Digital and Alcoa’s IT & Operational Technology Journey

Peter Stamp

Chief Information Officer

June 2019

Alcoa Corporation – a proud 130 year history

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▪ Inventors of the original aluminium process

▪World's largest bauxite mining portfolio and alumina refining business

▪ 2018 sales revenue at $13.4B

▪ Award-winning sustainability leadership

Three segments across the aluminium value chain

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Geographically dispersed mines

with a premier low-cost position

Eight refineries on five continents

with access to growth markets in

Asia, Middle East and Latin

America

Global aluminum producer with a

proven ability to drive technology

advancements

BAUXITE ALUMINA ALUMINIUM

Global operations by business segment

Our values support our license to operate around the world

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Brazil:

Guinea:

Saudi Arabia:

Australia:

United States:

Norway:Iceland:

Spain:

Canada:

Suriname:

Bauxite Alumina Aluminum Transformation

Alcoa’s IT environment is standardized and integrated through global strategies and enterprise architecture

50M Emails/Month

7.4% 92.6%

1 IaaS Global Data Center

1 Regional Satellite

Multiple PaaS/SaaS/BPaaS

150K ERP

transactions daily

300+ Alcoans300+ Contractors with

Strategic Partners

1,100

VM/Servers1,500

Terabytes of

Storage

30 operating locations in 10

Countries around the Globe

17,000+ users of services

12,000 Laptops

&

Desktops

Global Network (MPLS/SD-WAN)

connecting Alcoans to the world

5,500 Managed Network Devices

Alcoa IT & Automation

Solutions

1 Global HCM instance

200+ SaaS Applications

800+ Business Applications

500K Skype &

Teams / Month

2,600

Mobile

Common Automation & Process Control Solutions (OT) are aligned with Manufacturing affinity†

Windows Servers Core Windows ServersWindows Clients Network Switches

SitesPLCsWindows Infra.SCADA NodesHistorianHistorian Tags

SitesOperator StationsAdvanced Control Apps/Inst.LCN NodesControllers (HPM/C300)Safety ControllersField I/OPLCsQUASAR Nodes*/UsersNetwork Switches/Aps/RoutHistorianHistorian Tags

Sites (Smelting/Casting)Sites (Rolling)SCADA NodesAPMSDG Nodes‡

AGVRobotsPLCsField I/ONetwork SwitchesHistorianHistorian Tags

Leveraged Manufacturing Infrastructure (LMI) – segregated from business domain and utilized in all manufacturing affinities

†Solutions share a common architectural framework, comply with cyber security standards, and leverage common manufacturing infrastructure, wherever possible

ALUMINUM SMELTING/CASTING/ROLLINGALUMINA REFININGBAUXITE MINING

Integrated “One Team” supports all levels of IT & Operational Technology / Automation Solutions

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IT & Automation Systems

Architectural Model Levels

Alcoa: Mining, Refining, Smelting, Casting, Rolling, Energy, Shared Services, Corporate

Sensors & Control Elements

Real-time Control & Robotics

Advanced Control

Mfg Operations Management

Business Planning, Logistics

IT & Operational Technology /

Automation Architecture

Aligning IT & OT realizes benefits on multiple dimensions

▪ Recognize and leverage the diversity of skills, experience & perspective – IT & Engineering

▪ All parties are aligned and work towards a Win-Win outcome to maximise business outcome

▪ Development of single integrated architectural framework for Levels 1-4 – “Sensor to

Boardroom“

▪ Adoption of common standards and accommodating unique technologies where required

People &

Organization

Architecture

& Solutions

Risk

Management

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▪ Visibility and management of cyber security risks for the entire system – CISO accountable

for all

▪ Maximises adoption of common cyber security standards and processes

▪ Utilise data across the entire organisation to maximise insight & decision making agility

▪ Facilitate automation of administrative and operational workflows and process

Value

Proactive Cyber Security

Cloud and Network Becomes Core

Digital strategy & solutions are enabled & optimized with IT/OT Integration

9Advance Knowledge and Talent

Bimodal ITAS and Efficiency Driven Organization

Integration Connects the Ecosystem

Mobility: Anything, Anytime and Anywhere

Transforming Alcoa

through Digitalization to Achieve

Agility, Efficiency and Value Creation

Advancing

Analytics &

Data Insight

Enable value from data &

improved decision making

Automate and

Optimize

Business

Processes

Modernize, right-size, simplified

Automated &

Intelligent

Manufacturing

& Operations

Automation, Analytics and

Security

Foster

Collaboration

and the

Connected

Worker

Internal andexternal digital

workplace

Digital

Optimization &

Transformation

Ideation

New types of innovation and

creativity

Bu

sin

ess

Driv

ers

&

Stra

teg

ies

Te

ch

no

log

y

Dri

ve

rs

World Economic Forum White Paper: Digital Transformation Initiative in Mining and Metals Industry, January 2017

Key Digital Transformation themes are emerging across Global Mining & Metals Industry

Automation, Robotics

and Operational

Hardware

Digitally-Enabled

Workforce

Integrated

Enterprise,

Platforms &

Ecosystems

NextGen Analytics &

Decision Support

Themes

The use of digitally-enabled hardware tools to

perform or improve activities traditionally carried

out manually or with human-controlled

machinery

Using connected mobility, virtual and

augmented reality to empower field, remote and

centralized workers in real time

Linking operations, information technology

layers and devices or systems that are currently

separate, within the value chain or the larger

ecosystem

Leveraging algorithms and AI to process data

from sources within and beyond the value chain

to provide real-time decision support and future

projections

Description

Smart Sensors

Initiatives

Autonomous Operations and Robotics

3D Printing

Connected Worker

Remote Operations Center

Asset Cyber Security

Integrated Sourcing, Data Exchange & Commerce Platforms

IT/OT Convergence

Advanced Analytics

Simulation and Modeling

Artificial Intelligence

C O N N E C T E D W O R K E R

A D VA N C I N G A N A LY T I C S

C O N N E C T E D B U S I N E S S

A U T O M AT I O N

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Focus on key Digital opportunity areas

“Automation & Smart

Manufacturing”

Process Control & Sensors Data Historian,

Calculations & Visualization

Manufacturing Execution

Systems (MES)

Modeling & Simulation

“Digital Twin”

Manufacturing Analytics & Intelligence

Automated Equipment

“Automation” of Operations consists of multiple components & disciplines

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Automated &

Intelligent

Manufacturing &

Operations

Automation, Analytics, & Security

QUASAR Automation program implemented in Alumina refining operations to achieve sustained, increased business value

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Process Control

Field Inst. Specialty Analyzers

DCS& SIS

Advanced Control

Manufacturing Operations Management

Historian & Data Model

Ops & Prod Mgmt.

Base & Visual Analytics

ERP Integration

Sustaining Support Services

Common Best Practice Solutions

Continuous Improvement

Local/Remote Systems Monitoring & Operations

Global Talent Leverage

• Realised incremental production increases and improved raw material conversion efficiencies

• Improved process stability & enabled operation closer to practical limits

• Managed process control equipment and systems obsolescence

• Achieved high level of process systems availability and compliance

• Leveraging the global manufacturing, technology and subject matter expert resources

Implementing Analytics Infrastructure to enable additional insights through Predictive Analytics

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ANALYTICS ENVIRONMENT & DATA LAKE

Provide a scalable, end to end analytics

solution capable of expanding with the

Advanced Analytics program.

The framework should enable efficient

analytic delivery at a low relative cost to

enhance the overall business case.

EQUIPMENT SURVIVAL MODEL

Significant

savings opportunity

in preventing

unplanned

equipment failures

Target State: An online Analytic predicts the likelihood of

Equipment surviving their campaign and provides insights

into the major causes for health deterioration.

We use our wireless infrastructure to fill data gap rapidly

Innovation cycle: use plant data, identify new opportunities, test ideas and implement

“Digital Twin” Plant-wide process models, rich data, advanced analytics & agility

We are continuously defining opportunities for improvement using Digital solutions

From installing wireless device on process to having process data : duration one dayPlantwide wireless mesh

SMART Manufacturing program has been implemented in Aluminum business to provide single source of truth

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• Well integrated, fine

granularity, long term

production data repository

• Increase collaboration

• Foundation for Advanced

Analytics & Reliability

Excellence

• Achieved significant

savings

Solution Results & benefitsChallenges• Aluminum market

• Improve competitiveness

• Enhance operational

excellence

• High retirement rates, loss

of SMEs

• Established the SMART

Manufacturing program

• OSIsoft Historian & Asset

Framework – 10M tags

• Deploy a robust, common &

globally deployed infrastructure

in all operating locations

• Mobilize key employees

SMART Manufacturing is the integration of data with process expertise to enable proactive and intelligent manufacturing decisions in dynamic environments

All equipment fails!

What it the best strategy for each individual component

Each equipment has specific failure modes!

Reliability Excellence (REX) and equipment example: motor/pump assembly

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Manual

Inspection

Manual Inspection or

Online sensor in PI

Online

sensor in PI

Historian

Improving REX outcomes by utilizing Predictive Analytics built on Smart Manufacturing with remote monitoring

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▪ Equipment condition PLC/Historian data and maintenance information from Oracle eAM is collected into the Analytics service

▪ Data is processed through algorithms to determine “normal” operations versus “upset” conditions

▪ Algorithms detect “possible issues” and users are notified

▪ Users act on issues and give feedback to analytics recommendations to improve models and results

▪ Analytics feedback integrated into Historian and becomes “a new measuring point” for asset health to monitor

Source: Graphics from Senseye

IDEATION & DESIGN THINKING

ENTERPRISE AGILITY

CHANGE MANAGEMENT

Digital Transformation is more than Technology

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▪Establishing business sponsorship is critical & takes time

▪Digitalization drives need for IT/OT alignment & integration

▪Hybrid cloud environments need to be well architected

▪ IT/OT integration provides visibility and enables leverage of data across the enterprise

▪Partner with key solution providers

▪ Identify high potential use cases and implement proof-of-concepts. Agile with quick wins or fail fast, then scale fast

▪Much more than technology – engaging people

Lessons learned along the way for IT/OT Integration and Digitalization (Optimization & Transformation)

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