Plant-wide
Optimization
John Nesi
Vice President, Market Development
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Level Setting
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Rockwell Automation Today
Leading global provider of
industrial power, control and
information solutions
• Fiscal 2009 Sales: ~$4.3B
– ~50% outside the US
• Two Operating Segments
– Architecture and Software
– Control Products and Solutions
• Employees: ~19,000
• Serving customers in
80+ countries
• Trading Symbol: ROK
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Macroeconomic Drivers and Outlook
Real GDP
Y/Y Change (%)
2006
2007
2008E
2009F
2010F
10
5
0
-5
-10
-15
2005
2011F
Source: Global Insight (October 2009)
2006
2007
2008
2009F 2010F 2011F
Source: Global Insight (October 2009)
Nominal Cap Ex - Mfg
Global Manufacturing PMI
Index
Y/Y Change (%)
World
Advanced Economies
Emerging Economies
20
10
0
-10
-20
2005
World
Adv anced Economies
Emerging Economies
Y/Y Change (%)
World
Advanced Economies
Emerging Economies
8
6
4
2
0
-2
-4
2005
Industrial Production
2006
2007
2008E
2009F
2010F
2011F
Note: Regional aggregates compiled by Rockwell Automation based on Global Insight data.
Source: Global Insight (August 2009)
62
56
50
44
38
32
>50 Expansion
<50 contraction
World
Advanced Economies
Emerging Economies
2005
2006
2007
2008
2009
Note: Regional aggregates compiled by Rockwell Automation.
Source: JPMorgan Chase (World); Global Insight
Modest growth forecasted in 2011 for both Advanced and Emerging Economies
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
4
Expanding our Global Presence
Future
2008
23%
25%
40%
50%
13%
Growth
17%
7%
10%
7%
North America
Latin America
Asia Pacific
300 sales and support
9,000+ employees
30 sales and support
15+ countries
3,000+ employees
60+ sales and support
20+ countries
3,000+ employees
8%
Europe, Middle
East and Africa
90+ sales and support
50+ countries
4,000+ employees
Goal: 60% of revenue outside the U.S.
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Next Cycle Rockwell Automation Growth
Accelerators—Our Investments
Process
Software
Migration of legacy DCS systems, expansion of DCS capabilities
Software for connectivity and optimization
OEMs
Machine performance, productivity, reduced technical risk
Safety
Global regulations, productivity, personnel protection
Emerging Markets
China, India, SE Asia, Latin America and Emerging EMEA
Continued investment in Integrated Architecture is the foundation.
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Manufacturing Challenges
Globalization, Sustainability, Productivity, Innovation
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Challenge: Globalization—
Arrival of the “Global Economy”
40%
Industrial Production Index – YoY % Change
30%
20%
10%
0%
-10%
-20%
Asia-Pacific Excl. Japan
China
Western Europe
United States
World
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
20
10
20
08
20
06
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
19
80
-30%
Impact and Opportunity
• Global synchronization of
credit markets
― Access to capital is a level
field—globally
• Arbitraging across geographies
is less viable
• Global synchronization of
supply chains has begun
― Manufacturing footprints are
being “right–sized”
• Speed and innovation critical
Optimization within the Plant is Consistent
with Overall Enterprise Competitiveness
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Challenge: Sustainability
• Energy utilization has become top of mind
• Environmental concerns mounting
–
–
–
–
Petro paranoia
Water scarcity
Cap/Trade
Zero Impact Manufacturing
• Alternative Energy Market
• Smart Grid Development
– Smart Factories
• Cogeneration, Biomass recovery
systems being added
• Sustainable products and processes
Optimization of Resources is Consistent with Overall
Enterprise Efficiency and Productivity
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Impact and Opportunity:
Corporate Social Responsibility
• The CEO
― Driving CSR targets to his organization
― Making investor declarations
• Corporate EHS officer targets:
–
–
–
–
Lost time injury
Risk management
Environmental compliance
Carbon footprint
• Operations executives—a lean opportunity
― Reduce COGS
― Re-engineering processes
• Engineering management
― Product reformulation
― Green design
Sustainability Becomes a Key Enabler For Corporate Success
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Response: Sustainable Production
Manufacturers face increasing pressure to reach productivity
objectives, utilize resources more efficiently and protect
workers and environment
Energy
Environment
Safety
• WAGES Management
• Regulatory Compliance
• Elect. Safety Components
• Utility Optimization
• Emissions Monitoring
• Functional Machine Safety
• Intelligent Motor Control
• Emissions Optimization
• High Availability and TMR
• Consulting and Auditing
• Cap/Trade Reporting
• Track/ Trace/ Genealogy
• Alternative Cogeneration
• Sustainable Production
• Product Integrity
• Demand Management
• Resource Optimization
• Market Leadership
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Cleaner, Safer, More Energy Efficient
Resource Optimization
Energy Management
•
•
•
•
•
Industrial HVAC
Demand Management
Load Shedding
Chiller/Thermal Optimization
Central Utilities
•
•
•
•
•
Material Accountability
Line Performance/OEE
Combustion Control
Production Management
Digital In-line Blending
Emissions and Environment
•
•
•
•
Product Safety
Solvent Recovery
Waste prevention/recovery
Water/Wastewater
Continuous Emissions Control
• Mass Serialization
• Track & Trace
• Regulatory Compliance
Energy Production
• Natural Gas processing and
waste management
• Biodiesel and ethanol control
• Wind/solar power control
• Heat Recovery Systems
Machine Safety
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
•
•
•
•
•
Automated Safety Systems
Emergency Shut Down Systems
Hazardous Operations Studies
Compressor Control
Burner Management
Smart Grid/ Smart Plant
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Challenge: Innovation
• Aging plants and legacy systems
– Modernizing infrastructures
• Aging domain expertise
– Next generation technology operators
– Educational systems lacking
• Global competition, localized
requirements
• Innovation pipelines and partnerships
• Time to market
Innovation Must Address Product, People, Processes
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Impact and Opportunity
Plant operators will be more technical, less domain knowledgeable
Process expertise will be built into smarter control systems
Modeling for optimized performance
Manufacturing intelligence “built in”
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Driver: Productivity
Corporate
Capital
ROA
ROIC
Improve quality
Operations
Engineering
Asset Utilization
Inventory Velocity
Design for scale and maintainability
Quality
Continuous process improvements,
change management
Reduce costs
Automation investments
Serve automation KPIs to management
Improve cash flow
Variable costs (material/ energy )
Design for efficiency, yield
Globalize Footprint
Supply chain efficiency
Best in Class vendor selection
Demand Based Mfg
Improve decision support
Standards – information, automation
Reduce Carbon Footprint
Minimize scrap/ rework
Managing asset lifecycle
Time to market
Demand response (on time delivery)
Engineering efficiency
Cascading Productivity is a key driver of Operational Excellence
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Impact and Opportunity
• Legacy systems retarding growth
• Productivity drives investment
• Aging automation equipment
• Advanced controls and
information open productivity
gains
• Information exchange standards
emerge to promote efficiencies
Modernization of Automation Infrastructures will Drive Growth
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Response: Plant-Wide Optimization
New pressures are driving manufacturers across
their enterprise on continuous improvement at all
stages of the plant lifecycle.
Manufacturers today must leverage their
automation investment to create an architecture
for continuous optimization.
Maximize Return on Assets
Flexible Operations
Innovative engineering
• Risk Mitigation
• Asset Efficiency
• Decision Support
• Time To Market
• Cost Management
• Advanced Process Control
• Supply Chain Efficiency
• Production Intelligence
• Design Productivity
• Globalizing Footprint
• Utilization
• Total Lifecycle cost
• Demand Forecasting
• Quality, Yield , Productivity
• Global/ Local Standards
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Optimized Plant and Supply Network
Ag
ile
Su
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yC
hai
n
ion
t
c
u
ro d
P
ble
a
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tai
s
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S
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Enabling Plant-Wide Optimization
Enterprise
Business
System
Suppliers
Convergence
Customer
Factory
Technology to
Converge the Plant
Unprecedented levels of visibility
Flexibility to change quickly with the market
Simplification of functionality and systems
Automation is a hidden value amplifier. Unlock profit potential with real-time decision power.
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Productivity Obstacles—System Fragmentation
Costly Integration Disconnected Information
PLC / EOI
PC, Material
Tracking Software
Multiple Human-Machine
Interface, PC
Custom Batch Code
PC, Material
Tracking Software
DCS
PLC, Motion Controller,
HMI/EOI
Safety
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Obstacles—System Fragmentation
Simplify three key components of a Plant-Wide Optimization Solution
Presentation
Delivery
Source
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Obstacles—System Fragmentation
Presentation
Delivery
Source
One Plant-wide Infrastructure Allows Efficiency and Productivity
Across All Layers of the Organization
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Integrating the Architecture—2000 to 2010
Integrated Architecture
Large
Control
Small
Control
Nets
I/O
Drives
Motion
HMI
EOI
Value created with Integrated Architecture vs. sustaining independent focuses
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Smart, Safe, Sustainable—2010 and Beyond
Plant-Wide
Optimization
Process
Sustainable
Production
Information
Machine Builder
Performance
Safety
Discrete
Integrated Architecture
Evolution of Integrated Architecture brings new customer focused values
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Integrated Architecture
Core Sustainable Platform
Performance enhancements and optimum
form factors for control, communications,
visualization, and I/O
Multi-Discipline Control
Integrated Architecture
To expand commonality of systems plant-wide and in new markets
Real-Time Information—live data and open access throughout your power and control system
EtherNet/IP—a single version of IT friendly Ethernet for Information, I/O and Motion
Scalability Dimensions—flexibility for size, family and multi-discipline functions
Knowledge Integration
To connect entire system with reusable intellectual property
Investing in core system increases lifecycle productivity AND performance
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
29
Intelligent Motor Control:
Optimizing Plant Performance, Protecting Investments
Control
|
Communicate
• Variable speed AC drives
• Packaged and pre-engineered solutions
• LV and MV motor control solutions
|
Protect
• Electronic overload protection relays
• Soft starters
• Condition monitoring
• Asset management
Soft-Starting
Electronic Motor Distributed Motor Control
Protection
Condition
Monitoring Packaged Products
•Drive Systems
•LV & MV MCC’s
Variable Speed
Drive Control
Supporting capital investments long term
(Confidential – For Internal Use Only) Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Integrating Information, Control, Power
and Safety… For Optimized Operations
Visibility of Plant
Operations
Monitoring and diagnosis
of asset health
Asset utilization and
environmental protection
Production flexibility and
regulatory compliance
Energy usage and
production optimization
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Process System Evolution
Design
Productivity
System View with Re-usable Engineering
Plant Information and Decision Support
• End-to-end Process and Device Alarms
High
Availability
Field Device
Integration
• EtherNet/IP in redundancy
• End-to-end Fault Tolerance and
Integrated Safety
Process and Power Devices over
EtherNet/IP backbone
Integrated Plant Asset Management
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Advanced Process Control
Methodology
Reduce in-process variability and improve
performance of continuous processes by:
Deploying advanced models in the control system
Assessing current and predicted operational data
Making informed decisions on production flow
Trends in Advanced Process Control
Live decision making; economic modeling and
financial optimization
Operations Productivity
Current Technology
Model based control
Historical and/or offline analysis
Dedicated software environment
Copyriht © 2010
Technology
Evolution
Expanded set of Advanced Process
Control instructions
Controller based soft sensors
Real-time predictive control
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Extending Automation Investments to
Provide Operations Knowledge
Operations
How are we doing
against plan?
Engineering
What is my equipment
utilization?
Production Manager
What are my bottlenecks?
ERP
Quality
What is my part rejection rate?
Maintenance
What are my
downtime causes?
Plant Manager
What is my response time
to a new order?
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Real-Time Information System
Manufacturing
Intelligence
Web-enabled
Scalable Historian
Unlocking the hidden amplifiers in automation systems
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Example: Need Cost Data?
How am I
doing?
PLANT MANAGER
VP OF OPERATIONS
CFO
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Driving Performance Management
Enterprise and Manufacturing Integration
Turning raw data into actionable information
Manufacturing Intelligence
Information
Leveraging control system data to make informed
business decisions
Production Tracking & Traceability
Environmental compliance, reduce scrap, raw materials
and energy costs
Enterprise Energy Management
Collect and archive Utility data across the enterprise
Logix as the plant floor data server drives visibility, compliance and quality
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
The Rockwell Automation Advantage
• Real-Time Information for true manufacturing intelligence
• Scalability across Automation and Information architectures
• High Performance, Multi-Discipline Plant-wide Control
• A converged network infrastructure with industry standard security
• A Partner Network dedicated to customer success
Process
Information
Safety
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Discrete
Lifecycle Support
Services and Support
Global Solutions
• Maximize Productivity
• Global Execution
• Optimize Plant Assets
• Improve Financial
Performance
Asset Management
Repair Services
Migrations / Conversions
Preventive Maintenance
Online and Phone Support
Remote Monitoring
Training
Assessments
FEED
MEC/MAC
Turnkey Engineering
• Domain Expertise
• Project Management
Integration
Fabrication
Commissioning
Startup Services
Solutions
Solutionsand
andServices
Servicesfor
forthe
theentire
entireautomation
automationlifecycle
lifecycle
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Conclusion
Manufacturers today must leverage their
automation investment to create an architecture
for continuous optimization.
Integrated Architecture is the foundation for
agile, profitable manufacturing.
Maximize Return on Assets
Unlock the Profit
Potential of Automation
and Information Assets
Flexible Operations
Provide Robust
Information to
Operators and
Managers
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.
Innovative engineering
Design Processes
for Flexibility, Agility,
and Repeatability
Thank You
Enjoy The Fair!
Copyright © 2010 Rockwell Automation, Inc. All rights reserved.