Enterprise digital transformations, Data management and platforms, Analytics with artificial intelligence, Change management, Digital strategies, People management and human factor

1. —
A DATA-DRIVEN REVOLUTION - HOW THE 4TH INDUSTRIAL REVOLUTION CAN HELP THE
CEMENT INDUSTRY TO INCREASE PROFITABILITY
Mikko Marsio, Global Digital, Process Industries, ABB

2. Digital @Cement Industry
Advanced Process Control (APC) - ABB Ability™ Expert Optimizer
Digital data architecture
Enterprise digital transformation
Summary
November 20, 2019 Slide 2
Agenda
ABB Digital @Cement

3. Digital @Cement Industry

4. Robotics,PLC1,processcontrol Software, digital solutions Cyber-physicalsystemsMotors Drives
ABB Ability™
Digital operations
Autonomous operations
Automated operations
Electronics
Copper & iron
Artificial Intelligence
Expertise
Nerves, Senses
Muscles
Brain, Logic
ABB vision for digital – Towards autonomous operations
November 20, 2019 ABB Digital @CementSlide 4
We need our good customers to co-create this vision into reality

5. Digitalized plant
At your fingertips
Transparent
Data transparency
Connectivity
Collaboration
Profitable
Predictable operations
Improved quality
Optimized
Cost
Performance
Reliability
Digitalization for Cement
Main drivers
Industry 4.0 Digital Enterprise
ABB Digital @Cementv

6. The Digitalized cement plant
Whatever you can imagine. And more
Where every component is intelligent
Smart factories & proactive assets
Where asset mgmt. and related processes provide
effective planning and precision
Higher operational efficiency | minimal production loss
Where every single piece of data across the value chain is
visualized and visible
Unparalleled control through visibility
Artificial Intelligence & analytics driven system self-
diagnoses to inform you of its optimization needs
Real-time insights for quick response
Future plant
Visualize a plant…
ABB Digital @Cement

7. ABB’s holistic approach addressing industry value chain through value map
November 20, 2019 ABB Digital @CementSlide 7
Process – Asset – Plant – Enterprise Ecosystem Loop in cement operations
Data-driven wisdom for Process-Asset-Plant- Enterprise optimization
Planning
Plan production
Quarry
Track quality
and optimize
Raw material
Clinkerization
Improve throughput,
reduce thermal energy by
Shipping & Logistics
Enable just-in-time
delivery
Grinding
Improve quality,
save energy
Thermal Power Plant
Improve efficiency,
reduce cost
of power generation
Digital infrastructure
Integrated
communication
Enterprise Intelligence
Integrated activity
and decision support
Health & Safety
Crisis management
Utilities
Optimization
Utilities and byproduct
gases trend analysis and
Digital workforce
Problem reporting
and spot resolution
Smart Asset
Management
Smart plants that reflect
best practice and
processes

8. Industrial operations are undergoing profound changes and facing several challenges
Why we need digital? When faced with several challenges it is the answer
November 20, 2019 ABB Digital @CementSlide 8
Principle challenges of industrial operations
Increased production capacity with stronger integration
and interdependencies between activities
Cybersecurity
Continuous pressure on productivity, which involves controlling
costs, and improving the availability of equipment and facilities
Sustainable development – preserving the ecosystem and
limiting disturbances to the environment
Talent development, including knowledge, skills and the
culture of innovation
Company level motivations
▪ Price competitiveness
▪ Skills gap and dependency –
Standardize operation quality
▪ Management control and
visibility across fleet of plants
▪ Existence of Industry 4.0

9. Objectives and drivers 80 % + same across cement companies even across process industries
How to benefit from digital is driven by ’digital maturity’
November 20, 2019 Slide 9 ABB Digital @Cement
Transformation
seekers
50 – 60 %
Time
Digital maturity
Traditionalists
20 – 30 %
Digital
Champions
6 - 10%
Point Solutions &
Co-creation
Enterprise Digital
Transformation
Offering
Point Solutions
Proven Point
Solutions
Technology
discussion
People
discussion
Business
discussion
+
+
▪ Global Digital Operations Study 2018 from PWC 1155 executives from 26 countries
▪ Deloitte & Forbes 2017: Forerunners 26 %, Followers 51 % and Stragglers 23

10. For ’Technology discussion’
Advanced Process Control (APC)
Digital data architecture

11. What is Advanced Process Control?
November 20, 2019 ABB Digital @CementSlide 11
Autopilot for driving the plant to optimum state – First Stabilize then Optimize
Production example
– Reduce process variation
– Move production to upper
constraint (limit specified by
plant)
– Improve efficiency of
downstream units
• Reduced steel ball on steel
ball
• Reduced steel ball on liners
• Increased refractory
lifetime
• More stable overall process
conditions
Manual Operation APC Stabilize APC Optimize
APC
Target
Operator
Target
ProductionRate
Time
Benefits
due to
Optimization
APC installation

12. What is Advanced Process Control?
November 20, 2019 ABB Digital @CementSlide 12
Benefits / Features of having an autopilot in place
– Does not get distracted like human operators
– Small but frequent changes
– Reduced deviation gives room for optimization
– Consistent control strategy 24/7
– Consistently monitors and manipulates the
process to drive it to the optimum state
Enhancing operations 24/7, consistently moving the process in the direction that makes the plant money

13. ABB Ability™ Expert Optimizer
November 20, 2019 ABB Digital @CementSlide 13
Plant-wide optimization with Expert Optimizer
EO for Cement
Stockpile blending
Raw material blending
Raw mill control
Cement mill control
Coal mill control
Cement blending
Kiln, calciner & cooler
control
1 2
3
6
4
7
5
1
2
3
4
5
6
7
 Increased use of alternative fuels up
to 50 %
 Recovery in product from 1-3 %
 Reduction in consumables up to 30 %
 Increased throughput up to 10 %
 Reduced quality variability up to 50 %
 Reduced emission levels up to 10 %
▪ Increased equipment lifetime
▪ Operational discipline
▪ Energy savings

14. Causes by historical siloed development efforts
Typical production data collection landscape
November 20, 2019 ABB Digital @CementSlide 14
DCS # 1 PLC X PLC X PLC X
3rd
party
DB
Local
Application 1
Local
Application 2
Local
Application 3
Local
Application 4
Database a Database b Database c Database d
… DCS # 1 PLC X PLC X PLC X
3rd
party
DB
Local
Application 1
Local
Application 2
Local
Application 3
Local
Application 4
Database a Database b Database c Database d
…
Production line X Production line Y
L0/L1
L2
L3
Local
Application(s)

15. Desired architecture
Data available and managed to all applications in structured manner
November 20, 2019 ABB Digital @CementSlide 15
DCS # 1 PLC X PLC X PLC X
3rd
party
DB
…
Line X
L0/L1
L2
Edge data
collector
DCS # 1 PLC X PLC X PLC X
3rd
party
DB
…
Mill/ site data
lake (Edge)Local
application 2
Local
application 1
Local
application 2
Local
application 1
Edge data
collectorLine Y
L3
Cloud/ Global layer Cloud
Cloud
application
Cloud
application
Cloud
application
Cloud
application

16. For ’People discussion’
Enterprise digital transformation

17. Illustrative example where APC and Data architecture were first areas to be developed
Digital transformation key element – Roadmap
November 20, 2019 ABB Digital @CementSlide 17
3Q/19 4Q/19 1Q/20 2Q/20 3Q/20 4Q/20 1Q/21 2Q/21
DATA PLATFORM &
AVAILABILITY &
AI/ML ANALYTICS
PLANNING AND
PROGRAM MGMT
CULTURE &
PEOPLE
APPLICATIONS AND
SOLUTIONS PER
DEVELOPMENT
AREA (3…7)
WS1. Pain
points, vision
roadmap
APC
Proof of
Concept Future Control room
Digital data
Architecture
IT-OT data integration site 1
IT-OT data integration site 2
Sites 3, 4, 5, etc.
Application no 1
Application no 2 Application no N, Replication at other sites
Analytics platform
Engagement
Empowerment
Progress monitoring, Next steps planning, resourcing
WS 2 WS 3 WS 4
ORGANIZATION
Maturityassessment
Roles and processes

18. From technical improvements to holistic & systematic business and operations development towards future plant
ABB Enterprise Digital Transformation Offering
Tools to start digital journey
2. Digital maturity
assessment
1. Customer Value
Workshop
Digital transformation program foundation & management
Digital development initiatives
3. Agile & collaborative
approach, POCs,
Partners ecosystem
9. IT-OT data
integration
(on-premise &
cloud)
10. Asset
Management and
predictive
maintenance
12. Advanced
analytics,
Machine
Learning & AI
11. Performance
/ process /
energy
optimization
13. Management
system,
Dashboards &
Future control
rooms
8. Enterprise
digital
architecture
6. Business
case,
Pain points,
ROI &
Business
Models
5. Digital
transformation
roadmap
4. Envisioning
future
plant / mill /
mine &
digitalized
enterprise
7. Human
factor, Change
management &
Culture
F&B Solutions &
Capabilities
Metals Solutions &
Capabilities
Mining Solutions &
Capabilities
P&P Solutions &
Capabilities
Industry domain
Cement Solutions &
Capabilities
APC
ABB Digital @Cement

19. Summary

20. Targeted business benefits of digital transformation in process industries
November 20, 2019 ABB Digital @CementSlide 20
Bottom line and top line impact
...and Intangible Benefits including Process and Personal Safety, Value Stream, new Products and Solutions tailored for Market
Optimize the process
by usage of advanced
model predictive control
(MPC) and AI/ML
Improve OEE of assets
by reducing (unplanned)
downtimes
Improve product quality
by in-line quality control
incl. feedback loops
to process parameters
Improve Workforce
efficiency in in-plant
logistics
and warehousing
Improve planning
accuracy
by comprehensive
planning across fleets
~5% ~20% ~5% ~10% ~20%
Process Optimization
Productivity
Improvement
Energy Optimization
Asset Optimization
Predictive Maintenance
Performance
Improvement
Reliability
Quality Improvement
Data driven Quality
Control
Online Process Validation
Logistics Productivity
Automated
Replenishment
Material Handling
and Transportation
Smart Warehouse
Planning Efficiency
Fleet level Enterprise
Planning
Dynamic Production
Scheduler for Mills