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Welcome to Fonterra‘s IoT journey
Page 3
We’re a co-operativeOwned by 10,000Farming families.
We’re united by a fundamental belief in the power of dairy to make a difference.
Page 4
GRASS
MILK POOLS
COLLECTIONPROCESSING
PACKING
STORAGE
SHIPPING
SALES
GLASS
UncompromisingStandards fromGrass to Glass
Page 6Confidential to Fonterra Co-operative Group
TraceabilityBuilding proof in our promiseFonterra is committed to delivering what matters most to our Customers and Consumers; providing food that is made to uncompromising standards of food safety and world class quality.
As part of ‘Trust in Source’ we are built the capability to electronically trace the goodness in every drop of milk we process.
We do this to enable our purpose to be the world’s most trusted source of dairy nutrition.
TRACE THE GOODNESS IN EVERY DROP
BACK TO THE SOURCE
AT EVERY STAGE
OF EVERY INGREDIENT
OF EVERY PRODUCT
IN EVERY COUNTRY
Page 7Confidential to Fonterra Co-operative Group
Traceability end-to-end
>10,000 Farms
>750,000 milk collectionsPer year
18 billion litres of milkAround 1 tanker every 15 minutes
Across 140+ countries
26 Manufacturing sites100 plants
>100 Warehouses and Distribution Centres globally
Secondary Manufacturing
1.4 million MT130,000 containers per year1 every 2 minutes
Page 8Confidential to Fonterra Co-operative Group
430,000devices connected2000 PLC’s 1800 PC’s 1400 servers
Page 9Confidential to Fonterra Co-operative Group
3,260,127 Batches20,366,987 Events
Page 10Confidential to Fonterra Co-operative Group
Traceability Our commitment to making total traceability real
Product authentication solution that uses a unique QR code to allows consumers to:
• Check the product is authentic – either pre or post purchase
• Get real time status information and information on place of manufacture
Batch history solution that allows us to track all our batches of product, and the ingredients that went into them:
• Electronic batch information linked from raw milk to customer
INTERNAL TRACEABILITY EXTERNAL TRACEABILITY
Page 11Confidential to Fonterra Co-operative Group
Page 12Confidential to Fonterra Co-operative Group
Traceability Our commitment to making total traceability real
Product authentication solution that uses a unique QR code to allows consumers to:
• Check the product is authentic – either pre or post purchase
• Get real time status information and information on place of manufacture
Batch history solution that allows us to track all our batches of product, and the ingredients that went into them:
• Electronic batch information linked from raw milk to customer
INTERNAL TRACEABILITY EXTERNAL TRACEABILITY
Benefits
• Near real time automated capture and sharing of electronic product traceability data at every step of the process
• Linking and visualisation of entire product flow from collection of raw milk at farm to delivery of product to customers
• Ability to complete trace upstream and downstream electronically from any point the supply chain identifying and locating potentially affected product in 3 hours or less.
Page 14Confidential to Fonterra Co-operative Group
Automation and Operational TechnologyAOT provides technology capability & solutions to enable Fonterra achieve its ambitions.
Operate with confidence• 24/7 support for manufacturing• Asset life cycle management• Capital projects• Cyber security
Improve & transform• Bankable initiatives • Transformation - Going Digital• Strategic capabilities – Historian, IIoT• New enabling technologies – cognition, AI
Infrastructure
Control Systems
Projects
Advanced Process Control (APC) Technology
Transformation
Manufacturing Systems
Page 15Confidential to Fonterra Co-operative Group
From Milk Reception….
….To Palletising
Page 16Confidential to Fonterra Co-operative Group
AOTCAE (Common Automation Environment)OT – Operational Technology
Operational Technology (OT) supportsmanufacturing processes. It comprisesthe hardware, software & networksnecessary to control and monitor plant& equipment e.g. PLCs, HMIs, MOM,model predictive control...
ITCOE (Common Office Environment)
IT – Information TechnologyInformation Technology (IT) is a range of technologies for information processing & other related corporate services e.g. email, SAP, data lake, Ariba, MyFonterra...
Page 17Confidential to Fonterra Co-operative Group
PROD01 | 2,000 PLCs | 1,800 PC’s | 1400+ Servers | 600+ Switches | 54 Firewalls | 50+ Routers | 17 Wireless Lan Controllers | 250+ Access Points
AOT DATA ACHITECTURE
ER
P
SHOP FLOOR – SITE x 26 26 x SERVER ROOMS CENTRAL
40,000,000@ < 200 mSec
2,800,000@ 2 sec
Machines
Pumps
Motors
Valves
Instruments
FTSE
RSView32
InTouch
iFix
Magelis
Panel View
Native HMI Log
FT Historian
iHistorian
FT Gateway
FS Gateway
430,000Real Time
DASCIP
DASTCP
OPC
FT Live Data
OFS
IGS
2,500,0002 sec
220,000@ 2 sec
HMISTORAGE
145,000@ 2-600 sec
SITESTORAGE
DATA CENTRESTORAGE
Raw data archivedafter 7 Years
Enterprise Historian
Collector e.g. AXON
Contextualisation
Site Historian
APC (RT Analytics)
PLC5
SLC500
M340
Quantum
Premium
Momentum
984
Compact
Compact Logix
Micrologix
C Logix
SAPAC
MOM EIGMIG
145,000+@ Various
Raw data kept 30 daysContextualised is kept forever
Kept for 30 days – Years(dependent on HMI storage)
CIP Reporting
Olga
DATA Extract
50+ Web Apps that contextualise
data for users
*2 Some of the 50+ web apps are hosted from the data centre.
*2
*1
*1 Smaller sites (5 of 26) have a collector in the data centre.
*3
*3 Current collector (AXON) captures 145,000 data points.Remainder is from PI apps, APC and contextualisation.
Axon only i.e. must add contribution of PI apps, APC and contextualisation
ISA95:L0-L1 ISA95:L2 ISA95:L3
Field Devices(I/O)
Logic Controllers(PLCs)
Data ServersOperator Stations
(HMIs)HMI Storage
Historian
Page 18Confidential to Fonterra Co-operative Group
Industry 4.0 Digital Transformation
Industry 4.0 is the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things and cloud computing
• 2006 … Part of a high-tech German strategic plan• 2010 … German cabinet re-introduced as the High-Tech Strategy 2020• Has influenced thinking throughout the world
• China’s ”Made in China 2025”• Japan’s “Industrial Value Chain”• India’s “Make in India”
• Autonomous Robots• Machine Learning• Internet of Things• Big Data• Cloud Computing• Augmented Reality
Page 19Confidential to Fonterra Co-operative Group
Industry 4.0 Technologiessubset of technologies – “cloud” is seen as the main enabler
Internet of ThingsThe interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data
Big DataExtremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions
Machine LearningA type of artificial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed
Augmented RealityA technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view
Digital TwinA dynamic software model of a physical thing or system that drives a business outcome
Additive ManufacturingProcess of building three dimensional objects by adding layer-upon-layer of material – i.e 3D Printing
Edge & Fog ComputingComputing close to the source of data. The terms are often interchanged but edge is more common to be at the sensor/actuator or plc. Fog is more common at network boundaries.
Collaborative RobotsA robot intended to physically interact with humans in a shared workspace (often referred to as a cobot)
Advanced AnalyticsA collection of techniques used to model internal and external data to yield valuable insights that can drive business-improving actions (turns information into knowledge and wisdom)
Page 20Confidential to Fonterra Co-operative Group
Our Problem
Our First attempts at Analytics showed us that we were not collecting enough data points with the fidelity we required to gain insights.
Collecting and storing around 250,000 tags at 30 second intervals was appropriate for our past aspirations but we needed to dramatically increase these.
Our internally developed system was not capable of scaling to the 4,000,000 tags at 1 second intervals we sought to achieve
We needed to look at the future
We undertook a procurement process and identified Microsoft as a partner and solution provider.
Page 21Confidential to Fonterra Co-operative Group
What did we do
We engaged with our OT vendors and ran a request for proposal RFP.
Alongside our traditional vendors we asked Microsoft to respond. We were looking for a disrupter.
The RFP concluded that the OT historian vendors could provide a solution however we were excited about the possibility of a collaboration with Microsoft and how this could provide benefit in many other areas.
We created a vision
Page 22Confidential to Fonterra Co-operative Group
What is an Operational Historian?• A historical repository of Operational Data – time-series measurements & state info
• Used for trending and visualisation, data extraction, supplying reporting applications
Factory
Factory
…
Time-series data
Data Extract tool
Data Centre
Currently
• Collect about 250,000 tags across 40+ sites
• 7+ years of data stored
• Not all available data is collected
• Built on old technology and difficult to scale-up
40+ operational facilities
Page 23Confidential to Fonterra Co-operative Group
Future Historian
Factory
Factory
…
Time-series data
40+ operational facilitiesFuture aspirations
• Collect more data - approx. 4 million tags
• Improve accessibility of the data - reduce barriers to using
• New technology – future proof, platform-as-a-service
• Extend data collection to include new data sources
ERP Data
visualisationstorage
Other Cloud
systems
Page 24Confidential to Fonterra Co-operative Group
Value of the new historian
Data: is more accessible is available when needed is trusted has context and is meaningful can be easily and flexibly viewed & analysed can be more easily merged with other data
Increasing the use of our operational data
Current
Future
Enabling new capabilities
Improving our current activities• Troubleshooting, Root-Cause-Analysis• Analytics• Monitoring/reporting• Benchmarking
• Cloud-based apps• IoT device data• Operational data from off-shore - JVs, TPMs, logistics networks • Connecting to other vendor cloud platforms – Kotahi, Lutra,
ABB, Tetra…
Improve our operations and
our decision-making -become more data-led
Page 25Confidential to Fonterra Co-operative Group
Computerisation Connectivity
Dashboards
Visibility
Time series historical data,
Hierarchical data modelling
Transparency
Predictive modelling, AI,
Machine learning
Predictions
Digital feedback Control and Optimisation
Adaptability
Digitally integrated business
Factory of the Future
1 2 3 4 5 6 7
Things
Insights
Actions
Advanced analytics
Integrated Operations Centre
Highly Automated Operations
Digitally Enabled Workforce
Operational Historian
Historian – foundational to strategy
The historian is foundational for Fonterra’s Technology Strategy – to unlock additional value to the business through new technologies
Page 26Confidential to Fonterra Co-operative Group
Historian Vision
The Historian will be Fonterra’s system of record for Operational time series data
The Historian data will be available for self-service visualising and processing with meaningful context
able to be applied
The Historian will allow for efficient deployment and support across Fonterra operations
User experience
Data availability
Enterprise support
Page 27Confidential to Fonterra Co-operative Group
Historian Features
Reliability
Reliable access to data when needed.
A supportable system that is configured,
maintained and monitored across the
enterprise
ConnectivityThe system connects to a variety of data
sources and destinations
StorageThe system stores and retains a large
volume of high fidelity, high quality,
trusted data
ContextWell-defined asset-
and event-based connections between data items to enable users to easily find, view and analyse data in context
AccessibilityAll users can rapidly and flexibly search,
visualise and summarise the data, and extract data for further analysis. The user experience is second-to-none
SecurityThe data and
systems are kept safe and secure e.g. by
not allowing unauthorised access
User experienceData availability Enterprise support
Page 28Confidential to Fonterra Co-operative Group
PROCESS OPERATOR ASSET CARER SYSTEM MAINTAINERIMPROVER BUSINESS OWNER
Plant/Utilities Operators Plant Supervisors Plant Managers Service Provider
Site Maintenance team Instrument Technicians Control System Engineers Calibration Technicians Reliability Engineers Group Asset Systems Manager Regional Engineering Services
AOT Engineers Control System Engineers Automation contractors IS connections
Analytics Engineers Data Scientists Advanced Process Control
team Process Technologists Product Technologists Capital Projects
Food Safety and Quality Laboratories Environmental Scheduling Commercial
FONTERRA ROLESFONTERRA ROLES FONTERRA ROLES FONTERRA ROLESFONTERRA ROLES
Personas
I run the plant safely to manufacture products in spec and on time
Identify deviations to plan/process capability
Perform fast corrective actions and participate in data-driven problem solving
BIOGRAPHY BIOGRAPHY BIOGRAPHY BIOGRAPHY BIOGRAPHY
I am responsible for maintaining the Asset/Plant to its optimum performance Accountable for
preventative and reactive maintenance
SME for Assets
I define and consume data to improve business processes, systems, products and plants Run trials to improve &
change operations Initiate change in
manufacturing through use of technology
Diverse group of users mostly SMEs
Technology and data savvy
I ensure the integrity of our historian system. Ensures system operates
within the acceptable limits Ensure data is correctly
collected Upgrades and maintains the
system to the correct standards
I am responsible for monitoring key performance metrics
I monitor and report on how the business is complying to relevant internal standards, customer requirements and legislation.
Page 29Confidential to Fonterra Co-operative Group
Agile approach
Development team
Product Owner
Product Backlog - features
Development sprints
Incremental delivery
Backlog item 789: Transfer data from PLC to Cloud
Description: Data is transferred via KEPserver to IOT Edge
Acceptance Criteria: Data is stored and visualised in Azure
Priority: 2
Backlog item 789: Transfer data from PLC to Cloud
Description: Data is transferred via KEPserver to IOT Edge
Acceptance Criteria: Data is stored and visualised in Azure
Priority: 2
Backlog item 789: Transfer data from PLC to Cloud
Description: Data is transferred via KEPserver to IOT Edge
Acceptance Criteria: Data is stored and visualised in Azure
Priority: 2
Backlog item 789: Transfer data from PLC to Cloud
Description: Data is transferred via KEPserver to IOT Edge
Acceptance Criteria: Data is stored and visualised in Azure
Priority: 2
Backlog item 789: Transfer data from PLC to Cloud
Description: Data is transferred via KEPserver to IOT Edge
Acceptance Criteria: Data is stored and visualised in Azure
Priority: 2
Roadmap
Use cases
Stakeholders / Users
Page 30Confidential to Fonterra Co-operative Group
January 2020
• Expanded data collection – 8 sites• Around 400,000 tags collected• Cloud-based app – Ethanol Tanks
• User engagement with access to TSI • UI improvements based on our feedback• Power BI connectivity
• Monitoring tools trialled – system, apps, data• DevOps practices – solution build, test, release pipelines• Site deployment process & tools developed
User experience
Data availability
Enterprise support
Page 31Confidential to Fonterra Co-operative Group
Cyber Security Risk
Page 32Confidential to Fonterra Co-operative Group
Specific risks for IOT device implementationsWe are internet enabled from cow to customer, with IOT devices in use across our entire supply chain. Our IOT landscape will continue to grow, so we need to ensure we build the appropriate security processes and controls to protect our production systems.
Security and procurement not being involved in design and implementation of IOT solutions
Top IOT Risks
1 2 3Improper use of Fonterra data and IP by third party vendors
Ongoing support, scalability, consolidation and security controls for IOT solutions
Page 33Confidential to Fonterra Co-operative Group
Known examples and breaches
Sensor installed by third party, using default user name and password
Electro-chemical Chlorine Dioxide Dispensing System at a manufacturing site – treating water in cooling towers
User name: adminPassword: admin
Page 34Confidential to Fonterra Co-operative Group
Keeping Fonterra safe with IOT solutions
3. Educate your teams
► Always get help from IT and procurement when selecting and implementing an IOT solution
► All procurement of IT services MUST be approved by IT as per the Group Procurement Standard. Please talk to your IT Manager if you see an IOT service that may benefit your business unit.
► Understand your obligations and accountability when selecting and implementing IOT solutions
► The standard will guide you through IOT specific risks and considerations as well as outline the mandatory controls required for any new or existing device
► Increase awareness with your teams about IOT risks
► Share this pack with them and/or assign the IOT online training module in MY Fonterra
► Ensure employees never allow anyone to install an IOT device at sites without authorisation
2. Familiarise yourself with
the IOT Standard
1. Engage with IT &
Procurement
Taking these steps helps us to:Operate confidently on a foundation of TRUST
Page 35Confidential to Fonterra Co-operative Group
Mandatory requirements for IOT devices1. The IoT device must be able to be identified both Logically and Physically
2. The IoT devices software and firmware must be able to be updated using a secure, controlled, and configurable mechanism.
3. Local and remote access to the IoT device and its interfaces must be controlled.
4. The IoT device must use industry-accepted standardised protocols for all layer of the devices transmissions.
5. The IoT device must log the relevant details of its cybersecurity events and make them accessible to authorised users and systems.
Thank you