Industry from vision into the factory Prof. Dr. Dr. h.c. Detlef ZUEHLKE Executive Chairman smartfactorykl e.v. Kaiserslautern / Germany

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1 Industry from vision into the factory Prof. Dr. Dr. h.c. Detlef ZUEHLKE Executive Chairman smartfactorykl e.v. Kaiserslautern / Germany

2 History and challenges

3 Personalized products are coming seconds weeks We need 1 Day days Deliver Choose and personalize CLICK hours Ship Produce Short delivery Demanding High flexibility customers 4

4 Reshoring production Use Design Use Use Produce Use to Mass customization Regional production Online driven Immediate delivery Design Design Produce Design Produce Produce from Advances in IT Shorter product lifecycles Mass production Cost driven Long delivery times 5

5 Game changing technologies CPS edge computing Cloud computing Big Data Analytics AI technologies e.g. Deep learning Ethernet TSN/SDN OPC UA 5G wireless network UX-Design 6

6 Digital Transformation of the Industry Teleservice Remote Expert Intranet Remote Services Cloud VPN Internet Order ERP MES CP Factory Supply Chain 5G Internet Reliable WLAN Router WLAN NFC mobile devices Supply chain Production Lan Invoicing Manufacture Logistics Intralogistics CP Factory location Intralogistics Delivery Customers Logistics IT systems Cyber security Networks Workforce 7

7 2006 iphone The History of Industrial Automation the buzzword INDUSTRIE CIM-Era Lean-Era Smart-Era Industrie 4.0-Era AI-Era Industrial Automation AI-Era Internet of Things Smart Home Ambient Intelligence WLAN Bluetooth Zigbee OPC-UA Plug n Play Ethernet-TSN Augmented Reality IT-computer sciences Internet-Era SoA/Agent-Era Big Data-Era Cloud Edge AI-Era 5G Deep Learning Predictive Analytics

8 S martfactory KL from research to practice The Industry 4.0 / smartfactorykl History -- SME-- IoT Smart homes HighTech strategy Research Transfer HH

9 S martfactory KL from research to practice Industry Labour Unions

10 Technologies

11 S martfactory KL from research to practice Towards smart modules IP-Adress µweb server Network Services Cyber-Physical System Electrical Signal Controller Field Bus Messages Controller Fundamental Principles Self Identification (who am I?) Services Exploration (what do I offer?) Autonomous Networking (who are my partners?) Field Device

12 SmartFactory KL from research to practice The modular agile factory kit needs a stack of standards Production line Production modules Interoperability Standards Communication Standards SEMANTIC SERVICE DESCRIPTION OWL OWL-S SAWSDL ISO-OSI Asset Administration Shell Info models OPC-UA TCP/IP SoA-Services Ethernet-TSN, WiFi, 5G Electromechanical Standards UMC Universal Machine Connector

13 S martfactory KL from research to practice Standardization in progress Reference architecture model RAMI 4.0 Asset administration shell

14 S martfactory KL from research to practice Separation of Hard- & Software App-Store Sales Sales Software Firmware Electronics App Meas App Filter App History Problems Reliability issues Responsibility issues Certification issues Version control issues Cyber security issues Cost sharing issues Third Party Mechanics Supplier Technical device Sales Operation Customer

15 The smartfactory KL where Industry 4.0 was born

16 The Association Our vision: Competence and transfer center for the demonstration of innovative ICT in manufacturing Key data: Foundation: 2005 Legal form: Non-profit registered association Executive Prof. Dr. Detlef Zühlke (Chairman), Andreas Huhmann (Harting), board: Dr. Thomas Bürger (Bosch Rexroth), Klaus Stark (Pilz) Members: 51 Companies and research organizations from 8 countries Employees: 50 employees Financing: Membership fees, research projects, industry projects, donations SmartFactory KL is located in the DFKI building

17 The partners of SmartFactory KL Date: October 1, 2018

18 SmartFactory KL - a success story Work together - learn together - present together Cyber Security Networks Standards ERP MES First vendor-neutral full-scale testbed for Industrie 4.0 application Modularity Machine USB Human support everything Plug n Play

19 S martfactory KL von der Forschung in die Praxis First Products on the market Energy Control, Firewall, Power Distribution Backbone-Box Product memory Module localization 3x400V Emergency Stop Compr.Air Network Maschine-USB -Connector Smart safety system Flexible conveyor locks

20 Competence Centers IND40 for SME Funded by 24 competence centers IND40 4 SME agencies Inform and qualify SME s Transfer Industrie 4.0 knowledge and technologies Demonstrate the future of manufacturing and offer testbeds for SME developments Workforce qualification Kaiserslautern Saarbrücken Kiel Hamburg Bremen Lingen Hannover Berlin Magdeburg Dortmund Siegen Chemnitz Koblenz Ilmenau Darmstadt Augsburg Stuttgart Rostock Cottbus

21 Market drivers Conclusion

22 The Vision for the 4th Industrial Revolution Benefits for Enterprises and Society Economic Individual products under the conditions of mass production Increased productivity and agility: minimize time to market Value generating processes are optimized to customer demand in real-time Environmental Energy- and resource-efficiency (up to -50%) Increased sustainability (Circular Economy) Urban production : closer to employees homes Social Better Work : Work-life-balance and appeal of work Autonomous systems support social inclusion Onshoring vs. offshoring Growth potential for Germany: > 100 billion Euro until 2025

23 S martfactory KL from research to practice Industrie 4.0 worldwide competition 6.6% 46% 7.8% CESMII 640 Mio$/5 yrs Gov+Ind 320 Mio$/5 yrs states 8.9% DMDII America Makes 670 Mio / 5 J. Germany EU CH 14.5% AUT?? China?? Korea 2.6% Japan USA IT-driven Low production Low qualification 2.1 % Industry + Government driven High production High qualification SME structures Government driven Huge production but still on low level Low qualification Industry driven High production High qualification Market share 2015 Industrial Control Equipment

24 Industrie 4.0 what have we achieved? A worldwide attention to shape future production driven by new market requirements Worldwide intensive cooperation Active development of worldwide standards From research to first applications From ideas to first products on the market From smart actuators and sensors to smart supply chains The insight for leadership and workforce development Recognize production as essential for economic success

25 Industrie 4.0 what are the upcoming challenges? Watch the market driven changes to the world economy Prepare for more rapid changes Think in networks act in networks Think big start small Help the SME s to stay competitive Keep your employees in the loop Train your people in digitization of processes Indentify new business models driven by digitization Watch the benefits of new technologies e.g. AI, industrial 5G

26 Thanks for listening! Detlef Zuehlke Executive Chairman SmartFactory KL e.v. Trippstadter Straße Kaiserslautern / Germany zuehlke@smartfactory.de