1 International Data Corporation. Worldwide Semiannual Internet of Things Spending Guide. January, 2017.2 Ibid.3 Manufacturing Execution System (MES)

Manufacturing made the largest

IoT investments in 2016, according

to a recent IDC report, spending

US$178 billion total.1

"Manufacturing operations" was

the IoT use case that saw the

largest investment in 2016 across

all industries, at US$102.5 billion, according to IDC.2

Real-time visualization of shop floor data to identify production bottlenecks

Single data lake to aggregate disparate organizational technology (OT) and IT data

Plant manager implements optimal schedule to MES3 for desired quantity and quality of finished goods

Statistical modeling provides best options for optimal scheduling

Optimize Production and Order Scheduling

React quickly to fluctuating demand.

Allocate resources optimally.

Supply value-added products to meet customer requirements.

Challenges Dynamic Schedule Optimization for Manufacturing Outcomes

HITACHI is a trademark or registered trademark of Hitachi, Ltd. All other trademarks, service marks, and company names are properties of their respective owners.UC-003 April 2017

14%

Solutions

Reduce inventory costs by 14%.

Cut production lead time by 50%.

Minimize overall costs by 30%.

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50%

30%

Lumada Rises to the Challenge

Detects production bottlenecks and improves asset utilization.

Offers factory operations visualization.

Optimizes production scheduling.

Increases on-time delivery and operational efficiency.

Lumada Tackles the Biggest Manufacturing Floor Issues With Dynamic Scheduling and OptimizationOptimize Production and Increase Operational Efficiency With Advanced Analytics and Artificial Intelligence Industrial Internet of Things (IIoT)

The Possibilities With Lumada Are Endless

Solutions

A global manufacturer wanted a solution to improve its production process and help it achieve:

Accurate, on-time delivery for all orders, including express requests that appear unexpectedly.

Improved performance of complex production environments through IT and OT integration.

An innovative production optimization solution that:

Provides best-practice visualization and analytics tools to identify the root cause of bottlenecks and predict their direct impacts.

Optimizes production schedules proactively, based on learned production models.

Delivers insight into the shop floor in real time, based on manufacturing expertise.

Implements countermeasures as process delays occur.

This IoT solution:

Provides multivariate analysis of production parameters for optimal order scheduling.

Manages the entire production flow while also monitoring health of the plant’s industrial assets.

Uses machine learning to adjust the optimal route and velocity in the production process, achieving the desired quantity and quality of finished goods.

Reduces incidents using real-time analysis, active notification and visualization tools.

Since implementing the solution, the manufacturer:

Reduced inventory of industrialcontrol panels by 14%.

Reduced overall costs by 30% byapplying advanced analytics andmachine learning to sensor andcamera data.

Shortened lead time of majorproducts by 50% through optimalproduction plan generation andresource allocation in factorysimulations.

Challenges Solutions Features Outcomes

1 McKinsey Global Institute Analysis: IoT mapping the value beyond the hype

2 McKinsey Global Institute Analysis: Industrie 4.0: How to navigate digitization of the manufacturing sector

3 BCG: Winning in IoT – It’s all about the business process

IoT applications in factory settings have the potential to create

US$1.2 trillion to US$3.7 trillionin value per year in 2025.1

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A big data, advanced analytics approach can result in a

20% to 25%increase in production volume, and a 45% reduction in downtime.2

Three industries will account for approximately

50% of IoT spending: discrete manufacturing, transportation and logistics, and utilities.3

Global Manufacturer Minimizes Bottlenecks in the Production ProcessLumada Helps Leading Manufacturer Reduce Inventory and Cut Costs

Industrial Internet of Things (IIoT)