industry 4.0 : digital reinvention in manufacturing industry
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Industry 4.0 Digital Reinvention in Manufacturing Industry
MK Koh, Asia Pacific Electronics Industry
Ethan Chee, Client Manager for Electronics Industry, Singapore January 2016
Our Points of View on Industry 4.0
The Structure Approach and Component Building Blocks
Points of Discussion
1
2
Digital Reinvention Use Cases
2
3
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Several initiatives around the global are aiming to bring Manufacturing Digital Reinvention, creating what is been called
the 4th industrial revolution
� How Germany is dealing with the fusion of the online world and the world of industrial production.
� "Those who are the leaders in the digital domain will take the lead in industrial production."
� Leading the USA industrial sector transformation into a networked, information-driven environment
� Providing an open Smart Manufacturing Platform to support real-time, high value applications.
� Transform China from a manufacturing giant into a world manufacturing power.
� Priorities include improving manufacturing innovation, integrating IT and OT and promoting
Global Manufacturing Initiatives
� Bringing innovation to the manufacturing process in Korea, expanding the use of smart factories
� Developing core technologies related to the Internet of Things, 3-D printing and big data
Innovation in Manufacturing 3.0
� Priorities include improving manufacturing innovation, integrating IT and OT and promoting
service-oriented manufacturing.
� France industrial plan to enable the industrial sector for the next industrial revolution.
� Assist companies in their transformations towards a world where digital is closing the gap between
industry and services.
� UK strategic initiative that aims to revitalize the manufacturing industry.
� Consists of technology and innovation centers that work as gateways to access the best
manufacturing talent and facilities in the country.
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The 4th Industrial Revolution
First
Industrial Revolutionbased on the introduction of mechanical production equipment driven by water and steam power
Third
Industrial Revolutionbased on the use of electronics and IT to further automate production
Second
Industrial Revolutionbased on mass production achieved by division of labor concept and the use of electrical energy
Fourth
Industrial Revolutionbased on the use of cyber-physical systems
From Industry 1.0 to Industry 4.0
Degree of
complexity
Fourth
First mechanical loom,1784
1800 1900 2000
First conveyor belt, Cincinnati slaughterhouse, 1870
First programmable logic controller(PLC) Modicon084,1969
TODAYFirst
Second
Third
http://www.bmbf.de/en/19955.phpIndustry 4.0 web link : 4
Trends towards Industry 4.0 : The objectives and the path
Horizontal integration through Value NetworksThe journey towards Industry 4.0The Primary Goal of Industry 4.0
Key FeaturesPrimary Goals
• Peer to peer eco-system• Meet individual and highly customized demand
• Profitable Lot Size 1• Software defined products
Based OnEnd-to-end engineering through entire Value Chain Vertical integration and networked manufacturingsystems• Cyber-Physical systems
• Internet of Things• Smart Factories
• Smart supply chains• Smart products
Key Features• Real time sense and response
• Predictive and prescriptive analytics• Dynamic business processes • Optimized decision making
Watch the video: https://www.youtube.com/watch?v=GKhSTjraHlU
Whatever the estimation we consider, the potential economic impact is huge… and 70% is in B2B
Factories• Operations optimization, predictive maintenance,
inventory optimization, health and safety1,210 - 3,700
160 - 930Worksites• Operations optimization, equipment maintenance,
health and safety, IoT-enabled R&D
“The economic impact of IoT applications could be
from $3.9 trillion to $11.1 trillion per year in 2025” Home Vehicles Cities Outside
The Industry 4.0 Economic Impact with IoT
� Source: McKinsey Global Institute: The Internet of Things: Mapping the
Value Beyond the Hype
from $3.9 trillion to $11.1 trillion per year in 2025”
“Business-to-Business applications will generate
nearly 70% of potential value enabled by IoT
and the 4th Industrial Revolution”.
9 Settingsgave us a cross-sector view of a total potential impact of $3.9 trillion-11.1 trillion per year in 2025
Home
Chore automation and security
$200B-350B
Vehicles
Autonomous vehicles and condition-based maintenance
$210B-740B
Cities
Public health and transportation
$930B-1.7T
Outside
Logistics and navigation
$560B-850B
Human
Health and fitness
$170B-1.6T
Worksites
Operations optimization health and safety
$160B-930B
Retail environments
Automated checkout
$410B-1.2T
Factories
Operations and equipment optimization
$1.2T-3.7T
Offices
Security and energy
$70B-150B
Autonomous Systems
Internet of Services
Internet of Things
� Ability to connect and manage
devices
� Near real-time data collection
� Insights of what is happening
� New business models
Internet of Things
� New delivery channels and business models
Internet of Services
� Smart and networked products
� Ability to communicate thru the Internet
� Self diagnose / self awareness
Autonomous Systems
The emerging technologies that path the way for Industry 4.0
Technologies enable Industry 4.0 Digital Reinvention
Industry 4.0Industry 4.0
Services
Analytics & Cognitive
Flexible Manufacturing
Things� New business models
� Flexible machines
� 3D printing
� Machine to machine
� Mixed human / robotics
� New standards and protocols
� Vertical and horizontal integration
Flexible Manufacturing
� New delivery channels and business models
� Integrations across value chains
� The API economy
� Embedded in equipments, products and
services
� Predict what may happen
� Prescribe actions for best outcomes
� Self learning
� Communicate in natural language
Analytics & Cognitive
Sources: Acatech: Recommendations for implementing the strategic initiative Industrie 4.0, April 2013;Gartner: Industrie 4.0- The Ten Things the CIO Needs to Know; Deutsche Bank Research: “Upgrading of Germany’s industrial capabilities on the horizon “, April 2014
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Industry 4.0 Digital-Reinvention in manufacturing is set to redefine every participant in the manufacturing
value chain, from R&D, supply chain, and factory operations to marketing, sales, and service
DIGITAL DATAThe growth in data volumes, computational power and the
emergence of analytics and business-intelligence capabilities
CONNECTIVITYInterconnecting the entire value chain via mobile or fixed-
line high-bandwidth telecom networks synchronizes supply chains and shortens both production lead times and
innovation cycles.
Technologies enable Industry 4.0 Digital Reinvention
Mckinsey and Company “Digital manufacturing: The revolution will be virtualized” August 2015 and Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015
AUTOMATIONNew forms of human-machine interaction such as touch
interfaces and augmented-reality systems
DIGITAL CUSTOMER ACCESSThe (mobile) internet gives new intermediaries direct access to customers to whom they can offer full transparency and
new kinds of services with the rise in improvements in transferring digital instructions to the physical world
Four Disruptions/Levers Drive the Digitization of the Manufacturing Sector
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The four levers of digitization are supported by new enablers and propositions. New players from other industries can
leverage innovative business models to acquire a substantial level of value added.
Emerging Initiatives and opportunities ….
C2M : Customer to Manufacturing
C2B : Consumer to Business
F2C : Factory to Consumer
O2O : Online to Offline
Drivers of digitization
Technologies enable Industry 4.0 Digital Reinvention
Source: Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015
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Cloud-based, as a Service
Dynamic / Self Configured Processes
Closed Loop
Cognitive Value Chain /
Human Collaboration
Cloud-based, as a Service
Pre-Defined / Automated Processes
Closed Loop
Human Supervision
On- Premise, Owned
Provide insights
Open Loop
Human Required for Action
IBM Vision & Strategy to realize full potential of Industry 4.0 Digital Reinvention
CPS-1
CPS-2
CPS-n
Watson
CPS-1
CPS-2
CPS-n▲ Specialized Model 1 ▲ Specialized Model 2
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The IBM Industry 4.0 Digital ManufacturingConnecting machines, technology and processes to enable autonomous control and operational insights
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Industry Cloud
Integrated MESConnected EquipmentTransparent Supply Chain
The IBM Industry 4.0 Smart Factory – Overall Approach
INSTRUMENTED
Ability to measure, sense and monitor the
condition of almost everything.
INTERCONNECTED
People, systems and objects can communicate and interact with
each other in entirely new ways.
INTELLIGENT
Respond to changes quickly and accurately, and get better results by predicting
and optimizing for future events.
Smart ManufacturingComprehensive set of capabilities to enable smarter decisions faster
Physical Meets DigitalLinking physical world assets, resources and infrastructure with the digital world of
event processing, business analytics and optimization.
Information Model Standard-Based Standardized Metrics Event Management
Prediction Visibility Collaboration Analytics & Optimization
Smart Manufacturing EnablementOne open channel to all data required to operate assets in real time
Scope: Industry 4.0 is an emerging and on-going roadmap with different target
scope at different phase Phase IINTRA-FACTORY &INTRA-ENTERPRISE Phase IIE2E CONNECTIVITY ACROSS THE VALUE CHAIN Phase IIISOFTWARE DEFINED MANUFACTURING Interconnection of machinery and systems across the factory and across the enterprise, enabling major Interconnection across the entire supply chain leads to further gains in efficiency, productivity and flexibility New business opportunities enabled by globally interconnected cloud of enterprisesEnables profitable lot size 1 P2P Value Network Creation
B2B Value Chain
Integration enabling major productivity gains and increased flexibility/agilityM2M / M2Band flexibilityB2B Enables profitable lot size 1 Amazon of manufacturingP2P
M2B
Intra –
factory /
enterprise
Enterprise Network (Business Floor)
AssetManagement BusinessProcess Product Quality Management IoT Cloud Data PartnersSecurity
AnalyticsPortalWeb AppsI4.0 Platform
Architecture and Building Blocks: Industry 4.0 is an emerging and on-going
roadmap with different target scope at different phase
Business component (e.g. design, demand, supply and etc.) need to be developed as interoperable services in a horizontal integration platform to support a E2E/P2P value networkHorizontal Integration
Realtime Network (Shop Floor)ProductionProcess Control Sensors Data Machine Events Mobile
Capabilities: A portfolio of industry 4.0 capability must be identified and
developed with the roadmap to support the evolving industry 4.0 scope
Business Layer
Smarter Global Operations
End-to-End Supply Chain Collaboration End-to-End Supply Chain Collaboration
Global Decision Support Center Global Decision Support Center Role-Based Portal & Mobile Devices Role-Based Portal & Mobile Devices Smarter Business Insight Smarter Business Insight
Smarter Safety Smarter Safety
Smarter Knowledge Center Smarter Knowledge Center
Smarter
Grid
Smarter
Grid
Condition-Based
Monitoring
Condition-Based
Monitoring
Optimal Material
Design
Optimal Material
Design Supply Chain Sustainability Management Supply Chain Sustainability Management
3D Visualization &
Mobile Testing
3D Visualization &
Mobile Testing
Real-time
Event Monitoring
Real-time
Event Monitoring
Smarter
Procurement
Smarter
Procurement
Predictive Quality
Monitoring
Predictive Quality
Monitoring
Automatic
Failure Analysis
Automatic
Failure Analysis
Cross Operation
Quality Monitoring
Cross Operation
Quality Monitoring
Smarter Operations Smarter Maintenance Smarter Energy Smarter QualitySmarter MESSmarter SCM
/ Logistics
Integrated Planning
(operations, maintenance & energy)
Integrated Planning
(operations, maintenance & energy)
Semantic
Model
Semantic
Model
Metrics and
KPIs
Metrics and
KPIsEvents Capturing Events Capturing
Modeling and
Visualization
Modeling and
Visualization
Foundation Platform ( Integration, Semantic, Analytics)
Real-Time
Data Capturing
Real-Time
Data Capturing
Machine Layer
MRO Inventory
Optimization
MRO Inventory
Optimization
Inventory
Optimization
Inventory
Optimization
Energy Peak
Management
Energy Peak
Management Optimal Plant
Design
Optimal Plant
Design
Load Design &
Ship Scheduling
Load Design &
Ship Scheduling
Smarter Decision
Platform
Smarter Decision
Platform DeepQADeepQA
Smarter Enterprise
Business Models
Smarter Enterprise
Business Models
Smarter Analytics and
Optimization
Smarter Analytics and
Optimization
Geospatial / Mobile
Technology
Geospatial / Mobile
Technology
Quality / Equipment
Correlation
Quality / Equipment
Correlation
Data Stream
Technology
Data Stream
Technology
Value Next Work Integration
Value Chain Integration
Top Floor (Business) Control
Three dimensions to assess Industry 4.0 framework and roadmap
P2P Value Network Creation
B2B Value Chain
Integration
Scope Architecture Capabilities
Customized
Demand
Customized
Demand
Dynamic
Pricing
Dynamic
Pricing
Supply Chain
Integration
Supply Chain
Integration
Product
Tracibility
Product
Tracibility
Real Time
Inventory
Real Time
Inventory
P2P Design
Collaboration
P2P Design
CollaborationLot size =1 Lot size =1
Optimized
Supply
Network
Optimized
Supply
Network
C2M
Platform
C2M
PlatformSmarter
Logistics
Smarter
Logistics
Top Floor (Business) Control
Analytics & Optimization
Shop Floor (Production) Control
Device / Machine
Integration
M2B
Intra –
factory /
enterprise
Semantic
Model
Semantic
Model
Events
Capturing
Events
Capturing
Modeling and
Visualization
Modeling and
Visualization
M2M
Connectivity
M2M
Connectivity
Long Range Signal&
Control
Long Range Signal&
Control
Real Time
Monitoring
Real Time
Monitoring
Dynamic
Routing
Dynamic
Routing
Dynamic
Scheduling
Dynamic
Scheduling
Real-Time
Data Capturing
Real-Time
Data Capturing
Predictive
Analysis &
Optimization
Predictive
Analysis &
Optimization
Shop Floor
Mobility
Shop Floor
Mobility
Real Time
Enterprise
Real Time
EnterpriseBusiness InsightBusiness Insight
Prescriptive Planning
& Simulation
Prescriptive Planning
& Simulation
• Continuous and Digital Lifecycle
Engineering
• Adaptive Logistics
• Dynamic and Real-Time
Production Planning and
Scheduling
• Virtual Factory
• Globally integrated
supply chain
• Augmented Reality
supporting Field Service,
Asset Maintenance
• Integrated Field Service
• Integrated Factory Floor
• Dynamic Planning
• Cognitive analytics for
supply chain, procurement
and inventory optimization
• Cognitive analytics for Field
Service
• Shift from products to
services
• Software enabled
products
P2P Value Network Creation
B2B Value Chain
Integration
Creating value opportunities through servicesi.e. Hosting an after service application (or providing feedback to engineering ) on the Cloud using data from the products
Personalized, local production and mass customization
Design for Manufacturing –
Phase 1
Integrate the Supply Chain –
Phase 2
Orchestrate the Value Chain –
Phase 3
Mobile Cognitive New Businesses and Services
Deliver insight through Cyber-Physical systemsScope
• M2M Connectivity
• Sensor Networks
• Production Data Collection
• Automation Control (PLC)
• Shop Floor Integration of
many data sources and
equipment Databases,
Sensors, OPC (DA, HDA,
UA), struct/unstruc data.
• Cloud Integration
• Business Integration (Shop
Floor - MES - ERP)
• Advanced Analytics to
optimize Quality, Yield,
Equipment, Efficiency,
Energy
• Predictive Systems for
Maintenance, Dynamic
Factory Planning
Engineering
• EDA integrated into Manufacturing
• Digital Twin
Scheduling
• One-piece flow (Lot size 1)
• Intelligent Quality and
Warranty Management
supply chain
• Transparent Supplier
Collaboration
M2B
Intra –factory
/ enterprise
Optimization
INSTRUMENTED INTERCONNECTED INTELLIGENT
Dynamic business and engineering processes enabling last-minute changes to production i.e. ERP and PLC integration by SOA
mass customization i.e. Lot 1 with Industrial Automation by adapting IoT
Build the Platform – Phase 1 Integrate the Factory – Phase 2 Optimize the Factory – Phase 3
IBM Partners
Existing Factory Focus
Common Use Case: Asset Health (1 of 3)
CPS Asset Health
Real-time Data Exchange Real-time Data Exchange
INSIGHTS
� Sub-assembly / component lifetime wear indicators
� Leading failure indicators
� Engine alerts
� Overload / over speed alerts
Equipment (sensor) time-series
� Vibrations, temperature, pressure, "speed"
variables (rotational, translational, …), etc.
� Positional and/or motion data
� Event data – e.g., when an accelerator is
triggered; when gear is shifted
� "Alerts" (thresholds breached, etc.)
Maintenance Data / Historical Data
� Basic asset info (locations, model, age, etc.)
� Maintenance-related outcomes Repair history
� Preventive & Unscheduled
� Fluid analysis
� Inspection reports
Common Use Cases: Production Optimization (3 of 3)
CPS Asset Health
INSIGHTS
� Sub-assembly / component lifetime wear indicators
� Leading failure indicators
� Engine alerts
� Overload / over speed alerts
� Permit to work
� Use of safety equipment
� Unsafe condition of equipment
� Fatigue
� Alertness
� Fall / Injury
� Production real-time status
� Equipment utilization
� Best time to perform maintenanceCPS Worker
CPS Production Optimization
Orders
� Customer
� Order quantity, price, due date
� Production routing
� Best time to perform maintenance
� Worker productivity
Worker equipped with wearables
Production data
� Production status
� Inventory (WIP, FG..)
� Equipment status
� Workstation status…
Real-timeData Exchange
Real-timeData Exchange
Real-timeData Exchange
The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases
Connected Sales & Connected OperationsConnected ProductsConnected Sales & Marketing
Connected Products
� Customer Insights and Opportunities
� Flexible Billing and Pricing Models
� New Value Added Services
� Connected Product Usage Analysis
� Connected Product Quality Analysis
� Connected Software Management
� Asset and Materials Tracking
� Connected Operations Intelligence
� Unified Key Performance Indicators
� Real-Time Asset Health Monitoring
� Operation Management Improvement
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The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases
Connected CustomersConnected Services Connected Information Connected CustomersConnected Services & Support
Connected Information & Operation Technology
� Monitoring and Diagnostics
� Remote Services
� Automated Service Execution
� Condition-based Predictive Maintenance
� Connected Service Parts Planning
� Warranty Cost Management
� Usage and Performance Dashboard
� Customer Self-Service
� Product Personalization
� Flexible Product and Asset Connectivity
� Identify and Security Management
� Scalable IoT Operation Management
� Seemless IoT Data Integration
� Automated Analytics and Actions
� Rapid IoT Application Development22
To help choose the right data set, technology etc., manufacturing leaders can use a “digital compass”. Cross-functional
discussions that will help companies find the levers that are best suited to solve their particular problems.
The ‘digital compass’ helps companies find tools to match their needs.
“Digital Compass” – Guideline for Industry 4.0 Digital Reinvention
The compass consists of eight
basic value drivers and 26
practical Industry 4.0 levers.
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The Steps Ahead?
1. 2. 3.Explore unique industry requirements. Collaborate with
Industry and Technology player to
identify your business priorities and
challenges.
Identify opportunities for innovation and growth. Determine where best to deliver
business process and technology
improvements and innovation.
Develop a road map and partnership model.Leverage productivity and innovation
enhancements to accelerate
measurable business outcomes
that support your strategy.
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