Transcription
How to Start with Industry 4.0 in SMEsPractical Roadmap for Industry 4.0Introduction in SME24th of November, 2017Chambre de Commerce, LuxembourgThomas Korne1
PortfolioIPL - Institute for Production and Logistics SystemsGlobal orientation§ Worldwide projects§ Located in the GreaterRegion of FR, LU, DEQualification,coaching andtraining§ Lean Six Sigma§ Company and supplierdevelopmentProduction &logisticsStrategyconsulting§ Greenfield-/Brownfield-§ Industry 4.0§conceptsDevelopment andtransformation ofproduction systems§§RoadmappingSupply chainorganisationDesign of material flowEuropean Researchand DevelopmentManagement andorganisation§ Academic research§ Project management§ Interims-management§methodologyDevelopment ofinnovative methods forpractical application& service2
AgendaContent of Presentation§ Introduction§ Strategic need for Industry 4.0 in the SME sector§ Introductory examples§ Methodology for creating an individual Roadmap Industry 4.0§ Phase 1: Company analysis§ Phase 2: Identify opportunities§ Phase 3: Select and evaluate opportunities§ Phase 4: Create and realize Roadmap§ Summary3
Strategic Need for Industry 4.0Enablers, Opportunities and RisksEnablers1Digitalization („Big Data“)§ Increasing availability of data aboutcustomer, product and production2Connectivity and communication (ICT)§ Internet of Things (IoT)§ Real-time communication§ Permanent availability of broadband connections for large data3Disruptive technologies/software§ Cyber Physical Systems: lightweightrobots, Automated guided vehicles,drones, 3D printing, VR / AR, mobiledevices, pick-by-tech, etc.§ Business Analytics, AI, Newbusiness /products§ New services§ Mass customization§ New types of cooperationVertical/horiz. integrationSupply Chain transparencyProcess automationFlexibility and agilityBarriers / Risks§ Delay due to unclear cost-benefit ratio§ Deficits prevent implementation: lack of§technology and knowledge, rigid organizational structures, poor master data, etc.Culture of preservation and lack of couragegrants competition time-critical advantagesA clever combination of enablers in owncompany leads to new opportunities4
Indicative Opportunities of Industry 4.0Value Drivers for Potentials according to McKinsey10-40% reduction ofmaintenance costs120-50% reduction in timeto market1Productivity increaseby 3-5%5Service/ Resource/After-Sales ProcessTime-toMarketForecasting accuracyincreased to 85 %330-50% reduction of totalmachine downtime²Asset utilizationSupply/demandmatchQualityCosts for qualityreduced by 10-20%6LaborInventories45-55% increase of productivityin technical professions throughautomation of knowledge work4Costs for inventory holdingdecreased by 20-50%3Source: McKinsey Digital (2015)1 Cf. McKinsey Global Institute: Big data: The next frontier for innovation, competition, and productivity2 McKinsey analysis3 McKinsey analysis4 CF. McKinsey Global Institute: Disruptive Technologies5 See, for example, ABB case study6 Cf. T.Bauernhansl, M. ten Hompel, B. Vogel-Heuser (Hrsg.): Industrie 4.0 in Produktion/ Automatisierung/Logistik (2014)5
A New View on Waste„Digital Waste“ by Unused Information according to McKinseySource: McKinsey Digital (2015)6
Indicative Barriers for Industry 4.0 IntroductionChallenges for a Successful Implementation of Industry 4.0Unclear cost-benefit-ratio, unclear investments46%Unsufficient qualification of workforce30%Missing standards, norms and certificates26%Unclear legal situation concerning ownership of 22%Low maturity of required technologies20%Issues with data security19%Low priority / commitment from executive 18%Slow expansion of basic technologies (broadband)13%Unsufficient network/storage capabilities6%0%Source: PWC (2014), Study with n 235 companies from Germany, 5 business sectors10%20%30%40%50%7
Facts about Industry 4.0 in SMEsStatus introduction and implementation of Industry 4.0 in GermanyDo you plan specific investments inIndustry 4.0 applications?Is your company using Industry4.0 applications?Yes, we planintroduction43%53%4%No, Industry 4.0 isout of question for usNo, we don't seeneed for action,currentlyPlanned use of Industry 4.0-applications.Result of questionnaire – Industry 4.0 in SME, n 202.Source: Study and thesis of University Ansbach (2017) with n 333 companies from different business sectors in Germany44%56%YesNeinCurrent use of Industry 4.0-applications.Result of questionnaire – Industry 4.0 in SME, n 2978
Facts about Industry 4.0 in SMEsApplicationIn which areas of the company could you imagine usingIndustry 4.0 100%120%Application of Industry 4.0Result of questionnaire – Industry 4.0 in SME, n 293, multiple answers possible.Source: Study and thesis of University Ansbach (2017) with n 333 companies from different business sectors in Germany9
Facts about Industry 4.0 in SMEsPotential BenefitsWhich of the following opportunities by Industry 4.0 do you consider realistic?Increase level of automationEfficiencyImproved MESFlexible productionResource efficiencyNew business servicesRelief for employeesCustomized productionDevelopment of new businessOverwheming of employeesIncrease motivation of workforceShorten time-to-marketFoster Work-Life Balance61%53%9% %39%41%9%20%does rather apply40%50%does rather not 7%24%10%6% 1%53%41%9%6% 1%40%36%0%does apply32%13%70%80%90% 100%does not applyOpportunities for Industry 4.0Result of questionnaire – Industry 4.0 in SME, n 295, multiple answers possibleSource: Study and thesis of University Ansbach (2017) with n 333 companies from different business sectors in Germany10
Industry 4.0 in Marketing & SalesIntroductory Example for Marketing 4.0 in the Apparel Industry„BigData Monitor“§ Comprehensive analysis of sales datafor high variety fashion products§ Increase expertise of responsibleemployees§ Development of a data model forearly warnings in customer demand§ Model provides probability of successof a new product before market entry§ Eases decision making in productdevelopment§ Reduction in number of variantsSource: Big Data Monitor, LOC Team11
Industry 4.0 in ProductionIntroductory Example for Craftsmanship 4.0Observational studies and situationalanalysis for construction sitesSource: with kind approval of Business-KompetenzZentrums (eBZ) Kaiserslautern12
Industry 4.0 in ProductionIntroductory Example for Maintenance 4.0Machine condition monitoring atAGFA Peißenberg and maintenancevia Internet 24/7„Mobile ControlApp“§ Get machine information§ Make program changes§ Integrated camera transmits videofrom production process live to iPad§ Online monitoring from "outside"Source: Presentation Agfa-Gevaert HealthCareGmbH Werk Peißenberg, AKJ Automotive Kongress Saarbrücken, 13./14. September 201713
Individual Company Roadmap for Industry 4.0Approach, Phases and InstrumentsMeetings with steering-committee to align resultsInstrumentsPhase12CompanyAnalysis§ Pre-structured Interviews §§ Organisation and tasks§ Infrastructure with§input/output§§ Core processes andcommunication§ Typical deviations§ Strength/Weaknesses§ Strategic fields ofactionsSource: AK4.0 model, Seiter M. et al. (2016), modified43Choose -Check I 4.0(Form, examples)Business Model CanvasDesign ThinkingWorkshopEstablish andrealizeroadmap§ Catalogue for evaluation § Roadmapping I4.0(Workshop with key§ Project plans for ibility-matrix § Operational support ofCheck of pre-requisitesimplementationhuman, technology,organisation (Workshopwith key questions)Investment calculationsEvaluation of nonmonetary benefits(Workshop with ExtendedPerformance Analysis)14
Phase 1: Company AnalysisCompanyAnalysisPre-structured Interviews Interviews Mapthe Current State of the CompanyA) Organization and tasks§ Organisation, R&R§ Tasks and focus ofdepartments§ Qualification of employeesB) Infrastructure and I/O§ Important resources(machines, licenses, etc.)§ Input and outputs fromrelevant departmentsInputD) Defects and deviations§ Typical issues and deviations indifferent departments§ Issues between departmentsas well as ortunitiesChoose andevaluateopportunities4Establishand realizeroadmapC) Core processes and comm.§ Important processes/productsin/from departments§ Communication structuresOutputE) Strength/Weaknesses§ Strength/weaknesses ofdepartments, products,company§ Strength/weaknesses tocustomers or with suppliers 321F) Strategic fields of action§ Strategic change requests§ Future market potential§ Different view points fromemployees and executives 15
Phase 2: Identify OpportunitiesQuick-Check I4.0 for hoose andevaluateopportunities4Establishand realizeroadmapSix application levels with five technological and sequentialdevelopment stages support brainstorming of ideas1234Quick-Checkinterviews orworkshops revealCurrent stateFuture stateSource: VDMA (2016), modified5616
Quick-Check Production: Data processingExample: Inventory hoose andevaluateopportunities4Establishand realizeroadmapNo processing of dataStorage of data fordocumentationAnalysing data forprocess monitoringEvaluation for processplanning / controlAutomatic processplanning / controlManual disposition(order point) for Cparts in traditionalcontainersDocumentation ofreplenishment;manual orderingprocessData Analytics withdata based inventoryreductionKnow-how automation for inventoryplanning (CognitiveComputing)iBin: automizedinventory detectionand trigger forpurchase orders6)7)8)9)SAP Deutschland SE &Co. KGSAP Deutschland SE &Co. KGWürth Industrie ServiceGmbH & Co. KG10)HumanManual processHuman:Manual processHuman:Competency in dataHuman:Acceptance by workerHuman:Only for ed labor dized workTechnology:ERP & SoftwareTechnology:Data Analytics ToolOrganisation:Clarified legal basisTechnology: RFID,optical camera, ERPOrganisation:Skilled labor, consistencySource: for picture references see end of presentationsOrganisation:Consistent Master data17
Phase 2: Identify OpportunitiesQuick-Check I4.0 for Product / Business Model321CompanyAnalysisIdentifyopportunitiesChoose andevaluateopportunities4Establishand realizeroadmapSix application levels are also available for new products or business models,each with five consecutive development stages for brainstorming123456Source: VDMA (2016), modified18
Quick-Check Product: MonitoringExample: Product Safety in iesChoose andevaluateopportunities4Establishand realizeroadmapNo monitoring by theproductDetection of failuresRecording of operatingcondition for diagnosticPrognosis of its ownfunctional conditionIndependently adoptedcontrol measuresPassive security withwarning, sturdypackaging, bubblewrapTilting indicator fortransport controlDropTagEVENT: Lowcost tool for conditionmonitoringPackaging providesprognosis aboutfunctionality of goodsPackaging with selfcorrection in case ofenvironmental issues2)1)3)5)4)Enviro Pack GmbHTransPack-KrumbachGmbHCambridgeConsultants Ltd & IncDB Schenker SecurityGuardHumanManual processHuman:Manual processHuman:Act based on dataHuman:Escalation onlyHuman:Escalation onlyTechnology:Proper packagingOrganisation:Skilled labor requiredTechnology:TagsOrganisation:Control of tagsTechnology:Sensor, App, ServerTechnology:Sensors, SoftwareOrganisation:Reliable data/limitsTechnology:Innovation requiredOrganisation:Customer acceptanceSource: for picture references see end of presentationsOrganisation:Consistent Master data19
Phase 3: Choose and Evaluate OpportunitiesKey questions support a factualassessment of cost-effectiveness andfeasibility of the planned measureslowMonetary BenefitshighEvaluation Catalogue and panyAnalysisChoose andevaluateopportunities4Establishand realizeroadmapEconomicallyattractive, butdifficult toimplementTOPOpportunitiesEconomicallyattractive andfeasibleEconomicallynot attractive,and difficult toimplementEconomicallynot attractive,but easy toimplementdifficultSource: Seiter M. et al. (2016)321Feasibilityeasy20
Phase 3: Choose and Evaluate OpportunitiesDerive and Evaluate Necessary Pre-requisitesfor Industry 4.0 iesChoose andevaluateopportunities4Establishand realizeroadmapWorkshop with keyquestions will revealrequired measuresand additionalinvestments tocreate pre-requisitesin terms of§ Human§ Technology§ OrganizationSource: Seiter M. et al. (2016)21
Phase 3: Choose and Evaluate OpportunitiesMonetary and Non-monetary Benefit se andevaluateopportunities4Establishand realizeroadmapMonetary benefit effectsNon-monetary, directquantifiable benefit effectsNon-monetary, quality benefiteffectsLow personnel costs due tonetworked machinesOptimized employee utilizationthrough the use of efficientmachinesEmployee satisfaction throughattractive workplace designLow costs through PredictiveMaintenanceLower number of errors due toearly error analysisCooperations through joint ITplatformsLower inventory costs throughoptimized utilizationHigh adherence to schedulethrough efficient planningTransparency due to high dataavailabilityLower cost, higher revenueetc.Optimized lead times /utilization etc.Customer satisfaction,transparencyBetter transparency in cost-benefit ratio through considerationof non-monetary benefit effectsSource: Seiter M. et al. (2016)22
Phase 3: Choose and evaluate OpportunitiesFinancial Evaluation of Non-monetary Benefits750Cost cutting in T pro Jahr5.73Monetary effect inT per year755.73Existing customersRevenue existing customers in Mio. per yearActualDesiredDelta8080.671%Existing customersRevenue new customers in Mio. per yearActualDesiredDelta1010.081%Route optimizationTravel cost per maintenance per day in ActualDesiredDelta2018.74-6%Storage costsCalculated storage costs in T per dentifyopportunitiesNon-monetary, direct quantifiablebenefit effectsM onetary benefitsRevenue increasein T per year321Choose andevaluateopportunities4Establishand realizeroadmapNon-monetary, quality benefiteffectsStrength of effect20%Strength of effect20%Strength of effect40%Strength of effect25%Strength of effectReclamation costs10%Calculated reclamation costs in T per yearActualDesiredDeltaProduct qualityDowntime plant in h per yearActualDesiredDelta109.6-4%Maintenance planningNumber of maintenances per y turnover rate on filterActualDesiredDelta33.196%Long-term optimizationReclamation quoteActualDesiredDeltaStrength of effect20%Strength of effect40%Strength of effectTransparencyNeeded maintenances per dayActualDesiredDelta81025%25%Strength of effect10%23
Phase 4: Establish and Realize RoadmapRoadmap for stepwise isChoose andevaluateopportunities4Establishand realizeroadmap202020192018A Roadmap Industry 4.0visualizes the long-termtransformation strategyis flexible and may becontinuously adapted byorganizational learningdetails necessarymeasures into§ manageable steps and§ financially viablesub-projects2021 HumanContinuous digitalawareness andqualification ofemployeesTechnologyModify machinesSoftware trainingDevelopmentand training nagementconceptInstallcontinuous ITsupportIntegrate ITconcept, step IIntegrate ITconcept, fine and cascaderoadmapAlign withcustomer ITnetworkOrganizationIntegration inproductionDefinition and roll-out ofdigital Roles 1 stepwise measures for integration of Industry 4.0Source: Seiter M. et al. (2016), modified24
SummaryImportant Aspects of Creating and Implementing Industry 4.0 Roadmaps§ Industry 4.0 offers future opportunities through clevercombination of§ Digitization§ Connectivity and§ Disruptive technologies / software§ Benefits need to be individually and monetarily assessable§ Quick-Check I4.0 supports and simplifies brainstorming for ideas§ Industry 4.0 roadmap consolidates a transformation strategy§ The time factor competition plays a crucial role in competition§ Similar to Lean, Industry 4.0 will fail without strong commitmentfrom leadership25
Thank you for your attention!Q&A26
ReferencesUsed/Recommended LiteratureMaturity Models§ BCG (2017): Digital Acceleration Index, download at 21.10.17, link: l/digital-accelerationindex.aspx§ McKinsey Digital (2015): Digitaler Kompass Industrie 4.0, Industry 4.0 How to navigate digitization of the manufacturing sector, download at§§§§21.10.17, link: https://www.mckinsey.de/files/mck industry 40 report.pdfPWC (2014): Strategy&, Chancen und Herausforderungen der vierten industriellen Revolution, download at 24.10.17, dustrie-4-0.pdfSeiter, M. et al (2016): Roadmap Industrie 4.0: Ihr Weg zur Erfolgreichen Umsetzung von Industrie 4.0, Verlag tredition GmbH, Hamburg, 2016Schuh, G. et al (2017): Industrie 4.0 Maturity Index: Die digitale Transformation von Unternehmen gestalten, Acatech Studie, download at21.10.17, link:http://www.acatech.de/fileadmin/user upload/Baumstruktur nach hte/acatech STUDIEMaturity Index WEB.pdfVDMA (2017): Leitfaden Industrie 4.0: Orientierungshilfe zur Einführung in den Mittelstand, download at 21.10,17, d8a-4c11-9287-a63cd7a4dc43Business Model Canvas§ Osterwalder, A., Pigneur, Y. (2011): Business Model Generation: Ein Handbuch für Visionäre, Spielveränderer undHerausforderer, Campus Verlag, Frankfurt am Main, 2011Financing and Investment§ Becker, H.P. (2015): Investition und Finanzierung: Grundlagen der betrieblichen Finanzwirtschaft, 7. Auflage, Verlag Springer Gabler, Wiesbaden,2015§ Seiter, M. et al (2007): Wirtschaftlichkeitsanalyse mit dem Extended Performance Analysis- Ansatz EPA – Am Beispiel von RFID Investitionen, IPRIResearch Paper Nr. 10, Stuttgart, 200727
Other References1) Enviro Pack GmbH: olien.html?gclid oy7qnuqryrybpYfM-Dz7a8Fa-jGwQaAjhnEALw wcB2) TransPack-Krumbach GmbH: atchkippindikator?gclid epREZOFSnhicqjWYs0MRvjFmAlThoCLRPw wcB3) Cambridge Consultants Ltd & Cambridge Consultants Inc: https://www.cambridgeconsultants.com/droptag4) DB Schenker Securtiy Guard: AKJ Automotive Presentation, DB Schenker5) Vontobel Holding AG: pg6) Ultimo Beratungsgesellschaft mbH: http://www.ultimo.co.at/theorie.htm7) BEYER-Mietservice KG: berufliche-perspektiven.html8) SAP Deutschland SE & Co. KG: iness-intelligence-bi.html9) Creative Market: ive-Computing-Icons10)Würth Industrie Service GmbH & Co. KG: trie/cteile management/kanban/ibin inte
Practical Roadmap for Industry 4.0 Introduction in SME 24th of November, 2017 Chambrede Commerce, Luxembourg Thomas Korne. Portfolio IPL -Institute for Production and Logistics Systems . Source: Study and thesis of University Ansbach(2017) with n
