White paper

IT/OT Convergence
Moving Digital Manufacturing Forward

IT OT

© 2018 Cisco and/or its affiliates. All rights reserved.

White paper

Historically, the information technology (IT) and operational technology

(OT/operations) departments within an industrial manufacturing company
could function fairly independently. Operations kept the plant running
smoothly, and IT managed business applications from the front office.

The two teams occasionally collaborated on successful projects, such

as implementing printers on the factory floor or servicing industrial PCs.
Unfortunately, those opportunities were rare. Too often, it was a problem,
not an opportunity, that brought IT and operations together. Whether it
was a security incident, a system failure, or unplanned downtime, those
encounters did little to breed trust and collaboration between the two teams.

But the world of manufacturing is changing. To keep

up, IT/OT relationships must change with it.

The research suggests that executives are equally worried about

established companies and startups, both within and outside
their industry, deploying new technology and business models
that will negatively affect their position in the market.

To outpace that potential disruption, manufacturing companies are working

to adapt their processes, technologies, and business models. The most
forward-thinking companies aren’t just trying to survive the changes.
They’re working to be the ones that lead it — gaining a competitive
advantage, improving operational efficiency, and maximizing profitability.
They are leading digital business transformation in manufacturing.

Clearly, this shift is bringing new and challenging projects to the

IT and operations professionals working within the industry. And
the savviest IT and operations leaders also know that success
in this new climate means working more closely together.

“According to the Global Center for

Digital Business Transformation,
manufacturing is one of the 10
industries that are most ripe
for business disruption¹.”
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White paper

Visionary operations leaders recognize that the reams of operational

data they use to support real-time decision making could create
additional value for the company. But they need the support of their
IT colleagues to make the data meaningful and accessible for use
across the organization. Their IT colleagues can also help them
better align with business systems, such as enterprise resource
planning (ERP) tools and manufacturing execution systems (MES).

At the same time, IT teams want to achieve the vision and potential
of a connected factory — from improving the supply chain to
driving innovation and minimizing downtime. However, to get
there they need the knowledge and support of the operations
professionals who understand and control the equipment.

Both groups have seen glimpses of how their efforts might

enhance the future of their companies and industries, but to take
full advantage of this opportunity they must work together.

That’s why the forced IT/OT interactions that often characterized security
and Ethernet projects of the past are being replaced with more powerful,
collaborative alliances. Together, IT and operations teams go beyond
merely responding to problems. Instead, they’re playing a key role in their
companies’ transformations, helping to seize new business opportunities
that make them more competitive, more efficient, and more secure.

In this paper, we
take a closer look
01. Enabling real-time decision making
through fog computing

02. through predictive maintenance

at some of the Eliminating unplanned downtime
key ways IT/OT
convergence is
enabling digital
manufacturing 03. on the factory floor
Deploying wireless technology

transformation,
including:
04. world of connected machines
Ensuring cybersecurity for a new
White paper

Customer Story
Mazak
01.
    E
 nabling real-time decision
making through fog computing
Thanks to the industrial Internet of Things, manufacturers are
Mazak required a common, standards-
based method to securely connect and collecting more data than ever before. However, that data
derive value from the rich, raw data in is only as valuable as the decisions it can support.
its machine tools. It also needed an
advanced security system suitable for That’s why traditional cloud computing alone isn’t always the best
IT and operations technology (OT). solution for manufacturing. Extremely time-sensitive decisions
The application needed to run on the
should be made closer to the things producing and acting on
network infrastructure on the factory
floor, immediately transforming process, the data, to minimize latency and address potential issues.
overall equipment effectiveness (OEE),
For years, manufacturers have relied on supervisory control and data
and sensor data. They also needed an
effective fog application and real-time acquisition (SCADA) systems to achieve real-time decision making.
analytics. However, those systems don’t typically allow for the same enterprisewide
data sharing expected in the world of smart manufacturing.
They implemented Internet of Things
connectivity (Cisco® Industrial Ethernet That’s why operations teams are turning to fog computing, which gives
4000 Switch), a new application
them real-time access to mission-critical data at the plant level, while
framework (Cisco IOx), a fog application
(MTConnect), and real-time analytics also sharing that knowledge throughout the enterprise. This enables
(Cisco Connected Streaming Analytics). rapid decision making that improves safety and prevents costly
downtime while also sharing information across different plants in
Business outcomes included:
different geographies, helping operations leaders see enterprisewide
• Expanded market opportunity with trends that can contribute to safety and operational effectiveness.
Mazak SmartBox Connected Machine
service And here’s the beautiful part: IT likes the fog as much as operations
does. With fog computing, IT gains a veritable data triage:
• Cost consolidation through running fog
application and real-time analytics on • Time-sensitive data can be analyzed on the fog node
IoT network infrastructure
closest to the device generating the data.
• Rapid time to value with measurable • Data that can wait seconds or minutes can be passed on to an
customer impact: improved OEE,
intermediary node that keeps an eye on operational data.
continuous customer service, and
increased machine utilization • The least time-sensitive data is sent to the cloud
for historical analysis and storage.
This approach conserves bandwidth, refining when and how data
Read more center resources are used. It creates a more scalable system,
making room for a flood of new digitized devices and complexity on
the factory floor. And because it also makes it possible to analyze
sensitive data at its source, it improves overall system security.
White paper

Customer Story
FANUC
02.
    E
 liminating unplanned downtime
through predictive maintenance
IT/OT convergence is also creating a paradigm shift in factory maintenance.
FANUC, a world-leading CNC systems
and industrial robot company that
supplies machines to manufacturers, Planned preventive maintenance schedules rule the day in most
uses big data analytics to identify manufacturing settings. Operations teams perform preventive
maintenance procedures that can maintenance on a regular schedule to lessen the likelihood of
prevent breakdowns before they occur. equipment breakdowns. This approach requires a plant to maintain a
With the FANUC Zero Downtime solution, database of its assets, track their condition, and rely on manufacturers’
the robot is connected through a Cisco recommendations to determine when and how to maintain them.
network into a Cisco edge computer data
collector in the plant to access new robot While preventive maintenance is clearly better than just waiting until
operational data. something breaks, it’s not perfect. These methods are time-consuming
and costly—and don’t always account for special conditions. Since
The relevant data is securely transmitted
to the Cisco Cloud where the FANUC’s the maintenance schedules are based on best practices, not actual
analytics captures the “out of range” data from the machine being serviced, this approach almost inevitably
exceptions and predicts the maintenance leads to some amount of unplanned downtime and waste.
needed.
And unplanned downtime, in today’s world, is simply unacceptable.
An alert is then sent from the cloud
In most manufacturing environments, profit margins are already
application to FANUC service personnel
and to the manufacturing customer about
slim. The costs associated with unplanned downtime — from
the need for service. Needed parts can production losses to wasted materials and replacement parts — all
be shipped to arrive at the factory in erode the thin cushion between a profit and a loss. This means that
time for the next scheduled planned eliminating unplanned downtime is a critical business imperative.
maintenance window.
Unlike preventive maintenance procedures, predictive maintenance
According to Rick Schneider, CEO for
technologies allow manufacturers to collect real-time data from the
FANUC America, “Preventing unplanned
downtime is a huge savings for our actual machines affected, monitor for any situation that might indicate
customers and makes the FANUC robots a potential equipment failure, and then schedule repairs during planned
with ZDT a tremendous value. With Cisco, downtime, while also extending the machine’s useful life and dramatically
we are helping our customers access this reducing repair costs. Instead of using estimates or best guesses,
new value and also re-imagining our go- these systems use real data intelligence from the factory floor.
to-market strategy for after-sales service
and support.” Shifting to a predictive maintenance approach significantly improves
uptime, and it’s supported by IT/OT convergence. Operations does
its part by collecting key data from PLCs, machines, and sensors,
Read more while IT provides the data analytics and other tools that give the data
meaning. By digitizing the maintenance process, IT/OT teams make
it possible to predict when any given device might fail, and intercede
accordingly. resources are used. It creates a more scalable system,
making room for a flood of new digitized devices and complexity on
the factory floor. And because it also makes it possible to analyze
sensitive data at its source, it improves overall system security.
White paper

Customer Story
Daimler
03.
    D
 eploying wireless technology
on the factory floor
It’s hard to imagine a smart factory without wireless. The
For Daimler Trucks North America (DTNA),
success isn’t just about controlling costs. numerous machines, sensors, and PLCs, plus the analytics
It’s about building an agile company platforms and ancillary technologies running alongside, all become
that can deliver exactly what the market more efficient and practical with wireless technology.
demands — today and tomorrow. Its
Western Star brand of trucks are But until recently, deploying wireless across the
tailored to every customers’ needs, but
plant floor was not always a viable option.
this level of customization presents a
logistical challenge in a mass production Industrial environments vary greatly, from challenging building layouts
environment.
to harsh environmental conditions such as dust, excessive humidity,
DTNA decided that it needed to upgrade temperature, and vibration. Plant managers were also skeptical about
the network in its Western Star production whether wireless could support the number of devices, bandwidth, latency,
facility in Portland, Oregon, to better and security required for mission-critical applications. So plants deployed
coordinate customizations and support
miles of cable everywhere, which was expensive and time-consuming.
flexible and efficient operations, both now
and in the future.
However, over the last several years there have been great
DTNA chose Cisco and Rockwell strides in wireless technology. This increased resiliency makes
Automation as strategic partners, wireless more affordable and practical for industrial environments
designing and deploying a new network than ever before, and it is also quicker to deploy.
based on the Converged Plantwide
Ethernet (CPwE) validated design guides. And wireless can be a game changer for any factory. It enables more
Cisco Aironet® access points deliver
flexibility and adaptability for remote monitoring, assembly line changeovers,
secure and reliable Wi-Fi connectivity
across the plant.
and quality or supply chain initiatives. At the same time, it can lead to
significant cost savings. According to Control Engineering, “Wireless (in
By combining IT and automation the factory) can be up to 10 times less expensive than cable, with more
networks into one secure, manageable,
flexibility, mobile benefits, and reduced maintenance and troubleshooting².”
and converged environment, DTNA
managers gain real-time visibility across IT and operations can work together to successfully deploy
processes. Data is transmitted securely
wireless on the factory floor, and doing this well benefits both
to managers, helping them make
better, faster decisions that keep plants groups. IT loves the cost savings, reduced troubleshooting, and
running efficiently. Software-defined increased bandwidth, while operations teams enjoy the benefits
networking (SDN) also supports remote of additional agility, increased quality, and reduced downtime.
troubleshooting to minimize downtime
when equipment needs maintenance or
repair.

The joint architecture scales to any size or

configuration, allowing DTNA to use the
Western Star factory as a template, which
it is rolling out across other factories.

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White paper

Customer Story
Ansell
04.
    E
 nsuring cybersecurity for a new
world of connected machines
Cybersecurity is mission critical for manufacturing. Protecting intellectual
Although Ansell is known for protective
solutions, the company wanted to property and customer information is paramount to a company’s long-
tighten its cybersecurity protections. term viability and corporate reputation. At the same time, compromised
“We were basically starting from scratch, production systems could affect quality, profitability, and even safety.
so we needed every security solution
Not long ago, manufacturers could feel generally comfortable with the
available to reduce our risk,” says George
Michalitsianos, IT Infrastructure Director. security of the machines on the factory floor. Their proprietary systems and
likely lack of Enterprise connectivity created a sense of safety. However,
“The Cisco Security Enterprise Licensing linking the machines on the factory floor to the network has countless
Agreement (ELA) gives us access to all of
benefits. For instance, the data collected can be analyzed to reduce
the security solutions we needed for one-
third of the cost of purchasing everything downtime, increase operational efficiency, and can lead to improved safety
separately, which allowed us to bring on and product quality. However, this new change, combined with an increased
security solutions we never had before.” prevalence of cybersecurity threats in general, requires a new approach
to security. The old “security by obscurity” approach is no longer valid.
Using the automated security capabilities
integrated across multiple Cisco security
Today’s solutions must connect networks and enable monitoring
products, such as Cisco Advanced
Malware Protection (AMP), Cloud Web and secure data flow. It must be possible to deploy them in existing
Security (CWS), and Cloud Email Security environments and on legacy equipment. And they must deliver defense-
(CES), Ansell can now block thousands, in-depth features to organize, harden, defend, and respond to threats.
of advanced and known threats daily,
stopping phishing attacks, ransomware, Implementing this new approach to cybersecurity in manufacturing
and known malicious actors. requires collaboration from both IT and operations. IT brings a deep
In the case of a breach, Cisco
understanding of cybersecurity protocols and policies, as well as
FireSIGHT™ Management Center provides experience in managing implementation and ensuring compliance.
centralized visibility and intelligence that
enables IT staff to more quickly detect, But to make cybersecurity work for manufacturing, operations teams must
contain, and remediate any incident from also play a critical role in the process. For instance, a diligent approach
a single pane of glass. to cybersecurity generally requires regular system updates, but deploying
them without consulting operations is a potential downtime disaster
waiting to happen. Operations must have a seat at the table to determine
Read more when to deploy those updates, ideally in line with planned maintenance
schedules, and to evaluate any potential production system impact.

IT/OT must work together to make cybersecurity work

for manufacturing, while avoiding unintentional downtime
and preserving the company’s profit margin.
White paper

Key Business Conclusion:

Outcomes A New World of IT/OT Convergence Fosters
Unprecedented Business Outcomes
IT and OT convergence is transforming manufacturing in ways neither
48.9% function could have imagined, while making both entities even more
effective at their jobs.

Decrease
in the defect rate According to the “Smart Manufacturing and the
Internet of Things 2015” survey of 418 manufacturing
line-of-business executives and plant managers
47.8%
by SCM World and Cisco, smart manufacturing
can foster tremendous business outcomes³
Decrease
in unplanned downtime

17.5%
At the same time, with OT’s insight on the factory floor, IT is staying a step
ahead of those who seek to compromise security and confidentiality.
Decrease
As these two groups work more closely together, they’re unlocking
in annual energy costs
new opportunities for manufacturing. Although they may have different
approaches, backgrounds, and key performance indicators (KPIs), both
are heavily invested in achieving their companies’ overarching goals.
34.8%

Increase
in inventory turns

23.1%

Decrease
in new product
introduction cycle time

16.2%

Increase
in original equipment
effectiveness
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At Cisco, we’re helping unite IT and operations for digital manufacturing
initiatives that save money, enhance profitability, amplify security, and
improve operational efficiency. Ready to take the next step?

Learn more about Cisco’s solutions in each

of the areas covered in this white paper:

Fog Computing Predictive Maintenance Factory Wireless Cybersecurity

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