IBM Bromont Plant Technology for a Smarter Planet

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1 IBM Plant Technology for a Smarter Planet McGill University February 23rd, 2011

2 Agenda IBM Canada IBM Smarter planet initiative IBM manufacturing plant Our continuous improvement journey MiQro Innovation Center Project Conclusion

3 IBM has a strong and unique presence in Canada Established in Canada in 1917 One of the largest IT services and consulting organizations in Canada IBM Canada Lab Largest software development team in Canada Largest team of IBM Software professionals outside of the US IBM s largest semiconductor packaging and test facility One of Canada s top R&D investors $541M in 2010 One of Canada s largest IT exporters $1.8B in 2010

4 IBM Canada Mission Help clients of all sizes and in all industries transform their operations through the use of technology, infusing intelligence into the systems that run our businesses, our society and the world.

5 Smarter Planet: A Mandate for Leadership

6 A Smarter planet? The need for progress is clear. 50% of Canada s personal greenhouse gases result from passenger road transportation. 44,000 Conservative estimate of the number of prescription errors in Canada each year. 170 billion Kilowatt-hours wasted each year by consumers due to insufficient power usage information. $1 trillion in damages was incurred by Canadians as a result of weather related events from 1980 to 2003.

7 Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT

8 INSTRUMENTED 30 billion 30 billion RFID tags are embedded into our world and across entire ecosystems. 1 billion More than 1 billion camera phones in existence. 85% Nearly 85% of new automobiles contain event data recorders.

9 INTERCONNECTE D 2 billion There will be an estimated 2 billion people on the internet by billion There are an estimated 4 billion mobile phone subscribers worldwide. 1 trillion Soon, there will be 1 trillion connected devices in the world, constituting an internet of things. Interconnected

10 INTELLIGEN T 15 petabytes Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. 1 petaflop Scientists are working to prevent influenza pandemics by modeling the viruses with a supercomputer that can operate at one petaflop, or one quadrillion operations per second. 1 square kilometer New analytics enable high-resolution weather forecasts for areas as fine as 1 to 2 square kilometers. Intelligent

11 A Smarter Planet is built on smarter silicon INSTRUMENTED INTERCONNECTED INTELLIGENT Smarter energy Smarter buildings Smarter healthcare Smarter transportation

12 New Intelligence SMARTER HEALTH CARE IBM is working with the University of Ontario Institute of Technology on a First of a Kind project to help detect life threatening changes in the condition of critically ill, premature infants with greater accuracy and intervene more quickly. Software, developed by IBM Research, is capable of processing 512 readings per second generated by a wide range of medical devices holding the promise of improving the infant s well being, reducing time in intensive care and their total cost of care IBM Corporation

13 New Intelligence SMARTER TRANSPORTATION IBM is working with Rosenau Transport Ltd., one of the largest general freight carriers in Western Canada, to proactively capture data related to traffic conditions, load weight and tire pressure providing the basis for optimal delivery routing and fuel efficiency. This also results in better use of driver s time due to less backtracking and detours. Clients can also receive up-to-the minute alerts as to shipment arrival through sensors on the vehicles.

14 SMARTER UTILITY GRID Green & Beyond IBM is working with the Government of Malta to build the world s first national smart utility grid. This includes replacing a quarter-million conventional electric meters with smart meters and upgrading its water system where it can be monitored and managed remotely. Customers will be able to use the Internet to track their utility usage in real time, chose the best plan and pre-pay services. Malta is the first country to green its national grid serving as a test case for whether integrating smart technologies into both electricity and water systems can help mitigate the increasing effects of global warming on the island

15 Dynamic Infrastructure SMARTER RESEARCH The Ontario Cancer Institute is using the World Community Grid to improve the results of protein X-ray crystallography a favoured research method for proteinstructure determination. This allows researchers to process 86 million images that would take thousands of years without the Grid s computational power. Scientists will analyze the structure of cancer-related proteins faster, leading to a better understanding of cancer and enabling design of new cancer-treating drugs.

16 Watso n

17

18 Profile Opened in 1972 Area: 850,000 Sq Ft (clean rooms/ test floors/process areas) Workforce: 2,800 highly qualified employees $ 1.5 billion total investments 1 million units produced weekly $ 650 million annual exports Leadership role for IBM with worldwide mandate for semiconductor assembly and testing

19 Our mission Assembly and electrical testing of the world s most advanced semiconductor components used in the entire IBM product portfolio and in our OEM partners product lines. Wafers Carriers Modules Test Boards Finished products

20 Our clients

21 Our competition IBM - Amkor SPIL ASE StatChicPac

22 Innovation in Recognition Tools and techniques Employee competencies Culture of innovation

23 An IBM example in With Key Performance Indicators (KPIs) on hand and on time every employee becomes a Knowledge Worker Smart Actions add value! Proper Instrumentation reduces operator intervention which improves productivity People Assets Information empowers people! Digitalisation makes tools talk! Data Business Analytics on key process variables and events enables closed-loop on the spot feedback to Improve Quality

24 Challenge: Introduction of the new P7 Module technology in TEST manufacturing Engineers and IT working together, developed a new virtualized IT solution and new manufacturing process. Smart Actions add value! From 60 physical servers to 4 physical servers (virtualization). HPB4 tool capacity increased by new process. People Assets Information empowers people! Digitalisation makes tools talk! Data Data gathered provided the information required to spur innovation and support proof of concept

25 Challenge: Introduction of the new P7 Module technology in TEST manufacturing Engineers and IT working together, developed a new virtualized IT solution and new manufacturing process. Smart Actions add value! Result - Met accelerated schedule -People Savings of $7,5M - Well positioned for the future Assets From 60 physical servers to 4 physical servers (virtualization). HPB4 tool capacity increased by new process. Information empowers people! Digitalisation makes tools talk! Data Data gathered provided all the information required to ignite the innovation and support proof of concept

26 Dynamic operational dashboard HVAC Systems

27 Controls Optimization Logic and set points Cooling plant (chillers and free cooling) Humidification Boilers (pressure modulation) Heating, Ventilation and Air Conditioning (humidification and fresh air make-up) Cooling plant Electrical consumption 2007 to 2008 Before Plot TEMP-HUM:M2: pv 35,99 % HR HVAC:M2-RDC-PLA:VLV-HUM.pv 63,01 % SPECS HUMIDITÉ MINIMUM.Value 30 19% Reduction Savings $ 300K/Yr :00:00 2,50 jours :00:00 Plot-0 After TEMP-HUM:M2: pv 31,92 % HR HVAC:M2-RDC-PLA:VLV-HUM.pv 48,61 % SPECS HUMIDITÉ MINIMUM.Value :00:00 2,50 jours :00:00

28 achievements Energy conservation 18% 20% 12% Water conservation 12% 3% 6%

29 Time to revenue 44 D A Y S Product A Product B Product C

30 Business Unit Improvement Business Unit A Transformation Two year improvement Production capacity + 30% Expenses - 40% Cycle time - 70% Product cost - 33%

31 A Canadian innovation centre in Québec for the packaging of the next generation of microelectronics and microsystems CONFIDENTIEL

32 In summary What drives our innovation cycle Competent, well informed people working in empowered teams Information Technology is a key enabler Recognition primes the pump of a virtuous innovation cycle

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