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A few month ago, Felix Hanisch, Head of Global Process Control at Covestro, spoke about the meaning of Industrie 4.0 for the chemicals industry from Covestro’s perspective. Covestro, a specialty polymers company, was carved out from Bayer in 2015 and aims to make the world “a brighter place."
The goal of Industrie 4.0 is to produce intelligent products using intelligent methods and processes using more near-real-time data in the digital integration of value chains, seamless asset lifecycle information from plant concept to decommissioning, and business-to-plant production control.
The chemicals industry is torn between acting quickly to reap the benefits of Industrie 4.0 on the one hand, and remaining prudent by making small moves, and thus risk missing opportunities on the other.
A closer look reveals that the industry already has many Industrie 4.0 technologies in place. For example chemical companies already employ vendor managed inventory, analytics based on first principles, empirical, and hybrid models. However, new data-driven analytics are emerging.
Data generated by chemical plants have all characteristics of Big Data.. Some cloud applications are therefore mainstream, but most operations management applications and process control are on-premise. And the industry wants to keep it that way.
A key for the industry is to know where to focus and to recognize if expectations for these technologies are "a pie in the sky" or realistic, according to Dr. Hanisch. To decide where to focus Covestro believes their digital strategy must be organized along the company’s vertical and horizontal integration axes. Significant opportunities arise when scrutinizing the processes and applications along these axes. including reduced downtime and improved reliability.
Chemical manufacturing differs in many aspects from discrete manufacturing, Chemical processes are highly complex and intermingled. Also the toxicity of intermediates and end products adds a multitude of constraints. The industry is also very asset intensive. Clients are more demanding in terms of traceability, ecological footprint or the added value of the end product. This last aspect also represents an opportunity.
The strategic answer to these challenges is that “Chemicals 4.0” players can thrive when they simultaneously master the supply chain of feedstock and resources, manufacturing efficiency (including intensification and digitalization), as well as customer-specific application value. Covestro has three approaches to digitalization, with different time horizons. In the shorter term, the company aims to “optimize supply,” innovating its day-to-day business by improving reliability and supply chain performance. In the midterm, Covestro wishes to leverage growth and innovate how customers do business with the company. This would involve using information and channels to improve customer experience. Longer term, Covestro considers completely new, digitally enabled business models.
At the OSIsoft EMEA Users Conference held last October in Berlin, Germany, Felix Hanisch of Covestro, gave a keynote on the meaning of Industrie 4.0 for the chemicals industry from Covestro’s perspective. A follow up blog will explain how Covestro goes about improving operations and optimize supply. ARC Clients have access to the full story.
The goal of Industrie 4.0 is to produce intelligent products using intelligent methods and processes using more near-real-time data in the digital integration of value chains, seamless asset lifecycle information from plant concept to decommissioning, and business-to-plant production control.
The chemicals industry is torn between acting quickly to reap the benefits of Industrie 4.0 on the one hand, and remaining prudent by making small moves, and thus risk missing opportunities on the other.
A closer look reveals that the industry already has many Industrie 4.0 technologies in place. For example chemical companies already employ vendor managed inventory, analytics based on first principles, empirical, and hybrid models. However, new data-driven analytics are emerging.
Data generated by chemical plants have all characteristics of Big Data.. Some cloud applications are therefore mainstream, but most operations management applications and process control are on-premise. And the industry wants to keep it that way.
A key for the industry is to know where to focus and to recognize if expectations for these technologies are "a pie in the sky" or realistic, according to Dr. Hanisch. To decide where to focus Covestro believes their digital strategy must be organized along the company’s vertical and horizontal integration axes. Significant opportunities arise when scrutinizing the processes and applications along these axes. including reduced downtime and improved reliability.
Chemical manufacturing differs in many aspects from discrete manufacturing, Chemical processes are highly complex and intermingled. Also the toxicity of intermediates and end products adds a multitude of constraints. The industry is also very asset intensive. Clients are more demanding in terms of traceability, ecological footprint or the added value of the end product. This last aspect also represents an opportunity.
The strategic answer to these challenges is that “Chemicals 4.0” players can thrive when they simultaneously master the supply chain of feedstock and resources, manufacturing efficiency (including intensification and digitalization), as well as customer-specific application value. Covestro has three approaches to digitalization, with different time horizons. In the shorter term, the company aims to “optimize supply,” innovating its day-to-day business by improving reliability and supply chain performance. In the midterm, Covestro wishes to leverage growth and innovate how customers do business with the company. This would involve using information and channels to improve customer experience. Longer term, Covestro considers completely new, digitally enabled business models.
At the OSIsoft EMEA Users Conference held last October in Berlin, Germany, Felix Hanisch of Covestro, gave a keynote on the meaning of Industrie 4.0 for the chemicals industry from Covestro’s perspective. A follow up blog will explain how Covestro goes about improving operations and optimize supply. ARC Clients have access to the full story.