Devices & Services Strategy in Manufacturing - Realizing IoT and Case studies

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1 Devices & Services Strategy in Manufacturing - Realizing IoT and Case studies July 15, 2014 Taketoshi Hamaguchi Sr. Group Manager Industry Solutions Microsoft Japan

2 Forces to drive transformation in Manufacturing

3 Connected transforms Manufacturing Key factors for business transformation Production

4 Major Trends in Information Technology Apps Mobile devices: new primary design point for end-user access 85% of CxOs view IT department as key resource for achieving strategic goals mobile #1 tech priority for both IT execs and BDMs: Improve the use of social Businesses must employ a connected strategy across mobile, social, cloud, and information to remain competitive 58% of new IT investments will directly involve business executives in 2013 cloud data 80% of new IT investments will directly involve business executives by 2016 and analytics to improve business decisions and outcomes information Internet of things Smart assets will make processes more efficient, give products new capabilities, and spark novel business models 70% of CIOs will embrace a cloud first strategy in 2016

5 From Systems of Record to Systems of Engagement Mobility Retailer Dealers Customers Suppliers Value Products Monodukuri Partners Users Service Providers Chain Services Cloud Business Process Social Product Planning Engineering Production Sales After Services Procurement Big Data People Products Process Information Shop Floor, Engineering, Suppliers, OEM, Customers, End- Users Products, WIP, Parts, Equipment, Devices, Resources Business Process, Operational Flow, Automation Visualize & Improve people, Products & Process on Value Chain

6 Microsoft Point of Views for IoT The Internet of Things starts with Your Things. Build on the infrastructure you already have. Add more devices to the ones you already own. Get more from the data that already exists. Stop just running your business. Start making it thrive. Start realizing the potential of the Internet of Your Things.

7 Microsoft Point of Views for IoT Start From Existing Things and Infrastructures Launch quickly with Cloud Get new insights by combining data Create new biz value from new insights New Devices, Services and Data Expansion

8 ICT Technologies to realize IoT Data Usage Data Processing (Collection/ Storage/ Analytics) Create Value Expression Giving hints Add more value to data Pre-Processing data and Management Aggregate Data Transform Business models Transform operations of manufacturing machines and systems Transform decision making process and behavior Search/Refine/Classify/Pull-out Creating reports Feedbacks Index & Associate Calculation Statistics Machine Learning Record transactions and files Networks & Interfaces Record raw-data Picking-up and Record data Characteristics or delete Devices Source of Data Devices External Systems Sensor & Devices Origin of Data Human s Brain State & Movement of human and things

9 Windows Embedded Family Windows Embedded 8 Standard Windows Embedded 8.1 Industry Windows Embedded 8.1 Pro Digital Signage Thin-Client MFP POS Devices Medical Devices Kiosk Entertainment ATM Windows Embedded Compact 2013 Windows Embedded 8.1 Handheld Windows Server 2012 R2 for Embedded Systems Microsoft SQL Server 2014 for Embedded Systems FA Devices Small Retail Devices Handheld Appliance Servers Appliance Servers

10 MS Embedded Platform Large Middle.NET Micro Framework Enable to develop control software for small embedded devices as easy as to do for PC apps Able to develop by C# or VB with Visual Studio Able to porting to various H/W & OS Work on small memory size Open Source Farmware Small Micro On Devices.NET Micro Framework Gadgeteer Provided.Net Gadgeteer for easy start-up

11 3:0PM 25%humidity 70preset Azure Intelligent Systems Service Data Ingress Data Processing Data Egress 95 Accepts Commands Selectivity Transmits Data Agent Agent Agent Agent Apply Updates Deliver Content and Commands Intelligent Systems Service Operator Portal Intelligent Systems Service Complex Event Processing Engine Data Storage Device Administration Business Rules Alarm Engine Alerts and Notifications LoB Integration Azure Tables BLOB Azure SQL Database Command and Control Device Grouping Administration Device Registry Third-party/ Custom Portals OData REST WS-* OData REST WS-* OData REST WS-* SDK Microsoftprovided Analytics and Visualization Third-party Analytics and Visualization SDK Device Actions through Agent Capabilities Command and Control

12 Creating maintenance service business model by using machine data Leveraging the cloud, we can cost-effectively keep tabs on our equipment and help customers maximize asset uptime Matt Bryan President, M.G. Bryan Leveraged customer values and realized operational efficiency Fracturing Vehicle s operational loss gave $3-4K revenue per day Maintenance cost was high (Oil Filter need to be replaced every hours and complete engine rebuild is required after 4,000 to 7,000 hours) Need to have service staffs proportional to number of equipment Gathering state data for each part of vehicle into Microsoft Azure Providing salable and secure maintenance services by visibility and analysis of machine state regardless of numbers of vehicles Mobile device can help to watch operational state anywhere Create new business as predictive maintenance services with highly cost effectiveness Being able to capture and analyze machine status over the world, MG Bryan realized to get high OEE, to reduce maintenance parts inventory and cost for service staffs Getting trustworthy to vehicles because of warranty for preservation 12

13 M.G. Bryan Service Stacks Generic Internet Performance analysis clients Vantage Point - cloud PC/Tablet/Phone Receive alerts Visualize and analyze Rockwell cloud platform Core services Application services Presentation services JSON Web service extensions Federated security services Fracking Truck Cloud Gateway JAVA stack Headless client Sierra 3G Wireless GX400 Radio Ruggedized Windows XP MicroLogix 1400

14 Case Study : Connected Car Used SQL Server & StreamInsight for Analysis of location, driving path & charging information

15 Machine Learning Sample: Smart Elevator

16 Case Study Manufacturing Real-Time Visibility & Kaizen by using Machine data Today we can understand reality of production lines thru self-service analysis of machine data. Our workstyle has completely changed. Everybody will try new Kaizen actions aggressively. Self-Analysis with Excel/ SQL Server BI pulls production line s uptime much longer Mr. Katsumi Kouno Manager, Production Dept. Kusatsu Factory Omron Corporation Being unable to make visible throughout whole production process, due to Low occupancy rate in multi-product production with small volume Kaizen depends on experience and feelings of veteran operators Needed to call machine vendors when troubles happened because machine data were used for just checking run/stop time for field operators Set relations and meanings to machine data by using product ID Graphs by Excel/ SQL Server BI, which show relationship between process flows and events Accelerate problem findings and analysis with user friendly tools (Excel (Power Pivot) & Power BI) by field operators themselves Figured out new waste findings and Kaizen points even for veteran 1/6 time spend to find Kaizen points Motivated field operators to use data with showing visible impact for their own Kaizen activities Found to expand much bigger occupancy rate, then expect +20% production volume

17 Sample: Usage of device data

18 Summary: ICT capabilities realizing IoT 5.Business Intteligence 7. Machine Learning 5. Business Intelligence 4. Analytics processing (Big Data) 1. Scale connectivity & data ingestion 5.Business Intteligence 3. Cloud Storage at geo-scale 6. Customer & Service Management 2. Complex Event Processing (CEP) & monitoring rules 6. Customer & Service Management

19 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.