Industry 4.0

Presented by Peter Merrill - Chair, ASQ Innovation Think Tank

Hosted by Pablo Baez, ASQ

The Quality Professional’s Future

About Peter Merrill

• Founding Chair: ASQ Innovation Group

• Current Chair: Innovation Think Tank

• Author of Quality Press books:

– Do It Right the Second Time

– Innovation Never Stops

• Quality Progress: Innovation Columnist

• Twice chair of ASQ’s Toronto section

• President of the consulting firm Quest

• A member of the team that wrote the

– ISO 9000:2015 standard

• A graduate of the chemical engineering school

of the University of Birmingham in England.2

Global Change

Digitization

Market Change

Social Change

Perfect Storm of Change

Leading to more Change

It is not the strongest that survive,

nor the most intelligent,

but the one most responsive to change.

- Charles Darwin

Change Creates Need

Respond by Innovating

Range of understanding

Number of definitions

Like Quality

Essential elements:

driven by an unmet need

create something new

‘the new’ creates benefit

radical change in ‘doing’

Entering Industry 4.0

Industry 4.0

4th Industrial

Revolution

Internet of Things (IoT)

Big Data

Artificial Intelligence

World without Work

Social Issue

Opportunities

The Evidence

Smart Phone

Fitbit

Smart Watch

Auto Electrification

Global Warming

3D Printing

I.o.T. Factory…

Internet of Things

Network of physical objects devices, vehicles, buildings etc.

Connectivity, embedded with electronics, software, sensors

Enables collect and exchange data

Allows objects to be sensed and controlled remotely

Direct integration of physical world with IT systems

Smart grids, homes, cities, transport

Smart Factory

Connecting

cyber-physical systems

Virtual Models

to operate

Data analysis

immediate decisions

Independent decisions

Internet of Services

Flexibility

Challenges

IT Security

IP Protection

Dark Side

We can find a café

Terrorists find each other

Deep Web

Benefit

Big Data….but

New Skill Sets needed

Big Data

Big data influence (from IoT)

Economic apps Uber, Airbnb

Multisided platforms

Medicine slow (Part Privacy)

Dangers Need Data Protection Stds

Data Opportunities

Data Opportunity

Rolls-Royce sensor technology

identify engine problems early

optimize maintenance

New business model retain engine ownership

provide maintenance

single fee from hours flown

better inventory management

Data Opportunity UK “White Van Crowd”

delivering from e-retailers

roadway congestion

London Council

Agile Urban Logistics project

delivery data + traffic data >>

shared-delivery services

Vodafone, phone co.

identify drivers speed

pinpoint traffic jams

TomTom, GPS provider

TomTom buys information

tell users where jams are

Data Fuels A.I.

Data Fuels A.I.

Artificial Intelligence (A.I.)

Alan Turing

Theory of Computation

Binary Notation

‘Imitation Game’/Enigma

1955 Intelligent Machines

1974, 1987 A.I. ‘Winters’

Post 2000 computer power

Aims of A.I.

Reasoning

Solve problems

Move objects etc.

A.I. Subfields

Computer Science

Mathematics

Psychology

Linguistics

Philosophy

Neuro Science

Current A.I. Search Doc’s

Speech Recognition

Digital voice assistance

Computers play chess

Driverless cars

Robots can do simple stuff

Can read simple emotions

Humans - fast intuitive judgement

Middle skill customer service

Replace by A.I.

Stephen Hawking warning

No moral responsibility for A.I.

A.I. Challenges

Nothing simply true or false

‘Common Sense’ We have large knowledge base

Instinct Chess player see’s threat

Artist sensitive to colour

Learning Computer to learn by reading?

Future Challenges Social Intelligence, Creativity

General Intelligence

Future of Jobs; WEF

Keynes – 2030 – 3 hours a day

7 million jobs will go in 5 years

35% UK, 47% US workers lost

Jobs in 10 years

65% of these Jobs don’t yet exist

Downward pressure on low pay

US ‘On-shoring’ from India and China

I-Pad Menu

Robot serving Restaurant meal?

WEF Report – ‘Future of Jobs’

World without Work?

Work gives our lives meaning

Kill jobs – Increase inequality

Long term unemployed are giving up

Super wealthy and poverty

Major Social Pressure

Need skill and adaptability

Education still in 20th Century

E-Learning still clunky

Major changes will occur in the next five years….

Major disruption in US and Asia

Engineering and Mathematics grow – Office and manufacturing decline

Not Just STEM; Top 10 Personal Skills

In 2015

1. Complex Problem Solving

2. Coordinating with others

3. People Management

4. Critical Thinking

5. Negotiation

6. Quality Control

7. Service Orientation

8. Judgement, Decision Making

9. Active Listening

10. Creativity

In 2020

1. Complex Problem Solving

2. Critical Thinking

3. Creativity

4. People Management

5. Coordinating with others

6. Emotional Intelligence

7. Judgement, Decision Making

8. Active Listening

9. Negotiation

10. Cognitive Flexibility

Complexity & Problem Solving

Systems are Complex

Set of interrelated & interacting elements

Processes, people or technology

Elements must be linked

Deming; 90% of process problems Due to the system

Cause and Effect are often not adjacent

A small event at one end of a system

Major consequence elsewhere in system

Often called the 'Butterfly effect'

Need to understand Complexity

References; ‘Chaos’ by Gleick and ‘Linked' by Laszlo-Barabasi

Complex

Problem Solving

Natural for Quality

Understand Complexity Understand system purpose

ISO management systems

Balance holistic, analytical

Problem

often due to links breaking

Tend to focus on a process

Should focus on links transfer of information.

Creativity

For complex problem solving IBM CEO Survey 2010

PWC CEO survey 2014

People Engagement

Collective knowledge

Leads to radical solutions

We’re born creative

“nurtured out” through education

Restore creativity

Theatre, writing and painting

Exploration, Collaboration

Experimentation

Creative solutions

Produce solutions through

imagination and

unconventional approach

Occurs when we

Have freedom to think

interact with new stimuli

Daily work removes freedom

Step out of the box

Use Collective knowledge

go ‘right brain

Einstein; No problem can be solved with the

same level of consciousness that created it

Emotional Intelligence

Be able to work well with others

Be aware of one's emotions

Manage them

Express one's emotions

Empathy, understanding of others

Increases with creativity

Google; Emotional Intelligence

Score yourself

Find the areas to strengthen

Openness to experience?

Conscientiousness, being

agreeable?

2x importance technical

competence?

Innovation People

www.asq.org/innovation-group/self-assessment

Looking Forward

Good to eliminate ‘Machine Adjunct’ work

Work and income may separate

‘Non Manufacturing’ jobs STEM Skills

Personal skills

Entrepreneurship

Digital Economy Entrepreneurial Opportunity

New Technologies New Careers

Path Forward

Self Assess (website)

Think ‘Career’

Join the Division

Involve in a Project

To learn more…

Contact Peter Merrill:

• www.asq.org/innovation-group

• pm@questmgt.com

• http://questmgt.com/

• +1 905 335 2200

About the topic:

• Search ASQ’s Quality Resources

Center @ www.asq.org/quality-

resources/