NACFAM: Speeding Up Manufacturing through Greater Connectivity Michelle Pastel Manager Measurements, Controls & Systems Innovation April 9th, 2015 Revised 2/2/2015 Corning Incorporated Founded: 1851 Headquarters: Corning, New York Employees: 34,800 worldwide 2014 Sales: 10 billion • Corning is one of the world’s leading innovators in materials science. For more than160 years, Corning has applied its unparalleled expertise in specialty glass, ceramics, and optical physics to develop products that have created new industries and transformed people’s lives. • Corning succeeds through sustained investment in R&D, a unique combination of material and process innovation, and close collaboration with customers to solve tough technology challenges. Fortune 500 Rank (2014): 343 © 2015 Corning Incorporated 2 Corning Market Segments and Additional Operations Display Technology Environmental Optical Communications Technologies • LCD Glass • Optical Fiber and • Emissions Substrates Cable Control Products – Light-duty gasoline • Glass Substrates • Hardware Optical and vehicles for OLED and Equipment Connectivity – Light-duty and high-performance –Solutions Fiber optic heavy-duty on-road connectivity LCD platforms • Wireless diesel vehicles products Distributed – Heavy-duty nonAntenna Systems road diesel vehicles • Optical Cables for – Stationary Consumer Networks • Copper Connectivity Components Life Sciences • Cell Culture and Bioprocess • Drug Discovery • ADME/Tox • Genomics • Chemistry • Microbiology • General Laboratory Products Specialty Materials • Corning® Gorilla® Glass • Display Optics and Components • Optical Materials • Optical Systems Other Products and Services • Emerging Innovations • Equity Companies – – – – Cormetech, Inc. Dow Corning Corp. Eurokera, S.N.C. Samsung Corning Advanced Glass, LLC (SCG) © 2015 Corning Incorporated 3 Innovation Timeline First low-loss optical fiber 2012 2007 1982 Glass ceramics 1970 Dow Corning silicones 1952 1934 1879 Glass envelope for Thomas Edison’s light bulb Active matrix liquid crystal display (LCD) glass Thin, lightweight cover glass with exceptional damage resistance Ultra-slim, flexible glass for thin and lightweight applications Ultrabendable fiber Label-free screening platform for drug discovery Heat-resistant PYREX® glass Fusion overflow process 1964 1915 Processes for mass producing the television bulb Environmentally conscious LCD glass First alloptical converged cellular and Wi-Fi solution 2013 2006 1972 1947 Ceramic substrates for automotive catalytic converters First EPAregistered antimicrobial cover glass © 2015 Corning Incorporated 4 Growth Through Innovation • Our culture of innovation is built on the foundation of research and development • Our near-term growth will be fueled by several opportunities – Glass substrates for LCD and OLED displays – Ceramic substrates and filters for mobile emissions control systems – Optical fiber, cable, and connectivity solutions for the world’s leading carrier, enterprise, wireless, and consumer networks – Drug discovery tools and solutions – Chemically strengthened, damage-resistant glass – Other advanced optics and specialty glass solutions for the semiconductor, aerospace, defense, astronomy, and metrology industries © 2015 Corning Incorporated 5 Research and Development (R&D) • Our growth is fueled by a commitment to innovation and a passion for conquering complex material and technology challenges • We invest approximately 10% of our sales in R&D • We maximize the results of our R&D by engaging crossfunctional teams and senior leadership at all stages of innovation • Our technology leadership and R&D environment attract and enable the best scientific minds in the world © 2015 Corning Incorporated 6 Deep Core Technology Capabilities – Science & Engineering Corning’s strength is based on a broad portfolio of core technologies… Inorganic Materials and Processes Engineering: - Materials - Optical - Process - Chemical - Electrical - Mechanical Optical Physics and Network Technologies Modeling and Simulation Organic Materials and Processes Core Capabilities Materials Characterization and Processes Network Integration and Connectivity Research Biochemical Sciences and Processes … and the ability to integrate them. Thin Films and Surface Sciences © 2015 Corning Incorporated 7 Awards and Recognitions • Four-time National Medal of Technology winner • Institute of Electrical and Electronics Engineers (IEEE) Milestone Award for the invention of low-loss optical fiber (2012) • Edison Award gold medal in Materials Science for Corning® Gorilla® Glass (2012) • Thomson Reuters Top 100 Global Innovatorsm (2013, 2012, 2011) • Massachusetts Institute of Technology’s list of disruptive innovators (2013) • “Most Innovative Companies” (2013) and “Innovation All-Star” (2010) by Fast Company magazine • The American Ceramic Society Corporate Technical Achievement Award (2010) • One of Fortune magazine’s most admired companies (2010, 2009) © 2015 Corning Incorporated 8 The Corning Values Our Values are the historic strength of our company, guide our every move, and continue to set us apart from others. All seven, All around the world. All the time. © 2015 Corning Incorporated 9 Corning Summary Remarks • We’ve succeeded for 160 years … few other U.S. companies have • How have we done it? – – – – – – Successive waves of innovation Deep understanding of glass and ceramic materials ` Strong process and manufacturing capabilities Collaboration with customers and partners An exceptionally talented and dedicated workforce A conservative financial structure and patient capital © 2015 Corning Incorporated 10 Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org NACFAM - Speeding Up Manufacturing through Greater Connectivity Michelle Pastel - Corning, Inc. Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Smart Manufacturing “Information that drives the next century’s structural shift in manufacturing.” Smart Manufacturing Leadership Coalition (SMLC) – 501c (6) Making real-time info available: • when it is needed, • where it is needed • and in the form it is needed throughout the Manufacturing ecosystem An Industry-Driven Open Architecture Shared Infrastructure SMLC Partnerships American Council for an Energy _Efficient Economy (ACEEE) AMP Socal Alcoa American Institute of Chemical Engineers (AIChE) American Society of Quality ARC Association of State Energy Research and Technology Transfer Institutions (ASERTTI) Corning Department of Energy (DOE) Emerson Electric Power Research Institute General Dynamics General Electric General Mills General Motors Manufacturing Enterprise Solutions Association (MESA) MT Connect National Association of State Energy Officials (NASEO) North Carolina State University Nimbis Services NIST National Science Foundation (NSF) OSISoft Owens Corning Pacific Northwest National Laboratory Pfizer Inc. Praxair Purdue University Rensselaer Polytechnic Institute Rockwell Automation Savigent Software Schneider Electric Society of Manufacturing Engineers Southwest Research Institute - SWRI Sustainable Solutions Texas A&M Engineering Experiment Station (TEES - TAMU) Tulane - PolyRMC University of California, Berkeley University of California, Los Angeles University of Texas - Austin West Virginia University SMLC’s Industry-Driven Strategy Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Implementation Plan: Roadmap: Operations & Review & Refine Collaboration Roles & Technology for SM systems Alignment Action Plan: Implementing 21st SMLC Forum Century Smart Manufacturing Workshop NSF Workshop Establish Work Groups: Identify & Drive Priority areas • • • • Board Meetings, Calls, Advisory Groups, Focused Workshops, etc. DOE Workshop Spin-off parallel activities Membership Expansion 2006-09 Test Bed Platform People Business 2010 2011 2012 2013 AMTech ACCELERATE AIChE Workshop Infrastructure Specification: Increasing SM Platform Definition & Development Forward Technical Meetings SMLC Incorporates as 501c6: DOE, NSF, NIST Awards: $13 million in Project Work to develop SM Platform Prototype Building Capacity & Resources; Leveraging Resources; Advocacy for SM Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org EDI transaction & quality certifications General Mills NetworkedBased Manufacturing Recipe Management Mapping formula into operating recipes Business Systems, ERP Mapping SAP information Into operation Customer Supply Chain Smart Factory Smart Grid Distribution Center FDA Tracking & traceability Green Light Analyze - to put into production Make – right ingredients – confirmation on recipe Release – meet requirements to release Graphics courtesy of Rockwell Automation GMI’s ECO System of “STUFF” Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Demand Driven Supply Chain Green Light to Ship Allergen/Micro WorkFlow Line Schedule Production Order Demand Plan WorkFlow Production History Plant Floor Inventory Direct Consumption Overusage Trace/Recall BOM Validation Core Functions Bin Mgmt Line Supply Yard Mgmt Directed Work Finished Product Inventory Supplier Managed Inv eCOA Optimization Engine Business Applications Optimized Inventory Raw Mat’l Inventory Green Light to Convert Lot Tracking Value Creation Master Data (BOM,Specs,Vendor,Ingredients,FP) Core Systems Data Input MQIS MES SAP ERP SAP MRP SAP APO SAP PLM Red Prairie EERE DOE “Project Smart Manufacturing” EERE DOE “Project Smart Manufacturing” Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Development of an Open Architecture, Widely Applicable Smart Manufacturing Platform Test Bed: Praxair Design Operations Supply Chain Manufacturer (OEM) Data Center Monitoring -- Global Map Distribution/Reseller Retailer Customer Supplier Logistics Dynamic Energy Risk Management & Cross Unit Performance Test Bed: General Dynamics Cutting & Machining www.army.mil Heating & Forging Integrated Line Operations Management Power Mgmt & Energy Grid Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Technical and Business Drivers for Shared Infrastructure Achievable Meaningful Use Goals and Magnitude of Impact Issues Beyond Individual Company • ROI constrained or prohibitive - Requires broader infrastructure investment to scale • Demand-driven efficient use of resources and supplies in more highly optimized plants and supply - Incremental investment difficult – 25% reduction in safety incidents - Requires IT investment with 70% of cost non-value – 25% improvement in energy efficiency - Depends on other companies - supply chain – 10% improvement in overall operating efficiency - Need 80% lower cost implement modeling/simulation – 40% reduction in cycle times - 10x reduction in cost of sensors/sensor infrastructure – 40% reduction in water usage • ROI opportunity comprehensive • Product safety – Product tracking and traceability throughout the supply – – – Multiple systems Integrated global performance metrics Aggregating data • Sustainable production processes for current and future • Installed base of serviceable manufacturing facilities critical industries – $60 B in IT investment – 10x improvement in time to market in target industries – Retrofit – 25% reduction in consumer packaging • Risk • Maintain and grow existing U.S. industrial base – Major change & New business model – Environment for broad innovation – Uncertain about technology, security & IP – 25% revenue in adjacent industries – 25% revenue in new products and services • Organization – 2x current SME’s addressing total market – IT capability lacking or IT not talking to operations – More highly skilled sustainable jobs created – Workforce skills – Collaboration Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Manufacturing Health & Sustainability Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Smart Machine Line Operations In-Production High Fidelity Modeling What is SMART Test Bed Smart Systems Dynamic Decisions Enterprise & Supply Chain Decisions Design, Planning & Model Development Machine product Better management management complex behaviors Performance management global integrated decisions Variability reduction Design models in production Benchmarking Rapid qualification machine-product components interactions products materials Untapped enterprise degrees of freedom in efficiency, performance time Risk and compliance management Product/material in-production ability Tracking traceability genealogy New product, material technology insertion Machine-power manage management Adaptable machine configurations Integrated Business operational computational tradeoff decisions materials engineering External Configurable data partner and analyses for integration into rapid analytics and business model development process www.smartmanufacturingcoalition.org Design Data Prototype Materials & Process Tech Product Manufacturing Control & Automation Macro Layer 10s control loops Time – days Meso Layer 100s control loops Time -hours 1000s control loops Time - minutes Micro Layer In Qualification Service Focus: 10x Multiple Pass Variability Reduction; Supply Chain Information Focus: 100x Event Variability/Tradeoff Adjustment; Dynamic Performance Mgmt.; Integrated Metrics Focus: Insertion, Qualification, ICME, High Fidelity Dynamic Operations Business Systems Smart Manufacturing Leadership Coalition Smart Manufacturing: Multi-Layered Seams, Time, Data & Action - Materials Dynamic Manufacturing Ecosystem Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Smart Manufacturing Platform Bridging Seams Extending the Real-Time Infrastructure Power Mgmt & Energy Grid Heating & Forging Open-Architecture Infrastructure & Marketplace • APPs & Toolkits •Composable Systems • Cloud Deployment • Private/Public IaaS Line Operations Suppliers Applications SM Value Proposition Context Sustainability & Safety Distribution Mapping Customers Data Event Data Production Models Real-Time Data Calibration & Maintenance Sensor Data Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Building Infrastructure Powering Smart Decisions Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org US Mfg Needs Smart Sensors & Systems Need to Overcome Adoption Barriers • Low Initial Cost- open • Low Cost to Install- robust wireless • Easy to Maintain- high uptime, increase mfg efficiencies • Secure • Information- Respect What’s Not Yours • Bridge Workforce Generation Expectations • Make Smart Manufacturing a Prudent Risk with <2 yrs. ROI Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org • • • • • US Mfg Needs Mindset Changes to Win in a Global Economy Expect Information- expect interoperability Think Eco-system Broadly- physical and cyber Integrate Existing Organization Silos- IT & engr Place Increased Value in Data- knowledge Automate What We Know- opens time to solve the next problem • Re-Evaluate Roles- expanded skills required • Expect Lifelong Learning- facilitate achieving it Smart Manufacturing Leadership Coalition www.smartmanufacturingcoalition.org Institute Structure