1. Eye of the Storm: The Environment
for Manufacturing and Automation
in 2009 and Beyond
Larry O’Brien Craig Resnick
Research Director Research Director
ARC Advisory Group ARC Advisory Group
lobrien@ARCweb.com cresnick@ARCweb.com

2. Outline
 Where are We Now?
 Current Climate and Outlook for Manufacturing
 Impact on Emerging vs. Industrialized Economies
 Current Climate and Outlook for Automation
 Impact on Emerging vs. Industrialized Economies
 How are Different Industries Affected?
 Where are We Going?
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3. Where are we now?
 Recession is global
 Recent economic news is pretty much all bad
 Manufacturing is being hit hard
 Investments still need to be made!
 Curbing investment in certain sectors now could
have negative consequences down the line
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4. The Global Recession
 US has been in recession since December 2007
 Europe officially fell into recession in November
2008
 China economic growth dips below 10 percent for
first time in three years
 “After years of boom, China's GDP growth has now
slowed for the last five consecutive quarters.” –
October 2008 Report
 “Brazil’s economy may grow as little as 1.5
percent this year as the global recession reduces
demand for commodities and curbs consumer
spending, said Itau Corretora de Valores SA, the
brokerage unit of the nation’s biggest bank.” --
Bloomberg
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5. Impact on Manufacturing: A look at Recent
PMIs from Around the World
 PMIs, or Purchasing Managers Indices are a good
indicator of overall health of manufacturing.
 Shows purchasing manager trends in orders for
materials.
 Number of Below 50 indicates a general
contraction in manufacturing.
 “At 33.2 in December, the JPMorgan Global
Manufacturing PMI posted its weakest ever
reading and has sunk to new lows in each month
of Q4 2008. Based on the average reading for the
headline PMI, the performance of the worldwide
manufacturing sector through 2008 is the worst
for a calendar year since 2001.”
5
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6. December 2008 Manufacturing ISM Report On
Business
Month PMI Month PMI
Dec 2008 32.4 Jun 2008 50.2
Nov 2008 36.2 May 49.6
2008
Oct 2008 38.9 Apr 2008 48.6
Sep 2008 43.5 Mar 2008 48.6
Aug 2008 49.9 Feb 2008 48.3
Jul 2008 50.0 Jan 2008 50.7
Average for 12 months — 45.6
High — 50.7
Low — 32.4
“Manufacturing contracted in December as the PMI registered
32.4 percent, 3.8 percentage points lower than the 36.2
percent reported in November. This is the lowest reading
since June 1980 when the PMI registered 30.3 percent.”
6
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7. China Manufacturing PMI
(Jan1, 2009, CEP News) - CLSA's Chinese performance of manufacturing index
grew to 41.2 in December from 40.9 in November, according to Markit.
The index has been below 50 - indicating contraction - since August 2008.
"Chinese manufacturing activity was very weak in December. Output contracted
at a record pace, employment fell for the fifth month and work in hand declined,"
said Eric Fishwick, head of CLSA Economic Research. "With five back-to-back
PMIs signalling contraction, the manufacturing sector, which accounts for 43% of
the Chinese economy, is close to technical recession," he said.
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8. European Manufacturing PMIs
BERLIN, Jan 2 (Reuters) - Collapsing orders sent Germany's manufacturing sector into
its biggest contraction in more than 12 years in December 2008, even though a slump in
input costs allowed producers to cut their prices, a survey showed on Friday.
The headline index in the Markit Purchasing Managers' Index (PMI) for Europe's biggest
economy fell to 32.7 in December from 35.7 in November. The fall took the index deeper
below the 50 threshold separating contraction from expansion.
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9. Industrial Production and Manufacturing
Capacity Utilization in the US
“Industrial production decreased 0.6 percent in November with declines widespread
across industries. The drop in output in September was revised down, and the
rebound in October was revised up, in large part because both the decrease due to
the September hurricanes and the subsequent partial recovery in October were
larger than previously reported. “ – US Fed
9
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10. Industrial Production and Manufacturing
Capacity Utilization in Europe
Source: Eurostat
10
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11. Another Key Indicator: the Price of Oil
 Lower prices have
stalled capital
investment and
caused project delays
 Long-term demand is
still increasing
 Lack of capital
investment will cause
slingshot effect as
prices begin to
increase again
Pending Legislation in U.S. to Better Control
Oil Futures Speculation.
11
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12. Industry Trends: Oil & Gas
 Oil & Gas Projects
Delayed
 Increased volatility and
risk
 Low price of oil deters
investment in alternative
fuels, oil sands, etc.
 BUT…..
 There are still many Process plant industry bookings for contractors;
manpower requirements grew by over 90% between
projects going on – the start of 2004 and the end of 2007.
Refiners are making Source: Hydrocarbon Processing
money now!
 Upstream oil and gas is
still growing significantly
12
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13. IEA report Shows Long-term Shortage and
Supply Concerns
 “For the next couple of years, the oil pipeline is
well supplied. But that trails off after 2010. By
2015, the world needs to find an additional 7
million barrels per day of oil above and beyond all
the exploration projects currently in the pipeline.
And to get that oil to market by the middle of the
decade, those exploration projects need to get
started now. “
 According to IEA, massive investments are needed
in the global oil infrastructure ($26 trillion).
13
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14. 2009: A Rough Year Ahead for Pharma and
Biopharma
 To meet the challenges in
2009, the industry needs to
improve innovation,
introduce new
technologies, and
ultimately improve
efficiencies. Even though
2009 will not be as
lucrative as previous years,
the industry will continue
to be profitable.
 Regulation, congressional
activities, and innovation
will continue to play an
important role in the
industry for 2009.
14
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15. Global Recession Curbs Demand for Steel
 The global recession has
curbed demand for steel,
prompting mills in Asia,
Europe and North America
to reduce purchases of raw
materials, including iron
ore. Rio has postponed a
$2.15 billion expansion of
the Corumba iron ore mine
in Brazil as part of its plan
to cut spending globally by
$5 billion.
Source: Bloomberg, IISI, China Metallurgical
15
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16. Global Automotive Industry on the Skids
 Japan auto sales seen at
31-year low in 2009
 Toyota suspends domestic
production
 2009 U.S. sales seen at
12.5 million, lowest in 18
yrs
 Big three bankruptcy?
 Goldman Sachs cuts global
auto production, sales Domestic and National Auto Production 2007-08
Source: Automotive News
forecasts
16
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17. How has ARC Revised its Growth Forecasts?
 We have cut our growth
estimates significantly for
2009
 North America, Japan,
Western Europe will
Contract for 2009-2010
 BUT we still expect the
global market to grow
 Recovery will take place
after 2010 Revised DCS Market CAGRs
17
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18. Consolidation
Suppliers and Users of Automation
Have been Consolidating.

19. End User Industry Examples of
Consolidation
 Exxon and Mobil; Chevron, Texaco, Unocal and Phillips; BP and
Amoco, Total acquires 50% of AMSO, ...
 Dow Chemical, Union Carbide, Rohm&Haas; SABIC acquires GE
Plastics; …
 Pfizer acquired Warner-Lambert & Pharmacia; Glaxo Wellcome
and SmithKline Beecham merger; Bristol-Myers bought drug
unit of DuPont Chemicals; …
 InBev acquires Anheuser-Busch; Heineken acquire Drinks
Union (Czech Rep); too many to list,…
 International Paper Acquires Argentina's Bolsaflex, Stora Enso
finalises acquisition of Vinson [Brazil],…
 Tangshan Iron & Steel Co., Handan Iron and Steel Group Co.
and Chengde Xinxin Vanadium and Titanium Co. will become
the Hebei Iron and Steel Group once the merger is complete
 Tata Motors acquires Jaguar-Land Rover, Daimler divests
Chrysler
… Near misses and speculation
 BHP Billiton bids for Rio Tinto Canceled
 General Motors and Chrysler?
Bottom line: Newly created enterprises need help to
develop strategic plan! 19
© ARC Advisory Group

20. Elsag Bailey Fisher = Most Samsung
(H&B, F&P)
HD Baumann Recent Propack Milltronics
Marcam
August
Intellution SACDA ETG Moore
Systems
(Divested) N-Pignone
Profimatics SCADA Anorad Turbo-Werk
Combustion PC&E
Engineering
P&F Safety Triconex Dynapro Vickers
Kenonics
Systems
Alfa Laval
L&N EJA Applied Aut.
Automation Westinghouse
L&N SCADA
Entek IRD ORSI
Cellier CSI
Measurex APV
Engineering Systems Mod. Innotec
Daniel
InterPlant SimSci
Vectek Sequencia BJC
Orion CEM Consulting
Electronics
Wonderware Xian Hensheng Shinwha
Kuhlman Elect Saab Marine Allied
Electronics Signal Eurotherm ICS Triplex Morgan
Ber-Mac
MDC POMS Quantum Pavillion Compex
Eutech Engineering
Solartron Mob. Goldstar Hon Tesch Danfoss Flow
Entrelec SAT
Bristol Bab. Tata Hon DataSweep US Filter
DLI Eng. Walsh
Damcos InterCorr Automation Gepa IndX
HSB
DMI PAS APC PacSim CEDES Robicon
CMS
Tecnologia Autom. Grp. Enraf APV (Divest) Incuity Soft. UGS
ABB Emerson Honeywell Invensys Rockwell Siemens
20
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21. The People Challenge: Aging Workforce
People Over Age 65
 US Bureau of Labor Statistics
80
70 • By 2010 more than 25% of working
population will reach retirement age
Millions of People
60
50
40 • Trend will continue into foreseeable
30 future
20
10  Globally – Workers are Getting Older
• Largest Group of Workers – over age
0
1900 1920 1940 1960 1980 1990 2000 2010 2020 2030
Source: US Census
45 and will double in next ten years
Year
• Fastest Shrinking Age Group of
Workers between 35 and 44 –
Changing Workforce Demographics from 2000 to 2010
arguably the most productive
60%
50%
Source: US Bureau 52%  Europe is expected to lose 1 million
of Labor Statistics
40% jobs annually for the next 25 to 30
30%
21%
years
20%
10%
• Severe shortage of skilled workers
0% and engineers!
-10%
-10%  Oil & Gas Industry
-20%
Number of People 35 to 44 Number of People 45 to 54
• 50% of its production engineers will
Number of People 55 to 64 reach retirement age by 2010
Exodus of Workers is Reducing Companies’ Ability to Sustain Operational Excellence
21
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22. Investments Must Continue to be Made in Key
Industry Segments, In Spite of Economy!
 America’s Crumbling
Infrastructure
 Roads & Bridges
 Water & Wastewater
 Power industry
 Aging control systems
 Nanotechnology
 Innovation Instrumental in
Driving Economic Growth
 Users and Suppliers Must
Continue to Invest in R&D
Sustainability is the Issue!
Sustainability of Your Business!
22
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23. Infrastructure Needs Modernization
 ARC Estimates Total of $65 Billion in Installed
Process Automation Systems are Reaching the
end of their Useful Life
 The Majority of this is in the Hydrocarbons
Sector in North America, Europe, and Middle
East
33.7%
New Plant
Expansion
50.2% Modernization
16.1%
23
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24. Obama’s Infrastructure Plant and What it
Means to the Automation Business
 Infrastructure: $90 billion
 Where does the money go?
 $30 billion: Highway construction
 $10 billion: Rail and transit projects
 $31 billion: Modernize federal and other public
buildings for long-term energy savings
 $19 billion: Water projects
Obama Mentioned
Science in His Inaugural
Address
24
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25. Obama Stimulus Plan Targets Energy
 Energy: $58 billion
 Where does the money go?
 $32 billion: Fund a smart
electricity grid
 $20 billion-plus: Renewable
energy tax cuts and a tax
credit for research on energy
efficiency and clean energy,
plus a multiyear extension of
the green energy production
tax credit
 $6 billion: Weatherize
modest-income homes
25
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26. What the Plan Means for Automation
 Power and Water will see
Huge Investments
 Increased Investment in
Intelligent Building
Automation Systems
 Increased Emphasis on Boiler
Efficiency
 Sophisticated Approaches to
Energy Management
 Hundreds of Millions of
Dollars Worth of New
Systems and Instrumentation
Will be Required
 Money won’t enter the
system until 2010-2011
26
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27. The Sustainability Challenge
 In addition to having to deliver to a highly
competitive, flat world economy, manufacturers have
to meet the new SUSTAINABILITY challenge
 Sustainability is the response to the increased
pressure on the environment, the rising demand for
natural resources, energy, and the need for a socially
responsible approach to business
 Sustainability will drive towards a higher level of
COLLABORATION between organizations and systems
and most likely a complete rethinking of traditional
organizational structures
 Automation Suppliers are uniquely positioned to help
manufacturers meet the SUSTAINABILITY challenge
with Collaborative Power and Control Solutions
27
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28. Manufacturing Today: Flat World has Raised
the Bar for Manufacturers and Processors
 Information and Communication Advances Have Made the World
More “Connected”
• Easier exchange of info, ideas and money
• Global access to product/service suppliers
 Business Has Become More Global
• Many new, large markets to sell more products
• Outsourcing of ―Core‖ activities
• China (Manufacturing), India (Services)
• New Capital Investments Business Drivers
• Chevron Refinery (India), Dow (Middle East) Dynamic Customer Requirements
• Increasingly complex global networks to manage Shrinking Product Lifespan
More Demanding Customers
 Business Has Become More Competitive Fierce Global Competition
• More aggressive legacy-free competitors Global Markets, Supply Chains
• Tougher Price/Product competition Greater Product Variety
• Changing customer needs with local requirements Compliance and Tracking
• Product proliferation Many Others
• Product innovation and new product launch
28
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29. Sustainability Will Raise the Bar Even Higher
Wal-Mart Corporate Environmental Sustainability Goals
To be supplied To create zero To sell products that
100% by waste sustain resources &
renewable energy the environment
Stores 25% more 25% reduction in 20% supply base
efficient in 7 years solid waste in 3 aligned in 3 years
years
 Fleet 25% more
efficient in 3 years
29
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30. Sustainability Will Raise the Bar Even Higher
PepsiCo
PepsiCo’s responsibility is to continually improve all aspects
of the world in which we operate – environment, social,
economic – creating a better tomorrow than today.
Ft. Pierce Florida
Energy Recovery “Green” Buildings Package Innovation
Provide Respect and Conserve and
Trustworthy Fairly Treat our Respect our
PRODUCTS PEOPLE ENVIRONMENT
30
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31. Economic Stimulus: Clean Energy
 Stimulus Push Gets Greener Tint - “President-elect Barack Obama and
congressional Democrats are intensifying work on a stimulus plan that
would dole out roughly a half-trillion dollars on an array of "green“
projects and infrastructure initiatives such as building renewable
energy plants, improving the electrical grid & installing "smart"
meters” Wall Street Journal, Dec 6, 08
 Jobs, Clean Energy are Key to Obama Stimulus Plan - “Obama aide
states: "Given the magnitude of the problems, you're going to need a
large plan. Much of what we would do is double duty, with the effect
of helping aggregate demand today but also enhancing the
productivity of the economy for years and decades to come”. "Green
jobs, healthcare technology and infrastructure fit that.“ Los Angeles
Times, Dec 6, 08
 China's $586 billion stimulus package is its - "biggest contribution to
the world," Premier Wen Jiabao said Monday, as hopes rose that
heavy spending on construction and other projects would help support
global growth by fueling demand for imported machinery and raw
materials. AP, Nov 10, 08
 European Economic Recovery Plan ”… immediate budgetary impulse
amounting to 200B Euro and kick-start investment to modernize
infrastructure. It will drive a competitive Europe ready for the low-
carbon future.” Jose Manuel Durao Barroso, Pres., European
Commission Nov 26, 08 31
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32. Agenda
Setting the Stage for
Sustainability
32
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33. Climate Change Creating Havoc
Mean Temperature Change CO2 Concentration
Scientists project a 3º to 7º F World CO2 Emissions
rise in global temperatures by
2100 – Consequences could
be dramatic
• 3.7º F = Arctic ice disappears
• 5.4º F = Amazon disappears
• 7.2º F = Agriculture declines
33
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34. The Addition of Power Generation Capacity is Getting
Harder Energy Conservation and Management a Must
 Asian demand for equipment and
services drives up Capital Goods
Prices globally
 The cost of new plants is rising
very rapidly
Index Value
 Example: US estimated costs
for new PowerGen capacity
• Up 19% in the last year
• Up 69% since 2005
• Up for all types of plants
• Steam
• Combined cycle
• Wind
• Nuclear
• Hydro
(These measures includes design, equipment, and construction; exclude fuel costs)
34
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35. Manufacturers and Processors Have The
Most To Gain By Saving Energy
• Uses more energy than any other
single sector; >1/3 of U.S. energy
consumption
• Produces approximately 30% of U.S
greenhouse gas emissions
Energy Use
Transportation
• Accounts for more than 35% of U.S. Industry 27.2%
natural gas demand 33.4%
• Accounts for 28% of U.S. electricity
demand
• Energy is key to economic growth in Commercial
domestic manufacturing Residential 17.9%
21.5%
• Many companies have been unable to
pass higher energy costs on to their
customers, which has impacted their
profit margins negatively
Source: US Department of Energy
35
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36. Major Energy-Intensive Industries
Sustainability impacts ALL!
Industrial Energy Intensity vs. Energy Consumption
1000
Energy-Intensive
(Thousand Btu/$ GDP)
Industries
Petroleum
Energy Intensity
100
Primary Paper
Mining
Metals
Chemicals
Nonmetallic
Textiles/Apparel Wood Minerals
10
Tobacco/Beverages Food Processing
Plastics/ Fabricated Metals
Furniture Rubber
Transportation
Leather Printing Machinery and Computers
Miscellaneous Electrical
1
10 100 1000 10000
Energy Consumption (Trillion Btu)
Source: US Department of Energy
36
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37. Energy Challenges Create Drivers
For Sustainability
 The World Commission on Environmental and
Development defined Sustainability as the development
that meets the needs of the present without
compromising the needs of future generations
 The Core Principle is care and respect for the environment
and the society we live in
 By applying this approach manufacturers judge the
success of product designs not only by the financial but
also by the contribution to society and the ecosystem
 The concept of sustainability reaches beyond
environmental stewardship
 Sustainability is a positive business approach that has as
much to do with delivering economic benefits, and being a
responsible member of the community, as it has to do
with reducing the environmental impact
37
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38. Agenda
What does Sustainability mean
for Manufacturers?
38
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39. To the Pillars of Operations Management…
Infrastructure Integration Functionality
•Real-time Plant Support •Enterprise •Production Planning
•Technology Platform •Design & Engineering •Production Execution
•Applications Platform •Operations, Controls, & •Product Data Tracking
•Business Processes Equipment •Visibility & Analytics
•Security •Supply Chain & External •Quality Enforcement
•Role-based Portals Operations •Inventory Logistics
•Unified view •Product Support Ops •Asset Mgmt
•Product Support
Operations Management
39
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40. … add three more for Sustainability
ECONOMIC ENVIRONMENT SOCIAL
• Customers • Climate • Wellness
• Employees • Energy • Diversity
• Suppliers • Water • Products
• Government • Emissions • Safety
• Community • Waste • Community
The Triple Bottom Line
40
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41. ARC’s CMM provides a Model to help
achieve Sustainability
 Manufacturers must deploy Collaborative
Manufacturing Management (CMM) tools to
effectively connect to their customers and
suppliers, as well as to connect within their own
enterprises
 CMM is the management practice that controls the
key business and manufacturing processes of a
manufacturing enterprise
 CMM builds upon a collaborative infrastructure,
business process management services, and real-
time strategic business management tools
 CMM leverages critical applications, production
systems, and enterprise information, to maximize
the responsiveness, flexibility, and profitability of
the manufacturing enterprise
41
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42. ARC’s CMM Model Stresses Collaboration Via A
Three Domain Service Based Infrastructure
Excellence Throughout Operations
Enterprise Domain is Essential to Value Chain &
Enterprise Performance
Enterpris e Domain
Business
Operations
External Systems
Value Chain
Supply-Side Customer & Domain
Materials Service Based Order
Management Infrastructure Value Chain Domain
Fulfillment
Systems Systems
Plant/Factory
Operations
Systems
L ifecycle Domain
External
Internal
Lifecycle Domain
ARC’s Three Domain CMM Model
42
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43. ARC’s CMM Model Requires Processes To Be
Synchronized And Integrated In Real-Time
Business
Suppliers Customers
Production
43
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44. Questions Manufacturers Must Address To Be
Synchronized And Integrated In Real-Time
 Hardware – Do manufacturers have the hardware
platforms at the plant floor and at IT level, that
enable collaboration between power, automation,
and the enterprise?
 Software – Are manufacturers deploying software
platforms at the plant floor and at IT levels that
enables collaboration between power, automation,
and the enterprise?
 Services – Do manufacturers have access to the
services required to install, deploy, and maintain the
necessary platform infrastructure?
 Human Capital – Is the entire organization, from CEO
on down, committed to eliminating all silos and
deploying the collaboration necessary to achieve
sustainability?
44
© ARC Advisory Group

45. What Characteristics Are Required To Be
Synchronized And Integrated In Real-Time?
Multi-domain functionality on a single platform:
power, logic, motion, HMI, and process control
Capability to deploy multiple control applications on
a single platform for End Users and OEMs
Common engineering development platform for the
design and integration of multi-domain power and
automation systems
Open, modular, and scalable control architectures
that enable highly distributed automated
manufacturing environments
Use of de-facto standards for network interfaces,
languages, etc., allowing data exchange as part of
networked multi-vendor systems
45
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46. Agenda
Driving towards a Solution
46
© ARC Advisory Group

47. C-PACS Model
Device Control
Network Network
Logic HMI
Logic Process HMI
Control
Motion Power
Common Development Common Tagging &
Platform & Configuration Single Database
Tools
Process Motion Power
Control Networks
Motion
Domain Specific Solutions Are Converging
to Improve Performance
47
© ARC Advisory Group

48. Collaborative Power And Control Solutions
C-PACS articulate the convergence of multiple
disciplines on a common platform
C-PACS specify functions under a single
environment
C-PACS promote the value of the common
communications infrastructure
C-PACS recognize the value of standards in
automation
C-PACS demonstrate the importance of a single
power, and control platform
48
© ARC Advisory Group

49. C-PACS – The Foundation for CMM
Business Process Components
Enterprise Supply Chain Management Business
Systems Processes
Product Lifecycle Management
Service-Based ISA 95
Work Flow Service-Based Infrastructure
Architecture Models
Operations Management
Factory Mfg Ops & Factory
Operations Production Production
Automation
Systems & Processes Processes
Services Product Production
Definition Management
Control & Device
OPC-UA
Networks: Real-Time
POWER: Power Meters, Circuit Breakers, Transfer
C-PACS
Switches, Intelligent Motor Control Centers,…
Automation: Motor Drives, Logic, Motion, HMI,
Sensors, Actuators,…
49
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50. C-PACS and Operations Management Enables
Collaborative Production Systems CPS
Enterprise/Business
Operations
Inbound
Supply Chain CRM
& Logistics Operations
Management
Collaborative
Production
Product/Plant Outbound
Design and Environment
Supply Chain
Engineering & Logistics
Production
Resources
50
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51. CPS Incorporates The Plant Floor, Power,
and Operations Management
Business Planning & Supply
Chain Management
Production Production Production Production
Definition Capability Plan Information
Operations Management
CMM
Manufacturing Operations
Management
CPS
Common Information Infrastructure
Continuous Batch Discrete
C-PACS
C-PACS - Power Management,
Controllers, Devices, Machines,
Networks
51
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52. CPS Turns Data into Actionable Information
 Common Actionable Context Data Model
Work Processes
& State
• Role based dissemination of information
 Real-time Performance Management Common Time
Context
Data Quality Mgmt
• Performance Intelligence Dynamic Plant
Reference Model
Application Portfolio
• Resolution to Unit Operation Level
• Operator Engagement
• Targets, progress and trouble analysis The Knowledge Workplace
in real-time Requires added Dimensions of
Context
• Operational Perspective/Financial Impact
Plant
 Common View CEO Manager
• Plant and Corporate ―single version Dashboards
of the truth‖ Real-time Key
Accounting
System
RPM Performance
Measures
• Aggregation of Operations Intelligence CFO Maintenance
Real-time
and Business Intelligence Operations
Data
Engineer Worker
52
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53. Application Example*
UPS Worldport - Louisville, KY
The world’s largest fully automated package sorting facility
Sort Capacity Per Hour: 421,000 packages
Number of Conveyor Drives: 25,314
Miles of Transport Conveyors: 128 miles
Power consumption: 72 MVA
(City of Louisville: 114MVA)
Facility Size: 5.6 million square feet
YTD Overall Investment > $2 billion
IT Equipment 4,500 Scanners
6,000 PCs
*Source: Presentation by ARC at
Schneider Electric Initi@tive 2008
1,500 Printers
>500 Data Comm Devices
380 Servers
53
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54. UPS Worldport - Scope of Supply by C-PACS
Solution
POWER AUTOMATION
Redundant 13.8 KV Feeders 23,700 Variable
– 1220 Amp Main Frequency Drives
Switchgear 3,100 PAC’s & PLC’s
– Mimic Panel
44 4000 Amp Substations
10 High Voltage Lineup’s
> 100 Power Logic Panels
(energy metering)
790 Motor Control Panels
(MCP’s)
3,750 Remote Control Panels
(RCP’s)
54
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55. UPS Worldport - Louisville, KY
System Schematic for C-PACS Solution
Global 20 Enterprise Applications (aprox.)
Message
Hub
High Level
Control Database Application
(CPS)
Data Collector Data Collector Data Collector
Sorting Sorting These
Sorting
separate
System No.1 System No.2 System No.3
sorting
Vendor A Vendor B Vendor C systems
Content: Content: Content: are fully
• PACs & PLCs • PACs & PLCs • PACs & PLCs
• Motor Drives • Motor Drives
integrated
• Motor Drives
• Power Logic Energy • Power Logic Energy • Power Logic Energy at the data
Metering Metering Metering (C-PACs)
level
55
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56. KPI Efficiency Goals Accomplished through
Advanced Automation Solutions !
1999 2007 %
Grade Lane Worldport
(manual) (automated)
Volume 495,000 pps 812,000 pps 64
Design Capacity 215,000 pph 304,000 pph 41
Staffing (Sorting) 1984 2362 19
Productivity (per 48 pph 93 pph 94
person)
Injuries (LTI) 10.9/yr 2.0/yr -82
Missorts 1/2226 1/4554 -51
pps: packages per sort (1 sort: aprox. 2.4hrs) pph: packages per hour
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57. Impact on Sustainability ?
ECONOMIC ENVIRONMENT SOCIAL
• Customers • Climate • Wellness
• Employees • Energy • Diversity
• Suppliers • Water • Products
• Government • Emissions • Safety
• Community • Waste • Community
The Triple Bottom Line
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58. Increased Efficiency Impacts
Sustainability Positively
ECONOMIC
• Information leverage and system flexibility enhancement
through enterprise collaboration
ENVIRONMENT
• Energy efficiency maximization through use of variable
speed drives for motors wherever possible
•Throughput increase and sorting error reduction through
advanced automation solutions implementation
• Jet and truck fuel reduction by maximization of the sorting
intelligence of material handling solutions
• Increased visibility and regulation of power consumption
through Power and Automation collaboration
SOCIAL
• 82% Reduction in Injuries (LTI)
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59. Summary and Recommendations
 Manufacturing and Processing Companies face significant
challenges not only from a flat world, but also from
Sustainability requirements
 Sustainability demands collaboration across organizational
silos (e.g. infrastructure vs. manufacturing)
 C-PACS creates opportunities for Manufacturing and
Processing Companies to optimize across the entire
enterprise:
 Energy consumption for infrastructure and process
 Coordination between consumption and cogeneration
 C-PACS is a key component of CPS, and it empowers
knowledge workers through actionable information
 Common actionable context and KPIs that link
manufacturing performance to business and
sustainability goals
Automation Suppliers help meet these challenges with
Collaborative Power and Control Solutions
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60. What Can We Collectively Do To Navigate
Through The Economic Turbulence ?
√ Recession is global
√ Recent economic news is pretty much all bad
√ Manufacturing is being hit hard
But:
√ Investments still need to be made!
√ Curbing investment in certain sectors now could
have negative consequences down the line
√ Companies cannot cut their way to growth and
prosperity
Industry Leaders
Need to Plan Now for
the World Beyond the
Current “Gloom and
Doom”
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61. Agenda
Consider ARC Your Partner In
Navigating Through This
Difficult Period!
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62. Thank You
For more information, contact the author at
cresnick@arcweb.com
or visit our web pages at www.arcweb.com
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