The Digital Transformation Needs to Include Legacy Equipment

Manufacturing equipment is designed for extended use. It’s pricy. Manufacturers purchase it with the idea of extending its value across many productive years. Much of the equipment in US factories is 10 to 30 years old. Yet the benefits of digital transformation are too valuable to ignore. Companies that design and create advanced hardware and software for manufacturers keep an eye to this market. Enabling digital transformation means accommodating legacy equipment and bringing it into the new world of advanced manufacturing.

To explain the capabilities and value of deploying new technologies on existing equipment, Siemens in collaboration with the Manufacturers Alliance Foundation produced the report, Legacy Systems & Digital Transformation A Guide for Faster Evolution.

We caught up with Christopher Stevens, senior vice president of automation at Siemens Digital Industries US, to see how Siemens is helping manufacturers adopt digital systems while still getting use from their existing equipment.

Are companies like Siemens developing smart manufacturing tools (hardware and software) that are backwards compatible? 

Christopher Stevens: We would not say backwards compatible. We see two imperatives: First, provide new capabilities that can operate in legacy environments without demanding a rip-and-replace program or complex OT integrations. Second, provide advanced technology that is open and interoperable and that can be deployed as a service. This is the inevitable path forward for industry; manufacturers can no longer afford islands of automation that require complex integrations. In terms of our own technologies, yes, we have always brought products to market that are compatible with our prior generations, and we regularly maintain a longer support life than other vendors.

Related:The Next Big Things in Advanced Manufacturing

Does Siemens design technology to work with a mixed bag of existing equipment. The goal is integration, correct? 

Stevens: Absolutely true. I would highlight our Industrial Edge approach as a good example. We have proven that, with a commitment to supporting standard protocols and open APIs, we can give manufacturers the ability to collect OT data from almost any device with minimal integration effort, and then to be able to analyze and act on that data with a broad range of pre-built or self-built apps. The proof is the BorgWarner example cited in the report. They were able to bring a non-standard, global manufacturing network online in the cloud in about six months? That is an unprecedented accomplishment that is only possible with the interoperability paradigm driving the design of the technology. 

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Do you work with customers to figure out what equipment can be updated and what equipment needs to be replaced?

Stevens: Yes. And not only equipment, but industrial software, also. There are two unique tools we employ to support our customers in this. First, we have a sophisticated digital thread approach that allows the customer and Siemens to map all the data flows from R&D, engineering, and operations in a single framework. That reveals the interconnections between different tasks, domains and use cases in their environment. The second tool is digital transformation road mapping, which we typically do with our customers at one of our Digital experience centers (LIFT, MxD, etc.) in a workshop setting. We use the previously mentioned digital thread approach to make precise decision-making about where to start and how to scope any proposed transformation. 

Can you explain the economics involved in determining the potential benefit of keeping or replacing equipment? 

Stevens: The benefits of a well-conceived digital transformation are almost endless. Engineering and operating productivity, OEE, cost, solid waste reduction, energy reduction, safety, and on and on. The problem is that not all these decisions are purely economic. The adage of never stopping a running operation is still relevant. We might be able to calculate a significant ROI for a project, but if the manufacturer sees an unacceptable risk of the “unknown”, that project if very unlikely to happen. Which is why I mentioned earlier that we focus on finding ways to help our customers deploy advanced in a way that does not interfere with the current OT stack and how it operates.

Related:Siemens and BAE Systems Collaborate to Accelerate Digital Innovation

Who is involved in that evaluation? Does it usually include an integrator? 

Stevens: Of course this varies from manufacturer to manufacturer, depending on how they prefer to manage their engineering and deployment activities. System integrators (SI) are often involved and are important contributors to the design and ultimate success of any project. I think the SIs really appreciate the approach we are taking with our portfolio.  When we deliver our technology that is open and interoperable, securely IoT enabled, and available as a service, this all works to their benefit. They have more flexibility with their designs and can generally complete their projects more quickly and at a better ROI for their customers.