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2017.01.12/MarComm 15 June 2017 INDUSTRY 4.0 SMALL MEDIUM ENTERPRISE (SME) SMALL & WINNING BIG STRATEGY

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Page 1: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

2017.01.12/MarComm

15 June 2017

INDUSTRY 4.0

SMALL MEDIUM ENTERPRISE (SME)SMALL & WINNING BIG STRATEGY

Page 2: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

INDUSTRY 4.0(Leadership By Data)

Page 3: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

KEY TAKEAWAYS

copyright 2017 PSDC

1. What will change?

2. Why we need it?

3. What are the key challenges?

4. How to manage changes?

Page 4: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

What will change?

copyright 2017 PSDC

Page 5: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

SMEs: LOOK AT OUR STRENGTH

gni

Source: Department of Statistic, Malaysia & SME Corp

SME’s contributed > 35% to National GDP growth Employment share > 65% of the overall nationwide total workforce Contributed > 17% of the overall nationwide export

Page 6: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

SMEs: LOOK AT OUR CHALLENGES

Increase Sales & market share Maximize Profitability

COST

PRODUCTIVITY

INNOVATION/CREATIVITY

HUMAN CAPITAL DEVELOPMENT

Page 7: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

New opportunities in Industry 4.0

copyright 2017 PSDC

Page 8: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Cost Complexity

Customer Competition

INDUSTRY 4.0: WHY WE NEED IT?

Eliminate waste & losses Eliminate human dependency Increase productivity

Mass personalization Fast, Cheap, Quality Customer drive for change

Sub-Nano technology Global Digitalization Exponential technologies

Increase sales Increase competitiveness Increase market share

copyright 2017 PSDC

Page 9: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique
Page 10: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

High Skilled Technical (Engineer)

Mid Skilled (Technician)

Low Skilled(Operator)

Local

Foreign

CURRENT INDUSTRY 4.0

Local

Foreign

INDUSTRY 4.0: WORKFORCE TRANSFORMATION

High Skilled Innovator (Engineer)

Mid Skilled (Specialist)

Low Skilled(Operator)

Robotics

Automation

Local (Existing)

Local (Upgrade)

Industry 4.0 will eliminate our dependency on Foreign labour workforce Industry 4.0 will provide platform for job/skill upgrade for existing local workforce

copyright 2017 PSDC

Page 11: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Introduction to Industry 4.0 11

WHY DO YOU WANT TO IMPLEMENT INDUSTRY 4.0?I4.0…..Goal, Mission or Tools?

copyright 2017 PSDC

Page 12: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Industry 4.0 is the current trend of digital data

exchange & automation through Cyber Physical System in manufacturing technologies.

copyright 2017 PSDC

Page 13: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Digital data exchangeAutomation

Cyber Physical System (CPS)

copyright 2017 PSDC

Page 14: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

9 Technological

Pillars

copyright 2017 PSDC

Page 15: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique
Page 16: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

INDUSTRY 4.0: FRAMEWORK

copyright 2017 PSDC

Page 17: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

How to start?

copyright 2017 PSDC

Page 18: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

KICK STARTING THE PROGRAM:WHERE DO WE BEGIN?

BUSINEES

OPERATION

P&L(PROFIT & LOSS)

OEE(OVERALL EQUIPMENT EFFICIENCY)

copyright 2017 PSDC

Page 19: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

THE INDUSTRY 4.0: 1st STEP

Assign all “THINGS” a name- Products & Material with ID (Barcode, Unique name)

- Real-time scan, track & trace

Measurements- Process & Sensor data

- Across value chain & multiple points

- Production & Products

- Improve process time, quality and reduce cost

Connect & Analyse- Products & digital specifications

- Production materials & process data

- Data exchange & interconnectivity

- Analyse data real-time

- Initial steps towards BIG Data

Page 20: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

GOALS: PRODUCTIVITY & BUSINESS RESULTS

VISION/GOALS

ARPPOACH/MISSION

INDUSTRY 4.0PRINCIPLES

TECHNOLOGY TOOLS

PRODUCTIVITYTOOLS

Autonomy

Connectivity

Interoperability

Virtualization

Decentralization

Real-time capability

Service Orientation

Productivity tools & 9 pillars technology tools convergence master plan Establishment of tangible KPI’s Technology tools from the 9 pillars as part of the productivity tools

+ +

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Key Challenges

copyright 2017 PSDC

Page 22: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

NEW EQUIPMENTSCOST

INVESTMENTROI ???

copyright 2017 PSDC

Page 23: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Big Data Analytics

Industrial Internet

of Things

Horizontal & Vertical

Integration

CloudSimulation &

Augmented Reality

Cybersecurity

UPGRADING PSDC LABS TO I4.0: OLD MACHINERY

Page 24: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

DATA ACQUISITION

SYSTEM HARDWARE

UPGRADE

INTEGRATION OF

MACHINE PROGRAM

WIRELESS DATA

TRANSFER TO CLOUD

Sensors

UPGRADING PSDC LABS TO I4.0: OLD MACHINERY – HARDWARE/SOFTWARE UPGRADE

Page 25: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

SENSOR

CNC

Mac. RunningSpeed : xxFeed Rate: xx Cutting Depth : XX

CLOUD

MACHINE

• Spindle Vibration

• Feed rate• Cutting

depth

GATEWAY

Temperature Vibration Current

Spindle Feed Rate Depth

PSDC: Real Time Data Integration System

Predictive Maintenance

OEE=70% A=80% P=90% Q=95%

CMM

MACHINE• Actual

data vs spec

Temperature

Vibration

Current

UPGRADING PSDC LABS TO I4.0: OLD MACHINERY

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Management/Leadership By Data?

copyright 2017 PSDC

Page 29: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

EXECUTOR

(GEN Y)

MANAGEMENT

(GEN X)

POLICY/

DECISION MAKER

(BABY BOOMERS)

BUSINESS & OPERATION

INDUSTRY 4.0 (MANAGEMENT BY DATA - MBD)DIGITAL DATA EXCHANGE & AUTOMATION THROUGH CPS

copyright 2017 PSDC

MULTI-GENERATIONAL LEADERSHIP HEIRACHY

ADOPT ADAPT

DATA

DATA

Page 30: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

CURRENT INDUSTRY 4.0

Fire fighting Manual data tracking & analysis Manual recording Reactive problem solving Human dependant operation

Data driven BIG Data & auto analysis Electronics data pull Proactive problem solving Autonomous machineries

Just focus on IT Outsourced to 3rd party CLOUD adoption General IT

Need to know operation In house expertise CLOUD and integration to IIoT System integrator (S/H/SI)

Centralisation Lack of operation knowledge Fragmented system Too much of paperwork Document for compliance

Cross functional Must well verse with operation Integrated system Electronics based system Auto reporting for compliance

MBO (Management By Obj.) On site, Remote Micro & Macro Managing TRUST on PEOPLE

MBD (Management By Data) Virtual but Visible SMART Management TRUST on DATA

+

+

+

TEAMcopyright 2017 PSDC

INDUSTRY 4.0: R&R

MINIMUMLY – HYBRID COMPETENCY LEVEL

Page 31: INDUSTRY 4PROFIT & LOSS) OEE (OVERALL EQUIPMENT EFFICIENCY) copyright 2017 PSDC THE INDUSTRY 4.0: 1st STEP Assign all “THINGS” a name - Products & Material with ID (Barcode, Unique

Thank Youwww.psdc.org.my

PSDC | 1, Jalan Sultan Azlan Shah, Bandar Bayan Baru, 11900 Bayan Lepas, Penang, Malaysia