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: Anheuser-Busch steps up after hurricane, Manufacturing & Digital Transformation and WEFTEC

In times of national disaster, Anheuser-Busch steps up

Anheuser-Busch paused beer production this week to send 155,000 cans of drinking water to those affected by Hurricane Harvey in Louisiana and Texas.

The first shipment arrived at the American Red Cross in Baton Rouge, Louisiana, on Monday, with two more shipments sent to Arlington, Texas, according to USA Today.

The Georgia brewery regularly stops beer brewing to fill cans with drinking water throughout the year to assure the water is ready should a local community need it.

This is a part of the Anheuser-Busch emergency drinking water program, which partners with the Red Cross to identify communities in crisis and supply them with safe, clean, canned drinking water following disasters.

“Putting our production and logistics strengths to work by providing safe, clean drinking water is the best way we can help in these situations,” said Bill Bradley, the company’s vice president of community affairs.

Providing emergency drinking water to people since 1988, over 76 million cans have been shipped nationwide. The last wave of support was last year, in which cans were shipped to those affected by Hurricane Matthew, floods in Louisiana and wildfires in California.

Read more.

3 Keys to manufacturing digital transformation

Digital transformation must have a purpose: to increase efficiency, quality and cost savings. Otherwise, it’s just a waste of time.

Manufacturers are struggling to keep up with the increase in volatile customer demand, according to Industry Week.

Processes and supply chains must be adaptable enough to turn on a dime. This doesn’t happen if everything is done manually, in Excel spreadsheets, or in systems that don’t talk to each other.

The idea of capturing data, automating manual processes and enabling information sharing becomes imperative.

Controlling the shop floor

Manufacturing starts at the shop floor. Manufacturers must have shop floor control, including access to production information, inventory, quality data and the ability to quickly adjust to machine status across the enterprise.

Connecting the business

The shop floor must connect to the rest of the enterprise to make data accessible and promote rapid, accurate decision-making. Cloud manufacturing ERP not only automates paper-based, manual processes, but also consolidates information into a single set of accurate data.

Unlocking People Potential

Gerdau plant in India.

Once the cloud computing infrastructure is in place, people can pivot to work as business analysts. Production workers can see everything in the “manufacturing moment” over any device, rather than hunting down and piecing together information.

Managers can view analytics and dashboards that relate to their role from anywhere, over any device, to stay on stop of business.

Steel innovator Gerdau sought out the goal to reduce maintenance costs by 20%, undergoing a digital transformation as a result.

With a company of more than 35,000 people across 13 countries, accomplishing the reduction was critical to its profitability.

By jumping into the digital realm of the Industrial Internet of Things (IIoT):

    • An initial investment of $1.5 million yielded annual savings of $4.5 million
    • 93 hours per month were saved in scrap classification
    • Savings of more than 130 hours in unplanned downtime
    • Truck driver productivity had gains of more than 100% with a resulting 5% drop in freight costs
    • Raw material inventory reduced from 3 days to 7 minutes

Download the Steel Case Study

WEFTEC: The world’s largest annual water quality conference & exhibition

Recognized as the largest annual water quality exhibition of its kind, WEFTEC offers water quality professionals from around the world quality education and training.

Showcasing the most cutting-edge technologies in the field, it serves as a forum for domestic and international business opportunities and promotes industry networking.

A smart sensor fountain demo will be at WEFTEC, a co-innovation product by GrayMatter and DC Water.

Experts in the water quality field offer a wide range of technical sessions and workshops, creating a diverse list of water and wastewater issues and solutions including:

  • Collective Systems
  • Energy Conservation and Management
  • Membrane Technologies
  • Plant Operations and Treatment
  • Regulations
  • Research
  • Residuals and Biosolids
  • Stormwater
  • Utility Management
  • Water Reuse/Recycling
  • Water Quality & Watershed Management

GrayMatter and DC Water have created a drinking fountain that monitors water quality and flow in real time – giving users more confidence in the water they are drinking and saving money spent on maintenance and testing.

Find GrayMatter at booth #6549 to learn about the co-innovative partnership and see a live demo of the fountain.

Read more.

TechHub: Digital Transformation in Chicago, Transform 2017 Keynote Kristi Woolsey & Ransomware in Industrial Networks

Chicago: The New Silicon Valley

Chicago’s technology community has been booming in the last five years.

A new KPMG report lists Chicago as a hopeful candidate to be the next international hub for innovation due to its talent and infrastructure, according to Inc. Magazine.

The city fosters a developing startup ecosystem, which raised more than $1.7 billion in funding in 2016, and ranks among the best in the country for growth of tech jobs.

Whereas Silicon Valley has shifted away from innovation to a lifestyle, landing tech leaders like the Snapchat CEO on the front page of a major fashion magazine, Chicago fosters a culture of no-nonsense leaders based on the value of hard work and dedication, according to Inc.

digital

The rooftops at Wrigley Field. Source: CNNMoney

The digital revolution is making more millionaires than ever, pooling together the most brilliant minds on the plant to cultivate an innovative mindset that focuses on creating value.

Join GrayMatter and GE Digital for an interactive session on digital transformations in Chicago on Wednesday, June 21.

Designed for you to learn and share your thoughts, there will be a chance to network with peers and watch the Cubs play the Padres at the exclusive rooftop suites at Wrigley Field.

Nate Arnold, VP of Manufacturing Digital Technology of GE Digital and GrayMatter CEO Jim Gillespie will reveal specific insights on the best paths to success in digital manufacturing and reveal what’s gone wrong in past cases.

Space is limited, so be sure to reserve your spot today.

Reserve My Spot

Inc. Magazine’s Best Workplaces of 2017 AnnouncedInc. Best Workplaces of 2017 GrayMatter

Inc. Magazine recently announced the 2017 best workplaces in their annual list, featuring GrayMatter.

Inc. recognizes the top companies to work for, asking thousands of employees about the places they work. For GrayMatter, transforming operations and empowering people includes our own people.

Transform 2017: MAYA’s Kristi Woolsey as Keynote Speaker

GrayMatter is proud to announce that Transform 2017, the annual GrayMatter conference in Put-in-Bay, Ohio, will feature MAYA Design’s Kristi Woolsey as a prominent keynote speaker this year.

Transform 2017 Kristi Woolsey

Kristi Woolsey, MAYA Design

Woolsey is a dynamic speaker with a long track record of providing insightful presentations that put today’s initiatives into a future context.

Most of her talks revolve around behavioral strategy, the technique of influencing employees and customers towards desired behaviors including greater loyalty, innovation, collaboration, and productivity. These talks and workshops challenge business leaders, HR, IT, and CRE professionals to create lasting branded experiences that increase employee and customer engagement, driving improved business outcomes.

GE Digital’s Sr. Service Director Paul Casto will also present as a keynote speaker. Presenting the power of brand new applications that can be leveraged in the cloud to provide extremely fast, easy to access information about all your assets, he will help cut through the chaos and decipher your digital priorities and first steps.

Transform 2017 is a three day conference in Put-in-Bay, OH, from August 1 – 3.  Professionals in all verticals who are passionate about operational technology and transforming into digital, industrial operations should plan to attend.

View our full agenda and register before June 9 to get the early bird special.

View Agenda

Industrial Networks at Risk of Ransomware Attacks

In recent weeks the news has been filled with reports of the newest malware, WannaCry ransomware, which has infected more than 200,000 systems worldwide.

An alert was published by the Industrial Control Systems Cyber Emergency Response Team, a division of Homeland Security, which advised operations to update security software, create backups, train employees and configure access controls to block unauthorized access to sensitive systems.

Industrial environments are particularly susceptible to these types of attacks for several reasons, including the improper segmentation of IT and OT networks, unpatched Windows machines and the presence of SMB on devices hosting HMIs, engineering workstations, historians and other systems, according to Security Week.

Phil Neray, VP of Industrial Cybersecurity at CyberX, believes that patching the vulnerability is not easy in the case of ICS.

“It’s worth noting that many of the SCADA applications embedded in our electrical grid and manufacturing plants were developed years ago and are tethered to older versions of Windows — so the fix isn’t going to be easy,” Neray said.

 

 

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