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9 October 2015 Nathan Wrench Innovation Day 2015 The great balancing act Making the Important, Measurable

The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Page 1: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015

Nathan Wrench

Innovation Day 2015

The great balancing act

Making the Important, Measurable

Page 2: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 2

Optical sensor for subsea oil pipelines

The word “sensor” means different things

to different people.

At one end of the scale, we have this

ruggedised optical instrument, that our Oil

and Gas group has produced for our client.

Measures water-to-oil ratio on sea bed in

3000m deep water and is the size of an

SUV – it allows well management to be

optimised in real time

We used our expertise in NIR

spectroscopy to develop a patentable

sensing system with a 50 fold increase in

accuracy

Then engineered it to work reliably in a

harsh environment for 25+ years

Page 3: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 3

The unprecedented rate of progress in sensing and connectivity make this “ the

fourth Industrial Revolution”

http://prd.accenture.com/microsites/digital-industry/digital.html

18th Century 20th Century 70s Today

Industry 1.0 Mechanical

production powered

by water and steam

Industry 2.0 Mass production

based on the division

of labour and powered

by electrical energy

Industry 3.0 Electronics and IT for

a further atomization

of production

Industry 4.0 Cyber physical

production Systems

Page 4: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 4

Industrial internet

“The world is on the threshold of a new era of innovation and change with the rise of

the Industrial Internet”

- Jeff Immelt

CEO of GE (2012)

• GE moving away from “big iron”

towards intelligent connected

systems to enable predictive

maintenance and the provision of

“thrust hours” rather than locos.

• It is taking place through the

convergence of the global industrial

system with the power of advanced

computing, analytics, low cost

sensing and new levels of

connectivity permitted by the

internet.

• The catchphrase he used that

day, the "Industrial Internet,"

has by now become

commonplace in technology

circles, even though it has

been barely realized in terms

of impact.

Page 5: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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The “Industrial Internet” is creating data

more than twice as fast as any other

sector

Page 6: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 6

The potential value of improved operational efficiency across the industrial

sector is vast…

http://gereports.com.my/post/114013103539/the-industrial-internet-is-already-changing-our

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Better measurement gives you

better control

Page 8: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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I’m going to start with an anecdote from my personal history, as a graduate engineer,

when I first became aware of the gap between what was measurable and what was

important. I’ll call this chapter:

Resist the temptation to “turn it up to eleven”

Page 9: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 9

http://www.ssi.shimadzu.com/products/literature/LC/ELSD_SteviaAnalysis.PDF

Page 10: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 10

http://www.ssi.shimadzu.com/products/literature/LC/ELSD_SteviaAnalysis.PDF

Page 11: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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We observed that

“good” nebulisers

often generated a

small vacuum

Whereas “bad”

ones were

associated with

positive pressure

Page 12: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 12

An end of line test was introduced, and

the vacuum levels were logged as part

of the QA procedures

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Vacuum = “good”

More vacuum

= “better”

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9 October 2015 14

The effect was to make the more volatile samples undetectable….necessitating

urgent repairs out in the field

Page 15: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 15

Our mistake was to make the

Measurable, Important

So, how to start?

Page 16: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 16

There are two basic methods to approaching

the challenges of “Industry 4.0” and adding

intelligence to a product or service

Page 17: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 17

Method 1

Method 1 – the “honeypot method”…..One of the temptations to avoid is the classic

“take our old product, dip it in honey and then roll it in the sensors drawer.” Wherever

the sensors stick, you design them into the product and see what you can do with the

data.

Page 18: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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The current A350 model has a total of close to 6,000 sensors across the entire

plane and generates 2.5 Tb of data per day, while the newer model – expected to

take to the skies in 2020 – will capture more than triple that amount.

The forthcoming A380-1000 – the supersized airliner capable of carrying up to

1,000 passengers – will be equipped with 10,000 sensors in each wing.

MORE sensors – MUCH MORE data

Page 19: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 19

Having collected the vast quantity of data that such a sensor network creates,

this data must be analysed for patterns using modern data analytic techniques

99.26% correlation

Page 20: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 20

This can be massively insightful…but is also fraught with difficulties.

Correlations are much easier to track down after events, rather than before

95.45% correlation

Page 21: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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44 000 000 000 000 000 000 000 000 000 bytes of data per year by 2020….

“There will be over 50 billion machines online by 2020. The storage

space alone will be staggering. Gigabytes will be a thing of the

past. Terrabytes will be a memory. Exabytes will be floating around

in the every day.

By 2020, the human race will be producing over 44 zettabytes of

digital data annually. That’s 44, with 21 zeros. That really is Big

Data. But how will the world cope with that much information? And

more importantly, how can the industry make it work for them?”

GE.

http://gereports.com.my/post/128690900559/ge-predix-article-the-industrial-cloud-is-here

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9 October 2015 22

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Page 24: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 24

Sensors are about information, not data

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Method 2

Make the Important, Measureable

Page 26: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 26

Step 1

1. Consider the business case

Rather than just “adding smarts” to your old product, production line or

service….consider it as part of its overall eco-system. Can you:

Make your product or service unique?

Make you better perceived by your customers?

Reduce warranty claims, materials costs or cost of ownership?

Page 27: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Can you generate an ROI?

Implementing a new sensor system can be expensive – it can

be disruptive…

Is the potential up-side >10x the probable cost of development?

Can you pay back in 3 years…or less?

Page 28: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Step 2

2. Get the criteria right

Page 29: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 29

Consider your

system in context

Page 30: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Consider your system in context

Who needs the information?

– WHEN do they need it?

Real-time? Daily updates? Once a week?

Who owns the problem?

Manufacturing / Service / Customers / Operators?

– Who is prepared to pay for it?

How can you ensure security over your information?

– If it has value to you, there will be hack attempts

Page 31: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Step 3

3. Build ‘the simplest experiment to

show the hardest aspect’ then define

your product architecture accordingly.

Page 32: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Here are some practical experiences in trying to implement a distributed sensor network

for the logistics industry – one of our own developments, that I know some of you are

already familiar with.

The challenge here for us is to reduce wastage of perishable goods where the

temperature has to be tightly controlled.

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9 October 2015 34

Why do this?

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The other important industry using cold chain

logistics is life sciences and pharma – goods

such as biological vaccines, where the efficacy

of the drug is strongly determined by how it’s

handled in transit.

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9 October 2015 36

DropTag® is a simple-to-use, low-cost

condition-monitoring system, comprising

smart sensor pucks, an app and a secure

server.

It allows individuals and businesses to

understand how goods have been treated

at any given point in their journey.

– Temperature

– Humidity

– Acceleration

– Pressure

– Flight detection

Page 37: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 37

DropTag is affixed to individual cold-chain

packages prior to despatch

Critical events are logged in DropTag’s

memory

Adding wireless sensing means the measurements are taken INSIDE the

insulation, but can be read from OUTSIDE

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Truck Journey – Temperature and Humidity

Temperature and Humidity traces provide a wealth of data…

Driving Refrigeration Motor

Human

Classification

Time / hrs

Can see the cooling /

heating cycles correlate

with the vibrations seen.

When the refrigeration unit

cools down the load the

humidity also drops and

fresh dry air supplied.

Page 39: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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But remember – we want information, not data.

The value of this sensing system is not in the volume of data it can produce, but in

the immediacy of the way it answers the question: Is this shipment OK?

Page 40: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Knowing AFTER the event that a shipment is damaged, or not fit for use is

helpful….but is it a solution?

The greatest benefit comes from solving the problem, not from diagnosing it

Max

Min

time

temp At this point, the

shipment is left in

direct sun

By this point, the

shipment is

damaged

The alert needs to

be raised HERE –

based on rate of

change and “in-

context sensing”

Normal cooling

cycles

Page 41: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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In order to maximise the usefulness of a distributed sensor network, we must

employ some localised sensor intelligence

Distil the data into useful, actionable information

– Learn what’s important

– Prevent data-overload

Urgent – provide near real-time access to the information

– Securely, with appropriate access controlled within the relevant organisations

– Remote access, for operators in different regions

Page 42: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

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Consider, from the beginning, the value

of the information…

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…and the value of the immediacy of the

information

AND THE EFFECT THIS CAN HAVE ON

YOUR BOTTOM LINE

Page 44: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015 44

Intelligent sensing is the art of

measuring what’s important

This isn’t just about logistics; it could be a sensor on your production

line, or on your airbus or locomotive….

No amount of data is sufficient to replace some aspects of

management - but the overall task is much easier when you measure

what’s important

Page 45: The great balancing act - Cambridge Consultants€¦ · Optical sensor for subsea oil pipelines The word “sensor” means different things to different people. At one end of the

9 October 2015

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