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Building the Learning Steel PlantDr.-Ing. Markus Reifferscheid, CEO of SMS digital
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
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Only 71 companies remain today from the original 1955 Fortune 500 list. Digitalization is the key to competitiveness.
Who will lead the market of the future?
Digitalization in the Steel Industry
Dr. Markus Reifferscheid2The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
…expect positive influences on business through digitalization
80.2 % …expect to lose competitive advantages if they don’t digitalize.92.3 %
…are investing in digitalization92.1 %
…cumulative cost reduction are expected3.2 %
…are perceived as not digitalized enough by their customers.62.6 %
… are not cooperating with partners from the same industry.83.9 %
Major drivers and need to act
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What does this mean in steel industry?
„Higher, farer, quicker“• Maximum delivery performance
• Smaller order sizes
• Maximum quality
• Reducing costs „Turning data into value“
Chal
leng
esof
the
stee
lind
ustr
yGlobal Trends „New Normal“
• Global overcapacities
• Volatile prices
• Stronger regulations
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 20193
Source Photo:https://www.g-geschichte.de/plus/faszination-gral/© istockphoto/estt
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“We combine digitalization expertise with 150 years of metallurgical knowhow”
Who we are?• Founded in April 2016• Digitalization experts with roots in the SMS group
What we do?• Software Solution in value relevant fields• Platform solutions• Digital service and products & apps• Customer Innovation | Data analytics | Machine learning• Services for operational expertise
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 20194
Successful specialists,valuablebrands
Hundreds of digitalization products, services, expertsworldwide
~ 150 years experience and expertise in metal plantengineering
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Objective: Establishment of digital services in the steel industry
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 20195
DigitalServices
Complex plant landscape
Harvest data Create added value
Scalability Security
Newbusiness models
New ways of working
Acquisition of resources
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The Learning [Steel] Plant
6October 2, 2019The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
The Learning [Steel] PlantOur Vision
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Planning
Quality
Asset
Our Vision of the Learning Steel Plant
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The Learning Steel Plantauto-adaptively optimizes its production process as part of an integrated value chain, based on physical, heuristic, and data driven based models or systems with regard to production planning, product quality and asset condition.
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
Logistics
Energy
SMS Data Factory
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Solution categories
Dr. Markus Reifferscheid
Planning Asset
Quality
Optimization of :Plant availabilityInventory managementMaintenance planning
Products:Asset Management System &SaaS Solutions- Smart Alarm- Digital twin…
Optimization of:Output & Financials
Delivery performanceStock management
Product:MES 4.0
Optimization of :Product characteristics
TolerancesYield
Product:Quality Management
System
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Create added value – Merge domain Know-how with Machine Learning
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 20199
• Need much less data
• Powerful, but hard to maintain & scale
• Capture knowledge & experience of experts
• Easy to understand
• Rigid or reliant on judgement
• Limited amount of data available
• Use parameter space of past operation
• Easier to maintain and scale
Engineering models
Equipment / process physics( physical parameter sets, etc.)
Rules & other codified insights
Accumulated experience in operating the equipment
Machine learning, pattern recognition / classification
Models
Theory-based Empirical & Heuristic Data-driven
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Learning never ends!
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Data translation Improvements & Skills
Harvest data
Domain Know-how
AI / MLData-based
learning & decision making
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
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SMS Data Factory – Harness DataBrown field situation: Render the plant digital ready
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SMS Data Factory
Dr. Markus Reifferscheid
Data Factory - protects OT systems from from IT system interference- provides an organized data handling from any data source in appropriate form- and offers a central API integration layer
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API Sets
Data Factory
Conn
ecto
rsData Dictionary
Sources
<Level 0>
<Level 1>
<Level 2>
<Level 3>
<Level 4>
<Apps>
<...>
Data Types
Relational Data
Files/Media
Time Series
Data Engine
Data Warehouse
Data Lake
Acquisition Module
OT/IT Systems
AI / ML
Web Apps
UniversalAPI
CustomAPI
CloudOn Premise
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Advantages of a Cloud Platform Solutions
Dr. Markus Reifferscheid13
Focus on core business Quick implementation
Robust securitystandards & encryption
Worldwide availability and connectivity
Endless scalability Future proof technology
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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mySMS Platform | Connectivity to SMS Platform ServicesFocus on your core business
• Make use of specialists know-how regarding security, infrastructure
• Only pay for what you use
• Higher flexibility and scalability
• Commonly shared components enable a faster time to market and cut development costs
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• Installing an equivalent on-premise solution is • Costly• Time-consuming • Requires specialized staff
• Cloud computing is no core competence to companies in the steel making industry• Velocity in technology requires
specialized companies that are able to keep up
• Lack of knowledge in terms of data security, infrastructure etc.
• Scalability: Changes in business will cause costly changes in IT infrastructure
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
© All rights reserved Dr. Markus Reifferscheid
15October 2, 2019The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
Asset SolutionsIMMS | Genius CM | PCA | Smart Alarm | eDoc
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Digital Products and Apps
Dr. Markus Reifferscheid
• Increases OEE by avoiding equipment downtimes• Works as asset management system connected to
embedded sensors• Shows plant status by online alarm signal indication • Supports with root cause analysis including process
data• Embedded Intelligent Sensor Systems: Torques,
Vibrations, Temperatures, Forces, Oil flow, particles, and velocity
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Genius CM IoTPlant wide operating Condition Monitoring System
! Predict equipment failure and increase OEE.
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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• Early identification of process deficiencies and unsuitable production parameters
• Automatic process supervision and guided operator support
• Increasing transparency and visibility of all process and production related data across the whole process chain
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Higher plant availability and yield!
Digital Products and Apps
Plant and Process SupervisionPlant wide, in-time production control
!The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
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Challenges
• Relevant alarms are missed
• Inhomogeneous automation infrastructure
• Unused machine information
Solution
• Single source of truth for all machines
• Intelligent analysis and enrichment with additional information
Technical advantages
• Be informed about relevant alarms immediately
• Continuous development keeps you up to date
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Digital Products and Apps
Smart AlarmAll alarms available in an intelligent and clear interface
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
ROI usually less than 6 months!!
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Allows fast and easy access to up-to date documentation any where and any time.
• Online access to information of machines, components, and other equipment
• Online order initiation from compaby stock or SMS
• More than 200.000 SMS standard components accessable
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*) Based on experience by Kingsblue. Actual savings can vary.
! 1 – 2 % increase in equipment availability*
Digital Products and Apps
eDocFull equipment as digital web service
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Interaction of Smart Alarm, Genius CM and eDoc
Dr. Markus Reifferscheid21
Smart AlarmAlarm-Management
Machine condition• Prevent downtime• Faster troubleshooting• Optimization of
maintenance
eDocDocumentation
Online documentation• Save time when
searching for documentation
• More reliable spare part identification
Detail analysis of the error condition• Optimized maintenance
intervals• Documentation of the
measures• KPIs of maintenance
efficiency
Genius CMCondition Monitoring
Spare parts list• Faster order• Fewer errors• More transparency
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Predictive Maintenance Solutions
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Maintenance Strategies
Dr. Markus Reifferscheid
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The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
MaintenanceActivities
Preventive
Reactive
Condition-basedMaintenance (CBM)
PredictiveMaintenance (PdM)
Time-basedMaintenance (TBM)
Usage-basedMaintenance (UBM)
EmergencyMaintenance
Breakdown/AlarmMaintenance (BDM)
Maintenance Prevention
Exchange based on expected lifetime estimated by prediction models
Exchange carried out at predetermined intervals of time
Exchange carried out at predetermined intervals of usage
Unexpected exchanges of equipment that is under CBM, UBM and TBM maintenance
Exchange of equipment deliberately operated to failure / redundant equipment
Redesign equipment as basis for optimum maintainability / reduction or elimination of maintenance tasks
Periodic/continuous monitoring of asset condition to determine if intervention is warranted
October 2, 2019
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Role of Preventive Maintenance
Dr. Markus Reifferscheid24The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
CMMS
Equipment Info(BoM, drawings, documents etc.)
ERP
Maintenance Action
DigitalDigital
Smart Maintenance Management System
ReactiveMaintenance
PreventiveMaintenance
Stock
Maintenance Documentation
• Partners• Prices• Availability• Contract
Status • History• Remote
Service• Expert
support
Market
Condition-based Maintenance
PreventiveMaintenance Actions
Level 1
Level 2
Level 3
Predictive Maintenance
Rule based Maintenance R1: Flush once a weekR2: Replace after 10 .000 tons productionR3: ….R4: ….
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Applicability of Predictive Maintenance
Dr. Markus Reifferscheid25The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
Failure Type Failure Pattern Occurence,Percent
Applicability of Maintenance Strategies
Wear outfailure
Randomfailure
Infant Mortality
Time/Usage basedMaintenance
Condition basedMaintenance
PredictiveMaintenance
11 %
21 %
68 %
ApplicabilityHigh Medium Low
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Component Selection
Dr. Markus Reifferscheid26The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019
Criteria Rational
Failure frequency
Measurability ofchanging conditions
PdM requires enough data prints to provide basis for correlation calculations
PdM requires operating parameters (temp., pressure, etc.) to be measurable
< 5 failures across plant
Sensors cannot be installed on/near component
> 30 failures across plant
Sensors are already installed
All critera need to be met
Impact on production/service
Collateral damage
Impact on safety
PdM potential increases with impact of failure on production or service level
PdM potential increases with necessity and cost of replacing adjacent components
PdM potential increases with risk of injury from unexpected failure
No impact or impact on low-cost components
Failure does not affect prod. or service levels
Low risk of injury from unexpected failure
High impact or impact on high-cost components
Failure stops prod., interrupts service
High risk of injury from unexpected failure
Min. one criterion needs to be met
Scalability within/across plants
Price and availability of spare parts
Time to repair
Duration of outage
Time dependance of failure mode
More potential if same critical component in more than 1 machine
PdM potential increases with the costs for spare parts, logistics and storage
PdM potential increases with difference between time to repair when replacement is planned vs. unplanned
PdM potential increases with outage duration after unexpected failure
PdM potential decreases with time dependance of failure
Critical compoment in one machine
Low cost
No difference
Less than 1 hour
Failure is time/usage dependent
Critical component in > 10 machines
High cost
Unplanned job > twiceas long
12 hours of more
Failure is not time dependent
Optional criteria
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Solve the Tuning Problem
Dr. Markus Reifferscheid27
Tune the system, adjust alarm limits• Single machines• Various operating conditions• Copy-paste of settings will not work
Classical techniques are often based on normalization• Crest factor (cancels out overall noise level)• Sideband energy ratio for assessing gear mesh
Use machine learning algorithms to automate classification• Typically, labelled data not available supervised training cannot be used
• Need to detect the failure before it occurs for the first time
• Can enhance but not replace the classical methods
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Novelty Detection in Condition Monitoring Solutions
Dr. Markus Reifferscheid28
• Unsupervised learning task• Build compact description of training data
(healthy machine)• Compare („score“) newly taken data with model• Examples:
• 1-class SVM• Auto-encoder neural networks• Gaussian mixture models picked for SMS Condition Monitoring System
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models
Dr. Markus Reifferscheid30
• Simple iterative algorithm • Start with random mean
vectors and covariance matrices
• Repeat:• Soft-assign points to
components• Adjust components
given assigned points
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models
Dr. Markus Reifferscheid31
• Simple iterative algorithm • Start with random mean
vectors and covariance matrices
• Repeat:• Soft-assign points to
components• Adjust components
given assigned points
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models
Dr. Markus Reifferscheid32
• Simple iterative algorithm • Start with random mean
vectors and covariance matrices
• Repeat:• Soft-assign points to
components• Adjust components
given assigned points
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models
Dr. Markus Reifferscheid33
• Simple iterative algorithm • Start with random mean
vectors and covariance matrices
• Repeat:• Soft-assign points to
components• Adjust components
given assigned points
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models
Dr. Markus Reifferscheid34
• Simple iterative algorithm • Start with random mean
vectors and covariance matrices
• Repeat:• Soft-assign points to
components• Adjust components
given assigned points
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Background: Gaussian Mixture Models to Score New Data
Dr. Markus Reifferscheid35
• For newly taken data x, calculate mixture density p(x)
• Points far away from the components will have low density
• Easier to look at: -log p(x)
• Note how the novel points are well within the observed range of x and y alone
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Genius CM: Bearing Monitoring in Hot Rolling Mill Gear Box
Dr. Markus Reifferscheid36
Roll bearing at F1 main gearbox, input shaft Classical approach for bearing monitoring• Envelope analysis and order tracking• Extract amplitudes on forcing frequencies plus global statistics (𝐬𝐬
∈ ℝ^6)• Outer ring, inner ring, rolling element, cage, etc.• Average of effective + maximum value per revolution• Extract rotation speed and motor torque (𝐮𝐮∈ℝ^2)• One datum per rolled strip filets only
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Genius CM: Gaussian Mixture Models Solution
Dr. Markus Reifferscheid37The Learning [Steel] Plant | Future Steel Forum 2019, Budapest
• Training data inner ring amplitude vs. rotation speed
• Clear dependency• Other 5 features in s look similar• Mixture components (2D projection)
• Training data inner ring amplitude vs. motor torque
• Only mild dependence• Other 5 features in s look similar• Mixture components (2D projection)
October 2, 2019
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Genius CM: Bearing Monitoring in Hot Rolling Mill Gear Box
Dr. Markus Reifferscheid38
new bearing
Novelty Detection• Score (unfiltered, sliding median)• Drastic increase 4 months prior to bearing exchange • Score keeps high with new bearingWhy?
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Genius CM: Bearing Monitoring in Hot Rolling Mill Gear Box
Dr. Markus Reifferscheid39
Novelty Detection• Look at z-transformed features of outer ring indicates
that outer ring damage has been eliminated• non-specific increase in score check other single
features in s in GeniusCM tool
Marked in red: Sensor problems
Marked in red: Sensor problems
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Genius CM: Bearing Monitoring in Hot Rolling Mill Gear BoxWhy is the score level still high?
Dr. Markus Reifferscheid40
• Order spectrum just before exchange of bearing clearly shows outer ring damage
• Order spectrum for new bearing already shows a weak rolling element damage pattern
Novelty Detection• Monitor and supervise up coming rolling element damage
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Novelty detection and Predictive Maintenance in steel production plants
Dr. Markus Reifferscheid41
Conclusion• Novelty detection enhances the condition monitoring system with predictive
functions• Effort for tuning alarm limits is significantly reduced, at the same time reliability is
increased (reduced false positive)• Keep interpretability easy by
• Grounding the machine learning part on well-understood statistical features that are tailored to the specific types of machines
• z-transformation of individual features• Using the combination with classical visualization techniques
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Conclusion
Dr. Markus Reifferscheid42
Takeaways
• Digital solutions generate value in in Planning, Quality, Asset, Energy, Logistics etc.
• Combine steel technology know-how with digital know how to generate max. value
• Harvesting data is one key enabler
• Hybrid Cloud Solution will be the future
• Linked platform solution will provide the digital services (internal and external)
• Machine Learning will enable or improve but not fully replace traditional approaches
in asset management
The Learning [Steel] Plant | Future Steel Forum 2019, BudapestOctober 2, 2019
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Thank you for your attention!
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CEO SMS digital GmbH +49 211 881 6111
my.sms-group.com
Dr.-Ing. Markus Reifferscheid
EVP SMS group GmbH
Please contact me for further informationor a personal meeting
The information provided in this presentation contains a general description of the performance characteristics of the
products concerned. The actual products may not always have these characteristics as described and, in particular, these may
change as a result of further development of the products.The provision of this information is not intended to have and
will not have legal effect.
Dr. Markus ReifferscheidThe Learning [Steel] Plant | Future Steel Forum 2019, Budapest
October 2, 2019