Mr. John Bernaden On Friday, September 25th, Alliance to Save Energy hosted “Smart Manufacturing: Modernization to Marketplace,” in the Rayburn House Office Building. This briefing, moderated by the Alliance’s Vice President of Programs, Jeffery Harris, explored the merits of smart technologies—including sensors and wireless controls—in a modern manufacturing environment.

1. Smart, Safe and
Sustainable
Manufacturing
John Bernaden
Efficient Enterprises: Powering American Industry
September 25, 2009
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

2. Federal R&D and the U.S. Economy
• American science and engineering innovations underpin our economy
• Science and technology investments drove between 50 to 85 percent of
U.S. economic growth over the past half-century
• Two-thirds of productivity gains in recent decades attributable to
scientific and technological advances
Federal R&D Funding
• Federal R&D funding is half the 1970’s Engineering/Physical Science
Source: American Physical Society of Public Affairs
rates as a percent of GDP 0.3
Percent of GDP
0.25
• Applied research funding declined 0.2
40 percent from 1990 to 1998; and 0.15
0.1
is 30 percent behind basic science 0.05
0
1970 1980 1990 2000 2009
Manufacturing innovation especially needs applied research
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
2008 2

3. Smart Manufacturing 1.0: Islands of Efficiency
Batch Continuous Motion Drive
Energy-efficient
Combined Distributed Smart Motors
Heat & Control Machines
Power Systems
(CHP) (DCS) Discrete
Safety Programmable
Logic
Controllers
(PLC)
Today, most plants use multiple separate manufacturing technologies
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 3

4. Smart Manufacturing 2.0: Plant-wide Integration
Industrial
Energy
Batch Continuous Management Motion Drive
Discrete
Ethernet/IP
Safety
• ACEEE estimates +2x energy savings
• Able to measure and manage carbon
footprints per product line
• More flexible, safer and productive
factories in the future
Essential first step to the connected enterprise
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 4

5. Smart Manufacturing 2.0: IT-Connected Plants
an interconnected
world… voice, data,
mobile, etc.
Business
Systems, ERP
Customer
Supply
Chain Distribution
Smart Center
Factory
Modern, smart factories will be
Smart interconnected via Ethernet/IP with the
Grid supply chain, distribution, customers, and
business systems
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 5

6. Major Business Benefits
OPTIMIZED WITH BUSINESS RISK MGMT
Enterprise
Business Systems Machine Factory Enterprise
Customer Relationship -Track/Trace -Analytics / Reporting
Management -Key Process Indicators –Batch Records
Supply Chain
Management
Enterprise Production
Management
Customer
Supply
Chain HIGHER PRODUCTIVITY / LOWER TOTAL
FLEXIBLE: FASTER TIME TO MARKET COST OF OWNERSHIP Distribution
Center
-Simulation / Advanced Control -Software Integration
-Mechatronics -Safety / Security
-Wireless
-Autonomous Control
…..-Prognostics
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 6

7. Sustainable Production Benefits
OPTIMIZED WITH BUSINESS RISK MGMT
ENERGY EFFICIENT
Enterprise
Business Systems -Industrial Energy Management
Customer Relationship -Environmental Compliance
Management -Product Safety
Supply Chain
Management
Enterprise Production
ALTERNATIVE POWER
Management
HIGH EFFICIENCY
-Smart Grid Ready
-Regeneration
-Clean Power
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 7

8. Manufacturing the Future
• “Intelligent & Integrated
Manufacturing” recommended as
one of three top federal priorities for
manufacturing R&D by the National
Science & Technology Council
interagency working group in
March, 2008.
• European Union is ahead of the
U.S. with an approved 1.2 billion
Euros for a new “Factories of the
Future” research program to
develop and apply advanced
manufacturing technologies.
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
2008 8

9. Federal Government Benefits
Smart, Safe and Sustainable Manufacturing 2.0 is key to several
federal agencies’ ability to achieve their missions:
• Commerce: Helps enable the U.S. to maintain and grow its
leadership in manufacturing
• Energy: Essential to industrial energy management and
“green” manufacturing
• EPA: Carbon footprints for each product
• FDA: Safer foods and drugs and faster recalls
• Labor: Sustainable, safer, green jobs
All these agencies will play an important role in the evolution of
Smart, Safe and Sustainable Manufacturing 2.0
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
2008 9

10. Significant Potential for Energy Savings
• By 2020, industrial sector will consume 52% of the (2020)*
energy in the U.S. with estimated reduction
potential of 18% yielding potential savings of $47b
/ year (McKinsey, 2009)
• Of the approximately 4 billion kWh electrical
energy used per day in industrial operations in the
U.S., a 10% reduction during peak demand
translates to savings of $6b/year
* McKinsey Report, 2009
• Energy management for industrial operations is
more complex than for buildings since Potential Peak Load Reduction (MW)
stopping/starting processes can increase
production costs – domain knowledge is required Wholesale
Other
• Energy management is manual and fragmented in Industrial
industrial operations today Commercial
Residential
– Leverage integrated architecture, sensors, and
advanced analytics to automate energy 0 2500 5000 7500 10000 12500 15000
management
“Greenprint” needed for industrial energy management
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 10

11. Industrial Energy Management “Green Print”
Six steps toward the next generation of energy-efficient manufacturing:
1. Facility Energy Monitoring and Demand Management
• Equipment runtime decisions that lower energy consumption / cost
2. Plant Floor Energy Monitoring
• Energy optimization in a manufacturing process
3. Energy on the Production Bill of Materials
• Understand the cost of energy associated with manufacturing a specific product
4. Production Modeling & Optimizing
• Model energy as a process variable utilizing advanced modeling tools
5. Production Demand Management
Measure
• Schedule production with energy as a variable (responds to water or electricity restrictions)
Sense &
6. Demand Response to Regulation
• Respond to external market signals (like the smart grid) to optimize demand to real-time supply
and provide continuous emissions monitoring
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 11

12. Public Support for U.S. Manufacturing
Factory automation important to U.S. economic growth
82%
Use stimulus $$ to increase factory automation
70%
U.S. losing its competitive edge
42%
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 12

13. Call to Action
• Establish $2 billion in public-private partnership funding to research
and develop a manufacturing “greenprint” for Smart, Safe,
Sustainable Manufacturing 2.0
• Establish “applied research “demonstration projects in collaboration
with manufacturers to refine and improve the “greenprint” model
across the five industries with the highest energy intensity –
petroleum, chemical, metals, minerals and food processing, to
achieve the following:
• Plantwide optimization of resources, including water, compressed air,
natural gas, electricity and steam (WAGES)
• Industrial energy management that enables "real-time" inclusion of energy
or emissions as part of a product's cost
• A safer working environment for employees
• Safer products and the ability to more efficiently meet federal regulations,
especially for faster recall tracking and tracing
• Establish educational and outreach programs about the “greenprint”
model for Smart, Safe and Sustainable Manufacturing 2.0
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
2008 13

14. Questions?
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 14