it fiction meets shop floor reality - piie.orgpiie.org/icpr23/downloads/04 bauer.pdf · processes...

© Fraunhofer IAO, IAT Universität Stuttgart

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IT Fiction Meets Shop Floor RealityIndustry 4.0 – an Economy based on the Internet of Things

Prof. Dr.-Ing. Wilhelm BauerFraunhofer Institute for Industrial Engineering IAO, Stuttgart, Germany


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Fraunhofer IAO and University of Stuttgart IATApplied and basic research for our customers´ benefit

Director: Prof. Dr.-Ing. Wilhelm Bauer

Budget: 34.3 million eurostherefrom 35% are generatedfrom industry contracts

Staff: 560 employees

Departments:

Corporate development and work design

Service and human resource management

Engineering systems

Information and communication technology

Technology and innovation management

Mobility and urban systems engineering

www.iao.fraunhofer.de www.iat.uni-stuttgart.de

Data from 2014, including IAT, University of Stuttgart


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Business Models 4.0 Human-Mach.-Interaction

Research topics of IAO and IAT

Knowledge Work 4.0

Industry 4.0

Smart Services City of the Future

Mobility Innovations

Smart Data Systems

Technology and Innovation Management Change Management


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AGENDA

Digitalization and Industry 4.0

Industry 4.0 in Manufacturing

Today‘s Shop Floor Reality

Ways to the Data Age in Manufacturing


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AGENDA






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First weaving loom 1784

1. Industrial RevolutionMechanical production with water and steam power

2. Industrial RevolutionWork-sharing mass production with electrical power

Ford assembly lineBeginning 20th century

Firstprogrammable controller»Modicon 084« 1969

3. Industrial RevolutionElectronics and IT for automation of production

4. Industrial RevolutionBasis: Cyber-Physical Systems

End of 18th century Beginning 20th century Beginning 1970 today

Co

mp

lexi

ty

»Smart Factory«

Towards an Industry 4.0Cooperation within social networks

Work instruction workers’ participation cooperation

Resources based on prediction consumption order related

Processes starr flexible adaptive in real-time


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Industry 4.0Cyber-physical systems


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Video Industry 4.0 (1)https://www.youtube.com/watch?v=HPRURtORnis


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Towards smarter businessCompanies realise the need to change their business models

How strong will yourbusiness model

change by 2020?(Answers »fundamental« respectively »strong«)

60 %50 %34 %28 %28 %20 %20 % 34 %

IT undElektronik

GesamtHandelAuto-mobilAuto-mobile

Finance/Insurance

Transport/Logistics

Trade Overall IT/Electronics

Energy Telecommunication/Media

Source: KPMG-Study Survival of the smartest, 2014; % (n = 350)


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Economy 4.0Big chances – lots of work to be done

Source: IHK-Unternehmensbarometer zur Digitalisierung, Januar 2015; Basis: Umfrage vom 27. November bis 4. Dezember 2014; N = 1.849 Unternehmen

Digital change is encompassing German economy in total

74% are expecting an expansion of innovation activitiesin order to fully exploit the possibilities of digitalization

How do companies estimate thestatus of digitalization in total? (%)

Is the increasing digitalization influencingbusiness and working processes in your company?

All industries

Production

Trade

Construction

Information/Communication

Finance

Other services

Transportation

Hotel and restaurant industry

1 – digitally low developed 6 – digitally complete developed

All industries

Production Services

Construction Trade

Yes

No


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Risks for the old economyNew digital competitors are challenging the traditional industries

European industry

today

New competitors

Potential loss of valuecreation volume1

2Potential loss ofcustomercontact points

Pressure to Europeanvalue propostition

Share of value creation

Val

ue

crea

tio

np

rop

osi

tio

n


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Risk volume for loosing value propositionsEurope‘s risk potential is enormous

2015

Gro

th o

fIC

T p

ote

nti

al in

GV

A

2025

Transformation related loss of GVA in Europe

Medtech, Elektro, Machinery, Energy

215 bn EUR GVA

Chemistry, Aero,Space

40 bn EUR GVA

Automotive, Logistics

350 bn EUR GVAWav

e 1

Wav

e 2

Wav

e 3

+ 17%

+ 10%

+ 5%

Disruptive to high impact

High to medium impact

Evolutionary to low impact

Δ ICT-share from 2015to 2025

Potential loss until2025

By missing the digital transformation Europe‘s lossof gross value added of605 bn Euro is possible

Source: BDI / Roland Berger, 2015


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From value chains to value networksAutomotive industries as an example

Supplier A Supplier B Customer Supplies parts Integrates components Uses productscomponents, modules Controls customer contact

Demands components Effects market needs

From rigid value chains…

… to dynamic value network structures

OEM

Customer

ICT Platform

Supplier A

Mobility services

Balancing market demands

Delivers data/services

Provides services

Delivers production techn.

Supplier B

Supplier C


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Data based

routing

Drones

Autonom. vehicles

Fourth-

party

logistics

E-Commerce

Remote maintenance

Data products

Smart Factory

Predictivemaintenance

Demandsprediction

Wearables

Robotics

Additive manufac-

turing

Socialnetworks

Mobile Internet/

Apps

Broad-band

Cloud Compu-

ting

IOT

Big Data

DigitalTrans-

formation

Driving forces of the digital transformation processFour control levers, enablers and propositions

Enabler

Propositions


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How to deal with digitalisation

»We need to significantly increase the speed of our actions. The digitalisationmust be a top issue in Germany and Europe. The Revolution itself out faster than many actors in politics and economics wanted to admit it.«

»German Chancellor Merkel reinforcingthe need of intelligent usage of »Big Data« and Industry 4.0: Take chances –avoid risks!«

Günther OettingerEU-Commissioner forDigital Economy andSociety

Angela MerkelChancellor of Germany


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Innovative Working

Environments

Healthy Living

Intelligent Mobility

Digital Economy and

Society

SustainableEconomy and

Energy

CivilSecurity

Industry 4.0 Smart data

Digital interconnectedness

Combating wiedespread disease Individualised medicine

Energy research Assurance of raw

material supply City of the future

Work in a digitalworld

Services Skills

Traffic infrastructures Mobility concepts Automotive technologies Aerospace, maritime

Civil security research Cyber-security IT-security Reliable identities

The new German »Hightech Strategy«


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I. Digital infrastructures

II. Digital economy und digital work

III. Innovative nation

IV. Digital living environments in society

V. Education, research, science, culture and media

VI. Security, prevention and trust for society and economy

VII. European and international dimension of digital agenda

German »Digital Agenda«Fields of action

Source: Federal Ministry of Economy and Energy, 2014; Resolution of the Federal Cabinet (20.8.2014)


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AGENDA






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Economic potentials of Industry 4.0 Increase of gross value added from 15 % to 30 % until 2025 possible

Potentials ofbusiness modelsnot consideredsufficiently yet

Conservativeestimation

Core industrieswith highestleverage

Industrial sectors Gross value added[Bill. €]

PotentialsIndustry 4.0

Increaseper annum

Increase[Bill. €]

Chemical industry

Automobile andcomponents

Machine andplant construction

Electrical equipment

Agriculture and forestry

ICT

Potentials of the 6 chosensectors

Examplary projectionfor gross value addedin Germany

Source: BITKOM / Fraunhofer IAO, 2014


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Dual strategy for Industry 4.0Germany as leading market and leading supplier

Objective: Increase in process efficiency by implementation of IoT use cases

Objective: Realization of new market opportunities by innovative business models

Trigger: Internet of Things (IoT, CPS) Trigger: Internet of Services

Today main emphasis is placed on process efficiency –competition of best business models is just starting.

Germany as leading market Germany as leading supplier

»Appification«

Control Engineering

Mobile Robotics

Mobile Internet

Automation

Embeddeds

Degree of maturity

[Accenture, 2014]

Sources: itizzimo, DFKI, Kuka, kiva, DHL, Uber, GE


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Vision #1:Cyber-Physical Systems and IoT

Expectations: significant decrease in planning processes over the life cycle, data acquisition and data processing.

Cyber-Physical Systems

via IP addresses connected objects with embedded hardware and software that interact with their environment

Objects that consist of their real and virtual representation and keep them up-to-date in real-time over their entire lifetime.

Internet of Things (IoT)

The Internet of Things is the technical vision, to integrate objects of any kind into a universal digital network. The objects have a unique identity (smart objects) and are / move in a 'smart' environment.”

[Federal Ministry of Economics and Technology 2007]


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Vision #2:Self-Organization and Autonomous Objects

Expectations: significant decrease in scheduling andcontrol and better use of existing capacities.

Product that organizes, finds and makes its way through the supply chain


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Video: Self-Organization and Autonomous Objectshttps://www.youtube.com/watch?v=dDsmbwOrHJs


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Video: Self-Organization and Autonomous Objectshttps://www.youtube.com/watch?v=dDsmbwOrHJs


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Vision #3:Big and Smart Data

Expectations: significant decrease in interaction, clarification and escalation processes, better process knowledge and new business models.

Big Data

Real-time processing of large unstructured data offers new interrelations for process and product improvement

Real-Time data processing and process transparency can be used to make better decisions than today


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Vision #4:Real-Time Data Integration over Value Chains

Expectations: real-time traceability and manipulation; novel business opportunities and models.

Picture: acatech, 2013


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Vision #5: Significant added value expected

High expectations regarding efficiency gains by industry 4.0 –within own processes and across the value chain.

Source: Ingenics AG/Fraunhofer IAO (2015): Industry 4.0 – A revolution in work organization


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AGENDA






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Industry 4.0 has to be worked out

Only 29% of enterprises have implemented Industry 4.0 as strategic initiative.

Only 6% of enterprises consider their Industry 4.0-preparations as very high.

Industry 4.0 has to be worked out –it is penetrating enterprises top-down.

Source: Ingenics AG / Fraunhofer IAO (2015): Industry 4.0 – A Revolution in work organization


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Industry 4.0 readiness in German SMEs

Source: Fraunhofer/agiplan, 2015


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Example: Assistency system


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Example: Manufacturing


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Physical assistance with human-robot-collaborationRobots are leaving their cages

Source: Volkswagen AG. 2015


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Example: Volkswagen body-shop situationEqual amount of humans and robots

HumansRobots

from productdecoupled/indirect work

primarilymanual work



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Example: Cost in German automotive industries 2014Robots costs 10% of human workforce

Humans Robots

EUR/h


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Example: Age pattern of employees at Volkswagen 2014Babyboomers (apx. 30%) are leaving the company in next 20 years



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Better working conditionsExample: Activity-based Lighting

Intensity, colour and direction of lighting are triggered due to context information

RFID cards load individual employees‘ lighting profile

RFID chip records presence of assembly dolly and triggers lighting of work station

Photo sensor records removal of last assembly part and triggers new lighting setting (spots for visual testing)

Work Tasks: Visual TestingPosition: Only Work Station 2 lighted

Individual and Shift Parameters:

- Older colleague working morning shift

- Younger colleague working night shift


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Example: Good Work in the Volkswagen factory 4.0

Workstyle design options

1. Workplace design/human factors design

2. Work organizationand technique

3. Qualification andtraining

Replace non-ergonomicjob types

Priorizing smart automation

Enhancing EAWS withpsychical stress factors

Qualification supportingwork organizations

Decision supportingtechnology

Easy-to-use technologiesand work systems

Dual education systemand training

Mechatronics and ICT-specialists

Technicians and engineers



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Self-organizationExample: Self-organized human-ressource allocation


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Customer order: 50 gearboxesuntil Monday

I can work thisSaturday

I am not available thisSaturday

Extra-shift thisSaturday

Capacity request

»Cockpit« für for capacity requests

Rules Enginewho is able to, who is allowed to, who should, whowants to work

Self-organizationExample: Self-organized Human-Ressource Allocation


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AGENDA






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Implementation stepsand applications today

INFORMATION

INTERACTION

INTELLIGENCECurrent, reliable status and

position information in (near) real time

Connectivity and interaction of humans,

machines and objects with each other and its

environment

Autonomous decision making of (artificial)

intelligence without outside interference (by humans) as

vision1

2

3

Context-Based work instructions

Collaborative (light-weight) robots

Value Stream Vizualization

E-Kanban, Twitter-Shelf

Dynamic workplaces

Condition Monitoring, Predictive Maintenance

Smart-Pick with DataGlasses

Self-organized capacity flexibility

???Machine Learning

Artificial Intelligence ???

Plug & Produce automation

Continuous Data Transparency

Digital Shop Floor Management

…

…


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Software beats Hardware

Platforms control everything

It’s all about data

Transformation path to a data age in manufacturing

INFORMATION

INTERACTION

INTELLIGENCECurrent, reliable

status and position information in (near) real time

Connectivity and interaction of

humans, machines and objects with

each other and its environment

Autonomous decision making of

(artificial) intelligence

without outside interference (by

humans) as vision1

2

3

Initial Situation of most companies (especially SMEs)

LEAN AND PROCESS Organization


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1. The digitalization of industrial value creation is already on the way and will penetrate work and life further on.

2. Industry 4.0 raises high expectations. The public perception of the topic has gone beyond real solutions and implementations.

3. Industry 4.0 is penetrating enterprises top-down and bottom-up.

4. There will be significant impacts on work, work organization and qualification.

5. Intransparent economic benefits and organizational obstacles prevent a widespread realization of good practices (at least today…).

Industry 4.0 revisited

Industry 4.0 will be the future of manufacturing.But probably it will look quite differently than expected today.


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Industry 4.0 @ Fraunhofer IAO

Surveys

Research

Implementation


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Prof. Dr.-Ing. Wilhelm BauerFraunhofer IAONobelstraße 1270569 Stuttgart

Tel: +49 711 970-2090Fax: +49 711 [email protected]

http://www.iao.fraunhofer.de

Contact

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