Will Stirling December 2014

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Big trends in manufacturing and industry –

2015 and beyond

5 big trends in manufacturing and industry

This is not an exclusive list!

1. Servitisation and Product Service Systems

2. Mass personalisation

3. Automation and Next generation machines

4. Industrial Internet of Things

5. Industrial Sustainability

6. Also: Collaboration and Networks

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ServitisationThe future is all about the service

Products are so good, what is thedifferentiator?

Product Service SystemsIncluding:

Availability contracts

Total care – engines, railsystems

Street Car model: Pay-as-you-go personal transportation

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Power by the hour. Airlines and MoD now buy flight hours notengines

Through-life Engineering

One of 16 EPSRC Centres for InnovativeManufacturing

Cranfield and Durham universities

All about WHOLE LIFE COST.

The purpose is:

To enable UK plc to deliver high valueproducts with outstandingavailability, predictability andreliability at the optimum whole-lifecost.

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Bombardier and Siemens are members of the EPSRCThrough-life Engineering Centre

Six core projects and areas of TES

No fault found

Degradation of components

Systems design

Self-healing systems

Autonomous maintenance

Deterioration of linear machines

IS THIS RELEVANT TO SMALL COMPANIES?

Smaller companies are joining the CIM,inc Intelligent Energy, CopernicusTechnologies

But company needs to make a complexassembly

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Mass personalisation

The 5th stage in the evolution of manufacturing

Bentley – any colour you like

More consumer goods: Essilor

French spectacle lenses company

2010: 320 millions lenses. Roughly 100m wereunique.

2-stage manufacturing process, 1. making “blanks”

in 14 mass production plants

Blanks customised using machine-based cutting +coatings

Essilor has 20k computers globally: convertprescriptions to a production schedule

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Mass personalisation – Commodity goods

Example: Makie Doll

Design your own doll: skin, hair,shape, clothes and accessories

£69.00 – dearer than mass marketbut not inaccessible

Part of mymakie.com – makeseveral products to your owndesign. A ‘maker movement’ = theage of the garage manufacturer.Arduino boards, Maker Bot 3Dprinters.

WHAT NEXT?

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Automation and next gen machines

Automation: Paradigm shift or hype?

The Argument: If factories do not automatethey will die

UK factories should invest more: BARA saysUK is 17th in a global league table forindustrial robots installed

Intelligent Automation

EPSRC Centre for Intelligent Automation –Prof Steve Jackson, LoughboroughUniversity

Factory of the Future – see next section

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The Human / Machine interface

Increasing studies of how people will workalongside machines in future factories

Companies inc AIRBUS, Aero EngineControls, Rolls-Royce = need for speed

Research projects include:

Capture human skill: to derive whichoperations, in aircraft assembly forexample, are best automated

The Business Case for Automation: to producedecision making tools that will enable companiesof different sizes to identify the individual cost-benefit of introducing new automation.

Next gen machines: Hybrid Manufacturing ©Stirling

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2014

Industrial Internet of Things

Total communication between devices – personal, business, orders, mfg operations

Any device can be connected. Most quoted figures range between 20 billion and 50 billion(Sources: Cisco, Ericsson). Siemens says 26bn objects will be linked via the internet by 2020.

Real Application: Remote factory operation and management. Energy management. Customer-to-factory data processing.

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Evolution of RFID to Internet ofThings (IoT)

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• RFID = Radio frequency identification,use of electromagnetic fields to transferdata.

• Now embedded in everything:palletised freight, Oyster cards,contactless payment, Point of salesdevices, phones.

• With greater RFID adoption, the no. offunctions has increased, from:

• Simple item-numbering scheme ->Integrate RFID info into businessworkflows -> to:Develop device intelligence and self-organization

The smart factory

The Factory of the Future = buzzword but with meaning behind it

Industry 4.0: part of High Tech Strategy 2020 - Federal Governmentof Germany set aside budget of EU8.4bn from 2012-2015 toimplement the plan.

What does it mean? Bottling line >> each bottle or short batch canbe customised to an order – different fluids, labels and caps.

UK examples: AkzoNobel, the coatings company. Built factory inAshington with features of “Industry 3.8”.

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Industrial Sustainability

Quite simply, how will we manufacture stuff when the resources runout? Should we wait until they do?

Ref. The Foresight Report (Govt Science Office) and EPSRC Centre for InnovativeManufacturing in Industrial Sustainability. Three main focuses:

1. Eco-products 2. Eco-factories 3. Eco-industrial system = complete redesign of industry for sustainability

Example: Shwopping, pioneered by Marks & Spencer. Don’t keep clothes,recycle.

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More SustainableProfessor Steve Evans, University of Cambridge

Share of manufacturing exports in manufacturing outputForesight Future of Manufacturing Project: 30th October 2013

#FoMn #manufacturing

• Potential volatility of supply / price of resources

• Climate change affecting vulnerable supply chains

• Greater use of regulation ‘pricing the environment’

• Consumer pull for eco-products

• Robust products for ‘collaborative consumption’

• Emergence of a circular economy in which products arereused, remanufactured and recycled

Collaboration and Networks

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• Proliferation of organisations to support manufacturing since 2008/2009(financial crisis).

• How effective is this ecosystem?The Dept for BIS, Innovate UK, UK Trade & Investment, The EPSRC, other ResearchCouncils and university research.Trade and Membership organisations: CBI, EEF, IMechE, IET, FDF, ADS, CIA, FSB, MAS, TheManufacturing Institute, Institute for Manufacturing (!), The Mfg Alliance, Made in theMidlands, The Manufacturing Cooperative, WMG SME etc etc.

The Manufacturing Cooperative

A bit different? Run by the Operations Excellence Institute at Cranfield

University

Cooperative has account with Anglia Farmers Unity (bulk)

Companies in a co-operative can get cheaper prices for:

- Energy procurement

- Raw materials

- Insurance and other services

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THE MANUFACTURINGCO-OPERATIVEWorking together for supply chain innovation

Developing a British Mittelstand: Conference in Manchester,January 28

Best Practice Study Tour to four German manufacturingcompanies, February 4-5

Any questions?

Stirling Media Projects

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2014