Industry 4.0 Industry status and examples IWF2018 Session MFG 1

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1 IWF2018 8/24/2018 Bio Presenters Industry 4.0 Industry status and eamples IWF2018 Session MFG 1 Urs Buehlmann Virginia Tech Mathias Schmitt White Rocks Matthew Bumgardner US Forest Service Dan Gibbons Haworth, Inc. Georg Frey Lignum Consulting, Inc. Peter Tuenker, IMA Schelling Group, USA Joerg Rosemeier, IMA Schelling Group, USA Agenda Agenda Housekeeping Housekeeping Introduction 5 minutes Definition 5 minutes Recent advancements 5 minutes The vision of an Industry 4.0 company 10 minutes The 7 key elements 20 minutes Applications how it can be done 15 minutes What does it take to make it happen? 15 minutes Key points 5 minutes Q&A 10 minutes Turn off cell phones and e-devices Let us know about any problems/needs Speak up Copies of the presentations at: resources/ or, alternatively, at the MYS Show Planner Introduction Industry 4.0 Industry 4.0 promises improved customer interaction Introduction enhanced customer services more customized products reduced through-put times reduced costs enhanced efficiency/productivity energy efficiency Industry 4.0 also called "Industrial Internet of Things (IIOT)" Industry 4.0 1

2 IWF2018 8/24/2018 Nine years of studies in collaboration with Virginia Tech, the U.S. Forest Service, and Woodworking Network/FDMC Year-over-year changes in sales volume for secondary woodworking firms *+,-+./"01"2,34" )!" (!" '!" &!" %!" $!" Year % losing sales volume #!"!" Much worse Somewhat Slightly worse Slightly better Somewhat Much better Unchanged worse better 08 to to to to to to to to to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ntroduction Recent Woodworking Industry Survey Percent of firms Collaborating with customers Design Manufacturing processes Accounting Inventory tracking Supply chain management Over the last 3 years, have you increased use of computerization in: Collaborating with customers Design Manufacturing processes Accounting Inventory tracking Supply chain management Definition "A majority of firms increased computerization" Industry 4.0 2

3 IWF2018 8/24/2018 Definition Industrial revolutions Definition The vision Programmable First standardized logic controller processes in Assembly line (PLC) (Ford) ship construction in Venice (Morley) Toyota Steam engine Production Large scale System (TPS) outsourcing (Watt) Industry 4.0 =BC? =EE? =>?? =>=? =>A? =>B? =>C? =>D? =>E? Deming's Standardization Buyer's market 14 points Mechanical of work Lean Production loom (Taylor) (Jacquard) Scientific management Quality (Taylor) control (Radford) We are at the threshold of the 4 th industrial revolution. Industry 4.0 will: bring change at a speed, scale, and force never seen before affect the very essence of our human eperience allow system-wide, radical innovation create realities previously unthinkable "Industry will improve the state of the world... ( Definition The pillars Big data and analytics Autonomous robots Simulation System integration The internet of things The cloud Additive manufacturing Augmented reality Recent Advancements Industry 4.0 the digitization of the entire value chain Recent Advancements Recent Advancements Recent Advancements Artificial Intelligence and Vision Considerable advancements in: Computing power Networking power Artificial Intelligence (AI) Vision capabilities Communications "We stand on the brink of a technological revolution... (Schwab 2016)" Artificial Intelligence and Vision are seen as game changer Industry 4.0 3

4 IWF2018 8/24/2018 Recent Advancements Operations eample of vision systems Recent Advancements Eample of AI and Vision in action Vision and AI have changed product quality epectations Detection, learning, and decision making abnormalities The vision One vision for manufacturing The Vision Customer-centric More versatility, optimum resource efficiency, and unlimited personalization Connected production through entire value chain Global connectivity Simulation of entire process Zero errors from first part "... No two cars will ever be alike again... (Bosch 2016)" Forest Products Industry Processes - past Forest Products Industry Processes - present Industry 4.0 4

5 IWF2018 8/24/2018 Forest Products Industry Processes - future The 7 key elements to Industry 4.0 Summary Key Points Summary Industry 4.0: customer centric smart factories resource efficient connectivity throughout entire value chain error-free production from the first to the last part "Industry 4.0 encompasses end-to-end digitization... (PwC 2018)" Summary Acknowledgements Sources Sources All speakers and companies making this session possible IWF for providing the opportunity Jessica Kirn for organizing this session Students from Pittsburg State University for managing this session Slide Housekeeping: Slide Industry 4.0: Slide Recent Survey: Slide The Vision: Slide Recent Advancements: Slide One View: Key Points: Acknowledgements: Thank you for attending this session! Industry 4.0 5

6 IWF2018 8/24/2018 Industry Industry status and eamples Lignum Consulting a short introduction Date:!"#"$%&'(%)*&'+,-& by: Georg Frey Consulting, Planning and Organization for the International Wood and Furniture Industry discover opportunities! discover opportunities! Introduction of Lignum Consulting Who we are! We are an independent engineering office, working industry-specific for the international wood and furniture industry.! We focus on the technical, organizational and operational consulting of our clients.! We create value for wood and panel processing companies, by transforming and aligning business processes. We work hands-on, from concept to project realization.! Our team of innovators has etensive industry knowledge and eperience required for successful project implementation.! A typical profile of our consultants includes an apprenticeship in cabinetmaking, an engineering degree in wood and panel processing, a degree in business and etensive work eperience throughout all levels of an organization.! Founded in 2003, today we employ a team of 30 in our offices in Kupferzell (Germany), Cary, NC (USA) and Sao Bento do Sul, (Brazil). " The leading eperts for the wood- and panel processing industry Introduction of Lignum Consulting Eamples of our work! Strategic development of organizations! Plant planning and re-organization.! Layout and work place design in alignment with the manufacturing-organization concept.! Machine specifications and implementation / run-off support! Design of process and information flows! Introduction of lean production principles, resulting in material flow acceleration, lead time reduction and inventory reduction.! Development and implementation of performance measurement systems for controlling and production support.! Product value engineering and product variations management. discover opportunities! cloud computing Industry 4.0 Digitalization Connected Factory Data Integration smart products big data Internet of Things Factory of the future Advanced manufacturing Industry 4.0 1

7 IWF2018 8/24/2018 Why - Connected Factory? The 7 key Elements to the connected factory to manufacture more customized, more fleible, faster and more reliable to continuously enhance the entire process chain from order configuration at the POS & Order Processing, to Production, to Assembly and Installation The process How does your company rate on the 7 Key elements? Are you ready for industry 4.0? discover opportunities!! We will walk together through the 7 key elements of the connected factory. # Meanings, questions and eamples! Based on eamples you can rate your company in each topic. # Use your own judgment (the idea is to generate potential for discussion & improvements)! Mark your rating on the form # Center poor to Outside ecellent! Connect the marks with a straight line # This will help to visualize your profile! Write down your company name, industry and contact # Or if you like do it anonymously! Write down your key topics/issues # Where do you see the biggest need for improvement.! Take the original document with you for discussions with your team. The process - create your company profile Strategy Key Questions: Is your company strategy aligned towards the connected factory? ACME Custom Kitchens 100 Employees! Are the investments and projects in alignment with the requirements for the targeted key competencies. Which processes will the company focus on and strategically develop/invest in (automate)?! Are integrated processes to strategic network partners in place?! Is the goal to become more automated/integrated a clearly defined company target communicated to all employees.! Is capital planning not only done for machinery investments, but also for investments in training, organization/processes and systems?! Is the company willing to invest in automation and systems, even if longer payback times are required?! Is the company willing to invest in people who can take company to the net level? Industry 4.0 2

8 IWF2018 8/24/2018 Product Organization Key Questions: Is your product offering in alignment with your market needs and internal capabilities? Key Questions: Is your organizational model defined and can be used to drive integrated processes.! Are standardized construction principles in place to allow fast product/project development in place w/o re-inventing the wheel all the time. # Pick and choose from standard construction principles that give the impression of custom product.! Is your casework product construction rule based and can be handled by product configurators? # No manual intervention required to generate product data.! Is your product designed to fit more automated manufacturing processes? # Avoid additional / manual processing outside the defined processes/ manufacturing capabilities of the main processes. " E.g. utilization of defined reveals vs. flush-mount case construction! Do product platforms get used to generate variants and keep the internal stock at a min. and simplify order processes.! Are the roles and responsibilities clearly defined? # E.g. programming done in the office not at the machine all machining is done prior to assembly! Do you have defined and documented processes for the main business functions. # E.g. production (defined routings for all parts), defined organizational loops for part families or processes, such as re-work. Or do you rely on tribal knowledge to process orders?! Do your production information fully support and align the manufacturing processes? # Do operators have to modify or enhance provided information to get to the information they really need? # Are parts identified by bar-code or RFID, or do operators need to identify parts on shopdrawings?! Do you have scheduling rules in place? # Does the system provide a sequence for the operators or are people choosing their own priorities?! Do you have functioning continuous improvement process in place? # 5S, preventive maintenance, quality systems, tool management, etc. X Organization - Eample: Defined processes and information flows Technology Key concept: Develop the ideal level (not necessarily highest possible level) of integration of the main equipment based on the process requirements.! Is the equipment ready to be data-driven/ integrated? # Or is the equipment more standalone, depending on operator input?! Is there an automation/integration strategy in place (growth plan in steps)? # Growing into automation. Building in manual processes that will be automated over time as the organization learns to deal with automation.! Are the supporting functions in place to run the automated equipment on high performance? # Pro-active Maintenance management; On-line support from machine suppliers; Engineering support; Tool and materials management; Data support.! Is technology/data used to guide operators? # Use of laser positioning of hardware vs. jigs and fitures? Fully integrated processes for mass custom product! Eample for automation in the industry! Fully integrated material handling Automated production islands for fleible production needs! Eamples for automation custom shops! MES driven for synchronized production flow (same data drives all processes)! Material handling with fleible carts Integrated board storage / Saw / Nesting Central control (MES functionality) CNC controlled edgebanders CNC Drilling/routing/doweling Bo on demand Source: 3tec Source: Internet Industry 4.0 3

9 t t Outpu t Outpu t IWF2018 8/24/2018 Data integration Key concept! The upfront effort of data generation requires time and effort (esp. for 1-off/custom product) therefore the data must be utilized well throughout the processes. # Higher efforts in the preparation speed up the production processes.! Be it fully automated or with people who bridge the media breaks amongst the applications, today it is important to establish a seamless data integration throughout all system layers.! It s important to look at the entire process chain, today s as well as tomorrows, from order generation to product and process data generation all the way through to the machine integration Key questions! Can the data model be used to generate product and process data?! Do the systems provide all required information with the least amount of data generation effort? speed! Are the functionalities of the different software layers (ERP, CAD/CAM, MES, Machine data) clearly defined and system components used at their strength?! Is there a interconnected, integrated, automated data flow from dealer to factory to final consumer? fleibility Data Integration Production Planning Level ERP Enterprise Resource Planning Order Entry, Capacity Planning, Material Managment, Shipping, Finance, Human Resources Production data Level Production Control and Eecution Level Detail planning and control Equipment Management Machine eecution and data feedback level Mass custom product Engineering configurator Production Control Technology MES Manufacturing Eecution System Material Management Engineering Data BOM generation, Production data generation, Optimization data CNC Codes Materials demad Employee Management CAD/CAM (2D/3D) Data- Collection Total custom product Output Analysis Machines and Equipment Machines Integration, Automation, PLC Controls Quality Management Information Management Planning Data Collection (internal)logistics (internal)logistics - eamples! Key Questions: Are your logistics process geared to be data driven? Material flow routing Industry: Supply routes (Milk run) or AGVs! Does the applied technology and equipment for material logistics and transport match the business requirements? # Warehouse management systems (WMS), Automated storage and retrieval systems (ASRS) # Pick by light/voice, Self-guided vehicles, Logistic carts, RFID's! Are all material and inventory locations clearly identified and can be used for data driven processes? # No material request forms to be filled out manually, etc. Material flow Source: Linde Smaller shops: intelligent material staging Source: dpm! Does the layout design accommodate self guided vehicles or logistic trains? # Clear, wide aisles, large enough turning points, no dead-ends.! Does your IT support automated logistics processes? Before Pull-System Inpu Work in - Progress After Closed Cycle Push- System Inpu Work in - Progress hardware panels (internal)logistics - eamples People Supermarket Supermarket Supermarkt Order Picking Systems Pick-by-light Pick-by-voice Pick-by-vision Quelle: Fml TUM Key concept! Automation/integrated processes require less, but higher skilled and highly motivated people. # Turnover will be more costly.! A shift will take place from shop-floor workers to support functions. # Traditional white collar vs. blue collar metrics will not work anymore. Quelle: swisslog Key questions Kanban for standard items Inventory management WMS / MES Rack Cart parts Pick-by-light Put-to-light into cart from rack or VLM parts VLM! Is the company willing to hire higher skilled people and pay a premium?! Is the company actively searching and acquiring the talent needed to drive integration? # Shift from cabinet maker to mechatronics - hire a different skill set! Does the resource pool of the company provide the skills required? # Do you have a network of professionals to buy out certain skills?! Is there a formal system in place to continuously train and educate the people instead of passing on tribal knowledge on the job?! Are there initiatives/ systems in place that keep people motivated and engaged? Industry 4.0 4

10 IWF2018 8/24/2018 The process - what needs to be done to create an even profile Final thoughts Industry 4.0 is there and it is there to stay - for the industry and smaller businesses! Thank you very much for your interest and participation. ACME Custom Kitchens 100 Employees ACME Custom Kitchens 100 Employees Align strategy Document all processes Eliminate data gaps Implement MES Write down your key topics/issues - Where do you see the biggest need for improvement. Contact Lignum Consulting USA Lignum Consulting Inc Kildaire Farm Road, STE 200 Cary, NC President: Georg Frey Phone: +1 (919) info@lignum-consulting.com Germany Lignum Consulting GmbH Am Wasserturm Kupferzell President: Dieter Rezbach Phone: +49 (0) Fa: +49 (0) info@lignum-consulting.de Brazil Lignum Consulting Ltda. Av. Argolo, 4 Edif. Dona Erica, Sala São Bento do Sul Santa Catarina/ Brasil President: Oliver Barge Phone: Fa: lignum@lignum-consulting.com.br Industry 4.0 5

11 !"#$%&'( ')$*)$%&'( Keys to Success with 4.0 Automation (/67849(8-/(:+842(( +4B/($%(1450.2(C5D4(1:-0(E?4(5+,(>4/(7/(07></2(( Keys to Success with 4.0 Automation O+> >(P(Q1./4?(F4.7>+40.9(C (F5/5(Q/4650,.( 8:?J0:?7.4(5(,51(:A(J0:,-8E:+2( Keys to Success Cont 8:+/058/2(( 8:./.(1:-(^&%%%(J40(<:-0(/:(<5=4(5(?58<7+4(,:6+(+:69(7?5>7+4(1:-Z04( 5-/:?5/4,(.1./4?(5/(^&%9%%%(J40(<:-02(( Keys to Success :+(/<4.4(.<7b.2(F:(1:-(<5=4(/<4(7+84+E=4.(/:(.-JJ:0/(/<7.d(((!+,-./01(*2%( &(

12 !"#$%&'( ')$*)$%&'( Industry 4.0 in the furniture industry Industry 4.0 What does it take to make it happen? %( %( %( IWF 2018 %( %( %( %( IMA Network Integrated solution for the turnkey process Industry 4.0: How it works! 3450,(./40567( 8-9+6( :,67;5+,<+6( A..7B;><+6( E5FG56<+6(?C<DD<+6(!"#"$"%" #<+<.C7,(D04,-F/()(075,1(H40(,<.D5/FC( Outlook Increasing product diversity, individualization, automation and fleibility More comple customer demands on material colors, haptics and optics Low material inventories Furniture manufacturing with a push of a button! Economic implementation with efficient logistic needs a batch size 1 system with intelligent control systems Eample Concept - Smart Kitchen Cabinet Factory!+,-./01(*2%( &(

13 !"#$%&'( ')$*)$%&'( Batch Size 1 Smart Factory Design Project definition Fully automated batch size 1 manufacturing concept for kitchen, bathroom and residential furniture consisting of: Storage & retrieval system with rest board material handling Cutting Edgebanding Commissioning Drilling and assembly line 8/22/18 IWF 2018 Industrie Layout Schelling Storage & Retrieval System + IMA Performance Cut Layout IMA Performanc.cut & transport logistic with smart tag label application I( J(?/5+,50,(3450,(M5/70<5>.( KEL( V = Locations for pre-commissioned stacks R = Locations for rest board materials HPL = Locations for HPL laminated board materials(?7d505/7,(.5h7/1(5075.(;7/n77+(f-9+6(5+,(./40567( "(#40(5-/4+4B4-.(D04F7..<+6(F5D5;<><@7.( 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry Layout IMA Buffer + IMA Novimat Edge Circulation Loop Layout IMA Buffer & On Demand Sorting "(OD(/4(*%%%(D5..7.)(.C<P( 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry !+,-./01(*2%( $(

14 !"#$%&'( ')$*)$%&'( Sorting Overall Layout IMA Robotic: Sorting and commissioning of cabinet parts for the assembly line Pick-up and drop-off of parts from roller conveyors with two (2) lifting racks Lifting rack 1. pick-up Lifting rack 2. drop-off Variable stack heights Capacity: up to 1500 parts, depending of " Part dimensions Batch sizes, 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry Control system / control level Overall material flow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ndustry /22/18 IWF 2018 Industry Bypass strategy & quality control Smart Factory Video Bypass on the rear side of the Jalousie buffer Quality control Removal of parts after the edge circulation loop Re-introduction of parts after the Jalousie buffer (with wireless handheld scanning device) 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry !+,-./01(*2%( Q(

15 !"#$%&'( ')$*)$%&'( Smart Factory Installation Smart Factory Installation 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry Smart Factory Installation Smart Factory Installation 8/22/18 IWF 2018 Industry /22/18 IWF 2018 Industry K75,_-50/70T (!+,-./0<7./05..7(QU(Q$Q&$(L-7;;7FG7U(^70B5+1( 84+/5F/T (M02(`4706(J4.7B7<70 (( M4;<>7T( :em5<>t( (a*b(&c&(ddeb*eccc(((((((((((((((((((((((( ([ B7<70f<B52,7( Vielen Dank für Ihre Aufmerksamkeit!... thank you for your attention!!+,-./01(*2%( *(