IIoT & Industry 4.0 RANT by Walker Reynolds

okay alright so this is a this is IIoT the industry 4.0 application take zero alright so Zach asked me to go on a rant and so this is going to be my rant okay it went so but I'm gonna I'm gonna explain this first you guys this is every business this right here what you see right here is the one thing every single manufacturer on the planet has in common it doesn't matter what they make okay they sell stuff they plan to produce that stuff they execute the production of that stuff they put it somewhere they ship it they invoice for it and they get paid for it and then they ask the customer if they want more that is literally how every single manufacturer on the planet works okay so at when you're a mom and pop and you got four people and you built a garage and you know you got a pole barn in the back and you're making widgets in the back for one customer you're still doing this on the very first day you do business you are this is your workflow okay you sell stuff you plan to manufacture it you execute the manufacturing of it you store it somewhere you ship the shit you invoice it you get paid for it and then you call the customer and ask them if they want more that is literally manufacturing in a nutshell okay as you grow these steps become more and more difficult okay I add more and more sales people and so I need to use a piece of software that helps my sales people manage the list of all of our clients and how often do we call those clients how often to those clients calling us what are they complaining about so we buy a CRM software okay because when I had one sales guy or when I owned the plant it's just me I just keep all this in a spreadsheet okay but then I need a piece of saw we're because now my sitting my outside and inside sale people need to coordinate with one another so we buy a piece of CRM software ok your ERP system you got to have from day one and in most cases your ERP system from day one is QuickBooks ok I can tell you that when we go and we're migrating a you know a small manufacturer to midsize or enterprise level one of the first things we've got to do is change out QuickBooks for a more robust ERP system like for example QuickBooks doesn't manage multiple warehouses it doesn't manage multiple facilities so having those locations and doing your costing in the ERP system is very difficult when you use QuickBooks but when you you may start out using a spreadsheet for this ok that's all this is all paper stuff right when you do your execution this is the left I can tell you right now this is the last piece of software anyone buys ok this this is the last piece of software anyone buys ok the manufacturers do not buy mes software until way way way down the road they don't even buy SCADA software until way way way down the road this is the second and last piece of software you buy and you expect your machine builder to provide all that so your machine builders the one who's providing the HMI ok so and then you've eventually I need more visibility I need to collect more data I need more visibility to my machines running so I add SCADA software so that my plant supervisor and my control room can identify problems and Riau tree appropriate resources quickly enough so that where we maintain our efficiencies and production ok warehouse management system you got to have most of the time warehouse management system starts out up here in the ERP so we try to use sage or we try to use QuickBooks to manage all of our inventory ok so as we're producing widgets we try to throw them back into the ERP system but eventually we realize we need a standalone WMS system ok shipping software it may be the WMS system it may live up in the ERP system or it may be standalone okay invoicing is it originally it's QuickBooks but you may end up using a separate invoicing software so I may do resource planning in ERP and I may invoice using sage so this could be si P this could be sage okay and then eventually when that's all done that closed loop is done you may have someone manually say okay we shipped out X number of widgets and we put that in the CRM and I called so-and-so on such and such a date and he told me he was happy with the shipment as my business grows that methodology doesn't work for me okay so you talked about like digital transformation right the application of digital transformation well a lot of it what ends up happening is in industry 3.0 we upgrade the CRM we upgrade the ERP I mean more companies waste money on the ERP system then I mean you know if you're if you're in a top-line executive out there and you have spent seven figures on your ERP system you ought to be ashamed of yourself I mean you got you got hoodwinked okay you got hoodwinked your business doesn't happen in the ERP system you want it to but it doesn't it happens down here in the green box happens down here in the green box okay so vast majority of manufacture you want to rent the vast majority of the manufacturers are wasting their money at the ERP level okay they're being sold to bill of goods the ERP system will do everything you need okay let's use let's use Oracle or you know let's buy Oracle's off-the-shelf solution let's buy s ap let's buy sa PB one let's buy batch master let's buy epic or in listen you guys will be able to fill up our comments of how you've been sold a bill of goods at the ERP layer you spent hundreds of thousands or millions of dollars integrating these solutions and the information that those solutions could provide you ended there there and and your business is running without without real-time information from the ERP or without your ERP system being able to consume real-time information so you want to know yia on industry 4.0 matters you cannot have your dream facility the idea that the ERP is going to be seamlessly integrated through operations without using industry 4.0 principles you can't integrate it from the edge without using a IIoT protocols there's no way to manage it you would need an army of engineers to be able to maintain everything okay all right so let's talk about the industry 4.0 application yeah and I mean so the industry 4.0 application is this I have my unified namespace okay let me use a different color because I don't want to mix up the production part I have my unified namespace which is my business okay my business it's the digital twin the executives the chief technical officer and the CEO who spent who should be ashamed of themselves for spending seven figures on on the ERP system that doesn't make their business any more efficient it doesn't any and if you can get people to tell you the truth they're gonna tell you you're not you're not capturing efficiencies in the ERP system you're wasting your money I mean you're wasting your money you got to have an ERP system but your focus doesn't need to be there your focus needs to be here okay so the information that you want in the ERP system comes from here and it comes from here and it comes from here and it comes from here and it comes from here okay so unless you're going to connect the ERP system and use it use the ERP system as your unified namespace this is the IT component again people in the comments go ahead and tell me you know what's the number one barrier to connecting mes SCADA a PLC WMS and shipping to your ERP system and the answer is it's your IT department your IT department is apt there for whatever reason they're going to tell you no you cannot connect to our ERP system I challenge any chief technical officer any direct of Technology any director of IT to come on our podcast and make their argument for why it is we should not be connecting into ERP system and I promise you I will humiliate you on camera so I promise you promise you but for whatever reason you want to know about that what you you want to rent for whatever reason this resistance exists now it's just pure ignorance it's just absolute ignorance for example they'll say we shouldn't connect our business network to our PLC's and our HMIS ok because someone might say you know might want to sabotage our systems no that's horseshit you want to know what's your number one risk of connecting your business network to your your process network is its multicast traffic ok everything out here is explicit unicast transmission that is the HMI talks directly to the PLC it doesn't broadcast out on to the network it talks explicitly to the PLC doesn't generate a lot of noise therefore the PLC doesn't spend a whole lot in for me a whole lot of time trying to decipher messages it should be ignoring ok that's your number one issue how do we address that network address translation we use at net which means that it turns multicast traffic into explicit unicast traffic number one and number two we use outbound only report by exception Technologies i io T there are no inbound open ports everything publishes out from the edge ok again it's this pure ignorance so it's the simple fact that there are a lot of people who are talking about IOT and industry 4.0 who have no idea what they are talking about I mean literally no idea and and the people that who are listening to them are becoming dumber the executives who are listening to them are becoming dumber and they are losing they're losing the opportunity to gain a foothold in the market by leveraging these technologies ok all right so let's talk about the industry 4.0 application I with my unified namespace instead of instead of bopping down through the software okay what I do is I have all of my software publishing to the namespace and consume from the namespace number one the advantage of that is that when I need to upgrade my ERP system so right now if I've got an explicit connection from ERP to m/s through middleware by the way there's almost always yep you're almost always middleware there why but and it's all horseshit they've been lying to you I mean you did you're just you've been you've been lied to IBM wants you to buy this middleware this middleware is of no value to you none TIBCO wants you to buy this middleware it is of no value to other manufacturers out there wants you to buy this data bus it is of no value to you in fact they are the ones who are funding the white papers that are telling you that it is dangerous to connect your business applications to your operational technology why because they're selling products that they want you to buy and you're not gonna buy them unless you're afraid to connect that to that I've been doing this 21 years you know what this is the number of times that I have seen an operational failure because of a connection on a business network zero zero okay all right so anyway let's get move this so what happens when I upgrade my ERP system I've got an explicit connection between ERP and mes and I upgrade that that my ERP system I got a real redo those connections but if the ERP system and the mes published into a unified namespace and I make an upgrade to the ERP system do I have to re-establish this connection know when I do the installation of the new ERP system all I do is configure the area within the namespace it has to publish in to write very simple easy stuff same thing mes SCADA PLC HMI all right I want to talk about one other really really important part of the business and why this concept of the unified namespace and leveraging industry 4.0 methodologies matter okay when a business grows to the point where they're trying to figure they they they almost always growth looks like this in manufacturing you know the plateau and grow and plateau and grow when you're plateauing manufacturers are trying to figure out where to like where do I capture my next big growth from this is where mes and the in the OEE calculation came from okay so I I know we've talked about this before but let's talk about it again why does OEE matter overall equipment effectiveness the the OEE is the calculation of availability times quality times performance okay Oh II II is for the executive that's at the ERP layer when I get a when I get an order for 25 million widgets and the customer says I need to have it I need to take delivery in 90 days how does the plant know whether or not they can produce 25 million widgets within 90 days they gotta wait two things right they got away what is my current schedule against what is my overall capacity right well how do you determine capacity it is exactly it is when I develop a machine when a machine builder builds a machine he says you can you can create a thousand widgets per hour out of this machine how many customers produce a thousand widgets per hour zero absolutely zero because no one runs at 100% efficiency right Oh II II is the efficiency number whether it's you know a good OEE numbers anything greater than 90 when we go in and to deploy and I'd love Corso to chime in here because they do a lot enterprise mes systems but when we go in and we deploy an mes system for the first time that is we start actually calculating OEE for a customer do you know what the average oae number is it's in the 30s the average OEE number is in the 30s okay do you know how long it takes us to get them into the ATS 60 to 90 days just by virtue of giving them the number just by virtue of giving them the number they go from in the 30s to in the 80s in 60 to 90 days easily they they doubled their capacity exactly all right so let's break the OEE down a little bit further availability quality and performance availability is how much my machine was up ok so on a scale of zero to a hundred percent what percentage of the time while I was running my production order was my machine available to run if I have a low availability number we yell at the maintenance manager okay quality is what percentage of the parts that I produced are good if I have a low quality number and this is normally the best number generally when you first start out they already know whether they're producing lots of bad parts they don't know whether them exactly how much the machines been available and they really don't know what the performance number is okay quality generally they're in the ninety five percent and higher if but if you by chance you have a low quality number it generally means either you've got bad raw materials you either yell at the machine builder maybe it's a bad a new machine you may have bad tooling okay or bad engineering but that's generally what quality the quality numbers for performance is when you were running how fast was that machine running what was it producing relative to what it should have produced when it was available and it was producing good parts okay that you yell at the operator here in operations I can tell you this most customers believe that this number is the lowest number when you ask them before they ever see it they'll believe it's because their operators aren't working fast enough do you know that it's almost never the operator it generally it's a combination of availability and efficiency in scheduling so generally the changeover between two production runs takes much much longer than what they think it takes okay and it's so it's generally efficiency in scheduling and availability of the machine okay all right so these numbers are where manufacturers are capturing capturing their their next level of efficiency well guess what a lot of companies now are deploying mes systems and they're capturing those gains now they're capturing that thirty percent to eighty percent jump and then they're going to gradually increase the 90% but are there costs going down or up right I mean is everyone's cost going up or down right now as a manufacturer can I assume that my raw material is there gonna cost me less tomorrow than they know they're gonna continue to go up there costs are going to continue to go up the cost of labor is going to continue to go up the cost of natural resource is going to continue to go up so they have to capture new efficiencies okay so where's the next place you go once you once we get to 99 percent oh ye where do you go you go here you go to the edge is every PLC program that you've ever read are are they the most optimal programs no they're not are there ways for us to make these machines run better run faster yeah just just by virtue of change in the way the machine thinks that's right what about preparing so we we decrease scheduled downtime which doesn't ding any of these numbers by the way so scheduled downtime doesn't ding any of these so scheduled downtime doesn't hurt your OEE number ok yeah it that's your teep number it hurts the teep number but not the OEE number so so where you have to decrease the scheduled downtime by predicting failures ok so I predict more efficiently when I need to do preventative maintenance ok that's what machine learning does I mean that's those are those that's the evolution right if you as an organization are not leveraging IOT and industry 4.0 between now and five years from now what's going to happen is is as you evolve to the next step of capturing efficiencies in your business you will not have the infrastructure in place to do it that's the issue that's the fundamental issue if you want to talk about the rant that you know yeah yeah I mean you're well that's the infrastructure you want you're not going to have the data or nor the infrastructure nor nor the infrastructure yeah it's not it's not even just yeah you're right but it's not just Tesla it's Amazon I mean you want to know why you know why is it the most cutting-edge manufacturers are killing their competition they're murdering them and it and here's the deal when you go into the vast majority of organizations the vast majority of organizations doing that the I 3.0 to the 4.0 my digital transformation is difficult you want to know why because they can't even get the 3.0 implementation correct they can't even they can't even get out of their own way okay but the the Amazon's of the world the Tesla's of the world the Boeing's Boeing's another really really good example of masters of manufacturing there is no internal resistance to developing this architecture if there's internal resistance that person's gone you know and as an organization you need to be thinking about that you know I would be doing a wholesale corporate inventory and asking people give me your opinion on industry 4.0 and IOT and what you're gonna get is blank stares there people are just not gonna be able to answer the question it's it's right and and that's exactly that's a really good way of putting it this is the DNA of your business yeah you wanted to rant you want to be relying on people less for the you you you want right you want to be relying less on people doing the execution and you want to be relying more on people doing the analysis that's right you want the the future jobs in manufacturing facilities that it's going to be maintaining the infrastructure right it's going to be those high-level tech positions where you're adding in new features as we come up with great ideas buildings become a huge deal IIoT infrastructure management's can become a huge deal but the real big growth is going to be in operations and analysis so operations analyst positions are really going to take off okay so anyway this is this is the industry 4.0 application of IIoT you want to know you wanted a rant there you

Channel: 4.0 Solutions

Views: 58,953

Keywords: intellic integration, walker reynolds, intellic, iiot, industry 4.0, digital factory, internet of things, industrial iot, smart manufacturing, industrie 4.0, industry 4.0 explained, smart factory, industrial internet of things, iot applications

Id: 0gd4CcZYo9s

Length: 22min 37sec (1357 seconds)

Published: Wed May 15 2019