roadmap to industry 4 - thailand management association · 2018-09-13 · tma - roadmap to industry...

Roadmap to Industry 4.0What it takes to build the factory of the future

Bangkok, July 20, 2017

Note: this presentation leverages findings from the BCG study: "The Factory of the Future"; for the full study, please click here

https://www.bcgperspectives.com/content/articles/leaning-manufacturing-operations-factory-of-future/

TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 1

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BCG deeply involved in driving Industry 4.0 worldwide

Manufacturers

How to make the most

of Industry 4.0?

I4.0 suppliers

What will the market

need in the future?

Governments

How to prepare the

economy for the future?

Source: BCG


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We operate our own I4.0 model factories to drive research

and offer clients an immersive learning experience

Source: BCG

Boston

Paris

Aachen

Kaiserslautern

Stuttgart

Singapore

Coming soon


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Agenda

CONTEXT – what is it & what makes it so disruptive?

ROADMAP – what does it take to get it done?

ENABLERS – what are key success factors?


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Agenda


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It's no longer science fiction …

COLLABORATIVE

ROBOTS

INNOVATIVE USER

INTERFACES / AR

AI / COGNITIVE

COMPUTING

BIG DATA + ADVAN-

CED ANALYTICS

SHIFT TO

THE CLOUD

UBIQUITOUS

CONNECTIVITY

IOT / CONNECTED

DEVICES + SENSORS

3D SCANNING AND

PRINTING

SOCIAL, LOCAL,

MOBILE

BUILDING BLOCKS OF THE

DIGITAL REVOLUTION

+ Performance

+ Ease of use

+ Safety

+ Cost

+ Flexibility

Mass market maturity

Source: BCG


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THE FACTORY OF THE FUTURE

Integrating the value chain from raw material to customer

From isolated,

optimized cells …

...to fully integrated data &

product flows across borders

Reduced

conversion cost

Higher quality

standards

Improved

flexibility

New business

models

Integrated auto value chain

• Suppliers

• Component manufacturing

• Press, body, and paint shops

• Final assembly

• Customers

Source: BCG analysis

Safety


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EXAMPLE USE CASE

Self-driving logistics vehicles

Source: company information


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Powerful enough to ring in fourth industrial revolution

Late 18th century

Mechanization, water

& steam power

Industrial

revolution1.

Historical loom

Early 20th century

Electricity, division

of work

Ford Model T mass

production

Industrial

revolution2.

Early 1970s

IT and (rigid)

automation

Industrial

revolution3.

Automated industrial robots

in manufacturing

Today / near future

Industrial

revolution4.

Connection between

physical and digital systems

Digitally integrated

value chain

Source: BCG analysis


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What makes Industry 4.0 so disruptive?

Strong interest

New revenues

Massive impact

Now is the time

Global 'equalizer'

50%

25%

Process

industries

40%

Press shop

Automotive

Component mfg.

30%

25%

Final assembly

25%

40%Engineered

products

Paint shop

50%

Body shop

Impact on conversion cost

Source: BCG


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Strong interest

New revenues

Now is the time

Massive impact

Global 'equalizer'

More sensor data than ever –

in real time

Algorithms to make sense of

all that data

Simple, affordable hardware to

link algorithms

back to reality

Source: BCG


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Strong interest

Massive impact

New revenues

Now is the time

Global 'equalizer'

Besides cost, flexibility,

quality, and safety …

… opportunity to expand

business from selling 'only'

products to selling services

From selling

tractors to selling

end-2-end yield

optimization

services

Source: BCG


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Strong interest

Massive impact

Global 'equalizer'

Now is the time

New revenues

Mature economies now can

compete on cost …

Developing economies now

can compete on quality …

???Source: BCG


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Global 'equalizer'

Massive impact

Strong interest

Now is the time

New revenues

Govts. eagerly seeking ways

to support companies

E.g.

Companies developing first

Industry 4.0 concepts …

47% of

auto players

with first I4.0

concepts

Source: BCG


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Agenda


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FROM POSSIBILITY TO REALITY …

Despite high ambitions, industry struggles to build momentum

750

BCG wanted to find out why, and to

make it real, we've asked …

… production managers from leading

industrial companies in three sectors:

• Automotive

• Engineered products

• Process industries

85%We can benefit

from Industry 4.0

74%Plans to implement

in next 5 years

25%Achieved related

targets last year

Source: BCG (BCG Perspectives: The Factory of the Future)


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Transforming into the Factory of the Future really means the

combination of changes along three dimensions

PLANT STRUCTURE PLANT DIGITIZATION PLANT PROCESSES

Today

43%

2030

86%

Today 2030

70%13%

Today

70%

2030

97%

Important? Important? Important?



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PLANT STRUCTURE

Three key themes for the future plant structure

Multi-directional

plant layout

Products placed on

driverless transport

systems coordinated

autonomously

AUDI R8,

Heilbronn, Germany

80%Modular

production lines

Inter-changeable line

modules, configurable

machinery that is multi

purpose and simple

Toyota factories,

Mexico and China

92%Sustainable

production

Focus on energy and

material efficiency,

e.g., lighting, cooling,

production processes

Webasto factory,

Arad, Romania

85%


% "Important by 2030"


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PLANT DIGITIZATION

Seven dominant technologies for I4.0 use cases

By now, it is

use cases that

matter, not the

underlying digital

technologies

Big data &

analytics

Decentralized

production steering

Smart / flexible

robots

Collaborative

robots

Additive

manufacturing

Augmented

reality

Production

simulation

85%

80%

72%

85%

72%

65%

81%




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PLANT DIGITIZATION

Seven dominant technologies for I4.0 use cases

By now, it is

use cases that

matter, not the

underlying digital

technologies

Big data &

analytics

Decentralized

production steering

Smart / flexible

robots

Collaborative

robots

Additive

manufacturing

Augmented

reality

Production

simulation

85%

80%

72%

85%

72%

65%

81%

Changan Ford

18 sec change

over for welding

of six models

Volkswagen

support screw

tightening in

difficult places

BMW

10,000 parts

for Rolls Royce

Phantom

Volkswagen

3D glasses to

facilitate logistics

(order picking)

Faurecia

test changes to

material flow to

evaluate options

Mercedes Benz

test 600 cylinder

head production

quality drivers

Bosch

tools understand

location / context,

adjust actions




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Continuous

improvement

Customer

centricity

PLANT PROCESSES

Lean production lifted to the next level through I4.0

Lean production principles … … lifted to next level through digital

• Better understanding of customer

needs through big data

• Higher degree of customization

enabled by integrated value chain

• Substantially more data due to vast

number of connected sensors

• Advanced analytics algorithms to

identify optimization potential



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Continuous

improvement

Customer

centricity

PLANT PROCESSES

Lean production lifted to the next level through I4.0

Lean production principles … … lifted to next level through digital

• Better understanding of customer

needs through big data

• Higher degree of customization

enabled by integrated value chain

• Substantially more data due to vast

number of connected sensors

• Advanced analytics algorithms to

identify optimization potential

Daimler

Aims to allow customers to make last

minute modifications, e.g., changes to

color while on the way into paint shop

Bosch

Builds continuous improvement

functionality right into its production

machinery for fuel injectors



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Agenda


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What do practitioners think are the key challenges to

overcome in order to put I4.0 in place by 2030?

Strategy &

leadership

Employee

skills

Safe and

ubiquitous IT

infrastructure

35%

38%

40%

"Major challenge by 2030?"

Industry 4.0 affects the

whole organization, not

just the technology dept.

At the highest level:

from routine jobs to

flexible judgement

The technologies are there,

the implementation not yet,

and safety is a major concern



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STRATEGY & LEADERSHIP

I4.0 needs to be part of the overall business strategy

Clear vision

+

Clear strategy,

anchored in overall

business strategy

+

Commonly under-

stood roadmap

Strategy & roadmap

Org structure

+

Clear roles and

responsibilities

+

Change mgmt.

process to control

implementation

Org / governance

More 'advisory'

leadership

+

More team focused

leadership

Less 'authoritarian'

style directions

Leadership style

~33% ~33% ~40%

… say this will be a major challenge by 2030Source: BCG (BCG Perspectives: The Factory of the Future)


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EMPLOYEE SKILLS

It's (not just) about IT / programming skills

38

61 5574

6584 79 73

95 90 88

55

98 98 93 90

+17

IT

skills

Electronic

skills

Mecha-

tronical

skills

+33+57

-19

Learning

capacity

Problem

solving

Mechanical

skills

Teamwork Taking

respon-

sibility

+14+33+29 +14

Technical competencies Social competencies

Important today vs. 2030? Important today vs. 2030 ?


x Percentage points


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EMPLOYEE SKILLS

Shift from routine jobs to jobs requiring flexible judgement

Today

I4.0

Key

activities

Existing jobs New jobs

Robot coordinators

• Oversee several robots in production

• Carry out routine and emergency maintenance

• Mitigate production downtime by introducing alternative robots in case of robot failure

• Transfer WIP products into and monitor 1 machine

• Check WIP products quality• Clean and conduct physical

checks of machine• Perform SOP activities

Machine operators

• Transfer WIP products into and monitor multiple machines

• Run QC queries on system• Resolve downtime after

automated diagnosis (via AR or remote instructions)

Data scientists

• Perform simple data extraction and analysis (using Excel)

• Conduct manual analysis typically from silo sourcesof data

• Run big data analysis collating unstructured real-time data from multiple sources

• Identify patterns such asbottlenecks and make actionable recommendations

• N/A

Source: BCG Analysis


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What type of training will be important?

EMPLOYEE SKILLS

How do manufacturers aim to answer these skill challenges?

Reeducation 18%

Recruiting 29%

Training 53%

"How to overcome skill gap?"

83 80 663927 32

Immersive

training

E-learningLearning

by doing

-7

Traditional

training

+56 +66+59

Do you expect net / net to hire or fire?

50

32

28

25

25

12

-17

-17

-29

-12

-12

-12

Supply chain

Prod. planning

Logistics

Quality control

Maintenance

IT

(%)

(%)



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IT INFRASTRUCTURE

Two topics dominate practitioners' concerns

I4.0 requires plant-wide

connectivity & data storage

Issues today: lack of

network standards + poor

network infrastructure

Data is poised to become

evermore valuable under I4.0

Concerns today: general

data security + uncertainty

about ownership of data



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ROADMAP

What production managers expect …

Decentralized steering

Additive mfg.

Overall

Modular production line

Multidirectional layout

Smart robots

Collaborative robots

Sustainable production

Big data & analytics

Augmented reality

Production simulation

Plant

structure

Plant

digitization

Plant

processes

Short term

2016-2020

Medium term

2020-2025

Long term

2025-2030

Implementation

Preparation / pilots

Cont. improvement



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ACCELERATING THE START

BCG proposes to start with a holistic I4.0 health check …

Source: BCG

PROJECT EXAMPLE

Comprehensive I4.0 health check at plant level


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Self-organizing production

Line automatically coordinates and

optimizes utilization asset-by-asset

Predictive maintenance

Remote monitoring via sensors allows

for repair prior to breakdown

ACCELERATING THE START

… followed by selecting from already proven use cases

Industrial internet

New product line simulation

Novel software allows for virtual

assembly line simulation & optimization

Simulation

Self-driving logistics vehicles

Fully automated transportation systems

navigate smartly within the factory

Autonomous robots

Big Data-driven quality control

Algorithms reduce product failures by

correlating outcome to quality data

Big Data and analytics

Smart supply network

Monitoring of entire supply network

allows for better supply decisions

Software integration

Source: BCG


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Please reach out in case you have any questions, comments,

or would like to discuss the topic further

Thank you!Benjamin Fingerle

Principal, Bangkok

Industrial Goods & I4.0

[email protected]


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roadmap to industry 4 - thailand management association · 2018-09-13 · tma - roadmap to industry...

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