Converging in Nashville

So there’s this old joke about country music: What do you get when you play country music backwards? You get back your wife, your dog, and your truck.

Or how about this one: How many country & western singers does it take to change a light bulb? Three. One to change the bulb and two to sing about the old one.

While songs of domestic melodrama and life’s tragedies may not be to everyone’s taste, down in Nashville, Tennesse, country music is no joke. Legends such as Jim Reeve, Patsy Cline, and Tammy Wynette all sprung to fame when the city became the center of a booming recording industry in the 1950s. And the Grand Old Opry, still staged live every week, is America’s longest running radio show.

In case you may think that Rockwell Automation selected Nashville for its 17th annual Automation Fair so that the event could be conveniently accompanied by sad country songs in sympathy with the current hard times, this was definitely not the case, I am happy to say.

For while Tennesse may conjure up images of slow days cotton pickin’ in the hot Southern sun, in fact, the state has grown to become the second-largest automobile manufacturing region in the US, with major auto plants and their suppliers generating some 90,000 jobs. Just last August, VW announced a US$1 billion investment in Chattanooga for a 150,000 vehicles/year plant set to come on line in 2011.

Although the figure of 11,000 visitors to Automation Fair 2008 was slightly down on last year’s event in Chicago, the buzz on the show floor, the new technology announcements, and the business messages from Rockwell’s management were all asloud and clear as ever.

Chief perspectives
“Automation Fair is the worlds largest free education forum for automation, information, and manufacturing technology. Visitors from more than 70 countries have come to Nashville to learn new ways on how to make their business competitive,” announced Keith Nosbusch, Rockwell Automation chairman and CEO, at the beginning of his keynote speech, which traditionally kicks off Manufacturing Perspectives, the day-long, pre-show event for global automation media.

While Nosbusch revealed that FY2008 brought in total revenue of US$5.7 billion, a nine percent jump on 2007, for the first time since 2003, and after several rosy years, Automation Fair was taking place against the backdrop of tough economic environment, and Nosbusch did not attempt to hide that fact.

“We are in a period of unprecedented volatility and economic uncertainty, with slowing consumer demand and reduced capital expenditure investment.

“Although the full impact, length and depth of the downturn will not be known for a while, and in spite of the challenges ahead, our objective is to continue to invest to gain market share and help our customers to prosper. And our solid financial base and seasoned management team will give us a greater resiliency than our competitors,” he explained.

Another factor in Rockwell’s favor is the deliberate broadening of its application and geographic footprint over the last few years. Its embrace of process automation has given it access to many more industries, and its globalization efforts now mean that half its revenue generated from outside North America, with plans to increase that to 60 percent within the next five years.

And aside from sales and service, the company is increasingly setting up significant engineering and manufacturing centers in places like Poland,Shanghai, and Singapore.

Adding to its firepower were three more acquisitions in 2008, bolstering different parts of the Rockwell portfolio: Cedes (machine safety); Incuity (manufacturing intelligence software); and China’s Xi’An Hengsheng Science & Technology (process solutions).

As Sujeet Chand, senior vice president and chief technology officer, explained to CE Asia, the latter is a particularly interesting acquisition: “The company does not have any products. But it does have very good solutions delivery capability to the heavy process industries in China.”

He also indicated that more acquisitions could be on the way. “One of my responsibilities is to identify the strategic areas where we need to fill technology gaps. Automation is such a broad area that there will always be a need to augment our resources, especially aswe start to serve more industry sectors.

Creating convergence
With its yin-and-yang like symbol displayed prominently around the halls and emphasized in presentations and panel sessions, Rockwell was evidently keen to push the new concept of “manufacturing convergence”.

But what is it? Well, according to John Cohn, senior vice president, Strategic Development and Communications, “Manufacturing convergence marks a new era, one in which people, processes and technology work in unison so that companies can improve their business performance and discover new opportunities to differentiate themselves.”

On a more practical level, the “four horsemen”, or core disciplines, of manufacturing convergence are: control, communications, information, and power.

Of these, convergence of control is probably most familiar to Rockwell users, with sequential, motion, batch, safety, drives and process control all available on the same Logix platform for a number of years now.

Meanwhile, communications convergence implies both IT and manufacturing departments running multiple applications over the same Ethernet network. Rockwell has also been active in this area through its collaboration with Cisco to develop a Reference Architecture, and more recently, co-development of the Stratix industrial Ethernet switch series.

The information in most of today’s plants is highly fragmented and delivered from many different and custom applications. With information convergence, it becomes streamlined and contextual, with raw production data transformed into accessible and actionable information. For Rockwell, the expanding FactoryTalk software suite is the equivalent of Logix at the control layer, integrating data from disparate sources.

As for power convergence, the intention here is that assets such as drives and motor control centers become more integrated into the broader automation environment, as is becoming the case with products like the new PowerFlex 755 drive (see below).

Quizzed by CE Asia, Sujeet Chand agreed that in the manufacturing space, “convergence” is not a widely known or understood term. “Yes, we would like it to be used more. The point is that if you don’t think about it then you won’t be able to take advantage of it. And if you are not aware of which technologies are converging then you will miss the boat. So we are challenging ourcustomers to think about how they can benefit from it.”

Seeking sustainability
“Sustainable production is another aspect of manufacturing that we’re focusing on at this event. More and more companies are focusing on being environmentally responsible, which is leading to new opportunities for Rockwell Automation,” explains CTO Chand.

Rockwell has a deliberately wide definition of “sustainability”, extending it beyond the usual energy consumption and environmental emissions concerns to encompass workplace safety, product safety and reliability, reduced use of raw materials, and effective reuse of products in the reverse supply chain.

“There is a real economic imperative to adopt sustainable production practices as a long term solution to overcoming rising energy, raw materials, worker compensation, lost productivity and product liability costs,” said a statement from the company. To show that it is not just mere platitudes, a Sustainable Production booth made its first appearance at an Automation Fair. Helmed by Douglas Burns, sustainability lead, it included an array of products and systems all aimed at making manufacturing cleaner, safer, and more energy efficient.

Products like the PowerFlex FanMaster drive for HVAC applications, which as Burns explained, converts a constant volume air handler to variable air flow without requiring changes to existing mechanical systems or controls, and promises up to 75 percentenergy savings.

And on the software front, Donald Hart of Pavilion Technologies, the advanced process control company bought by Rockwell in 2007, explained how the company’s solutions allow customers to achieve automated environmental compliance assurance as well as reduced raw material and energy usage.

Cross collaboration
One Rockwell Automation partnership that has achieved less publicity than it probably deserves is the one with Delmia, the digital manufacturing solutions division of France’s Dassault Systemes. Its objective is to create a much closer link between the usually quite distinct worlds of design and manufacturing.

“This is a very important and strategic partnership for us,” says Sujeet Chand. “Take the automotive industry, for example. First you have to design the vehicle, which is done by creating 3D CAD models of the body frame, the engine, etc. Then you need to design all the various processes for building that car; followed by simulation of those processes, which is done with Delmia.

“But once you go from simulation to implementation, i.e. building the factory itself, the connection with CAD is lost, and all the work done in modeling and simulation is lost, with no connection to manufacturing.

“Now however, considering a scenario where you simulate a robotic cell in Delmia, and have the real robotic cell on the factory floor is controlled by Logix, because we now have integration between Logix and Delmia, designers can see if their designs are creating problems in manufacturing, for example, difficulties in fitting a car door.”

The virtual design and production environment afforded by the collaboration also enables manufacturers to assess the impact of design changes on production, and allows programs created to runthe simulation to run on Logix.

Show stoppers
As usual at Automation Fair, the main challenge was seeing and doing as much as possible in the two days allocated for the event. Apart from the exhibition, comprising displays from some 90 Encompass partners in addition to the numerous Rockwell booths, there were Industry Forums, Technical Sessions, Workshops, and, always a big draw, the Hands-on Labs – free training on a plethora of Rockwell technology.

“You may have heard a lot at the show about ‘convergence’,” Anthony Newkirk, product manager, Drives Business, said when CE Asia paid a visit to the Intelligent Motor Control booth. “This new PowerFlex 755 drive is a great example of that concept. We’ve converged communications, safety, and additional controls into thedrive.”

Newkirk explained that 755 comes with Ethernet as a standard feature, not an option. For safety, an embedded safety relay boosts protection for workers and equipment via the provision of safe speed control. And embedded DeviceLogix gives an OEM the ability to implement control functions without the need for a PLC.

These features give the OEM a more flexible solution and improved easer of use and integration into existing architectures to enable it to hit the marketplace faster, according to Newkirk.

“It’s been really packed,” said Justin Ryan, solution architect, referring to the Thinking Process booth, which he was manning when CE Asia stopped by.

According to Ryan, although Rockwell is still a new kid on the block in process compared to the Emersons and the Honeywells, customers are becoming more and more convinced, especially when they see how the company’s capabilities have come on “by leaps and bounds” in the last few years. “The ICS Triplex acquisition was an especially important one for me in the market that I serve – oil & gas,” he also noted.

In what looks like a smart move, Rockwell is now bringing together its process offerings under a new name – the PlantPAx process automation system, which unifies core capabilities and technologies with those of partners under a common systems and solutions umbrella, with the aim of helping customers ease selection and implementation.

Evidence pointing to the fruitful Rockwell/Cisco collaboration came in the form of the new Stratix 8000 industrial Ethernet managed switch. Neatly illustrating the convergence of the IT and manufacturing realms, the switch line uses the Cisco Catalyst operating system familiar to the IT folks, while providing set-up and diagnostic information from within Rockwell’s Integrated Architecture.

Firmly up in the information space, two major additions to the FactoryTalk software platform are the somewhat similarly named ViewPoint and VantagePoint.

Based on Microsoft’s Silverlight technology, FactoryTalk View Point extends visualization of FactoryTalk View HMI screens to web browsers, thus providing cost-effective remote access. Meanwhile, FactoryTalk VantagePoint – a child of the Incuity acquisition – fills a gap in the software portfolio by providing solid manufacturing intelligence capability. Users are promised easy and automatic access to production information from both Rockwell and non-Rockwell systems.

Don’t stop the music
Most people I spoke to were positively and pleasantly surprised by Automation Fair 2008. With the winds of economic misfortune howling all around the US, there was some fear – luckily unfounded – that visitors may stay away or that Rockwell could downscale the event.

Of course, 2009 won’t be easy for Rockwell or for most other businesses. Declining economic activity will reduce the need for manufacturing capacity, and CFOs will maintain a much tighter leash on the capital expenditure needed for automation systems spend.

But these problems are not of Rockwell’s making. The company has made major efforts to broaden its appeal, and would be in a much worse position were it still a US-centric supplier of factory automation systems and with heavy exposure to the automotive industry.

Looking at the regular Joes (yes, still 95 percent male) around the halls and in the session rooms makes you even more frustrated at the greedy bankers and so-called financial wizards who dragged the whole world to the edge of the abyss in 2008.

They may not wear Zegna suits or dine at Nobu but these engineers are tasked with improving the quality of their products and processes so that their companies can improve their prospects and profits. It’s a world away from dreaming up and selling collateralized debt obligations.

And they came to Rockwell’s Automation Fair in Nashville to find out how innovative products, architecture concepts and information solutions could be applied in their plants back in Alabama, Georgia or wherever. And they would not have been disappointed. The bandplays on; don’t stop the music.

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‘We will beat our competitors’

Confident and optimistic, that’s Keiran Coulton, president, Rockwell Automation Asia Pacific. InNashville for Automation Fair, he told CE Asia why he’s looking forward to 2009.

Q: When we spoke at last year’s Automation Fair in Chicago you had just assumed leadership of Asia Pacific. Some thoughts on how it’s all gone?
A: I am very, very pleased with our Asia Pacific performance. Financially, we have done very well, and we believe we have captured significant market share across the region, and across a broad range of industries.

More importantly, we believe the business model we have in place is a sustainable one such that this is not a single year shot – you’ll see us continue to grow.

Q: And where is this growth coming from?
A: As you might expect, our two strongest areas of growth have been China and India. In China, we expanded by more than 30 percent, compared to 15-20 percent for Asia as a whole. Our business goal is to grow at multiples of GDP, and with that measure currently being over three times, we are succeeding.

In terms of industries, the OEM business has been exceptionally strong. With machinery manufacturers increasingly setting up operations in Asia, we are in a very strong position to help them in the conversion process. We have also established a very focused process solutions team and seen dramatic growth in that business, with some huge wins and market share capture from some of the big names.

Q: Has there been much impact from the downturn?
A: Compared to some other parts of the world, we are fortunate that the Asia Pacific region includes economies – like India and China – that are still witnessing significant growth. So that at least gives us something to work with.

But apart from that, our portfolio offering is such that we are able to work with customers in down markets as well as up. For instance, I may not be talking to you about putting in systems for your new production line, but I could very well be talking to you about how you can get more out your existing line or how you can reduce your energy costs.

Our application footprint is also much wider than it was just a few years ago. Acquisitions like ICS Triplex and Incuity give us more tools to talk to more customers about more things.

So while we are all naturally concerned about the general slowdown, Rockwell Automation is very well equipped to go out leverage its strength. And for me, I am an optimist bynature anyway!

Q: Have you implemented many changes to the Asia Pacific organization?
A: One of the great strengths of Rockwell worldwide isthe “limited distribution” model. This is all about working with partners on an exclusive basis, whereby we invest ineach other’s future. The distributors sell Rockwell productexclusively, and as a result, we support them. This modelis working well in China, and we recently reinforced ourcommitment to it in Australia and New Zealand. There have alsobeen some changes to how we serve vertical industries – nowmore country focused than region-wide.

Q: On a more personal basis, how you have enjoyed living and working in Asia?
A: I can honestly say that it has been a wonderful experience. The commitment of the people, the work ethic, the willingness to learn, and the thirst for knowledge is just incredible. And you can achieve much more when you have people around you that can work at the same speed.

Another strength of Rockwell is the ability to respect and leverage the dynamics of diverse cultures, which you certainly get in Asia Pacific – from “no worries, mate” to guanxi in China. So the cultural aspect has also been a great learning experience for me.

Q: And finally, what can we expect in 2009?
A: Growth! We will beat our competitors. Although we can’t predict what will happen with the economy, I have no doubt that we will be the strongest automation vendor in Asia Pacific in 2009.

We already have considerable momentum coming out of 2008, we’re not reducing our investment plans, and the significant efforts we made around people in the last year will start to bear fruit in 2009. These things will carry us through until we see some sort of recovery.

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