December 2023 | manufacturingdigital.com
AVEVA Innovation in action, from patents to the cloud ABB INDIA Decarbonisation and water positivity
Digital Factories
NTT & VERIZON The future of manufacturing and 5G
3D-PRINTED BODY PARTS
IMPROVE PATIENT OUTCOMES Erez Ben-Zvi of Stratasys discusses the impact on healthcare FEATURING:
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The Manufacturing Team EDITOR-IN-CHIEF
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FOREWORD
Across the manufacturing sector, commitment to ESG and innovation in sustainable manufacturing is rising “We hear from PPG’s Truman Wilt, who discusses tyre manufacturing and ESG”
MANUFACTURING GLOBAL MAGAZINE IS PUBLISHED BY
In the December issue of Manufacturing Digital we explore 3D printing in healthcare, cloud solutions and 5G in manufacturing, as well and hear of the latest developments in energy efficiency and water conservation Welcome back to Manufacturing Digital – for the final issue of the year! We hear from PPG’s Truman Wilt, who discusses tyre manufacturing and ESG. ABB India's sustainable manufacturing journey covers energy efficiency and water conservation. Ganesh Kothawade tells us how he plans to reduce waste and promote recycling. Meanwhile, Erez Ben-Zvi, Vice President Medical at Stratasys, discusses the future of 3D printing and how medical professionals are using this technology in various sectors. AVEVA’s Chief Product Officer, Rob McGreevy, discusses why manufacturers are turning to the cloud to build a sustainable future. Finally, Parm Sandhu from NTT explains how private 5G will power the future of manufacturing. What would you like to see in 2024? Let us know on LinkedIn at Manufacturing Digital and Twitter @ManufacturingDg Keep looking up,
HELEN ADAMS
Helen.Adams@bizclikmedia.com
© 2023 | ALL RIGHTS RESERVED
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The Portfolio
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CONTENTS UP FRONT 14 THE MANUFACTURING INTERVIEW
14
PPG's Truman Wilt on vital silica technology and ESG
20 LIFETIME OF ACHIEVEMENT
Dow MobilityScience’s Technical Director John McKeen
20
26 PEOPLE MOVES
Recent significant moves in the manufacturing sector
28 THE MONTH THAT WAS
Highlights from November
26
32 8
December 2023
DECEMBER 2023
52
FEATURES 32 TOP 10
42
Digital factories
42 SUSTAINABILITY
ABB India: Water positivity and the net zero journey
54 CGI
revolutionising manufacturing with data strategies
80
70 DIGITAL MANUFACTURING
Stratasys’ 3D printing journey and the impact on healthcare
80 FUJITSU UK
Leading digital transformation in fintech
70 manufacturingdigital.com
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AVEVA’s innovation in action, from patents to the cloud
110 DANFOSS
The journey to net zero and energy efficiency
128 TECHNOLOGY & AI
NTT and Verizon on the future of manufacturing and 5G
140 ARXADA
Arxada's short-term delivery and long-term capability
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128
000 manufacturingdigital.com
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THE MANUFACTURING INTERVIEW
PPG’S TRUMAN WILT
DISCUSSES VITAL SILICA TECHNOLOGY AND ESG Truman Wilt is R&D Director, Specialty Coatings and Materials, at PPG, where he drives the development of new and innovative products Q. INTRODUCE YOURSELF AND YOUR ROLE
TRUMAN WILT TITLE: RESEARCH AND DEVELOPMENT DIRECTOR COMPANY: PPG INDUSTRY: PAINT, COATING, AND ADHESIVE MANUFACTURING LOCATION: PITTSBURGH, USA Wilt is the Director of Research and Development for PPG’s Specialty Coatings and Materials (SCM) strategic business unit, which is based in Pittsburgh. Wilt is responsible for managing the development of new products, and the continued optimisation of existing ones.
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December 2023
» I am a chemist and currently the
director of research and development for PPG’s Specialty Coatings and Materials (SCM) strategic business unit. Based in the Pittsburgh area where PPG is headquartered, I am responsible for leading SCM’s ongoing development of new and innovative products, and the continued optimisation of existing products. My team works closely with our customers, and their customers, to help solve their most challenging problems.
Q. WHO IS PPG?
» PPG is a global manufacturer of
paints, coatings and specialty materials operating in more than 70 countries with 50,000 employees. The company serves
“When used in tyre treads Agilon silica improves fuel efficiency and traction and extends treadwear”
THE MANUFACTURING INTERVIEW
customers in construction, consumer products, industrial and transportation markets and aftermarkets. In the SCM business, our products help secure the personal information in passports and ID cards to combat fraud, make our car tyres safer and more fuel-efficient, and provide monomers, coatings and photochromic dyes for eyeglass lenses that improve and enhance your vision. We also produce energy-efficient organic light-emitting diode (OLED) materials to create the vibrant images 16
December 2023
“ Manufacturers are under increasing pressure to create products faster and better, while reducing impact on the environment”
PPG: ‘To Protect and Beautify the World’ WATCH NOW
you see on your TV, smartphone and other consumer electronics.
Q. WHAT IS PPG’S AGILON PERFORMANCE SILICA TECHNOLOGY?
» PPG Agilon performance silica
products are treated silicas that have been chemically modified to enhance specific properties. By precipitating silica and silane together, Agilon silica delivers a single, finished compounding solution that uniquely combines product and process.
Typically used as reinforcing fillers for tyre and industrial rubber applications, they enable manufacturers to enhance rubber performance, simplify their manufacturing processes and contribute to sustainability goals.
Q. HOW DOES THIS SUPPORT MANUFACTURERS?
» For tyre manufacturers developing
high-performance tyres, Agilon silica reduces rolling resistance to make vehicles more fuel efficient; improves traction and handling in wet, snowy or manufacturingdigital.com
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THE MANUFACTURING INTERVIEW
icy conditions; and extends tread life so that tyres last longer. For industrial rubber manufacturers, Agilon performance silica products help manufacturers formulate compounds with better heat build-up resistance, improved tensile strength, higher hot rebound, lower compression set and other performance characteristics. During manufacturing, Agilon silica allows rubber compounds to be made using shorter mixing times, subsequently increasing the plant mixing capacity. Agilon silica also reduces mixer wear, energy consumption and VOC emissions.
Q. HOW DOES THE REPORT HELP TYRE MANUFACTURERS?
» While Agilon silica has been on the
market for several years, this new research shows additional benefits to manufacturers. The report demonstrates energy savings and other manufacturing benefits for tyre makers, proving that Agilon silica provides nearly 50% energy savings and cuts manufacturing time by a third compared to conventional silica by eliminating one mixing step. The report also found added benefits for tyre makers compared to non-treated silicas, including increased mixer fill factor (the ratio between the volume of material put in a mixer, and the total mixer volume) and higher silica loadings. There are also significant sustainability benefits for end users: when used in tyre treads, Agilon silica also improves fuel efficiency and traction and extends treadwear. 18
December 2023
Q. HOW DOES AGILON HELP TYRE MANUFACTURERS’ ESG EFFORTS?
» Manufacturers and brand owners
are under increasing pressure from customers and regulators to create products faster and better, all while reducing impact on the environment. Utilising Agilon silica in the manufacturing of tyres supports both the manufacturer and brand owners’ ESG efforts, as suppliers and OEMs play a major role in ESG data compilation and reporting. Agilon silica enables tyre manufacturers to find 50% energy savings, cut manufacturing time by a
third compared to conventional silica and significantly reduce VOCs at their plants.
Q. WHAT DOES THE NEXT 5-10 YEARS HOLD FOR TYRE MANUFACTURERS?
» As electric vehicle adoption continues
to grow and as companies’ ESG results become more transparent, companies will need to identify new and innovative ways to be more sustainable, while simultaneously producing safe and effective products. Working closely with suppliers, like PPG, is critical. Strategic supplier partnerships enable manufacturers to identify and implement solutions to make products and processes better and more sustainable.
“My team works closely with customers to help solve their most challenging problems”
LIFETIME OF ACHIEVEMENT
JOHN MCKEEN
DOW MOBILITYSCIENCE’S TECHNICAL DIRECTOR IS IN SUSTAINABILITY VANGUARD
John McKeen is the Technical Director at Dow MobilityScience, where he’s worked since 2009. He leads sustainable solutions and works with Formula E & NASCAR
M
cKeen is Technical Director at Dow MobilityScience, a chemical manufacturer. He works with prospective customers and across Dow’s Research & Development functions, to maintain focus on key challenges and areas that will advance the future of mobility. “I find effective ways to utilise our expertise for adapting to the rapidly changing needs of vehicle OEMs, tiersuppliers and their value chain partners.” Dow Mobility Science’s core purpose is to serve its mobility customers through one market-facing platform and facilitate the shift to next-generation mobility solutions. Electrically powered vehicles are becoming increasingly capable in terms of technology, performance, and efficiency – but also increasingly complex. Consumers’ expectations for
JOHN MCKEEN TITLE: TECHNICAL DIRECTOR COMPANY: DOW MOBILITYSCIENCE INDUSTRY: CHEMICAL MANUFACTURING LOCATION: MICHIGAN, USA John McKeen is the Technical Director at Dow MobilityScience, where he works with prospective customers and across Dow’s vast businesses. He finds effective ways to utilise Dow’s expertise for adapting to the rapidly changing needs of vehicle OEMs, tier-suppliers, and their value chain partners.
manufacturingdigital.com
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LIFETIME OF ACHIEVEMENT
“ Dow MobilityScience helps make vehicles safer, longer-lasting, more connected, efficient, and profitable for manufacturers”
WATCH NOW
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December 2023
LIFETIME OF ACHIEVEMENT
vehicle offerings are higher than ever – when balancing innovation with cost-efficiency is paramount for OEMs. “That’s where Dow MobilityScience comes in: to help achieve that balance and provide innovative solutions that make vehicles safer, longer-lasting, more connected, efficient, and profitable for manufacturers.” McKeen leads innovative solutions for Electric Vehicles McKeen was led to the industry due to his interest in scientific and engineering principles and wanting to deliver things that society cares about: better infrastructure and non-fossil-fuel-based energy. He gained BSc degrees in Chemical and Electrical Engineering, and an MSc in Electrical Engineering, before completing his PhD in Chemical
Engineering, when he joined Dow’s Research Assignments Programme. “In my first remit in Dow Solar, and then the automotive space, I gained huge appreciation for how industrial technological and materials innovation can improve product performance, while also enhancing manufacturing efficiencies and sustainability,” he said. “This hugely motivates me in my work, particularly with the e-mobility transition and desire to be better stewards of our natural resources and planet.” McKeen is dedicated to the sustainable optimisation of the production process for vehicles, as well as the whole vehicle lifecycle. Mobility product strategies, technological advancement and legislation are heavily influenced by emissions reduction. “This significant challenge requires an equally broad approach to finding solutions, which means enhancing the sustainability of the entire vehicle development process – from design and production, to usage and end-of-life. We work with OEMs and tiersuppliers to provide sustainable materials solutions for vehicles, while introducing more sustainable and innovative processes throughout the supply chain.” Applied together, manufacturers can enhance performance and efficiency, while achieving sustainability targets and reducing environmental impact. Besides this, McKeen has new solutions for EV design. Given consumers’ expectations and the competitiveness of the industry, Dow is focused on helping OEMs produce safe, reliable, efficient vehicles from entry-level through luxuryperformance segments. manufacturingdigital.com
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LIFETIME OF ACHIEVEMENT
“Our EV solutions encompass everything from optimising battery safety, range and thermal management, to enhancing safety systems and reducing vehicle weight,” he says. A huge part of this comes down to design engineers’ choice of materials and the connections between component design- and material-choice. “While that may be obvious, in areas of rapid innovation where the most effective approaches have yet to be established, the best solutions originate from the strongest early collaborations going beyond traditional purchasingdriven approaches.” Looking closer at Dow’s portfolio, given their significant influence on EV performance, efficiency and weight, the company has developed gap fillers and adhesives that manage heat dissipation for maximising battery performance and reliability. “OEMs need to find smart efficiencies in this fast-moving market, while maintaining commitment to sustainability throughout the value chain. We’re helping manufacturers implement this holistic thinking.” Dow’s pioneering collaborations in Formula E and NASCAR Dow is testing its technologies with Jaguar TCS Racing in Formula E, something McKeen is very excited about. “We collaborate closely with Jaguar TCS Racing to support their material needs; for example, some of the electronics in their e-drivetrain contain Dow materials that deliver meaningful overall efficiency improvements,” he says. 24
December 2023
Dow has
37,80 employees
Dow operates across
31
countries Dow made sales of
US$57bn in 2022
Collaboration with partners is to effectively utilise technical capabilities as the most powerful tool for expediting mobility innovation. “Our motorsport partnerships with Jaguar TCS Racing in Formula E and Richard Childress Racing in NASCAR accelerate testing of materials and technologies – enhancing vehicle performance, safety and durability in a unique way that cannot be replicated on the open road, or solely in a laboratory.”
They are therefore hugely valuable for easing the transition to next-generation mobility solutions. Over the next 12 months, McKeen and the Dow team will deliver labto-customer innovation in mobility tailwind applications. “Additionally,” he says, “we are introducing expanded tools in R&D to accelerate the development cycle with our customers, thereby accelerating change.”
“OEMs need to find smart efficiencies while maintaining commitment to sustainability throughout the value chain”
PEOPLE MOVES
RECENT SIGNIFICANT MANUFACTURING PEOPLE-MOVES There have been people-moves across TT Electronics, High Value Manufacturing Catapult, Merit, Airbus, Ericsson and Atos
“ I would like to thank all of my colleagues for their adoption of our fundamental obsessions, safety and service excellence and sustainability” PETER FRANCE
CEO, TT ELECTRONICS
26
December 2023
PETER FRANCE JOB FROM: A SCO GROUP, GROUP CEO JOB TO: T T ELECTRONICS, CEO Peter France has taken on the role as CEO of electronics manufacturer TT Electronics, after ASCO was acquired by Endless LLP. France says that it has been a privilege to lead the business for the past five years. ASCO will now run under the ownership of his successor, Mike Pettigrew. “I would like to thank all of my colleagues for their hard work and support over the years and especially for their adoption of our fundamental obsessions, safety and service excellence and sustainability. I would like to say a special thank you to my management team. It would not have been possible without their dedication and hard work. I could not have wished for a better team!” France reports that he is looking forward to the new challenges at TT Electronics, but ASCO will ‘always be close to my heart’.
YVES BERNAERT JOB FROM: A CCENTURE TECHNOLOGY, EXECUTIVE JOB TO: A TOS, CEO Digital transformation leader Atos has announced it has appointed former Accenture Technology executive Yves Bernaert as its new CEO. A leader
with proven expertise in the technology and digital transformation industries, Atos said Bernaert’s first mission will be to successfully complete the next stages of the group’s transformation plan.
CHRISTIAN SCHERER JOB FROM: A IRBUS CHIEF COMMERCIAL OFFICER JOB TO: C OMMERCIAL AIRCRAFT BUSINESS CEO, AIRBUS This appointment will ensure dedicated operational focus for Airbus, allowing the Airbus CEO to focus on the strategic, global and transformational agenda of Airbus. “It is an honour and a thrill to be called upon to lead our Commercial Aircraft business at such a critical time for our industry,” said Scherer.
CHRIS HOUGHTON JOB FROM: S ENIOR VICE PRESIDENT AND HEAD OF MARKET AREA NORTH EAST ASIA, ERICSSON JOB TO: C HIEF OPERATING OFFICER, ERICSSON Chris Houghton, who is currently Senior Vice President, Market Area North East Asia, has worked at Ericsson for over three decades. He has deep institutional knowledge across key markets and operational areas of the
business. In his new role, Houghton will manage cross group initiatives and ongoing cost efficiency programmes.
STEVE SMITH JOB FROM: E STIMATING AND TECHNICAL PROCUREMENT DIRECTOR, MERIT JOB TO: M ANUFACTURING DIRECTOR, MERIT “Embracing innovation and driving the future of construction is not just a vision; it’s our commitment,” said Smith. “As Manufacturing Director at Merit, I am honoured to lead a team dedicated to revolutionising the industry. Together, we will build a brighter, more efficient tomorrow for our customers and the world of construction.”
STEVE BAGSHAW, CBE JOB FROM: C PI, DIRECTOR JOB TO: C HAIR, HIGH VALUE MANUFACTURING CATAPULT Bagshaw was the General Manager and CEO of Fujifilm Diosynth Biotechnologies for 13 years. He was awarded a CBE for services to the manufacturing and biotechnology sector in 2020. “A fundamental role of HVM Catapult is making sure innovative manufacturing businesses of every scale get the help they need to succeed.”
manufacturingdigital.com
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THE MONTH THAT WAS
THE MONTH THAT WAS
HIGHLIGHTS FROM NOVEMBER MALAYSIA’S ESG MANUFACTURING PLAN TO FULFIL GROWING DEMAND Malaysia’s Ministry of Investment, Trade & Industry has set in motion a National Industry ESG structure, the i-ESG Framework. This is designed to support Malaysia’s manufacturing industry as it integrates ESG principles. The i-ESG Framework is geared towards micro, small, and medium enterprises (MSMEs). Its goal is to support transition towards sustainable practices.
READ NOW
This past month at Manufacturing Digital, we heard about sustainable manufacturing, pioneering automation excellence, supply chain efficiency and more
ABB & MARATHON GOLD FORGE AUTOMATION EXCELLENCE ABB has entered into an agreement with Marathon Gold, which will design and commission ABB’s Valentine Gold Project power control system, one of the biggest gold mines in Canada. Through uniting it with ABB Ability™ System 800xA® distributed control system, the integrated automation system will also be based on ABB’s Select I/O and Industrial Ethernet networks. READ NOW
ROLLS-ROYCE LAUNCHES SUPPLY CHAIN PORTAL TO SEEK THE BEST As part of its strategy to maximise the UK’s involvement in its groundbreaking projects, Rolls-Royce SMR has launched a supply chain portal to seek the best UK suppliers to partner with to deliver its fleet of ‘factory-built’ Small Modular Reactor (SMR) power plants. READ NOW
FICTIV’S SUSTAINABILITY IN MANUFACTURING REPORT Custom manufacturer Fictiv has shared the results of a survey, Sustainability in Manufacturing, where it asked industry leaders about sustainable manufacturing, from AI technology to the global supply chain. Fictiv’s data shows that sustainable manufacturing is holding fast and that while challenges persist, manufacturers are determined to succeed. READ NOW
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DIGITAL FACTORIES 32
December 2023
TOP 10
Top digital factories include Siemens, GE, ABB, Bosch, IBM, SAP, Dassault Systèmes, Cisco, Schneider Electric and Rockwell Automation WRITTEN BY: HELEN ADAMS
A
digital factory uses advanced digital technology to make its manufacturing production more efficient. A Digital Factory can also be known as a ‘Smart Factory’ or a ‘Industry 4.0 Factory’ – there are some subtle differences. A Smart Factory is more focused on production optimisation and automation. Digital factories embrace connectivity for easier communication, data analytics to make better informed decisions and IoT sensors to monitor various parts of the factory. Cloud computing is used for data storage and analysis. In addition, energy efficiency and top cybersecurity make digital factories safer and more sustainable.
TOP 10
10 Rockwell Automation Rockwell Automation builds control systems that enable realtime monitoring to help streamline operations and minimise downtime. This digitalisation journey includes working with robots, combining the physical with the virtual and using AI to spot potential failures. Mondeléz International has partnered with Rockwell Automation for years for this purpose. “The scope of our project in North America focuses on our Integrated Digital Factory, which includes assessment and remediation for infrastructure readiness, such as machine performance data and reporting,” explained Mondeléz’s Bob Pegher.
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December 2023
09
Schneider Electric Schneider Electric is on a mission to empower its customers to make the most of energy and resources, to advance sustainability. Schneider Electric and Accenture partnered to develop Schneider Electric Digital Services Factory. “We are driving the digitisation of our businesses and the Digital Factory will significantly speed up our efforts,” said Cyril Perducat, Executive Vice President of IoT & Digital Transformation at Schneider Electric. With new capabilities Schneider Electric will be able to bring new services to market much faster.
TOP 10
08 Cisco
Cisco was founded in 1984 by a team of Stanford University computer scientists, who wanted to help people make powerful connections. Now, Cisco’s networking and connectivity solutions allow digital factories to improve their security. Cisco’s networking solutions support the connectivity needed for secure cloud computing. “At Cisco, we’re delivering the digital factory as a trusted partner for hundreds of manufacturing customers – and more than 50,000 customers across all industries, around the world,” said Liz Centoni, Executive Vice President, Chief Strategy Officer and General Manager, Applications at Cisco.
07 IBM
IBM was founded in 1911 and remains one of the world’s biggest IT companies. The company offers solutions for smart manufacturing that leverage AI, IoT and advanced analytics. Vehicle manufacturer Toyota uses IBM Maximo Health and Predict in its digital factory. “Leveraging shop floor data powered by AI and IoT can come together to reduce downtime by 50%, reduce breakdowns by 70% and reduce overall maintenance costs by 25%,” explains Rafi Ezry, Managing Partner US Industrial Market at IBM Services.
manufacturingdigital.com
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The Journey to Smart Manufacturing starts with a Cloud-enabled Modern ERP
Learn how one of the largest forklift manufacturers accelerated innovation with Infor CloudSuite®. Watch customer story
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TOP 10
05 SAP
06
Dassault Systèmes
SAP is a software development company that offers customers a sustainable supply chain with its manufacturing software. SAP uses digital twin technology so that manufacturers can see a replica of their physical assets. Using IoT, SAP integrates its devices and sensors to enable data collection from machines allowing for top process optimisation. SAP also offers cloud-based services to digital factories, which lets customers use flexible computing resources in tasks, such as advanced analytics.
Dassault Systèmes is known for its sustainable innovations and is dedicated to reaching climate neutrality by 2040. Digital factories will help them achieve this, through the method of Manufacturing Execution Systems (MES), a system that monitors goods from a raw material to a final product. Using Dassault Systèmes’ MES, manufacturers can standardise production processes from one plant to another, enable real-time datacollection, advance quality control and integrate with ERP systems. manufacturingdigital.com
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TOP 10
04 Bosch
The Bosch Group supplies a range of services and technologies, which are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods and Energy and Building Technology. Bosch uses Industry X to advance digital transformation in its robotic solutions and IoT to connect machines, devices and systems, which enables data collection, analysis and communication. In Bosch’s Mobility Solutions, drivers benefit from advanced safety, comfort, convenience provided by Connected Horizon from Bosch, which uses cloud-based services to keep drivers safe.
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December 2023
03 ABB ABB is building a more sustainable manufacturing future, especially in its robotics, electrification and industrial technology production. In September the company announced that it is investing US$280m to build a new ABB Robotics European Campus, in Västerås, Sweden, which will double ABB’s robot production capacity. “In our new R&D centre, we are focusing on the development of new digital and AI-enabled technologies, making robots increasingly accessible while lowering the entry barrier for applications in all industries,” said ABB Robotics president, Marc Segura.
02
TOP 10
GE
Digital solutions innovator GE aims to help their customers make better informed decisions, using GE’s intelligent devices, data analytics and applications. The company utilises Industry X to advance digital transformation and innovation across its manufacturing. At GE, digital twins are a core part of digital transformation. GE Digital’s Chief Technology Officer, Colin Parris, founded and heads the Digital Twin Initiative in GE and is a board member of the Digital Twin Consortium.
“A digital twin, for me, is a living, learning representation of some form of asset or system. ‘Living’ means there is a continual stream of data that allows the model to be aware of the environment. There’s also feedback data,” which is invaluable, he explained. Due to the strong reliance on connectivity, digital factories need their cybersecurity to be top-notch to protect them from any possible threats. GE Research’s cybersecurity team is at the forefront of this, protecting the company, its employees and customers.
GE Digital and Whirlpool: Building Digital Factory WATCH NOW
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01 The Autonomous Factory of the Future by Siemens WATCH NOW
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December 2023
Siemens Siemens is a big name in digital manufacturing, building the software and hardware needed by various industries. The company is focused on building strong supply chains, smarter buildings, clean and green transportation and a more resilient healthcare sector. Siemens actively utilises Industry X to drive digital transformation in many ways and in particular, in the manufacturing sector. Brian Holliday, Managing Director of Digital Industries at Siemens, recently discussed how digital twins are expanding the potential of the metaverse. “It’s been really exciting to see high definition graphics and a really immersive experience, put together with a physics based model. Whilst not at the quality of gaming graphics, the digital twins created lifelike, physics-based models from production lines.” Using an array of modern technologies, Siemens provides advanced digitalisation solutions for manufacturing processes in its digital factories, allowing for improved efficiency and enhanced product quality.
ABB INDIA: WATE POSITIVITY AND T NET ZERO JOURN
ABB India’s sustainable manufacturing journey covers energy efficiency & water conservation. ABB’s Ganesh Kothawade discusses recycling & waste reduction WRITTEN BY: HELEN ADAMS
ER THE NEY
SUSTAINABILITY
G
anesh Kothawade has been working with ABB since 1991, during which time he has held various positions in sales and marketing and general management at different locations within the business. He now leads the Electrification Distribution Solutions Division in India, which employs over 1,500 people. “As the world’s demand for electricity grows, we are electrifying the world in a safe, smart and sustainable way, providing solutions for electrical power distribution in medium voltage applications,” explains Kothawade. “This essentially means we cater to a very wide range of segments spanning traditional ones, like utilities and heavy industries, as well as key growth segments including green hydrogen and e-mobility.” ABB is a pioneer in the field of core switching and protection technologies and also provides grid components, switchgear and complex engineered distribution solutions, combined with digital layering for intelligent control and monitoring. ABB India cuts carbon emissions The ABB India facility in Nashik spans 49,000 square metres. It produces ABB’s medium voltage (MV) switchgear, as well as primary and secondary gas insulated switchgear (GIS) equipment, which is used to provide efficient power solutions across India. The electrical distribution equipment made at Nashik is critical to the continued urbanisation and electrification of the country and the provision of energy systems for sustainable transportation. In 2021, Nashik embarked on ABB’s Mission to Zero programme. Mission to Zero is a global initiative to enhance manufacturingdigital.com
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SUSTAINABILITY
“BY INSTALLING WATER-EFFICIENT FIXTURES WE’VE REDUCED WATER CONSUMPTION BY 30%” GANESH KOTHAWADE
PRESIDENT, ELECTRIFICATION DISTRIBUTION SOLUTIONS DIVISION, ABB INDIA
energy efficiency and enable building decarbonisation and it was set up to create best practice solutions for ABB’s manufacturing and production sites around the world. “So far ABB sites in China, Finland, Germany, Italy, the Netherlands and the United States have all achieved the Mission to Zero standard,” says Kothawade. “Now Nashik has joined the ranks!”
Reducing energy use and carbon emissions is a key part of the Mission to Zero journey. Over the past two years, the Nashik facility has reduced its CO2 emissions by more than 3,000 tonnes a year. This has been achieved through a number of initiatives: • Installation of ABB Ability Energy Manager to monitor energy consumption and identify inefficiencies manufacturingdigital.com
47
• Installation of 1 MWp of rooftop solar panels to provide 35% of the power required to run the factory • Use of LED and demand-based lighting • Installation of insulated wall and roof panels • More efficient air conditioning • Cooling in meeting rooms managed via a building management system. The Nashik site has also achieved water positivity certification, taking ABB India’s commitment to leading the way in sustainable and responsible resource consumption in manufacturing a step further. 48
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Water positivity at ABB Water positivity is the concept of returning more water to freshwater sources, than is withdrawn. It is also focused on maintaining sustainable water stewardship by establishing a framework for water management. The Nashik site has been certified as water positive, with a water positivity index of 1.14 awarded by the GRIHA Council (Green Rating for Integrated Habitat Assessment), India. “To achieve this water positivity rating, we introduced a range of measures at Nashik including a rainwater harvesting system to reduce runoff and recharge
SUSTAINABILITY
the groundwater table,” said Kothawade. “Our stored rainwater can be reused to meet other domestic requirements too. The annual rainwater harvesting potential of our system is 34,486m litres which equates to 14 Olympic swimming pools worth of rainwater annually. “The installation of water-efficient fixtures has reduced water consumption by 30% and a drip-based irrigation system and sewerage treatment plant allow wastewater to be reused for irrigation and other domestic purposes. This ensures there is zero liquid discharge from our factory.”
Ganesh Kothawade TITLE: PRESIDENT ELECTRIFICATION DISTRIBUTION SOLUTIONS DIVISION COMPANY: ABB INDIA INDUSTRY: AUTOMATION MACHINERY MANUFACTURING LOCATION: NASIK, INDIA Since 1991, Ganesh Kothawade has worked at ABB, helding roles in sales, marketing and general management. He now leads the Electrification Distribution Solutions Division in India and is committed to reducing waste volumes and increasing recycling.
To support further water conservation in the future, ABB has established a water metre monitoring and analysis system. “We also invested in water management structures to capture rainwater in streams which can be used by nearby rural villages, for drinking and agriculture.” For manufacturers who want to achieve water positivity certification, Kothawade has some advice. “To achieve water positivity, the first step should be to establish a proper water consumption monitoring and analysis system to account for each drop of water and from which to plan reduction measures,” he says. “The entire approach should be divided into short-term and long-term targets. Short-term activities are measures such as the installation of water aerators, a drip irrigation system for landscaping, usage of sewage treatment plant water for landscaping/domestic purposes, installing an effluent treatment plant so that industrial trade effluent can be reused for processes, waterless urinal systems, targeted reduction measures for high water consuming activities and committing to zero liquid discharge from your facilities.” In the long-term, rainwater harvesting and storage systems can be installed for recharging the groundwater table and reducing dependency on fresh water. “Whatever your water positivity plan, the basic idea is to follow three R’s approach: Reduce, reuse and recycle water,” said Kothawade. ABB believes that water use is arguably the next big sustainability challenge for manufacturers. The industrial sector is forecast to use 24% of global freshwater withdrawals by 2025 and in some developed 50
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2050
By , India is forecast to be the nation most severely affected by water scarcity according to a UN report
600m
Research shows that people face extreme water stress and three quarters of rural households don’t have access to piped, drinking water and must rely on unsafe sources
SUSTAINABILITY
population – face extreme water stress and three quarters of rural households don’t have access to piped, drinking water and must rely on unsafe sources. “While our Nashik facility is located in an area with a good water supply, as a manufacturer striving to be sustainable, we have a duty to lessen our impact on the water resources of the countries we operate in. Responsible resource use – whether that be water, materials or energy – should be the gold standard worldwide, not just a problem to be solved in regions or countries where water stress is a challenge.”
nations the percentage of water use for industrial purposes can be substantially more – it is currently 86% in Germany, for example. “Why is the amount of water we use so important? Because an estimated 2.3bn people live in water stressed countries. Water stress is when demand for water exceeds the available amount. Water stress is intensified in areas where demand increases or where the water supply is affected by changes in quantity or quality.” By 2050, India is forecast to be the nation most severely affected by water scarcity according to a UN report. In 2018, research stated that 600m people – nearly half the
A clear road map for waste reduction and recycling As part of ABB’s corporate social responsibility strategy, the company has partnered with the not-for-profit organisation Vanvasi Kalyan Ashram, to construct water retention structures in water scarce tribal areas of the Nashik district. To date, nine structures have been constructed and handed over to villages. “These constructions are a huge help to farmers as they provide water for agricultural produce, but they also increase and sustain the availability of drinking water for people as well as animals throughout the year,” said Kothawade. “We have installed a roof top mounted solar system for an NGO (Prabodhini Trust) which is working for the holistic development of specially abled children. This installation fulfils their entire requirement of energy needs and has resulted in substantial cost savings for them as well as driving a sustainable and green energy message.” Taking a step further in sustainability, ABB has also engaged its suppliers (primarily manufacturingdigital.com
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Stepping into a low carbon society with energy efficient solutions WATCH NOW
those based in Nashik) with various awareness sessions on sustainability, like CO2 emissions calculations and reduction, and the sharing of best green practices. The company has introduced returnable packaging for raw materials supplied by local suppliers and have undertaken a number of tree plantation drives in our suppliers’ factories and campuses to spread the message of creating a greener environment. “In addition, we have started using electric vehicles for local transportation through our supplier, the Go Green fleet company. In order to work towards achieving our target of using 100% renewable energy, 52
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we have installed roof mounted solar panels in our factory up to the maximum permissible limits.” ABB has collaborated with Amplus Solar company on a long-term basis for this initiative, wherein ABB has not incurred any investment cost and the entire operation and maintenance is handled by the firm for solar energy systems. Over the next 12 months, ABB has a clear plan in place to further drive sustainability across ABB India. “We have two manufacturing sites in Nashik which have both achieved Mission to Zero status, but currently only plant one has water positivity status. We have more
SUSTAINABILITY
“WHATEVER YOUR WATER POSITIVITY PLAN, THE BASIC IDEA IS TO FOLLOW THREE R’S APPROACH: REDUCE, REUSE AND RECYCLE WATER” GANESH KOTHAWADE
PRESIDENT, ELECTRIFICATION DISTRIBUTION SOLUTIONS DIVISION, ABB INDIA
work to do to achieve water positivity status for plant two, and various activities have already been commenced to help us do that. “We have a clear road map for our waste reduction and recycling area, and we are working towards achieving ‘Zero Waste to Landfill’ status. “At the same time, we are piloting ways to reduce and eliminate single use plastics from our products/process and substantial steps have been taken in this direction. To identify new ideas to improve our energy
efficiency, ABB has scheduled energy audits over the coming year. ABB has a clear plan in place to deliver further sustainability initiatives that will support India’s broader decarbonisation goals,” said Kothawade. “Sites like Nashik should serve as a positive blueprint to demonstrate how carbon reductions can be achieved in the manufacturing process and we look forward to welcoming customers to view our site.” manufacturingdigital.com
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CGI REVOLUTIO MANUFACTURIN WITH DATA STRATEGIES WRITTEN BY: HELEN ADAMS PRODUCED BY: KARL GREEN
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ONISING NG
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CGI
CGI’s Coen Huesmann shares insight into how manufacturers can navigate the future of the sector with AI and data-driven excellence
C
oen Huesmann heads up the Manufacturing Centre of Excellence at global IT and Consulting company CGI: focusing on helping CGI’s manufacturing clients to improve manufacturing processes and support them on their digitisation journey. Leading large-scale transformation projects that result in efficient, resilient and sustainable manufacturing. “I lead CGI’s manufacturing team in the Netherlands,” says Huesmann “We help our clients to improve their manufacturing processes. We are in the heart of the factory, across the shop-floor and full supply-chain helping to implement systems that bring about real change.” He adds: “Our clients are at varying points of the transformation journey, but wherever they are we know it is not a ‘one-size’ fits all. We use real data and insight to help develop comprehensive change road-maps unique for our clients. “These road-maps are holistic, in that it is as much about the technology as it is about the people and the organisation. Success needs healthy foundations to bed and mature into. We are also pleased to offer our clients services and support on a 24/7 ‘follow-the-sun’ basis using our global capability centres guided by those close to the client.”
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1976
Year founded
91,500
Number of employees
CA$12.9bn Revenue
CGI
At the start of his career, Huesmann began applying his tech and manufacturing know-how to help build a tapioca starch factory in Indonesia. “After that, I decided to continue my career in consulting and worked for KPMG,” he says. “There, I implemented and selected business intelligence systems, what we now call AI or analytics systems.” Huesmann then went back to operations by working for Phillips in Australia, where he enabled businesses breakthrough process improvements. After that, he became a supply chain manager. However, in terms of achievements, Huesmann’s proudest comes through the growth of the Manufacturing Centre of Excellence at CGI. He says: “I started three years ago, at the start of the pandemic. One big challenge at that moment was that I had to get to know my team from video calls! We’ve built that team to almost 90 people now across the Netherlands, with a connected team in India. We manage to grow the team
“ With client transformation journeys we know it is not one size fits all” COEN HUESMANN
VICE PRESIDENT MANUFACTURING, CGI
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together, despite the circumstances and build a proud and successful team.” This is against a backdrop of changes in social demographics which is deeply affecting the manufacturing industry. Many manufacturers are currently struggling to find and hire the right people. Looking at this trend Huesmann prioritises looking for people with strong manufacturing and IT backgrounds, understanding that advances in technology will support sustainability agendas and ultimately attract the right level of talent. “We’re doing a lot on the cutting edge between production, quality, logistics and maintenance,” he says. “Finding people with the right profiles to help our clients go from reactive maintenance to predictive maintenance to prescriptive maintenance.” The importance of harvesting data In 2021, Huesmann spoke about the importance of harvesting data – that hasn’t changed. He says: “When we talk to clients all over the world, they’re all interested in getting more value from data. With multiple datastreams at their fingertips knowing how and what to use to not only evolve their operations but to develop new revenue streams will set manufacturers apart from each other.” Huesmann suggests that getting its data streams, systems, and management in order is a critical first step to leveraging new technologies, such as AI, with success being equal to the time spent into preparation. He says: “You see that almost every company in the world is now deeply investing in AI. CGI recently announced that we are going to invest US$1bn in AI
COEN HUESMANN TITLE: VICE PRESIDENT MANUFACTURING COMPANY: CGI INDUSTRY: MANUFACTURING LOCATION: UTRECHT, NETHERLANDS Huesmann joined CGI mid 2020 previously working in executive positions with Accenture, Philips and KPMG with clients ranging from Toyota to the Royal Dutch Air Force. Huesmann is an entrepreneurial people manager with extensive international management experience in the areas of Lean, Smart Manufacturing and Supply Chain Management. He leads the Manufacturing Center of Excellence of CGI in the Netherlands with a broad
team of industry and technology experts. The team is dedicated to working with manufacturing companies in optimising their operations building agile supply chains utilising proven CGI approach called Manufacturing Atlas. He and his team are leading the way in consulting manufacturers, both locally and globally – ranging from chemical plants to dairy companies to discrete manufacturers – on how to take the next step on their digital journey.
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Disruption is the new normal for manufacturers. Now what? “Labor shortages, demand and cost volatility, and unpredictable markets. These are just some of the challenges manufacturers face. Meanwhile, they must ensure operations run better, faster, and more sustainably. The question is: how?” Rashesh Mody, Executive Vice President, Business Strategy & Realization at AVEVA
Turn volatility into opportunity To succeed in an uncertain world, you must do more with less—and that starts with data. Now, you must optimize every investment, which means collecting the right data to ensure users can make actionable, real-time decisions. With the right digital manufacturing ecosystem, including SCADA, HMI, and MES, you can unlock new insights and new levels of collaboration—and turn volatility into opportunity. Here are five ways that a digital manufacturing ecosystem can enable resilient transformation. Give users the insights they actually need Excel spreadsheets? No thanks. A modern digital manufacturing ecosystem gives users relevant insights anytime and anywhere so they can troubleshoot and solve problems and predict asset behavior—all before failure occurs. Paint a clear (and big) picture Users need more than just a small slice of information—they need the big picture. From real-time performance data to maps to asset documentation, a digital manufacturing ecosystem gives users the holistic view they need to make decisions that matter.
Operate at the speed of real time Yesterday’s insights are yesterday’s news. As you collect even greater amounts of data, your users need to access and analyze that information in near real-time. A digital manufacturing ecosystem creates a connected view that simplifies data analysis. Close the gap As you struggle to attract new talent, your users must do more with less. By taking a streamlined, data-driven approach, you can facilitate knowledge capture and enable new ways of collaboration with users both inside and outside the organization. Enable agile, responsive operations Unpredictable markets require unprecedented agility. Modern manufacturing solutions aggregate and structure data so it can be used in artificial intelligence and machine learning models, and be visualized alongside other pertinent information, such as financial data.
Learn more about how you can turn volatility into opportunity with AVEVA
Seize your moments
Revolutionising manufacturing with data strategies at CGI WATCH NOW
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CGI
“ Success is reliant on people. Manufacturers need to invest in being both people-driven and data-driven” COEN HUESMANN
VICE PRESIDENT MANUFACTURING, CGI
technology. One of our partners, Aveva, is also investing US$1bn in AI. “Nobody doubts the importance of having the right data to make the right decisions, but success also is reliant on people, manufacturers need to invest in being both people-driven and data-driven. “Without having the right amount of people, with the right sorts of skill sets, success becomes a challenge. So a question to ask is: am I investing in growing the workforce?” Many of CGI’s clients’ factories are up to 40 years old and will still be active for the next 20 years, yet ‘knowledge holders’ are retiring in large numbers. So knowing how to retrieve the knowledge of those people and the knowledge of these legacy systems is also critical. Manufacturers can either build new systems or keep these legacy systems current in the future. “That’s where we do a lot of work with our clients,” says Huesmann. Many of CGI’s clients choose to outsource to CGI knowing that they are in safe hands when it comes to training and skilling-up workforces; retaining and refreshing knowledge while modernising their core manufacturing systems for the future. Another key issue on the road to becoming data-driven is the complexity of data landscapes. Many manufacturers have built their operations over decades and through multiple mergers. This results in multiple data sources all using different data formats and languages. To leverage and harvest their value, they must be together in a way that manufacturers can digest and combine the data. “Creating ‘open’ data systems is another hurdle for future looking manufacturers,” manufacturingdigital.com
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CGI
“The future of the industry increasingly depends on being able to track and trace data, to not only demonstrate sustainability but to create novel offerings” COEN HUESMANN
VICE PRESIDENT MANUFACTURING, CGI
explains Huesmann. “The future of the industry will increasingly depend on being able to track and trace data to not only demonstrate sustainability but to share and combine in order to create novel offerings. This precision can be acquired through thorough data management and know-how.” He adds: “There’s often much more data than people can handle, but the specific data that you want is often not available from legacy systems. Disclosing that kind of information with sensors and with other equipment, that’s one big step.” The second step is that once an organisation has all that data, it still needs to provide the right context to that data. “This is when we use the systems of our partners, like Aveva and OSIsoft, where we identify raw data,” says Huesmann. “We bring all these things together and then you know what you’re looking at.” By providing the right context to the data, manufacturers can start interpreting it, adding meaning to it. It is this meaning and extrapolation that creative solutions and innovations for the market can be found. manufacturingdigital.com
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CGI
CGI’s manufacturing and data strategy Becoming a truly data-driven manufacturing organisation requires implementing a digital continuum from design and distribution through to sales and customer feedback. It requires becoming an intelligently connected organisation where business units share and receive information at the right time. CGI’s data driven manufacturing approach has four core pillars: • Data strategy • Data management • Enterprise intelligence • Organisational readiness “Success starts with getting clear on what the customer’s vision is for the data,” says Huesmann. CGI focuses on the problems that customers are trying to solve, for example, why they want to get into data-driven manufacturing, what trend, challenge or opportunity they are trying to reach through incorporating data-driven processes and operations. Huesmann says: “Of course, the biggest trend at the moment is sustainability. All of CGI’s manufacturing clients are focusing on this, and want to know how they can reduce the amount of energy used, improve the yield on raw material, produce less waste and reuse old materials. All that requires data.” The second pillar is data management – how and where data is collected. Data comes from different data sources with different historical owners, including engineering data from PLM systems, transaction data from ERP systems, manufacturing data from MES systems and external data sources. 66
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The data landscape can be very complex, Huesmann says, who adds it also involves multiple users and agents within the chain. “Understanding who owns the data and who has access is key to providing security and clarity.” The third pillar is enterprise intelligence. “Sense, connect, collect, context, analyse, act,” Explains Huesmann, “Once manufacturers have developed a healthy data foundation through strategy, governance and management they are now in a place to harvest.
“ Becoming a truly data-driven manufacturing organisation requires implementing a digital continuum from design and distribution through to sales and customer feedback” COEN HUESMANN
VICE PRESIDENT MANUFACTURING, CGI manufacturingdigital.com
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CGI
“Advanced analytics and learning algorithms play a big role in this, they provide the intelligence. If a customer wants to start using these kinds of systems and these very advanced algorithms, they need to be ready for that as an organisation as well. “ He adds: “That’s the fourth – and often underestimated – step,” says Huesmann. “We tend to focus just on the systems or the techniques, but equally important is building an organisation that’s capable of handling the data and making the right business decisions.”
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Part of this, he says, is having “important conversations” with clients, such as how they align and structure themselves, whether they should have a chief data officer, who takes the lead. Huesmann also highlights a number of CGI’s key partners, including Microsoft, Google and AWS – all platform partners in the cloud. “We also work with many industry partners,” he says. “suppliers of engineering systems, data historians, and MES systems. Together we automate processes and
retrieve rich data streams from the factories and shop floor itself. “When we have continuous access to the right data, we are able to improve using AI and machine learning. For example, we are working with partners like SAS with whom we can continuously determine and create the right algorithms to optimise the manufacturing environments for our clients. Working with these various partners as an ecosystem brings real value to our clients enabling them to make increasingly better decisions.”
He says a partner such as Aveva supports CGI’s engineering and production portfolio, which ranges from designing factories to automating factories and getting data out of factories, as well as building insights into what is happening in the factories. “Systems such as Seeq and TrendMiner provide insights from production data streams,” says Huesmann. “If you want to create algorithms that offer real-world benefit, then having such an ecosystem is vital.” He adds: “You have to know how to work with a lot of different players. Meeting the up-coming sustainability agendas, offering real-world innovation to clients. This can’t be done in silo. Our partners, and our clients can’t do it solo either. Success in the future requires us all to work together.” For Huesmann, integrating all of these systems, as well as company USPs, is where its strength lies, and that this is something CGI will carry with it over the next year. “Our plans for the coming year will focus on extending and deepening our core partnerships,” says Huesmann. CGI is also investing in AI, exploring beneficial use cases and scaling up the use of AI in combination with the right systems and sensors close to the shop floor. “We are putting a lot of effort also on the maintenance side, to become predictive and ultimately supporting our clients in becoming prescriptive,” says Huesmann. Of course for all these objectives, data plays a critical role and Huesmann is proud of CGI’s strength in this area and the results they are bringing to their clients.
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DIGITAL MANUFACTURING
STRATASYS’ 3D PRINTING JOU
and the impact on he
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D URNEY
ealthcare
Erez Ben-Zvi, VP Medical at Stratasys, discusses the future of 3D printing and how medical professionals are using this technology in various sectors
S
WRITTEN BY: HELEN ADAMS tratasys has pioneered 3D printing for more than three decades, from its headquarters in Rehovot, Israel. It is a fast and efficient technology which, when combined with, for example, automation and robotics, can transform manufacturing production. Erez Ben-Zvi is the Vice President for Medical at Stratasys. “My key responsibilities include overseeing and managing all of the activities within the medical business unit,” he says. “This includes the formulation and execution of our strategic initiatives, as well as the careful monitoring of our profit and loss statement.” Ben-Zvi has always had a passion for the medical field, helping others and doing something with an impact on others’ lives. “My journey started in the third year of my studies, when I joined a startup company that developed image processing software for real-time analysis and navigation of cardiovascular interventional procedures to lead the quality management and regulatory affairs field.” The role and the nature of a startup company exposed Ben-Zvi to the fundamental pillars of the medical device environment, product development life manufacturingdigital.com
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Smart Factory. Smart Defense. Digital Security for Manufacturing.
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DIGITAL MANUFACTURING
Using Stratasys transparent VeroClear material enables surgeons to see inside the kidney and estimate the specific location and depth at which the tumor resides
“ A multi-colour, multi-material 3D print of a patient’s kidney can be produced to scale” EREZ BEN-ZVI VP MEDICAL, STRATASYS
cycle process and interaction with regulatory bodies and key industry leaders. “Being part of the development and introduction to the market of life-saving products that assist surgeons in performing better and influence the way patient care is given worldwide motivated me and has driven my ‘Why?’ ever since.” In the following years, Ben-Zvi specialised in product management from inception to commercialisation and worked in senior roles, including as Head of Global Market Development for 3D printing proof of concept solutions, designing the go-tomarket strategy and leading the product sales and growth. manufacturingdigital.com
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DIGITAL MANUFACTURING
3D printing for surgical planning and patient education The healthcare sector is a field in which innovation and new technologies have a direct impact on improving processes, operation results and saving lives. Ben-Zvi sees that there are many ways in which 3D printing is being used in this space, notably for: • The production of highly-accurate patient-specific anatomic models and surgical guides • For preoperative surgical planning • Diagnostic use • Accurate guide and placement of tools. “A multi-colour, multi-material 3D print of a patient’s kidney can be produced to scale, showing the exact placement of a tumour and allowing for the design of anatomy-matched surgical guides,” said Ben-Zvi. “This allows surgeons a better view and planning prior to the operation followed by precise and safe guidance of surgery tools such as drillers and saws during the surgery. “These help surgeons reduce potential risks and complications, save procedure time and help perform precise and successful kidney-sparing surgery, improving patient outcomes.” Models can also be made for the purposes of patient education by bridging communication between doctors and their patients and even between the medical staff itself. “Doctors often face difficulties in explaining to patients their clinical condition and the reason for their decision to operate,” he says. “Having a tangible replica of a patient’s exact anatomy may assist doctors in bridging the clinical and anatomy knowledge gap of the patients 74
December 2023
“ 3D printing companies are increasingly focusing on education and market awareness” EREZ BEN-ZVI VP MEDICAL, STRATASYS
and their families, reducing This can minimise the anxiety and confusion.” use of cadavers, with For the medical staff, these replacements at a fraction of Stratasys has patient anatomy replicas may the cost of traditional led 3D printing assist with imaging interpretation manufacturing methods. innovation for and having the entire medical Additionally, medical device team speak the same language. manufacturers can use these Another use of models is for realistic models to validate clinical training. device performance and “We have developed materials which are accelerate product development. able to accurately mimic human tissue and However, developments in bone, and our PolyJet-based multi-material, materials and machines have enabled multi-colour 3D printers are capable of healthcare applications to go far beyond creating these in one piece,” said Ben-Zvi. creating models.
35 years
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“On the materials side, we have developed biocompatible and sterilisable materials, which open up a new range of applications.” Stratasys has forged partnerships with relevant companies, whose technology proposition provides the right fit for the company to continue to meet its customers’ needs. “One recent example that underscores this, is our partnership with CollPlant Biotechnologies. This pioneering regenerative and aesthetics medicine company develops innovative technologies and products based on its plant-based collagen for tissue regeneration and organ manufacturing,” said Ben-Zvi. Through this partnership, Stratasys uses its P3 printing platform to support 76
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the development of a bio-fabricated breast implant solution, using Collplant’s plant-based collagen. “This started with a regenerative breast implants programme, however we believe that there will be other exciting developments further down the line.” Stratasys’ vision for the future of 3D printing across industries Despite the longstanding presence of 3D printing in healthcare, there’s a knowledge gap among many practitioners, complicating funding justification as well as the crossindustry challenge of shifting to production using 3D printing. “To address this, 3D printing companies like Stratasys are increasingly focusing
DIGITAL MANUFACTURING
“ 3D printed organs help surgeons reduce potential risks and complications and improve patient outcomes” EREZ BEN-ZVI VP MEDICAL, STRATASYS
on education and market awareness alongside the improvement of printing platforms and materials to address new applications while meeting strict medical regulatory standards. The education effort is vital not only for securing funding and industry growth, but also for training the surgeons of tomorrow on everyday application use.” Stratasys plans to continue to ensure greater sophistication in the 3D printing technologies themselves. However, much like any industry, much of the progress will be down to ongoing advances in materials. “This is essential to open up new applications, and through our recent acquisition of Covestro’s materials business, we’re now in an even better place to deliver
Erez Ben-Zvi TITLE: VP MEDICAL COMPANY: STRATASYS INDUSTRY: INDUSTRIAL MACHINERY MANUFACTURING LOCATION: TEL AVIV DISTRICT, ISRAEL Erez Ben-Zvi is responsible for managing all activities within the medical business unit at Stratasys, from monitoring of profit and loss to strategic initiatives. Ben-Zvi has a degree in industrial engineering and an MBA in marketing, allowing him to blend analytical thinking with marketing expertise to support Stratasys’ medical endeavours.
exciting new materials for the medical market, alongside the other industries we work in.” Stratasys’ Research and Development teams work closely with medical professionals to continue to gain new ground on developing materials that exactly fit their requirements. 78
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“The future of 3D printing is promising, not just for the medical industry, but far beyond this too. Not only does it allow for decentralisation of production to overcome supply chain disruptions and optimise time-to-market, it also enables the production of parts in batch quantities as low as one.”
DIGITAL MANUFACTURING
Stratasys FDM 3D Printing WATCH NOW
Recent technological advancements, including those around Selective Absorption Fusion Technology, have made it costeffective to 3D print parts in much larger quantities than previously. This now means that manufacturers have the capability to 3D print tens of thousands of end-use parts with the level of control,
accuracy, consistency expected from injection moulding. “This, together with the technology’s agility and inherent time and cost-saving attributes will continue to make it the technology of choice for many processes throughout various industries.” Regarding Stratasys, its focuses will centre on continuing to advance the materials it offers, bolstering software capabilities and delivering comprehensive solutions to the various industries it caters to. “While we persist in innovating 3D printing technology, our commitment to enhancing software and materials is equally vital, especially when it comes to enabling seamless digital workflows for critical applications in healthcare, automotive, aerospace, industrial manufacturing and beyond.” manufacturingdigital.com
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LEADING DIGIT TRANSFORMAT IN FINTECH WRITTEN BY: LOUIS THOMPSETT PRODUCED BY: JACK MITCHELL
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FUJITSU
TAL TION
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FUJITSU
Fujitsu’s Krista Griggs discusses how the IT tech giant is driving digital innovation in the banking, financial services and insurance sectors
K
rista Griggs is the Head of Banking, Financial Services and Insurance Sector for Fujitsu UK. As her title implies, Griggs’ role comes with big responsibilities; she is charged with leading revenue, profit and the growth of the sector. Managing executive customer relationships, Griggs sets the vision and strategy for her department, leading a team of industry specialists and account executives and orchestrating from the wider organisation to bring the best of Fujitsu to its customers. An influential leader in the makeup of Fujitsu’s UK division, it’s no wonder Griggs made FinTech Magazine’s Top 100 Women of 2022. “Phenomenally proud and honoured to be featured,” Griggs takes inspiration from the women represented working to disrupt “what is still a male-dominated industry.” As a pioneering woman in the predominantly male fintech industry, how did Krista carve out her own path to leadership? Krista Griggs: The making of Admitting she never had a clear ambition to take up a particular role, the position she finds herself at now ‘is well beyond’ a point in her career she imagined after graduating as a software developer in her native Netherlands. 82
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“ Fujitsu has the expertise in all those deep pockets to help with the complex integration of fintech systems at banks and other financial organisations” KRISTA GRIGGS
HEAD OF BANKING, FINANCIAL SERVICES & INSURANCE, FUJITSU UK
Krista Griggs of Fujitsu UK
FUJITSU
“By constantly striving for more and being entrepreneurial, we will achieve further growth and success in the future”
Not that she back into financial didn’t have an idea services because it of what she wanted, is a hugely dynamic it’s more that roles domain, where rapid in the technology change is the norm.” space have grown Fujitsu was more and evolved so of an infrastructuremuch over the years managed services – the professional company when capabilities she has Griggs joined, with a now exceed what mission to become a her formative career digital transformation could ever teach her. company – KRISTA GRIGGS “I started out in something Griggs HEAD OF BANKING, FINANCIAL financial services; I implemented the SERVICES & INSURANCE, studied banking and strategy for in the FUJITSU UK finance,” says Griggs. “So it’s finance division. not a surprise I’ve come back to that.” It was the success of this strategy that saw Griggs has returned to her roots after Griggs become head of the sector just two previously working in identity management, years after joining Fujitsu. “I’m really proud which saw her take up roles in government of what I’ve achieved there,” adds Griggs. and defence sectors. “When I joined Fujitsu we were not But working in a vast array of industries progressing in the finance sector. We are now and sectors has only served to sharpen her growing rapidly and doing really well. We’ve skills today. “Working across different sectors got a great team now that is connecting with has given me a real understanding of what our customers and building partnerships – impacts those business domains, what helping clients to navigate industry change challenges there are and how technology and deliver better outcomes for them.” can help to make that better,” Griggs says. It is this success that has seen Griggs fall “From software developer to enterprise back in love with the industry she started out architect, I’ve always been leading on how in. “I love being able to have a real ambitious you design that change. How does digital vision for the future – to try and break the transformation actually work and what’s the boundaries of what can be done. That is impact it can have on user journeys across where the industry is really exciting and the ecosystem?” Fujitsu is firmly behind that,” she reflects. These skills enabled Griggs to make an “Change is always challenging, though. immediate impact when she joined Fujitsu It has been quite a big culture shift for Fujitsu UK five years ago, becoming Chief Architect and our customers, particularly larger banks. for its Financial Services sector. There can be real inertia and complications in Frustrated with the constraints working terms of getting things done when it comes in defence entailed, Griggs explains: “I came to fintech innovation. 84
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KRISTA GRIGGS TITLE: HEAD OF BANKING, FINANCIAL SERVICES & INSURANCE COMPANY: FUJITSU UK
“So keeping pace with the rate of innovation can be a challenge. In many ways, my job isn’t necessarily delivering that change, but rather moving blockers out of the way.” Fujitsu: A tech giant ready to run Constantly striving to overcome these challenges, Griggs has helped awaken the sleeping giant of Fujitsu’s Financial Services division and get it to run. But, just as Griggs touches on, Fujitsu is far more than financial technology alone. Today, Fujitsu’s reach extends to five core technology areas: computing, network, AI, data & security and converging technologies.
Krista Griggs is Head of Banking, Financial Services and Insurance at Fujitsu UK. With over 20 years’ of experience in designing and implementing digital transformations across various business domains, Krista is changing the way Fujitsu helps its customers transform their business. She’s built a strong team of consultants who bring deep business and technical expertise. With their support, Krista is constantly looking for innovative ways to help Fujitsu’s customers succeed and grow. In recognition of her ongoing commitment to financial services and technology, she was a finalist for Role Model of the Year in the Women in Tech Excellence Awards 2022, Top 100 Women in FinTech 2022 and Transformation Leader of the Year in the Women in Tech Excellence Awards 2021.
Griggs expands: “Our computing division focuses on quantum and high-performance computing. Today, we have one of the fastest supercomputers in the world with the most intricate networks, so we do a lot of work around 6G and look at what that could bring to society. AI is a big part of that too, as is data & security which is a fundamental necessity both in financial services and in our public sector space. Converging technologies is where all of this comes together to deliver new capabilities.” These core pillars of technological innovation run alongside the company’s 88
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ambition to make the world more sustainable by building trust in society through innovation. Admitting this is a lofty goal, Griggs explains that “fundamentally, this goal comes down to the fact that we (Fujitsu) embed sustainability into everything we do.” Fujitsu: Building an entrepreneurial culture The company is in the midst of a transition from an infrastructure-managed services company to a digital transformation company. This transition hasn’t just required a change of strategy, but a change in culture too.
FUJITSU
“Keeping pace with the rate of innovation can be a challenge… my job isn’t necessarily delivering that change, but rather moving blockers out of the way” KRISTA GRIGGS
HEAD OF BANKING, FINANCIAL SERVICES & INSURANCE, FUJITSU UK
Today, the company is working towards building an entrepreneurial culture to fuel its shift to a digital transformation proposition. Griggs says: “That’s very much a change we are continuing to go through, focusing on the verticals we serve rather than just on our technology capabilities. “As an infrastructure-managed service company, culture was built around risk and was focused on the public sector. Now we are pivoting to achieve strategic growth in the private sector, which means we need to be much more entrepreneurial. We have to understand the business imperatives that
our customers are dealing with. Now it’s very much about co-creation, working with our customers in lockstep to create some of those innovative solutions.” This culture shift is perhaps most pertinent in Grigg’s division – innovation in financial services. This is because “financial services is often the early adopter of new technologies and disruptive innovations. The pace of change is really difficult to navigate for financial services providers,” notes Griggs. “We have to be at the forefront of entrepreneurialism and we are making manufacturingdigital.com
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FUJITSU
progress, helping customers solve some of the biggest challenges they face. Overcoming those challenges is paying off for our customers and it’s paying off for our business.” Fujitsu: Leveraging data, AI & machine learning the right way Building an entrepreneurial culture is also vital in driving the development of new financial products for the financial services sector. Innovation is ripe – and the ability
to implement cloud systems and leverage data pools through AI & machine learning is at the forefront of growth plans for many financial players. Griggs says: “Ever since the pandemic, we’ve seen rapid acceleration in the adoption of digital services across industries, particularly financial services and insurance. “There’s cloud services, third-party SaaS services and open data sources, which in financial services are really big drivers for change. Open finance too has come to the manufacturingdigital.com
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“ At Fujitsu, we embed sustainability into everything we do” KRISTA GRIGGS
HEAD OF BANKING, FINANCIAL SERVICES & INSURANCE, FUJITSU UK
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fore and all these new technologies are exacerbated by a diverse set of infrastructure in use. “People connect from home, the office, they are on mobile devices – they can be on the other side of the world – and you still have to maintain those services and manage things correctly.” Of course, with new technologies comes an increase in the rate of innovation, something Griggs feels complicates service continuity management. She adds: “Customers expect a personalised, safe and
convenient service. The last thing a company wants is to be in the newspapers about a data leak which can damage its reputation. Furthermore, transparency is demanded by the regulators especially around sustainability commitments but also around data privacy. “From the comprehensive datasets you’ve collated, it’s essential to distill actionable insights. So, what’s the next step you need to take? What do your customers need? What do your colleagues need? What do the regulators need?
It is important to leverage abundant ecosystems to gain insights into making better and faster decisions to deliver desired outcomes.” One area Griggs feels financial services providers and banks must take caution is in their application of Generative AI, to meet all the above requirements. While its potential is evident, “a lot of banks have clamped down on it because it’s really difficult to maintain trust in the data if you don’t know where or how it’s being used.” manufacturingdigital.com
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For Griggs, banks need to put the right controls in place before taking steps toward AI adoption or risk losing client trust. This is even truer for data because if data quality coming into the fabric of operations is poor, utilising this data with AI & machine learning is bound to be ineffective. “The key is to embed the right data fabric,” says Griggs. “Make sure that the data is curated in the right way so that you can trust it. “It is so important to any bank or financial institution so that they can generate those insights to make decisions quickly, allowing business leaders to have confidence in the insights when they prioritise where they spend their resources.” Fujitsu: Mitigating fraud, promoting decarbonisation While open data, or third-party data sharing, is reaping many benefits for banks and associated partners in an ecosystem – it has also led to a rise in data breaches and consequently, fraud. This is something Griggs calls “a real concern for the industry and for governments.” She adds: “Cyber criminals have access to new technology as well, and we are seeing an increase in fraud and cybercrime in the industry.” “The key is to make sure that we keep up with that pace of change, that we embrace that technology in a responsible way so that we can counteract those malicious actors. “Social reach is important here. Having reach through open data allows banks and financial services to see what’s happening with vulnerable customers. It has multiple other benefits, including 96
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helping organisations like banks enable the decarbonisation of finance too. “That’s where we’re seeing partnerships in other industries deliver value to shift financial services from the role of the financier alone, to deliver better outcomes and boost sustainability, like we do with Landmark.” Fujitsu: Partnerships taking fintech to the next generation The partnerships Fujitsu strikes also help it boost the offerings it provides to its clients. Just as the industry at large is doing, Fujitsu is embracing the impact and benefits of fintechs by integrating these platforms and services into its broader ecosystem.
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FUJITSU: LEVERAGING TECH TO IMPROVE WORKPLACE WELLBEING
Griggs says: “We don’t just need collaboration with fintechs, but we also need big tech and other tech vendors. For example, we work with cyber companies like Thales and CrowdStrike to support data management companies. “To manage data and workloads efficiently and effectively, we work with Delphix, Suse and Nuix. Even for AI ethics, we work with a company called 2021.AI, which looks at AI governance and how you make sure that you embed that in the way that you work. “We also work with workplace technology partners like Riverbed, which understands how the services we provide our colleagues can be used to best effect. With Riverbed, we can identify where things aren’t working
The returns on implementing technology to maximum effect don’t just extend to operations and boosting customer experiences, they can have a significant impact on employee wellbeing. This is all the more important in financial services, with research conducted by Solidatus revealing that 71% of global data leaders in financial services are on the brink of quitting. It doesn’t need to be this way, though and Fujitsu’s workforce is starting to see the benefits of using tech to improve workplace wellbeing. As put by Griggs: “We are seeing some of these AI-driven technologies taking a lot of the mundane, repeatable tasks out of workers’ intrays. “These technologies provide the right information at the right time and at Fujitsu, help our team to deliver the right personalised service to our customers. This in turn helps our customers to provide a better service to their consumers. “Of course, privacy should be taken seriously here and it’s important to find the right balance between consumer data and respecting privacy laws.”
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FUJITSU: SUSTAINABILITY FRONT OF MIND Amid Fujitsu’s cultural shift, sustainability has become a key pillar in Fujitsu’s financial services sector when looking at providing the best new fintech innovations to its clients. “We are now seeing a new pillar when weighing our business growth and that is around sustainability and the continued drive to net zero. “Managing our carbon footprint is one thing, but our ESG strategies and considerations are much broader than that. Today, our entire product portfolio is aligned with the United Nations Sustainable Development Goals.” “So we ensure the technology that we’re providing to our customers is contributing to delivering a better society and is achieving some of those Sustainable Development Goals. “We hold our partners to quite high standards around that as well, and it’s very much part of our onboarding process. If we are representing certain ethics and standards, we must demand the same from them, and this has helped us to develop a great ecosystem.”
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and correct them even before they go wrong sometimes. “Whilst banks have real technology capability in these areas, as a technology company with multiple partners, Fujitsu has the expertise in all those deep pockets to help with the complex integration of fintech systems at banks and other financial organisations.” The future of Fujitsu Armed with a history of innovation and technological insight, a true consultative perspective and strategic partners, Fujitsu is truly primed to complete its shift from an
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infrastructure-managed services company to a digital transformation company. This shift is already in full swing, and it’s reshaping the company with unstoppable momentum. Griggs concludes: “I’m very much behind and passionate about the changes that we are making. We need to continue what we are doing to move faster at bringing in the right people and technology to grow the partnerships we have with our customers. “That represents our path to growth and certainty for me, I’m very happy to grow as my sector grows.
“We must continue to ask ourselves the pertinent questions: How can we be even more data-driven? How can we integrate our systems more? How can we use intelligent solutions in the way that we bring products and services to our market? How can we align the full global force of our business to help our customers achieve their outcomes? “By constantly striving for more and being entrepreneurial, we will achieve further growth and success in the future. That is our path forward.”
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FACTORY OF THE FUTURE
A
VEVA is a global leader in industrial software and is trusted by over 90% of the world’s leading industrial enterprises, from food and manufacturing to power, energy, infrastructure and marine. The company helps businesses to gather their data into a living digital twin so that they
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can drive greater efficiency, performance and improve operational processes. By breaking down silos of information, organisations can make more accurate decisions based on AI-enriched insights. Rob McGreevy is the Chief Product Officer at AVEVA, where he leads corporate strategy, product management and business unit
AVEVA’S
INNOVATION IN ACTION, FROM PATENTS TO THE CLOUD AVEVA is building a sustainable future, says Chief Product Officer Rob McGreevy, who offers insight on why manufacturers are turning to the cloud WRITTEN BY: HELEN ADAMS
teams, to drive innovative software solutions across the business. He has 25 years of experience working in the industrial software business, with a focus on manufacturing and infrastructure. “I lead on all things innovation and R&D, including developing AVEVA’s Industrial Metaverse proposition and
digital twin technology,” says McGreevy. “Our mission is to empower our customers in this way to drive responsible use of the world’s resources.” AVEVA’s Cloud-Enabled IIaaS aids agility, resilience and sustainability Industrial Intelligence-as-a-Service (IIaaS) manufacturingdigital.com
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FACTORY OF THE FUTURE
Rob McGreevy TITLE: CHIEF PRODUCT OFFICER COMPANY: AVEVA INDUSTRY: SOFTWARE DEVELOPMENT LOCATION: ILLINOIS, USA McGreevy leads corporate strategy, product management and business unit teams, as they drive innovative software solutions across AVENA. He has 25 years of experience working in the industrial software business, with a focus on manufacturing and infrastructure.
is at the heart of AVEVA’s AI approach. “AVEVA uses AI to boost agility, which in the industrial sector is invaluable,” says McGreevy. “Our industrial software solutions are AI-infused, leveraging many types of AI to achieve best-in-class predictive analytics, root-cause analysis, prescriptive actions, forecasting, automated scheduling, improved engineering designs and optimised operations.” This gives businesses the agility to respond to changing conditions in real time, improve efficiency and energy utilisation, as well as reduce GHG (greenhouse gas) emissions. “For example, Ontario Power Generation is one of the largest clean power producers in North America, including green energy manufacturingdigital.com
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“ Cloud-enabled tech enables remote and cross-site teams to securely share real-time data and analytics on a single digital platform” ROB MCGREEVY
CHIEF PRODUCT OFFICER, AVEVA
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from hydroelectric, solar and wind. During the first 18 months of using AVEVA’s AI system, they saved over US$4m, along with significant efficiency gains across 26 hydroelectric units at Niagara Falls.” The world’s largest player in renewables, ENEL, was able to optimise performance across 20GW and 1,275 assets of power generation using AVEVA’s AI-based industrial software solutions. With all this sophistication, issues can be identified and corrected quickly, well before they have a major impact on operations. This results in less downtime, better product quality, reduced risk and increased overall efficiency and profitability.
FACTORY OF THE FUTURE
“This enhances workforce productivity and improves safety, reliability, quality and security. The cloud-enabled technology even enables remote and cross-site teams to securely share real-time data and analytics together, in context, on a single digital platform. Through efficiency gains and reduced waste, AI is also creating an overall greener environment with enhanced sustainability.” AVEVA’s culture of innovation and adaptation AVEVA creates multiple patents each year. McGreevy says the company’s culture of innovation is behind its innovation drive.
“All teams are encouraged to challenge the ‘normal’ approach with new ideas, which can deliver improvements and challenge the status quo. We build time into our development processes to specifically allow for ideation, to research technologies inline and sometimes adjunct, to our work and we host many hackathons across our teams to invite innovation.” Since this outlook is cultural, McGreevy sees that this tends to drive itself and it makes for a stimulating and more enjoyable environment for the teams. “We have a keen eye for novel ideas and a healthy programme for acquiring new patents,” he says. manufacturingdigital.com
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FACTORY OF THE FUTURE
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However, COVID-19 interrupted AVEVA’s culture of innovation. Although it impacted the manufacturing supply chain, the team learned some lessons. “COVID-19 heavily impacted business. Just-in-time shipping became unstable due to closed ports and a shortage of delivery personnel,” said McGreevy. “Sudden shifts in consumers’ daily lives and priorities caused demand spikes, or erased demand altogether. The pandemic also caused workforce disruptions and the attrition of seasoned operators. With markets remaining volatile, with prices, demand and supply in flux, the industry adapted with a corresponding wave of digitisation across the business world.” 106
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The pandemic forced the industry to adopt and evolve at speed and AVEVA was not left behind. “The disruption also opened the door to the opportunities of remote access (through secure cloud platforms), the accelerated deployment of digital twins, Industrial Internet of Things (IIoT) and augmented reality (AR),” said McGreevy. “All these innovations sit at the heart of AVEVA’s business strategy.” AVEVA’s work during the pandemic with the pharmaceutical industry was instructive.
“ Our customers benefit from precise and swift insights derived from vast data sources” ROB MCGREEVY
CHIEF PRODUCT OFFICER, AVEVA
“We realised that as travel was not an option, one of the world’s largest producers of vaccines, Pfizer needed full oversight of the processes for all their manufacturing sites.”
Using its global historian AVEVA PI system, the company was able to create and implement a data strategy including accelerating production, improving reliability and optimising distribution of lifemanufacturingdigital.com
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FACTORY OF THE FUTURE
“ AVEVA uses AI to boost agility, which in the industrial sector is invaluable” ROB MCGREEVY
CHIEF PRODUCT OFFICER, AVEVA
saving vaccines. Worldwide scientists from different locations would look at the same data in the same format allowing for wider collaboration between sites to maximise the performance. The manufacturing landscape is facing significant challenges; recessionary headwinds, net zero ambitions, fluctuating energy prices, supply chain disruptions, volatile prices and local talent shortages are just the beginning. To address these challenges, manufacturing businesses are turning to the cloud – and cloud-enabled tools, such as IIaaS. “IIaaS enables remote and cross-site teams to see and securely share real-time data and analytics with the right colleagues anywhere around the world,” said McGreevy. Tangible results accrue in the form of businesses’ agility and resilience from maximised IT resources, increased operational efficiency, expanded workforce connectivity and most importantly, sustainability gains. 108
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“Companies benefit from greater scalability and flexibility while improving operational efficiency and cutting unnecessary costs,” said McGreevy. “The cloud’s game-changing quality is how it supports economies of scale, which in turn, improves sustainability. The technology will drive significant transformation in every industry, sector, and domain over the next five years.” The past 12 months for AVEVA included the integration of OSIsoft and a merger with Schneider Electric.
Looking to the future, AVEVA’s customers can now benefit from precise and swift insights derived from vast data sources – from Cloud software to hardware. “These valuable insights can contribute to enhancing operational efficiency and fostering sustainable and efficient operational practices. “This collaboration is bringing additional advantages for the next year and beyond, such
AVEVA is a global leader in industrial software and is trusted by over
90%
of the world’s leading industrial enterprises.
as enhanced quality and traceability across supply chains for our customers.” According to McGreevy, the manufacturing and energy sectors stand to gain significant benefits. “By leveraging cloud technologies, these sectors can achieve better demand matching, optimise production processes, and achieve substantial reductions in energy, water, and raw material consumption.” manufacturingdigital.com
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DANFOSS DRIVES
DANFOSS DRIVES:
THE JOURNEY TO NET ZERO AND ENERGY EFFICIENCY WRITTEN BY: HELEN ADAMS PRODUCED BY: BILLY EVANS
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DANFOSS DRIVES
Danfoss Drives’ Chief Technology Officer Janne Kuivalainen explores the company’s net zero goals, energy efficiency and decarbonising industries
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D
anfoss Drives is a member of Danfoss Group, a Danish family-owned company, with 42,000 employees, sales in more than 100 countries and factories in more than 20. Danfoss Group is a powerhouse in energy efficiency and electrification, with sustainability at the very centre of the company. “We are present all around the globe, but we are well-known to few,” explains Chief Technology Officer, Janne Kuivalainen. “Our ambition is to become our customer’s
preferred choice partner in decarbonisation and we want to create long-term value for our stakeholders, customers, employees, shareholders and partners as the global leader in energy efficiency.” Kuivalainen began working in the hydroelectric power plant business with ABB, where he learned about the merits of dynamic optimisation of energy production and that high reliability and availability are key drivers for success. “Energy production optimisation started to raise its head in the 1990s, specifically for
those companies that owned both power plants and factories consuming the electric energy. They started to look at the dynamic optimisation of electricity production and consumption. This is a reality today with distributed energy production.” Kuivalainen also explored the early days of the industrial ethernet, before joining Vacon Plc in 2005, which he found to be an exciting journey, with the growth of versatile and dedicated solutions. Kuivalainen was the Global Head of Research and Development, when Vacon was acquired by Danfoss. manufacturingdigital.com
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JANNE KUIVALAINEN TITLE: CTO, HEAD OF TECHNOLOGY COMPANY: DANFOSS LOCATION: FINLAND Janne Kuivalainen is CTO of Danfoss Drives business, a global leader in AC/DC and DC/DC power conversion, as well as variable speed control for electric motors. He is a strong advocate of search solutions by offering dynamic and impressive products as innovation platforms for customers. Before his current position, he served as Head of Product Management & Development. Earlier in his career, he has headed technology with ABB Marine & Ports and R&D with Vacon Plc next to being in power generation sales with ABB. He is passionate about learning, lean, equality and sustainability.
Now, the biggest challenge in Kuivalainen’s role is ensuring an effective and efficient working environment, from the CEO’s office to the factory floor. “We are very aware that we have had great success in working effectively and efficiently across our teams, and with our people, to help all of us understand the business better every day. I want to emphasise that next to the leaders, we need top-notch key-knowledge experts who are able to then pick up the right priorities, organise efficiently and be inspirational and motivational to their surroundings.” So far, Kuivalainen’s proudest achievement has been scaling and organising electrification businesses.
“We have a fast-emerging business in electrification,” he explains. “I set up a dedicated team with a startup mentality in 2019, to make room for specific exploration. The green transition has been gathering momentum in recent years, and following the ambidexterity principles for businesses, our team was able to become a business unit in the beginning of 2023.” Net zero pathways and software engineering create energy efficiency Danfoss Group has one of the world’s strongest portfolio components for decarbonising the three most emissionintensive sectors: industry, transport and buildings.
Danfoss Group committed to reducing its emissions to 46.2% of the absolute scope of Scope One by 2030, 2019 being the base year. The company has also committed to reducing absolute Scope Three emissions by 15% in the same timeframe. “We have decided that, to reduce our Scope One and Two to zero by 2030, we must use energy-efficient measures, reuse excess heat from the process and source renewable energy.” As a last resort, the company will offset its emissions. Danfoss Group has a three-step approach: Reuse, Reduce and Recirculate, which Kuivalainen views as a method of medicine. The company is introducing manufacturingdigital.com
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By Scott Parent, VP & Field CTO, Energy, Aerospace, and Industrial, Ansys
World-class companies use Ansys
Achieving sustainability goals that are crucial to the long-term health of this planet involves consuming fewer of our current resources so more will be available to future generations. Simulation enables companies to save resources, energy, and emissions before products are ever built, and build more energy-efficient products and processes. Digital engineering is key to meeting these goals. It encompasses the design, simulation, optimization, and operation of systems and processes over their life cycles. Two major concepts of digital engineering are sustainability by design and digital twins. Simulation is essential to both concepts. Sustainability by Design Incorporating sustainability into the design process from its earliest phases is important because more than 80% of a product’s cost, material requirements, and ecological impact are determined during the development and design cycle. Simulation is crucial to sustainability by design. Using Ansys Granta MI materials database software can help engineers reduce the carbon footprint of a product by finding the best material for the application based on its physical properties and recyclability. Ansys Mechanical can help optimize both the volume and the topology of a component to use as little of the material as possible. Digital Twins By implementing Ansys Twin Builder, you can improve top-line revenue, manage bottom-line costs, and both gain and retain a competitive advantage. This enables organizations to track the efficiency of the process and monitor any wear and tear. Using software like Ansys Twin Builder, engineers can run simulations on the digital twin to determine any interventions necessary to increase the efficiency or extend the lifetime of the physical mechanism. In many instances, a longer lifetime can mean better resource utilization. Digital engineering, with simulation at its core, is key in helping to ensure sustainability in product design and operation.
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DANFOSS DRIVES
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the Danfoss circularity framework (Rethink Reduce Recirculate) as an integral part of its new product development. By 2030, Danfoss’ ambition is to apply it to all product development. According to Kim Fausing, Danfoss President and CEO of Danfoss Group, “A third of the reduction needed in energy-related CO2 emissions this decade according to the IEA Net Zero by 2050 scenario must come from improvements in energy efficiency. The good news is that the solutions are there to improve energy efficiency in all sectors. We don’t need to wait. We need action because the greenest energy is the energy we don’t use.” It is not about how much new green energy can be produced, but how the company can use the energy it has in a much more efficient way. Danfoss Drives is a part
of one very public reference, which is its Project Zero – a public-private partnership in the south of Denmark. “Since 2007, Project Zero has been able to cut 50% of emissions in the city of Sonderborg. That’s a reduction from 700 tonnes to 339 tonnes of CO2, from 2007 to 2020.” Software engineering in the age of digitalisation, cybersecurity and IoT Software engineering is not what it used to be. Digitalisation comes with industrial internet connectivity, cybersecurity and data privacy, which is also an important topic in the business environment. Kuivalainen is tasked with working out how to improve and manage this in a sustainable way. “We have applied DevOps to the embedded systems. The IT industry has manufacturingdigital.com
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Hardware-in-the-Loop Based Digital Twins for Motor Drives
*An example motor drive schematic.
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Streamline embedded software testing and lifecycle maintenance for motor drives.
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Reducing digital controller testing and integration time from days to hours.
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Enable continuous testing and agile DevOps processes.
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De-risking motor drive integration and interoperability challenges.
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Integrate component design and testing with system integration and interoperability testing.
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Streamlining product lifecycle maintenance with virtualized simulation.
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Supercharge product lifecycle with portable HIL based digital twins.
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DANFOSS DRIVES
“ To reduce our emisssions we must use energy efficient measures, reuse excess heat and source renewable energy” JANNE KUIVALAINEN
CTO, HEAD OF TECHNOLOGY, DANFOSS
been using DevOps in development and integrated operations for quite a while.” The company has now applied that to the embedded software, which requires hardware-software integration, so that Danfoss Drives can carry out testing seamlessly. Danfoss Drives has been using solutions offered by its partner, Typhoon HIL, in the hardware-in-the loop (HIL) testing. Continuous integration and delivery requires investments in testing. “We applied robotic process automation for testing and lifecycle requirements, for example, due to cyber security, which meant that we needed to create an architecture that has these elements built in, so that it’s easy to maintain.” Kuivalainen knows that Danfoss Drives can increase the performance on a continuous basis for years to come. “If I look back to the product itself, we have decided on more extensive use of manufacturingdigital.com
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“ It has been great to work directly with customers and look at different optimised systems there” JANNE KUIVALAINEN
CTO, HEAD OF TECHNOLOGY, DANFOSS
modelling and simulation. This depends very much on the different physics like thermal, vibration, and EMC simulations.” Danfoss Drives can generate the software itself for the product, but also the simulation models needed for digital twins, at the same time, from the same source code. “We envisioned the benefits to ourselves regarding simulation and modelling-based engineering. It has been great to see how we can use it with our customers now. “Requirements by both customers and regulators will change regarding embedded software. Cybersecurity and data management requirements and regulation will also continue to develop.” Kuivalainen anticipates that updates will become more common over the lifecycle of a product and they need to be controlled, safe and secure. “I see that the best practices of it, for example, the DevOps type of operating model is coming into the development of embedded systems as well. It’s a reality for us today.” 122
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Electrification in manufacturing, sustainability and energy Danfoss Drives electrification solutions can be used across the manufacturing, sustainability and energy sectors. The company has firm ESG targets, ranging from implementing Net Zero to a radical reduction of greenhouse gases. “We found out there are tools and very much our own products, for this, readily available, which are financially profitable. Financing of companies is becoming increasingly dependent on how well they do on their ESG journey.” In manufacturing industries, Danfoss Drives brings the solutions in electrification to the site level, enabling tangible savings in decentralised conveyor systems,
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providing drive solutions for local battery-energy storage systems and advanced drive arrangements. Danfoss Drives and Ansys collaboration empowers digital transformation Danfoss Drives’ collaboration with Ansys started over a decade ago. As the leading provider of multiphysics simulation software, Ansys has the engineering expertise and comprehensive solutions needed to help innovators push boundaries by using the predictive power of simulation. “What we value with Ansys is their responsiveness in tool development,” said Kuivalainen. “Optimisation requires high fidelity modelling and simulation.” Throughout Danfoss Drives’ digitalisation journey, Kuivalainen noticed a barrier to entry for new users of the high-end simulation tools, which could be difficult to understand. This caused a bottleneck for product development. But with Ansys simulation solutions, such as Ansys Discovery, users can quickly understand how to use the tools; achieve fast, high-fidelity results; and explore multiphysics and multiple physics scenarios. “With Ansys, we can democratise the simulation, making it more available, so that customers get the right support to get started.” With Ansys Discovery, Ansys Mechanical, Ansys Fluent, Ansys Icepack and Ansys SIwave, Danfoss Drives can combine fast, accurate physics simulations that are easy to use, meaning that this digitalisation is democratised. For example, Ansys Discovery features interactive modelling and multiple simulation capabilities, which enable users to answer critical design questions early 124
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in the design process. This saves time and effort on prototyping as users can explore hundreds of design concepts virtually in the time it would take to build and test just one physical prototype. Danfoss Drives is also co-innovating with customers with help of simulation and modelling. “We started to pivot systems in our own application development centres with a customer facing platform. We have physical locations, where we can go to innovate and develop solutions with our customers.”
“ We can help our customers run
earlier full scale virtual testing and performance assessments before they have any physical hardware realised for their product” JANNE KUIVALAINEN
CTO, HEAD OF TECHNOLOGY, DANFOSS
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Danfoss Drives has made a commitment to reduce its emissions,
46.2%
of absolute scope of Scope One, Two GHG emissions by 2030, 2019 being the base year Danfoss Drives has committed to reducing absolute Scope Three emissions by
15%
Danfoss Drives provided hardware in the loop solutions, which Kuivalainen has found rewarding. “It has been great to work directly with the customers and look at different optimised systems there. We can see how greatly we can help our customers to speed up productive development and run earlier full-scale virtual testing and performance assessments before they have any physical hardware realised for their product.” Simulation and digital engineering help to transform business at Danfoss Drives, as the company can start work much earlier with its customers looking to develop their next generation of products or systems. Simulation and modelling systems support software solutions like Ansys Twin Builder which helps the customers to integrate, no matter what tools they are using. “Simulation modelling helps customers to build better solutions.” Danfoss Drives makes this easy for its customers, co-developing tools with customers, reaching out and piloting with the customers to understand their needs 126
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and being responsive to change. The simulation and modelling products Danfoss Drives offers to its customers is based on the customers’ needs. For the next year at Danfoss Drives, Kuivalainen will continue to be more effective in bringing the message to the market of energy savings and opportunities available through the Drives solutions. “The journey continues, while we look at how we can use the same technologies internally, to drive better quality and productivity,” said Kuivalainen.
TECHNOLOGY & AI
NTT AND VERIZON OF MANUFACTURI Parm Sandhu, 5G Products and Services at NTT, and Verizon’s Michael Weller, explain how 5G is driving manufacturing innovation, alongside a skilled workforce WRITTEN BY: HELEN ADAMS
5G
is expanding across the world, used in mobile phones, computers and even cars. As 5G utilises technologies including automation, AI and IoT, it is popular with modern manufacturers. Parm Sandhu leads 5G Products and Services at NTT and Michael Weller is the Practice Leader for Manufacturing, Energy and Utilities at Verizon. Here, Sandu shares his thoughts on the increased demand across manufacturing for private 5G networks and Weller discusses embracing 5G for its edge network infrastructure. Transforming manufacturing and utilities with Verizon’s innovation hub Weller is responsible for providing thought leadership to customer innovation challenges at Verizon. 128
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N ON THE FUTURE ING AND 5G
Get reliable network coverage and security protection, fast. A modern network must be able to respond easily, quickly and flexibly to the growing needs of today’s digital business. Must provide visibility & control of applications, users and devices on and off the network and Intelligently direct traffic across the WAN. Be scalable and automate the process to provide new innovative services. Support IoT devices and utilize state-of-the-art technologies such as real-time analytics, ML and AI. And all these must be provided with maximum security and minimum cost. This is the power that brings the integration of two cloud managed platforms, Cisco Meraki and Cisco Umbrella. This integration is binding together the best of breed in cloud-managed networking and Security.
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cisco
CiscoSecure
CiscoSecure
TECHNOLOGY & AI
“Upskilling will make the workplace more engaging” MICHAEL WELLER
PRACTICE LEADER – MANUFACTURING, ENERGY AND UTILITIES, VERIZON
“My expertise covers multiple technology disciplines, including 5G/4G LTE, MEC and Internet of Things.” Earlier in his career, Weller worked in a contact centre, unified communications and in security, giving him a wide range of experiences and skills that he uses to this day. “I was fortunate to begin my career in a role that was devoted to the customer experience. In the early days of contact
centres, I was involved in supporting the customer experience. That focused on a workload that was a bit unpredictable in terms of determining if customers were having a positive experience and achieving operational efficiency. I learned early that when you get the customer experience right, everything else falls into place.” These roles prepared Weller for Verizon, where he’s worked for eight years and has been mostly focused on innovation and manufacturingdigital.com
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“Legacy wireless tech cannot fully support mission-critical, real-time functionality such as edge computing” PARM SANDHU
VICE PRESIDENT ENTERPRISE 5G PRODUCTS AND SERVICES, NTT
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TECHNOLOGY & AI
Parm Sandhu TITLE: VICE PRESIDENT ENTERPRISE 5G PRODUCTS AND SERVICES COMPANY: NTT INDUSTRY: IT CONSULTING LOCATION: VANCOUVER, BRITISH COLUMBIA, CANADA NTT is a leading global IT infrastructure and services company. With partners like Cisco, Celona and Qualcomm, NTT is building out the Private 5G ecosystem. Parm Sandhu is based in Vancouver, Canada, and is the Vice President of Enterprise 5G Products and Services.
Industry 4.0. In this time, Weller has seen Verizon only become more innovative, flexible and agile. “Private Wireless Networking is a great example of this,” Weller said. “A large US based manufacturer of fibre-optic cable recently embraced 5G for its edge network infrastructure. Now the company is building on that investment and developing new edge applications to take advantage of its enhanced network capabilities.” In addition, Verizon’s focus on improving the customer experience through leading technologies and innovations
has become even more transformative for Weller. “We are much more engaged with businesses than we ever have been.” The future of manufacturing at NTT with 5G, edge computing and Private 5G networks NTT DATA is based in Tokyo, Japan, and was founded in 1952. The company is designed to spot vulnerabilities in a manufacturing organisation’s systems and helps to select the best solutions. Parm Sandhu is based in Vancouver, Canada, and is the Vice President of Enterprise 5G Products and Services. manufacturingdigital.com
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“I learned early that when you get the customer experience right, everything else falls into place” MICHAEL WELLER
PRACTICE LEADER – MANUFACTURING, ENERGY AND UTILITIES, VERIZON
“Digital transformation is delivering both change and opportunity to organisations across every sector and manufacturing is no exception,” Sandhu says. “Driven by rapid advances in technology and the growing demand for more efficient, sustainable and data-driven operations, those in the industry are currently witnessing a new era, commonly referred to as Industry 4.0.” This marks the beginning of a period which will be defined by digitalisation, data-driven decision-making, increasing interconnectivity and smart automation. However, in order for modern technologies 134
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to be effective, they need the correct infrastructure behind them, especially in the era of hybrid-working. “Unreliable and insecure past wireless technologies cannot fully support missioncritical, real-time functionality such as edge computing,” said Sandhu. “This is why there has been increased demand across the industry for Private 5G (P5G) networks.” NTT’s latest Global Network Report revealed that more than 80% of organisations are embracing the adoption of new enabling technologies, of which cloud-based network management,
TECHNOLOGY & AI
Michael Weller
TITLE: PRACTICE LEADER – MANUFACTURING, ENERGY AND UTILITIES COMPANY: VERIZON INDUSTRY: IT CONSULTING LOCATION: CALIFORNIA, USA Weller has worked at Verizon for eight years, mostly in innovation and Industry 4.0. In his current role, Weller is responsible for providing thought leadership to customer innovation challenges.
AIOps and Private 5G are the top three investment priorities for the next two years. “This is unsurprising, given that Private 5G can support enterprise-level applications, quality-of-service policies and security requirements whilst providing reliable performance in real time,” said Sandhu. “Its high bandwidth, low-latency connections provide stability for missioncritical applications and can make manufacturing processes more effective while boosting productivity.” When combined with edge computing, a Private 5G network can also improve
efficiency, allowing users to use multiple devices and applications seamlessly. As factories increase their reliance on robotics, vehicles become autonomous, and the number of devices on the grid increases, there is a greater need for localised computer processing power with near-instantaneous response times, which is what’s driving accelerated edge adoption. Private 5G is a key enabler. For those in the industry, Private 5G can be a game changer in terms of optimising assets and processes. Manufacturers need to trace assets throughout their lifecycle manufacturingdigital.com
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“Digital transformation is delivering change and opportunity across everysector, and manufacturing is no exception” PARM SANDHU
VICE PRESIDENT ENTERPRISE 5G PRODUCTS AND SERVICES, NTT
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TECHNOLOGY & AI
NTT XC – Conversations with Parm Sandhu WATCH NOW
– from parts to product – as they move through their facilities. “This is traditionally achieved through location and event data and other telemetry that flows from a range of sensors and factory systems,” said Sandhu. “But Private 5G is bringing new levels of speed and precision to asset tracking, system monitoring and real-time schedule and process optimisation.” Similarly, Private 5G is solving old pain-points for those in the industry. For example, using it in manufacturing facilities helps to avoid Wi-Fi access-
point proliferation and blind spots when tracking assets. “Manufacturers are even able to utilise Private 5G when changing or setting up new production lines – a process that traditionally has taken months, or even longer, due to connectivity profiles for all connected devices and systems needing to be reconfigured. “This is because Private 5G can support the auto discoverability of devices at scale and apply automatic or templated configurations to activate reconfigured networks and devices so that manufacturers can accommodate mass customisation or personalisation.” Edge computing refers to the processing of data with applications at or near the edge of a network in a range of devices. manufacturingdigital.com
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A key advantage is its ability to work with 5G, by allowing applications to process data on the edge near the source, delivering dependable, real-time analytics and machine-learning capabilities and enabling mission critical applications to process data securely on-premise. It does all this, whilst providing observability and governance with cloud-centric infrastructure. Many organisations are starting to look into how the pairing of Private 5G and edge computing could benefit them. “Due to its complex nature, many manufacturers will choose to work with a partner to implement a combined Private 5G and edge approach,” said Sandhu. “The best in the market will provide a fully managed, enterprise-friendly turnkey package directly to organisations which connects on-site teams and devices seamlessly from the edge to the cloud, giving them the speed, control, security and the coverage that they need to transform their customer and employee experience. Manufacturers should have a single point of support to integrate Private 5G with existing enterprise networks, industrial IoT infrastructure and edge and cloud computing resources, whilst still having control of data sovereignty, ownership and location.” With IoT connections set to reach 1.5bn by 2025, Sandhu sees Private 5G as the key to the future of manufacturing. “Without it, those in the industry will not be able to automate production, streamline operations and increase productivity,” he said. “As we move forward, Private 5G will become the key to ensuring that the Industry 4.0 dream is realised.” Over at Verizon, the company is using 5G to help transform all industries, including 138
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NTT’s Global Network Report reveals that
80%
of organisations are embracing new enabling technologies such as cloud-based network management, AIOps and Private 5G
manufacturing, healthcare, transportation and agriculture. “That means Verizon is leveraging 5G to provide companies increased speed and capacity, better connectivity, and improved security and privacy,” Weller said. “Our customers will use this increased capability to innovate the next generation of smart factories, autonomous vehicles, remote patient monitoring and precision agriculture, to name just a few examples. We expect 5G to continue to revolutionise the way we connect, work and live.” Over the next year at Verizon, Weller anticipates a tremendous amount of innovation.
“In my area – manufacturing, energy and utilities – technologies like video analytics and computer vision, AR and VR, have not been applied extensively on plant floors.” But that’s changing and these technologies are coming together, at the same time. Weller plans to see them as fully operational in the next one to three years at Verizon. But it’s not just the new tech that Weller is excited about. One key learning for Verizon over the past few years, is that the manufacturing industry is going to leverage employees’ intellectual skills in new and powerful ways. “According to a study carried out by The Manufacturing Institute’s Center
for Manufacturing Research and the American Psychological Association, 69% of employees in the industry who are younger than 25, said they would stay at their current employer because of upskilling and development opportunities, because upskilling will make the workplace more engaging.” Upskilling will aid retention, boost operational efficiency and attract a new generation of workers. Alongside the new opportunities of 5G, the manufacturing sector is combining a talented workforce with new technologies to take production to new heights. manufacturingdigital.com
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WRITTEN BY: HELEN ADAMS PRODUCED BY: JAMES BERRY
ARXADA
ARXADA’S SHORT-TERM DELIVERY AND LONG-TERM CAPABILITY manufacturingdigital.com
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Randy Willis of Arxada discusses synchronising supply chains with people, processes and tools to transform short, medium and long-term planning
I
n In the modern world, science-led solutions that claim to protect the health and wellbeing of people and our planet are under increased scrutiny. Arxada is a global specialty chemicals company, with a clear track record of industry innovations which range from Microbial Control Solutions to Professional Hygiene. The 3,000-strong Arxada team is headquartered in Basel, Switzerland and aims to be the preservation go-to within the industry, by solving the world’s toughest preservation challenges. “We are focused on delivering superior products and services to our customers by leveraging our strength in science and innovation, our manufacturing process development capabilities, and our regulatory sciences organisation,” says Randy Willis, Vice President of Supply Chain for Arxada. A keen chemical engineer, he studied the subject at Lamar University, before taking up process engineering role in a management development programme for DuPont. Willis then went on to work at Axalta, Materion, and AkzoNobel, before joining Arxada in September 2022. “I worked across different sites and then moved into various operations and supply chain leadership roles in several companies – DuPont, Axalta, and now Arxada.” 142
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Randy Willis TITLE: VICE PRESIDENT OF SUPPLY CHAIN COMPANY: ARXADA Randy Willis joined Arxada in 2022 as Vice President for Supply Chain and Integrated Operations. Randy brings more than 25 years of experience to the role, previously serving as North America Supply Chain Director for AkzoNobel. He is a supply chain expert, specifically within the specialty chemicals industry with a particular concentration in coatings. He has held positions at high profile industry leaders including Axalta and DuPont. Randy has a BS in chemical engineering from Lamar University, Beaumont, TX. He has lived in nine U.S. states as well as abroad in Duesseldorf, Germany. He currently resides in Nashville, TN with his wife Carla and Bella, their Great Dane, where they enjoy hiking, camping and fishing and attending concerts.
ARXADA
The biggest challenge in his role at the moment is managing his team’s time. “Just like every leader, the big challenge is balancing short-term delivery versus longterm capability and building a property and excelling team over time. It’s the balance between now and the future.” Willis is most proud of the team he has built. “I’ve been in a few transformative roles over my career, but I think the one I’m most proud of is the last year, my first year at Arxada, where we have transformed the supply chain and generated huge business improvements while building a winning culture and a winning team.” Arxada’s Evolution: Transforming supply chains with the right people, process and tools Willis is improving end-to-end synchronisation and collaboration capabilities from customers through to suppliers, despite limited planning tool capabilities.
“We have a weekly process, where we have a cross-functional team from the commercial, manufacturing, supply chain, and procurement,” Willis says. “We are all working off the same set of books and numbers and plans, to make sure they’re all aligned.” One of Willis’ next steps is getting tools that will help the team do just that. Three companies were brought together to make Arxada and, as a result, they have three different ERP systems, manufacturing networks and most important, workcultures. The team uses core ERP to complete its planning. “We need to evolve and start doing our planning using modern tools. But that is in the future, not today. We decided to start with people and processes and follow with tools. Our processes have improved dramatically. Our team’s capabilities have improved dramatically. Now we’re going to start working on tools and digital enablement.” Willis is improving forward visibility to enable upside and downside supply manufacturingdigital.com
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capability. Arxada is starting to look at order intake frequency trends in the short, medium and long term, as well as efficiently managing feedback from key customers. “We run our supply chain at varying sales to capacity ratios based upon how quickly we can respond up or down, based on an individual asset. So we’re using all those processes to manage up and down and make sure that we keep a constant supply and manage cash and cost effectively,” adds Willis. Arxada’s journey to optimise short, medium and long-term planning Arxada’s strategy throughout 2021 and 2022 saw its inventory and back orders continue to rise, while service levels deteriorated, but Willis saw this as no different than most in the industry. “Between all the supply chain disruptions, staffing shortages and unpredictable demand, it caught us a little bit flatfooted,” Willis says. So, in September 2022, the team took a reset and backed up to look at the whole system and completely redesign it. “We made it much more fit for purpose,” notes Willis. “To make sure that we’re prepared for the short, medium and long-term, to meet the needs of both the business and our customers, more efficiently.” Arxada has two time-phased work streams, Fix and Iterate. “In short, that was all about here and now, making sure our ERP system was set up properly, making sure our planning 146
December 2023
practices were state-of-the-art and that we were monitoring and complying with the short-term needs of the business.” Using these two time-phased work streams ensures that Arxada’s short-term orders are filled, midterm orders are planned and back orders are being covered. “This also makes sure that our inventories turn back the other way and start getting under control,” says Willis. The team has built the basics for organisational execution capability. “We found the processes we wanted to run as an organisation from end to end and then designed the organisation to effectively manage and control that process.” Willis and his team have completely retooled the planning organisation, realigned
“We need to evolve into this century and start doing planning using more modern tools” RANDY WILLIS
VICE PRESIDENT OF SUPPLY CHAIN ARXADA
the way they do work and readjusted the way that they collaborate with other functions in the company. “As a result, we’re getting much better outcomes.” Arxada defined the path to first quartile five chain capability by starting with a cross-functional strategy meeting in Basel, facilitated by Ernst and Young (EY). “We decided what we wanted to be when we grew up and what ‘good’ looks like for our particular company. Then based on that, we looked at where we are, where we want to be and did a gap analysis at the detailed level.” This created 55 projects, to get from point A to point B. Arxada then put them in logical work streams.
“We time phased them from urgent and important, to important but not as urgent. We built the path from here to there,” said Willis. In September 2022, Arxada leadership and EY formed a team to reverse the trends and build sustainable capability to improve things. “We use EY’s supply chain practice to enable and accelerate our transformation and deliver results in weeks, not months. EY works well with our internal team and provides industry best practice. Insight helped build our multi-year roadmap and EY became our trusted advisors. “We openly discussed options regarding short-term priorities, developed the results-oriented organisation and closely manufacturingdigital.com
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WATCH NOW
monitored the overall performance of the supply chain and developed a winning organisational mindset.” The results are quite remarkable. Arxada has: • Reduced back orders by 70% • Reduced inventory by 14% • Reduced manufacturing cost by 5% “That happened very quickly – in the first 90 days. In one year, backorder reduction has gone from 70% to 86%, a 39% reduction in order delivery failures and a 29% inventory reduction.” Arxada has built KPI driven processes and people capabilities to set the stage for the next journey and has been sharply focused on its externally benchmarked force quartile supply chain performance. 148
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“We looked at supply chain performance in a variety of ways, both from the number of people required to do it, inventory turns, supply market service levels – the full suite of what you would expect the top quartile supply chain to do,” says Willis. “Then, we looked at it from a more subjective view of the characteristics of a top quartile supply chain, which are important for us and which are not.” Arxada made conscious decisions on what the first quartile should look like. Over the next year, Arxada intends to implement a fit for purpose end-to-end supply chain planning tool, with asset optimisation and full financial scenario planning capability. “We plan to improve our end-toend synchronisation and collaboration capabilities with suppliers and customers,
“We have a cross-functional team, all the way from the commercial manufacturing supply chain, back to suppliers” RANDY WILLIS
VICE PRESIDENT OF SUPPLY CHAIN ARXADA
ARXADA
as well as provide forward visibility to support upside and downside supply capability. This will ensure sustained excellence for service to our customers while improving cost, networking and capital productivity. “Last and most importantly, we intend to achieve an externally benchmarked first quartile supply chain performance, making our supply chain a competitive advantage for our company.” Within the next year, Arxada is going to work on four things. “We’re implementing a fit-for-purpose end-to-end supply chain planning tool, that will enable us to continue the journey of improving networking, capital cost and market service level or customer service level going forward,” says Willis. The company is going to improve its endto-end synchronisation, using tools to make sure that its suppliers and customers are all working on the same base plans. “We’re going to work on forward visibility using leading indicators,” Willis adds. “There are a few of our products that tend to lead the drop and the recovery. We’re using those as bellwethers to understand what the general economy is going to do.” Arxada is going to be more proactive in staffing up, as well as down, to make sure they are meeting their objectives and maintaining good supply to the market. “Last but not least, we are going to achieve first quartile supply chain capability and performance and the corresponding KPIs associated with that.”
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“We looked at supply chain performance in a variety of ways, both from the number of people required to do it, inventory turns, supply market service level – the full suite of what you would expect the top quartile supply chain to do” RANDY WILLIS
VICE PRESIDENT OF SUPPLY CHAIN ARXADA manufacturingdigital.com
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