Manufacturing Global - November 2020

– Driving value-added technology in the industry NO V E MB E R 2 0 2 0

manufacturingglobal.com

AI PLATFORMS

Digital Transformation in the Tobacco and Vaping Industry

Digital Transformation in Semiconductor Procurement Arm’s Alisa Bornstein, Group Procurement Senior Director, on procurement transformation

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FOREWORD

H

ello, and welcome to the November edition of Manufacturing Global Magazine; a publication that explores the trends shaping the market today, through the individual journeys and stories of leading manufacturers and executives in the industry.

Within these pages, we’ll be deep-diving into the depths of the industry, exploring digitisation, and checking out the growing trends across the sector.

Take, for example, November’s lead story: an exclusive interview with Richard Kenedi, General Manager of Manufacturing and Digital Plant at GE Digital, with whom we discuss the importance of IIoT, data analytics and the growing importance of customercentricity across the industry.

On top of that, Matt Tichon, Vice President of Industry Strategy at LLamasoft, took the time to discuss the effectiveness of digital twins, and the impact that the concept has had on manufacturing.

Elsewhere, Mark Hermans, Managing Director at PwC, United States, takes the hot seat in a sit-down Q&A about how the manufacturing and supply chain space has transformed over the years and its current role in the industry.

Also inside, find insights from Richard Waterhouse and Rafi Billurcu, as they deep-dive into the role of blockchain technology in manufacturing.

Oh, and, don’t forget to keep an eye out for this month’s ‘Top 10’, which takes a look at the leading AI platforms in 2020.

Fancy seeing your name featured in an upcoming edition of the magazine?

Get in touch today at oliver.freeman@bizclikmedia.com From the team at Manufacturing Global, we hope you enjoy the issue.

Oliver James Freeman

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03

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PUBLISHED BY

SENIOR EDITOR

Oliver James Freeman EDITOR

PRODUCTION DIRECTORS

PROJECT DIRECTORS

Georgia Allen Daniela Kianickovรก

Karl Green Manuel Navarro Stuart Irving

PRODUCTION MANAGER

Owen Martin DIGITAL VIDEO PRODUCERS

Sean Galea-Pace

Kieran Waite Sam Kemp

EDITORAL DIRECTOR

MARKETING DIRECTOR

Scott Birch CREATIVE TEAM

Oscar Hathaway Sophia Forte Sophie-Ann Pinnell Hector Penrose

MANAGING DIRECTOR

Lewis Vaughan

Leigh Manning

MEDIA SALES DIRECTOR

James White DIGITAL MEDIA DIRECTOR

Jason Westgate CHIEF OPERATIONS OFFICER

DIGITAL MARKETING MANAGER

Shirin Sadr

Stacy Norman PRESIDENT & CEO

DIGITAL MARKETING EXECUTIVE

Matilda Pilkington

Glen White

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CONTENTS

10 30

40 54

THE TRANSFORMATION OF DIGITAL TWINS IN MANUFACTURING

DRIVING DIGITALISATION IN MANUFACTURING

70

104

The role of

LTTS

BLOCKCHAIN

in manufacturing

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10

Digital Transformation in Semiconductor Procurement WRITTEN BY

WILLIAM SMITH PRODUCED BY

GLEN WHITE

NOVEMBER 2020

11

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ARM

Arm’s Alisa Bornstein, Group Procurement Senior Director, on the transformation in procurement worthy of Arm’s high-tech reputation

A

rm is a British multinational semiconductor and software design company headquartered in Cambridge, UK. Arm

technology touches more than 70% of the world’s population, and its processor designs have ena12

bled advanced computing in more than 180 billion chips to date, powering products from the sensor to the smartphone and the supercomputer.

One of the key functions enabling its success is the supply chain. Alisa Bornstein is Group Procurement Senior Director at the company, with over 25 years’ experience in procurement at companies including Ericsson, BT, Telia, Millicom, IHS and now Arm. “I have experience of procurement start-ups, green-field and significant transformations, as well as leading teams in multicultural, complex and fast moving environments and mature and emerging markets. At the places I’ve been I’ve professionalised and digitalised procurement and brought in innovative, agile, lean and efficient service and solutions to the business.”

NOVEMBER 2020

13

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ARM

“ Strategic partnerships with suppliers are critical to supporting an organisation’s objectives” — Alisa Bornstein, Group Procurement Senior Director, Arm

and effective function supporting the business’ objectives and future plans.“ That transformation program was undertaken with the aim of digitalis-

On her decision to join Arm, Bornstein

14

ing core procurement processes to

says: “Arm stood out for its unique

enable efficiencies, boost controls,

people, culture of collaboration and

minimise risks, and improve the experi-

brilliant minds. Almost two years in,

ence for end-users. “Procurement

and after 18 months of the transforma-

digitalisation has exploded across

tion program, I am proud to say that

the entire business environment, and

procurement at Arm today is recog-

its entire value proposition to the

nised as a value-creating, responsible

overall organisation has changed tremendously,” says Bornstein.

“Digitalisation influences all areas of procurement, from category management, strategic sourcing, supplier and risk management, to transactional purchase-to-pay operations.”

NOVEMBER 2020

Arm | Architects of Possible CLICK TO WATCH

|

1:33

15 Naturally, the project has resulted

configuration changes and deploy

in a ground-up overhaul. “We started

all the solutions. We set separate

our digital journey by improving the

workstreams for supplier and content

basics, standardising and redesign-

enablement, and change management.

ing the whole source-to-pay (S2P)

The plan was rigorously monitored

process and deployment of Ariba,”

by external and internal teams.

says Bornstein. “This required a

Advice and support from the imple-

significant change in our ways of

mentation partner in the design phase,

working and the company culture.”

during configuration, testing and

The project hasn’t been without

during go live was absolutely a crucial

complexities. “We were preparing

success factor.”

the rollout for 18 months before we

Having been live with Ariba for the

engaged an external implementation

past year, Bornstein is satisfied that

partner. With them, a schedule was

the digital strategy has delivered and

developed to review the design, make

continues to create significant value ma nuf a c t uri nggl o ab l. com

THE WORLD IS CHANGING. ARE YOU? Faster. More agile. More innovative. More sustainable. Lower cost. Improved EBITDA. If procurement is not accelerating your business outcomes, it’s probably time for a rethink. The world’s leading businesses trust Proxima.

ACCELERATE YOUR BUSINESS OUTCOMES

Proxima: delivering true value in procurement Clare Harris, Senior Vice President Operations, describes how Proxima has established itself as a world leader in procurement consultancy services

Over the last 25 years, Proxima has established itself as a world-leading expert on procurement consultancy services, helping a broad spectrum of customers to unlock their supply chain’s full potential, from the largest Fortune 500 entities to bespoke startups.

“Ultimately, we work with our clients’ procurement and commercial teams to help drive value from their cost base,” says Clare Harris, Senior Vice President.

As a company, Proxima helps customers optimise what they spend with suppliers and build exceptional procurement functions. “When you think that, on average, about 70% of organisational spend is with suppliers, then you can immediately understand the potential that exists for savings and innovation,” Harris states. However, it isn’t necessarily a purely ‘cost-saving’ exercise; the company specialises in maximising the value of every penny spent. “It’s about understanding what value means to our clients, whether that’s cost, speed, return, risk efficiency, or quality.”

Contributing to the company’s enduring success has been a flexible strategy focused on being adaptable to the changing supply chain environment. That evolution, Harris says, has been characterised by increased networking, collaboration and emphasis on procurement itself.

The benefits of this industry development have been keenly felt by Proxima’s clients. One in particular, Arm, shares a close working dynamic with it: “Proxima has

Clare @ Proxima

been able to bring both commercial expertise and category knowledge, while also injecting capability at a time when Arm’s existing procurement team were quite stretched,” Harris explains. Establishing a “twoway feedback” loop, the collaborators have been able to react swiftly to challenges and coordinate decisively, “We work together at pace and deliver value quickly.” Using different time zones to its advantage, Proxima’s UK team can hand over to the US team and vice versa, creating a continuous cycle of problemsolving capability.

This kind of partnership will prove vital in the postCOVID-19 world, where traditional operational patterns no longer hold true and an innovative mindset is crucial.

As other companies strive to build an operating model for procurement that matches today’s challenges, Harris believes that Proxima’s breadth of expertise will become even more valuable. “I think a lot of companies are now asking, ‘How can we transform ourselves to make decisions quicker?’, and that theme will continue into 2021.” Proxima’s aim, then, will be to guide that development and continue its ongoing mission of delivering real value to its customers.

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“ Our procurement team recognises the challenge that COVID-19 poses to our organisation and is working hard to continuously assess and mitigate these risks” — Alisa Bornstein, Group Procurement Senior Director, Arm

is looking into the future trends of the procurement digitalisation . “We’re in the time of technology disruption,” she

for the company, for instance by offer-

says. “Why not combine best-of-breed

ing a one-stop shop, with everything

systems and integrate them to work

you need in one place, and standard

together to deliver a great experience

source-to-contract process that

to internal customers and suppliers?”

ensures that purchase-to-pay works seamlessly. Nevertheless, Bornstein

To this end, she emphasises that procurement is about much more

Arm AI Processors Making Smartphones Smarter CLICK TO WATCH

|

1:04

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19

ARM

20

than buying. “There are many other

The ongoing transformation of Arm’s

areas where procurement adds value

procurement is built on the strategy to

and where technology enables data-

deploy leading procurement practices

driven intelligence and efficiencies.

and processes, supported by tech-

Innovation in Procurement is crucial

nology solutions, to deliver financial

for professional and forward thinking

benefits and added value, compre-

procurement functions.�

hensive corporate social responsibility

NOVEMBER 2020

E X E C U T I V E P R O FILE :

Alisa Bornstein Title: Group Procurement Senior Director Industry: Semiconductors

Location: United Kingdom

Alisa Bornstein leads Arm’s global Group Procurement organisation responsible for reshaping procurement while driving positive financial outcomes for the company. Her functional accountabilities include category management, strategic sourcing, supplier management, contracts and transactional purchase operations supported by enabling technologies. Her senior experience covers a broad spectrum of the function including procurement business partnering, strategy, processes, policies, data analytics, planning and execution of strategic and transactional operations, communication and training.

Prior to Arm, Alisa held senior leadership roles at large enterprises including Ericsson, BT, Telia and Millicom where she focused on transformation and digitalisation of the procurement, and serving as the procurement subject matter expert for the business. Alisa is passionate about people and talent development, building collaborative business partnerships and teams. She is a progressive and highly respected procurement leader, and is a frequent speaker at Procurement and Supply Chain industry global conferences and forums.

Alisa holds a Master’s degree in Finance from St Petersburg State University of Economics, Russia.

She is Russian by origin, a Swedish citizen for over two decades and resides in the UK since 2014.

Alisa is true international leader with experience operating around the world, facilitated by her multicultural and inclusive leadership style, with a warm, direct and consensus approach, and fluency in three languages. ma nuf a c t uri nggl o ab l. com

21

ARM

“ Group Procurement will continue to be a value-creating, responsible and effective procurement function, supporting Arm’s business and mission to architect a smarter world” — Alisa Bornstein, Group Procurement Senior Director, Arm

22

NOVEMBER 2020

23

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“ Digitalisation influences all areas of procurement” — Alisa Bornstein, Group Procurement Senior Director, Arm

products,” says Bornstein. “That’s achieved through building collaborative, mutually beneficial relationships, a proactive development of leading practice strategies to maximise the value of these relationships, driving innovation programmes, reducing supplier-related risk, leveraging

(CSR), supplier risk management and

purchasing power and shared values

stakeholder engagement & collabora-

around sustainability and diversity.”

tion. It has required a shift in, among

As with essentially all of the world’s

other things, the way of working

companies, the COVID-19 outbreak

with key suppliers and partners, with

has impacted operations, particularly

Bornstein identifying seven key quali-

when it comes to the supply chain.

ties she looks for, namely being:

“Reports on how the COVID-19 outbreak is affecting supply chains and

• An expert in service type and market • Accountable • A Strategic Advisor • An Innovator • Easy to communicate with • A Cultural fit • Ethics and Compliance-minded

disrupting manufacturing and service operations around the world are increasing daily,” says Bornstein. “The

“Strategic partnerships with suppliers are critical to supporting an organisation’s objectives in maximising the value it obtains from its external partners, providers of outsourced solutions and third-party services and ma nuf a c t uri nggl o ab l. com

25

ARM

26

prediction is that the impact of COVID-

also bears in mind the impact on its

19 on global supply chains is to remain

suppliers, hence the action Arm has

for many months. Our procurement

taken. “We’ve sent communications

team recognises the challenge that

to key suppliers encouraging them

COVID-19 poses to our organisation

to share with us their business conti-

and is working hard to continuously

nuity measures. Arm’s top 20 suppliers

assess and mitigate these risks.”

were contacted, and follow-up is

Bornstein emphasises that it is not

ongoing to understand their plans

only focused on the well-being of its

and any impact this will have on Arm.

own organisation and employees but

We are also working with, for

NOVEMBER 2020

27

example, IT equipment suppliers to

to be a value-creating, responsible

monitor and maintain our stock levels

and effective Procurement function,

on a regular basis.”

supporting Arm’s business and mis-

It’s no surprise then that Bornstein

sion to architect a smarter world.”

is confident that Arm’s procurement function will continue to live up to the company’s reputation as a hightech leader. “The world is changing.

Industries are changing. But our focus in Group Procurement will continue ma nuf a c t uri nggl o ab l. com

Adaptability is not an aspiration.

It’s a business asset.

TOGETHER

WE GOT THIS

“Applying Industry 4.0 processes has improved production decision making at 85% of manufacturers.”

MPI Group study 2020 – read the study to learn more To survive in an era of volatile demand, uncertain supply, and constrained capacity, your organisation must be adaptable.

Now is the time to commit to a new way of working that can help you adapt to supply chain disruptions, react to changes in demand, and capitalize on new opportunities.

SAP will work with you as you move towards digitalization and Industry 4.0 in a company-wide, business strategy that focusses on data-driven customer attention and • Build intelligent, individualized products by connecting each customer’s voice to everything from product planning to delivery.

• Meet the demands of customers looking for sustainability.

• Create the kind of production process that adapts • Use intelligence and networks to integrate every machine, partner, and employee.

• Connect the entire company, bringing together logistics, sales, and service, so every step is orchestrated.

The SAP Digital Supply Chain portfolio supports industry 4.0, enables the digitalization of engineering, manufacturing, and asset operation processes, connects and automates machines and devices, and brings intelligence via AI and advanced analytics to an entire production process. This can help to continuously improve production performance, lower cost, and increase the agility and resiliency of your supply chain.

Adaptability is no longer an aspiration, it’s a business asset that can help you stay connected to your customers, integrated with your partners, and ahead in your industry.

D I G I TA L F A C T O R Y

30

AN ONGOING DIGITAL TRANSFORMATION JOURNEY WRITTEN BY

SEAN GALEA-PACE

NOVEMBER 2020

31

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D I G I TA L F A C T O R Y

Richard Kenedi, General Manager of Manufacturing and Digital Plant at GE Digital, discusses his organisation’s digital transformation journey

G

E Digital provides software and Industrial Internet of Things (IIoT) services to industrial companies. As a subsidiary of General

Electric, GE Digital operates across four key indus-

tries: manufacturing, power generation, oil and gas, and electric and telecommunications utilities.

32

Richard Kenedi is the General Manager of Manufacturing and Digital Plant at GE Digital. In this role, Kenedi is responsible for driving profitable growth for the automation and Manufacturing Execution System (MES) product and service portfolio, serving manufacturing verticals and digital plants globally.

“GE Digital has been in manufacturing software for several decades and it really began with our automation capabilities,” explains Kenedi. “This has progressed significantly over time and we’ve added offerings extending into manufacturing execution systems and analytics.” Kenedi understands the importance of introducing technology that adds value, instead of technology for the sake of it, and affirms that value is always at the heart of

NOVEMBER 2020

33

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“ We’re on the right track at GE Digital and the future looks bright”

decision-making at GE Digital. “Value to our customers is first and foremost,” he explains.

Kenedi believes in a customercentric approach and explains that

— Richard Kenedi, General Manager of Manufacturing and Digital Plant, GE Digital

his organisation’s strategy revolves around closer collaboration with customers. “We take a very consultative

E X E C U T I V E P R O FILE :

Richard Kenedi Title: General Manager

Company: GE Digital

Industry: Manufacturing

Location: San Ramon, California, US

Richard Kenedi is the General Manager of the Manufacturing Digital Plant business segment for GE Digital. Richard is responsible for driving profitable growth for the Automation and Manufacturing Execution System product and service portfolio, serving manufacturing verticals and digital plants across the globe.

Prior to joining GE Digital, Richard served as the President Core Markets within NETSCOUT, a global supplier of network service assurance products. Prior to NETSCOUT, he was President Tektronix Communications, an operating company within Danaher. Prior roles within Tektronix Communications included Vice President, Products and Portfolio Management, Vice President and General Manager for the Test & Optimization and Core Test Businesses.

Additionally, prior to Tektronix Communications Richard held senior roles in SOMA Networks and Nortel Networks. ma nufa c t uri nggl o b a l. com

35

D I G I TA L F A C T O R Y

GE Digital Industrial Managed Services: Continuous Improvement with APM CLICK TO WATCH

|

1:48

36 approach with our customers. We

how to extract value from it is chal-

have a process called ‘top to top’ with

lenging,” says Kenedi. “Our strategy

several customers where we meet

is to continue to improve analytics

with their top leadership on a quarterly

and leverage our manufacturing data

basis. It’s a very detailed discussion

cloud software solutions. We’ve taken

about where they’re taking their

the capability set of our data analytic

business, and how we can apply our

environment and helped address

portfolio to ensure we’re staying

some really challenging problems for

in line and accelerating the needs of

customers that would have previously

the customers.”

taken them months to solve. Now,

“An area where we’re working

we’ve been able to scale our technol-

closely with our customers is cen-

ogy and capabilities to map what our

tred around analytics and machine

customer’s needs are from a pain

learning. Almost all customers want

point perspective and accelerate

machine learning but understanding

those solutions into their environments.

NOVEMBER 2020

“ GE Digital has been in manufacturing software for several decades and it really began with our automation capabilities” — Richard Kenedi, General Manager of Manufacturing and Digital Plant, GE Digital “Throughout our digital transforma-

change their production environments very rapidly and make them agile.”

Kenedi recognises the importance of understanding the trends that mat-

tion journey, we’ve kept the concept

ter. With existing infrastructure in

of a hybrid portfolio – on-premise

place to ease the disruption caused

and cloud – at the forefront. As cloud

by COVID-19, Kenedi highlights that

capabilities have been introduced, we

providing safety, continuity, and sup-

have a combination of on-premise

port were priorities for GE Digital and

and cloud-based capabilities that has

its customers. “We already offered

really extended our digital transfor-

remote worker capabilities based

mation and redefined optionality for

on the idea of operating anytime,

our customers.”

anywhere, and allowing our customers

In a bid to be proactive and lean, Kenedi affirms that being quick to evolve and change is a key ingredient to success. “We stay very close to our customers and there are three key themes that are essential: complexity, agility and efficiency,” he says.

“It’s very important as we continue to evolve our capabilities that we do it in the mindset of keeping them agile. Many of our customers are in industries where they find they have to ma nufa c t uri nggl o b a l. com

37

D I G I TA L F A C T O R Y

C O M PA N Y FA C T S

38

GE Digital is an industrial software company headquartered in San Ramon, California, US. The company is a division of General Electric. GE Digital provides software and IIoT (Industrial Internet of Things) services to industrial companies. The organisation has a global presence with 48 locations worldwide, 4000 employees, over 1000 dedicated software engineers, and seven industrial managed service centres.

visibility,” he explains. “We were very

from this,” explains Kenedi. “There are

pleased to be able to provide our

things that we can now do effectively

customers with additional options and

remotely, that we previously thought

capabilities to be able to do remote

might have to be face to face. Having

work. It’s proven essential to the

said that, we will take advantage of our

continued success in manufactur-

office environments and want to get

ing operations. Nobody could have

back to being onsite with the customer

predicted the pandemic but we were

and having those in person relation-

really excited that we could help with

ships. It’s important that we combine

remote work.”

the best of both.”

“Moving forward, I believe it’s going

Looking to the future, Kenedi is

to be a mixed approach; we’ve learned

positive about the future at GE Digital.

NOVEMBER 2020

“I believe there’s industry recognition that collectively we have an opportunity to take advantage of digital capabilities” — Richard Kenedi, General Manager of Manufacturing and Digital Plant, GE Digital 39

“I’ve been here for more than six

broader set of value capabilities to our

months now and I think we’ve got a

customers so that they can increase

good thing happening,” says Kenedi.

the benefit that they’re getting from

“We’ve got a great set of customers,

their digital transformation. You’ll see

and we’re working very closely with

this from an analytics perspective,

them. I believe there’s industry rec-

the evolution of our base capabilities

ognition that collectively we have an

around automation and MES, and how

opportunity to take advantage of digi-

we extend ourselves within the value

tal capabilities.

chain. We’re on the right track at GE

“From a manufacturing perspec-

Digital and the future looks bright.”

tive, you’re going to see us spread our wings in terms of providing a ma nufa c t uri nggl o b a l. com

S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

40

THE TRANSFORMATION OF DIGITAL TWINS IN MANUFACTURING WRITTEN BY

SEAN GALEA-PACE

NOVEMBER 2020

41

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S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

Manufacturing Global examines the impact of digital twins in manufacturing and gains insights from industry experts

M

att Tichon, Vice President, Industry Strategy at LLamasoft, believes that in today’s environment, having a digital twin

of an organisation’s end-to-end supply chain is

vital. “It allows manufacturers to digitally replicate and analyse their entire manufacturing footprint for potential pain points. For example, if there is a sud42

den shortage of a raw material, such as wheat (an issue the UK is likely to face with its worst wheat harvest since the 1980s), businesses can assess the potential impact this will have on their endto-end operations. With this knowledge, they can prepare for any eventuality that they can imagine, big or small.”

Tichon acknowledges that digital twin technology enables them to test several different solutions before introducing them into the real world. “If there was a shortage of raw material, businesses could determine the best options for a secondary source of supply while taking into account the implications of costs, service, and capacity,” adds Tichon. “Taking this approach allows organisations to minimise the impact of the disruption

NOVEMBER 2020

43

“ In a world where disruptions are becoming part and parcel of everyday life, implementing digital twin technology is not just smart, but essential” — Matt Tichon, Vice President, Industry Strategy, LLamasoft

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

Security threats have evolved.

Manufacturers need to adapt.

41%

of manufacturing companies suffered a mobile-related compromise*

50%

of manufacturing executives indicated they lack confidence that their company’s assets are protected from external threats*

The manufacturing industry remains one of the primary targets for mobile attack due to its highly valuable intellectual property.

With mobile phishing attacks on the rise, you need to adopt a zero-trust security model to ensure your data is secure.

Find out more at info.lookout.com/Manufacturers * Verizon Mobile Security Index 2020 *Deloitte Cyber risk in advanced manufacturing

“ When combined with analytics, the concept of the digital twin delivers insights that can unlock hidden value” — Rohit Gupta, VP & Head of Products & Resources, Cognizant

pre-identified sources, both near and longshore, as they determine their specific contingency plans. In a world where disruptions are becoming part and parcel of everyday life, implementing digital twin technology is not just smart, but essential.”

The aerospace giant, Boeing, uses digital twins to design aircraft, with a digital twin created for a new plane, after which simulations are run that

while simultaneously understanding

predict the performance of many dif-

the impact that changing sourcing

ferent airline components over the

decisions will have on operating

lifecycle of the product. As a result,

margins and customer fill rates. Many

Boeing engineers can anticipate when

businesses benefit from having

products may fail. According to the

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45

S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

H O W A R E D I G I TA L T W I N S USED IN MANUFACTURING?

46

A digital twin is a computerised version of a physical asset - this means that data from sensors in the real world can be implemented into the twin to develop simulations with thousands of outcomes. This technology allows manufacturers to run scenario simulations with their upcoming products to help understand potential usage, reliability and efficiency.

3D modelling is an area that has been increasingly boosted following the introduction of the digital

twin, with simulation in different environments enabling a more complete and tested product to be produced. Diagnostics, monitoring and prognostics can all benefit too. Digital twin technology can empower manufacturers to improve the customer experience as it provides them with better insights into customer needs, which allows them to innovate solutions for existing products, operations and services while identifying new business opportunities.

organisation, they achieved a 40%

and safe cargo load can be worked out

improvement rate in the first-time

by increasing cargo revenue per flight.

quality of parts through the digital twin

Rohit Gupta, VP & Head of Products

concept. Boeing aims to digitise all of

& Resources at Cognizant, believes

its engineering and development sys-

that the manufacturing industry is

tems in the future and plans to share

increasingly adopting digital twins

this information within its supply chain.

to allow for continuous learning and

The company is also leveraging digital

help anticipate and avert glitches and

twin technology in order to achieve a

forecast results. “When combined with

perfect cargo load balance; by using

analytics, the concept of the digital

IoT sensors on a digital twin, an exact

twin delivers insights that can unlock

NOVEMBER 2020

“ Now that we are entering the next normal, we have an opportunity for Industry 4.0 technologies to enable a great reset in manufacturing and supply chain operations” — Enno de Boer, Partner and Global Leader Manufacturing, McKinsey

solve challenges across the product value chain, such as lack of coordination and visibility of supply chain

hidden value,” says Gupta. “It can

processes, limited cross-functional

provide engineers with information

collaboration, and an inability to make

on potential operational failures of IoT-

data-driven decisions. An important

connected products, for instance, and

attribute of digital twinning is the real-

thus help prevent unplanned downtime

time synchronisation of information

and improve product performance.

with the activities of physical devices

The digital twin concept can also help

and equipment. Leaning on both sets

Why digital twins will be the backbone of industry in the future CLICK TO WATCH

|

2:53

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47

S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

48 of information and using various stake-

interconnected devices, input and out-

holders and inputs from across the

put of product, as well as pain points in

supply chain will contribute to a more

the production line. Human resources

efficient product development.�

then use the findings to identify areas

Unilever has also successfully intro-

where they can improve the overall

duced digital twins into manufacturing

manufacturing process. Unilever has

operations, globally. The organisation

experienced significant success from

now has eight facilities across its

implementing digital twins to scale

expansive network that have deployed

the consistency in the production of

digital twins. Within these factories,

soaps and detergents. Through AI, the

Unilever is attempting to optimise

firm has also been able to decrease

manufacturing performance across

the number of false alerts that require

the board. To do so, data from IoT

action in their plants. Unilever had

systems is fed into a digitised ‘twin’

previously received over 3,000 alerts

of the entire facility, and algorithms

every day but has reduced this figure

go to work, analysing the actions of

by 90%.

NOVEMBER 2020

FOUR DIGITAL TWIN APPLICATIONS IN MANUFACTURING

3. Production Digital twins make it possible for manufacturers to reach a single

1. Engineering

version of the truth. In an ideal world,

The engineering sector has often

manufacturers have a unified set of

used digital twins to create virtual

digital twin master data that comes

representations while developing and

from a central location which will pro-

innovating products. In this application,

vide manufacturers with one version

the digital twin exists before the physi-

of the truth. However, when combined

cal counterpart and begins with the

with in-memory computing-based

vision of what the product should be.

networks, in addition to a lightweight,

IoT can now make it possible to cap-

change-controlled model capability,

ture data in real-time, from products

manufacturers will be able to analyse

deployed in the field, which can be

and visualise data quickly. The digital

applied to the digital twin for continu-

twins can also be leveraged to com-

ous product improvement.

pare quality data across a number of different products.

2. Design customisation As consumers continue to demand customised products, digital twins allow for the design and engineering to model several different permutations. In the past, manufacturers have struggled with the best way to introduce customer input into the manufacturing process. Digital twins streamline the process of customer demands and implement usage data that will enhance customisation options. ma nufa c t uri nggl o b a l. com

49

S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

4. Operations Operations enhancement is one of the leading applications for digital twins. Manufacturers must first develop a virtual representation of an asset in the field by leveraging a lightweight model visualisation. They can then capture data from smart sensors embedded in the asset, which allows for a clearer picture of real-world performance and operating conditions.

Subsequently, manufacturers can then simulate that real-world environ50

ment for predictive maintenance.

Andrew Wright, a partner in Deloitte’s consulting practice, believes that digital twins allow manufacturers to jointly optimise inventory and production capacity which enables them

of possible permutations – ultimately

to operate several very large digital

driving increased efficiency, reduced

simulations to test the best produc-

inventory, and improved stability on

tion cycle for their business before

the factory floor. In a typical produc-

implementation. “Digital twins allow

tion plant, our clients see a saving of

businesses to create a digital copy

over €1.0mn on their profit and loss,

of the physical world,” says Wright.

a release of around €1.5mn in working

“A digital twin tool that we use with

capital and time spent on changeovers

manufacturers is SupplyCycle. It cre-

reduced by up to 21%.”

ates a digital copy of a manufacturer’s

With the new era of Industry 4.0

factory operations and tests millions

in mind, Enno de Boer, Partner and

NOVEMBER 2020

51

Global Leader Manufacturing at

workers, consumers, and the natural

McKinsey adds that innovations

environment,” he says. “Digital twin

such as 3D printing and digital twin

technologies and advanced analyt-

technology are a ‘game-changer’

ics, for example, can be leveraged for

for manufacturers. “Now that we

predictive maintenance, which can

are entering the next normal, we

optimize machine throughput and

have an opportunity for Industry 4.0

detect quality defects in production by

technologies to enable a great reset

enabling the exponential scale-up of

in manufacturing and supply chain

new algorithms across manufacturing

operations, delivering value to a wide

facilities. Additive manufacturing is

range of stakeholders including

a long-term game-changer, and that ma nufa c t uri nggl o b a l. com

S M A R T M A N U F A C T U R I N G - D I G I TA L T W I N

52

NOVEMBER 2020

“ Digital twins allow businesses to create a digital copy of the physical world” — Andrew Wright, Partner, Deloitte’s consulting practice adoption can continue as manufacturers move beyond prototyping and truly understand manufacturing through series production.”

Overall, a digital twin has lots of different applications across the lifecycle of a product and can begin to answer questions in real-time that couldn’t be answered before, offering a plethora of new, invaluable solutions, considered almost unthought of several years ago. In the coming years, digital twins will likely emerge as one of the leading IT tools in many industries, particularly in manufacturing where it has the potential to revolutionise product development and product testing in a range of areas. This means that in the future, almost every manufactured product could have its own digital twin, assuming it is generating data that can be analysed. ma nufa c t uri nggl o b a l. com

53

A I A U T O M AT I O N

54

DRIVING DIGITALISATION IN MANUFACTURING WRITTEN BY

SEAN GALEA-PACE

NOVEMBER 2020

55

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

A I A U T O M AT I O N

Manufacturing Global speaks with Mark Hermans, Managing Director, PwC, to examine what digital transformation looks like in manufacturing today THE MANUFACTURING INDUSTRY IS IN A PERIOD OF TRANSITION. Against the backdrop of the Fourth Industrial Revolution, companies of all shapes and sizes are seeking ways to leverage the latest technology into everyday operations and processes 56

to create greater efficiency. Witnessing this first-hand is Mark Hermans, Managing Director at PwC, United States. Hermans has spent more than 20 years consulting the biggest organisations on transforming their operations, with a focus on digital enablement. Within PwC’s digital operations practice, Hermans leads the Connected Supply Chain team, helping companies leverage emerging technologies to transform their supply chain operations. He has served clients across a variety of industries with a primary focus on industrial products and aerospace.

Here, Manufacturing Global speaks with Hermans about how the manufacturing and supply chain space has transformed over the years and its current role in the industry.

NOVEMBER 2020

57

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E X E C U T I V E P R O FILE :

Mark Hermans Title: Managing Director

Company: PwC

Industry: Manufacturing

Location: United States

Mark has over twenty years of operations transformation consulting experience with a focus on digital enablement. He has a successful track record helping clients with operations strategy development, operating model redesign, large-scale transformation, digital enablement, advanced analytics and operations due diligence. Areas of expertise include inventory reduction, materials management, supply chain planning and execution, network optimisation, lean manufacturing, order fulfilment and performance management.

59

Within PwC’s digital operations practice, Mark leads the Connected Supply Chain team, helping companies leverage emerging technologies to transform their supply chain operations. He has served clients across a variety of industries with a primary focus on industrial products and aerospace.

He has worked extensively with globally operating clients and has lived in Europe, the Middle East and the United States. Mark holds a Master of Science in systems engineerfrom the Delft University of Technology in The Netherlands and is APICS CPIM, and Six Sigma Black Belt certified.

ing

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

A I A U T O M AT I O N

“ At PwC, we help our clients solve complex problems” — Mark Hermans, Managing Director, PwC

opportunity to join him on board on a trip from Rotterdam to Japan. I experienced the magnitude of global supply

As a way of introducing yourself, can you start off by telling us a bit

watching containers being offloaded

about your career and your journey

and then quickly moving on to the

to finding yourself with PwC?

next port of call. I was hooked! I stud-

I was exposed to global supply

60

chains first hand pulling into a port,

ied Systems Engineering with a focus

chains at an early age. My father was

on supply chain operations and logistics.

a mariner on large cargo ships travel-

In my first job, I implemented factory

ling the world. Growing up, I would

scheduling systems and developed

visit my dad’s vessel when it was in

operations simulation models. I then

port in the Netherlands. I also had the

transitioned into operations consulting

NOVEMBER 2020

PwC’s Smart Factory Solution CLICK TO WATCH

|

1:18

61 advising clients on supply chain and

industry expertise in combination

manufacturing transformations lev-

with innovative digital tools and analyt-

eraging technologies. Even now I am

ics. We work throughout the entire

still fascinated when visiting a factory

transformation journey from the initial

or warehouse seeing the movement

strategy and solution development

of people, parts and equipment and I

through the execution of leveraging

can’t help myself and look for ways to

digital and analytics tools. Complex

make things run better.

problems typically require multithreaded solutions, working across

In your own words, how would you

supply chain, manufacturing, technol-

describe PwC? What gives it an edge

ogy, sales, finance, tax, tariffs and so

over competitors?

on. We have experts across all those

At PwC, we help our clients solve

areas, and we work side by side with

complex problems. Our edge is that

our clients to develop and implement

we have deep core operations and

practical solutions in an integrated ma nufa c t uri nggl o b a l. com

A I A U T O M AT I O N

manner. We use advanced digital solutions to get better insights and to get to results faster. For example, I am implementing our Factory Intelligence tool to help a manufacturer “win the hour” by reducing defects using sensors and smart analytics. On another project for an aerospace manufacturer, we implemented a critical chain simulator to proactively identify vulnerabilities and parts shortages in the end-to-end supply chain.

62

What does digital transformation currently look like in the supply chain and manufacturing industry today?

Supply chains are becoming more agile, faster and smarter. There is more visibility across the supply chain, starting with understanding consumer and consumer behaviour, e.g. using demand sensing to proactively identify shifts in consumer preferences and using supply chain control towers to understand the potential supply disruptions. Supply chains are also becoming more integrated with closer collaboration between customers, manufacturers and suppliers. Digital twin simulation capabilities enable NOVEMBER 2020

“ The manufacturing industry of today is a lot different than it was ten years ago.

Today, everything is a lot more connected, and with advances in analytics, there is the ability to optimise and adjust as things happen.”

— Mark Hermans, Managing Director, PwC

decision-makers to quickly re-assess and evaluate alternatives and adjustments. Automation is supplementing and replacing repetitive human tasks.

Ultimately we see supply chains evolve to autonomous, connected and selflearning ecosystems.

There has been a step-change in digital transformation within the supply chain and manufacturing industry over the past few years.

Companies typically rely on bulky standalone “modern” systems such as Manufacturing Execution Systems (MES) or Transportation Management Systems (TMS) in combination with their Enterprise Resource Planning (ERP) systems. This gives companies “base” functionality and capability in a specific operational area such as planning, manufacturing or transportation.

What we are now seeing is that with Industry 4.0/IoT concepts, companies are now looking to solve problems or use cases that require a combination of data from a number of these modern systems, as well as new data sources, requiring “base plus” capabilities to connect and analyse these diverse data feeds. For example, “base ma nufa c t uri nggl o b a l. com

63

A I A U T O M AT I O N

“ We are in the middle of a digital transformation, upskilling the entire workforce, developing and using innovative technologies to deliver value for our clients” — Mark Hermans, Managing Director, PwC plus” capabilities require environmen64

tal data from the shop floor such as temperature, vibration or images in combination with external sources like social media, traffic or news reports.

Companies can harness all that data

the overall agility of their operations

from various sources and use custom

leveraging existing “base” technology

apps to address key challenges and

infrastructure.

constraints in operations. For example, an app can check if production

How has automation and machine

lines are operating at rate. An app can

learning transformed manufacturing

identify where a particular forklift is.

and supply chains?

An app can identify if a CNC machine

Automation is changing the clock

is about to fail and needs maintenance.

speed of manufacturing and supply

An app can identify bottlenecks. This

chains. Everything is becoming faster

library of apps enables supply chain

and more autonomous: transactions,

and plant operators to improve qual-

analyses, alerts and decisions. It is

ity, reduce shortages and improve

also enabling things that were never

NOVEMBER 2020

Attracting new and different talent, re-skilling, upskilling is critical.

Workers need to be digitally and datasavvy. Repetitive tasks and decisions are being automated. New automation tools have transformed the jobs of supply chain analysts and procurement analysts to a more strategic instead of transactional role. Workers are now performing more strategic work assessing options and making trade-off decisions supported by analytics tools as opposed to performing simple transactions.

What are the main differences between the manufacturing industry possible before—like the ability to proactively identify trends and deliver

of today and the one ten years ago?

The manufacturing industry of today

a completely different customer expe-

is a lot different than it was ten years

rience. Companies that can harness

ago. Today, everything is a lot more

the power of automation and machine

connected, and with advances in analyt-

learning can leapfrog the competi-

ics, there is the ability to optimise and

tion. Big Data, in combination with

adjust as things happen. The underly-

advanced analytics, is enabling rapid

ing principles have not changed—the

learning and adjustments through

physics of a factory and supply chain

rapid closed-loop solutions.

still apply, such as lean, flow, balance,

It is also changing the role of the

rhythm and so on. Digitisation and

workforce, and it requires differ-

automation supplement these princi-

ent types of skills in the workforce.

ples, but they do not replace them. ma nufa c t uri nggl o b a l. com

65

A I A U T O M AT I O N

With the emergence of digital tech-

are performed faster and with a lot

nologies and supply chains becoming

more data. Everything is connected. It

more extended, there have been sig-

is more commonplace to analyse man-

nificant changes. There have been big

ufacturing data alongside finance data,

improvements in safety; there is less

training data, and quality data in order

paper, more automation, shorter flows,

to holistically understand operations.

more operator engagement, smaller batch sizes, smarter assembly and less re-work— all using data to rapidly

and changed the way

understand and address issues. The

manufacturers work?

opportunity to use advanced tools is

66

How has COVID-19 impacted

For many clients, the pandemic has

so much bigger. Ten years ago, you

been a rollercoaster in terms of

had to ask a software engineer to

demand swings and supply disrup-

develop an analytical tool to optimise

tions. In the immediate aftermath,

equipment throughput. Now, an intern

we have obviously seen measures to

can create that in a week. Analytics

protect worker safety, for example, physical spacing, A/B team schedules, use of PPE, etc. COVID-19 has also resulted in greater awareness of the vulnerabilities in today’s complex value chains from a supply base and health perspective and that “stable” demand can quickly change.

On a larger scale, it has also dramatically accelerated digital adoption with things like remote collaboration and customer and supplier interactions. Overall, supply chain leaders are thinking much more about agility and resilience. Companies are rethinking

NOVEMBER 2020

67 their operations footprints and

What do you believe are any

operating models and supply bases.

future trends that could play a more

Companies are re-assessing their

influential role in manufacturing

supply strategies and determining

over the coming years?

whether they have sufficient redun-

The future of manufacturing will

dancy and diversity in their supply

likely focus on anything that improves

base. Companies are contemplating

agility, speed, resilience and sustain-

regionalising, reshoring and nearshor-

ability—and the name of the game

ing. As companies consider reshoring,

will be to do it at scale. Overarching

they will have to rely on automation

the continued adoption of digital

in order to offset higher labour rates.

technologies will be the dominant

Companies are also investing in smart

trend. We are expecting continued

supply chain control towers to better

learning and adoption of AI and ML

understand customer buying patterns

to improve learning and drive real-

and proactively identity disruptions

time root cause corrective action.

and bottlenecks.

With advancements in analytics and ma nufa c t uri nggl o b a l. com

A I A U T O M AT I O N

simulation, the idea of a digital twin of a factory can become a reality.

Automation will continue, with the use of robots and cobots as well as flexible, small-batch manufacturing technologies. We are already seeing companies rethink what should be done in-house and what should be externally. I envision more distributed manufacturing and networks that can rapidly adjust based on the needs of the customer or changing supplier environments.

Continued tighter integration with 68

customers, engineering and suppliers will enable factories to rapidly respond to changes in customer preferences or supply profile.

What’s next for PwC and the manufacturing industry over the coming years?

What comes next is all about improving digital IQ and experience.

digital operations intelligence tools.

These are exciting times of rapid

We are creating tailored and flexible

innovation and change. We are in

analytics that are light-weight and

the middle of a digital transforma-

sit on top of existing applications.

tion, upskilling the entire workforce,

The manufacturing industry needs

developing and using innovative

to evolve quickly, with a lot more

technologies to deliver value for our

emphasis on services and software

clients. We continue to evolve our

instead of just physical products.

NOVEMBER 2020

69

The digital and physical worlds are blending together, and the market is evolving quickly. Winning in the market requires manufacturers to also focus on services and experience, not just products. It is all about the experience for customers, employees, and partners. ma nufa c t uri nggl o b a l. com

TECHNOLOGY - BLOCKCHAIN

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NOVEMBER 2020

71

The role of

BLOCKCHAIN

in manufacturing WRITTEN BY

SEAN GALEA-PACE

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

TECHNOLOGY - BLOCKCHAIN

Manufacturing Global examines the influence of blockchain technology in the industry

A

s factories around the world become increasingly interconnected, the influence of blockchain is becoming

more prevalent. The Factory of the Future spans

across a whole network of machines, parts, products and value chain participants, including 72

machinery providers and logistics companies.

Now, more than ever before, manufacturers face the challenge of securely sharing data within and outside factory walls.

To work out the best place for blockchain, a manufacturer must conduct a structured assessment which begins with identifying the company’s current business problems and future needs.

Subsequently, it can then explore how it leverages the technology to relieve the factory’s pain points and addresses its needs. Equipped with a strong understanding of the opportunities and challenges it faces, the manufacturer can then choose the most appropriate option from the available technology solutions.

NOVEMBER 2020

73

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W H AT I S B L O C K C H A I N ?

Blockchain is essentially, as the name suggests, a chain of blocks. However, instead of a physical chain, there’s digital information (the block) stored in a public database (the chain). When a block stores new data, it is added to the blockchain.

Blockchain-powered solutions can seamlessly aggregate all of the information to deliver significant value for industrial companies and help unlock the full potential of other advanced technologies, such as augmented reality, IoT and 3D printing.

In PwC’s 2018 Global Blockchain Survey, researchers found that 84% of executives across industries said their companies have had some involvement with blockchain, and 15% have live projects. The potential

Blockchain can scale transparency and trust through all stages of the

of blockchain-powered solutions to create value by empowering firms

industrial value chain, from sourcing raw materials to delivering the finished product. Pain points it could help address, include: Supply chain monitoring for greater transparency Materials provenance and counterfeit detection Engineering design for longduration, high-complexity products Identity management Asset tracking Quality assurance Regulatory compliance ma nufa c t uri nggl o b a l. com

75

TECHNOLOGY - BLOCKCHAIN

to overcome challenging problems is

or industrial manufacturing sectors.

clear. Blockchains can increase trans-

Through focusing on four key areas in

parency throughout supply chains,

initial blockchain efforts, companies

track the identity and credentials of key

can set themselves on a path towards

personnel and allow for more seam-

successful execution. In PwC’s report

less audit and compliance functionality.

‘How can blockchain power industrial

Industrial manufacturing firms are

manufacturing?’, the four best prac-

already recognised as being out front

tices for blockchain solutions were

in developing the technology - with

examined.

respondents in its survey ranked as the sector second among industries

1. Make the business case

leading the way in blockchain.

Blockchain can be a powerful tool;

Blockchain solutions can create 76

however, it’s not indestructible. It’s

value for industrial organisations in

vital to ensure it is a strategic fit. While

several different ways. However, it

there’s a necessity to ensure differ-

doesn’t mean that it is an equally

ent parties share and update data,

tenable solution for all companies

blockchain solutions are particularly effective when time is short, and trust between parties is needed.

2. Build an ecosystem Bringing together a group of stakeholders to collectively agree on a set of standards that will define the business model is one of the biggest challenges in blockchain. Participants have to decide the rules to take part, how to ensure that costs and benefits are evenly distributed and what risk and control framework can be used.

NOVEMBER 2020

Blockchain Technology in Manufacturing Industry CLICK TO WATCH

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18:07

77 3. Design deliberately

4. Navigate regulatory uncertainty

Much consideration must be given to

Regulators worldwide are still

a blockchain’s design. Will it be permis-

examining the potential responses

sionless, allowing anyone to initiate

to the ever-increasing influence of

and view transactions or permissioned,

blockchain-led solutions. According

restricting access to certain parties?

to PwC’s 27% of survey respondents,

PwC’s Global Blockchain Survey shows

26% of which are based in the US,

companies are adopting both of these

believe that regulatory concerns are

approaches as well as developing

the number one barrier to blockchain

hybrid implementations. Permissioned

adoption. Instead of waiting for regu-

blockchains are expected to be more

lators to set the blockchain agenda,

appropriate for most enterprise solu-

organisations that see value in the

tions since their owners or governing

technology should be proactive. It’s

bodies can structure rules with an eye

important to engage with regulators,

on privacy and data security.

elected officials and industry groups ma nufa c t uri nggl o b a l. com

TECHNOLOGY - BLOCKCHAIN

to make the case that blockchain technology can be trusted, sooner rather than later.

BLOCKCHAIN IN MANUFACTURING There is great potential for blockchain in manufacturing. Increasing visibility across all areas of the process from suppliers, strategic sourcing, procurement and supplier quality to shop floor operations which include machine-level monitoring and service, blockchain can allow for an entirely 78

new manufacturing business model.

Supply chains are the basis of all manufacturing businesses, most of which are capable of making use of blockchain’s distributed ledger structure

technology is being increasingly used

and block-based approach to aggre-

within manufacturing, particularly in

gating value-exchange transactions to

the supply chain. Many industries,

improve efficiency. By scaling supplier

including aviation and pharma-

order accuracy, product quality and

ceuticals, have well-documented

track-and-traceability, manufacturers

problems with counterfeiting, and

will be able to better hit delivery dates,

using blockchain can help ensure that

enhance product quality and ultimately

components are genuine,” he says.

sell more.

“While mass adoption is yet to be seen

Richard Waterhouse, Chief Strategy

in construction products manufactur-

Officer, NBS, recognises the true value

ing, this is only likely to be a matter of

of blockchain and believes its influ-

time, particularly within the UK as leg-

ence will only increase. “Blockchain

islation will lead to an increased focus

NOVEMBER 2020

79

“ I nstead of existing on paper, smart contracts exist as a computer programme on a blockchain.

The terms and conditions of a contract are unable to be changed, ensuring a level of trust that can’t be achieved by humans alone” — Rafi Billurcu, Partner, Manufacturing at Infosys Consulting ma nufa c t uri nggl o b a l. com

TECHNOLOGY - BLOCKCHAIN

80

“ A blockchain approach would improve standards, increase trust and also improve project delivery speed as the need for human validation at every step would be reduced” — Richard Waterhouse, Chief Strategy Officer, NBS NOVEMBER 2020

on safety.” However, Waterhouse

chains. It can offer a permanent digital

understands that it will take time

record of materials, parts and prod-

for the introduction of blockchain

ucts, which allows for the promotion

to be felt widespread. “In construc-

of end-to-end visibility and provides

tion, there is a move towards ‘the

a single source of truth to all partici-

golden thread of information ‘, and

pants. These benefits are important

this includes a requirement for unique

if the supply chain includes several

identifiers for every construction

participants with independent IT sys-

product and its associated literature.

tems or if there is a lack of trust among

The aim is that building standards

participants or necessity to onboard

will improve and errors from incor-

new participants.

rect product specification or shoddy work will be stamped out. The block-

2. Protecting and monetising critical

chain could well be instrumental in

intellectual property

improving information auditing and

Organisations across manufacturing

accountability.”

industries face a reliance to protect

“Being clear, this is not going to

IP. In tandem with cost, IP protection

happen immediately. There are real

is an important consideration in deci-

barriers, such as the maturity of the

sions about whether to make parts

systems, along with understanding,

in-house or buy them from a supplier.

and the willingness to adopt.”

One possibility is for a company to utilise blockchain technology to help

BCG: FIVE WAYS BLOCKCHAIN CAN CREATE VALUE IN THE FACTORY OF THE FUTURE?

prove that it owns IP in the event of a patent dispute. For example, Bernstein Technologies has developed a web service that enables its users to reg-

1. Enhancing track and trace

ister IP in a blockchain. The service

Companies can leverage blockchain to

creates a certificate that proves the

exchange data more easily, accurately

existence, integrity and ownership

and securely within complex supply

of the IP. ma nufa c t uri nggl o b a l. com

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TECHNOLOGY - BLOCKCHAIN

82

3. Simplifying and safeguarding

checks and production process data.

quality checks

The database uniquely tags each

By leveraging blockchain to support

product and automatically inscribes

quality control, an organisation can

every transaction, modification or

scale value for customers, another

quality check on the blockchain. To

primary objective of the factory of the

allow this application, the production

future. Today, in the place of block-

setup must include automated quality

chain, providing full transparency and

checks that generate and write meas-

complete documentation to cus-

urements directly to the blockchain.

tomers with regard to the quality of

This use case supports multiparty

processes and products that require

access to data and can eliminate the

expensive support from central par-

need for inbound quality control to ver-

ties that operate IT platforms.

ify checks that the supplier performs.

In addition to helping customers

It may also reduce the need for audits

track and trace inbound parts along

by original-equipment manufacturers

a supply chain, blockchain creates

or central authorities to verify quality

immutable documentation of quality

controls.

NOVEMBER 2020

4. Advancing machines as a service Blockchain accelerates the possibilities of using an innovative pay-per-use model for machinery, often known as machines as a service (MaaS). In this model, instead of selling production equipment, a machinery provider charges for the equipment’s use on the basis of the output that it generates. For example, instead of selling a compressor,

to manage the greater complexity

the machinery provider sells com-

and technological sophistication

pressed air by volume. By relying on

of advanced production machinery.

MaaS instead of owned machines,

In order to facilitate outsourced

manufacturers can avoid large

maintenance, users append service

upfront investments and can easily

agreements and installation documen-

upgrade equipment to gain access

tation related to each device to the

to the latest technology. If applied

blockchain record, creating a digital

correctly, the MaaS model will allow

twin of the device. Blockchain technol-

manufacturers to scale their pro-

ogy can then allow for the automated

duction flexibility effectively.

execution of and payment for scheduled maintenance. A machine that

5. Enabling machine-controlled

requires maintenance can trigger a

maintenance

service request and generate a smart

Blockchain can support new

contract for the work or for a replace-

maintenance approaches, like

ment part. Upon fulfilment of the

automated service agreements

order, payment processing happens

and shorter maintenance times.

automatically. In addition, immutable

These innovations are necessary

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TECHNOLOGY - BLOCKCHAIN

history is appended to the blockchain record. Such applications, which are still in the early development phase, increase the reliability of equipment, facilitates the monitoring of equipment health and attrition and creates auditable health assessments of the machinery.

Rafi Billurcu, Partner, Manufacturing at Infosys Consulting, believes that in manufacturing, one use of blockchain that has seen success is the creation 84

of smart contracts in global supply chains. “Documents and contracts are the beating heart of any supply chain.

Rather than storing these in silos across the legal, procurement and

humans alone. What makes smart con-

accounting departments of various

tracts truly ‘smart’ is their ability to not

companies, as in a traditional supply

only streamline and automate entire

chain, in a blockchain, each of these

processes but to perform human tasks

elements can be stored on decentral-

such as monitoring inventory or nego-

ised and highly-encrypted nodes in a

tiating prices with other parties. In all,

‘smart contract’.

smart contracts can automatically

“Instead of existing on paper, smart

track supply chain levels, inventory

contracts exist as a computer pro-

levels and prices, replacing expensive,

gramme on a blockchain. The terms

manual processes. This ultimately

and conditions of a contract are

reduces cost and enables manufac-

unable to be changed, ensuring a

turers to maximise profits – without

level of trust that can’t be achieved by

compromising on credibility and trust.”

NOVEMBER 2020

models. As a result, more efficient factory operations that require data sharing and collaboration among complex networks of companies and machines will be created and set as a new norm across the industry.

Billurcu adds that with blockchainbased smart contracts having a greater influence across supply chains, any buyer can find a contract and act on instantaneously. “This means they get the product they need and can pay for it without the expensive overheads associated with traditional supply chains,” says Billurcu. “This could mean a radical overhaul in the way international trade is conducted – by

WHAT DOES THE FUTURE HOLD?

speeding up transactions, reducing

Manufacturing has always been

reliance on paperwork, and bringing

considered an industry that is set in

cost-efficiency to the fore.”

its ways. However, with technology

With the future in mind, Waterhouse

such as blockchain, AI and machine

has a clear vision of what the coming

learning playing a more influential role,

years could look like in a blockchain

the Factory of the Future is set to look

world. “A blockchain approach would

very different. As blockchain technol-

improve standards, increase trust and

ogy matures, it will, through trust, allow

also improve project delivery speed as

manufacturers to clear some hurdles

the need for human validation at every

that have impeded the full-scale

step would be reduced. This would

deployment of other next-generation

lead to knock on improvements around

technologies and innovative business

product availability and lead times.” ma nufa c t uri nggl o b a l. com

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T O P 10 – A I P L AT F O R M S

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NOVEMBER 2020

AI PLATFORMS Manufacturing Global examines ten companies that are leveraging AI in manufacturing WRITTEN BY

SEAN GALEA-PACE

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T O P 10 – A I P L AT F O R M S

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10

Veo Robotics US$16.2mn

Veo Robotics is digitally disrupting manufacturing through products that harness advanced computer vision, 3D sensing and AI. Its first product allows for high-performance industrial robots to work together with people to allow for much more flexible, productive and efficient manufacturing workcells. In 2019, the firm announced the launch of Veo FreeMove, its safety-ratable, production-ready vision system for safe human-robot interaction. The system provides manufacturing engineers with the freedom to combine the strength, precision and speed of standard industrial robots with the ingenuity, judgement and skill of humans.

NOVEMBER 2020

09

Mythic

US$31.4mn

Mythic is a manufacturer of intelligent processing units for a number of devices, including some in the manufacturing sector.

The firm has created a unique AI computing platform that enables smart camera systems, intelligent appliances, state-of-the-art robotics and more. The platform allows AI designers to deploy in form factors that were previously out of reach, which is the result of unmatched performance and energy efficiency. Key features include the lowest latency, highest performance per watt, hyper scalability and ease of use.

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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

T O P 10

91

08

Uptake US$71.3mn

Uptake empowers industrial companies to digitally transform through open, purpose-built software which provides outcomes that matter. Uptake offers industrial intelligence software for manufacturing that combines material, process and equipment data to optimise production and maintenance. Uptake aims to increase production throughput, improve overall product quality and lower operating costs. Through Uptake, customers can make data-driven operational decisions while driving operational efficiency.

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

T O P 10 – A I P L AT F O R M S

07

Intel

US$71.8bn

Intel’s AI Analytics Toolkit provides developers, researchers and data scientists with high performing Python libraries for data analytics and machine learning. Users can also access Intel-optimised versions of deep learning frameworks, including TensorFlow and Pytorch, to streamline end-to-end data science and AI workflows.

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NOVEMBER 2020

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06

IBM Watson Studio US$77.1bn

IBM Watson Studio helps data scientists and analysts prepare data and develop models at scale across any cloud. With its open, flexible multi-cloud architecture, Watson Studio offers capabilities that empower businesses to simplify enterprise data science and AI by automating AI lifecycle management through three critical pieces of software. AutoAI visually prepares data, while IBM SPSS Modeler builds data models through images with the assistance of IBM Watson Visual Recognition.

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T O P 10

05

Johnson & Johnson US$82bn

Johnson & Johnson is one of the leading healthcare companies worldwide. As a result of COVID-19, the organisation is utilising Google Glass technology to allow someone at a remote location to virtually see the same thing that a worker in front of a machine is seeing. This development allows for increased efficiency and productivity and a continuation of manufacturing despite the global pandemic closing down the majority of factories for the purpose of employee-wellbeing.

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T O P 10 – A I P L AT F O R M S

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04

General Electric US$95.2bn

GE is a leader in offering state-of-the-art AI platforms. In its GE Healthcare division, the organisation provides Edison, a system that allows its users greater efficiency, improved patient outcomes and better access to care. GE Research sits next to the Cloud and the Edge, physical and digital and is at the forefront of new AI concepts and developments for the industrial world. These include Digital Twin, Humble AI, Digital Ghost, Digital MRO, AIRx, Additive Manufacturing, Digital Thread for Design and Trusted Autonomy.

NOVEMBER 2020

03

Google AI Platform US$134.8bn

Google Cloud’s AI Platform allows developers, data scientists and data engineers to streamline their machine learning workflows.

Whether it is point-and-click data science using AutoML or advanced model optimisation, AI Platform allows its users to transition their projects from ideation to deployment with ease. Its ecosystem of connected devices, products and solutions drive revenue growth, operational excellence and innovation across the entire manufacturing value chain.

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T O P 10 – A I P L AT F O R M S

02

Microsoft Azure US$143bn

Microsoft Azure is one of the most in-depth platforms around.

The platform offers a number of services that are easy to access and user-friendly, whether you want to set up a website, create a 100

database, maintain and administer projects or develop, deploy and support your applications. Through the Industrial Internet of Things (IIoT) and Microsoft Azure, you can gain actionable insights and respond quickly to customer feedback and market trends.

NOVEMBER 2020

Bringing AI to the edge: Azure Cognitive Services in Containers CLICK TO WATCH

|

2:09

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T O P 10 – A I P L AT F O R M S

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AWS Machine Learning Helps Solve Unique Problems CLICK TO WATCH

NOVEMBER 2020

|

2:14

Amazon Web Services US$280.5bn

Recognised as a Leader in the Gartner Magic Quadrant for Cloud AI Developer Services, AWS offers a comprehensive set of tools for businesses to create impactful machine learning solutions quicker.

AWS provides a range of different AI services, such as advanced text analytics, automated code reviews, chatbots, demand forecasting, document analysis and enterprise search.

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NOVEMBER 2020

MITIGATING COVID-19 DISRUPTION IN MANUFACTURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

GLEN WHITE

ma nuf a c t uri nggl o ab l. com

105

L&T TECHNOLOGY SERVICES

Prabhakar Shetty, Global Head of Manufacturing Services at L&T Technology Services, discusses his organization’s digital transformation in manufacturing against the backdrop of COVID-19 L&T Technology Services (LTTS) is a global leader in Engineering and R&D services. With 525 patents filed for 53 of the Global Top 100 ER&D spenders, LTTS revolves around engineering.

Prabhakar Shetty is the Global Head of Manufacturing Services at LTTS. Having joined 106

the organisation in 2017, Prabhakar oversees the digital led initiatives across verticals including Industry 4.0, smart cities and digital manufacturing, managing PLM, manufacturing operations, asset management, content management and engineering managed services. With more than 30 years of international experience across industry verticals, Shetty has been one of the key industry leaders who has played an active role in the rise of digitalisation in manufacturing.

“If you look two decades back, most of the industries were looking at process improvements with the whole idea centered around globalisation and ensuring that processes were as efficient and as lean as possible,” says Shetty. “The ensuing ERP phase saw the collaboration of customer

NOVEMBER 2020

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Listen to the Podcast here

L&T TECHNOLOGY SERVICES

“I believe a massive technological shift is underway”

110

the volume of business grew and it became much more global, it gave birth to niche interventions around functions like sourcing, supply chain,

— Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

CRM, planning etc. Companies like

management, human resource,

highly complex and intelligent products

business intelligence, financial man-

and systems that can talk to each other

agement, inventory and supply chain

while generating huge amounts of data.

capabilities into one system. This

I believe a massive technological shift

helped to bring together customer

is underway. But the question revolves

management, human resources,

around how to harness the data com-

business intelligence, financial man-

ing out of the shop floor, products and

agement, inventory, and supply chain

various collaborative functions.”

capabilities into one system. When

i2 evolved solutions which clearly defined outcomes of core processes.

“In the current environment, we have

The COVID-19 pandemic has caused disruption across industries worldwide.

Shetty believes it has highlighted the importance of planning and mitigating against situations that are deemed improbable in the past.

NOVEMBER 2020

LTTS: Plant Engineering Services CLICK TO WATCH

|

2:44

111 “Considerations for business

if any of these nodes to go down. You

continuity planning are usually for

also need to have a crisis management

predictable and foreseeable threats

team to act on these and identify the

to normal working” explains Shetty.

risk associated.”

“This could be transportation, sup-

Shetty affirms that it is important

plier disruptions or power issues and

to be agile and proactive in order

these events are easier to anticipate.

to succeed in an environment that

However, COVID-19 has shown how

is continuously changing as a result

important planning is.”

of the pandemic. “Nobody could have

“It’s important to break down your

foreseen this and it meant that any

business into different nodes, for each

reactions were knee-jerk and clearly

of those nodes assess the failure of

caused major disruption across the

the impact from two standpoints:

entire supply chain,” explains Shetty.

the financial and operational. Based

“It’s important to ask yourself: as a

on that you plan for remedial actions

services company how can you help ma nuf a c t uri nggl o ab l. com

L&T TECHNOLOGY SERVICES

112

“ It’s important to ask yourself: how can you help customers at a time like this? There’s no precedent or framework for this type of situation” — Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

across functions like product design,

manufacturing, sales, and service. For example it’s key to have design flexibility because your original product might

customers at a time like this? There’s

not sell and you may have to change

no precedent or framework for this

components or even the whole prod-

type of situation.”

uct. During the pandemic, you’ve seen

“We launched a program called

automotive companies that wouldn’t

F.R.U.G.AL based on flexible, remote

usually offer medical supplies delve

and agile methodologies. Rapid

into that market to produce ventilators,

transformations were expected

for example.

NOVEMBER 2020

“It’s also important to consider manu-

your workforce to work with alternates.

facturing operation flexibility and how

These are all important considerations.”

you can quickly transition from one prod-

Cloud is also a key area and Shetty

uct to another. How can you repurpose

explains how the coronavirus is forcing

your manufacturing lines? If you have a

manufacturers to rethink their overall

demand spike, how do you look at line

cloud strategy.

expansion? If certain components are

“There are a few elements you need

not available how do you quickly train

to be aware of with cloud because how

E X E C U T I V E P R O FILE :

Prabhakar Shetty 113

Title: Global Head – Digital Manufacuting Services Industry: Information Technology & Services Prabhakar is a seasoned executive with extensive experience in building and nurturing successful consulting and technology businesses. He has over 30 years of international work experience within the manufacturing, retail and CPG space with repeated success guiding multimillion-dollar portfolios with P&L responsibility.

In his current role as Global Head Digital Manufacturing Services at Larsen & Toubro Technology Services (LTTS), Prabhakar leads multiple units like PLM, Manufacturing Automation, Asset Management, Engineering Content Management and Managed Services. This group leads all the digital led initiatives across verticals including Ind 4.0, Smart Cities etc. Prabhakar has initiated multiple solution streams to leverage LTTS pedigree in core engineering and align it with new age applications and technologies. ma nuf a c t uri nggl o ab l. com

L&T TECHNOLOGY SERVICES

114

“ Partners should be aligned to the end goal of the value chain to serve customers to meet their business objectives” — Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

you use and consume technology will

You have the foundation processes layer

significantly change. Implementation

that generates data, the technology layer

models will be different because we can’t

where all enterprise applications reside,

afford five-month consulting studies &

the experience layer where the user will

then do a long drawn implementation

be interacting with the system, and then

or rollouts – we need something that’s

cognition. The outcome of analytics is

ready now.

critical. But a wider view across these

“This means that most of the applica-

5 elements is critical.”

tions on the cloud need to be pre-built.

With the importance of developing

We feel that the cloud system architec-

key, strategic partnerships in mind,

ture will be divided into four or five layers.

Shetty highlights that it’s impossible

NOVEMBER 2020

partners. Today’s customers want one entity who can look after the entire value chain. It can be multiple players who can add to the big picture. But all these partners should be aligned to the end goal of the value chain to serve customers to meet their business objectives.”

Looking to the future, Shetty believes that digitalisation will continue to transform the manufacturing industry and play an influential role. “In the last five years, technology has enabled transformation around us. It has become cheaper and customers have become more agile to adopt & leverage the latest tech. Products have become complex because you have different elements in today’s intelligent products. With a complex ecosystem, it’s important you to work in silos and meet changing

have versatile skillsets across the

market demands.

board. LTTS has brought together lots

“When you look at the value chain

of partners to create an ecosystem of

today, what is impacting it the most? It’s

excellence which can help build value-

a rapidly changing business model and

added solutions to end customers to

there are lots of new technologies being

transform their business model.”

introduced and you can’t do everything yourself,” says Shetty.

“You need to have various ecosystem partners and traditionally people thought that partners meant only technology ma nuf a c t uri nggl o ab l. com

115

116

Driving value-added technology in manufacturing WRITTEN BY

GEORGIA WILSON PRODUCED BY

GLEN WHITE

NOVEMBER 2020

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TWINTHREAD

Erik Udstuen, CEO at TwinThread, discusses digital innovation, realizing value and the current technology trends in the manufacturing industry

W

orking in the industrial automation and manufacturing space for 25 years, Erik Udstuen began his career as a chemi-

cal and process engineer working in the pulp and paper industry, before forming his own company in the early nineties providing customers with manufacturing optimization solutions for multiple 118

sectors. After selling the company to General Electric (GE) in 2003, Udstuen joined the firm in 2007 as a Senior Executive driving digital transformation across multiple business units. “I left GE in 2012 and went back into the startup world and formed a couple of other companies, the latest company is TwinThread,� comments Udstuen, who believes that a significant differentiator between TwinThread and other organizations is its results guaranteed position. “The idea of TwinThread is to provide similar capabilities and concepts that monitor and optimize a fleet of power plants or gas turbines to other industries like manufacturing, consumer products, food and beverage, and automotive. The enabler for this is the fact that we have these pre-built applications that someone can just take, apply and NOVEMBER 2020

119

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TWINTHREAD

With this in mind, when it comes to digital innovation, TwinThread’s vision is “to be able to optimize on a global basis and drive 1 or 2% more efficiency out of manufacturing operations or a network of assets,” adds Udstuen.

In order to achieve this he further explains that “the enabler is algorithms and the power of technology such as machine learning to make that practigain valuable insights without having

cal. We have a customer, for example,

to go through a long deployment.

that is monitoring 450 data centers

“We embrace the opportunity to 120

across the world and they’re doing that

deploy pilot projects that deliver proof

with just a few people. The only way

of value for outcomes and that as well

that becomes practical and economi-

is very unique. In doing so, we want to

cally feasible is if you apply algorithms

roadmap and fund future opportunities

and machine learning technologies.

for our customers.”

With these capabilities, organizations

“It may be a bit of a cliche, but really the executive buy-in sponsorship commitment to any kind of digital transformation effort is essential” — Erik Udstuen, CEO, TwinThread

NOVEMBER 2020

121

can drive innovative opportunities to

terms of the culture and mindset

drive efficiency.”

in this new digital age, and with the

When it comes to deploying a digi-

incorporation of machine learning

tal strategy, Udstuen highlights the

and artificial intelligence technolo-

importance of having the right culture

gies, leaders have to think in terms of

and mindset. “It’s critical. It may be a

their change management strategy

bit of a cliche, but really the execu-

- how do you bring together the roles

tive buy-in sponsorship commitment

of the IT teams, the data scientists

to any kind of digital transformation

and the engineer to understand the

effort is essential. But maybe what

data and solve business problems

potentially is less obvious is that in

using digital technology.” ma nuf a c t uri nggl o b a l. com

TWINTHREAD

“ With the advancement of innovative technology such as machine learning, cloud computing, artificial intelligence (AI) and 5G, the concept of connected environments are becoming more and more feasible and in real-time” — Erik Udstuen, CEO, TwinThread

122

TwinThread - Digital Innovation CLICK TO WATCH

NOVEMBER 2020

|

1:53

123

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TWINTHREAD

124

Within the industry, Udstuen

implementing artificial intelligence

explains that when it comes to the

and machine learning based tech-

importance of technology, ‘we’re

nologies. But, only 16% actually have

obviously very biased given that we’re

a program that’s deploying that

a technology company, focused on

technology. So there’s a huge gap

applying machine learning and artificial

between the desire and the people

intelligence technologies. However,

that are actually implementing.

in a recent Harvard business review

The trends in terms of the applica-

article, it was suggested that 84%

tion of that technology are clear,

of leaders believe they should be

but the trends of how to actually

NOVEMBER 2020

get moving and start deploying that

began investing in sensor technology,

technology, those trends are only just

the technology to record the data

emerging.” Udstuen also highlights

from the sensors and the technology

that within that article, it was refer-

to store the data for long periods of

enced that successful companies

time. In the mid two thousands this

that are applying this technology are

expanded into most industries which

doing two key things. “One is the use

means that there are billions of sen-

of cross functional teams, and the

sors that have been deployed and

other is making the commitment and

are collecting data.

adopting technology in production as a first step.”

Other trends within the industry

Today, the concept of connected factories and fleets is to mine new insights from not only the informa-

seen by Udstuen include the concepts

tion that’s already been collected,

of connected factories, connected

but also new data being created.

fleets and predictive maintenance.

With the advancement of innovative

“Starting with manufacturing there

technology such as machine learning,

are multiple innovations and layers

cloud computing, artificial intelligence

to the technology, some are new and

(AI) and 5G, the concept of connected

some have been around for a while.

environments are becoming more

In the mid nineties, organizations

and more feasible and in real-time.”

“ There’s a lot of value in looking backwards and understanding what went wrong and what went right, but it is a whole new level of value to be able to look forward and anticipate problems” — Erik Udstuen, CEO, TwinThread ma nuf a c t uri nggl o b a l. com

125

TWINTHREAD

126 E X E C U T I V E P R O FILE :

Erik Udstuen Title: CEO

Company: TwinThread

Industry: Internet

Location: Charlottesville, Virginia

Erik’s in-the-field industrial experience working as a chemical and process engineer, paired with his proven acumen for co-founding successful tech. start-ups is what fuels his passion for developing and driving innovative, game-changing solutions specifically tailored for manufacturing organizations committed to ever-improving efficiency and performance.

His 25 years in the manufacturing sector have equipped him with the background necessary to know exactly what it is engineers, operators, problem-solvers and domain experts need. They need a predictive platform that will cater insights to their understanding, so they may be unleashed to expand their reach and effect greater operational change.

NOVEMBER 2020

TwinThread - Trends in the Industry CLICK TO WATCH

|

2:55

127 Another part of TwinThead’s vision

the problems might be, and to be able

is that “a modern operating strategy

to act before those problems manifest

should be one where a company can

themselves. There’s a lot of value in look-

optimize their entire enterprise of assets

ing backwards and understanding what

efficiently. It’s no longer about optimizing

went wrong and what went right, but it is

a single plant or a single line. It’s about

a whole new level of value to be able to

how to optimize the performance of all of your assets and do that efficiently.

This is where predictive maintenance comes in. It’s one thing to be able to look backwards and say, these were the problems that I had and this is how I applied these resources enabling me to solve the problem. It’s another to be able to look forward and to anticipate where

2018

Year founded

30+

Number of employees ma nuf a c t uri nggl o b a l. com

TWINTHREAD

“ A modern operating strategy should be one where a company can optimize their entire enterprise of assets efficiently, it’s no longer about optimizing a single plant or a single line” 128

— Erik Udstuen, CEO, TwinThread

TwinThread - Future Innovations CLICK TO WATCH

NOVEMBER 2020

|

4:09

129

look forward and anticipate problems

blocks, and actually create applica-

and to have strategies in place, to deal

tions out of them so that customers

with problems in real-time in a proactive

can just deploy the application that

and predictive way,” comments Udstuen.

solves the problem without having to

Reflecting on the future, Udstuen

conduct the development work based

believes that from a TwinThread per-

on a tool set. This helps to eliminate

spective what the company is trying to

the development time so that custom-

continuously achieve, “is that with any

ers can get straight to deploying and

adoption of technology, an organiza-

straight to getting value.”

tion requires a tool set to do their own development work, in order to turn the technology into an actual application that delivers value. So what we’re trying to drive is the ability to take those building ma nuf a c t uri nggl o b a l. com

130

Digital Transformation in the Tobacco & Vaping Industry NOVEMBER 2020

131

WRITTEN BY

WILLIAM SMITH PRODUCED BY

LEWIS VAUGHAN

busi ne ssc h ief . eu

JTI

Chief Information Officer Atiq Samad reveals the transformations he has overseen at JTI, from industry 4.0 to artificial intelligence

J

TI is the world’s third largest tobacco company, operating in 130 markets with a workforce of 44,000 people, 29 fac-

tories, 8 R&D centers and 6 tobacco processing facilities around the world. The company’s Chief 132

Information Officer is Atiq Samad, and he has been in the role for two years. Such a large, global company has had a head start on the adaptations companies are experiencing worldwide in the face of the ongoing COVID-19 pandemic, as he explains: “Fortunately at JTI, we were already used to having virtual teams, because we are spread out all across the world, representing many different locations.

We’ve learned over the last 15, 20 years how to work in a virtual team.”

When Atiq joined JTI, he made it his mission to look at the company’s IT landscape holistically, in order to modernize its technology platforms under the banner of a Business Platform Modernization (BPM) program. “We were one of the first big companies with a single instance database on SAP

NOVEMBER 2020

133

busi ne ssc h ief . eu

DISRUPT DISRUPTION

How Wipro helped JTI implement a milestone program and reduce friction.

Enterprises must do the near-impossible: Meet the high expectations of their customers and do it at the lowest cost possible. That’s why 93% of enterprises are embracing digital transformation to deliver greater value to their business.

However, adding digital transformation initiatives on top of the day-to-day operation priorities is a big ask for most technology departments. JTI experienced this first-hand: IT management bandwidth was consumed in putting out fires, such as delivery quality issues and difficult supplier relationships. With no time left to innovate for the broader business objectives, JTI needed a solution that would allow its IT team to focus on what’s important.

JTI sought help from a partner that could meet its needs by managing their global data center and cloud services — at scale, integrated and at a competitive cost. Wipro became exactly that partner. Wipro team quickly became immersed with the JTI team working toward the same goals. In fact, Wipro was onboarded in just 2 ½ months — three weeks ahead of schedule!

Lately, Wipro team has also supported JTI in their strategic BPM program: Wipro team worked diligently behind the scenes in multiple areas: data centers, SAP and more.

Since Wipro has started providing Data Center and Cloud services, JTI has seen tangible improvements and overall services stabilization, including a steep drop in Priority 1 incidents and a reduction in the incident/change backlog.

Wipro has done a tremendous job of transitioning our global Data Center Operations in a very short time and without disruption.

Not only could they deliver a superior service as of day one, but they also kept improving and adding value. Ultimately, Wipro earned JTI’s trust and could further develop a successful relationship.

— Guilain Rogg • VP, JTI

Our partnership with Wipro is a strong one based on solid execution, trust and commitment. Wipro has brought their best to create value for our business.

I especially appreciate the focus on not only execution but also innovation that touches various aspects of our business.

– Atiq Samad • CIO, JTI

A CONVERSATION WITH VINU VARGHESE BUSINESS HEAD — CONSUMER BU CONTINENTAL EUROPE, WIPRO

Wipro A true partner for digital transformation In an ever-evolving business and digital landscape, enterprises need to be able to innovate while maintaining their core offerings.

Wipro is the ideal strategic partner for helping enterprises unlock value through digital transformation, thanks to its internationally recognized expertise that extends far beyond data center and cloud operations. Wipro Digital and Designit are helping transform our customers’ business in fundamental ways.

Learn more about our capabilities today.

Wipro • Wipro Digital • Designit

JTI

136

“ We’re looking at the digital employee experience, and we’re even challenging the concept of offices entirely” — Atiq Samad, CIO, JTI

that moved from ECC to S/4HANA. And this was of course a big technology migration, but not only that, we also did a finance transformation.

In terms of our CRM, as part of our trade marketing excellence (TME) program, we decided to go to the latest technologies with Oracle, which is the Oracle Engagement Cloud. We’ve also brought in a single source of truth called One Data, and we‘re looking into the factories and logistics too, to bring them up to the same level.”

NOVEMBER 2020

It’s not just technology that has

the technology investment portfolio

changed as part of the BPM ini-

management process, where we have

tiative, but also the culture. “We are

a portfolio of all the technology invest-

bringing in an investment mindset.

ments. We look at each investment

So, hand-in-hand with the business

and look at both their initial business

platform modernization program,

benefits and their strategic fit to make

we have implemented what we call

a strategic roadmap.”

E X E C U T I V E P R O FILE :

Atiq Samad Title: CIO Company: JTI Industry: Tobacco & Vaping

137

Location: Switzerland

Atiq Samad, Chief Information Officer (CIO) for JTI has held the position for the past two years and is responsible for JTI’s worldwide IT organisation.

Atiq is accountable for the definition and execution of JTI’s long term IT strategies and responsible for the technology investment portfolio that supports JTI’s growth ambitions.

Atiq began his career RJRI/JTI in 1994 and has consistently taken on new roles with increased accountability across the entire IT function, including leadership over the Center of Excellence, IT Global Development Center and Business Platform Modernization (BPM).

Atiq holds a Bachelor of Technology degree from Indian Institute of Technology and MBA degree from Indiana University. Atiq lives in Nyon, Switzerland with his wife and 2 children.

busi ne ssc h ief . eu

JTI

“ At JTI, we were already used to having virtual teams, because we are spread out all across the world” — Atiq Samad, CIO, JTI

Part of that strategic roadmap has been embracing emerging technologies. “We’re expanding into artificial intelligence, IoT, robotic process automation. We already have them on a small scale, but now we’re going to expand further into the digital space.”

Future projects coming down the line include getting more out of data with buyer insights and predictive analytics. “We’re looking into the digital space, and how we can leverage IoT for our vaping products, for

140

example. That also opens us up to

NOVEMBER 2020

We are JTI CLICK TO WATCH

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141 practice ecommerce - which we can’t with our traditional business.” The transformation goes further into the manufacturing sites themselves. “We are also looking into industry 4.0,” says Samad, “which we already do in terms of manufacturing, operations management and quality sensors. But we want to expand this and really look into transforming our manufacturing and factories. We’re also doing a project now that’s focused on our global supply chain. That’s building the foundation for greater sales forecast and operations planning (S&OP), where we busi ne ssc h ief . eu

key people remarkable projects

#Precise Resourcing Outcome Focussed RealTime Hiring Decisions Assured Accuracy PreciseResourcing@hansonregan.com

will look at the entire company’s sales

Orange Business Services and Wipro.

and operations planning process - but

In addition to that we engage with mid-

that’s for the future.”

sized companies that give us more

JTI’s technological transformation

agility and flexibility. Some of these

has required the participation of a

companies started very small and they

number of partners such as Hanson

grew with us, so they feel part of the

Regan and STL. Samad notes that the

team spirit that we have created at JTI.”

companies it works with vary in scale.

Thanks to the existing measures

“We have a few big strategic partners,

put in place by Samad and his team,

we work with SAP, Microsoft, Oracle,

JTI was well able to weather the

143

“We’re going to expand further into the digital space” — Atiq Samad, CIO, JTI

busi ne ssc h ief . eu

JTI

coronavirus storm. “We have everything cloud ready - that’s why, for example, when we felt the impact of coronavirus, we went from 600 remote workers to about 18,000 remote workers within three days.

From an infrastructure standpoint, we had to make an effort, but it didn’t create big problems.” Samad further sees the pandemic as opening up possible avenues for potential change. “We’re looking at the digital employee experience, and we’re even challenging the 144

concept of the office entirely. Can we

NOVEMBER 2020

1999

Year founded

$12.4bn+ Revenue in US dollars

44,000 Number of employees

145

“ We look at each investment and look at both their initial business benefits and their strategic fit to create a strategic roadmap” — Atiq Samad, CIO, JTI busi ne ssc h ief . eu

JTI

146

NOVEMBER 2020

147

not have dynamic offices, for instance?

in good stead for the future. “While

But as the CIO, my biggest focus always

our competitors are focusing on

has been and always will be on remain-

upgrading their systems and moving

ing secure, compliant, and resilient.”

to new platforms, we will already be

That philosophy is aligned with the

experiencing the value of that technol-

goals of the business at large. “Our

ogy. That’s one thing that really makes

goal is to become the number one

us ready for the future.”

tobacco company in the world. In today’s world, you cannot do that without technology. I’m excited about it because we can really add value through the technology we introduce.”

Samad is clear that the technological work the company has done stands busi ne ssc h ief . eu

Peace of Mind Through Digital Inspection Solutions 148

WRITTEN BY

WILL GIRLING PRODUCED BY

MIKE SADR

NOVEMBER 2020

149

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WAYGATE TECHNOLOGIES

Arungalai Anbarasu, CT&SO, discusses the company’s philosophy on digital transformation and how it’s creating peace of mind for manufacturers post-COVID-19

A

lthough the detrimental effects of the COVID-19 pandemic are beyond dispute, one positive aspect has been a renewed

openness to digital transformation and its possibilities. Waygate Technologies is a staunch champion 150

of its effect in the non-destructive testing (NDT) and industrial inspection arena. Originally GE Inspection Technologies, the company eventually rebranded itself in 2020 but still maintains its rich industry heritage with over 125 years of world-leading excellence - a combination of 1.700 employees operating globally as part of the Baker Hughes corporation. Using cutting-edge data analytics, Waygate Technologies seeks to augment productivity, boost competitiveness, and provide clients and their customers with the peace of mind they require.

Naturally curious and exploratory at a young age, Arungalai Anbarasu, Chief Technology and Strategy Officer, says that engineering provided her with the perfect outlet for exploring these

NOVEMBER 2020

151

2004

Year founded

1,700 Number of employees

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WAYGATE TECHNOLOGIES

152

“ We retained the people and the culture, so we rebranded in a way that our customers would still recognise us and our services” — Arungalai Anbarasu, Chief Technology and Strategy Officer, Waygate Technologies

passions. “My Master’s thesis (at the Georgia Institute of Technology) was actually on non-destructive testing,” she explains. Joining GE in 2005, Anbarasu quickly developed professionally, “I started to understand why business strategy is so important for a company, which made me take on different roles in the company, from finance strategy to operations, technology, business management, and finally the role I find myself in today.”

When the company became Waygate Technologies, she relates that capturing the brand attention once afforded

NOVEMBER 2020

to GE was challenging. “GE Inspection

customers would still recognise us

Technologies (GEIT) enjoyed such a

and our services. Ultimately, we pro-

strong presence in the NDT industry.

vide them with a gateway to innovation,

We retained the people and the cul-

so that, I believe, was the reasoning

ture, so we rebranded in a way that our

behind our new name.”

E X E C U T I V E P R O FILE :

Arungalai Anbarasu Title: Chief Technology & Strategy Officer Company: Waygate Technologies Industry: Industrial Inspection Solutions and Non-Destructive Testing Location: Huerth, Germany

153

Arungalai Anbarasu is the Chief Technology & Strategy Officer at Waygate Technologies, driving strategy and innovation for the company. In addition to pushing the technology and business models, boundaries on inspection solutions, Aru and her team are also focused on the digital transformation of Waygate Technologies and spearheading Waygate’s evolution into a Digital Inspection Solutions provider, taking customers from inspections to insights and from insights to innovations. Prior to her current role, Aru was the General Manager for Industrial X-ray and CT solutions business at Waygate Technologies. She also spent over a decade in GE in multiple impactful roles in business divisions such as Global Research Centre, Oil & Gas, Power Conversion, Healthcare and Renewables. She is passionate about encouraging Women in STEM fields and continues to pursue avenues to support this topic. Aru currently resides in Hannover with her husband Divyang and daughter Ada. ma nuf a c t uri nggl o b a l. com

WAYGATE TECHNOLOGIES

D H VA N I R E S E A R C H & D E V E L O P M E N T

One of Waygate Technologies’ most important partners is Indian tech hub Dhvani Research & Development. Leveraging IITM, CNDE and ESCON technologies, the company is striving to become a world leader in the research and development of non-invasive diagnostics.

154

Anbarasu had the following to say about the two companies’ relationship: “We’ve been working with Dhvani for a few years now and count them as a

valued partner in our journey.

Dhvani has access to a wide pool of resources, a strong track record in delivering ADR software and associated applications for x-ray and ultrasound, and their customer base includes top global brands.

They are incredibly flexible in their working arrangements and truly drive us to succeed on multiple fronts simultaneously; a nice contrast from hardware companies, which are used to more structured and therefore slower shifts.”

In terms of more recent challenges, Anbarasu cannot deny that COVID-19 has presented a significant operational hurdle. However, she caveats this with a sense of optimism regarding the development of tech within NDT. “I almost see this as the beginning of a new digital revolution towards ‘Industry 4.0+’. I think a lot of this will continue beyond COVID too, with legacy customers becoming more NOVEMBER 2020

Waygate Technologies | A world leader in non-destructive testing.

CLICK TO WATCH

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155 accepting generally; they used to pri-

latter allows operators to analyse

oritise face-to-face interactions during

and upload data independently

an inspection, but these days we’ve

from anywhere.

been convincing them to do it virtually.

Having these tools, and many oth-

Although the pandemic has driven

ers, illustrates what gives Waygate

us apart physically, it has brought us

Technologies an advantage over

together virtually.” Furthermore, two of

other companies in the space, “We

Waygate Technologies’ flagship digital

have one of the broadest product

products - InspectionWorks Connect

portfolios available,” Anbarasu states.

and Insight - are geared for meet-

“That world-leading breadth across

ing the core challenges introduced

visual, ultrasound, x-ray, CT, Eddy cur-

by COVID: the former allows users

rent, portables, handhelds and cloud

to connect a handheld borescope

services puts us in a really unique

or ultrasonic testing (UT) device to

position.” Observing that a global shift

remotely located experts, while the

away from single-unit data to larger ma nuf a c t uri nggl o b a l. com

DHVANI

ANALYTIC INTELLIGENCE We are industry leaders in the development and deployment of NDE 4.0 related tools and technologies globally. We focus on product and applications development and also offer services in the area to our clients. Our ability to work across software, hardware, IoT, AI while bringing in the cutting edge domain skills offers a signiďŹ cant competitive advantage in the NDE space. Our collaboration with academia and associated industries and the use of blended skills that combine physics with data driven analysis help address some of the challenges faced by industry today.

We have skills in developing digital twins for inspection processes and our product portfolio includes simulators that help optimise inspection time and resources. We use both knowledge based and data driven intelligence to generate synthetic data, where required. This is particularly useful in ramping up AI based tools that have an appetite for large volumes of information.

We deliver end-to-end integrated solutions to our clients and have the in-house capabilities to work across platform technologies, automation, robotics, text / image analytics, decision sciences and IoT. We have developed visualisation and dashboarding tools that can also deliver enterprise reports. We are actively engaged with clients in the manufacturing, transport, construction, maintenance, energy, infrastructure, electronics, and healthcare sectors.

LEARN MORE

WAYGATE TECHNOLOGIES

“ Although the pandemic has driven us apart physically, it has brought us together virtually” — Arungalai Anbarasu, Chief Technology and Strategy Officer, Waygate Technologies

158

connected ecosystems of information that unlock value exponentially is taking place, she positions the company at the head of this new trend in NDT and industrial inspection. “We pride ourselves in helping our customers both detect defects and avoid them altogether; detecting is important, but if we can avoid a fault NOVEMBER 2020

transformation journey is a desire to move beyond simply selling ‘product solutions’ and instead focus on envisioning, creating, building and selling digital inspection solutions. As such, the company has established a four pillar philosophy: 1) Focusing explicitly on developing collaborative partnerships, both with customers and vendors; 2) Shifting away from building products featuring software to true software products; 3) Employing a new commercial presence in the market that will enable the execution of its goals; and 4) Evolving hardware and manufacturing rhythms to drive a steady customer expectation of software releases and updates. Leveraging Waygate Technologies’ storied heritage and not allowing traditions to stifle innovation will be crucial, particularly from occurring, I think that’s far more

as the company transitions from being

valuable to them.” In a way, Anbarasu

a device-centric to a data-centric

says, our approach is comparable to

inspection company. Clearly, a cultural

the best healthcare: its testing identi-

shift will be integral; “That is a much

fies problems early, before they have

larger challenge, though, because

an opportunity to develop into some-

you’re trying to convert people from

thing more hazardous.

their long-held beliefs. This needs to

However, fundamentally guid-

be achieved through the right capital

ing Waygate Technologies’ digital

investment, training commercial teams ma nuf a c t uri nggl o b a l. com

159

WAYGATE TECHNOLOGIES

“ Waygate Technologies delivers peace of mind with emerging technologies” — Arungalai Anbarasu, Chief Technology and Strategy Officer, Waygate Technologies

160

NOVEMBER 2020

and expanding our digital presence in different geographical regions.”

Far from being a strictly internal evolution, though, Anbarasu makes it clear that Waygate Technologies’ digital transformation will have direct benefits for customers. “Consider this: a borescope built by us can enter the combustion chamber of an aircraft engine through an approximately 1cm diameter port, travel to a location and capture an image with its own light source and stereo camera, measuring, in 3D, depths of defects down to the several microns. This is then taken to an exponentially higher value for the customer when Waygate Technologies deploys automatic defect recognition algorithms built on the cloud, delivered on the device. This enables the operator using the instrument to make ‘plane-side’ decisions, thus saving millions of dollars lost in downtime. This is truly incredible technology, and that’s just one example,” she enthuses. “Waygate Technologies delivers peace of mind with emerging technologies,” Anbarasu adds.

“These are truly enabling our customers to have full confidence in our ma nuf a c t uri nggl o b a l. com

161

WAYGATE TECHNOLOGIES

solutions’ ability to safeguard them from a quality perspective.” One of the company’s core digital initiatives, InspectionWorks|Ecos, offers an integrated, blockchain-powered data management solution, enabling unified inspection insights across a customer’s entire ecosystem and the complete lifecycle of their assets.

Already highly anticipated for its perceived high value and market necessity, Waygate Technologies believes that leveraging this new 162

data solution could be transformative for modern industrial inspections.

Already serving the aerospace, defense, automotive, electronics and

same time, we will strive to partner with

energy industries, Anbarasu intimates

clients in new technologies like electric

that, although these will remain the

vehicle (EV) batteries, hydrogen and

company’s core markets, Waygate

3D printing.”

Technologies is interested in branch-

Data, Anbarasu states, will be the

ing out further. “Inspection data is

key to this expansion and Waygate

everywhere and in every process; it

Technologies’ broader digital transi-

can be a very powerful tool for custom-

tion. “I don’t think the abundance

ers to drive productivity, quality and

of data is an issue; I think there’s no

safety,” she says. “We will continue to

longer a debate on whether data is

serve these traditional markets and

valuable and whether it feeds digital

also explore growth areas like medical

transformation. However, what’s now

devices, other forms of transportation

critical is the infrastructure around

and the pharmaceutical sector. At the

data: simply digitising all inspections

NOVEMBER 2020

163

“ Everyone needs to unite, follow the rules, and beat COVID-19” — Arungalai Anbarasu, Chief Technology and Strategy Officer, Waygate Technologies

to corporate ethics as it does to equipment, viewing Waygate Technologies’ position of social responsibility, particularly in the post-COVID-19 world, as equally substantial. “We are trying our best to help out where we can, such as inspecting ventilators, and digital transformation can be a force

is only the starting point; it is when this

for good in achieving that goal,” she

data can be tied to the asset being

concludes. “Everyone needs to unite,

inspected and then cross and counter

follow the rules, and beat COVID-19.”

referenced that its value starts rising exponentially”. Further, she indicates that ‘infrastructure’ refers just as much ma nuf a c t uri nggl o b a l. com

164

NOVEMBER 2020

A DATA DRIVE IN MANUFACTURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

KARL GREEN

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165

TSP ENGINEERING

John Coughlan, CEO at TSP Engineering, discusses his firm’s digital transformation journey against the backdrop of COVID-19

T

SP Engineering is an industrial and electrical engineering manufacturer that provides a range of technical solutions to

solve complex problems. The organisation serves a number of key industries such as nuclear, defence, oil & gas, steel, construction and industrial.

166

John Coughlan has been the CEO at TSP Engineering since 2014. A results-driven, business turnaround leader, Coughlan possesses a significant record of driving operational improvements through operating with a customercentred approach. He has helped oversee TSP Engineering’s digital transformation journey but believes his company is still in its infancy in terms of its overall digitalisation drive. “It’s been a good journey so far, but we’re still in the initial stages of transformation,” affirms Coughlan. “One of the things that we’re really trying to guard against is allowing anyone access into our business via any new technology we introduce. We’ve had to ensure that we’re cybersecure to protect the data that we have. This is even more important because a lot of

NOVEMBER 2020

167

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TSP ENGINEERING

“ It’s been a good journey so far but we’re still in the initial stages of transformation” — John Coughlan, CEO, TSP Engineering

the knowledge to leverage data more effectively. “It’s one of those

168

the data that isn’t ours, we’re minding it

things that I learned really early on,”

for our customers and the information

he explains. “You have to provide staff

is for UK eyes only and is classified.

with the tools to interrogate the data

This means it’s even more pivotal that

that will draw out the answer to the

we’re very careful in everything we do.”

problem. It’s important to never just

Talent management is a key pillar to

give away the answer but provide a

Coughlan and he acknowledges the

route to the answer that they need for

importance of equipping staff with

the problem. It’s about how to harness, interrogate and how to interpret the data to provide results because data doesn’t really lie.”

With the importance of data growing at an exponential rate to businesses such as TSP Engineering, Coughlan affirms that an agile and flexible approach to operations is key, particularly in a digital transformation.

“It’s about harnessing the data to drive our technologies and the changes that we make on a daily basis,” says Coughlan. “The digital era that we’re now in is constantly making us look at our business and how we operate.

Only recently, based on what we’re

NOVEMBER 2020

doing, we’ve decided to take one of our

by other areas of the business.

business departments and set it out

“The data that we hold in-house

into a business unit on its own to allow

is very important to us and because

it to get further ahead on the digital

of the sectors that we work in, such

transformation and not to be held back

as nuclear and defence, security is

E X E C U T I V E P R O FILE :

John Coughlan Title: CEO

Company: TSP Engineering

Industry: Manufacturing

Location: Workington, UK

John Coughlan joined TSP Engineering in 2014 with overall responsibility for driving strategy, operations and continuous business improvement.

John possesses a significant record of delivering operational improvements, efficiencies and customer satisfaction across Europe, ASIA, North America and Mexico, with an ability to quickly understand the mission, vision and values of a customer focused organisation.

He’s previously held senior non-executive and executive positions in many organisations including, Aerly Bird Transglogal, UpRight, Celestica, ITW Avery Weightronics, Dianorm Teo as well being appointed to a range of senior committees, enterprise boards and liaison groups.

John was named UK Manufacturing Champions Manufacturing Leader in December 2016 and was named one of the most inspiring Manufacturing Leaders in 2018.

Last year, John was crowned Best Businessperson of the Year by the in-Cumbria Awards, and this year was a finalist for the prestigious IoD Director of the Year Awards. ma nuf a c t uri nggl o b a l. com

169

TSP ENGINEERING

“ You have to provide staff with the tools to interrogate the data that will draw out the answer to the problem” — John Coughlan, CEO, TSP Engineering

products that we deliver. We must deliver a lifetime record with our product, so they need to be assured about everything in our process.”

Coughlan believes that the influence of Advanced Nuclear Reactors (ANRs) will play a prominent part in helping the UK become a more sustainable environment. “The world wants to be a

essential. We must ensure that we’re

greener place in the future and one of

not only protecting the data but that

the ways we try to make that happen

we’re using it correctly, as it has a

is by ensuring that we have economi-

big impact on our customers and the

cally achievable and reachable nuclear

170

NOVEMBER 2020

Webinar replay: How to get your business ready to do business with TSP Engineering CLICK TO WATCH

|

34:13

171

power to help get us to a net-zero

10 years to 18-24 months. This is from

economy and region,” says Coughlan.

the time you place the order, move it to

“To make this happen, you should

site and have your building put in place,

ensure that nuclear power is afford-

because the two can be in parallel.

able because, if you take the existing

This means that it basically becomes

power sources for nuclear, it can take

a plug-in unit when you get it onsite.”

up to 10 years to build and you could

Despite the disruption of the coro-

be talking about over US$20bn to pro-

navirus pandemic, TSP Engineering

duce. But we don’t have the finances

has continued to receive orders and

or time to do that anymore so if we

is emerging post-COVID-19 in a rela-

scale those down in terms of capa-

tively strong position in comparison to

bility of electricity, we can produce

lots of harder-hit industries. However,

those completely in the factory and

Coughlan explains that his organi-

streamline the production time from

sation, like so many others, had to ma nuf a c t uri nggl o b a l. com

COMPANY NAME

transform operations overnight and find a new normal. “COVID has made us think outside the box,” explains Coughlan. “At the end of March, we ceased production and sent people home for their own safety. Once we got an understanding of how we could work more safely, we had a number of people from all areas of the business starting to work from home and getting the IT infrastructure set up. A lot of people found that they were much more productive working from home

Proud to be associated with TSP Engineering We at Masteel are proud to be associated with TSP Engineering. Masteel has the knowledge and resources to provide you with a first class steel supply option. If you have any steel requirements, we can help. Let Masteel UK be the solution.

Learn More

+44(0)1675 437733

173

“ It’s about harnessing the data to drive our technologies and the changes that we make on a daily basis”

of the factory workers, it’s obviously much more difficult for them to work at home so we introduced staggered times to stop there being too many people in at once.”

TSP Engineering works closely with

— John Coughlan, CEO, TSP Engineering

the nuclear AMR advanced manufac-

and we now have a mix of remote

tinued success. “That’s an extremely

working and office working. It was

important relationship to us in terms

important that we checked in with

of our learning and development as

employees because we were well

a business,” he says. “Research and

aware of the mental health aspect and

development has become increasingly

understood that there wasn’t one way

key to us over the past few years

that worked for everyone. In terms

as technology continues to change.

turing centre and Coughlan affirms partnerships like this are vital to con-

ma nuf a c t uri nggl o b a l. com

TSP ENGINEERING

174

“ The future is what we make it; you can sit back and wait for the future to come or you can try and develop it” — John Coughlan, CEO, TSP Engineering NOVEMBER 2020

We also believe in partnering with customers and get great satisfaction when they view us as an extension of their business and part of their business. We’re looking beyond them and are trying to see who their customers are, as well as their demands and values. This will mean that we will be able to more than meet our front facing customers’ needs. We spend a lot of time with companies within our supply chain who we see as partners and work with them to try and improve quality, to help them understand the requirements of delivering in the nuclear sector, and help get their business up to the level required by the industry.”

Coughlan understands the importance of collaboration to achieving success. “You have to understand that you can’t do everything yourself,” he affirms. “Once you recognise that you need other people, then you have to consider them as an extension of your business. This is what helps you survive and what helps you differentiate yourself from competitors.

You need a partner that’s open and is going to tell you when things are ma nuf a c t uri nggl o b a l. com

175

TSP ENGINEERING

176

going wrong. Having a partner that is

can sit back and wait for the future

open to change and has flexibility is

to come or you can try and develop

also crucial.”

it,” he says. “We’re going to be very

With the future in mind, Coughlan

involved in developing the future and

is optimistic and believes the next few

new nuclear technologies and more

years are in his organisation’s hands.

involved in research and development.

“The future is what we make it; you

This is a really exciting time for lots

NOVEMBER 2020

177

of businesses and we’re certainly no

into the future in terms of getting

different. As a company, we’ve won 14

to the next level we want to reach.”

awards during the past four years and spent £5.5m investing in our people to bring them to the standard where they can grow within the business. The time is now to use that as a springboard ma nuf a c t uri nggl o b a l. com

178

THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

NOVEMBER 2020

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m a n u f a c t ur in g gl o b a l . c o m

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 180

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 NOVEMBER 2020

181

m a n u f a c t ur in g gl o b a l . c o m

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

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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.

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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 184

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

NOVEMBER 2020

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

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185 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 m a n u f a c t ur in g gl o b a l . c o m

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?

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A culture of analysis begins with empowerment.

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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.

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HENKEL

188

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

NOVEMBER 2020

189

E X E C U T I V E P R OF IL E :

Dirk Holbach Title: Corporate Senior Vice President Industry: Consumer Goods Location: Netherlands 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. m a n u f a c t ur in g gl o b a l . c o m

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

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1:40

191

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 m a n u f a c t ur in g gl o b a l . c o m

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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 m a n u f a c t ur in g gl o b a l . c o m

193

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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

195

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 m a n u f a c t ur in g gl o b a l . c o m

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Henkel: Developing trust essential to success CLICK TO WATCH

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1:03

197 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 m a n u f a c t ur in g gl o b a l . c o m

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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.”

m a n u f a c t ur in g gl o b a l . c o m

199

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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

m a n u f a c t ur in g gl o b a l . c o m

201

HENKEL

202

1876

Year founded

€20bn+ Revenue in euros

53,000 Number of employees

NOVEMBER 2020

203

m a n u f a c t ur in g gl o b a l . c o m

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 204

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

NOVEMBER 2020

205

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.”

m a n u f a c t ur in g gl o b a l . c o m

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