Manufacturing - December 2021

December 2021 | manufacturingglobal.com

HOW IT ALIGNMENT IS ENABLING SMC TO AUTOMATE THE WORLD

Technology is the toolkit for SMC – the global leader in manufacturing pneumatic components

MSD: Building a Digital Superhighway Reckitt: Embedding Quality in a Changing Environment Hitachi Vantara: Custom, Persona-Based Industrial IoT

Innovations in Manufacturing

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The Manufacturing Team EDITOR-IN-CHIEF

GEORGIA WILSON EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH DUKE WEATHERILL JORDAN WOOD

PHILLINE VICENTE JACK THOMPSON JANE ARNETA

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KIERAN WAITE SAM KEMP

TYLER LIVINGSTONE

DIGITAL VIDEO PRODUCERS

EVELYN HUANG JACK NICHOLLS MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN MARKETING DIRECTOR

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PROJECT DIRECTORS

CRAIG KILLINGBACK MARKETING MANAGER

KAYLEIGH SHOOTER

MEDIA SALES DIRECTOR

JAMES WHITE

SALES AND MARKETING DIRECTOR

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN CEO

GLEN WHITE

FOREWORD

Could the future be sustainable?

Sustainability initiatives continue to dominate the manufacturing industry

“Manufacturing has a pivotal role to play [...] in the delivery of net zero ambitions.

Achieving that requires an integrated decarbonisation strategy, research, innovation and infrastructure changes” – Rohit Moudgil, Manufacturing Sector Head, HSBC UK

MANUFACTURING GLOBAL MAGAZINE IS PUBLISHED BY

In our August issue of Manufacturing Global we looked at the sustainability targets set by global manufacturers, and the key focuses for the industry.

Now, as we see out 2021, the investment into driving sustainability only continues to flourish, and will continue to do so into the new year. Today 80% of companies worldwide now report on sustainability, a significant rise in the last 30 years where only 12% reported on sustainability in 1993.

In the last few months the industry has continued to invest in electric vehicles (Ford, Tata Motors, JCB), sustainable semiconductor production (Apple), sustainable supply chains (IBM), and carbon neutral factories (Škoda Auto).

But there’s still work to be done!

Despite manufacturing in the UK alone reducing its emissions by 57% since 1990, the industry still accounts for 12% of the overall greenhouse gas emissions.

“Manufacturing has a pivotal role to play [...] in the delivery of net zero ambitions. Achieving that requires an integrated decarbonisation strategy, research, innovation and infrastructure changes,” said Rohit Moudgil, Manufacturing Sector Head, HSBC UK.

GEORGIA WILSON

georgia.wilson@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

manufacturingglobal.com

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CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Timeline: The History of Just-in-time Manufacturing 16 Trailblazer:

Mary Barra 20 Five Mins With:

Pete Trundley

46

Digital Factory

BDO & Nokia:Understanding Digital Design in Manufacturing

26 SMC

How IT Alignment is Enabling SMC to Automate the World

56

MSD

Building a digital superhighway

72

106

Stratasys: Being More Sustainable With 3D Printing

Custom Persona-Based Industrial IoT

Smart Manufacturing

Hitachi Vantara

80

118

Embedding Quality in a Changing Environment

Should manufacturing be prioritising data analysis?

Reckitt

Technology

96

128

Behind the scenes of EHang’s Manufacturing Operations

Innovations in Manufacturing

AI & Automation

Top 10

COMING SOON FO LLOW N OW

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FO LLOW N OW

BIG PICTURE

BioNTech

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December 2021

Pharmaceutical manufacturers ramp up their COVID-19 efforts in Africa Africa

With only 4.5% of people in Africa fully vaccinated against COVID-19, the pharmaceutical industry is facing increasing pressures to manufacture drugs in the continent from both Africa’s countries and the World Health Organisation (WHO).

Being urged to set up vaccine plants, and secure the supply of COVID-19 vaccines for the continent, both Moderna and Pfizer-BioNTech have recently announced their plans to invest and construct manufacturing facilities on the continent.

Moderna plans to invest US$500mn to develop a new COVID-19 vaccine factory for the production of 500mn doses, while BioNTech has confirmed the construction in 2022 of an end-to-end manufacturing facility.

These announcements follow the call for intellectual property rights for the COVID-19 vaccine to be waived to help end the pandemic, and give developing countries access to the vaccine. manufacturingglobal.com

11

THE BRIEF “We are here to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world. This is what drives me every day in the decisions I take. It means that we are always looking at better solutions” Valerie Sieurin

Senior Vice President, Global Head of Quality, Reckitt 

BY THE NUMBERS Top three priorities for manufacturers striving to achieve next generation manufacturing systems PwC, 2021 COO Pulse Survey

47% 44% 44% Industrial IoT

Data analytics

Public and private cloud

READ MORE

“Technology isn’t our job anymore, we do our job by helping the business grow, but for us in IT, technology is just our toolkit. We've become organisational change agents”

Manufacturers need financing in order to meet net zero targets Despite reducing its emissions by 57% since 1990, manufacturing still accounts for 12% of the overall greenhouse gas emissions in the UK, with steel, cement, and chemicals accounting for half of the overall figure.

READ MORE

Michael Loggins

Global Vice President of IT, SMC  READ MORE

"We are looking at how we can utilise blockchain technology to build an external digital superhighway that will gather and provide information.

For MSD blockchain is a game changer" Fredric Brut

Head of Supply Chain for EMEA and APAC, MSD  READ MORE

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December 2021

MITEI spinoff - Via Separations tackles industrial decarbonisation Via Separations aims to reduce the amount of energy used in industrial separations by 90%. The process currently accounts for 22% of the in-plant energy use in the United States.

READ MORE

Apple joins sustainable semiconductor research programme With research indicating that almost 75% of a mobile device’s CO2 emissions can be attributed to its fabrication (with almost half resulting from IC manufacturing), imec establishes a unified Sustainable Semiconductor Technologies and Systems (SSTS) research programme.

READ MORE

Africa’s automotive industry is on the rise!

Despite equating to 17% of the world’s population, Africa accounts for only 1% of the cars sold worldwide; compared to China (30%), Europe (22%), and North America (17%).

On average the continent has 44 vehicles per 1,000; compared to the global average of 180 and 800 in the United States (US).

But could 2021 be a sign of change?

Whilst Africa’s automotive market value (US$28.45bn) is roughly a quarter of the US (US$114.6bn) the industry is expected to continue to rise in the next five years.

“Due to the rise of income levels in many African countries and the emergence of a middle class, Deloitte regards the continent as the final frontier for the global automotive industry. Given Africa’s population size and its positive economic outlook, automotive companies will be able to gain a competitive advantage by adopting a medium- to long-term view towards the continent,” said Deloitte.

Morocco sees the biggest growth Committed to allocating US$7.76bn to the country’s infrastructure, Morocco’s automotive industry continues to grow; exceeding more than 160,000 units sold, and creating over 220,000 direct jobs.

By 2022, the industry is expected to contribute as much as 24% to Morocco’s GDP. In addition the country has seen an increase of 10.77% for new passenger vehicles, selling 400,000 cars to Europe.

 TESLA Tesla becomes a trillion dollar company. The electric vehicle and clean energy company experienced a surge in share prices, up 19% over the last couple of days.  GLENCORE AND SANTA CRUZ SILVER MINING LTD In an agreement between Glencore and Santa Cruz Silver Mining Ltd. (Santa Cruz), Glencore plans to sell its Bolivian zinc assets for US$110mn to the mining and metals company.  UK UK car production continues to fall for a third month, reaching its lowest level in four decades.

Down 41.5% year-onyear and the lowest output since September 1982, the decline is being attributed to the shortage of semiconductors.  PARSABLE Manufacturing employees are seeking a more digitally native organisation.

Research conducted by Parsable indicates that 45% of frontline manufacturing workers would leave their current employer to work in a more modern, digital environment.

U P

DEC21

D O W N

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TIMELINE The History of

Just-in-time

Manufacturing

Developed by Toyota with the vision to make vehicle orders in the quickest and most efficient way, Manufacturing Global walks through the evolution of the justin-time manufacturing method

1930’s-1945

1973

1977-1980s

Japan’s adoption of just-in-time At the end of World War II Japan’s primary objective was to rebuild its industry with western methodology in mind.

JIT spreads in Japan In 1973, Japan faced an ‘oil shock’; an economic and political crisis which emerged from export restrictions during the Middle East war.

JIT enters the United States Starting in 1977 though to 1980, articles in English began to emerge from Japan detailing the JIT method, which the US quickly began to adopt, as well as other western countries.

Gerhard Plenert, identified four challenges that occurred at this time: 1. Lack of cash flow 2. Lack of land space 3. Lack of natural resources 4. An excess of labour Taking 30 years to develop, Toyota pioneered the justin-time (JIT) method. The introduction of this method helped the automotive manufacturer to optimise their processes in response to these challenges to make their operations lean.

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December 2021

This crisis coupled with Toyota sharing its ‘Toyota Production System’ including the JIT method - brought about a rise in organisations taking notice of the automotive manufacturer’s resilience.

1988

1996

2021 and beyond

JIT rebrands to ‘lean manufacturing’ In 1988, John Krafcik, CEO of Waymo, coined the term ‘lean production’ in an ‘MIT Sloan Management Review’.

Krafcik was using the term in reference to both Ford and Toyota production systems.

General Motors publishes its Global Manufacturing System Following its partnership with Toyota to build cars in the US, General Motors released its ‘Global Manufacturing System’.

Has COVID-19 brought to an end the JIT method?

With the outbreak of COVID19, long and lean supply chains struggled with the market's volatility.

“Rather than continuing to refer to the different paradigms as recent Fordism and TPS, I would like to introduce two new terms here - buffered and lean production systems.”

Based on the ‘Toyota Production System’, General Motors’ system provided the company with flexible layouts and production processes designed so that all manufacturing facilities globally could build high-quality vehicles at a competitive cost.

“The COVID pandemic mercilessly exposed weak points in global supply chains and drummed up the perfect storm we now find ourselves in,” said CIPS. Concerns centred around the over-reliance on JIT are being raised. “JIT works brilliantly under the right circumstances, and as such has been the cornerstone of cost-effective, lean sourcing methods for decades.

But under exceptional circumstances, the risks increase and this model is often found wanting,” added CIPS. Could this then be the start of the end for JIT supply chain methods? Will organisations adopt a hybrid approach?

Or will the industry bounce back and continue to use the method that has served them well before? Only time will tell...

manufacturingglobal.com

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Mary Barra J

oining General Motors in 1980 at the age of 18, Mary Barra has dedicated more than 40 years of her career to the automotive manufacturer. Rising from her beginnings as a Kettering University Co-op Student at the Pontiac Motor Division, Barra is now the CEO of the organisation, and is one of the 8% of female CEOs of Fortune 500 organisations.

Dedicated to improving situations, solving challenges, capitalising on opportunities, and improving people’s lives, Barra marked a major milestone in America’s history when she became the first female CEO in American automotive manufacturing.

“As an engineer, I’ve always looked at how to improve situations and solve challenges. Engineers have the ability to imagine what’s next and then make it happen. At its very core, engineering improves people’s lives,” said Barra.

“As Chairman and CEO of General Motors, I now have a unique opportunity – and responsibility – to use my engineering mindset to help make the world a better place on a much larger scale.”

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December 2021

Job Title: CEO Company: General Motors

TRAILBLAZER

Joined General Motors:

1980

Became CEO of General Motors:

2014 Fortune 500:

1 of 41 female CEOs Other roles: Barra serves on the Board of Directors of the Walt Disney Company, the Duke University Board of Trustees and the Detroit Economic Club

A vision of zero crashes, zero emissions and zero congestion Barra is committed to creating a world with ‘zero crashes, to save lives; zero emissions, so future generations can inherit a healthier planet; and zero congestion, so customers get back a precious commodity - time.”

Barra is focused on improving customer experiences, strengthening General Motors’ core vehicle and services, and transforming personal mobility via advanced technologies.

“Our zero-emissions, all-electric future is underway right now, and we are moving faster than ever. When the COVID-19 pandemic hit, we quickly brought our manufacturing capability to bear to produce masks and ventilators. Yet we never lost a beat on our all-electric strategy,” said Barra.

Transformation and innovation have been at the heart of General Motors for more than 100 years.

With this spirit inspiring the organisation to this day, the company is committed to not only driving its own transformation but leading and influencing others, setting the standards, “to take everybody on the journey to a safer, more equitable, all-electric future. We’ve changed the world before and we’re doing it again,” said Barra.

In June 2021, Barra announced that General Motors would be investing from 2020 through to 2025 US$35bn (up US$15bn pre-pandemic) to continue its momentum of building an all-electric future.

manufacturingglobal.com

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TRAILBLAZER

18

December 2021

“We have the ambition, the talent and the technology to create a world with zero crashes, zero emissions and zero congestion” “We are making these investments so we can move faster and grow in ways that deliver value to our shareholders and our stakeholders.

And while this reimagination of our business won’t happen overnight, we are working towards it every day – as one company, driven by our growth strategy,” said Barra.

Serving on General Motors Inclusion advisory Board Committed to being the most inclusive company in the world, General Motors consistently scores highly when it comes to gender equity reports, being one of only two global businesses to have no gender pay gap in 2018.

“In every moment, we must decide what we can do – individually and collectively – to drive meaningful, deliberate change.

Based on our longstanding values, our Chair and CEO Mary Barra chairs an Inclusion Advisory Board (IAB) of 11 internal and external leaders who guide our work to improve diversity and inclusion in our company,” stated General Motors. manufacturingglobal.com

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FIVE MINUTES WITH...

Pete Trundley SUPPLY CHAIN DIRECTOR AT DOMINO’S PIZZA GROUP

Q. PLEASE COULD YOU START BY INTRODUCING YOURSELF AND YOUR ROLE AT THE COMPANY?

» My name is Pete Trundley, and

I’m the Supply Chain Director at Domino’s Pizza Group. In short, I’m responsible for overseeing the overall direction of Domino’s supply chain in the UK and Ireland. That covers manufacturing our dough, as well as sourcing and distributing anything our stores might need – from toppings to uniforms.

It’s an amazing job that touches everything from health and safety, customer services and food quality right through to manufacturing, warehousing, and distribution.

Q. WHAT IS YOUR EXPERIENCE IN THE MANUFACTURING INDUSTRY?

» The vast majority of my work

experience lies with food. I studied food science and food processing technology at university, which I subsequently used to kick off my career in new product development and technology. After a few years of that, I moved into operations, occupying several site management roles, until I eventually ended up as Head of Manufacturing at The Silver Spoon Company. Fast-forward 12 months, I was in my first Director role, a position I’ve held at both Associated British Foods (ABF) and now Domino’s Pizza Group.

20

December 2021

Q. HOW DO YOU SEE THE INDUSTRY EVOLVING OVER THE NEXT DECADE?

» The short answer is that there will

“ I think the COVID pandemic has demonstrated that, as a nation, the UK can sometimes be overly dependent on other countries for manufactured goods, and we need to fix that”

have to be a significantly greater focus on productivity in the UK, mainly achieved through automation.

For many years, the UK has had a bumpy relationship with productivity, largely due to high labour availability and low wages. I think the COVID pandemic has demonstrated that, as a nation, the UK can sometimes be overly dependent on other countries for manufactured goods, and we need to fix that. The only way we’re going to be able to resolve it is if we significantly increase productivity through greater use of automation and artificial intelligence (AI). The urgency for this approach has increased significantly in 2021 as we continue to experience the greatest labour shortage in the UK since 1997, for several well-publicised reasons.

Q. WHAT TREND ARE YOU MOST EXCITED TO SEE EVOLVE?

» Sustainability is top of the list

for me.

As a species, humans can be ingenious when they put their minds to something. We now need to collectively focus on living a more sustainable future. I’m a sciencebased thinker, and science says that we don’t really have much time left.

About 10 years ago I attended a seminar on “2 degrees north” – which, in short, means things will drastically change on Earth if the temperature rises by two degrees centigrade. A decade on, we’re manufacturingglobal.com

21

FIVE MINUTES WITH...

now predicting that the Earth’s temperature will have increased by 1.5 degrees centigrade by 2030 – so only half a degree left to go!

So, whilst it’s not the most positive trend to comment on, there’s a burning platform we must address. Man’s impact on Earth has to become our highest priority, and the manufacturing industry has a massive part to play in that – both in operating more sustainably across entire supply chains, but also by creating the technology for more sustainable solutions such as electric cars, hydrogen boilers, or green energy sources, like wind farms. The manufacturing industry must commit to doing its part in this.

Q. WHAT DOES SUSTAINABILITY MEAN TO YOU?

» Sustainability can mean different

things to different people. For me personally, I think of it as each generation leaving the planet in a better place than when they found it. The same can apply to individuals, families, communities, companies and so on…

At Domino’s, our goal is to deliver a better future through the food people love. This means that sustainability is at the heart of everything we do, from where we source our ingredients and electricity to power our facilities, right through to our packaging and how we dispose of surplus food.

We know how important it is for our customers to know they’re buying from an ethical business, and we’re continually looking for new ways to innovate in that space.

22

December 2021

Q. OVER THE LENGTH OF YOUR CAREER SO FAR, WHAT HAS BEEN THE BEST PIECE OF ADVICE YOU HAVE EVER RECEIVED?

» There have been a couple that

really stuck with me over the years.

Firstly, recruit the very best team you can – don’t compromise. And secondly, focus on doing your job to the best of your ability and progression will come to you. If you focus purely on progression, it is unlikely to happen.

Q. HAS THERE BEEN A PARTICULAR ACHIEVEMENT THAT YOU ARE PROUD OF?

» The thing I have always been

most proud of in my career is seeing others develop and prosper. Whilst

Warrington supply chain centre develop from a concept on paper to a cutting-edge facility in real life.

We delivered the whole Warrington supply chain centre project on time and on budget, whilst creating more than 250 jobs in the local area. Just driving passed it on the M62 still amazes me every time – like, did we really build that?

Q. WHAT INSPIRES YOU?

» The entire Domino’s system

I was at ABF, I was a sponsor of the Grocery Group graduate scheme.

Over a period of something like 13 years, I’ve been blown away by watching fantastic graduate recruits blossom into phenomenally talented individuals, contributing to both their companies and society in general.

I also love building stuff and the legacy I am most proud of at Domino’s has been seeing our

“ The entire Domino’s system inspires me. At Domino’s, one of our major values is growing and winning together”

inspires me. At Domino’s, one of our major values is growing and winning together. So many of my colleagues have come through the door 10 to 15 years ago and worked their way up from the warehouse floor to the management team. It’s a privilege to be surrounded by such a talented, committed team.

Also, great leadership inspires me. What makes a leader go from someone you want to follow to someone you can’t? For me, the answer is usually defined by the leader’s moral compass.

Q. WHAT ARE YOUR FAVOURITE THINGS TO DO OUTSIDE OF WORK?

» I grew up in Cornwall and didn’t

leave there until I was 12, so I didn’t see a lot of the world until my teenage years. Most of my time now is spent trying to give my children as many early-life experiences as I can.

On the rare occasion that I do get a bit of time to myself, I can be found either watching cricket or supporting my local pub – sometimes at the same time! manufacturingglobal.com

23

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How

IT Alignment

is Enabling

SMC

to Automate

the World WRITTEN BY: JANET BRICE PRODUCED BY: TOM VENTURO

26

December 2021

SMC

manufacturingglobal.com

27

SMC

Technology is the toolkit for SMC – the global leader in manufacturing pneumatic components

I

T alignment at SMC enables us to automate the world, allowing our customers to do incredible things”, says Michael Loggins, Global Vice President of IT who is keen to give insight into how this global company is leveraging its digital transformation.

SMC is the global leader in manufacturing pneumatic technology for industrial automation that supports customers in every industrialised nation. The SMC Corporation of America is a subsidiary of the SMC Corporation based in Japan founded more than 50 years ago.

“Our vision is to take our awesome community of people and provide the enablers that allow SMC to automate the world. At SMC we're perfectly aligned with our customers, with our product and our vision, enabling our customers to automate their needs and help build a better planet,” said Loggins, speaking from his office in Noblesville, Indiana.

He pointed out that during the past two years SMC has invested US$130m in IT as part of its digital transformation to accelerate their cloud journey, cyber security, streamlining and optimising the digital processes.

“We’re the world's largest pneumatic and component manufacturer in the industrial automation space,” said Loggins, who has been with the company 15 years. “SMC has offices in more than 83 countries, over 1,000

28

December 2021

Example of an image caption manufacturingglobal.com

29

SMC

How IT alignment is enabling SMC to automate the world

“ We are dedicating a great deal of capital, time and people towards our drive for a sustainable future” MICHAEL LOGGINS

GLOBAL VICE PRESIDENT OF IT, SMC

engineers in the US, the UK, Germany, China, and our headquarters in Japan, to develop these great products.

“We also have more than 5,000 salespeople scattered across the globe and more than 8,000 people working tirelessly building and shipping out our products on a daily basis in different factories and logistics centres across the world.”

Founded in 1959, in Tokyo under the name Sintered Metal Corporation (SMC) the 30

December 2021

company evolved from basic pneumatics to more sophisticated automation solutions which has granted SMC a global market share of 38%, and 65% in the Japanese market.

With 12,000 basic products and more than 700,000 variations, SMC offers solutions from air preparation, instrumentation, through to valves, and actuators covering practically every single step in the automation process.

“At SMC, I have an awesome opportunity to work with amazing people to unify all the global SMC organisations around a common corporate goal and vision by using technology to change the way we deliver our products and help our customers,” said Loggins who turned his back on a career as a music teacher

MICHAEL LOGGINS TITLE: GLOBAL VICE PRESIDENT OF IT INDUSTRY: INDUSTRIAL AUTOMATION LOCATION: USA

to focus on a career in technology. Each SMC production facility works to ensure the integrity of the best, most inventive designs, and to supply these products to customers with a focus on quality, lead time and cost control. The supply network includes their North American headquarters, production facility and distribution centre in Noblesville, Indiana. SMC's global network also includes facilities in South America, Europe, and Asia.

Digital transformation Loggins pointed out the digital transformation at SMC is at different stages of maturity due to its vast global presence and highlighted how they are using Industry 4.0 to overcome

EXECUTIVE BIO

Mike Loggins is the Global Vice President of IT at SMC. He is responsible for planning the future of IT as well as the implementation and maintenance of current systems.

Loggins works to create a culture of innovation in SMC’s cyber-physical systems and networks. He is known for his community oriented and proactive approach to both IT and leadership and has set the standard for “awesome” at SMC. Under his leadership, SMC has moved IT standardisations to a global scale, as Loggins pushes his teams to model the values of inclusion, growth, support, and diversity. He is a member of the Forbes Technology Council.

We Believe All Possibilities Live in Technology We Believe

All Possibilities Live in Technology

As the technology landscape expands and the digital footprint of enterprise companies grows, entirely new cyber security risks emerge that present new threats to intellectual property, assets, and users. Leverage the industry’s most forward-thinking solutions to As the technology landscape expands and the digital footprint of revitalize your cybersecurity program and operate from a platform enterprise companies grows, entirely new cyber security risks enabling you to safely take the risks you need to profit and grow. emerge that present new threats to intellectual property, assets, and users. Leverage the industry’s most forward-thinking solutions to revitalize your cybersecurity program and operate from a platform enabling you to safely take the risks you need to profit and grow.

visit us at www.trace3.com Security | Cloud | Infrastructure | AI

visit us at

A manufacturer’s path to mature cybersecurity The partnership between Trace3, Critical Start and Palo Alto is bringing peace of mind to SMC Corporation For SMC Corporation, the world’s largest manufacturer of pneumatic components and a global leader in automation, keeping its data and IP safe is a big headache.

Threats proliferate at alarming speed and with ever-increasing sophistication, and as Michael Loggins, Global VP of IT at SMC said: “Cybersecurity is one thing that keeps me awake at night. Finding a trustworthy partner like Trace3 who has the ability to look out further than we were doing and get us prepared for what is coming next is huge.”

Customers like SMC also benefit from the managed detection and response (MDR) services, offered by Trace3’s close partner Critical Start, the MDR provider that puts a stop to alert fatigue by eliminating false positives at scale through their Zero Trust Analytics Platform (ZTAP) and industry leading Trusted Behavior Registry.

Critical Start provides 24/7 investigation and response services by leveraging powerful solutions such as Palo Alto Networks, which SMC was also evaluating. Palo Alto Networks platform is a powerful solution to help mitigate cyber-attacks across the organizational footprint. Cortex XDR is one of the lightest MDR agents out there, however it does not skimp on features - bundling behavioural threat protection with machine learning, AI, and cloud-based analysis.”

SMC is on a mission to transform its security capabilities. Leading manufacturers and the IoT they utilize are a big target for cyberattacks and their environments can be very complex to secure. With Trace3’s oversight of the architecture and infrastructure requirements, combined with the power of Critical Start’s MDR and Palo Alto Cortex XDR, the threat landscape and the attackers’ techniques are continuously monitored and thwarted, allowing manufacturers who rely on the integrity of their complex automation and IoT capabilities, to sleep well.

LEARN MORE

A B D

SMC

“ We’re the world's largest pneumatic and component manufacturer in the industrial automation space” MICHAEL LOGGINS

GLOBAL VICE PRESIDENT OF IT, SMC

legacy architecture with a focus on agile assessment. “Our process efficiency may be slower in some spaces in terms of digital transformation because it wasn't as 34

December 2021

important to them in the past. Then we have places like the US, Germany, Austria, Hong Kong and Taiwan, where the digital journey needs are much higher, and we've been able to push further down that path,” he said.

“For those that are doing a great job with their digital transformation we are offering next level opportunities of maturity to their operations, and finding new ways to create better customer and employee experiences using technology.

In those places where it hasn’t been as important, we’re starting to work with them on how to get those projects moving forward and get them into a place where we have a baseline for maturity across the entire organisation. Having that common

SMC

ETECH

Centres of excellence SMC’s cloud journey - which is predominately in the SaaS space - has taken an intentional step during the past two years as they have been building cloud infrastructure. “The goal of that private cloud infrastructure is to design the new operating models that will allow us to leverage the multi-cloud capabilities in the future, and also allow us to consolidate and provide that baseline of technology capabilities across the globe.

DID YOU KNOW...

base of what digital transformation needs to look like, is going to allow us to have a much higher impact across the entire organisation,” said Loggins.

SMC is expanding engineering resources by continually challenging their own innovations. The driving force is to make it easier for customers to do business with them which has inspired innovative design solutions and support in the shape of the foundation for the development and release of ETech. ETech features several easyto-use product selection methods, such as parametric selection, solutionbased selection, and a hierarchical product catalog. Once a product is configured, 2D and 3D CAD models can be downloaded and inserted into final assembly drawings. In addition, online sizing is available to ensure the right product has been selected for each application. Because ETech is internetbased, you can view and download SMC product information at any time from anywhere. ETech represents a long standing digital transformation effort as a partnership between SMC marketing departments and IT to deliver configuration support that allows customers to download 2D and 3D CAD configured parts to include in their designs.

manufacturingglobal.com

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Engineering Led, Customer Focused.

“At Lucidia IT, we partner with our customers. We integrate with your teams and work to become trusted technology and business advisors. We’re passionate about technology and passionate about enabling our customer/partner teams to leverage technology to drive business outcomes.”

- Jason Legendre, Vice President of Engineering.

“Our partnership with Lucidia and Dell is what has enabled our Global IT team to deliver unparalleled service to SMC offices around the world. Our vision for our digital transformation is built upon the values of innovation and proactivity, and in them, we have found a community of partners that not only share our vision, but provide the knowledge and expertise necessary to take our ambitious goals to the next level. I am incredibly grateful for the partnership we have with both Lucidia and Dell, and for the phenomenal insight their talented teams bring to the table as we seek to adopt advanced technologies for our global enterprise.”

- Mike Loggins, Global VP of Information Technology, SMC

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SMC

“This will give us the ability to consolidate and improve 83 countries worth of IT infrastructure, applications and capabilities, and then put in a new operating model that allows us to better disperse that technology across, across the entire world.”

Loggins said SMC is actively looking at different Machine Learning (ML) and Artificial Intelligence (AI) models as they work towards building centres of excellence.

“The most important thing is getting the correct data and to start getting some correlations built, leveraging ML technology to help us make quick decisions. AI is important but a long way off for us, but we will be watching the developments and how we can integrate it into things like call centre applications, RPA applications, data management and data intelligence strategies.

“One of the biggest uses for us right now in the ML and AI space is in our operational technology areas. How we manage the plant floors, how we make better use of our factory resources, how we better plan, and where we can leverage our people. For a manufacturing organisation that is one of the big capabilities ML can help us with.”

“Technology is our toolkit” Commenting on how SMC is engaging its global workforce with digital technology, Loggins says there is no longer an issue with so many digital natives now in the workforce. But he points out the challenge today is matching the right technology to a specific business process.

“Adopting technology is not usually the hardest challenge anymore. Today, the challenge is finding the right technology that matches and enables the business processes, rather than finding a technology to put in because it's technology, we really need to find what the processes are and what the business value is to that technology.

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“Technology isn’t our job anymore, we do our job by helping the company grow, but for us in IT, technology is our toolkit. We are very good at technology, we can find new ways of utilising technology, but we've become organisational change agents.

We can't just put in and implement new systems, we have to work with the business to figure out how to best adopt those products and find ways to improve them once they're implemented.”

Competitive edge Loggins said it is the vast range of products that gives SMC its competitive edge in the

SMC

global market. “We have a catalogue of products - way over a million parts that we sell - and we're able to customise those parts. We work with our customers to understand their applications. We're trying not to just sell components. We want to work with our end users. We want to work with our machine builders to make sure that we are delivering value in our products, to what they're trying to build, to what they're trying to release to their end users and to their customers.

“When you think about the number of engineers and salespeople we have around the globe, I believe we are

uniquely capable of providing that to all our customers in a way that our competitors can't. We are also extremely healthy, so we can spend the capital we need to make sure that we can provide new capabilities as fast as possible.

“SMC has invested more than US$130m in the last two years, on increasing our capabilities in IT. That’s primarily along the lines of our private cloud journey, and security implementations. But it’s also in our capabilities of streamlining and optimising processes for communication, as well as collaboration amongst multiple departments and divisions across the manufacturingglobal.com

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December 2021



M OS E R IT.CO M

SMC

“Technology isn’t our job anymore, we do our job by helping the business grow, but for us in IT, technology is just our toolkit. We've become organisational change agents” MICHAEL LOGGINS GLOBAL VICE PRESIDENT OF IT, SMC

globe. So, our company is very healthy in that manner which has allowed us to do many things that we couldn't do before with that investment.”

Best practices Loggins commented how the US team has learnt from their Japanese counterparts on the methodology behind every decision and how implementing best practices from other parts of the world is proving beneficial.

“It is not just about the technology, but by working with our colleagues in Japan we have a better understanding of why we’re doing something. Everything we've seen from our Japanese partners is intentional and well

thought out. We have gained a lot of maturity, and this has helped us out tremendously across the entire globe. We've matured from just being a technology team in IT to really enabling the business and leveraging our technology background to do that.

“One of the things we’ve been able to do by communicating with these other groups is find a small nugget of information, or a new process, that we can leverage. We are able to cross-pollinate those ideas across the globe and get people to start thinking and talking about things very differently.”

SMC and sustainability SMC is dedicating a global business continuity plan for our factories and delivery capabilities as well as to focus on a more sustainable future.

“We are dedicating a great deal of capital, time and people towards our drive for a sustainable future. For several decades we manufacturingglobal.com

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SMC

have relied on centralised engineering and production, but as we keep growing we are now trying to diversify.

Our business continuity plan has a clear objective that we will be prepared for any emergency and have business activities quickly resume without any disruption. As we continue going forward we will make sure a single incident around the globe does not stop us from serving our customers.

“IT has a huge part to play in this area.

We've built out our private cloud, to make sure that when it comes to the data and capabilities of the systems, we're providing the same level of continuity across the globe so our factories can work, our logistics centres have the ability to ship, and our engineers can continue to design great products.”

Loggins also pointed out that SMC is working to reduce CO2 emissions from both their factories and products. “If our products are more CO2 aware and less wasteful that allows our customers’ factories to emit less CO2 gases and hopefully helps have a positive impact on the environment across the globe.”

Partnership with Lucidia, AHEAD, Moser and Trace3 Lucidia has been a long-term partner of SMC and several of their engineers and team members have been a part of SMC’s ecosystem. Trace3 is a newer partner that is helping SMC focus on its security. Loggins also commented on the valuable partnership with AHEAD and Moser.

“Lucidia has been a trusted architecture partner of ours for more than 10 years, helping us design and find new ways to build our infrastructure, to support the growth that we have around the globe. They are a partner that helped bring in Dell Technologies, Arista, 42

December 2021

SMC

VMware, and Palo Alto Networks to allow us to build these things that we're doing.

“Trace3 has really allowed us to rapidly increase our capabilities at a security operations level, bringing maturity into a place that we didn't have before and helping us build an organisation that didn't exist six months ago.

“Cyber security is one thing that keeps me awake at night, so finding a great partner like Trace3 who has the ability to look out further than we were doing and get us prepared for what is coming next is huge.

“We've taken a systemic and mature approach to protecting the organisation, relying on our risk management capabilities, and then quickly identifying those risks and mitigating them. Creating a baseline and consistency of security practices and policies and technology across the globe, and making sure that we have a workforce of people across the globe that have enough awareness to be our best defenders.

“We've tried to take an overall approach from the enterprise space and then from the operational technology space, looking at the best way we can protect and grow that footprint, but also make sure that we balance the efficiencies and capabilities with the ability to secure, not only the operations, but our enterprise networks.

“In our constant pursuit of partnerships to advance our innovation initiatives, we’ve forged an incredibly valuable partnership with AHEAD. They have been instrumental in providing Program Management oversight and leadership for our data centre projects, in addition to their Day 2 VM configurations in-country. This investment in providing in-language and in-country resources to our global teams is instrumental to our global success as these resources ensure we are able to deliver a top-tier service manufacturingglobal.com

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December 2021

SMC

evaluate our current global servers so we can understand the migration path to a new and centralised system.”

Commenting on the partnership with Moser Loggins said: “They have been an advanced strategic partner with SMC for more than five years. Their collaboration and contributions to our teams have been invaluable as we’ve relied on Moser for assistance in strategy development, Big Data conceptualisation and advanced technology stack development.

“Moser has been instrumental as they have worked on processes across SMC divisions as they contribute to the process analysis and recommend improvements throughout the entirety of the business.

They’ve also done a great deal of work in maintenance and monitoring for North America, leading our efforts to patch and maintain our servers. Through this partnership, Moser has helped SMC streamline our processes and create easier systems for implementations.”

and incomparable assets across multiple work streams.

“AHEAD has been a valuable partner, offering the knowledge of their highly experienced global network and managing multiple work streams for our data centre builds around the world. In addition to these builds, they are helping provide Day 2 VM support, including an assessment of current conditions in targeted locations to

Smart factories of the future Diving into operational technology will be a focus for SMC during the next 12-18 months.

“This will be the biggest focus for us as operational technology will help us in figuring out how we are diversifying our factory capabilities and making sure those factories are smart. It will also help us leverage all the data to help make it more efficient.

“We will continue to find new ways to streamline our businesses and provide new capabilities to allow better collaboration across the globe, allowing us to better serve our global customers in a seamless manner,” said Loggins.

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FEATURE HEADER

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December 2021

DIGITAL FEATUREFACTORY HEADER

BDO & NOKIA:

Understanding Digital Design in Manufacturing Maurice Liddell (BDO Digital) and Dave Nowoswait (Nokia), discuss the concept of digital design and its best use in the manufacturing industry WRITTEN BY: GEORGIA WILSON

T

Maurice Liddell, Principal and Senior Client Executive, BDO Digital Dave Nowoswiat, Enterprise Marketing Manager at Nokia

ypically used in the research and development (R&D) modelling phase, “a digital design is the multidimensional graphical representation of a product, user interface (UI) or user experience (UX) in software where it can be virtually tested using industry standard graphical tools for function, usability and visual clarity and attractiveness before going into production,” explains Dave Nowoswiat, Enterprise Marketing Manager at Nokia.

Using such algorithms and modelling to aid in the design, validation and testing of products, Maurice Liddell, Principal and Senior Client Executive, BDO Digital adds that by “applying algorithms and modelling to manufacturing, manufacturers can analyse processes, optimise planning and manufacture components.”

Whilst this concept may seem new, Liddell questions as to whether it really is?

“There have been concepts around for many years, starting with the basic CAD capabilities and being able to do 2D drawings, then moving on to the 3D drawings and modelling; transitioning from a wireframe to solid modelling.” manufacturingglobal.com

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DIGITAL FACTORY

“It’s still always start small, but think big.

Be able to have the end goal in mind, but initially focus on trying to optimise a particular line or a particular quality issue” MAURICE LIDDELL,

PRINCIPAL AND SENIOR CLIENT EXECUTIVE, BDO DIGITAL

So what are the best use cases for manufacturers?

When asked this question, both Liddell and Nowoswiat agree that digital design capabilities can help manufacturers to optimse and reduce overall design times and new product introductions. “In our Oulu factory where 4G and 5G radio base stations are produced, there are new models being delivered to the production floor all the time. Digital designs of new models can be easily validated and tested for manufacturing before the actual units are produced,” says Nowoswiat.

Adding to Nowoswiat’s comments Liddell says: “I started my career in the automotive industry, and if you take a look back then

at the overall timeframe from concept to getting the vehicle manufactured, it took about five years. That is because there were a lot of different unconnected manual processes and no digital thread of the whole design processes. Whereas now, being able to design a 3D model of a component and conduct some scenario analysis that can be fed back in to make modifications to the design before even committing to building a prototype for testing. This evolution has reduced the timeframe for an element of the cycle that always took a long time. Now we can shorten a lot of that by designing digital concepts, as well as digitally analysing and modelling before going to the first product stage.” manufacturingglobal.com

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DIGITAL FACTORY

Across the board, many manufacturers in the automotive industry can benefit from digital design capabilities. Liddell emphasises that there are sectors that this concept will be imperative for, for example - Aerospace. “When manufacturing in aerospace there are very low tolerances, so for things like high performance jet engines where precision is required, this capability will be imperative for manufacturing those products and doing so safely. I also see this capability being applied when doing more basic tasks like dentistry to model prosthetic teeth which are created with a 3D printer. I also see it being used to maximise the use of sheet based raw materials to be able to optimse the use and minimise waste.”

Other benefits of digital design for manufacturers include productivity - “digital design provides manufacturers with a ‘blueprint’ to help them reduce the product life cycle time from R&D to prototypes to full production. This allows them to bring a product to market in less time than their competitors,” says Nowoswiat - as well as optimising processes and safety.

“Taking a look at the overall assembly line or a plant layout you can go through the modelling and simulation of operations of that plant and determine the best positions to put your stations whether it's welding or an additive station. Being able to simulate the movements or products from one process to another, as well as being able to design the plant to minimise the crossing of paths between artificial movement and human movement, that's a huge safety element. But then it also provides the ability to take a look at potential product failure, for something that could be in a product that is harmful. I think it's critical to be able to do that type of simulation ahead of time,” adds Liddell.

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“ Applying algorithms and modelling to manufacturing, manufacturers can analyse processes, optimise planning and manufacture components” MAURICE LIDDELL,

PRINCIPAL AND SENIOR CLIENT EXECUTIVE, BDO DIGITAL

The technology behind digital design “In digital manufacturing, digital twins – which are virtual representations in software of products or processes – are created by using digital design as one of its inputs,” explains Nowoswiat. “This is critical to manufacturers, as digital twins allow proposed changes in the product or process to be tested and optimised before they are implemented. Digital twinning is not a singular event, but an on-going process to

collect more data from multiple sources to further improve the virtual model. This results in continuous improvement in both quality and productivity.”

As this concept evolves, Nowoswiat is seeing technology such as private 4G/5G metoworking, cloud computing, AR/VR, and machine learning being implemented as manufacturers digitalise their operations on the journey to Industry 4.0. “In particular, industrial grade private wireless solutions manufacturingglobal.com

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DIGITAL FACTORY

“ Digital design provides manufacturers with a ‘blueprint’ to help them reduce the product life cycle time from R&D to prototypes to full production” DAVE NOWOSWIAT,

ENTERPRISE MARKETING MANAGER AT NOKIA

are being implemented which offer manufacturers the flexibility to change the layout of the machinery and boost productivity. The local edge provides computing power for advanced data analytics and machine learning,” he adds.

Other innovations that Liddell is seeing when it comes to digital design include the end-to-end digital thread and simulations.

“So this digital thread, being able to go through the concept to design, to modelling, to manufacturing, and then into sales and customer feedback, this information from this can be fed back in and be immediately usable in the digital design of a particular component. So I call this the full feedback loop into the design, and that complete life cycle is something that's fairly new.

“But one of the other things that we're seeing a lot of focus on is centred around simulation and being able to bring that right into the design cycle. So being able to design a component, and run simulations to see how it will operate in the real world helps to identify any flaws or shortcomings that can then be readdressed in the design before you've ever manufactured a component.

We're seeing this simulation being used across sustainability. Manufacturers are one of the biggest producers of carbon, but being able to simulate and model the carbon generation and not just the process, but 52

December 2021

manufacturingglobal.com

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December 2021

DIGITAL FACTORY

“Industrial grade private wireless solutions are being implemented which offer manufacturers the flexibility to change the layout of the machinery and boost productivity” DAVE NOWOSWIAT,

ENTERPRISE MARKETING MANAGER AT NOKIA

the components too, and then being able to feed that back into an organisation’s ESG programme to measure against that, I think is something that will be amazing to see evolve,” says Liddell.

Best Practices for Adopting Digital Design Capabilities As manufacturers digitally transform their organisations, Nowoswiat expects there to be challenges in implementing these changes and potential resistance. “Therefore, it’s important to ensure that everyone from management to the workforce understands the reason for the changes, so that the full benefits of digital design and digital manufacturing can be realised,” he says.

Adding to Nowoswiat’s comments Liddell adds: “The one thing is ‘don’t try to boil the ocean’. It’s still always start small, but think big. Be able to have the end goal in mind, but initially focus on trying to optimise a particular line or quality issue. A lot of the time organisations try to tackle too much at once, and they get caught up. Change management is also important. It can be perceived as a large expense without having return on investment to build a business case. So starting small, and utilising pilots helps to advance the vision.” manufacturingglobal.com

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December 2021

MSD

BUILDING A DIGITAL SUPERHIGHWAY

WRITTEN BY: LEILA HAWKINS & CLARISSE DIAS DA MOTA PRODUCED BY: TOM LIVERMORE

manufacturingglobal.com

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MSD

We speak to pharmaceutical leader MSD (Merck in the US and Canada) about digitising the supply chain and their global blockchain innovation programme

M

SD's origins go all the way back to the 17th century, when Friedrich Jacob Merck purchased a drug store in Germany, which later evolved into a drug manufacturer. Today it is not only one of the world's largest pharmaceutical companies but is also one of the world's biggest companies in any sector, ranked 69 on the 2021 Fortune 500 list.

Five years ago, MSD began a digital transformation programme, with the aim of accelerating growth and modernising operating models across the business, including the supply chain.

Paolo Migliari, Executive Director Supply Excellence and Head of Connected Channels Global Blockchain Programme explains that the patient is at the core of the digital project. "Everything we do in terms of digital transformation should be patient-centric.

Whatever we build in our digital portfolio must have the patient at the centre."

MSD has a "plant to patient" programme with four key priorities: leveraging data to enable automation and move towards more advanced analytics; streamlining decisionmaking and ways of collaborating; focusing on growth drivers; and innovating with Blockchain technology to create additional value.

A key goal is to get products to the patients as fast as possible, as well as reducing overall cost and friction. "We are building solutions

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December 2021

to make the supply chain more secure and of higher quality, by helping other institutions help with patient adherence" Migliari adds. "The aim is to create an ecosystem that will allow usto make this possible."

Within MSD's digital transformation is a digital logistics programme. Fredric Brut, Head of Supply Chain for EMEA and APAC, explains: "Supply chain transparency and real-time visibility of inventory positioning and movement, driven by increased value of freight, time and temperature sensitivity of the product portfolio, and potential for freight diversion, offered an opportunity to engage in more real-time alert track and trace technology.”

In 2015 MSD began to review its technology, and invited TransVoyant on board as a partner to provide IoT capabilities.

TransVoyant provides a consolidated data platform that helps MSD track products through IoT (Internet of Things) monitoring services, that offer real-time visibility and responsiveness in terms of shipment position, temperature, light and other critical aspects of shipping.

"TransVoyant is a key partner for us," Brut says.

"We leverage their digital technology in a cloudbased platform, to drive data integration, return shipment visibility, lane risk assessment and predictive analysis. It's a really great application and service for us to track our products through. and with some 3rd party warehouses”.

manufacturingglobal.com

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See. Understand.

Improve.

TransVoyant provides real-time transparency and live situational awareness enabling actionable intelligence for end-to-end global supply chains.

� �

P

redicting Supply Chain Behaviour Using Big Data, ML/AI, and Blockchain

Jim Butera, Vice President of Customer Growth, explains how TransVoyant provides real-time actionable intelligence to supply chain professionals TransVoyant’s world-class Continuous Decision Intelligence (CDI) platform tracks over one trillion events per day to provide supply chain professionals with live transparency, real-time situational awareness and predictive insight. The company’s customers are forward-leaning companies with complex global supply chains that need to ensure their high-value/ high-consequence goods are delivered on time and in proper condition. Top tier pharmaceutical, automotive, consumer goods and industrial supply companies are lining up to work with them.

Since 2012, the company has analysed big data streams with its proprietary ML/AI models to help predict arrival times, anticipate delays due to global events, measure lead times, optimise capacity, labour, and inventory. This enables customers to proactively find opportunities to cut costs, improve customer service and anticipate disruptions.

Data-Driven Insight To provide the type of out-of-the-box intelligence in which TransVoyant specialises, you need:

•

Enterprise Data. Orders from ERP, inventory from warehouse management, and shipments from transportation systems.

•

Trading Partners Data. Intelligence that is collected from outside of the four walls of the enterprise but that remains relevant to the company’s industry.

•

Risk Events. Natural disasters, epidemics, and geopolitical upheaval: anything that surrounds and could impact a company’s supply chain.

TransVoyant immediately brings two out of three sources to the table: trading partners and risk event data. Fused with its customers’ enterprise data using a private blockchain, applies ML/AI, automation, and customers get actionable supply chain intelligence.

Self-Service Software As TransVoyant continues to evolve and mature, its clients increasingly use its platform to achieve unique, company-specific supply chain insights—all without TransVoyant’s help. “It’s a new paradigm given my 20+ years in the enterprise software space”, Jim says. It has never been easier or more cost-effective for customers to digitally transform their supply chains”.

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MSD

A good example of how real-time information is key in achieving a secure supply chain is how it supported MSD during the Suez Canal blockage in March 2021.

"With just one click we could check where our products were. At the time we had 12 shipments going from Europe to Asia Pacific, and fortunately, they had already passed the canal, but we were able to immediately identify and ensure this."

The use of IoT has provided MSD with several clear benefits to date. "In less than 18 months and to prevent loss of product in transportation we have tracked 7,000 shipments, reduced shipment expenses and inventory discards, optimised the sales when supply is constrained, increase our company reputation from missed customer commitments and made insurance premium cost reductions," Brut explains. The total sales value of benefits is above average, he adds.

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“ WE ARE LOOKING AT HOW WE CAN UTILIZE BLOCKCHAIN TECHNOLOGY TO BUILD AN EXTERNAL DIGITAL SUPERHIGHWAY THAT WILL GATHER AND PROVIDE INFORMATION. FOR MSD BLOCKCHAIN IS A GAME-CHANGER” FREDERIC BRUT

HEAD OF SUPPLY CHAIN EMEA & APAC, MSD

MSD: Building a digital superhighway

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To date, all manufacturing sites, including critical CMO Partners, have been enrolled and are utilising the complete digital portfolio, or are engaged with the IoT device use, as the global implementation is finalised.

Next step will be to use digital logistics data as an input source and with a supply chain control tower, reduce resource intensity and mitigate logistics disruption. We want to also facilitate the integration to other data sources and ecosystems to improve collaboration within the logistics networks.

The COVID-19 pandemic highlighted the importance of supply chain visibility. “At the start of the pandemic, due to restrictions imposed in many countries, across the world, we saw massive supply disruption that rippled through the entire chain, causing shortages of different products in many locations. From this experience, many organisations and governments see the importance of supply chain resilience.

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Through digitalisation, and a trusted network ecosystem, organisations can make use of connected devices and leverage the application of digital twins in their supply chain operations. This will allow a bird’s eye view of the end-to-end supply chain, enabling real-time alerts of potential risk events, quicker decision making, and greater flexibility to react to sudden shocks globally, ensuring patients and customers of MSD can continue to rely and trust on a stable supply.

In a post-pandemic world, the behaviour of consumers (and patients) has changed as well, the shift in frequency/channel of purchase will require a corresponding change in supply chains. So digitalising our supply chain will allow for the organisation to better cater to this paradigm shift – for example supply-replenishment, connectivity with e-commerce platforms (direct to consumer model for prescription medicine),” Brut says.

MSD

FREDERIC BRUT TITLE: HEAD OF SUPPLY CHAIN EMEA & APAC INDUSTRY: PHARMACEUTICALS

EXECUTIVE BIO

LOCATION: SWITZERLAND Brut joined MSD in 2013, initially as the Head of Global Logistics & Operations for the EMEA region. He has moved into several senior roles while here before becoming Head of Supply Chain for EMEA and APAC in May 2020.

Before MSD, he spent five years as Head of Operations and Supply Chain for Walgreens Boots Alliance, one of the largest pharmacy retail companies in the world.

Brut is Non Executive Board Member at Sitel Group (BPO, Digital transformation) Brut describes himself as an inclusive leader, inquisitive, self-assured, and dedicated to empowering people.

“ SUPPLY CHAIN TRANSPARENCY AND REAL-TIME VISIBILITY OF THE INVENTORY IS KEY” FREDERIC BRUT

HEAD OF SUPPLY CHAIN EMEA & APAC, MSD

MSD

PAOLO MIGLIARI TITLE: EXECUTIVE DIRECTO SUPPLY EXCELLENCE INDUSTRY: PHARMACEUTICALS LOCATION: ITALY

EXECUTIVE BIO

Paolo joined MSD in 2019 to set up and lead the Connected Channels blockchain programme and to drive MSD’s engagement in the blockchain sector and PharmaLedger consortium.

Paolo has over 20 years’ experience in pharmaceutical data analytics. He combines the use of technology with a deep knowledge of the pharmaceutical market and its dynamics acquired through consulting activities for several large pharmaceutical companies and many years in business development in companies such as Aegate, CegedimDendrite, IMS Health and Codd & Date.

“ EVERYTHING WE DO IN TERMS OF DIGITAL TRANSFORMATION SHOULD BE PATIENT-CENTRIC” PAOLO MIGLIARI

EXECUTIVE DIRECTO SUPPLY EXCELLENCE, MSD

MSD

Another key element of MSD's digital journey is the use of blockchain technology.

"Imagine a future where we digitally connect to our external partners," Brut says. "We are looking at how we can utilise blockchain technology to build an external digital superhighway that will gather and provide information, even make decisions based on algorithms built into the blockchain. For MSD, blockchain is a game-changer."

Blockchain is a team effort, Migliari says, and for this purpose, MSD is part of a research and innovation consortium called PharmaLedger where the company has heavily invested to build the collaboration and network with 11 pharmaceutical companies and 17 other entities, including patient representative organisations, research, and academic organisations. It is a three year expedited co-creation effort

between the industry and healthcare stakeholders. The project is sponsored by the pharma industry – EFPIA and the EU Commission with a total EUR 22 million funding.

Industry collaboration is the key success factor in the journey to unleash the power and potential of blockchain technology.

MSD has been championing this challenge with the creation of a Global Blockchain Consensus Board. The forum, which has so far brought together 14 of the biggest pharmaceutical companies in the world to facilitate progress in blockchain adoption, has no cost, is open to all industry members to join and operates under a legal framework and anti-trust compliance.

"In terms of the ecosystem we have to engage in mindful supply chain partnerships," says Brut. "For instance, MSD is also partnering with wholesalers, distribution partners and clinics in Asia Pacific and Canada to seek rapid customer integration, demonstrate the benefits achieved, and meet the transformation agendas of governments while leveraging the digital twin and blockchain capabilities.”

If we talk about applications on top of blockchain-enabled networks, our goal is expand our business case portfolio and the deployment of solutions under major capability areas, such as product traceability and anti-counterfeiting; eLeaflet; inventory visibility; and auto-order management, Testing on Importation among other possibilities at the supply chain domain.

In clinical trials we explore eRecruitment, eConsent , IoT use in trials and more through the consortium.

Geography is equally important, as it can dictate the partnerships, choice of network, with the most useful applications (i.e. anticounterfeiting in emerging markets and eLeaflet for paperless markets). manufacturingglobal.com

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1891

YEAR FOUNDED

Biopharmaceutical INDUSTRY

74,000

NUMBER OF EMPLOYEES

$48bn REVENUE

This can be achieved with technology.

The objective is to have a foundational stack with a modular architecture, to join existing networks vs creating our own, depending on geography and aligned strategies.

Zuellig Pharma supports the physical distribution, warehousing and order fulfilment of MSD products in the Asia Pacific region, through blockchain-based solutions. An example of this is the mobile application used in Hong Kong for MSD’s Gardasil®9, HPV vaccine. It was created to enable healthcare providers and patients 70

December 2021

to verify the provenance on a unit level and report suspicious packs and with that help increase safety in a region challenged by counterfeit medicines.

In APAC, MSD and Zuellig Pharma are co-developing and testing a trusted network to which MSD expect will attract more of its Pharma peers. The partnership with distributors and wholesalers adds enormous value to the traceability of pharmaceutical products, without the partnership of Zuellig Pharma or other distributors the final benefit to the customer and patient would be reduced.

MSD

“WE CALL IT CONNECTED CHANNELS BECAUSE WE NEED TO BE SURE THAT THE ECOSYSTEM WE ARE BUILDING, STARTING FROM THE MANUFACTURER AND ENDING WITH THE PATIENT, IS CONNECTED” PAOLO MIGLIARI

EXECUTIVE DIRECTO SUPPLY EXCELLENCE, MSD

Having a robust, external partner network is part of MSD's Connected Channels programme. "The reason we call it Connected Channels is because we need to be sure that the ecosystem we are building, starting from the manufacturer and ending with the patient, with partners, stakeholders, pharmacies and doctors in the middle, are all able to be connected with each other" Migliari explains.

Connecting these different actors must require little effort - it could be via an app on a smartphone, or a system used to manage a clinics. "It's so patients and healthcare practitioners can really take advantage of what we are building as an added service and can be part of that value creation as well."

Migliari says they are ensuring data will be correctly managed and secure and will also enable patients to take ownership of the data. The architecture must have “privacy by design” as its core concept and data must be self-sovereign for the people using it.

“It's really an environment where all the partners and stakeholders own their own data and understand how this data is used."

Migliari emphasises that it's important for pharmaceutical companies to collaborate with each other. "Pharmaceutical companies absolutely must compete, but we also need to really take advantage of collaboration,

within legal parameters, especially in the case of logistics. All pharmaceutical companies should collaborate to be sure that the genuine product will arrive as fast as possible to the patient."

Collaboration will also help to reduce counterfeit products, another key aim of the aforementioned PharmaLedger. "Once we have all the pharmaceutical companies and supply chain partners on board it will really change our approach and make the environment easier to use and also more secure," Migliari says.

He hopes the concept will become widely adopted. "The idea is great, and this digital ecosystem will be of advantage to everybody as the purpose is to be patientcentric. I believe that is an objective of all pharmaceutical companies."

MSD’s digital innovation journey is the walk of the talk. It started with a good look into its own operations and infrastructure and in finding the right partners to digitalise logistics. Now it continues to evolve towards an outward focus and the creation of a common utility network which the industry can adopt, and customers and patients can benefit from.

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Being More Sustainable With 3D Printing WRITTEN BY: GEORGIA WILSON

Andreas Langfeld, President EMEA, Stratasys discusses how additive manufacturing (3D printing) can help manufacturers be more sustainable 72

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A

dditive Manufacturing (3D printing), “it can still be perceived as a buzzword,” says Andreas Langfeld, President EMEA, Stratasys “but if we dissect where additive manufacturing is being used today, it becomes more clear as to where the technology plays.”

The history of 3D printing Starting as 3D printing - “which many companies have spent a lot of money promoting the term 3D Printing,” says Langfield - has transitioned to what is more commonly known as additive manufacturing “this is because it outlines more of the designated solutions.”

But in the early stages, the approach was: How do you make, in the fastest way, your CAT design into a viable model or product in a digital way? “So from CAT design to printed part layer by layer, the solution was mainly used for prototyping.

Many companies wanted to see what the functionality, or the look and feel of a future product may be before bringing it to market.

This solution also provided organisations with confidentiality as they can produce prototypes in-house without outsourcing and the risk of confidential data being passed to third parties. This solution also saves time and money compared to prototyping in a conventional way,” continues Langfield. manufacturingglobal.com

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“ All of this customisation is guiding the industry towards additive manufacturing as the solution to be applied because you don't need millions of parts to enhance the production floor” ANDREAS LANGFELD PRESIDENT EMEA, STRATASYS

“And then over time, it went into additional applications and use cases like tooling, jigs, and fixtures, where it's not just prototypes anymore, it's tools or parts that are enhancing the production workflow. Now we are producing parts additively on demand, instead of holding spare parts in inventory.

So when a part is breaking, organisations have a catalogue of available spare parts that they order, and then it's printed overnight, or depending on the size, over one to two days. At Stratasys, we have added different technologies to our portfolio in order to make sure that we have the right solution in every step of the product development life cycle, manufacturingglobal.com

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all the way from prototyping and production efficiency, to producing parts additively.

“So all of this customisation is guiding the industry towards additive manufacturing as the solution to be applied because you don't need millions of parts to enhance the production floor, you need maybe a hundred or a thousand. But the big trend that we are seeing, which has been accelerated sinceCOVID, is that companies do not want to be too dependent on global supply chains. They want to be able to have alternatives and to produce spare parts, as an example, on demand when they are needed, and where they are needed without shipping goods across the globe.”

Other trends Langfield is seeing include increased production needs, increased volumes being produced additively and the development of automation. “In general, we are seeing two trends in manufacturing.

One is that the needs of production are moving more towards additive manufacturing because the volumes that are being produced are becoming smaller.

A) because there is a shift away from keeping large amounts of inventory, to producing on demand which by definition requires a smaller amount of parts, and B) customisations. More and more products are designed to be a lower lot size because they want to meet the exact needs of a certain buying persona. So you want to make sure that your additive manufacturing is fast, reliable, and certifiable against industry standards. You also want to make sure that you have a variety of materials available in order to produce additively.

“Then there are also the technological advancements, automation and workflow.

How do you make sure that the process from a cut design to the finished product is as seamless as possible and requires as 76

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“ In manufacturing today there are a lot of areas that can be improved” ANDREAS LANGFELD PRESIDENT EMEA, STRATASYS

little touch as possible because you want to reduce the risk of human error. You want to make sure that it's almost an automated process like it is on a real production line.

When you have all of the technologies in place as a company to digitise your inventory and your products, you have already made a big step that you are more flexible in terms of how you produce the components and the products that you need in order to run your business.”

Being more sustainable with additive manufacturing “Sustainability is crucial. At Stratasys we want to be leaders in this,” says Langfeld.

Despite this Langfield explains that “additive manufacturing is still being perceived as a new technology, there is not a lot of thought leadership happening in terms of sustainability in this field.” With this in mind, Stratasys became a founding member of the Additive Manufacturer Green Trade manufacturingglobal.com

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Stratasys J55 3D Printer | Deep Dive Introduction and Demo

Association (AMGTA). “This is basically our statement to say that we want to make sure that mindful manufacturing is being applied in this field. As part of the AMGTA we are influencing the agenda for the years to come, making sure that additive manufacturing brings its value into the world where manufacturing is happening,” adds Langfield.

“In manufacturing today there are a lot of areas that can be improved, for example if you take demand production versus inventory. If you have an inventory, you will always have a warehouse. Those goods need to then be transported to those warehouses, which requires ships or trucks that will then produce CO2 emissions.

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“ We want to enable our customers to produce only what is needed and not in excess, but also industry innovate innovation and infrastructure” ANDREAS LANGFELD PRESIDENT EMEA, STRATASYS

SMART MANUFACTURING

But if you produce additively on demand, what you need, when you need it, you don’t have excess capacity, there is no unused inventory. So that in itself is more sustainable, when you have less inventories to build and less warehouses to store products or spare parts you reduce your CO2 emissions as a company.

“But that’s just one example of where additive manufacturing can serve real value. Another is in the process itself.

When you build something layer by layer it produces less waste compared to traditional processes where you have a block, and from that block you cut until you have the product. To drive this forward

we are looking into the recyclability of materials. If you take out soft technology, which is powder based, you can reuse the powder that has not been used in a previous print shop.”

Ultimately, Staratasys aims to demonstrate the capabilities and the benefits of additive manufacturing when it comes to sustainability. “We want to enable our customers to produce only what is needed without making excess. So how do companies benefit from industrialisation across the globe, by making sure that these on demand capabilities empower companies to improve the quality of life.” manufacturingglobal.com

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RECKITT

Embedding Quality in a Changing Environment WRITTEN BY: MARK JACKSON PRODUCED BY: TOM LIVERMORE

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We chat with Valerie Sieurin, the Senior Vice President Global Head of Quality at Reckitt, about how she has transformed the company’s Quality systems and Quality culture, as well as its continuing commitment to creating a better future for all

I

t is quite a task to implement systemic cultural change in a multi-billion company, but that is precisely what Valerie Sieurin undertook when she accepted the role of SVP Global Head of Quality at Reckitt.

Based in Slough, Reckitt is one of the world leaders in developing hygiene, health and nutrition products. Its list of world famous brands is endless including; Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsils, Vanish, Veet, Woolite and more. The company has a 200-year legacy and currently generates revenues of more than £14 billion, from its operations in 60 countries, where it employs over 43,000 people.

Valerie Sieurin was tasked with embedding a new culture of Quality across Reckitt, leading a global team and building strong internal partnerships to ensure Quality standards are embedded throughout the product life cycle, from marketing to procurement to manufacturing, and distribution to sales.

“Every day we sell more than 20 million products across the world,” explains Valerie.

“My role is to design and implement a Quality strategy to ensure we are providing everywhere and at every moment products manufacturingglobal.com

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that are safe , trusted and preferred digital transformation in Quality by our consumers, ” she said. which includes implementing a Valerie, who has a master’s new AI system for planning and degree in food science and food scheduling quality control testing Employees processes from her native France, in manufacturing, a new cloud worldwide has previously worked for major solution for consumer relations, companies such as Danone and Cadbury and most recently the launch of an Schweppes. She has worked in a variety enterprise Quality Management system. of roles at local, regional and global levels, All of these transformation projects as well as having lived in three different were made possible thanks to strategic countries. She has undertaken global partnerships such as with partners, roles for close to 15 years, placing her in SmartQC and Veeva Systems. an ideal position to implement a Quality For Valerie however, digitalisation is not transformation within Reckitt. the end game per se, but a means to drive “This gives me quite a wide view of forward Reckitt’s purpose. “We see digital organisations and different markets,” she says. transformation as a way to achieve this Valerie explains how the journey to the relentless pursuit of a cleaner and healthier new culture was driven in parallel with a world,” she explains.

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VALERIE SIEURIN TITLE: SENIOR VICE PRESIDENT, GLOBAL HEAD OF QUALITY

Initially Valerie with her team identified those areas where Reckitt could improve its performance in pursuance of its overriding goals, the technology that could help them accomplish this, and the partners that could help drive this technology transformation. “As a Quality professional, you are always looking at what you can improve and combine with the strengths which you want to maintain.

Continuous improvement is part of the DNA of the Quality leader.” she explains. “But, with my team, we did not want small incremental improvement, with the new technologies available we had the ambition to leapfrog.

“We focused on two areas. The first was consumer relations to move from answering complaints to driving advocacy and win consumer preference. The second was

EXECUTIVE BIO

COMPANY: RECKITT As a global leader at Reckitt – a world renowned home of health, hygiene and nutrition brands - Valerie Sieurin is responsible for over 2,000 members of staff working across Quality worldwide. At Reckitt, Quality leaders are increasingly seen as strategic business partners. The disruptive leader is driving a culture change across the organisation, overseeing end-to-end Quality, coaching people to bring their best and driving consumers advocacy in the pursuit of excellence.

Valerie Sieurin is an ambassador for creative solutions and innovation in product, processes and Quality systems. She has initiated a digitisation journey of quality at Reckitt and championed new ideas from everyone to make the Quality team even more agile, connected, embedded and predictive.

She is also extremely passionate about sustainability & inclusion across Reckitt and the community.

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Embedding Quality in a Changing Environment

“ We are here to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world. This is what drives me every day in the decisions I take. It means that we are always looking at better solutions” VALERIE SIEURIN

SENIOR VICE PRESIDENT, GLOBAL HEAD OF QUALITY, RECKITT

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eliminating repeated failures. Our vision was to make the organisation more predictive in order to avoid such errors, and to support this cultural transformation through technology.”

To enable this transformation, Valerie and her team have built a very strong partnership with the Reckitt IT department.

In order to transform its consumer relations, Reckitt worked closely with its project partners to design a cloud-based system to enable them to connect everywhere with consumers, using all media from emails to social media.

“Now our consumers can contact us from any place and at any time,” she explains. “We can bring insights to the business to improve our products and service and delight our consumers, which ultimately will drive consumer advocacy and increase love for our brands.”

RECKITT

The second cultural to connect all of our Quality transformation concerned Reckitt’s management processes and be Quality processes and systems. more efficient,” she explains.

The aim was to connect all the The transformation began with Products sold across company’s Quality processes improving efficiency in Reckitt’s the world everyday to increase efficiency and, as a Quality Control laboratories, which consequence, revenue. Valerie believes that she refers to as a ‘Lean lab Programme and Quality transformations can directly impact lately renamed as LabEx for Laboratory a company’s business success: reduce time Excellence’. “We quickly identified that to market and improve first time right as two implementing lean methodology wasn't examples. enough, it was a good step to start improving Previously Reckitt had Quality systems a laboratory, but it wasn't enough,” Valerie which were not connected with other says. We needed to enhance our programme systems within the organisation and with technology and that is when the therefore inefficient. This is why Valerie relationship with SmartQC commenced. The and her team decided to partner with end game is to have paperless laboratories Veeva Systems to develop a solution that will be fully integrated to the overall using the latter’s Quality management business systems. When systems are platform QualityOne, which Reckitt is connected, this will improve product release now implementing. “This will enable us times and get products to customers faster.

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Reckitt Embarks on Quality Cloud Transformation with Veeva Why Consumer Goods leader Reckitt is partnering with Veeva Systems to transform its quality processes for greater operational agility Consumer hygiene, health and nutrition leader Reckitt is partnering with Veeva Systems to realize Reckitt’s vision for Quality’s digital transformation.

By adopting Veeva cloud solutions, Reckitt is establishing a modern technology infrastructure that allows people and processes to operate with agility and speed, without compromising quality and compliance.

Reckitt selected Veeva’s QualityOne software to replace disparate legacy systems and streamline activities, data, and documents into a single source of truth. This digital transformation effort improves collaboration throughout the organization, and enables greater transparency and agility.

“We’re taking the opportunity to reduce complexity, because that is the enemy of progress and growth, and simplifying our processes with this intuitive platform. The system is not only user-friendly, but its ease of use allowed our team to re-imagine the process,” said Breda Quinn, Global Transformation Quality Director at Reckitt.

“Veeva is an excellent technology partner for us.

They are agile and empower us to focus on all the right things. They’re driving the strategic thinking and inspire, and motivate us, to think long-term.”

Partner to Industry, Customers: What Sets Veeva Apart from Other Vendors Unlike transactional technology vendors, Veeva takes a partnership approach to its customers’ digital transformation journeys. This includes maintaining deep expertise in industry challenges.

For example, Veeva employs “a unique team of strategists who have joined Veeva directly from industry; they are the voice of our customers” said Veeva strategy leader Ed Van Siclen. “And when we get it right -- the collaboration between our product organization, our customers and the strategy team -- we create magic.”

Additionally, Veeva solutions are appreciating assets that allow customers to keep pace in a rapidly evolving business environment. “As a cloud-based, SaaS technology provider, we deliver software-at-speed,” Van Siclen said. “We add features three times a year and become an appreciating asset for our customers.”

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RECKITT

Streamlining processes within their decision making within laboratories leads to greater a more agile supply chain. efficiency, while improving “Now there are a lot of different Generates revenues of more than business, and maintaining technologies that are available to standards to ensure customer us that we have started piloting confidence in their brands. Valerie and deploying. SmartQC for believes that the introduction of these new example, is a digital twin that enables us technologies and systems will provide the to plan and schedule our testing more Reckitt teams the access to the data in a efficiently. We are also looking at piloting digital format that they need to enhance and implementing SmartQA, which will

£14bn

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“ Now we are able to have our consumers contact us from any place and at any time” VALERIE SIEURIN

SENIOR VICE PRESIDENT, GLOBAL HEAD OF QUALITY, RECKITT

digitise quality assurance activities and ultimately improve product release times further. In our pharma factories we have hundreds of test methods for our products, so it is complex to manage the lab operation. These new technologies really enable our people to focus on what is important, adding value.”

The transformative process is not one Reckitt could have undertaken on its own.

Valerie places great importance on the role played by their partners.

When working out which companies Reckitt should work with, Valerie always initially asks the question, “what don't we know?”. Then she identifies where Reckitt can collaborate with potential partners and those companies which could join them on their journey of transformation.

For Valerie the transformative process is continuous. As she observes “the technology of today will be obsolete soon,” which she finds “fascinating.”

Consequently, it is vital that companies such as Reckitt are choosing the partners who are innovative, invest in research and could evolve with them in order to improve the quality of both their processes and also their products in order to maintain both efficiency and customer confidence in their brands. “This is why we have partnered with Veeva Systems. This is also why we work with SmartQC,” she says.

However, for Valerie improving efficiency and maintaining brand confidence is only part of a bigger picture. She believes that Reckitt serves a far greater purpose than would appear on any financial balance sheet.

This is what motivates her.

“The reason why we exist is our purpose,” she says. “We are here to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world. This is what drives me manufacturingglobal.com

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RECKITT

every day in the decisions I take. We huge objectives and we are all working are always looking at better solutions together on achieving them by 2030,” to fulfill our purpose.” she says.

Operates in As such, Valerie is energised by Reckitt has targeted reducing Reckitt’s sustainability initiatives which greenhouse gas (GHG) emissions in its lie at the heart of both the company’s operations by 65% by 2030, as well as Countries ethos and its global impact. To achieve using 100% renewable energy and reducing these the company works closely with local its overall energy usage by 25%. This should communities to forge a brighter future. lead to a 50% reduction in its product “We are engaging together with our carbon footprint in the same timescale, partners with 22 million people through with the ultimate goal of being carbon programmes, partnerships and campaigns,” neutral by 2040. she explains. “Our objective is to have a lasting The company has partnered with impact on people and communities, and also the WWF to preserve and restore 2,100 to deliver the UN’s Sustainable Development kilometres of freshwater across two major Goals in which we are engaged.” river basins in the Amazon and Ganges. In These initiatives are also designed to reduce addition, one of its brands, Air Wick, is also Reckitt’s own carbon footprint. “We have working with WWF to raise awareness of

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1819

Year Founded

Manufacturing Industry

43,000

Number of Employees

£14bn Revenue

“ This is for the good of the people, the consumers, but as well for the planet” VALERIE SIEURIN

SENIOR VICE PRESIDENT, GLOBAL HEAD OF QUALITY, RECKITT

the importance of nature and how we can all do more to protect and restore it.

Valerie believes that neither Reckitt’s culture of Quality transformation nor its sustainability drive would be possible without the strong and clear leadership provided by the CEO, Laxman Narasimhan and company’s senior management.

“This transformation in Quality is only possible because of the leaders across the world that are engaged in this transformation,” she says. “We are driving innovation in the areas of hygiene, health and nutrition, continuing, improving and working on our sustainability goals in order to have a positive impact in the world.”

The aim behind the current transformation of the company’s Quality processes is to ensure that all of the disparate parts of Reckitt’s global family are connected and working together to achieve its purpose to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world. This requires a state of constant evolution.

“This is for the good of the people, the consumers, but as well for the planet,” Valerie says.

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BEHIND THE SCENES OF EHANG’S

MANUFACTURING OPERATIONS Edward Xu, Chief Strategy Officer, EHang discusses the concept of AAVs, taking us behind the scenes of EHang’s Yunfu factory and production of such solution WRITTEN BY: GEORGIA WILSON

To boldly go where no man has gone before…

U

rban-air-mobility, a concept that could have been plucked straight out of a Sci-Fi movie, is much closer to reality than ever before. Today, there are currently around 250 companies in the research and development of electric flying vehicles and the infrastructure to use them.

As the desire for on-demand services rises alongside the heightened focus on sustainability, organisations with their new availability in funding are increasing their investment in urban-air-mobility, ramping up the research and development progress being made.

“There’s been a convergence of several trends in recent years. First, on-demand services have changed the way we think about mobility. Second, there’s a focus on sustainability, which these vehicles support.

Third, there’s a lot of funding available— investors who want to be a part of the next big thing. And lastly, the technology is finally

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Edward Xu, Chief Strategy Officer, EHang

AI & AUTOMATION

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“ The increasing market demands and commercialisation of AAVs in China are driving us to expand our production and upgrade our manufacturing capabilities” HUAZHI HU

FOUNDER, CHAIRMAN AND CEO, EHANG

there to do this at scale,” reflects Robin Riedel, a McKinsey Partner.

“Totally agreed, but the fundamental one for me is really battery technology.

We are finally reaching the density and affordability of batteries where the physics and economics of powering one of these vehicles starts making sense,” adds Shivika Sahdev, McKinsey Partner.

As the investment continues to pour in (totalling over US$8bn at the end of March 2021), the industry edges ever closer to the

commercialisation of such technology, the use case that has seen the most investor interest is people transport.

Fly into the Future With this in mind, Manufacturing Global sits with Edward Xu, Chief Strategy Officer of EHang going behind the scenes of the company’s factories to see what it takes to manufacture such a product.

As a world leading autonomous aerial vehicle (AAV) technology platform company, EHang’s mission is to enable safe, autonomous, and eco-friendly air probability for everyone. The company provides its customers in multiple industries with AAV products and commercial solutions (air mobility, smart city management, and aerial media solutions). manufacturingglobal.com

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“ We are finally reaching the density and affordability of batteries where the physics and economics of powering one of these vehicles starts making sense” SHIVIKA SAHDEV

MCKINSEY PARTNER

“As the forerunner of cutting-edge AAV technologies and commercial solutions in the global Urban Air Mobility (UAM) industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities,” says Xu. In January 2016, EHang debuted the world’s first passenger-grade AAV - the EHang 184, single seat model. Two years later (2018), the company unveiled a dual seat model for testing, training, and demonstration purposes - the EHang 216, as well as a number of non-passengergrade AAV models suitable for a variety of industrial and commercial applications.

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“Unlike manually controlled UAVs, our intelligent AAVs can fly and operate autonomously. Our proprietary in-flight operating systems and on-the-ground infrastructure enables reliable and simultaneous control of a large number of AAVs,” says Xu. Manufacturing an AAV Mobility Solution When it comes to the manufacturing of this kind of solution, Xu explains that “EHang strives to design safe, reliable and functional products. At our design and testing centre, we have established a multitude of AAV flight tests, including climbing flight tests, high maneuverability tests, speed tests, night

AI & AUTOMATION

AAVs and Cybersecurity “Safety is our top priority and all our products are thoroughly tested in a variety of flight conditions, including harsh weather. AAV’s full redundancy design of flight components with backup systems ensures flight safety, including for the flight control systems, batteries, battery management systems, sensors, propulsion and systems for example, unlike a traditional helicopter with one propeller, our EH216 have 16). This means that even in the unlikely event that one or two propellers fail the AAV can continue to operate safely.

“The built-in fail-safe system automatically assesses the operation status of an AAV and every one of its components in real time. In case of malfunction of any components, their backup systems can immediately and seamlessly come online to ensure safety. In case of certain

damages, the fail-safe assesses the safety condition and determines whether to continue the flight or to land at a nearby safe location.

Monitoring from the command-and-control centre allows for intervention in the event of any in-flight difficulties.

“5G has the characteristics of ultra-high bandwidth, low latency, high reliability, wide coverage and large connection, which can better ensure that EHang AAV can realise real-time ultra-high definition transmission, remote low latency control, precise positioning and other functions, further improve the use efficiency and bring users a safer and more reliable flight experience.”

- Edward Xu, Chief Strategy Officer of EHang manufacturingglobal.com

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flying tests, as well as flight tests in harsh weather conditions. Our passenger-grade AAVs conducted trial or demo flights in eight countries across Asia, Europe and North America, predominantly in China. These trial or demo flights include passenger-carrying flights and flight tests in winds of up to 70 kilometres per hour, in fog with a visibility of approximately 50 metres, and at a flight altitude of 4,100 metres above sea level.”

Discussing the technology behind the solution, Xu continues to explain that there are proprietary in-flight operating systems installed in the AAVs, as well as on-theground infrastructure that have been designed to allow the AAVs to operate in various scenarios.

With both its AAV operating systems and infrastructure for different AAV commercial solutions sharing the same underlying technological architecture, Xu says, “our AAV operating systems include an autopilot and flight control system, a communication system, a battery management system and a safety management system, among other things. The AAV operating systems are installed on each of our AAVs to enable autopilot, navigation, real-time control and performance adjustment. Human control can be exercised from the ground using smartphones, tablets or computers as well as through our command-and-control system, meeting the varied demands of our customers.”

Inside EHang’s Yunfu Production Facility Approximately 24,000 square metres in gross floor area, the EHang Yunfu production facility is home to the company’s major AAV production process from manufacturing of key components and carbon fiber composite airframes to AAV assembling and flight testing.

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“ Electrically-powered UAM vehicles are eco-friendly, with zero emissions, a tremendous advantage over the majority of current land and air vehicles that continue to run on fossil fuels” EDWARD XU

CHIEF STRATEGY OFFICER, EHANG

EHang announced its plans to construct the facility in July 2020, supported with US$6mn in investment from the local government. The aim of the construction was to establish an industry leading AAV production centre that includes R&D for air mobility solutions, and a training centre for operations and technical talent.The initial annual capacity for the facility was 600 units.

AI & AUTOMATION

EHang Yunfu Facility

“The increasing market demands and commercialisation of AAVs in China are driving us to expand our production and upgrade our manufacturing capabilities.

The EHang Yunfu facility serves as an expansion of our existing facility and will support the growth of our air mobility business in China,” said Huazhi Hu, EHang Founder, Chairman and CEO in the announcement. At the beginning

of 2021, EHang released an update on the construction of the facility, detailing the expectation that Yunfu - which was three times the size of its then facility in Guangzhou (8,750 square metres) - will commence its production of AAVs in the second quarter of 2021.

As scheduled in July 2021, EHang started production at the facility in late June 2021 representing a scale-up of its manufacturingglobal.com

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EHang Yunfu Production Facility in Operation

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coronavirus in Guangdong in June 2021.

EHang 216 and EHang 216L AAVs built emergency air transportation routes across the Pearl River in Guangzhou, successfully completing multiple ‘contactless’ relief and support tasks in the quarantine and containment zones,” Xu.

production capabilities. Today the company is operating the whole production process from components manufacturing to aircraft assembling from Yunfu as well as training.

Using EHang’s AAVs in RealWorld Applications As EHang progresses with its developments and key industry applications the company looks at AAV including passenger transportation, tourism, sightseeing, logistics, and medical aid.

“As we progress, we have applied our EHang AAVs in various use cases including aerial sightseeing, and medical emergency transport etc. For example, EHang set up aerial emergency channels to help fight

Ensuring Sustainable Practices in AAV Production With transportation being a large contributor to the global carbon footprint, enthusiasm has been placed on electrification. “As we all know, urban congestion and pollution have become a headache for most metropolises around the world as there are more and more people and private cars,” says Xu. With AAVs being a much more sustainable option compared to helicopters, Xu emphasises that “as the ground traffic is coming to its max capacity, the full potential of the air above us remains unexplored and it explains the promising future of eco-friendly personal air travel serving as a really feasible use cases of urban air mobility (UAM).”

Ehang aims to seek cost-efficient solutions for many of the challenges of urban life through its AAV platform. AAVs can shorten travel time, reduce pollution, expedite emergency services, increase convenience, as well as save individuals and businesses time and money.

To ensure that it is sustainable in its operations, EHang’s AAVs use electric power to reduce environmental harm caused by emission. “Electrically-powered UAM vehicles are eco-friendly, with zero emissions, a tremendous advantage over the majority of current land and air vehicles that continue to run on fossil fuels,” concludes Xu. manufacturingglobal.com

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WRITTEN BY: GEORGIA WILSON PRODUCED BY: MIKE SADR manufacturingglobal.com

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Hitachi Vantara’s Siddharth Verma and Andrew Mudford discuss the company’s IIoT journey and the benefits of custom, persona-based solutions

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ith experience spanning more than 20 years each, both Siddharth Verma, General Manager Manufacturing Division and Andrew Mudford, Account Director at Hitachi Vantara both began their careers in 2000.

Specialising in manufacturing, mining, and technology, these two executives reflect on Hitachi Vantara and its journey since they joined the company.

“Hitachi Vantara is a subsidiary of Hitachi Ltd,” begins Verma, “with over 110 years of industrial expertise, and 60 years of IT experience.”

“Hitachi is a world leader in areas from manufacturing to automotive to power grids and more, but a lot of how we deliver value is through IT and helping our customers digitally transform their operations for data-driven outcomes,” adds Mudford. “Our particular division is tasked with solutions across the IT spectrum, and a big part of that is trying to empower Hitachi's vision around social innovation and the digital connection of our physical world.

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“Like many companies, we continue to evolve as a business and the key thing for us is that we have strong leadership driving our agenda around the modern connections of people, places and things to discover new insights that drive innovation. We are focused on the core tenets of data, and how you leverage that data to provide insights and value to customers, whether that’s at the underlying IT infrastructure level or targeted insight for specific industries or verticals such as manufacturing or mining.”

Hitachi Vantara’s Industrial IoT Journey “Industrial IoT (IIoT) means lots of different things to different people. At its most core for us, IIoT is about understanding the information and data that customers have access to, and how they can get insights from the data?” explains Mudford.

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“ Like many companies, we continue to evolve as a business and the key thing for us is that we have strong leadership driving our agenda around the modern connection of people, places and things to discover new insights that drive innovation” ANDREW MUDFORD

HEAD OF PRODUCT MANAGEMENT, INDUSTRY SOLUTION PRACTICE, HITACHI VANTARA

“The biggest thing we've found is that customers - depending on what particular part of manufacturing they are operating in - are all at a different stage when it comes

HITACHI VANTARA

Improving manufacturing and mining operations with Industrial IoT “Industrial IoT applications can help manufacturers across almost all of their domains. We can create a rich amount of contextual data from what each process is actually doing. What is the process

SIDDHARTH VERMA TITLE: GENERAL MANAGER MANUFACTURING DIVISION LOCATION: CALIFORNIA, UNITED STATES Sid leads the IIoT and the Industrial Solutions division for Hitachi Vantara in digital transformation and Industry 4.0 operating models, supply chain control towers, asset performance management, manufacturing operations, and quality and predictive maintenance. Sid helps customers create smart, connected factories and intelligent products. He also manages the industry leading Lumada Manufacturing Insights portfolio of products on behalf of Hitachi Ltd. Previously, Sid led the practice for Siemens Advanta and Deloitte Digital IIoT with a focus on IoT-enabled growth and operation improvement in the Industrial and Energy sectors.

EXECUTIVE BIO

to digital transformation. Some of our customers are at a more basic level, meaning that they may just want to convert paper and manual processes to digital. At the other end of the spectrum, we're dealing with mature customers, for example in the automotive sector we require more advanced analytics and machine learning type techniques.

“The practices that we use have been operating in factories for a long time. Just digitising those allows customers to be a lot more progressive and that's where we start.

“We've been on this journey for a little while now, and there's still a long way to go. The industry as a whole is not that digitally mature yet and there are lots of people capable of contributing to digital progress. Some of them are going to be partners, some of them are going to be competitors, and hopefully all of them in some capacity or another are going to be our customers.”

Echoing Mudford’s comments, Verma says, “Our biggest challenge is trying to move forward with the capabilities that we have in place and in a format that the client can actually understand and appreciate. Over time options have grown. There are now too many options and vendors. A secondary challenge for us is to differentiate the competition at every step and think about what is and isn’t possible.”

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Hitachi Vantara: Custom, Persona-Based Industrial IoT

“With IoT, our customers can start collecting quality data to help them automatically detect a lot of the defects that were previously only visible by a person or a process at a later stage. It gives them a lot more insight into how a process can be done and on a faster scale. The quality is measured at a much higher speed and a much higher level. One of the biggest use cases in this is around maintenance failures. We can use IoT technologies to reduce catastrophic failure, which means we can predict failures in advance, and the maintenance schedules can be optimised to the way items are used, which will overall reduce the cost for the manufacturer and ensure they meet their commitments,” adds Verma.

“ A lot of solutions at the moment are trying to besqueeze into a one-size-fits-all solution.

For us, with persona-based approaches, we can be very targeted when solving problems specific to those industries” ANDREW MUDFORD

HEAD OF PRODUCT MANAGEMENT, INDUSTRY SOLUTION PRACTICE, HITACHI VANTARA

contributing? What are people contributing?

And once we’re able to see the data across the board, we start to see potential and ask the following questions: What if I changed this product? What if I produce a few more of them? And what will happen if I change this step? What if I do these shifts? With a digital twin, we can simulate these different scenarios and actually help our customers plan their manufacturing operations,” explains Verma.

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Commenting on the benefits of Industrial IoT, Mudford explains that it ultimately depends on the digital maturity of the customer. “However, at the most principal level, we’re talking about yield and production. We’re talking about the ability to produce units faster and at a more cost effective price for the customer..

“A lot of the hype around Industrial IoT is that our customers think that it’s a different operating model. In principle, however, I don’t think it is. What we're really doing is trying to provide insights and put them into the hands of operators - to accelerate the decision making process that they may have been unable to make before. This could include the planning of activities, the automation of assets, or even something as simple as ensuring that operators have the insights to make the right product.”

Mudford continues, “we've put the insights into the hands of operators in their core system of engagement, which from a change management perspective reduces the amount of time it takes for an operator or the business to take advantage of these activities. And if you look at the history of innovation, manufacturing has been an innovative industry for a long period of time, but engineers have been solving the problems. When these groups of engineers solve problems, they then move on to the next issue. After a period of time the gains that were made start to erode.

One of the benefits that we see from our approach to Industrial IoT is that we can basically embed all of these changes to

ensure that they become sustainable. That's the fundamental difference. As opposed to just throwing sensors or dashboards at people, it's about embedding sustainable change into the operations of a business.”

The benefits of custom solutions and developing them on a large scale “Customisation means different things to different people, but for us at Hitachi Vantara, it’s about being able to tailor a solution to the needs of our customers while using repeatable building blocks.

That’s where the productisation part of our business comes into it,” says Mudford.

“Sometimes you can have a solution bespoke to the customer's needs, but as the customer or the industry evolves, the tailored solution is too unique to evolve with them. We want to get the balance between

solutions that are targeted to a specific customer, industry, or problem that can also be scaled and productised. This is our general philosophy and where we see the greatest amount of benefit.”

Adding to Mudford’s comments, Verma explains the two extremes when it comes to manufacturingglobal.com

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solutions and solving problems. “The first extreme can happen when we deploy a custom solution which is built for a certain client, with their particularities and needs.

These solutions tend to require a lot of system integrations and hence, become

ANDREW MUDFORD TITLE: HEAD OF PRODUCT MGMT, INDUSTRY SOLUTION PRACTICE INDUSTRIES: DIGITAL TRANSFORMATION, IOT, SOCIAL INNOVATION, INFORMATION & ANALYTICS

Andrew Mudford heads Industrial Solutions at Hitachi Vantara and focuses on enabling success with digital transformation, IoT, social innovation, data management and analytics for customers within manufacturing and mining industries.

With almost 20 years’ experience, Andrew has been involved in the introduction of several world-leading solutions, including the development and implementation of image capture and facial recognition technologies, laser engraving technologies for enhancing the efficiency and security of passport issuance systems and travel documents, smart meters for utilities, and the introduction of NFC technologies for contactless and mobile payments.

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EXECUTIVE BIO

LOCATION: NSW, AUSTRALIA

expensive in nature, and over time, very difficult to maintain. On the other extreme, we have a cookie-cutter solution business which is pure software. The idea is the company will adjust itself to the customer needs, resulting in a much larger shift from the company.

“What we have done at Hitachi Vantara is bring in concepts that enable us to build a solution that gives us economies of scale with lots of features that can be customised at any time. We are inspired by what we call mass customisation and the concept of itemisation which allows software frameworks to be highly monetised. This allows us to leverage a lot of features, but the cost is very low due to them being mass-produced.”

Industry-specific personabased solutions and KPIs Being one of the largest manufacturing companies in the world, Hitachi is fortunate to be able to think along the same lines as the customers it serves.

“We have built the solutions and designed our technologies while thinking about what happens on the shop floor. We take into consideration everything that the quality manager, the maintenance manager and the health and safety manager does in his / her role. This is what we refer to as a persona-driven solution.

We have built this expertise outside of the beta and into a user interface that is easily understood and flexible.

“The data transforms into an insights calculation and generates KPIs which feed into the dashboards. The user interfaces allows for the health and safety officer or maintenance officer to access the KPIs or data points directly to enable them to change the way people do their jobs.”

HITACHI VANTARA

When it comes to industry-specific KPIs (key performance indicators), Verma adds that these are important to the way that the manufacturing industry works. Working on a set of KPIs, allows manufacturers to be data-driven in their work, as they know that quality work is being produced.

“So, as I was saying before, industryspecific persona and the KPIs of a particular industry or subindustry is quite important.

Generally speaking, people in the industry talk about manufacturing as one holistic industry area. But when you start breaking it down and consider industries such as mining, medtech, food and beverage, agriculture, paint and chemicals - all of these industries come under the manufacturing umbrella,

although they don't always adhere to the same KPIs. This is why industries need their own specific KPIs, and we need to adhere to these KPIs rather than reinvent them,” continues Verma.

Adding to Verma’s comments Mudford says, “This is an area we pride ourselves on. A lot of solutions are trying to squeeze

“We can use IoT technologies to reduce catastrophic failure, which means we can predict failures in advance, and the maintenance schedules can be optimised” SIDDHARTH VERMA

GENERAL MANAGER MANUFACTURING DIVISION, HITACHI VANTARA manufacturingglobal.com

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“Our biggest challenge is trying to bring forward the capabilities that are there and in a format that the client can actually understand and appreciate” SIDDHARTH VERMA

GENERAL MANAGER MANUFACTURING DIVISION, HITACHI VANTARA

into a one-size-fits-all solution. For us, with persona-based approaches, we can be very targeted when solving problems specific to these industries; for example, from the subindustry we are able to provide a solution to a manufacturer that specifically addresses the maintenance manager's needs. With a one lens approach we’re very strong, but it becomes even more powerful when we get into the sub-industry. From this point we can be even more targeted.

“Manufacturing is a very broad term and what's appropriate to a steel manufacturer is different to an automotive manufacturer and an aerospace manufacturer. And so, for us, we pride ourselves on driving personas, not only to the maintenance manager, but the maintenance manager working in steel manufacturing. We talk in their language and about things that resonate with them. We provide value in a faster space of time which we are ultimately going to get measured on. Our customers don't have the time or energy to take on science based projects, and this allows us to demonstrate relevant proof of value.”

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TECHNOLOGY

SHOULD

MANUFACTURERS

DATA ANALYSIS? BE PRIORITISING

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TECHNOLOGY

Now more than ever, manufacturers should be harnessing the value of data to optimise business processes and outcomes with predictive analytics

WRITTEN BY: GEORGIA WILSON

Jens Beck Director for IIoT, Analytics, and Innovative Cloud Solutions, Syntax

Francois Zimmermann EMEA Field CTO, Tableau Software

P

oetically put, Jens Beck, Director for IIoT, Analytics, and Innovative Cloud Solutions at Syntax says “optimising the resources needed for a business to stay competitive is a challenge as old as business itself.” But coupling this with today’s soaring prices for raw materials, global competition, talent wars, and shifting customer expectation, “it is of utmost urgency for manufacturers to start using their data to optimise processes and business outcomes in order to stay competitive,” adds Beck.

“Privately, nearly everybody has already arrived in a super digital world, from smart washing machines to smart fridges, speech control and so forth, so why do we have to use paper and spare parts on stock at work? Why do our machines not talk to each other; why do they not tell me when they need maintenance; why do they not tell my service provider in advance when to come and what spare parts to bring? This is simply because digitisation on the shop floor has only just begun. The source to make this all happen is data and especially the digital twin.”

But how close is this dream within reach?

Francois Zimmermann EMEA Field CTO, Tableau Software explains that despite “87% of CXOs saying that being an intelligent enterprise is their top priority, the reality is that only 30% of frontline employees’ actions are driven by data analysis. This means that manufacturingglobal.com

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TECHNOLOGY

“Optimising the resources needed for a business to stay competitive is a challenge as old as business itself” JENS BECK

DIRECTOR FOR IIOT, ANALYTICS, AND INNOVATIVE CLOUD SOLUTIONS, SYNTAX

most business decisions are made based on bias or on what has worked in the past rather than live actionable insights.”

With leaders in manufacturing under pressure to identify risks in complex supply chains that extend beyond their own boundaries, while achieving sustainability goals, and retaining their customers, “leveraging the right data, can create a free flow of the facts that they need to make critical and profitable decisions, while at the same time, increasing visibility and resilience across their supply chains,” adds Zimmermann.

By adopting a data first strategy, manufacturers can look at every key business activity, ensuring that all

stakeholders have access to a 360 degree view of their customers and operations in order to make effective decisions fast. “In manufacturing this becomes an extension of design thinking in product design, so that fast feedback loops are created to continuously improve products and processes,” he continues.

“By gathering data at every opportunity and examining workflows, points of inefficiency can be quickly identified and the real issues exposed. A data-first strategy promotes being able to look under the hood of the business to assess in granular detail where time and money is being wasted and where weak points might present a security risk. Then insights and predictions can be applied manufacturingglobal.com

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to tweak operations and workflows where changes will have a positive impact, without spending money on solutions when they are not necessarily needed.”

Successfully adopting a data first strategy both agree on what a data strategy consists of Beck and Zimmermann both agree that a successful data-first strategy encompasses both culture and technology.

“In my opinion, the most important thing is the right mindset. Trust your data, work on your data quality, establish data governance, and start collecting data. A successful datafirst strategy is not brought to life overnight, it is a journey. Start with small overseeable pilots to build on and gain trust in your data across your organisation. As these first successes continue, convince people of the benefits of using their adequate data,” says Beck.

Expanding on this, Zimmermann adds; “manufacturers that want to build a data culture need to address data governance and data literacy in order to enable stakeholders to access trusted data assets from across the whole business and answer new questions without over-reliance on core IT. “To deliver an agile data foundation, manufacturers should look at creating a single source of truth that pulls together data from across the entire business. They can leverage low-code or no-code, cloud-based, SaaS data management and analytics platforms to enable more parts of the business to selfserve data and insights.

Manufacturers should then look for ways to bring those insights into key business apps so that front-line workers can use them as a seamless part of their workflow.”

Enter, predictive analytics…

“Per definition, predictive analytics tells you what is going to happen next based on 122

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“ 87% of CXOs say that being an intelligent enterprise is their top priority, the reality is that only 30% of frontline employees actions are driven by data analysis” FRANCOIS ZIMMERMANN EMEA FIELD CTO, TABLEAU SOFTWARE

trained models and historical data – so by referencing a past experience,” says Beck, which is why he defines it as “the most valuable use case.”

Predictive analytics assesses workflows and finds inefficiencies to predict future events i.e. How might a supply chain hold up under X or Y conditions? What points of weakness might create issues under specific sets of circumstances?

“Using historical and real-time data, predictive analytics can bring to light possible future outcomes and identify potential issues that manufacturers can then preemptively mitigate. This enables manufacturers to make data-driven decisions about their business with full endto-end visibility,” adds Zimmermann.

How can predictive analytics help manufacturers to improve their operation?

By harnessing predictive analytics, manufacturers can improve their operations

TECHNOLOGY

in a number of ways; improving overall equipment efficiency, improving shop floor efficiency, optimising production planning, improving safety, improving productivity, improving quality, and mitigating risks.

“Two key areas where predictive analytics can help manufacturers improve their operations are reducing risks in the supply chain and driving sustainability,” says Zimmermann. “Supply chains naturally generate huge amounts of data, which is key to building the data sets needed for predictive analytics. With so many elements and variables, risks in the supply chain are inevitable. With predictive analytics it is possible to identify these before they have

an impact, and even test what the results of a decision would be before it is made.

This can improve safety measures for staff, and empower manufacturers to make rapid changes to business operations in the face of disruption without fear of hidden risks and negative outcomes.

“Increasingly, sustainability in manufacturing is critical. This is driven not manufacturingglobal.com

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only by customer demand for sustainable products and packaging, but also the rising cost of energy and raw materials. But the global supply chain remains extremely inefficient. While manufacturing accounts for 50% of the gross world product (GWP), 20% of every dollar the sector spends is wasted. Put simply 10% of everything made worldwide is lost to waste and inefficiencies.

Predictive analytics can identify these inefficiencies, helping manufacturers to improve yield, uptime, and time to market, 124

December 2021

while boosting productivity significantly and helping manufacturers to achieve their carbon footprint goals.”

What will the future hold for predictive analytics?

Over the years, predictive analytics technology has rapidly improved, reaching a mature and simplified state where manufacturers “do not necessarily need data scientists to walk our first steps in the direction of predictive analytics,” says Beck.

TECHNOLOGY

“Hyperscalers have made the technology available for affordable prices and a lot of solutions and products are readily available on the market. All of this development has a knock-on effect on industrial sensors, IIoT gateways, networks and so forth, where the prices also came down while services, availability and capabilities became available. Take the development of 3G, 4G and 5G, in combination with cloud computing, which only enables topics like smart farming or smart cities. On the

downside, the number of providers and solutions is growing so fast that it is very difficult for a customer to get an overview and find the right solution without being an expert.”

When it comes to the future for this technology, Beck adds: “I currently predict two evolvements for the future of analytics technology. First there are more and more micro-services, solutions and products to allow normal users to tap into the field of predictive analytics without special skills or pre-knowledge. Even though the risk and weakness of this is that they are not considering the totality of the overall picture, they help educate people, build trust and are good starters for a data-first strategy.

It's important for organisations to find the right balance when engaging with somebody to develop the solution path for their specific scenario.

“Secondly, I see strong evolution bringing predictions and big data analytics back to the edge at reasonable cost. This will be very interesting to watch as it will open up even more business cases where high network traffic costs often hinder profitable business cases. The next major evolution will be affordable quantum technology which allows even larger prediction models and will truly be the enabler for complex prescriptive analytics.”

Echoing Beck's comments, Zimmermann also adds, “the most significant change affecting predictive analytics and its future is its democratisation. Today data science is often deeply technical, expensive, hard to scale and siloed from the rest of the business. Low-code and no-code platforms are bringing these capabilities closer to line of business users that understand their workflow and have domain expertise but may not have data science training. This is manufacturingglobal.com

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“ A successful data-first strategy is not brought to life overnight, it is a journey, start with small overseeable pilots to build and gain trust in your data across your organisation” JENS BECK

DIRECTOR FOR IIOT, ANALYTICS, AND INNOVATIVE CLOUD SOLUTIONS, SYNTAX

key to improving time to value and ensuring that predictive analytics can deliver value at the point of maximum impact.”

Zimmermann sees quick wins in the augmented experiences that bring predictive insights directly to data consumers.

“Business users will need a variety of experiences that empower them to work alongside an AI to derive value from their data assets. The best tools can quickly and efficiently pull together large data sets from multiple sources into an analytics workbench that lets users understand ‘what has happened and why’, ‘what will happen’, and ‘what is likely to happen if a specific action is taken’. This enables business users to sift through massive data sets and explore millions of combinations in seconds to automatically surface insights. If users can build custom predictions and perform what-if analysis, they can then bring these models and recommendations into their business workflow to operationalise the findings for the whole organisation. The future of predictive analytics is therefore that more data consumers can effectively see and understand their data.” manufacturingglobal.com

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TOP 10

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Innovations in Manufacturing Manufacturing Global lists its Top 10 innovations over the decades in the manufacturing process WRITTEN BY: GEORGIA WILSON Innovation - a key component for economic growth and success. Innovation in manufacturing moves the industry forward to be more productive, more efficient, and increases quality. By innovating manufacturers can gain a competitive edge, meet customer demands, and tackle industry challenges.

With this in mind it is crucial for manufacturers to encourage change, innovation, risk-taking and ‘soft skills’ such as creativity.

In this Top 10, we look at some of the innovations made in manufacturing processes over the decades. manufacturingglobal.com

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TOP 10

09

Augmented Reality (AR)

10 Digital Twins A key component of a smart factory, digital twins enables manufacturers to overlay in a virtual environment the attributes that exist in a physical plant.

Manufacturers are harnessing this innovation to maximise the simulation to optimise their production and processes.

“Digital twins provide a virtual closed-loop system whereby manufacturers can simulate as much as they possibly can so that when they go into the physical environment, it has been de-risked as much as it possibly can” - Simon Keogh, General Manager, Factory Automation at Siemens Digital Industries 130

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Augmented reality (AR) from science fiction to reality, the concept was first achieved in 1957 by cinematographer Morton Heilig. However, the first properly functioning AR system was not achieved until much later in 1992 at the USAF Armstrong Research Lab. Today manufacturers are using AR in their operations to bring products to life in design, drive efficiencies, simplify complexities, troubleshooting through visual workflow, and training.

TOP 10

“[Smart MES] helps manufacturers to transform their business and operations through data integration, machine learning, and predictive analytics” - Joe Gerstl, Director of Product Management, GE Digital

08

Smart MES A solution beyond traditional MES functions; Smart manufacturing execution systems (MES), enable lean manufacturing capabilities by harnessing Industrial IoT insights and intelligence. Smart MES combines several innovations in one hivemind to obtain a rich set of data in order to track and document the production of raw materials to finished goods.

By integrating Smart MES with an ERP system manufacturers can obtain a single source of truth throughout the organisation.

07

Smart Sensors

Unlock productivity gains with smart sensors. The development of smart sensors has given manufacturers the opportunity to benefit from connectivity and data collection. By applying these sensors to factory machines manufacturers can turn them into smart devices that are connected to intelligent networks along the entire value chain.

Smart sensors allow manufacturers to monitor, control, and improve operations; predict equipment failure and trigger maintenance protocols, automatically log data, and increase the speed of the flow of information, with real-time information. manufacturingglobal.com

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TOP 10

06

Connectivity In adopting 5G, manufacturers stand to benefit from improved connectivity, lowlatency, high reliability, improved productivity, end -to-end traceability of data, and the capability to adopt other advanced technologies.

“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, AMRC

05

Cloud Computing

Say goodbye to data silos! For the modern manufacturer cloud computing is a vital tool to achieve transparent communication between employees, stakeholders, and machines. Cloud computing provides manufacturers with an agile, flexible, integratable, and secure way for manufacturers to share, communicate and manage their factory data.

Whether the data is held in a public or private cloud, cloud computing can also be scaled up or down much quicker than human or capital infrastructure.

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04

Artificial Intelligence (AI) Securely cemented into the building block of industry 4.0 adoption, artificial intelligence (AI) is a frequent driving force of many innovations in the manufacturing space including robotics, predictive maintenance, digital twins and inventory management.

The concept of AI itself dates back to 1951; Christopher Strachey developed the earliest successful application of the technology which ran on the Ferranti Mark I computer.

03

Additive Manufacturing (3D Printing) Additive Manufacturing (3D Printing), a technology that shouldn’t be undervalued.

Additive Manufacturing can often be perceived as a buzzword in the industry, “but if we dissect where additive manufacturing is being used today, it becomes more clear as to where the technology plays” - Andreas Langfeld, President EMEA, Stratasys.

As organisations shift away from keeping large amounts of inventory, and closer to customisation and localised supply chains, the flexibility, cost savings and efficiency gained from additive manufacturing is increasing in its appeal for manufacturers.

Robotics

02

Integratable, adaptable, mobile, efficient, productive, safe, quality, and agility. Do these words sound like music to your ears? Well these are just some of the benefits that manufacturers who adopt robotic technology can gain.

The first industrial robot prototype was installed at a General Motors die casting plant in 1959 - the Unimate #001, created by George Devol. Since his first creation, a plethora of robotics for the manufacturing process have been developed ranging from stand-alone, to collaborative, autonomous guided vehicles (AGVs), and Exoskeletons, providing manufacturers with superior perception, integrability, adaptability, and mobility.

“Advanced robotics will bring flexibility into automated processes as well as making it possible to automate what could not be automated before, opening up for masscustomisation of products” - Sebastian Elmgren, Portfolio Manager for Smart Manufacturing at Ericsson

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01 Analytics for Manufacturing - Tableau

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1

Analytics Data, quite possibly the most valuable tool in a modern manufacturer’s arsenal in a post-pandemic and increasingly disruptive environment (shortages, BREXIT, and supply chain complexities).

More and more, manufacturers are applying data and analytics to their operations and processes to optimise supply chains, improve forecasts, develop propositions, and monitor machine usage and reliability.

Those already adopting a data-first, analytical strategy stand to ride the disruptive wave by tapping into real-time and historical data to predict future outcomes and identify potential issues, which ultimately leads to a proactive approach compared to a reactive one.

“By gathering data at every opportunity and examining workflows, points of inefficiency can be quickly identified and the real issues exposed. A data-first strategy promotes looking under the hood of the business to assess in granular detail where time and money is being wasted and where weak points might present a security risk” - Francois Zimmermann EMEA Field CTO, Tableau Software manufacturingglobal.com

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