Shifting operations to Factory of the Future: a survey of European manufacturing companies

Transcription

1 Shifting operations to Factory of the Future: a survey of European manufacturing companies Elena Pessot a*,cinzia Battistella b, Alberto F. De Toni a, Alberto De Zan a, Elisabetta Ocello a a Department Polytechnic of Engineering and Architecture, University of Udine, via delle Scienze 206, Udine, Italy b University of Siena, Department of Engineering, Information and Mathematical Sciences, via Roma 60, Siena, Italy * elena.pessot@uniud.it 8th Annual Conference of the European Decision Sciences Institute (EDSI 2017) Information and Operational Decision Sciences May 29 June 1, 2017, Granada (Spain)

2 Agenda Introduction Methodology Theoretical model Findings Conclusions 2

3 Research aims To advance knowledge on current state and challenges linked to Factory of the Future (FoF) issues in operations To provide a reference for assessing readiness of companies in the shift toward FoF 3

4 Factory of the Future Variety of production technologies and IT solutions that connect and integrate physical devices and human actors, enabling the digitisation and automation of the operations, the value chain and the business model (Oesterreich and Teuteberg, 2016; Schmidt et al., 2015; Schumacher et al., 2016) Both disruptive changes and far-reaching opportunities for competitiveness and sustainable growth of companies (Pfohl et al., 2015; Roland Berger, 2014) 4

5 Relevance in literature and practice Limited number of studies on specific topics of FoF: o Impacts (Oesterreich and Teuteberg, 2016 Pfohl et al., 2015) o Influencing factors (Schmidt et al., 2015) o New skills required (Skevi et al., 2014) o Maturity, especially in leading companies or already dealing with it (Schumacher et al., 2016; World Economic Forum, 2015) Low adoption and awareness of FoF technologies in companies of manufacturing industry, despite a mature development and availability of many of them (European Commission, 2013; Roland Berger, 2014) 5

6 Research question How can we assess the business readiness of manufacturing companies in the shift toward Factory of the Future? 6

7 Agenda Introduction Methodology Theoretical model Findings Conclusions 7

8 Research methodology Literature review Theoretical and practical issues FoF (Industry 4.0, Smart Factory or Manufacturing) for operations innovation Selection of scientific publications and grey literature Exploratory survey Data collection: questionnaire Sample: companies from manufacturing sector based in European countries of the project (Austria, France, Germany, Italy, Slovenia) 8

9 Survey sample Number Percentage Austria 13 15% Company size France 7 8% Germany 14 13% Italy 41 47% Slovenia 15 17% Main business 18% 37% 22% 23% 2M 2-10M 10-50M 50M TOTAL 90 21% 79% B2B B2C 9

10 Agenda Introduction Methodology Theoretical model Findings Conclusions 10

11 Theoretical model: dimensions STRATEGY ORGANISATION MANAGEMENT Questionnaire sections and items TECHNOLOGY 11

12 Dimensions of the theoretical model (1) STRATEGY Roles and responsibilities Investments Goals Drivers Barriers REFERENCES Strategy, Governance (Schumacher et al., 2016) Understanding of FoF (Ganzarain and Errasti, 2016) Innovation intensity (Roland Berger, 2014) Impacts, risks, current use, future investments (Deloitte, 2014) 12

13 Dimensions of the theoretical model (2) ORGANISATION Organisational structure Skills Competences and knowledge base Means for internal communication REFERENCES Leadership, Culture, People (Schumacher et al., 2016) Workforce readiness (Roland Berger, 2014) Talent (Deloitte, 2014) Manufacturing skills, training programs (Skevi et al., 2014) 13

14 Dimensions of the theoretical model (3) MANAGEMENT Supply chain: vertical and horizontal integration Operations: New product development and engineering Operational performance Customers REFERENCES Customers, Products, Operations (Schumacher et al., 2016) Integrating customers, resource efficiency (Deloitte, 2014) Quality and sustainability while minimising costs, On-Demand delivery of customised products through a network of partners (Skevi et al., 2014) 14

15 Dimensions of the theoretical model (4) TECHNOLOGY IT infrastructure Importance and utilisation level REFERENCES Technology (Schumacher et al., 2016) Identify technology involved in I4.0 (Ganzarain and Errasti, 2016) Cyber-physical systems, Robotics, M2M Communication, Mobile services, IoT, Smart logistics, Smart factory, Cloud computing, Business Intelligence, Smart Data, Data Analysis (Pfohl et al., 2015) Degree of automation (Roland Berger, 2014) Automation, Modularisation/Prefabrication, Product-Lifecycle-Management (PLM), Simulation tools and models, Augmented Reality (AR)/Virtual Reality (VR), Cloud Computing, Mobile, Social Media (Oesterreich and Teuteberg, 2016) IT infrastructure (Deloitte, 2014) 15

16 Agenda Introduction Methodology Theoretical model Findings Conclusions 16

17 Empirical findings: Strategy (1) We have not a strategy yet 30.3% We have a clear roadmap for implementing Factory of the Future 24.7% We have assigned clear responsibilities for implementing Factory of the Future 12.4% We have clear business goals set with KPIs 24.7% We have an overall Factory of the Future strategy in place (written in a document and in execution) 7.9% 17

18 Empirical findings: Strategy (2) Main trends and factors taken into account: IT and innovation Increased customer expectations Need to increase flexibility Main goals: Realising high-efficiency, evolutive and adaptive production systems Digitalisation of the existing product portfolio Increasing market share of core products 18

19 Empirical findings: Strategy (3) Main barriers: Lack of a clear digital vision / strategy and of support / leadership from top management Lack of necessary talent / skilled people High financial investment requirements Main risks: Data security vulnerabilities due to global connectivity Competitors of traditional industry players leveraging on digitaisation 19

20 Empirical findings: Organisation (1) Now In 3-5 Years [Highly centralised, with a command and control structure] [Highly decentralised, with business units having significant autonomy] [Somewhat decentralised, with business units managed in a form of hybrid structure] [Collaborative, with a greater emphasis on involving employees, customers, and partners in processes and decision making] [Do not know] 20

21 Empirical findings: Organisation (2) N/A

22 Empirical findings: Management (1) Supply Chain Dataflow with both suppliers and customers, real-time monitoring Suppliers of automation systems Suppliers of specialised software and systems for advanced manufacturing planning and execution Suppliers of connectivity Suppliers of data storage and data management Suppliers of cyber-security products 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 22

23 Empirical findings: Management (2) Customers Channel for customers feedback None Sending the 3D printing file to the customer Customer Service Ships tracking Company s app Pay per use Reviews on e-commerce Social Network Dedicated phone number Product rent E-commerce platform Telephone support Online support 23

24 Empirical findings: Management (3) Operations N/A [Flexibility] [Automation rate] [Electronic integration with design process] [Components range standardisation] [Product range modularisation] [Energy efficiency] [Reduction of pollution rate] 24

25 Empirical findings: Technology We lack any appropriate IT infrastructure We have an appropriate IT infrastructure overall We have appropriate metaware (network administrators, developers, designers, etc.) We have appropriate network infrastructure (network enablement, internet connectivity, firewall and security) We have appropriate software (e.g. Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), We have appropriate hardware (servers, computers, data centres, switches, hubs and routers, etc.) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 25

26 Agenda Introduction Methodology Theoretical model Findings Conclusions 26

27 Research contributions Comprehensive study on FoF issues in companies as regards dimensions of strategy, organisation, management, technology Reference model for o o assessing companies readiness in the shift toward FoF in terms of needs and capability identifying focuses of future investments 27

28 Limitations and future research directions Limits of the sample First results of the project Studies deepening analysis along the four dimensions Qualitative studies on issues linked to the shift toward FoF 28

29 Acknowledgments This work was supported by a project co-financed by the European Regional Development Fund through the Interreg Alpine Space programme 29

30 Shifting operations to Factory of the Future: a survey of European manufacturing companies Elena Pessot a*,cinzia Battistella b, Alberto F. De Toni a, Alberto De Zan a, Elisabetta Ocello a a Department Polytechnic of Engineering and Architecture, University of Udine, via delle Scienze 206, Udine, Italy b University of Siena, Department of Engineering, Information and Mathematical Sciences, via Roma 60, Siena, Italy * elena.pessot@uniud.it 8th Annual Conference of the European Decision Sciences Institute (EDSI 2017) Information and Operational Decision Sciences May 29 June 1, 2017, Granada (Spain)