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Adient Industry 4.0

David McCarthy, Adient Christian Baldwin, AdientMay 11, 2017

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> Introductions> Digital Transformation> SMAC (Social, Mobile, Analytics, Cloud)> Industry 4.0> Use Case: Apollo Smart Logistics implementation> Questions and Answers

Agenda

Adient / Adient Industry 4.0/ May 11, 2017

Adient IT OrganizationNavigating the Digital TransformationFebruary, 2017

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Transformation is not from new technologies but transforming your organization to take advantage of the possibilities…” - MIT Center for Digital Business


What is a “digital transformation”?

“Use of technology to radically improve performance or reach of enterprises”

> SMAC (Social, Mobile, Analytics, Cloud)> Industry 4.0> Improved use of traditional technologies (i.e. ERP)

Customer experience

Operational processes

Business models


INTEGRITYWe have a passion for winning but at all times will act with unquestioned integrity. We will always do the right thing.We will treat one another honestly and with respect and consistently meet our commitments.

OPERATIONAL EXCELLENCEWe will be the cost leader in our industry. We will be operationally excellent at everything we do through a focus on continuous improvement. Our Operating System will be fully deployed and we will be the most operationally capable company in our industry, with recognized industry leadership in cost, quality, launch execution, and customer satisfaction. We will have globally consistent, lean business processes centralized in low cost countries and supported by world class information technology systems. We will leverage our global footprint, scale and ‘Materials Best Business Practices’ to be the benchmark in operations, supply chain management and supplier development.

GLOBAL GROWTHWe embrace the globalization of the automotive industry and through our global footprint and joint venture partners will be uniquely positioned to win. We will be global market share leaders and leverage our leading position and capabilities in China.We will leverage our world class capabilities to grow beyond the automotive industry, with at least $1 billion annual revenues derived from non-automotive

CUSTOMERSATISFACTIONWe will be known for customer satisfaction. Our leaders are expected to be advocates for the customer and we will work collaboratively with customers to gain global market share. We will be easy to do business with. Flawless program management and launch execution will be a hallmark of our organization.

PEOPLE AND LEADERSHIPOur people are our greatest asset, there is nothing more important thantheir safety. We expect to be held accountable. Our culture of employee engagement and leadership development will be the benchmark in our industry. Wewill promote from within and will celebrate and recognize excellence. Our diversity will mirror our markets. Our company embraces strong corporate citizenshipand our people are expected to be active in their communities. Leaders are the stewards of our performance culture.

SHAREHOLDER VALUEWe will deliver top quartile shareholder returns within our industry through market share growth, margin expansion, revenue diversification and strong free cash flow generation. We will pursue acquisitions to accelerate our growth. We will have a strong balance sheet that affords financial flexibility to sustain the company through business cycles.

PRODUCTDEVELOPMENTAND INNOVATIONOur engineering and product development process will be world class. Our engineering footprint will be globally capable and focused in low cost countries. Innovation will be a significant driver of our global growth. We will surprise and delight our customers globally, introducing our innovative products at the world's major automotive shows.

Five Year Marker 2017 - 2022

Digital Twin, Rules based Engineering

Industry 4.0, Automation, Analytics, Cloud

Digital Marketing

CRM, Social, Industry 4.0

Social, Mobile, Yammer

Business automation, Industry 4.0Adient / Adient Industry 4.0/ May 11, 2017

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Transforming Adient

> SMAC> Industry 4.0


SOCIAL7.4 billion people

3.1 billion internet users

2.3 billion active social users 219 Millionin last year

90% of adults age 18 to 29 use social media

5 social media

accounts

2 hours per day


Adient / Presentation Title / Date

VALUE in Social MediaBuild> Brand awareness> Brand loyalty> RelationshipsIncrease > Website traffic > Search ranking> Customer insightImprove > Customer reach> Customer experiences> Targeted/real time adsTrack > Competitors> Customer buying patterns

MOBILE7.4 billion people

6.0 billion own smart phones

4.2 billion own toothbrushes

5x’s >More mobile phones than toilets

26 HOURSto report a lost

wallet


68 MINUTESto report a lost mobile phone

Bring your own tabletEmployees & Contractors can use their own tablet to access > Email> Calendar > Other apps

Commercial mobile apps> SalesForce1 (Commercial/CRM)> Workday (HR)> Outlook/Skype/OneNote/Office (GI)> ReimburseMe (HR)> Mobile BI (BIS)> Gates (Infor)

Custom Adient apps > Vehicle Content> Program Translator> Sales Quick Reference App> GoBench / Craftsmanship (Engineering)

> Layered Process Audit (Quality/SCIIL)

> Startech (Engineering)

> Product Costing (Purchasing)

Adient App Store

Adient is Going Mobile


Analytics“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.”

Jim Barksdale, former Netscape CEO


ANALYTICSEVERY DAY WE CREATE

2,500,000,000,000,000,000(2.5 QUINTILLION) BYTES OF DATA

Fill 10 million Blu-ray discs, the height of which stacked, would measure the height of 4 Eiffel Towers on top of one another

Data stored grows4X FASTER THAN THE WORLD ECONOMY

Increasing quantity of data allows forMORE QUALITATIVE APPROACH

> Data in the 21st century is like oil in the 18th century: an immensely, untapped valuable asset

> Like oil, for those who see data’s fundamental value and learn to extract and use it there will be huge rewards

> We need to turn our data infrastructure from a cost center to a profit center

After People, Data is Our Most Valuable Asset!


CLOUD

Business Agility

Scalability

Cost

Mobility

Innovation

Big data management

Systems management

Security

Mobile services

Data backup / Disaster recovery

Fastest growing sectors

3 out of 4 decision makers use cloud services for their business

80% 94% 75%

reduced costs

improvedsecurity

improvedservice

availability

Top adoption drivers

of cloud adopters experienced…

BECOMING ADIENT I ALC Meeting I 05.10.16

On Premise Cloud

Private vs public

Accelerated time to market

Contract negotiation

Fixed floor

People Cost

Hardware Cost

Backup/DR Costs

Infrastructure Cost

How we will ensure we have the RIGHT balance?

> Cloud providers are starting to protect revenue stream

> Adopt long-term strategy instead of being short-sighted

> Select the right class of service

> Resist the impulse…don’t cloud just to cloud

> Find the right pace

> Monitor the cost; perform cost comparisons

Striking the Right Balance with Cloud


Adient / Presentation Title / Date 17

Industry 4.0

The Promise of Industry 4.0

Parallel Approach to Realizing I4.0Parallel Approach

Standardize / Streamline MES / Infrastructure

POC 1

POC 2

POC 3

POC 2 : Self-funding

POC 3 : Self-funding

X

> Digital Initiatives in parallel with long term projects> Define Time Bound POCs with lesser (3 to 5) Use Cases targeted to address

immediate needs> Multiple POCs in parallel to determine relative value and impact> Leverage Partner Solutions to Prove the Technology> Fail-Early and Deliver In-Time> PoCs should be Production-Ready> PoCs to enable insights for full scale implementation – architecture, legacy

roadmap, capabilities.> Bootstrapped POCs: POCs designed to self-fund themselves after designated

time-frame> POCs should be designed to create specific, factual and concrete

insights into areas of interest

Benefits

ParallelShorter Time Frames

Work with existing infrastructure

Fail Fast & Learn

LowCapex

The Digital “Way” - Program office

Digital Portfolio Management> Portfolio health

> Governance> Financial model / funding> Investment timing> Realized benefits

> 5 year marker alignment> Digital Investments; # & $

by marker> Benefits realized by

marker

Vendor Ecosystem> New solution screening

> Network activation> Screening process> GITP integration

> Engagement model > Structure of multi-vendor

model> Execution model / staffing> Cloud solutions / process

to migrate

Program/project Management> Agile for Digital

> Design Thinking workshops> Idea generation> Agile POC’s> Fail rapidly> Transition to IT Delivery

Regional BRM> EMEA/Asia/China

> Provide regional linkage> Tie into regional

leadership both IT / Business

> Engagement model > Regional councils> Cross domain (digital)

Smart Logistics Use Case - Automated Supplier Replenishment SystemIntegration to JIT Pipeline

Broadcast pointsVIN's

Loading rulesTrailer mappingReverse sequencing

Apollo Handling units

Blended consumption & JIT Pipeline coverage

Future Proofing


Trigger based SCM & Manufacturing signals

Seat install Backflush Ship

signal Exit paint Entry paint ■ Exit body

weld Stamping Body weld 862 DataApollo SCM &Manufacturing pipeline tool

■ ■ PUS Trigger

■ ■Sew

manufacturing lead time

■ Sew lot trigger

■ ■Cut

manufacturing lead time

■ Cut lot trigger


Accuracy Exit from Body Weld 80% Painting Booth 95-99% Assembly Line 99.9%

Process automation

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Incoming request

RPA Classifier

Resolve cases

Automatable Cases

Fallout Requests

Manned Resolution

Manual Resolution

RoboticResolution

Robots

Validates, classifies & routes requests to Robots

Fallouts /Errors

Source: Infosys LTD


Functionalities & Benefits> Automated Pick Up Sheet

replenishment

> Driven by Production Cadence (Line Consumes a truck – replenish a truck)

> Orders to Consumption - Build sequence

> Visibility to Broadcast

> Automated VMA (Visualization, Monitoring, Alerting)

> Batch Sequenced replenishment to standard packs

> Receiving manning reduction

> Payback measured in months


25Adient / Adient Industry 4.0/ May 11, 2017

Three Predictions for AI

More than half of your customers will select you based on your AI instead of your traditional brand.

Most interfaces will not have a screen and will be integrated into daily tasks.

Digital assistants will be so pervasive they’ll help employees accomplish more, operating in the background for workplace interactions.

Visualization, Monitoring & Alerting Applications


http://cands.com.ar/JCI/web/

http://webapp.cands.com.ar/pgs/monitor.html

http://webapp.cands.com.ar/

Questions


Questions & Answers

Thank you all!

Adient / Adient Industry 4.0/ May 11, 2017 28

David McCarthyIT Project Manager, [email protected]

Christian BaldwinSr. Manager, Industry 4.0 Leader, [email protected]

Documents

PowerPoint Presentation€¦ · PPT file · Web viewContract negotiation. Fixed floor. Backup/DR Costs. Infrastructure Cost. Private vs public. Industry 4.0. ... PowerPoint Presentation