Magnus Ekbäck, VP Strategy and Business Development Sandvik Coromant

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1 How digitalization will reshape discrete manufacturing Magnus Ekbäck, VP Strategy and Business Development Sandvik Coromant

2 Presentation Outline The Change The Journey The Value Chain The Digital Thread Questions & A nswers

3 Five mega trends Globalisation Urbanisation and growing wealth Challenging demographic trends Sustainability Information and communication technology ( ICT )

4 Trends influencing Discrete manufacturing Increasing information demand Growing customer skills gap Manufacturing Industry Digitalization Tooling decisions in design and planning stage Demand for business sustainability

5 Challenges in the industry brings opportunities for digitalization Automation To be competitive on the market our customers must increase their level of automation Reduce waste Reduced time, resources, consumables and to get it right from the first component makes our customers competitive on a global market Skills gap More advanced machines and programming strategies, difficult to source competence Cost and Quality Control Increased customization, smaller batchesand shorter lead times requires cost traceability and produce the right quality for our customers to be competitive

6 Customer pain points Key sources of waste along the machining value chain Indexed: input = 100 TOP - DOWN ESTIMATES Phase: Define product Define process Execute % % % Input Suboptimal design Product definition Wrong process & operation Wrong tooling & path Process plan Unscheduled machine time Unproductive machine time Excess operation costs Scrap & rework Output Source: Customer benchmarks, expert interviews, SMS PA material

7 Digital Maturity Journey EMERGING FOUNDATIONAL SCALING HIGH PERFORMING INNOVATIVE Acknowledging the need, Realization Establishing the fundamentals Build the org and processes to Scale Established business becomes a RUN operation Digital Trendsetter for the industry

8 Resource intense and manual work to optimize design, processes and machining operations due to poor input data quality

9 Delivering towards the our Vision Today Data driven insights and decisions due to the Tomorrow

10 transparency of data for improved utilization of resources, machine tools and cutting tools

11 Customer value chain Typical value stream Design Process Planning Design and planning Operations Planning Production Logistics Preparation Machining Machining Verification Verification

12 Realisation towards Industry 4.0 Self learning, smart factories Autonomous Self learning technology enabling autonomous factories Process security, predictive process, closed loop Adaptive Insights driven preventive and predictable process management. Data driven decisions, transparency Descriptive Digital technology for visualizing production processes.

13 Design & Planning Providing our customers with operation planning, optimized methods and digitalized metal cutting knowledge enabled by high quality product data. Design & Planning Quotation efficiency Operation planning efficiency Programming efficiency Tool and cost management

14 Machining Improving efficiency and process control by visualizing data and increasing automation using adaptive solutions and insights automating quality verification. Machining Automated quality verification Shop floor efficiency and insights Process control and machining efficiency Predictive Maintenance

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16 Close to device computing Intelligent Tools Local User interface Live data CNC Machine APIs ( e.g. High - speed, Focas, MTConnect, OPC) Source connectors Intelligent Tools connector Machine connector Data Processing / Edge Intelligence Time sync Stream Analytics Destination connectors End Point ( cache or transport ) To/from Shopfloor & Cloud CNC machine example External sensor Sensor connector Edge components

17 Service Enablement Platform

18 Questions Shaping the future together

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