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Copyright © 2009 Rockwell Automation, Inc. All rights reserved. Smart, Safe and Sustainable Manufacturing John Bernaden Efficient Enterprises: Powering American Industry September 25, 2009

Smart, Safe and Sustainable Manufacturing

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Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

Smart, Safe and

Sustainable

Manufacturing

John BernadenEfficient Enterprises: Powering American Industry

September 25, 2009

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 2Copyright © 2008 Rockwell Automation, Inc. All rights reserved. 2

Federal R&D and the U.S. Economy

• American science and engineering innovations underpin our economy

• Science and technology investments drove between 50 to 85 percent of

U.S. economic growth over the past half-century

• Two-thirds of productivity gains in recent decades attributable to

scientific and technological advances

• Federal R&D funding is half the 1970’s

rates as a percent of GDP

• Applied research funding declined

40 percent from 1990 to 1998; and

is 30 percent behind basic science

Manufacturing innovation especially needs applied research

Federal R&D Funding

Engineering/Physical Science

0

0.05

0.1

0.15

0.2

0.25

0.3

1970 1980 1990 2000 2009

Perc

en

t o

f G

DP

Source: American Physical Society of Public Affairs

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 3Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

ContinuousBatch Motion Drive

Discrete

Smart Manufacturing 1.0: Islands of Efficiency

Safety

3

Today, most plants use multiple separate manufacturing technologies

Combined

Heat &

Power

(CHP)

Energy-efficient

MotorsDistributed

Control

Systems

(DCS)

Programmable

Logic

Controllers

(PLC)

Smart

Machines

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 4Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

ContinuousBatch Motion Drive

Discrete

Smart Manufacturing 2.0: Plant-wide Integration

Safety

4

Essential first step to the connected enterprise

Industrial

Energy

Management

Ethernet/IP

• ACEEE estimates +2x energy savings

• Able to measure and manage carbon

footprints per product line

• More flexible, safer and productive

factories in the future

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 5

Smart Manufacturing 2.0: IT-Connected Plants

Supply Chain Distribution

Center

Customer

Business Systems, ERP

Modern, smart factories will be

interconnected via Ethernet/IP with the

supply chain, distribution, customers, and

business systems

an interconnected world… voice, data,

mobile, etc.

Smart Grid

Smart Factory

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 6

Enterprise Business Systems

Customer Relationship Management

Supply Chain Management

Enterprise Production Management

Supply Chain

Distribution Center

Customer

Major Business Benefits

FLEXIBLE: FASTER TIME TO MARKET

OPTIMIZED WITH BUSINESS RISK MGMT

Machine Factory Enterprise

-Simulation / Advanced Control

-Mechatronics

-Autonomous Control

…..-Prognostics

-Software Integration -Safety / Security

-Wireless

-Track/Trace -Analytics / Reporting -Key Process Indicators –Batch Records

HIGHER PRODUCTIVITY / LOWER TOTAL COST OF OWNERSHIP

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 7

Enterprise Business Systems

Customer Relationship Management

Supply Chain Management

Enterprise Production Management

Sustainable Production Benefits

-Smart Grid Ready

-Regeneration

-Clean Power

-Industrial Energy Management

-Environmental Compliance

-Product Safety

OPTIMIZED WITH BUSINESS RISK MGMT

ENERGY EFFICIENT

HIGH EFFICIENCY

ALTERNATIVE POWER

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 8Copyright © 2008 Rockwell Automation, Inc. All rights reserved. 8

Manufacturing the Future

• “Intelligent & Integrated

Manufacturing” recommended as

one of three top federal priorities for

manufacturing R&D by the National

Science & Technology Council

interagency working group in

March, 2008.

• European Union is ahead of the

U.S. with an approved 1.2 billion

Euros for a new “Factories of the

Future” research program to

develop and apply advanced

manufacturing technologies.

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 9Copyright © 2008 Rockwell Automation, Inc. All rights reserved. 9

Smart, Safe and Sustainable Manufacturing 2.0 is key to several

federal agencies’ ability to achieve their missions:

• Commerce: Helps enable the U.S. to maintain and grow its

leadership in manufacturing

• Energy: Essential to industrial energy management and

“green” manufacturing

• EPA: Carbon footprints for each product

• FDA: Safer foods and drugs and faster recalls

• Labor: Sustainable, safer, green jobs

All these agencies will play an important role in the evolution of Smart, Safe and Sustainable Manufacturing 2.0

Federal Government Benefits

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 10

Significant Potential for Energy Savings

• By 2020, industrial sector will consume 52% of the energy in the U.S. with estimated reduction potential of 18% yielding potential savings of $47b / year (McKinsey, 2009)

• Of the approximately 4 billion kWh electrical energy used per day in industrial operations in the U.S., a 10% reduction during peak demand translates to savings of $6b/year

• Energy management for industrial operations is more complex than for buildings since stopping/starting processes can increase production costs – domain knowledge is required

• Energy management is manual and fragmented in industrial operations today

– Leverage integrated architecture, sensors, and advanced analytics to automate energy management

Potential Peak Load Reduction (MW)

Residential

Commercial

Industrial

Other

Wholesale

0 2500 5000 7500 10000 12500 15000

(2020)*

* McKinsey Report, 2009

“Greenprint” needed for industrial energy management

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 11

Six steps toward the next generation of energy-efficient manufacturing:

1. Facility Energy Monitoring and Demand Management

• Equipment runtime decisions that lower energy consumption / cost

2. Plant Floor Energy Monitoring

• Energy optimization in a manufacturing process

3. Energy on the Production Bill of Materials

• Understand the cost of energy associated with manufacturing a specific product

4. Production Modeling & Optimizing

• Model energy as a process variable utilizing advanced modeling tools

5. Production Demand Management

• Schedule production with energy as a variable (responds to water or electricity restrictions)

6. Demand Response to Regulation

• Respond to external market signals (like the smart grid) to optimize demand to real-time supply

and provide continuous emissions monitoring

Industrial Energy Management “Green Print”S

ense

&M

easu

re

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 12

Public Support for U.S. Manufacturing

82%

70%

Factory automation important to U.S. economic growth

Use stimulus $$ to increase factory automation

42%

U.S. losing its competitive edge

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 13

Call to Action

Copyright © 2008 Rockwell Automation, Inc. All rights reserved. 13

• Establish $2 billion in public-private partnership funding to research and develop a manufacturing “greenprint” for Smart, Safe, Sustainable Manufacturing 2.0

• Establish “applied research “demonstration projects in collaboration with manufacturers to refine and improve the “greenprint” model across the five industries with the highest energy intensity –petroleum, chemical, metals, minerals and food processing, to achieve the following:

• Plantwide optimization of resources, including water, compressed air, natural gas, electricity and steam (WAGES)

• Industrial energy management that enables "real-time" inclusion of energy or emissions as part of a product's cost

• A safer working environment for employees

• Safer products and the ability to more efficiently meet federal regulations, especially for faster recall tracking and tracing

• Establish educational and outreach programs about the “greenprint” model for Smart, Safe and Sustainable Manufacturing 2.0

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 14

Questions?

Copyright © 2009 Rockwell Automation, Inc. All rights reserved.