How to Start Your Journey to Data-Driven Manufacturing Welcome!

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5 Steps to the Successful Realization of Smart Manufacturing

Step 4: Analyze - KPIs | June 26th, 2020

Introduction of the Webinar SeriesJay Foran – Senior VP of Industry & Innovation at Team NEO

• Overview of Smart Manufacturing Cluster

• Overview of webinar series;o Each webinar builds on the first one;

o Each webinar includes content from and is presented by a partnering pair of Manufacturer and Solution Provider;

o The progressive webinars are presented at the end of each week for starting on June 5;

o Emphasis will be on the operational excellence, improved efficiency and profitability of SME Manufacturers;

o Concepts that help the SME Manufacturer address the influences of Covid-19 will be highlighted at each step of the Journey.

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“Analyze” Webinar OverviewRick Earles – Senior Director of Industry & Innovation at Team NEO

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Evaluate metrics and determine key performance indicators (KPIs) that require optimization

o Analyzing the Collected Operational Data that Supports the Improved Business Performance Applications;

o Automating Lean Manufacturing Process – (implement real time continuous improvement);

o Harvesting Value from New Relationships Discovered between Collected Data Streams;

o Analyzing operational activity for compliance with COVID-19 related policies.

“Analyze” Webinar Overview

Analyze

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• Introductions• John Brinegar: Director of Solution Architecture, Manufacturing Practice at Hitachi Vantara.

Hitachi Vantara brings together a comprehensive portfolio of edge-to-core-to-cloud infrastructure, AI and analytics, and industrial expertise to guide you from what’s now to what’s next. Fuel unprecedented business outcomes with our unmatched digital and industrial capabilities, and 110 years of industrial expertise.

• Vijay Kamineni: Business Transformation Leader at Logan Aluminum.Logan Aluminum is a leading Manufacturer of flat rolled aluminum sheet, supplying can sheet for approx. 45% of North America’s beverage cans.

• Manufacturers’ Use Case and “Analyze” building block for Data Driven Manufacturing Journey

• Question and Answers

“Analyze” Webinar Overview

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Vijay KamineniLogan AluminumBusiness Transformation Leader at Logan Aluminum

• Joined in 2009, Vijay leads organization-wide transformation activities through process innovation and digital initiatives, including Smart Industry/I4.0 initiative at Logan

• As a Software Development Champion and Development Team Leader, Vijay previously led continuous improvement programs at Logan leveraging his lean six sigma, agile project management and advanced analytics skills

• A member of Kentucky Team in MIT Regional Entrepreneurship Acceleration Program

• Holds a Mechanical Engineering degree from Birla Institute of Technology and Sciences, Pilani and is currently pursuing his MBA in Strategic Management at Temple University’s Fox Business School.

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3. Analysis - Best Practices

1. About the company & facility

2. Problem or Challenge description

4. Benefits & Performance Metrics

5. Lessons learned

Agenda

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Logan Aluminum

• Established in 1985, Logan Aluminum is the largest single can sheet facility in North America, and supply over 47% of the North American can market

• Lowest cost can manufacturer in the world

• Producing over 2.4 billion pounds of aluminium annually

• Manufacturing aluminium sheet products in the operational areas of:

- ingot casting

- hot rolling

- cold rolling

- finishing

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Transformative Vision

“Sustainable Quality andEnvironmental Stewardship”

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Opportunities

• Lack of real time visualization across plant manufacturing groups

• Silos of data (less than 5% of the data used for analytics)

• Safety concerns / challenges

• Lack of predictive analytics hindering insight into outages or issues

• Manual scheduling process that was constantly adjusted to meet production goals

• Un-digitized shipment areas

• Identifying the right use cases (too many use cases to prioritize)

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The Intelligent Manufacturing Transformation Journey

LEVEL 1Data Integration and Analytics

LEVEL 2

Advanced Analytics and Enterprise Integration

LEVEL 3

Predictive and Prescriptive Capability

LEVEL 4

Customer Inclusive and Symbiotic

Single-pane-of-glassoperational view

Blend data to detect unseen equipment and line problems

Preventive to condition-based maintenance

Optimize processes, equipment and people

Full life cycle production insights

Minimize losses by predicting quality problems

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Use Case Prioritization and Roadmap - Preparation

LOW HIGHIMPLEMENTATION FEASIBILITY

BU

SIN

ESS

VALU

E

TARGETED BUSINESS INITIATIVE

Sweet Spot!

HIGH

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Logan Aluminum Transformation Phases: Timeline

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Phase 1: Connect & Visualize

Phase 2: Analyze & Predict

Phase 3: Prescriptive & Transformational

Infrastructure Upgrades

• Connect & Visualize all Logan Plant DataSources

• Unify data sources across plant

• Develop analytic dashboards and predictive machine learning algorithms for use cases across Logan Aluminum plant

• Introduce LiDAR and Video analytics to address safety use cases• Predictive maintenance and predictive quality use cases.

• Develop prescriptive deep-learning & AI algorithms for use casesrequiring closed-loop automation

• Industrial Network• Backup & File Services Modernization• Data Lake

Digital Transformation Workshop

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Solution and Technology (Non-representative Schematic)

Data Flow Automation

Edge

PLC’s, OPC’s, RTU’s

AcousticVibration

HVA LiDAR

Message Broker

Data Streaming Platform

Lumada Manufacturing InsightsBackend Server

Analytics Database

Analytics Engine

Database Management

Lumada Manufacturing InsightsFrontend Server

Data Visualization

Data Analytics

Framework

ERP

MES

Quality Control CMM

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• Convergence of IT, OT, Business and Accelerate Digital Kaizen

• Reduced the number of calls and emails from trucking companies by 50 to 60% with the significant savings

• 35,000 data points/ tags being collected for each of the coils are integrated with the business data in the cloud

• They are accessible to the analysts, process engineers, management and owners near real-time to help CI or troubleshooting

Benefits or Performance Metrics

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• The importance of DT workshop that helped solve the challenge of defining and prioritizing the right use cases

• Focus on long-term roadmap, repeat small iterations and celebrate quick wins

• You need a strategic partnership approach and a coach, not a vendor

Lessons Learned

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• Remote work and social distancing at work sites and conference rooms.

• Thermal screening terminals at entry points and other key areas in the plant

• Deep cleaning, hands free & emergency response procedures.

• Digital employee engagement and wellness focus.

COVID-19 Response

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John BrinegarHitachi VantaraDirector of Solution Architecture, Manufacturing Practice

• John has extensive background deploying analytics systems into a variety of manufacturing sub-verticals, including electronics, pharma/biotech, metals, automotive, and others

• In his current role at Hitachi Vantara, he also led the architecture, development, launch, and delivery of Lumada Manufacturing Insights, a framework for IIOT integration, analytics, and visualization in discreet and process manufacturing markets

• Prior to Hitachi, John worked in manufacturing and other IoT analytics verticals including deploying systems into telecommunications networks and healthcare providers

• He has a degree in Electrical Engineering and Computer Science from the University of Colorado, Boulder

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The Global Lighthouse NetworkHitachi in Industrial Innovation

Hitachi’s Omika Works Recognized as

an “Advanced 4th

Industrial Revolution Lighthouse” by the World Economic

Forum

8th largest technology company in the world

24th largest manufacturing company in the world

+140,000 manufacturing employees

+200 manufacturing facilities

+20 countries with manufacturing facilities

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Smart Manufacturing Transformation Roadmap

• Review business processes

• What makes you successful:Managing to your Key Performance Indicators

• Align & prioritize your top use cases

• Provide documented observations and recommendations

– A Smart Manufacturing Roadmap

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Roadmap for Digital Industrial TransformationAlign Business Value With Use Cases

Vision-to-ValueBusiness Objective

1 2 3

Business metricsPotential impact

Industrial IoT maturity

Processes & Capabilities

Outside-in analysis

Focused interviews

Shop-floor observations / IIoTassessment

Practices assessment/ Benchmarking

Fact-based analysis

Prioritize Value Develop Business Case to Facilitate Decision Making

Assessment helps identify relevant opportunities

Investment v/s. Benefits

Investment1 v/s Benefit2 (annualized)

1 Hardware listed separate under scope of Raychem procurement – not depicted in above Investment numbers. Cluster 1 hardware cost = INR 32 Lakhs of which INR 6 Lakhs is an investment from Hitachi2 Does not consider feasible throughput impact – taken @ Running cost saving – if we have additional demand then wherever we are releasing capacity impact would be ~23 times* Confidence % is subject to installation of recommended hardware, support from local operations and QA team and approval from stakeholders

Projects in Phase 1 (Excluding hardware investment)

• Base layer of SMP and System Integration – crucial to embark on overall Digital Transformation and adopt thematic aspects for achieving operational excellence

• Implementation of Cluster 2 dependent on Cluster 1 - MoM

139.662.477.2 176.6

69.6 107.1

BenefitsBenefits Benefits Investment

10.6

Investment

117.724.8

94.3

Investment

35.4212.0

Confidence of 75%* Confidence of

95%*

Confidence of 75% (Stretch) is subject to deploying:

Real-time module temperature monitoring

Surface inspection system

Sprue brush main runner and deep runner cut operations and condition monitoring

Air trap detection mechanism

Short fill detection mechanism

Governance on incoming OSP / vendor material

Dimension scanners on all cells

INR

Lakh

s

Cluster 1 Cluster 2 Total

Smart Manufacturing Platform (SMP) & System Integration Will be leveraged for all future

initiatives

Subject to implementation of all recommendations and HW installation

Cluster 2

5 Energy Management

8 Cycle time optimization (CTO)

6 Predictive Maintenance incl. DSMED

Cluster 1

1

2

4

Advanced Process Control

Manufacturing Ops. Mgmt.

Material traceability

7 Overtime reduction

Predictive maintenance

Advanced process control

Dynamic scheduling

Real-time supply chain optimization

Energy management

Predictive quality

Factory Safety

Hitachi digital operations solution cores

Connected Operations

Accelerated Run-Transform Cycle

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Accelerating Digital Industrial Transformation

• Combining “know-what” and “know-how” to accelerate vision-to-value

• Combining use cases across the run-transform cycle

• Multiyear roadmap of use cases to drive sustained value

• Focus on outcomes that matter

ORCHESTRATING

Humans + Machines + Data

Faster Time-to-Value

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Core KPIs That Matter Accelerating Your Intelligent Manufacturing Journey

Speed of Work l Net Operating Hours lOverall Equipment

Effectiveness (OEE%) Productivity

Cost

Processingcost / unit

Safety and security

Delivery

On Time In Full (OTIF) %

Morale

Engagement levels

Quality

Lost Time Injury Frequency Rate (LTIFR) l Fatalities

Cost of Quality (COQ) l First time right (FTR)

Digital Operations can help you realize value and impact business objectives (SQPCDM1)

1 Safety, Quality, Productivity, Cost, Delivery and Morale

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Focus on Digital OperationsReturn on Investment (Averages)

Optimization Quality Improvements Machine Availability Safety

10-60%

10-50%

15-90%

10-80%

Increase overall Throughput by

Reduce Scrap / Rework

Reduce Machine Outages

Reduce Accidents and Near Misses

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Building Trust and Safety Responding to COVID-19 Challenges

Detection and containment workflow for the first layer of mitigation, with non-invasive or labor-intensive methods that respect privacy

Thermal cameras detect high temperatures in crowds without invasiveness of IR gun to forehead, and allowing of faster throughput and freedom of movement

Automated alerts for temperatures above a preset threshold push to Hitachi Visualization Suite, showing location of detection and real time view, and event is recorded for later analysis

Digital incident footage, PDFs, audio, etc. is stored and managed in HVS Archive, with chain of custody and incident details stored in independent folders

3D LiDAR or video analytics provide foot traffic information for statistical analysis, while respecting privacy

Elevated Temperature Detection3D LiDAR and Thermal cameras

Alerts and AnalysisHitachi Visualization Suite

Secondary Testing and Incident Management ArchiveDigital incident footage

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Hitachi COVID-19 Digital Enablement Approach Overview

Hitachi COVID-19 Digital Enablement Solution

Worker Safety Worksite Safety Remote Monitoring Facility Management Assess Control

Existing Camera System

LidarCameras

ComplianceEvents

Crowd Detection Events

Public Data On Covid-19

Incident Management

System

Risk Scoring Framework

CXODashboard

3 Weeks 4-8 Weeks 8-12 Weeks Ongoing

1. ASSESS 2. OPERATIONALIZE 3. OPTIMIZE

Dashboard, Reporting

Alerts, Notifications

Workflow

Enterrprise Integrations

Cameras, Thermal Scans Automation

Robotics3D Lidar

Risk AssessmentConsulting

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Questions & Answers

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In Closing…

• Recommended Reading• https://www.hitachivantara.com/en-us/company/customer-stories/logan-aluminum-case-

study.html

• Recommended Viewing• https://www.youtube.com/watch?v=39x9cggYeAE&feature=youtu.be…

• Recommended Resources• https://events.pentaho.com/ScalingDigital-Manufacturing-In-FY20-Q1-Global-GC-

ManufacturingInsightsSolutionProfile_01-GatedAsset.html…

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State of the Manufacturing Industry - Scaling Digital Industrial Transformation

Live Webinar

Why a digital-first agenda is paramount?

Chad MoutrayChief Economist, National Association of Manufacturers

Date: August 25, 2020Time: 11:00 a.m. EDT (GMT -4, New York)

Sid VermaGeneral ManagerManufacturing PracticeHitachi Vantara

Sath RaoDirectorDigital Solutions for ManufacturingIndustry Solutions MarketingHitachi Vantara

Vijay KamineniBusiness Transformation LeaderLogan Aluminum

Register at: https://www.industryweek.com/webinars/webinar/21134991/state-of-the-manufacturing-industry-scaling-digital-industrial-transformation

In Closing…

• You will receive an email within 24 hours with a link to view the webinar recording,

presentation materials and additional resources.

• Please join us for Part 5 of the series:

“Optimize – For Improvement” featuring Vizion360 and Libra Industries

Thursday, July 2nd from 9:00 am – 9:45 am

Register now at smartmanufacturingcluster.org/events

• On behalf of the Smart Manufacturing Cluster and our presenters, thank you for joining

us today!

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Team NEORick EarlesSenior Director, Industry & Innovation

216.363.6888

rearles@teamneo.org

Logan Aluminum Vijay KamineniBusiness Transformation Leader

770.378.6670

Vijay.Kamineni@logan-aluminum.com

Hitachi VantaraJohn BrinegarDirector, Solution Architecture

303.332.2159

john.brinegar@hitachivantara.com

Contact Information