TechHub: The Year of Cyber Disasters, Manufacturing Technology Orders Back on Track & More

Ending 2017 Strong: Manufacturing Technology Orders Back on Track

Manufacturing technology orders in September continued their upward trend, ending the third quarter on a strong note, according to Industry Week.

The rise in orders in September surprised some analysts, who had expected orders to remain weak until December.

“Manufacturers are concerned about Washington’s impact on economic growth and pace of technological change, as well as the general evolution in technology. It is necessary for companies to invest in current technologies to stay competitive, but they’re doing so at a moderate pace,” said Doug Woods, President of the Association for Manufacturing Technology.

Regionally, the North Central West, Southeast and Northeast regions as reported by USMTO benefited from strong activity in contract machining shops, forging and stamping, automotive, and consumer electronics. Notably, orders from the consumer electronics and computers sector were up 132% nationally.

The key leading indicators for manufacturing technology are positive, leading analysts to believe there will be an acceleration in orders at the close of 2017.

The Year of Cyber Security Disasters

2017 was the year of industrial cyber attacks.

Ransomware crippled hospitals in the U.K., hit U.S. pharmaceutical company Merck, infiltrated Russian oil giant Rosnoft, shut down Ukrainian power grids and more.

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

Operational technology is at a risk in the digital age now more than ever before.

According to Gartner, “the number one issue in vulnerability management is that organizations are not prioritizing their patching and mitigating controls, nor are they mitigating the exploitation of commonly targeted vulnerabilities.”

Companies are struggling to find the common ground between “what can I fix” and “what will make the biggest difference in the time and resources I have.”

The answer: a risk-based approach.

CyberX’s ICS Attack Vector Prediction technology combines a deep understanding of industrial protocols, devices and applications with:

  • ICS-specific asset discovery
  • Continuous real-time monitoring and incident forensics
  • Risk and vulnerability management
  • Threat intelligence

“It helps business leaders and OT personnel quickly understand the top threats to their most critical industrial assets, and how to most efficiently reduce their top risks.”

This unique approach reduces complexity by addressing all four requirements of Gartner’s Adaptive Security architecture — Prediction, Prevention, Detection and Response — in a single, holistic platform.

“Our customers are often concerned about what they don’t know. CyberX’s Attack Vector Prediction technology allows them to predict and visualize scenarios for real-time planning of operational cyber strategy,” said Jim Gillespie, CEO of GrayMatter.

Learn more about implementing a predictive cyber approach

About CyberX

CyberX provides the most widely-deployed industrial cybersecurity platform for continuously reducing ICS risk. Supporting all OT vendors and seamlessly integrating with existing IT security tools, CyberX’s platform combines a deep understanding of industrial protocols, devices, and applications with ICS-specific asset discovery, continuous real-time monitoring and incident forensics, risk and vulnerability management, and threat intelligence.

GrayMatter VP on OT Cyber Security at 2017 ARC Industry Forum

GrayMatter VP Kemell Kassim speaks to Sid Snitkin, VP of Enterprise Advisory Services of ARC Advisory Group, during the 2017 ARC Industry Forum in Orlando, FL.


TechHub: GE CEO on Digital Partners, Using Data You’re Already Collecting & More

GE CEO John Flannery: ‘Partners Are The Key Pillar Of Our Digital Strategy’

Originally published in CRN

Minds + Machines 2017 took place this week in San Francisco, revealing a ton of new digital software solutions to the world.

GE CEO John Flannery, while speaking to a crowd of systems integrators, resellers and ISVs, said that the Boston-based company wants to help customers work through an IT skills gap as they connect their machines, said CRN.

“Partners are the key pillar of our digital strategy going forward,” he said. “We’ll prioritize the market in two areas, with resources to focus heavily in verticals … like oil and gas, transportation, and mining … and we’ll continue to work to address adjacent markets as well, largely through our partners.”

According to a GE survey released on Tuesday, only 13 percent of executives have a mature digital industrial transformation plan in place. The rest of the industrial market customers are facing a critical skills shortage as they struggle to figure out how to tap into IT tools and drive value from their operations.

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GrayMatter CEO Jim Gillespie giving a media interview during Minds + Machines.

That’s where partners come in, said Flannery: “Bridging this gap starts with small steps, that can help you move in the right direction,” he said. “We are ready and willing to be your partner.”

GE is helping its partners help their customers navigate real-time data, predictive analytics, and IoT through an array of resources, including blueprints, real use cases, and specific technologies.

These technologies include an array of new products and solutions the company has recently released, said Flannery – including Predix Studio, a solution that helps companies build and scale their industrial applications and simplify the development process.

James Gillespie, CEO of GrayMatter, a Pittsburgh-based solution provider and GE partner, said that he is seeing that “digital gap” in industrial companies who want a better digital strategy but don’t know where to start.

“That digital gap mirrors what we see when we’re talking to clients and prospects,” he said. “The challenge for customers is their level of knowledge, skills and culture … it’s sort of a perfect storm. More people are prioritizing it as a strategy now as they look ahead.”

Pulling Needles Out of Your Data Haystack

Steps to Use Data You’re Already Collecting

By Jim Gillespie, CEO of GrayMatter

The Impossible is Now Possible. Industry 4.0 is moving fast and I’d like to let you in on a few very valuable developments about the data you’ve been collecting. It can now help you make better decisions. You can talk to your industrial data and it’s talking back to you, letting you know what’s working inside your operation and what’s not.

It’s exciting for me to see GrayMatter and our partners innovating by taking the data you’ve been collecting through sensors on industrial equipment and applying artificial intelligence and machine learning in the cloud so you can find insights on performance. Then you know exactly where to make improvements.

You need a system to sort through the haystack of data and pull needles out to focus your subject matter experts. That’s what we can do now.

It all starts by framing up the action strategy in three parts.

Step One: Set Your Goals

Start at the end and work backwards.

What return on investment do you want to see? You don’t need all the data you think you need. What information will help you solve the problems you want to solve? What’s the path to getting there? Having this road map first is critical, because otherwise a lot of time and money can be wasted.

Step Two: Start Creating Digital Twins

You hear the term digital twin, but what does it really mean?

Simply put, creating a digital twin is the process of merging physical and digital worlds.

The process takes a physical machine and uses technology to get all the information about past states, present states and predictions. That information creates a digital model that’s alive – taking in a stream of data – using that to adjust so the model is personalized to be a precise representation of the asset.

The software version is used for what used to be a physical inspection – requiring people to be right next to the machine. The virtual version can be done from anywhere and at any time, expanding the value of those inspections and allowing them to have more of a real-time impact. It creates a constant inspection that allows the operators to predict failures sooner.

pulling needles out of data haystack

Digital Twin Value

The digital model of a machine, built and run in a virtual environment used to be available only to the biggest companies with the largest budgets. But the Industrial Internet and an explosion in sensor technology have lowered the cost and broadened the access beyond the elite.

People are not only connected to people, they’re connected to every kind of device at home and now work.

Manufacturers stand to win big from this. Factory floors are outfitted with tremendous amounts of sensors to collect data, but because that data has been locked up it hasn’t provided value.

The digital twin allows us to unlock that data and not just for one asset at a time. We can now model machines in groups – for example, a machine builder with thousands of machines installed across hundreds of customers – will now be able to operate best in class using digital twins.

There’s potential to unleash productivity and efficiencies like we’ve never seen before.

Step Three: Get Behavioral Information from Digital Twins

In order to move to more advanced use cases, such as adaptive diagnostics, condition-based maintenance or predictive failure, Industrial IoT systems need to know more than simply the current device state.

They need to know why. Knowing current device state only helps from a monitoring standpoint. While important, it’s really just the beginning of what we can expect out of IIoT systems. If we know why an asset exhibits a certain state, we can determine what conditions lead to that state and take proactive steps to prevent future occurrences. 

This new layer of getting insight through behavioral information allows you to ask for more. You can search your data and get answers back right away. It’s like an instant messenger for operational technology.

Step Four – Get Digital Twins to Interact

Achieving this may mean digital twins built using multiple discrete machine learning algorithms potentially spread across multiple IoT platforms, not simply relying on one. Eventually, we should expect that digital twins will interact with one another in virtual space.

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Leap Ahead

If you’re short on time, staffing or budget – GrayMatter can get you up and running to achieve value quickly. You know you need an IoT strategy in the near future, but may not know how to go about it. Rather than trying to design, source and build it yourself we can put the strategy in place in days or weeks.

You also don’t have to do everything at once, you can start with a limited selection of assets and scale up or down as you learn performance and asset behaviors.

Our strategy is a Salesforce version of a remote monitoring and diagnostics center that you can buy and implement incrementally.

GrayMatter’s Digital Twin Strategy

We use data, predictive capabilities and machine learning to identify your best and worst performers in each asset group. Your operators are automatically alerted to the worst performers, then they use an intuitive web interface, to turn the worst into the best.

Continuous improvement becomes expected, simplified, and routine.

As your team builds new improvements or optimized settings, they can be scaled out, automatically, to every instance of a specific machine or piece of equipment.

You Don’t Need a Data Scientist

The complex algorithms that can leverage your data are pre-built so anyone can start creating the models and analytics to generate insights. One person no longer holds the keys to data, with this unique platform everyone gets a better understanding of your businesses processes, so you’re not focusing on the math to bring the insight, you’re focusing on creating better outcomes for your customers.

Think Big, Start Fast

You need to think big to truly transform your organization, but you also have to start acting on your data today.

We’re anxious to spread the word about how easy this is and to un-complicate it for you. Let me know if you’d like to discuss further. The case study is also available to read here:

Read the Case Study

New Ransomware Attack on Russia, Ukraine

A new strain of ransomware nicknamed “Bad Rabbit” has affected systems at three Russian websites, an airport in Ukraine and a subway system in Kiev, according to BBC.

However, despite bearing similarities to the WannaCry and Petya outbreaks earlier this year, it’s unknown how far this new malware will spread.

“In some of the companies, the work has been completely paralysed – servers and workstations are encrypted,” head of Russian cyber-security firm Group-IB, Ilya Sachkov, told the TASS news agency.

The Russian Central Bank said in a statement that it had recorded a BadRabbit attack on Russian financial institutions, but none were compromised. BadRabbit had targeted several of the top 20 Russian banks but failed.

A majority of the victims of the attack are located in Russia, with attacks also in Ukraine, Turkey and Germany.

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.

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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.

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