roadmap to industry 4 - thailand management association · 2018-09-13 · tma - roadmap to industry...
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Roadmap to Industry 4.0What it takes to build the factory of the future
Bangkok, July 20, 2017
Note: this presentation leverages findings from the BCG study: "The Factory of the Future"; for the full study, please click here
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 1
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BCG deeply involved in driving Industry 4.0 worldwide
Manufacturers
How to make the most
of Industry 4.0?
I4.0 suppliers
What will the market
need in the future?
Governments
How to prepare the
economy for the future?
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 2
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We operate our own I4.0 model factories to drive research
and offer clients an immersive learning experience
Source: BCG
Boston
Paris
Aachen
Kaiserslautern
Stuttgart
Singapore
Coming soon
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 3
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Agenda
CONTEXT – what is it & what makes it so disruptive?
ROADMAP – what does it take to get it done?
ENABLERS – what are key success factors?
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 4
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CONTEXT – what is it & what makes it so disruptive?
ROADMAP – what does it take to get it done?
ENABLERS – what are key success factors?
Agenda
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 5
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It's no longer science fiction …
COLLABORATIVE
ROBOTS
INNOVATIVE USER
INTERFACES / AR
AI / COGNITIVE
COMPUTING
BIG DATA + ADVAN-
CED ANALYTICS
SHIFT TO
THE CLOUD
UBIQUITOUS
CONNECTIVITY
IOT / CONNECTED
DEVICES + SENSORS
3D SCANNING AND
PRINTING
SOCIAL, LOCAL,
MOBILE
BUILDING BLOCKS OF THE
DIGITAL REVOLUTION
+ Performance
+ Ease of use
+ Safety
+ Cost
+ Flexibility
Mass market maturity
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 6
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THE FACTORY OF THE FUTURE
Integrating the value chain from raw material to customer
From isolated,
optimized cells …
...to fully integrated data &
product flows across borders
Reduced
conversion cost
Higher quality
standards
Improved
flexibility
New business
models
Integrated auto value chain
• Suppliers
• Component manufacturing
• Press, body, and paint shops
• Final assembly
• Customers
Source: BCG analysis
Safety
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 7
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EXAMPLE USE CASE
Self-driving logistics vehicles
Source: company information
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 8
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Powerful enough to ring in fourth industrial revolution
Late 18th century
Mechanization, water
& steam power
Industrial
revolution1.
Historical loom
Early 20th century
Electricity, division
of work
Ford Model T mass
production
Industrial
revolution2.
Early 1970s
IT and (rigid)
automation
Industrial
revolution3.
Automated industrial robots
in manufacturing
Today / near future
Industrial
revolution4.
Connection between
physical and digital systems
Digitally integrated
value chain
Source: BCG analysis
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 9
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What makes Industry 4.0 so disruptive?
Strong interest
New revenues
Massive impact
Now is the time
Global 'equalizer'
50%
25%
Process
industries
40%
Press shop
Automotive
Component mfg.
30%
25%
Final assembly
25%
40%Engineered
products
Paint shop
50%
Body shop
Impact on conversion cost
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 10
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What makes Industry 4.0 so disruptive?
Strong interest
New revenues
Now is the time
Massive impact
Global 'equalizer'
More sensor data than ever –
in real time
Algorithms to make sense of
all that data
Simple, affordable hardware to
link algorithms
back to reality
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 11
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What makes Industry 4.0 so disruptive?
Strong interest
Massive impact
New revenues
Now is the time
Global 'equalizer'
Besides cost, flexibility,
quality, and safety …
… opportunity to expand
business from selling 'only'
products to selling services
From selling
tractors to selling
end-2-end yield
optimization
services
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 12
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What makes Industry 4.0 so disruptive?
Strong interest
Massive impact
Global 'equalizer'
Now is the time
New revenues
Mature economies now can
compete on cost …
Developing economies now
can compete on quality …
???Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 13
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What makes Industry 4.0 so disruptive?
Global 'equalizer'
Massive impact
Strong interest
Now is the time
New revenues
Govts. eagerly seeking ways
to support companies
E.g.
Companies developing first
Industry 4.0 concepts …
47% of
auto players
with first I4.0
concepts
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 14
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CONTEXT – what is it & what makes it so disruptive?
ROADMAP – what does it take to get it done?
ENABLERS – what are key success factors?
Agenda
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 15
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FROM POSSIBILITY TO REALITY …
Despite high ambitions, industry struggles to build momentum
750
BCG wanted to find out why, and to
make it real, we've asked …
… production managers from leading
industrial companies in three sectors:
• Automotive
• Engineered products
• Process industries
85%We can benefit
from Industry 4.0
74%Plans to implement
in next 5 years
25%Achieved related
targets last year
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 16
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Transforming into the Factory of the Future really means the
combination of changes along three dimensions
PLANT STRUCTURE PLANT DIGITIZATION PLANT PROCESSES
Today
43%
2030
86%
Today 2030
70%13%
Today
70%
2030
97%
Important? Important? Important?
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 17
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PLANT STRUCTURE
Three key themes for the future plant structure
Multi-directional
plant layout
Products placed on
driverless transport
systems coordinated
autonomously
AUDI R8,
Heilbronn, Germany
80%Modular
production lines
Inter-changeable line
modules, configurable
machinery that is multi
purpose and simple
Toyota factories,
Mexico and China
92%Sustainable
production
Focus on energy and
material efficiency,
e.g., lighting, cooling,
production processes
Webasto factory,
Arad, Romania
85%
Source: BCG (BCG Perspectives: The Factory of the Future)
% "Important by 2030"
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 18
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PLANT DIGITIZATION
Seven dominant technologies for I4.0 use cases
By now, it is
use cases that
matter, not the
underlying digital
technologies
Big data &
analytics
Decentralized
production steering
Smart / flexible
robots
Collaborative
robots
Additive
manufacturing
Augmented
reality
Production
simulation
85%
80%
72%
85%
72%
65%
81%
Source: BCG (BCG Perspectives: The Factory of the Future)
% "Important by 2030"
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 19
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PLANT DIGITIZATION
Seven dominant technologies for I4.0 use cases
By now, it is
use cases that
matter, not the
underlying digital
technologies
Big data &
analytics
Decentralized
production steering
Smart / flexible
robots
Collaborative
robots
Additive
manufacturing
Augmented
reality
Production
simulation
85%
80%
72%
85%
72%
65%
81%
Changan Ford
18 sec change
over for welding
of six models
Volkswagen
support screw
tightening in
difficult places
BMW
10,000 parts
for Rolls Royce
Phantom
Volkswagen
3D glasses to
facilitate logistics
(order picking)
Faurecia
test changes to
material flow to
evaluate options
Mercedes Benz
test 600 cylinder
head production
quality drivers
Bosch
tools understand
location / context,
adjust actions
Source: BCG (BCG Perspectives: The Factory of the Future)
% "Important by 2030"
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 20
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Continuous
improvement
Customer
centricity
PLANT PROCESSES
Lean production lifted to the next level through I4.0
Lean production principles … … lifted to next level through digital
• Better understanding of customer
needs through big data
• Higher degree of customization
enabled by integrated value chain
• Substantially more data due to vast
number of connected sensors
• Advanced analytics algorithms to
identify optimization potential
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 21
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Continuous
improvement
Customer
centricity
PLANT PROCESSES
Lean production lifted to the next level through I4.0
Lean production principles … … lifted to next level through digital
• Better understanding of customer
needs through big data
• Higher degree of customization
enabled by integrated value chain
• Substantially more data due to vast
number of connected sensors
• Advanced analytics algorithms to
identify optimization potential
Daimler
Aims to allow customers to make last
minute modifications, e.g., changes to
color while on the way into paint shop
Bosch
Builds continuous improvement
functionality right into its production
machinery for fuel injectors
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 22
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CONTEXT – what is it & what makes it so disruptive?
ROADMAP – what does it take to get it done?
ENABLERS – what are key success factors?
Agenda
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 23
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What do practitioners think are the key challenges to
overcome in order to put I4.0 in place by 2030?
Strategy &
leadership
Employee
skills
Safe and
ubiquitous IT
infrastructure
35%
38%
40%
"Major challenge by 2030?"
Industry 4.0 affects the
whole organization, not
just the technology dept.
At the highest level:
from routine jobs to
flexible judgement
The technologies are there,
the implementation not yet,
and safety is a major concern
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 24
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STRATEGY & LEADERSHIP
I4.0 needs to be part of the overall business strategy
Clear vision
+
Clear strategy,
anchored in overall
business strategy
+
Commonly under-
stood roadmap
Strategy & roadmap
Org structure
+
Clear roles and
responsibilities
+
Change mgmt.
process to control
implementation
Org / governance
More 'advisory'
leadership
+
More team focused
leadership
Less 'authoritarian'
style directions
Leadership style
~33% ~33% ~40%
… say this will be a major challenge by 2030Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 25
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EMPLOYEE SKILLS
It's (not just) about IT / programming skills
38
61 5574
6584 79 73
95 90 88
55
98 98 93 90
+17
IT
skills
Electronic
skills
Mecha-
tronical
skills
+33+57
-19
Learning
capacity
Problem
solving
Mechanical
skills
Teamwork Taking
respon-
sibility
+14+33+29 +14
Technical competencies Social competencies
Important today vs. 2030? Important today vs. 2030 ?
Source: BCG (BCG Perspectives: The Factory of the Future)
x Percentage points
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 26
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EMPLOYEE SKILLS
Shift from routine jobs to jobs requiring flexible judgement
Today
I4.0
Key
activities
Existing jobs New jobs
Robot coordinators
• Oversee several robots in production
• Carry out routine and emergency maintenance
• Mitigate production downtime by introducing alternative robots in case of robot failure
• Transfer WIP products into and monitor 1 machine
• Check WIP products quality• Clean and conduct physical
checks of machine• Perform SOP activities
Machine operators
• Transfer WIP products into and monitor multiple machines
• Run QC queries on system• Resolve downtime after
automated diagnosis (via AR or remote instructions)
Data scientists
• Perform simple data extraction and analysis (using Excel)
• Conduct manual analysis typically from silo sourcesof data
• Run big data analysis collating unstructured real-time data from multiple sources
• Identify patterns such asbottlenecks and make actionable recommendations
• N/A
Source: BCG Analysis
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 27
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What type of training will be important?
EMPLOYEE SKILLS
How do manufacturers aim to answer these skill challenges?
Reeducation 18%
Recruiting 29%
Training 53%
"How to overcome skill gap?"
83 80 663927 32
Immersive
training
E-learningLearning
by doing
-7
Traditional
training
+56 +66+59
Do you expect net / net to hire or fire?
50
32
28
25
25
12
-17
-17
-29
-12
-12
-12
Supply chain
Prod. planning
Logistics
Quality control
Maintenance
IT
(%)
(%)
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 28
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IT INFRASTRUCTURE
Two topics dominate practitioners' concerns
I4.0 requires plant-wide
connectivity & data storage
Issues today: lack of
network standards + poor
network infrastructure
Data is poised to become
evermore valuable under I4.0
Concerns today: general
data security + uncertainty
about ownership of data
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 29
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ROADMAP
What production managers expect …
Decentralized steering
Additive mfg.
Overall
Modular production line
Multidirectional layout
Smart robots
Collaborative robots
Sustainable production
Big data & analytics
Augmented reality
Production simulation
Plant
structure
Plant
digitization
Plant
processes
Short term
2016-2020
Medium term
2020-2025
Long term
2025-2030
Implementation
Preparation / pilots
Cont. improvement
Source: BCG (BCG Perspectives: The Factory of the Future)
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 30
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ACCELERATING THE START
BCG proposes to start with a holistic I4.0 health check …
Source: BCG
PROJECT EXAMPLE
Comprehensive I4.0 health check at plant level
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 31
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Self-organizing production
Line automatically coordinates and
optimizes utilization asset-by-asset
Predictive maintenance
Remote monitoring via sensors allows
for repair prior to breakdown
ACCELERATING THE START
… followed by selecting from already proven use cases
Industrial internet
New product line simulation
Novel software allows for virtual
assembly line simulation & optimization
Simulation
Self-driving logistics vehicles
Fully automated transportation systems
navigate smartly within the factory
Autonomous robots
Big Data-driven quality control
Algorithms reduce product failures by
correlating outcome to quality data
Big Data and analytics
Smart supply network
Monitoring of entire supply network
allows for better supply decisions
Software integration
Source: BCG
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 32
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Please reach out in case you have any questions, comments,
or would like to discuss the topic further
Thank you!Benjamin Fingerle
Principal, Bangkok
Industrial Goods & I4.0
TMA - Roadmap to Industry 4.0 - presentation - vFF.pptx 33
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