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1 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
3 Keys for Digital Transformation in ManufacturingDave MorfasDirector of Product Marketing, Plex
2 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Overview
• What is Digital Transformation
• Why manufacturers care
• How Digital Transformation applies to you
• How you benefit
• 3 keys that manufacturers can use to guide the Digital Transformation journey
3 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
We Have an Evolving Digital Economy
World’s Top 5 companies are digital
Internet (digital) economy is the world’s 5th largest
https://hbr.org/2016/10/the-missing-political-debate-over-the-digital-economyhttps://www.bcg.com/documents/file100409.pdf
4 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Manufacturing is Evolving in Parallel – With the Help of Technology
46%Technology had an effect on
manufacturer growth
Source: State of Manufacturing Technology Survey, 2016
Nearly 20%Are making their next technology
investment in smart/connected tools
5 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Digital Transformation is an Evolving Strategy
• Automating processes
• Becoming data-driven
• Connecting machines and people
6 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Operational Challenges Abound
Source: CIO Survey, IDG, January 2016; Q - From an IT perspective, what are your top challenges with respect to your business operations today?
Top IT Business Operations Challenges
7 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
And Manufacturing Challenges Stack Up
Manual processes
Errors
Paper-based processes
Poor visibility
Lack of traceability
Waste
Scrap
Information silos
Quality
Efficiency
Faster decisions Accurate decisions
Cost pressure
Profit
8 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
System Complexity is Growing
Source: CIO Survey, IDG, January 2016Source: CIO Survey, IDG, January 2016
Manual processes
Errors
Paper-based processes
Poor visibility
Lack of traceability
Waste
Scrap
Information silos
Quality
Efficiency
Faster decisions Accurate decisions
Cost pressure
Profit
Complexity
See increase in complexity in their organization’s ERP ecosystem
70%
9 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
UNLOCK THE POTENTIAL OF PEOPLEInformed, engaged, and effective workforce
CONTROL THE PLANT FLOORReal-time visibility and control at the manufacturing moment
CONNECT THE BUSINESS TO EVERYTHINGStreamlined communication, collaboration, and connectivity
MAKE DECISIONS WITH CONFIDENCE AND SPEEDHolistic contextual view of the enterprise
3 Keys for Digital Transformation in Manufacturing
ControlControl
Connect
BetterDecisions
Unlock
Control
Connect
Transform
Unlock
10 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Look Familiar?
Get rid of manual, error-prone processes
Eliminate paper handoffs
10
Maintenance Work Orders
Quality Reports
Gage Control
Work Instructions
Bulletins
Production Records
11 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Plant Floor – You Can’t Manage What You Can’t Measure…or Track
Shipping
Inventory
Production
Inspection
QualityEngineering
Maintenance
12 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
SENSORS
Digital Transformation Helps Control and Connect the Plant Floor
13 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
ANALYTICS
SENSORS
Advanced Analytics Makes Data Actionable
14 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Plants
Customers
Partners
Supply ChainHQ
Digital Transformation Helps Connect Everything and Everyone
15 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
“Connectedness” is Key to Managing Manufacturing
How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes?
Source: CIO Survey, IDG, January 2016: How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes?
90%For improving operational efficiency
82%For improving productivity
80%For improving communication and collaboration
16 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
A Connected, Digital World Ushers in Industrial Internet of Things (IIoT)
IIoTThe network of physical objects — devices,
sensors, machines, tools, vehicles, buildings, and products — that collects, measures,
receives, transmits, acts, and exchanges data in an industrial application
17 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Digital Transformation Promotes IIoT
• Smart manufacturing/IIoT listed as a key factor in near-term growth
• Manufacturers are on the cutting-edge of modern technologies
• Modern technologies drive high data capture
Connected devices employed in manufacturing operations today
Hand s
cann
ers
Consu
mer m
obile
devic
es (e
.g., p
hone
, table
t)
Senso
rs
IP-e
nable
d too
ls an
d mac
hines
Low-p
ower
Blue
tooth
devic
es
Quality
scan
ners
Smart th
ermos
tats o
r ligh
ting c
ontro
ls0%
10%20%30%40%50%60%70%80%90%
100% 94%
79%
50% 46%37% 32%
24%
18 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Digital Transformation Helps Unlock the People Potential
19 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Fear Not: People are Still Core to the Future of Manufacturing
• Manufacturing is changing
• Skillset demands are changing
What do you see as the biggest obstacle to your company’s growth next year?
Shortage of skilled workers
Lower-cost competitors
Inability to take advantage of new technology
New competitors
Regulation
Shortage of capital
Weak demand among U.S. customers
Weak demand outside the U.S.
Other (please specify)
0% 5% 10% 15% 20% 25% 30%
28%
22%
5%
4%
3%
9%
17%
9%
3%
Source: State of Manufacturing Technology Survey, 2016
20 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Digital Transformation Supports Untethered Workers
21 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Modern Digital Solutions are the Way Forward
Yesterday’s Software Systems
• Accounting focus• Plant is an afterthought• Rigid processes• Limited access & visibility• Disconnected data
• Versionless, always current software• Plant floor to top floor connectedness• Flexible, collaborative processes• Always-on, real-time data• Single source of truth
Modern Software Systems
VS.
22 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Cloud – The Right Path to Digital Transformation
Percentage of respondents that valued the following capabilities that cloud technologies deliver
1. Connectivity to systems, machines, suppliers, customers (98%)
2. Continuous innovation (97%)
3. Common data model (96%)
4. End-to-end solution (96%)
5. Lower cost IT resource requirements (96%)
6. Access to the customer community (93%)
Source: State of Manufacturing Technology Survey, 2016
23 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
“We automatically report production at a highly detailed level, increase equipment uptime, and ensure a consistently high-quality part output. It completely changes the way we do business.” – Marwood Metal Fabrication
Results: Reporting, Quality, Uptime
24 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
“The automated, paperless system saves time and effort, and helps with ISO compliance.” – Newman Technology
Results: Time Savings, Eliminate Errors
25 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
With the Cloud model, it has allowed us to access information from anywhere, anytime. We are no longer chasing data from one source to another. It is now readily available to help us make informed and proactive decisions.” – Hatch Stamping Company
Results: Data access, better decisions
26 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Summary
• It’s about transforming the business
• Eliminate archaic, manual paper processes and errors
• Gain visibility and control of your plant floor
• Connect machines, people, and your enterprise
• Unlock your people potential to focus on business improvements
• Embrace innovation, modern tools and capabilities