Combine Chinese Speed and German Precision

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1 INNOVATION IN THE LIGHT OF MADE IN CHINA 2025 Fraunhofer-Institute for Production Systems and Design Technology (IPK) Berlin Prof. Dr.-Ing. Thomas Knothe Head of Business Process and Factory Management Division Corporate Management Director SGIMRI Project Combine Chinese Speed and German Precision

2 1 The Fraunhofer Gesellschaft

3 Fraunhofer is the largest organization for applied research in Europe 弗劳恩霍夫 - 欧洲最大的应用研究机构 More than 80 research institutions, including 66 Fraunhofer institutes More than employees, the majority educated in natural sciences or engineering Annual research volume of 2.2 billion Euros Every day 2 patents, e.g. invention of mp3 and airbags International collaboration through representative offices in Europe, US, Latin America, Asia and the Middle East

4 Joseph von Fraunhofer ( ) 约瑟夫 冯 弗劳恩霍夫 Researcher 研究者 Discovery of the Fraunhofer lines in the solar spectrum 在太阳光谱中发现 弗劳恩霍夫 线 Inventor 发明人 New processing method for lenses 新的镜片加工方法 Entrepreneur 企业家 Director and partner in a glassworks 一家玻璃工坊的总监及合伙人

5 Fraunhofer is the largest organization for applied research in Europe 弗劳恩霍夫是欧洲最大的应用研究组织 66 institutes and independent research units 66 个研究所和独立研究单位 Applied Research 应用研究 The majority of nearly 24,000 staff are qualified scientists and engineers 在 名员工中多数是有资质的科学家和工程师 Research Volume: > 2,2 Billion Euro, about 1,7 Billion Euro Contract Research 研究量 : 每年超过 22 亿欧元,17 亿欧元的合约研究

6 Fraunhofer IPK is developing and integrating advanced robotics and machining with business process intelligence for new business models

7 China is by far the most dynamic and at the same time the hardest market for Innovation Service Provider IPR Protection A Contract is a just a recommendation Time for Decision Making Customer Expectations before Contract Different Systems Understanding

8 2 Made in China 2025 vers. Industrie 4.0 Challenges & Opportunities

9 Consequent Pathway in China Intelligent Manufacturing in China 3-Step-Vision Shifting China from a big manufacturing country to a quality-oriented till China being able to compete with developed manufacturing powers by Transforming China into a leading manufacturing power till 2049 (100th anniversary date) Made in China th 5-Year-Plan Planning Chronology 1. From a manufacturing giant to one with a qualitative leading edge 2. Increase overall labor productivity, Reduce energy and material costs per unit, 3. Master core technologies in key areas, Increase number of multinational enterprises and industrial clusters 1. Optimize and innovate organization systems 2. Implementation of a deep level Top 100 innovative enterprise program, 5-Year-Plan for Intelligent Manufacturing % of key technologies in the field of intelligent manufacturing have to be delivered from Chinese companies 2. More than 200 intelligent manufacturing standards will be set or revised 3. More than 40 system solution providers will be cultivated 3i Strategy incl. Promotion Alliance Support Initiatives Intellectual Properties Strategy Internet Plus 9

10 National Characteristics China 2025 Speed German Industrie 4.0 Precision & Engineering USA Entrepreneurship Pragmatic Application of quick wins Use mature Technologies Focus on Technologies Government - Strategic Key development Increase Innovation and Creation (Research Labs in US and Germany) Visionary Concepts Social Technical Systems Engineering Focus on Social Aspects, Mind Setting Radical Concepts with high Risks Exploitation oriented Driven by Defense Industry

11 Similarities Large public programs overlapping regional support and light house projects Holistic view including an enterprise specific economic view Professor Dr. h. c. Dr.-Ing. Eckart Uhlmann World Intelligent Manufacturing Summit in Nanjing 2016 Both user and technology provider market (Too) many conferences Many very local implementation with a lot of problems

12 Difference Chinese Companies are not used to pay for engineering

13 Difference Frameworks and Industry Associations vers. Top Down Strategies and Relationship Orientation Strategic Partnership Fraunhofer IPK - Nanjing Industry Association & Frameworks Top Down Approach

14 Difference in Robotics Human Support vers. Exchange

15 Time 2011 Industrie 4.0 Start 2015 Made in China 2025 T I M E 2017 Frameworks still not in industrial application 2017 New Programme in planning

16 Still tremendous diversity regarding industrialization and innovation Examples 5-7 % of Sales invested into R&D Winner of Global Performance Award World No. 1 Concrete Machinery Manufacturer 40% Increase of Turnover for Heavy Cranes in 2017 World Wide Production Sites 5 New Business Types since 2010 (e.g. Insurance, Wind) Machine Tool Provider Jiangsu Province Construction Machine Provider Hunan Province

17 Issues from Seven Years ago Quality Factory Productivity Employee Safety Production Technology Protected Market in China Acquisition of European Competitors

18 3 The SINO-GERMAN Intelligent Manufacturing Research Institute

19 Our joint Mission Fraunhofer IPK and SGIMRI are developing the most cutting edge application oriented Organisation in China and a state-level platform for: Fostering Intelligent Manufacturing in Jiangsu Province and all China Strategic Chinese-German Cooperation Collaboration regarding Made in China 2025 and Industrie 4.0

20 SGIMRI is an Integrated Provider of Solutions for Intelligent Manufacturing Demonstration Center Training Center Application Center Demonstration of opportunities in Intelligent Manufacturing Possibility for partner companies to present themselves Change Management Training for Executives Interactive Training in learning factories for operational employees Implementation of Intelligent Manufacturing in serial production Incubation of start-ups in the field of intelligent manufacturing

21 How to work with SGIMRI Learn Create an up-to-date mindset for your employees to be innovative through our learning factory Innovate Create new intelligent products and establish intelligent manufacturing processes to reduce costs Sell Place your intelligent manufacturing products at our institute, become a preferred partner and increase sales through us Invest Get to know start-ups in the field of intelligent manufacturing, invest and participate in the latest trends

22 Introduction Who is SGIMRI? Cutting Edge Demonstration Center Technology Overview for Live Demo 22

23 4 Some Learnings

24 Opportunities in Chinese Market Audi Turnover 2016 China Rest Source: Statista Interaction is necessary Separation is not a solution Source: characterandleadership.com

25 Selected Experiences 1 Combine innovation strategy between both company parts Now German Companies are interested as well Remember! Limited Appreciation of Analysis and Planning 6 Weeks Fully digitized individual Production Prototype

26 Selected Experiences 2 Combine Advantages from Government and Company Relations High Level Support for IPK and SGIMRI Cooperation to establish Center for Intelligent Manufacturing in Nanjing

27 Experience 3 Binding local Chinese Employees Innovation Award for a fair by having just 2 month for preparation

28 Thanks a lot for listening Fraunhofer-Institute for Production Systems and Design Technology (IPK) Berlin Prof. Dr.-Ing. Thomas Knothe Head of Business Process and Factory Management Division Corporate Management Director SGIMRI Project Thomas.knothe@ipk.fraunhofer.de Combine Chinese Speed and German Precision

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