1. Smart Manufacturing, Manufacturing Intelligence and Demand-Dynamic Performance
Smart Manufacturing Leadership Coalition (SMLC)
Jim Davis – UCLA; Tom Edgar – UT-Austin; Jim Porter – retired DuPont
John Bernaden – Rockwell; Mike Sarli – retired ExxonMobil
FOCAPO 2012/CPC VIII
January 11, 2012
Building the Science of the Manufacturing Enterprise
Research and CI
CIOs corporate and University research, engineering and manufacturing
Manufacturing Competitiveness
George’s
Iiro and Sebastions

2. Smart Manufacturing Leadership Coalition (SMLC)
It’s a business and technological journey not a technology
What we mean by SM
Why the coalition
What are the priiorities
Where are we

3. SMLC Implementing 21st Century Smart Manufacturing
Air Liquide
Alcoa
Applied Materials
CH2MHill
Cisco
Dow
DuPont
Eli Lilly
Emerson
ExxonMobil
Ford
General Dynamics
General Mills, Inc.
General Motors
Honeywell International
Invensys
Kraft
Merck
Microsoft
Oakridge National Laboratory
Owens-Corning
Procter & Gamble
Pfizer
Praxair
Rockwell Automation
Sematech
Carnegie Mellon University
Purdue
Georgia Tech
RENCI/North Carolina Chapel Hill
UCLA
University of Texas Austin
U. Wisconsin Milwaukee School of Management
 American Council for an Energy Efficient Economy
American Institute of Chemical Engineers
Council on Competitiveness
Institute of Paper Science & Technology – Georgia Tech
Manufacturing Institute
National Center for Manufacturing Sciences
National Council for Advanced Manufacturing
Putman Media
Walt Boyes – Spitzer and Boyes
Jim Porter – President Sustainable Operations Solutions - Chief Engineer and Vice President Engineering and Operations DuPont Company (Retired)
Denise Swink - Consultant 
26 companies, 8 consortia, 6 universities, 1 lab
Oil & Gas, Chemical, Pharma, Food, Automotive, Materials, Paper
Continuous, batch and discrete
Diversity of energy, material and supply chain intensities
Large global SME’s important

4. Advocacy & National Alignment Development & Funding
Smart Manufacturing Leadership Coalition (SMLC): Relevant Timelines
Advocacy & National Alignment
Development & Funding
Office of Science and Technology Policy and Whitehouse interactions ( )
Interactions with DOE, NIST, DARPA, DOD, NSF ( )
Council on Competitiveness ( )
Obama’s AMP Announcement (1/24/11)
Secretary of Commerce and Director of NEC White House of Manufacturing Policy 12/12/11
AMP National Program Office to be in NIST (12/15/11)
NIST workshop on U.S. Competitiveness in CPS 3/13/12
September, 2006: Cyberinfrastructure in Chemical and Biological Systems (NSF)
April, 2008: Workshop and Technology Roadmap (NSF grant)
SM Operations and Technology Report in November 2009 (NSF grant)
September, 2010: Implementing 21st Century Smart Manufacturing Workshop (SMLC-DOE)
June 24, 2011Implementing 21st Century Smart Manufacturing Report (SMLC and DOE)
August 2011 Awarded NSF RCN: Sustainable Manufacturing Advances in Research and Technology (SMART) Coordination Network
October 2011 SM Public-Partnership Proposal at OSTP request
November 2011 SMLC DOE proposal emphasizing energy productivity
January 2012 DOE SBIR SMLC Platform for fossil fuel test bed

5. Global Threshold Changes in Manufacturing
Innovation and customer demand-dynamics will be key to economics
Faster and more product transitions
Operating globally but responding to local markets with resiliency
Vertical organizations will give way to B2B interactions among small, medium and large enterprises
EH & S compliance will increase and risks of non-compliance will increase
Social conscientiousness will be heightened while demands of a growing world population increase
Pressure to manage risk and uncertainty and the need for radical improvements in energy and raw materials productivity will heighten
Energy, environment, sustainability and safety performance will become significant economic and competitive advantages
Customer, performance, energy and sustainability, social expectations
Dynamic demands accelerating on manufacturing

6. Global Threshold Changes in Manufacturing
Existing assets need to become globally competitive while installed based runs its investment life cycle
Capital and operating costs need to lowered
Performance will need to be responsive to multi-faceted objectives
Manufacturing workforce with advanced training and skills will be the key competitive advantage
Job growth will not be with unskilled, high labor oriented manufacturing
Cost, capital, workforce, jobs, competitiveness
Dynamic demands accelerating on manufacturing

7. Advanced Manufacturing
Critical Issues Report Manufacturing Executive Board
President’s Council of Advisors on Science and Technology
The Adaptive Organization
Global Value Chain Optimization
The Innovative Enterprise
Factories of the Future
Next Generation Leadership and Culture
The New Workforce
The Sustainability Imperative
Game-Changing Technologies
Advanced manufacturing refers to a family of activities that (a) depend on the use and coordination of information, automation, computation, software, sensing and networking and (b) make use of cutting edge materials and emerging capabilities enabled by physical and biological sciences.
AM involves both new ways to manufacture existing products and especially the manufacture of new products emerging from new advanced technologies.

8. Raising the Level of Abstraction
If Smart Manufacturing is such a smart idea why aren’t companies already doing it?
Already Investing in Information Technology and Automation for 40 year
Business – uncertainty in markets policy
ROI retrofit, installed base, slow return when not integrated 40 – 60 billion
300,000 SME companies that don’t have access to technology
Raising the Level of Abstraction Work Smarter instead of Work Harder – break out of some Killer Loops – the beer game is strongly at play
Where are the untapped degrees of freedom
How we engage the workforce differently and more productively
What if models could be deployed pervasively including SME

9. What is Smart Manufacturing?
Business (Collaboration, Broader Metrics
Real-time Decisions)
What is Smart Manufacturing?
Organizational
Mindset
Technology
(Horizontal & Vertical
Pervasive)
Workforce
(Innovation &
Broad-Based)

10. 21st Century Smart Manufacturing
Demand-dynamic economics keyed on the intelligence of the ‘customer’
Coordinated enterprise responses throughout the entire manufacturing supply chain
Predictive, preventive
Integrated computational materials engineering
Performance-oriented enterprise,  minimizing energy and material usage and maximizing environmental sustainability, health and safety and economic competitiveness
Data
Dramatically intensified application of manufacturing intelligence using advanced data analytics, modeling and simulation to produce a fundamental transformation to transition/new product-based economics, flexible factories and demand-driven supply chain service enterprises
Apply
Analyze
Minimalist approach – establish an alternative approach – process to build sophistication
What is new performance objective, what is doable and good first step, what is the right model and the right data – generally not highly complex
How do we engage the workforce
Where do we think about the control system layer
Complexity derives not from sophisticated modeling but from interconnectedness of many small information sources that are integrated into broader consideration
Model

11. SMLC Priority: Situational Awareness performance tools across the enterprise to manage dynamic production, use, and storage of essential resources (energy, water, air)
an interconnected world… voice, data, mobile, etc.
Business Systems, ERP
Customer
Supply Chain
Distribution Center
Smart Factory
Modern, smart factories will be interconnected with supply chain, distribution and business systems
Smart Grid
Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

12. SMLC Priority: Production and Demand-Dynamic Supply Chain Efficiency - At Scale Virtual Supply Chain Planning, Computational Materials Engineering and Product Tracking & Traceability Tools
Customers “pushing” demands
Flexible production of smaller volumes of custom products
Less vertically integrated
More information driven and automated
Mining
Farming
Supply Chain
SMLC Priority:
New Productivity/Efficiency Metrics – Change from output/input productivity measures to customization, flexibility, responsiveness, energy performance and reuse
Manufacturing Plant
Distributor
Customer
Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

13. Smart Manufacturing is the Application of a Manufacturing Industry Internet
Merging actionable
business &
Operations
information
New real-time global
performance
metrics
Business Systems, ERP
Tracking &
traceability
Anticipate, plan,
manage risk
across
suppliers
Customer
Supply Chain
Distribution Center
Smart Factory
New forms
equipment
benchmarking
New Degrees of freedom for
Performance, efficiency and productivity
Smart Grid
Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

14. Smart Manufacturing is Analogous to Healthcare IT
Merging actionable
business &
operations
information
Application of Health Care Intelligence
Enterprise Healthcare Record for each Patient
Research & Hospitals
Tracking &
traceability
Anticipate, plan,
manage risk
across
suppliers
Treatment
Facilities
Patient
Pharmacies
Caregiver facilities
New real-time global
performance
metrics
Integrated Intelligence of the Patient
Patient Self-Care
Courtesy of Rockwell Automation : Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

15. How do we proceed?

16. Excellent Work Underway

17. Technology Roadmap Report (2009)
Motivating Smart Process Manufacturing
The Business Case and the Business Transformation
The Technical Transformation
The Smart Process Manufacturing Roadmap
The Path Forward

19. SMLC Program Agenda
Lower the cost for applying advanced data analysis, modeling, and simulation in core manufacturing processes
Build pre-competitive infrastructure including network and information technology, interoperability, and shared business data
Establish an industry-shared, community-source platform and associated software that functions as an “apps” store and clearinghouse
Create and provide broad access to next-generation sensors, including low-cost sensing and sensor fusion technologies
Establish test beds for smart manufacturing concepts and make them available to companies of all sizes

20. Achievable Meaningful Use Goals and Magnitude of Impact
Demand-driven efficient use of resources and supplies in more highly optimized plants and supply
80% reduction in cost of implementing modeling and simulation
25% reduction in safety incidents
25% improvement in energy efficiency
10% improvement in overall operating efficiency
40% reduction in cycle times
40% reduction in water usage
Product safety
Product tracking and traceability throughout the supply
Sustainable production processes for current and future critical industries
10x improvement in time to market in target industries
25% reduction in consumer packaging
Maintain and grow existing U.S. industrial base
Environment for broad innovation
25% revenue in adjacent industries
25% revenue in new products and services
2x current SME’s addressing total market
More highly skilled sustainable jobs created 20

21. Smart Process Manufacturing
Resilient
Proactive Plant
Operations
Smart
Plant
Knowledge-
enabled
Workforce in Global
Operation
Smart Process Manufacturing
4/13/2017

22. Knowledge to Operating Models
Higher granularity
modeling & sensing
Knowledge to Operating Models
The Smart Process
Operation
Process models
self-evaluate performance
Network &
cyber security
Distributed
MPC stability
based-control
Networked
monitoring/detection/control
Business-operation Performance Metrics
Predictive/fault-
tolerant
control
Distributed
intelligence
Self aware
Self healing
Units/systems
Risk & Uncertainty Mgmt
Networked situational
awareness &
management
Sensor networks
exchanging real time
data
Operations
Smart Plant Operations: Visions, Progress and Challenges, AIChE J., Nov 2007

23. Active Management and Innovation
Integrated performance metrics driving bottom up local and global decision making
Involved workforce making decisions that drive performance and objectives and not tasks
Explicit management of risk and uncertainty
Distributed business and operating intelligence through integrated information
Distributed intelligent manufacturing and innovation

24. Let’s raise the level of abstraction Let’s define new, integrated and global performance metrics Let’s define the minimum data, analytics, and modeling, that produces new degrees of operational freedom Let’s establish a process of building and applying Manufacturing Intelligence in increasing levels of sophistication s

25. Top Layer Difficult Problem
Meta 1
Demand-Dynamic Customer Specifications
Top Layer Difficult Problem
Physical Test Bed/ At Scale Factory and Supply Chain Demonstrations of Applied Manufacturing Intelligence
Second Layer Difficult Problem
Real-time Syncing Virtual Models and Physical Operations
Smart Manufacturing Platform
•Physical Test bed
• Virtual/Physical Real Time Sync
• Community Source Model & Simulation Platform
• Manufacturing Enterprise Integration Practices
META 3
Supply Chain & Supplier Network
Meta 2
ERP Performance Metrics: Dynamic Energy, Sustainability, EH&S, & Economic Planning, Management and Optimization
Fourth Layer Difficult Problem
Manufacturing Enterprise Integration Practices
Third Layer Difficult Problem
Precompetitive Factory and Supply Chain Community Source Modeling & Simulation Assimilation Platform
Meta 4
Digital Engineering &
Integrated Computational Materials Engineering

26. SMLC Industry-Driven Processes Energy Performance Metric
Smart Manufacturing Platform
Shared Market Space
SMLC Industry-Driven Processes
Energy Performance Metric
SME’s
Information
Training
Expertise
Access
Outreach Training web / tools materials
Test Bed
Manufacturer
& Supplier
Crosslinking
Engagements
Pre-competitive
& Competitive
Hub
Workflow Toolkit
& App
Development
Processes
Open &
Community Source Resources
Apps Store
Cloud Services
Consultation
Nimbis
UCLA
UCLA
Business Collaborations
Benchmarking
Key Development Resources
Universities
NCMS
AICHE
Consultants
Consortia
Standards and Reference Architecture
IT Provider Partners
Building the SM Platform is non-trivial requiring significant cross-industry collaboration and agreement that builds on acceptable internet and cyber security protocols and practices already in place. The overarching objective is to establish a Shared Market Space that addresses common infrastructure, technology and service components for Test bed, Manufacturer and that are not competitive value adds to the product but do create value in efficiencies, productivity and access to technology, practice and innovation for all when done together. There are four key collaborative outcomes that set the stage for new business and operating models for manufacturing that recognize the interconnected roles of all entities in the manufacturing enterprise. Clockwise in the figure, there is a need for definition and collective agreement on new Key Performance Indicators for energy and economic productivity performance, sustainability, EH&S, etc. to drive dynamic performance management. The ability to collectively address critical information, technology and practice across the supply chain and the supplier network for not only large but also small and medium enterprises (SMEs) is critical. To achieve these goals, there is a need for the IT Providers to address cross industry enterprise integration practices through a Standards based Reference Architecture and for all to come together in the Development of Key Shared Resources for using modeling and simulation applications, addressing real-time syncing of virtual and physical models and developing at scale demonstrations. These developments come together as Workflow Toolkit and Application Development Processes for development, evaluation and implementation to achieve a manufacturing objective, i.e. manage to a new energy performance metric. The function of the SM Hub is to bring community source, market place, pre-competitive and competitive spaces seamlessly together to facilitate a range of collaboration models. The Hub facilitates bringing community source and proprietary software applications together for distribution through an apps store. It also provides secure computational facilities for individual manufacturer use and it can link manufacturers to form physical test bed enterprises where knowledge is managed and exchanged within competitive and intellectual property constraints. It provides a clearinghouse for integration practices and it facilitates the collaboration business models to bring the players appropriately together.
Collaborative Space
Community Source
Market Place
11/1/11

27. Applying the SM Platform
Energy Productivity Management Data & Modeling Workflow
Data and Computation
Management Dashboard
Process sensor data
Manufacturer
Real-time
Manufacturer Data Warehouse
Ref Arch
Data Collection Manufacturer
Ref Arch
Data Collection
Supplier
Local/Global
Energy Productivity Metric
Dash Board
Encrypted links
Data Validation App
Real-time Action & Risk Support
App
SM Platform
Data and Computation
Services
We illustrate the application of the SM Hub Market Place and Apps Store with a simplified example of a manufacturer implementing an active management dashboard. The objective of the dashboard is real-time decision making about energy and product volumes together across multiple units together using a global energy productivity metric. Real-time data is defined, selected, collected at the right time and stored based on an agreed Energy Productivity Metric and using protocols based on the reference architecture. The manufacturer uses the Energy Productivity Metric Toolkit to construct the metric and selects general purpose apps from the Store. The manufacturing is supported with tailoring the metric and general apps for operational dependent requirements. The manufacturer is supported in building some customized scenario-based decision support apps using reduced order modeling methodologies established through the SM Platform. The Workflow toolkit available through the apps store is used to assemble data analytic, productivity metric and modeling apps into an overall workflow and the Dashboard toolkit is used to build the output into the format for situational awareness and decision support. The manufacturer uses the computational capability through the cloud facilities provided through SM Hub to evaluate the viability of the dashboard for operational use.
EPM
App from Toolkit
Reduced Order Model
Scenarios
App
Risk Scenarios
App
Linked Apps to Form Function

28. SM Platform Apps Store, Shared Market Place, Distribution Hub
Buyer Account
Seller Account
Authenticated
Buyer
Internet
Authenticated
Seller
“App Store”
Portal Extensions
Data
Comp
Portal
Baseline Services
Buyer Dashboard
Seller Dashboard
HTTPS/VNC/VPN
HTTPS/VNC/VPN
Portal App
Remote Desktop
UCLA
Community, Open source
IP, Restricted, Marketplace
HTTPS/VNC/VPN
The SM Hub uses workflow and services to seamlessly integrate, (1) research with application functions,(2) precompetitive development collaborations with proprietary and competitive value-added processes (3) virtual and physical integration with synchronization tools and processes, (4) community-source with production software practices (5) research with secure commercial computational environments, (6) open-source distribution, apps store with comprehensive packaged software access. These distribution and access will be transacted through a Shared Marketplace and Apps Store.
In a statement, the SM Platform integrates standards and protocols to work across multiple vendor platforms and to deploy software that is not easily applied across sectors or that is cost prohibitive. It provides the necessary application and software assembly, certification, verification and validation capacity to design, develop, distribute and implement sensor-driven modeling and simulation applications and workflows for a defined management need, e.g. active energy management. The SM Hub provides the center piece construct to address the high cost of software, its customization for individual manufacturing facilities, and the difficulties of on-going support by facilitating industry-driven processes.  The Shared Marketplace and Apps Store is the access point for (1) workflow tools that make it possible to assemble and stage the real-time data supporting application models and metric calculations into coherent active performance management dashboards, (2) workflow compatible applications for validating data, projecting performance, and scenario-based decision risks, (3) rapidly evaluating models and toolkits to determine the “right” rigor of the model and the “right” timeliness of data to meet performance objectives (4) processes to bring new applications and toolkits into the Shared Market place and (4) and cloud facilities for operational needs.
The competitive dimensions of the infrastructure and the SM Platform are needed to manage the production design requirements for manufacturers and large original equipment manufacturers (OEMs). Cyber security is a major requirement that needs to be addressed with state of the art practices that meet user requirements. While the workflow toolkits can become general apps, the workflows themselves remain proprietary to a particular manufacturer. Additionally, there can be ITAR export control, proprietary data requirements on the modeling and simulation results and/or service-level agreements for computer resources that may be needed to guarantee a certain processing capacity, uptime, backup, or auditing requirement. Materials or simulation models might only be available to specific licensed customers, or can be linked for simulation inside some workflow while the source code remains on a protected IP. Authentication, authorization, auditing, reservation, metering, billing all have to be coordinated.
Nimbis Services in collaboration with UCLA will lead the construction of a transaction-based Shared Market Place and Apps Store as a key function of the SM Hub. Nimbis Services, Inc. is a privately held technology corporation, founded in 2008, bringing an innovative technical computing marketplace to the cloud computing industry. Nimbis offers a suite of brokerage and ecommerce web services that connects users with third-party technical computing resources, commercial application software, and domain-specific expertise. The formation of Nimbis Services, Inc. was motivated by a series of national innovation reports, surveys, and case studies performed by the Council on Competitiveness and University of Southern California Information Sciences Institute engaging private sector companies and government agency sponsors (DARPA, DOE, NNSA, and NSF) that highlighted a national productivity opportunity for U.S. manufacturing. Nimbis Services is well positioned to provide a means to transition and host pre-competitive technology, company proprietary technology and open technology into in a technical marketplace for APPS, APPS storage, ISV applications, computing services, domain expertise and regional solution providers. These characteristics of low-risk, low-effort, on-demand, "pay-as-you go" access to computing and related manufacturing services enables small to midsize to large businesses to more easily benefit from the energy workflows and management technology/processes/metrics developed by this project.
Nimbis’ software portal hosting, distribution, and brokerage service concept is based on traditional web marketplace hosting, where the hosting company provides common components for building a storefront (account management, order processing, order tracking, etc.) and then allows the vendors to get on with serving their products to their niche markets. This business model is very successful for products and services companies. Nimbis applies this marketplace approach to application services driven technical computing, modeling and simulation along with manufacturing process analysis. The vendors (sellers) in this case are engineering services companies with application domain expertise and independent software vendors that provide consulting and support services. The customers (buyers) are manufacturing companies with entry-level, experimental, and/or periodic users of digital analysis computing. Nimbis is a broker of services with some of the characteristics of Amazon, Travelocity, and Salesforce.com but targeting the engineering, manufacturing, and product distribution model design and analysis market. This service concept integrates with and accommodates the service structure for community source resources and workflow tools that Nimbis and UCLA will integrate.
Compute Platform
Cycles
Software
Storage

29. New Technology R & D
Economic, business, performance collaboration models
Education and training aimed at science, engineering and operating practices for Smart Manufacturing
Static and real-time modeling architectures redesigned for apps store-like distribution, competitive and pre-competitive management and managed crowdsourcing
Richer lower cost sensing and actuation technologies combined with richer real-time analytics to build manufacturing intelligence
Tools and rapid evaluation procedures for the ‘right’ rigor and right ‘real-time’ for a model
Projection of global and local decision and/or action risk
Making control, optimization and planning indistinct while distributable
Accommodate modern processor architectures
Computer architectures for assured real-time actions with greater levels of active management
Real-time synchronization, verification and validation of enterprise data
Human centered dashboards with new expectations for decision-making

30. Attributes of a Smarter Manufacturing Sector
Old Traditional Factory
New Smart Manufacturing Plant
More jobs: labor-intensive
Lower output and productivity
Lower quality products
Lower paying unskilled jobs
Higher risk working conditions
Higher environmental impact
Higher production costs
Rigid, high-volume production
Longer time-to-market
Socially optimized (Six Sigma)
Less jobs: automation-intensive
Higher output and productivity
Higher quality products
Higher paying skilled jobs
Safer working environment
Less waste, resource use
Lower production costs
More flexible customization
Faster time-to-market
IT-optimized (models, simulation)
Copyright © 2011Rockwell Automation, Inc. All rights reserved.

31. As Factories Get Smarter, More Jobs Surround Them
21st Century Manufacturing Ecosystem
Much Greater 3x to 15x+ Economic Multiplier -
Smart Manufacturing: The Essential Nucleus For SME’s & The Service Economy
Education, Health Care and Government
Smart Factory
Medium-size Manufacturers
Community colleges and Universities, healthy knowledge workers, public- private partnerships
Small Businesses
Services & Support
100% automated Intel Chip FAB – Some engineers and technicians
Components and other suppliers % automated, 50% labor
Innovation and specialties % automated 75% labor
Financial, IT Services, Consulting, etc % labor

32. SMLC Commitment to a Comprehensive Approach
ENTERPRISE OPTIMIZATION & SUSTAINABLE PRODUCTION
Enterprise
Business
System
Higher value products
Improved quality
Zero downtime
Increased equipment life / utilization
Suppliers
ENERGY, SUSTAINABILITY, EH&S
AGILE DEMAND-DRIVEN SUPPLY CHAINS
Improved safety
Reduced energy and emissions
Highly sustainable
Higher product availability
No inventory
Product lifecycle management
Factory
Distribution
Center
Smart Grid
Customer
OEM
Machine
Builders
Courtesy of Rockwell Automation : Copyright © 2010 Rockwell Automation, Inc. All rights reserved. 32

33. Smart Manufacturing http://smart-process-manufacturing.ucla.edu/