Holy Clayton Christensen! Is Local Motors prototype for future of manufacturing?

In the latter stages of writing The Future Is Smart, I came across Local Motors, an amazing company that is not only an IoT innovator but also might pr0vide a model to revolutionize American manufacturing in general.

I’d read an article years ago about the company when it was locally-based, but since it was focused entirely on off-road & fast cars at the time (both of which leave me cold) I didn’t follow up.

Now it’s diversifying into a cute small urban shuttle device, the Olli, which is being produced at Local Motion’s Knoxville microfactory, taps IBM’s Watson, and which they label “the world’s first self-driving cognitive vehicle.” Very cool.

co-creation

The first of Local Motor’s revolutionary aspects is its design process, which it labels “co-creation” (AKA crowdsourcing — in fact founder/visionary John B. (Jay) Rogers, Jr. says he was inspired by the Jeff Howe book of the same name). It uses a SaaS platform, where the company posts design challenges, and then community members (some experts, some just enthusiasts) offer their ideas. Eventually, the community votes on which designs to actually produce:

“An active process where brands and their customers work together with solvers, designers, and engineers to accelerate product and technology development. We call this group our Community and proudly work to empower genius ideas and brilliant solutions from Community members across the globe.”

The participatory aspect even extends to the shop floor: buyers can opt to personally take part in the final assembly process (and designs are also easily customized after the sale as well).

The company has also provided consulting services on co-creation for organizations ranging from the US Army to Airbus. 

This is not unlike my “share data, don’t hoard it” IoT Essential Truth, which is also at the heart of my Circular Company vision: when you involve and empower a wide range of people, you can unleash creativity that even the most talented person can’t.

direct digital manufacturing

The second Local Motors innovation is use of creative technologies, especially 3D printing, in manufacturing, what they call “direct digital manufacturing (DDM).”  The process mimics what Siemens does at its “Factory of the Future,”  where complete digitalization gives them quality, precision, and the opportunity for mass customization:

“DDM creates significant unfair advantages: the ability to produce parts directly from a CAD file; elimination of investments in tooling; reduction in time lag between design and production and, best of all, elimination of penalties for redesigns — unlocking mass customization that was previously unobtainable.”

According to Chief Strategy Officer Justin Fishkin, the economies possible with the DDH approach means the Rally Fighter model was profitable after only the 60th one was built.

microfactories

I’ve written before about Ford’s River Rouge plant, the ne plus ultra of the first Industrial Age: iron ore went in one end of the 1 x 1.6 mile factory and Model Ts came out the other.

By contrast, Local Motors is building several supermarket-sized “microfactories” around the globe at a cost 1/100th of that for conventional car plants, which “..will also act as points of sale, or what Fishkin calls ‘experiential dealerships.’”

 


The jury’s still out on Local Motors (Rogers, for example, has come in for some scathing tell-all comments by former employees), but even if it isn’t a roaring success, it will have a lasting legacy for challenging such long-held assumptions about the entire design/build process. and for exploiting the full benefits of digitization.  It’s the essence of Christensen’s disruptive innovation.

We’ll be watching

 

IoT Design Manifesto 1.0: great starting point for your IoT strategy & products!

Late in the process of writing my forthcoming IoT strategy book, The Future Is Smart, I happened on the “IoT Design Manifesto 1.0” site. I wish I’d found it earlier so I could have featured it more prominently in the book.

The reason is that the manifesto is the product (bear in mind that the original team of participants designed it to be dynamic and iterative, so it will doubtlessly change over time) of a collaborative process involving both product designers and IoT thought leaders such as the great Rob van Kranenburg. As I’ve written ad nauseam, I think of the IoT as inherently collaborative, since sharing data rather than hoarding it can lead to synergistic benefits, and collaborative approaches such as smart cities get their strength from an evolving mishmash of individual actions that gets progressively more valuable.

From the names, I suspect most of the Manifesto’s authors are European. That’s important, since Europeans seem to be more concerned, on the whole, about IoT privacy and security than their American counterparts, witness the EU-driven “privacy by design” concept, which makes privacy a priority from the beginning of the design process.

At any rate, I was impressed that the manifesto combines both philosophical and economic priorities, and does so in a way that should maximize the benefits and minimize the problems.

I’m going to take the liberty of including the entire manifesto, with my side comments:

  1. WE DON’T BELIEVE THE HYPE. We pledge to be skeptical of the cult of the new — just slapping the Internet onto a product isn’t the answer, Monetizing only through connectivity rarely guarantees sustainable commercial success.
    (Comment: this is like my “just because you can do it doesn’t mean you should” warning: if making a product “smart” doesn’t add real value, why do it?)*
  2. WE DESIGN USEFUL THINGS. Value comes from products that are purposeful. Our commitment is to design products that have a meaningful impact on people’s lives; IoT technologies are merely tools to enable that.
    (Comment: see number 1!)
  3. “WE AIM FOR THE WIN-WIN-WIN. A complex web of stakeholders is forming around IoT products: from users, to businesses, and everyone in between. We design so that there is a win for everybody in this elaborate exchange.
    (Comment:This is a big one in my mind, and relates to my IoT Essential Truth #2 — share data, don’t hoard it — when you share IoT data, even with competitors in some cases [think of IFTTT “recipes”] — you can create services that benefit customers, companies, and even the greater good, such as reducing global warming).
  4. WE KEEP EVERYONE AND EVERYTHING SECURE. With connectivity comes the potential for external security threats executed through the product itself, which comes with serious consequences. We are committed to protecting our users from these dangers, whatever they may be.
    (Comment: Amen! as I’ve written ad nauseum, protecting privacy and security must be THE highest IoT priority — see next post below!).
  5. WE BUILD AND PROMOTE A CULTURE OF PRIVACY. Equally severe threats can also come from within. Trust is violated when personal  information gathered by the product is handled carelessly. We build and promote a culture of integrity where the norm is to handle data with care.
    (Comment:See 4!).
  6. WE ARE DELIBERATE ABOUT WHAT DATA WE COLLECT. This is not the business of hoarding data; we only collect data that serves the utility of the product and service. Therefore, identifying what those data points are must be conscientious and deliberate.
    (Comment: this is a delicate issue, because you may find data that wasn’t originally valuable becomes so as new correlations and links are established. However, just collecting data willy-nilly and depositing it in an unstructured “data lake” for possible use later is asking for trouble if your security is breeched.).
  7. WE MAKE THE PARTIES ASSOCIATED WITH AN IOT PRODUCT EXPLICIT. IoT products are uniquely connected, making the flow of information among stakeholders open and fluid. This results in a complex, ambiguous, and invisible network. Our responsibility is to make the dynamics among those parties more visible and understandable to everyone.
    (Comment: see what I wrote in the last post, where I recommended companies spell out their privacy and usage policies in plain language and completely).
  8. WE EMPOWER USERS TO BE THE MASTERS OF THEIR OWN DOMAIN. Users often do not have control over their role within the network of stakeholders surrounding an IoT product. We believe that users should be empowered to set the boundaries of how their data is accessed and how they are engaged with via the product.
    (Comment: consistent with prior points, make sure that any permissions are explicit and  opt-in rather than opt-out to protect users — and yourself (rather avoid lawsuits? Thought so…)
  9. WE DESIGN THINGS FOR THEIR LIFETIME. Currently physical products and digital services tend to be built to have different lifespans. In an IoT product features are codependent, so lifespans need to be aligned. We design products and their services to be bound as a single, durable entity.
    (Comment: consistent with the emerging circular economy concept, this can be a win-win-win for you, your customer and the environment. Products that don’t become obsolete quickly but can be upgraded either by hardware or software will delight customers and build their loyalty [remember that if you continue to meet their needs and desires, there’s less incentive for customers to check out competitors and possibly be wooed away!). Products that you enhance over time and particularly those you market as services instead of sell will also stay out of landfills and reduce your pduction costs.
  10. IN THE END, WE ARE HUMAN BEINGS. Design is an impactful act. With our work, we have the power to affect relationships between people and technology, as well as among people.  We don’t use this influence to only make profits or create robot overlords; instead, it is our responsibility to use design to help people, communities, and societies  thrive.
    Comment: yea designers!!)

I’ve personally signed onto the Manifesto, and do hope to contribute in the future (would like something explicit about the environment in it, but who knows) and urge you to do the same. More important, why start from scratch to come up with your own product design guidelines, when you can capitalize on the hard work that’s gone into the Manifesto as a starting point and modify it for your own unique needs?


*BTW: I was contemptuous of the first IoT electric toothbrush I wrote about, but since talked to a leader in the field who convinced me that it could actually revolutionize the practice of dentistry for the better by providing objective proof that  patient had brushed frequently and correctly. My bad!

IoT: LiveBlogging PTC’s LiveWorx

Got here a little late for CEO Jim Heppelman’s keynote, so here goes!

  • Vuforia: digital twin gives you everything needed for merging digital “decorations” on the physical object
  • Unique perspective: AR takes digital back to the physical. Can understand & make better decisions.
  • Virtual reality would allow much of the same. Add in 3-D printing, etc.
  • “IoT is PLM.” Says PTC might be only company prepared to do both.
  • Says their logo captures the merger of digital and physical.
  • Case studies: they partnered with Bosch’s Rexroth division. Cytropac built-in IoT connectivity–  used Creo. Full life-cycle management. Can identify patterns of usage, etc. Using PTC’s analytics capacity, machine learning analysis. Want to improve cooling efficiency (it was high at first). Model-based digital twin to monitor product in field, then design an upgrade. How can they increase cooling efficiency 30%??  Came up with new design to optimize water channel that they will build in using 3-D printing. Cool (literally!). 43% increase in cooling efficiency. The design change results in new recommendation engine that helps in sales. Replaced operating manual with 3-D that anyone can understand. (BTW: very cool stagecraft: Heppelmann walks around stage interviewing the Rexroth design team at their workstations).
  • Ooh: getting citizen developers involved!!!  Speeds process, flexibility. App shows how products are actually operating in the field. Lets sales be much more proactive in field. Reinventing CRM.  May no longer need a physical showroom — just put on the AR headset.
  • Connectivity between all assets. The digital twin is identical, not fraternal. Brings AR into factory. They can merge new manufacturing equipment with legacy ones that didn’t have connectivity.  ABB has cloud-based retrofit sensors. Thingworx can connect almost anything, makes Industry 4.0 possible. Amazing demo of a simulated 3-D disassembly and replacement.
  • Hmmm — closing graphic of his preso is a constantly rotating circular one. Anticipating my “circular company” talk on Wednesday????

Closing the Loop With Enterprise Change Management. Lewis Lawrence of Weatherford, services to petroleum industry:

  • former engineer. In charge of Weatherford’s Windchill installation (they also use Creo).
  • hard hit by the drop in gas prices
  • constant state of flux
  • 15 years of constant evolution
  • their mantra: design anywhere, build anywhere.
  • enterprise change — not just engineering.
  • hmmm: according to his graphics, their whole change process is linear. IMHO, that’s obsolete in era of constant change: must evolve to cyclical. Ponderous process…
  • collect data: anything can be added, if it’s latest

The IoT Can Even Help You Breathe Better: GCE Group’s Zen-O portable oxygen concentrator for people with respiratory problems (not actually launched yet):

  • InVMA has built IoT application using ThingWorx to let patients, docs and service providers carefully monitor data
  • GCE made radical change from their traditional business in gas control devices. Zen-O is in the consumer markets. They were very interested in connected products — especially since their key competitor launched one!
  • Goals: predictive maintenance, improved patient care, asset management, development insight.
  • Design process very collaborative, with many partners.

The Digital Value Chain: GE’s Manufacturing Journey. Robert Ibe, global IT Engineering Leader at GE Industrial Solutions:

  • supports Brilliant Factory program.
  • they design and manufacture electrical distribution equipment, 30 factories worldwide.
  • “wing-to-wing” integrated process
  • had a highly complex, obsolete legacy
  • started in 2014: they were still running really old CAD technology. 14 CAD repositories that didn’t talk to each other. 15 year old PLM software. No confidence in any of data they had.
  • They began change with PLM — that’s where the digital thread begins.  PLM is foundation for their transformation.
  • PLM misunderstood: use it to map out cohesive, cross-functional, model-based strategy. Highlight relevance of “design anywhere — manufacture anywhere.” Make PLM master of your domain. Make it critical to commercial & manufacturing. Advertise benefits & value.
  • Whole strategy based on CAD. Windchill heart of the process.
  • Rate of implementation faster than business can keep up with!
  • Process: implementation approach:
    • design systems integration
    • model-based design
    • digital thread
    • manufacturing productivity.
  • common enterprise PLM framework
  • within Windchill, can see entire “digital bill of documents.”
  • focused on becoming critical for supply chain.
  • total shift from their paper-based legacy.
  • integrated regulatory compliance with every step of design.

It’s Not Your Grandmother’s IoT: Blockchain and IoT Morph Into An Emerging Technology Powerhouse:

  • Example of claims for fair-traded coffee that I’ve used in past

Finding Business Value in IoT panel:

  • Bayer — been in IoT (injection devices for medicine) for 7 years.  Reduced a lot of parts inventory.
  • Remote control of vending machines replaces paper & pencil
  • Your team needs to evangelize for biz benefits of IoT
  • New Opportunities:
    • vision and language
    • interacting with physical world
    • problem solving.
  • Didn’t know!  Skype can do real-time translation.
  • Google Deep Mind team worked internally, cut energy costs at its server farms. 15% energy reduction.
  • Digital progress makes economic pie bigger, BUT  most people aren’t benefitting economicallly. Some may be worse off. “Great decoupling” — mushrooming economic gap. One reason is that tech affects different groups differently.
  • “Entirely possible to create inclusive prosperity” through tech!

 

WEDNESDAY

Delivering Smart City Solutions and an Open Citywide Platform to Accelerate Economic Growth and Promote New Solution Innovation, Scott McCarley, PTC:

  • $40 trillion potential benefits from smart cities
  • 1st example & starting point for many cities, is smart lightpoles. Major savings plus value added. Real benefit is building on that, with systems of systems (water, traffic, energy, etc.) — the systems don’t operate in isolation.
  • Future buildings may have built-in batteries to add to power supply. Water reclamation, etc.
  • Cities are focused on KPIs across all target markets.
  • Cornerstone systems for a city: power & grid, water/wastewater, building management, city services & infrastructure.
  • Leveraging ThingWorx to address these needs:
    • deploy out-of-box IoT solutions from a ThingWorx Solution Provider: All examples, include Aquamatix, DEPsys (grid), Sensus, All Traffic, Smoove (bike sharing).
    • leverage ThingWorx to rapidly develop new IoT solutions.
      connect to any device, rapidly develop applications, visually model systems, quickly develop new apps. Augmented reality will play a role!
    • create role-based dashboards:
      one for your own operations, another for city.
    • bring the platform to create a citywide platform.
      Sum of connected physical assets, communication networks, and smart city solutions.

Digital Supply Networks: The Smart Factory. Steven Shepley, Deloitte:

  • 3 types of systems: 1) foundational visualization solutions:  KPIs, etc. 2) advanced analytical solutions 3) cyber-physical solutions.
  • Priority smart factory solutions:
    • advanced planning (risk-adjusted MRP), dynamic sequencing, cross network.
    • value chain integration: signal-based customer/supplies integration, dynamic distribution routing/tracking, digital twin.
    • asset efficiency: predictive maintenance, real-time asset tracking intelligence, energy management
    • labor productivity: robotic and cognitive automation, augmented reality-driven efficiency, real-time safety monitoring
    • exponential tech: 3-D printing, drones, flexible robots.
  • How to be successful: think big, start small, scale fast
  • Act differently: multi-disciplinary teams,
  • sensors getting simpler, easier to connect & retrofit. National Connectors particularly good.

Global Smart Home, Smart Enterprise, and Smart Cities IoT Use Cases. Ken Herron, Unified InBox, Pte.

  • new focus on customer
  • H2M: human to machine communication is THE key to IoT success. Respect their interests.
  • Austin TX: “robot whisperer” — industrial robot company. Their robots aging out, getting out of tune, etc. Predictive analytics anticipates problems.
  • Stuttgart: connected cow — if one cow is getting sick, may spread to entire herd. Intervene.
  • Kuala Lumpur: building bot — things such as paper towel dispensers communicating with management.
  • London: Concierge chatbot — shopper browsing can chat with assistant on combining outfits.
  • Dubai: smart camera. Help find your car in mega-shopping center: read license plates, message the camera, it gives you map to the car.
  • Singapore: Shout — for natural disasters. Walks the person making the alert through process, confirms choices.
  • Stuttgart: Feinstaubalarm — occasional very bad airborne dust at certain times. Tells people with lung problems options, such as taking mass transit.
  • Singapore: Smart appliances — I always thought smart fridge was stupid, but in-fridge camera that lets you shoot a “shelfie” does make sense
  • Fulda Germany: smart clothing for military & police: full record of personal health at the moment. Neat!
  • Noida India — smart sneakers can automatically post your run results (see connection to my SmartAging concept)

Business Impact of IoT, Eric Schaeffer, Accenture:

  • Michelin delivery trucks totally reinvented, major fuel savings, other benefits.
  • manufacturing being deconstructed
  • smart, connected products are causing it
  • industrial companies must begin transformation today

Thingworx: Platform for Management Revolution. W. David Stephenson, Stephenson Strategies:

Here are key points from my presentation about how the IoT can allow radical transformation from linear & hierarchical companies to IoT-centric “circular companies” (my entire presentation can be found here):

  • The IoT can be the platform for dramatic management change that was impossible in the past.
  • Making this change requires an extraordinary shift in management thinking: from hierarchy to collaboration.
  • The results will be worth the effort: not only more efficiency & precision, but also new creativity, revenue streams, & customer loyalty. 
  • In short, it will allow total transformation!

Kickstarting America’s Digital Transformation. Aneesh Chopra & Nicholas Thompson!

  • on day one, Our President (not the buffoon) told Chopra he wanted default to be switch from closed to open government & data.
  • National Wireless Initiative: became law 1 yr. after it was introduced.  Nationwide interoperable, secure wireless system.
  • Obama wanted to harness power of Internet to grow the economy. Talked to CIO of P & G, who was focused on opening up the company to get ideas from outside.
  • Thompson big on open data, but he thinks a lot more now is closed, we’re going wrong way.
  • Interesting example of getting down cost of solar to $1 per installed watt!!
  • Thompson: growing feeling that technology isn’t serving us economically. Chopra: need to democratize the benefits.
  • Chopra talking about opening up Labor Dept. data to lead to creative job opportunities for underserved.

 

 

 

 

Servitization With IoT: Weird Biz-Speak, But Sound Strategy

I love it when manufacturers stop selling things — and their revenues soar!

That’s one of the things I’ll cover on May 2nd  in”Define Your Breakout IoT” strategy, (sign-up) a webinar I’m doing with Mendix. I’ll outline an incremental approach to the IoT in which you can make some early, tentative steps (such as implementing Augury’s hand-held vibration sensor as a way to start predictive maintenance) and then, as you gain experience and increase savings and efficiency, plow the savings back into more dramatic transformation.

One example of the latter that I’ll detail in the webinar is one of my four “Essential Truths” of the IoT: rethink products. By that I meant not only reinventing products to be smart (especially by building in sensors so they can report their real-time status 24/7), but, having done that, exploring new ways to market them.  Or, as one graphic I’ll use in the presentation puts it, in mangled biz-speak, “servitization.”

              Hortilux bulbs

Most of the examples I’ve written about in that regard have been from major businesses, such as GE and Rolls-Royce jet turbines, that are now leased as services (with the price determined by thrust generated), but Mendix has a smaller, niche client that also successfully made the conversion: Hortilux, a manufacturer of grow lights for greenhouses.

The Hortilux decided to differentiate itself in an increasingly competitive grow light market by evolving from simply selling bulbs to instead providing a comprehensive continuing service that helps its customers optimize availability and lifetime of grow light systems, while cut energy cost.     

Using Mendix tools, they created Hortisensehttp://www.hortidaily.com/article/31774/Hortilux-launches-Hortisense-software-suite, a digital platform that monitors and safeguards various grow light processes in the greenhouse using sensors and PLCs. Software applications interpret the data and present valuable information to the grower anytime, anywhere, and on any device.

With Mendix, Hortilux created an application to collect sensor data on light, temperature, soil, weather and more. Now users can optimize plants’ photosynthesis, energy consumption, and greenhouse maintenance. Most ambitiously, it provides comprehensive “crop yield management:” 

  • Digital cultivation schedule
  • Light strategies based on plant physiology and life cycle
  • Automatic light adjustment based on predictive analytics (e.g. weather forecast, energy prices, produce prices)

The app even allows predictive maintenance, predicting bulbs’ life expectancy and notifying maintenance to replace them in time to avoid disruptions in operations.

In the days when we suffered from what I call “Collective Blindness,” when we lacked the tools to “see” inside products to m0nitor and perhaps fix them based on real-time operating data, it made sense to sell products and provide hit-or-miss maintenance when they broke down.

Now that we can monitor them 24/7 and get early enough warning to instead provide predictive maintenance, it makes equal sense to switching to marketing them as services, with mutual benefits including:

  • increased customer satisfaction because of less down-time
  • new revenues from selling customers services based on availability of the real-time data, which in turn allows them more operating precision
  • increased customer loyalty, because the customer is less likely to actually go on the open market and buy a competing product
  • the opportunity to improve operations through software upgrades to the product.

Servitization: ugly word, but smart strategy. Hope you’ll join us on the 2nd!

Siemens’s MindSphere: from automation to digitalization

Perhaps the most important component of a successful IoT transformation is building it on a robust platform, because that alone can let your company go beyond random IoT experiments to achieve an integrated IoT strategy that can add new components systematically and create synergistic benefits by combining the various aspects of the program.

A good starting point for discussion of such platforms is a description of the eight key platform components as detailed by IoT Analytics:

  1. “Connectivity & normalization: brings different protocols and different data formats into one ‘software’  interface ensuring accurate data streaming and interaction with all devices.
  2. Device management: ensures the connected ‘things’ are working properly, seamlessly running patches and updates for software and applications running on the device or edge gateways.
  3. Database: scalable storage of device data brings the requirements for hybrid cloud-based databases to a new level in terms of data volume, variety, velocity and veracity.
  4. Processing & action management: brings data to life with rule-based event-action-triggers enabling execution of ‘smart’ actions based on specific sensor data.
  5. Analytics: performs a range of complex analysis from basic data clustering and deep machine learning to predictive analytics extracting the most value out of the IoT data-stream.
  6. Visualization: enables humans to see patterns and observe trends from visualization dashboards where data is vividly portrayed through line-, stacked-, or pie charts, 2D- or even 3D-models.
  7. Additional tools: allow IoT developers prototype, test and market the IoT use case creating platform ecosystem apps for visualizing, managing and controlling connected devices.
  8. External interfaces: integrate with 3rd-party systems and the rest of the wider IT-ecosystem via built-in application programming interfaces (API), software development kits (SDK), and gateways.”

Despite (or because of, the complexity,) I think this is a decent description, because a robust IoT platf0rm really must encompass so many functions. The eight points give a basis for deciding whether what a company hawks as an IoT platform really deserves that title or really constitutes only part of the necessary whole (Aside: it’s also a great illustration of my Essential Truth that, instead of hoarding data as in the past, we must begin to ask “who else can use this data?” either inside the company or, potentially, outside, then use technology such as an IoT platform to integrate all those data uses productively.).

During my recent Barcelona trip (disclaimer: Siemens paid my way and arranged special access to some of its key decision makers, but made no attempt to limit my editorial judgment) I interviewed the company’s Chief Strategy Officer, Dr. Horst J. Kayser, who made it clear (as I mentioned in my earlier post about Siemens) that one of the advantages the company has over pure-play software firms is that it can apply its software offerings internally first and tweak them there, because of its 169-year heritage as a manufacturer, and “sits on a vast program of automation.”

Siemens’s IoT platform, MindSphere  is a collaboration with SAP, using the latter’s vast HANA cloud.  It ties together all components of Siemens’s IoT offerings, including data analytics, connectivity capabilities, developers’ tools, applications and services. MindSphere focuses on monitoring manufacturing assets’ real-time status, to evaluate and use customers’ data, producing insights that can cut production costs, improve performance, and even switch to predictive maintenance. Its Mind Connect Nano collects data from the assets and transferring it to MindSphere.

The “digital twin” is integrated throughout the MindSphere platform. Kayser says that “there’s a digital twin of the entire process, from conception through the manufacturing and maintenance, and it feeds the data back into the model.” In fact,  one dramatic example of the concept in action is the new Maserati Ghibli, created in 16 months instead of 30 — almost 50% less time than for prior models.  Using the Teamcenter PLM software, the team was able to virtually develop and extensively test the car before anything was created physically.

IMHO, Mindsphere and components such as Teamware might really be the key to actualizing my dream of the circular company, in this case with the IoT-based real-time digital twin at the heart of the enterprise — as Kayser said, “everything is done through one consistent data set.)” I hope to explore my concept, and the benefits I think it can produce, more with the Siemens strategists in the future!  I tried the idea out on several of them in Barcelona, and no one laughed, so we’ll see…

As with the company’s rail digitization services that I mentioned in my earlier post, there’s an in-house guinea pig for MindSphere as well: the company’s “Factory of the Future” in Amberg. The plant manufactures Simatic controllers, the key to the company’s automation products and services, to which digitalization is now being added as part of the company’s Industrie 4.0 IoT plan for manufacturing (paralleling GE’s “Industrial Internet.”). As you may be aware, Siemens’s efforts in this area are a subset of a formal German government/industry initiative — I  doubt seriously we’ll see this in the U.S. under Trump.

The results of digitalization at Amberg are astonishing by any measure, especially the ultimate accomplishment: a  99.9988 percent rate (no typo!!), which is even more incredible when you realize this is not mass production with long, uniform production runs: the plant manufactures more than 1,000 varieties of the controllers, with a total volume of 12 million Simatic products each year, or about one per second.  Here are some of the other benefits of what they call an emphasis on optimizing the entire value chain:

  • shorter delivery time: 24 hours from order.
  • time to market reduced by up to 50%.
  • cost savings of up to 25%

Of course there are several other robust IoT platforms, including GE’s Predix and PTC’s Thingworx, but my analysis shows that Mindsphere meets IoT Analytics’ criteria, and, combined with the company’s long background in manufacturing and automation, should make it a real player in the industrial internet. Bravo!

Concurrent Engineering: Great Tool to Make IoT “Circular Company” Reality!

Simultaneously sharing real-time data and collaborating (vs. linear methods where departments work in isolation from each other and sequentially) is a major theme of my “Circular Company” vision.

At the PTC ThingWorx expo in June one of the themes was “concurrent engineering“), which could be a major tool in making the circular company a reality.  The company’s Creo Advanced Assembly Extension  lets the the lead designer plan the assembly’s “skeleton” to give all the subassembly teams a common work basis and to include critical design info in the subassemblies. This lets each team work in parallel. If the lead engineer modifies the primary design, all the subassemblies will modify automatically. The process transfers seamlessly to the assembly line.

According to Wikipedia, the concept also fits nicely with the “circular economy” concept that’s gaining strength, by considering factors such as end-of-life disposal and recycling,  which is a great bonus of the “circular company”:

“.. part of the design process is to ensure that the entire product’s life cycle is taken into consideration. This includes establishing user requirements, propagating early conceptual designs, running computational models, creating physical prototypes and eventually manufacturing the product. Included in the process is taking into full account funding, work force capability and time. A study in 2006 claimed that a correct implementation of the concurrent design process can save a significant amount of money, and that organizations have been moving to concurrent design for this reason.[3] It is also highly compatible with systems thinking [which, BTW, is what originally introduced me to this concept, many years ago, through the writings of Peter Senge and Jay Forrester, who, BTW, is still kickin’ at 97!] and green engineering.”

Come on, gang: hierarchy and linear processes are soooo 20th century. Get with the program.

High-speed 3D Printer & IoT Could Really Revolutionize Design & Manufacturing

There’s a new high-speed 3D printer on the horizon which, coupled with the IoT, could really revolutionize product design and manufacturing.

I’ve raved in the past about 3D printing’s revolutionary potential, but I’ll admit I was still thinking primarily in terms of rapid prototyping and one-off repair parts.  Now, according to Bloomberg, HP is going to transfer its ink-jet printer expertise to the 3D printer field, with a $130,000 model set for release later this year that, for the first time, could make 3D printing practical and affordable for large-scale manufacturing, with “parts at half the expense and at least 10 times faster than rival printers — and likely [using] lower-cost materials.”

Combined with the IoT, that would go a long way toward making my “precision manufacturing” vision a reality, with benefits including less waste, streamlined products (a single part replacing multiple ones that previously had to be combined into the final configuration),  factories that are less reliant on outside parts and encouraging mass customization of products that would delight customers. 

Customers are already lining up, and see manufacturing-scale 3D printing as a game-changer:

Jabil Circuit Inc. [itself a digital supply-chain innovator] plans to be an early adopter of HP’s device, printing end plastic parts for aerospace, auto and industrial applications that it currently makes using processes such as injection molding, John Dulchinos, vice president of digital manufacturing at the electronics-manufacturing service provider, said in an interview.

“‘We have use cases in each of these segments,’ Dulchinos said. ‘Parts that are in hundreds or thousands or tens of thousands of units — it’s cheaper to 3D print them than mold them.’”

Other HP partners in the venture include BMW, Nike, and and Johnson & Johnson. The article cites research by Wohlers Associates predicting that manufacturing using 3D printers could “eventually grab at least 5 percent of the worldwide manufacturing economy, and translate into $640 billion in annual sales.”

3D Systems is also making the transition to large-scale 3D printing.

As I’ve written before in regard to GE’s leadership in the field, toss in some nanotech on the side, and you’ve really got something.

 

Distributed Manufacturing by 3D Printing Revolution for IoT Comes of Age!

Two major developments in the 3-D printing world, from Fictiv and (who woulda thunk it!) UPS, make me think the time has come for “distributing manufacturing” and getting away from the old massive, manufacturing mentality exemplified by Ford’s River Rouge plant.

OK, first a confession and a little history. Being short & named David, I’ve always had a fascination with David & Goliath, and you can bet who I’d root for. I also was deeply touched by two visionaries in my past:

  • Steve Clay-Young, who used to run the workshop at the old Boston Architectural Center & turned me on to a neat, nearly-forgotten bit of WWII history: either Popular Science or Popular Mechanix (can’t remember which), organized a network of hobbyists with metal lathes, who played a major role in the war effort. The magazine published plans for turning metal for munitions, and these guys each worked in their workshops to make them.
  • Eric Drexler, the nano-tech guru, spoke at the Eco-Tech conference in the ’90s about his vision of a bread-box-size gizmo on your kitchen counter that would churn out all sorts of customized products for you.

Now, it’s all taking place, and I suspect 3D printing will be a crucial element in the IoT-based transformation of the economy.

 

                                   Fictiv distributed manufacturing model

Fictiv is a startup founded to “democratize manufacturing,” which just went public with its new “distributed manufacturing” service using a nationwide network of 3D high quality printers and CNC machines:

 

“We route parts to machine with open capacity so you don’t wait 5 days for a part that takes 5 hours…. We aggregate orders so every customer receives the benefits of large purchasing power….”

Perhaps coolest, “Parts are produced as close to customers as possible to reduce inefficiencies in logistics and shipping lead-time”  so that (for an extra charge) they’re fabricated and delivered in 24 hours, and otherwise delivered in two days.  I suspect that, just as having sensors on their products that results in real-time feedback allowing GE to compress the design cycle, especially upgrades, that this proximity and quick turn-around will allow designers to radically alter the design process by “failing rapidly,” just the way early spread-sheet software allowed business managers to do “what-if” hypotheticals for the first time.

By bundling orders, they give startups the bargaining power of large companies.As co-founder Dave Evans, an experienced product design pro, says, distributed, local manufacturing can even the playing field for smaller companies, especially startups just designing their first products:

“When ordering from a large manufacturing company, parts need to navigate through their complex system and then be shipped from the machine warehouse direct to the customer, increasing lead times.

From an engineer’s perspective, when you’re in the prototyping and ideation stages, time is everything and even a 1-2 day loss from a 3PL (third-party logistics player) matters significantly.

What’s important to consider here is that in manufacturing, things can and will go wrong. So when remote manufacturers inevitably have to manage errors, there’s a lot of complexity to deal with …. This is very evident in overseas mass manufacturing, which is why companies put engineers as close to the source as possible. It’s amazing how few companies consider the same principles during the early prototyping stages of a product when time is everything.

The beauty in working with smaller, local manufacturers on the other hand, is that parts can be picked up as soon as they’re ready or delivered via same-day courier, saving you the 1-2 days of shipping. In addition, if things go wrong (they always do), smaller shops have more agility, fewer organizational layers, and in general can respond more quickly compared with their larger counterparts.”

              3D printing at The UPS Store

Equally important is the continuing stream of 3D services being offered by UPS. which recently announced a nationwide on-demand 3D printing network.  The network will combine 3D printers at more than 60 The UPS Stores® and Fast Radius’ On Demand Production Platform™ and 3D printing factory in Louisville, KY. My friends at SAP will marry its SAP’s extended supply chain solutions will be integrated with the UPS 3D network and — most important — its global logistics network “to simplify the industrial manufacturing process from digitization, certification, order-to-manufacturing and delivery.”

If I’m correct, the UPS network will concentrate on prototyping at this point, but it’s easy to see that it could soon have a dramatic impact on the replacement parts industry. Why should the manufacturer warehouse a large supply of spare parts, just because they might be needed, when they could instead simply transmit the part’s digital file to the nearest UPS 3D printer, generate the part, and use UPS to deliver it in a fraction of the time.

Combine that with the predictive maintenance possible with feedback from sensors on products, and you truly have a revolution in product design and maintenance as well as manufacturing. It would also foster the IoT-based circular company vision that I’ve been pushing, because supply chain, manufacturing, distribution, and maintenance would all be linked in a great circle.

Sweet!

 

 

Game-changer! AR Enables IoT merging of physical and digital

Several months ago I wrote about an analogy to the world of business prior to the Internet of Things,  in which a metaphorical illness called “Collective Blindness” affected every human for all time, so that we were unable to peer inside things. We just accepted that as an inevitable limitation, creating all sorts of work-arounds to try to be able to cope in the absence of real-time information about things of all sorts.

I then said that the Internet of Things would allow us to end Collective Blindness, getting — and sharing — the real-time data we’d need to make better decisions and work more precisely.

Now I’ve seen the tool that allows us to end that Collective Blindness: PTC’s Augmented Reality (AR), tool, Vuforia.

At last week’s PTC Liveworx conference, there was a mind-blowing demo of Vuforia by Terri Lewis, director of solutions and tech at Caterpillar, as it applied to the company’s XQ Gen Set, a portable power generator for job sites and special events.  As PTC CEO James Heppelmann reiterated several times, the software is creating

a single new reality that’s physical and digital at the same time….. and democratizing AR.”
(my emphasis)

Used as a sales tool, Vuforia Studio Enterprise lets the customer look inside the product, as contrasted with a static brochure.  That’s neat, but what’s really incredible is how it lets maintenance people peer inside the device, and do so in a way (as Heppelmann said, “humans prefer to use sight an sound simultaneously”) that is much more effective in terms of zeroing in not only on what’s wrong, but also these specifics (such as replacement part numbers, etc.) to quickly repair them.  Incidentally Heppelmann and Harvard Prof. and biz guru Michael Porter are collaborating on another article, this one on how to apply AR in a business setting (turns out that Porter is a member of the PTC board, and in the past few years he’s been using it as a lab to evaluate business use of the IoT).

Another example of Vuforia’s work in maintenance demonstrated at the conference was by Flowserve, the world’s largest flow control company. Vuforia helps them manage devices in real-time (the person at the pump can see what is actually happening), cutting the number of repair trips from three to one, because they are able to diagnose the problem at the beginning, and bring the replacement parts with them. Then they can do do real-time simulations to see if the problem has been solved. The company believes they saved $2 billion in excess repart costs in 2015 alone.

 Vuforia Studio AR lets users set up augmented reality simulations in minutes without writing code, and can also be used in product design review.

I had a chance to try the XQ Gen Set visualization with an AR headset myself, and it was as powerful as promised.

I must admit the first time I tried on an AR headset — and almost jumped on one of the other users because I was jumping back to avoid falling several hundred feet off a sharp cliff into the ocean — I was amazed by the realism, but didn’t really think much about its serious business uses.  PTC’s Vuforia Studio AR made me a believer: it’s helping us cure Collective Blindness, and AR will be yet another tool to bring about unprecedented precision and efficiency in every aspect of manufacturing and product maintenance!

Liveblogging #IoT @ #Liveworx 2016

1st up is Jim Heppelmann, PTC CEO and co-author w/ Michael Porter of the great 2-part HBR series on IoT strategy & tactics.

But 1st, few words from David Pogue, the great consumer tech writer: imagine his surprise when he sees his kids at home in CT have cranked the Nest 2 66 degrees. So he turns it up, LOL.

Heppelmann:

  • part of a fundamental transformation
  • one of biggest game-changing technologies of our time
  • things evolving from being simple physical products to complex systems, systems of systems
  • “single new reality that’s physical and digital at the same time”
  • example of rapid change: Augmented Reality & Virtuality combined with IoT: Terri Lewis, director of solutions & tech at Caterpiller — XQ Gen Set — rental power for job sites & sport events — “asset utilization” big deal for rentals & for the customers — can operate from a remote device (iPad in this case). PTC’s new product is Vuforia Studio Enterprise — “democratizing AR.” When used as a sales tool, lets customer look inside the product, vs. a static brochure.
  • humans prefer to use sight and sound simultaneously: he & Porter are working on another article on adding AR to business setting.
  • analytics: analytics is the new refinery for data, which is the new oil.  Announcing Thingworx Analytics. Example: Flowserve, an industrial products company.World’s largest flow control company. Helps to do real-time management of the device. It now takes only 1 repair trip to fix assembly rather than 3 before, because they know the actual problem at beginning. Do real-time simulations to see if it was solved.  Augmented Reality allows the person right at the pump, to see what is actually happening — that wasn’t possible before. Radically reduces time & money necessary to get it back online — reducing what was a $2 billion loss in 2015 alone.
  • New announcement: HPE industrial, hardened server to run such a system.
  • Engineering products: working with a group of local STEM kids in a robotics competition, FIRST Robotics. Use AR as part of the design review process, using Google Cardboard & Agile Engineering process. Team demo’s it.
  • He thinks they are THE company for digital/physical convergence.

Michael Campbell, Vuforia Studio AR:

  • augmented reality without writing code
  • reduces the CAD data set by 150x to optimize it, but protects all the visual richness
  • use in design review
  • can create compelling AR in a few minutes! Woo!
  • can actually put the digital info on the physical product itself.  Creo Illustrate for tech illustrators: step-by-step illustrations (wow, would that be great for product assembly and repair uses!). Intuitive interface, drag-n-drop.

 

http://www.stephensonstrategies.com/">Stephenson blogs on Internet of Things Internet of Things strategy, breakthroughs and management