Pietro Rossato at PMA SYMPOSIUM 2019

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Pietro Rossato
November 18th 2019
PMA SYMPOSIUM 2019
Performance Measurement
and Management
in Industry 4.0

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Agenda
 The Company
 Carel Digital Roadmap
 TO-BE Overall Architecture
 Focus on projects
 Machine Vision
 Machine Integration
 Control Tower
 TPM
 Conclusions

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1577
Employees
23
Subsidiaries280Mln€
Turnover
9
Production
facilities
CAREL in snapshot

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All over the world, we help our customers
to protect the environment.
Electronic control solutions and humidification system for
refrigeration, air conditioning and heating applications.

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Refrigeration: supermarket, c-store, restaurant chain, refrigerated warehouse…
HVAC: residential, commercial, industrial process, data centre
Main system applications

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What’s INDUSTRY 4.0 for CAREL?
«It’s a technological as cultural and organizational challenge, involving the
business, that must be part of the Company strategy: the implementation of digital
solutions creates value for our Customers and for CAREL».
Data collection from field
Process understanding, control and improvement
Waste reduction
Value improvement
Competitiveness and business continuity

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WH
SUPPLIERS CUSTOMERS
S&OP
- Collaborative forecasting
- EDI connection
- On line orders
- Materials and resources
planning
- EDI connection
- LOT tracking
- SSCC label
R&D
- Digital tech. docs
- Work instructions
- Routings
- Real time project change
management
- PLCM and integrated product
updates between sites
Sales orders and shipment tracking
SMT PTH TEST
- Field data collection – machines connectivity
- MES/SCADA
- Treaceability; traceability extended to aftersales
- Sensors (PTH)
- Move components from PTH to SMT
- AOI
- Predictive maintenance
- Automatic transport (machine to machine)
- Automatic setup
- Automation for assembly – collaborative robots
- Augmented reality (maintenance, assembly, etc…)
- Wearable devices
- …
- Voice picking
- RFID
- SSCC label
- OEE
- efficiency/producti
vity
- Scrap
- MTBF/MTTR
- … - LGV
- RFID
Real time
prod lines
monitoring
Analitics
The “holistic view”

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IoT platforms
Location detection
technologies
Advanced human-
machine interfaces
Authentication &
fraud detection
3D printing
Smart sensors
Big data analytics and
advanced algorithms
Cloud computing
Mobile devices
Digital
enterprise
Smart
Manufacturing
and Assembly
Digital End-to-
End
Supply Chain
Integration
Digital Business Models
and Customer Access
Automated Guided
Vehicles / Drones
Augmented
reality/wearables
Business priority
and expected
benefits from each
initiative
Economical
sustainability
Impact on people
workload
Opportunities and
risks
Enabling factors
and correlations
between initiatives
Tecnologies
maturity (related to
Carel environment)
Critical selection
based on coherency
with Carel growth
Possibility to activate
pilots out of HQ to
bypass constraints
Enablers for digital transformation
CRITERIA FOR SELECTION

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Core initiatives
Improvement
initiatives
Experimental
initiatives
PROPOSED INITIATIVES
Initiatives included in the roadmap
and estimated in terms of costs /
benefits
POSTPONED INITIATIVES
Initiatives included in the roadmap,
but to be updated on the basis of
technological evolution of support
solutions and/or pilots results
• Feasibility / relevance for
Carel
• Technological elements
(maturity of technologies, …)
• Current costs of some technologies
(sometimes not comparable to potential
benefits)
• Dependency of some initiatives from the
success / un-success of other pilot
initiatives
• …
44 50
15
18
11
31
7
38
13
13
5
core
improvement
experimental
• Grouping on the basis of
commonality of results
achievable and similarity of
activities to develop
Project
Streams
5
6
3
core
14
Initiatives
discussed
during
workshops
improvement
experimental
Carel Digital Roadmap

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Digital roadmap: core activites
WH WH
Raw materials Finished goods
SUPPLIERS
CUSTOMERS
R&D
SMT PTH TEST
PLM – Product
lifecycle management
S&OP – Sales &
Operations Planning
IN – Machine
integration
MV – Machine
Vision
MN – Maintenance
1 2 3 4 5
1
1 3 4 51 12
2
2 2
2

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What are KPIs?
A KPI is an operative tool for the continuous improvement, not just for control
and governance.
What’s the role of technology?
Technology lets connecting KPIs values to processes events,
enabling the “DO” within the PDCA cycle.
Technology lets defining how and how much processes parameters impact on
KPIs, supporting decisions and operative countermeasures.
The right KPI to the right owner: the concept of the CONTROL TOWER.

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Digital roadmap: KPIs impact

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TO-BE Overall Architecture
PLM (tbd) ERP (Oracle)
Machine Integration (Ignition)
MES (Apriso)
Physical Asset
BOM Routings
Working
instr.
Document
management
Planning -
MRP
Work orders Warehouse
Production
Process
Recipes EquipmentOperators
Control Tower
Physical
execution
Protocols /
Drivers
Alarm mgmt Event mgmt
Line and
machine KPI
Plant/VS/Lines KPI
WO
“Augmented” WOProduction Data
Production data
Machine Vision Pick-to-Light 2.0 Other digital applications
CommandsData

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Machine Vision project
PROBLEM: reduce defectiveness due to assembly mistakes.
KPI: defectiveness in ppm.
Component-centric Frontier technologyAutomation
Pillar 1 Pillar 2 Pillar 3
The system should be able
to recognize the single
component independently
from the specific board
The system should be able
to take the information
needed directly from CAD
file
The system should
represent the best solution
available in the computer
vision field
CAD integration
Machine VisionR&D
Components library Deep learning
CAD CAD

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Focus on Deep Learning
Deep learning is a subset of technologies that can be applied to a broad range of applications and it has
demonstrate outstanding efficacy in imaging recognition and analysis. In essence, deep learning
teaches robots and machines to do what comes naturally to humans: to learn by samples.
Algorithm Training
Classification Classification and
Localization
Object detection Instance
segmentation
Single objects Multiple objects
Imagine if the dogs were capacitors
and the cat a relay….

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Machine Integration project
ERP / PLM
MES
SCADA
PROBLEM: measure “in real time” and objectively processes performance.
KPI: lines global yield/traceability

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Machine Integration goals
Bi-directional
communications
Data
collection
Data collection,
normalization and
visualization from
machines, toward a
data-driven production
management
New way of work for
operators and technicians,
with real-time
visualization on
production status
Continuous
communication among
different actors to
manage machines and
processes
Operator
experience
Machine Integration has three different implications, each one presents opportunities
and challenges.

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The Control Tower
Control Tower is a new module of the MES that aims to present KPIs and
contextualize data received from Machine Integration
CAREL GROUP – OPERATIONS
CONTROL TOWER
Value stream
summary
Plant KPIs
Value stream
KPIs
Line
summary
Line KPIs
Control Tower architecture
is structured in different
levels of depth, from
Group to each line

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Control Tower dashboard
CID
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
CHR
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
CSZ
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
CUS
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
CBR
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
RECUPERATOR
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog
HYGROMATIC
GY
SL (on prom del date)
Defectiveness
Scrap
Backlog

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TPM Program
In parallel to the digitalization program, we are implementing new KPIs, enabled also
by the new data available from machines and production lines.
Labour efficiencyMachine OEE
OEE definition and
implementation for each
line and machine.
Machine Integration acts
as enabler for machine
data collection
New KPI for manual
activities. Smart lines will
enable a more detailed tracking
of operators tasks and status.
Machine MTBF/MTTR
Equipments breakdown
tracking. CMMS will
support in measuring
losses and suggest
solutions to improve
availability.

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Some…conclusions
 Digitalization journey is complex and has many different sides (also
blind…)
 Ok to start with pilots, but it is necessary to have a big picture aligned
with Company strategy
 Ultimate goal of machine connections is a data-driven Operations
Management
 More data enables different KPIs, and put in discussion how we measure
our performance
 Workers’ role will move from data collectors to problem solvers

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We lead the evolution of control technology and
humidification for air conditioning and refrigeration.
Our products support customers
with the most efficient energy savings solutions.
Data-driven services through our IoT platform
grant personalised value.