industry 4.0 and its impact on the industrial sector · by: michael versace. 3 pwc 2016 global...
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Industry 4.0 and its impact on
the Industrial Sector
Mark R. BeckmannDirector, Manufacturing Industry SolutionsMicrosoft Worldwide Manufacturing & Resources
Digitalization has sparked a 4th Industrial Revolution
Steam, water,
mechanical equipment
Electricity, division of
labor, mass production
Electronics, IT,
automation
Blurring the physical
and digital divide
1780s 1870s 1970s 2015+
Modern manufacturers are embracing customer centricity,
innovating faster, and becoming more agile
Production
R&D
Supply
Marketing
Sales
Services
End-to-end innovation
• Mixed reality visualizations
• Cognitive services
• Humans and device collaboration
Connected IoT services
• Unified physical and virtual data
• Rapid feedback across design,
manufacturing, and operations
Information mirroring* model
• Powerful modeling and analysis
• R&D and engineering focus
Simulation and 3D printing
• Digital design, virtual
assembly, and simulation
• 3D printing mainstream
2017
*Dr. Michael
Grieves and
John Vickers –
University of
Michigan
Industry 4.0: Digital Twin
Cognitive
ServicesIoT, Analytics,
and CRM
Devices | Augmented
Reality
3D Printing
Facilitation
Big Compute
‟ This is how we take the global expertise that we have
available somewhere in Tetra Pak and bring it to the
fingertips of the engineer in the countryside in Chile or
Pakistan.”
- Johan Nilsson, Vice President of Tetra Pak Services
48%manufacturers are
ready for new forms of
human-machine
interaction5
40%of operational
processes will be self-
healing and self-
learning by 20222
70%of manufacturers will
put operations at the
forefront of digital
transformation projects
by 20201
Industry 4.0 Digital transformation: Imperative
30%revenue
Only 4% of digital first movers that integrate
vertically, horizontally and with Customers; while
the average company improves 2.9% and 3.6%
p.a.3
Industry 4.0 Digital First Movers
simultaneously achieve new
revenue and cost reduction
30%Operational cost
Mastering digital
up to 15% revenue
increase and
simultaneous reduction
in cost to serve of more
than 20%4
This infographic is based on Microsoft analysis of third-party data. Sources include: 1. IDC FutureScape: Worldwide Operations Technology 2017 Predictions Jan 2017 Doc # US42261017 Web Conference By: Lorenzo Veronesi, Marc Van Herreweghe. 2. IDC FutureScape: Worldwide Digital Transformation 2017 Predictions Jan 2017 Doc # US42259317 Web Conference
By: Michael Versace. 3 PWC 2016 Global Industry 4.0 Survey; Dr. Reinhard Geissbauer, Jesper Vedso and Stefan Schrauf. 4. McKinsey&Company Mastering the digital advantage in transforming customer experience, May 2017; Oliver Ehrlich, Harald Fanderl and Christian Habrich. 5. Cornelius Baur et al. Manufacturing’s Next Act, McKinsey, June 1, 2015 6. Accenture
Strategy Digital Factory Cracking the code to success Russ Rasmus and Jason Nichols, 2016
Forces driving digital transformation in manufacturing
Industry 4.0: vertical and horizontal integration | end-to-end engineering
Digital Twin: virtual representation of a product, process or service
•
•
•
•
•
Design/Engineering
Supply Chain
Manufacturing
Connected Services
Sales and ServicePlanningDigital
Platform
Manufacturing
Distributer Retailer
Logistic
Customer
Design
Assembly Package
Mixed Reality
Advanced Analytics
BlockchainIoT & Edge Graph Technology
3D PrintingDigital Workplace
AI & Cognitive
Big Data
• Processing of raw Seismic data
• Bulk upload of Seismic data in Cloud
• Use in-house or commercial
applications to process Seismic data
in Cloud
• High-Performance Compute Power
Seismic Processing Reservoir Simulations Remote Visualization and AI
• Accelerate onboarding and
knowledge
• Create more accurate reservoir
models, optimize drilling and identify
risks
• Evaluate production data to update
models
• Optimize equipment and enable
predictive maintenance
• For development of new oil field
• Simulation helps predict oil
production and productivity
• Use commercial tools like Nexus or
Intersect to run Reservoir
simulation in the Cloud
Manufacturing and Supply ChainEmpowering employees with easy-to-glean data
Challenge Shorter product lifecycles
Virtualized and distributed supply network
Aging processes and systems that were near end-of-life
Solution Cloud to connect, automate, and visualize an end-to-
end view of business
Benefits Yield improved by 30%
Reduced scrap by $2M (Predictable Insights)
Increased employee collaboration and engagement
Collection and analysis of billions of unique data points
each day This digital transformation will allow us to spend more of our time
on the complex problems and let the computers take care of the
easy problems. It's making us smarter, faster, more collaborative,
and connected.
— Jerry Knoben
CVP Manufacturing
The Hershey Company Improving accuracy and efficiency with autonomous machinery
If you take the difference there – you’re talking
about saving tons of licorice.”
— Greg Lenhart III, Sr. Manager IS Disruptive Solutions and IoT,
The Hershey Company
‟
Watch
Ecolab solves global water challenges with cloud technologies
It’s really a ‘virtuous cycle’ with less water,
better results, and much lower operating
costs. Because, ultimately, our customers
want to be good corporate citizens.”
— Christophe Beck, Nalco Water,an Ecolab company President
‟
Watch
Sandvik Coromantcombines human anddigital intelligence
What sets us apart is our deep knowledge of the
machining process and our ability to translate that
knowledge into the algorithms used to analyze
the data.
— Mats Lindebland
Global Product Manager, Sandvik Coromant
Tetra PakTransforming maintenance with predictive analytics
and mixed reality
Challenge Tetra Pak wanted to avert costly breakdowns, while
being able to make repairs quickly at remote factories
Solution Tetra Pak transformed production lines with
cloud-connected predictive analytics and powerful
mixed reality (MR) headsets to prevent breakdowns and
fix equipment with remote experts
Benefits Analysis of data patterns saved Tetra Pak more than
$30,000 by predicting and preventing future
breakdowns. Remote guidance via MR headsets reduced
repair timesThis is how we take the global expertise that we have available
somewhere in Tetra Pak and bring it to the fingertips of the
engineer in the countryside in Chile or Pakistan.
— Johan Nilsson
Vice President, Tetra Pak Services
GLOBAL
OPERATIONS
Demand Forecasting
AI system accurately
predict future demand
for products by
learning from patterns
in demand and
environmental data
Guided Service
Workflow
Design
MANUFACTURING PLANT
CobotsRobots use image recognition to
automatically adapt to the changing
location
Factory Assistance
Virtual agents verbally provide operators
with information from IT systems upon
request
GLOBAL FACILITY INSIGHT
Predictive Maintenance
THIRD-PARTY LOGISTICS
Autonomous Vehicles/Robots
AI system dynamically optimize warehouse
utilization
CUSTOMER SITE
Smart Systems
Transmit information to the partner
process automation and optimization.
Industry 4.0 | AI Factory of the Future
Predictive & Cognitive Quality
AI systems detect quality defects
through image recognition and
other parameters
Integrated track &
trace
Product Traceability
AI systems allow end to end
tracking and monitor conditions
during transport and storage
Application: Cow-Shed Monitor
14
Cognitive
ServicesIoT, Analytics,
and Business
Applications
Devices | Augmented
Reality
3D Printing
Facilitation
Big ComputeCloud
