TechHub: Putting the Industrial Internet Hype to Work, Smart Service Energy & More

Putting the Industrial Internet Hype to Work

The Industrial Internet of Things dominates manufacturing hype. Beyond this, certain manufacturers are putting powerful technologies to work – General Electric employees, for example, with their brilliant factories.

GE’s remanufacturing plant in Grove City, Pa., is a shining example of one of those brilliant factories, according to Industry Week.

Once a food packaging plant decades ago, the factory has transformed into a high-tech home for the remanufacture of diesel engines for locomotives.

“We’re taking digital technologies that people are really comfortable with outside of work and bringing them into work — whether that’s iPads, or phones, or just visual data,” said Jamie Miller, the former GE senior vice president and CEO of GE Transportation who was just promoted to CFO. “It was something that people could readily see because they use it outside of work.”

By doing so, it created a condition-based manufacturing system that allowed the workers to tailor what they do to rebuild engines in a faster, more productive manner, according to Miller.

Its brilliant factories  —  Grove City is one of less than a dozen around the world  —  revolve around lean manufacturing principles, additive manufacturing, advanced manufacturing technologies and digital manufacturing. Its industrial cloud platform, Predix, allows customers to replicate that on a smaller level, extending industrial automation to the cloud.

John Deere Investing in AI for Autonomous Farming

John Deere is buying a California artificial intelligence startup that makes machine learning tools for agriculture as part of their quest to automate farming, according to the Verge.

The cutting-edge machine vision tools help farmers scan fields, assess crops and get rid of weeds — all at the same time.

Source: Blue River Technology

A set of cameras fixed onto crop sprayers use deep learning to identify plants, hitting weeds with pesticide and crops with fertilizer, all of which can be customized by the farmer.

This can save up to 90% of the volume of chemicals being sprayed, while also reducing labor costs.

John Deere has been working on autonomous tractors before Tesla and Google even existed, according to the Verge, but its current most advanced vehicles only assist navigation.

The new technology creates a more efficient crop spraying system, allowing farmers to do more with less.

Smart Service Strategy: GE Oil  & Gas Case Study

In 2014, GE Oil & Gas management wanted to improve the revenue capacity of its field service operation, which they were confident could be accomplished by streamlining operations and increasing the billable utilization of their 575+ field service engineers (FSEs).

They knew visibility could be created with a smart service platform, switching over from most engagements being handled using paper forms or whichever process was customary within a particular geographical region.

“No one likes to change,” said GE Oil & Gas Information Management Subsea Services Project Manager Lydie Victoire. “But to increase profitability, we needed our people to adopt this new way of doing field service.”

smart service strategy

The solution was going digital, but in a completely customized way that allowed a set of field service functions for the initial project rollout to look a lot like the old paper-based process.

Going digital allowed them to:

“To optimize field efficiency, GE Oil & Gas needed more real-time visibility into its field service operation,” says GE Oil & Gas Executive Service Director Leigh Martin.

“We needed better data on the work activities of our field service engineers. And for that, we needed a field service platform.”

Download the case study to learn more about how GrayMatter innovates with partners on smart service strategies.

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TechHub: New GE CEO Pushes for Digital Future, US Manufacturing Growing Fast & Cyber Security

Our Future is Digital

New General Electric CEO John Flannery put an end to the constant question, “where is the company headed?”

“I have a lot of decisions to make in my new role as CEO, but one decision is easy: GE is all in on digital,” said Flannery in a blog post on LinkedIn.

The digital age is bringing innovation and productivity for industries everywhere, allowing real, tangible outcomes for business.

Through scalability, installed base and industrial expertise, GE plans to be a major player in helping lead this transformation.

With a focus on their core verticals leveraging energy, oil and gas, aviation, healthcare, rail and mining, to help create a strong Predix ecosystem.

GE’s previous CEO Jeff Immelt at the 2016 Minds + Machines conference.

“The company I joined 30 years ago made machines that made the world work better,” said Flannery. “We are still that company, but the world has changed, and the industrial world is increasingly powered by digital applications.

We are part of this transformation, and we have a focused strategy that I believe is best for our customers and for GE.”

Join John Flannery and GrayMatter October 25 in San Francisco at Minds + Machines, an event that connects industrial thought leaders and showcases technology that helps solve the world’s biggest industrial IoT challenges.

Learn More About Minds + Machines

US Manufacturing Expands at Fastest Pace in 13 Years

American manufacturing expanded last month at the fastest pace in 13 years, according to Industry Week.

The strength of advances in the Institute for Supply Management’s gauges partly reflects impacts from hurricanes Harvey and Irma, which forced shutdowns of refineries, chemical plants, retail establishments and car dealerships which were flooded in the storms and had merchandise destroyed.

However, the nation’s producers had already been on firmer footing because of improving global demand and an increase in US capital spending, according to Industry Week.

Manufacturing

Students visiting a PPG paint and coatings plant for Manufacturing Day 2017 in Delaware.

Orders are projected to remain strong in coming months as Manufacturing Day approaches.

Manufacturing Day is a national celebration of modern manufacturing, meant to inspire the next generation of manufacturers. Manufacturing Day occurs on the first Friday in October — this year’s falls on Oct. 6, 2017.

Statistical analysis of key event reporting suggests Manufacturing Day 2016 affected 595,341 participants, including 257,607 students.

Manufacturing Day is about celebrating manufacturing by providing an opportunity to focus collective attention on manufacturing, aiming to:

  • Empower manufacturers
  • Change public perceptions of manufacturing
  • Introduce people to manufacturing careers
  • Draw attention to the roles manufacturers play in their communities
  • Underscore the economic and social significance of manufacturing

Since 2012, MFG Day events has grown over 1,000%, with manufacturers in all 50 United States and Puerto Rico consistently participating.

Source: MFGDay.com

According to survey results by Deloitte from students that attended events in 2016:


89% of students were more aware of manufacturing jobs in their communities.

84% of students were more convinced that manufacturing provides careers that are interesting and rewarding.

64% of students were more motivated to pursue careers in manufacturing.

71% of students were more likely to tell friends, family, parents or colleagues about manufacturing after attending an event.

Every Third Computer Attacked in 2017 From Manufacturing Sector

In the first half of the year the manufacturing industry was the most susceptible to cyberthreats, with the industrial control systems computers of manufacturing companies accounting for almost one third of all attacks, according to Security Magazine.

The majority of the cyber threats were in manufacturing companies that produced various materials, equipments and goods. Other highly affected areas include engineering, education and food & beverage. Energy companies accounted for almost 5% of all attacks.

Special Agent Keith Mularski, Unit Chief of the FBI Cyber Initiative & Resource Fusion Unit, spoke at GrayMatter’s annual conference on industrial cyber security.

The main source of threats was the internet. Attempts to download malware or access malicious phishing web sources were blocked on over 20% of the ICS computers.

The reason this is such a high number is because of:

  • Interfaces between corporate and industrial networks
  • Availability of limited internet access from industrial networks
  • Connection of computers on industrial networks to the internet from operators’ mobile phones

Ransomware attacks on industrial companies tripled by June this year, with various large crime campaigns.

The WannaCry epidemic was one of the most notable, affecting 13.4% of all computers in the industrial infrastructure. ExPetr was a notorious encryption that followed, with 50% of the computers attacked in the manufacturing and oil & gas industries.

“In the first half of the year we’ve seen how weakly protected industrial systems are – pretty much all of the affected industrial computers were infected accidentally and as the result of attacks targeted initially at home users and corporate networks,” said Evgeny Goncharov, head of critical infrastructure defense department at Kaspersky Lab.

cyber

US pharmaceutical giant Merck & Co. was affected by the ExPetya attacks earlier this year.

“In this sense, the WannaCry and ExPetr destructive ransomware attacks proved indicative, leading to the disruption of enterprise production cycles around the world, as well as logistical failures, and forced downtime in the work of medical institutions. The results of such attacks can provoke intruders into further actions. Since we are already late with preventive measures, companies should think about proactive protective measures now to avoid ‘firefighting’ in future.”

Billions of sensors are being rolled out rapidly as the Industrial Internet expands. The devices for operational technology are very different than those found on information technology networks and they need specialized technology to protect them. 

Download the GrayMatter Cyber Security Guide for Operational Technology to get a comprehensive understanding of security in the OT world including top vulnerabilities. The guide walks you through the first steps in knowing what’s on your network and has specific advice about the assessment process from our top cyber security consultants.

Download the Cyber Guide

TechHub: Automation Creates More & Better Jobs, Seegrid’s New Self-Driving Pallet Truck and More

JOHN TLUMACKI/GLOBE STAFF

Automation Creates More, Better-paying Jobs

Robots, artificial intelligence and other forms of automation are often feared due to their job-destroying potential when in fact they’re creating more, better-paying jobs.

The brick-and-mortar retail swoon has been accompanied by a less headline-grabbing e-commerce boom that has created more jobs in the U.S. than traditional stores have cut. Those jobs, in turn, pay better, because its workers are so much more productive, according to the Wall Street Journal.

Throughout history, automation commonly creates more, and better-paying, jobs than it destroys. The reason: Companies don’t use automation simply to produce the same thing more cheaply. Instead, they find ways to offer entirely new, improved products. As customers flock to these new offerings, companies have to hire more people.

In the Amazon facility’s packing area, computers tell workers precisely which size box to use. PHOTO: ADAM GLANZMAN FOR THE WALL STREET JOURNAL

James Bessen, an economist at Boston University School of Law, has found in numerous episodes when technology was supposed to annihilate jobs, the opposite occurred.

After the first automated tellers were installed in the 1970s, an executive at Wells, Fargo & Co. predicted ATMs would lead to fewer branches with even fewer staff. And indeed, the average branch used one-third fewer workers in 2004 than in 1988. But, Mr. Bessen found, ATMs made it much cheaper to operate a branch so banks opened more: Total branches rose 43% over that time.

There are still plenty of logistics that only humans can handle. When the new 1.2-million square foot Amazon warehouse opened in Fall River, Massachusetts, Amazon workers had trouble stowing long, narrow things like shovels and rolled-up rugs, which don’t stack very well. Their solution? Large cardboard tubes, typically used to form concrete pillars, were fashioned into rows and rows of improvised barrels, according to the Boston Globe.

“One thing we learned is to find the cheapest and easiest solution possible,” said Andrew Sweatman, the Fall River general manager.

City leaders rolled out the red carpet for Amazon with generous tax incentives and a prime location on Innovation Way. Its arrival was the single biggest job creation event anyone could remember.

“We had people with a skill set that was nontransferable,” says Jasiel F. Correia II, Fall River’s 25-year-old mayor and a first-generation child of immigrants from the former Portuguese territory of Cape Verde. “Where does a person who sewed textiles for 20 years go if they’re laid off? Places such as Amazon fill that gap,” he says. “They got a chance to work for a Fortune 500 company. This community doesn’t get those chances very often.”

Seegrid Rolls Out New Self-Driving Pallet Truck

Seegrid has rolled out a self-driving pallet truck the Pittsburgh-based robotics company said doesn’t need human intervention.

As the leader in connected self-driving vehicles for materials handling, they’ve recently expanded the company’s suite of automated solutions with the announcement of the GP8 Series 6 self-driving pallet truck.

SOURCE: Seegrid

Further enhancing the Seegrid Smart Platform, which combines flexible and reliable infrastructure-free vision guided vehicles with fleet management and enterprise intelligence data, the self-driving truck has fully automated material movement to execute hands-free load exchange from pick-up to drop-off, according to Seegrid.

In the automotive industry, self-driving vehicles are used for consistent delivery of parts to line. The self-driving pallet truck picks up and drops off palletized car parts without human interaction, increasing productivity amidst labor shortages for automakers. In e-commerce, it enables fully autonomous delivery of goods to keep up with fulfillment industry growth and demand.

Operating without wires, lasers, magnets, or tape, it allows manufacturers and distributors to change routes in-house, operate in manual mode, and effortless scale their fleet as they grow.

As part of the Seegrid Smart Platform, the Series 6 is aligned with Industry 4.0 and lean initiatives, helping companies transform into smart factories of the future.

Developing a Work Culture that Embraces its CMMS and Values Data Accuracy

First, establish new behaviors by creating a set of CMMS guiding principles.

Creating a culture that embraces CMMS and values data integrity begins with leaders changing their behavior. If they expect their organization to change, O&M leaders, including materials, procurement, and engineering functions, should jointly develop a set of CMMS guiding principles.

The development process creates ownership and alignment within the cross-functional group around new leadership behaviors. After completion and approval, leaders should post the CMMS principles, which will allow them to hold each other, as well as the organization, accountable. It will also enable the organization to begin adjusting to the new behaviors they observe. When leaders consistently behave differently, the organization will adapt and follow, according to Industry Week.

Guiding Principles

  • No work order, no work
  • 400-percent rule
    • 100% internal labor, 100% of materials, 100% of contractor cost documented on work order, 100% of the time
  • Completed field work documented
  • All equipment failures receive a Root Cause Analysis (RCA)
  • All spare parts have a stores item number
  • All lowest maintainable equipment is identified by unique number, title, hierarchy and criticality rank
  • Measure the process as well as end results
  • Weekly work order audits
  • Periodic communication
  • Periodically audit the CMMS

Developing a culture that embraces utilization of a CMMS and values data integrity starts with leadership vision and behavior.

Read More.

TechHub: GE Looks to Become IIoT Leader, Industrial Job Growth in US & Industrial Cyber Security

GE Relocates To Boston, Looks to Become an IIOT Leader Amid Transformation

General Electric, the largest US industrial company, is going through a transformation. The company has a new CEO at the helm, relocated headquarters to Boston and most importantly is trying to position itself as a manufacturing leader in the digital era, according to Industry Week.

“If we go back in time, say in 2011 to 2012, when as a business, we were facing challenges, Jeff (Immelt, former CEO) realized that unless we leverage software and analytics, true productivity would not be gained,” said Mark Bernardo, GE’s VP of Professional Services, at the company’s temporary new headquarters in Boston on August 30.

Since then, GE has made several strategic business moves to leverage its core competencies: spun off its financial services unit, GE Capital; acquired French company Alstom’s power and grid business; launched GE Digital to bring various software groups such as engineering, product development, and IT under one umbrella, and opened its cloud-based software platform for the Industrial Internet, Predix, to outside developers.

Despite GE’s goal to cut $2B by the end of 2018, “there is no change in long-term strategy as it relates to digital,” said Jeff Erhardt, GE’s VP of Intelligent Systems.

Erhardt said that machine learning, artificial intelligence along with domain expertise will help boost GE’s digital future. And Predix, its own IOT platform, will play a central role in managing complex data. The platform currently has 100 apps – from MRI machines to turbines to jet engines – created by developers, including many from outside, who mine complex industrial data to make the machines perform more safely and efficiently.

GE’s former CEO Jeff Immelt at Minds + Machines 2016 in San Francisco.

Join GrayMatter in October at Minds + Machines, GE’s premier Industrial Internet event dedicated to software, innovation, and the most powerful digital industrial outcomes.

Minds + Machines will bring together the best and the brightest of the technology world, including GE customers, developers, partners, industrial thought leaders and technology innovators.

Learn More

What’s Driving Job Growth in Industrial America?

Manufacturing and mining jobs are up this year after having fallen in 2016, in which 100,000 jobs were lost, according to the New York Times.

Rising commodity prices has resulted in a jump in hiring within the mining sector. After plunging in late 2014 and throughout 2015, energy prices have somewhat recovered. That has helped stabilize employment in the oil industry. Meanwhile, surging prices for metals like gold and copper are spurring activity in the mining industry.

The US dollar dropping throughout 2017 has also played a major role in manufacturing success. As major exporters who are dependent on overseas customers for a big part of their sales, manufacturers often find themselves at the mercy of the dollar.

When the dollar surged in 2016, American-made equipment was effectively more expensive for foreign buyers. This year’s drop, on the other hand, is a boon for manufacturers as well as for big American companies who draw a big portion of their sales from overseas, like Caterpillar and McDonald’s.

Software-defined Industrial Networks Deliver Cyber Security Breakthroughs

Finding a cost-effective cyber security plan for industrial control systems remains a pain point.

Cyber security is often cited as the leading barrier to growth of the Industrial Internet of Things (IIoT).

ARC Advisory Group published a report suggesting two solutions of promising software-defined networking (SDN) technologies, which can improve cyber security in both new and existing industrial control systems.

One: Network Management Through SDN Protocol OpenFlow

OpenFlow is a single protocol that replaces existing routing and access protocols embedded in Ethernet switches, allowing the entire network of switches to be managed from a central SDN controller.

This has typically been used in large enterprise networks, such as Google, and in large data centers to improve performance.

Ukraine power grid

Kiev, Ukraine, was one of the victims hurt the most in multiple malware attacks on the Ukrainian power grid at the end of 2016 and entering into 2017.

This is also applicable to a much smaller industrial network, or part of an industrial network.

Engineers report that the largest advantage of their SDN network is the ability to lock down the substation network and immediately become aware of any unexpected packets entering. This improves the overall security of networks within electric power substations, which have increasingly become high value targets for cyber warfare internationally.

Two: Host Identity Protocol

Host Identity Protocol (HIP) creates and manages a secure identity-based overlay network that serves the automation components while cloaking them from general visibility.

The fundamental idea is to decouple the IP address from packet forwarding rules, instead authorizing and delivering network services based on provable cryptographic identities.

It also delivers a new Host Identity Namespace that is compatible with existing IP and DNS Namespaces, enabling global IP mobility. It allows organizations to overcome IP addressing issues and move an IP resource within and between physical, virtual or cloud networks without having to change the IP or overlay network policies.

Using HIP in place of IP addresses as identity, it allows a secure identity to be established among sets of devices and the IP address continue to serve its purpose as a locator only.

ARC Recommendations

ARC ends the report with recommendations that manufacturers and utilities should develop use cases leading to broader plans for how SDN could improve cyber security, mobility support and remote access services for existing plants, familiarize themselves with the roadmaps of their network infrastructure suppliers to apply to their own use cases, as well as carefully evaluate the current and evolving technologies and their potential impact on cyber security and performance.

 

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