industry 4.0 : digital reinvention in manufacturing industry

Industry 4.0 Digital Reinvention in Manufacturing Industry

MK Koh, Asia Pacific Electronics Industry

Ethan Chee, Client Manager for Electronics Industry, Singapore January 2016

Our Points of View on Industry 4.0

The Structure Approach and Component Building Blocks

Points of Discussion

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Digital Reinvention Use Cases

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3

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Several initiatives around the global are aiming to bring Manufacturing Digital Reinvention, creating what is been called

the 4th industrial revolution

� How Germany is dealing with the fusion of the online world and the world of industrial production.

� "Those who are the leaders in the digital domain will take the lead in industrial production."

� Leading the USA industrial sector transformation into a networked, information-driven environment

� Providing an open Smart Manufacturing Platform to support real-time, high value applications.

� Transform China from a manufacturing giant into a world manufacturing power.

� Priorities include improving manufacturing innovation, integrating IT and OT and promoting

Global Manufacturing Initiatives

� Bringing innovation to the manufacturing process in Korea, expanding the use of smart factories

� Developing core technologies related to the Internet of Things, 3-D printing and big data

Innovation in Manufacturing 3.0

� Priorities include improving manufacturing innovation, integrating IT and OT and promoting

service-oriented manufacturing.

� France industrial plan to enable the industrial sector for the next industrial revolution.

� Assist companies in their transformations towards a world where digital is closing the gap between

industry and services.

� UK strategic initiative that aims to revitalize the manufacturing industry.

� Consists of technology and innovation centers that work as gateways to access the best

manufacturing talent and facilities in the country.

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The 4th Industrial Revolution

First

Industrial Revolutionbased on the introduction of mechanical production equipment driven by water and steam power

Third

Industrial Revolutionbased on the use of electronics and IT to further automate production

Second

Industrial Revolutionbased on mass production achieved by division of labor concept and the use of electrical energy

Fourth

Industrial Revolutionbased on the use of cyber-physical systems

From Industry 1.0 to Industry 4.0

Degree of

complexity

Fourth

First mechanical loom,1784

1800 1900 2000

First conveyor belt, Cincinnati slaughterhouse, 1870

First programmable logic controller(PLC) Modicon084,1969

TODAYFirst

Second

Third

http://www.bmbf.de/en/19955.phpIndustry 4.0 web link : 4

Trends towards Industry 4.0 : The objectives and the path

Horizontal integration through Value NetworksThe journey towards Industry 4.0The Primary Goal of Industry 4.0

Key FeaturesPrimary Goals

• Peer to peer eco-system• Meet individual and highly customized demand

• Profitable Lot Size 1• Software defined products

Based OnEnd-to-end engineering through entire Value Chain Vertical integration and networked manufacturingsystems• Cyber-Physical systems

• Internet of Things• Smart Factories

• Smart supply chains• Smart products

Key Features• Real time sense and response

• Predictive and prescriptive analytics• Dynamic business processes • Optimized decision making

Watch the video: https://www.youtube.com/watch?v=GKhSTjraHlU

Whatever the estimation we consider, the potential economic impact is huge… and 70% is in B2B

Factories• Operations optimization, predictive maintenance,

inventory optimization, health and safety1,210 - 3,700

160 - 930Worksites• Operations optimization, equipment maintenance,

health and safety, IoT-enabled R&D

“The economic impact of IoT applications could be

from $3.9 trillion to $11.1 trillion per year in 2025” Home Vehicles Cities Outside

The Industry 4.0 Economic Impact with IoT

� Source: McKinsey Global Institute: The Internet of Things: Mapping the

Value Beyond the Hype

from $3.9 trillion to $11.1 trillion per year in 2025”

“Business-to-Business applications will generate

nearly 70% of potential value enabled by IoT

and the 4th Industrial Revolution”.

9 Settingsgave us a cross-sector view of a total potential impact of $3.9 trillion-11.1 trillion per year in 2025

Home

Chore automation and security

$200B-350B

Vehicles

Autonomous vehicles and condition-based maintenance

$210B-740B

Cities

Public health and transportation

$930B-1.7T

Outside

Logistics and navigation

$560B-850B

Human

Health and fitness

$170B-1.6T

Worksites

Operations optimization health and safety

$160B-930B

Retail environments

Automated checkout

$410B-1.2T

Factories

Operations and equipment optimization

$1.2T-3.7T

Offices

Security and energy

$70B-150B

Autonomous Systems

Internet of Services

Internet of Things

� Ability to connect and manage

devices

� Near real-time data collection

� Insights of what is happening

� New business models

Internet of Things

� New delivery channels and business models

Internet of Services

� Smart and networked products

� Ability to communicate thru the Internet

� Self diagnose / self awareness

Autonomous Systems

The emerging technologies that path the way for Industry 4.0

Technologies enable Industry 4.0 Digital Reinvention

Industry 4.0Industry 4.0

Services

Analytics & Cognitive

Flexible Manufacturing

Things� New business models

� Flexible machines

� 3D printing

� Machine to machine

� Mixed human / robotics

� New standards and protocols

� Vertical and horizontal integration

Flexible Manufacturing

� New delivery channels and business models

� Integrations across value chains

� The API economy

� Embedded in equipments, products and

services

� Predict what may happen

� Prescribe actions for best outcomes

� Self learning

� Communicate in natural language

Analytics & Cognitive

Sources: Acatech: Recommendations for implementing the strategic initiative Industrie 4.0, April 2013;Gartner: Industrie 4.0- The Ten Things the CIO Needs to Know; Deutsche Bank Research: “Upgrading of Germany’s industrial capabilities on the horizon “, April 2014

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Industry 4.0 Digital-Reinvention in manufacturing is set to redefine every participant in the manufacturing

value chain, from R&D, supply chain, and factory operations to marketing, sales, and service

DIGITAL DATAThe growth in data volumes, computational power and the

emergence of analytics and business-intelligence capabilities

CONNECTIVITYInterconnecting the entire value chain via mobile or fixed-

line high-bandwidth telecom networks synchronizes supply chains and shortens both production lead times and

innovation cycles.


Mckinsey and Company “Digital manufacturing: The revolution will be virtualized” August 2015 and Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015

AUTOMATIONNew forms of human-machine interaction such as touch

interfaces and augmented-reality systems

DIGITAL CUSTOMER ACCESSThe (mobile) internet gives new intermediaries direct access to customers to whom they can offer full transparency and

new kinds of services with the rise in improvements in transferring digital instructions to the physical world

Four Disruptions/Levers Drive the Digitization of the Manufacturing Sector

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The four levers of digitization are supported by new enablers and propositions. New players from other industries can

leverage innovative business models to acquire a substantial level of value added.

Emerging Initiatives and opportunities ….

C2M : Customer to Manufacturing

C2B : Consumer to Business

F2C : Factory to Consumer

O2O : Online to Offline

Drivers of digitization


Source: Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015

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Cloud-based, as a Service

Dynamic / Self Configured Processes

Closed Loop

Cognitive Value Chain /

Human Collaboration

Cloud-based, as a Service

Pre-Defined / Automated Processes

Closed Loop

Human Supervision

On- Premise, Owned

Provide insights

Open Loop

Human Required for Action

IBM Vision & Strategy to realize full potential of Industry 4.0 Digital Reinvention

CPS-1

CPS-2

CPS-n

Watson

CPS-1

CPS-2

CPS-n▲ Specialized Model 1 ▲ Specialized Model 2

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The IBM Industry 4.0 Digital ManufacturingConnecting machines, technology and processes to enable autonomous control and operational insights

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Industry Cloud

Integrated MESConnected EquipmentTransparent Supply Chain

The IBM Industry 4.0 Smart Factory – Overall Approach

INSTRUMENTED

Ability to measure, sense and monitor the

condition of almost everything.

INTERCONNECTED

People, systems and objects can communicate and interact with

each other in entirely new ways.

INTELLIGENT

Respond to changes quickly and accurately, and get better results by predicting

and optimizing for future events.

Smart ManufacturingComprehensive set of capabilities to enable smarter decisions faster

Physical Meets DigitalLinking physical world assets, resources and infrastructure with the digital world of

event processing, business analytics and optimization.

Information Model Standard-Based Standardized Metrics Event Management

Prediction Visibility Collaboration Analytics & Optimization

Smart Manufacturing EnablementOne open channel to all data required to operate assets in real time

Scope: Industry 4.0 is an emerging and on-going roadmap with different target

scope at different phase Phase IINTRA-FACTORY &INTRA-ENTERPRISE Phase IIE2E CONNECTIVITY ACROSS THE VALUE CHAIN Phase IIISOFTWARE DEFINED MANUFACTURING Interconnection of machinery and systems across the factory and across the enterprise, enabling major Interconnection across the entire supply chain leads to further gains in efficiency, productivity and flexibility New business opportunities enabled by globally interconnected cloud of enterprisesEnables profitable lot size 1 P2P Value Network Creation

B2B Value Chain

Integration enabling major productivity gains and increased flexibility/agilityM2M / M2Band flexibilityB2B Enables profitable lot size 1 Amazon of manufacturingP2P

M2B

Intra –

factory /

enterprise

Enterprise Network (Business Floor)

AssetManagement BusinessProcess Product Quality Management IoT Cloud Data PartnersSecurity

AnalyticsPortalWeb AppsI4.0 Platform

Architecture and Building Blocks: Industry 4.0 is an emerging and on-going

roadmap with different target scope at different phase

Business component (e.g. design, demand, supply and etc.) need to be developed as interoperable services in a horizontal integration platform to support a E2E/P2P value networkHorizontal Integration

Realtime Network (Shop Floor)ProductionProcess Control Sensors Data Machine Events Mobile

Capabilities: A portfolio of industry 4.0 capability must be identified and

developed with the roadmap to support the evolving industry 4.0 scope

Business Layer

Smarter Global Operations

End-to-End Supply Chain Collaboration End-to-End Supply Chain Collaboration

Global Decision Support Center Global Decision Support Center Role-Based Portal & Mobile Devices Role-Based Portal & Mobile Devices Smarter Business Insight Smarter Business Insight

Smarter Safety Smarter Safety

Smarter Knowledge Center Smarter Knowledge Center

Smarter

Grid

Smarter

Grid

Condition-Based

Monitoring

Condition-Based

Monitoring

Optimal Material

Design

Optimal Material

Design Supply Chain Sustainability Management Supply Chain Sustainability Management

3D Visualization &

Mobile Testing

3D Visualization &

Mobile Testing

Real-time

Event Monitoring

Real-time

Event Monitoring

Smarter

Procurement

Smarter

Procurement

Predictive Quality

Monitoring

Predictive Quality

Monitoring

Automatic

Failure Analysis

Automatic

Failure Analysis

Cross Operation

Quality Monitoring

Cross Operation

Quality Monitoring

Smarter Operations Smarter Maintenance Smarter Energy Smarter QualitySmarter MESSmarter SCM

/ Logistics

Integrated Planning

(operations, maintenance & energy)

Integrated Planning

(operations, maintenance & energy)

Semantic

Model

Semantic

Model

Metrics and

KPIs

Metrics and

KPIsEvents Capturing Events Capturing

Modeling and

Visualization

Modeling and

Visualization

Foundation Platform ( Integration, Semantic, Analytics)

Real-Time

Data Capturing

Real-Time

Data Capturing

Machine Layer

MRO Inventory

Optimization

MRO Inventory

Optimization

Inventory

Optimization

Inventory

Optimization

Energy Peak

Management

Energy Peak

Management Optimal Plant

Design

Optimal Plant

Design

Load Design &

Ship Scheduling

Load Design &

Ship Scheduling

Smarter Decision

Platform

Smarter Decision

Platform DeepQADeepQA

Smarter Enterprise

Business Models

Smarter Enterprise

Business Models

Smarter Analytics and

Optimization

Smarter Analytics and

Optimization

Geospatial / Mobile

Technology

Geospatial / Mobile

Technology

Quality / Equipment

Correlation

Quality / Equipment

Correlation

Data Stream

Technology

Data Stream

Technology

Value Next Work Integration

Value Chain Integration

Top Floor (Business) Control

Three dimensions to assess Industry 4.0 framework and roadmap

P2P Value Network Creation

B2B Value Chain

Integration

Scope Architecture Capabilities

Customized

Demand

Customized

Demand

Dynamic

Pricing

Dynamic

Pricing

Supply Chain

Integration

Supply Chain

Integration

Product

Tracibility

Product

Tracibility

Real Time

Inventory

Real Time

Inventory

P2P Design

Collaboration

P2P Design

CollaborationLot size =1 Lot size =1

Optimized

Supply

Network

Optimized

Supply

Network

C2M

Platform

C2M

PlatformSmarter

Logistics

Smarter

Logistics

Top Floor (Business) Control

Analytics & Optimization

Shop Floor (Production) Control

Device / Machine

Integration

M2B

Intra –

factory /

enterprise

Semantic

Model

Semantic

Model

Events

Capturing

Events

Capturing

Modeling and

Visualization

Modeling and

Visualization

M2M

Connectivity

M2M

Connectivity

Long Range Signal&

Control

Long Range Signal&

Control

Real Time

Monitoring

Real Time

Monitoring

Dynamic

Routing

Dynamic

Routing

Dynamic

Scheduling

Dynamic

Scheduling

Real-Time

Data Capturing

Real-Time

Data Capturing

Predictive

Analysis &

Optimization

Predictive

Analysis &

Optimization

Shop Floor

Mobility

Shop Floor

Mobility

Real Time

Enterprise

Real Time

EnterpriseBusiness InsightBusiness Insight

Prescriptive Planning

& Simulation

Prescriptive Planning

& Simulation

• Continuous and Digital Lifecycle

Engineering

• Adaptive Logistics

• Dynamic and Real-Time

Production Planning and

Scheduling

• Virtual Factory

• Globally integrated

supply chain

• Augmented Reality

supporting Field Service,

Asset Maintenance

• Integrated Field Service

• Integrated Factory Floor

• Dynamic Planning

• Cognitive analytics for

supply chain, procurement

and inventory optimization

• Cognitive analytics for Field

Service

• Shift from products to

services

• Software enabled

products

P2P Value Network Creation

B2B Value Chain

Integration

Creating value opportunities through servicesi.e. Hosting an after service application (or providing feedback to engineering ) on the Cloud using data from the products

Personalized, local production and mass customization

Design for Manufacturing –

Phase 1

Integrate the Supply Chain –

Phase 2

Orchestrate the Value Chain –

Phase 3

Mobile Cognitive New Businesses and Services

Deliver insight through Cyber-Physical systemsScope

• M2M Connectivity

• Sensor Networks

• Production Data Collection

• Automation Control (PLC)

• Shop Floor Integration of

many data sources and

equipment Databases,

Sensors, OPC (DA, HDA,

UA), struct/unstruc data.

• Cloud Integration

• Business Integration (Shop

Floor - MES - ERP)

• Advanced Analytics to

optimize Quality, Yield,

Equipment, Efficiency,

Energy

• Predictive Systems for

Maintenance, Dynamic

Factory Planning

Engineering

• EDA integrated into Manufacturing

• Digital Twin

Scheduling

• One-piece flow (Lot size 1)

• Intelligent Quality and

Warranty Management

supply chain

• Transparent Supplier

Collaboration

M2B

Intra –factory

/ enterprise

Optimization

INSTRUMENTED INTERCONNECTED INTELLIGENT

Dynamic business and engineering processes enabling last-minute changes to production i.e. ERP and PLC integration by SOA

mass customization i.e. Lot 1 with Industrial Automation by adapting IoT

Build the Platform – Phase 1 Integrate the Factory – Phase 2 Optimize the Factory – Phase 3

IBM Partners

Existing Factory Focus

Common Use Case: Asset Health (1 of 3)

CPS Asset Health

Real-time Data Exchange Real-time Data Exchange

INSIGHTS

� Sub-assembly / component lifetime wear indicators

� Leading failure indicators

� Engine alerts

� Overload / over speed alerts

Equipment (sensor) time-series

� Vibrations, temperature, pressure, "speed"

variables (rotational, translational, …), etc.

� Positional and/or motion data

� Event data – e.g., when an accelerator is

triggered; when gear is shifted

� "Alerts" (thresholds breached, etc.)

Maintenance Data / Historical Data

� Basic asset info (locations, model, age, etc.)

� Maintenance-related outcomes Repair history

� Preventive & Unscheduled

� Fluid analysis

� Inspection reports

Common Use Cases: Production Optimization (3 of 3)

CPS Asset Health

INSIGHTS

� Sub-assembly / component lifetime wear indicators

� Leading failure indicators

� Engine alerts

� Overload / over speed alerts

� Permit to work

� Use of safety equipment

� Unsafe condition of equipment

� Fatigue

� Alertness

� Fall / Injury

� Production real-time status

� Equipment utilization

� Best time to perform maintenanceCPS Worker

CPS Production Optimization

Orders

� Customer

� Order quantity, price, due date

� Production routing

� Best time to perform maintenance

� Worker productivity

Worker equipped with wearables

Production data

� Production status

� Inventory (WIP, FG..)

� Equipment status

� Workstation status…

Real-timeData Exchange



The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases

Connected Sales & Connected OperationsConnected ProductsConnected Sales & Marketing

Connected Products

� Customer Insights and Opportunities

� Flexible Billing and Pricing Models

� New Value Added Services

� Connected Product Usage Analysis

� Connected Product Quality Analysis

� Connected Software Management

� Asset and Materials Tracking

� Connected Operations Intelligence

� Unified Key Performance Indicators

� Real-Time Asset Health Monitoring

� Operation Management Improvement

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The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases

Connected CustomersConnected Services Connected Information Connected CustomersConnected Services & Support

Connected Information & Operation Technology

� Monitoring and Diagnostics

� Remote Services

� Automated Service Execution

� Condition-based Predictive Maintenance

� Connected Service Parts Planning

� Warranty Cost Management

� Usage and Performance Dashboard

� Customer Self-Service

� Product Personalization

� Flexible Product and Asset Connectivity

� Identify and Security Management

� Scalable IoT Operation Management

� Seemless IoT Data Integration

� Automated Analytics and Actions

� Rapid IoT Application Development22

To help choose the right data set, technology etc., manufacturing leaders can use a “digital compass”. Cross-functional

discussions that will help companies find the levers that are best suited to solve their particular problems.

The ‘digital compass’ helps companies find tools to match their needs.

“Digital Compass” – Guideline for Industry 4.0 Digital Reinvention

The compass consists of eight

basic value drivers and 26

practical Industry 4.0 levers.

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The Steps Ahead?

1. 2. 3.Explore unique industry requirements. Collaborate with

Industry and Technology player to

identify your business priorities and

challenges.

Identify opportunities for innovation and growth. Determine where best to deliver

business process and technology

improvements and innovation.

Develop a road map and partnership model.Leverage productivity and innovation

enhancements to accelerate

measurable business outcomes

that support your strategy.

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Made with IBM

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ContactsContactsContactsContacts

Email • [email protected]

LinkedIn • https://sg.linkedin.com/pub/meng-kuang-koh/5/16b/473

Email • [email protected]

LinkedIn • https://sg.linkedin.com/in/ethanchee

industry 4.0 : digital reinvention in manufacturing industry

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