industry 4.0 (i4.0) digital transformation: challenge and...

Industry 4.0 (I4.0)Digital Transformation:

Challenge and Opportunity

J Acosta H Gutierrez

31 October 2019

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Our message:

Industry 4.0 is here. It is unavoidable. We need to get on this wave or

Mexico will loose it’s competitive edge

We have talent in Mexico that can guide us on the Digital Transformation

journey. We should not be affraid of this and take the risk…We need to

increase our knowledge internal to our business, we also can connect and

take advantage of our Mexican Universities

Industry - National and Global - should define their strategy to make this

transformation. This has to be connected to their business priorities

2Source: Sdeon

Agenda

• Global Industry in Mexico: IMMEX (Evolution)

• New challenge: Industry 4.0

• The future of Jobs

• Lean traditional vs Lean intelligent (Digital)

• Industry 4.0 : Steps for Digital Transformation

• New mindset required (Culture)

• Conclusion

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• Global Industry in México - IMMEX

Maquiladora Industry initiated as a result of the conclusión

of the Bracero program in United States, it was defined part

of the Programa Nacional Fronterizo, with the objective to

offer permanent Jobs to the returning mexican citizens from

Northamerica who worked in the agriculture fields.

Maquiladora Industry started in Cd. Juárez in 1965 and

currently México accounts for close to 3.0M IMMEX Jobs.

The benefits for the Cities, States and México are notable

and unparalleled ….

1970s Basic assembly

operations

1980s Middle

complexity processes

1990s

Process and productdesign

2000s

Semi-automatic processes ,

básicrobotics

I4.0

Industry 4.0

4Source: Sdeon INDEX

New technologies: Introduction of disruptive technologies,

IoT, Artificial Intelligence, Industry 4.0, IIoT,

3D printers, Intelligent manufacturing..….

5

Fourth Industrial Revolution (4IR): Challenge and Opportunity

“…Of the many diverse and fascinating challenges we face today, the most intense and important is how to understand

and shape the new technology revolution, which entails

nothing less than a transformation of humankind. We are at

the beginning of a revolution that is fundamentally changing

the way we live, work, and relate to one another. In its scale,

scope and complexity, what I consider to be the fourth

industrial revolution is unlike anything humankind has

experienced before…..”

Klaus Schwab

World Economic Forum

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Industry 4.0 (I4.0): Challenge and Opportunity

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The future of jobs (Source: World Economic Forum Report)

Digital Transformation

Expected gains…..

Responsive to Customer

Eliminate/Reduce human errors

Agility to respond with reduced risks

Improve decision making

Robust problem solving

Redefine business processes

Sound data analytics

Quality Productivity Cost

Enhanced Profits

8Source: Sdeon

9

Digital Transformation:

Towards an AI Strategy in Mexico …..

Governance, government and public services

1. Set a clear strategic direction

2. Appoint Emergent Technology Innovation teams

in selected Ministries

3. Government should act as a champion

4. Develop guidelines for smart AI procurement

5. Create a multi-stakeholder steering group to

develop and promote Mexico’s GovernmentStrategy on AI

6. Create a network of AI practitioners from all

sectors and disciplines - including national and

local actors - to develop a multi-sector 2030 AI

Road Map

7. Create an AI working group in Congress

8. Take a lead role in the global debate

Observations / Recommendations

Research and development

9. Create a national center for AI research

10. Strengthen connections between academia and

industry

11. Create a good environment for commercial research

and applied AI in the private sector

12. Create an AI government fund

Capacity, skills and education

13. Develop tools for continued education in AI

14. Broaden AI learning beyond computer science and

Mathematics students in public and private universities

15. Teach computational thinking approaches in schools

16. Increase the number of Masters and PhD students in

AI and data science

Data infrastructure

17. Maintain a resilient open data infrastructure

18. Create Mexican training data to inform AI applications

19. Protect personal privacy

Ethics and regulation

20. Bring data assets inside the scope of competition law

21. Create a Mexican AI Ethics Council

Sources: Towards an AI Strategy in Mexico - C Minds

Overview National AI strategies - T. Dutton

Saying is one thing…..

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Doing is another…..

Traditional Lean definition: Eliminate all forms of waste

Customer demand

System capacity Excess materials,

equipment and operators $$$

Short of equipment $$$

Quality issues $$$

Excess material and equipment

$$$

Waste: Anything other than the minimum amount of equipment, materials,

parts , space, and workers time, which are absolutely essential to add value

to the product… (Fujio Cho de Toyota)

Toyota Production System: Produce what is needed, in the quantity needed,

in the time needed with quality ….

Lean = Minimum Gap between

Customer demand and system

capacity (Quality, Volume, Cost)

Objective is quickly adjust

our system capacity to match

Customer demand…


Short of materials, and equipment $$$

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Short of Material

$$$

Source: Toyota Production System


Lean Intelligent: The digital solution….

12Source: Sdeon and Mechatronics Automation


Result: Digital platform


Process live information

Stable processes

Certified and trained operators

Product traceability

Supply chain connected

Machine embedded ERP

Artificial Intelligence

IIoT

Data base analytics

Traceability

Digital Transformation is the process of using digital technologies to create

new or modify existing business processes and culture to meet Customers

requirements. To remain competitive in current dynamic business and market

conditions, corporations need to assess and rethink the use of technologies

connecting to Customers and thoroughly transform their manufacturing

environment.

This fundamentally change how you operate and add value to your Customer

Making the most of digital transformation


2. What, Where, How, Why

3. External or Internal resource

1. What is your business problem?

4. Steps, Funds, Resources, Timeline

Design your Transformation strategy

Assess current condition

Create a Vision

Develop knowledge on Intelligent Technologies

14Source: Sdeon

Artificial Intelligence, ERP’s embeded machinery, IIoT, Traceability, Technologybased applications, Data analytics, Engineering emotions, etc.

2. Process stabilization RRR

Repeatable, Reproducible, Replicable (Standardized work)

3. Process Improvement (Priority based on business)

Information – Material Flow, Quality, Delivery, Connections, Capabilities (All cost associated with business)

1. System Diagnosis (Health Check)

Assess current system conditions to define priorities to address

4. Implement intelligent technologies (Priority based on business)


Recommended Transformation Steps


• Top Leader must be convinced on the need of this change

• ¿What is your business problem?

• What do you need to compete?

• Understanding your Strenghts, Weaknesses, Opportunities and Treats (SWOT)

• Whole system diagnosis to determine priorities to work

• Area by área, machine by machine….the whole system

• Implement actions based on business priorities

• Communicate all employees the change and why

• Develop talent with this knowledge in the organization

• Restructure where required

• Students are great resource to use

• Keep your customers informed about the process

Digital Transformation: New mindset

16Source: Sdeon

Conclusion:

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Héctor Gutiérrez30 + years experience in Manufacturing

Background:

• Leadership

• Business diagnosis

• Operating Systems definition

• Manufacturing Systems improvements

(Holistic approach)

Javier AcostaCEO Mechatronics 18+ years experience

in systems automation

Background:

• Artificial Intelligence (AI)

• Intelligent Automation

• Robotic platforms

• Industrial Automation (I4.0)

[email protected]

US 915.245.5217

[email protected]

US 915.920.6463

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mailto:[email protected]

mailto:[email protected]

Thanks….

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