Future of manufacturing View on enabling technologies Restricted Siemens AG All rights reserved

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1 Thomas Hahn, Chief Expert Software, Siemens Corporate Technology Future of manufacturing View on enabling technologies Restricted Siemens AG All rights reserved

2 The pace of change in manufacturing has never been faster Growing importance of manufacturing industries in all economies Reduce time 1 Increase efficiency 2 3 to market Energy- and resourceefficiency are decisive cost factors Merger of real and virtual production Interlinking automation and drive technology with industry software Enhance flexibility Increasing importance of industrial IT and industry software We are well prepared to make our customers more competitive Page 3 September 2013 Corporate Technology

3 1 Energy- and resource-efficiency are decisive cost factors Energy is often the single biggest cost factor in energy-intensive industries 57% 47% 36% 29% 27% Aluminum Cement Steel Paper Basic chemicals In Europe, industry accounts for about 25% of end energy usage Energy prices for industry expected to rise some 70% by 2030 Page 4 September 2013 Corporate Technology

4 2 Reduced time-to-market through simulation of product development and production process Product development process with physical prototypes vs. virtual prototypes Product data in terabytes (TB) 1) 2002 Physical (real) function prototype Physical (real) product prototype Physical (real) production prototype Physical (real) mass production prototype Production check Virtual (digital) function simulation prototype Virtual (digital) product simulation prototype Production check -40% ) Considered Data types: Image Data, ASIC, CAD, PDM, Animation Data Page 5 September 2013 Corporate Technology

5 3 Enhanced flexibility through use of industrial IT and industry software Complete Ford F-150 program Trim Line 6 6 Cab 3 18 Drive 2 36 Box Engines Transmission 3 1,296 Rear Axle Ratio 7 9,072 Wheel 9 81,648 Tires 8 653,184 Seats 18 11,757,312 Power Seats 2 23,514,624 Radios 5 117,573,120 Running Boards 4 470,292,480 Rear Window 3 1,410,877,440 Colors 12 16,930,529,280 Trim Colors 3 50,791,587, Individual Options 12, ,687,735,500,800 Thousands of marketable combinations Millions of buildable combinations Trillions of theoretically possible combinations Page 6 September 2013 Corporate Technology

6 Cyber-physical systems (CPS) enable the future of manufacturing Communication everywhere and every time Future infrastructure will support the access to information everywhere and every time without any specific installation / parameterization needs Production and products will be intelligent Production resources will be autonomic and will connect to each other (M2M) Products know their own production systems Digital and real world will merge Each real object will have a digital shadow, which reflects the characteristics of the real object Page 7 September 2013 Corporate Technology

7 Data Analytics: The era of data just begins Innovation waves lifting Business Intelligence / Data Analytics Big data analytics Digital data ~ 1960 Data warehousing ~1980 Data Mining ~1990 Today Stream processing (Complex Event processing) Autonomous systems Digital data collection First databases Documentation Data cubes Relational databases Financial data Enterprise mgmt. Statistics Artificial intelligence Machine learning Knowledge discovery Unstructured data Process optimization Collective intelligence Massively distributed analytics NoSQL databases Heterogeneous data and knowledge Petabytes of data Real-time decision support and control Page 8 September 2013 Corporate Technology

8 End-to-end engineering across entire value chain Historically grown IT systems with complex interfaces Seamless integrated tool chain Product and production always harmonized on each other Services Production Production engineering Production planning Product design Enhanced quality Enhanced customer satisfaction Reduced operation costs Page 10 September 2013 Corporate Technology

9 Many regional initiatives making progress to innovate manufacturing Industrie 4.0 just one of them Focus: Horizontal integration across value networks End-to-end engineering across entire value chain Vertical integration and networked production systems defines goals implements set rules enables Source: Siemens / Arbeitskreis Industrie 4.0 1) Internet of Things 2) Cyber-physical systems Siemens participates Page 11 September 2013 Corporate Technology

10 Many regional initiatives making progress to innovate manufacturing Industrie 4.0 just one of them Focus: Domestic manufacturing capabilities in critical national security industries Reduction of time to develop and deployment of advanced materials Next-generation robotics and innovative energyefficient manufacturing processes Source: 1) Internet of Things 2) Cyber-physical systems Siemens participates Page 12 September 2013 Corporate Technology

11 Many regional initiatives making progress to innovate manufacturing Industrie 4.0 just one of them Focus: Manufacturing intelligence on existing installed base using data analytics, modeling and simulation Smart manufacturing platform and test beds (community source) to lower costs: e.g., platform initiated to pool industrial data Source: 1) Internet of Things 2) Cyber-physical systems Siemens participates Page 13 September 2013 Corporate Technology

12 Many regional initiatives making progress to innovate manufacturing Industrie 4.0 just one of them Focus: Intelligent manufacturing as well as measurement and control systems Industrial automation instruments, control systems and industrial robots 2015 target for basic Internet of Things structure Source: Netscribe, Internet of Things Market in China ) Internet of Things 2) Cyber-physical systems Siemens participates Page 14 September 2013 Corporate Technology

13 Thomas Hahn, Chief Expert Software, Siemens Corporate Technology Thank you! Restricted Siemens AG All rights reserved