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“The Evolution of Smart Manufacturing” by

Walt Boyes Editor in Chief Control and

Safe, Smart, Responsible, Sustainable Manufacturing We’ve been trying…for at least 20 years…why haven’t we succeeded?

We have serious challenges… We all know what they are. We’ve been talking about them for years: •Economic instability •Changing workforce •Need for greater than incremental increases in productivity •Pressures to minimize environmental impacts and an increased focus on safety and risks of accident—increased pressure to manage risk and uncertainty better

Yet more serious challenges… •Faster time to market •Increased agility •Managing enterprises better due to the impact of globalization •Heightened social consciousness •Sustainable manufacturing •Pressure to increase responsiveness to faults and changing conditions

Paul David and the Role of Electricity Stanford professor Paul David has written about technological change and its effect on the economy. •Technological step changes do not cause incremental increases in productivity or profit. •These step changes cannot be quantified or processed through normal accounting practices •Transportation •David: The case of electricity •The information revolution

DeWitt Clinton Didn’t Have a Clue • The Erie Canal opened up the American Midwest • Began a transportation revolution • Made New York the second financial capital of the world after London • Drove innovation in shipbuilding and railroads

The Effect of Electricity on Manufacturing • David calls this the Second Industrial Revolution • Drove productivity in step changes • Eased maintenance in operation • Made work safer and made working multiple shifts practical • Drove innovation in shipbuilding and railroads • In 1900 big companies had vicepresidents of electricity

The Effect of Electricity on Manufacturing • Changes did not happen overnight—took nearly 50 years • Required critical mass • Had unexpected and synergistic effects

The Third Industrial Revolution?? • The microprocessor is similar to the effect of the electric light and motor • Needs critical mass to see the technological step changes

Inescapable Data • The microprocessor allowed us to easily collect and manipulate data, and as microprocessors increased in ubiquity, so did data. Ubiquitous, inescapable data.

The Effect of Inescapable Data on Manufacturing • Manufacturing is about data, not about machines • Manufacturing theory and systems are technology independent • We have come as far from the invention of the microprocessor as manufacturing in 1900 had come from the invention of the light bulb.

Oh, Yeah, the Business Case • Manufacturing may be about data, not about machines, but how do we get that data and turn it into information in a way that works?

The Business Case •Business decisions should be informed with both business and operational uncertainty and risks •Plant operations should be able to “dial in” along the spectrum of risk •Grade and product transitions should be optimized for situational economic, environmental and energy impacts •Operational decisions should be informed by risk of instability •Responses to abnormal situations should be informed by risk and uncertainty in operating limits and constraints

Safe, Smart, Responsible, Sustainable Manufacturing •Manufacturing ought to be safe. Working safely is more profitable, and more economical •Manufacturing ought to be smart. The data that is being continuously generated by smart machines and transmitters must be translated into actionable information. •Manufacturing ought to be responsible. We all live on the same planet. •Manufacturing ought to be sustainable. Energy and waste reduction savings go straight to the bottom line.

We Need a Roadmap •It has become clear that smart manufacturing is not going to be created by automation and IT vendors, or by end users in manufacturing. •No single company, end user or vendor, can bear the cost of developing the required systems and initiatives. •Some kind of public/private partnership is needed, similar to Sematech.

We Need a Roadmap

Smart, Process Manufacturing • I am indebted to the “Smart Process Manufacturing Engineering Virtual Organization,” which consists of many thought leaders in process manufacturing and automation…

The Key Business Transformations From



Investment in Facilities Reactive

Investment in Knowledge Embedded Facilities Proactive









Investment and management of facilities and knowledge equally important Economic by anticipation and decision; understanding probability, risk and impact Sensing, modeling and analyzing to predict; controlling and operations to prevent Zero incident EH & S part of performance culture Requirements become opportunities; optimizing total enterprise operation Every decision in context of globally competitive environment

The Key Technical Transformations From



One-off Models in Operations Dispersed Intelligence

Models integrated into Operations Distributed Intelligence

Unintelligent systems

Self-aware Systems

Proprietary Systems

Interoperable Systems

Unpredictable Industry

Predictable Industry

Pervasive, coordinated, consistent and managed application of models Data, information, knowledge, models and expertise available and used to make decisions at the right time and place Autonomous systems that understand role and performance in enterprise; systems that take action to optimize role Systems that communicate through standard protocols for information sharing, capability and best-in-class components Operations within defined operating envelopes with predictable impacts

The SPM EVO Sees the Roadmap as Lanes 5 In te





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• Integrated People, Knowledge and Models to Competitive Performance Indicator – Provide comprehensive knowledge capture and knowledge management solutions – Organize for knowledge-worker on-the-job training – Enhance new employee development – Reassess curricula and pedagogy and provide life-long learning

A Fundamental Transformation Will Result From this Roadmap • Distributed intelligent manufacturing – Decisions and actions made at lower level of plant granularity – Coordinated/aggregated smart units – Centralized hierarchical management to coordinated distributed management • Explicit management of risk and uncertainty – Robustness to risk and changing situations – Greater flexibility and responsiveness to overall goals • Distributed business and operating intelligence to units through integrated models ---SPM EVO July 2009

So What Is Smart Manufacturing?

So What Is Smart Manufacturing? “We define Smart Process Manufacturing as: An integrated, knowledge-enabled, modelrich enterprise in which all operating actions are determined and executed proactively applying the best possible information and a wide range of performance metrics.�

Cyber Infrastructure Is Key •Data Interoperability •Networked Sensors •A physics- and math-based understanding of material properties •Multi-scale dynamic modeling and simulation •Large scale optimization •Scalable, requirements-based multi-level security.

10 Attributes of Smart Process Manufacturing 1.Intelligent actions and responses 2.Operating assets are integrated and self-aware 3.Adapts to abnormal situations 4.Data when, where, and in the form needed 5.Proactive failure prevention 6.Rapid response for proactive control 7.Environmentally sustainable 8.People: knowledgeable, empowered and trained 9.Recognize the limits of automation 10.Drive strategic enterprise performance

So How Do We Get There?

The Smart Process Manufacturing Engineering Virtual Organization


“The Evolution of Smart Manufacturing” by

Walt Boyes Editor in Chief Control and