Manufacturing Global – March 2020

Facilitating a ‘Total Beverage’ transformation manufacturingglobal.com

M A R CH 2 0 2 0

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EMBRACING DIGITAL TRANSFORMATION How a diversified global portfolio can benefit from supply chain innovation Cloud Tools for Manufacturers

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FOREWORD

W

elcome to the March issue of

Business Unit CIO, Damiano Marabelli, tells

Manufacturing Global magazine!

Manufacturing Global how IT has played

This month’s cover celebrates a manufac-

turing success story still going strong after

its part in supporting a ‘Total Beverage’ transformation at the global drinks giant.

T:297 mm

143 years. Henkel Global is a leading solu-

Elsewhere in this issue, we learn how

tion provider in three core areas: Adhesive

Aerojet Rocketdyne, a world-class devel-

Technologies, Beauty Care, and Laundry

oper and manufacturer of advanced

& Home Care. We hear from Dirk Holbach,

propulsion and energetics systems for the

Corporate Senior Vice President Global

likes of NASA, is innovating. Senior Director

Supply Chain Laundry & Home Care analys-

of IT, Alan Avakian, explains how the aero-

ing the transformative effect technology has

space and defence industry is evolving

had on its approach to logistics in the supply

significantly, with multiple new trends

chain: “We have a strong company culture,

emerging. From additive manufacturing

and our shared values help us to create

to solar electric propulsion, cybersecurity

sustainable value for future generations.”

and cloud technology, Aerojet Rocketdyne

Meanwhile, in Berlin, we caught up with

is reacting to meet its future needs.

BMW Group’s Head of Artificial Intelligence

Kennametal has been providing tools

Innovation at the Connected Manufacturing

and services for the aerospace, automotive

Conference. Matthias Schindler told us how

and energy industries for more than 80

the automotive leader is focused on object

years. The company’s CIO, Tom McKee,

detection technologies to improve quality

reveals how it is leveraging SAP’s solutions

in a bid to reduce re-work (across its press

to deliver the smart factories that will drive

shop, body shop, paint shop and assembly

growth towards its centenary.

line) and accelerate production of its 3

daniel.brightmore@bizclikmedia.com

Series and new 8 Series vehicles.

The Coca-Cola Company’s vision is to

Enjoy the issue.

craft the brands and choice of drinks that

Daniel Brightmore

people love. Central & Eastern Europe

Editor w w w.ma nufa c t uri nggl o b a l. com

03

Click the home icon (top right of page) to return to contents page at anytime EDITOR IN CHIEF

DANIEL BRIGHTMORE MANAGING EDITOR

MATTHEW HIGH CREATIVE DIRECTOR

STEVE SHIPLEY

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CONTENTS

10 38

48

74 Cloud Tools for Manufacturers

88 60

Events & Associations

sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability.

For more information, please visit: www.honeywellprocess.com/iiot

CONTENTS

92 The Coca-Cola Company

108

144

SAS interior modules

Aditya Birla

126 Aerojet Rocketdyne

xx

10

THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

MARCH 2020

11

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HENKEL

Dirk Holbach, Corporate Senior Vice President and CSCO of Laundry and Home Care, Managing Director of Henkel, discusses the effect technology has had on the supply chain

T

he Fourth Industrial Revolution is here.

Technology is an enabler and it is having an increasingly prominent effect on how

manufacturing companies and their supply chains operate. Henkel is a leading solutions provider in 12

three core areas: Adhesive Technologies, Beauty Care, and Laundry and Home Care. Over the past few years, the firm has experienced rapid transformation and has its finger on the pulse of the latest technological innovations.

Overseeing the company’s worldwide supply chain for Laundry and Home Care is Dirk Holbach, Corporate Senior Vice President Global Supply Chain. Holbach has worked for Henkel in a variety of roles for almost his entire working life.

Having joined the company as Junior Manager of Corporate Purchasing in 1996, he became responsible for purchasing at Laundry and Home Care in 2004 before transitioning into several different roles prior to moving into his current position in July 2015. As part of Holbach’s current role, he is responsible for the end-to-end supply chain MARCH 2020

13

w w w.ma nufa c t uri nggl o b a l. com

Empowering Industrial Workers With Modern Digital Tools Improve productivity, quality and safety with the Parsable Connected Worker Platform.

Transform static, paper-based standard operating procedures into mobile, interactive work instructions.

Enable workers to leverage multimedia formats and collaborate in real time.

With Parsable, companies gain unprecedented insight into human work by capturing essential data to improve their operations at scale. www.parsable.com

Increasing Productivity, Quality and Safety at Henkel – at Scale A key partner to Henkel’s digital transformation is Parsable, the leading Connected Worker Platform for enterprise industrial companies.

Parsable is a software platform that helps the world’s largest industrial and manufacturing companies arm their frontline workers with the necessary tools to thrive in today’s digital-first world. In addition to Henkel, its customers are top global companies in the manufacturing and energy industries, including consumer packaged goods, resources and chemicals, packaging and building materials, and automotive and aerospace.

Parsable is one of Henkel’s partners to help digitise Henkel’s operations. The Parsable Connected Worker Platform transforms static, paper-based standard operating procedures into dynamic work instructions, including multimedia voice, text, video and photos, as well as real-time team collaboration. Given that 72% of tasks at a factory are still performed by humans, according to a recent study by research firm A.T. Kearney, Parsable provides companies with new data and insight into human work so they can improve productivity, quality and safety – at scale.

“They’re primarily focused on supporting companies through digitalisation on the shopfloor. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform,” said Dirk Holbach, Corporate Senior Vice President Global Supply Chain Laundry & Home Care, Henkel.

Parsable underwent an intense deployment at Henkel during 2019. “We’ve been pioneering this new market, called connected work, which provides modern digital tools to industrial workers,” says Lawrence Whittle, CEO of Parsable. “The consumer packaged goods market is an increasingly active area for us and it ultimately led us to Henkel, who is clearly one of the biggest players in this space on the global stage.”

In order to establish a mutually beneficial and longlasting partnership, Whittle believes transparency is

Overview of Connected Work and the Parsable Platform

essential in order to achieve success with some of the world’s biggest companies. “You have to be able to align with each other; otherwise, technology companies can’t survive,” he says. “We’ve invested a ton to ensure that we’re not only delivering an easy-to-use, softwarebased platform to help frontline industrial workers do their jobs better and more efficiently, but also that we support and even drive the key business objectives of our customers.”

“Ultimately, our goal is to improve the overall operations at Henkel,” explains Whittle. “In order to achieve that, there is a clear objective around productivity, safety and quality. At the moment, there’s a demographic shift in the industry. It’s vital that you capture the knowledge of employees that are at retiring age and leaving the company, and transferring that knowledge to the new generation. While there’s a real necessity to drive efficiency, quality and safety, there is also a requirement to understand a new way of working and recognise a new type of worker that really needs these modern, digital tools.”

The Parsable Connected Worker Platform currently has users in more than 130 countries, and is available in 14 languages.

LEARN MORE

HENKEL

for Laundry and Home Care, and in 2018 the business unit accounted for

“ Introducing digital for digital’s sake doesn’t make any sense”

€6.4mn sales. Within Holbach’s business unit, Henkel has six regional hubs, as well as 33 factories and 47 warehouses under his remit. Despite being founded in 1876, the DAX company is still majority owned by the Henkel family, and Holbach believes this really sets his

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel 16

organisation apart from its competitors.

“It provides us with a different strategy: the Henkel family has shown its continued commitment to the company, enabling us to operate with a long-term perspective. We have a strong company

MARCH 2020

Henkel: Operating a long-term approach in manufacturing CLICK TO WATCH

|

1:28

17 culture, and our shared values help us to create sustainable value for future generations,” he explains. “Our portfolio is diversified because we have two consumer goods businesses and one that’s focused on industrial markets. It’s certainly a unique mix.”

Holbach understands that the journey to achieving digitalisation is a continuous one and not something that can be accomplished overnight. “In 2013, we began to invest in our digital backbone, which led to us connecting all our factories together through a standardised approach,” explains w w w.ma nufa c t uri nggl o b a l. com

Changing the way you think about data LEARN MORE

More and more companies collect huge amounts of data and want to turn them into money. But where are the obstacles to achieving that?

When it comes to data monetization, most companies only scratch the surface. This is because the use of data can only be imposed to a limited extent. Instead, companies need to get as many people as possible excited about using data. Analytical competence is often confined to the IT or BI department, employees are not trained in working with data or do not have the right tools to use data easily and sensibly in their daily work. The fact is, the more employees and managers are used to working with data, making decisions based on facts and playfully drawing new insights from data analysis, the more likely it is that companies will develop ideas on how to make money with data - be it in the form of services or even entirely new business models.

In other words, it is necessary to build a data-driven corporate culture. But what does the path to this end look like?

A culture of analysis begins with empowerment.

Employees must be empowered to explore data themselves and answer their own questions. This also includes a certain degree of trust managers must have in their teams when dealing with data. Modern BI tools also help to curate and purposefully manage data.

This way, everyone gets access to the data they need without jeopardizing sensitive data and governance regulations.

What role do technologies like AI play here?

If companies want more employees to work with data, they need to make access as easy as possible. Technologies such as Natural Language Processing (NLP) and AI can help.

NLP - the ability of computers to understand human language - lowers the entry barrier for professional analytics. With our Ask Data feature, users can formulate questions about

Henrik Jorgensen Country Manager DACH at Tableau Software.

their data in natural language. When people can interact with a data visualization like a personal assistant, it allows more people across all disciplines to ask deeper questions about their data, thus increasing the overall acceptance of data analysis. With the use of AI-based data analysis, we are now going one step further and making statistical knowledge more accessible. For example, the new Explain Data feature can be used to explain statistical outliers. This allows users without specialist knowledge to quickly expose the 'why' behind their data by simply clicking on the data point in a visualization. Explain Data evaluates hundreds of patterns and explanations within seconds, taking all available data into account.

Innovations such as these foster a culture of curiosity and strongly promote a data-driven corporate culture.

SEE HOW TABLEAU WORKS

HENKEL

20

Holbach. “I’m always looking at the

consumer goods (FMCG) business, we

business benefit for implementing

primarily think in relatively short cycles,”

technology because introducing digital

explains Holbach. “If the end user has

for digital’s sake doesn’t make any

no benefit from a specific technology

sense. It’s important that new technol-

then they’ll stop using it. You can’t intro-

ogy helps solve business challenges,

duce new technology for the sake of it

such as ensuring that processes

— there’s no point. We’re still adopting a

become faster, cheaper and more

vertical approach and are continuously

agile.” Implementing technology that

trialling new technology in several

serves a purpose is a key pillar to

different pilot locations.” However,

Holbach, and he believes that harness-

Holbach understands the challenge of

ing new processes and systems that

change management and the process

aren’t sustainable has no long-term

involved for a successful culture shift.

value to Henkel. “As a fast-moving

“There’s a whole transformation of the

MARCH 2020

21

E XE CU T I VE PRO FI LE

Dirk Holbach With more than 20 years of experience in Supply Chain, Operations, Purchasing and Sales, Holbach has held various roles on a local, regional and global level at Henkel.

His special focus has been on supply chain strategy and organization development, network optimization, continuous improvement and post-merger integrations.

Holbach holds a Master’s degree in Business and Mechanical Engineering and a PhD in Information Science. w w w.ma nufa c t uri nggl o b a l. com

HANDLING YOUR SUCCESS CLEVERTECH, founded 1987, is a leader in the automation sector, able to design and manufacture customized systems for Front and End of Lines Automation.

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Henkel: Connecting factories together through a standardised approach CLICK TO WATCH

|

1:40

23

business to consider and it’s vital that

last ten years. “It’s become part of our

you give employees the time to under-

DNA and is anchored into our mind-

stand and embrace new technologies

set,” explains Holbach. “Our products

and provide targeted support and

are used millions of times every day

trainings,” he affirms.

around the world, and we recognise

Henkel has five core values that it

the potential impact we can have by

centres operations around: customers

developing sustainable innovations.

and consumers, financial perfor-

We’re designing more and more of

mance, sustainability, people, and the

our packaging to ensure it’s 100%

foundation as a family business. As a

recyclable, reusable or compostable

result of the company’s sustainability

as well as using recycled materials to

drive, Henkel has reduced its specific

produce it.” The company was one

energy consumption by more than

of the first organisations to publish

50% in its Laundry division over the

a formal sustainability report more w w w.ma nufa c t uri nggl o b a l. com

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says. “This means that you then have less resource consumption to produce

“ We’re designing our packaging to ensure its 100% recyclable as well as only using recyclable materials to produce it”

it, ship it, and it subsequently allows the consumer in the final phase to use our products in a more sustainable way.”

Another one of Henkel’s core values is people. The importance of having a team in place that is aligned to a common objective is at the heart of the company’s drive. Henkel places considerable value on its recruitment drive,

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

as well as ensuring it retains the talent it already has. “People are key. As part of our digital journey, I’ve built up a small, centralised regional team that

than 28 years ago and has a clear forward-going ambition: to triple the value it creates through business activities relating to its environmental footprint by 2030 – compared to the base year 2010. With a more sustainable approach at the forefront of Holbach’s strategy, he maintains that his company is continuously seeking to reduce the amount of packaging in its products. “Compaction is a major trend in our industry at the moment.

By taking certain chemicals out of a product, it makes it more compact,” he w w w.ma nufa c t uri nggl o b a l. com

25

Gather the Data to Dominate Your Field Every day, your people, devices, and processes are generating a large amount of data, but without context, it's just noise.

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Henkel, has achieved substantial savings in energy consumption, waste reduction and improved Overall Equipment Effectiveness (OEE) through the adoption of technology from our Operations and Optimisation Management and Monitoring and Control portfolio.

AVEVA delivers software solutions to about 80 sites globally at Henkel successfully today.

Read about Henkel’s sustainability success here or contact us eursa@aveva.com to learn more. aveva.com linkedin.com/company/aveva @avevagroup

27

works on a range of pilot use cases as

learnings that will enable training on

well as the implementation across all

the capabilities that are relevant today

our sites,” says Holbach. “Our recruit-

and in the future.”

ment strategy is to ensure we have a

Following the influx of technology

solid mix between data scientists and

such as data analytics, artificial intel-

traditional engineers with an under-

ligence (AI) and machine learning

standing of our businesses. We must

(ML), Holbach believes in operating

ensure that all of Henkel’s employees

proactively rather than reactively in

have the opportunity to upskill them-

a bid to differentiate from its peers.

selves, by having access to digital

“Technology has helped to redefine w w w.ma nufa c t uri nggl o b a l. com

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Enterprise: Structured Data

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Henkel: Developing trust essential to success CLICK TO WATCH

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1:03

29 the business frame that we operate

systematically started to collect an

in,” he says. “We’re only now starting

increasing level of real-time data.

to embrace AI and ML but it’s an area

A member of Holbach’s team,

we’re looking to do more in. We’re still

Sergey Afanasyev, International Digital

in the testing stage with a lot of new

Transformation Manager at Henkel, is

technology and it’s important that

focusing on two key pillars: connected

we’re continuously looking for new

workers and digital upskilling. “I like

opportunities that will accelerate our

to encourage digital collaboration

current processes. We have to always

between the people using mobile

see how far we can push the bar.” With

technologies as well as helping build

technology’s influence on the manu-

and develop the skills that employees

facturing sector showing no signs of

need today because of the digital

slowing, the plethora of data at com-

technologies already in place,” explains

panies’ fingertips should be embraced.

Afanasyev. He believes that new

Over the past few years, Henkel has

technologies such as AI, ML and Big w w w.ma nufa c t uri nggl o b a l. com

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H E N KE L PART N ER Q U O T ES Clevertech: “We’ve worked with Clevertech for many years. It’s a well-established business in packaging our goods and making them ready for shipment. It has a real drive to add digital capabilities into its products and is an important partner to us.”

Micro-Biolytics: “The partnership focuses on chemistry analytics.

We’ve been working together for a number of years and we are continuously trying out new ideas and concepts.”

Aveva Solutions: “The company is part of Schneider Electric and the home of Wonderware. It’s a special and long-term partner. Wonderware is the platform we use to connect all of our IOT together and the partnership is crucial to us.”

Parsable: “It’s primarily focused on supporting companies through digitalisation. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform.”

Tableau Software UK: “Tableau is now owned by Salesforce and is an important piece of our digital infrastructure. It’s our visualisation and analytics tool and enables us to review all our data in supply chain and manufacturing.”

O9 Solutions: “It’s a very fast growing company and we’re checking how it can support us in our end to end planning process.”

Zaptic: “It’s a newer player on the market with a no code platform to connect the shop f loor workforce with digital instructions and daily management workf lows. We’re now testing Zaptic’s solutions in

TEMBO: “TEMBO is more of a traditional technology supplier and we’re collaborating in the complexion of our product.

It helps supply machinery for unit dose and is based in the Netherlands so we can work very closely together to

our operations.”

expand our capabilities.”

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31

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Together creating the next

Data should be embraced to achieve a competitive advantage. “These tech-

“ I like to encourage digital collaboration between the workers and paperless operations”

nologies allow us to unlock values and data that we acquire through our digital backbone technology that ultimately brings us a competitive advantage,” says Afanasyev. “Technology itself is agnostic. It’s important to us that we only leverage technology that is true to our vision and strategy.”

Henkel has developed key, strategic

— Sergej Afanasyev, International Digital Transformation Manager, Henkel

partnerships with a range of firms including Clevertech, Micro-Biolytics, Aveva Solutions, Zaptic, Parsable, Tableau Software UK, o9 Solutions

Henkel: Zaptic and Tembo CLICK TO WATCH

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1:58

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HENKEL

34

1876

Year founded

€20bn+ Revenue in euros

53,000 Number of employees

MARCH 2020

35

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HENKEL

and TEMBO. Holbach has a clear idea of what he looks for when seeking to establish a mutually beneficial collaboration. “There must be long-term and sustainable benefits on both sides of the partnership for it to be successful,” he explains. “It’s important that there is a level of openness that develops trust over time. This is especially true when times are volatile, and it is where you see the true value in dedicated partners.”

With the manufacturing space set to continue to transform as the digital age continues to take shape, it’s vital 36

that companies adopt an agile and lean approach to ensure they don’t get left behind in a competitive and dynamic

“ It’s important that there is a level of openness that develops trust over time” — Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

MARCH 2020

37

market. Holbach is confident of what he anticipates the supply chain space to look like over the next few years. “It’s clear that we’re only at the beginning because I believe that data relevance is only going to increase further,” he says. “There will be greater visibility and transparency in the supply chain over the next few years and we must be ready.”

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LEADERSHIP

38

MARCH 2020

SMARTER MANUFACTURING: RISING TO THE CHALLENGE Nick Offin, Head of Sales, Marketing & Operations, Northern Europe at Dynabook (formerly Toshiba UK), examines the challenges smart manufacturers must overcome in their quest for increased productivity driven by digital transformation WRITTEN BY

NICK OFFIN

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39

LEADERSHIP

T

he manufacturing industry is on the

cusp of a new digital-first era. Technology is changing everything from design

to production. It’s no surprise then, that digital transformation has become top of the agenda for those working in the sector; and for good reason.

According to recent research by MIT, factory digitisation could provide digitally-savvy companies 38% higher revenue growth than those that have not yet digitised their business. The promise of increased employee productivity, faster time to market and more efficient operations is becoming too great for many to ignore.

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However, the road to a digital-first workforce isn’t an easy one, especially for manufacturing organisations who have traditionally relied on legacy systems and processes. Though digital transformation efforts are underway for some manufacturers, many obstacles remain a concern. The top barriers range from insufficient budgets and cybersecurity concerns to legacy systems and the adoption of new technologies.

Despite these concerns, manufacturers need to evolve with today’s increasingly competitive landscape in which consumers are demanding goods at a faster rate and of higher quality. Tackling the hurdles to digital transformation has never been more important. So, how can manufacturers overcome these challenges and successfully transform their business into a smarter organisation?

MARCH 2020

“ According to recent research by MIT, factory digitisation could provide digitally-savvy companies 38% higher revenue growth than those that have not yet digitised their business” Nick Offin, Head of Sales, Marketing & Operations, Dynabook Northern Europe

NO QUICK PAYBACK Digital transformation obviously doesn’t come without extra investment. It’s therefore unsurprising that a common roadblock on a manufacturer’s digital transformation journey is a lack of funds. For manufacturing businesses who are lucky enough to receive greater IT budgets, much of the attention is placed on the adoption of AI, machine learning and automation. However, while collaboration between workers w w w.ma nufa c t uri nggl o b a l. com

41

LEADERSHIP

This is dynabook CLICK TO WATCH

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1:18

42 and machines is a key area of

that completely overhauling an em-

development for manufacturing, it’s

ployee device strategy with new

also about change taking place at all

devices is an expensive and time-in-

levels – right down to the technologies

tensive process. Not to mention

that employees are using on a

managing the day-to-day device life-

day-to-day basis.

cycle management, which adds

Hardware remains a key part of any manufacturing business’ IT strategy.

significant complexity.

To overcome this, many manufac-

As manufacturing operations man-

turing businesses are turning to other

agement becomes increasingly

purchasing options, such as PC-as-a-

digital, production staff and non-fac-

Service (PCaaS). PCaaS, which can

tory floor teams alike need devices

encompass everything from mobile

that can keep up with the demands

devices to desktop PCs, is an Opex

of the modern manufacturing IT eco-

(operational expenditure) subscrip-

system. However, it’s a no-brainer

tion-based model that often includes

MARCH 2020

“ For devices that can keep up with the demands of the modern manufacturing IT ecosystem, many manufacturing businesses are turning to other purchasing options, such as PC-as-a-Service (PCaaS) which can encompass everything from mobile devices to desktop PCs” Nick Offin, Head of Sales, Marketing & Operations, Dynabook Northern Europe a full spectrum of services from purchasing and configurating to managing, refreshing and retiring devices. This means a business pays a monthly rate for the use of a vendor’s devices and additional services, rather than buying hardware outright (referred to as Capex). Organisations can benefit from updated technology, whilst being able to amortise device costs over time, as well as scaling

M E SSAG E S F RO M P WC

Digital Factories 2020 • Top management must lead digital transformation — start now • Implementing digital manufacturing means building a digital workforce • Companies make smarter decisions using predictive data analytics and machine learning • Technologies like cobots, digital twins or augmented reality drive leaner and more productive operations • Connecting factories internally and externally through an integrated MES is essential • High on the management agenda — 91% of industrial companies are investing in digital factories • Digitisation supports customer centricity and regional manufacturing • Digital factories strengthen “Made in…”

• No quick payback — digital factory investments are strategic with an ROI of two to five years • Companies expect efficiency gains of 12% over five years

up and down depending on the need. w w w.ma nufa c t uri nggl o b a l. com

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LEADERSHIP

ABOUT US

Dynabook Europe

44

Formerly known as Toshiba Client Solutions Europe, the Dynabook brand has a long established heritage in Japan.

As an industry leader, Toshiba launched the world’s first laptop computer, the T1100 in 1985, and followed it up with the world’s first notebook computer, the Dynabook J-3100 SS001 in 1989. These two portable computing innovations allowed people to safely and securely work anywhere they wanted and defined today’s mobile computing market. Ever since, Toshiba has always delivered award winning innovative products and services that integrate the latest technology

MARCH 2020

and design, whilst delivering outstanding quality and reliability.

Sharp Corporation obtained 80.1% of Toshiba Client Solutions in October 2018 and saw Yoshihisa Ishida, the Executive Vice President of Sharp, join the company as its new Representative Director, Chairman. Damian Jaume, President of Dynabook Europe GmbH leads the business in EMEA. Dynabook Europe offers a broad and collaborative product roadmap, including a broad range of mobile computing and mobile edge computing solutions.

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LEADERSHIP

“ Edge computing solutions enable manufacturers to gather, analyse and redistribute vast data sets and assist in turning them into actionable insights” Nick Offin, Head of Sales, Marketing & Operations, Dynabook Northern Europe

Manufacturers must keep up with the growing sophistication of cybercriminals and not let the fear of this challenge hold the industry back.

46

OVERCOMING KEY SECURITY CHALLENGES

But this is no easy task. As with any

The PCaaS model also provides a

facturing businesses consider security

potential solution to another common

from day zero and equip themselves

barrier to digital transformation in

with the right protective technologies.

manufacturing – security. PCaaS can

Devices which include advanced bio-

encompass data backup, recovery and

metric features and hardware-based

remote wiping, giving a manufacturer

credential storage capabilities pro-

the peace of mind that if the device is

vide an active first line of defence.

stolen, damaged or suffers a cyber-

Other security measures such as zero

attack that valuable corporate data

client solutions go even further and

can be both wiped or recovered.

help nullify data-related threats by

According to a recent survey, 50% of manufacturers have experienced data breaches in the past year. For manufacturing organisations, intellectual property (IP) is one of the most valuable assets. With many having vast amounts of data regarding products, patents, designs, suppliers, customers, data loss prevention is a primary worry for this sector.

MARCH 2020

IT project, it’s fundamental that manu-

withdrawing sensitive

data from the device itself. With infor-

data, as well as use it efficiently to

mation stored away on a central,

improve and automate decisions

cloud-based system, these solutions

in order to optimise output.

protect against unsolicited access to

So, what’s the answer for those

information if a device is lost or stolen.

who don’t have the resources to simply ‘rip and replace’ infrastructure

KEEPING UP WITH INNOVATION

and how can the value of data be un-

Manufacturing is adopting new

tapped? Edge computing solutions

technologies such as AR, 5G and

enable manufacturers to gather, ana-

IoT at a growing rate, which have

lyse and redistribute vast data sets

been the catalyst for business-wide

and assist in turning them into action-

digital transformation efforts. For

able insights.

example, AR has emerged as a

The pressure to keep up with inno-

powerful new tool to bridge the gap

vation and evolving market demands

between the digital and real worlds

is not new for manufacturers. Digital

for assemblers, operators, and

transformation will undoubtedly remain

technicians. However, reliance on

a major part of business conversations

legacy systems is posing a significant

in the manufacturing industry for

bottleneck for many manufacturers

years to come. With 90% of industrial

looking to build a digital-first business.

company leaders believing digitisation

The problem is that these new

offers more opportunities than risks,

technologies create vast amounts

the benefits for those embracing digi-

of data. Many manufacturers are

tal transformation are clear – they’ll

struggling to scale their IT

just need to be bold and make the

capabilities to process this

transformative move.

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M A N U FA C T U R I N G 4. 0

48

TOOLING UP FOR THE FUTURE How Kennametal is leveraging SAP solutions to build ‘smart factories’ comprised of connected systems and machines that enable real-time data visibility WRITTEN BY

MARCH 2020

DAN BRIGHT MORE

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M A N U FA C T U R I N G 4. 0

K

ennametal was founded on the strength of its technological innova-

tion. In 1938, following years of research, metallurgist Philip M. McKenna created a tungsten-titanium carbide alloy for cutting tools that provided a productivity breakthrough in the machining of steel.

“We’ve been providing tools and services for the aerospace, automotive and energy industries for more than 80 years,” confirms CIO Tom McKee. “Our products go into the manufacturing process to make products that we all use every day.” Kennametal’s 50

global operation supports 80,000 customers in 60 countries. McKee explains that his role is to oversee the modernisation of the company’s factories around the world. He’s well placed to lead this transformation, with decades of experience in manufacturing and supply chain management underpinning 14 years spent in IT roles at Kennametal.

“Our customers are demanding more,” he says. “Whether it’s tighter tolerances and specifications, improved on-time performance and deliveries or simply higher overall quality. We needed to react and make an investment in smarter factories. A big part of that investment is in newer equipment, automation, whether it’s moving parts, moving product from one work cell to the MARCH 2020

51

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M A N U FA C T U R I N G 4. 0

“ OUR CUSTOMERS ARE DEMANDING MORE. WHETHER IT’S TIGHTER TOLERANCES AND SPECIFICATIONS, IMPROVED ON-TIME PERFORMANCE AND DELIVERIES OR SIMPLY HIGHER OVERALL QUALITY. WE NEEDED TO REACT AND MAKE AN INVESTMENT IN SMARTER FACTORIES” Tom McKee, CIO, Kennametal

other. But we came to the realisation early on that there’s more to this transformation

52

than simply buying new equipment and throwing some robots on the shop floor.”

SMART FACTORY FRAMEWORK Kennametal’s approach has been to create a smart factory framework based on four pillars: machinery and automation, skillsets and resources, a solid OpEx foundation, and systems integration led by IT as the connective tissue to pull the strategy together.

“I can throw all the data in the world at people, but if they don’t know how to use the information to make proactive decisions, to understand the situations they need to address, we can’t progress, so OpEx is a big part of the MARCH 2020

Kennametal: Building competitive advantage and brand awareness with SAP SuccessFactors solutions CLICK TO WATCH

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1:44

53 journey to modernise our factories,”

collect, consolidate and present

confirms McKee. “When you have real

actionable data to internal audiences

time data coming off the shop floor, it’s

from shop floor to corporate office.

a whole different environment where

This visibility is enabling efficiencies,

you have to ask: What does our work

increasing throughput and improving

structure look like? What are the

overall operations as a result of

positions and skills that we need? We

real-time decision-making that wasn’t

need to answer these questions to

previously possible.

make sure our four pillars are working in harmony.”

Kennametal has run its business on

“SAP’s tools play a key role in enabling us to provide the right real-time insights to offer an optimised

SAP’s ERP system for the past 20

schedule; not only based on available

years. SAP’s Manufacturing Integration

equipment but the right available

Intelligence (MII) is now the founda-

manpower, components and raw

tional layer that allows the company to

materials,” says McKee. “Additionally, w w w.ma nufa c t uri nggl o b a l. com

M A N U FA C T U R I N G 4. 0

we’re leveraging some of the tools that

PRODUCT LIFECYCLE MANAGEMENT

come with the basic ERP, the quality

SAP’s Product Lifecycle Management

management module, plant mainte-

(PLM) tool is at the heart of Kennam-

nance — all of these become part of

etal’s design to manufacturing

the overall system layer that we’re

process. “Whether it’s taking the

using to start running our initial smart

drawing information, other product

factories plants. Then, as we continue

process data that may reside, for

to optimise the SAP tools at the plants

example, in the Siemens NX system,

currently in our scope, how do we take

how do we take the design data, the

those learnings and scale that ap-

engineering data, bring that into PLM,

proach to all of our factories?”

capture our product data that’s in the

54

MARCH 2020

D ID YOU KNOW

Kennametal: leading with innovation • I n 1946, the company introduced the Kendex line of mechanically held, indexable insert systems that accelerated tool changing and increased machining precision.

• Kennametal’s unique, patented thermit process for producing impact-resistant macrocrystalline tungsten carbide today remains the best way to produce extremely tough tool materials for demanding applications such as mining.

• A leader in the development of silicon-nitride based “sialon” ceramics for the machining of exotic aerospace materials.

• First to develop cobalt-enriched substrates for coated inserts, was first to commercially introduce physical-vapordeposition (PVD) coated cemented carbide cutting tools and created the first commercially viable diamondcoated carbide inserts.

• L eader in the development of quick-change tooling systems that today lead the world in versatility, speed and accuracy.

• Kennametal maintains its technological leadership through its $30mn Technology Center in Latrobe, Pennsylvania, and complementary facilities in various locations around the globe — dedicated to rapid development of products engineered to meet specific customer requirements.

• Kennametal has been named a four-time best-practice partner for “excellence in world-class product development and portfolio management processes” by the APQC, a non-profit organisation and internationally recognised leader in benchmarking, knowledge management, measurement and quality programmes. w w w.ma nufa c t uri nggl o b a l. com

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M A N U FA C T U R I N G 4. 0

SAP classification system, and then

the quality plan, inspection parameters,

feed that onto the shop floor?” asks

tooling and fixturing information, and

McKee. “SAP’s PLM is a significant

product data to better run the shop

part of building our capabilities where

floor,” adds McKee.

we’re taking product data, process data, engineering information, and

TWO-PLATFORM STRATEGY

we’re building automated dynamic

Kennametal is investing in a host of

routings.”

tools for a hybrid solution for its digital

Instead of manually building out a

56

customer platform and already

routing and a bill of material for

deploying C/4HANA, Ariba, Success-

manufacturing, Kennametal is now

Factors, Fieldglass and piloting the

leveraging the digitised data governed

use of Qualtrics. “Everything we’re

by its engineering and technical teams,

doing on our smart factory journey,

to find the optimal process. “It allows

where we’re leveraging a two-platform

the data to provide the visibility to help

(SAP and Microsoft) strategy, we’re

drive the optimal decision to help us

trying to make the best of SAP and the

bring together design information,

Microsoft products. It’s why the

manufacturing parameters and data,

Embrace announcement (aimed at

MARCH 2020

“SAP’S PRODUCT LIFECYCLE MANAGEMENT IS A SIGNIFICANT PART OF BUILDING OUR CAPABILITIES WHERE WE’RE TAKING PRODUCT DATA, PROCESS DATA, ENGINEERING INFORMATION, AND WE’RE BUILDING AUTOMATED DYNAMIC ROUTINGS”

more easily migrating SAP ERP application and SAP S/4HANA customers from on premise to public cloud with Microsoft Azure) is such a big win.”

On the Microsoft side, Kennametal has recently deployed the Modern Workplace and is now a Microsoft Teams and Collaboration company.

“We’ve moved SAP to Microsoft Azure last summer, which has opened up a

Tom McKee, CIO, Kennametal

whole new world from an Azure IOT perspective with the visibility insights we can have from a data and analytics

Milling Titanium Ti6Al-4V with 8 cutting edges per insert!

CLICK TO WATCH

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1:58

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M A N U FA C T U R I N G 4. 0

“ CHANGE ISN’T EASY, BUT THROUGH EXPERIENTIAL TRAINING WE CAN EXPLAIN HOW NEW SOLUTIONS RELATE TO A TEAM’S DELIVERABLES. IT’S GOT TO BE HANDS-ON. THEY’VE GOT TO SEE IT, USE IT OVER AND OVER AGAIN; IT CAN’T BE A ONE AND DONE” Tom McKee, CIO, Kennametal 58

perspective,” adds Mckee, who notes

return on that investment,” warns

that while these two partners are

McKee, who’s keen that the company

critical, it does take a full ecosystem

pillar for skillsets and resources is

to deliver its smart factory framework.

supported. “We’ve got a strong focus

“Whether it’s AT&T for the network,

on change management and driving

Palo Alto for our firewalls, or Adobe for

adoption of the tools. We have to help

digital content management, integra-

employees understand how these new

tion partners like eLogic are helping us

capabilities help them to perform

with our smart factory, PLM and digital

better in their daily jobs. Change isn’t

customer needs. You can’t do it alone.”

easy, but through experiential training we can explain how new solutions

TRAINING FOR THE FUTURE

relate to a team’s deliverables. It’s got

“The system and the technology are

to be hands-on. They’ve got to see it,

great, but if you can’t operationalise it

use it over and over again; it can’t be a

and get the adoption, it’s just expen-

one and done. Training has to be an

sive technology that no one is going to

ongoing iterative process of feeding

use and you’re not going to get the

folks more information and more tools

MARCH 2020

— let them work with it, play with it and

machine learning, artificial intelli-

come back with questions and

gence? All huge opportunities yet to

insights.”

come for us, whether it’s managing the shop floor, gathering insights, the data

CONTINUING THE DIGITAL JOURNEY

telling us about customer buying

Mckee’s team are planning a series of

patterns, how we do a better job of

transformation projects to continue

forecasting demand, and understand-

the roll out of Kennametal’s smart

ing what our customers need. We’re

factory framework. “We now have four

just scratching the surface of the value

plants at various stages of maturity,”

we can bring to our operations and our

he confirms. “We have several more

customers.”

plants next in line. At the same time, we’re in the early stages of our digital customer experience project. Growing those programmes to maturity will be key for us. Next, we need to ask how we can leverage augmented reality, w w w.ma nufa c t uri nggl o b a l. com

59

AI

60

AI innovation in the automotive industry WRITTEN BY

MARCH 2020

DAN BRIGHT MORE

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AI

Manufacturing Global sat down with BMW Group’s Head Manufacturing Global sat down of BMW Artificial Intelligence with Group’s Head Innovation, Matthias Schindler, of Artificial Intelligence at the Connected Manufacturing Innovation, Matthias Schindler, Leaders Summit in Berlin

at the Connected Manufacturing Leaders Summit in Berlin

62

A

t BMW Group, artificial intelligence (AI) plays an important role in

leveraging insights from smart data analytics.

Head of Artificial Intelligence Innovation, Matthias Schindler leads these efforts across BMW’s production system at 31 sites in 15 countries all over the world. “We are focused on object detection to improve quality. We’re aiming to reduce rework, accelerate systems and improve our production processes. In general, we only focus on production, so not the car or product development itself, but all facets of production, including all the technology - starting from press shop, through the body shop and paint shop, to the final assembly, and all the support functions along that production journey.”

MARCH 2020

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AI

“ The artificial neural networks are the focal point to enable this high robustness of quality inspection and the flexibility of the applications themselves” 64

— Mathias Schindler, Head of Artificial Intelligence Innovation, BMW Group

OPTIMISING QUALITY Schindler explains that improving quality inspection has several strands across the production process. “We want to make it all more robust,” he says. “The automated inspections we have implemented so far allow us to check the configuration of the car is correct as far as the customer order is concerned. We have one billion possibilities to configure with the new BMW 3 Series. So that means the correct rims, seat, flooring and so on.

In the past, we had automated inspections which were mainly scale and pixel-based comparisons. Object detection with AI has helped us to optimise this process.”

In these processes, AI evaluates component images in ongoing production and compares them in milliseconds to hundreds of other images of the same sequence. This way, the AI application determines deviations from the standard in real time and, for example, checks whether all required parts have been mounted in the right place.

Schindler points out that the increasing multitude of manual inspection tasks needed a solution to stop the error rate

MARCH 2020

BMW Group: Artificial Intelligence Identifies Model Designations at BMW Group Plant Dingolfing CLICK TO WATCH

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65

increasing and to allow employees to

MACHINE LEARNING IN THE PRESS SHOP

spend more time on creative work. “We

BMW Group’s home plant in Munich

spoke with our foremen and asked how

features a press shop which turns over

we could create more time to directly

30,000 blank sheets of metal into

support our employees instead of only

vehicle body parts each day. Since

controlling visual inspection,” says

2019, at the start of production each

Schindler, explaining the genesis of his

blank is given a laser code so the

team’s approach. The old system relied

resulting body part can be identified

on a laborious database process which

throughout production. This code is

wasn’t effective and was ultimately

picked up by the iQ Press system,

hampered by the cost of hardware,

which records material and process

including industrial standard cameras.

parameters – such as the temperature

“However, these were not needed with

and speed of the presses and the

respect to AI,” adds Schindler.

thickness of the metal and oil layer. w w w.ma nufa c t uri nggl o b a l. com

AI

66

“ We’re aiming to reduce rework, accelerate systems and improve our production processes across all facets of production, from press shop, through the body shop and paint shop, to the final assembly, and all the support functions along that production journey” — Mathias Schindler, Head of Artificial Intelligence Innovation, BMW Group

MARCH 2020

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AI

The parameters are then related to the quality of the parts produced.

Schindler explains that in the press

PREDICTIVE MAINTENANCE IN THE BODY SHOP “With the help of retro-fitted sensor

shop they are making use of deep

kits we have been able to bring our

learning and AI to check for micro

equipment into the 21st century,” says

tears and oil and metal stains. “We’ve

Schindler. Body shop robots are fitted

categorised six single features using

with a combined total of over 600

conventional greyscale-based image

welding tongs. It’s costly and time

processing,” explains Schindler. “This

consuming if the tongs ever need

has enabled us to have a 100% robot

replacing unexpectedly, as many of

system which picks out only irregulari-

the robots are difficult to access so

ties that require action.”

dismantling and replacing their tongs

68

MARCH 2020

69

can take hours. Maintenance special-

Innovation and Digitalisation Officer at

ists at the Munich plant have now

the Munich plant. “So, we can plan any

fitted sensors to all the tongs to

replacements better and potentially

measure friction levels three times per

schedule them for a production break.”

shift and report any abnormalities.

Potential machine failures are predicted

SENSORS IN THE PAINT SHOP

by the constant evaluation of the data

Schindler believes using data analytics

produced. “Because we have the

to focus on quality is vital to avoid cost-

sensors and collect their data in a

ly rework. Vehicle bodies can pick up

cloud, we can now monitor round-the-

dust particles as they make their way

clock whether any maintenance work

to the paint line, affecting the quality of

is needed,” explains Martin Hilt,

the finish. Previously, potential defects w w w.ma nufa c t uri nggl o b a l. com

AI

had gone undiscovered but now every paint shop system incorporates sensors that measure dust particle levels and allow the quality of paintwork to be predicted. “We’re now collecting data from more than 1,000 single process parameters from the pressure inside the painting process to temperature changes and humidity levels,� reveals Schindler. A further special sensor developed at the Munich plant has been measuring dust levels on body parts at the beginning of the 70

painting process, before and after the emu feather rollers. When dust levels are too high in the future, car bodies will pass through the paint shop untreated and be sent for further cleansing.

AI-BASED IMAGE RECOGNITION IN ASSEMBLY The algorithms used are relatively expensive to develop, but AI-based applications are gradually replacing permanently installed camera portals.

Implementation is straightforward.

A standard mobile camera is all that is required to take the relevant pictures during production. The AI solution can be set up quickly too. Employees take MARCH 2020

pictures of the component from different angles and mark potential deviations on the images. This way, they create an image database in order to build a neural network, which can later evaluate the images without human intervention.

Schindler explains that employees do not have to write code; the algorithm does that virtually on its own. At the training stage, a high-performance server calculates the neural network from around 100 images, and the network immediately starts optimising. After a test run and some adjustments, the reliability reaches 100%. The learning process is completed and the neural network can now determine on its own whether or not a component meets the specifications. “The artificial neural networks are the focal point to enable this high robustness of quality inspection and the flexibility of the applications themselves,” confirms Schindler.

BMW INNOVATION LAB “We develop many parts of the algorithms we use by ourselves,” explains Schindler.

“The BMW Innovation Lab is crucial for our success because they have students w w w.ma nufa c t uri nggl o b a l. com

71

AI

starting internships, studying for a Master’s thesis or even a Doctoral thesis, who are experts in deep learning and AI. They are capable of writing code in a manner that can be reused. It’s an important collaboration for us.”

BMW is also sharing its network architecture code on GitHub to encourage further collaboration across the automotive industry with other companies also exploring AI. “We want to encourage them to bring on their algorithms, which could be 72

APIs for some other framework, for

“ We want to demystify the AI process – it’s not like a Terminator movie – training will be important for the next 10 years and more” — Mathias Schindler, Head of Artificial Intelligence Innovation, BMW Group MARCH 2020

example. We want to accelerate the open innovation process and share it with the entire world,” says Schindler.

“There are many scientific and practical challenges being addressed here with new results every second week. Everything is available on a public basis, more or less for free.

This was one of the reasons why we wanted to give something back.”

TRAINING FOR THE FUTURE Schindler’s background in mechanical engineering, IT consultancy, and writing software for manufacturing, alongside

73 experience with 3D digitalisation in

targets for this year is to really educate

previous production roles, gives him a

the managers in a way that they know

deep understanding of the needs of all

what they can expect from AI and how

areas of BMW Group’s automotive

it can help them in the future. We want

plants. He believes understanding

to demystify the AI process – it’s not like

“both worlds” is key to the company’s

a Terminator movie – training will be

continued success and is keen to

important for the next 10 years and

broaden training for workers who are

more. There is no free lunch, you have

now seeing the benefits that semi-au-

to invest time to achieve the benefits.

tomated processes and AI can bring.

And that’s a journey we are happy to be

“They must know that AI is not a magic

on at BMW Group.”

box to solve every problem,” he warns.

“We have to have a very dedicated process and make the effort in this introductory phase. One of our main w w w.ma nufa c t uri nggl o b a l. com

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Cloud Tools for Manufacturers THE SERVERCENTRAL TURING GROUP COUNTS DOWN 10 KEY SOLUTIONS MULTIPLE CLOUD SERVICE PROVIDERS CAN OFFER MANUFACTURERS LOOKING TO FURTHER EMBRACE INDUSTRY 4.0

WRITTEN BY

ERIC DYNOWSKI

MARCH 2020

Eric Dynowski is the Chief Technology Officer at ServerCentral Turing Group (SCTG). SCTG offers cloud-native software development, AWS consulting, cloud infrastructure, and global data centre services.

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T O P 10

Data and Analytics Platform Overview and Customer Examples (Cloud Next ‘18) CLICK TO WATCH

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1:27:57

DATA ANALYTICS PLATFORMS

Regardless of which cloud services you implement, you’ll need a way to analyse and interpret the massive amounts of data your cloudpowered systems let you collect. Look no further than cloud-based data analytics platforms, which are often easier and more cost-effective to use for cloud data than traditional software. Whether you’re hoping to crunch specific numbers every week or run a variety of models on your data to discover new opportunities, cloud-based data analytics platforms can help. Most cloud providers offer services that let you handle both data research and the visualisation of your findings.

MARCH 2020

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09

AUDIT & COMPLIANCE SERVICES

Once you’ve set up security and identity and access management services, you’ll have to ensure that your setup is, and stays compliant with whatever internal or regulatory standards you have to meet.

Cloud providers have a solution for this too: audit and compliance services. These services help ensure that your operations are compliant with security policies and that you stay accountable for what happens across your systems.

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T O P 10

08

IDENTITY & ACCESS MANAGEMENT

Related to your larger security services, you’ll need to set up systems for managing who has access to what and how people identify themselves to get into your system. Your identity and access management strategy should be just that: strategic. It should follow the larger principles that govern the organisation and ensure at least the level of security and control that your physical plant requires.

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Identity and Access Management: Technical Overview CLICK TO WATCH

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17:52

07

79

SECURITY SERVICES

The benefits of operating a cloud-powered manufacturing company are many: increased efficiency, reduced waste, improved ROI for various operations. But connecting your equipment to the cloud also comes with certain risks; security is chief among them. If smart systems can send commands to your equipment from anywhere, it’s conceivable that a bad actor with the right credentials, or enough hacking prowess, could too. That’s why it’s so important to ensure your business makes use of appropriate security services. What you need depends on the work you do and the provider you’re using: an on-demand manufacturer of customer-generated designs will need to ensure IP protection for its customers’ designs, for example. A manufacturer that produces only its own products may not even have IP in the cloud.

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T O P 10

Industrial IoT - Digital Transformation in Manufacturing CLICK TO WATCH

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06

LOCAL IOT

Cloud-connected equipment is essential for using cloud services, but for some high-speed manufacturing processes, the speed of an external internet connection is too slow. The half-second it takes for data to travel from a piece of equipment to your data lake may work for weekly reporting, but if that equipment is capable of placing 300 objects per minute, half a second is too slow for any kind of real-time operations. That’s where local IoT comes into play.

It enables greater resilience and faster performance in scenarios where both are essential. It works by creating a mini, in-house cloud to ensure that your devices are always connected and that the connection is lightning-fast.

MARCH 2020

05

TIME SERIES DATABASES

Time series databases are highly specialised databases for logging information over time so that you can query it for a specific period. The classic example is the stock ticker, which captures the exact value of a given stock at a moment in time and makes it possible to zoom in and out over different time periods. In manufacturing, seeing how a plant is operating over time and in specific time periods can be essential to spotting trends and identifying areas for improvement. The key to using time series databases well is understanding which types of information they’re best suited for. This is the kind of thing a cloud consultant can guide you on if you’re uncertain.

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T O P 10

04

EVENT STREAMING SERVICES

Think of event streaming as a way of connecting your entire team to make them more efficient. This service lets manufacturers define events (which can be anything from a product moving into a different stage, to an oven temperature getting too high or low, or an order coming in) and then set up an automated system of publication and notification as those events occur. For example, a new order at a drywall manufacturer might trigger a notification to the materials team that gypsum is low and more needs to be ordered. It might even submit an automated order. Sometimes referred to as a ‘publish and subscribe’ or ‘pub and sub’ service, 82

event streaming lets machines publish messages to various channels and lets other intelligent systems and programs subscribe to channels that are relevant to their tasks, which makes it possible to network distributed intelligent systems.

MARCH 2020

Machine Learning: Living in the Age of AI | A WIRED Film CLICK TO WATCH

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41:16

03

83

MACHINE LEARNING

Machine learning lets computers perform operations that require more complex analysis than a simple true/false scenario. Unlike traditional computer models, machine learning models get better as they operate thanks to the data they process. This happens without additional human programming. There are thousands of potential machine learning use cases for manufacturers, from automating a QA line with computer inspections to making recommendations for when equipment can be taken offline for repairs to have the smallest possible impact on the business as a whole.

Used judiciously, machine learning can greatly increase an operation’s efficiency and reduce waste.

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T O P 10

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Let’s Talk Big Data in manufacturing: transforming the industry and operations CLICK TO WATCH

MARCH 2020

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02

DATA LAKES As your IoT-powered equipment operates, it generates a tremendous amount of data.

That data can be extremely valuable to your business if you find a way to capture and analyse it. Data lakes are an excellent way to do this: they allow a manufacturer to capture data (from the factory floor or anywhere else in the business) in real time and store it for future analysis. A key benefit is that they empower you to use your data any way you see fit; from creating monthly reports on materials waste to setting up real-time queries to inform a later step in the manufacturing process.

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T O P 10

01

INTERNET OF THINGS ( IOT ) Cloud services are most valuable to manufacturers with already computerised operations. Specifically, those

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operations should rely on equipment that’s part of theiInternet of things (IoT), meaning equipment that has an internet connection and can send and receive data from other sources.

A cloud-empowered manufacturing organisation requires at least some IoT-powered devices. It’s what makes it possible for managers to send commands from anywhere – not just the factory floor. It’s also what enables equipment to receive those commands and then behave differently, without a human reprogramming them.

MARCH 2020

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The Manufacturing Sector (B2C) | I.O.T. Powering The Digital Economy CLICK TO WATCH

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DAN BRIGHTMORE from around the world 12–13 MARCH

Industry of Things World USA [ SAN DIEGO, USA ] [ MANCHESTER, UNITED KINGDOM ] Returning for its fifth edition, Industhe latest developments impacting

Rethink! Smart Manufacturing Europe

industrial IoT on business models,

[ BERLIN, GERMANY ]

manufacturing processes and opera-

More than 100 plant managers and

tions across major industries. The

production leaders from across

event will focus on IIoT strategy, smart

Europe will be in attendance to explore

factory readiness for SMEs, Industry

myriad solutions for tomorrow’s digi-

4.0, operational excellence, robotic

tal transformations. Siemens’ Head

process automation (RPA), AR and

of Global Manufacturing Stephan

VR, and legacy systems and IoT Net-

Schlaub, Airbus Head of Digitilisation IT

works. Industry leaders sharing their

Henrik Fransson, and Hugo Boss Man-

knowledge this year include: Mark

aging Director Joachim Hensch will be

Relph, Head of Business Develop-

among the industry leaders assessing

ment and Strategy – IOT at AWS;

the future of smart manufacturing and

Kohler’s VP for Technical Services

seeking answers to some of the big

Amy Meyer; and Florian Michahelles,

questions posed by Industry 4.0. Key

Siemens’ Head of Research Group,

topics to be covered at Rethink! include

Artificial and Human Intelligence.

smart future factories, connected

try of Things World USA highlights

88

16–17 MARCH

machines, the future for additive manufacturing, and cyber risk management.

MARCH 2020

24–25 MARCH

The American Manufacturing Summit [ CHICAGO, USA ] The American Manufacturing Summit will

have been tailored to change the culture.

welcome attendees from leading global

Great networking opportunities.” This

companies such as 3M, Duracell, Kraft,

year, Caterpillar Group’s President Den-

Boeing and Toyota. Each will join hun-

ise Johnson, GE Appliances’ COO

dreds of delegates for two days of

Melanie Cook and Nestle Waters’ EVP

leadership-focused strategising, cover-

Manufacturing Alexander Gregorian will

ing the key themes of manufacturing

deliver keynotes examining the pathways

profitability and innovation, talent and

to embracing innovation, lean manufac-

capability and plant floor optimisation.

turing, managing and upskilling the

Last year’s edition proved a hit with Cob-

workforce of the future, and the chal-

ham’s Director of Operations and Supply

lenges of integrating new technologies

Chain Arne Vogt: “A great conference

while establishing standardisation across

that provided insight on how lean tools

multiple manufacturing operations.

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EVENTS & A S S O C I AT I O N S

31 MARCH–1 APRIL

Industry 4.0 Summit and Expo [ MANCHESTER, UK ] The UK’s leading conference for the

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7–8 APRIL

North American Manufacturing Excellence Summit (NAMES) [ CHICAGO, USA ]

development of digital strategies in

Sponsored by the likes of GE Digital,

manufacturing will welcome over 400

Oracle, Siemens and SAP, NAMES

delegates to the Summit from across

20 will focus on: building and main-

the globe, representing government

taining competitive advantage; lean,

authorities, business, academia and

operational excellence, and CI pro-

industry associations ready to share

grams; training tomorrow’s leaders;

their best practice to implement

leveraging new technologies to make

change. This year’s speakers include

a difference; managing a global foot-

Cormac Whelan, Nokia’s CEO for

print; and workforce development.

UK&I and Dale King, CTO for Emerg-

Among those providing thought lead-

ing Technologies at Airbus. Running

ership to help delegates better

in parallel, the Expo will showcase

understand the overwhelming array

the latest products and services for

of solutions to meet manufacturing’s

Industry 4.0, IIoT, smart factories and

challenges will be: Ana Corrales,

the future of manufacturing. Hosting

COO, Consumer Hardware at

2,500 supply chain professionals it’s

Google; Gary Johnson Chief Manu-

the place to be to find out more about

facturing and Labour Affairs Officer

the latest advances in automation,

at Ford Motor Company; and Ronda

robotics, sensors, digital twins, virtual

Wright, Director, Process Improve-

reality, 3D printing, big data, predictive

ment at the Coca Cola Company.

maintenance and more.

MARCH 2020

20– 22 APRIL 2020

Global Manufacturing and Industrialisation Summit [ HANNOVER, GERMANY ]

13– 14 MAY 2020

World Procurement Week 2020 [ LONDON, UK ] Back for its second year, World Pro-

The Global Manufacturing and Industri-

curement Week 2020 has quickly

alisation Summit (GMIS) was established

built a reputation for gathering

in 2015 as a joint initiative by the United

esteemed procurement visionaries,

Arab Emirates and the United Nations

influencers and practitioners. As the

Industrial Development Organisation

industry’s only gathering that caters

(UNIDO). GMIS aims to forge links

to the wider procurement team, from

between manufacturers, governments

CPOs to strategy heads and category

and NGOs, technologists and those

leaders, London will be ready to wel-

invested in promoting Industry 4.0 to

come 1000+ industry leaders looking

support manufacturing’s regeneration

to redefine procurement excellence.

of the global economy. Themes for this

Speakers at this year’s congress

year’s summit include: sustainable

include: Amanda Davies, Global Indi-

industrial development; smart machines

rects Chief Procurement Officer at

to optimise production; 5G technology;

Mars Inc; Bob Murphy, Chief Procure-

additive manufacturing; and the indus-

ment Officer at IBM; Alexandra Lopez,

trialisation of Africa. Among the keynote

Chief Procurement Officer and Vice

speakers sharing their insights will be

President of Global Procurement

Siemens’ CEO Joe Kaeser; Matthias

Services at CISCO; Miguel Gonzalez,

Schindler, Head of AI at BMW Group;

Chief Procurement Officer at DuPont;

and Harold Kayser, Chairman and Sen-

and many more.

ior Partner at PwC.

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T H E C O C A - C O L A C O M PA N Y

92

Solving business challenges with technology WRITTEN BY

WILLIAM SMITH PRODUCED BY

LEWIS VAUGHAN

MARCH 2020

93

Photo © Coca-Cola Italy w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

Damiano Marabelli, Central & Eastern Europe Business Unit CIO, The Coca-Cola Company, discusses IT’s role in facilitating a ‘Total Beverage’ transformation

T

he Coca-Cola Company (TCCC) needs no introduction, seeing as it is one of the world’s most recognisable brands. Main-

taining that privileged position requires the input of all of its different departments, and, in this regard, IT is no different. Damiano Marabelli is in charge of the company’s IT operations in one of its biggest 94

business units (BUs), as he explains: “I joined TCCC as ‘Central & South European BU IT Client Engagement Director’ at the beginning of 2013. Then I was asked to structurally merge the IT operations of the above BU with the Russia, Ukraine and Belorussia BU, creating the second biggest BU outside North America: the Central & Eastern Europe Business Unit (CEE BU) with its headquarters in Athens”.

The CEE BU operates in one of the most diverse business contexts in the world, encompassing 411 million people in 26 countries (four — Italy, Russia, Poland and Romania - account for more than half of the CEE business); 23 official languages; 16 currencies; only seven markets above a population of 10 million; and four main bottler partners (SIBEG in Sicily, CCBS in Albania, GSD in Malta and CCH in all other BU territories).

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95

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Damiano is guided in his role by the objectives previously set out by Barry Simpson, Senior VP and Chief Information Officer at TCCC, who two years ago articulated a digital transformation programme known as ‘Digitizing for Growth’. The three main objectives of the program are: ‘digitizing for the Consumer’ by creating more personalised, predictive and emotive experiences by harnessing data and analytics; ‘digitizing for the Customer’ by building new routes to market and forging additional partnerMARCH 2020

CEE BU – Connected Cooler Demonstrator CLICK TO WATCH

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2:08

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ships alongside strengthening existing

System”, in short the network involves

ones; and ‘digitizing the Enterprise’ by

TCCC supplying beverage products

investing in capabilities to create an

to the bottlers which then add other

agile, engaging and productive work-

ingredients, package the products

place. To achieve those aims, TCCC

and distribute them through four main

is focused on continued investment

market channels, known as: Super-

in digital marketing, ecommerce

markets, Convenience, Discounters

platforms, scalable sales and com-

and HoReCa (including bars, pubs, res-

mercial technology.

taurants and cafeterias). While gross

TCCC’s unique relationship with

profits for bottling partners are often

its bottling partners is another

healthy, operating margins are much

important consideration for its

thinner, which leads TCCC to pursue

digital transformation. Together

innovations. “TCCC invests heavily in

referred to as “The Coca-Cola

category development, both creating w w w.ma nufa c t uri nggl o b a l. com

BUILDING ENTERPRISES FOR THE DIGITAL AGE Triveneto Servizi was established by Roberto Bontempi in Spinea, metropolitan city of Venice, in 2012. The company specialises in ICT workplace maintenance and mission critical services for multinational corporations.

More recently, Triveneto Servizi has invested in leading-edge skills, focused on developing FMCG image recognition solutions, Blockchain payment systems and high-speed fiber connectivity.

LEARN MORE

TRIVENETO SERVIZI & COCA-COLA ITALIA CASE STUDY EXPO 2015 The main activities carried out include: • Installation of laptops, desktops, printers, videoconference Coca-Cola devices.

• 24/7 Assistance during the event on the above materials and on the software’s installed with an onsite team of IT senior technicians.

• Project managing activity in preparation of the event (contact with the vendors, managing of the offers, collaboration with Telecom & CISCO in the creation of the network architecture).

There has never been a more exciting time to work with technology. In the past, innovation was limited by the capabilities of hardware and software - now it’s only limited by the imagination.

Today, mobile technology, the cloud, intelligent machines, social media, Internet of Things and emerging technologies make almost any idea possible.

Roberto Bontempi, with his 30 years of experience in building ICT companies, has been a premium partner of Coca-Cola Italia for seven years. From his Milano office, and in cooperation with his senior team, coordinated by Andrea Lombardo, Bontempi takes care of all IT desk site support services.

This facilitates all digital collaboration capabilities and technology consumerisation programmes from CocaCola’s Corporate IT, and makes the Milano employees more productive, digitised and connected. During 2020, Triveneto Servizi will fully unlock the power of the smart working paradigm in Coca-Cola Italia, promoting the fast adoption of all apps available in the Coke app store.

One of the most remarkable achievements of Triveneto Servizi and Coca-Cola Italia’s collaboration has been the ICT support provided during the preparation-executionclosure of the EXPO event for the entirety of 2015. The main features of the service provided were the Coke EXPO pavilion onsite installation, and maintenance of the IT equipment and software provided by Coca-Cola, in order to create a Coca-Cola office area, applying the Coca-Cola small office standard configuration.

The Coca-Cola Pavilion, built for EXPO Milano 2015, celebrated the company’s tradition, in line with the theme of the exposition “Feeding the Planet, Energy for Life”.

This was a stage upon which the company displayed its sustainability model – based on the promotion of wellbeing, protecting the environment and building stronger communities – in an experiential way.

The Pavilion - standing 12 metres high and covering 1,000 square meters of surface area, was constructed of environmentally sustainable materials including wood, glass and water to create an iconic space that was simultaneously contemporary and innovative.

The outer walls, made of glass and wood, recreated the Coca-Cola logo and the contour silhouette of the historic glass Coca-Cola bottle, which celebrated its 100th anniversary in 2015. Visitors to the pavilion were led along an interactive journey where they participated in the discovery of Coca-Cola world and learned about the company’s values.

The building outlined the dimensions of a basketball court and, at the end of EXPO, became a new space that the Milan community of Famagosta now uses for physical activities.

Triveneto Servizi has a vision that inspires all ICT services of its portfolio: “expect the same technology experience at work as we have elsewhere in our lives”. This means differentiating ICT services – more green, more social, more collaborative, more mobile and more reliable – that drive innovation for productivity and growth.

LEARN MORE

T H E C O C A - C O L A C O M PA N Y

innovative packaging solutions and

few years is Price-Profit-Volume

fostering brand development,” says

Simulator and Assortment Optimisa-

Marabelli. “Given its multi-segmented

tion. Powered by Microsoft solutions

shopper and customer base, TCCC

including Azure, PowerBI and the

must spend heavily on market research

.NET framework, the software lever-

— it’s necessary for TCCC to stay ahead

ages an experience whereby CEE

of changing market trends, consump-

BU and Coca-Cola Hellenic Bottling

tion behaviour and competitive tactics.”

Company worked with McKinsey to

The close relationship with bot-

build scenarios and volume projections

tlers extends to joint IT projects. One

for profitability and margin improve-

key innovation introduced in the last

ments. “Revenue Growth Management

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MARCH 2020

“ It’s necessary for TCCC to stay ahead of changing market trends, consumption behavior and competitive tactics” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

(RGM) is the core business process in The Coca-Cola System,” Marabelli explains. “It maximises system revenue by systematically identifying pockets of value and by activating offerings that most profitably convert shoppers into buyers. The essence of RGM is in understanding consumers’ perception of product value and accurately aligning product prices, placement and availability with each

E XE CU T I VE PRO FI LE 101

Damiano Marabelli Damiano has broad IT, business and change management experience through various positions he held for more than 15 years within the Whirlpool Corporation. He holds a college degree in Computer Science and an Executive Master Business Administration degree specialising in ICT Strategy, Governance and Management from the Polytechnic-University in Milan. In addition, he has earned a ccOPEX (Customer-Centered Operational Excellence) Six Sigma Black Belt certificate and an Online Masters in Social Media Communication from Il Sole24Ore business school in Milan. 51 years old, he grew up in a small lake town near Varese, Northern Italy, where he continues to live with his family.

Married with one son, Damiano is a strong tennis player and passionate about historical and philosophical essays.

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T H E C O C A - C O L A C O M PA N Y

Photo © Coca-Cola HBC 102

customer segment. These simulation

“ It no longer makes sense to think of IT as a separate entity from marketing, finance or supply chain” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

MARCH 2020

and optimisation capabilities support this process and have already been rolled-out across several other BUs and bottlers.” RGM will continue to be a focus, with a new generation of RGM analytics being designed to harness AI and machine learning to elaborate on insights and realise profits.

Consumer-facing technology has also been a focus, as with the company’s recently launched app aimed at teenagers. “During 2019 the brand new Coca-Cola app was active

“ Ipis acest volorepta doluptia quation elio repelestiur acerecti aut aborent occustrum quoditi ut eiciaes esi quibus aditiam util” — Name of Person, Position and company

103

in 17 CEE markets, fully leveraging

1 March 2019, more than 1.6 million

the business unit’s digital market-

consumers have installed the app, with

ing ecosystem that also includes a

more than 250,000 of them using it

GDPR-compliant consumer database,

actively every month. “As a result of

a consumer promo engine, a social

that, more than 1.3 million consum-

media listening and engaging center

ers have registered in our consumer

and so on,” Marabelli elaborates. “The

database, 1.4 million stories have been

mobile experience covered by the app

uploaded to the app and more than 4.3

involves user-generated content, loy-

million pin codes have been redeemed

alty and promotions — users upload pictures and unlock words to build stories by participating in promotions

— corresponding with the same amount of drinks being purchased.”

The delivery of such systems stems

and earning points to be exchanged

from a reimagined role for the IT func-

for digital prizes.” Since its launch on

tion, which Marabelli traces back to w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

1886

Year founded by Dr John Pemberton

$31.8bn Revenue in US dollars (2018)

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700,000+ Number of employees across company and bottling partners

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105

Photo © Coca-Cola Italy w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

previous CIO and Vice President Ed Steinike. Marabelli remembers the words of Steinike, who previously said: “It’s all about people. Just like CocaCola’s marketing organisation, which hired some really smart people in the field of digital and interactive marketing, we started to recruit talented IT people who were more entrepreneurial, a little more strategic in their thinking, and who connected better with what marketing was trying to achieve.” This reinvigorated culture has also been 106

reiterated by Corporate CIO Barry Simpson, with Marabelli taking a number of lessons from him, including IT’s

“ 1.3 million consumers have registered in our consumer database, 1.4 million stories have been uploaded to the app and more than 4.3 million pin codes have been redeemed” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

MARCH 2020

107

role in helping TCCC to implement its

ply chain. From product development,

‘Total Beverage’ strategy, which involves

intelligent supply chains, advertising

broadening its offering to become

and mobile payments, technology has

more consumer-centric. As part of that,

become an integral ingredient in all

Marabelli emphasises that IT must be

aspects of businesses. We are shifting

capable of adapting to the new ecosys-

from builders of technology to archi-

tem and constantly reinventing the way

tects of possibility that will enable our

the company does business.

business’ success as a ‘Total Beverage’

It is with this strategy in mind that

company. We do not solve technology

Marabelli conceptualises his depart-

problems; we use technology to solve

ment’s future path: “It no longer makes

business challenges.”

sense to think of IT as a separate entity from marketing, finance or supw w w.ma nufa c t uri nggl o b a l. com

108

EMBRACING D IN MANUFACT

MARCH 2020

DIGITISATION TURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

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SAS INTERIOR MODULES

With the manufacturing industry changing, Freddy Torres, Operational Excellence System Director of SAS interior modules, discusses how his firm is utilising technology to advance operations

110

W

ith the manufacturing industry undergoing the fourth industrial revolution (industry 4.0), businesses worldwide are seeking

how new technology such as artificial intelligence (AI) and machine learning (ML) can be leveraged to accelerate operations.

In the case of SAS interior modules, Freddy Torres, Operational Excellence System Director, affirms how important digitisation has become as his company seeks to embrace new technology, particularly in its assembly process. “We’re always looking at how we can improve our assembly process and seek a solution which will enable us to increase our operational performance and find a way to create real more value in our operations,” says Torres. SAS interior modules employs approximately 4,600 people worldwide and produces around 5.2mn cockpits annually.

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SAS INTERIOR MODULES

SAS interior modules conducts opera-

to continue increasing the robustness

tions from 20 locations worldwide. Sound

and capabilities of our tightening pro-

technical knowledge and strict quality

cess,” explains Torres. “Many

standards form the basis of the firm’s

companies collect this kind of informa-

efficient processes and reliable services.

tion mainly for traceability and process

As part of its digitisation journey,

control. As you understand more about

SAS interior modules is making its first

the process by analysing its behav-

steps in taking advantage of the actual

iour, more effective improvement

Data Lake in order to create more

actions can be taken to accelerate its

value. “We deal with several critical

capability and product quality which

components of safety so it’s important

reduces operational risk.” To amplify

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MARCH 2020

SAS interior modules CLICK TO WATCH

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7:04

113 this, SAS interior modules has suc-

begun his journey in Japan, where

cessfully trialled three examples in its

he lived for 10 years, Torres’ first role

digitisation journey so far featuring

was as a research and development

its paperless approach, 3D printer for

engineer in Okegawa, Japan, before

tooling and web-applications such as

moving onto work as a quality engineer

“Truck Arrival” reducing waste in its

prior to leaving for Germany in 2011.

operations. “We are proud of having

Torres reflects on his unique beginning

internally developed an electronic-

and believes the life experience acted

paper solution that adapt to our needs,”

as a springboard for where he is today.

he says. “This will enable us to keep

“That’s where I learnt my craft,” affirms

reducing our carbon footprint as we

Torres. “I was the only foreigner work-

deploy the technology in our plants.”

ing at my former company in one

It’s fair to say that Torres experi-

of two plants located in Yamagata

enced a different start to his career

Prefecture, Japan; I really felt the

from competitors in the field. Having

senior people welcomed me and the w w w.ma nufa c t uri nggl o b a l. com

Top Top 10 10 Strategy Strategy Execution Execution trends trends 0101 Strategic Strategicexecution execution TheThe CXO demand a platform to to enable strategy CXO demand a platform enable strategy execution to be managed with same disciplineasas daily business. execution to be managed with thethe same discipline daily business.

0303

0202

04 04

05 05

Dedicated Dedicated platform platform

Data security Data security and reliability and reliability

dedicatedstrategy strategy AAdedicated executionC-suite C-suite execution

Specialised consulting firms Specialised consulting firms willwill be replaced internal strategy be replaced withwith internal strategy execution teams a dedicated execution teams andand a dedicated solution to support them. solution to support them.

With risks in data reliability and With risks in data reliability and security, leaders recognise critical security, leaders recognise critical data tools deserve more data andand tools deserve more respect than Excel and SharePoint. respect than Excel and SharePoint.

A dedicated C-suite leader A dedicated C-suite leader and supporting team will and supporting team will established deliver bebe established toto deliver organisation’s strategy. anan organisation’s strategy.

0606 Facts and evidence Facts and evidence take precedent take precedent

Guaranteed delivery delivery Swift, guaranteed execution of the

Swift, guaranteed the a higher strategy will beexecution provided of through strategy willof besmaller provided through a higher volume scope deliverables, volume of smaller aligned to eachscope otherdeliverables, and the greater goal. aligned to each other and the greater goal.

Forleaders leadersto tosuccessfully successfullycascade cascade For theirstrategy strategywith withits itsinitiatives initiativesand and their respectivecomponents componentsthere therewill willbe be respective callfor foraadigital digitalplatform platformto toachieve achieve aacall thison onan anorganisation-wide organisation-widescale. scale. this

07 07 digitalboardroom boardroom AAdigital monitors performance monitors performance Digital strategy execution boardrooms will offer Digital strategy execution boardrooms will offer real-time scalable insights aross the whole real-time scalable insights aross the whole organisation, monitoring execution through organisation, monitoring execution through progress and key outcomes in KPIs. progress and key outcomes in KPIs.

With global delivery across With global delivery across thousands of individuals and their thousands of individuals and their respective teams, common facts and respective teams, common and of evidence will become thefacts bedrock evidence will become the bedrock of performance management. performance management.

08 08Guaranteed

Global Global deliveryand and delivery execution execution

09 09

Procurement Procurement focus focus

With the stakes so With thewith stakes so to the high regards high with regards to theof the successful execution successful execution the strategy, a formal, of standardised strategy execution platform strategy, a formal, standardised procurement process will emerge, strategy execution platform driven by the CXO will emerge, procurement process driven by the CXO

10 10 Insights driving Insights action driving

action

Predictive external analytics Predictive external and AI, aligned to analytics your and AI, aligned to yourwill alert enterprise solution, enterprise solution, to willfuture alert your organisation risks of your strategy’s failure. your organisation to future risks of your strategy’s failure.

Many of the world’s largest businesses still use outdated approaches when it comes to executing strategy.

Simon Crowther, CEO, i-nexus and Freddy Torres, Head of Operational Excellence, SAS Interior Modules outline how digitalising strategy execution can be used to safeguard existing processes, continuously improve and deliver results.

The time-consuming task of tracking and managing goals, programs and performance using methods like Excel and PowerPoint is an outdated way of

For ForSAS SASInterior InteriorModules, Modules,clearly clearlydefined definedand binding standards are the basis for and binding standards are the basiscreating for reliable sustainable products which creatingand reliable and robust processes toare of high quality satisfaction. and performance. the ensure customer At theAt same same time, thatuncovering means uncovering time, that means and usingand the using potential for improvements and also potential for improvements and constantly constantly adapting processes. adapting to new customer needs.

Real-Time Project Tracking

managing strategy execution that is still widely

“Our benchmark is to utilise the most

adopted by many global organisations today.

modern methods and work at a constantly high level of quality.

With 90% of strategies failing due to poor execution

Working with i-nexus has meant that

(Kaplan & Norton), it’s no surprise that strategy

we can maintain the exceptionally

execution is an emerging priority for C-level execu-

high standards our clients expect,

tives who demand a single dedicated platform to

while growing our business.”

transform, run and improve their businesses.

“For us, quality relates to every area of the company, “Traditional approaches to managing

so we place great importance on continuously im-

strategy execution don’t offer the

proving quality.” Says Freddy Torres, Head of

versatility, collaboration and security

Operational Excellence at SAS Interior Modules.

needed to successfully deploy, manage and optimise strategy at scale”, says Simon Crowther, CEO at i-nexus.

“Strategy execution software offers control, accountability and visibility in an increasingly complex world.

Experience has shown us that for leaders to suc-

Before using i-nexus, i-nexus,SAS SASInterior InteriorModules Modulesused used Before using Excel to to manage manageprojects quality.and Theimprovement switch to the Excel i-nexus digital platform means that uncovering initiatives.

The switch to the i-nexus digital the potential for improvements and adapting platform means that uncovering the potential for processes is now Theprocesses system has also improvements andeasier. adapting is now driven assurance that projects alignedthat to easier.

The system has also driven are assurance corporate projects arethe aligned to the strategy. corporate strategy.

cessfully cascade their strategic plan across the whole organisation, on a global scale, a digital platform is a necessity.”

Simplifying the time-consuming and complex task of delivering successful strategy execution is helping i-nexus’s market-leading clients like SAS Interior Modules, Syngenta and CRH to gain competitive advantage.

“By digitalising all of our improvement projects and our gate review process in i-nexus, we are now able to track the value and status of each project. We can analyse the actions that are having a positive impact in real-time and intervene early to optimise and adjust.”

Take the free i-nexus StratexAssess Strategy Execution Maturity Assessment at www.stratexassess.com. Contact Matthew Redwood on +447917 435232.

SAS INTERIOR MODULES

116

experience helped me massively,

life known in the western world as

particularly in learning the meaning of

kaizen tools are an intrinsic part of

Genba.” Moreover, Torres stresses

the Japanese culture.”

the influence “kaizen” (the Japanese

Having made the switch to his

word for continuously improving all

current position at SAS interior

business functions across all areas of

modules in 2017, Torres acts as a

the production line) is having on firms

key link between several Corporate

in Japan. “There is a big influence on

Functions and the plants. “We want

the importance of kaizen across all

to increase the level of alignment

companies in Japan,” says Torres.

and transparency in the organisa-

“I realised early on during my time in

tion”. Serving a range of high-profile

the country that some routines in daily

automotive customers such as FCA,

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117

E XE CU T I VE PRO FI LE

Freddy Torres, Freddy Torres, is an M.Sc. Material Sciences Engineer Material Sciences Engineer and automotive professional with more than 15 years of experience in industry areas such as R&D, Quality Management and Lean Manufacturing. After starting his career in automotive industry in Japan, he moved to Germany in 2011 where he has held several regional and global functions in Quality and Lean Manufacturing since then.

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SAS INTERIOR MODULES

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MARCH 2020

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“ There is a big influence on the importance of kaizen across all companies in Japan” — Freddy Torres, Operational Excellence System Director, SAS Interior Modules

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SAS INTERIOR MODULES

Daimler, Volkswagen Group and Tesla, SAS interior modules delivers tailored customer service for each of its clients. Torres reflects on the role partnerships play on his firm’s operations, particularly its strategic collaboration with SK Automation. “SK Automation is becoming a key business partner that plays an important role in the establishment of our new production facilities in Europe and Asia. They have demonstrated the speed and effectiveness we need in 120

this kind of business,” explains Torres.

1996

Year founded

€721mn IFRS 15 Sales

4,640

Approximate number of employees

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121

“We must have a dedicated approach to each customer in order to fulfil their requirements. Take Tesla for instance, we’re learning how to build with them because they have a completely different approach to the traditional way of doing things and it’s important we adapt our services to suit each client’s different needs.” With a firm customercentric approach in mind, Torres stresses the importance of ensuring w w w.ma nufa c t uri nggl o b a l. com

SK Automation Group Automation solution provider Turn key project machine builder Assembly, test, welding, industry software Focus on battery module pack and chassis system production line 600+ Employees world wide Facility in Europe, China and USA

Customer Reference

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Website : www.sk1.net.cn

123

Tesla ©

customers obtain the best value. “As

introduce new technologies. It can be

we are in the JIS-JIT business, our

how we operate as a business to work

processes must be 100% robust

out ways to reduce costs and provide

so innovation remains a permanent

customers with a competitive cost. We

challenge for us,” he says. “We need

want to show that we’re 100% avail-

to search for opportunities that will

able for our customers at all times.”

enable us to go the extra mile in com-

With the future in mind, Torres

parison to our competitors and ensure

affirms the aim is to ensure SAS

we always deliver the best value for

interior modules can continue to go

our customers. Innovation doesn’t

from strength to strength as it looks

necessarily mean that we need to

to expand over the upcoming years. w w w.ma nufa c t uri nggl o b a l. com

SAS INTERIOR MODULES

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MARCH 2020

“ We want to show that we’re 100% available for our customers at all times” — Freddy Torres, Operational Excellence System Director, SAS Interior Modules 125

Volkswagen © “Growth is the most important thing.

Our expectation is to ensure we grow in North America and China because we believe that those countries remain our biggest chances of increasing our manufacturing footprint,” summarises Torres. “There’s also opportunities here in Europe so we must stay alert to ensure SAS interior modules can continue to grow.”

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Aerojet Rocketdyne: the evolution of aerospace and defence technology WRITTEN BY

GEORGIA WILSON PRODUCED BY

MIKE SADR

MARCH 2020

127

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AEROJET ROCKETDYNE

After two years, Alan Avakian, Senior Director of IT and John Jackson, Chief Information Officer at Aerojet Rocketdyne, discuss the company’s innovative transformation journey since 2018

W 128

ith 20 years’ experience within information technology, Alan Avakian, Senior Director of IT at Aerojet Rocketdyne,

has spent most of his career in the aerospace and defense industry. “I started out as an application developer, working in technologies ranging from the mainframe to client/server and web. Other technical roles I have had include database administration and project management,” says Avakian.

“After working with programmers and internal customers, I branched out into other more specialized disciplines including reporting and ERP. At a certain point, I had to make a career choice between technical and management tracks, and chose management in the end for the opportunities. With guidance from others, I went back for my Masters of Business Administration and transitioned to managing my own department before becoming a Director and Chief Technology Officer.”

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AEROJET ROCKETDYNE

“ Additive manufacturing, hypersonics, and solar electric propulsion are key innovation areas for Aerojet Rocketdyne” — Alan Avakian, Senior Director of IT, Aerojet Rocketdyne

Avakian describes Aerojet Rocketdyne as “an innovative worldclass developer and manufacturer of advanced propulsion and energetics systems

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Aerojet Rocketdyne Manufacturing B-Roll CLICK TO WATCH

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2:55

131 for customers including the US

“Additive manufacturing, hyper-

Department of Defense, NASA and

sonics, and solar electric propulsion

other agencies and companies, both

are key innovation areas for Aerojet

in the United States and abroad.” Its

Rocketdyne. We are also developing

vision is to further develop the brand

propulsion systems to utilise high-

and leverage its experience to provide

performance ‘green’ propellants.

the most cost-effective, on-schedule

Green propulsion systems are an

and reliable products in the industry.

alternative to conventional chemical

Over the last two years, Avakian has seen the aero-

propulsion systems that use hydrazine propellants for a variety of applica-

space and defense industry evolve

tions, including next-generation

significantly, with multiple new trends

launch vehicles and spacecraft,”

emerging fast such as: additive manu-

says Avakian.

facturing, solar electric propulsion, cybersecurity and cloud technology.

John Jackson is the Chief Information Officer at Aerojet Rocketdyne and w w w.ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

134

E X ECU T I VE P RO FI LE

Alan Avakian Alan Avakian is the Senior Director of IT at Aerojet Rocketdyne. In this role, he leads the organisation’s Business Alignment and Technology Management functions responsible for shared business service strategy and operations including Networking, Infrastructure, Applications, and End User Support services. He coordinates with line-ofbusiness leaders to understand their needs (including anticipated technology and product changes) and works with IT outsourcing partners for execution.

MARCH 2020

135 has extensive experience in cyber-

security in cloud, Jackson is also

security and cloud technologies. In

seeing companies shifting to this tech-

the Information Technology arena,

nology. “Cloud solutions now meet the

Jackson mentioned that “there’s a

stringent security requirements of our

much bigger focus on security and

industry, so companies are now start-

the new Cybersecurity Maturity

ing to pivot.”

Model Certification (CMMC) that was

Further discussing data security,

released in January. An accredited

Jackson explains the company’s own

third party assessor will independently

efforts since 2018 to develop its data

assess whether internal information

security methods. “Keeping up with

systems of companies that perform

the ever-increasing security threats

DoD work (including suppliers) have

for people who want to steal your data,

the required cybersecurity controls

while also meeting the new industry

in place to meet the assigned cyber

compliance standards such as the

maturity level.” With new levels of

CMMC, are core challenges when it w w w.ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

136

comes to data security as it changes

a traditional IT architecture which

so fast.” At Aerojet Rocketdyne,

relies heavily on on-premise infra-

the company has a threat hunting

structure to a hybrid architecture.”

program which allows the company

In particular, Avakian highlights the

to proactively measure its security

company’s adoption of cloud tech-

posture rather than only relying on

nology, microservices and robotic

traditional threat management meas-

process automation (RPA). “Over

ures such as firewalls. In addition,

the last couple of years we have

“we are currently embarking on an

transitioned our Product Lifecycle

Enterprise Information Management

Management (PLM) system from

initiative to establish a data govern-

an on-premise solution to a cloud

ance program. This program will

provider. Our data is housed in a

assist with the standardisation and

FedRAMP data centre with around-

integration of data and metrics

the-clock support.” In addition to

across the enterprise.”

the cloud, the company has begun

When it comes to the innovative

conducting an RPA proof-of-concept

evolution of the company, Avakian

with its Finance department. “This

explains that over the last two years

will reduce costs, eliminate input

the company has “pivoted from

errors, speed up business processes,

MARCH 2020

What Is Artemis?

CLICK TO WATCH

|

0:45

137

E XE CU T I VE PRO FI LE

John Jackson John Jackson is the Chief Information Officer and Vice President at Aerojet Rocketdyne.

In this role, he leads the Information Technology organization focused on the development and execution of an IT strategy to help deliver on mission success. The goal of the strategy is to unlock greater value for customers and the business by enabling innovative, secure and compliant technology solutions.

w w w.ma nufa c t uri nggl o b a l. com

Empower every person and every organization on the planet to achieve more.

Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. We strive to create local opportunity, growth, and impact in every country around the world.

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139

“ Keeping up with the ever-increasing security threats while also meeting the new industry compliance standards such as the CMMC, are core challenges when it comes to data security as it changes so fast” — John Jackson,, CIO, Aerojet Rocketdyne

and will be integrated with applications. Our hope is to expand the program once we have proven out the technology and business model.”

At an operational level, Avakian also explains the company’s development of a business relationship management team, as well as its healthy transition towards a balanced outsourcing and in-house operations approach. “We started with realigning some of our existing talent as well as recruiting new people with w w w.ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

1942

Year founded

$2bn+ Revenue in US dollars

5,000 Number of employees

140

MARCH 2020

141

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AEROJET ROCKETDYNE

“ An innovative worldclass developer and manufacturer of advanced propulsion and energetics systems for customers including the US Department of Defense and NASA” 142

— Alan Avakian, Senior Director of IT, Aerojet Rocketdyne a background in IT and business liaison

our requirements in relation to levels

skills,” comments Avakian, who has

of control, security considerations,

seen huge benefits from establishing

cost model and growth.”

the team. “Our customers love the fact

With these developments, Avakian

that they have an IT representative

has seen “the ability of the company’s

that is aligned to them.” When it comes

IT systems to grow with the busi-

to balancing its outsourcing and in-

ness, enabling faster turnaround of

house operations, Avakian highlights

key enhancements which were not

that “it’s a challenging opportunity as

achievable before without significant

there are benefits and use cases for

investment in time and money.” For

both methods. Our approach is to look

example, Microsoft has been help-

at the IT area and then assess which

ing Aerojet Rocketdyne to “leverage

approach or combination best meets

Microsoft Dynamics for our CRM.

MARCH 2020

143

We will also be using Microsoft’s

– and the company’s propulsion which

Office 365 and Azure for storage later

plays a critical role in SLS’s ability to

this year.”

successfully launch the heaviest, larg-

Reflecting on the company, Avakian

est, and most valuable payloads to deep

sees the company’s biggest strength

space” is an example of one of the com-

being its people and drive towards

pany’s biggest successes to date.

innovation in everything that it does, particularly having seen the company expand its presence to drive innovation.

Avakian concludes that the company’s “NASA Space Launch System (SLS) – America’s next-generation heavy-lift rocket, powered by Aerojet Rocketdyne w w w.ma nufa c t uri nggl o b a l. com

144

d a e l s e l i t ex y a w he W R IT TE N BY

W IL L I A M S MI P R O D U C E D BY

M A N U E L N AV

MARCH 2020

ding

145

ITH

VA R R O

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A D I T YA B I R L A

How Aditya Birla’s textile business got it off the ground and continues to power growth

I

ndian multinational conglomerate Aditya Birla group has its fingers in many different pies. Founded in 1857, it predates

even the British Raj, instead dating from the end of the British East India Company’s control over the subcontinent. As befits such an antique company, 146

its labyrinthine structure incorporates interests in a wide range of industrial products including viscose staple fibre, palm oil, carbon black (a byproduct of petroleum combustion often used as a pigment), viscose filament yarn, cement and rayon grade pulp.

Aditya Birla’s current success, however, really stems from the work of Aditya Vikram Birla, a scion of the family. Taking on his father’s business group, Birla oversaw the expansion of the company outside of India to locations including Thailand, Malaysia, Indonesia, the Philippines and Egypt - a strategy which paid off considering that over 50% of the group’s revenues are derived from overseas businesses, now spread across 36 countries in North and South America, Africa and Asia. He is quoted on the group’s website as MARCH 2020

147

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A D I T YA B I R L A

saying: “My vocation is to strive continu-

“ Our energy derives from the sun, termed Aditya in our mythology, and so closely linked with the name of our legendary leader, Aditya Vikram Birla”

ously, to reach excellence in all spheres of management, by weaving the threads of enterprise, knowledge, experience, ideas and tasks into a fabric that can be called ‘management’.” By the time of his death in 1995, the Group’s revenues had crossed INR80bn globally, and consisted of 55 plants, 75,000 employees and 600,000 shareholders.

As a “$48.3bn corporation”, Aditya Birla employs over 120,000 employees spread across 42 nationalities. It

148

MARCH 2020

Aditya Birla Group — Big in Your Life CLICK TO WATCH

|

1:00

149 calls itself the global leader in aluminium rolling, viscose staple fibre and carbon black, and the Indian leader in branded fashion, grey and white cement and concrete. The company’s Chairman, Kumar Mangalam Birla (the son of Aditya Birla, the man), has said of his approach: “Great businesses are never built on the quicksands of opportunism. I reiterate that, if living by our values means, perhaps growing at a pace slower than we would otherwise have liked, so be it. For us, leadership lies at the heart of knowing what we stand for.” w w w.ma nufa c t uri nggl o b a l. com

WINNING TOGETHER We commit to your business before we commit to ours We, Asia Pacific Fibers, are a leading integrated global polyester player. Being at the forefront of the polyester industry, we are propelled by vertical integration, professional management, state-of-theart machinery and consistent quality in manufacturing.

As a leading manufacturer and marketer of polyester chips, staple fibers, filament yarns and fleece fabrics along with captive PTA [purified terephthalic acid], we are able to cater to the ever-changing demands in apparel, furnishings and industrial textiles.

Because of the joint commitment of all our customers, partners, employees and various stakeholders towards exploiting new opportunities, we have evolved into Indonesia’s most progressive, flexible and fully integrated polyester producer ranking amongst some of the best in the world. Yet ‌ our journey of collaborative innovation is just accelerating.

Polyester chips

Polyester Staple Fibers

We invite you to delve into more details about us, our promise, our brands, our services etc. and join us in this journey.

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corporate@apf.co.id asiapacificfibers.com

Polyester Filament Yarns

Asia Pacific Fibers (APF) is an integrated polyester manufacturer, active from petrochemicals to polyester yarn and propelled by vertical integration, professional management, state-of-the-art machinery and consistent quality in manufacturing.

We produce polyester chips, staple fibers, filament yarns and fleece fabrics along with purified terephthalic acid (PTA).

Polyester completely dominates the global fiber mix, growing at 5.5% against the growth of 1.3% for all other fibers. Polyester filament consumption is projected to grow 11-fold between 1990-2025, with polyester staple fiber growing by 3.2 times.

Polyester growth is driven by advanced applications in the industrial and home textile space, and by its affordability, durability, and an amazing diversity of applications. Polyester is applicable not only in the apparel industry, but in hosiery, automotive, sportswear, household and various technical textiles. This tremendous growth is because of the many beneficial characteristics of polyester, including being recyclable, easy-care, stable and clean, as well as easily modifiable.

great legacy for our industry. APF and Birla Group share the same focus as product-oriented companies creating customer partnerships and becoming product leaders in the fiber industry.

We both strive to continuously improve product quality, consistency, and the level of service for our customers. APF and Birla Group have a unique customer-supplier relationship wherein we work together intensely to improve product performance and specification through raw material performance improvement within their plant.

APF has always been an integrated, productoriented manufacturer. We are therefore looking to further strengthen our relationship with forward looking, vertically integrated and product oriented companies such as Birla Group. We value our relationship and the opportunity we have been provided to share our vision. Today’s business ecosystem requires synergy. That’s why we embedded the spirit of togetherness in our slogan: “winning together.”

Our vision is to always be a product-oriented company. We cater to the ever-changing demands of various products for textile’s downstream industry, as well as providing services to our valued customers in terms of product solutions and development. APF develops its own production processes, manufacturing and technology which are continually evolving to create future demand through collaborative customer partnerships.

We partner with our customers on mutually beneficial and long-term relationships. We are eager to learn and collaborate with our customers as the industry becomes more competitive, the product cycle is shortened and demand rises for small batches. Due to the retail revolution and the wave of digitalisation, the market is now redefined.

In our strategic view, we want to reaffirm and accelerate our journey towards being a highly agile and innovative polyester player. Aside from meeting customers’ demands, together we, as a solution provider, are also willing to find out what a customer needs to grow their business and the industry.

Aditya Birla Group is an esteemed business group with a decades-long track record. A truly professional conglomerate with a global presence, Birla Group’s philosophy towards business is a

LEARN MORE

A D I T YA B I R L A

Aditya Birla further prides itself on its approach to corporate social responsibility, with community work focusing on healthcare, education, girls, sustainability, the empowerment of women and the promotion of social reform. To that end, its Centre for Community Initiatives and Rural Development, led by Rajashree Birla, Chairperson, reaches nine million people a year. The company at large runs 56 schools providing education to over 46,000 children, of whom 152

18,000 are “underprivileged”, as well as 20 hospitals covering a million villagers. Rajashree Birla has said the mission is: “To actively contribute to the social and economic development of the communities in which we operate. In doing so, build a better, sustainable way of life for the weaker sections of society and raise the country’s human development index.”

The group’s textile business is no less diverse than the rest of the business, although it is the field in which the company first gained success. Spread across a number of geographies and incorporated in different subsidiaries including MARCH 2020

“ Great businesses are never built on the quicksands of opportunism”

yarn manufacturer PT Sunrise Bumi

Grasim Industries is described by

Textiles of Indonesia, Thai Acrylic

Aditya Birla as its “flagship company”,

Fibre Co. Ltd, and Mumbai’s Grasim

having begun as a textiles manufac-

Industries, the world’s largest pro-

turer in 1947. As part of Grasim, Jaya

ducer of viscose rayon. A recent

Shree Textiles manufactures linen

textile-focused move by the group

and wool, and is active in a number

was the expansion of Birla Cellulose’s

of business units, including linen

Vilayat factory in Gujarat via a

spinning, linen fabric, wool combing

INR40bn investment.

and worsted spinning. Despite being an Indian company, the operation is international, with high-tech spinning systems from Europe, and raw components such as flax from France and Belgium.

Grasim recently released its results for Q3 of the financial year, detailing revenue growth of 5% for the previous nine months. The company’s flagship status is reinforced by an employee-count of over 21,000 people, with net revenue of over $10bn and an EBITDA of $1.8bn in 2019, representing a significant proportion of Aditya Birla’s total.

The company has recently introduced a new logo, which it says represents its newly vibrant persona and will carry the brand into the future while reflecting the changes over the past 20 years, including w w w.ma nufa c t uri nggl o b a l. com

153

A D I T YA B I R L A

“ Aditya Birla wants to build a better, sustainable way of life for the weaker sections of society and raise the country’s human development index” 154

MARCH 2020

an increase from 0.4% to 14% women in the “managerial cadre”.

Chairman Kumar Mangalam Birla said: “In essence, we are a much more dynamic, vibrant, youthful Group across five continents. In keeping with this change, I felt the need to refresh our earlier logo.

Contemporising it made sense. It has served its time and helped build our Group identity and lent heft to our Group’s business identity.

“Our new corporate mark is a fine blend of continuity and change. So it admirably captures our legacy and moves on with modernity. Our energy derives from the sun, termed Aditya in our mythology, and so closely linked with the name of our legendary leader and my father, Aditya Vikram Birla. His persona evoked all that is positive in business and in life.”

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155

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