Industry 4.

0 Application
 Business of Every Manufacturer

CRM ERP MES SCADA PLC

New Orders

$$$ Invoice Shipping WMS

Business Workflow
• CRM- Sell the product. As Sales people increase, software required to
manage list of Clients.
• ERP- Plan to produce the Product
• MES + SCADA + PLC - Execute the production of the Products.
• PLC/HMI- Provided by the machine manufacturers.
• SCADA Software collects more data and adds visibility.
• WMS- Appears in ERP- Usage of Sage or quick books to manage all
inventory.
IIoT in Industry 4.0 matters
• ERP has to be seamlessly integrated throughout the operations,
consuming real time information.
• Information in ERP should come from operational technologies i.e.
PLC/HMI, SCADA, MES, WMS, Shipping, Invoice
• Huge expenditure done on upgrade of IT components i.e. CRM and
ERP by top executives.
• Business does not happen in ERP.
Barriers to IIoT
• IT Department ignorance – Does not allow ERP to be connected to
MES, SCADA, PLC
OEE- Overall Equipment Efficiency

OEE

Availability Quality Performance

 CRM ERP MES SCADA PLC

New Orders OEE

Availability Quality Performance

$$$ Invoice Shipping WMS

Biggest Growth - OEE and MES
• OEE is for executives at ERP layer.
• Manufacturers are capturing these numbers to increase efficiency.
• Eg: I get an order of 25 million widgets to be completed in 90 days.
• Inputs Required- Current Schedule and overall capacity.
• Overall Capacity- when machine builder builds machine he mentions
1000 widgets per hr produced out of this machine.
• No one can run on 100% efficiency.
OEE - Overall Capacity
• Availability- What % of time was my machine available to
run while running my production order. Increase Availability
by timely maintenance.
• Quality- What % of parts produced are good. Quality
decreases if raw material is bad, Bad machine, bad tooling,
bad Engineering.
• Performance- What was machine producing relative to what
it should have produced when it was available and when it
was producing good parts. How fast was machine producing.
OEE Increase
• Check Edge i.e. operational technology.
• Are PLC programs optimal.
• Ways to make machines run better and faster.
• Decrease scheduled down time by predicting failures, using
ML algorithm for preventive maintenance.
• Required Operation analyst.
Level 0 Programmable Logic Controller
• PLC - On Premise Automation layer.
• OEMs operate in PLC layer. They write PLC code.
• Entire instrumentation at the plant floor- All equipment , instruments,
routers, switches, PLCs.
• Brain that does the process.
• IIoT network connected to all smart devices to pull information from
devices
• Eg: Facilities at waste water treatment plant- Level 0 consists of pressure
meters, flow sensors taking information and provides to PLC software to
take decisions automatically applying logic controller.
Level 1 - Human Machine interface
• HMI - On Premise Direct Control on the process by the operators on
premise.
• Level 0 and Level 1 – At plant floor operators makes machine run and
do the Job.
Level 2- Supervisory control and data acquisition
• SCADA- Collecting Data, real time analysis, current evaluation of our
processes , and supervisory functions. Supervisor in the plant. Person
responsible in the plant floor. If multiple facilities of production
having distributed control SCADA used for control rooms to handle
notifications, alarms.
• Supervisory control on Premise.
• Supervise which machines are working.
Level 3- Manufacturing execution system
• On Premise/Off Premise
• Connection between business decision makers and plant floor.
• Tied to the business unit. Execution of business. Contains production
and costing information- all about money and profitability.
• Takes work order from ERP and executes that work order.
• Eg. Does production of Widgets on the production line--- Collects
production data--- Run and report data back to ERP system.
Level 4 – Enterprise resource planning
• On premise most important software for business executives and
accounting, all business information.
• Contains all intellectual information, how much you are paying for raw
material, equipment, people, how much it costs for running machines
running per hr.
• Contains all product codes and products produced.
• Mostly Excel spread sheets and Boards
• Estimate Cost
• Real Cost - ERP should be connected to equipment/machines to know how
many hours machine is running, how much electricity is consumed etc.
Level 5 - Cloud- Big data, Machine learning algorithms

• Contains all the information collected from MES, SCADA, ERP into
data lakes in cloud.
• Contains machine learning algorithms to analyse patterns, tell events
by analyzing logs.
• Eg. My bearing lasts 800 strokes when I run product A and 1200
strokes when I product B---- Predictive analytics –How much bearing
will last?
• Cloud and IIoT are the areas of development in Industry Automation.
What is IIoT? How does it matter?
• All 5 layers are seamlessly connected
5 layer Model- Automation Stack

Everything

Enterprise/
Company

BU

Plant

Production Line
Traditional Connection
• Specific Engg. Solutions required to connect Many equipment and PLC on Plant
floor to SCADA and MES.
• PLC connected through OPC servers to SCADA.
• OPC Servers converts hardware communication data from PLC into OPC
protocol so that SCADA software can access the data.
• MES gets data from PLC through SCADA.
• Industries not able to integrate MES, SCADA and PLCs
• MES has all paper reports like routing sheets carried by human operators- Paper
traveler goes from one manufacturing operation to next.
• MES cannot access any equipment or PLC data without people.
• People handling data – increase cost
Challenge- Traditional Connection
• MES – Order processing and Handling raw material.
• Calculates efficiency (OEE).
• Therefore MES should talk to the equipment on Plant
floor
IIoT
• All Equipment, routers, thermostats, phones, cameras etc. publish to
single unified name space- one location- contains all information of
equipment.
• ERP, MES, SCADA subscribe information from UNS
• All equipment connected under one name space and all consumers get
data from name space.
• Manufacturer make devices to show up in UNS whenever plugged in.
• Integrators of technology should understand every layer of entire
stack, specialize in every layer.
Scaling up our pizza business and turning it into a pizza
production
• A leap from a start-up to a production facility
• All the production processes are interlinked and being monitored,
controlled and documented automatically
“Hierarchy level” based on pizza production
Description of “hierarchy level” based on an example of pizza
production
• Field device: sensors, actuators, hardware etc. (Input-output). For example, temperature and humidity
sensor for pizza bread production band.
• Control device: devices controlling the equipment that are attached to (PLC/HMI). For example, device
maintaining optimum temperature of oven based on inputs of field device layer and monitoring the
deviation.
• Station: Supervisory control, monitoring and control of processes as well as event storage layer
(SCADA). For example, coordination of various pizza baking processes (bread baking, tomatoes
crushing etc.) and monitoring all events (No. of bake instances, instances of overheating) for a short
period of time.
• Work Center: Data storage, analysis and documentation layer (MES). For example, work center
showing daily/weekly/monthly review and baking performance in terms of quality (bad bake) and
production efficiency (incline/decline).
• Enterprise: Overall management of core business processes (ERP). For example, overall record of
production vs procurement, order intake vs production, expenses (salaries, electricity bill, machine
maintenance etc.)
Asset Layer
• List of all possible “assets” (hardware, software, applications,
documentation, processes-plans, humans etc.) with regards to the
different hierarchy levels, for complete life cycle and value stream. For
this particular example, we assume the transition from pizza start-up
(manual processes) to advance pizza production (automated processes).
• The “hierarchy level” under “information layer” might contain values
like temperature values, signals etc. under field device, set values for
best pizza bake under control device, number of cycles/pizza baked
and fails events under station, production cycle data (hours, events,
etc.) under work center and so on.
Challenge of Traditional Factory
• Schedule was shared from ERP to through plant floor through paper
and people.
• People make mistakes
• When ERP is not connected to plant floor- Accuracy of schedule is
based on the person who knows what is going on the plant floor.
 What is Digital Factory?
No more paper in Industry 4.0- Digitization of Manufacturing.
People interface with Equipment
Equipment interface equipment
People consume from the software.
Connected Stack- 5 Layer Industry Automation
Real time Matrix- Decision not done by people based on historical data.
Real time SCADA matrix along with schedule matrix of ERP in real time.
Eg. New Sales which just came in, Weather change impact on Shipping
duration, Currency exchange rates.
Big data analytics – predictive maintenance, machine learning,- Use real time
data from plant floor and data from the past stored in the data lakes.
Predict an event on the basis of something we have learnt.
Value of Digital Factory
• Decrease number of Errors because Data taken from source of truth.
• Equipment has all the right information- what are we running, when
are we running, how are we running and what we produce.
• ERP handles scheduling- what should I be running.
• In Digital factory uses IIoT protocol – ERP Schedule depends on the
data that comes from the equipment on the plant floor.
• Schedule depends on the real time without relying on a person making
executive decisions.
Digital Factory
• Personal Digital Transformation- 90%
• Manufacturing Industries Digital Transformation- 10%
• Don’t know HOW? HOW do they do it?
• Industry 4.0 Solution providers- OEM, End Users and Technology
integrators should drive the transformation
Industry 4.0- Digital transformation- IIoT
Pre Internet Post Internet
Communication- Clipboards, Stack Light, Memos, Email, SMS, communicate problem on the plant
Telecom. floor - Andon Boards (Equipment to People),
communicate problem from machine to machine-
digital comments in MES, notify using webpages.
Share information- Conference room meetings, SLACK, Zoom
Execute work order- Go to schedule board Handle schedule- Digital, Real time, prediction
Start a machine- Push button on machine Control room, SCADA, MES
How did you get new raw material- phone calls, No bells
bell notifications,
How decision makers know that plant is running- Real time reporting i.e. OEE
Daily reports
Powerful Software- Excel
How Industry 4.0 + Digital Transformation +
IIoT work together.
You have all Data + Information in the
Unified Name Space
How you monetize Data?
Single Source of Truth for Data
Industry 4.0 + Digital Transformation + IIoT
Industry 4.0 Digital IIoT
Transformation
- Enterprise Level -Plant - Production line/
- Data into - Paper to No Plant floor
information Paper - Historic to
Realtime
access.
Industry 4.0
• 4 th Industry Revolution- Movement in Time.
• Data collected from all networks and Smart devices processed into
information used for decision making by CEO to increase profitability
for my Shareholders.
• Till 3rd Industrial Revolution - Data used was not real time- They
aggregated data at the end of Day/week/month/quarter to take
decision. Did not know financial position in real time.
• Digitally Transformed business provides these values by processing
real time data into information using IIoT protocol.
Industry 4.0
Enterprise Financial Position Real Time
Cost Revenue Gross profit
Plant A Plant B Plant C

OEE OEE OEE

Ontime % Delivery Ontime % Delivery Ontime % Delivery
TEEP TEEP TEEP
GP at Plant A GP at Plant A GP at Plant A
Digital Transformation
PLANT A
Availability Quality Performance

OEE
Area 1 Area 2 Area 3
OEE 1 OEE 2 OEE 3
Where are we late in delivery which could
cause penalty?
What is the revenue and Cost? Which orders
are profitable?

Discover a late delivery or low OEE in a Area1-

Drill down to Area 1 or production line
IIoT - Area/Production Line supervisor will see:
Work Order information in the OEE= A+ Q+P
production line- What is the
quantity, who is the customer,
what is the rate, how much is
produced
Granular information for the Process Data
Operator- Down time events,
performance Charts

Based on the current performance i.e. Real time – where late delivery is
expected, Miss your schedule.
Any new orders that come in supersede