The role of Industry 4.0 in Liberty House Group’s strategic green steel vision Wednesday, 6 June 2018 Eric Vitse Chief Technology officer GFG Alliance/Liberty House Group Shane Murphy- Simon Pike- Andrea Fontana: Liberty steel 4.0 incubators 1 www.gfgalliance.comwww.gfgalliance.com June 2018 1 Agenda • GFG Alliance • 4.0 fits with our strategic green steel vision • Areas of opportunity for applying cyber physical systems in our existing plants • 4.0 requirements • Example of 4.0 development programs • Already a wide set of practical examples 2 www.gfgalliance.com 2 3 www.gfgalliance.com 3 GFG Alliance GFG Alliance Ownership PKG SKG SKG PKG/SKG PKG/SKG Liberty House SIMEC Group Wyelands JAHAMA GFG Foundation Group Liberty Commodities Liberty Industries Liberty Engineering Liberty Aluminium Liberty Steel 4 www.gfgalliance.com 4 GFG Alliance Global Footprint • The GFG Alliance has a presence across 30 countries. • Global turnover of c.US$13bn • Net assets of c.US$2.3bn • Global head offices located in: • London • Dubai • Singapore • Hong Kong • Sydney 5 www.gfgalliance.com 5 GFG Alliance GFG Alliance in Numbers 6 www.gfgalliance.com 6 4.0 FITS WITH OUR STRATEGIC GREENSTEEL VISION ▸ Our business is experiencing the early stages of an economy wide disruptive change to the 4th generation of industrialisation - cyber-physical systems for business ▸ Liberty house group GREENSTEEL : • A high efficient production process aiming at first time first choice • A green process using as much as possible renewables raw material as scrap recycling , energy and achieving high steel quality standards • A high level of integration in the complete supply chain and to ensure integrity of final components at customers and optimised lead time. • A breakthrough in terms of automation and robotics aiming at safer manufacturing • A significant improvement in throughput and costs in operations ▸ New context : • Every sensor and actuator can now be optimised and networked • Advancements in big data and powerful analytics meaning that systems can trawl through the huge sets of data and produce insights that can be acted upon quickly. • More solutions providers are available and approaching our group • New dynamics in terms of innovation including in the robotics/automation sectors. • Downstream integration moves our group towards smart factories. 7 • Some of our existing mills technology provides a good foundation for optimisation (as examples one steel Australia, UK specialty steel) www.gfgalliance.com 7 SOME AREAS OF OPPORTUNITY FOR APPLYING CYBER PHYSICAL SYSTEMS IN OUR EXISTING PLANTS • ‘Smart’ predictive maintenance – sense & predict • ‘Smart’ safety systems – sense & predict • Process analytics and optimisation – collate, analyse and optimise Modern data technologies could allow us to access real-time information more efficiently and to be able use data in process models and self-learning systems aimed to improve process adherence and product quality • ‘Smart’ sensors and actuators – sense & adjust • More robotization and automation • Autonomous vehicles 8 www.gfgalliance.com 8 Process analytics and optimization opportunities: Horizontal integration: Feed-forward dynamic control EAF Sec Steel Casting Remelt Rolling Heat treat Inspect Despatch Excellent bar Processing Other issue customer Processing Excellent issue bar 9 Excellent Perfect process and product control allows expansion of funnels bar www.gfgalliance.com 9 4.0 Rationale in EAF Steelmaking • Interrogating our data in an efficient and timely manner could really help to improve our processes and therefore our business performance. This can be done by: • Identifying variations in processing identified through process measurement that may influence decisions on later product processing. • Better understanding could help the steel plant to focus on correcting the root cause of process or product deviation and improve manufacturing yield. • One of the main issues that can impact on our customer service is the need to take remedial actions and rework on products during later manufacturing in order to achieve the customer specified properties. • Modern data technologies could allow us to access real-time information more efficiently and to be able use data in process models and self-learning systems aimed to improve process adherence and product quality. • Potential digital twin of the steelmaking processes where we cannot directly measure due to the operating conditions such as inclusion distributions and evolution in ingot casting and impact on 10 finished product properties. www.gfgalliance.com 10 4.0 REQUIREMENTS FOR SOUND DEVELOPMENT WITHIN OUR GROUP Industry 4.0 will ultimately transform our business and it is clear that it will require big data management More and more data will come from ‘smart sensors’ connected to fast, efficient, resilient and secure networks. We need to create a developmental framework that uses our organisations existing knowledge and expertise, and use external resources to assist when needed. Develop policies and standards for the minimum functionality and connectivity of new equipment. Identify and implement ‘quick wins’ that clearly demonstrate the value of digitalization of the business for the purpose of getting the support of the senior executive management. Develop a relationship with businesses and institutions that are the leading thinkers in the future of digitalization i.e. big data and scalable analytics. 11 www.gfgalliance.com 11 4.0 DEVELOPMENT PROGRAM EXAMPLE: EAST COAST MILLS - INDUSTRY 4.0 JOURNEY GETTING STARTED GETTING ORGANISED GETTING INDUSTRY 4.0 How did we begin Where are we now? FIT/READY on Industry 4.0? What lies ahead? Focus on specific East Coast 2018 2017 April 2017 October Selected optimising projects implemented and evaluated in Mill International benchmarking visits identified cyber Quick wins identified East Coast Mills physical systems applications emerging in steel industry projects Industry 4.0 implementation framework finalised Workstream capability developed 2017 May-July Workstreams identified and teams formed IT/OT structure developed Industry, academic and supplier experts consulted. Steering process initiated:- Standards & protocols developed 2017 August □ Governance, standards & protocols SME networks expanded Automation theme for 2017 Best Practice Conference Share □ Capability, team development & recruiting Line team participation developed Internal SMEs convened and Industry 4.0 implementation learning framework developed ‘Industry 4.0 Fit/Ready’ integrated with Optimising/Expanding Meltshop/Mill capacity 100 day Beyond 2019 East coast mills current state appraised:- plan stream Industry 4.0 capability built into to org and systems □ Networks/security structures, operating culture and operations strategies □ Data & Data Management 2017 November onwards:- East Coast Mill learning shared through:- □ Process Automation (Field Devices, PLC, SCADA) Levels Workstreams begin activities □ Supply chain 0, 1 and 1.5 □ Stream definition & scoping □ Best practice networks □ Intelligent Automation (analytics, MES, advanced automation) Levels 2 and 3 □ Projects identified & initiated 12 www.gfgalliance.com 12 Metallurgical properties Horizontal integration : 4.0 journey for Liberty UK specialty steel EAF Sec Steel Casting Remelt Rolling Heat treat Inspect Despatch Value in use Value in use Magmasoft – Offline scheduler Offline pbp Offline scheduler Through proc model model casting model scheduler analysis line models line - Magmasoft – Present Off remelt model Med term Long term Metallurgical Metallurgical Metallurgical Metallurgical Metallurgical Metallurgical model model model model model model Process model Auto vetting Auto vetting Auto correction Auto correction Auto correction process model process model process model Level 2 Level process model process model Optimisation Optimisation Optimisation Optimisation Optimisation Optimisation routines routines routines routines routines routines Auto data Auto data Auto data Auto data Auto data Auto data Auto data capture capture capture capture capture capture capture Level 1 Level In-line LIBS In-line LIBS In-line profile Temperature UST Trackable gauge control labels/tags Temperature Temperature Metallurgical Surface profiling Sensors control structure Laser alignment 13 Full feed-forward/feed-back capability www.gfgalliance.com 13 Summary . Industry 4 or 4th Generation factory has huge potential for Liberty Steel . Very broad subject – but with massive benefits to: . Raw materials flexibility . Mass customisation . Process problem solving and reliability improvement . Product reliability and property precision . Delivery precision . Throughout supply chain and in customers . Requires modern hardware (computers) . Strengthening of the process modelling capability in R&D . Strengthening of automation support for implementation (fte) . Development of novel sensors and measurement – and ability to build for plant application. 14 www.gfgalliance.com 14 Liberty will leverage Australia and UK Industrial Approach 15 www.gfgalliance.com 15 AUSTRALIA’S PRIME MINISTER I 4.0 TASKFORCE The Prime Minister's Taskforce was formed following the release of the report of the Australia-Germany Advisory Group in November 2015. The Advisory Group recommended collaboration between government and industry in both countries on Industry 4.0, including initiating a collaborative approach to the development of global Industry 4.0 standards. The Prime Minister’s Industry 4.0 Taskforce has now signed a