digital disruption across tomorrow's manufacturing supply chains

Mark Morley, Industry Marketing Director

Digital Disruption Across Tomorrow’s

Manufacturing Supply Chains

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Manufacturing 2.0, Rebooting Today’s

Global Supply Chains…

Global recession, wage strikes, natural disasters and increased

regulatory compliance are leading to manufacturers having to

restructure their global supply chains


Today’s Manufacturing Industry

North America, UK, Germany, China and Japan lead

global figures for production output

Manufacturers continue to globalize production facilities

and de-centralize design and engineering departments

Automotive and high tech industries are increasingly

consumer-driven

New technologies such as the Internet of Things will drive

the ‘4th industrial revolution’


Today’s Manufacturing Value Chain Distributed Operations in Multiple Countries

Near-Shoring

2010 Onwards

China Globalization

2014 Onwards

Regional Marketing & Sales

Manufacturing

Distribution

Sales

ManufacturingR&D

Manufacturing

Shared Services

Sales Distribution

Global HQ

Sales Shared

Services

Sales

‘BRIC’ Markets Expansion

2000 Onwards(BRIC = Brazil, Russia, India, China)

‘MINT’ Markets Expansion

2014 Onwards(MINT = Mexico, Indonesia, Nigeria, Turkey)

Evolution of the Digital

Manufacturing Business


Traditional Manufacturing Value Chain

Information resided in multiple departmental silos

Difficult to find and navigate through information

relating to a particular product

Lack of inter-departmental information exchange and

collaboration

Business expansion led to information replication and

multiple instances of key business systems such as

ERP

Product design department traditionally led adoption

of new IT technologies

Product Design & Engineering

Manufacturing

Supply Chain Management

Marketing, Sales & Service

Traditional Value

Chain

Source: Cap Gemini Consulting Analysis


Le

ve

l o

f D

igit

al P

erv

as

ive

ne

ss

High

Low

DesignProduction

DesignProductionPurchasing

Marketing

DesignProduction

Purchasing

Field SupportLogistics

Marketing


Sales

Field SupportLogistics

Marketing


1970 1980 1990 2000 2010 2020

Evolution of the Digital

Manufacturing BusinessIncreased digitization of information over the decades has allowed more departments across the extended enterprise to access & utilize this information

Design & Production Automation

Computer Aided Design & Manufacture

Collaborative PLM & Cloud Connected Digital Business

Electronic Product Definition

Digital Mockups & Collaborative Design


Digital Information Powers the

Integrated Value Chain

The Integrated Value Chain relies on digital

information to automate and accelerate

internal operations

A centralized digital information hub:

Drives product innovation

Improves production efficiencies

Provides global agility

Increases customer satisfaction

Source: Cap Gemini Consulting Analysis

“Digital Transformation is not a quick-fix solution within rigid manufacturing processes and resources, but a long-term commitment and imperative”

Digital Product

Design

Digital Shop

Floor

Digital

Customization

Digital

Supply Chain


Enterprise Information Management (EIM)

Enterprise Information Management is the set of technologies and

practices that maximize the value of information while minimizing its risks

Enterprise

Content

Management

Information

Exchange

Business

Process

Management

DiscoveryCustomer

Experience

Management

Actuate Analytics


How EIM Supports the Product Lifecycle

Market / Customer Requirements

A

Product Design & Engineering

B

PrototypeTesting & Compliance

C

Supply Chain Management

D

Manufacturing Engineering

E

ProductProduction

F

ProductQA & Certification

G

Plant Maintenance & Asset Management

H

Logistics & Distribution

I

Dealer/Distributor Engagement

J

Aftermarket Service & Support

K

Recalls & Warranty Repairs

L

Enterprise Content Management Customer Experience Management Business Process Management Information Exchange Discovery AppworksActuate Analytics


Managing Digital Information –Product Design & Engineering

All design information should be centrally

archived

Information needs to be exchanged securely

with other users

Increasing legislation requires full traceability of

design information

Field service teams need remote access to

product information

Compliments rather than replaces an existing

PLM solution

• 3D CAD/CAM Models• 3D Printing Files• 3D Visualization Models• 2D Drawings• Production Information• Product Bill of Materials• Stress Analysis Test Reports• Environmental Test Reports• Materials Testing Reports• Materials Specifications• Product Specifications• Videos/Animations/Renderings


Managing Digital Information –Supply Chain Management

Management of supplier information & archival of

procurement contracts

Trading partners on-boarded and managed on an

ongoing basis

Requirement to integrate to enterprise systems

such as ERP

Increasing requirement to adhere to regional

regulatory compliance laws

Requirement for end to end visibility of all supply

chain transactions

• Supplier Contract Information• Supplier Contact Information• Protocol/Document Mediation• B2B Connectivity Testing• B2B Document Mapping• Implementing Appropriate B2B

Software/Web Portal Solutions• Backend Systems Integration• Adhere to GRC Initiatives, e.g Electronic

Invoicing• Community Management• 24/7 Helpdesk Support


Managing Digital Information –Plant / Asset Management

All production related equipment needs to be

proactively maintained

Need to minimize plant downtime to avoid

production stoppages

Maintenance teams need remote access to all

plant related information

Sub-contractors & plant suppliers need to be

managed effectively

Employee health & safety / regulatory

information needs to be archived

• Maintenance & Test Procedures• Equipment Monitoring• Assembly & Disassembly Videos• 3D Plant Design Models• 3D CAD Equipment Animations• 2D Equipment Drawings• 2D Utilities Diagrams• Equipment Test Procedures• Equipment Test Certificates• Sub-contractor Information• Regulatory & Compliance Info.


Managing Digital Information –Dealer / Distributor Engagement

OEMs need a centralized approach to how they

manage all digital assets

Digital assets need to be transferred securely

between all users

Customer experience must be consistent across

all platforms

OEM’s HQ needs to connect to a diverse range

of business systems

Dealers and distributors need access to low cost

& simple to use platforms

• Product Brochures• Promotional Videos & Adverts• High Resolution Images• 3D Computer Graphic Animations• Product Training Videos• Technical Bulletins• Advertising Agency Collaboration• In Store Graphics/Designs/Layouts• Website Design & Management• Mobile Platforms & Social Media • Online Product Catalogues• Online Product Configurators


Managing Digital Information –Aftermarket Service & Support

Field service engineers need access to all

digital product information

Product information must be accessible through

mobile devices

Replacement parts may need to be ordered

remotely from a supplier

Archival of all certifications & test reports for the

entire life of product

Equipment performance needs to be proactively

monitored & acted upon

• Repair & Test Procedures• Assembly & Disassembly Videos• 3D Visualization Models• 2D Product Drawings• Product Specifications• Warranty & Recall Procedures• Regulatory & Compliance Info.• Product Test Certificates• Fault Diagnosis Routines• Spare Parts Ordering Portals• Technical Service Bulletins

The Future of the Digital

Manufacturing Business


How will Information Technology Impact Your

Company in the Year 2020?


The Digital Age

Information drives innovation

and growth

Information leads to greater insight,

higher customer satisfaction, accelerates

time to market, helps to open new

opportunities, and enables you to remain

competitive

Information is a key strategycomponent for every organization


Gartner Technology Trends - 2015

By 2018, the total cost of

ownership for business

operations will be reduced by

30 percent through the

adoption of smart machines

and industrialized services.....

Gartner, October 2014

1. Computing Everywhere

2. The Internet of Things (IoT)

3. 3D Printing

4. Advanced, Pervasive, Invisible Analytics

5. Context Rich Systems

6. Smart Machines

7. Cloud/Client Architecture

8. Software Defined Infrastructure

9. Web Scale IT

10. Risk Based Security & Self Protection


Cloud Deployments in Manufacturing

Simplifies the deployment and management of global IT infrastructures

Allows manufacturers to quickly scale up or scale down production

Design information is now accessible by anyone across the enterprise

ERP B2B PLM


D

I

G

I

T

A

L

D I S R U P T I O N

Today’s Manufacturing Operations are

Entering a Period of Significant…..

New Sources of Unstructured Information Will Need Managing Across the Enterprise

4G Networks

Cloud

B

Y

O

C

Internet of Things

W

I

F

IPaaS

5G Networks

Smart Grids

Mesh Networks

Big Data

Social Networks

Remote Monitoring

Analytics

Mobile Apps

NFC Payments

SAAS

S

E

C

U

R

I

T

Y T

E

L

E

M

A

T

I

C

S

Sensors

RFID

Smart Phones

Tablets

B

Y

O

D

Connected Devices

3D PrintingDrones

Wearable DevicesMass Storage

M2M

Robots


Tomorrow’s Supply Chains Will be Impacted

by a Nexus of Disruptive Technologies

Wearable

Devices

Devices, such as Google Glass, will

transform how digital information

is accessed & shared across the

enterprise allowing

3D

Printing

3D Printers will manufacture parts

on demand and contribute

towards the introduction of the

‘zero length’ supply chains

Drone

Logistics

Drone aircraft will transform the

delivery of parts/finished

goods to customers across short

distance logistics networks

Future EIM platforms will need to embrace these technologies….

Internet

of Things

Introduction of more connected IoT devices /equipment

will allow manufacturers to

develop more responsive supply

chain networks

Advanced

Robotics

Next generation advanced robotics will work side by side with human

operatives, helping to automate more

production processes

1. Wearable Devices


Wearable devices are set to revolutionize how employees

interact with their work environments

Many manual-focused jobs require hands to be free at all times

Google Glass for example was originally conceived to bring

data-rich information to the user in real-time

Wearable Devices


Wearable Devices – Warehouse Picking

OK Glass,Trace ShipmentLocate Part in WarehouseScan BarcodeContact 3PL Provider

2. 3D Printing


3D Printing

Technology entering the enterprise and general consumer

markets

Products can be made using a variety of materials including metal

Likely to revolutionize production, as machine costs come down

HP enters market as an extension of their printer business


Technology is not new, been around for over twenty years,

formerly rapid prototyping, stereolithography

Limited production area, restricts type of products that can be

made

Relies on having a 3D representation of a product, either as a

CAD model or a 3D scan based representation

3D Printing


HP Sprout PC & 3D Printer – 29th October 2014


HP, a Leader in Multi-Colour 3D Printing


Amazon 3D Printing Trucks


Bentley EXP10 Speed 6 – Geneva Motorshow


Most Ambitious 3D Printing Project?


Introduction of Zero Length Supply Chains?

Original OEM Part

3D Printed Part

3D printing could potentially revolutionize the service sector

Certain replacement parts could be printed instantly at a

service location

Combined with IoT, parts could be manufactured before

existing parts experience wear or stress failure

3. Advanced Robotics


Advanced Robotics

Google acquired 8 robotics companies in 2013, looking to

develop Android-based robotics operating system

One goal of robotics division is to help high tech companies

automate manual-based assembly processes

Contract manufacturer Foxconn seen as perfect test

environment, however will Google robots be assembling

iPhones?


Foxconn Automation, Goal = 1M ‘Foxbots’


Foxconn Automation, the Reality


Say Hello to ‘Baxter’

4. Drone Based Logistics


Amazon Prime AIR

Amazon hopes to eventually offer a 30 minute delivery

service via fleet of drones

However in the US the FAA recently introduced a new

regulation which says that drones must be inline of sight of

their controller

Amazon likely to acquire drone manufacturing companies,

will then own part of their logistics network


The Future of Expedited Shipments?


Rolls-Royce Drone Ships?

5. Internet of Things


The Internet of Things -What Exactly is it?

Internet of Things (IoT)

Internet of Everything (Cisco)

Industrial Internet (GE Software)

Industry 4.0 (Bosch)

Machine to Machine (M2M) Connectivity Across the Internet

“Any machine or device connected (via fixed wire or wireless communication) to the internet &

being able to transmit information in one form or another”

IDC - 200Billion connected devices by 2020

Cisco - Estimates market size at $14.4Trillion


Digital Information is now Feeding the

Fourth Industrial Revolution

Industrie 4.0

Source: Bosch


Core IoT Building Blocks

Sensors

Dedicated

Processor

Internet /

Dedicated Network

Big Data

Storage

Analytics &

Reporting

Key Characteristics = Energy Efficient + Cost Effective+ Quality & Reliable + Secure

WiFi or 4G

Comms

Devices /

‘Things’


Home Automation

Nest provides an internet-enabled range of devices for home automation applications, this example shows a thermostat


Home Automation Communications

LG has developed a home hub to allow consumers to send text messages to remotely control household appliances


Connected Vehicles

Tesla Motors offers one of the most advanced connected cars on the market today, the Model S sedan


Remote e-Health Monitoring

E-Health is expected to be a major beneficiary of IoT based devices, for example this e-Pill has a built-in high definition video camera


IoT Related ROI

Source: Cisco


How Will IoT Impact Global Supply Chains?

Exponential growth in data flow across future supply chains

IoT will impact future supply chains in many different ways:

Predictive

Maintenance

Self diagnostics identify

failing components

resulting in automated

parts ordering

Pervasive

Visibility

End-to-end visibility of

shipments from point of

manufacture to point of

delivery

Proactive

Replenishment

Optimization and

automated ordering of

inventory at the ultimate

point of sale


IoT Example 1 –

Pervasive Visibility

Business Case - Visibility of shipment

tracking at every stage from the point of

manufacture to the point of delivery

Example - Bosch developing a software-

based, virtual supply chain. This is based

on inputs from an extended network of

RFID readers at both their factories and

their global logistics providers. Provides

more accurate tracking of all shipments.


IoT Example 2 –

Proactive Replenishment

Business Case - Optimization of inventory

levels at the ultimate point of sale

Example - SAP HANA based vending

machine. Automatically places orders for

new stock before they run out. Learns

profile of regular users and is able to both

predict purchases, make alternative

suggestions based on previous buying

trends & learns consumption patterns.


IoT Example 3 –

Predictive Maintenance

Business Case - Self diagnostics can

identify failing components resulting in

automated parts order

Example - RAC automotive association in

the UK offers a retrofit module that can help

identify problems with a car before they get

too serious. Could be extended to

automatically order replacement parts and

book service at local service center.


EDIFACT

XMLSWIFT

OFTP2

IDOCANSIAS3

Contract Mfg.

DistributorsCustomers 3PLs

Banks

Insurers

AS2

FTP

HTTPSSuppliers

B2B

HULFT

IDOCS

External Trading Partner Community

Managing Information Across Tomorrow’s

Digital Manufacturing Business

ERPPLM

Internal Enterprise Community

Procurement Production

Design

Marketing Sales

Service

HQ

EIM

Business Process ManagementCustomer Experience ManagementEnterprise Content Management Discovery Actuate AnalyticsInformation Exchange


‘Facebook for Machines’In the Future Every Connected Device Could Have an Online Profile

Conclusions


Manufacturing 2020

Enterprise Information Management helps to embrace digital

disruption in order to Simplify, Transform and Accelerate

tomorrow’s Digital Manufacturing Business

Continued globalization will fuel the need for a simplified & centralized digital

information hub

Technology being introduced today is going to transform tomorrow’s

manufacturing operations

The Internet of Things will improve visibility across supply chains, accelerating

business decisions and allowing companies to be more responsive to

customers

Thank You

Mark Morley

Email: [email protected]

Twitter: @markmorley

About Me: about.me/MarkMorley


Where to find Presentation Slides

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