The impact of Machine to Machine (M2M) Technology · The impact of Machine to Machine (M2M)...
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The impact of Machine to Machine (M2M) Technology By Spencer Cramer Ei3 corporation Angelo Colombo Galileo Vacuum Systems
Transcript of The impact of Machine to Machine (M2M) Technology · The impact of Machine to Machine (M2M)...
The impact of Machine to Machine (M2M) Technology
By Spencer Cramer
Ei3 corporation
Angelo ColomboGalileo Vacuum Systems
Circle of Value
Your Machine
Your Plant Decision makers
Your service partners
Your Businesssystems
The Big Picture
• Increased specialization of the workforceGlobalization
• Changes in the organization of productionOutsourcing
• Large investments in production machineryCompetitive market forces
• Solution: remote service
M2M Forecasted Growth
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50
100
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300
2002 2003 2004 2005 2006 2007 2008 2009 2010
Rev
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(Bill
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50
100
150
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2002 2003 2004 2005 2006 2007 2008 2009 2010
Rev
enue
(Bill
ions
)
Value-AddApps &Services
OngoingMonitoring& Services
Monitoring(1st Yr)
Source: Harbor Research Pervasive Internet Report, July 2003
• $700B by 2010
Applications - Monitoring
• Six SigmaProduction ReportingDowntime TrackingQuality Measurement
On-Line, real time OEE
Applications – Support Services
• Creating new business relationshipsInvolvement of trusted partners (OEMs)“e-lance” services
Critical Considerations
• Network Security• Reliability• Safety
Networked Capability
Internet
Data Center
Service Desk teamof front line support
machine interface
Internet
OEM Specialisttechnicians work on thesystem frm anywhere in theworld
Internet
Manufacturing Sites
M2M Solution Provider
Enterprise decisionmakers
Engineering ServiceProviders
Trouble Ticketing
• Email• Record• Future
view
Work Log & Solution
• Solutions• Re-use• Faster
resolution
Argo Log-In
• Security• User Management• Flexible
Technical Visibility
• Control programs
• No special training
Solution Library
Production Reporting
Machine SpeedOEE ComponentsDowntime SummaryBatch informationRoll informationDrill Down
Downtime Tracking
User Configured codesParedo ChartsDrill DownFocus energy on improvements
Manufacturer Success
• ReportsDaily use
• OEECapacity Management
Return On Investment
• Costs:Downtime
• Single Machine Cost• Hourly Overhead per
Machine• Machine breakdowns• Lost Revenue per Hour
Yield, materialsLabor
• Engineering Pay per Hour• Personnel Cost per Hour• Outsourced
Expenses• Travel
• Savings Realized by:Downtime root cause analysis & remedyProcess Optimization, DOE, Operator TrainingEnterprise Capacity Rationalization (ECR)Complaint Analysis, COA DataManagement, better production reportingCalculate & track ROI ImprovementsReduce Changeover TimeAccessibilityDisaster RecoveryVersion Control / Program Coordination
ROI is typically 45-60 days for most solutions
Lower Total Cost of Ownership
• Traditional reporting • M2M reportingFinancial CostPackaged Software/Development $75,000.00Engineering Implementation Cost $140,000.00Hardware Server $10,000.00Support Fee per Year (x3) $30,000.00Annual On-going Administration (x3) $30,000.00
3 YEAR SERVICE TOTAL $285,000.00
TOTAL FOR 3 YEARS SERVICE* $285,000.00
• Traditional ServiceOn-Site labor ratesExpensesTravel timeEmployee wages
Financial CostStart-up Fee $5,000.00Annual Network Administration $6,000.00Annual Data Collection Fee $15,000.00Annual Recipe Management Fee $6,000.00Annual Downtime Tracking Fee $12,600.00
ANNUAL SERVICE TOTAL $44,600.00
TOTAL FOR 3 YEAR SERVICE* $133,800.00
• M2M ServiceAt home labor ratesFlexible
Conclusions
M2M is available within our industry todayHas a favorable ROIPresents Lower TCO
Galileo Vacuum Systems is an early adopterManufacturers using GVS equipment benefit
Widespread adoptionWill continue to grow, short term CAGR 100%+
Thank-You
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