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How Old is Old Economy? Big Data in Production Industries - an Automotive Use Case

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Page 1: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

How Old is Old Economy?

Big Data in Production Industries - an Automotive Use Case

Page 2: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Agenda

Introduction 4

What is Big Data for us? 8

Automotive Production Use Case 13

23/13/2015

Page 3: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Agenda

Introduction 4

What is Big Data for us? 8

Automotive Production Use Case 13

33/13/2015

Page 4: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Our Name Reflects Our Consulting ApproachWe achieve optimal results for our clients by combining analytical

competence with strategic know-how.

4

A strategist with analytical know

how who acts fact-based and target

oriented.

strategos

Ancient Greek for

„strategist“ – a manager

who applies his knowledge

to act target oriented

thales

von Milet(624 – 546 BC)

Merchant and pioneer of

philosophical science as

well as discoverer of

mathematical relations

3/13/2015

Page 5: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Our USPWe distinguish ourselves from other consulting companies by combining

management consulting with analytical methods.

53/13/2015

Page 6: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Development Production Sales/Logistics CRM/Marketing

How Old is Old Economy?In all parts of the value chain the Big Data potential becomes more and

more important.

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Connected

cars/ M2M

communication

Car sharing

Autonomous

driving

Social Media

Analysis

Predictive

marketing

Real-Time

Decision-

making (RTD)

NBA/NBO in

CRM

Industry 4.0

(Smart

Factories)

Real-time

route

optimization

Crowd-based

pickup and

delivery

Demand

optimized

stock ordering

3/13/2015

Page 7: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Agenda

Introduction 4

What is Big Data for us? 8

Automotive Production Use Case 13

73/13/2015

Page 8: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Volume

What is Big Data?Social media, smart devices, location based systems and sensor data

create a tremendous amount of data.

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More data cross the internet every second than

were stored in the entire internet just 20 years ago.

2.5 Exabytes (2.5 x 106 TB) are created every day.*

* McAfee, A., & Brynjolfsson, E. (2012). Big data: the management revolution. Harvard business review, (90) Tag Cloud:www.olap.com

Velocity

Variety

http://www.domo.com/learn/data-never-sleeps-2

3/13/2015

Page 9: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Big Data in ContextBig Data is associated with different disciplines and technologies.

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Data Mining

Business Analytics

Business Intelligence

Computer Cluster/Parallel Computing

Cloud Computing

Sampling

BIG

DATA

3/13/2015

Page 10: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Challenges in the Practical Use of Big Data

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IT Infrastructure Corporate culture Expertise Legal/Ethical

§§§

Access to data

Connection of

different types of

data

New database

systems required

Computation power

Analysis applications

Costs

Identification of

relevant data

sources

Knowledge in

statistical

methods

Visualization of

results

Fear of the „Black-

Box“

Trust in data

Evidence based

decision making

Data protection

Data superiority

Predictive crime

detection

„Data kraken“

To ensure a successful use of Big Data a holistic project team is required.

Challenges can arise from different areas within and outside the

organization.

3/13/2015

Page 11: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Professionals in Contact with Big Datathaltegos is focused on analytical consulting but has a broad

understanding for IT as well.

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IT InfrastructureBusiness

Understanding

Analysis

Implementation

Computer Scientist:

Transfer statistical algorithms,

requirements, and rule engines

in IT landscape

Data Scientist:

Preparation, statistical

analysis, visualization of

data, new algorithms

Manager/Consultants:

Adaption of results and

optimization of business

processes

IT Department:

Providing the necessary

infrastructure hard- and

software.

3/13/2015

Page 12: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Agenda

Introduction 4

What is Big Data for us? 8

Automotive Production Use Case 13

123/13/2015

Page 13: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Production Use CaseEvaluation of production and assembly quality of the front fender.

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Fender

90% good 65% goodBlack box

3/13/2015

Page 14: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Implementation of a Big Data SolutionSensor data is collected and processed in real time with a hadoop cluster.

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Pressing

Plant

Body in

white

Paint

ShopAssembly

Stage 1

Assembly

Stage 2

Final

Assembly

no data

DWH 1 DWH 2 DWH 3 DWH 4Vehicle data

ok

X

At every stage in the production process the

evaluation of previous measuring stations is available.

Production data

3/13/2015

Page 15: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Descriptive statistics

Implementation of a Big Data SolutionDescriptive statistics as well as explorative analysis can be conducted on

the computer cluster.

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Decision tree modelling helps to

identify critical combinations that lead

to a bad result in the end of the

production process.

Explorative analysis

Real time data visualization helps to

identify urgent problems and gives a

simple and comprehensive overview.

!Results from both parts can be joint to build an early alert system that reduces the

costs of correcting actions.

3/13/2015

Page 16: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Results and Practical ImplicationsThe production use case has proven the potential of a Big Data solution

led to significant improvements.

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Measurement process optimization

• Specific improvements could be identified

• Connection of all relevant data

Constant quality monitoring

• Automated and integrated quality assurance

• Visualization

Quick failure identification

• From trial and error to faster evidence based approach

Improvements in the production process

• Elimination of potential reasons for a failure

3/13/2015

Page 17: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Results and Practical ImplicationsThe production use case has proven the potential of a Big Data solution

led to significant improvements.

17

Measurement process optimization

• Specific improvements could be identified

• Connection of all relevant data

Constant quality monitoring

• Automated and integrated quality assurance

• Visualization

Quick failure identification

• From trial and error to faster evidence based approach

Improvements in the production process

• Elimination of potential reasons for a failure

Side fact:

Significantly less correctly produced cars

during the weeks of a local beer festival.

Causality?

3/13/2015

Page 18: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Our Contact Details

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Dr. Sebastian FuchsPartner | Management Consulting

thaltegos GmbH

Siegfriedstraße 8 • D-80803 München

Phone: +49 (0)89 9549 200 2

Mobile: +49 (0)176 176 178 70

Mail: [email protected]

Dr. Markus KickSenior Consultant | Management Consulting

thaltegos GmbH

Siegfriedstraße 8 • D-80803 München

Phone: +49 (0)89 9549 200 5

Mobile: +49 (0)176 176 178 75

Mail: [email protected]

3/13/2015

Page 19: How Old is Old Economy? - uni-muenchen.de€¦ · Shop Assembly Stage 1 Assembly Stage 2 Final Assembly no data DWH 1 DWH 2 DWH 3 DWH 4 Vehicle data ok X At every stage in the production

Thank you for your attention!