Research association Industrie 4.0
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1 Research association Industrie 4.0 Fraunhofer Forum: Applied Innovation in Smart Factory and Energy Berlin, 27 October, 2014 Prof. Dr.-Ing. Thomas Bauernhansl Director Institute for Industrial Manufacturing and Management IFF, University of Stuttgart Institute for Energy Efficiency in Production EEP, University of Stuttgart Fraunhofer Institute for Manufacturing Engineering and Automation IPA, Stuttgart
2 Index of Productions cost 2014 Production costs converge +20 % -20 % Source: Boston Consulting Group
3 Product volume per variant On the edge of the fourth industrial revolution Increasing complexity leads to new added value systems e.g. VW Käfer e.g. BMW online car configurator Mass Production e.g. Smartphone for Africa People can have the Model T in any colour so long as it's black. Henry Ford (1913) 1850 e.g. 3D-Print According to Yoram Koren: The Global Manufacturing Revolution; Source: Ford, beetleworld.net, bmw.de, dw.de Product variety 3
4 Germany's starting point Leading in machinery and plant manufacturing industry Internationally acclaimed IT competency Leading in innovative embedded systems and automation engineering Qualified and highly motivated employees Concise and intensive cooperation between provider and end user Strong and capable research and training institutions Unlike any other country Germany is in a pole position to start a new form of industrialisation: Industrie
5 Changing paradigms Passive production systems requiring advanced planning turn into self-organising, intelligent production units Interconnectedness of all entities involved in the value creation Availability of real-time information Organisation and steering of the value chain across the entire product life cycle Dynamic, real-time-optimised and self-organising value networks across company boundaries Source: Final Report Industrie 4.0, Siemens
6 The potential of the Industrie 4.0 initiative Meeting individual customer requirements Individualisation and mass production becomes viable Production is highly flexible, highly productive, sustainable and compatible with urban life Value creating processes are optimised on-demand and in real-time Resource productivity and efficiency Work-Life-Balance and a human-oriented work organisation Adapting to the demographic change at the work place with intelligent assistance systems The existing systems can be upgraded step by step Source: Final Report Industrie 4.0, Hewlett-Packard 2013 Competitiveness is secured in a high-wage economy 6
7 Increasing Degree of Fragmentation and Integration leads to highly complex products degree of integration simple complicated complex Minimal complexity and maximum personalization and scale effects Customer bears personalization complexity and pays for it Innovation focus: eco system, user friendliness, design mass products standard individualized regionalized, personalized degree of fragmentation Sources: Wildemann, H.: Wachstumsorientiertes Kundenbeziehungsmanagement statt König-Kunde-Prinzip; Seemann, T.: Einfach produktiver werden Komplexität im Unternehmen senken; Source of the picture: apple.de 7
8 The Next Step of Decentralization From fractal factory to cyber-physical production system Cyber-Physical Systems Embedded Systems (part of devices, buildings, vehicles, transport routes, production facilities, medical processes, logistics, coordination and management processes) Internet services Features: Acquisition of actual physical data by means of sensors Usage of worldwide available data and services Data analysis and storage Networking by means of digital communication technology Operation in the physical world by means of actors Usage of multimodal manmachine-interfaces acc. to ACATECH,
9 Management of Context Replaces Operative Planning Smart Factory organizes itself operationally I have to be at the goods issue in 2 hours! I can work on Saturday. I need to go home now. Who can take over my orders? I'm booked out till friday! Sorry, I'm not available on Saturday. Magazine will be empty soon, please refill! Cyber-physical systems (e.g. machines, facilities) have an identity communicate with each other and with the environment configure themselves (Plug and Produce) store information New big order, we need an extra shift on saturday decentralized self-organization 9
10 Smart Factory at the centre of Industrie 4.0 Industrie 4.0 will involve the technical integration of CPS into manufacturing and logistics and the use of the Internet of Things, Data and Services in industrial processes. Similar to a social network, people, machines and resources are communicating in the Smart Factory. Its interfaces with Smart Mobility, Smart Logistics and Smart Grids will make the smart factory a key component of tomorrow's smart infrastructures. Smart Factories produce Smart Products. Source of the graphic: Abschlussbericht Industrie
11 Assessment of the Industry 4.0 Readiness Germany as Frontrunner has the best position in Europe Source: Roland Berger, Strategy Consultants, March 2014 ²Adjusted for outliers Cyprus, Latvia, Luxemburg, Romania, Greece 11
12 Economic potential through industry 4.0 Increase gross value added of 15% to 30% is possible by 2025* Bitkom/IAO expect additional growth of 1.7 %/a by 2025 John Chambers, CEO Cisco: 2 % additional growth per year for the German economics ** German companies planning to invest 40 billion in the next 5 years*** Source: * Bitkom/IAO 2014, ** sueddeutsche.de, *** PwC Studie 2014, wiwo.de 12
13 Potential of Integrated Industry Industry 4.0 Specialists expect an increase of overall performance of % in value creation Estimation of Potential Benefit Project of Bosch: complete distribution process was newly structured through an in-plant logistics center in an Industry 4.0 project -10 % Milkruns +10 % Produktivität -30 % Lagerabbau Source: IPA/Bauernhansl, Bosch 13
14 Industry 4.0 technologies in the manufacturing sector Technology integration is still at the beginning How are data used today? Data from construction to real-time monitoring of production Data from production for preemptive Maintenance v ata analysis to forecast/simulation behavior of customers % 20% 40% 60% 80% 100% In use Not planned, but interest No specification Planned Rather uninteresting Source: For the implementation of the survey IT Innovation Readiness Index is Pierre Audoin Consultans (PAC) responsible. Client is Freudenberg IT (FIT). 14
15 Industrie 4.0: Further research Horizontal integration via value creation networks Seamless enginnering throughout life cycle Methods for new business models Methods for Framework value creation networks Automation of value creation networks Integration of real and virtual worlds Systems engineering Vertical integration and networked production systems Sensor data analysis and derivation of data-based process control system Intelligence Flexibility Adaptability New social infrastructure for work Multimodal assistance systems (human-machine-interaction) Acceptance of technology and nature of work Continuous development of hybrid technologies Wireless communication for Industrie 4.0-scenarios Security & safety Industry 4.0 platform with reference architectures and decentralized serviceoriented architecture Source: Whitepaper of the Working Group 3 and the Committee, April
16 How does Germany compare with the rest of the world? Various countries have identified the Internet of Things as strategic challenge for the future of production. The modernisation of the manufacturing industry is promoted through a range of institutional and financial measures: The US government increased the funding for industrial research again in 2014: Advanced Manufacturing Partnership (AMP): $ +50 million Cybersecurity R&D and Standards: $ +45 million Cyber-Physisical Systems: $ +40 million National Network for Manufacturing Innovation (NNMI): $ 1 billion Public-Private Partnerships, e.g. Industrial Internet Consortium (including AT&T, Cisco, GE, IBM and Intel) By 2015, China will have provided Euro 1.2 Billion to achieve global technology leadership (for example in High-end equipment manufacturing). In July 2014, the Chinese Ministry of Industry and Information Technology (MIIT) founded the Chinese Alliance for Connecting the Internet and the Industry in order to promote the digitisation of sales and the intensive application of IT-technology in the production process. The EU promotes a number of initiatives for implementing the Internet of Things in the production sector. Currently, more than 9 billion Euros are provided. 16
17 Publication of the strategic recommendations at CeBIT 2013 Final recommendations for implementing the strategic initiative Industrie 4.0 have been handed-over to chancellor Merkel in April 2013 Proposal of a dual strategy with eight identified fields of action Initiation of the Plattforim Industrie 4.0 with 14 companies and the scientific advisory committee Primary objective: Securing the future of German manufacturing industry 17
18 Successor of the Working Group Industrie 4.0: Plattform Industrie 4.0 Governing Board (GB) Secretariat (Sec.) Steering Committee (SC) AG 1: Strategy, Framework AG 2: Reference architecture, standardisation AG 3: Resarch, innovation AG 4: Security of networking systems Scientific Advisory Committee (SAC) Balanced participants (IKT, electronics, mechanical engineering) Source: Wissenschaftlicher Beirat der Plattform Industrie
19 The functions of platform Industrie 4.0 Steering Committee and Governing Body: Dr. Siegfried Dais, Bosch Scientific Advisory Committee: Prof. Dr. Reiner Anderl, TU Darmstadt AG 1: Strategy and Framework Spokesperson: Thomas Schiemann, Deutsche Telekom AG AG 2: Reference architecture and standardisation Spokesperson: Roland Heidel, Siemens AG und Friedrich Vollmar, IBM Deutschland GmbH AG 3: Resarch and innovation Spokesperson: Johannes Diemer, Hewlett Packard GmbH AG 4: Security of networking systems Spokesperson: Dr. Lutz Jänicke, Innominate Security Technologies Status: October
20 Initiation of funding programmes Federal Ministry of Education and Research: 63 Projects, including 26 individual projects, 33 projects within the leading-edge cluster It's Owl 4 Projects within the ERANET-MANUNET network Federal Ministry for Economic Affairs and Energy: 15 Projects, 4 cross-sectional topics Legal framework IT security The Future of work Standardisation 20 20
21 17 insights into the future from the Scientific Advisory Committee 21
22 Your contact for Scientific Advisory Committee: Prof. Dr.-Ing. Reiner Anderl Co-chair +49 (0) Prof. Dr.-Ing. Thomas Bauernhansl Co-chair +49 (0) Ariane Hellinger, M.A. Coordination at acatech +49 (0)30/
23 Thank you for your attention! Prof. Dr.-Ing. Thomas Bauernhansl
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