Manufacturing 4.0 : How the Internet of Things in Manufacturing can BoostAsset Performance and Returns

31 July 2018

© SOURCE 2015 ABERDEEN GROUPAchieving Operational Excellence in F&B

• F&B companies are facing both low margins and high demand variability

• At the same time, F&B companies are facing top pressures to achieve OpEx: – Reduce sustainability costs (68%) – Comply with government regulatory requirements (54%) Ensure product quality and consumer

satisfaction (47%) – Maximize productivity (38%)

• F&B companies must find new ways to achieve operational excellence (OpEx)

Achieving Operational Excellence (OpEx) in Food & Beverage

Being Successful in a Challenging & Highly Complex Operating Environment

• Five metrics are distinguishing the F&B Leaders from Follower organizations:– Production Compliance– Overall Equipment Effectiveness (OEE) – On Time and Complete Shipments– Response Time to Non-Conforming Shipments– Operating Margin vs. Corporate Plan

• Leaders accomplish such superior performance by implementing capabilities and technologies that improve production efficiency, product quality and sustainability

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Leaders Ultimately Outperform Planned Margin Goals by +9%

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Maturity Class Mean Class Performance

F&B Leaders

Top 30% of F&B aggregate performance scorers

99% Production compliance89% Overall equipment effectiveness (OEE)98% On time and complete shipments3.7 Hours response time to non-conforming shipments+9% Operating margin vs. corporate plan

F&B Followers

Bottom 70% of F&B aggregate performance scorers

92% Production Compliance74% Overall Equipment Effectiveness (OEE)86% On Time and Complete Shipments23.2 Hours Response Time to Nonconforming Shipments-5%. Operating Margin vs. Corporate Plan

© SOURCE 2015 ABERDEEN GROUPAchieving Operational Excellence inF&B

Pune Digital Factory Journey

GE Brilliant Factory

L E A N

A D V A N C E D

A D D I T I V E

D I G I T A L

Lean Continuous improvement

Dig

itally

Ena

bled

Opt

imiz

atio

n

B A S I C

B R I G H T

B R I L L I A N T

6© 2017 General Electric Company - All rights reserved 6

Brilliant Factory … The Concept

Integrating Digital Technology and Lean to improve productivity

77© 2017 General Electric Company - All rights reserved 7

• Strong focus to drive Digital maturity in 10

out of 24 sites in India

• All Brilliant Factories leverage a common

digital stack and solution suite

• Create bespoke solutions per the plant need

Key Takeaways

Lean Maturity

Digital Maturity

3

4

5

3 4 5

MMF

GEBEL / WGE X

Sanand

Pallavaram

Coimbatore

Padappai

Vadodara

Durgapur

WGE -K

Brilliant Factory Framework – Combination of Lean and Digital

Current state assessment

Gap Analysis

Build Custom App

Leverage Brilliant Factory

Solutions

Digital IndustrialMap Digital tools Site deployment

Test & fix for Operationalizatio

n

Industrial

Plant KPIs

Set up IT/OT Network

Infrastructure

Connect Machines / Sensors

How do We Make a Factory Brilliant … The Approach

99© 2017 General Electric Company - All rights reserved 9

Pallavaram

July 31, 20189

Oracle + Proficy

Proficy PfMD QDAS

Oracle + ASCP

Proficy PlantApps

Oracle

Proficy PfMD

Maximo

PLM Integration

Scheduler

Scheduler

CBM / APM (Selective)

Oracle

Anark + NX Proficy + TMS

Oracle OTM

WIP Tracker

ASCP

eAndon

TBD

iSupplier

MOS + RevX

Brilliant Factory Gap Assessment

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Pallavaram

Low

Medium

High

Impact

eAndon

GEOS

Material Optimization analytics

Condition based monitoring

RevX

Shop Floor Scheduler

IT-OT Network SegregationSkill Matrix tool

Time to ValueHighMedium

Low

Effort

Takt Tracker

Time to Value driven approach for Brilliant Factory

Warehouse Visibility

Brilliant Factory Gap Assessment

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Ecosystem / Innovation

Condition based maintenance

RFID WIP TrackingMaterial Optimization Suite

PLC

SCADA

ProficyMES

Component Manufacturing Finishing AssemblySourcing

Oracle ERP

Proficy Historian

AnalyticsApplication

PREDIX PaaS

Predix Machi

ne

GEOS

PREDIX PaaS

RevX

In-progress

Enterprise Systems

HorizontalProducts

Custom Apps

Stock to Dock Tool

eAndon

Shop Floor Scheduler

Data Science POCs

Warehouse Visibility

Skill Matrix

Takt Tracker

Outcome Based Tools and Building blocks

Brilliant Factory Building Blocks

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• Each plant developing it’s own digital applications

• No common platform for deployment of application

• Eg: Andon on MES systems

Where we were?

• Common solution stack for key areas across factories

• Common platform/mechanism for solution development

• Eg: eAndon on cloud

Where we are?

• User Persona led single pane applications

• Integrated suite of applications

• Eg: Andon system integrated with other solutions

Where we are going?0-2 years 2-4 years

• Publish reference architecture guidelines for

Platform, S/W design, IT Network and Security

• Identify current solutions with potential to scale

• Build/Buy solutions in Whitespaces

How did we do it?Digital Solution

Plant Team:

Focus on ERP, MES and other local systems

Articulate pain areas and needs

Provide feedback to solutions team on value

Digital-Ops PartnershipDigital Team

Build solutions basis plant needs

Deploy solutions and track value

Modify solution blocks basis plant feedback

Our Approach to Creating the Digital Stack for a Brilliant Factory

1313© 2017 General Electric Company - All rights reserved 13

Digital Stack – Our Approach and Learnings

• Strong partnership with AME, Lean to identify opportunities for Digital

• Follow a MVP approach and pilot early with solutions

• Don’t develop solutions in isolation … have anchor plants

• Selectively, create bespoke solutions per the plant need

• Define standards and technology guidelines to help scale existing

applications

“Digital tools are simply critical for us to be able to deliver manufacturing of the future.”

— Nate Arnold Vice President, CIO Services Global Operations, GE Power

GE Experience Implementing the Digital Platform Through our Supply Chain

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