Interesting facts emerge from financial report.

15/05/2017
E+H reports sales flat, but sees growth in Ireland, reports Processingtalk.info‘s  Nick Denbow from Basel.

This year, Endress+Hauser expanded the presentation of their annual financial results, inviting journalists from not only Germany and Switzerland, but including others from Belgium, the Netherlands and Great Britain. In all 70+ attendees heard Klaus Endress and Matthias Altendorf say that the consolidated Group sales fell slightly between 2015 and 2016, by 0.2%, achieving Euro2.1Bn. This fall was actually only because of currency fluctuations. “Currencies created a headwind for us last year,” said Altendorf. Working from the value of sales in local currencies, sales in total actually increased by 2.1%. Whilst the Group is family owned, their annual report is published and audited to the standards expected of any other international business.

CEO Matthias Altendorf emphasised that “When compared to overall industry growth, we held our own”. E+H performed well in Europe, but sales in America declined. Africa and the Middle East experienced solid growth, but in the Asia-Pacific region business stagnated.

Within Europe, the best performances for E+H came from Ireland, Italy and Finland. The best performing sectors in all countries were food & beverage, life sciences, and water & waste water. Overall business declined in oil & gas, chemicals and primary industries like metals. The power and energy industry sectors showed good performance outside Germany, where E+H also felt the effect of weak German exports and some internal restructuring. The oil & gas decline badly affected sales in USA, UK and Norway, although the UK sales centre gave a good performance by aligning efforts with other active market sectors.

Investment continues.

Production

E+H plans for investment and growth continue for the current year. Earlier in the week a new factory extension was opened in Reinach, where flow products are manufactured. (see Read-out Signpost – “Flowmeter output growth requires new facilities” – 5 May 2017).  The journalists were given a tour of the manufacturing facility in Maulberg (D), where a new extension to the production area is in operation, and a new NMi level measurement system calibration facility for radar based systems has just been completed. This is certified suitable for calibration of the Micropilot NMR81 radar system, working at 80GHz, which achieves a +/-0.5mm accuracy over a 30m range, for use in oil storage tanks and oil terminals. There are plans now to extend this calibration facility to allow such calibration out to 40metres, as well as to extend the factory yet further: 1912 people work at E+H Maulburg, and 5200 people in the Basel region, out of the total E+H staff of 13,000.

Analytical measurements
The biggest growth area in E+H is actually in the analytical instruments that use Raman spectroscopy to analyse liquid and gas streams on-line. The major industries now applying this technique are within the life sciences sector, where immediate analysis of input and both gaseous and liquid effluent streams enables much closer control of biochemical and fermentation processes. Indeed the 2017 issue of the E+H corporate magazine “Changes” features a major focus on new applications in the Life Sciences industries.

Other new analytical techniques are developed for monitoring water treatment processing, for example in the new Swiss plants which by law have to have a fourth stage of purification, to remove hormones, phosphorus and other drug residues. The strength of E+H here derives from their strategic decision a few years ago to invest in the process analytical area, particularly in the field of spectroscopy, acquiring Kaiser Optical, Analytik Jena and SpectraSensors. “Our analytics strategy has been validated by the market,” said Matthias Altendorf.

Bundling IIoT activities

Digitization

The acquisition of German SensAction AG in early 2017 also ties in with Strategy 2020+ which was rolled out last year. The company, headquartered in Coburg (D), manufactures innovative systems for measuring concentrations in liquids. Endress+Hauser is tackling the challenges of digitalization by bundling a number of activities. A new subsidiary in Freiburg in Breisgau,(D), is working exclusively on products, solutions and services related to the Industrial Internet of Things (IIoT).

The significance of digitalization can also be seen in the growing number of patent registrations. There were 273 first filings in 2016. The intellectual property rights portfolio thus boasts more than 7,000 active patents. R&D spending rose to 7.8 percent of sales. Endress+Hauser introduced 64 new products to the market. “We are investing in innovation for our customers,” underlined the CEO.

Trends in automation.
The focus for E+H sales and their customer base is broadly on automation engineers, so it was interesting to hear Matthias Altendorf comment that the statistics for industrial output show that the Britain has now dropped out of the top 10 countries in terms of automation business activity, whereas they had held a prominent position there some years ago.

The other aspect of interest was that there are distinct differences between countries, in terms of the sex of the engineers involved in the major projects served by E+H. In Germany they are mostly male, whereas the majority of engineers in Turkey are female. In South Korea and India there are high percentages of female engineers (and engineering journalists). Also, by industry, it is noticeable that in the biochemical and life science sectors the engineers are predominantly female.

 @Endress_Hauser #PAuto #IoT

PICTIÚIRÍ: Industry 4.0 concept reviewed in Limerick.

13/04/2017
EPLAN joined forces with ABB, DesignPro, Douglas Automation, Igus, Industrial Society of Automation (Ireland Section ISA), Omron, Panasonic, Prion PLM, Portalis, Rittal Ireland, Rockwell Automation, Siemens, SL Controls and Weidmuller to bring Industry 4.0 to the Limerick Institute of Technology.
More Pictures on Twitter.
The LimerickIT feed (4 pics).
Abb Feed (1 pic)
Other pics retweeted on Eplan UK Feed.

In the wake of the next industrial revolution, EPLAN hosted the event at The Limerick Institute of Technology with the aim of discussing the German concept, Industry 4.0. The event will allowed companies to understand what 4.0 means and how existing and near future technologies can help them move towards becoming a smart factory which ultimately produce machines and products that effectively talk to one another.

Industry 4.0 (Industrie 4.0) is a high-tech strategy adopted by the German government which promotes the computerisation of traditional industries such as manufacturing. The goal is to create intelligent factories (smart factory) that focus on cyber physical systems primarily consisting of communication technologies, software, senses and processes – all of which have the potential through cloud technology to communicate and interact with each other in an intelligent way.

The well attended event had over 150 registered to attend and many more came without registering.

These are some pictures to give a flavour of the event.

Busy associated exhibition area.

Professor Vincent Cunnane, President of LIT welcomes delegates!

Delegates await the next speaker.

 

Dr Frances Hardiman, Head of Department Electrical and Electronic Engineering discusses the place of LIT in the engineering community.

EPLAN’s Ken Christie welcomes delegates and addresses his company’s place in Industrie 4.0.

Justin Leonard of Igus.

Micahel Gartz of Panasonic

Declan McDevitt of Siemens

Another view of the exhibition area.

@EPLAN_UK @LimerickIT #PAuto #Industry4

Is AI all it is cracked up to be?

28/03/2017
In this article, Stephen Parker, CEO of Parker Software, examines whether artificial intelligence is all it’s cracked up to be.

If planet Earth had been created one year ago, the human species would be just ten minutes old. Putting this into context, the industrial era would have kick-started a mere two seconds ago. Thanks to human influence, the pace of technological advancement on Earth is astonishing. However, we are already on the verge of the next change. The potential of artificial intelligence has been discussed by scientists since the 1950s and modern technological advances are finally bringing this technology to the masses. 

Research suggests that artificial intelligence could be as ‘smart’ as human beings within the next century. Originally, human programmers were required to handcraft knowledge items painstakingly. Today, however, one-off algorithms can teach machines to take on and develop knowledge automatically, in the same way a human infant would. Artificial intelligence has reached a critical tipping point and its power is set to impact every business, in every industry sector.

Already, 38 per cent of enterprises are using artificial intelligence in their business operations and this figure is set to grow to 62 per cent by 2018. In fact, according to predictions by Forrester, investments in artificial intelligence technology will increase three-fold in 2017. These figures mean that the market could be worth an estimated $47 billion by 2020. 

Intelligent assistance
One of the most notable applications of AI from the past few years is the creation of intelligent assistants. Intelligent assistants are interactive systems that can communicate with humans to help them access information or complete tasks. This is usually accomplished with speech recognition technology; think Apple’s Siri, Microsoft’s Cortana or Amazon’s Alexa. Most of the intelligent assistants that we are familiar with today are consumer facing and are somewhat general in the tasks they can complete. However, these applications are now making their way into more advanced customer service settings.

While there is certainly a space for these automated assistants in the enterprise realm, there is a debate as to whether this technology could fully replace a contact centre agent.

Automation is widely recognised as a valuable tool for organisations to route the customer to the correct agent. However, completely handing over the reins of customer management to a machine could to be a step too far for most businesses. Even the most advanced AI platforms only hold an IQ score equivalent to that of a four-year-old, and naturally, businesses are unlikely to entrust their customer service offering to a child.

The human touch
Automated processes are invaluable for speeding up laborious processes and completing monotonous customer service tasks. But as any customer service expert will tell you, the human touch is what elevates good service to an excellent experience for the customer. Simple tasks will no doubt be increasingly managed and completed using automation and AI-enabled agent support systems, whereas complex issues will still require the careful intervention of a human agent.

During a TED Talk on artificial intelligence, philosopher and technologist Nick Bostrom claimed that “machine intelligence is the last invention that humanity will ever need to make.” However, contact centre agents needn’t hang up their headsets just yet.  Artificial intelligence won’t be replacing the call centre agent any time soon. The only guarantee is that the role of a call centre agent will continue to evolve after all, the industrial revolution was only two seconds ago.

@ParkerSoftware #PAuto

Cybersecurity pitfalls!

09/03/2017

Jonathan Wilkins, marketing director of obsolete industrial parts supplier, EU Automation discusses three cyber security pitfalls that industry should prepare for – the weaponisation of everyday devices, older attacks, such as Heartbleed and Shellshock and vulnerabilities in industrial control systems.

IBM X-Force® Research
2016 Cyber Security Intelligence Index

In 2016, IBM reported that manufacturing was the second most cyber-attacked industry. With new strains of ransomware and other vulnerabilities created every week, what should manufacturers look out for in new year?

‘Weaponisation’ of everyday devices
The advantages of accessing data from smart devices include condition monitoring, predictive analytics and predictive maintenance, all of which can save manufacturers money.

However, recent attacks proved that these connected devices can quickly become weapons, programmed to attack the heart of any business and shut down facilities. In a recent distributed denial of service (DDOS) attack, everyday devices were used to bring down some of the most visited websites in the world, including Twitter, Reddit and AirBNB.

Such incidents raise a clear alarm signal that manufacturers should run their production line on a separate, highly secure network. For manufacturers that use connected devices, cyber security is even more important, so they should conduct regular cyber security audits and ensure security protocols are in place and up-to-date.

Don’t forget the oldies
According to the 2016 Manufacturing Report, manufacturers are more susceptible to older attacks, such as Heartbleed and Shellshock. These are serious vulnerabilities found in the OpenSSL cryptographic that allows attackers to eavesdrop on communications and steal data directly from users.

Industrial computer systems generally aren’t updated or replaced as often as consumer technology, which means that some still have the original OpenSSL software installed. A fixed version of the programme has since been released, meaning that manufacturers can avoid this type of attack by simply updating their system.

Keeping industrial control
Manufacturers understand the need to protect their networks and corporate systems from attacks, but their industrial control systems also pose a risk. If an attacker deploys ransomware to lock down manufacturing computers, it could cause long periods of downtime, loss of production and scrap of products that are being made when the attack happens.

This is particularly true in the era of Industry 4.0, where devices are connected and processes are automated. One of the most effective means of safeguarding automated production systems is cell protection. This form of defence is especially effective against man-in-the-middle attacks, whereby the attacker has the ability to monitor, alter and inject messages in a communications system.

In its report, IBM also stated that cyber security awareness in the manufacturing industry is lower than other sectors. The truth is that any company can be the target of a cyber attack. The only way to avoid a cyber security breach is by planning ahead and preparing for the unexpected.

#PAuto @StoneJunctionPR @IBMSecurity

Communication analysis: Industrial Ethernet & Wireless v Fieldbus.

06/03/2017

Industrial Ethernet and Wireless growth is accelerated by the increasing need for industrial devices to get connected and the Industrial Internet of Things. This is the main finding of HMS Industrial Networks’ annual study of the industrial network market. Industrial Ethernet now accounts for 46% of the market (38 last year). Wireless technologies are also coming on strong, now at 6% (4) market share. Combined, industrial Ethernet and Wireless now account for 52% of the market, while fieldbuses are at 48%.

Fieldbus vs. industrial Ethernet and wireless
HMS’s estimation for 2017 based on number of new installed nodes in 2016 within Factory Automation. The estimation is based on several market studies and HMS’s own sales statistics

HMS Industrial Networks now presents their annual analysis of the industrial network market, which focuses on new installed nodes within factory automation globally. As an independent supplier of products and services for industrial communication and the Internet of Things, HMS has a substantial insight into the industrial network market. Here are some of the trends they see within industrial communication in 2017.

network-shares-according-to-hms-2017-jpg_ico500
Industrial Internet of Things is boosting Industrial Ethernet growth
According to HMS, industrial Ethernet is growing faster than previous years, with a growth rate of 22%. Industrial Ethernet now makes up for 46% of the global market compared to 38% last year. EtherNet/IP and PROFINET are tied at first place, with PROFINET dominating in Central Europe, and EtherNet/IP leading in North America. Runners-up globally are EtherCAT, Modbus-TCP and Ethernet POWERLINK.

Anders Hanson

Anders Hanson

“We definitely see an accelerated transition towards various industrial Ethernet networks when it comes to new installed nodes,” says Anders Hansson, Marketing Director at HMS. “The transition to industrial Ethernet is driven by the need for high performance, integration between factory installations and IT-systems, as well as the Industrial Internet of Things in general.”

Wireless is redefining the networking picture
Wireless technologies are growing quickly by 32% and now accounts for 6% of the total market. Within Wireless, WLAN is the most popular technology, followed by Bluetooth. “Wireless is increasingly being used by machine builders to realize innovative automation architectures and new solutions for connectivity and control, including Bring Your Own Device (BYOD) solutions via tablets or smartphones,” says Anders Hansson.

Fieldbus is still growing, but the growth is slowing down
Fieldbuses are still the most widely used type of networks with 48% of the market. Fieldbuses are still growing as many users ask for the traditional simplicity and reliability offered by fieldbuses, but the growth rate is slowing down, currently at around 4% compared to 7% last year. The dominant fieldbus is PROFIBUS with 14% of the total world market, followed by Modbus-RTU and CC-Link, both at 6%.

Regional facts
In Europe and the Middle East, PROFIBUS is still the leading network while PROFINET has the fastest growth rate. Runners up are EtherCAT, Modbus-TCP and Ethernet POWERLINK.
The US market is dominated by the CIP networks where EtherNet/IP has overtaken DeviceNet in terms of market shares.
In Asia, a fragmented network market is very visible. No network stands out as truly market-leading, but PROFIBUS, PROFINET, EtherNet/IP, Modbus and CC-Link are widely used. EtherCAT continues to establish itself as a significant network, and CC-Link IE Field is also gaining traction.

More and more devices are getting connected
“The presented figures represent our consolidated view, taking into account insights from colleagues in the industry, our own sales statistics and overall perception of the market,” says Anders Hansson. “It is interesting to see that industrial Ethernet and Wireless combined now account for more than half of the market at 52%, compared to fieldbuses at 48%. The success of a series of industrial Ethernet networks and the addition of growing Wireless technologies confirms that the network market remains fragmented, as users continue to ask for connectivity to a variety of fieldbus, industrial Ethernet and wireless networks. All in all, industrial devices are getting increasingly connected, boosted by trends such as Industrial Internet of Things and Industry 4.0. From our point of view, we are well-suited to grow with these trends, since HMS is all about ‘Connecting Devices.’”

 @HMSAnybus #PAuto #IoT

Cybersecurity at the heart of the Fourth Industrial Revolution.

08/02/2017
Ray Dooley, Product Manager Industrial Control at Schneider Electric Ireland examines the importance of maintaining security as we progress through Industry 4.o.
Ray Dooley, Schneider Electric Ireland

Ray Dooley, Schneider Electric Ireland

A technical evolution has taken place, which has made cyber threats more potent than at any other time in our history. As businesses seek to embrace Industry 4.0, cybersecurity protection must be a top priority for Industrial Control Systems (ICS). These attacks are financially crippling, reduce production and business innovation, and cost lives.

In years gone by, legacy ICS were developed with proprietary technology and were isolated from the outside world, so physical perimeter security was deemed adequate and cyber security was not relevant. However, today the rise of digital manufacturing means many control systems use open or standardised technologies to both reduce costs and improve performance, employing direct communications between control and business systems. Companies must now be proactive to secure their systems online as well as offline.

This exposes vulnerabilities previously thought to affect only office and business computers, so cyber attacks now come from both inside and outside of the industrial control system network. The problem here is that a successful cyber attack on the ICS domain can have a fundamentally more severe impact than a similar incident in the IT domain.

The proliferation of cyber threats has prompted asset owners in industrial environments to search for security solutions that can protect their assets and prevent potentially significant monetary loss and brand erosion. While some industries, such as financial services, have made progress in minimising the risk of cyber attacks, the barriers to improving cybersecurity remain high. More open and collaborative networks have made systems more vulnerable to attack. Furthermore, end user awareness and appreciation of the level of risk is inadequate across most industries outside critical infrastructure environments.

Uncertainty in the regulatory landscape also remains a significant restraint. With the increased use of commercial off-the-shelf IT solutions in industrial environments, control system availability is vulnerable to malware targeted at commercial systems. Inadequate expertise in industrial IT networks is a sector-wide challenge. Against this backdrop, organisations need to partner with a solutions provider who understands the unique characteristics and challenges of the industrial environment and is committed to security.

Assess the risks
A Defence-in-Depth approach is recommended. This starts with risk assessment – the process of analysing and documenting the environment and related systems to identify, and prioritise potential threats. The assessment examines the possible threats from internal sources, such as disgruntled employees and contractors and external sources such as hackers and vandals. It also examines the potential threats to continuity of operation and assesses the value and vulnerability of assets such as proprietary recipes and other intellectual properties, processes, and financial data. Organisations can use the outcome of this assessment to prioritise cybersecurity resource investments.

Develop a security plan
Existing security products and technologies can only go part way to securing an automation solution. They must be deployed in conjunction with a security plan. A well designed security plan coupled with diligent maintenance and oversight is essential to securing modern automation systems and networks. As the cybersecurity landscape evolves, users should continuously reassess their security policies and revisit the defence-in-depth approach to mitigate against any future attacks. Cyber attacks on critical manufacturers in the US alone have increased by 20 per cent, so it’s imperative that security plans are up to date.

Upskilling the workforce
There are increasingly fewer skilled operators in today’s plants, as the older, expert workforce moves into retirement. So the Fourth Industrial Revolution presents a golden opportunity for manufacturing to bridge the gap and bolster the workforce, putting real-time status and diagnostic information at their disposal. At the same time, however, this workforce needs to be raised with the cybersecurity know-how to cope with modern threats.

In this regard, training is crucial to any defence-in-depth campaign and the development of a security conscious culture. There are two phases to such a programme: raising general awareness of policy and procedure, and job-specific classes. Both should be ongoing with update sessions given regularly, only then will employees and organisations see the benefit.

Global industry is well on the road to a game-changing Fourth Industrial Revolution. It is not some hyped up notion years away from reality. It’s already here and has its origins in technologies and functionalities developed by visionary automation suppliers more than 15 years ago. Improvements in efficiency and profitability, increased innovation, and better management of safety, performance and environmental impact are just some of the benefits of an Internet of Things-enabled industrial environment. However, without an effective cybersecurity programme at its heart, ICS professionals will not be able to take advantage of the new technologies at their disposal for fear of the next breach.

@SchneiderElec #Pauto #Industrie40


Systems integration for Industrie 4.0.

22/11/2016
The latest trends and challenges in systems integration.

Our world is getting smaller every day. Never before have remote locations been more accessible thanks to communications technology, smartphones and the internet. Connected devices have infiltrated every aspect of our lives, including the most traditional industry sectors. Here, Nick Boughton, sales manager of Boulting Technology, discusses the challenges connectivity poses for industry, particularly with regard to systems integration and the water industry.

boulting_industrie_4-0One question industry has been unsuccessful in answering refers to the number of connected devices that exist in the world at the moment. Gartner says that by 2020, the Internet of Things will have grown to more than 26 billion units. According to Cisco, there will be 10 billion mobile-ready devices by 2018, including machine to machine – thus exceeding the world population.

The Industrial Internet of Things

Only fifteen years ago, an industrial plant operated on three separate levels. You had the plant processes or operational technology (OT), the IT layer and in between stood the grey area of middleware – connecting management systems to the shop floor. The problem in most enterprises was that the commercial and production systems were entirely separate, often as a deliberate policy. Trying to connect them was difficult not only because of the divergence in the technology, but also the limited collaboration between different parts of the organisation. For these reasons successful implementation of middleware was rare.

Fast forward to today’s smart factory floor that uses the almost ubiquitous Ethernet to make communications as smooth as possible. Supporting the new generation of networking technologies is an increased flow of data, collected and analysed in real-time. However, data is only useful when you can decipher and display it. The next step to industry nirvana is using relevant data for better decisions and predictive analysis, in which the system itself can detect issues and recommend solutions.

Smart manufacturing is based on a common, secure network infrastructure that allows a dialogue – or even better, convergence – between operational and information technology.

The trend goes beyond the factory floor and expands to big processes like national utilities, water treatment and distribution, energy and smart grids, everything in an effort to drive better decision making, improve asset utilisation and increase process performance and productivity.

In fact, some water and energy companies are using the same approach to perform self-analysis on energy efficiency, potential weak points and the integration of legacy systems with new technologies. In a highly regulated and driven sector like utilities, maximising assets and being able to make predictions are worth a king’s ransom.

System integration challenges
System integration in this connected industry landscape comes with its challenges, so companies need to keep up to speed and get creative with technology. Keeping existing systems up to date and working properly is one of the main challenges of industry and big processes alike.

Finally, ensuring your system is secure from cyber threats and attacks is a new challenge fit for Industry 4.0. Connecting a system or equipment to a network is all fine and dandy, but it also brings vulnerabilities that weren’t there before.

Systems integrators relish a challenge and they’re very good at adapting to new technologies. For this reason, some systems integrators have started working closely with industrial automation, IT and security experts to help overcome the challenges posed by Industrie 4.0.

Regardless of whether we’re talking about companies in utilities, manufacturing or transportation, the signs are showing that companies want to get more from their existing assets and are retrofitting systems more than ever.

Of course, retrofitting isn’t always easy. In many cases, upgrading a system without shutting it down is like trying to change the brakes on a speeding bus – impossible. However, unlike the bus scenario, there is usually a solution. All you have to do is find it.

Flexibility is essential for good systems integrators. Being familiar with a wide range of systems and working with different manufacturers is the best way to maximise industry knowledge and expertise, while also keeping up to date with the latest technologies. At Boulting Technology, we partner up with market leaders like Rockwell Automation, Siemens, Mitsubishi, Schneider, ABB and others, to design and supply tailor-made systems integration solutions for a diverse range of industries, processes and platforms.

The world might be getting smaller and we might be more connected than ever before, but some things never change. Relevant experience, partnerships and the desire to innovate are as valuable as they have ever been in this connected new world of Industrie 4.0.

@BoultingTech #PAuto #IoT #Industrie4 @StoneJunctionPR