Digitalization. 09:15 10:00 COMOS User Day

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1 Digitalization 09:15 10:00 COMOS User Day

2 Megatrends Challenges that are transforming our world Globalization The volume of world trade nearly doubled between 2005 and 24.1 Urbanization By 2050, 70 percent of the world's population will live in cities (today it s 54 percent).3 Demographic change The earth s population will increase from 7.3 billion people today to 9.7 billion in Average life expectancy will then be 83 years.2 Climate change According to scientists, in the summer of 25, the Earth's atmosphere had the highest CO2 concentration in 800,000 years.4 Digitalization By 2020, the digital universe will reach 44 zettabytes a tenfold increase from 23.55

3 Digitalization transforms our world New business models and platforms creates new business

4 Digitalization transforms our world Industry is also affected and has already changed

5 What's next?

6 Digitalization transforms our world What s next? * Boston Dynamics YouTube Channel

7 Digitalization transforms our world What s next?

8 Digitalization transforms our world What s next?

9 Digitalization transforms our world What s next?

10 Digitalization transforms our world What s next? Credits to

11 Drivers in the Process Industry FEED Basic Engineering Detail Engineering Construction & Commissioning Operation & Maintenance Modernization & Revamp Shutdown CAPEX with focus on TCO 2-3 years + warranty OPEX Total lifecycle cost >15 years Time to market Flexibility Efficiency Quality HSSE Ramp-up of plant Fast innovation More complex products Technology Lifecycle Predictability / Reactivity Individualized mass production CAPEX / OPEX reduction Asset Efficiency & Reliability Standardization Closed-loop quality Traceability Supply Chain Integration Health & Safety Regulations Requirements Environmental protection Documentation

12 What to do?

13 An initiative of the German industry sponsored by the German Government This initiative has elaborated recommendations for the manufacturing Industry how to better prepare the future in order not to get out of the business Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

14 First Industrial Revolution Second Industrial Revolution Third Industrial Revolution Fourth Industrial (R)Evolution Based on the introduction of mechanical production equipment driven by water and steam power Based on mass production achieved by division of labor concept and the use of electrical energy (electrification) Based on the use of electronics and IT to further automate production (automation) driven by Digitalization, Integration and enhanced Flexibility 1784: First mechanical loom 1870: First conveyor belt, Cincinnati slaughterhouse, 1908: Ford T-Model 1969: First programmable logic controller (PLC) Modicon 084, Time

15 Industrie 4.0 Challenges and initiative Future challenges in industry Research areas Shorter time to market Increased flexibility in volatile, heterogonous, global markets Optimized productivity Energy and resource efficiency Mitigation of demographic change Continuous, safe and reliable operations Horizontal integration of the valueadd networks Vertical integration and networked production systems Seamless integration of the engineering along the entire life-cycle Cyber Physical Systems (CPS) Reference architecture model Integration of human creativity and innovativeness

16 Industrie 4.0 initiativ Research areas Horizontal integration of the valueadd networks Vertical Integration integration and networked production systems Seamless integration of of the the engineering along the the entire entire life-cycle Cyber Physical Systems (CPS) Reference architecture model Integration of human creativity and innovativeness

17 The Cornerstones of Industrie 4.0 also address challenges in process industries Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Long lifetime of a the assests (> 40 years) Existing assets with fragmented information in various formats and systems Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug & Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Focus of the complete lifecycle Integrated Engineering Integrated Operation Continuous, safe and reliable production Demographic change with digital natives Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

18 The Cornerstones of Industrie 4.0 also address challenges in process industries Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug & Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

19 The Cornerstones of Industrie 4.0 also address challenges in process industries Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug & Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

20 The Cornerstones of Industrie 4.0 also address challenges in process industries Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug & Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

21 The Cornerstones of Industrie 4.0 also address challenges in process industries Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug & Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 23 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

22 How do we do it?

23 Siemens terms its approach to Digitalization in industry and its way towards Industrie 4.0 the Digital Enterprise

24 Lets Plant have Design a look and on some examples Engineering from a digital enterprise Already today solutions supporting the complete lifecycle is available Integrated Operation

25 A critical prerequisite is to gather all data in a maintainable digital twin Process Electrical Operation Instrumentation Piping Automation

26 Seamless flow of information between systems and disciplines

27 Availability of information and proper tools to create, use and change it is a corner stone for digitalization

28 Potential for digitalization during Plant Design and Engineering Ready! 30% less time 20% reduced cost

29 Installation and Commissioning Integrated Operation

30 Seamless flow of data between engineering, test, simulation and control systems

31 Virtual simulation on the digital twin

32 results in an effective and smooth system start-up of the real plant

33 Potential for Installation, test & commissioning Start! 0369 Upp 80% time savings Significantly reduced risk for errors and accidents Substantial cost savings

34 Operation and Maintenance Optimization Continuous Improvements Integrated Operation

35 Continuous and effective update of changes ensures digital twin to be As-is Correct data is basis for decision support and shortened lead times limits Control parameters Control limits parameters

36 Communication from intelligent field devices enables information availability between all levels

37 and maybe also in new different ways

38 ..and is used for diagnostics, optimization and predictive maintenance and proactive detection of events

39 ...which is managed seamless from analysis, planning, execution to reporting

40 Availability to work orders, information and instructions regardless at any time and place XML

41 with ability to provide feedback and modification of data ensures that it is maintained and updated to As-is XML

42 Knowledge transfer using simulators for control room and plant to provide an experience based training with longer retention OTS (Operator Training Simulator) ITS (Immersive Training Simulator)

43 Consolidation of information and its relations enables proactive decision support based on real-time data and events

44 Operational benefits from decision and operation support Up to 8% reduction in the operating costs Up to 10,5% increase in production Better decisions based on available real-time KPIs and data

45 Todays available solutions supports interoperability, efficiency and optimization Integrated Operation

46 How does it look in reality?

47 Siemens organization in line with global trends Digital transformation Digitalization Business Analytics & Data-driven Services, Software & IT solutions Globalization Automation Steam & Gas turbines Distribution Grid Automation & Software Road & City Mobility, tolling Smart Buildings 'Digital twin' Software Key Verticals e.g. O&G, F&B, FI Image guided Therapy, Molecular Diagnostics, etc. Urbanization Demographic change Electrification Offshore & Onshore wind Complete portfolio for energy Transmission & Distribution Electric Transport & Infrastructure Energy efficiency, Security and Service Automation & Drive Technology Process Automation & Electrification In-vivo & In-vitro diagnostics Climate change Power generation Energy management Efficient urban mobility Intelligent buildings Shape Industry 4.0 Process Industries Next Generation Healthcare

48 Workflows in process / discrete industry differ Process Industries Digital Enterprise Discrete Industries Product design Processand plant design Engineering Operation Services Product design Production planning Production engineering Production execution Services Product design starts in the laboratory Process design P&ID Detailed engineering electrics, DCS engineering, piping, 3D plant design Sensors: temperature, pressure, flow, weight, analytics, Actuators: pumps/agitators, valve positioners, heating/cooling Hazardous/explosive environment Product design and Production planning in CAD/CAE Machine and Line Automation driven by mechatronic CAD/CAE Sensors : proximity, encoders, position, motion Actuators: hydraulics, servo-motors, linear drives Digitalization of the field level

49 Digital Enterprise is our portfolio of solutions for the digital transformation in both discrete industry and process industry Digital Enterprise Process Industries Discrete Industries Product design Process and plant design Engineering Operation Services Product design Production planning Production engineering Production execution Services Industrial Software and Automation for process industries Industrial Communication Industrial Security Industrial Services Industrial Software and Automation for discrete industries Digital Enterprise Suite Digitalization of the field level

50 Digital Enterprise Software Suite Discrete Industry PLM Teamcenter Digital Enterprise Backbone (cpdm collaborative Product Definition Management) NX (CAD-CAE-CAM) COMOS COMOS LMS (Simulering och testning) TECNOMATIX (DM - Digital Manufacturing) LMS MES/MOM QMS Quality Management System SIMATIC IT Manufacturing Execution System, Manufacturing Operations Management QMS TIA TIA Portal Engineering Framework SIMATIC / SINUMERIK SINAMICS/ SIRIUS Produktionsutförande Produktdesign Produktionsplanering Produktionsteknik Tjänster och support

51 Digital Enterprise is our portfolio of solutions for the digital transformation in both discrete industry and process industry Digital Enterprise Process Industries Discrete Industries Product design Process and plant design Engineering Operation Services Product design Production planning Production engineering Production execution Services Industrial Software and Automation for process industries Industrial Communication Industrial Security Industrial Services Industrial Software and Automation for discrete industries Digital Enterprise Suite Digitalization of the field level

52 Process Industries Design and Engineering Operation Service Digital Enterprise Product design Process and plant design Engineering and commissioning Operation Service From integrated engineering to integrated operation

53 Digital Enterprise for the process industry 1 Software SIMATIC PCS 7 / COMOS / SIMIT / XHQ NEW: Version 9.0 SIMATIC PDM for shorter commissioning and service times 2 Industrial communication networks Industrial Communication Portfolio for wired/wireless, remote and rugged communication 3 Security in automation Solutions for plant/network security and system integrity for integrated security 4 Business-specific industrial services MindSphere Siemens Cloud for Industry NEW: Connector Box for secure data transfer and cloud-based applications for data analysis

54 Siemens with comprehensive and seamless Digital Enterprise portfolio for process plants COMOS COMOS Walkinside XHQ Operations Intelligence SIMIT SIMATIC PCS 7

55 COMOS Data consistency through asset orientation End-to-end flow of data throughout the entire lifecycle All data related to the same asset forms a unit an object Modifications of object specifications are stored in a central, reliable and consistent database Making data work Enable a global workspace for the data. Integrated and consistent plant management for the complete lifecycle Cross discipline support - project & document management, engineering, quality assurance and operations Support of data quality management including change management and continuous improvements Configurable Open System Architecture

56 XHQ Operations Intelligence What Secrets Can Your Data Reveal? Empowered decisions More efficiency Higher transparency

57 XHQ Operational Intelligence Platform Improving the visibility of business performance and uncovering operational inefficiencies XHQ brings a common 360 view of real-time information across Production Assets and Portfolios

58 XHQ

59 Information can be organized and summarized in familiar context and presented in live, continually updating views Unrestricted Siemens AG 26 Page 62 R. Swanson / D. Thompson / J. Stout

60 MindSphere Siemens Cloud-Based Open IoT Operating System MindSphere

61 MindSphere Enables a quick start into data-driven services STEP 1 Connect Get MindSphere user-account, receive and integrate Connector Box into machine / equipment STEP 2 Configure Configure data acquisition, connectivity and Visual Analyzer via MindSphere STEP 3 Run the Service Monitor e.g. health status of all assets and drill into details using MindApps

62 MindSphere the cloud-based, open IoT operating system Developed by Siemens, OEMs, end customers and App developers MindApps Asset transparency and analytical insights, e.g. predictive maintenance Subscription based pricing model Fleet management MindSphere MindSphere Open interface for development of customer specific apps (MindApps) Various cloud infrastructures: Public, private or on-premise MindConnect Open standards (e.g. OPC UA) for connectivity (also to 3rd party products) Plug and play connection of Siemens products

63 Solutions of tomorrow will Increase integration and transparency through the lifecycle Increased interoperability of data through standardization Open system architectures for collaboration Modularization, scaled solutions and virtualization

64 Solutions of tomorrow will Increase optimization and continuous improvements Real time analysis and cloud services Increased simulation Gather and utilize more data from intelligent field equipment

65 A man goes broke gradually and then suddenly Ernst Hemingway

66 Change comes gradually and then suddenly especially in a digital world Siemens and other visionary customers have already started their journey Siemens has proven that our open platform enables revolution through evolution

67 We are on our way! Digital Industry! Are we already there?

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