connected manufacturing – innovating manufacturing by ...tise and involves very few repetitive...

Special Issue on NEC Value Chain Innovation

Connected Manufacturing – Innovating Manufacturing by Integrating On-site Know-how and Digital TechnologyKITANO Yoshinao, YOSHIMURA Makihiro

1. Introduction – Operational Challenges

As the problems related to labor shortage and skills transfer become more acute, manufacturers must adapt to mass customization. At the same time, the wave of digitalization has swept across all industries, leading to intercorporate collaboration and generating a continuous stream of competitive new innovations. In this chaotic and rapidly evolving environment, the sudden emer-gence of the novel coronavirus (COVID-19) pandemic has ratcheted up the uncertainty―disrupting supply chains, restricting the movement of employees, and making future planning more difficult than ever. In the society with the “new normal,” new challenges are being thrown up all the time. The manufacturing industry, in particular, is facing serious challenges such as the need to reconfigure factories to adapt to changing workstyle expectations, review supply chains to optimize reliabil-ity, and adapt to rapid fluctuations in product demand, not to mention the necessity of continuing to address more conventional issues such as quality, cost, and de-livery (QCD) (Fig. 1).

NEC’s Connected Manufacturing concept brings inno-

vation to the manufacturing industry by integrating cy-berspace and the physical world.

This paper discusses the concept of Connected Man-ufacturing as proposed by NEC with a particular focus on the smart factory―a key component of Connected Manufacturing. In Section 2, we describe the world we envision in which Connected Manufacturing plays a key

Challenges facing the contemporary manufacturing environment such as labor shortages, skills transfer, and mass customization are now being aggravated by the novel coronavirus (COVID-19) pandemic―which is gen-erating complex new problems including disruption of supply chains and restriction of movement of employees. NEC’s Connected Manufacturing integrates manufacturing sites and supply chains with the power of digital tech-nology and is introducing innovation that transcends the boundaries between industries. This paper introduces the smart factory concept, which is an underlying theme of Connected Manufacturing. The idea of a smart factory is to build a system that leverages a wide range of data inputs to rapidly transform a production system into one that features high productivity and superior ability to respond to fluctuations, and also an environment where people can work comfortably and enthusiastically.

smart factory, supply chain, automation/autonomization, remotization, unmanned,

AI, IoT, 5G, NEC DX Factory, NEC Industrial IoT Platform

Keywords

Abstract

Fig. 1 The changing manufacturing industry in the age of the new normal.

Quantitativeshortage of

domestic humanresources

Progress in utilization of

5G, IoT, and AI

Failureto transfer skills

andknow-how

Quantitativeshortage of

domestic humanresources

Progress in utilization of

5G, IoT, and AI

Failureto transfer skills

andknow-how

Changesin workstylesat factories Review of

supply chains

Newbusiness

opportunities

Connected Manufacturing

NEC Technical Journal／Vol.15 No.1／Special Issue on NEC Value Chain Innovation34

role, while in Section 3, we explain what the smart fac-tory is and how it can be achieved. Section 4 gets down to detail with a case study in which the smart factory concept has been applied to innovate the manufacturing process with AI and IoT. Section 5 looks at the various technologies that support smart factory businesses and solutions, and Section 6 discusses the future prospects of the smart factory.

2. Our Vision of Connected Manufacturing

The concept of Connected Manufacturing is centered on the smart factory concept and includes smartization of factory and supply chains and a product innovation concept that promotes a transition from a seller of things to a seller of experiences.

The smart factory concept aims at smartization of fac-tories by speeding up and autonomizing QCD improve-ment through utilization of digital data, by automating production lines, and by automating and remotizing operations indirectly related to manufacturing. Further-more, by automating and autonomizing entire supply chains, management can allow human operators to focus their efforts on perceptual judgments and deci-sion-making. Together, these elements can create an operational environment better able to cope with the ebb and flow of demand. And our vision goes even fur-ther. We will take advantage of digitalization to help con-sumer goods manufacturers execute to marketing and predict demand, industrial goods manufacturers to per-form quality assurance and new material development, and constructors to improve productivity of workers.

The product innovation concept uses digital data to

transform business models in service and sales areas.Connected Manufacturing cuts across the boundaries

of industries to connect various ideas, resources, and know-how and aims at the transformation of our cus-tomers’ business models, helping to innovate more rap-idly and effectively than ever (Fig 2).

3. Making the Smart Factory a Reality

NEC defines the smart factory concept as a system that uses a wide range of data inputs to achieve manu-facturing with high productivity and ability to respond to fluctuations, while also establishing a system that cre-ates an environment where people can work comfortably and with enthusiasm. Smartization of factories alone cannot achieve this concept. Achieving the smart factory requires the smartization of value chains in addition to smartization of factories (Fig. 3).

3.1 Smartization of factories

There are roughly three stages in the smartization of factories. The first stage is to use digital data to speed up and autonomize improvements in QCD. This involves using our digital technology to refine improvement cycles in order to enhance the two aspects of production uni-versally regarded as critical by manufacturers―through-put and quality control. The second stage is automation and autonomization of production lines. In other words, smartization means expanding automated operations in the area of physical operation technology (OT). To get there, we need to speed up intra-factory networks and make full use of AI, robotics, and various sensing tech-

Fig. 2 Overview of NEC Value Chain Innovation and Connected Manufacturing.

connecting people, goods, and processes, reaching across the boundaries of industry to create new value

Innovating manufacturingby integrating on-site know-how

and digital technology

Intelligent ICTto optimize the movement

of people and goods

Innovating operations and customer experience to move beyond the digital shift

Using the power of digital to make financial services accessible to all

Linking inspiring spacesto deepen bonds between people,

communities and societies


Connected Manufacturing – Innovating Manufacturing by Integrating On-site Know-how and Digital Technology

NEC Technical Journal／Vol.15 No.1／Special Issue on NEC Value Chain Innovation 35

nologies. The third stage is automation and remotization of operations indirectly related to manufacturing.

The concept of the smart factory is often applied only to operations which are directly related to manufactur-ing. In the real world, however, many back-office op-erations such as production management, production technology, and quality control exist within the factory. Typically, many of these systems are not operated in a way that can fairly be called efficient. With the labor shortage growing ever more acute and the effect of the COVID-19 pandemic precipitating the shift to telework, the remotization of back-office operations also needs to be pushed forward to make it possible to maximize effi-ciency and integration (Fig. 4).

3.2 Smartization of value chains

In addition to factories, value chains that cut across companies also need to be smartized. Again, digital data is the key, making it possible to advance, automate, and

autonomize improvement cycles while cutting through the inter-company barriers. Smartized value chains gen-erate a range of benefits, helping to realize an increase in delivery speed, reduction of inventory, and advanced traceability management. In the age of the “new nor-mal” where it is no longer possible to obtain detailed information from suppliers by speaking to them face-to-face, it is important to communicate with suppliers by utilizing these platforms.

3.3 On-site manufacturing issues

Since manufacturing sites are idiosyncratic, each has its own unique on-site issues. NEC offers various solu-tions based on improvement scenarios according to four manufacturing types―job shop type, process type, flow shop/assembly type, and project type (Fig. 5).

The job shop and process types are mostly targeted at machinery and equipment. AI is increasingly being deployed to handle quality analysis and autonomous control using AI. The collection and analysis of large amounts of data has long been a key feature of manage-ment at equipment manufacturers. However, the system as it currently operates is highly dependent on individual expertise―a vulnerability that becomes increasingly ap-parent as expert engineers retire without new engineers to replace them and the process of digitalization reaches the point where it becomes more difficult for it to sub-stitute for human expertise and provide automatic feed-back to engineers about what actions should be taken based on the results of data analysis.

The flow shop/assembly type is distinguished by a great many operations performed by humans. Expected to be effective for this type are instructions on operation procedures using audio and video to achieve labor sav-

Fig. 3 NEC’s vision of smart factories.

Fig. 4 Factory smartization.

Fig. 5 Various manufacturing issues.

Supply chain

Engineering chain

IoTData

Analysis

ActionsVisualization

A system that rapidly creates future manufacturing with high productivity and ability to respond to fluctuations by using past and present data

A system that creates an environment where people can work comfortably and with enthusiasm

SalesSupplier Customer

LogisticsProductionPurchaseDesign

ITdomain

OTdomain

Speeding up and autonomizingimprovements in QCD throughutilization of digital data

Cyberspace

Physicalworld

Automation and remotizationof operations indirectlyrelated to manufacturing

Automation and autonomouscontrol of production lines(including AGVs and robots)

(2) Smartization of value chains

(1) Smartizationinside a factory

(visualization and optimization of inventory, traceability, etc)

The need to rapidly deal with these is intensifiedby the “new normal.”

Connection

Autonomousimprovement

Remote

Automation

different types of manufacturing.

Job shop type (JS)Equipment is so old that it is difficult to acquire equipment data.

by each machine, so improving productivity of the entire production line is not possible.

Process type (PR)

Flow shop/assembly type (FL) Project type (PJ)

Pressing machine Machine tool

Welding machine

Painting equipment

Paper-based management (daily reports).Digital data is produced by manually entering reports, resulting in delays.Digitalization, visualization, and analysis are not completed.

Although equipment data is acquired and visualization accomplished, nothing notable can be achieved.

paper, postponing digitalization.Dependence on individual skills is high, making it difficult to understand operation processes and impossible to comprehend the net production lead time.

Improvem

ent scen

ario pattern

(1)Im

provemen

t scenario

pattern (2)

Related data such as personnel and objects are not linked, making it impossible to analyze defect factors.

Material

Since manufacturing sites are not uniform, each has its own unique on-site issues.NEC offers a range of solutions based on improvement scenarios tailored to

Results of human operations are managed on

Data acquisition is performed independently




ing and eradicate operational mistakes and using AI for external inspection.

Project-type products are normally commissioned for manufacture by large entities and may include satellites and large-scale generators, for example. Production of these products is highly dependent on individual exper-tise and involves very few repetitive procedures, making it difficult to use data to refine or automate production. The first step to finding solutions to issues in project type manufacturing is to visualize human operations and implementing digitalization.

One issue that comes up when pushing forward the smart factory concept is what type of organizational setup is needed to implement a smart factory project and how that project should be implemented. NEC of-fers two basic models for implementing a smart factory project that have been optimized to suit the differing circumstances of each customer. The first is a grand de-sign in which market and management issues shape the project, while the second model prioritizes effectiveness verification, implementing the project based on the se-lection of specific issues and solutions (Fig. 6).

3.4 NEC DX Factory – a future manufacturing concept that

realizes the smart factory

NEC has been promoting a future manufacturing con-cept that brings the smart factory into being with digital technology called NEC DX Factory. Embodying NEC’s commitment to IoT and AI, NEC DX Factory digitalizes all processes from design to manufacturing, shipment, and logistics, simulates them in a virtual space, then feeds them back physically to generate manufacturing innovations (Fig. 7).

We have launched the NEC DX Factory Co-creation Space at the Tamagawa Plant. At this space, which em-bodies what we have discussed above, we discuss the future of manufacturing with visitors while letting them experience our next-generation manufacturing lines. Customers from more than one hundred companies have already visited, and we are now looking at more specific manufacturing innovations.

4. Case Study: Application at NEC Platforms.

NEC Platforms Ltd., an NEC subsidiary, has deployed the NEC Industrial IoT Platform at their manufacturing plants. The system performs real-time integrated visual-ization of data related to personnel, equipment, and oth-er things, including quality and operating conditions at production lines in various NEC Platforms factories. This facilitates timely and appropriate decision making at each level of the company’s management, factory man-agers, and on-site workers. Also by leveraging NEC’s original object fingerprint authentication technology and AI technology, NEC Platforms has improved traceability and quality, leading to a 50 percent improvement of pro-ductivity at their factories (Fig. 8).Fig. 6 NEC’s visions of how to implement a smart

factory project.

Fig. 7 Overview of NEC DX Factory.Fig. 8 Effectiveness of implementation of NEC’s manu-

facturing reform measures.

productivity of the entire NEC Group (compared to FY 2014).

Manufacturing KPIvisualizationManufacturing

database

Individual identificationto acquire data at startand end of operation

Object fingerprint

Camera

Monitoring materialand information flowin production area

iBeacon

Real-timeinstruction display

ObjectfingerprintCamera

Automatic operationdetection

Logging/error detection

RAPIDmachine learning(AI)Camera

Operation recordingusing voice input

SMT Assembly Inspection Management

AutonomousimprovementNEC Industrial IoT

Implementation of IoT helped achieve 50% increase in

Themes/KPIsMarket/management issues

Linkage between EDI and MES(enhanced traceability system)

Document digitization tool

RFID (understanding results)

BOP(standardization of process recipe information)

MES + manufacturing data collection platform

Utilization of RPA(entry by AI)

Utilization of AGV and robots

Labor saving/efficiency improvement(improved productivity?)

Cost reduction

Cost accuracyimprovement

Going paper-free(electronic on-site documents)

Automating measuring/mixing processes and low added value processes

Understanding expected and actual operations

Understanding operation results

More detailed instructions on operations and follow-ups

Tracing of lots including suppliers(information linkage)

Preventing misfeedof raw materials

Preventing sudden shutdown of facilities

KPIs: Operating time, takt time, number of changeovers,

production volume per day, etc.

KPIs: Cost reduction rate, etc.(estimated/actual,comparison with previous year)

KPIs: Number of claims, frequency of misfeeding, etc.

KPIs: Sudden shutdown rate, MTTR, MTBF, etc.

AI image analysis

AI quality/facility operation analysis

AI demand forecasting

Increasing items dueto diversified needs

• Improving changeover efficiency

Example: Quality problem atcompeting company.

• Enhancingresponsiveness toISO 9999

XXXXXXXXXX

Declining workforce,aging skilled workers,etc.

Preventing productswith quality defectsfrom entering markets

Document digitization tool

RFID (understanding results)

BOP(standardization of process recipe informa

MES + manufacturing data

Utilization of RPA(entry by AI

Utilization of AGV and robots

Labor saving/efficiency improvement(improved productivity?)

Cost reduction

Cost accuracyimprovement

Going paper-free(electronic on-site documents)

Automating measuring/mixing processes and low added value processes

Understanding expected and actual operations

U d t di

KPIs: Operating time, takt time,number of changeovers,

production volume per day, etc.

KPIs: Cost reduction rate, etc.(estimated/actual,comparison with previous year)

creasing items duediversified needs

mproving changeover fficiency

clining workforce,ng skilled workers,

c.

Linkage between EDI and M(enhanced traceability syst

operation results

More detailed instructionson operations andfollow-ups

Tracing of lots includingsuppliers(information linkage)

AI image analysis

AI quality/facility operation analysis

AI demand forecasting

(1) Grand design model

(2) Effectiveness verification

model

Achieved measures Solutions(IT, big data, AI, IoT)

n•

•n

n More complex human operations• Speech recognition/human operation

navigation utilizing hearables• Image analysis of operations utilizing AI• Emotion analysis

Face recognition fraud prevention

Unpacking robotAutonomouslycontrolled AGV

Identificationinformationmanagement

Robot remote-control

Warehouse Component feeding

Processing/loading Assembly Inspection Shipment

Factory cockpitNEC IndustrialIoTPlatform•On-site operation improvement•Throughput improvement•Quality improvementQuality defect factor analysisEdgecrossutilization

Human-robot collaborationRobot introductionTotal support packageAutonomous robotics

AI Visual Inspection

Autonomously controlled AGV, more complex human operations,robot remote-control, etc. were added in February 2020.NEC Industrial IoTPlatform supports DX in the manufacturing industry. Features include storage of all data related to manufacturing and performing visualization, analysis, and measurement.

•

•




5. Technologies That Support Operations and Solutions

Centering on the NEC IoT Industrial Platform, we are deploying a wide range of solutions and applications to help solve challenges faced by our customers in the manufacturing industry on a case by case basis (Fig. 9).

These solutions have been effectively implemented at plants of NEC Platforms that undertakes the manufactur-ing of NEC products. As this case study demonstrates, NEC can perform integrated implementation of solution development and on-site utilization. This makes it pos-sible for us to offer exceptionally effective solutions that our customers in the manufacturing industry appreciate.

6. Conclusion – Future Prospects of the Smart Factory

Local 5G is a major technological innovation that will drive the further evolution of the smart factory and lead to additional breakthroughs. 5G features such as ultra-high speed, ultralow delay, and simultaneous multi-con-nectivity will accelerate the digital transformation (DX) of the manufacturing industry.

At NEC, we believe that the 5G-based factory of the future should be oriented around optimization of pro-duction lines and the way people work. Progress will be data driven and supported by automation and wireless technology, minimizing the need to significantly alter

Fig. 9 NEC DX Factory solution chart..

layouts and staffing in production lines even when there are major changes in product types and production vol-ume change.

The incredible speed and power of 5G will also support remotization and remote control of various procedures, enabling staff to manage the site from home or remote office; in other words, it will be possible to easily per-form tasks that were once stressful and physically de-manding from a comfortable environment.

These efficiencies will positively impact the labor shortage in the manufacturing industry by making it possible to work more flexibly in ways that have not existed before. We believe this is the way humans and robots should work together in the future.

While the working-age population continues to dwin-dle and restrictions imposed by the “new normal” affect the ability to work on-site, NEC aspires to utilize ad-vanced technology and data to transform factories into attractive workplaces where labor shortage is no longer a primary concern and workers can attain a sense of fulfillment. It is our hope that the information digitalized within the factory will extend beyond its four walls to the community and have a positive impact not only on man-ufacturing, but on people’s lives.

At NEC, the future is our focus and we are determined to maintain our commitment to achieving a smart facto-ry where people can work comfortably and to supporting

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MaintenanceConstructionLogisticsProcurement/production

Throughput management advisor CAPAMAX*1

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AAPFST*2/quality defectfactor analysis

Enhanced quality controlAI

FCH DXF

SOLIDWORKS3D CAD

Obbligato IFS ApplicationsIFS Applications

AAPFST*2/maintenanceparts demand forecasting

Enhanced maintenance parts management

IFS ApplicationsProduction management

FCH

DXF

AI

SalesForce.comSales support

IFS Applications

ULTRAFIX

NeoSarf/Logi

AI

FCH DXF

Process designProduct design

Process design simulator

Enhanced production preparation

DX-KAIZEN(digital kaizen approach)

AMB POP

Manufacturing data collection

IFS for MES

Manufacturing execution management

MES

SCM Performance MonitoringThroughput improvement (factory)

FCH DXF

••

•

Facility operation/qualityHuman operation navigationTraceability

Production visualization (on-site)

SCM Performance MonitoringNIA

Quality abnormalitysymptoms

AI

Human operationresult collection

Robot introduction total support packageAchievement of rapid robot introduction

Identification informationmanagement

navigation

Human operationefficiency improvement

Emotion analysis

Data collection Facility control

FCH DXF

FCH DXF

FCH DXF

FCH DXF

FCH DXF

Job Shop Type & Process Type

Simultaneous identificationof individual products

Labor saving/workload saving in product inspection

Data collection Facility control

NIA

Manufacturing data platform

AI imageanalysis of operations

FCH DXF

AI

Use caseSolution

Service

DashboardKPI visualization

DXF

AI

AI

Face recognitionfraud prevention

Security enhancement

FCH DXF

AI

Wired/wireless/5G/security

PLC, sensor, etc.· Collaboration with partners

PLC, sensor, etc.· Collaboration with partners

Inspection/in-plant logistics


Visual inspection using AI (external inspection)

FCH DXF

AI

Autonomouslycontrolled AGV DXF

AI

Human operation navigation


FCH DXF

Face recognitionfraud prevention

Security enhancement

FCH DXF

AI

Maintenance

Data linkagewith other systems

NECAA*3 Invariant analysis

Facility abnormality detectionAI


Visual inspection using AI (external inspection)

FCH DXF

AI

Autonomouslycontrolled AGV DXF

AI

NIA : NEC Industrial IoT AppsLegendFCH

DXF

: Displayed at NEC Future Creation Hub (HQ)

: Displayed at NEC DX Factory (Tamagawa Plant)

Human traffic linemonitoring service

Hearable


June 2020 ed., ver. 7.0

DXF Unpacking robotLabor saving

Sightline EDM

Facility condition visualization

Production visualization (supply chain) Demand forecastingAAPFST*2/product demand

forecasting

Sales management

BOM/production information management

BOP/production information management

Delivery planning/warehouse management

Logistics visualization

Construction management Maintenance management

Contribution to work style reformand health management

Human movementflow monitoring service

Flow Shop Type & Assembly Type

Staffing optimization

detection/alarm notification

Traceability enhancement

Data collection from facilitiesInspection/

in-plant logistics

In-plant logistics optimization

Data collection from facilities [AI] Product anomaly detection

In-plant logistics optimization Staffing optimization

EDGECROSS ORiN

*1:Capacity Maximize Program *2:NEC Advanced Analytics PlatformSolution Templates *3:NEC Advanced Analytics

Human operation

Operation omission




Authors’ Profiles

KITANO YoshinaoManagerSmart Industry Division

YOSHIMURA MakihiroSmart Industry Division

The details about this paper can be seen at the following.

Related URL:NEC Manufacturing Co-Creation Program (Japanese)https://jpn.nec.com/manufacture/monozukuri/index.html

NEC DX Factory Empowered by 5G (Japanese)https://jpn.nec.com/manufacture/monozukuri/iot_mono/event/

dxf2020.html

NEC Industrial IoThttps://www.nec.com/en/global/solutions/enterprise/iot/

our customers in their efforts to achieve their own goals through the use of our digital technology.




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Vol.15 No.1 NEC Value Chain Innovation — Shaping the Future of Organizations and Industries through Digital Transformation

Remarks for Special Issue on NEC Value Chain InnovationNEC Value Chain Innovation ― The Future Created by Digital Technology

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