Making IoT / Industry 4.0 implementation a success through the alignment of culture, technology, strategy and people

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1 Making IoT / Industry 4.0 implementation a success through the alignment of culture, technology, strategy and people Product Innovation Berlin 27 th February 2017 Heiko Witte Head of Engineering Improvement & Quality 2017 Rolls-Royce Deutschland Ltd & Co KG The information in this document is the property of Rolls-Royce Deutschland Ltd & Co KG and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce Deutschland Ltd & Co KG. This information is given in good faith based upon the latest information available to Rolls-Royce Deutschland Ltd & Co KG, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce Deutschland Ltd & Co KG or any of its subsidiary or associated companies.

2 VIDEO 2017 Rolls-Royce Deutschland Ltd & Co KG The information in this document is the property of Rolls-Royce Deutschland Ltd & Co KG and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce Deutschland Ltd & Co KG. This information is given in good faith based upon the latest information available to Rolls-Royce Deutschland Ltd & Co KG, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce Deutschland Ltd & Co KG or any of its subsidiary or associated companies.

3 Trusted to deliver excellence Rolls-Royce Proprietary information 3

4 Trusted to deliver excellence Rolls-Royce Proprietary information 4

5 Big Data is our business We process 8 million data points per day Rolls-Royce proprietary information 5

6 Digital and Industry 4.0 in Rolls-Royce 6 Jointly with our partners, we aim to apply the principles of Digitisation and Industry 4.0 to create future oriented hightech value-chains Trusted to deliver excellence Rolls-Royce Proprietary information

7 BDLI Model Basis for RR Strategy in Germany 7 Trusted to deliver excellence Rolls-Royce Proprietary information

8 Virtual Product - Simulation 8 More Simulation early in the Design Process More Detailed Simulation More multidisciplinary Simulation More System Level Design Explore the Design Space Improve Understanding Best Trade-off Virtual Product Rolls-Royce Proprietary Data

9 Industry 4.0 Rolls-Royce proprietary information 9

10 Factory 4.0 Technology Enhanced Learning, Training, PROF. DR.-ING. U. BERGER Chair of Automation Technology 10 Assistance Learning Training Assistance

11 Digital Factory Vision digital factory uses real time data and creates data (predictive) as a product that enables excellent processes/ product 11 Present Static and complex data retrospectively describes a process/ product Extract from current RRD A&T data landscape

12 How do we change towards a culture embracing IoT and Digitisation 12 Strategy clear and transparent led from the top Culture: Digital Cells Small projects actioned through sprints providing in-year benefits Use of Agile methodologies for product development Communication Value stream approach Activities: DigiTalks Cross-functional teams focused on product development and aftermarket Trusted to deliver excellence Rolls-Royce Proprietary information

13 PROJECT COORDINNATION Digital Cells 13 effect Digital BI Classic BI effort VIRTUAL ENGINE Project team Project team / TBD Digital Incubator team (Digital competencies, Analysts, growing capability) Project team INTERFACES TO ENTERPRISE SYSTEMS Project team SMART ASSEMBLY Project team INDUSTRY 4.0 Digital Services Hub Key External and Research Partner

14 Process Integration: LEAN-Flowline and Scrum Methodology Flowline Scrum-Methodology 14 Rolls-Royce proprietary information

15 Lean-Flow Line Lean thinking changes the focus of management from local optimization to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers. 15 Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Short Video on Lean-Principles: LeanBan

16 Scrum-Method 16 Scrum is a simple set of roles, responsibilities, and meetings that never change. By removing unnecessary unpredictability, we re better able to cope with the necessary unpredictability of continuous discovery and learning. ScrumBan Short Video on Scrum-Methodology: s/intro_to_scrum/intro_to_scrum.htm

17 Summary 17 Implementation of digital technologies requires culture shift and strategy adoption Value stream approach to implement digital technologies Linking digital technologies with Lean product development methods is key Focus for digitization is on Trusted to deliver excellence Rolls-Royce Proprietary information BETTER PRODUCT BETTER PROCESS NEW BUSINESS MODEL OPPORTUNITIES