Smart Manufacturing Preparing for Industry 4.0

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Smart Manufacturing Preparing for Industry 4.0 Dr. Raffaello Lepratti VP - MOM Business Development & Marketing Realize innovation.

Digitalization changes everything The next trillion dollars will be earned with data for our customers and for our industries. Michael Dell, founder of Dell Inc. Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000. Pierre Nanterme, CEO Accenture

The Evolution toward Industry 4.0 From Industry 1.0 to Industry 4.0 Page 4

Integrating and digitalizing the entire value chain is key to staying competitive in the future Third party applications Cloud-based, open IoT operating system: MindSphere Product design Production planning Production engineering Production execution Services Collaboration platform: Teamcenter Suppliers and logistics Page 5

Creating a Digital Twin of the entire value chain Third party applications Cloud-based, open IoT operating system: MindSphere Product design Product design Production Productionplanning planning Production Production Services ProductionengineeringProductionexecution Services engineering execution Collaboration platform: Teamcenter Suppliers and logistics Page 6

Manufacturing Operations Management A crucial part of our Digital Enterprise Teamcenter and the Digital Twin Use simulation to achieve foresight in the virtual World Third party applications Cloud-based, open IoT operating system: MindSphere MindSphere Use Big Data Analytics to gain insight and drive continuous improvement Product design Production planning Production engineering Production execution Services MOM Seamlessly coordinate and control resources in the real world Page 7

Integrated Manufacturing Operations Integrated Manufacturing Operations Order Download and Scheduling Order Execution Quality Execution Production Reporting Product Tracking & Genealogy Manufacturing Intelligence Collaboration platform: Teamcenter Suppliers and logistics Intelligent algorithms enable orchestration of information across manufacturing processes and disciplines towards the implementation of a manufacturing-specific strategies. Page 8

MOM Portfolio evolution to maximize value and support implementation of industry-specific strategies R&D APS MES Automation Integration QMS Analytics R&D Suite S-IT Preactor Camstar SIMATIC IT IBS QMS Increasing value of MOM technology through integration Manufacturing Quality Engineering Effective cross-functional collaboration Consolidated Products and Process Quality Integrated and automated Production System Engineering Teamcenter On-premises Cloud MindSphere Page 9

Production Execution - Use Case 1 Advanced Planning and Scheduling of manufacturing operations in one tool SIMATIC IT Preactor Page 10

Production Execution - Use Case 2 Import of BOM / BOP from Teamcenter, define Workflow and Dispatch Order SIMATIC IT Page 11

Production Execution - Use Case 3 Run Manual Assembly Operation and escalate deviations to Teamcenter Camstar Page 12

Production Execution - Use Case 4 Integrated Visual Inspection in the P.C.B. manufacturing Camstar Page 13

Production Execution - Use Case 5 Run inspection operations and manage issue for high quality products SIMATIC IT / IBS QMS Page 14

Production Execution - Use Case 6 Analytical and visualization tools to support decisionmakers Manufacturing Intelligence Page 15

The Smart Manufacturing Approach A vision that needs a business strategy to evolve Smart Manufacturing is the integration of intelligence in the actual machines, parts, materials, products, buildings and supply chain, and the application of that intelligence within a connected, open end-to-end process and infrastructure. With Smart Manufacturing, data is the master, no longer the system What do C-Suite executive need to know/understand about Smart Manufacturing Spend time planning change management Focus investments to evolve your roadmap Security of data and infrastructure will be key Leverage talented people beside smart technology Page 16

Smart Manufacturing Overview of the main business impacts Speed Flexibility Quality Efficiency Security Rapid and reliable New Product Introduction Improved quality of materials and products Consistent, reliable processes globally Compliance with Regulation, and a reduced time to clearance Rapid response to change, and agility to handle product variants by market Accelerated Time to Market with innovation Take time to build models that estimate the return on your smart manufacturing investment Page 17

Now is the time to become a Digital Enterprise. Page 18

Thank you! siemens.com/mom Page 19