FoodSafe2016 ARC

National Symposium on
Automation & Digital Transformation of

Food & Beverage Industry
26th & 27th February 2016
Automation & Enterprise

Trends -
F&B Industry
ISAB/F&B Symp/20160226/Slide No. 1
Standards G. Ganapathiraman
Certification GM & VP
Education & Training India & SE Asia
Publishing ARC ADVISORY GROUP
Conferences & Exhibits RamanG@arcweb.com
Basics of Modern Industrial Automation
About ARC Advisory Group
 Established in 1986 in Boston, USA

 Global:
 US, Canada, Germany, Belgium, Japan, China, India, Brazil, Argentina,
Singapore
 Activities:
 Focused on Industry and Infrastructure
 Corporate Advisory Services,

ISAB /F&B Symp /20160226 /Slide No. 2
 Market Research Reports, MIRA, STAR & Guides
 Forums,
 Custom Projects
Research Domains
 Analytics and Big Data

 Asset Lifecycle Management
 Energy Management and Sustainability
 Governance and Risk Management
 Industrial Networks and Cyber Security
 Industrial Internet and M2M
 Manufacturing IT and Cloud Computing
 Machine Control and Safety
 Operations Management
 PLM and Virtual Manufacturing
ARC’s Collaborative
 Process Automation and Safety Management Model

 Sensors, Transmitters, and Actuators
 Smart Cities and Infrastructure
 Supply Chain and Logistics
Key Industries Covered
 Aerospace and Defense

 Automotive and Heavy Machinery
 Chemical, Cement, and Glass
 CPG, Food, and Beverage
 Electric Power and Smart Grid
 High-Tech and Discrete
 Infrastructure and Smart Cities
 Life Sciences
 Logistics and Transportation
 Mining and Metals

 Oil and Gas
 Pulp and Paper
 Water and Wastewater
Top Ten Business Challenges
Achieving and Sustaining Exceptional Business

Performance
Increasing Asset Reliability
Reducing Complexity and Customization
Create a Proactive Culture to Capitalize on Emerging

Opportunities
Insulate Businesses from Unprecedented External
Challenges
Unify Business and Manufacturing with a Common Business
Plan
Utilize Automation to Satisfy HSE Requirements

Protect Operations from Cyber Threats
Provide and Sustain a Skilled Workforce
Predicting and Realizing Value from Automation

F&B Industry Overview
 The global food and beverage manufacturing industries produce over US$ 3.5
trillion worth of product.
 Manufacturers operate in highly competitive markets, competing against global,

regional, local and private label manufacturers on the basis of price, quality,
convenience, variety, nutritional value, and distribution.
 Innovative new products and packaging remain vital to meeting changing consumer
and retailer demands, changing demographics, and local and cultural preferences.
 Continued emphasis on product and packaging innovation, adding value to retailers,

and more effective communication through packaging are the keys to maintaining
brand value.
 The food and beverage industries are remarkably diverse with many small to large,
simple to complex manufacturing facilities. To further emphasize the size and
diversity, the top 50 food manufacturers' share of global packaged food retail sales
Basics of
KeyModern Industrial
Questions F&BAutomation
Manufacturers
are Trying to Answer
 How do I address the fluctuating price and availability of commodities?
 How do I reduce my energy and other utility costs and ensure the long term availability of
these resources?
 How do I find and evaluate new technology that will support innovation and speed time-to-
market?
 How do I find and evaluate technology that will improve my manufacturing efficiency and
effectiveness?
 How do I come up with new ideas or equipment that allow multi-tasking and that can reduce
change over time?
 How do I reduce my manufacturing cycle time?
 What are the best metrics to support future manufacturing requirements?
 What are the leading best practices in the food and beverage industries, in manufacturing in
general, and for sustainable manufacturing?
 What is my competition doing?

 How do I support my ever-expanding manufacturing and business automation systems and
networks?
 What are other companies doing to improve the skill sets of their operators and staff?
Major Trends – Global Scenario
 Emerging Markets, Urbanization, Changing Demographics

 BRIC and CIVETS countries identified as emerging markets due to actual and growing purchasing
power
 Urban population growth explosion
 Addressing the needs of each demographic will be the key to future success
 Changing Consumer Purchasing Patterns
 Consumers becoming more value-conscious, health-conscious, and socially conscious
 Manufacturers are responding to rapidly changing consumer purchasing patterns with an even
wider variety of product and packaging innovations
 Packaging Becoming a Key Differentiator
 In response to escalating productivity and efficiency demands from food and beverage
manufacturers, packaging machinery OEMs have begun to embrace global equipment standards
 A growing trend toward integration, automation, and standardization is beginning to take hold in
the packaging machinery manufacturing sectors

 The Walmart Effect
 Mega-size, “power” retailers, at the forefront of recognizing consumer purchasing patterns, are
driving the demand for more sustainable manufacturing practices among their suppliers since they
recognize that these can help them increase their respective market share and lower their
business costs
Major Trends – Global Scenario
 Rising Food Safety Due Diligence and Cost of Quality

 Governments all over the world are intensifying their efforts to improve food safety in
response to an increasing number of food safety problems and rising consumer
concerns.
 Regulatory Requirements and Global Standards

 The requirements for a food safety plan include several elements, each of which
appear to be more comprehensive than current requirements and are likely to drive
investments in new automation and/or IT assets
 Drive Toward More Sustainable Manufacturing

 Sustainable manufacturing and supply chains practices that reduce waste, minimize
the use of valuable and limited resources, and minimize impact on the environment,
as well as taking on more social responsibility
 The Transparent Enterprise in the Information Age

 Manufacturers are being held to unprecedented levels of accountability throughout

their supply chain and manufacturing operations
Drivers
Basics of Modernof Automation
Industrial in the
Automation
F&B Industry
Basics ofInhibitors of Automation
Modern Industrial in
Automation the
F&B Industry
Strategies for Success
 Mergers, Acquisitions, Joint Ventures, Divestitures Splits, and Outsourcing
 Two of the most common reasons for acquiring a company are to strengthen a product line or
gain a distribution channel
 Three important trends include a new focus on vertical integration, manufacturers in emerging
economies acquiring companies in developed economies, and bigger are no longer
necessarily better
 Expansion of Distribution Channels and Markets
 There is a growing number and type of retail outlets. Consumers are less and less restricted
to shopping at supermarkets and power retailer big box stores, which can be miles away.
 Portfolio Rationalization and Optimization
 PLM
 P&G’s Swiffer, Tata Motors’ Nano, Nestlé’s yogurt manufacturing project in India are all
excellent examples of innovative thinking. Each company determined what the consumer
needed, but didn’t have, developed a product, and created a whole new market.
 Productivity, Cost Containment, and Customer Satisfaction

 CPM/MES, EAM, RPO, Energy saving hardware products, Process Engineering Tools
 According to several ARC surveys, the primary drivers for deploying CPM software are to
help improve plant performance, ensure product quality, and improve product tracking and
tracing
Strategies for Success
 Packaging and Supply Chain Optimization
 Packaging remains a largely manual, standalone operation lacking the horizontal and vertical integration
needed to properly manage and monitor operations performance or deliver timely and accurate information
to business operations
 Food and beverage manufacturers and their technology and equipment suppliers are responding with
 New packaging operations management software
 New, more efficient packaging machinery with advanced controls and integral robotics systems
 Machines and equipment with modern communications capability
 The continued development and deploy-deployment of machine control and information standards
 Food Quality and Safety
 Companies are actively deploying new electronic product quality risk, and compliance management
systems
 These include new electronic product quality, risk, and compliance management systems (QRC) and
subsystems that include:
 Document management systems
 Laboratory information management systems (LIMS)

 Real time electronic hazards analysis and critical control points (HACCP) systems
 Corrective and preventative action systems (CAPA)
 Real time on-line SQC/SPC
 Model-based and multivariate predictive controls
 Product genealogy and tracking and tracing systems
The Connected World is on the Horizon
Systems
Cloud, Virtual
People Processes Information

Collaboration, Analytics, 3D
Social
Things/
Assets Together, These

Mobile, IoT Technologies can
Help You Transform
Your Business
Basics Industrial
of Modern Industrial
Internet:Automation
The New Frontier
Remote
Monitoring & Services
Apps
Advanced Analytics
Connectivity
Network Platform
Most Industrial IoT Building Blocks are Already in Place

Basics of Modern Industrial
Industrial InternetAutomation
Drivers
Reduced Downtime and Faster Service are Top Drivers
Source: ARC Industrial Internet of Things Survey

Basics IoT
of Modern Industrial Opportunity
is a Business Automation to Improve
Machine Utilization
Identifying Problems will Allow the Industry to do More

with Less Machinery
 Reduce Operating time to produce work piece

 Improve Machine Production Output
 Improve Utilization of Labor
 Identify operational issues
 Identify poorly operating machines
 Increase the performance of the operator
 Close the loop with product design

 Close the loop with CAM systems
Increase Utility of Machine Tool by
Enabling Operators
 Machine utilization continues to rely on operators, but skill level is

declining
 Operators often first to identify processes need attention.
 Operators are an Intelligent Sensor
Quality
Process Engineers
Skill
Level
Maintenance
Technicians
Operators
Today
Time
Continued workforce reductions make it necessary to capture the knowledge of

process engineers and maintenance workers to maintain quality.
Empower the Operator
Low Skilled Operators Need to be

Connected to an IoT Infrastructure to
Improve Performance
Workers’
senses
Operation by
Inspection Skill
skilled workers
target Know-how
Knowledge
Judgment based on implicit knowledge

Basics Knowledge DiscoveryAutomation
of Modern Industrial Through Analytics Embeds
Rules in Machinery & Production Systems
 Consistent quality
 Non dependence on skilled workers
Quantitative
Knowledge
Characteristics
Know-how
Data sensing No skilled workers

Knowledge-info Control Technologies

From machinery
Extract Learn Infer

Basics Knowledge Discovery
of Modern Industrial & Analytics
Automation –
Summing Up
 Analytical tools that rapidly recognize trends in production
 Shorten the time from problem identification and corrective action
 Rapidly identify startup problems to ensure faster time to market
 Create an environment that is data driven instilling a consistency

in corrective actions
 Decouple operator ability of providing early detection of machine

degradation from manufacturing performance
Basics of Modern Industrial
Analytics Automation
Drives Knowledge
Discovery and Creation
Improving Manufacturing Metrics

Let’s Change the Mix of Maintenance
The Emerging Smart Production
Environment (IIoT, I4.0, etc.)
New or Changing …
- Software: Analytics, APS, MES/MOM, EAM/CMMS,
LIMS, PAM, Security, etc. Connected
Connected
- Mobility and enhanced worker connectivity Enterprise
Machine
- Remote services; Product ‘as-a-Service’
- Smart sensors, assets, network connectivity, cloud Remote
Monitoring &
… All along with traditional automation Services
and enterprise systems Enterprise
Systems
Self-Planning Smart Apps
Video Presence
Systems Tools (Expert Help)
Collaboration Advanced
Flexible Worker Location/Nav Analytics 3rd Party
Schedules Services
Services
Access Control Connectivity
Augmented
Services Platform
Reality
IIoT Smart
Connected Module
Plant Systems
Worker and Assets
Connected
Smart Smart Machines Products
Warehouse - Connected
RFID
- Software-defined
Connected - Agents, Apps
Supply Smart Logistics Smart Smart
- Sensors e.g. vibration,
ultrasound, infrared Smart Containers
Chain Components Carriers etc. Smart
Products
Smart Metrology
The Connected Plant
XYZ Company XYZ Company XYZ Company XYZ Company
Maintenance Engineering Purchasing Corporate Service

Machine
Mfr. Provider
Enterprise
New IoT
Analytics and
Business Share Asset Monitor
Systems Data with 3rd in-service
Applications Parties Secure Connection Products
Private
Private
Cloud
Cloud
Secure Network
XYZ Company
Smart Machine
IoT Smart Local IoT Compute and

Module Communicate module
Physical asset with

sensors, actuators
Emerging Option: Connect Big

Assets Using New Technologies
Plant Operations
IoT Industry Groups
Many focused on network connectivity for home
 AllSeen Alliance (2013) – Qualcomm, LG, Haier, Panasonic, Sharp

 Industrial Internet Consortium (2014) AT&T, Cisco, GE, IBM, Intel
 IPSO Alliance (2008) ARM, Atmel, Ericsson, Freescale, EDF
 Open Interconnect Consortium (2014) – Intel, Broadcom, Dell, Samsung
 Thread Group (2014) Google/Nest, ARM, Samsung
 ZigBee Alliance (2002) Freescale, TI, Philips, Schneider Electric
 Z-Wave Alliance (2005) ADT, Ingersoll Rand, Linear Technologies
 Smart Manufacturing Leadership Coalition (SMLC)
 Industrie 4.0
 DMDII
Industrie 4.0 in the Process Industries
 Industrie 4.0 has been conceived from a discrete industry perspective
 The process industry has many concepts of Industrie 4.0 in place

 Autonomous optimization, controllers are coordinated via the DCS concept (APC, RTO),
integrated supply chain and production optimization, etc.
 The process industries has its own buzzwords and initiatives, also visible
at the ACHEMA fair
 Modular automation and production technologies, to build small, flexible, reconfigurable
production units (F3 Factory model)
 Predictive maintenance strategies (asset health diagnostics/analytics, useful life
prediction, planning predictive maintenance, life cycle cost management

 Remote operation (workforce reduction, reduce night and weekend shifts)
 Digitalization (seamless engineering, operations and maintenance)
 US initiative SMLC (common IT platform, advanced modeling, and more)
 Exception is the German process industry (BASF, ThyssenKrupp) have a process
interpretation of Industrie 4.0
IIoT Impact on Industrial Companies
 More Sensors, More Data, More Automation

 More Analytics, More Visibility
 More Software Applications
 New Product Requirements
 New Production Equipment Capabilities
 Software defined, autonomous, intelligent
 New Architectures
 Cloud, Mobility, Virtual, Distributed
 New Service Requirements
 New Customer/Supplier Relationships

 New Ecosystem/Supply Chain
 New Business Models
Enterprise Software Business Is Evolving
New Model: Sell Apps that…

 run as a service in a private or public Cloud
 require monthly payment
 can be implemented in weeks or days
 can support diverse user ecosystem
 are upgraded by the supplier
 provide tools for global collaboration
Automation Systems are Evolving
Attribute From To
Focus Technology Business
Structure Hierarchical Flattened
Cyber Security After Thought Secure by Design
Data Multiple copies Single Version of Truth
Integration Project-based Standards-based
MOM Applications Separate Integrated
Control & Safety Separate Integration Options
Control & Electrical Separate Integration Options
Engineering Design Tied to Hardware/ Late-Binding for
Software Hardware/Software
Supported By Users Suppliers
Technology is no longer a barrier

Automation Products & Software
for the F&B Industry
Products What is included
DCSs Distributed control system hardware, software, and related services.
PLCs PLC hardware, software, and related services.
Machine Machine safeguarding solutions cover all key product segments used in machine safeguarding
Safeguarding applications.
Solutions
AC Drives Low and high power variable frequency AC drives (inverters, sensor-less, flux vector), peripheral
hardware, drive systems, bundled software, integration, and other relevant software and services.
General Motion controllers (single and multi-axis), intelligent drives, servo and stepper amplifiers, servo
Motion and stepper motors, bundled and unbundled software, integration, and other relevant services
Control provided by GMC suppliers
(GMC)
Unbundled EAM, PAM, RPO, PET, CPM for process, HMI, and LIMS
Software
Control All Control Valve, Actuator, and Positioner (CVAP) hardware, software, and related services.
Valves
Transmitters Pressure and temperature transmitters. Includes hardware, software, and services.
Level Continuous ultrasonic level and radar level devices for continuous level measurement applications.
Measurement Includes hardware, software, and services.
Flowmeters Magnetic, Coriolis, ultrasonic, and vortex flowmeters. Includes hardware, software, and services.
Analytical Process electrochemical systems (PES) and process infrared systems (PIRS) analytical products.
Includes hardware, software, and services.
Reference: Worldwide F&B Study, ARC Advisory Group
IIoT and Transformational Change
 IIoT increases the value of existing infrastructure
 More uptime
 Better performance
 More responsive
 IIoT presents a new set of opportunities - and risks – for Operations:
 Leverage data and analytics
 Leverage 3rd parties for non-core operating activities
 Leverage IT organization and technologies
 IIoT enables machine makers to reinvent their relationship with
customers
 Connected products enables ongoing relationship
 Engineering, marketing and manufacturing must collaborate
 Business model morphs to Products and Aftermarket Services

 PaaS
 Unpredictable disruption is predicted
 What is your strategy?
Embrace Technology Friendly Culture
Thank You!
For more information, contact the author at

RamanG@arcweb.com or visit our web pages at
www.arcweb.com

FoodSafe2016 ARC

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National Symposium on

Automation & Digital Transformation of

Automation & Enterprise

 Established in 1986 in Boston, USA

 Corporate Advisory Services,

 Market Research Reports, MIRA, STAR & Guides

 Analytics and Big Data

 Process Automation and Safety Management Model

 Aerospace and Defense

 Mining and Metals

Achieving and Sustaining Exceptional Business

Increasing Asset Reliability

Reducing Complexity and Customization

Create a Proactive Culture to Capitalize on Emerging

Utilize Automation to Satisfy HSE Requirements

Protect Operations from Cyber Threats

Provide and Sustain a Skilled Workforce

Predicting and Realizing Value from Automation

 Manufacturers operate in highly competitive markets, competing against global,

 Continued emphasis on product and packaging innovation, adding value to retailers,

 What is my competition doing?

 Emerging Markets, Urbanization, Changing Demographics

the packaging machinery manufacturing sectors

 Rising Food Safety Due Diligence and Cost of Quality

 Regulatory Requirements and Global Standards

 Drive Toward More Sustainable Manufacturing

 The Transparent Enterprise in the Information Age

 Manufacturers are being held to unprecedented levels of accountability throughout

 Productivity, Cost Containment, and Customer Satisfaction

 Laboratory information management systems (LIMS)

People Processes Information

Assets Together, These

Most Industrial IoT Building Blocks are Already in Place

Reduced Downtime and Faster Service are Top Drivers

Source: ARC Industrial Internet of Things Survey

Identifying Problems will Allow the Industry to do More

 Reduce Operating time to produce work piece

 Close the loop with product design

 Machine utilization continues to rely on operators, but skill level is

Continued workforce reductions make it necessary to capture the knowledge of

Low Skilled Operators Need to be

Judgment based on implicit knowledge

Data sensing No skilled workers

Knowledge-info Control Technologies

Extract Learn Infer

 Analytical tools that rapidly recognize trends in production

 Shorten the time from problem identification and corrective action

 Rapidly identify startup problems to ensure faster time to market

 Create an environment that is data driven instilling a consistency

 Decouple operator ability of providing early detection of machine

Improving Manufacturing Metrics

XYZ Company XYZ Company XYZ Company XYZ Company

Maintenance Engineering Purchasing Corporate Service

IoT Smart Local IoT Compute and

Physical asset with

Emerging Option: Connect Big

 AllSeen Alliance (2013) – Qualcomm, LG, Haier, Panasonic, Sharp

 The process industry has many concepts of Industrie 4.0 in place

prediction, planning predictive maintenance, life cycle cost management

 More Sensors, More Data, More Automation

 New Customer/Supplier Relationships

New Model: Sell Apps that…

Technology is no longer a barrier