Industry 4.0 : Digital Reinvention in Manufacturing Industry
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The document discusses the transformative impact of Industry 4.0 on the manufacturing sector, highlighting initiatives from various countries aimed at digital reinvention. It underscores the significance of integrating cyber-physical systems, IoT, and smart technologies within manufacturing processes to enhance productivity and innovation. The potential economic impact of these advancements is substantial, with estimates predicting a value generation of up to $11.1 trillion per year by 2025.
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Industry 4.0 : Digital Reinvention in Manufacturing Industry
- 1. Industry 4.0 Digital Reinvention in Manufacturing Industry MK Koh, Asia Pacific Electronics Industry Ethan Chee, Client Manager for Electronics Industry, Singapore January 2016
- 2. Our Points of View on Industry 4.0 The Structure Approach and Component Building Blocks Points of Discussion 1 2 Digital Reinvention Use Cases 2 3 2
- 3. Several initiatives around the global are aiming to bring Manufacturing Digital Reinvention, creating what is been called the 4th industrial revolution How Germany is dealing with the fusion of the online world and the world of industrial production. "Those who are the leaders in the digital domain will take the lead in industrial production." Leading the USA industrial sector transformation into a networked, information-driven environment Providing an open Smart Manufacturing Platform to support real-time, high value applications. Transform China from a manufacturing giant into a world manufacturing power. Priorities include improving manufacturing innovation, integrating IT and OT and promoting Global Manufacturing Initiatives Bringing innovation to the manufacturing process in Korea, expanding the use of smart factories Developing core technologies related to the Internet of Things, 3-D printing and big data Innovation in Manufacturing 3.0 Priorities include improving manufacturing innovation, integrating IT and OT and promoting service-oriented manufacturing. France industrial plan to enable the industrial sector for the next industrial revolution. Assist companies in their transformations towards a world where digital is closing the gap between industry and services. UK strategic initiative that aims to revitalize the manufacturing industry. Consists of technology and innovation centers that work as gateways to access the best manufacturing talent and facilities in the country. 3
- 4. The 4th Industrial Revolution First Industrial Revolution based on the introduction of mechanical production equipment driven by water and steam power Third Industrial Revolution based on the use of electronics and IT to further automate production Second Industrial Revolution based on mass production achieved by division of labor concept and the use of electrical energy Fourth Industrial Revolution based on the use of cyber-physical systems From Industry 1.0 to Industry 4.0 Degree of complexity Fourth First mechanical loom,1784 1800 1900 2000 First conveyor belt, Cincinnati slaughterhouse, 1870 First programmable logic controller(PLC) Modicon 084,1969 TODAY First Second Third http://www.bmbf.de/en/19955.phpIndustry 4.0 web link : 4
- 5. Trends towards Industry 4.0 : The objectives and the path Horizontal integration through Value Networks The journey towards Industry 4.0The Primary Goal of Industry 4.0 Key Features Primary Goals • Peer to peer eco-system • Meet individual and highly customized demand • Profitable Lot Size 1 • Software defined products Based On End-to-end engineering through entire Value Chain Vertical integration and networked manufacturing systems • Cyber-Physical systems • Internet of Things • Smart Factories • Smart supply chains • Smart products Key Features • Real time sense and response • Predictive and prescriptive analytics • Dynamic business processes • Optimized decision making Watch the video: https://www.youtube.com/watch?v=GKhSTjraHlU
- 6. Whatever the estimation we consider, the potential economic impact is huge… and 70% is in B2B Factories • Operations optimization, predictive maintenance, inventory optimization, health and safety 1,210 - 3,700 160 - 930Worksites • Operations optimization, equipment maintenance, health and safety, IoT-enabled R&D “The economic impact of IoT applications could be from $3.9 trillion to $11.1 trillion per year in 2025” Home Vehicles Cities Outside The Industry 4.0 Economic Impact with IoT Source: McKinsey Global Institute: The Internet of Things: Mapping the Value Beyond the Hype from $3.9 trillion to $11.1 trillion per year in 2025” “Business-to-Business applications will generate nearly 70% of potential value enabled by IoT and the 4th Industrial Revolution”. 9 Settings gave us a cross-sector view of a total potential impact of $3.9 trillion-11.1 trillion per year in 2025 Home Chore automation and security $200B-350B Vehicles Autonomous vehicles and condition-based maintenance $210B-740B Cities Public health and transportation $930B-1.7T Outside Logistics and navigation $560B-850B Human Health and fitness $170B-1.6T Worksites Operations optimization health and safety $160B-930B Retail environments Automated checkout $410B-1.2T Factories Operations and equipment optimization $1.2T-3.7T Offices Security and energy $70B-150B
- 7. Autonomous Systems Internet of Services Internet of Things Ability to connect and manage devices Near real-time data collection Insights of what is happening New business models Internet of Things New delivery channels and business models Internet of Services Smart and networked products Ability to communicate thru the Internet Self diagnose / self awareness Autonomous Systems The emerging technologies that path the way for Industry 4.0 Technologies enable Industry 4.0 Digital Reinvention Industry 4.0Industry 4.0 Services Analytics & Cognitive Flexible Manufacturing ThingsNew business models Flexible machines 3D printing Machine to machine Mixed human / robotics New standards and protocols Vertical and horizontal integration Flexible Manufacturing New delivery channels and business models Integrations across value chains The API economy Embedded in equipments, products and services Predict what may happen Prescribe actions for best outcomes Self learning Communicate in natural language Analytics & Cognitive Sources: Acatech: Recommendations for implementing the strategic initiative Industrie 4.0, April 2013;Gartner: Industrie 4.0- The Ten Things the CIO Needs to Know; Deutsche Bank Research: “Upgrading of Germany’s industrial capabilities on the horizon “, April 2014 7
- 8. Industry 4.0 Digital-Reinvention in manufacturing is set to redefine every participant in the manufacturing value chain, from R&D, supply chain, and factory operations to marketing, sales, and service DIGITAL DATA The growth in data volumes, computational power and the emergence of analytics and business-intelligence capabilities CONNECTIVITY Interconnecting the entire value chain via mobile or fixed- line high-bandwidth telecom networks synchronizes supply chains and shortens both production lead times and innovation cycles. Technologies enable Industry 4.0 Digital Reinvention Mckinsey and Company “Digital manufacturing: The revolution will be virtualized” August 2015 and Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015 AUTOMATION New forms of human-machine interaction such as touch interfaces and augmented-reality systems DIGITAL CUSTOMER ACCESS The (mobile) internet gives new intermediaries direct access to customers to whom they can offer full transparency and new kinds of services with the rise in improvements in transferring digital instructions to the physical world Four Disruptions/Levers Drive the Digitization of the Manufacturing Sector 8
- 9. The four levers of digitization are supported by new enablers and propositions. New players from other industries can leverage innovative business models to acquire a substantial level of value added. Emerging Initiatives and opportunities …. C2M : Customer to Manufacturing C2B : Consumer to Business F2C : Factory to Consumer O2O : Online to Offline Drivers of digitization Technologies enable Industry 4.0 Digital Reinvention Source: Roland Berger: “THE DIGITAL TRANSFORMATION OF INDUSTRY” February 2015 9
- 10. Cloud-based, as a Service Dynamic / Self Configured Processes Closed Loop Cognitive Value Chain / Human Collaboration Cloud-based, as a Service Pre-Defined / Automated Processes Closed Loop Human Supervision On- Premise, Owned Provide insights Open Loop Human Required for Action IBM Vision & Strategy to realize full potential of Industry 4.0 Digital Reinvention CPS-1 CPS-2 CPS-n Watson CPS-1 CPS-2 CPS-n ▲Specialized Model 1 ▲Specialized Model 2 10
- 11. The IBM Industry 4.0 Digital Manufacturing Connecting machines, technology and processes to enable autonomous control and operational insights 11 Industry Cloud Integrated MESConnected Equipment Transparent Supply Chain
- 12. The IBM Industry 4.0 Smart Factory – Overall Approach INSTRUMENTED Ability to measure, sense and monitor the condition of almost everything. INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. INTELLIGENT Respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. Smart Manufacturing Comprehensive set of capabilities to enable smarter decisions faster Physical Meets Digital Linking physical world assets, resources and infrastructure with the digital world of event processing, business analytics and optimization. Information Model Standard-Based Standardized Metrics Event Management Prediction Visibility Collaboration Analytics & Optimization Smart Manufacturing Enablement One open channel to all data required to operate assets in real time
- 13. Scope: Industry 4.0 is an emerging and on-going roadmap with different target scope at different phase Phase I INTRA-FACTORY & INTRA-ENTERPRISE Phase II E2E CONNECTIVITY ACROSS THE VALUE CHAIN Phase III SOFTWARE DEFINED MANUFACTURING Interconnection of machinery and systems across the factory and across the enterprise, enabling major Interconnection across the entire supply chain leads to further gains in efficiency, productivity and flexibility New business opportunities enabled by globally interconnected cloud of enterprises Enables profitable lot size 1 P2P Value Network Creation B2B Value Chain Integration enabling major productivity gains and increased flexibility/agility M2M / M2B and flexibility B2B Enables profitable lot size 1 Amazon of manufacturing P2P M2B Intra – factory / enterprise
- 14. Enterprise Network (Business Floor) Asset Management Business Process Product Quality Management IoT Cloud Data Partners Security Analytics Portal Web Apps I4.0 Platform Architecture and Building Blocks: Industry 4.0 is an emerging and on-going roadmap with different target scope at different phase Business component (e.g. design, demand, supply and etc.) need to be developed as interoperable services in a horizontal integration platform to support a E2E/P2P value network Horizontal Integration Realtime Network (Shop Floor) Production Process Control Sensors Data Machine Events Mobile
- 20. Common Use Cases: Production Optimization (3 of 3) CPS Asset Health INSIGHTS Sub-assembly / component lifetime wear indicators Leading failure indicators Engine alerts Overload / over speed alerts Permit to work Use of safety equipment Unsafe condition of equipment Fatigue Alertness Fall / Injury Production real-time status Equipment utilization Best time to perform maintenance CPS Worker CPS Production Optimization Orders Customer Order quantity, price, due date Production routing Best time to perform maintenance Worker productivity Worker equipped with wearables Production data Production status Inventory (WIP, FG..) Equipment status Workstation status… Real-time Data Exchange Real-time Data Exchange Real-time Data Exchange
- 21. The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases Connected Sales & Connected OperationsConnected ProductsConnected Sales & Marketing Connected Products Customer Insights and Opportunities Flexible Billing and Pricing Models New Value Added Services Connected Product Usage Analysis Connected Product Quality Analysis Connected Software Management Asset and Materials Tracking Connected Operations Intelligence Unified Key Performance Indicators Real-Time Asset Health Monitoring Operation Management Improvement 21
- 22. The Next Wave of I4.0 Digital Reinvented Manufacturing Use Cases Connected CustomersConnected Services Connected InformationConnected CustomersConnected Services & Support Connected Information & Operation Technology Monitoring and Diagnostics Remote Services Automated Service Execution Condition-based Predictive Maintenance Connected Service Parts Planning Warranty Cost Management Usage and Performance Dashboard Customer Self-Service Product Personalization Flexible Product and Asset Connectivity Identify and Security Management Scalable IoT Operation Management Seemless IoT Data Integration Automated Analytics and Actions Rapid IoT Application Development 22
- 23. To help choose the right data set, technology etc., manufacturing leaders can use a “digital compass”. Cross-functional discussions that will help companies find the levers that are best suited to solve their particular problems. The ‘digital compass’ helps companies find tools to match their needs. “Digital Compass” – Guideline for Industry 4.0 Digital Reinvention The compass consists of eight basic value drivers and 26 practical Industry 4.0 levers. 23
- 24. The Steps Ahead? 1. 2. 3. Explore unique industry requirements. Collaborate with Industry and Technology player to identify your business priorities and challenges. Identify opportunities for innovation and growth. Determine where best to deliver business process and technology improvements and innovation. Develop a road map and partnership model. Leverage productivity and innovation enhancements to accelerate measurable business outcomes that support your strategy. 24
- 25. Made with IBM 25 ContactsContactsContactsContacts Email • [email protected] LinkedIn • https://sg.linkedin.com/pub/meng-kuang-koh/5/16b/473 Email • [email protected] LinkedIn • https://sg.linkedin.com/in/ethanchee