldwide and a reported sales volume of €300 million. SMAG uses its expertise in metal and heavy steel construction in combination with hydraulics and electrical engineering. The three pillars of the business include: • Load handling equipment - includes grabs and spreaders • Process technology - system solutions are used for the industrial extraction of sugar • Special mechanical engineers - mobile drilling, mobile mining machines and mobile antenna masts Veith points out that process engineering in the sugar industry is another component of SMAG’s growing portfolio. “In 2018, SMAG acquired 94 per cent of the BMA, the wellknown market leader in process engineering when it comes to sugar refineries. They have double-digit million Euro projects around the world and are definitely an asset for the entire group.”
“ You will see the giant P (for PEINER AG) in every harbour on the planet” RAINER VEITH
CFO AT SALZGITTER MASCHINENBAU AG (SMAG)
SALZGITTER MACHINENBAU AG
Rainer Veith, CFO at Salzgitter Maschinenbau AG (SMAG)
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Title of the video
“ The secret of our success is that SMAG evolves with the times and re-invents itself - resilience is in our DNA” RAINER VEITH
CFO AT SALZGITTER MASCHINENBAU AG (SMAG)
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Pronounced problem-solving According to Veith, SMAG’s role in the market is based on the company’s pronounced problem-solving skills, superior, standard-setting products, high global sales power and global service. “We are close to the customers because we do not have serial production or that many standardised products, as we focus on bespoke vehicles, grabs and refineries. So, we must be close to the customer, we must listen, and we do listen to the customer and to their needs as this is absolutely key,” said Veith. “We have the whole range of grabs from the very small to the biggest ones, but most of our competitors have focused on one niche type of grab. By offering this complexity of grabs, we jeopardise a little bit on our economies of scale, but we must stay close to the customer and listen to their needs in order to be a one-stop supplier to them.”
SALZGITTER MACHINENBAU AG
RAINER VEITH TITLE: CHIEF FINANCIAL OFFICER COMPANY: SALZGITTER MACHINENBAU AG (SMAG)
EXECUTIVE BIO
Grabs and spreaders One of the major milestones for the group came in 1986 when it acquired the grab technology division of PEINER AG. Its range of products includes bulk cargo and container handling as well as special hoists. Key areas of action are ports, ships, manufacturers of cranes and construction machinery, steel mills, waste-to-energy plants and recycling/ scrap handling industries. Based on the proven PEINER product design, PSLT's factories in Salzgitter (Germany, Headquarters), Shanghai (China) and Chennai (India) develop and manufacture lifting equipment for any cargo handling application. Six years ago, PSLT added spreaders for container handling to its portfolio, which are used in ports and terminals worldwide. The new subsidiary RAM SMAG Lifting Technologies Pte Ltd, headquartered in
Rainer Veith trained as a banker. In 1996, he graduated from the University of Paderborn with a degree in business administration. He later completed a degree at WHU / Kellogg with an MBA. Veith began his professional career as a trainee at Robert Bosch GmbH in the USA, Germany, France and Italy. Veith took on management tasks for E.ON and Uniper. He then worked as General Director and CFO for the Bilfinger Group in Lyon, France. Veith was appointed to the SMAG management board in 2019 and is responsible for finance, controlling, human resources, procurement and IT.
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“ Shrinking core expanding periphery - this is how my MBA professor Ranjay Gulati described strategic alliances, and I think it is true today” RAINER VEITH
open-systems.com
CFO AT SALZGITTER MASCHINENBAU AG (SMAG)
CRAZY GOOD CYBERSECURITY At Open Systems we care obsessively about our customers’ operations and outcomes. That’s why we provide them with crazy good cybersecurity that delivers way beyond expectations. Learn more about our SASE, MDR, and ZTNA solutions.
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Singapore, manufactures the products under the brand RAM Spreaders in Changshu (China). “We are the industry leading grab manufacturer,” said Veith. “Some of the grabs can be up to 30 - 45 cubic meters in volume, and one grab can weigh up to 18-22 tonnes - so this really is a dream for big kids captured in adult bodies - they are the coolest products,” said Veith. The group's customers include shipping companies, port companies, port crane, mobile crane and construction machinery manufacturers, as well as manufacturers of special vehicles, European defence forces, mining and drilling companies and sugar factories.
STRATEGIC ACQUISITIONS Acquiring the grabs product range from PEINER AG helped SMAG expand into an international brand. SMAG also acquired BMA in 2018, a market leader for the process engineering of sugar refineries. In 2015 NSL in Singapore and Salzgitter Maschinenbau AG merged their spreader and grabs divisions as part of a joint venture under the leadership of PEINER SMAG Lifting Technologies GmbH (PSLT). This is one of the world's leading manufacturers of grabs for handling bulk goods and for board cranes. This merger resulted in the world's largest group of companies for load handling equipment in the field of bulk goods and container handling. The partnership enables the group to exploit even greater market potential in addition to the port equipment sector.
A century of engineering excellence Salzgitter Maschinenbau AG dates back to 1919 when Anton Raky, engineer and pioneer of modern drilling technology and oil production, founded the Anton Raky company, deep drilling in Salzgitter. The foundation stone for SMAG was laid in 1937 when the Salzgitter Group took over the factory for the construction of drilling machines. In 1986 the company acquired the gripper product range from PEINER AG and, over the years, expanded it into an international brand. Jürgen Bialek who has been with PSLT for 51 years and was pivotal in building up the successful grabs business not only in Salzgitter but in the Asian companies as well said during the 100th anniversary: “..50 years of Peiner grabs – they are like a part of my family.” Modern procurement Commenting on the subject of procurement within SMAG, Veith said: “Procurement is for me a leading edge when it comes to value creation. It would be utterly wrong to see only the transactional manufacturingglobal.com
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FUTURE STRATEGY SMAG wants to expand its position in the market as the world's leading provider of grabs and spreaders for efficient freight handling. It is relying on the growth market of maritime freight traffic. For this, SMAG can fall back on many years of experience in metal and heavy steel construction and on independent competencies in construction, production and assembly. The local presence in the large volume markets (China, India) is being expanded. In addition, SMAG is focusing on expanding its presence in the global mining technology market with a focus on drilling technology underground and above ground, as well as building special vehicles for mining and process industries, such as steelworks. SMAG’s corporate strategy is geared towards sustainable and profit-oriented growth.
part of procurement, but my staff has to challenge traditional views and tendering practises and constantly look for better sourcing options. Do not underestimate indirect procurement but see it as the best chance for savings. For example, SMAG: Purchasing volume per annum in Germany approximately €100m, of which indirectly €20 million, of which 10 per cent saving equals €2 million, which would be equivalent to a reduction of 30 FTEs. “For me, the core elements of value creation are sales, procurement and production. Other departments are all important, but if one of the three core elements fail, every company is at risk of insolvency in the medium term. 182
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“Procurement successes are easier and less painful than staff changes, and for new technologies, procurement is a driver of innovation. “Leadership by CFO facilitates independence, but is not absolutely necessary; it can be any C-Level person who is seriously backing procurement,” he said. Competitive edge Veith cited the group’s competitive advantage as having a strong infrastructure with a production network in several countries, plus it is built on a long tradition of being able to evolve with the times and re-invent itself, “which is crucial in today’s climate”.
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“We have a great production network with facilities in separate countries from our headquarters here in Salzgitter and our process engineering in Braunschweig (Brunswick) Lower Saxony. We also have production facilities for grabs in Chennai, India, and the production facility for spreaders is in the greater area of Shanghai, China, with headquarters in Singapore. “We are a very global network. As a middle-sized German company with a sales volume turnover of €300 million, we can leverage this production network and the sourcing possibilities that [go] along with that. Also, to have a construction base with very skilled engineers in India, and also here with our traditional construction in Germany,
is a great asset, which few middle-sized German companies actually have.” Commenting on how SMAG continued to operate during the pandemic, Veith, who started with the company in November 2019, said he was fortunate enough to travel to India and Singapore to see the facilities before restrictions were in place. “We switched to Zoom or Team meetings and adapted our facilities for increased health and safety, but apart from that, our supply chain has been very stable. We see transportation costs going up, but overall, we have not had any shutdowns due to lack of supplies, which [proves] our business model works and that our supply chains are very stable. manufacturingglobal.com
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“ Some of our most important customers are the leading OEMs in the crane industry” RAINER VEITH
CFO AT SALZGITTER MASCHINENBAU AG (SMAG)
“In India, Russia and America, our industry was deemed as system-relevant, so we came out of shutdown early, and our affiliates quickly caught up to reach and exceed budgeted revenue levels. Overall, our sales did not suffer any consequences from the pandemic. We have been fairly unharmed and remained robust throughout the crisis, which is good news.” Evolving ecosystems “Shrinking core expanding periphery - this 184
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is how my MBA professor Ranjay Gulati described strategic alliances, and I think it is true today,” said Veith. “This allows the company to focus on the core tasks and look outside of the periphery for help with R&D or innovations they do not have the capacity for such as digitalisation, robotics or Artificial Intelligence (AI). “We do not have the in-house capabilities to develop AI, and we would not, but it does make sense that we invest. We need to partner with suppliers [and] companies
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QUICK FIRE QUESTIONS How are you using AI or machine learning or big data, and what possibilities do they bring to the future of SMAG? “We are doing this already, especially at BMA, in process engineering. We plan to ramp up our efforts in coordination with our customers, and we'll pick up speed in the near future.” What plans do you have for the future - will you be opening in a new country, or are there new acquisitions in the pipeline?
“I think that the group has evolved quickly with its mergers and acquisitions over the past five years. It’s now time to consolidate, to improve our efficiencies and continue to grow organically.” SMAG has been operating for more than 100 years - how would you sum up the secret of your success? “During the past century, we have evolved with the times and have re-invented ourselves - resilience is in our DNA.”
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LIFE OUTSIDE THE OFFICE WITH RAINER VEITH, CFO AT SMAG: What did you enjoy about life in Worcestershire, UK? A more relaxing way of life in the shadow of the Malvern Hills and living by the River Severn in the UK. What country do you want to visit? Paris, France to play in the European Senior Golf Championships. What is your favourite cuisine? French What is your most precious possession? My family Favourite movie? Pirates of the Caribbean What advice would you give to a young Rainer Veith? Do what you love most and then work hard for it.
“ Our larger grabs can have up to 30-45 cubic meters in volume, and one of those grabs weighs 18-22 tons - so this really is a dream for big kids captured in adult bodies - they are the coolest products” RAINER VEITH
CFO AT SALZGITTER MASCHINENBAU AG (SMAG)
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€300 million
Group Sales Volume
2,000 Number of Employees
27
Locations Worldwide
1919
Year Founded
who have that intelligence and knowledge. We need to develop our ecosystem even further to get ready for the challenges of the next decade.” Veith cited the importance of their “seamless” partnership with Open Systems and comments on how ecosystems today help a company. “Open Systems is a crucial partner for SMAG as we use them for data exchange with our Asian affiliates. It works really well, and it's vital for us to work together on the exchange of information about production and
developments in the market. It’s very important for us that the process is seamless and easy, and this is what Open Systems provides for us. “In order to be successful in the future, we have to be a bit more modern, younger, dynamic and more diverse. We have to drive lean management and operational excellence. This is definitely something that is already underway and will be the key for future success, said Veith.
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