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Unrestricted © Siemens AG 2014 All rights reserved. Smarter decisions, better products.

Maximizing PLM Value

in an Innovation Economy

Tony Hemmelgarn, Executive VP Global Sales, Service, and Marketing - Siemens PLM Software

Unrestricted © Siemens AG 2014 All rights reserved.

2014-05-20 Page 2 Siemens PLM Software

What does Innovation Mean to You?

innovation quality

time

market reader

needs seeker schedule

strategic cre

ative

compliance

co

st

predictable

patent differentiated products

ideas

develop manufacture productivity

margin

profit

invention

Ma

rke

t sh

are

Aerospace

and Defense Automotive and

Transportation

Consumer

Products

Electronics and

Semiconductor

Energy

Machinery

Shipbuilding

and Marine

Healthcare

and Medical

NPI



What does Innovation Mean to You?

Aerospace

and Defense Automotive and

Transportation

Consumer

Products

Electronics and

Semiconductor

Energy

Machinery

Shipbuilding

and Marine

Healthcare

and Medical

“Making the right things and making things right”



The Manufacturing Industry is Changing

There is a new momentum

From mass production

to mass customization

Economic policy investing

in sustainable industries

Increased

personalization

supporting global

consumers

Technology is rapidly

transforming the way

goods are made

Social

Economic

Environment

Sustainable

Bearable

Viable

Equitable



USA

"Manufacturing Renaissance"

• Formation of a "National

Network for Manufacturing

Innovation"

• Lower cost energy

initiatives

• Smart Manufacturing

Leadership Coalition

Germany

Maintain leading industrial

position

• Sustainable investment in

innovative strength

• High level of exports

• Industrie 4.0 as new

guiding principle

China

Higher product quality by use

of high-end technology

• Rising wages

• Need for quality driven

demand for automation

• Energy efficiency

legislation

• Intelligent Manufacturing

Japan

A cohesive “innovation

program” at all levels

• Science, technology and

industry linked together

• HR development

• Retain manufacturing of

complex products

• “Innovation 25”initiative

Industry is Again Seen as an Engine of Growth and Stability

Economies around the world are investing



Norway

Made in Norway?

• Advanced production

technology

• Use of modern Industrial

Robots

• Adopt 3D Printers

• Increase digitalization of

production processes

Denmark

Denmark at Work

• Focus on Water, Bio and

Environmental solutions

companies.

• Protect manufacturing

• Strengthen research &

innovation in green

technologies

Sweden

Made in Sweden 2030

• Environmentally

sustainable production

• Flexible manufacturing

processes

• Virtual production

development and

simulation

• Product-Production based

services

Finland

“Innovation initiative”

Industrial Competitiveness

Approach for the 2010 decade

• Build ecosystems around

R&D and industrial

production.

• Invest in supply chains.

• Develop manufacturing

capacity

In economies around the world, industry is again seen as

an engine of growth and stability

http://www.google.es/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=Mb_9ROS3bIFFzM&tbnid=EP-twChSjooa5M:&ved=0CAUQjRw&url=http://www.pagesponsoring.com/time-zone/europe/european-union/denmark/flag/index.htm&ei=Zzd6U8CVB7D74QT1_oHABg&bvm=bv.66917471,d.bGE&psig=AFQjCNF-5sOfz8FUF6dgItgD9G2OoKx5rQ&ust=1400604901707960

http://www.google.es/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=xLtId31VCOD4eM&tbnid=11lDIoorDnsRKM:&ved=0CAUQjRw&url=http://goscandinavia.about.com/od/historyart/ig/The-Scandinavian-Flags/The-Flag-of-Norway.htm&ei=Mzh6U5XFHcaN4gTV-YDAAQ&bvm=bv.66917471,d.bGE&psig=AFQjCNH4vw27n7zuZPLWrRr3TCDQKHZYgg&ust=1400605104084780



One new job in industry creates two more in other segments

Industry Investment Impact – The Multiplier Effect

Direct value creation by

increased investment/output

Indirect value creation by

suppliers to the core industry

Induced value creation by

spending, taxes and dividends

Source: McKinsey Global Institute Analysis



Industry Growth Demands the Ability to Develop New Ideas

Source: The Future of Manufacturing

World Economic Forum, April 2012

“The ability to innovate, at an accelerated pace, will

be the most important capability differentiating the

success of countries and companies.”

“Manufacturers that accelerate innovation are far

more successful and realize greater opportunities to

participate in the global economy.” Source: Innovation is the Path to a Profitable Future

NIST Manufacturing Extension Partnership



Accelerating Innovation in Today’s Complex Environment

Delivering market leading

innovation is driving

manufacturers to more

complexity

A challenging decision-making environment



The role of PLM in the innovation economy

Turning complexity into a competitive advantage

Establish an immersive decision-making environment

• Extract value from large volumes of complex data

• Ensure everyone all stakeholders receive information in a

form best suited to their job

• Connecting the global user community with the

information they and the latest technology they need

As product complexity increases, multi-disciplinary decision-making will become even more important,

not only to improve time-to-market, but to manage and mitigate risk.



PLM’s Evolving Role in Accelerating Innovation

Initiatives on the path to the vision

Current and Future PLM Initiatives

Value of

Transformation Visual

Decision Making

Advanced Design

Systems Driven Product

Development

Next Generation

Manufacturing

Realizing value through deeper and broader PLM system adoption

Time

Model Based Definition

Model Based

Systems Engineering

Model Based Enterprise

Model Based

Manufacturing



Shift from Component to System Innovation

1980 1990 2000 2010 2020

Component Innovation

System Innovation

ABS

Electronic Stability Control

Adaptive Cruise Control

SHIFT FROM SINGLE TO SYSTEM INNOVATION

(Over 50% Innovation at System Level)

Model-based Engineering

Model-based Manufacturing

Model-based Systems Engineering

Model-based Enterprise

Integrated Driver

Experience



INNOVATION RISK

Innovation Occurs at the Intersections of Disciplines

COMPLEXITY

Products Process

People



INNOVATION RISK


COMPLEXITY Intersections

Products Process

People



INNOVATION RISK


COMPLEXITY Intersections

Products Process

People



INNOVATION RISK RISK

Manage

Intersections

Products Process

People

INNOVATION



Innovation at the Intersection of Technology

iPhone….Innovation through the

intersections of existing technologies

• Capacitive touchscreen with liquid crystal display

• Touch and gesture built on technologies from FingerWorks

• Fingerprint-resistant oleophobic coating

• Proximity sensor

• 3-axis accelerometer

• Magnetometer

• Gyroscopic sensor

• Noise-cancelling microphone

• Fixed-focus 2.0-megapixel camera

• Wi-fi radio chip from Marvell

• Bluetooth radio transmitters from CSR

• Wireless bandwidth

• GPS

• Mac OS X



GUIDED BY VALID PRODUCT/PROCESS CONFIGURATIONS

SET TARGETS THEN MODEL

AND SIMULATE REALITY

Systems-Driven Product Development

Requirements to Make Complexity a Competitive Edge

DECIDE BY KNOWING THE

IMPACT OF CHANGE

AGGREGATE, FILTER AND

TRANSFORM INFORMATION



Systems-driven Product Development

Turning complexity into a competitive advantage

• Master complexity to maximize innovation and

minimize risk

• Understand the impact of change early to avoid

later lifecycle costs

• Respond directly and immediately to market

demand

• Develop and produce with maximum flexibility




Visual Decision Making


Value of

Transformation

Visual

Decision Making

Advanced Design


Development

Next Generation

Manufacturing

Time


Model Based

Systems Engineering


Model Based

Manufacturing



Making More Complex Decisions




Consistent experience everywhere Visual information in context

Product-related information, presented in a rich visual context and shared across widely

accessible and easily usable collaborative interfaces




A multidisciplinary decision framework and to evaluate trade-offs among critical schedule,

financial, performance, marketing, and manufacturing criteria.

Program Execution Management

Resource Utilization

Lifecycle Cost Management




Advanced Design


Value of

Transformation

Visual

Decision Making

Advanced Design


Development

Next Generation

Manufacturing

Time


Model Based

Systems Engineering


Model Based

Manufacturing



Extending Model-Based Definition



Advanced Design

Conceptualize ideas and define models in half the time

• Intuitive user experience

• Quick, easy and precise surface

creation

• Experiment and conceptualize

ideas

Revolutionizing the way shapes are developed to easily conceptualize a design.



Advanced Design

Context-aware information relevant to the task being performed

• Simplifying the user experience

• Accessible from any web browser on any

device, including mobile devices

• Integration point for multiple applications




Next Generation Manufacturing


Value of

Transformation

Visual

Decision Making

Advanced Design


Development

Next Generation

Manufacturing

Time


Model Based

Systems Engineering


Model Based

Manufacturing



Industrie 4.0

Leveraging the digital model for next-generation manufacturing

Services Production

execution Production

planning

Product

design

Production

engineering

The digital model is always up-to-date and is extended over the entire lifecycle

• Software / Informatics

• Mechanics,

• Electrics, Electronics

• Automation, HMI

• Safety, security

• Maintenance

Cyber-physical system (CPS)

Physical production facility Digital model

• Location,

identity…

• Status

• SW version

• Interfaces

• …

Contains all the information on …

+

R&D investment and industrial policy




Additive manufacturing will transform manufacturing flexibility—by allowing companies to slash

development time, minimize tooling costs, and simplify production runs.

Siemens pioneering additive and subtractive manufacturing processes and applications




3D dynamic simulation – process verification

Human Simulation Robotics Simulation Factory Simulation

Process Studies configured with all relevant data enabling smarter decision making



The Role of Siemens in the “Future of Manufacturing”

Integrating virtual development and planning with real production

A Catalyst and

An Enabler For the

"New

Manufacturing"

And Its Values

Documents

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