Driving the Digital Transformation On the way to Industry 4.0
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1 Driving the Digital Transformation On the way to Industry 4.0 Leonardo Cipollini UNINDUSTRIA Reggio Emilia - 29 Aprile 2016 Realize innovation.
2 Leonardo Cipollini Business Development Director MM Digital Factory Division Product Lifecycle Management Siemens Industry Software S.r.l. Page 2
3 Siemens Division Structure Flat market driven organization Go-to-market Americas Middle East, CIS 1) Europe, Africa Market Asia, Australia Global Healthcare Separately managed Power and Gas Wind Power and Renewables Energy Management Building Technologies Mobility Digital Factory Process Industries and Drives Healthcare Financial Services Divisions (Global P&L) PG WP Power Generation Services PS EM BT MO DF PD HC SFS Corporate Services Managing Board Corporate Core 1) Commonwealth of Independent States Page 3
4 Siemens Digital Factory Division Organization Digital Factory Division Factory Automation Control Products Product Lifecycle Management Motion Control ecar Powertrain Systems Customer Services World market leader in automation with integrated automation portfolio for all industries Products and systems to switch, protect and control low-voltage consumers Proven software solutions to create, validate and manage product and process knowledge across the product lifecycle Global leading supplier of products, systems and solutions including services: Drives, Motion Control Motors, CNC Solutions for machinery and plants High quality powertrain components and charging systems for series production of electric and hybrid vehicles Integrated service offering from a single source throughout the product lifecycle Integrated product portfolio paves the way for the Digital Enterprise. Page 4
5 Profile (Italy) Organization B.U. of Siemens Digital Factory Division Headquarters Plano, Texas Over employees (>160 in Italy) Products/Solutions (Milano, Torino, Modena, Novara, Treviso) PLM Software and Services Market shares > customers (> 4100 in Italy) > 11 Million user licenses Page 5
6 Driving the Digital Transformation On the way to Industry 4.0 Realize innovation.
7 Page 7
8 The data volumes are exploding More data has been created in the past two years than in the entire previous history of the human race. By the year 2020, about 1.7 megabytes of new information will be created every second for every human being on the planet. Within five years there will be over 50 billion smart connected devices in the world, all developed to collect, analyze and share data. By 2020, our accumulated digital universe of data will grow from 4.4 zettabytes today to around 44 zettabytes, or 44 trillion gigabytes. Page 8 Source:
9 Page 9
10 Veränderungen in der Kommunikation Page 10 Source: The Washington Post Online
11 Veränderungen in der Kommunikation Page 11 Source: The Washington Post Online
12 Products are Getting Smarter and More Connected Page 12
13 Smart Innovations Are Transforming Every Industry Automotive and Transportation Medical Devices and Pharmaceuticals Cars that drive themselves. Implants made just for you. Aerospace and Defense Energy and Utilities Pilotless planes launching markets. Energy that self-optimizes. Page 13
14 Smart Innovations Are Transforming Every Industry Consumer Products and Retail Electronics and Semiconductor Coffee that knows how you like it. Sensors tattooed onto your skin. Industrial Machinery and Heavy Equipment Marine and Shipbuilding Machines that make themselves. Ships sailed by on-shore captains. Page 14
15 Smart Innovations Aren t Just Improving Products; They re Transforming the Business Landscape Phones that take photos. Cars that drive themselves. Planes without pilots. Innovation: Camera makers leverage digital technology to replace film. Transformation: Smart phone manufacturers leverage the internet to replace digital cameras. Innovation: Automakers develop advanced driver assistance systems. Transformation: New players leverage driverless cars to challenge the conveyance model. Innovation: Aerospace companies make pilotless drones for defense. Transformation: Pilotless aviation serves as catalyst for innovation in security, e-commerce and photography. Page 15
16 How Prepared Are You to Change Your Business? The products, business models and legacy positions that once gave companies their competitive edge are no longer secure. Page 16
17 Transformational Forces Behind These Smart Innovations Transformational Force Rate of Improvement 2025 Economic Impact Internet of Things Cloud Technology 300% increase in connected devices over past 5 years Tens of billions SMAC users by 2025 $36 trillion Operating costs of key affected industries $1.7 trillion GDP related to the Internet 3D Printing Technology 4x revenue increase for additive manufacturing in past decade $11 trillion Global manufacturing GDP Knowledge Automation 400+ million increase in users of intelligent digital assistants $9+ trillion Knowledge worker employment costs Advanced Robotics 8% CAGR, growth in sales of industrial robots, $6 trillion Manufacturing worker employment costs Page 17 Source: McKinsey Global Institute research 2013
18 Competing in a World of Constant Transformation How can these transformational forces improve your ability to innovate? Page 18
19 The Gartner s Hype Cycle Page 19
20 The Gartner s Hype Cycle Page 20
21 Gartner s 2015 Hype Cycle for Emerging Technologies Page 21
22 Siemens terms its approach to Digitalization in industry and its way towards Industry 4.0 the Digital Enterprise Page 22
23 Page 23
24 Workflows in process / discrete industry differ Digital Enterprise Process Industries Discrete Industries Product design Processand plant design Engineering Operation Services Product design Production planning Production engineering Production Services Product design starts in the laboratory Process design P&ID Detailed engineering electrics, DCS engineering, piping, 3D plant design Sensors: temperature, pressure, flow, weight, analytics, Actuators: pumps/agitators, valve positioners, heating/cooling Hazardous/explosive environment Product design and Production planning in CAD/CAE Machine and Line Automation driven by mechatronic CAD/CAE Sensors : proximity, encoders, position, motion Actuators: hydraulics, servo-motors, linear drives Page 24
25 The Internet is revolutionizing the business world and creates major challenges for manufacturing companies Page 25
26 Industrie 4.0 Defining the way forward in industry in the internet age An initiative of the German industry sponsored by the German Government Cornerstones of the initiative Industrie 4.0 Horizontal integration of the value-add networks Seamless integration of the engineering of the entire value-add chain Vertical integration and networked production systems Source: acatech, April 2013 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0 Page 26
27 Survey of 235 companies from 5 sectors with headquarters in Germany, substantial investment is needed By 2020, European Industrial companies will invest 140 billion annually in Industrial Internet applications In 5 years, more than 80% of companies will have digitalized their value chain The industrial internet creates better productivity and resource efficiency- an 18%increase in efficiency within 5 years Digitalized products and services generate approx. 110 billion of additional revenues per year for the European industry The Industrial Internet transforms the entire company and must be part of the CEO agenda. Source: PriceWaterhouseCooper Report Page 27
28 How prepared are you to change your business? The products, business models and legacy positions that once gave companies their competitive edge are no longer secure. Page 28
29 Manufactures are conscious of being the beginning of a new industrial revolution smart manufacturing marries information, technology and human ingenuity to bring about a rapid revolution in the development and application of manufacturing intelligence to every aspect of business.. Humans, devices and systems are connected along the entire value chain All relevant information are available in real-time across suppliers, manufacturers and customers Parts of the value chain can constantly be optimized with respect to different criteria, e.g. cost, resource utilization, customer needs It will fundamentally change how products are invented, manufactured, shipped and sold. First Industrial Revolution The introduction of mechanical production plants driven by water and steam until the late 18th century First mechanical loom Second Industrial Revolution Mass production, introduction of electrical power driven systems, division of work on line production systems First assembly line Cincinnati slaughter houses Third Industrial Revolution Introduction of electronic systems and computer based automation of production First programmable logic controller (PLC) Modicon 084 Fourth Industrial Revolution DIGITALIZATION Based on the use of cyber-physical systems trasforming traditional factories from cost center into profit center. Cloud Horizontal/Vertical SW Integration IOT and Industrial Internet Simulation Cyber security Automous and collaborative robots Additive manufacturing Augmented reality Page Time Big Data and analytics
30 Factory 4.0. the fully connected way of making things CYBER SECURITY > Stronger protection for Internetbased manufacturing > Technology products with longer life cycles CLOUD COMPUTING BIG DATA > Making sense out of complexity > Creativity > Collaborative manufacturing LOGISTICS 4.0 > Fully integrated supply chain > Interconnected systems > Perfect coordination 3D PRINTING/ ADDITIVE MANUFACTURING > Scrap elimination > Mass customization > Rapid prototyping SENSORS > Zero default/deviation > Reactivity > Traceability > Predictability Page 30 COLLABORATIVE ROBOT > Real-time autonomy/productivity > Full transparency (contextualization, comprehensiveness, collaborative robot) on data reporting ADVANCED MATERIALS > Smart value-added products > Technical differentiation > Connectivity
31 Integrating the digital and real world Product Information is enriched throughout the life cycle The digital model is always up to date and will be expanded throughout the life cycle Production planning Productdesign Production- Engineering Production Service Digital World Digitalization Requirements Product Structures Virtual Models Planning Work instructions Quality information Productions-Simulation Digital Equipment Configuration Validation Virtual Commissioning Integrated Plant Ramp up / Operation Monitoring Optimization - CI Service Documentation Maintenance Condition monitoring Real World Page 31
32 In order to remain competitive manufacturing companies need to achieve enormous improvements in their processes Reducing the time to market Enhancing flexibility Increasing Quality Increasing efficiency Shorter innovation cycles More complex products Larger data volumes Individualized mass production Volatile markets High productivity Closed loop quality processes Traceability and integrated genealogy Energy efficiency and resource efficiency as key competitive factors Product and production integrated Flexible production Full process transparency Optimized production resources Page 32
33 Activity Market competition requires costs optimization, continuously improve productivity and be agile respond to customer demands. Time Time to market SOP During last years to be competitive, manufacturing companies had to: shorten time to market streamline and integrate their processes work closely with customers to identify and produce tailored solutions make more flexible production to suit more rapidly the demands of the market. Time to market SOP The goal is not achievable without modify dramatically the manufacturing processes to make them more integrated and efficient as possible. The key enabler of the change is the adoption of specific digital technologies and SW systems dedicated to enlarge the performance of each sector and, in the same time, making possible a real integration and collaboration among the sectors. The strategy is to have all departments which working together as part of the same process supported by IT systems. Page 33
34 Most of the manufacturing organizations are structured by separated silos which doesn t help a real process integration Organization Product Functions Engineering Features Product segment Development platforms Process Planning Technology Factory Layout Production Line design Plants Work areas Equipments Shop floor Focus Product documentation Process documentation Product Manufacturing Reference Data Model 3D Models Engineering BoM Manufacturing Resources BoM Routings Product Structure as designed Product Structure to be produced Operations Resources Business Process logic Physical Plant Complexity Production plan In many cases the data communication among different IT-systems impede a real collaboration Page 34
35 Only a holistic approach improving all processes along the entire value chain will fulfill the targets From virtual to real and from concept to service Page 35
36 Use case: Plant Volvo Realize innovation.
37 Page 37
38 Page 38
39 Use case: Ford Realize innovation.
40 IntoSite The smart Map for your Production Facilities IntoSite is a new web application that: Takes Google maps idea into the production facility turning it into a Knowledge Network that complements traditional IT systems Enables 3D navigation through production facilities Provides simple access to Digital Manufacturing and Production info in 3D context from almost any IT System Page 40
41 Enables 3D navigation through production facilities Page 41
42 Use case: Optima Realize innovation.
43 Page 43
44 Order now! GO Page 44
45 Today 18 product variations Page 45
46 In the future 56,000 product variations Page 46
47 Page 48
48 Optima Page 49
49 Progettazione 3D e simulazione meccatronica (MCD) Page 50
50 Progettazione e simulazione di impianto Page 51
51 Realize innovation.
52 Optimizing Innovation Within the Digital Enterprise Siemens PLM portfolio capabilities Product Lifecycle Management Manufacturing Operations Management Integrated Production Automation Page 53
53 The Product Lifecycle Management functional areas Portfolio Management Project Management Document Management Requirements Management Mechanical Engineering Software Development Electrical Engineering Configuration & Change Management BOM Management Supplier Relationship Management Reporting & Analytics Manufacturing Planning Page 54 Technical Documentation
54 The Digital Manufacturing functional areas Part Manufacturing Assembly Planning Plant Optimization Human Performance Quality Planning Production Management Page 55
55 Page 56
56 Realize innovation.
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