Fujitsu Value Proposition for Manufacturing Industry. #EnablingDigital with Fujitsu Connected Enterprise

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1 Fujitsu Value Proposition for Manufacturing Industry #EnablingDigital with Fujitsu Connected Enterprise

2 Business Challenges Reduce Inventory Improved Sales & Operations Delivery Reduce Lead-time Differentiation / Shorten Time-to-Market Minimized production downtime Transform / expand Product to Service New Sales Channels / B2B and B2C Sales Manufacturing Customers Production Increased manufacturing automation Cost / Sourcing control Extended revenue stream Preventive maintenance Services After Sales Product Lifecycle Management / Resource & Development Workforce safety Increased partner collaboration Control of Installed Base Shorter Time to Market 1

3 Digital is different things to different people Business-model transformation Transforming customer & user experience Digitalizing business operations Product leadership & innovation Copyright Fujitsu Services Copyright FUJITSU

4 Industrie 4.0 vs Industrial Internet Industrie th Industrial revolution Industrie 4.0 is the extension of industrial digitalization to the Internet of Things (IoT) in manufacturing Industrie 4.0 constitutes an evolution and an integration into IoT of previously separate ITapplication areas in automation (MES, PLC) and administration (ERP, SCM) today, such concepts are often called Industrie 3.0 (3rd industrial revolution, since 1970) Stakeholder group Plattform Industrie 4.0 consists about 70 members, 50 of which are industrial companies. Companies are individually selected and become members by invitation only. FUJITSU has been a member since last June Industrial Internet Consortium Has been coined as a name by the Industrial Internet Consortium (IIC), founded in 2014 This industry consortium was founded by 10 US members and follows their charter of enabling the industrial application of the Internet of Things (IoT) Industrial means anything that is the basis of a business. The IIC wants to enable solutions in energy, health, transport and other sectors, not just in manufacturing The IIC has now more than 250 members, most of which are IT or OT companies FUJITSU is in the 9 member steering committee 3

5 Industry 4.0 and Industrial Internet (Industrial IoT) Industrial lot Solutions Smart Utilities & Smart Field Services Smart Automotive Smart Manufacturing Smart Healthcare Smart Agriculture Smart Transport & Smart City Applications IoT Platform Cloud, Infrastructure, Networks Wearables, Devices, Sensors Smart Financial Services IIC: Fujitsu leads the testbed on Factory operations visibility & intelligence

6 Digital Transformation: The Connected Enterprise Leverages the convergence of Information Technology and Operational Technology to enable smart, connected operations and significantly improve operations effectiveness and reduce operating cost 5

7 IT & OT seamlessly working together The seamless integration between Information Technology & Operational Technology is the key for successful Connected Enterprise implementation. IT Query Based Data at Rest Non-real time OT Event Based Data in Motion Real Time 6 7 Collaboration & Processes 6 Application 5 Data Abstraction 4 Data Accumulation 3 Edge Computing 2 Connectivity 1 Physical Devices & Controllers IoT World Forum Reference Model

8 Enabling Digital: The Fujitsu Connected Enterprise IT Simplified Work Management Connected Asset Industrial Operational Intelligence Semantic (ISO Data Model) Connected Workers Predictive Maintenance and Service MFG Execution Asset Tracking & Visibility Quality Inspection & Control Connected Manufacturing Manufacturing Analytics & Manufacturing Performance Management Semantic (ANSI/ISA 95) OT Fujitsu GlobeRanger imotion Fujitsu Ubiquitousware Other Industrial M2M 3 rd party sensors

9 What does it mean for Manufacturing Operations? Business Networks (Aka, AIN) and System of Records ERP EAM SCM QM CRM Business Data Machine Data (Industrial M2M) Material Movements (RFID) Workplace Safety data (location, human wearables) Plant/Fied

10 Fujitsu Connected Asset Connected Logistics & Warehouse Assets 9

11 What does Fujitsu Offer in Smart Asset Management? Understanding your Business and Asset Management In what areas of the business does asset shrinkage occur? Why? How much is that costing the company per year? Is there real-time visibility of all assets at any given time, and who has them? How can you optimise your assets in different parts of its business? How do you ensure that the right employees are handling certain assets having undertaken the relevant training? How does asset stocktaking occur? How do you manage servicing the assets to ensure this is conducted at the right time and in the right location for this to happen? Fujitsu GlobeRanger Solution Real-time alerts for security breaches within defined boundaries. Reduced lost/stolen assets (often multi-million ). Real time visibility of exact location of assets including chain of custody to ensure assets are signed out (and in) to/from specific individuals. Know what each individual is entitled to check out according to role and training. Optimization of asset usage based on actual usage rather than advised holdings. Automatic recording of moving of assets through gates. Real-time alerts for asset recall for servicing /maintenance. Can record the servicing and repair history for every item tracked.

12 GE Turbine Warehouse Optimization and Tool Tracking Company Overview: GE Turbine is the world s largest supplier of gas turbines and is a subsidiary of General Electric (GE); A Digital Industrial Company which transforms industry with software-defined machines and solutions that are connected, responsive and predictive. Business Challenges: Need better accountability of inventory for manufacturing and shipping processes Fix lack of location accuracy of inventory Sub-optimal process of finding missing or misplaced inventory Optimize tool tracking and accountability imotion-based Solution: All inventory is RFID tagged on receipt at the dock door All zones, aisles, shelf sections and bins tagged with location RFID tags All forklifts enabled with wireless RFID reader & antennas Solution tracks inventory from receipt to put-away to pick to consumption Tool check-out window, personnel doors and dock doors instrumented with readers Business Benefits: Real time visibility of all inventory in the warehouse Significant reduction of misplaced inventory Better view of the velocity of inventory IN and OUT of the warehouse Full passive, electronic tracking of tools with alerting for late check-ins

13 Daisy Brands imotion Increases Inventory Velocity and Operational Efficiency Company Overview: Daisy Brands is the largest producer of sour cream in the U.S. At its 50,000 sq. ft. facility in Dallas, the company uses a flexible warehouse management system that allows forklift drivers to make inventory decisions and update the system. Business Challenges: Comply with retailer mandate. Generate internal efficiencies with mandate-driven RFID investment. imotion-based Solution: 140 cases of sour cream loaded onto a pallet. Bar-coded SKU used to generate RFID label which is applied to the shrink-wrapped pallet. RFID tag number and SKU number linked and stored in database. Forklift readers read RFID tag number on pallet which is displayed on vehicle-mount computer screen. Driver inputs inventory movement information into system through touch-screen ending location and reason for move. imotion links WMS to RFID readers on forklifts, barcode scanners and RFID printers. Shipment validated against ERP system, shipping memos, and invoices generated. Business Benefits: Greater operational efficiency truck loading time reduced by two-thirds with elimination of data entry and recording tasks. Greater visibility into product inventory by type and location. Elimination of paperwork, phone calls, s and faxes to determine product availability. Shipping errors prevented through immediate notification.

14 Fujitsu Connected Asset Predictive Maintenance & Service 13

15 Actionable insights into operations Industrial Operational Intelligence Microsoft-SAP Innovation Awards Winning Solution

16 Predictions Predictive Maintenance Sense Predict Act Sensor Data Business Data Environmental Data Pattern and Root Cause Analysis Create work order Change product specs Alter maintenance schedule Preposition spare parts

17 Customer case One of largest Utilities in NA $50 billion total assets Enhance operations and maintenance by combining information technology (IT) with operational technology (OT): Boost productivity, Improve asset reliability Gain real-time visibility into all aspects of operations Improved Operational Efficiency Manual hours saving estimated at thousands of hours per year Reduced Operational Risk Risk avoiding benefits estimated at multiple million USD Reduced Operational and Maintenance Cost Transforming from preventive to predictive maintenance

18 Customer case - Aircraft maintenance Scheduled aircraft maintenance Scheduled maintenance Maintenance tasks and retrofit tasks Required parts and materials Part authenticity, life cycle, condition, provider Required tools Up to date calibration Required technicians Calendars, up to date certifications Shop floor space Integrations Work assignments Parts Tools HR system Premises

19 Fujitsu Connected Manufacturing Asset Tracking and Visibility 18

20 Manufacturing (Work-in-Progress) What do we offer? Real Time WIP: Problem solving before they occur. Real-time visibility with alerts at every stage of the WIP to enable immediate corrective action. Post-mortum is too late. Paperwork is too slow, labour intensive and inefficient. Can drive productivity by at least 30%. Data Automation: Manual errors will always impact cost. Any manual element in a manufacturing process will lead to error, inefficiencies, and delay. Install sensors to monitor, filter data according to thresholds, and apply business rules to automate. Even reducing minor errors that have a big impact can lead to 95% reduction in wastage costs. Tool Management: $2.75m pa in labour savings (for 100 workers). Get workers focused on work not finding tools or equipment. Check in/out facility, accountability for assigned tools, real time alerts for maintenance and calibration, Labour savings of approx. 15 mins per worker per task. This applies to any sector with significant tool volume/value.

21 Meggitt Composites Work-in-Process, IoT Sensor Monitoring and Alerting Company Overview: Headquartered in the UK, Meggitt PLC is a global engineering group specializing in extreme environment components and smart sub-systems for aerospace, defense and energy markets. Business Challenges: Need better insight into each stage of the manufacturing process Lack of visibility into the Work In Process (WIP) queue and in-stage dwell time Need better accountability of freezer and oven controlled raw materials and baked subassemblies Tool tracking and asset utilization imotion-based Solution: RFID tag each part, kit or subassembly manufactured in the manufacturing process Install RFID infrastructure at all process steps Track each part through the manufacturing process Collect and report on all time and process metrics Integrate freezer and oven sensors for lifecycle tracking Business Benefits: Real time visibility into the velocity of the manufacturing process Visibility into the queue time and process time for each stage Graphical dashboard of the entire manufacturing process to monitor, measure and make real-time corrections Full electronic accountability of raw material life cycle through freezer transitions

22 NeonLite Electronic & Lighting (HK) Improvement of Production Capacity through Greater Material Traceability Company overview NeonLite, maker of the Megaman brand, is one of the world s top manufacturers of energy-saving lighting products that are distributed in more than 80 countries worldwide. Business Challenges: To ensure its commitment to the environment by reducing material waste and consumption. Extend material visibility from raw material through the manufacturing process to finished product. imotion-based Solution: Component parts and finished goods placed in tagged trays as they move through assembly line or into a storage warehouse. Handhelds and portals used to read the tags at various points. Alerts and exception reports generated when errors detected. Interfaces with ERP Syteline warehouse software. Business Benefits: Manual data capture and entry eliminated. Single integrated system to support inbound logistics, raw materials management, and manufacturing work-in-process. 15 to 20% increase in production capacity, 10-15% increase in revenues.

23 Fujitsu Connected Manufacturing Manufacturing Performance & Quality Management 22

24 Manufacturing Systems Information Sources Business Processes - ERP Production schedule, material use, shipping and inventory levels, finance, logistics etc Manufacturing Operations MES Batch management, manufacturing execution/operations management systems, maintenance and plant performance management systems Manufacturing Control Real-time Logic / Batch controls and software Physical Production / Manufacturing Intelligent Devices: Physical Process / Sensors / Analyzers / Actuators 23

25 Manufacturing Systems Information Flows Business Processes - ERP Manufacturing Operations MES MES Manufacturing Control Physical Production / Manufacturing Production planning, order requirements, product definitions, availability, electronic work instructions, produced and consumed material, product tracking and tracing information Resource requests, material definitions, product deliveries, material availability, material lots, product shipments, equipment assignments, maintenance requests, maintenance progress, equipment capabilities, maintenance schedule Work instructions, recipes, set points, process values, alarms, adjusted set points, production results, 24

26 Connected Manufacturing Solutions Operator Dashboard Simplified UI Mobilization Process and Quality Enforcement Real-Time Dashboard Orders View Improved Efficiency Knowledge management 25

27 Customer case Meat processing company Food Manufacturer Integrated manufacturing and quality management solution connects machine, processes, data and people Improved Operational Efficiency Mobilized and paperless plants Improved Food Safety and Quality Business Use Self Service Reduced Operational Cost Tens of millions USD potential saving of recall/refunding

28 Customer case Advanced Analytics Finnish Manufacturing Company Thousands of log files/hour/operation across production lines Data volumes 30GB / day Automated quality control Monitor / alert / react for production lines in real rime Adhoc quality analytics Visualisation of data with self-service tools Long term trend analysis Predictive modeling

29 Fujitsu Connected Workes Workforce Health & Safety Fujitsu UBIQUITOUSWARE 28

30 Connected Workers Simplified Work Management Quality Inspection & Control Efficient working processes thanks to mobile/wearable ヘッドマウントディスプレイに device and Augmented Reality technology 情報を表示 Before After Complex processes Displayed by HMD Work procedure Device condition Head Mount Display Look for information from manual Real-time sharing Inspection result Device information Document in a report Security & Improved task accuracy Efficiency by hands-free Wearable Keyboard Real-time data-sharing

31 Ensuring the right information available in context

32 Workforce Management / Health & Safety Ensure workers safety and visualize their environment Using the vital wrist band we can see when conditions deteriorate increasing the chance of heat stroke. Issue alerts and provide support when an accident occurs. Opportunities Detect falls by monitoring both acceleration & barometer pressure Avoid the chances of getting heat stroke by estimating heat stress from pulse, active mass, temperature & humidity Lone worker monitoring Monitoring workers for staff management & ensuring worker safety

33 Fujitsu UBIQUITOUSWARE Sense real time the environment, motion, location and vital signs Sensors Acceleration Geomagnetism Barometric Pressure Gyro Mic HCE Low power consumption, Analysis algorithm Fall Posture Exercise Intensity PDR Location Log Heat Stress Physical Load Detect a fall by sensing changes in movements & barometric pressure Identify posture (standing, sitting & lying) by sensing movements in 3D Calculate energy consumption from movements & active mass Precise positioning by estimating moving direction & distance Complement & correct location data as well as stored positioning data *Precise outdoor positioning together with GPS Issue alerts based on the heat stress caused by temperature & humidity *Detect together with heart rate and temperature & humidity sensors Issue overload alerts by estimating physical loads from changes in heart rate

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35 Getting started - on Digital Journey Executive Workshop Focussed session up to 2 hours Interventions- e.g. trends, art of the possible, threats & opportunities Outcome common understanding, sponsorship & agreed priorities Digital Innovation Session In-depth session up to half a day Interventions e.g. facilitated discussion, demonstrations, concept jam Outcome identified opportunities for solutions Digital Vision and Roadmap Develop consistent strategy for digital up to 4 weeks Interventions e.g. visioning workshop, road-mapping Outcome agreed approach, outcomes, initiatives and milestones Proof of Concept and Value Real-life application of digital up to 3 months Interventions e.g. day in the life, hackathon, agile solutions integration Outcome business case for the solution Think big, start small; learn fast and scale quickly Copyright Fujitsu Services Copyright FUJITSU

36 Customer Issues Application services for Manufacturing industry Consumer Packaged Goods Discrete Metal Food, Beverage & Pharma Forest Construction Energy Business & IT Consulting - Process Optimisation,, Change, Technology and Strategy & IT Effectiveness Application Effectiveness Operational Efficiencies Digitalise existing processes Redesign of business Connected Enterprise Industrial IoT & Industry 4.0 solutions Market Place, StoreCenter, REA Connected Enterprise C7 for projects Industrial IoT & Industry 4.0 solutions Connected Enterprise Industrial IoT & Industry 4.0 solutions Food and Drugs Traceablity C7 for projects Industrial IoT solutions Connected Enterprise Industrial IoT solutions Intelligent Dashboard Intelligent Dashboard Pharma industry solutions Transformation Productivity RunMyProcess ServiceNow SalesForce Workplace Productivity GlobeRanger Collaboration Case & Doc Mgmt Digital Consulting Business Intelligence Application Modernization Application Developm. & Integration De-risking Consolidation Fujitsu Middleware Performance Management Transformational AMS Fujitsu companies Partners

37 Why Fujitsu? Framework and method to help customers drive yield from the Digital Transformation Lean tools help our customers rethink current supply chain and reduce costs and risks Innovation driven company with availability of smart solutions such as GlobeRanger, RunMyProcess and UBIQUITOUSWARE End-to-end service from business process to applications and infrastructure layer, such as MetaArc Digital Business Platform and Digital Performance Management Fujitsu being a long term global partner with strong Nordic presence Fujitsu is also Manufacturer 36

38 Additional material Make Industrial IoT happen with Fujitsu Connected Enterprise RFID based MES/WIP demo Fujitsu Virtual Factory Warehouse tracking The Workplace of the future, created with Augmented Reality More information: Reijo Sihvonen, , 37