Digital transformation at ArcelorMittal Europe - what, why and how we re doing it

Transcription

1 Digital transformation at ArcelorMittal Europe - what, why and how we re doing it Wim Van Gerven CEO ArcelorMittal Europe Flat Products, business division north Europe media day 2017 Paris, 28 November

2 Industry 4.0: a definition The next phase in the digitalisation of the manufacturing sector, driven by four disruptions: the astonishing rise in data volumes, computational power, and connectivity, especially new low-power wide-area networks; the emergence of analytics and business intelligence capabilities; new forms of human-machine interaction such as touch interfaces and augmented-reality systems; improvements in transferring digital instructions to the physical world, such as advanced robotics and 3-D printing. Credit: McKinsey s Manufacturing s next act

3 Predictability and adaptability how we ve moved on from Industry 3.0 Industry 4.0 Maturity Index Computerisation Connectivity Visibility What happens? Industry 4.0 Transparency Why does it happen? Predictability What will Happen? Adaptability How can autonomous, self-optimising reactions take place? Development path from Industry 3.0 to Industry 4.0 This slide is adapted from research by The University of Aachen

4 Digitalisation: the value creation possibilities are infinite Health & safety Maintenance & reliability Production & quality Handling & logistics Supply chain Customer & supplier link Finance HR Infrastructure: wifi/broadband, cyber security, storage, computing, cloud Big Data: data capture, data platforms, machine learning and analytics Devices: cameras, drones, sensors, beacons, tags, smartphones, tablets, HoloLens Skills: awareness, mindset, agile, design thinking,open innovation Infinite possibilities

5 New technologies - our complex business stands to gain the most The virtual mill: One virtual organisation for all of ArcelorMittal Europe Flat Products Borderless digital ecosystem: online, up-to-date, one truth Tailor-made services: full online tracking, pro-active, exception handling; big data analysis

6 Flat Products business transformation where does digitalisation fit in? Engaging our customers Optimising our operations Digital transformation enables and accelerates Flat Products business transformation Empowering our employees Transforming our products, services and solutions

7 Why are we investing in digitalisation? Competitive advantage Having a diversified product pallet with available volumes, to meet customer needs On-time delivery and short lead times Product quality in line with what customer has asked for, no surprises Cost efficient in production and logistics Innovative in developing new applications or steels

8 ARTHUR - our big data platform

9 Who are we working with?

10 Industry 4.0 what does it bring to the steelmaking process? Big data architecture: store all data, images, etc. Analytics: solve complex issues to optimize quality, process and logistics Internet of Things beacons and sensors: to track, measure, follow assets & people Cyber physical systems, digital twins: for training and commissioning Vertically integrated IT & automation Mobile & wearable devices: maintenance, safety & production tasks Drones and robotics: for use in hazardous conditions Virtual reality: train people, optimize design of tools Smarter cameras: replace physical measures by contactless & high precision Smart PPE: measure environment and health conditions, alert 10

11 Blast furnace network Real-time remote monitoring of blast furnace parameters Integrated with key models and expert guidance systems Facilitates early detection of process problems Enables global process experts to collaborate in real time Identifies the appropriate action at the right time Facilitates sharing of best practices Supports development of a universal knowledge-base

12 Digital twins - coils that communicate Quality defects are marked with a barcode on the coil and linked to a digital twin of the coil in the cloud Meter-accurate barcode Generate quality data file Central interface of QT information system Customers can automatically scan the bar codes, access the quality data from the cloud and optimise their operations with this knowledge Digital twin of coil (CDC) Control of sorting unit Galvanising line STEEL PRODUCER Quality measurement device Printer- Reading unit Coiler Final part with marking Benefits: eliminates waste and optimises productivity Coiler Scanner Blankline Blank- Sorting Press shop CUSTOMER

13 Automated cranes

14 3D printing developing the opportunities

15 Digitalisation is helping to improve safety

16 Research and development on digitalisation and Industry 4.0 Ghent Avilés Montataire Reims Luxembourg Maizières Olaberria Dąbrowa Górnicza Fos-sur-Mer

17 What s our digital relationship with our customers? Automated transactions Examples: EDI, automated order scanning, e-invoicing 99% order confirmations sent electronically 60% invoices are paperless Supply chain visibility Steeluser.com portal for order follow-up, alerts, documents, certificates, customer service and more. 90% customers use steeluser.com daily New mobile apps and web services SteelAdvisor app Quality app Track&Trace app Constructalia web portal thousands of daily customer contacts

18 What does digitalisation mean for our employees? Top 200 managers should be: Digital leaders Able to identify digital opportunities for value creation and differentiation Able to drive development of new capabilities for the business, and disruptive innovation People involved in digitalisation projects should be: involved in active learning in addition to what they re learning on the job, through being part of the digital communities within ArcelorMittal Be one of three levels: Aware, Practitioner, Master All Flat Products employees should: Develop and learn digitalisation skills, regardless of their role For new employees: possess the minimum level of digitalisation capabilities as stated in hiring selection criteria

19 Conclusion Our vision: a fully digitalised enterprise where everything is connected, to the advantage of our production, our customers and our employees. Digitalisation, with the right focus, brings competitive advantage, vital in today s highly competitive environment We know that we ve been an early adopter of digitalisation, and we are ensuring that we continue to move fast We have a highly talented workforce; together with our scale and scope, we can remain ahead and lead the industry in the future of steelmaking.

20 Q&A