industry 4.0 and lean; the time is now · lab –why have most firms been slow to adopt i4.0? •at...

Industry 4.0 and Lean; the Time is NOW

Ron Crabtree, CPIM, CIRM, CSCP, MLSSBB, SCOR-P

Michigan Lean Consortium August 2019

1© MetaOps, Inc. 2019

Agenda

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What Industry 4.0 is and is not

Elements of Industry 4.0 most manufacturing firms can leverage

Determining the value proposition of Industry 4.0 in the practice of Lean

Roadmap for Industry 4.0 adoption to enable Lean execution

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Let’s Get to Know One Another

Ranking your knowledge about Industry 4.0 - 1 to 5 scale; “Get from this workshop?”

At your tables…

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– Wikipedia

Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is also sometimes referred to as the fourth industrial revolution.

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Adobe Stock

What is Industry 4.0 – Forbeshttps://www.forbes.com/sites/bernardmarr/2018/09/02/what-is-industry-4-0-heres-a-super-easy-explanation-for-anyone/#1c1331989788

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WHEN COMPUTERS WERE INTRODUCED IN INDUSTRY 3.0, IT

WAS DISRUPTIVE THANKS TO THE

ADDITION OF AN ENTIRELY NEW TECHNOLOGY.

NOW, AND INTO THE FUTURE AS INDUSTRY 4.0 UNFOLDS,

COMPUTERS ARE CONNECTED AND COMMUNICATE WITH

ONE ANOTHER TO ULTIMATELY MAKE DECISIONS WITHOUT

HUMAN INVOLVEMENT.

A COMBINATION OF CYBER-PHYSICAL

SYSTEMS, THE INTERNET OF THINGS

AND THE INTERNET OF SYSTEMS MAKE

INDUSTRY 4.0 POSSIBLE AND THE SMART

FACTORY A REALITY.

What is Industry 4.0 – Automation Alley

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WHAT IS INDUSTRY 4.0?

The fourth industrial revolution: The

convergence of digital and physical technologies

disrupting the manufacturing industry.

Research & Study

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Internet of Things (IOT)

Machine to machine info feeds

Approaching a high level of implementa-tion

ROI potential is dropping

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Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

Big data

‘the application of big data’

Much potential, but still very early

Volume of data is the challenge

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Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

Ubiquitous in Manufacturing

Use will continue to grow

Question –Robotics favor or limit Lean?

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Robotics

Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

Linked to other technologies like Robotics and Big Data = big potential

But, ROI is illusive

Evolving

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Artificial Intelligence (AI)

Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

Applications –Training, Production Workflow, Logistics,

Material Handling, Product Design

Not yet mature or pervasive

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Modeling, Simulation, Visualization & Immersion

Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

3-D Printing to on-site construction

Not novel, not mature

Printer unit shipments to exceed $14.6 B in 2019

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Additive Manufacturing & Advanced Materials

Source: Automation Alley 2019 Technology in Industry Report Industry 4.0: From Vision to Implementation

More Example Applications of I4.0 in Manufacturing

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Integrated Andon/OEE to mobile devices 24 x 7 x 365 to any device, anywhere

Reliability Centered Maintenance; TPM/OEE on steroids –Lean Practitioners take note:

• Failure Modes and Effects Analysis (FMEA), Failure Modes Effects and Criticality Analysis (FMECA), and Condition Based Maintenance (CBM) are steps RCM process

Seamless record-keeping and traceability

More Examples in

Manufacturing

• Mixed Reality

– I.e.; Repair personnel, ‘see inside' the machine that needs repair; 'see through walls' to the cables and pipes to know exactly where to drill or cut“

– Simulate hazardous events for practice and testing

• Real-time monitoring of productivity

• Autonomous Robots

• Horizontal and Vertical System Integration – automated supply chain collaboration

More Examples in Manufacturing

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IoT in the production process

IoT-powered supply chains

Blockchain production in the 3D printing industry

Voice of Customer feedback loops to design, sourcing,

production, fulfilment & service in real time

Digital Supply Chain Network

What it’s NOT

• A replacement for – Lean Six Sigma best

Practices

– Operational Excellence best practices

– Engaging people in a unified vision / strategy

– The mandate to develop human capital

• It is a unique journey for each firm – no ‘formula’ exists

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Lab – Why have most firms been slow to adopt I4.0?

• At your tables – facilitator, scribe, time keeper (2 min.)

• 2 minutes – Identify a ‘case’ company at the table – what they produce (industry)

• 5 minutes – Why is (or was) the firm a slow adopter? – Top 3 reasons

• Scribes report-out: Type of firm – what they produce; Top three reasons for slow adoption

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Determining the value

proposition of Industry

4.0:Taking a

Functional View

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Lab – What is the Value Proposition of I4.0 – Diverse, Cross-Functional View

• At your tables – facilitator, scribe, time keeper (2 min).

• 7 min. - For the Function your group represents at your subject company – what are the top 3 to 5 ways I4.0 can bring value, disruptive potential, differentiation, innovation?

• 5 min. – Which 2 have the biggest potential and how could that be valued? % sales lift, % cost down, % time reduced, % quality improved, impact to human capital, etc.? Be creative!

• Scribes report out table’s findings

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Roadmap for Industry 4.0 adoption to enable Lean

• Automation Alley Executive Report

– Understand

– Plan

– Train

– Implement

– Partner

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Roadmap Lab – “Lean integrating I4.0”

• Facilitator, scribe, time keeper (2 min.)

• Top two disrupter / value driver opportunities for your subject firm:– 3 min. Who needs to understand

these? Why?

– 2 min. Who needs to own the plan (s)?

– 2 min. Who needs to learn new skills?

– 2 min. Partner Opportunities? Who?

• Scribes report-out

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What we covered today; Q & A

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What Industry 4.0 is and is not

Elements of Industry 4.0 most manufacturing firms can leverage

Determining the value proposition of Industry 4.0 in the practice of Lean

Roadmap for Industry 4.0 adoption to enable Lean execution