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INDUSTRY 4.0: Ron Stuver Director, Business Consulting, Industry 4.0 Make It Real

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Page 1: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0:

Ron Stuver

Director, Business Consulting, Industry 4.0

Make It Real

Page 2: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

PRESENTER

October 29, 2019 Ron Stuver | SICK, Inc. 2

Ron Stuver

Director, Business Consulting, Industry 4.0

SICK, Inc.

Professional Background:

• US Army Officer

• Rockwell Automation (Allen-Bradley, Rockwell Software)

• Consulting firm (Business Strategy, ERP Consulting)

• Rockwell Automation

• SICK, Inc

Page 3: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

AGENDA

Defined•Understanding Industry 4.0

Value•What can Industry 4.0 do for me

Data•Data is everywhere

Journey•Example Use Case: What is the path to achieving value

October 29, 2019 Ron Stuver | SICK, Inc. 3

Page 4: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HOW OUR WORLD (HAS) WILL CHANGE

October 29, 2019 Ron Stuver | SICK, Inc. 4

DIGITAL EVERYWHERE IN OUR LIVES

Digital Natives

Generation Online

online access from everywhere

configurable and personalized

immediate availability

Page 5: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HOW OUR WORLD (HAS) WILL CHANGE

October 29, 2019 Ron Stuver | SICK, Inc. 5

DIGITAL EVERYWHERE IN OUR FACTORIES

Digital Natives

Smart Manufacturing

Connectivity - access from everywhere

Immediate or Analytical

Diagnostic / Predictive / Prescriptive

Page 6: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0

October 29, 2019 Ron Stuver | SICK, Inc. 6

THE FOURTH INDUSTRIAL REVOLUTION

Late-1700’s Late-1800’s 1970/80’s Early-2000’s

Page 7: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

TERMINOLOGY

October 29, 2019 Ron Stuver | SICK, Inc. 7

The use of computer systems to optimize the manufacturing process. This

would be aligned with the 3rd industrial revolution.

Digital Manufacturing

The Industrial Internet of Things is a sub-set of IoT and represents the

technology and devices that are networked / connected within manufacturing

industries.

IIoTThe Internet of Things represents technology and devices in our lives that are

connected and allows interaction and the exchange of data.

IoT

A trend in industrial automation that involves the assembly and connectivity of

technologies in a manufacturing environment to support flow and exchange of

data. The I4.0 term originates in Germany used to define high-tech strategy

promoting computerization of manufacturing.

Industry 4.0A physical facility that is highly automated and incorporates I4.0 concepts.

Smart Factory

A broad term that provides an umbrella definition to the optimization of the

manufacturing processes via the use of automation supporting the use of data

throughout the product life-cycle. Often used in the U.S. interchangeably with

the term Industry 4.0.

Smart Manufacturing

Page 8: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

TERMINOLOGY

October 29, 2019 Ron Stuver | SICK, Inc. 8

SIMPLIFIED

Digital Manufacturing

IIoT IoT

Industry 4.0 Smart Factory

Smart Manufacturing

Computerization / 3rd Industrial Revolution

Things that are on the Internet!

Digital Manufacturing

IoTIIoT

Subset of IoT

“Industrial” things that are on the Internet!

Industry 4.0

Term originates in Germany

Assembling + Connecting technology

Flow + Exchange of DATA!

Smart Factory

Facility incorporates I4.0 concepts

Smart Manufacturing

Umbrella term used in U.S.

Flow of DATA throughout product life-cycle

Page 9: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0

October 29, 2019 Ron Stuver | SICK, Inc. 9

DATA IN THE SUPPLY CHAIN

R&D Product

• Item Num

• Product Specs

• Raw Materials

Create Product

• Status

• Quality

• OEE

• Machine Setup

Store/Move Product

• Inventory

• Orders

• Delivery

Sell Product

• Product

• Price

• Profile

Data Flows Thru The Supply Chain

Page 10: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HARNESSING THE VALUE

October 29, 2019 Ron Stuver | SICK, Inc. 10

DATA + INDUSTRY 4.0

PRODUCTIVITY

COMPLIANCE

RELIABILITY

PREVENTATIVE MAINTENANCE

Page 11: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HARNESSING THE VALUE

October 29, 2019 Ron Stuver | SICK, Inc. 11

DATA + INDUSTRY 4.0

Homeland Security Research (www.hsrc.biz)

• 4.1% cost reduction (manufacturing efficiencies and improved value

chain management )

• 3.0% revenue increase (driven by customized products, predictive

maintenance, and additional services)

• Most assume a two-year full Return on Investment (ROI) and enormous

long-term gains

Page 12: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HARNESSING THE VALUE

October 29, 2019 Ron Stuver | SICK, Inc. 12

DATA + INDUSTRY 4.0

Homeland Security Research (www.hsrc.biz)

“the Industry 4.0 market is projected to reach $214B by 2023”

“the Industry 4.0 revolution will be driven by an ensemble of emerging technologies, such as Industrial Internet of

Things (Industrial IoT), Big Data analytics, advanced industrial robots, Artificial Intelligence (AI) and predictive

maintenance.”

• 63% of the respondents stated that their business future depends on the Industry 4.0 Transformation

• 88% of the respondents agreed that delaying the Industry 4.0 transformation of their enterprises may risk their

business future

• 12% of the respondents have already implemented some Industry 4.0 conversion and reported clear

improvements in their value chain performance

What are we waiting for?

88%

Page 13: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

HARNESSING THE VALUE

October 29, 2019 Ron Stuver | SICK, Inc. 13

WHAT’S HOLDING US BACK?

A major barrier for Industry 4.0 is the general lack of clarity

McKinsey & Company

Lack of a clear business case to justify investments in IT architecture

Lack of talent, e.g., data scientists

Lack of courage to push through transformation

Concerns about cybersecurity when working with third-party providers

Difficulty to coordinate actions across organizational units

Gartner Research

Unclear business benefits

Insufficient expertise/staffing

No clear leadership for IoT

Security Concerns

Insufficient time to develop ideas to benefit from IoT

The Mechanical Engineering Industry

Association

Lack of clarity about economic benefit

Lack of expertise or skilled labor

General lack of clarity, hesitancy

Lack of confidence in data security

Lack of norms and standards

Source Left: McKinsey Digital - Capturing Value from Digital Disruption in Manufacturing Industries 2016

Source Middle: Gartner Research – Solution Path for Executing an Internet of Things Initiative 2016

Source Right: VDMA - Industry 4.0 Readiness 2015

Business Justification

Expertise

Understanding

Data Security

Many will find an Industry 4.0 partner to help guide the way!

Page 14: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

DATA

October 29, 2019 Ron Stuver | SICK, Inc. 14

IT’S ABOUT THE DATA! (INFORMATION IS KEY)

D

A

T

A

Generate

Capture

Aggregate

Page 15: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

DATA

October 29, 2019 Ron Stuver | SICK, Inc. 15

CONNECTIVITY IS CRITICAL

Page 16: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INTELLIGENT SENSORS

October 29, 2019 Ron Stuver | SICK, Inc. 16

SUPPLIERS OF INFORMATION IN INDUSTRY 4.0

Already today, support for networked machines and industrial processes

Extensive possibilities for self- and process diagnostics

Integrated logic functions for signal processing directly in the sensor

Higher efficiency and lower costs

Page 17: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0 DATA

October 29, 2019 Ron Stuver | SICK, Inc. 17

BIG DATA

VOLUME + VARIETY + VELOCITY = BIG DATA

Sheer amount

of raw data

(i.e. gigabytes,

zettabytes, etc

Structured

And

Unstructured

Density of

inbound data

(milliseconds)

Page 18: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0 DATA

October 29, 2019 Ron Stuver | SICK, Inc. 18

WHAT TO DO WITH ALL THIS DATA

DIAGNOSTIC PREDICTIVE PRESCRIPTIVEDECISIONS

ACTIONS

Real-Time

Status

On/Off

Pass/Fail

Pay Attention

Statistical

Analysis

Trending

Collection of Data

Algorithms

Machine Learning

Identify Action

Analysis

Trending

Stream of Data

Algorithms

Machine Learning

What is Now What is Next What to do about it

Page 19: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0

October 29, 2019 Ron Stuver | SICK, Inc. 19

THE LAYERS OF AUTOMATION

DATA is created at the “Edge”

Machines, Devices, Sensors, PLC’s

NETWORK INFRASTRUCTURE is the “highway” needed to enable

connectivity

Horizontally (machine to machine) and Vertically (from

operations to/from enterprise)

AUTOMATION provides for efficiencies in the

manufacturing operationsRobotics, AGC/AGV, Vision, etc

INFORMATION SOLUTIONS provide visibility to data, the ability to aggregate various

sources of data, and turn data into information that supports rapid and effective decisions

ENTERPRISE SOLUTIONS require exchange of data with operations

SERVICESData

Integration

Connectivity to machines

Remote Monitoring

1 2

3

45 6

THE EDGE

Page 20: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

CUSTOMER EXAMPLE

October 29, 2019 Ron Stuver | SICK, Inc. 20

Product-A Machines

Manual Push Button.

Semi Automatic Rotary Machines.

Relay Logic. PLC Control.

Automatic Assembly

Machines.Oven.

Assembly Machines. PLC’s

(various)

Screw Machine.

Hook & Coil

Machines.

Cutting Machines.

Cold Forming

Machine.

Injection Molding

Machines

Product-C2.

Product-C1

Promote Machine visibility:

• Fault

• Emergency Stop

• Auto-Mode

• Auto running

• Cycle Count*

Product-B

Machines

Current factory with very little

connectivity.

Big Data Analytics.

Overall Equipment Efficiency.

Machine Downtime.

Product-A

Machines

Product-C

Machines

Page 21: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

CUSTOMER EXAMPLE

October 29, 2019 Ron Stuver | SICK, Inc. 21

SICK SOLUTION PROVIDE DATA CONNECTIVITY

Sensor Intelligence

Connectivity Thru TDC (TelmeticData Collector), PLC & NAT: Network Adapter Translator

IIOT

Dashboard

Mobile

App

All the devices connected.

Push the Data into Kepware.

DB and Calculations.

Mobile App.

PLC

Sensors

TDC

Product-A

Product-B

Product-C

Machines

Solution

Page 22: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

INDUSTRY 4.0: PULLING IT TOGETHER

October 29, 2019 Ron Stuver | SICK, Inc. 22

IT’S ABOUT THE DATA! (INFORMATION IS KEY)

Implementing solutions

that achieve desired

outcomes = value

INTELLIGENT SENSORS: SUPPLIERS OF INFORMATION IN INDUSTRY 4.0

D

A

T

AGenerate

Capture

Aggregate

The journey insures alignment between business objectives

and I4.0 initiatives.

Alignment helps to identify the data (information) that

enables business + operational decisions that support

desired outcomes.

Assess + Understand

Confirm Value

(use cases / data)

Identify / Prioritize Opportunities

Roadmap

Design / Spec

Page 23: INDUSTRY 4.0 - Smart Manufacturing Automation Summit€¦ · October 29, 2019 Ron Stuver | SICK, Inc. 7 The use of computer systems to optimize the manufacturing process. This would

MANY THANKS FOR YOUR ATTENTION.

Ron Stuver

Director, Business Consulting, Industry 4.0