1

2013

Scania Global Production System

Engines 75,000Gearboxes 70,000Rear Axles 82,000Cabs/Chassis 64,000Bus chassis 6,000

Regional Product Centres

Production units

Production EmployeesGlobally 13.600

Whereof in Sweden 6.800

Production units1891 Sweden

1957 Brazil1957 Brazil

1964 Netherlands

1976 Argentina

1992 France

1993 Poland

Production strategy• Strategic components concentrated and close to R&D• Final assembly close to market

3

10.300 employees in SödertäljeProduction of Strategic componentsR&DSales & Marketing

Everything in one place

Production and Logistics Sales and Marketing

Research and Development,Purchasing

Production in Sweden - prerequisites

5

• Accessibility to skilled employees. World-class national competence in relevant areas

• Rules and Regulations that gives flexibility - Quick adaptation to changing needs

• Production systems that provide continuous improvement - need of continuous

productivity increases

6

The smart Factory of the future

7

A hidden resource in the manufacturing industry is data.

85% of the data is still unstructured, 42% of all transactions on paper.

Data should be transformed into information to be used for making decisions.

Reduced waste of material, capital, energy and media is necessary.

Increased need for strategic

Data – a hidden resource

Increased need for strategic

data management

8

Drivers of change

� The low price of digital sensors and data storage

� The huge amount of information now available

� Advances in ‘big data’ software tools

� Advances in analytic techniques

� Data Mining provide the means to

understand the massive quantities of

data generated by intelligent devices.

9

A strategy from the German government for the future smart factory.

Industry 4.0 is the challenge to manage data, transform it into information

and make smart automated decisions

There is still a long way to go before these visions will become the practice.

Experts believe that it will be a reality in

Industry 4.0

Experts believe that it will be a reality in

10-20 years

10

From Industry 1.0 to Industry 4.0

Second industrial revolutionElectrically powered mass production

Production based on division of labour

Third industrial revolutionElectronics and IT for further

automation of manufacturing

Fourth industrial revolutionBased on Cyber-Physical

Systems. (CPS)

co

mp

lexityStart of

20th century

Start of

1970s

Today

First industrial revolutionWater- and steam-powered

mechanical manufacturing

Production based on division of labour

Time

co

mp

lexity

End of

18th century

The Internet of things and Services is coming to the manufacturing environment:

Technical integration of CPS into manufacturing and logistics and the use of Internet

of Things and Services in industrial processes.

11

Industry 4.0 – 4th Industrial revolution,

Entire value-added chain on the lifecycle of products.

Individualized customer wishes

Availability of all relevant information in real time

Description and vision of “Industry 4.0”

Availability of all relevant information in real time

The connection of people, objects, and systems

Dynamic, real-time optimized and self-organizing, cross-company value-

added networks

Source: Industry 4.0 Platform

12

But what is it and why now?

A product itself talks to a machine or robot, and tells it what to do next in the

production process.

The smart factory of tomorrow is based on products that will be able to

communicate and act autonomously within an intelligently networked

production process.

With Industry 4.0, components will be

produced in small quantities, and in produced in small quantities, and in

real time.

Intelligent sensors and complex

software are the glue of Industry 4.0.

13

IT Software: Truth

PLM systems

ERP systems

IT Hardware: speed

Cloud Storage

Local Storage

High Speed

Computing

Social Behaviour: PhysicalProductivity

Combination and Collaboration

Cyber

Social Behaviour:

Cooperation

Social communities

Business communities

Physical

systems

Automation

CIM systems

Cognitive systems

Productivity

Physic

al

Software Hardware

14

Examples from Scania

SupplierInbound

MachiningOutbound

CustomerInternal

AssemblySupplierInboundtransport

MachiningOutboundtransport

CustomerInternal

LogisticsAssembly

15

Line information system architecture – LISA“the twittering factory"

Information model and a modular system architecture that facilitates data

gathering regarding products and processes throughout the entire plant

16

18

Innovative transport solutions for the future

Connected Vehicles

19

Vehicle Specification Workshop

History

CustomerInformation

RoadInformation

TrafficInformation

OperationHistory

Route

Speed Profile

Driver

Vehicle

Assignment

WeatherInformation

20

Connected VehiclesOn the MarketOn the Market

“Fleet Management”“Fleet Management”

TomorrowTomorrow

“Connected Services”“Connected Services”

>130.000 Connected Vehicles

• Vehicle Status

• Driver Follow-Up / Driver training

• Cargo and Logistics Information

• Vehicle Position

• and more..

• Owner Support

• Site Management

• Transport Management

• Entertainment

• Engine power

• and more..

21

What happens in the world

The terms “Smart Production”, “Smart Manufacturing” or “Smart Factory” are used

in Europe, China and the US referring to digital networking of production

to create smart manufacturing systems

USA

Advanced Manufacturing Partnership (AMP) launched by President Obama 2011

Private-sector led body that brings together representatives of the research,

business and political communities

China

5-year plan, machine tools sector, development of “intelligent manufacturing

equipment”, “intelligent control systems” and “high-class numerically

controlled machines”

EU

Horizon 2020 – Factories of the Future

Digital, virtual and resource-efficient factories

22

• Standards

• Security and Safety

Major Challenges: