industry 4.0 selction 1 4.0 the future revolution of...biofertilizer biobased building)blocks...

INDUSTRY)4.0)–The)Future)Revolution)of)Productivity)and)Competitiveness)?

Strategic)Priorities)in)ASEAN)Environments

FTPI)20th)Anniversary)Productivity)Conference)

September,)2nd)2015Dr.)Wolfgang) Baltus)– Advisor PSL,))Precise Corporation

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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PRECISE'Corporation'Co.,'LTD

Precise)Corporation)Co.,)Ltd.)was)established) in)1987,focussing)on)

power)distribution)and)substation)equipment's) trading.

Nowadays,)there)are) totally)21)companies) in)the)group.)Precise)

Corporation)still)sets)its)goal)on)the)continuing)and)sustainable)

development,)aiming)at)introducing)brandSnew)equipment)and)

efficiently) fulfill) customer)expectations.)The)business)is)being)

enlarged) to)the)global)market,)mainly)the)South)East)Asia.

Its)business)mainly)focuses)on)Smart)Grids) system,)Smart)Energy)

Generation)&)Storage)system,)Smart)Building,)House)&)Resorts)

system)and)Biorefinery Products)which)appropriate) for)Southeast)

Asia.

Products'we'are'Producer'&'Distributor

Transformers

LED)Lighting

Lightning)Arresters

Load)Break)Switch

Main)Distribution)Board)(MDB)

Current)Transformer)(CT))&)Voltage)Transformer)()VT)

“Energizing)Prosperity”,)

Building)foundation)that)contributes)industry)&)Community)Stakeholder)towards)a)

sustainable)future)and)prosperous)growth.)

Sustainable)Energy)Systems)))))))

We)are)looking)for)new)possibilities)and)innovative)solutions.

PRECISEVision'&'MissionPrecise is)a)regional)leader)in)sustainable)energy)systems,)plantations)and)

biorefinery

Envision) new)possibilities)for)sustainable)energies

Develop) biorefineries and)plantations

Strategy

Precise is)a)trusted)partner)in)future)electrical)energy)systems,)Bio)refinery)and)smart)

community)sustainable)development)of)the)region)through)multiSbusiness)processes)and)

innovation)management.

Precise)Core)Competencies

Future)Electrical)Energy)System

Smart)Community)Sustainable)Development

Biorefinery

Biomass)Power)plantBiogas)powerplantfrom)MSW&Straw

SBiogas)PowerplantSBiomethaneFactory)in)the)box)for)biorefineryproducts

BiofertilizerBiobasedBuilding)BlocksBiomaterials

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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From)xx4.0)to)Smart)XX

Industry)4.0

Productivity)4.0

Energy)4.0

Farming)4.0

Logistics)4.0

Industrial)Internet)

Internet)of)Things

……..

8/31/15 8

EVOLUTION)OF)INDUSTRY)4.0)

Year

REV

OLU

TION)TYPEIndustrialization

2nd Revolution:Mass)production)(conveyor)belt),)Mobility,)standardization,)precision)manufacturing

3rd RevolutionMicroelectronics,) Computer,)NC,)PLC

Electronic)Automation

Towards)4th RevolutionICT,)Cyber)Physical)Systems)

Smart)Automation

Power)generationManual)manufacturing

1913 1954 20151782

Industry)4.04th revolution

1st RevolutionSteam) Engine,)Quality)of)life,)Engineering) Science,) textile,)steel,) coal) industry

GB US

US,)EU

EU

Based)on)DFKI

EVOLUTION)OF)INNOVATION)

Year

INNOVATIO

N)TYPE

Single)FactorInnovation

Value)Prop:R&D)focussed product)innovation,)separated) from)process) innovation

Value)Prop:Focus)on)core)competencies,Focus)on)innovation)portfolios

Portfolio)Innovation

Value)Prop:Modern)approach,) includes) innovation)in)all)functional)areas,) creating)a) strong)innovation)culture) including)time/space)aspects

Total)Innovation)Management

Copy)&)Modify

1970 1990 20001950

History)of)Industry)4.0

8/31/15 11

• First)initiated) as)a)HighSTech)project)by)the)BMBF)and)first)presented))at)the)Hannover)Fair)2011

• Funded)with)400)Million) Euro)(2014)

Main)Challenges)and)Drivers)in)Industries

Shorter)time)into)Markets• Shorter)innovation)cycles• More)complex)products• Greater)data)volumes

Increased)Flexibility• Individualized)Mass)production• Volatile)markets• High)Productivity

Higher)Efficiency)and)Competitiveness• Energy)and)Resource)Efficiency

8/31/15 12

Internet)of)Data/Services)vs.)Internet)of)Things

8/31/15 13

CENTRAL SERVER

DATA WH,INTERNET

PCBIG DATA, ClOUDS, SMART

DEVICES

iNTERNET OF DATA AND SERVICES

PHYSICAL OBJECTS,

devices etc.

INTEGRATED SYSTEMS

CPSINTERNET OF

THINGS

M2MWIFI

IP capability

Source):)adapted)from)Roland)Berger)Think) Act)Industry) 4.0,)2014

Traditional)factory)towards)factory)4.0

8/31/15 14

Response)to)• global)markets,)

customers,)• quality)standards,)

product)life)cycle)management,)

• shorter)production)set)up)times

• Modular)production,)sensors,)

• location)sensing) in)a)wireless) contextEnhanced)productivity)and)competitiveness

Roland)Berger)Industry)Study)– Think)Act)March)2014)

8/31/15 15

Rise)of)emerging)countries)as))Industry)players

8/31/15 16

Manufacturing)Value)added)1991)EUR)3,451)bn Euro

Africa South)America Asia)excl.)Japan

Russia)and)Eastern)Europe North)America Japan

Western)Europa Other)developed)countries

2011))EUR)6,577)bn)Euro

Africa South)America Asia)excl.)Japan

Russia)and)Eastern)Europe North)America Japan

Western)Europa Other)developed)countries

Source):)adapted)from)Roland)Berger)Think) Act)Industry) 4.0,)2014

Share)of)emerging)economies:)21%)(Asia) :)8%)

Share)of)emerging)economies:)40%)(Asia) :)31%)

GERMAN)OBJECTIVE)INDUSTRY)4.0

• Keep)and)bring)manufacturing)back)to)Germany

• Knowledge)based)High)Technology)Strategy• Keep)of)the)leading)industry)position• Increase)Productivity)and)Efficiency• Technology)Leadership)to)main)leading))competitive)position

• Response)to)changing)global)environments)(labor)costs,)product)life)cycles,)customer)focus,)product)individualization)and)quality)

• Speeds)up)production)setup)processes)by)modular)approaches)and)minimized)complexity

• Needs)to)employ)skilled)workers

• Needs)longSterm)commitment)and)investment• Is)a)disruptive)change)with)widespread)impacts)on)industries)and)societies

• Needs)new)skills• Needs)interdisciplinary)collaboration• Cloud,)Open)Source,)Big)Data)processing)and)analyzing

• Cyber)security

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From)Batch)One)to))increased)Productivity

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0% 20% 40% 60% 80% 100% 120% 140% 160%

Labor

Depreciation

Operating

Logistics

Materials

Overhead

Cost)Expectations)Industry)4.0

Industry)4.0 Today

Expected)productivity)increase)in)next)5S10)years):4%S7%)of)total)costs

• Integrated)manufacturing)and)logistics)process• Flexible) smallSbatch)manufacturing• Automated)consignment)systems

Based)on)BCG)analysis,)April)2015

Where)are)the)potential)Industry)segments)of)Industry)4.0)?

8/31/15 19

Bitcom.org

0

50

100

150

200

250

300

bn)Euro

Six)areas)account)for)1/3)of)total)potential)pf)Euro)267)bn

others

Agriculture

ICT)

Chemicals

Cars

Electronic)Equipment

Mechanical)Engineering)

Adapted)from)Fraunhofer,) Bitkom

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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Factory)of)the)Future

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Cyber Security

Cloud Computing Big Data Resource of

the future

Mass Customization

Internet of Things

CustomersSuppliersSensors

CPS Autonomous

Vehicle3D printing

Additive Manufacturing

Advanced Materials Robots

Logistics 4.0

https://www.youtube.com/watch?v=HPRURtORnis

Source):)adapted)from)Roland)Berger)Think) Act)Industry) 4.0,)2014

Bosch)Factory)4.0

https://youtu.be/GKhSTjraHlU

8/31/15 22

IoT Movie

https://www.youtube.com/watch?v=kYQ_PHOCj

yg

INNOVATION)MOVIE)(option)only)

http://youtu.be/B4ZSGQW0UMI

8/31/15 23

Smart)Factory)KL

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Smart)Factory)KL

8/31/15Dr.)Wolfgang)Baltus))S National) Innovation)

Agency)(NIA),)Bangkok25

Smart)Factory)KL

8/31/15Dr.)Wolfgang)Baltus))S National) Innovation)

Agency)(NIA),)Bangkok26

STEPS)TO)INDUSTRY)4.0

8/31/15 27

OWL)ClustermanagementDec)2014

Effective) IT)systems)require)wellSstructuredbusiness)processes

IT)systems)at)the)end)of)the)process)chain

New)Business)Models)emerge

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• From)Bookstore)to)eSbooks

• From)Yellow)Pages)to)Marketplace)(Platforms)

• From)Record)store)to)Music)Streaming

• From)Taxi)to)Ride)Sharing) (Uber,)GrabTaxi)

• From)Software)to)App)Stores)and)Subscriptions

• From)Hardware)to)Hardware)Apps

FORD)OPEN)XC

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• Control)of)car)sensors

• Development) )of)new)apps)for)instance)for)traffic) information,)weather)updates,)fuel)consumption)etc

Source):Ford

TESLA)S OPEN)SOURCE)TECHNOLOGY

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TeslaIn the digital economy, the winner takes all. What matters is to be at the center of an ecosystem. For this, you need to let others build upon your platform, and reduce transaction costs to nil (this means: no license, or no license fees),” writes one intellectual property expert, who chose to withhold his name. Releasing patents is one way to keep transaction costs down.

We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard. (source: Tesla)

From)Software)App)to)Hardware)App

8/31/15 31

http://www.youtube.com/watch?v=oDAw7vW7H0c

More)than)420)million)clicks) in)few)days

Google)Project)ARA

Source:)Google

OWL)cluster)activities)and)implementations

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Smart)Products

Smart)Factory

Smart)Logistics

Industry)4.0

Source:)OWL)cluster) report,) 2015

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Example:)SMART)GRID)in)Europe

•Intelligent)Sensors)control)the)grid

•2Schannel)communication)system)are)able)to)feed)back)into)the)grid)on)demand

•Intelligent)consumption)meters)are)able)to)control)the)consumption)of)customers

•optimization)of)alternative)energy)inputs

Task)of)companies)toward)Industry)4.0

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• Better)use)of)Data

• Development)of)Skills

• Secure)Access)to)Customers

• Boost)up)Speed)in)IT)and)Innovation

• Enhance)Data)security)

Mc)Kinsey

Readiness)for)Industry)4.0)Roland)Berger)Study

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Thailand)?Source):)Roland)Berger)Think) Act)Industry) 4.0,)2014

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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Global)Industry)4.0)Starting)up

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EUROPE:INDUSRY)4.0

US:INDUSTRIAL)INTERNET)CONSORTIUM

CHINA:MADE) IN)CHINA)2025INTERNET)PLUS

TAIWAN)Productivity)4.0

INDIAINDUSTRY)4.0)“Make) in)India”SKILL)INDIA

JAPANIVI)– The)industrial) value)chain)Initiative Based)on)Linkedin;)

Darren)Halford

Global)Industry)4.0

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Source):)Infosys

Industry)4.0)vs)IIC)(US)

8/31/15 39

Column1 Industry.4.0 IICKey$Authors German$ Government Large$ Multinationals

Key$Stakeholders Government,$ Academia,$ Business Business,$Academia,$ Government

Support$platforms Government$ Industrial$Policy Open$Membership$non$profit$consortium

Sectorial$ focus Industry Manufacturing,$energy,transportation,health$ care,$ utilities,$ cities,$agriculture

Technological$ focus Supply$chain$coordination,$embedded$ systems,$automation,robots Devices,$data$ flows,$predicitve$ analytics,$ industrial$automation

Geographical$ focus Germany global

Corporate$ focus SMEs all$ companies

Optimization$ focus Production$optimization Asset$optimization

Standardization on$agenda Recommendation$ to$standards$organizations

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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TOWARDS)ASEAN)2015Integration)is)the)key

8/31/15 41

• ASEAN 2015 will$see integration of ASEAN$communities:

political, economic$and$socioO cultural.

• Following this scenario, science and technology$including$

INNOVATION$ should be integrated across$ASEAN and beyond.

• Collaboration leads to clusters and integration.

• Innovation.leads.to.sustainable.evolution.of.Science.and.Technology

• A win?win situation.STI)Thailand,)2010

Competitiveness) )in)selected)ASIAN)Countries)2014/2015

• Thailand)looses)his))competitive)advantages)in)the)region)?

• Other)ASEAN)member)countries)are)closing)up.

WEF)Competitiveness)Report)2014/2015

7

21

34 3928

5448

6871

110

5

21

30

3934

54

49

6970

107

3

2429

3236

5449

75

87

110

3

26 27 28

3844

51

59

85

109

2

2126

28

39

46

56

65

75

97

2

2529

28

38

50

59

75

65

85

2

2429

26

37 38

60

70

59

88

81

139

2

20

2831

34

7168

52

95 93

134

0

20

40

60

80

100

120

140

160

Singapore Malaysia China Brunei Thailand Indonesia India Vietnam Philippines Cambodia Laos Myanmar

Rank

2007 2008 2009 2011 2012 2013 2014 2015

INNOVATION HEAT MAP SEA

Analysis)of)factors)in)competitiveness)in)ASEAN)countries)2013

0

1

2

3

4

5

6

7Instititution

Infrastructure

Macroeconomic

Health)and)primary)Education

Higher)Education)and)Training

Goods)market)efficiency

Labor)market)efficiency

Financial)market)development

Technological)Readiness

Market)Size

Business)sophistication

Innovation

ASEAN)Countries)Competitiveness) in)2012/2013

CHINA

Indonesia

Malaysia

Singapore

Thailand

Vietnam

Philippines

WEF)Competitiveness)Report)2013

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WITHOUT CHANGING (IN) MINDS INNOVATION NOT EVOLVEINNOVATION)STARTS)IN)US

LEARN)FROM)THE)EXPERIENCE)OF)OTHERS

CHANGE)MIND

EVOLVE) INOVATION)CULTURE

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Most�world-class� companies are using both modesInnovation)modes

BottomSup)InnovationIdeasStaffSinitiatedEntrepreneur)drivenManagement)Ssupported

TopSDown)Innovation

Vision)fueledManagementSInitiatedAmbitionSdrivenStaffSsupported

Common)driver):Value)creation)for)customer&stakeholder

Main)Enabler:

Innovation)culture Innovation)process

+

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Framework)of)Innovation

Customer)Feedback

Supplier)Feedback

Leadership

Strategy

Knowledge)

People

Processes)incl.

InnovationResults

Customer

New)ProductsNew)ProcessValue)creation

Employees

Organization

IMPACTS

Competitiveness

Economics

Market

Environmental)Footprint

Performance

Innovation)culture

Organization))culture

Innovation)Enabler

Innovation)Process)results

InnovationFeedback

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FROM 4.0 to SMART XXEvolution)of)Industry)4.0

SMART FACTORY 4.0What)can)be)expected?

GLOBAL INDUSTRY 4.0Worldwide)attention

INNOVATION 4.0 and COMPETITIVENESSNecessary)

INTRODUCTION Precise

SummariesThailand)“QuoSVadis”

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Impact)on)Thailand)and)Recommendations

8/31/15 48

• Thailand) might)loose)competitiveness)as)production)hub

• Industries)might)shift)back)to)developed) countries

• Foreign) Investment)might)slow)down

• Introduction)of)Industry)4.0)might)need)a)shift)on)labor) skills)– unemployment) ?

• Impact)on)social)systems)– change)mind)philosophy

• Revamp)of)the)education) system)necessary)S>)vocational) education) and)training

Summary

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• Industry)4.0)will)evolve)to)a)new)revolution

• Industry)4.0)will)have)a)impact)many)areas)from)technology,)value)chain,)workers) to)socioSeconomic) aspects

• Industry)4.0)might)be)“THE)NEXT)BIG)THING”

• Where)Thailand)will)be)positioned)in)future??

THANK)YOU!

Contact:Dr. Wolfgang BaltusSenior Advisor PSL – Precise Corporation

8/31/15 50

wobalt@mac.commobile: +66-87794-165