Low Cost Adoption of Digital Capabilities Sameer Savani, Head of Innovation & Engineering

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1 Low Cost Adoption of Digital Capabilities Sameer Savani, Head of Innovation & Engineering

2 The Organisation ADS is the premier trade organisation advancing the UK Aerospace, Defence, Security and Space industries. Farnborough International Limited (FIL) which runs Farnborough International Airshow, is a wholly owned subsidiary.

3 Priorities for ADS The industries represented by ADS are vital to the UK economy and are major drivers of growth and prosperity. The following priority objectives are designed to give focus to the work ADS undertakes: Improve the image and profile of our industries Influence the policy debates of most importance to our industries Support UK manufacturing and our industries supply chains Encourage investment in technology and innovation Support business development opportunities nationally and in priority international markets Increase Member value

4 Why Industrial Digitalisation is important to ADS Our review identified a 17.5 billion opportunity for the aerospace sector over the next ten years through the adoption of currently known digital technologies. Of all the sectors we examined, aerospace offers the greatest potential in terms of both cost reduction and new business models.

5 This is what people think of as 4IR looking through a technology lens

6 The technology isn t flying in formation What are you actually trying to do? What skills and processes need to be in place for the technology to work? How much better is it than what it replaces? Are you over-engineering a solution? What are the connections between? Those who pay for it Those who have to implement it? Those that benefit from it? Those that will be disrupted by it?

7 Industry 4.0 goes way beyond technology Data Analytics Digital-to-Physical Human-Machine Interfaces Technology Systems & Networks Security and Resilience Communication Networks Architecture and Integration ICT Services Skills and Training Competency Frameworks Digital Mindsets and Culture Attractiveness to Talent Skills & Competencies Business & Strategy New Business Models Risk Management Business Cases and Finance Business Transformation

8 Value Drivers Technology isn t even the starting point Servitasation Productivity Utilisation Efficiency Time-to-Market Quality Inventory and Supply Data-enabled Business Models Remote Maintenance Predictive Maintenance (Product) Robotics and Cobotics Digital and Remote Performance M gmt Virtual and Augmented Reality Flexible Manufacturing Predictive Maintenance (Factory) Smart Energy Consumption Real-time OE Optimisation Rapid prototyping and experimentation Concurrent Engineering Challenge-led Open Innovation Sensor/Data-driven Process Control Digital Quality Management Agile Batch Sizing Data-driven Demand Prediction Additive Manufacturing Technological capability levers

9 Risks with technology - centricity Transformation Strategy vs. Technology roadmaps Chasing the latest technology hype Numerous tactical projects of limited total-business value Bounded by a legacy systems and approaches lack of vision Myopia - cross-impacts not understood by working in silos Scope constrained by technology, not what the customer wants

10 Why now? Never Later Tomorrow NOW Learn Test Scale

11 Why now? Trends in capability Technologies are becoming far more affordable (and therefore, more available and accessible)

12 Why now? Trends in capability Discrete manufacturers starting to servitize powered by connectivity

13 Why now? Trends in capability Larger companies are already getting on board

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15 Why now? Trends in capability Data is getting Bigger and Faster

16 Why now? Trends in capability Becoming increasingly affordable, available and accessible Larger companies (your customers) are doing this for themselves Data is getting Bigger and Faster; analytics is already providing actionable insights

17 What s Stopping Faster Adoption? Ability to invest Not knowing where it fits Awareness Time Barriers to Adoption for SMEs Legacy Trying to change the fan-belt while the engine s running Company structures Good practice left in silos Expertise

18 Case studies of low-cost adoption OEE (Overall Equipment Effectiveness) on a five-axis milling cell was <60% Getting to 80% would yield ~ 27,000 per machine per year Engaged with CNC Data and CNC Connect; installation of per machine Return on Investment was less than two weeks once additional capacity was utilized; achieved through Operator awareness Reduced setup times Improved programme performance through identifying machine stoppages

19 Case studies of low-cost adoption Digitally Enabled Supply Chains Enabling confidence in data Created a demonstrator to showcase capability for SMEs to understand Data precision Data accuracy Provenance and traceability Sensors calibrated by NPL Measurements traceable to national standards End-to-end at low cost Multi sensor Internet/Cloud enabled Machine Learning Introducing companies to servitisation models

20 Case studies of low-cost adoption Full Monty LLIVE low-cost legacy informatics for value chain equipment Bridgeport manual machine Digitally enabling a Cincinnati H5 Fitted with a full range of sensors Connected legacy machines across multiple companies Demonstrating Date validity Interoperability Trust and Cyber Security Supply chain visibility to OEMs 2x accelerometers for vibration measurement 1x thermocouple for temperature 3x Current transformer for power 1x NI 9211 for data acquisition 1x NI9230 for data acquisition 1x sbrio 9627 for edge analytics and visualisation

21 Case studies of low-cost adoption Distributed intelligent monitoring architecture Utilising COTS IOT technologies Easy to integrate with 3rd party systems Although this is a 2.5m programme over 3 years

22 Case studies of low-cost adoption Affordable digitalised energy and site management systems already available, which often deliver far more than just a reduction in energy bills. Monitor, manage and compare the performance of assets and sites, helping it to spot maintenance issues and optimise site resource Identify cost-effective opportunities for reducing energy bills You can even make money by being more flexible about the way the way you use energy

23 Aerospace 4.0 Establish Farnborough as the home of showcasing Aerospace 4.0 solutions Demonstrate point solutions, integration and scale up Lead the narrative on the Aerospace sector s approach to digital transformation

24 In Closing Industry 4.0 doesn t come in a box; different solutions will suit different companies Transformation needs to business-led and value-centric Digital is an enabler to business strategy; Technology is only part of the answer Large companies are already investing, but everyone will need to get on board Think big, start small, scale fast, act now Plenty of examples that you can touch and feel Digital transformation affects ALL parts of the business Come and find out more at Aerospace 4.0 at the Farnborough Airshow