»INDUSTRIAL DATA SPACE AND THE NEED FOR TRANSFORMING MANUFACTURING IN EMERGING
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1 INDUSTRY 4.0»INDUSTRIAL DATA SPACE AND THE NEED FOR TRANSFORMING MANUFACTURING IN EMERGING ECONOMIES «Kay Matzner Fraunhofer Gesellschaft (IFF) Germany Manufuture 2017 October 24 Tallinn-Estonia Nmedia Fotolia
2 Industry 4.0 requires qualified partners all over the world Technologies, Benefits and Potentials Technologies Today Condition / Process Monitoring Sensor Data Fusion Real-Time Data Analysis Data Management Data Visualization Benefits Today Process Transparency Predictive Maintenance Increased Process Stability Higher Uptime of Machinery Higher Quality Potentials Tomorrow Added Value Services on Production Data New Business and Service Models Data Safety and Security Interfaces, Standards and Norms Process Prediction 2
3 Industry 4.0 requires qualified partners all over the world High qualitative expectation on Industry 4.0 solutions by German industry Expected qualitative advantages of Industry 4.0 solutions Improved Planning (Production, Logistics) 80% 15% 5% Higher customer satisfaction 67% 27% 11% Greater production flexibility Faster Time-to-Market 62% 54% 27% 32% 11% 14% PWC questioned 235 German companies from 5 different industries /many of them globa market leaders Improving quality 49% 35% 16% Customization of products 46% 34% 20% Improved horizontal and vertical integration of value chains is improving efficiency and production flexibility Significance of Effect high medium limited See: PWC (2014) Industrie 4.0-Chancen und Herausforderungen der vierten Industtiellen Revolution, 3
4 Industry 4.0 requires qualified partners all over the world Industrial Data Space: more productivity through larger databases virtual data space to link up information within a business ecosystem groundwork for smart services and innovative business processes secure environment including defined standards and data sovereignty source: INDUSTRIAL DATA SPACE white paper 4
5 Industry 4.0 requires qualified partners all over the world Industrial Data Space: more productivity through larger databases Index INTERNET Clearing Register Broker supply chain environment Industrial Data Space upload download vocabulary apps App Store Information flow source: Fraaunhofer Industrial Date Space 5
6 Industry 4.0 requires qualified partners all over the world Global Industrial Dataspace Index Clearing upload - production planning - orders Register Broker Industrial Data Space download lifetime transport and suppliers information upload - production time - disorders - state variables upload - lot sizes download lifetime customer requirements and orders upload - state variables - delays source: Fraaunhofer Industrial Date Space 6
7 Impacts of the Digitization in the Industry Industry 4.0 technologies force emerging economies to upgrade Shift from mass production to individual products (lot-size 1) Fundamental changes of existing business models Requirements of demographic change will be met, as most new job-profiles will not be physically demanding Salaries of a region will not matter so much anymore Production will be strengthened in developed countries (Germany, USA) Optimization of production processes regarding energy and resource consumption Until 2020 globally 7 million traditional jobs will be lost and 2 million jobs with new profiles created (data: WEF) See: 7
8 Impacts of the Digitization in the Industry Industry 4.0 technologies force emerging economies to upgrade Share of manufacturing value added in 2011 Between 1991 und 2011 emerging economies increased its share from 21% to 40%; The cards maybe reshuffled: jobs from China to USA in 2016 (Source: Reshoring Initiative USA) Inspired by: Roland Berger Strategy Consultants (2014): The new industrial revolution Determining factors maybe: Automation reduces importance of labour costs; Manufacturing maybe located closer to markets (transport cost, time to market, flexibility); Improved ICT may enable manufacturers to take advantage of location specific costs; 8
9 Steps towards Industry 4.0 Challenges for successful implementation in Germany unprecise economic benefit / high investment 46% insufficient worker qualification missing standards and norms unclear legal situation / data ownweship low technological maturity open questions in data safety / security missing support from top management slow expansion of broadband internet 30% 26% 22% 20% 19% 18% 13% insufficient technology for data storage Source: Study PWC / VDMA / Siemens (2015) 6% 9
10 Steps towards Industry 4.0 Industry 4.0: German government visions and actions Some questions to be answered by German policy makers: How to adapt the needed legal system?? How to motivate and activate competences and creativity of SMEs and entrepreneurs? How to qualify citizens and employees? How to arrange efficient financing for investments and R&D? Some actions of German policy makers: Informing and sensitizing of Industry by establishment of competence centers Subsidizing Industry 4.0 introduction consultancy Implementation of large scale support programs and initiatives on Microelectronics (Sensors), standardization, legal frameworks and IT security Dialogues with international partners countries (esp. China and USA) Source: BMWi (2016) Digitale Strategie 10
11 Steps towards Industry 4.0 A theoretical approach.. 1. SET CONDITIONS FOR THE I4.0 ECOSYSTEM Action Player 2. Boost INDUSTRY 4.0 OFFERINGS Action Player 3. PROMOTE FAST ADOPTION Action Player Inspired by: Roland Berger Strategy Consultants (2014): The new industrial revolution Promote Industry 4.0 Policy makers Accelerate Information's, Develop future champions, Establish a dynamic digital environment Policy makers, Industry and Finance partners Progressively transition to I4.0 Industrial users 11
12 Steps towards Industry 4.0 Visions on Industry 4.0 Implementation in Germany Industry, BIG companies, SME companies, Start up s Strategic Partners, Building Blocks and Main Functions of the Competence Center Industry 4.0 National and Regional Governments, Municipalities Industrial Associations, SME Associations, Chambers of Commerce Competence Centre Industry 4.0 Research providers, Universities Shopping-Window (Technical Demonstrators) Function I Knowledge Transfer, Consultancy, Training Function II Research and Technical Development, Recruitment Function III Successful Implementation of a Modern Industry 12
13 Industry 4.0 in Kazakhstan Fraunhofer support activities Company-level analysis of perspectives for Industry 4.0 in Kazakhstan: status quo & readiness Policy-level analysis of perspectives for developing an Industry 4.0 strategy for Kazakhstan with a 2025 time horizon and definition of associated measures Assessment of socio-economic impacts for implementing Industry 4.0 in Kazakhstan Proposition of ready companies to be further supported through policy measures Fraunhofer IFF, Magdeburg 2017 Univ.-Prof. Dr.-Ing. Michael Schenk JAHRE 13
14 Industry 4.0 in Thailand Fraunhofer support activities Legal base: National Thailand 4.0 Program to create innovative, value-based industries in Thailand Fraunhofer activities: Industry 4.0 Readiness Study / Thailand Productivity Institute (snapshot of the readiness level in Thai automotive and electronics sector, outlook 2018: phase 2 SME I4.0 Competence Center Establishment of Fraunhofer Technology Advisory Groups ARIpolis Innovation Cluster (A: Automation, R: Robotics, I: Intelligent Systems) Advise on roadmap development, design and establishment of national innovation hubs (digitalization) Fraunhofer IFF, Magdeburg 2017 Univ.-Prof. Dr.-Ing. Michael Schenk JAHRE 14
15 Industry 4.0 in China Fraunhofer support activities Legal base: China Manufacturing 2025 strategy that intends among other things: improving manufacturing innovation in China; strengthening the industrial base in China; enforcing green manufacturing in China; promoting service-orientated manufacturing and manufacturingrelated service industries in China; Fraunhofer activities: Preparation of multiple Fraunhofer industrial cooperation's all over China to establish Industrie 4.0 Project centers and provide individual consultancy to companies and government institutions. Fraunhofer IFF, Magdeburg 2017 Univ.-Prof. Dr.-Ing. Michael Schenk JAHRE 15
16 This project has received funding from the European Union s Horizon 2020 research and innovation programme under grant agreement No Enhancing excellence and innovation capacity in sustainable transport interchanges Scope Partners Link Transport and Telecommunication Institute (TTI) with University of Thessaly (UTH) and Fraunhofer Institute for Factory Operation and Automation (Fraunhofer) Provide knowledge to TTI research staff in the field of smart interconnecting sustainable transport networks Facilitate stakeholder collaboration and develop strong linkage among education, research and industry Create a doctoral programme in Transport Economics and Management at TTI Concept Needs analysis of Latvia and the surrounding region of the Baltic sea (Lithuania, Estonia, Poland) on intermodal transportation terminals Consideration of the relations among policy makers, industry and education/research Development of a coherent educational/training program, structured around 3 pillars: Organizational/governance Operational/services Service quality/customer satisfaction Program s thematic areas
17 Technology Partner Fraunhofer IFF Dipl.-Vw. Kay Matzner Head of International Projects International Business Development Fraunhofer IFF Phone: Mobile: Fraunhofer IFF Fraunhofer Institute for Factory Operation und Automation IFF Sandtorstrasse Magdeburg Germany Fraunhofer IFF 17
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