Rockwell Automation s Business Intelligence Solutions for Manufacturers

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1 ARC VIEW DECEMBER 3, 2009 Rockwell Automation s Business Intelligence Solutions for Manufacturers By Craig Resnick Summary Rockwell Automation recently briefed ARC regarding its latest business intelligence solutions for manufacturers based on the company s Factory- Talk integrated production and performance suite. Many of these solutions originated with the April 2008 acquisition of Incuity Software, a privately held company offering a range of enterprise manufacturing intelligence (EMI) software. Incuity Software Incuity Software focuses on providing real-time intelligence for business decision support to focuses on providing real-time intelligence for business improve operations and reduce decision support to improve operations and reduce production waste by providing production waste by providing manufacturers with manufacturers with management management insight into their operations. The Incuity insight into their operations. Software acquisition brings more than 45,000 seats of software installed in more than 40 countries in 13 languages. Incuity Software is fully integrated into Rockwell Automation s Architecture & Software operating segment. Acquisition Results in Rockwell Automation s Introduction of FactoryTalk VantagePoint Many manufacturers today face the need to reconcile thousands of point solutions from hundreds of different vendors, with interfaces everywhere, and no clear upgrade path. Perhaps even more significantly, this vast array of disjointed data still does not provide decision-makers with a single version of the truth. Many manufacturing environments remain largely heterogeneous regarding control, HMI/SCADA, and historians. ARC s research indicates that manufacturers with over $1 billion in annual sales often have to support as many as 500 different software applications at a time. Rockwell Automation cited many of these issues faced by their customers as the motivation for it to pursue EMI software to add to the company s FactoryTalk portfolio. THOUGHT LEADERS FOR MANUFACTURING, ENERGY, & SUPPLY CHAIN

2 ARC View, Page 2 As a result of the Incuity Software acquisition, Rockwell Automation has introduced FactoryTalk VantagePoint, a web-based visualization, analysis, and reporting portal that allows manufacturers to self-configure web-based dashboards, trends, and reports without requiring support resources. FactoryTalk VantagePoint software leverages the FactoryTalk service-oriented architecture and other technology acquired through Incuity Software to deliver automatic access to production information originating from both Rockwell Automation and third-party systems. FactoryTalk s VantagePoint Functionality Differentiators FactoryTalk VantagePoint brings a different perspective to visualization, analysis, reporting, and portal functionalities. Visualization capabilities differ from those typically found in HMIs, as VantagePoint s primary function is to provide a tool to deliver manufacturing information derived from all data sources both within and external to an enterprise, rather than just focusing on providing Providing access to information ondemand in an easier-to-use format manufacturing floor data. improves decision support in VantagePoint s analysis functionalities go beyond inventory, maintenance, production, statistical process control (SPC) and reporting services, with object-based calculation and analysis engines quality, enterprise and supply-chain planning, and other aspects of the manufacturing environment. that display data in a meaningful context, in addition to providing typical trends and plots. Reporting functionality goes beyond just multi-page printouts by leveraging Microsoft Office tools, using an add-in to EXCEL to format and generate web-delivered reports. Portals also extend past typical functionality, incorporating a portal designed to work with or without Microsoft SharePoint to organize and deliver specific manufacturing reports, charts, dashboards, and KPIs. Through the use of familiar internet browsers, Microsoft Office user interfaces, and pre-defined connectors to third-party systems, FactoryTalk VantagePoint users can install and configure their systems in a shorter period of time with minimal technical support. Providing immediate access to actionable information allows employees at all levels of a production facility to monitor and manage productivity, and exercise more control over

3 ARC View, Page 3 Customer Applications Using VantagePoint EMI Waste Reduction Cycle Time Reduction Quality Improvement State Tracking Production Optimization Energy Management Data Aggregation Production Reporting Cross-plant Optimization Rolling up into SAP SAP Data to Production Floor Vendor Managed Inventory Electronic Batch Record Energy Saving Web-based HMI Behavior Prediction Make-to-Order Condition Based Maintenance Inter-disciplinary Collaboration Improved Production Agility FDA Compliance EPA Compliance Six Sigma Reject Reduction Downtime Monitoring Lost Opportunity Prevention Batch Quality Reporting Operational Equipment Effectiveness Compliance Reporting Production Efficiency Optimization Real-time Yield Analysis Water and Waste Water Management Plan vs. Actual Reconciliation Capacity Analysis and Forecasting True Capable to Promise Load Analysis and Problem Resolution Dynamic KPIs and Dashboards Multi-site Performance Reviews Power Co-generation Planning & Execution Material Balance Tracking & Analysis high-profile operations such as energy efficiency or global supply-chain execution. Providing access to information on-demand in an easier-to-use format improves decision support in inventory, maintenance, production, quality, enterprise and supply-chain planning, and other aspects of the manufacturing environment. Rockwell Automation will offer the FactoryTalk VantagePoint application in multiple versions, allowing manufacturers to select the most appropriate featureset for their needs. The first version, FactoryTalk VantagePoint, combines data produced by the Rockwell Automation Integrated Architecture with other thirdparty production systems in an out-of-the-box solution. It includes standard, pre-configured reports for managing devices, equipment, alarms, events, and control loops, as well as batch or production run and shift reports. The application also includes trending and dashboard capabilities to support analysis and uses Microsoft Excel for report generation. FactoryTalk s VantagePoint EMI Differentiators The Incuity Software acquisition also led to Rockwell Automation s introduction of FactoryTalk Vantage- Point EMI. This provides an EMI server capable of achieving tight connectivity to Rockwell Automation s FactoryTalk Live Data and FactoryTalk Historian, as well as connectivity to third-party control systems and historians by leveraging OPC DA and OPC HDA. Connectivity to business systems data includes SQL, ORACLE, and SAP. Capabilities include global aggregations, concurrent and named users, and unlimited manual and calculation tags. Typical VantagePoint EMI applications include decision support, analytics and reporting, aggregation and contextualization, data mining, dash boarding,

4 ARC View, Page 4 predictive and advisory capabilities, performance management visibility, role-based access, and integration with IT web applications. Examples of VantagePoint Applications Rockwell Automation presented numerous FactoryTalk VantagePoint success stories. For example, a chemical industry plant needed to replace a legacy portal for trend monitoring and also improve its overall equipment effectiveness (OEE). The solution included using FactoryTalk VantagePoint s out-of-thebox portal replacement functionality, adding tools for enhanced analysis and trending, and providing a foundation for a new OEE standard. This solution improved plant-wide throughput, enhanced Using FactoryTalk VantagePoint, the product quality, and provided new batch end reporting capabilities plus the ability to share data with customer increased performance through better insight into how they their other plants. were performing, how long processes took, and how fast they could make Another plant needed to perform better analysis of their products. As a result, the customer reduced production cycle over one thousand process data points from its DCS times by 30 percent. and wanted to share critical process data over the company s intranet. The solution included implementing FactoryTalk VantagePoint to provide enhanced trending and analysis of process data, now viewable from corporate headquarters as well as the plant floor. The solution also added automated DCS batch reporting and analysis, providing management with the ability to track and compare shift operations to increase production with more consistent product quality. Using FactoryTalk VantagePoint, the customer increased performance through better insight into how they were performing, how long processes took, and how fast they could make their products. As a result, the customer reduced production cycle times by 30 percent. A success story in the water & wastewater industry includes a major city that wanted to link SCADA, LIMS, and asset and finance systems to better analyze and optimize processing, as well as solve environmental problems with storm runoff. The solutions included using FactoryTalk VantagePoint for data integration to enable more efficient operations, provide cost overlays on technology issues for better decisions, and enable all departments to view data. Results include reducing operating costs, solving the storm overflow issue, and expanding the system to other city departments. The

5 ARC View, Page 5 city was able to take business intelligence to the next level because their departmental staffs could recognize opportunities earlier, react swifter, more easily communicate the issues involved, and make better decisions. An energy industry success story involved a customer that needed to aggregate data from over 35 different databases; close the analysis loops in its R&D, production, field tests, and ERP departments; and facilitate gathering and sharing of data globally via the Internet. The solutions included making FactoryTalk VantagePoint the sole source for handling all data, which included over 50 billion transactions per day. This As the customer added enterprise provided better analysis and product genealogy to data to its manufacturing shorten time to market for new hydrogen fuel cell developments. Results included cutting time to market intelligence mix, FactoryTalk VantagePoint emerged as the place by 30 percent, and having all data accessible to anyone, to find data for the entire company. anywhere within the company. Another energy industry customer needed insight into its gas plants and pipelines, as well as the ability to prevent gas compressor failures and downtime. The FactoryTalk VantagePoint solutions enabled all compressor data to be accessible from a single point and provided analytical tools to display compressor states and runtimes. As a result, the customer saved up to $10 million per year by preventing pipeline compressor failures. As the customer added enterprise data to its manufacturing intelligence mix, FactoryTalk VantagePoint emerged as the place to find data for the entire company. In the food processing industry, a customer needed to increase snack food output to meet consumer demand. The goal was to reduce downtime on existing lines and increase product output without adding new lines. FactoryTalk VantagePoint combined data from control systems, historians, manual data entry, asset management and lab systems, analyzed downtime, and rolled out multi-plant solutions, resulting in the customer meeting its increased sales levels, which were growing at 8 percent per year. A consumer packaged goods customer needed to increase its production to meet consumer demand, wanting to increase line efficiency and profitability. They used FactoryTalk VantagePoint to link PLCs, process historians, MES, and ERP systems, and are now able to see data by line number, shift and product being made. This resulted in savings from enhanced produc-

6 ARC View, Page 6 tion planning, reduced machine downtime, and optimized raw material inventories. In the metals & mining industry, a steel company needed to increase its plant output with existing facilities, better aggregate information, and provide better analysis tools and higher-level information to both the plant floor and management. The customer used Factory- In light of the current economic Talk VantagePoint to integrate data from its furnaces, uncertainties, manufacturers, ladles, casters, and LIMS, as well as its new heat processors, and OEMs will only invest sheet system to monitor production batch variables, in automation solutions that provide adequate return on investment (ROI) along with new analysis tools to enable production and return on assets (ROA) to justify optimization. Results include the ability to produce the investments. more steel batches per shift, maintain high product quality, reduce scrap and waste, and decrease energy consumption. FactoryTalk VantagePoint played a key role in the complete integration of all the customer s operations because of the insight it provided to people at all levels of the company. A facilities management success story involved optimizing energy consumption and environmental systems for 50 major buildings on a 285-acre campus, and shape-shifting power consumption to reduce peak grid demand. The customer used FactoryTalk VantagePoint to integrate islands of information from water treatment, HVAC, cogeneration, and weather reports, as well as develop a weather-normalized building model with near real-time data to respond quickly to energy issues. The results included saving $1 million per year in energy costs, and helping to optimize campus facilities. In Summary, Rapid Return-on-Investments Will Increase Demand for Business Intelligence Solutions In light of the current economic uncertainties, manufacturers, processors, and OEMs will only invest in automation solutions that provide adequate return on investment (ROI) and return on assets (ROA) to justify the expenditures. Unfortunately, the fact that energy and most basic materials costs often are fluctuating in price doesn t always enter inter these equations. However, leading manufacturers continue to recognize the importance of investing in automation to remain globally competitive. Business intelligence solutions, such as FactoryTalk VantagePoint and Fac-

7 ARC View, Page 7 torytalk VantagePointEMI, certainly fit the bill as products that offer manufacturers an attractive ROI and ROA. A primary challenge for Rockwell Automation to best leverage the company s Incuity acquired portfolio is to be able to effective convey metric-based success stories, such as those presented in this Insight, to potential customers around the world. Doing so will have a direct affect on the increased deployment of its FactoryTalk VantagePoint and FactoryTalk VantagePoint EMI business intelligence solutions. For further information or to provide feedback on this article, please contact your account manager or the author at cresnick@arcweb.com. ARC Views are published and copyrighted by ARC Advisory Group. The information is proprietary to ARC and no part of it may be reproduced without prior permission from ARC.