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A new age of industrial production The Internet of Things, Services and People

2 A new age of industrial production A new age of industrial production 3

The industrial Internet and cloud services bring world-class analytics within reach of smaller production facilities.

In the coming decades, the Internet will change the methods and processes of industry – just as it has changed the behavior of con- sumers in recent decades. Nearly a third of the turnover of indus- trial companies in Finland, €39 billion, is generated by products that depend on software.

ABB and our products and solutions – frequency converters, robots, and industrial automation and energy systems – have been improving the processes of our customers for decades. The gains in capacity, productivity and energy use have been dozens of percent. As a result, our customers have improved their competi- tiveness and their production has become more environmentally friendly and energy efficient. The Internet of Things, Services and People is about more than just improving productivity by using intelligent products, sensors and analysis of measurement data.

The industrial Internet is a shift from factory-level solutions to the Internet. In practice, this means connecting people, services and things over the Internet, which opens up entirely new opportuni- ties, including the development of the service business.

Immense industrial opportunities

1712 – Industry 1.0 Thomas Newcome builds the first steam engine.

Industry 4.0 From steam engines to smart factories

1870 – Industry 2.0 Electricity is used for industrial production.

1969 – Industry 3.0 Programmable logic.

So what role will people play in this industrial paradigm shift? Increasing automation has freed people from backbreaking, dangerous and tiresome routine tasks. This trend will continue as people, services, and things become interconnected through the Internet: people’s responsibilities will shift to knowledge work requiring expertise, process control, and decision-making. Next- generation robots, such as the ABB's YuMi, will be able to work side-by-side with people.

The Internet of Things, Services and People still has its challenges, with the main ones being the massive amount of sensor data and the need for data security. All parties will have to cooperate to overcome these challenges. ABB participates actively in the Finn- ish FIMECC research program, which is developing expertise and practices for future industrial service businesses.

The new age of industrial production has arrived.

Marjukka Virkki Country Service Manager ABB Finland

Today – Industry 4.0 Communication between people, services, and things.

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Things Intelligent things and smart data

Industrial things are intelligent machines, devices, and systems that generate copious amounts of measurement data; from the operation of single devices to entire production processes, energy consumption, operating environment and production quality. Measurement data analysis allows functions to be controlled, prepared and automated.

Frequency converters not only adjust motor speeds, but also monitor the

status of the equipment or system that they control.

The EMMA energy management system used on board the Viking Grace

reduces the ship's fuel costs and emissions by about 5 percent.

Remote relay monitoring ABB provides support services for Savon Voima

Verkko Oy and can access their customer infor-

mation system remotely, enabling remote

troubleshooting, guidance and minor expan-

sions and alterations to the MicroSCADA Pro

system and protective relays.

Machine condition monitoring ABB’s machine condition monitoring solution is

based on a PLC and generates time-synchro-

nized and analyzed measurement data, be it

from the equipment of a single production line or

dozens of facilities. This system can be seam-

lessly integrated with any data collection system.

Energy savings in Kalasatama The Fregatti and Fiskari apartment buildings

in Helsinki's Kalasatama district use the lat-

est building services. Residents are provided

with real-time consumption figures for water

and electricity, which can be viewed on mobile

devices as well. An open, standardized data

exchange interface allows flexible demand and

capacity management. By using real-time mea-

surement data, water and energy consumption

can be reduced by up to 15 percent.

Smart mine management The Kiiruna, Malmberget, and Svappavaara

mines of LKAB all rely on ABB’s energy man-

agement system. The system refines useful data

from the information collected from various

information systems. The system gives an over-

view of energy consumption, along with the

related costs and carbon dioxide emissions.

This overview is then used to optimize the pro-

cesses at the mines.

Reliable cobalt production Freeport Cobalt Oy uses the ABB 800xA auto-

mation system to control and monitor every

production line at their plant. The virtualized

automation IT infrastructure provided by ABB

will keep all of the plant's critical production

systems available even if over half of the net-

work, server and disc systems were to

malfunction. The 800xA History data collection

system supports production planning, invoicing,

and external system integration.

For decades, measurement data has been utilized at the factory level to improve productivity and competitiveness and to save energy. Current data is compared to historical data to discern how a process should be run. Analytics provides recommendations, enhancements and warnings to support decision-making. This results in effective, productive, environmentally friendly and cost- effective production.

Automation integrates measurement data ABB's intelligent products and devices – from measuring equipment to frequency converters and motors – are a vital part of industrial processes and electrical systems. The data generated by smart equipment can be collected either directly or by automation systems. The same system can be used to control multiple production facilities. Integrated systems are irreplaceable when information must be delivered to experts who are far away from the facility itself, for example in applications for the oil and gas industry or for offshore wind power plants. Automated systems can pre-emptively detect and analyze faults, check resources and spare parts, and send reports to operation and production planning systems.

ABB information systems are based on the information processing platform developed by ABB in Finland that collects all measurement data in real time. The platform gives simultaneous access to production, monitoring and business processes from a combined real-time view. Examples of systems using the platform include resource planning in the process industry, fleet-wide energy management optimization in the marine industry, and productivity enhancement in mining. The Internet is the next step Advances in mobile technology and cloud services are creating new opportunities for industrial Internet solutions that combine people, services and things. The next big step in industrial evolution will be the availability of measurement data outside a facility, either through cloud services or standardized secure interfaces and remote access. In this concept, everything is connected and information from all over the globe can be combined in new ways. For example, by combining factory- level measurement data with the availability and price data of raw materials and energy, decisions can be made based on remarkably enhanced information. This information can also be used for entirely new purposes, such as creating new, pre-emptive maintenance services.

Centralized fleet control All ten ships in the AIDA Cruises fleet use ABB’s

EMMA energy management system to control

their propulsion power and efficiency, vessel

trim, energy production, air conditioning, the

specific fuel oil consumption of the main diesel

generators, and total fuel consumption. This

information is transmitted to a cloud application

for ship-to-ship comparison and can be

remotely monitored.

Nonstop energy Kotka Energia’s two power plants use ABB’s

condition monitoring system to monitor critical

actuators and ensure uninterrupted energy pro-

duction. The monitoring system collects data

and delivers it to the plant's staff using an

online mobile data solution. The system will

pick up any indication of coming faults and

helps to optimize lubrication and measure the

effectiveness of maintenance and process

changes, among other things.

People

Things Services

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Services A new dimension for services

Traditional repairs of sudden production equipment failures take a heavy toll on valuable production hours. The Internet of Things, Services and People makes pre-emptive diagnostics and maintenance possible.

Improved performance ServicePort™ is a secure remote service deliv-

ery platform for providing local and remote

services. It also enables the use of advanced

diagnostics in ABB's latest equipment and pro-

cesses. By automatically collecting the

customer's KPI data, ServicePort helps its users

make informed decisions. This increases the

availability, quality and productivity of systems,

while reducing production costs.

Predictability increases operational reliability, uniformity, cost- effectiveness and safety, all while making it easier to control remote locations.

Frequency converters in the cloud ABB offers a remote support service for collecting frequency converter data in the cloud. Having this data means that maintenance work can be adjusted according to the actual condition and environmental information of the equipment. Frequency converters no longer need to be serviced according to an annual schedule, but can be serviced based on actual need. This translates into improved reliability and availability in harsh conditions, and reduced maintenance costs for less demanding environments. Internet-based, pre-emptive services require industrial processes to be flexible; compatible and intelligent machines and devices with measurements and analysis. The development of new operating models will require close cooperation with customers.

Industry as a demand-buffering resource in the energy market The changes in the energy market combined with solutions from the industrial Internet are creating opportunities for industry to become a resource for demand management. Great cost savings can be achieved by utilizing fluctuations in energy prices; home and building automation can already achieve these by using energy at times of day when it is more affordable.

People Humans in charge

Automation has already changed the role of people in industry. Work is less physically demanding, as automation and robots have come to replace human effort in strenuous and dangerous tasks, and human responsibility now lies more in expert knowledge work and process control.

People will still play a key role in the new age of industrial production. The Internet can be used to integrate information from machines, services and users and process it into a format that can be easily and automatically utilized. People can then use this information to program and control operations and make decisions to optimize the quality, safety, efficiency and environmental aspects of production.

In the future, the Internet of Things, Services and People will enable innovations in other sectors, such as game design, to be incorporated into the industrial environment. An excellent example of cross-sector incorporation would be the use of "smart glasses" to enhance the efficiency and safety of maintenance work.

Safe human-robot cooperation Major advances in robotics will mean that robots will become colleagues for humans. ABB's YuMi is the first robot in the world capable of safely working alongside humans. YuMi was developed to provide the flexibility and dexterity required in the industrial production of electronics.

Remotely controlled robots The robots at Metsä Board’s Simpele paper-

board mill are monitored using the ABB

Robotics Remote Service. Each robot in the

facility has its own 3G modem. Scheduled

backups are created of programs and parame-

ters currently used by every robot. This allows

abnormalities to be detected remotely and any

necessary maintenance and repair work to

begin before any interruptions occur.

People will still have a key role in the future of industry: it takes a person to control, monitor and make decisions. ABB YuMi® ("You and Me") is the first robot in the world capable of safe cooperation with humans.

Smart monitoring of frequency converters Drivetune, ABB’s smartphone application, can

now be used to remotely adjust frequency con-

verters. Technicians can use their smartphones

as control panels to set and adjust control val-

ues. Equipment maintenance will be faster,

easier and safer, as there is no need to go to

dangerous and difficult areas.

YuMi can take on assembly tasks with two hands. It can both touch and see. The robot has special flexible hands and an innovative sense of touch that

make it a safe colleague for humans.

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Factories of the future Automated from order to delivery

In the smart factories of the future, processes take place in real time, production is flexible, and the entire value chain is automated from order to delivery. Production can be monitored remotely and customer orders and manufacturing handled automatically, even at night. This future has already arrived at ABB’s switch production plant. The plant benefits from improved competitiveness, more reliable deliveries, better quality and happier staff.

There are 22 robots working safely alongside humans at ABB’s Breakers and Switches plant in Vaasa Finland. Two more robots will be added in 2015. The plant is largely automated, and auto- mation is used throughout the order-delivery process chain. The plant has applied automation to functions from material procure- ment to switch assembly and logistics. Automation has increased the reliability of deliveries, competitiveness and profitability, as well as reducing the amount of sick leave.

The vision for 2020 is to have the entire value chain highly auto- mated, from order to delivery. People will not become obsolete: humans will be needed to control and monitor the automation systems and to make decisions. Complex products will also still require manual assembly.

RFID eliminates bottlenecks The switch production plant uses RFID gates to register every shipments both in inbounding and outbounding logistics. As com- ponents arrive, they are unloaded by automatic conveyors and sorted for reception, where they will be picked up by automated guided vehicles (AGVs) and put in storage or a production cell. The use of RFID prevents bottlenecks and human logging errors and enhances the accuracy of the inventory.

Assembly workers can use touchscreens to request more parts, and order is immediately placed in the work queue. AGVs will bring the necessary components to the assembly line and trans- port assembled products away for delivery.

Robot night shift An automated ordering system is used to guide customer orders to production in real time. Even if the order arrives at night, an automatic assembly line will assemble and test switches. In the

morning switches are ready to be packed and shipped . These automatic workers further reduce the lead time for products. Traceability is integrated into the automatic production lines, and each switch is uniquely marked.

Automatic logistics Automated storage controls the assembly line. New orders are generated as stock runs low or big order is received. Storage automation reduces the need to stock finished products. In smart factories, automated production lines pack the products and AGVs transport them from production cells to delivery area. Internal logistics is highly automated. Pallets are weighed, wrapped and strapped automatically. Products pass through RFID gates to make sure that the right items go in the correct truck. This reduces the risk of delivery errors to a minimum.

Rapid response through remote monitoring The status of the switch production plant can be monitored remotely. The production monitoring system works in real time and indicates equipment malfunctions, reports test results with root causes for rejected switches, shows inventory levels and gener- ates statistics from production data. Remote monitoring allows faster response.

Case: ABB production plant, Breakers and Switches

Robots can detect faults without error. They work exactly as

programmed.

Plant benefits from automation • The reliability of deliveries is now 98.3 percent,

up from 94.4 percent.

• The average lead time has improved from ten

days to five.

• Profitability has nearly doubled in four years.

• Production can be adjusted according to

demand.

• The quality of work has improved, and the

number of customer reclamations has halved.

• Sick leaves are down 30 percent.

Increasing automation improves the quality of the entire value chain.

Automation has changed the nature of the work. As less manual assembly is required, the work has become less physically taxing.

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The Internet of Things, Services and People

In the smart factories of the future, people will control the operations and make decisions based on measurement data from the factory's equipment, as well as information regarding the availability of raw materials and the price of energy. This will improve productivity, be more environmentally friendly and reduce costs.

Services People

Things

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