How to Apply Digitization in Smart Machine & Factory. Digitization. Albert Kim / PhoenixContact Korea

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1 How to Apply Digitization in Smart Machine & Factory Digitization Albert Kim / PhoenixContact Korea

2 Degree of complexity Industry 4.0 Evolution of Manufacturing End of 18th century Mechanical production Industry 1.0 Begin of 20th century Line production Industry 2.0 Begin of 1970s PLC-based automation Industry 3.0 Today Intelligent networked automation Industry _03_29 I Albert Kim I Phoenix Contact

3 Digitization Digitization will cover Industry and areas Folie 3

4 4 2018_03_29 I Albert Kim I Phoenix Contact

5 Relevant trends in Smart Factory Predictive Maintanance Networked production Industrie 4.0 Smart devices Remote Services Internet of Things Big Data Analytics _03_29 I Albert Kim I Phoenix Contact

6 Trend: Communication with smart devices 94% use Ethernet 10% use Tablets 67% Plan to use Use of smart devices _03_29 I Albert Kim I Phoenix Contact Quellen: Marktstudie Maschinenbediehnung 2016, Rothhöft Maschinenbau-Initiative ICE

7 Trend: Communication with mobile systems Conveyer systems Cranes Shuttles Smart devices _03_29 I Albert Kim I Phoenix Contact AGVs Moving machine systems

8 8 2018_03_29 I Albert Kim I Phoenix Contact

9 Industry 4.0 Challenges for Manufacturing Industry Increasing product variety Short lead times Flexible lot sizes Transparent and controlled processes Time-consuming processes in engineering, set-up, configuration and parametrization Waiting times and inventories _03_29 I Albert Kim I Phoenix Contact Insufficient transparency in processes

10 Digitization The Disruptive Factor The disruptive factor DIGITIZATION _03_29 I Albert Kim I Phoenix Contact

11 The phase of digital omnipresence Digital dawn Computers develop and penetrate professional and private applications Digital breakthrough The Internet becomes universal For the first time, digital information storage is more powerful than analog information storage Digital omnipresence Convergence of telecommunications/ computers (smartphones, Internet of Things) Revolution of the user interface (touchscreen) Boom of disruptive business models Technological singularity Artificial intelligence surpasses human intelligence and accelerates the technological progress ?? _03_29 I Albert Kim I Phoenix Contact

12 _03_29 I Albert Kim I Phoenix Contact The world is changing due to digitization!

13 Digitization is changing the world Internet of Things Source: Cisco IBSG, April _03_29 I Albert Kim I Phoenix Contact

14 Digitization is changing the world Rome, 2005: Death of Pope John Paul II. Believers watching large displays Source: _03_29 I Albert Kim I Phoenix Contact

15 Digitization is changing the world Rome, 2013: Resignation of Pope Benedict XVI. Digital Involvement! Source: _03_29 I Albert Kim I Phoenix Contact

16 Digitization is changing the world Paradigm Shift in Automation New ways of thinking automation Intelligent and globally networked machines and plants Business moving faster Our customers need a high degree of flexibility short reaction times capacity to quickly adapt to new market requirements _03_29 I Albert Kim I Phoenix Contact

17 Digitization is changing the world Dissolution of Classical Automation Structures Hierarchical systems become open and flexible networks Cyber-physical systems new roles for automation devices Yesterday Today Tomorrow _03_29 I Albert Kim I Phoenix Contact

18 _03_29 I Albert Kim I Phoenix Contact All this is true - however, not really sufficient

19 There are more challenges to be met! Further trends & topics? _03_29 I Albert Kim I Phoenix Contact

20 Digitization is changing the world Again: Digitization changes the World Comprehensive digitization facilitates virtually unlimited availability of data of all connected things Basis for (new) business models Classical industry branches are shifted towards a new distribution of value-added shares Differentiation increasingly takes place via webbased services Increased risk for disruptive changes which might endanger our long-term business _03_29 I Albert Kim I Phoenix Contact

21 Digitization The drivers of the current digital revolution Sensors Information processing Networks (connectivity) Interaction Measuring of changes in a system Structured handling of massive amounts of data Linking of different elements Reciprocal influences between players _03_29 I Albert Kim I Phoenix Contact

22 Hardware & 2 Software _03_29 I Albert Kim I Phoenix Contact

23 Digitization Digitization leads to disruptive changes Digitization of the value added chain Only those providing a virtual representation of their production results will be able to be a part of this chain in the future _03_29 I Albert Kim I Phoenix Contact

24 Industry 4.0 requires Digitization Digitization is the basis... for the intelligent networking of business processes, things, plants, components and people and is the key to future success _03_29 I Albert Kim I Phoenix Contact

25 Industry 4.0 requires Digitization Digitization is a basis for ubiquitous availability of information: Digital Twin networking of machines, products and people: Internet of Things new business models and processes new collaboration models Smart Factories, Smart Products and Smart Services _03_29 I Albert Kim I Phoenix Contact

26 Industry 4.0 requires Digitization Digitization Industry 4.0 will consequently digitalize the value chain A Digital Model the Digital Twin will exist in all phases of the value chain The required an necessary integration of engineering tools und data models can be realized starting today _03_29 I Albert Kim I Phoenix Contact

27 Consistent digitization of the entire value added chain Smart Engineering and Production (SEAP) Product engineering E-CAD engineering Data source E-shop Customized product _03_29 I Albert Kim I Phoenix Contact ERP/ Control Digital item

28 Industry 4.0 requires Digitization The Digital the core of Industry 4.0 Customer benefit and user experience Digital Product Physical Product Digital Value Stream Lean business and work processes Physical Value Stream Global or Multiple Factory Network _03_29 I Albert Kim I Phoenix Contact

29 PLM system Perspective Phoenix Contact What do we expect from Industry 4.0? Vertical integration of business processes for the manufacturing of individual products Customer s wish Configurator Online shop Complete digital product description Automated generation of production orders ERP system MES system Machine Control System Delivery Optimal shopfloor scheduling Automated parametrization Transparency about the order status _03_29 I Albert Kim I Phoenix Contact

30 Perspective Phoenix Contact What do we expect from Industry 4.0? Flexibility, efficiency and transparency along the value chain and the product life cycle Components Production systems Fast prototypes Virtual development and optimization One piece flow Efficient logistics Transparency over the status Self-optimization Easy set-up and operation Easy adaptation to quantities and variants Availability of all relevant information _03_29 I Albert Kim I Phoenix Contact Engineering Production Operation Service

31 Driver for new business models Digitization leads to disruptive changes Unlimited data availability Only those who develop new business models using the data of networked things will have their share in the redistribution of proportions of value added _03_29 I Albert Kim I Phoenix Contact

32 Driver for new business models Digitization leads to disruptive changes Product functionality as a service Dissolution of the fixed link between the physical object and its functionality in cyber space. Differentiation will take place via services from the web _03_29 I Albert Kim I Phoenix Contact

33 Big data The unlimited availability of information The greatest potential for changes caused by digitization does not lie in an increase of productivity, but in new, data-centric business models. (Roland Berger) The machines of the future will not run on oil anymore, they will use data. (Jack Ma, Alibaba) Data is like crude oil, refinement is the key to the business model _03_29 I Albert Kim I Phoenix Contact

34 Data and analytics application examples Predictive maintenance Benefits: Reduces critical downtime Avoids unscheduled servicing costs Boosts productivity Reduces the costs for the provision of replacement parts Data analysis Correlation between operation, configuration, and settings of the production system and downtime. Identification of the factors leading to downtime. Derivation of algorithms by means of which even short breakdowns can be predicted _03_29 I Albert Kim I Phoenix Contact

35 Services First Step into the cloud based automation From PROFINET to PROFICLOUD Research Developement Construction Rapid Prototyping Usage & Service Recycling Scrapping Factory Enterprise Resource Planning Factory Vertical Integration Horizontal Integration Seamless Engineering Humans conduct Services Services Realtime PLC Programing Engineering _03_29 I Albert Kim I Phoenix Contact

36 First Step into the cloud based automation Platform PLCnext Cloud / computing-intensive applications A C B D 3rd Party Controls / IoT Devices T 1 T 2 T S 10ms 100ms 10s Field (I/O) A B C D _03_29 I Albert Kim I Phoenix Contact System-/status-/PLM-data (activated via app from sensor-/actuator supplier)

37 enhance your automation thinking

38 Platform PLCnext Technology What is PLCnext? _03_29 I Albert Kim I Phoenix Contact

39 Platform Proficloud Integration of smart devices and services Predictive Maintenance Virtual Resources Database Third Party Devices Big Data Internet Services Global Access _03_29 I Albert Kim I Phoenix Contact

40 Secure networking mguard Security: Secure machine communication Protection of machines and plants against threads and unauthorized access Secure remote maintenance and monitoring via Internet through VPN tunneling Integration of machines and plants in production networks _03_29 I Albert Kim I Phoenix Contact

41 Practical applications Configurable products Configuration of product parameters in web shop Transfer of configuration data: Web shop ERP production Usage of configuration data in production 2018_03_29 I Albert Kim I Phoenix Contact 41

42 Practical applications Intralogistics Application Digital request of material, production resources, services High transparency and engagement SAP integration (transfer orders, label printing) Implemented at several hundred work places (PxF, TT, DC, ICC-RUS) Based on MaRVIN software platform _03_29 I Albert Kim I Phoenix Contact

43 Intelligent Manufacturing at Phoenix Contact Summary With Industry 4.0, value chains and product life cycles will be completely digitized. The integration and further development of standards like and AutomationML enables a fully digital representation of products in all levels of added value. Using digital product descriptions, it will be possible to optimally support and to automate important processes in engineering and production _03_29 I Albert Kim I Phoenix Contact

44 Please visit our booth! PHOENIX CONTACT Booth No: B100 (3 층 Smart Factory Expo 정문입구 ) ILE Unit (Individual Laser Engraving Unit)