Industry 4.0 and Automotive Digital Transformation. Jim Bydalek May 9 th, 2017
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1 Industry 4.0 and Automotive Digital Transformation Jim Bydalek May 9 th, 2017
2 This automotive industry is rapidly evolving Jacques Aschenbroich Valeo Volkmar Denner, Bosch Elmar Degenhart, Continental Alex Molinaroli, Johnson Controls Inc. There has never been so much innovation coming into the automotive world. It s a new game (on industrial internet). The future of the automobile is software. Digital technology will change the business models. Klaus Straub, BMW Elon Musk, Tesla Thierry Chiche, Michelin Warren Buffet, Berkshire Hathaway Automotive Digital disruption will happen in the auto industry. When Henry Ford made cheap, reliable cars, people said, 'Nah, what s wrong with a horse?' That was a huge bet he made, and it worked. We are aiming to capture billions of bits of data. We are moving from the past from one tire for all to something that is more a tire for each driver. The fun has just started (on the purchase of Van Tuyl Group). 2
3 and we are on the edge of an industrial revolution, Industry 4.0 Industry 4.0 The fourth industrial revolution Technology push Market pull MOBILE CLOUD ANALYTICS 1 Modern car birth year German inventor Karl Benz built the Benz Patent - Motorwagen 2 Production line The creation of the assembly line by Henry Ford revolutionized the automobile industry 3 Automation robots Unimate was invented by Devol and installed in a plant to lift hot pieces of metal from die casting 4 4 th generation It envisions Smart Factory through the use of cyber-physical systems Degree of complexity AUTONOMOUS DRIVING CONNECTED VEHICLES MOBILITY SERVICES M2M ONLINE SALES SOCIAL ELECTRIC VEHICLES 3D PRINTING First gasoline powered automobile 1886 First production line, 1913 First digitally operated and programmable robot invented in 1954 CHANGING CONSUMER ROBOTICS Time EMERGING MARKETS 3
4 Digital Enterprise The 3 Dimensions Information at the speed of light Innovation & Openness Transformation 4
5 Industry 4.0 Framework 5
6 Ultimately, This Is About Connecting the Dots Direct Labor -5 to -15% Maintenance -5 to -15% Service Level +1 to +10% Product Rejects -10 to -20% Other Ops Overheads -5 to -20% Customer satisfaction +1 to +10% Transport -15 to -30% Inventories -10 to -20% Claims -5 to -30% Source: MIT / Capgemini Consulting R&D Labs, proprietary Databases, Digital Manufacturing Impact (2 to 5 years) 6
7 Key Enablers of Industry 4.0 Agile Collaboration Networks: The shift in horizontal integration towards a flexibly defined extended enterprise, enabling manufacturers to focus on core competences yet allowing them to offer customized products in any market. Connected Supply Chain: Formed through the vertical supply network by recreating supply flows on a virtual level, allowing the seamless integration and automation of physical processes and providing companies with dramatically increased transparency. Decentralized (Market Driven) Production Control (DPC): Radically transformation of today s production planning and control is underway. Instead of controlling the shop floor through a central MES system, cyber-physical production systems will be able to make decisions locally, thus decentralizing production controls. Integrated Engineering: Integrated Engineering through the entire value chain, from Product Development through Service. Cyber Security: Securing access to manufacturing infrastructure enabled with Internet of Things (IoT) technology. Data : Tools to ingest, analyze and gain advantage from large amounts of data for efficiency, quality and competitive advantage. 7
8 Key Lessons Learned of Industry 4.0 Orchestrate an open ecosystem of partners Develop a value-driven and pragmatic approach Launch an agile multi proof-of-concept strategy Fail fast, succeed faster Align digital strategy with business strategy cultural impact Onboard IT as a business partner Master your data 8
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