SALIZA BT SAARIMPC

Industry 4WRD

M A L A Y S I A P R O D U C T I V I T Y C O R P O R A T I O N

Global Industrial Development

China:

Made in China

2025

Japan:

Society 5.0

Singapore:

Smart Industry

Readiness Index

Thailand:

Thailand 4.0

Sweden:

Smart IndustryGermany:

Industrie 4.0

Netherland:

Smart Industry

France:

Industrie du Futur

Indonesia:

Making Indonesia 4.0

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Industry4WRD: National Policy on Industry 4.0

“I believe that the Industry4WRD: National Policy on Industry 4.0

would enable the manufacturing sector to move into Industry 4.0

and along the way contribute to fulfilling Malaysia’s commitment

to the United Nation’s Sustainable Development Goals (SDGs).”

YAB Tun Dr. Mahathir bin Mohamad

31 October 2018, MITI

“Industry4WRD is Malaysia’s response to Industry 4.0 and

beyond, that calls for transformation of manufacturing sector and

its related services to be smarter and stronger, driven by people,

process and technology”

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Industry4WRD in a nutshell…

Strategic partner for smart

manufacturing & related

services in Asia Pacific

Total solutions provider for

advanced technology

Primary destination for

high-tech industry

VISIONOBJECTIVES SHIFT FACTORS

Process

Attract

Create

Transform

People

Technology

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Four (4) goals for the nation

Productivity

30%

Productivity of the

manufacturing

industry per person.

from RM106,647

GDP

RM392 BAbsolute contribution

(RM) from the

manufacturing sector

to the national

economy

from RM254.7 B

Innovation

Top 30

Strengthen

innovation capacity

and capability:

Global Innovation

Index ranking

from #35

Employment

35%

Skilled workers

employed in the

manufacturing

sector

from 18%

Targets by 2025, developed from 2016 baseline figures

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Alignment with 11MP: Catalytic & High Potential Sectors

• Automotive• Transport• Textiles• Pharmaceutical• Metal• Food Processing• Furniture• Services

The leading industry in Malaysia’s

manufacturing Sector, contributing significantly to the country’s exports and employment

Electrical & Electronics

One of the key areas for growth

and development, focusing on high value-added and high technology

industry

Machinery & Equipment

One of the catalytic industries in the

country with rapid growth due to the

availability of oil and gas as feedstock

Chemical

Spans across an extremely wide

range of industries from rubber and latex, plastics, machinery and

engineering support and electronics

Medical Devices

A strategic sector with high growth potential in the

country’s industrialisation and

technological development programme

Aerospace Other Sectors

6

Financing & Outcome-based Incentives

Enabling Ecosystem &Efficient DigitalInfrastructure

Access to Smart Technologies & Standards

Upskilling Existing &Producing Future Talents

Regulatory Framework &Industry Adoption

7

Industry4WRD: Strategic Enablers

Drawdown from Industry4WRD Policy

A programme identified under Strategy R2 to assess company’s I4.0 readiness and to develop action plan to accelerate adoption

Create a platform and mechanism to help manufacturing firms, especially SMEs, assess and develop their Industry 4.0 capabilities

R2STRATEGY

To identify areas of improvements in each dimension

Gaps2

To recommendfurther actions to improve efficiency and productivity

Improve3

To develop industries adoption baseline

National baseline

4

Proposed as pre-requisite for future industry 4.0 incentive

Pre-requisite5

Provide indication on the level of readiness for an organization in the adoption of Industry 4.0 elements

Assess1

Industry4WRD is aimed to…

Background

Comprehensive programme to help firms assess theircapabilities and readiness to adopt Industry 4.0technologies and processes.

Industry 4.0 adoption as well as opportunities• Identify the gaps and areas of improvement for

forproductivity improvement and growth; and

• Develop feasible strategies and plans to performoutcome-based intervention projects.

Outcomes:

• Determine their state of readiness in the adoption of Industry 4.0 technologies;

Objective:

Industry4WRD Readiness Assessment

This Photo by Unknown Author is licensed under CC BY-ND

Sales Turnover :

RM300,000 - RM50 Million

and/or employees :

5 - 200

MANUFACTURING RELATED SERVICES

Sales Turnover :

RM300,000 - RM20 Million

and/or employees : 5 - 75.

OWNERSHIPS

60% Malaysian equity

Selection

CriteriaMANUFACTURING

The Assessor The Company

Training

Exam

Certified Assessor

Mock Audit/practical

Public announcement/ Awareness

Company register interestApply online atwww.miti.gov.my/

industry4wrd

Myi4.0-RATechnical/Steering Committee Review/Endorsement

Assessment process takes place

Prepare full report-Shift Factors, Band, Pain Points and Recommendation

Table to Myi4.0-RA Technical/Steering Committee Review/Endorsement

Inform AB’s &Details

T H E R E A D I N E SS A S S E S SME NT ( R A ) P R O C ESS F L O W

Selections & Qualifying

CRI TERI A M ODEL

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Focuses on people and the entire organisation.

Emphasis on strategies towards having a right set of workforce

Focuses on management system in running business operations, supply chain and product lifecycle.

Emphasis onsmart and strategic public-private partnerships, security, sustainability and product co-creation.

Focuses on the application of intelligent, connected and automated technologies.

Measured at three different layers of the business: Shop floor, enterprise and facility

Industry4WRD Readiness Assessment Criteria

People

Focuses on the people and the entire organisationby emphasising on strategies towards having a suitableset of workforce

Focuses on the application of intelligent, connected and automated technologies at 3 different layers

Technology

Focuses on the management system involved in running business operations, supply chain & product lifecycle

Process

3 Shifts Factors 8 Thrusts 21 Dimensions

20%50% 30%

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Readiness profile andscoring

READINESS PROFILE

SCORE GENERAL DESCRIPTION

Conventional 0% - 20% Operation remains “as is” with no intention or initiative into Industry 4.0adoption

Newcomer 21% - 40% Has interest to pursue Industry 4.0 but with none or very minimal efforts orinitiatives

Learner 41% - 60% Has interest to pursue pilot line Industry 4.0 adoption in operation, with existence of planning and strategies, efforts or simple and patches of initiatives being implemented. Ready for some system adoption

Experienced 61% - 90% Has pursued small to medium scale Industry 4.0 adoption initiatives in operation, horizontal integration and ready for large scale system adoption

Leader 91% - 100% Has implemented large scale Industry 4.0 adoption initiatives (company-wide) and system integration

1

2

3 4

02Menu :Transforming Industry

URL: http://www.miti.gov.my

01 03 Sub Menu :Industry4WRD

Industry4WRD ReadinessAssessment Online Application

• Part 1 of 4 –• Company Profile

• Company’s main activity• Manufacturing

• Part 2 of 4 – Interest in Industry 4.0

• Part 3 of 4 – Technology Know How

• Part 4 of 4 – Term of Agreement

DRIVING PRODUCTIVITY OF THE NATION

Part 1 of4Company Profile

Company’s main activity

Manufacturing

DRIVING PRODUCTIVITY OF THE NATION

yyyy-mm-dde.g.: 1996-02-27

Write

N/A

if your company does not have a

website.

Part 2 of4Interest in Industry 4.0

DRIVING PRODUCTIVITY OF THE NATION

Part 3 of4Technology Know How

DRIVING PRODUCTIVITY OF THE NATION

Part 4 of4Term of Agreement

DRIVING PRODUCTIVITY OF THE NATION

Readiness Assessment Process

Online Registration Industry4WRD-RA Technical/ Steering Committee Review

On-site Assessment

RA report

Table RA report to Technical/ Steering Committee

Inform assessment outcome to company

Snapshot of Shift Factor Scoring

People (20%) Process (30%)Technology (50%)

Case Studies on Industry 4.0 adoption

30• Deployment of AGV with fleet

management system to transfer

semi-finished products from

Production Line to Proofer and return

(Route A) and from Proofer to Blast

Freezer and return (Route B)

• Labour Intensive Material handling of

semi-finished products

• WIP issues - FIFO issues

• Ineffective fleet management

Automated Production Fleet Management

System using Auto Guided Vehicle (AGV)

Reduce Manhour

830 hrs of operators time

Eliminate Rejection

2% or 6460 pcs per day

Improve Product

Quality

Production Time Management

Company B – Food & Beverage Industry

Seamless production flow

Maximize OEE

Outcome

Solution

Problem

PROCESS

• Tracking of Industry 4.0 trends is doneby top management but information not systematically retained. Technology Management Plan is aligned to Industry4.0 but not fully optimised.

• Most of the production machines have electronic-based control system and machines maintenance currently done on the need basis.

TECHNOLOGY• Has a good combination of advanced

and medium level automation technology. Most of the production machines are physically connected and able to communicate with each other. Some machines are able to respond and provide feedback autonomously in real time according to changes in the production conditions.

PEOPLE

• Tech savvy top management able todrive the company to adopt Industry 4.0 technology in the future.

• The company has the necessary talent pool to carry out Industry 4.0 activities. However, top management adopts wait-and-see attitude and does not wish to affect changes now.

Example of Assessment Report #3

Snapshot of findings

Example of Dimension Assessment Band

4

3

2

1

0NoneShop floor assets are not on any electronic or digital system

DiagnosticsShop floor assets are connected with network sensors and devices which allows the integrated system to identify and notify critical problem and inform possible causes

Assessment bands and description for Shop floor Intelligence towards Industry 4.0 implementation readiness

BAND

ComputerisedShop floor assets apply pre-programmed logic to perform tasks on its equipment, machinery and computer-based

system

PredictiveShop floor assets can predict and notify critical problem and inform possible causes

AdaptiveShop floor assets can predict, notify critical problem, and independently execute decision to optimise performance and resource efficiency. Assets are able to undertake corrective measures

PROCESS

• Tracking of Industry 4.0 trends is done by top management but information not systematically retained. Technology Management Plan is aligned to Industry 4.0 but not fully optimised.

• The flexible manufacturing system is able to cater for mass customisation with minimal human intervention.

• Most of the production machines have electronic-based control system and machines maintenance currently done on the need basis.

• Facility monitoring – health monitoring of water treatment plant is carried out manually on on hourly basis.

TECHNOLOGY• Systems used in Enterprise are

Automated Financial Management System (FMS), which is connected to the Human Resource Management (HRM), Sales & Marketing in a secured network.

• Has a good combination of advanced and medium level automation technology. Most of the production machines are physically connected and able to communicate with each other. Some machines are able to respond and provide feedback autonomously in real time according to changes in the production conditions.

• Technology pillars adopted

o System integration

o Internet of Things (IoT)

PEOPLE

• Tech savvy top management able to drive the company to adopt Industry 4.0 technology in the future.

• The company has the necessary talent pool to carry out Industry 4.0 activities. However, top management adopts wait-and-see attitude and does not wish to affect changes now.

Pilot Project

Snapshot of findings

PROCESS

• Introduction of a systematic method towards keeping records of the trends and mapping it to the technology roadmap which is currently available in the company.

• Introduce Inventory system through out the production chain (from production to warehousing and logistics) which allows product/batch tracking. For example utilisation of Barcode or QR code as the tracking interface between the physical

product and the management system.

• Introduction of automated water treatment plant health monitoring system using sensor technology and IoT to measure and feedback real time information through mobile apps.

TECHNOLOGY• Develop a web-based application for

vendor management system, which links all its vendors and suppliers to assist in streamling ordering workflow, optimisationof supplier base and allow vendor performance monitoring.

• In the long term, company can integrate all currently available individual management systems or deploy a centralised resource management system for better efficiency.

• Upgrade or improve on the integration of all production machines to allow for communication with a centralised control system for monitoring and control. This allows for;

• Real time data acquisition for analysis and process control.

• Improvement in production planning and decision making.

PEOPLE

• Disseminate Industry 4.0 principles and company’s strategy to staff in phases.To encourage staff understanding and participation in future Industry 4.0 implementation.

• Conduct training need analysis for employees to identify the current skill level of the employees with regard to Industry 4.0.

• Work with skills development centresfor executive and non-executive skill enhancement programme to prepare the workforce for the adoption of Industry 4.0

Pilot ProjectSnapshot of Improvement Plan

Report Summary

0

1

2

3

4PROCESS

TECHNOLOGYPEOPLE

CURRENT STATUS

MAX. VALUE

Readiness Profile Points

Conventional 0 %-20 %

Newcomers 21 %-40 %

Learners 41 %-60 %

Experienced 61 %-90 %

Leaders 91 %-100 %

Company scored overall 34%

Assessment Summary:

• Overall the company has experience in terms of strategy and technology moving towards Industry 4.0 but currently their focus is

on 3 major areas of improvement; product quality, production bottleneck and marketing & branding.

• Currently, some of the machines are Industry 4.0 ready but not fully exploited, due to their priority areas as mentioned. In terms

of strategy, they have technology and business roadmaps which states their vision towards becoming an IPO company in 2022.

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MINISTRY OF INTERNATIONALTRADE

AND INDUSTRY

MPC Industry4WRD Unit