Smart Factory The Heart of the Digital Transformation Era

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1 Smart Factory The Heart of the Digital Transformation Era Dr. Jörg Pirron PROTEMA Consulting Services, Germany 2017 Epicor Software Corporation

2 PROTEMA It is personalities, not principles that move the age. PROTEMA Company Profile Consulting services from one hand Founded in 1996 PROTEMA Unternehmensberatung GmbH PROTEMA North America Inc LOPREX GmbH Your Satisfaction is our asset PROCESSES TECHNOLOGY RESOURCES As a TOP consultancy, we realize our customized approach together with international groups and medium-sized companies in the areas of: 80 Personalities since 2005 DIN EN ISO 9001:2008 certified Quality is our requirement Customer satisfaction our asset PROTEMA Consulting PROTEMA Engineering PROTEMA Operations PROTEMA Transformation 8.5 million revenue 2 PROTEMA

3 Digital Transformation in Value Creation Industry 4.0 End 18th Century End 19th Century Start of the 70s 20th Century Today 1784 First mechanical weaving loom 1870 First assembly line (Slaughterhouse) 1969 First Programmable Logic Controller (PLC) 1 st Industrial Revolution by the introduction of mechanical production equipment using water and steam power 2 nd Industrial Revolution with the introduction of mass production lines based on the principle of division of labor using electric energy 3 rd Industrial Revolution by integrating electronics and IT to further automate production 4 th Industrial Revolution based on Cyber-Physical Systems A sustainable company inspires customers as well as employees with innovative business models and a contemporary work organization. 3 PROTEMA

4 The development of the digital interconnectivity will continue to gain massive momentum. Global competition is no longer only won in the real but also in the digital world. Dieter Zetsche 4 PROTEMA CEO, Daimler AG

5 Industry 4.0 Three Dimensions Internet of things, services, and people Products AutoID Buildings Locally available information Machinery Equipment Digitization and integration of vertical and horizontal value chains Innovative digital business models INDUSTRY 4.0 Cloud Digitization of product and service offerings Internet Mobile Workers Managers Leaders Analytics Localization & navigation Transparency Decentralized control Cognitive computing Knowledge database Communication 5 PROTEMA

6 Business Industry 4.0 Building Blocks Virtual World Communication with standardized services based on standardized semantics Communication Infrastructure Real World Smart Products Cyber Physical Systems Network Smart Devices Value creation by software service systems and their interrelation New Business Models New Services New Processes Communication hub Augmented Reality / Simulation Production network Cyber Physical Systems I4.0 service system Private Cloud / Big Data Ontologies Analytics / Artificial Intelligence Internet of Things and Services Traditional or future Machine-2-Machine production Communication network Human-Machine-Interface Cyber Physical Systems Smart Machines and cells Robotics, 3D Printing Machine Learning / Artificial Intelligence Storage of data in a standardized syntax and semantics Third-party services Production optimization Logistic optimization Weather forecast Payment services Search engines Manual Data Acquisition EC machine-to-machine communication Smart Cards I4.0 I4.0 Write access to the service system with approval point Read access Write access with approval point Read access to standardized I4.0 service system with possibility of selfexploration and adaption Smart Factorie s Barcode RFID Embedded Sensors 6 PROTEMA

7 Industry 4.0 Benefits Individual products increase the competitiveness on a global level Increased productivity leads to an improved economic efficiency of the entire value chain New technologies enable new business models and ensure the sustainability through growth and new revenue sources High availability of information enables demand-oriented interaction with the customer and increases customer satisfaction Operator support systems help us to cope with increased complexity and the demographic change Benefits through Industry 4.0 Modularity, flexible automation and decentralized management enable high flexibility, adaptability and improve the robustness of production and logistics A flexible work organization is the basis for meeting changing marked requirements and a good Work-Life-Balance Increased transparency and availability of information facilitate a target oriented management of processes Sustainable production and logistics enable an increased resource and energy efficiency 7 PROTEMA

8 Smart Factory Production of the Future MACHINE, EQUIPMENT, TOOL, PROCESS MANAGEMENT DIGITAL SHOP FLOOR UND PERFORMANCE MANAGEMENT QUICK RESPONSE MANUFACTURING OPERATOR UND SERVICE SUPPORT SYSTEMS PRODUCTION MANAGEMENT / SMART ADAPTIVE TESTING / TRACKING & TRACING SENSITIVE ROBOTS / 3D PRINTING 8 PROTEMA

9 Smart Factory LVHM Environment Production Costs (given volume, over given period of time) Robot Production (incl. tooling and changeovers) Manual Production Robot Production (only robots) Low Mix High Mix 9 PROTEMA

10 Smart Factory LVHM Environment Production Costs (given volume, over given period of time) Robot Production (incl. tooling and changeovers) COLLABORATIVE ROBOTICS & TACTILE SENSORSYSTEMS Manual Production Robot Production Adaptive grippers Flexible fixtures ADAPTIVE GRIPPERS & FLEXIBLE FIXTURES Low Mix High Mix Innovative automation concepts enable a higher return on investment especially in a LVHM environment. OPERATOR SUPPORT SYSTEMS 10 PROTEMA

11 Smart Factory Logistic Center of the Future Smart containers Robotics Flexible shuttles Flexible open spaces Automated picking Automatic loading and unloading Mobile shelves Mobile picking zones Indoor navigation Collective intelligence and agent based transport systems 11 PROTEMA

12 Smart Factory Convergence of IT and Automation Future Service-oriented Architecture (SOA) 12 PROTEMA

13 Smart Factory ERP of the Future Service orientierte architecture Flexible implementation on-site or Cloud-based Vertical integration Digital interconnectivity and horizontal integration Real-time integration and data availability High data quality Social collaboration Mobile computing Business Intelligence and Analytics Integrated business process and workflow management Artificial intelligence and operations management Self-optimization 13 PROTEMA

14 New Business Models Innovation in Value Creation & Customer Service 14 PROTEMA

15 Digital Transformation Smart Factory Strategy and Roadmap New Business Models Supplier Side Planning, Purchasing, Procurement New Business Models Customer Side Customer Experience, Products, Services Technology Roadmap for the Internet of Everything (humans, machines, services) Implementation Roadmap for business models, products, services, processes Processes Organizational Structures Performance Management Operations Automation Pyramid Autonomous decentralized control systems Sensors Actuators Embedded Systems 15 PROTEMA

16 Leadership 4.0 Far more than managing new technology Social Media Demographic change New technology IoTS Knowledge-based society Work Life Balance Leadership 4.0 Working time model and contract variety Generation Y and Z Multicultural Workforce Career AND Family Flexibility in working time, working hours, work tasks, team members, place of work Sabbatical leaves Autonomous working style (e.g. Holacracy) Agile work organization Emotional intelligent team leader Continuous learning Knowledge exchange via new media Web-based communication and meetings Operator support systems Worker specific assistance 16 PROTEMA

17 Smart Factory What needs to be done? CYBER SECURITY DATA OWNERSHIP INDERDISCIPLINARY, AGILE COLLABORATION GLOBAL LEGAL FRAMEWORK STANDARDIZATION OF ONTOLOGIES, ARCHITECTURES AND INTERFACES 17 PROTEMA

18 It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. 18 Based on the ideas of PROTEMA Charles Darwin

19 Thank You Dr. Jörg Pirron PROTEMA Consulting Services, Germany 2017 Epicor Software Corporation