The Fastems Digital Journey June 17

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1 "AUTOMATION FROM VISION TO PRACTICAL APPLICATION " The Fastems Digital Journey June 17 Tomas Hedenborg, CEO

2 Agenda Perspectives of reflection and big picture Who is Fastems? Culture and leadership as enablers Views on digitalization of manufacturing The 8760 dilemma Agility demand and response

3 CURRENT MATURITY OF DIGITALIZATION drives digital transformation/

4 THE ADOPTION AND IMPACT PATH OF THE INDUSTRIAL INTERNET

5 FACTORY AUTOMATION SYSTEMS

6 SOUNDS BRILLIANT, 4,000 SYSTEMS WORLDWIDE 8,200

7 FASTEMS WORLDWIDE A privately held company founded in 1901 with world headquarters in Finland, Fastems operates in nine European countries, the United States, Japan and China, with manufacturing facilities in Finland and Germany. Seattle, WA Chicago, IL Los Angeles, CA West Chester, OH Atlanta, GA New York Tampere Kungälv St. Petersburg XH Valkenswaard Dartford Issum Göppingen Lyon Milan Shanghai Tokyo Austin, TX Annual Sales: 70 Mio. Employees: 350 Systems sold to: Over 40 countries Sales office Regional office Development center

8 The Foundation... STRATEGY, CULTURE, LEADERSHIP

9 FASTEMS ROLE... in serving the customer Improve customers competitiveness through automation Being with our customers 8760 hours in a year, providing more value for their time Creating the attractive jobs of the future Radically change the way solutions are built and served using industrial internet and software Create possibilities for value adding by using new emerging technologies and process innovation Applying robotics on every level of the manufacturing value chains

10 FASTEMS COMMITMENT Manners of Our Culture

11 FASTEMS LEADERSHIP Delight and Deliver

12 Some Technology Stuff... FASTEMS SOLUTION PORTFOLIO

13 Case MTU Aero Engines Airbus 320 NEO engine blisk manufacturing MTU challenge For 25 years MTU thought that manufacturing intensive production can t be profitable in the high cost Bavarian area. The solution Automating manufacturing and workflow management with software and hardware. The consequence Fastems is mission critical for Hall 077 and subsequent assembly by choice of the customer

14 MMS integrates manufacturing execution, not only automation ERP MES Orders, part data Production feedback Material Inventory CAD CAM NC programs PDM Production documents Reporting OEE, Production feedback Automa tion Control of production automation Remote Services Virtual FMS, Condition monitoring Material mgmt Material storage Material logistics / automaiton Machine tools & Robot cells ALSO stand alones! Program select/start Machine status NC programs Tool data Tool mgmt Tool data management system Nominal values Tool offsets (Presetting device)

15 MANUFACTURING DIGITALIZATION in practice Based on real time data, production orders are simulated and optimized into the production schedule, then outcome is executed. Any change in production assets (data, resource or machine status) triggers an updated simulation. real time data based production schedule for coming days!

16 Conclusions and Actions... THE FASTEMS APPROACH

17 FUTURE DEFINITION OF SCOPE E2E D2D E2E End to End: whole supply chain D2D Door to Door: one factory DOMAIN machining + supporting processes, quality mgmt, interim logistics Fastems manufacturing systems and cells DOMAIN PRODUCTION AUTOMATION FACTORY LEVEL PROCESSES DOMAIN PROCESSES DOMAIN PROCESSES FACTORY LEVEL PROCESSES

18 From data to value Copyright:

19 How to get it all without making a mess

20 Doping Kitchen Pilot Customers Requirements Co operation Feedback CEO & Management team Commitment Vision Priorities Sprinter Team Doping Kitchen Ensures ambition level Invests burn rate approach Removes blockages Line Organization Resources Ideas External Partners Resources Ideas Research partners Software vendors Start ups Sprint method Dedicated alchemists Doping Doctor MES Star Q Enabler sprints Customer offering sprints

21 Doping Kitchen Principles No budget burn rate Fail, or you have not tried hard enough Get customer(s) involved Experiment MVP (Minimum Viable Product) Don t mix with marathon mode, synchronize

22 Real life example 10 May 2017

23 From data to value Copyright:

24 Good news from the USA Some alternative facts... AI vs. NS

25 IoT is not (just) about technology & business models. Technology & Business models Culture Performance management Leadership

26 Conclusions IIoT is not about technology, it s about strategy Change promoting mindset, culture and leadership are mandatory Radical challenge of legacy for disruptive leaps Organize and manage for agile development

27 Thank You