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How Cummins is embracing disruptive change to stay innovative and attract talent

New skills and ideas are needed to keep up with the digital transformation of manufacturing

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“It’s really hard to say we’re a leading-edge product engineering company if our business tools are dated and do not appeal to the talent we want to attract and retain at Cummins,” said Sherry Aaholm, CIO at 100-year old engine and generator manufacturer Cummins.

Transformative tech and attracting talent are two of the main issues manufacturers need to address in order to stay competitive and grow.

Consider this:

  • 71 percent of manufacturing executives say they need to innovate faster to stay relevant, according to a Fujitsu report
  • In the U.S., the manufacturing industry needs 3.4 million workers over the next decade just to replace retirees, according to The Manufacturing Institute.

The Talent Gap

Replacing retirees is only part of the talent shortage challenge for manufacturers. The other is finding workers with the right skills.

Related: Designing Manufacturing’s Digital Future

“We will need people who are able to manage these new operations, manage the robotics, to program them and maintain them,” said François Barbier, the president of global operations and components at Flex. “People who used to produce things with their hands, they’ll start to produce things with their brains.”

Gone are the days where a high school degree is enough to have a lucrative career in manufacturing, said Cummins Chairman and CEO Tom Linebarger, speaking on a panel about manufacturing and logistics, adding: “It hasn’t been that way for a long time.”

[Download]: Designing Manufacturing’s Digital Future

Manufacturing jobs are still here, they just look different, says Linebarger. As new tech emerges, workers need to have the skills necessary to perform maintenance and programming, he says. Rather than hiring for traditional roles in manufacturing, companies are hiring for tech-oriented roles where workers are tasked with not just building, but improving.

Staying Innovative

To keep their innovation sharp, Cummins has also created a Digital Accelerator where ideas around manufacturing, the customer or supply-chain are tested and, if successful, then commercialized.  

The focus is on three key themes,” says CIO Aaholm. “How can we improve product quality and up-ime availability? How can we help with new services for our customers? And how can we find value within the company?”

[Download]: Designing Manufacturing’s Digital Future

One example from the accelerator is the Cummins X15™ engine. Cummins says it has reduced the overall cost of ownership by as much as 40 percent, compared with a Cummins 2010 ISX15 engine, and it provides between a 2 percent and 12 percent gain in fuel economy.

The focus on innovation helps attract and retain customers too. John Savage, the executive vice president of transportation services company, Savage Services, says: “Cummins has always been a technology leader, helping us to meet new emission standards whether we’re operating in California or across the nation. When it comes to reliability, Cummins is progressive. They don’t sit back on their laurels.”

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Manufacturing

Tesla wants its factory workers to wear futuristic augmented reality glasses on the assembly line

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  • Tesla patent filings reveal plans for augmented reality glasses to assist with manufacturing.
  • Factory employees has previously used Google Glass in its factory as recently as 2016.

Tesla‘s Model 3 might have “biblical simplicity” according to one Wall Street analyst, but building any car still involves hundreds of nuts, bolts, and welds.

To cut down on the number of fit and finish issues — like the “significant inconsistencies” found by UBS— Tesla employees on the assembly line could soon use augmented reality glasses similar to Google Glass to help with car production, according to new patent filings.

Last week, Tesla filed two augmented reality patents that outline a futuristic vision for the relationship between humans and robots when it comes to manufacturing. The “smart glasses” would double as safety glasses, and would help workers identify places for joints, spot welds, and more, the filings say.

Here’s how it works:

Tesla/USPTO

And here’s the specific technical jargon outlining the invention (emphasis ours):

The AR device captures a live view of an object of interest, for example, a view of one or more automotive parts. The AR device determines the location of the device as well as the location and type of the object of interest. For example, the AR device identifies that the object of interest is a right hand front shock tower of a vehicle. The AR device then overlays data corresponding to features of the object of interest, such as mechanical joints, interfaces with other parts, thickness of e-coating, etc. on top of the view of the object of interest. Examples of the joint features include spot welds, self-pierced rivets, laser welds, structural adhesive, and sealers, among others. As the user moves around the object, the view of the object from the perspective of the AR device and the overlaid data of the detected features adjust accordingly.

As Electrek points out, Tesla has previously been employing Google Glass Enterprise as early as 2016, though it’s not clear how long it was in use.

Tesla has a tricky relationship with robotics in its factory. In April, CEO Elon Musk admitted its Fremont, California factory had relied too heavily on automated processes. Those comments, to CBS This Morning, came after criticism from a Bernstein analyst who said “We believe Tesla has been too ambitious with automation on the Model 3 line.”

Still, the company seems to be hoping for a more harmonious relationship between human and machine this time around.

“Applying computer vision and augmented reality tools to the manufacturing process can significantly increase the speed and efficiency related to manufacturing and in particular to the manufacturing of automobile parts and vehicles,” the patent application reads.

 

This article was originally published on Business Insider. Copyright 2018.

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Manufacturing

Dow Chemical envisions the future of manufacturing

Dow Chemical, one of the world’s biggest chemical producers, is taking a leadership role in the digital transformation of its industry.

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Despite its foundation in the pure science of chemistry, the chemicals manufacturing industry doesn’t exactly conjure high-tech images when people think of what goes into making chemical products.

And yet, the chemicals industry is poised to be the poster child for the very high-tech Industry 4.0 revolution, which takes existing manufacturing processes, and infuses them with digital DNA, thanks to the IIoT.

Dow Chemical, one of the world’s biggest chemical producers, is already taking a leadership role in the digital transformation of its industry. “We have significant amounts of data from our instrumentation and process sensors to use with the new analytics and deep-learning technologies,” Billy Bardin, Dow’s Global Operations Technology Center director, told Chemical Engineering.

Related: Stepping into Digital with IOT – 14 Cases

Dow, like many other chemical companies, has been using sensor tech for decades, but the IIoT represents an entirely new model for how data from these sensors becomes part of the company’s end-to-end process. Not only does the IIoT offer optimization of the production process, it can improve efficiency, while reducing both energy consumption, and operational cost.

Safety — a key consideration given the stakes — can also be improved. Many chemical producers, including Dow, are still manufacturing at facilities that date back 50 years or more. Modernizing these plants is a constant effort, but with the advent of the IIoT, gains in situational awareness accompany the gains in efficiency and productivity.

[Download] Stepping into Digital with IOT – 14 Cases

Recently, the company enlisted the help of Schneider Electric to digitize its Carrollton, KY processing plant, giving teams better data visibility for pumps, valves and motors. The roadmap also includes the addition of Schneider’s HART devices to enable operations and maintenance teams to remotely view equipment health or thresholds for valves in order to manage them better, according to Automation World. The improvements in preventative maintenance this data enables are key to better employee safety, as well as protecting the environment.

Better efficiency, cost savings, and greater safety? Strong arguments for better chemistry through digitization.

[Download] Stepping into Digital with IOT – 14 Cases

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Manufacturing

Blockchain can reduce supply chain risks

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In the world of modern businesses, supply chains are becoming increasingly complex and such complexity increases as supply chains cross multiple countries and involve multiple interfaces with third parties. To address this, many are turning to blockchain.

According to Supply Chain Management Review, upstream are the suppliers who create goods and services used in a company’s own operations, such as raw components or materials. The downstream supply chain efficiently distributes a company’s products or services to its customers. Each stage, both upstream and downstream, needs to be proactively managed to minimize quality, financial, confidentiality, operational, reputational and legal risks.

Mounting supply chain challenges for businesses

The challenge faced in the modern, interconnected world is the growing complexity of supply chains. This complexity presents risks, and these include goods falling outside of required storage parameters and the risk of contamination or counterfeiting. It is incumbent upon the manufacturer to perform a risk assessment, which can involve:

  • Understanding which products are transported and to where.
  • Breaking the transportation chain into steps.
  • Assessing each step from sender to recipient. Consider what will happen should delays arise at any stage of the transport route.
  • Assessing for how long the cargo remains at each step.
  • Assessing effectiveness of anti-counterfeiting measures and how these can be assessed? Such as by using anti-tamper proof locks or seals.
  • Considering environmental conditions at each step (this may need to extend to seasonality).
  • Understanding the impact of temperature and humidity.
  • Understanding the suitability of the container.
  • Understanding the impact of shock and vibration on the goods and the packaging. For example, how robust is the packaging? Have drop and rotation tests been performed?

Blockchain offers innovative solution

Many companies are now seeking to address these risks with blockchain technology. In terms of addressing supply chain risks, blockchain enables the transmission of data and information to all users of the supply chain network on a real-time basis. This means that when goods move from point A to point B, all of those in the supply chain are made aware at the same time. Should a change occur, such as a switch to a different distributor every actor is made aware and the system can be configured so that each party would need to agree such a change.

A second benefit is with the secure transmission of correct information between the users of the supply chain network. The cryptographic nature of this builds in security into the information exchange. A third example is with a bridge to the Internet of Things and devices like radio-frequency identification( RFID) transmitters. This is a technology whereby digital data encoded in RFID tags or smart labels are securely and digitally captured by a reader via radio waves. Blockchain can be especially handy in linking physical goods to serial numbers, bar codes, digital tags like RFID.

Based on these benefits, some distributors are searching for ways to leverage blockchain innovations to increase profits and strengthen relationships across the supply chain.

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