Cranmore Park, Solihull 15 October 2015 · electrical energy 1969 First program-mable logic controller (PLC) Introduction of electronics and IT for higher auto-matisation of production

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor

industry’ brandline are trademarks of SMMT Ltd

SMMT Open Forum

Cranmore Park, Solihull

15 October 2015

Supported by

2 THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Robert Thomson

Prinicpal

Roland Berger

SMMT Open Forum

London, 15th October 2015

Industrie 4.0

Robert W Thomson

Partner

Telephone: +44 (0) 203 075 1100

e-mail: [email protected]

4 ACQG-LON-Industrie40-2015-01.pptx

Industrie 4.0 is the full integration and digitalisation of the industrial value chain

Source: Plattform Industry 4.0, MIT Sloan Management Review, Roland Berger

Definition of Industrie 4.0 (not exhaustive)

> Digital transformation refers to the changes associated with the application of digital technologies in all aspects of human society

> Industrie 4.0 is the industrial application of the concepts applied in the digital transformation; key elements include:

– Complete connectivity with real-time connectivity

– De-centralised, intelligent and self optimising/organising

– Modular and reconfigurable systems

> Any assessment of Industrie 4.0 impact needs to take analogies from digital transformation and the specifics of the manufacturing industry into account

> Digital transformation in the consumer goods sector is much more advanced than in industrial applications

Digital transformation

Industrie 4.0

Mobile devices

E-Commerce

Car sharing

Apps

Contactless pay

Home robotics

Wearables

Smart Home

Cloud data

Smart handbooks

Private robots

Self-optimising systems

Self-learning robots

Predictive Maintenance


Mechanisation, electrification and computerisation influenced our working world radically – Industrie 4.0 is the next step

Development stages of industrial manufacturing

Source: Bitkom/Fraunhofer, DFKI, Roland Berger

1784 Mechanical weaving loom

Introduction of mechanical production assets based on water and steam power

1923 Introduction of a "moving" assembly line at Ford Motors

Introduction of mass production based on division of labor and electrical energy

1969 First program-mable logic controller (PLC)

Introduction of electronics and IT for higher auto-matisation of production

2014 Real time, self optimising connected systems

Time

First industrial revolution

Second industrial revolution

Third industrial revolution

Fourth industrial revolution?

So far < 10% advanced

Impact of each Revolution

> Introduction of new products and means of manufacturing existing products

> Disruption of the competitive status quo (both within and between countries and enterprises)

> New requirements from the workforce and infrastructure


Permanent connectivity and self learning machines are key elements of Industrie 4.0

Source: Plattform Industrie 4.0, Roland Berger

Industrie 4.0 – Definition

"Durch die Verbindung von Menschen, Objekten und Systemen entstehen dynamische, echtzeitoptimierte und selbst organisierende, unternehmensübergreifende Wertschöpfungsnetzwerke, die sich nach unterschiedlichen Kriterien wie bspw. Kosten, Verfügbarkeit und Ressourcenverbrauch optimieren lassen"

"The conjunction of humans, objects and systems leads to the creation of dynamic, real-time optimised & self-organising value-creation networks that span across different companies. These systems can be optimised along various criteria such as cost, availability & resource consumption"

Plattform Industrie 4.0, April 2014


Data and communication are the backbone of Industrie 4.0 – Some players already have wide offerings, and new players are entering Positioning of different players for Industrie 4.0 – Factory view

Source: Roland Berger

1) Not exhaustive; examples only

ERP System MES System Sensors/ Automation

Building Automation 3D Data

Players1

)

Data/ Funct.1)

> All transaction data

> Asset data > Price/cost data

> Shopfloor transaction data

> Machine data > Maintenance data > Logistic data

> Sensor status like pressure, position etc., communication with other sensors

> Machine control data

> Status of all building data, e.g. temp., light, access control, ventilation

> Product 3D data > Factory 3D data > PLM data

> Storage capacity > Algorithms and

analytics > Connectivity

Big Data Services

New players

Client

M M

M

Controls & Automation

MES System

MES System

Factory 4.0

Building automation

"Cloud" Manufacturing routing

ERP System

M


Self-reconfiguring machines

Modularised production

Self-diagnosing machines

Smart environment recognition

Interactive robotics

Demand-response energy management systems

Predictive quality/ Enhanced Throughput

Smart handbooks and process documentation

Digital Prototyping

Centralised machinery planning

Self-learning robots

Self-optimising system

Intelligent rush/new order management

Virtual work preparation

Customer triggered lot-size 1 production

Industrie 4.0 solutions are conventional production methods backed up with state-of-the-art IT systems and software algorithms Potential Industrie 4.0 solutions


> Real- time data processing > Business process software > Database management systems > Cloud computing > Real-time image processing (e.g.

OCR) > Advanced algorithms > Machine learning

Software

Computing Hardware > Data storage hardware > Embedded systems > High-performance computing > In-Memory computing > LCD/touch interfaces > Micro computing

> Visual sensors > RFID > Biometrics > Magnetic stripes > Camera & imaging systems > Semiconductor based sensors > Traditional sensors

Interfaces

Production Hardware > Robotics > New joining technologies > Traditional Machinery > Automation equipment

Connectivity > High speed mobile broadband (e.g. 3G/4G) > Industrial Ethernet > Internet protocols (IPv6) > Local broadband (e.g. WIFI) > Short range/low power transmissions (e.g. Bluetooth, NFC)

Cyber world Physical world

Logistics automation 4.0

Smart storage bin

Additive manufacturing

Smart products

Unitary, RFID-based parts tracking

Autonomous vehicles


Virtual process optimisation

User-friendly operations dashboards

Mobile device based machine control

Demand driven provision of material and tools

Cobotics

Augmented Reality

Base Technologies Potential solutions


Industry 4.0 will significantly change business rules, offers enormous opportunities to new winners, but kills the non-innovators Industry 4.0 – Expected benefits

1 Design and manufacture better products – Adapt manufacturing methods by region e.g. environmental sensors

3 Create new business models – Dis-intermediate value chains or change the business rules e.g. Plant-building companies start to bill only the output that they sell/achieve for the customer

4 Generate additional business – New 4.0 industry comers to change the game e.g. 3D printing for ultra fast responsiveness

5 Unleash innovation – Demand and free up additional creativity to fully leverage digital potential e.g. demand for business-model innovation currently rising

6 Rethink organisations – Make organisations more responsive and flexible e.g. R&D teams leveraging worldwide communities expertise to quickly tap the potential

Improve process efficiency … and save costs – Connect digital and real process with each other to identify in advance and upstream counter-performance e.g. a quality issue

2


Roland Berger


Roland Berger is a global firm – we provide strategic advice to the world's top decision makers

Cornerstones of our company

Founded in 1967 in Germany by Roland Berger

50 offices in 36 countries, with around 2,400 employees

Nearly 220 RB Partners currently serving

~1,000 international clients



We provide consulting services for our clients from industry specialists and on functional topics

Our Competence Centers (CC)

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Corporate development

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We support top management on all key topics to drive company growth, profitability, and competitiveness

Roland Berger Industry Competences

Strategy

> Corporate & Business Unit strategy

> Go-to-market/internationalisation strategy

> Industry 4.0

Innovation

> Product strategy > Innovation management > R&D excellence

Efficiency M&A

> Overhead efficiency > Operational excellence > Product cost optimisation

> M&A strategy & target screening

> VDD/DD > Transaction support

Organisation

> Corporate organisation > Sales & service organisation > Engineering & manufacturing

footprint

Transformation

> Business transformation > Management of corporate

programs > Change management

Growth

profitability

competitiveness



To identify the latest trends around Industrie 4.0, Roland Berger continuously conducts research and publishes studies


Recent Roland Berger Industrie 4.0 studies and publications

Digitalisation and I 4.0

Semiconductors

Big Data

Additive Manufacturing Cyber Security



Please contact our Industrie 4.0 specialist you have any further questions

Dr. Bernhard Langefeld

OpernTurm, Bockenheimer Landstraße 2-8

D-60306 Frankfurt

Tel.: +49 160 744 6143 [email protected]

Partner Engineered Products/High Tech


Society of Motor Manufacturers and Traders Limited

71 Great Peter Street, London SW1P 2BN

www.smmt.co.uk

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

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Documents

Cranmore Park, Solihull 15 October 2015 · electrical energy 1969 First program-mable logic controller (PLC) Introduction of electronics and IT for higher auto-matisation of production