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Highlights from ABB Customer World 2017
March 13-16 in Houston
A Special Report by the Editors of Control

Embrace the fourth industrial revolution 3

Select I/O streamlines project execution 5

ABB Ability gives users tools to write digital future 6

How BASF advocates for cybersecurity 8

Choose the robot service offerings you need 10

Compliance just a gateway app for the FDA-regulated 11

Take operational excellence to the next level 14

Microsoft and ABB partnership creates cloud synergy 16

Turn CAD files into product in fewer steps 18

Alcoa Canada eliminates the middleman 20

A digital foundation for the chemical, oil and gas industry 22

Condition monitoring takes flight with wireless sensors 24

Regs, renewables and consumers reshaping electrical landscape 25

Operational excellence depends on digital discontent 27

Diverse industries feel the impact of technology 29

Bright oil and gas future will rely on innovation, efficiency 32

Utility CEO clears leadership path for women 34

Living on the edge: Consumers driving power grid dynamics 36


ABB CEO Ulrich Spiesshofer describes the unbeatable
combination of technology with people
Paul Studebaker

hen ABB was founded more than 100 years we will not rest our efforts to bring you new technology
ago, people would have said its impossible to serve you, when you need it, wherever you are.
for an airplane to fly around the world with- Over the past seven years, ABB has invested $10 billion
out using a single drop of fuel. Last year, it was done in R&D, organic growth and acquisitions in the U.S. We
by Solar Impulse 2, an inspiration for efforts to run the now employ 20,000 people and operate 60 manufactur-
world without consuming the planet. ing sites in the U.S., Spiesshofer added. Here, ABB is
In 2005, who could imagine there would be 7 billion number one for power grids and motion, and were the
devices in industry connected to the industrial internet? first global company to produce robots in the U.S.
And more than 25 billion by 2020. Today, a sensor on a
motor can monitor its health and performance, prevent- Energy revolution touches everyone
ing downtime and lost production, enabling better up- The fourth Industrial Revolution affects everyone,
time, higher speed and better output; increasing motor inside and outside industry. So does the revolution in
life by 40% and reducing energy consumption by 10%. energy. Renewables are kicking into the grid, hand-in-
Do that across 300 million motors, and the energy sav- hand with oil and gas, Spiesshofer said. On the sup-
ings equal the total output of 100 of the worlds largest ply side, utilities must cope with more feed-in points,
power plants. longer distances, volatility and unpredictability. On the
In 2016, Google artificial intelligence (AI) beat South
Korean champion Lee Se-dol in four out of five matches for
the worlds championship in Go. The same AI is expand-
ing the roles of robots by giving them the ability to learn.
These are technologies ABB stands for and applies
in utilities, industry, transportation and infrastructure,
said ABB CEO Ulrich Spiesshofer in his keynote speech
at ABB Customer World, this week in Houston. ABB is
transforming, and is now globally number one or num-
ber two in its four areas: number one in process control,
motion control, power transmission and distribution,
and number two in electrification and robotics, Spiess-
hofer said. We want to be your partner of choice, and

Digitalization can bring a quantum leap in utilization,

where a few percent can make you a hero. If you stand
still and say, This is not for me, your competitiveness
will be significantly deteriorated. CEO Ulrich
Spiesshofer deliver the opening keynote address at ABB
Customer World 2017.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

demand side, electric vehicle charging is growing, and tributed process control, electrical control and safety sys-
data center power consumption is rising, he said. Elec- tems with collaboration.
trons must arrive safely, reliably and predictably at the In discrete industries, robotization is an opportu-
point of consumption. nity to drive prosperity. Combining robots and people
The grid used to be simple, flowing predictably in one safeguards competitiveness by increasing productivity,
direction. Now a house might be an energy producer in Spiesshofer said. ABB has started up the first global ro-
the morning, a consumer in the evening, and overnight bot manufacturing plant in the U.S., in Auburn Hills,
with an electric vehicle, a storage device, all depending Mich. Engineers are working with U.S. customers to
on the time of day. do they want, he said. Demand is so high, we have al-
Power must travel long distances. The 40-year-old, ready announced an expansion of the plant.
800-mile-long Pacific Intertie is being upgraded to 4 GW
capacity, and is one of 220 such systems around the world. The future is up to you
ABB is involved in half of them, using its high-voltage di- Digitalization is providing opportunities for all kinds of
rect current (HVDC) technology for efficiency. industries. Telecom, media and finance are well along,
On the local level, after a Con Ed substation in Lower but factories, plants and utilities lag. Industry still has
Manhattan was damaged by Hurricane Sandy, ABB up- great potential for improvement, which is an opportu-
graded it and eliminated 80% of its cabling by replac- nity for you and for us, Spiesshofer said. Plants need to
ing copper networks with fiberoptics. Its footprint is now seize this opportunity to drive maintenance, operations
30% smaller, and it has remote monitoring capabilities and control to new levels.
to streamline maintenance and improve reliability. ABB has been a hidden digital champion, connect-
ing 70 million smart devices in 70,000 control systems,
This industrial revolution is special but not known for it, Spiesshofer said. Now were add-
The first three industrial revolutionssteam, the assem- ing an overarching digital architecture to combine them
bly line, and automationreplaced muscle power with with human expertise: ABB Ability.
machines. The fourth replaces brain power with AI and Under this banner, AI, control and connectivity will
computer processing capability, Spiesshofer said. It ex- drive digital differentiation, Spiesshofer said. ABB Abil-
tends outside the factory floor to every enterprise, so it ity combines the digital Lego boxthe cloud, networks
has a much larger size and scope. and deviceswith domain expertise and process know-
Factories are familiar with automation, offices not how to enable you to serve your customers better.
so much, Spiesshofer said. Job changes used to occur ABB Ability helps us assess, to know more about pro-
between generationsa parent might be a farmer, their cesses and situations, to predict what will happen, to
child a factory worker. Now workers often must change make manufacturers able to produce more by avoiding
careers within a generation, he said. We must seize downtime, improving processes, and running them in a
this opportunity, but we must also take people with us smarter way to achieve OEE better than anyone in the
despite the unprecedented speed of change. world, Spiesshofer said. ABB Ability is ABB offering to
We need to avoid creating anxiety about work. His- work with you and bring it together. We are listening to
torically, jobs may change, but the amount of work goes you, so we can create the value that you want.
up. New jobs appear for solution developers, application Digitization can bring you a quantum leap in utili-
engineers, software specialists, etc. We must invest in zation, where a few percent can make you a hero. If you
education, to be sure people prosper. stand still and say, This is not for me, your competitive-
ABB supports this transition with knowledge centers ness will be significantly deteriorated.
such as its Collaborative Control Center for Oil & Gas Its a tremendous opportunity for prosperity, wealth and
in Houston, and its System 800xA, which combines dis- employment. Lets write the future together, ABB and you.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Single-channel input/output system severs hardware
and software design dependencies
Keith Larson

BB took a significant step forward to further ect, then select the type of I/O much later. Because the
streamline the execution of its customers au- base hardware for every type of signal is the same, auto-
tomation projects with the release of Select I/O mation system designers need only know an approximate
at ABB Customer World this week in Houston. Select I/O count at the design-freeze milestone of an automation
I/O is a redundant, Ethernet-based single channel input/ project. Designers can then order standardnot custom
output (I/O) system that supports ABBs next generation I/O module bases and enclosures, knowing that they have
project execution model. Called Intelligent Projects, full flexibility to alter the mix of I/O types at any point in
the new methodology streamlines execution while de- the project. Further, since control system hardware com-
creasing complexity, project delays and cost overruns. ponents are now standard issue, the factory acceptance test
The cornerstones of ABBs Intelligent Projects execu- (FAT) of control system hardware is a thing of the past.
tion model are efficient cloud engineering, digital marshal- Second, because each channel can take on any signal
ling, standardization and automated data management, type and be digitally marshalled to any controller, the
said ABBs Dan Overly, head of product management - oil, need for physical marshallingand all those cabinets
gas and chemicals. With the release of Select I/O, all of
the data points that make up a project, whether hardwired
to the control system or part of an integrated electrical sub-
station, are now able to be digitally marshalled into the Sys-
tem 800xA architecture. This makes it possible to execute
projects more efficiently by decoupling tasks and becom-
ing more resilient to late changes and delivering projects
faster and more cost effectively.
Available for process automation and safety applica-
tions, this extension to the System 800xA family of Flex-
ible I/O Solutions allows for each I/O channel to be
individually characterized using a plug-in signal condi-
tioning module (SCM). This approach streamlines proj-
ect execution in a number of ways.
First, Select I/O allows users to install standardized cab-
inets with the bases for field wiring early during a proj-

Select I/O makes it possible to execute projects more

efficiently by decoupling tasks and becoming more
resilient to late changes and delivering projects faster
and more cost effectively. ABBs Dan Overly on how
single-channel I/O allows the companys customers to
reduce project cost and schedule risks.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

and terminations, toodisappears completely. In addi- With this extension of the ABB Ability System 800xA
tion to lowering costs and speeding execution, this has offering our customers get many new cost saving oppor-
the added benefit of significantly reducing overall sys- tunities for their automation projects, said Ilpo Ruoho-
tem footprint, which can be critically important in an nen, managing director of ABBs Control Technologies
application such as an off-shore oil rig where floor-space business unit. The flexibility that Select I/O brings with
and even allowable weight are at a premium. Instrument it will certainly change the way of executing projects.
installation techs save time, too, because they can simply In the end, single-channel, configurable I/O does
land their wire pairs on the most convenient pair of I/O much to sever the serial design dependencies that
terminations and move on to the next. plague the execution of automation projects. Hardware
The Select I/O solutions network is connected via and software aspects of automation system design can
an Ethernet Fieldbus Communication Interface (FCI) proceed in parallel, compressing schedules and reduc-
with embedded redundant switches. In addition to being ing risk. The Select I/O offering complements a range
field ready with temperature ratings of -40 to 70 degrees of ABB software tools and new execution workflows to
C, each channel is galvanically isolated, current limited ensure that these streamlined, parallel engineering pro-
and has a unique field disconnect mode for added pro- cesses meet up in a fully tested, fully functional automa-
tection and flexibility. tion solution.


Expertise, digitally deployed, will unlock efficiency
and productivity in each users applications and facilities
Jim Montague

hats better than vast, deep and longtime platform provides solutions in ABBs three primary ap-
experience? Almost nothingexcept if that plication areas: utilities, industry, transportation and in-
experience is organized, digitalized and frastructure. It also delivers secure, digital solutions on
contextualized, so users can make better, faster deci- premises with fog computing from devices to the edge,
sions that improve performance, optimize applications, in the cloud that goes up from the edge, and now in a
reduce downtime and increase profits. projected intercloud strategy. Indeed, its among vari-
This is the reasoning behind ABBs launch this week ous cloud platforms where meaningful integration can
of its ABB Ability platform, solutions, products and ser- be performed most easily, Jouret said.
vices. In short, ABB Ability encompasses the secure, Were at the beginning of a new age, Jouret con-
digital deployment of the companys decades of proven tinued. Theres risk, of course, but theres also great
know-how in automation, electrification and many other opportunity for capturing performance and value.
technical disciplines to unlock efficiency and productiv- ABB has delivered that value by connecting sensors
ity in each users applications and facilities, according to to devices, and creating insight with analysis and as-
Guido Jouret, chief digital officer (CDO) at ABB. sessment. These assessments are increasing, but this is
ABB Ability was developed in conjunction with Mi- where our competitors stop. ABB, however, makes the
crosoft, which provides common technologies for en- extra effort to harvest data, take control, and enable us-
abling device, edge and cloud application delivery. The ers to do more.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Were at the beginning of a new age. Theres risk, of
course, but theres also great opportunity for capturing
performance and value with ABB Ability, Guido Jouret,
chief digital officer at ABB.

For example, ABBs System 800xA distributed control

system has long been able to sense, analyze and allow us-
ers to take actions to drive efficiency. But Jouret reported
that ABB Ability System 800xA and its new Select I/O pro-
grammable input/output solutions will enable users to do
even more.
ABB Ability 800xA will do everything it already does,
but now were adding self-learning so it can perform
even better, added Jouret. Were looking at integrating
supply chains, and integrating with upstream and down-
stream users.

Know-how fuels digital in industry

What qualifies ABB to play and lead in the emerging energy by 30% and increased product life by 30%. These
digital revolution? Jouret answered his own question by applications include connected robots, manufacturing
reporting that, ABB has a $400-billion installed base executions systems, energy assessments, cybersecurity as-
and 150 years of domain expertise, so we have the con- sessments, digital simulation for robot deployment, power
text to know, for example, Tuesday is the day when a quality monitoring and demand-response, distributed
particular operator shuts down motors for maintenance, control systems, remote monitoring and optimization.
explained Jouret. The transportation and infrastructure sector improved
This is why the IT side typically struggles in indus- proactive detection of faults by 90%, reduced maintenance
try because they dont have this kind of experience. We costs by 20% and reduced energy cost by 5%. These appli-
have this expertise in mechanical and other systems be- cations include remote monitoring for ship electrical sys-
cause weve been in these industries for decades, and tems, building automation, vehicle-to-grid demand/supply
have institutional knowledge from our users, and that coordination, navigation optimization for fleets, EV charg-
knowledge is increasingly codified. ing with cloud management, flash-charging for electric
Jouret report that ABB Ability is presently deployed in buses, and energy management for mega-datacenters.
more than 180 applications, either existing ones that have Were coordinating demand and supply of power,
been extended or new ones that are being built. Some of such as saving ship fuel by 5% by analyzing local
these applications and the results they are delivering: weather, added Jouret. The cloud can also help man-
Utilities have reduced installations times by 40%, age power for datacenters, which can use up to 1 giga-
maintenance costs by 50% and outage times by 50%. watt of power. All together, ABB Ability has thousands
These applications include asset performance manage- of customers, such as PG&E, Dong Energy, American
ment, distributed energy resource management, main- Electric Power, Shell, BMW, Cargill, BASF, Vale, Tata
tenance workflow management, energy market trading Steel, Microsoft, Royal Caribbean, Volvo and others.
systems, automated digital substations, standard IP com- This is because ABB enables their uptime, speed, yield,
munications and microgrids. reliability and safety. And its also why were excited to help
Industry has improved productivity by 200%, reduced them use ABB Ability to write and create new futures.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

While the need for continuously monitored and updated
cybersecurity is increasingly urgent, convincing some
organizations to pay for it can still be difficult
Jim Montague

o help other end users show their managers, ac- one of our sites, but we havent seen a lot of value in them
countants and corporate leaders about the value of yet. Our BASF4.0 team was established looking at these
cybersecurity, Keith Dicharry, director of process new smart devices, and theyre looking at applications that
control and automation for BASF in North America, pre- will bring value moving forward. We will need to address
sented Making the Case for Cybersecurity Investment the challenges and obstacles to implement, but there is
this week at ABB Customer World 2017 in Houston. value in the technology.
Our worldwide automation strategy at BASF begins
with a pyramid of doing the basics before adding new Data context needed
functions and new technologies, began Dicharry. The Dicharry added that BASF and other process industry
fundamental tasks at the base of that pyramid include players are suffering from an everything, everywhere
safety and security. The first devices that did machine-
to-machine communications were pneumatics, and the
strategies used by todays controls arent a lot different.
The change now is that digital devices can be hacked
into, and there are people trying to get in.
Unfortunately, instead of dealing with cyber probes, in-
trusions and attacks in a logical way, Dicharry reported
that many process industry users are suffering from shiny
things disorder (STD). This is the desire to get smart
phones, tablet PCs and other new technologies into the
hands of staffers, and attract new employees, without first
considering whether those new technologies will justify
investment in them and if they can be applied securely.
A lot of STD things are making their way to smart de-
vices at BASF, so we try to slow them down some, and
first find out if theyre really going to add value, explained
Dicharry. Theres an attitude of if you build it they will
come, but I think thats the reverse of what should be hap-
pening. Wed started implementing mobility devices at

If we do a good business case and risk assessment for

cybersecurity, were usually able to get funding, Keith
Dicharry, director of process control and automation for
BASF in North America.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

syndrome, which seeks to make all data available at all tion Security Team and a Global Technical Engineer-
levels, and do it everywhere, all of the time. Weve been ing Automation Security (GTEAS) team. We also got
collecting data for years, and we have huge volumes of it. our IT security side involved to see what they could add
Its great to get it to the right hands, but I dont think my to the process side. We found there were a lot of holes
COO is going to want all of it, or would even know what in that approach at first, so we also developed a com-
to do with all of it, said Dicharry. Each user needs data bined operations technology (OT)/information technol-
that relates their role. We also struggle with contextual- ogy (IT) Security Operations Center, which is up and
izing data, vetting information, and getting it in front of running and meets monthly.
the right person at the right level for the best decisions. Weve also been developing a cybersecurity solutions
Because of industrys misplaced focus on STDs and ev- catalog, so when we find vulnerabilities happening, we
erything/everywhere, Dicharry worries that some users can pull a solution from the catalog that includes input
may be making the foundations of their own automation from other sites, or we can develop a new solution with
pyramids less solid. If we look at our distributed control help from partners like ABB.
system now, its apparent that were not fully utilizing what
we already have, explained Dicharry. Yet we want more Business case for protection
data, and we want to pay less for it. Weve got plenty of Dicharry reported that one way he and his BASF col-
data already, but it isnt in contextits not valid for the leagues get their company to pay closer attention to cy-
guys in the trenches or for upper management. bersecurity is by getting them to understand that its very
similar to process safety. If people can understand that
Seek smart security theres a problem, its easier to justify funding for it, he
Dicharry reported that its important to beware of the said. Theres just no magic bullet. We cant show return
two words its secure because most static security mea- on investment on preventing cyber attacks, but if we do a
sures will only be effective for a short time. If theyre good business case and risk assessment for cybersecurity,
not set up correctly, smart devices are very accessible, were usually able to get funding. Weve even been able
vulnerable and hackable, he said. Most vulnerability to add cybersecurity to BASFs overall automation road-
testing firms are very successful at breaking into process map, and were benchmarking where BASF is on cyber-
industry companies and applications, which are also af- security compared to how other companies are doing.
fected by human factors, too. Often as not, these in- Once a cybersecurity risk assessment is done, it goes
clude physical security breaches as well as purely cyber to the Automation Security Team, and then to senior
intrusions, he said. management for funding. In our process, we dont try to
From a big picture perspective, cybersecurity at BASF use scare tactics. Weve had to deal with some issues but
is handled much like it is at other process industry com- have been able to keep them from impacting production
panies: by IT at Layers 3 and 4 of the Purdue Control thus far.
Hierarchy Reference Model, which include manufac- Dicharry added there were some early disputes
turing execution systems (MES) and enterprise resource within BASF over cybersecurity policy. For example,
planning (ERP) systems. Layers 1 and 2 are outside of we wanted to allow ABB to have remote access to some
ITs scope, and are typically handled by proprietary sys- equipment to assist troubleshooting, but ran into a brick
tems. Layer 3 is a gray area, so we want some kind of cy- wall with cybersecurity experts. Now, theyre getting
bersecurity middle ground from there on down. There more OK with managed remote access, he said. My
are very diverse solutions below Layer 3, but we can use advice is be realistic, not pessimistic. We want to make
some IT methods, explained Dicharry. chemicals and profits, and we have to use technology
We wanted a better plan, so we set up our Automa- thats secure to do it.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Five Connected Services from ABB leverage digitalization
Mike Bacidore

ervices are more valuable when theyre digitalized with ABB Ability Cloud Services.
and connected. Thats the philosophy behind the
ABB portfolio of offerings for robotic reliability Five service options
and optimization. Connected Services is an improved ABB Connected Services, formerly known as remote
way to manage and monitor your ABB robots, said David services, is broken down into five different solutions be-
Quevedo, technical support manager, discrete automa- cause not everyone needs the same things. The services
tion and motion division, in ABBs robotics business unit. are offered cafeteria-style with separate costs per solu-
We have a 24/7/365 operation, so were always there. tion. The five solution offerings include condition moni-
Quevedo explained how market trends have pushed toring & diagnostics, backup management, fleet assess-
the evolution of robotic services during his presentation ment, asset optimization, and remote access.
at ABB Customer World this week in Houston. Condition monitoring & diagnostics features access
We are moving from cost-based to value-based ser- to the robot user interface, which includes an alarm and
vice enabled by digitalization, he said. We used to be diagnostics dashboard with statistics. Its free during the
cost-focused, time-based and reactive. Weve moved to factory warranty period, if the customer connects, and
value creation, where we want to tell you how every- then $250/robot/year after that.
things working and be able to predict failures with re- Even when the robot is working fine, we are doing diag-
mote monitoring thats condition-based and predictive. nostics, said Quevedo. Connected Services scans the con-
With new tools and service offerings, ABBs next direc- troller and the arm, so we can trend the data. When theres
tive is to help customers to get to increased productivity, in- an alarm, we can tell you whats happened and how to pre-
creased mean time between failure (MTBF) and reduced vent it in the future. Through ABBs MyRobot interface,
mean time to repair (MTTR). Digitalization is but a means alarms and other data can be monitored by the customer.
to providing its customers with better peace of mind.
Digitalization enhances our capabilities to support
and add value, explained Quevedo. We are moving
into the digitalization market. Were increasing up-
time, reliability and efficiency throughout the lifecycle.
In 2007, we were already a pioneer in robot remote ser-
vices, with optional hardware allowing for reduced time
to fix. Today, we are Connected Services, the HTML5
customer interface and the Internet of Things, Services
and People. Were looking to move into the application-
monitoring service, and we want to move into the cloud

Were increasing uptime, reliability and efficiency

throughout the lifecycle. ABBs David Quevedo
explained the companys a la carte offerings for robotic
service at ABB Customer World in Houston.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Every time we run these scans, we take those measure- We look at the deviation of estimated lifetime for compact
ments, and we trend them, explained Quevedo. The My- gearboxes. This allows us to identify issues with the way the
Robot dashboard includes indicator lights based on the robot is integrated. Also, if you have key robots, it allows
findings of an internal prediction analyzer. When the you to monitor the normal average usage, so it predicts how
indicator changes from green to yellow, we know theres long the motor or the gearbox will last if you continue to
a problem. Its not a failure, but theres something there run the robot the way youre running it. The algorithm we
to look at. We can monitor fans, belts, memory and pro- have for torque, deceleration and speed is used.
cessors. We know how theyre supposed to work and can For $250/robot/year, asset optimization can help to
tell when theyre not. Torque, deceleration and speed are make the most efficient use of your robots. Our team
monitored on all axes, and we use mechanical condition in India monitors every single event, including alarms,
change to predict failures, said Quevedo. failures and the way the robot is working, Quevedo said.
Backup management is another offering that costs You get a report once a quarter.
$150/robot/year. We have a way to automatically sched- Finally, remote access is available. Its a way for us to
ule backups, Quevedo explained. Even if the machine have full access to the robot even when we are remote,
is running, were connected to your network. A cus- explained Quevedo. We can connect to the robot re-
tomer can see all of the backups from the MyRobot web- motely and help you to do things like load software. The
site. It can be restored on the server or from the cloud. remote access gateway box includes a physical switch
There is not a single day we dont get a call from a cus- that the user must switch on to allow access. The ser-
tomer who needs to restore from a backup, he said. vice costs $600 for units in which the gateway is already
Fleet assessment is a means to lifecycle management for installed and $2,000 if the gateway box is necessary.
gearboxes and motors. Released last year, its cost is $100/ When a new robot is sold today, it comes with em-
robot/year. To be able to find out if your system is working bedded Connected Services, concluded Quevedo.
as optimally as it could be and how long it will continue The old solution was a 3G box that talked to the Inter-
running, we compare the robots at your site to all of the net. Now, with our embedded solution, all of the soft-
robots we have connected, explained Quevedo. We com- ware for Connected Services comes with the robot. If
pare how much the robot is working, how much torque. you are connected, we can see.


Food & beverage companies that digitize data stand to gain
much more than easier compliance with FDA regulations
Paul Studebaker

team power brought us the first industrial rev- Today, weve connected 6.4 billion things, by 2020
olution in 1712, the assembly line the second it will be 20 billion. Increased connectivity offers huge
around 1870, and automation the third with the potential for improvements in many areas, said Mat-
PLC in 1969. Today and tomorrow, were experiencing thias H. Erhardt, segment manager, Food & Beverage,
the fourth industrial revolution, Industrie 4.0, with pro- ABB, to attendees of his session, Data use and com-
liferation of information technology and the ability to pliance in FDA-regulated food and beverage environ-
visualize the interactions of people, things and services. ments at ABB Customer World this week in Houston.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

As data is passed up, its integrity must be retained,
and you want to take care of all the data, not just the
legal requirement, to gain the advantages. ABBs
Matthias Erhardt discussed the importance of data and
compliance in the context of FDA-regulated food and
beverage environments.

The food and beverage industries as a group are

fairly far behind from a digitalization perspective,
but growth is accelerating, Erhardt said. Today, the
industry is moving from paper-based systems to the
cloud extremely quickly, with the number of applica-
tions expected to triple in five years.
call $1 billion. Food poisoning causes 5,000 deaths
Driven by compliance per year and sends 300,000 people to the hospital ev-
The food and beverage industries look simple on the ery year, Erhardt said. And it does lasting damage to
outside, but a typical facility includes a labyrinth of companies, because 83% of consumers remember the
machines, process equipment and conveyor belts en- brands involved in recalls, and 55-57% temporarily or
abling a flow of materials from receiving through the permanently discontinue buying them.
plant to the stores and consumers, with plenty of op- Traceability with digital records can significantly
portunities to make a mistake. We want to be sure reduce those losses, yet paper-based recordkeeping
we dont get sick, Erhardt says. At the same time, persists because its legal, you can put a signature on
new business models call for flexible marketing and it, and its easy. The same approach can be used to
production, for example, Coke in seasonal bottles for document batches, standard operating procedures
Christmas and Easter. They have to be done on time, (SOPs), production orders, shift records, etc. But its
and it takes a lot to do it. hard to search or analyze, hard to make reports or
Data digitalization helps ensure compliance, flex- provide traceability. And you need enough climate-
ibility and more. Industrie 4.0 is being made possible controlled storage space for seven years of records (10
by available IT infrastructure including the cloud, years for adverse information).
big data, cybersecurity, sensors and software. Auto- FDA Title 21 CFR Part 11 has allowed electronic
mation is enhanced with software simulation and ro- records since 1997. Its not a rule, but a guideline,
botics, so we can now simulate and optimize a pro- and its todays guiding principle for other standards,
duction cell in a virtual environment, Erhardt said. Erhardt said, and its only as good as the quality of
The opportunity exists to improve asset utilization, the data.
labor productivity, safety, inventories and quality, as
well as balancing supply with demand, raising energy Quality data, everywhere
efficiency and improving waste management. Digitalization is a straightforward, though sometimes
complex, process that starts with rationalizing processes
Data delivers more and defining your needs. First, align processes and trans-
The average product recall costs $10 million, but can late operational objectives into measurable success indi-
cost much more. In recent years, for example, a spin- cators, Erhardt said. Align operational levels and pro-
ach recall cost $350 million, and a peanut butter re- cesses, and standardize workflows between work centers.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Then go digital. A fully digitally-integrated plant and areas.
will acquire data starting at raw materials and at every ABB zenon offers scalability and the necessary ca-
production step. Data from sources such as materials pabilities to ensure data integrity. It has hardware
warehouses, automated guided vehicles (AGVs) and drivers, fieldbus and other connectivity to bring in di-
silos will be provided to the manufacturing execution verse equipment, and communicates up to SAP, Mi-
system (MES). Data from plant-area sources such as crosoft Dynamics, process gateways, SQL, OPC-UA
bar code scanners, scales, control systems, picking, and more. Security features are integrated, and it can
packaging lines and palletizing will be collected by be used across the plant utilities and building systems
the production system. All data is passed up to the as well as production, packaging and warehouse ap-
enterprise system to use for eliminating waste, maxi- plications.
mizing flow, empowering operators, improving ergo- Once you have the data, you can do a lot with it,
nomics, speeding changeovers, minimizing inventory Erhardt said. Complete visibility and control gives
and making sure each step is done right the first time. you the opportunity to improve the process, empower
Ensure data integrity and security through storage, intelligent decisions in real time, and optimize pro-
routing and processing. Define digital workflows and duction efficiency and performance.
processes and role-based access control, and allow for Today, regulatory food safety compliance is too of-
digital signatures. Assign access to the data for audit ten documented through manual and heterogeneous
trails, alarm management, historian and reporting processes, Erhardt said. Costly, time-consuming and
functions, batch control, recipe management, shift error-prone reporting may cause confusion, and ac-
information and maintenance. cess to archives and data storage is difficult. As a re-
Consider the potential for real-time reporting of sult, its often seen as an impediment to profitability.
electronic batch records, quality reports, overall Its a manual processyou dont know where you are
equipment effectiveness (OEE) and utilization, en- on productivity, and you dont where you are on qual-
ergy management, production benchmarking and ity, he added.
alarms. Instead, we want regulations to support standard-
As data is passed up from plant-floor systems, its in- ized quality measures for production processes, Er-
tegrity must be retained, Erhardt said, And you want hardt said. Digitalized processes generate data that
to take care of all the data, not just the legal require- can be used to report KPIs in real time, with ubiq-
ment, to gain the advantages. uitous access to information. This allows transpar-
ency, which is the base for better business decisions,
Start at the network lower cost of poor quality [CoPQ] and performance
Erhardt recommends food and beverage plants con- f lexibility.
sider starting their digitalization initiative at the net- ABB provides all the software required to imple-
work level with a data management system such as ment a digitalized production strategy, as well as
ABB zenon. Start with one machine, and expand the ability to collaborate on it, Erhardt concluded.
machine-by-machine by bringing each one up to the Lets make your todays weaknesses your tomorrows
network, he said. Then add additional equipment strengths, together.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Panelists propose a range of possibilities for improving
productivity and cutting costs in new and existing plants
Paul Studebaker

or years, high and rising oil and commodity of looking at things, said Jose Bustamante, executive vice
prices spurred plant construction, expansion president, business development and strategy, Fluor Corp.
and modernization without much regard to cost. We must collaborate more, to discuss the standards, spec-
Then prices fell, bringing many projects to a screeching ifications and practices we have taken for granted. How
halt. The ensuing hiatus has given owner/operators and can we change them to make them more cost-effective?
engineering/procurement/construction (EPC) compa- Clients come to Fluor with their latest designs, and those
nies several years to reconsider their options for how they might save 10-15%. We want to start from scratchsome
go about their businesses. call it zero-basedand ask, what are their goals? Whats
Now, prices have started to rise and there is new inter- the minimum kit? Bustamante said. Then together, Fluor
est in projects to boost capacity and improve productiv- and the client can add HSE, safety systems, redundancy,
ity. But rather than simply return to the boom time etc. where its actually needed, he said. With this ap-
methodologies of the past, companies have the oppor-
tunity to evaluate their methods in light of recent rapid
advances in engineering methods, automation and the
connectivity provided by commercial information tech-
nology and the Industrial Internet of Things (IIoT).
The Wednesday morning keynote panel discussion at
ABB Customer World this week in Houston, titled Next
level operational excellence, roamed over a wide range
of topics related to improving project costs, uptime, pro-
ductivity and efficiency.

Todays projects can cost less

Today, most companies need higher capital efficiency
to make good use of expenditures and get better returns.
This is true not only in oil and gas, but in the public sec-
tor due to public deficits. Theyre concerned about fund-
ing and deploying their resources in a cost-effective way.
We have to change the way we are looking at and ex-
ecuting projectsnot just squeezing prices, but new ways

Wireless systems and training are required to take

advantage of new ways of doing things. UNACEMs
Ricardo Rizo Patron on the innovative cement-makers
willingness to embrace new technologies.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

proach, we can save 30%with better delivery. gine generators providing 42 MW. We have our own
Capital projects need better control of schedule and engineering department, so we are both supervisor and
risk. When commodity prices rose, there was a strong owner for engineering, construction and startup, said
incentive to do projects the same way as ever, but re- Ricardo Rizo Patron, chairman, UNACEM Corp., a
search shows global project costs rose and schedules still Peru-based global supplier of concrete and ready-mix
ran late, with 64% of projects overrunning on cost and with operations in Peru, Ecuador and the U.S.
73% on schedule. UNACEM is centralizing production management
Now oil and commodity process have come down, and for all its plants, with control loop optimization, expert
we need a reset, said Peter Terwiesch, president, indus- systems and energy efficiency management done over
trial automation division, ABB. Shaving 5-10% wont do the cloud, so it can manage its energy and peaking re-
it when prices are half, so theres been less project activ- quirements.
ity. Now we are seeing some new, big projects where weve In OpEx, we see advances in safety, productivity
been able to apply our latest methods, with examples show- and efficiency, Terwiesch said. People can stay out of
ing 25% and even more than 50% cost reductions. harms way through remote operation, which can also
Some of that is due to reductions in bulk material and enable continuous operation to optimize the use of
labor costs, Terwiesch said, But a lot is not, and were plants and equipment.
seeking to make those savings structural in our methods. UNACEM is testing robots in trials for packaging ce-
Project cost reductions are putting pressure on auto- ment in sacks, which is how its commonly delivered in
mation costs, so we are seeing more cloud engineering, Peru and Ecuador. Were testing drones for surveying our
digital marshalling, and automated data management quarries and inventories, and we want to use autonomous
for pulling together the tags. These can result in 30% vehicles in the quarries to prevent accidents, Patron said.
savings in CapEx. The company sees potential applications in logistics (so
To shorten the project timeline and improve build it can know where its trucks are), in online transactions
quality, Bustamante said, Weve moved more of the (so customers can order on the web), and in distribution,
construction work into fabrication shops, where it can be where artificial intelligence could guide its trucks more
done under controlled conditions, in parallel with other efficiently through the heavy traffic in Lima.
activities to shorten the project. For power generation, we are looking at more renew-
For higher on-site personnel efficiency and safety, Fluor ablessolar, biomassand at optimizing distribution
uses virtual reality and personnel tracking systems. Weve on both the supply and demand sides, Patron added.
been using virtual reality for 15 years now, Bustamante We want energy storage to store hydroelectric power
said. Fluors system for tracking badges can monitor 15,000- from afternoon rains for use at other times.
20,000 workers. We can know where they are in case of For engineering, we need ways to manage drawings for
evacuation. We know where the hazards are, and when electrical, mechanical and civil engineering so they are co-
people approach them, he said. We can track individu- ordinated and dont fight with each other. This is very im-
als, such as visitors and new employees who are at most risk portant for both greenfield and brownfield applications.
of injury. We can make sure they stay where they belong.
Declining downtime
Smoother operations Research has shown that unplanned downtime costs $20
Whether under construction or running for decades, billion per year in the oil and gas industry, and 80% of
plant owner/operators and engineers are eyeing the op- that is avoidable. We can help keep operators alert 24/7
erational benefits of connectivity and the IIoT. with ergonomic control rooms, digitalize the plant floor
Our Peru plant has 220 MW, 20 MW and 25 MW for new levels of productivity and add sensors to motors,
hydroelectric plants, and seven natural gas-fueled en- pumps and compressors to assess health, predict main-

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

tenance and extend service intervals. And we can avoid the measurements from the beginning.
power interruptions, Terwiesch said. Together these On the capital side, we do close to 1,000 projects an-
are worth 30% in operational savings. We see a wealth nually, and have a lot of information on how to design
of opportunities opening up. and build for cost and reliability. And we have a system
As a foundation of data analysis for condition mon- to leverage this.
itoring, Weve been capturing information from UNACEM has installed wireless sensors for motor
maintenance, operations and asset management for monitoring and predictive maintenance, Patron said.
40-50 years, said Bustamante. Fluor has informa- Wireless systems and training are required to take ad-
tion on how to prevent failures, and we can design in vantage of new ways of doing things.


Much of the digital future hinges on these corporate giants
Mike Bacidore

he Industrial Internet of Things (IIoT) and dig- and this space, he said, casting about the room, is go-
italization are driving innovation. As industry ing to have a big impact on society. The people in this
segments increasingly go digital, connecting room are using the technology that feeds into thatma-
them and their data via the cloud has quickly become a chine learning, cloud learning. Were excited about part-
priority with benefits. nering with ABB on the Ability platform.
Disruptive changes are more likely to affect industries
that have yet to be digitalized. Using lessons from seg- 2% of a trillion
ments ahead of the digital-implementation S-curve, Avi- ABBs Jouret sees tremendous upside in the amount of
jit Sinha, Microsofts director of business development value that can be created, based on the 15 primary in-
for intelligent cloud and IoT, and Guido Jouret, chief dustries that ABB covers. These industries can create
digital officer for ABB, sat together for a lunchtime panel a trillion dollars of value, he explained. And because
discussion, moderated by ABB president of the Ameri- many of ABBs customers are still on the knee of the im-
cas region, Greg Scheu, at ABB Customer World this plementation S-curve, Jouret believes his company can
week in Houston. They discussed how the two compa- capture 2% of that value, which translates to $20 billion
nies partnership in developing the ABB Ability platform in revenue. The only uncertainty is how quickly things
has benefited end users, as well as what the digital future will happen.
has in store. Adoption of new technology tends to be on the slow
When we look at the Industrial Internet of Things, side, but the IIoT could be an exception, explained Sinha.
it ties back to the mission of our company, which is to In substance, we view the speed as being different, he
empower every person, said Sinha. We strive toward said. Theres an appetite for risk, but, in the Industrial
a higher cause. We look at hard-to-do science problems, IoT, the risk of failure and error can be manifold.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

The things you protectidentity, devices, applications,
dataarent any different in the cloud. Its the scale,
speed and sophistication of the attacks that change,
that require a different set of rules. Together with
ABBs Guido Jouret, Microsofts Avijit Sinha discussed
the companys investment in its Azure platform and
how its partnership with ABB will advance the two
companies mutual customers interests.

Technologies in the consumer spacedrones, virtual

reality, augmented reality, for exampleare crossing over
into industrial applications much faster than they were
before. These technologies havent really taken off in the
consumer area, added Jouret, who cited augmented-real- At Microsoft, we have an Intelligent Security Graph in
ity glasses being applied in industrial applications. the cloud that constantly monitors 38 regions of data
One big difference between the consumer space and centers. We spend about a billion dollars a year keeping
industrial, however, is security. Consumers see security that up to date.
as black and white, all or nothing. But industry takes a Microsoft takes data security and privacy very seri-
more nuanced view, according to Jouret. On the indus- ously. We always believe the customer owns the data
trial side, well see more cloud-connectivity, but not ev- and decides who they share it with, said Sinha. We
erything will go to the cloud, he explained. And there will secure the data for them. We will always be in com-
wont be a single worldwide system or standard. Custom- pliance in terms of our capabilities. Our cloud has the
ers will have local systems that connect to the cloud, and highest number of certifications in the world. We are
theyll leverage connections between clouds, too. very transparent about what we do with data.

Intelligent thinking New frontiers

While artificial intelligence (AI) and its related body of In response to a texted question from the audience,
knowledge has been around for decades, the confluence Sinha and Jouret also touched on what it takes to get an
of three factors is allowing for AI to be applied in an eco- established company to new markets. When he worked
nomical manner to real-world problems, including cy- at Nokia, Jouret was part of a group that consisted of
bersecurity. You see the number of devices taking off both company veterans and new recruits. We took half
billions and billions of devices, Sinha said. You need from outside and half from inside the company, he ex-
a system thats capable of ingesting all of these signals. plained. Thats how you get to new markets.
Security has been based on signatures and on protect- Starting something is easy, Jouret added. The prob-
ing against viruses. Looking forward, you need a more lem is the medium term, three to four years out: thats
dynamic systemone that looks at the threat landscape when the doubt sets in. If youre an established company
and uses AI capabilities. and you disappoint established customers, thats a deli-
As we embark on our journey to get software to the cate balance. Azure is a great example of something very
cloud, the security principles of protecting, detecting new that came from an established company.
and reacting dont change, said Sinha. The things you Culture eats strategy, Sinha reminded. Without cul-
protectidentity, devices, applications, dataarent any ture, a transformation wont happen, he said. At Micro-
different. Its the scale, speed and sophistication of the soft, weve changed the sizes of teams and gutted entire
attacks that change, that require a different set of rules. buildings. Once you get that going, the strategy kicks

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

in because of the cultural movement. The core identity soft are coming with tools, not just the cloud as a re-
that weve never lost sight of is empowering people and pository. Were leveraging the platform as a service.
organizations to achieve more. Weve embraced diver- For an increasing number of systems, theyll be avail-
sity. We dont just get rid of the old. We maintain both able on premise and with a cloud connection, built
and let people decide. on Azure.
Azure has become a huge part of Microsoft, which ex- Piloting new applications based on Azure is an essen-
pects to generate $20 billion in cloud revenue by 2018. tial part of ABBs growth. But piloting requires customer
Were transforming as a company and intend to be the participation. It does us no good to sit in a lab and think
best cloud company, assured Sinha. Azure is powering deep thoughts, admitted Jouret. The customer thats
all of it, as Microsoft continues to invest in manpower willing to pilot something is a gift. Its the chance to
and data centers. shape the future and be at the leading edge. Plus, youll
We want to leverage all of the Microsoft innova- be able to take advantage of those capabilities before
tions that we can, said Jouret. Providers like Micro- your competitors.


It may look like welding, but additive manufacturing
reduces manufacturing sequence steps and compresses
manufacturing lead times
Mike Bacidore

dditive manufacturing is a relatively new way ufacturing processes. 3D printinga synonym for all
to make components lighter, stronger and additive manufacturing processescan be broken down
sometimes less expensively. It also provides the into seven categories, which include material extrusion,
capability to reduce component stock holdings and over- powder bed fusion, material jetting, binder jetting, vat
heads, as well as the ability to produce unfinished com- photopolymerisation, sheet lamination and direct en-
ponents that are closer to their desired shape (near net ergy deposition. The processes vary in their methods of
shape), thus reducing subsequent machining using tra- layer manufacturing, and individual processes differ de-
ditional methods. And with ABBs simulation and off- pending on the material and machine technology used.
line programming software, RobotStudio, the number While similar in appearance to welding, one of the
of manufacturing sequence steps can be reduced, com- processesdirect energy deposition (DED)is actually
pressing manufacturing lead times. additive manufacturing. The word welding as defined
The American Society for Testing and Materials by the American Welding Society conveys the joining
(ASTM) F42 group formulated a set of standards (Stan- of two or more pieces of metal, explained Mark Ox-
dard Terminology for Additive Manufacturing Tech- lade, ABBs market development managerjoining &
nologies, 2012) that classify the range of additive-man- cutting, who presented the latest information on DED

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

With plasma, you can do 12 wires at the same
time, which isnt typical. ABBs Mark Oxlade on the
advantages of additive manufacturing using direct
energy deposition with arc plasma.

and similar additive processes at ABB Customer World

this week in Houston. Welding is joining two parts to-
gether through fusion. DED is an additive-manufactur-
ing process in which focused thermal energy is used to
fuse materials by melting as they are being deposited.
Energy sources for DED machines include lasers, elec-
tron beams and arc plasma.
Direct energy deposition also differs from cladding,
which is applying a uniform buildup of material on a
surface. Although DED systems can be used to apply a theres 3D printing of metal car cylinder heads.
surface cladding, such use does not fit the current defi- Project completion can be turbocharged with ABBs
nition of additive manufacturing, explained Oxlade. RobotStudio, Oxlade continued. Machining PowerPac
Additive manufacturing is when a computer-aided de- is an add-on that makes it possible to create complex
sign (CAD) file of the build features is converted into paths in just seconds. You start with a CAD file, then
section cuts, representing each layer of material to be slice the 3D model and export G-code, which is im-
deposited. The DED machine then builds up material, ported into a CAM converter to create RAPID language.
layer by layer, so material is only applied where required Then you can start printing with the robot. RobotStu-
to produce a part, add a feature or make a repair. Addi- dio is the real controller, not a simulation, said Oxlade.
tive manufacturing is a new way of making things, so we For good CAD, we have path-following characteris-
have to design in a new way. tics, explained Oxlade. It looks at things like friction
and gravity. Our standard robots can be made 10 times
It all adds up more accurate by tuning. We know how to make a robot
The reasons for choosing an additive-manufacturing so- motion very accurate.
lution are many, but reducing the numbers of steps to
near net shape is among the most important, Oxlade Make mine plasma
said. If you can reduce the number of steps, then ad- Arc plasma is Oxlades preferred energy source for
ditive manufacturing is a good way to go. said Oxlade, DED. Plasma is a little more stable process, said Ox-
who shared some examples from maritime, airline, med- lade, which means higher quality assurance for additive
ical and automotive industries. manufacturing with robotic motion control.
Everyone has spare parts, explained Oxlade. They While ABB focuses on the software side, with Robot-
cost money. Every time an aircraft carrier goes to sea, it icStudio, its partners are making the welding heads. In
carries 7,000 tons of consumables and spares. But what if a traditional electron-beam process, up to two wires can
you can print your own replacement parts while at sea? be in use simultaneously. With plasma, you can do 12
A 1% reduction in spares is the equivalent of two fully wires at the same time, which isnt typical, explained
loaded planes. Meanwhile, the FDA has approved 3D Oxlade. Plasma gives you a very clean weld. Spatter
printing of metal implants such as a custom chest plate goes away. Also, most welding processes hate oil. With
for a cancer patient. And in automotive components, plasma, it burns off the oil before you get to it.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

A lump-sum, turnkey partnering approach for an aluminum
smelter power expansion project saved an estimated 6%
Paul Studebaker

aced with high project costs, some end user compa- Phase by phase
nies are taking the engineering/procurement con- Like most projects, this one proceeded in three stages.
tractor (EPC) out of the equation and engaging di- Phase 1 was the definition stage, before funding or ap-
rectly with their software, equipment and service suppliers. proval, where ABB and Alcoa openly discussed needs
When the Alcoa plant in Baie-Comeau, Quebec, and what Alcoa was trying to achieve. The big change
needed to add a rectifier system to increase potline cur- here was that there was no EPC between Alcoa and
rent and provide additional redundancy, it asked ABB ABB, said Gilles Schami, Eng., operations manager,
to take full lump-sum, turnkey (LSTK) system respon- aluminum electrification, ABB.
sibility for conceptual design, scope definition, costing, ABB was part of the very first stage, said Pa-
detailed system design, equipment engineering, proj- trice Dub, Eng., project director, Alcoa Canada Co.
ect management, procurement, civil works, installation Theres a risk in not getting competitive bids, but we
and commissioning. Alcoa provided project monitoring, knew we would be getting the right technical package.
technical review, subcontractor approval and compli- We have plants around the world and we know the price
ance with internal processes. of a transformer. Instead of competitive bids, we used
The project was presented in the session, Lump-sum, our experience to evaluate costs.
turnkey project partnering approach to reduce over-
all project cost at ABB Customer World this week in
Alcoa Baie-Comeaus TR49 project to add a 50 kA,
1120 VDC transformer began in April 2015 and was
completed in August 2016. Equipment and ABB services
were part of a LSTK project, with installation and civil
work on a cost plus basis. Alcoa and ABB worked di-
rectly together, with ABB assuming most of the respon-
sibilities traditionally expected of the EPC.
Along with saving money, eliminating the EPC en-
sured that resources stayed focused on project deliver-
ables, not on preparing RFQs, evaluating bids or sitting
in meetings.
But it was not all wine and roses.

Project delivery was not perfect, but we delivered because

we worked jointly as a team. We estimate we saved $1-2
million. Alcoas Patrice Dub on the companys recent
lump-sum, turnkey (LSTK) project with ABB.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

In phase 1, All the different experts pulled together, get certain information from them to know we were on
and all the different aspects were considered, said track, said Dub. At first, this led to some culture clash
Schami. At this point, we were not selecting a trans- and friction. We had to align and develop that, he said.
former, just defining the needs. They looked at the Alcoas involvement during execution was mainly su-
engineering to tie into the existing plant, the civil en- pervisory. It kept full control of the process, schedule
gineering, mechanical engineering and electrical engi- and budget, with weekly progress reports from ABB.
neering. They evaluated the harmonics and the impact We had access to all the field acceptance tests (FAT) as
on power quality. they were done, wherever they took place, said Dub.
Phase 2 covered negotiations between Alcoa and ABB, We had one site manager because the work was being
adjustments to the solution, and final approval. Here we done on our site, and one EHS manager to satisfy regu-
saw discussion within Alcoa, and iterative processes to latory requirements.
get agreement, Schami said. Discussions defined the At the end, the availability of 50 kA was measured at
solution, scope, who would do what, and assumptions the bus bars, and the measured power quality met speci-
such as currency exchange rates. We hedged on cur- fications.
rencies, with most of the risk taken on by ABB, he said.
The second stage also included provision of drawings, Not for every project
schedules and other deliverables, the same as would typ- A partnering approach is not for all projects: under-
ically be done by an EPC. Alcoa paid ABB at this point stand the factors that need to be considered before
for the deliverables, but the payment was part of the pursuing such an approach, Dub recommended.
agreed-upon total cost, not a separate charge as it would There is less perceived control without the EPC. You
typically be with an EPC. have to learn about that and accept it. You have to
It was a very transparent process, said Dub, and know your partner.
Alcoa engineers were much involved. We were buy- There will be issues and when they arise, a collabor-
ing performance, but we still reviewed all the specs ative, open-minded team environment with both sides
and drawings, playing some of the role of the EPC. We sharing risk and working together is needed for success.
would have had to do this even with an EPC, but we Even though its lump-sum and turnkey, we had to be
were pretty lean, with only five people on the Alcoa able to see enough to manage it, Dub said. Some-
team, so this was a noticeable amount of work. times we were too close, with weekly schedule monitor-
Phase 3 was project execution. All aspects were the ing, but these projects had very high visibility within Al-
same as any turnkey project, all the way to final accep- coa due to the level of spending.
tance, said Schami. For civil and other contracted work, Both teams focus on project deliveryon results
ABB would recommend contractors, and Alcoa would and level of involvement is mutually higher given the ac-
make the selection, he said. Then we managed the countability of both parties. The beauty of it is, theyre
contractors. as stuck as we are for on-time delivery, said Dub.
Since the project specifications were performance- The project was delivered within schedule, within
based, Alcoa didnt have to worry as much as they oth- the cost estimate, and within the quality standard, with
erwise would have about meeting individual speci- no EHS incident. Project delivery was not perfect, but
fications. We guaranteed performance, not just the we delivered because we worked jointly as a team, said
specifications, said Schami. Dub. On a $25 million project, you could expect to
The transformer was part of a larger project that had save a minimum of $1 million. We estimate we saved
high visibility at Alcoa. ABB was responsible for the $1-2 million.
transformer, but Alcoa was responsible for the overall Were engaged with ABB now in a second project on
project. ABB covered their scope, but we needed to the site, and its smooth sailing.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Digital architecture builds on a foundation that is pillared
and secure
By Jim Montague

hats so great about transforming perfectly How the digital house is built
good, real-world, analog process values for Of course, Microsofts definition of architecture started
pressure, temperature and flow into digi- with information technology, but the digital revolution
talized ones and zeros? Much easier data accessibility, is now bringing in more demands for efficiency from
flexibility, analysis and communications for more opti- the operational technology side, said Kodeih. And, be-
mal and profitable operations, thats what. cause Microsofts mission is to help every individual do
Operational expenditures (OpEx) in the worldwide more, were developing strategies and digital architec-
chemical industries is about $1.6 trillion per year, and tures for oil and gas, chemicals and other industries.
OpEx in the oil and gas industries is about $600 billion Kodeih added that digital transformation in the pro-
per year, so making any little improvement in them is an cess industries rests on three pillars: personal comput-
opportunity worth billions of dollars, said Rami-Johan ing, handheld devices and new interfaces; intelligent
Jokela, head of digitalization, ABB. cloud platforms; and reinventing productivity and busi-
At the same time, research by McKinsey finds that ness processes to give everyone access to the data they
69% of oil, gas, chemical and other process industry need to optimize their operations.
projects have been running about 20% over budget in ABB has been driving toward digitalization for 20
recent years; 79% of these projects have been missing years in oil, gas and chemical applications, but these en-
their schedules, often by months; and 30% of their con-
trol loops are broken, added Havard Devold, group
vice president and digital lead for oil, gas and chemi-
cals, ABB.
These were some of the challenges explored by a
three-person panel of experts from Microsoft and ABB,
who also described how their partnership is benefiting
process control users in the chemical, oil and gas indus-
tries at ABB Customer World in Houston. The panel in-
cluded Jokela, Devold and Dania Kodeih, enterprise and
solutions architect for oil and gas, Microsoft.

Cybersecurity is on everyones mind because more

connections means more opening for possible threats.
Microsofts Dania Kodeih explained at ABB Customer
World in Houston how the partnership between her
company and ABB will create a stronger defense against

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

ergy industries are now being transformed and diversi- and track procedures and check off completed tasks;
fied by shale oil and gas and renewable and alternative measure vital signs and fatigue with wearable devices;
energy sources, even as they join with Industrial Inter- and help monitor, track and provide alerts about invis-
net of Things (IIoT) and Industry 4.0 technologies, said ible hazards like natural gas leaks.
ABBs Devold. These are all new opportunities, and we
need them. This is especially true because low oil and Security for digitalization
gas prices mean we have to become more efficient and Of course, whenever digitalization or cloud computing
develop smarter approaches and solutions. Even if prices is mentioned, the next question is about cybersecurity.
were high, if we can save on maintenance and increase Fortunately, ABB and Microsoft reported this base is
productivity, why shouldnt we? covered, as well.
Kodeih explained that many industrial digitalization Cybersecurity is on everyones mind because more
efforts will rely on intelligent cloud computing plat- connections means more opening for possible threats.
forms. These arent random collections of software ob- Microsoft begins by assuming that systems are compro-
jects, but are instead organized environments with dif- mised, looking for breaches and taking a holistic view of
ferent components and functions like managing data security, said Kodeih. We look at every device and pro-
and analytics, machine learning and artificial intelli- cess, and we establish security with trust, compliance,
gence (AI) that can provide answers to difficult prob- reliability and response. Were also bringing machine-
lems, said Kodeih. Were taking a lot of information learning techniques to cybersecurity because theres
that was originally from human interactions and add- more and more telemetry to gather.
ing it to intelligent systems, extracting content and then And ABB follows up with endpoint cybersecurity at
working with ABB to bring that intelligence to the edge the lower levels, added Jokela.
and the field. This has been done by technical special- Microsoft probably gets the most hacking at-
ties in many other fields, and now its coming to oil, gas tempts of anyone, and so weve learned that you have
and chemicals. to expect, prevent and address them as they happen,
added Kodeih. Systems must be layered, so if theres
Powerful partnership a breach, it can be minimized. Its said that the cloud
ABBs Jokela reported that the two companies have sev- services arent secure, but they really make cybersecu-
eral major tasks theyre carrying out to make their part- rity tasks more transparent, and so they can respond
nership useful to end users. ABB comes from the indus- more effectively.
trial systems side, and so digitalization meant we needed The panelists agreed that digitalization of process ap-
partners and platform tools, he said. ABB runs below plications and ABB and Microsofts partnership are re-
the cloud, so we partnered with Microsoft, which runs ally all about simplifying tasks that would otherwise be
above the cloud, so we wouldnt have to worry about a lot more complex. Digitalization is going to be in-
maintenance. creasingly easy despite all the different elements users
Devold said, With so many projects running over are handling, added Jokela. Platforms will give way to
budget and late, we have proof that our traditional ex- cloud computing as a service. This is all about creating
ecution model is often broken. We now have plants with value, and thats what weve been doing all along.
hundreds of thousands of data points. Digitalization For some added digitalization know-how, the panel
technology is the only way to handle this. also recommended ABBs recent whitepaper, Next
Beyond aiding process applications directly, Micro- level oil, gas and chemical: harnessing the power of
softs Kodeih reported, Digitalization can help with digitalization to thrive in the new normal of low oil
personal safety by improving training with immersive, prices, which is available on the front page at www.
in-environment simulations; help technicians follow

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Two sensors without wires keep tabs on the health
of rotating equipment
Jim Montague

large part of success in politics and other en- Sense locally, send wirelessly
deavors is simply showing up, but sensors that To make the leap to wireless condition monitoring, Pare-
could improve condition monitoring in process schi explained the initial impulse is to spread sensors
applications often cant show up because wiring is too everywhere and try to use them for predictive mainte-
costly or its physically impossible to locate them where nance. Sensors have been monitoring the big assets for
theyre needed. To solve this problem by getting sensors a long time, and many companies do it, he said. Its
where they need to go and bringing back information for trickier to monitor smaller pumps and equipment, so the
better condition monitoring, ABB has developed com- chemical industries have been looking at what condition
pact, rugged sensors that can be deployed on motors, monitoring technologies they can borrow from other in-
pumps, fans and other equipment, can measure vibra- dustries, and wireless sensors were suggested for rotating
tion and other variables and can send details back to a machine analytics and distributed sensing.
central location for analysis and improved decisions. ABBs two wireless sensing solutions include its WiMon
The oil and gas world is changing a lot due to the ex- wireless monitora bearing-mounted, screw-on, battery-
treme effects of low prices, and so its hard for many users powered vibration sensorand its upcoming Smart Sen-
to stay profitable, said Diego Pareschi, global product man- sor for low-voltage electric motors on compressors, pumps
ager for rotating machines, oil, gas and chemicals, Process and fans. WiMon has been available for several years,
Automation Division, ABB, in a presentation this week to
attendees of ABB Customer World in Houston. So, weve
been talking about using wireless sensors for condition mon-
itoring and gaining more visibility into oil, gas and chemical
(OGC) processes, especially rotating equipment, as theyre
the most common cause of downtime in OGC plants.
Pareschi reported that the most important assets in
OGC plants are pumps, compressors and other equip-
ment. These devices are their heartbeat, he added.
So, we looked at present maintenance practices and
found they mostly use break-and-fix processes. But then
we look at our smart phones and smart wristwatches and
look at our rusty plants and processes and ask, Why
cant they use these consumer technologies, too?

We look at our smart phones and smart wristwatches

and look at our rusty plants and processes and ask,
Why cant they use these consumer technologies, too?
Diego Pareschi, global product manager at ABB, shared
advancements in wireless sensors at ABB Customer
World this week in Houston.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

uses WirelessHART protocol for communications and or- DCS; from wireless sources through Ethernet; or from
ganizes its network as a mesh grid. It performs 1-second sensors through OPC and Modbus networking.
measurements and can take measurements continuously ServicePort can connect multiple sites, aggregate in-
or at up to 8-hour intervals. WiMons range is 40-50 me- put from many machines and then divide that data by
ters, unless its elevated, in which case its range can be up function, such as process application, mechanical, elec-
to several hundred meters. trical or control, said Pareschi. The data can then be
Rotating equipment typically fails every three years, analyzed and turned into reports with details on bearing
but these failures are at random, and so monitoring bear- wear occurring at the bottom. This can really make for-
ings for vibrations can be very helpful, said Pareschi. merly dumb sensors smart. No raw data is transferred,
just key performance indicators (KPIs).
Moving data on up ABB also offers a remote cloud service, in which data
Pareschi explained that once WiMon and other ABB from different sites is also aggregated in remote service
sensors gather values and signals from rotating equip- centers and used by subject-matter experts to provide
ment and field processesand assess equipment status other advanced services, consultancy and collaboration
with ABB Fingerprint auditsthey relay it to a locally with third-party service providers such as OEMs. This
oriented cloud infrastructure. Here, its elaborated on enables us to benchmark, compare performance at dif-
to provide more advanced services to the site, and opti- ferent sites and see which is doing better, added Pares-
mize short- and medium-term operations and field ser- chi. Also, if a customer has a problem with a pump in
vices. Much of this information also can be delivered to the fleet, it can also get help from an ABB service en-
intranets and the Internet via ABBs ServicePort fleet- gineer more easily. Were also proposing a subscription
monitoring dashboard, which can take in data from the service that we periodically review.


The future of electrical power lies in the hands
and demands of its consumers
Mike Bacidore

he public gets what the public wants. Consumer from the administration has been about EPA overreach.
demand is a consistent driver of production and Its my belief that with or without a clean power plan,
supply, and that is a powerful incentive in the youre still going to see cleaner energy portfolios because
energy industry. its what our customers want. Youll see more coal-plant
Under the Trump administration, theres a stated de- retirements and more renewable energy. The trend is go-
sire for more infrastructure investment. Were support- ing to continue because customers want it and investors
ive of that, said Maureen Borkowski, chairman and are interested in that. That impetus is going to continue
president of Ameren Transmission, an energy carrier with or without changes by the Trump administration.
in the midwestern United States. One of the concerns Borkowski and Claudio Facchin, president, power

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

We focus on safety, reliability, environmental impact
and sustainability of the energy we provide. Amerens
Maureen Borkowski traded thoughts on the future of
energy with ABBs Claudio Facchin at ABB Customer
World this week in Houston.

grids division, ABB, shared their thoughts on the fu-

ture of energy during a keynote panel discussion at this
weeks ABB Customer World in Houston.
Everyone wants a balance, said Borkowski. None
of us wants everything to be profit-driven. We focus on
safety, reliability, environmental impact and sustainabil-
ity of the energy we provide. How do you deliver a clean
portfolio at a price customers can afford?
The whole renewables aspectthe impact, the trends
and the speed with which it has come inis a key el-
ement, explained Facchin. Renewables add volatility
and complexity to managing the grid, he said. It goes
all the way up to the backbone of the transmission sys- tion links between Norway and Germany.
tem. Electricity is an increasingly key form of energy, In the United States, theres an opportunity to lever-
and estimates predict a 70% increase in usage between age the HVDC link to share electricity, but U.S. reg-
now and 2040. ulatory bodies work differently than they do on other
continents. In the United States, most policy is done at
Continental grid theory the state level, explained Borkowski. To have all of the
The transmission grid is one of the key enablers of mak- states benefit from an HVDC link is a challenge. All of
ing this transformation happen. Whether it will be one the siting and routing is done at the state level. Thats an
global connected grid or separate continental grids, we interesting difference. You have policy impediments in
have the technology to transport energy long distances, the United States.
said Facchin. A lot of things are driven by innovation. About five years ago, Ameren developed a strategic
Utilities are still seen as a very conservative industry. But initiative to make an investment in its transmission sys-
I see a lot of utilities pushing technology through to take tem. Weve invested about $3 billion$800 million last
the grid to the next level. Many utilities adopted digi- year aloneto enhance the reliability of the system and
tal technology 10-15 years ago. And when you look at the ability to bring on renewable energy sources, said
high-voltage, direct-current (HVDC) technology, the Borkowski. Technology, along with changes in policy,
challenge is how to manage, control and monitor power makes an impact on the marketplace. Customer expec-
flow. Weve been a leader in implementing HDVC tech- tations have an even bigger impact. We at Ameren are
nology, and were taking it to the next level. putting information at our customers fingertips.
ABB is building a 12-gigawatt HVDC link in China,
which wants to bring solar and wind energy from the ru- Data, anyone?
ral northwest to the urban centers in the east, said Fac- Ameren also sees growing teams of data scientists cre-
chin. Now, theyre looking at linking Russia, China, Ja- ating applications that deliver value from all the data
pan and Korea to share power. In Europe, there are a lot thats being collected. As we collect more information,
of projects going on to link the countries, such as substa- we can slice and dice that and discover what kinds of

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

data platforms and mobile communications we need to STEM programs get kids excited, but we need to focus
create, Borkowski said. on having them view themselves as STEM-capable. We
Theres no point in collecting that data and not us- have to inspire these kids. Millennials and the gener-
ing it properly, added Facchin. For example, the grid ation behind them want to transform the world. What
needs to be adjusted and optimized to accommodate re- better way to do that than by being an engineer?
newables in a safe and reliable manner. Its more about Facchin sees different futures emerging on different
demand response and power qualitymanaging volt- continents, especially when it comes to engineering skill
age, frequency and power factor. Energy storage is a key sets of younger generations. In Asia, there has been a fo-
consideration for the grid of the future, and its relevance cus in the electrical engineering space, he said. China
will continue to increase. The growth curve on energy and India have a huge number of electrical engineers
storage will be very similar to what we have seen recently coming out of those universities at a very high level. In
with photovoltaic solar. the United States, we see more of a gap.
Borkowski sees the technology transformation as evo- Part of the solution to making STEM careersand
lutionary, but with some disruptive aspects. Were get- the power industrymore appealing to millennials is a
ting smarter in an incremental sense, she explained. more explicit linkage between engineering and renew-
Theres this huge group of folks who will be retiring. able energy, Facchin believes. Because millennials tend
Weve been bringing in young talent. We need to build to identify with environmental responsibility, it provides
the talent pipeline in elementary and middle school. an avenue that might attract them to STEM pursuits.

To discover opportunities for improvement, be dissatisfied
with the status quo
Paul Studebaker

rom equipment productivity, reliability and energy Singh, vice president of engineering at OLAM Inter-
efficiency to project engineering, sourcing and dis- national, a seed-to-shell agribusiness operating 200 fa-
tribution, operational excellence offers myriad op- cilities in more than 70 countries with 16,000 employ-
portunities for improvements. Attendees of the panel dis- ees. Digital has a role to play from farming through
cussion, Next level operational excellence: Benefits of processing and distribution, through the entire chain.
digitalization at ABB Customer World this week in Hous- With every click we are generating data and the poten-
ton learned that these opportunities come in many forms, tial for bottom-line improvements.
but only by opening your mind to the possibilities. We can improve our machine efficiency (OEE), ma-
For us, digital is leveraging data and technology terial efficiency (less waste), manpower efficiency (re-
to develop new business models, said Narinder Pal duce labor and do more with the people we have), and

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

How to use digitalization to improve operations was
the topic of a panel discussion by (left to right) Greg
Scheu, Americas region president, ABB; Sandy Vasser,
leader (retired), ExxonMobil; Narinder Pal Singh, vice
president, engineering, OLAM International; and Sami
Atiya, president, Robotics and Motion, ABB.

energy efficiency (when and where we do what) by col-

lecting data and pulling it together.

Do things differently we needed to doto shorten schedules, lower costs. We

Doing things differently is essential for us, said found the core issue was that we were doing things the
Sandy Vasser, leader (retired), ExxonMobil. Our proj- same way we always had, even though todays problems
ects became extremely costly do deliver. We already and technologies are different. People realized this and
needed to lower the costs and shorten schedules, then saw the need to change.
the price of oil dropped. At OLAM International, the emerging availability of
After the project is completed, We have to maintain new devices signals possible opportunities. We have
them for 30 to 40 years, Vasser said. We need to operate shortlisted the areas of digital inventory management,
at minimum cost, and maximize uptime and throughput. smart plants and energy efficiency, and we are trying a lot
People and facilities are at different points on the digi- of pilots, said Singh. One example is remote monitoring.
talization adoption curve. Some customers are at about Tomato processing plants run 80 days a year. During that
2.2how can we get them to Industrie 4.0? said Sami time, they will process 500 semi truckloads a day of toma-
Atiya, president, Robotics and Motion, ABB. Others are toes. By using sensors and remote monitoring 24/7, weve
pushing the envelope on digital, with advanced robot- reduced downtime by 30%, he said. Thats something
ics, but when youre making a car a minute, you cant we cant do ourselveswere partnering with ABB.
let the plant shut down. At night, when the workers are
gone, you can shut it down. So we monitor through the Take people with you
day, anticipate maintenance requirements, and perform In 2030, 70% of the workforce will be millennials.
them when the plant is off. How do you work with themhow do you collabo-
rate? asked Scheu.
Get up the curve Digitalization has led to a generational challenge, where
Manufacturing executives see digital as critical, but one generation is distinctly different from the next in its
only 10% rate themselves highly on their capability, abilities and inclinations, but applications bridge the gap.
said Greg Scheu, Americas Region president, ABB, and There are multiple ways to enter the digital worldit de-
panel moderator. How can we improve this? pends on where you are, said Atiya. In production plan-
At ExxonMobil, We had to overcome the burden, ning, we see virtualization bringing tools that help experi-
bias and baggage of doing things the same way theyve enced engineers design more efficient cells and facilities.
always been done, said Vasser. They tried incremental In operations, sensors can be used to monitor machines for
improvements, but still had the same problems. No mat- improved reliability. We give a customer three wireless mo-
ter which contractors or what project, the result was the tor sensors to try out, and they ask for more.
same, he said. The common denominator was us. OLAM includes people in its adoption process. We
So we had to almost forget how weve been doing bring digitalization on in three steps, said Singh. First,
things for decades. Instead, we identified all the things we are always asking what digital information can do for

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

us, how it can affect our business, and what its disrup- For example, ordering based on internal standards
tions could do to affect our business. and specifications results in massive inquiry packages
Second, when we have something, we bring our with inconsistencies and errors that vendors must work
managers in and bring them up to speed. Third, we part- to understand, Vasser said. Then there are debates
ner to implement. about specification deviations, custom designs, approv-
als and manufacturing. Then a factory acceptance test
Be wary of disruption [FAT] before we arrive, then its done all over again. The
Uber and Airbnb didnt check in with the taxi and hotel cycle takes six to 18 months.
businesses before they disrupted them, said Scheu. What Most of that could be eliminated if we would just buy
do you do to deal with similar potentials in your industry? a standard product. If we dont customize it, we dont
Singh sees similarities in food and beverage. Where have to FAT it. Instead, key suppliers make standard so-
food safety and sustainability used to be competitive ad- lutions and maintain the specifications. We order it, we
vantages, they are now base requirements, he said. The buy it, we use it.
supply chain is flattening, with more companies sourcing (Round of applause)
directly from the farm and shipping direct to consumers. If True transformational change will only come
you want to stay in the game, you need technology. through partnerships with different perspectives and ar-
At ExxonMobil, its about the supply of technology. eas of expertise, Vasser said. We need to work with sup-
There are many opportunities in the supply chain. Every pliers to come up with the best solutions.
participant needs to work to make transformational change, Its been a journey, one step at a time. Instead of how
as success depends on the weakest link, said Vasser. you do it, examine what you are trying to do.


Panel of CTOs discusses how they steer automation
and innovation initiatives, and keep from driving their
organizations right off the road
Mike Bacidore

echnology is an instrument of change. It can be with how were producing and using energy as a so-
disruptive, enabling, subtle or timely, but recent ciety, said Terry Oliver, chief technology innova-
technological leaps have affected not just re- tion officer at Bonneville Power Administation (BPA).
search and development (R&D), but the way companies Electricity used to flow one way in the system. Now
think about R&D in industries as diverse as power, min- customers have photovoltaic systems, and were seeing
ing, automation and oil & gas. two-way flows on systems that were designed for one-
In a roundtable discussion at ABB Customer World way flows. To monitor the quality of these new power
in Houston this week, several technology officers shared flows, BPA is using a technology developed in the 19th
their fears and their triumphs in the face of the continu- century to look at the grid 60 times a seconda signifi-
ing waves of technology advances. cant adjustment to a technology that was used once ev-
In the utility sector, were facing some huge changes ery two seconds when first introduced.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

When we develop something today, it comes out of
the factory with a digital twin. BPs Ahmed Hashmi
explained how technology has changed the oil and gas
business at ABB Customer World this week in Houston.

Luiz Mello is technology innovation director at Vale,

a $26 billion global mining company. Vale is a large pro-
ducer in iron ore and nickel, with the bulk of its mining
operations in South America and the largest segment
of its product destination being Southeast Asia. I was
brought to Vale to bring a new perspective to structure
its corporate R&D function, explained Mello. De-
spite being a global company in more than 30 countries,
theres a lot of focus on Brazil, where the educational
level is similar to the United States in 1910. We try to
foster connections with academia. We created ambitious
programs in Brazil and Mozambique, as we need to hire
people in these areas. be up and running. It used to take seven to 10 years
Vales primary investment focus has been on creating for that, said Hashmi.
an autonomous mine. Mining has a geographical con- The time from concept to introducing a product is
straint, by nature of where the ore body sits, which is getting shorter: fail fast and fail cheap, agreed Bazmi
usually in remote countries where the education level Husain, CTO, ABB. In the 36 years Ive had with the
is not very high. Getting a job at the mine requires a company, I cant recall another time when business im-
skillset that the people there do not have, so they must pact, energy efficiency and technology have changed
be trained. more quickly than today. Last year, there was more re-
Although Ahmed Hashmis job title at BP is head of newable energy coming on line than there was conven-
upstream technology, he thinks of himself as a busi- tional energy coming on line. The ecosystem of how we
ness leader responsible for driving change. Ive been do things is changing.
with BP 30 years on, he said. Oil prices dropped in
half in 2014, and we are still not making money at to- All that stays the same
days prices, but things have improved a lot. Theres In the electric power industry, the change in consumer
a desire within the industry to reset itself, whether behavior is causing utility executives to shake with fear,
youre talking about extraction, refining, logistics or said BPAs Oliver. If you dont need capital infrastruc-
labor costs. Everything in oil & gas is being reset, he ture and your loads are changing, you have to change
emphasized. your business model, he explained. Our tradition has
People talk a lot about change through digitali- been to think of least cost as the way of keeping things
zation, added Hashmi. Digitalization is not some- going. But now we need to look at what were doing in
thing new. But software development is still too slow. terms of a value proposition.
If we can automate software development, then wed A lot of improvements in products used to be in hard-
have something. Still, digitalization has compressed ware, explained ABBs Husain. Going forward the dif-
development time. When gas was recently discovered ferentiator is going to be more in the software aspects,
in Egypts Nile Delta, it took only two years for BP to he said. Your motor will be more reliable because youre

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

measuring its operating conditions, and youll be able to search investment on stuff that matters to BPA. You can
predict whether it can take a higher load or be able to get carried away with engineering curiosity.
predict failure before it even shows physical signs. The Theres often a disconnect between corporate and op-
connectivity and digitalization are already there, and the erations, explained Vales Mello. Diminishing that dis-
sensing will continue to advance. connect was critical for us, he said. In the first year of
The differentiation between hardware and soft- an innovation initiative, Vale employees generated 7,000
ware will become more outcome-based, predicted BPs new ideas. And some of them had patent possibilities,
Hashmi. Its not hardware versus software. Its based said Mello. A slightly overzealous management team
more on the outcome. In the past, the biggest problem was so pleased that it pressed harder the following year
with changing software was there were new forms that and received 22,000 new ideas. That was just not man-
you couldnt connect to the logic. Now you dont have ageable, explained Mello.
to program all the way down to your data structure. You More things can go wrong than can go right, BPs
have cloud platforms and new data structures. Hashmi. If I dont understand the business ahead of
technology, then Im not doing my job. There are things
What shall we build today? we think we should be doing that will change the busi-
Vales recently completed Brazilian mine was a huge ness in the future, but the business isnt asking for them
capital project, costing $14.5 billion, and digitalization now. You have to balance the times. Not everything can
played a huge role. All of the processing units were built be long-term. You have to bring results every day, and
and then brought to the site afterward, said Mello. Its then you earn the right to do the long-term stuff.
a huge LEGO project, and you need to make sure ev- For Vale, training and educating future employees is
erything will fit. Visualization was critical on that, and half of the battle, but replacing certain tasks with auto-
it brought up some faults in the design, which were fixed mation is equally effective. We do not believe people
before construction. Drones with sensors can collect in Brazil and Mozambique are getting the proper train-
data on the facades, and we combined that with geologi- ing, said Mello. But were also aiming to get a com-
cal data for a much better plan. plete fleet of autonomous trucks. Were partnering with
The oil and gas industry has seen multiple waves of nearby schools to get the people trained. While there is
technology, and the digital twin has risen to the sur- a perspective of jobs lost from a given community, start-
face. Automation isnt necessarily nirvana, warned ups may emerge and provide software solutions that live
BPs Hashmi. Insight matters more than automation, together with diminished job opportunities in the mines
and that leads to better decisions sooner. Artificial intel- themselves.
ligence and machine learning have been around for a Mechanized automation has been impacting the la-
long time. We have a lot of stuff that has been created in bor force since the first industrial revolution, added
a different era. But, when we develop something today, Hashmi. As you work on lower-level stuff that doesnt
it comes out of the factory with a digital twin. Before you require a basic understanding of the mechanism in
do anything to an asset, you do it to the digital form. place, your job will get automated out at some point, he
said. Thats true of anything in the world. If you look at
How to get it done unemployment today, its almost zero if you have a high
Digitalizations benefits are documented, but the chal- level of education. It behooves us to invest in that.
lenge often is in navigating the culture change. For BPA, Husain agreed. The jobs that robots take today are
it was all in the framework. We asked, What do we dirty, dull and dangerous, he said. The cage around
want to be when we grow up? said Oliver. We asked the robot is not to keep the robot in. Its to keep the peo-
managers and middle executives, and then we found out ple out. We might have to get used to going to school
what was in the way. That helped us to focus our re- several times in our lifetime.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Panelists from ConocoPhillips, Chevron and Rice University
chart past and present forces enabling their industrys future.
Jim Montague

bad headache with no remedy is worse than drilling with hydraulic fracturing.
a super-bad headache with medicine close at This combination lets us access oil and gas we
hand. could never reach before, added Leveille. As for data
For instance, booms and busts have buffeted the analytics, where it used to take us 20 days to drill a
North American and worldwide oil and gas indus- well, we can now do it in just 13 days. In addition,
try throughout its history. However, despite recent data analytics can be used anywhere, which makes it
price-drops and other challenges, ConocoPhilips most powerful when combined with unconventional
and Chevron reported in a panel discussion at ABB oil production. This is why we expect to achieve even
Customer World 2017 that recent technical inno- more in the future.
vations and accessible raw material resources have Leveille, Trond Unneland, senior upstream advisor,
them feeling optimistic about their industrys perfor- Chevron, and Chuck McConnell, executive direc-
mance going forward. tor, Energy Environment Initiative, Rice University,
The two big technical revolutions disrupting oil teamed up for the panel, Designing business trans-
and gas, and causing players to rethink their business formation and the future of energy production, at
strategies, are unconventional reservoir development ABB Customer World this week in Houston.
of oil and natural gas from shale, and large-scale per-
formance improvements aided by data analytics,
said Greg Leveille, CTO, ConocoPhilips. The U.S.
was the worlds largest oil producer for much of the
20th century, began a 35-year decline starting in the
mid-1970s, and regained the title due to unconven-
tional oil.
Leveille reported that the U.S. has daily production
of 25 million barrels of oil equivalents, compared to
Russias 20 million barrels and Saudi Arabias 15 mil-
lion barrels. However, the U.S. would only produce 12
million barrels of oil equivalents per day without un-
conventional production, which combines horizontal

Greg Leveille, CTO, ConocoPhilips (left) and Trond

Unneland, senior upstream advisor, Chevron (right),
discussed present trends and the innovation-aided future
of the oil and gas industry during their panel discussion
at ABB Customer World 2017 in Houston.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Innovatecautiously other functions.
Despite the positive influences of fracking and data Five or 10 years ago, our major facility and well
analytics, Unneland cautioned that a steady stream of projects were mostly custom-designed, one-offs that
innovations is no guarantee that end users will em- a team would assemble and execute, he explained.
ploy them. Now, were developing capital expenditure projects
Energy companies produce and consume lots of with similar designs that are more repetitively ex-
high-tech solutions and must constantly improve, but ecuted, including well pads, oil sands processes and
theyre also slow to test and adopt them compared other rapid, low-cost experiments. This consistency
to mainstream consumers or the companies weve gives us more leverage, and its very liberating. Were
worked with in Silicon Valley, said Unneland. Con- going to do many more wells and other projects like
sumers and IT-based firms know the early bird gets this in the next 15 years.
the worm, but oil and gas players would rather be the Unneland added, Upstream processes can now put
second mouse that gets the cheese. This is because its sensors everywhere like downstream applications al-
more costly to be the first to adopt new oil and gas in- ready do, and thats enabling a lot of improvements
novations, so they stick with whats tested and reliable. for us. However, where we used to hire data scientists
Even when innovations are adopted, theres usually a to work with our geoligists, what we need now are hy-
step back period before benefits begin to arrive. brid, petro-techs that know both earth science and
Unneland added the game-changing innovations in computers. Were doing some of this training at our
oil and gas in the past few decades include deepwater/ Center for Interactive Field Technology at the Univer-
subsea applications, real-time reservoir management, sity of Southern California.
4D seismic technology, horizontal drilling and frac- Leveille added that ConocoPhilips is also provid-
turing, and data analytics. He added that emerging ing more training in collaboration. Our applications
technologies in oil and gas include mobile comput- need to know more about how different measure-
ing, data science, cloud computing, cognitive com- ments are interacting, and so were coordinating our
puting and the Industrial Internet of Things. facilities and operations engineering people to do it,
Our multi-department energy initiative focuses on he added. This is letting us look more closely at data
three things: accessibility to secure energy sources, for individual rigs, and even take a computer game ap-
affordability of those sources, and environmental re- proach, so operators can begin to compete with each
sponsibility, added McConnell. Then we look at other on improving performance. This whole thing
what talents the industry needs, so they can develop becomes self-perpetuating, and its enabled by this at-
dynamic workforces. mosphere of innovation.
Unneland added that even little data innovations
Implementconsistently can be a big help. We recently had an issue about
Leveille added that more powerful, capable and por- how to dispose of water from unconventional oil sites,
table computing resources are greatly aiding Con- he added. So someone developed a smartphone app
ocoPhilips projects. These tools perform high-end that shows site position, amount of water to be dis-
machine learning, visualization, site simulation and posed and other details, and its been a big help.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

CPS Energy CEO advises fellow women in industry
to say yes first, and ask questions later
Jim Montague

aula Gold-Williams, CEO of CPS Energy Co. wind and solar. It serves eight counties, and its present pro-
in San Antonio, Texas, started as an accountant file includes 41% natural gas, 27% coal, 13% nuclear, 12%
when she joined the utility power industry about wind and landfill gas, and 2% solar. The utility has $2.6 bil-
30 years ago. Over the years, she served in almost every lion in revenue and $11 billion in assets.
supervisory, managing and leadership role on her way to A lot of energy companies in Texas must pick a lane
the C-suite. generation, transmission or customer-facingif theyre
Back then accounting was as fraternal as it could be, not municipally owned, explained Gold-Williams. In
said Gold-Williams, who is also African American. Ive our case, because weve been owned by the city of San
told my daughters how it was, and theyre just aghast. The Antonio since 1942, and must answer to the city council
industry has changed a lot since then, but not enough. and mayor, we have a fully integrated and diverse energy
Gold-Williams kicked off the Women in Industry: portfolio, including gas, coal, an investment in nuclear,
Empowering Women to Leadership program this week 1,000 megawatts (MW) of wind, and 500 MW of solar,
at ABB Customer World with the keynote address, Past, including a 5-MV photovoltaic facility. In the next 20
present and future. The program was sponsored by ABB years, we are expecting that mix to change.
and energy conference organizer EUCI.
Gold-Williams acknowledged that gradual evolution
has enabled more opportunities for women in energy
and other industries, but she stressed that women must
also be willing to make a habit of seizing them. Thanks
to ABB and EUCI for launching this awesome partner-
ship, which looks like it will get bigger each year, she
said. This event is a good chance to network, but we
must also know how to make changes every day, and the
way to do it is by not boxing ourselves in.

Powerful profile
CPS Energy Co. is a 157-year-old, municipally owned util-
ity in San Antonio, Tex., which started out producing nat-
ural gas, and then added electricity production originally
based on coal, nuclear, and more recently on hydropower,

The fewer answers they have for you, the more it allows
you to design your own success. Paula Gold-Williams,
president and CEO, CPS Energy, advises women in
industry to say yes to opportunity, even when the path
ahead is less than clear.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Gold-Williams added that CPS Energy is also seeing Gold-Williams added that CPS Energy recently up-
a technological shift towards everything from smarter dated its website with more customer-focused services.
components to smart phones. Utilities have been slow We know were behind on technology, and were try-
to adopt many of these more intelligent devices and soft- ing to catch up, but in many ways, were even further
ware, but I believe well speed up soon, she said. behind in the way we think, she explained. For exam-
ple, we previously supplied power just up to the meter,
Best career practices and didnt worry about what happened in the homes.
Based on her decades of experience, Gold-Williams pri- Now that meters are smarter, were beginning to gather
mary advice to younger colleagues, women and students volume data, and learning to add value both in front
is to say yes to almost every opportunity, and then to ask and behind the meter. All kinds of new technologies
more questions. You also have to expect that you may are being added in homes, and we need to be on that
not always get a lot of answers, she explained. And the solution set.
fewer answers they have for you, the more it allows you Gold-Williams added that solar is enabling customers
to design your own success. to send power back to the grid, but this is often causing
Gold-Williams has read Sheryl Sandbergs book Lean more electrical frequency and power-quality issue that
In, and knows professional women who think they must CPS Energy must address with help from newer optimi-
always know whats going on and what is the plan. But zation technologies. She reported that the utility is already
theres a limit to that, she added. You also have to allow 68% done with its present grid-modernization project that
yourself to be less than a perfect fit, and let yourself be includes smarter street lights and other components.
free to be creative. Thinking that all the details have to We want to be a partner, not just a provider, added
be perfect matters less as you move up in leadership. At Gold-Williams. But to make it happen, we must have
those levels, there are fewer details, and its more about good people who can add value. This means the lead-
using an organizations power, moving from point A to ers must know the focus and anchor of each individual.
point B, and solving problems and issues. She reported these attributes were especially helpful
After forming a womens network support group at CPS when CPS Energy helped its customers and communities
Energy, Gold-Williams added that she and her colleagues recover from storms and tornadoes in February that turned
invited their senior leaders to sit in. You have to network one of its transmission towers into a horseshoe, destroyed
because thats how you find the ways to power, she ex- 100 homes, and cut power to 85,000 residents. We coop-
plained. You can do that investigation yourself, find the erated with local government, connected with customer
right executives, attach yourself, and learn from them. on social media, stayed on the phones 24/7, and thanked
everyone when it was over, said Gold-Williams. I know
Service sparks leadership that I run an analytical engineering firm, but sometimes
To handle these technical transitions and keep providing we have to manage emergency recoveries, too.
power to San Antonios residents, Gold-Williams reported As a result, I dont really focus on the fact that Im a
that CPS Energy focuses on addressing issues and inter- woman or an African-American. All of thats true, but so
acting with the citys resident and communities more than what? Thats why I talk more about being an accountant
everand this inevitably leads to improved leadership. and solving problems. You have to be careful not to cre-
Im an accountant, but I love engineers because they ate doubt when there is none. Ive learned that I dont
solve problems. said Gold Williams. I believe the CEO have to be extra gregarious or worry that Im acting like
of an organization is on the bottom of an inverted pyra- a man. You just have to be yourself, say yes, and jump in
mid, and supports the other leaders, executives, manag- and solve problems. You also cant be afraid to fail, be-
ers, employees, customers and communities above. We cause youll learn a lot more from failures than you ever
dont want them to have to worry. will from success.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

Edge-of-grid technologies present problems, solutions
and almost certainly, surprises.
Paul Studebaker

nnovation at the edge of the grid is changing the rela- solar generators. In North Carolina, more generators want
tionship between utilities and their customers. Renew- to connect more renewables in remote locations. They
ables and electric vehicles (EV) are only the beginning. dont realize the affect on the grid. Thats a farm field,
Solar always rises faster than we anticipate. And the theres not a big wire there, Caldwell said. But our cus-
energy storage price curve is amazingsoon it will be tomers are at the edge of the grid and we have to meet
commonplace, said Rob Caldwell, president, Renew- them there. We have more clean energy, more distributed
ables and Distributed Energy Technology, Duke En- energy, and we need to give customers what they want,
ergy. More new homes will be net-zero homes because which is convenience, choice, control and cost. We need
the cost is becoming much lower, so it will be built in to manage the grid to deliver that, with power quality.
at the front end. Technology is going to do more than
we realize, and faster, but this will not happen for every- Demand forecast: Flat, with ripples
body. There will remain a mismatch of customers. Overall, we still see flat growth in demand, despite
Caldwell joined Tom Rowland-Rees, lead analyst, En- electric vehicles, said Rowland-Rees. Everywhere, we
ergy Smart Technologies, Bloomberg and Tarak Mehta, see digital infrastructure and smart grid technology go-
president, Electrification Products Division, ABB in a
panel discussion moderated by Greg Scheu, Americas
Region president, ABB, at ABB Customer World this
week in Houston.
When we first started looking at this space in 2004,
there was 20 GW of wind and solar combined in our
portfolio. That rose to 147 GW in 2015, representing an
investment of $349 billion, said Tom Rowland-Rees,
lead analyst, Energy Smart Technologies, Bloomberg.
Renewables are growing at a phenomenal rate, and
theyre moving away from utility-scale generation with
the rise of distributed solar. We expected rooftop solar
to grow depending on the region. And that growth is al-
ways exceeding our forecasts.
Duke Energys territory in the southeast U.S. now has
3,000 MW of solar power and 13,000 customers who are

Technology is going to do more than we realize, and

faster, but this will not happen for everybody. There
will remain a mismatch of customers. Rob Caldwell,
president, Renewables and Distributed Energy
Technology, Duke Energy.

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017

ing in, as well as higher efficiency and things like Nest like poor customers subsidizing wealthy customers, or
thermostats that reduce demand. Electric vehicles are electric companies going bust.
just offsetting falling demand. Standards have to work together, so components can
EV charging brings a different form of power demand plug and play on the system. Today, the grid has a myr-
in terms of when, where and how much. Its a big load for iad of different technologies by different vendors. It all
a short time, said Mehta. ABB has quite a few solutions has to work, and plug and play nice together, to keep
for those problems, but the issue is the speed of change. power quality where it needs to be, said Caldwell. Its
For example, this month were see three times as many bus going to take investment, and time.
charger orders as we did three months ago in December.
Rowland-Rees predicts that EV costs will be competitive Disruptions ahead?
by 2025, and customer uptake is going to happen fast. Five years ago, we didnt foresee oil prices falling, or the dis-
In San Diego, EV density is already affecting power covery of enough U.S. shale gas reserves to last 300 years,
delivery and reliability at the edge. Those kinds of prob- said Scheu. Whats the next five years going to bring?
lems will spread across the country. We cant tell cus- At Bloomberg, We always get carried away by new
tomers they cant have what they want, Caldwell said. technology, then we look at what could disrupt it, said
We have to take them with us, to explain the cost and Rowland-Rees. For example, Lithium-ion batteries can
how to share and recover it. explode, and it only takes one. How might safety con-
Customers take power reliability for granted, but main- cerns shake that market?
taining it with a stressed grid is a challenge. We have to For as long as I remember, building energy manage-
figure out how to do it, said Caldwell. The engineering ment has always been the next big thing. Now were start-
solutions are there, but we have to focus on bringing our ing to see some movement. In Austin, all new homes
customers needs to the attention of the regulators. We must have energy-saving thermostats, and 25% of homes
have to go and educate policy-makers and regulators. have signed up for demand response.
At ABB, We look for disruptive change at tipping
Technology calls for new regulations points, said Mehta. For example, when capital and op-
Technology just keeps getting cheaper and cheaper, erating expenses converge, facilities are idled. Are there
presenting new opportunities, said Rowland-Rees. a lot of assets not generating value? Bringing them on
While technology is enabling an ever-increasing variety can change the world.
of grid situations, its also ready to provide solutions, if we Caldwell said, at Duke Energy, To avoid disruption,
let it. Hybrid farms with wind and solar, battery storage we need to be data-driven, but we also need to share in-
how will these work together? asked Mehta. A house may formation with strategic partners to get away from not-
have rooftop solar, a home automation system controlling invented-here syndrome. Utilities are geographically
consumption, and a battery in the basement. Who controls different, but we have a lot in common with other indus-
it, the owner or the grid? How will they communicate? It tries. It takes a village.
must be done in a way that makes sense. Especially in Europe, utilities often invest in down-
Storage promises to be part of the solution. That will stream energy companies with interesting capabilities,
change the balance, Mehta said. Without it, renew- a sort of venture capitalism, said Mehta. They get to
ables can become a big problem. learn about the technologies, the companies and their
The panel agreed that regulations are key. Our grid business model. When the future is not clear, you want
is optimized for the needs of the past 50 years, and our to learn as much as possible.
regulators think that way, said Rowland-Rees. Custom- The picture at the edge of the grid is fuzzy. Its going
ers see something new and shiny, and they want it. The to be an interesting year in this spacewe see the tech-
regulators have to keep up, or well have consequences nology need, what will be the business results?

Connect. Collaborate. Outperform. Highlights from ABB Customer World 2017