The Digital Manufacturer Putting Intelligence into Action for Operational Excellence
Contents
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The Business Conundrum Facing Manufacturers
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Driving a Digital Overhaul
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What is a Digital Operations Center?
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What Does a DOC Help Integrate?
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Digital Operations Center: Understanding the Technology Stack
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Digital Transformation Life-Cycle: Enabling New Product Capabilities
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Eight Steps to Successfully Building a DOC
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Enabling Digital Transformation through DOC: A Use Case
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Making DOC an Integral Part of the Digital Strategy
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Footnotes
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About the Author
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About Cyient
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The Business Conundrum Facing Manufacturers Manufacturing companies have traditionally had an on-again-off-again relationship with technology. However, the paradigm shift driven by global manufacturing and distribution, combined with rapid digital innovation, is changing this equation. Deloitte’s 2016 MHI survey reveals that 83% of manufacturing organizations believe investing in key digital technologies such as IoT, robotics, Big Data, cloud computing, etc. will be key to competitive advantage in the near future.1 Despite this, it is still not uncommon to find manufacturers relying on disparate and siloed systems, bulky spreadsheets, PowerPoint presentations, and traditional data tools for managing their day-to-day operations. Not only does this require extensive manual effort to curate information, but it also takes the focus away from core strategic work such as data-based decision-making. The result? Errors and inefficiencies abound. To stay competitive in the evolving manufacturing landscape, organizations must prevent costly delays, avoid errors, and optimize costs. Most importantly, they must increase market responsiveness by reacting quickly to challenges and problems in their end-to-end operations, supply chain, and production lines. Companies must, therefore, revisit age-old manufacturing strategies, redesign their traditional manufacturing approaches and value chain, and retrain their workforce to usher complete reinvention of manufacturing operations. To be successful, all of this must be done on a scale resembling a new industrial revolution or digital overhaul.
Driving a Digital Overhaul While the shift to the industrial internet is gaining rapid traction globally, much of its focus is centered on producing connected products and consumer-centric services. 01
How digital technologies can help manufacturers transform internal operations is an aspect that is not often discussed or explored. Businesses today require a constant and realtime flow of operational and performancerelated information to improve product development, drive innovation, and streamline asset and supply chain management. The relationship between how a product performs and how it affects user behavior needs to be understood. Additionally, the performance of marketing campaigns, social media trends, and even news and weather conditions may affect a companies’ bottom line. This dynamic environment necessitates an enterprise-wide digital transformation. The key to achieving this is the establishment and operationalization of a digital operations center.
What is a Digital Operations Center? A digital operations center (DOC) is a nextgeneration network operations center (NOC). It gives organizations the ability to access information with extensive visibility across multiple data sources and business functions, bringing broader intelligence to day-to-day operations, thereby enabling greater collaboration among stakeholders across the value chain. The four operating pillars of a digitally transformed manufacturing organization enabled by a DOC include: • Connecting product, manufacturing assets, and supply chain to a digital platform and offering anytime, anywhere data-driven digital insights. • Executing processes on a resilient digital platform that is secure, available on demand, and easy to set up and use. • Creating a digital workforce platform of connected workers, using advanced monitoring, search, and analytics tools. • Proactively managing a digital innovation ecosystem comprising multiple partners, to incorporate the latest technologies.
What Does a DOC Help Integrate? A DOC integrates all the live and synthetic data and analytics channels relevant to your business’ performance, allowing customizable views for every business function. Figure 1 depicts how a comprehensive DOC can function as an all-pervasive, central entity to various business functions in a manufacturing company, enabling enterprise-wide digital transformation.
DOC’s value proposition extends far beyond a set of dashboards. By integrating data from disparate channels, it provides a crossfunctional understanding of the impact of performance issues on multiple business units. It empowers a business to not only glean quick insights but also makes them actionable, by providing a single point of control. For instance, when a performance issue is identified, a DOC can highlight the view, pinpoint the root cause, analyze its impact
Sales, Marketing and CRM Product Development/ VAVE/Design Improvement
Workforce Management
Digital Operations Center Aftermarket Services and Support
Procurement, Supply Chain and Logistics Manufacturing Operations and Product Quality
Fig. 1 | Role of digital operations center in a manufacturing firm 02
Digital Operations Center Smart Asset Applications
Rules/Analytics Engine
Application Platform
Support Desk
SW Applications with real-time alerts and insights for Operations Command and Control
Business Rule and Logic | Advanced Analytics and Algorithms with Asset Application Algorithm for insights on usage
Application Development and Execution Environment | Connected Business Applications using data access and visualization tools
Maintain 24/7 operation and support of all Asset connected equipment for the customer
Cloud Platform
Identity and Security • Security Tools • User Authentication Management • System Access and Administration • Product Security • Cloud Level Security • Network Level Security
Asset Data - Database
Big Data Database | Data Aggretation and Normalization | Real Time and Historical Data Management
Asset Connectivity Network Communication
External Information • Business Environment • Government Regulations • Material / Commodity Prices
Protocols | Communication Layers | Network Communication Standards
Product And Manufacturing Assets Software
OS (optional) | Embedded Firmware | Onboard Applications | User Interface | Desktop and Mobile Applications
Integration-Business Systems • Tools integrating information from smart devices with PLM, ERP and CRM Systems
Hardware
Onboard Sensors | Processors | Connectivity | Electrical and Mechanical Parts
Fig. 2 | Technology stack of a digital operations center
on user behavior, distribute the information to all stakeholders promptly, and display the results— all within a single environment. A DOC also enables the business to configure alerts to identify issues proactively. For instance, alerts for real-time user monitoring and load testing integrations can ensure continuous scrutiny of the manufacturing environment to derive always—on insights into every performance metric that the business cares about.
Digital Operations Center: Understanding the Technology Stack The technology stack of a DOC comprises of multiple layers, including new product hardware, embedded software, a product cloud consisting of software running on remote servers, a suite of security tools, a gateway for external information sources, and integration with enterprise business 03
systems. The technology components of a DOC depend on two elements: the business function’s specific use case and the business logic required to derive meaningful insights through advanced analytics applied on the Big Data gathered from sensors. Figure 2 depicts the typical framework of a DOC along with the inter linkages and dependencies on external and internal systems. DOC’s comprehensive technology stack enables not only rapid product application development and operationalization but also the collection, analysis, and sharing of humongous amounts of longitudinal data generated inside and outside the products. This unprecedented capability results in a digital transformation life-cycle.
Digital Transformation Life-Cycle: Enabling New Product Capabilities Intelligence and connectivity enable an entirely new set of product/asset functions and capabilities in four areas. #1 Monitoring Embedded sensors in smart, connected products enable comprehensive monitoring of product condition, operations, and external environment. Using data, a product can alert users or others to the changes in circumstances or performance. Monitoring also allows companies and customers to track a product’s operating characteristics and history, to understand better how it is actually used. This usage data has important implications for design (by reducing over engineering, for example), market segmentation (through the analysis of usage patterns by customer type), and after-sale service (by enabling the right
technician to reach the location with the right part, thus improving the first-time fix rate). Additionally, monitoring data may also reveal warranty compliance issues and new sales opportunities, such as the need for additional product capacity owing to high utilization. #2 Control Smart, connected products can be controlled through remote commands or algorithms that are built into the device or reside in the product cloud. For instance, if the vibration of bearings gets too high, a control algorithm can help reduce the speed of the motor shaft. #3 Optimization The rich flow of monitoring data from connected products, coupled with the capacity to control operations, allows companies to optimize product performance in numerous ways, many of which were not previously possible. Smart products are capable of applying algorithms and analytics
Autonomy
Complexity and skill Requirements
Automated Persuasive/ Strategic Prescriptive
Predictive
How to prevent what will happen?
What could happen?
Diagnostic What will happen?
Optimization: Algorithms optimize product operation, predict maintenance, and prescribe appropriate actions
Control: Algorithms learn and control product functions and activities with alarm notifications
Monitoring: Sensors and external data sources to monitor: • Product‘s condition • External environment • Product‘s operation and usage
Descriptive What has happened?
Business Value Fig. 3 | Stages in digital transformation lifecycle enabled by DOC 04
What is the opportunity of action?
What decisions can be delegated to a smart system?
Combining monitoring, control, and optimization allows: • Autonomous product operation • Self-coordination of operation with other systems and products • Self-diagnosis and service
to in-use real-time or historical data to dramatically improve output, utilization, and efficiency. For instance, real-time monitoring of critical parameters of a genset can enable manufacturers to develop a predictive maintenance suite to predict failures and preempt them, thereby preventing financial and production losses due to potential genset downtimes. #4 Autonomy Monitoring, control, and optimization capabilities come together to allow connected products achieve an unprecedented level of autonomy. At its simplest level, you have autonomous product operations such as that of the iRobot Roomba, a vacuum cleaner that uses sensors and software to scan and clean the floors in rooms with different layouts.2 Figure 3 depicts the various stages of a digital transformation life-cycle, enabled by the implementation of DOC. The key takeaway is the enhancement of value offered to a manufacturing company and its end customers by the DOC as it progresses and matures during the digital transformative journey. It goes from initially providing rudimentary reactive problem management to a more prognostic or proactive, predictive problem-solving, finally leading to a state of autonomous problem management. The complexity of activities and the skill requirements of the staff manning the operations center steadily increase as the DOC matures, in turn, resulting in significant cost and operational efficiency benefits to the manufacturer.
Eight Steps to Building a DOC Successfully Building a DOC is no trivial task. It requires buy-in at the executive level, as well as deep technical know-how at the implementation level. An extremely simplified breakdown of the process comprises of these eight steps:
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• Step 1: Have each functional team create a list of all the data sources they regularly monitor. This can serve as the basis for their functional views within the DOC. • Step 2: Audit the lists to determine any overlaps/gaps to create cross-functional views. Prioritize performance problems with the biggest impact in terms of revenue or customer experience, and start with these. The goal is to get early wins with the DOC. • Step 3: Create a wish list, research solutions, and choose a platform for your DOC. • Step 4: Build custom DOC frames that define different views tailored to specific business functions. • Step 5: Determine the information sources, visual configuration, and alerts required for each audience or activity. • Step 6: Build a single control application to operate the DOC, allowing you to toggle between framework-driven views, and drill down to investigate issues, change perspectives, and drive discussions. • Step 7: Create alerts that automatically bring important information to the forefront, highlighting key milestones or issues affecting performance. • Step 8: Evolve continually to fine-tune the performance at every step.
Enabling Digital Transformation through DOC: A Use Case Let us take the case of a hypothetical threephase induction motor manufacturing company. Implementing a DOC can enable the company to overcome business challenges by reducing the total cost of operation, providing insights into customer behavior, developing new revenue streams, and proactively solving issues (see Figures 4 through 9).
Gain insights on customer preferences and experience on motor performance from social media & industry forums
Tracking usage & utilization of motors
Demand prediction, sales forecasting, motor product line lifetime prediction before obsolescence
Digital customer relationship Management, market segmentation, targeted marketing
Benefits: • Enhances customer experience • Identifies new revenue streams: eg. subscription models • Predicts motor demand accurately • Prolongs life of motor product line before onset of obsolescence • Reduces marketing costs due to targeted marketing and predictive pricing
Gain Insights on Competitor Motor Sales, Performance Feedback
Data-driven advertising & measuring sales channels’ effectiveness
Motor pricing models & analytics
Sales & marketing analytics
Fig. 4 | Impact of DOC on Sales and Marketing
Monitor motor assembly, part performance, analyze failure to improve design
Motor reliability analytics & design improvement
Benefits: Motor customization and introduction of new variants based on insights from customer preferences
• Enables faster time-to-market • Reduces failure rates and improved motor reliability and quality • Provides greater value to clients through value-added features and on-going design improvement • Reduces product development costs • Improves market share through competitive advantage
Data-driven product development, new features’ introduction and enhancements
Fig. 5 | Impact of DOC on product design and development 06
Gain insights from customer feedback on motor performance, quality, reliability through text analytics of customer posts in social media, industry forums, and other digital channels
Gain insights from Customer Feedback on value added and non value added features
Track motor parts location, status through smart tags (RFID, BLE beacons etc.) at vendor/supplier location
Digital supplier management & data-driven procurement of motor parts
Benefits:
Digital category & service procurement based on new contract models for motor parts
• Enables procurement-as-a-service • Reduces risk from supply disruption through supplier rationalization • Enables real time status update of motor parts anytime, anywhere globally • Predicts delivery lead times • Reduces inventory carrying costs • Optimizes warehouse space • Automates supply chain managementas-a-service
Intelligent, predictive inventory management
Connected fleet management to track physical asset movement & delivery, field service vehicles
Smart warehouse management
Fig. 6 | Impact of DOC on Procurement, Supply Chain, and Logistics
Connected shop floor & assembly lines for real time manufacturing asset health monitoring
Smart quality assurance, testing & predictive quality models
Manufacturing operational intelligence & unified KPIs
Benefits:
Smart inspection & metrology instrumentation
• Improves reliability & quality of products • Connects shop floor decisions with corporate level objectives of lowering manufacturing costs, and reducing wastage • Enables lean manufacturing • Enables operational excellence and culture of data-driven continuous process improvements • Reduces costs due to poor quality
Manufacturing asset management & predictive maintenance
Fig. 7 | Impact of DOC on Manufacturing Operations and Product Quality 07
Real-time monitoring of material flows & manufacturing bottlenecks
Additive manufacturing & mass customization feasibility based on customer preferences
Motor parts health score card & predictive maintenance
Remote monitoring & management of re-manufacturing center
Automated remote service executive
Benefits:
Smart service/replacement parts inventory management
• Reduces warranty costs • Monitors motor operating health instantaneously • Improves Design • Eliminates travel costs by enabling remote services • Improves service tools and personnel efficiency • Reduces inventory carrying costs by enabling just- in-time inventory • Boosts sales of high margin spare parts
Smart user, operator training & motor maintenance manuals using AR/VR
Warranty cost management detection & prevention of spurious warranty claims based on real time monitoring
Real time service/replacement parts tracking using smart tags
Fig. 8 | Impact of DOC on Aftermarket Services and Support
Connected, mobile workforce management through wearables for: workforce tracking monitoring workforce & health
Benefits:
Attracting, managing & retaining talent through HR analytics
Workforce productivity analytics and optimization
• Enables agile workforce attuned to rapid changes and challenges • Enhances workforce health, safety, and productivity • Workforce training & management as-a-service • Workforce & cost optimization
Workforce training through e-learning based on AR/VR tools & centralized knowledge management
Fig. 9 | Impact of DOC on the Manufacturer’s Workforce 08
Workforce and worker safety monitoring & alerts on real time basis
Making DOC an Integral Part of the Digital Strategy While a digital operations center allows manufacturers to collect an infinite amount of data about their businesses, it enables much more than just tailored access to a unified data set. It’s a decision-making platform that creates a common language around performance across a company—from management to engineering. The result? Manufacturers that make DOC an integral part of their digital strategy stand to gain from streamlined processes, reduced response times, and data-driven decisions.
Footnotes 1
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Deloitte, Press Release, MHI Survey: Technology Adoption Rates Rise (Apr 2016), accessed Mar 2017, https://www2.deloitte. com/us/en/pages/about-deloitte/articles/ press-releases/deloitte-mhi-annual-report. html iRobot, http://www.irobot.com/For-theHome/Vacuuming/Roomba.aspx
About the Author Sreekumar Narayana is an Assistant General Manager in the Opportunity Management— Corporate Strategy and Transformation team, at Cyient. He has over 17 years of experience in delivery management, pre-sales, and consulting for the product, manufacturing engineering, IIoT, and digital transformation initiatives. He has led several system engineering and consulting assignments on M2M, connected products, smart metering, and asset management programs. He is PMP certified and a VA/VE solutions expert with certification from Indian Value Engineering Society (INVEST). He holds a Bachelor’s degree in Engineering and a Post Graduate Diploma in Business Management.
About Cyient Cyient (Estd: 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, network and operations management services to global industry leaders. We leverage the power of digital technology and advanced analytics capabilities, along with domain knowledge and technical expertise, to solve complex business problems. As a Design, Build and Maintain partner, we take solution ownership across the value chain to help our clients focus on their core, innovate, and stay ahead of the curve.
Relationships lie at the heart of how we work. With nearly 14,000 employees in 21 countries, we partner with clients to operate as part of their extended team, in ways that best suit their organization’s culture and requirements. Our industry focus spans aerospace and defense, medical, telecommunications, rail transportation, semiconductor, utilities, industrial, energy and natural resources. For more information, please visit www.cyient.com.
Š 2017 Cyient. Cyient believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Cyient acknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document. Updated April 2017
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