foreign and I lead iot and blockchain applications to our friend in the Oracle supply chain Cloud at Oracle hi my name is Ravi balakrishnan I am the director for wonderful company leading the supply chain welcome to this session and thank you for joining in this session we want to talk about digital transformation in manufacturing or what we call use lead digital manufacturing or industry 4.0 a critical component of digital manufacturing is seamless closed-loop digital thread from Factory floor to ID applications such as PLM Erp Etc recent advancements in Technologies such as iot machine learning Ai and many other areas has made it easier than ever to track smoother Integrations between what we call the OT systems on the factory floor and ID systems within the Enterprise but challenges remain many projects end up in what we usually call the pilot Purgatory so let's look take a look at what's going on and how they can be made more efficient what are the primary hurdles in building that seamless digital threat from OT to ID has been the disconnected divisions within organizations so organizations are typically created a silos where every division implements their own projects it is typically run by the CIO is well integrated it's centralized in most organizations it has seen great progress in advanced cloud architectures and Open Standards allowing Innovation to happen at a pretty rapid pace OT or operations technology on the other hand tends to be aligned to lines of business or as we say llbs and often each lob will run their own operational technology departments each with their own priorities to add to that they might even run independent networks uh have independent procurement and independent budgeting processes all of this leads to a very high degree of fragmentation also adoption of new Frameworks such as Cloud agile methodologies or CI CD pipelines is much slower in OT as opposed to an ID this organizational required and fragmentation leads to more challenges such as inconsistencies in technical standards cyber security policies and process guidelines I think this quote from a report published by Mackenzie digital captures this theme friendly well as the authors from McKenzie mentioned in this quote the disconnect between it and OT systems can be a major challenge in achieving digital transformation goals but with the right strategy and Technical roadmap the integration of these two layers can be the key to unlocking tremendous value from existing business processes and become a catalyst for driving major transformation across the Enterprise so let's take a look at some of the examples of how you can achieve Roi from it booty conversions the first value is 15 to 20 reduction in inventory holding costs better visibility into production and predictability and performance can significantly help with reducing inventory holding costs this was achieved by one of our customers because of the high rate of production it would take them anywhere from three to six hours to add finished items to their inventory taking up a lot of valuable practice floor space and and not having accurate real-time visibility into their inventory levels by digitizing the manufacturing operations they've been able to cut down on the latency down to seconds and now they not only have upgraded information about the inventory but their customers can also get accurate visibility into the current status of production another area of value potential is in the labor productivity increase there are a number of areas where Factory operators can benefit from Automation in some of their routine tasks while cutting down on errors using real-time machine data to proactively detect quality issues can help avoid costly rework increase yield and improve worker productivity similarly reduction in machine downtime provides clear benefits such as increased yield better resources utilization and improved morale in the interest of time I won't go into other business value benefits but it is very clear that itot convergence has more significant business benefits such as improved cycle time better forecasting accuracy from improved visibility and better data sets and finally lowering costs for maintaining high quality levels that is a really important kpi that's also a great value from digital Manufacturing but while the business benefits are many and clear digital transformation in manufacturing is hard the ideas surrounding digital manufacturing have been around for more than a decade and most companies have started digital projects in the past few years but a vast majority of these projects never made it past the pilot phase a recent survey by PWC shows that 64 percent of digital Factory projects are still at the beginning phase there are of course companies that PWC calls us digital Champions that have been successful in completing their projects and have been able to realize many of the business benefits that are discussed a few minutes ago so what are the factors that determine the success or failure of digital Manufacturing study by McKenzie provides a great list of common reasons why digital manufacturing projects don't scale past the public phase one of the most common reasons is siled implementations uh we spoke about this as part of the itot division within organizations often different divisions within a company will take a narrow view of the transformation by focusing on problems faced by a small part of the business or a single side of manufacturing and they might end up with multiple dreams trying to achieve similar results but with conflicting approaches this makes selecting the right organizational strategy very difficult and often the projects cannot scale beyond the smaller set of requirements that they were designed for another Pitfall is analysis paralysis where companies spend years on a print analysis that tries to understand and quantify all aspects of the project before any work can be performed this leads to fatigue and eventually project failure experimentation and prototyping are key to gaining insights but uses about their users and challenges leading to MVP for maximum business benefit similarly a technology first approach that makes architectural choices early before clearly understanding business benefits is a definite indicator of project failure functional requirements should drive technical architecture rather than the other way around um finally the digital transformation space is quite evolving there are new technology developments especially in areas such as iot machine learning AI that can very quickly make certain capabilities possible that we're just not possible a few years ago uh if you don't adapt to this technology developments there is a good chance that you're competitors will and potentially making your solution outdated even before it launches and another big shift happening is in the workforce skills and availability of skilled resources uh digital transformation projects must stay in sync with changing Workforce Trends to be able to adapt to emerging demands of the incoming Workforce now many of these challenges are not easy the smartest teams can still face these challenges despite their best efforts but the first step is in acknowledging them and make choices that will better prepare organizations to deal with with them when disruptions occur there is a very good framework that has emerged based on studies of successful digital manufacturing initiatives the framework is from National Academy of Science and Engineering it's basically a maturity model that shows us a value-based development stages the model ensures that benefits are visible throughout the life cycle of their transformation instead of having to wait in the end the Maori consists of stages such as computerization connectivity and visibility transparency predictability and adaptability the most important stage being visibility this is the stage where OT data is used to create up-to-date Factory digital prints and gives you a complete perspective of what's going on as today it's more of what we may call A Digital Shadow because it's showing you what has already happened the next stage is when this transparency when the Digital Shadow becomes a digital twin it can be used to analyze and understand why something is happening in the next stage with predictability we can run simulations the simulations can help anticipate conditions and errors but this requires really good quality data to build reliable models uh definitely a very difficult stage to achieve but once you get there the benefits are tremendous and in the final stage adaptability is when systems can self-optimize to adapt to changing conditions without requiring any human intervention now this is clearly a very comprehensive framework that can take few years to complete so it's important to have a metric that can continuously track wrappers to make sure you're on track so what is that metric well that metric is speed in decision making there is a great quote by Mark benioff he says speed is the new currency for business the goal of manufacturing transformation is to reduce the inherent latencies that exist at the various steps that are to be performed prior to determining the action and Performing the action for a business event with each stage of the transformation model you should be able to observe reduction in latencies that allow for much faster and reliable decision making the speed and decision making is the most influential factor in achieving strong Roi from your digital transformation efforts with that it's invite Michael speaker Ravi Bal Krishan uh who's at the wonderful company is responsible for a large number of Enterprise applications including Erp manufacturing inventory among others Ravi welcome hey thanks Jay my name is Ravi balakrishnan so work for the wonderful company I'm the director for supply chain side of things so just a little brief about the wonderful company so this is what we do so we you can probably see some of these uh like you know the name brands probably would see it in the store so what we do um is like you know we are five billion dollar privately held company based in Los Angeles then we make uh like you know we grow all of our fruits and nuts in the Central Valley primarily and also in Texas and then some parts of Mexico so we grow we Harvest and also we package and we Market to uh the retailers the Costco Sam's Club Walmart all of those so coming into the application landscape so this is a full landscape or Erp systems um so we went live with our Oracle Cloud Erp with the wonderful Citrus five years ago and then slowly we want to I mean eventually we want to get all of them into the same single instance and we are in the journey right now and we are migrating and then some of the class bu platform platforms are listed below including uh the Oracle transportation management and then uh like you know business intelligence from Oracle Hyperion and then Microsoft power bi so going into uh today's session we want to talk about the smart supply chain uh within the wonderful company so we have main Five Pillars uh so one of them start with is the physical flow how do we automate the flow of material uh from all the way from our wrenches into our Factory and then from Factory all the way to our consumers so how do we do that next level of automation how do we do that completely uh like you know without anybody touching it so that's the physical flow and then connect the system so we want to get the best of solutioning in each areas whether it's manufacturing or Erp or any of the solutioning but the thing is we want to connect those things vertically as well as horizontally so that way we have the better visibility from end to end because this is really required to making the decision smart Edition and a real-time basis um so the overall process here is make sure it's completely automated whether it is a shuffler or even in the system itself how do we do that without somebody touching it how do we take the orders execute them and ship them out right that's the level of automation we want to do in all of this we want to respond and then quickly get to the market because this is a competitive Advantage we want to make sure we are out here on the curve so how do we do that with three things anytime when it comes to it we need to improve the quality improve the safety at the same time reduce the cost and we want to make sure the process and Technology comes hand in hand when it comes to Smart supply chain because we don't want to leave one versus the other both needs to go hand in hand so with that I'm just going to talk about three use cases what we did at the wonderful company so the first use case is we do a batch input or the bin validation and then the consumption so in our processing facility in Delano California so we do bring in uh bins and bins of fruit from the field so when it comes in we have to dump these bins into the processing plant um so how do we do that so we have a bin ID which has a content and everything at the time of receipt so when it goes to the container I mean when it goes to the conveyor so we read those bins from the OT layer and then we kind of call the API calls to Oracle Erp and then Oracle WMS so what it does is it does a real-time validation make sure the fruit content is correct to the batch and also make sure there's no uh mismatch or anything what we are running at that particular point of time so when that is matched and then the the bin is allowed to process to the next stage so why is it important so we have about 10 seconds to make the decision whether this bin is allowed to go or not then the call we need to go to Oracle Erp and back and make sure it's all done you can see at the bottom uh the black window which has all the information which takes about 2.148 seconds that's part of our stress test so that is the time critical factor which we need to do and make sure it is done and it's validated this is one of the critical ones as I said 10 seconds you take up two seconds for validation and then the remaining eight seconds to go or the pilot I mean mode been into the processing area uh so once the bin is validated then we do make a call to consume that bin into the badge into our Erp so this is all done touchless no touching nothing involved and it's completely automated um so this is the first use case and going into the Second Use case which is a very similar one which is our Fiji plant so where we used to do the current process a previous process before this was at the end of the day or end of the shift they come up with a spreadsheet and paper they upload these into Oracle Erp so it's a time when you don't have the real-time visibility and any of the other information in our Erp so we looked at what is the next level of uh automation we want to do we we sell like okay can we get this and integrate with our PLC so if you look at the bottom one so we have a palletizer PLC which brings the quality in so as soon as a new palette palette is going through the palletizer so we get that information and then we get the information from Oracle on the current running batch and everything to the OT layer so we combine those two and then we print a label and apply to the palette by itself and as soon as the palette is red we will make the transaction into Oracle so really there's nobody touching it nothing and we have a good connection between the PLC and the Erp so all are running happening at close real time and like you know there's nobody's touching it so this is the level of things we want to go and then we work with operation and make sure like you know we have a close ties with the Erp team so that way we take the automation to the next level so there's a second use case so the third use case is we have a trucks coming in for the Harvest to pick up fruits and deliver to the customer so we we during peak season we get it anywhere close to 200 trucks so all of this the timing is critical even few minutes so we how do we automate this so we said like okay hey let's give the information pre-populate with the QR codes well in advance with an appointment and then when the truck comes in we scan that QR code which has all the information that we make the real-time call to our Erp layer which is WMS and then track management system we make those validations and make sure the driver is here with the right information to pick up the right load and then we release the wave to the shop floor to pick up the pallet and then come to the dock then they are all are assigned to your dock then the truck will send we load the material and then it leaves so this is a significant uh like you know time reduction especially when we have like 200 trucks coming in at Peak time so even a few minutes makes a big difference so this is live now and with all the OT layer talking from scale to the gate to the Erp it's all done real time so with that I'm going to hand over to Jake thank you Ravi for all those very valuable insights from experience with integrating otn ID at the wonderful company truly remarkable to hear about your strategic thinking as well as progress in all of these use cases and also in avoiding many of the pitfalls that we discussed earlier for the rest of this session I would like to discuss how Oracle Fusion can help customers in their journey and minimize the risks while ensuring the fastest time to value so let's start with the bird's eye view of our supply chain and Manufacturing Cloud portfolio in this era of additional transformation the products and services we offer and the way we deliver them are all being transformed as well we still need to continue to be efficient maintain our dedication to Quality promote agility so that's no longer enough to succeed we need a more intelligent supply chain oracle's intelligence supply chain Cloud gives you smarter ways to detect problems and opportunities within and outside the Enterprise decide the best course of action and execute end-to-end business processes that can address those challenges more specifically we need to help our customers be more agile in their decision making as we mentioned speed is the new currency of business and reduce the latencies that exists between the occurrence of an event and the corresponding actions while the scope of this extends across the entire supply chain for this session we'll focus on the role played by itot convergence to increase the speed of decision making and and specifically how oracle's iot intelligent applications help with that so let's take a closer look the primary goal of Oracle iot intelligent applications cloud is to help break down the boundaries that exist between OT and it systems this process can be broken down into three steps integrate discover and execute the first step is to integrate the OT assets such as equipments Factory flow spaces operational processes and other operational entities in the manufacturing workflow to gain a real-time cockpit view of the entire operations after that the data acquired from the different operational components is analyzed in near real time to discover insights such as machine faults operational status such as work order completion events operational anomalies such as increased cycle time and quality issues among many others finally the insights are threat to a roofs engine that can automatically determine the actions if any that must be performed for the events these actions could include work harder completion updates to manufacturing Cloud machine breakdown events as maintenance work orders or production schedule replanning because of unplanned downtime it's also important that there is a closed loop learning available that allows Discovery to improve as more actions are performed and results better understood uh I want to take a deeper dive into oops into the area that is most critical for itot conversions a critical step for itot convergence is ensuring a secure real-time data exchange between OT and ID this problem as many of you may be aware has not been trivial because of the fragmentation that exists in industrial connectivity space there are a wide range of industrial protocols many of the purpose for specific use cases and industries but the progress in the digital transformation spaces acted as a catalyst for industrial oems to Rally around a few connectivity options such as OPC UA modbus mqtt and HTTP rest Oracle IIT intelligent applications support connecting to industrial equipment and Industrial software directly over these protocols enabling a simple way to establish bi-directional connectivity for equipment that don't support these protocols there are other ways to read data we support base64 binary CSV Json data formats Oracle also has a wide range of ecosystem partners that provide specialized industrial gateways for feeding us protocols and other industrial protocols but data acquisition is just the first step the next step is to construct a digital twin that can be used to be used as a digital representation of the equipment Oracle iot apps allow for modeling Digital Trends for any kind of equipment using a no code user interface real-time data from the equipment can be directly mapped into attributes of the digital to an enabling a real-time view as well as the historical visualization of the Telemetry data from that equipment now as you may know different machines produce data at different rates some may produce data every millisecond while Others May produce data only once a minute even within the same machine some attributes May sample at rates of say one Hertz While others could be at one kilohertz so how do you handle these different data rates and ensure that you don't miss information hidden in that data sending data to the cloud for multiple equipment at one kilohertz frequency might be too expensive as well this is where Edge Computing can help or quality applications includes an iot edge Gateway that can run on a wide range of off the shelves Linux based industrial iot Gateway Hardware making deployment really simple the Oracle iot Edge Gateway is built on a containerized environment that allows for remote deployment and configuration of container services making it easy to scale from one to tens or hundreds of gateways within no time but the other important aspect is discovering Analytical in science and this is a huge area of focus for us we have been working hard to make it easy for our lob users to leverage the latest Innovations in machine learning and AI to drive efficiency in 30 to day work some examples of capabilities that can help Drive amazing new insights that can be very difficult to achieve via manual analysis the first one is correlation analysis that allows for correlating operational data such as machine data and quality data with production configuration data such as operators material Etc to identify correlations for instance what factors correlate the most to let's say product quality it could be material type whether the raw material comes from supplier a or supplier b or the machine health uh where what are some configuration parameters that are used to calibrate the machine and how does that affect your product quality one of our customers found that the product quality is directly correlated to the raw material grade above all other production variables so now they already had an idea that this was happening but having the actual insights reflected in your data from all the historical data that they've gathered it's a great validation for efficiency in their decision making similarly we use Advanced time series algorithms to perform multivariate analysis of machine data to understand conditions that can lead to machine failure or performance degradation another great example is how we use AI to optimize preventive maintenance schedules we use historical performance and uptime data of machines to forecast your time to failure this time to fill a metric is then compared to the actual preventive maintenance window to find an optimal maintenance interval so we ensure that that there's maximum utilization of equipment and then using constraint based optimization automatically schedule new maintenance appointments there are many other amazing pre-built analytics capabilities that we don't have time to cover but we can definitely talk to you in a product pretty fun with that background I would like to quickly discuss how one of our customers has successfully used the Oracle Fusion product Suite to drive the additional transformation agenda allcar is an internationally active Industrial and Commercial Group which places its strategic focus on steel and alloy wheels they're in a highly competitive market and they need to find new ways to improve productivity and visibility to stay ahead uh they needed a scalable and a flexible and integrated system to support planning sales procurement and other operations such as even Manufacturing many of the production and maintenance transactions were manual and time consuming uh even though the production was automated and because the data was manual manually collected and not always real time all car execs didn't have the real-time visibility into their company operations so the solution they implemented enable them to do real-time monitoring of software machines and production reporting with iot production monitoring it also helped optimize preventive maintenance to keep the shop flow running at capacity without unexpected downtime so basically through the digital conservation Journey they have realized some of the metrics some of the kpis we discussed earlier enhanced productivity improve user experience increase flexibility and control level of the manufacturing process and and better visibility so um going back to the same rois that we discussed earlier there are many examples of successful Roi from many of our customers so just an example of what folks have been able to achieve uh using uh Oracle Fusion products in their manufacturing transformation digital transformation initiatives we're almost at the end of this session so I'd like to frame all the topics around otrt integration and frame them in the context of the entire digital thread for manufacturing all the supply chain execution Cloud which is a part of the entire Oracle supply chain Fusion supply chain Cloud covers the workflow as shown here from the product design to supply chain planning to manufacturing production scheduling Quality Maintenance in a closed loop Man model that allows for continuous improvement with all these capabilities that extend from the OT environment all the way to the it environment Oracle supply chain execution can help customers throughout their digital manufacturing Journey we believe this eliminates the need for expensive on-prem mes that's uh that may no longer be required because Oracle supply chain execution can cover all aspects of the manufacturing workflow this brings me to the end of our session thanks for joining and I'd also like to thank Ravi for sharing his excellent insights asparting words I'd like to remind you on why Oracle is your partner in digital consummation the company culture is focused on understanding and helping customers and co-creating products in the natural manner we have a strong otit integration solution using our Oracle iot applications and we're doing a large amount of investments in building a suite of capabilities to drive strong digital consummation roadmap for manufacturing we would love to have you as partners in this journey thank you again for joining this session [Music]
2022-12-06