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Shifting gears from Cost arbitrage to Designing and Crafting products Industry 4.0 v0.4 2015-09-23

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Page 1: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Shifting gears from Cost arbitrage to Designing and Crafting products

Industry 4.0

v0.4 2015-09-23

Page 2: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Ulrich AhleVice President Manufacturing, Retail & TransportationConsulting & Systems IntegrationAtos Germanywww.atos.net

Member of the Board ofProsSTEP iViP organizationwww.prostep.org

Page 3: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

3

My outside-in view of IndiaHurdles to innovation in India

TODAY

- Relatively young IT and related innovation industry

- Indians are usually fast learners

- People rarely tend to stay on and acquire deep specialization skills

- Are engineers coming from university ready for the industry?

- Government extremly supportive for konwledge economy and Make-in-India

90’s- Start of IT outsourcing- Main purpose: money

saving

Room for improvement

- Infrastructure has been steadily improving, but a long way from being satisfactory

- Willingness and ability to take and manage risk

- Is India ready for digital Engineering and Manufacturing?

Page 4: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Atos: Business Technology and Innovation Centers (BTIC)

Page 5: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

DigitizationSocial

Data Lake

Operational ExcellenceIndustry 4.0Big Data

AnalyticsMobility Internet of Things

Internet of Everything

Digital Natives

CloudMake to Individual

Goods as a Service

Virtual

SoftwareDisruptive

Privacy

3D PrintingContextual Location Based

Digital Transformation - all them buzzwords

Search

Page 6: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Digital Disruption will be cheaper, stronger and faster

Digital will be highly disruptive to most industries, affecting not only revenue and cost structures but also shaking up the core business and operating models

Page 7: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

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Moving from single, siloed systems and organizations to an industrial network of capabilities

… manufacturing of the future will fulfill individual customer needs by a

collaborative and agile network of capabilities

While todays production is linearly organized and optimized within the boundaries of organizational and system siloes…

PAST FUTURE

CRM

PLM

PLM

CRM

ERP

MOM

ERP

WMSMES

ERP

Are you ready?

Page 8: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

8

Customer questions & challenges

QUESTIONSTODAY

- CIO: How to combine legacy with new digital? How to secure my systems and data?

- COO: Faster throughputs, better worker support, faster decision knowledge

- CFO: How to use real-time big data to track and improve financial performance?

- Plant Manager: How to understand and react to break downs immediately?

PRODUCTIONTODAY

- High Automation (Industry 3.0)

- Efficiency improvements with traditional methods is difficult & limited

- Central rigid Planning & Control

- Limited flexible production systems

- Limited horizontal connectivity

- Workers with limited knowledge & poor decision support

INDUSTRY 4.0TODAY

- How can Industry 4.0 create Value for my Company?

- What should be my Industry 4.0 Strategy?

- Where does my Data reside and is it secure?

- How do I connect my production & people?

- Who is responsible for the operational support and can I cope with changes?

Page 9: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

9

Internet of Things - Industry 4.0Global Initiatives

430 Mio (till 2017) www.plattform-i40.de

Definitions, Guidelines, Biz Models, Interoperability and security standards

Germany > 2011 USA > 2013

Standards, Testbeds, Pilots/Branches,

Reference Architecture

www.industrialinternetconsortium.org/

From Reactive to ProactiveEuropean Community

Factories of the

Future

2 bn. R&D

Investment

Blueprints for smarter

manufacturing in Europe

China

Madein

China2025

Become a ManufacturingPowerhouse

Page 10: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

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USERCUSTOMER

SUPPLIERPARTNER

The Connected Enterprise in the Digital AgeNew business and collaboration models within the manufacturing industry

Connectivity to the outside world● Consumers providing

direct feedback to products designers

● Products providing online customer/product profile data

● Individual customized products & services

● Smart Products generating usage data

● Suppliers becoming Co-designers

● Customers designing (part of) their own products

ShopFloor

Service

SourceMake

CUSTOMERCONSUMER

Deliver

Design

Connected MachinesR&D

PARTNER

Connectivity within the Enterprise● Vertical integration● Horizontal integration

Connected Customers

Connected ProductsConnected Consumers

Connected Designers

Connected SuppliersPlan

Enable

Connected Boardroom

Page 11: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

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ProSTEP iViPThe Vision of a Seamless Information Flow

Source: ProSTEP iViP Symposium 2015 : Study Digital Manufacturing - Prof. Dr. Deuse, Dr. Riedel, Prof. Dr. Stark

e.g. Bills of materials» e.g.

Manufacturing plans» e.g.

Modificationsto the manu-facturing plan»

Nowadays the focus is no longer solely on providing manufacturing information but also on feeding the information back into the process chain»

Development ManufacturingPlanning

Page 12: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

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ProSTEP iViPSynced Factory Twins

Source: ProSTEP iViP Symposium 2015 : Study Digital Manufacturing - Prof. Dr. Deuse, Dr. Riedel, Prof. Dr. Stark

Soft

war

e in

the

Loo

p*)

Hardware in the Loop*)

Product

Process

Resource

Product

Process

Resource

Virtual Real1 32

Synced Factory Twins

Plan

Run

Build

*)percentage

Virtual validation, simulation and commissioning of virtual products with real processes and resources

Virtual validation, simulation and commissioning of virtual products with real processes and virtual resources

Virtual validation, simulation and commissioning of real products with virtual processes and real resources

1

2

3

Page 13: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

QS AV/Planung IT FertigungsleitungWerkzeugeInstandhaltungMeister

Internet of Things - Atos Industry 4.0Atos Industry 4.0 Reference Architecture

Security

Appl

icatio

nsBu

sines

s&Pr

oce

ss

Connectivity

CAx

PLM

MES ERP

Industrial Data Analytics (IDA)

Standardization

Engineering Production Logistics Sales &Services

Business Models Changed JobsSocial

DimensionDigitalized

Services

Enab

lers

BigData Cloud Mobility AR/VR

Core Communication PlatformICT Infrastructure / OT Infrastructure

Devi

ces

Sensors&Actuators PLC

Edge Computing

CPS

Tech

nolo

gyIn

tern

et o

f Thi

ngs

Devi

ce M

anag

emen

t

B2BPlatform ESN

Industry 4.0

Efficiency

Effectivness

Quality

Agility

ECM

13

Page 14: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Digital Transformation

Designing and Crafting products in India requires to

be part of the Connected Enterprise!

Are YOU ready?

Page 15: NASSCOM ENGINEERING SUMMIT 2015: Session VI: Shifting gears from Cost arbitrage to Designing and Crafting products’

Thank you▶ Ulrich Ahle

▶ e: [email protected]▶ m: +49-174-1533348