Industry 4.0 the case for automation

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1 Industry 4.0 the case for automation The next industrial (r)evolution Date: Nov. 5 th, 2015 by: Georg Frey entdecke Perspektiven! discover opportunities!

2 Industry 4.0 the case for automation Internet Economy Application Partner cloud computing Business Internet of Things Data Industrie 4.0 Smart Cooperation Products Implementation Market Internet of Things Digitalization Development big data Human Supplier Services Advanced manufacturing Management Solutions Technology Data Integration Future Cloud 2 Information Employee Utilization

3 Industry 4.0 the case for automation Origin of Industry History Industrial Revolutions 1. Mechanization 2. Electrification 3. Digitalization 4. Connectivity Electrification Digitalization/ Computerization Utilization of CNC-data/ and robotics Connectivity Connection of production and information technology Mechanization Utilization of electrical power Utilization of water and steam power 3

4 Industry 4.0 the case for automation What is Industry 4.0? Industrie 4.0 Advanced Manufacturing A Government promoted Initiative competing for manufacturing leadership 4

5 Industry 4.0 the case for automation What is Industry 4.0? I n t e r n e t Vision: Connectivity of manufacturing technologies more customized, flexible and faster Factories Smart Factory Products Smart Products Products and Machines communicating I n t e r n e t o f t h i n g s For us the connection of production and information technologies 5

6 Industry 4.0 the case for automation Current situation Ordering process Furniture manufacturer Delivery and installation Often disjointed with many interfaces and sources of inefficiencies 6

7 Industry 4.0 the case for automation Vision Suppliers Ordering process Furniture manufacturer Machine suppliers/ maintenance Delivery and installation Trucking/ Logistics Connected processes along the value chain 7

8 Industry 4.0 the case for automation 7 Elements of the connected factory 8

9 discover opportunities! entdecke Perspektiven! Lignum Consulting Inc Kildaire Farm Road, STE 200 Cary, NC

10 Industry 4.0: The Case for Automation The Next Industrial (R)evolution Part 2: How do we start? November 5, 2015 Sepp Gmeiner entdecke Perspektiven! discover opportunities!

11 7 Key Elements of The Connected Factory 11

12 Challanges for the Manufacturers Product variety and customization high product variety Inventory levels with low inventory levels Flexibility with high production flexibility Lead time at short lead times Entwicklung hin zu einer individuelleren, flexibleren und schnelleren Produktion Short product live cycles, customized, flexible, cheaper, faster. Seize the the opportunity! 12

13 Presssure to change The 10,000 ft View before the Deep Dive Determine the value for the customer instead of value for the company Only a paradigm shift guarantees unlocking the improvement potential Important for our customers: Not important for our customers: best price benefit ratio beneficial service/functionality customized product and service leadtime expectation on-time and complete performance competitive pricing equipment utilisation optimized production processes batch sizes and set-up time standard or custom order Focus on how it benfits the customer! 13

14 7 Key Elements Strategy Corporate Objectives Product Range and Services Market Positioning 14

15 1. Strategy The Stategy defines the Organization Economic factors Key Indicators Batch size 1 Lead part storage Strategy definition ABC- Buffer Interim Storage FG stock Market factors Unique Selling Propositions (USP) 15

16 7 key elements Product Product Variation Management Product Data Model Rule-based Construction Construction Standards Platform strategy Design 16

17 2. Product Rule-based Construction Details Documentation Engineering Standards Part dimension as function of overall dimensions Lack of Standardization Standardization Good Standardization 17

18 X 2. Product Variants built from modules Variants using platforms interim stock 18

19 7 key elements Data Integration Product Planning & Control ERP MES Integration Synchronized Production Information Flow Machine / System Integration Interfaces CAD ERP Configurator Customer Order, Product & Demand Planning 19

20 Planning Data Collection 3. Data Integration Data Integration Production Planning Level ERP Enterprise Resource Planning Order Entry, BOM -Administration, Capacity Planning, Material Managment, Shipping, Finance, Human Resources Production Control and Execution Level Production Control Technology MES Manufacturing Execution System Detail planning and control Equipment Management Material Management Employee Management Data- Collection Output Analysis Quality Management Information Management Production Level Manufacturing Processes Machines and Equipment Machines Integration, Automation, PLC Controls The Data Integration will provide the largest challenge for manufacturers! 20

21 7 key elements Organization Lean Production Production System Processes Organizational Structure Supply Chain 21

22 Complexity of Product Complexity of Data 4. Organisation Which Manufacturing Model for what Strategy? Custom Producer, Job Shop CDP Custom shop - Architectual Millwork Fully variable product Batch size one Premium Producer With Batch Production PREMIUM - Producer Configurable Product CDP Individualization Batch size One Batch Producer with Individulaization STANDARD - Product Configurable Product CDP Individualization Large Batch Producer DISCOUNT STORE, BIG BOX STORES, IKEA, Anonymous, Unassigned Product CDP CDP Customer Determination Point Supplier Warehouse Raw Material Warehouse WIP, Parts Inventory Finished Goods Inventory 22

23 7 key elements Technology Process Engineering Automation Technology Preventive Maintenance Tools Infrastructure Facility Management 23

24 5. Technology Connected Factory Networked Equipment Source: IMA 24

25 5. Technology Connected Factory Networked Equipment Source: 3tec 25

26 7 key elements Logistics On-time delivery (Quantity Time Quality) Intelligent Material Supply Suitable Technology Concepts Separating Value-adding from Logistics Internal Logistics Rework Organisation 26

27 6. Logistic Operational Objectives require Logistical Excellence Material flow routing Supply routes (Milk run) Before After Source: Linde Automated Guided Vehicle, AGV Material staging source: dpm sourcee: swisslog flat vertical 27

28 6. Logistic Operational Objectives require Logistical Excellence Supermarket Supermarket Supermarkt Order Picking Systems Pick-by-light Pick-by-vision Pick-by-voice Quelle: Fml TUM Quelle: swisslog Material flow Kanban Input Work in - Progress Output Pull-System Closed Cycle Push- System Input Work in - Progress Output Logistics determines the Efficiency of Production and Organization! 28

29 7 Key elements Human Resources Leadership Methods & Problem Solving Skills Qualification Skills Development Flexibility Motivation 29

30 5. Technology Development Trends Information V feed > 100m/min? Feed speed V feed = 45m/min V feed = 10m/min 1965 Batch size Quellen: u.a. LC, Homag, IMA, Internet 30

31 7. Human Resources Process can be only changes with the people Skills development of employees Working hour models Rigid work time model Traditional: Workers fill the full day with the available work- independent of work load Key Performance Meassures and flexible work hours Work only when there is work available Positions/names Skills and training elements Demograhic profile Consideration for the age profile of employees The Implementation of Industry 4.0 is possible with team work only! 31

32 4. Organisation Visual Management Assembly Days Monday Tuesday Wedneday Thursday Friday Rush Visualization of Information 32

33 Summary Summary: 7 Key Elements of The Connected Factory Define your company s objective and the corresponding strategy Develop a rule-based product data model Build an end-to-end data integration through all system levels Select technology to integrate production, material handling (logistics) and/or assembly with the ability to network in the connected factory Align the organization specifically for your company Drive Logistics excellence as it determents the efficiency of Production and Organization Ensure full participation of all your employees in the change processs 33

34 Questions? Leave us your business card and we you the presentation We welcome you to visit us at our booth

35 discover opportunities! entdecke Perspektiven! Lignum Consulting Inc Kildaire Farm Road, STE 200 Cary, NC

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