Bitter Knowledge: Socrates and Teaching by Disillusionment ...
MAN-104 Digital Transformation of Manufacturing-20171022€¦ · Value for the Customer ... Trough...
Transcript of MAN-104 Digital Transformation of Manufacturing-20171022€¦ · Value for the Customer ... Trough...
SIMON JACOBSONResearch VP
Gartner Research
Digital Transformation of Manufacturing
SIMON LAWSONManufacturing Solutions
GE Digital
CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Transformation in Manufacturing Operations
Simon Jacobson
@simonfkj
4 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
62% of organizations expect over half of their revenues to be driven by
digital business in the next two years
Source: Gartner Digital Business Impacts and the Supply Chain Study, 2017n=318
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Can You Change the Wheels on a
Moving Bus?
6 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
CostQuality
Capability
TimeTransparency
Reliability
Value for the Customer
How We View Manufacturing Has Changed
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Innovation
Trigger
Peak of Inflated
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
Ex
pe
cta
tio
ns
Time
Positive Hype
Negative Hype
Innovation
Trigger
Peak of Inflated
Expectations
Ex
pe
cta
tio
ns
Positive Hype
Trough of
Disillusionment
Slope of
Enlightenment
Negative Hype
Plateau of
Productivity
Time
Digital Pressures The Manufacturing Improvement Portfolio Balancing Innovation with Core Competency
What future trends should my
company be preparing for?
Where should my company be
focused today?
What my company
should have completed?
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Pressures The Manufacturing Improvement Portfolio Balancing Innovation with Core Competency
Source: Hype Cycle for Manufacturing Strategy, 2017
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
10 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Mat
urity
Lev
el
Inside-Out Outside-In
Connected Plants and Factories Connected Value Networks
Avoid Outpacing YourselfDevelop a Balanced Roadmap
Standalone Manufacturing
Reacting
“We are a servant that must fill all
orders at any cost”
Site Excellence
Anticipating
“We must drive increased OEE”
Integrated Manufacturing
Network
Integrating
“How are we driving economies of scale to
flexibly support the business?”
Outcome-drivenManufacturing
Collaborating
“Are we impacting the customer-driven outcomes of the supply chain?”
Solution-driven Manufacturing
Orchestrating
“Are we involved in creating new
demand?”
Source: Gartner, 2016
11 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Mat
urity
Lev
el
Inside-Out Outside-In
Connected Plants and Factories Connected Value Networks
Digital Happens At All Stages
Standalone Manufacturing
Reacting Site Excellence
AnticipatingIntegrated
ManufacturingNetwork
Integrating Outcome-drivenManufacturing
CollaboratingSolution-driven Manufacturing
Orchestrating
The Trap
The Opportunity
Operating Efficiencies through Smart and/or Connected Factories
Orchestrated Capabilities and Ecosystems
Source: Gartner, 2016
12 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Maturity Is Not When We Start Thinking Big Things, It's When We Start Understanding Small Things.
CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Transformation in Manufacturing Operations
Simon Jacobson
@simonfkj
• The devil is in the detail
• Just collect data – right?
The analytics trap
Analytics is not an outcome
• What does this mean?
Data for the sake of data?
• Time series data – temperature
• Location data
• Events – Rain, sunshine
• Outcome
• No need to pack a heavy coat
Data in context
Time >>>
Me
asu
rem
en
t
Time series data
1 2 3
• Collects time-series data: Pressures, temperatures, test values, etc…
• Identifies production events: Part, lot, batch, downtimes, product changes, etc…
• Provides operational context: Product, grade, crew, order, customer, etc…
4
Characterizes by
summarizing
Average,
Total,
Max, etc.
Average,
Total,
Max, etc.
Average,
Total,
Max, etc.
Average,
Total,
Max, etc.
Operational context
Manufacturing data in context
Production events
MES
ERP
MES
Historian
Automation
Plant / Sensors
Manufacturing Execution Systems
Data in context
Projects with measurable outcomesand provide contextualized data
X-as-a-Service
Future State of a Transformed Discrete Manufacturer
Services
People, Parts, Tools, and Material Tracking
Site Analysis
Risk Identification
Energy (Air, Water, and Electricity) Usage
Safety and Sustainability
Component Manufacturing Finishing AssemblySourcing
Digital Twin Output
Operational Routing Activities; Data Collection (Quality)
Fleet Management
Dealer/Distributor
Inventory and Material Management and Supply Chain Management
Simulate
Production
Workforce Optimization;
Standard Operating Procedures and Work Instructions
Simulate
Usage
Usage Monitoring
Fleet Service and
Management
Forging, Casting,
Stamping, Drilling,
Milling Machines, 3D
Printing to the Assets
System-wide Machine Service Maintenance, Coordination, and Performance
Component Manufacturing Finishing AssemblySourcing
Welders, Torches,
Torque Tools and
Robots
Spray Guns, CNC
Machines, and
Robots
Lift Devices and
Torque Devices
BuildingDesign
Business
Environment
Operations
Assets
The Path to Transformation for a Discrete Manufacturer
TIME
Manage operations by automating
workflows, optimizing staffing, and
predicting maintenance
• Develop predictive machine maintenance
capabilities
• Identify production bottlenecks early
• Design new equipment models for reliability
• Reduce waste and minimize material
consumption
• Reduce paper on plant floor
• Reduce cost of energy/utilities
• Reduce water and wastewater
Tie in the enterprise and sense
demand, respond in real time, and
simulate and optimize production
• Enable build-to-sequence environment
• Leverage real-time production reports
• Bring real-time usage into the design cycle
• Reduce cost to serve
• Use analytics to drive decisions around
simulation and optimization
• Achieve 100% on-time delivery
• Improve and accelerate prototype cycle
• Reduce raw material variability
• Improve product conformance
• Reduce human error
Establish visibility in people, process,
machine efficiency, and cost
• Develop real-time visibility into asset performance on
any device
• Improve machine operator productivity
• Ensure operator is qualified for a given operation
• Parse, aggregate, and report on asset downtime codes
• Reduce process inefficiency
• Improve traceability within the plant
• Layout manufacturing process accurately
• Decrease rework time and volume
• Decrease cost of inventory and reduce material costs
• Track true cost by unit produced
Visualize
Optimize
Innovate
Two decades of
experience delivering
value with the worlds most
respected manufacturers
http://www.geautomation.com/global-mes-installations2
GE manufacturing software
GE AviationGE Aviation
https://youtu.be/sSooHMMVpfU
GE Aviation
https://youtu.be/sSooHMMVpfU
Run video
Cheltenham, UK
GE Aviation, Cheltenham
• 10 point improvement in on-time-delivery
• Better quality
• Visibility to actual costs
• ERP, MES, HRM & Quality systems in concert
“This is a business project. This is not an IT project.”
GE Digital solutions for productivity
Digital Productivity Opportunities
Application Areas
Processesá On time in full
á Throughput
â Rework
â Lead Time
Personnelá Productivity
á Compliance
â HSE incidents
â Turnover
Materialsá Yield
á Quality
â Waste
â Cost
Equipmentá Reliability
á Availability
â Operational Cost
â Operational Risk
Procter & Gamble
https://youtu.be/FVR1JGzrnCc
P&G
https://youtu.be/FVR1JGzrnCc
Procter & Gamble
Run video
Digital tools critical
• Digital tools critical to delivering manufacturing of the future
• The work doesn't happen at the desk, the work happens at the piece of
equipment
• Integration of disparate systems
• 45mins saved per shift per line
• Transformational forces shaping responses
The new paradigm
Close to consumer market Smaller
Multi product Made to order
The time is right
Synchronised upswing for global economy
“The past decade has
been marked by a series
of false economic dawns
This time really does feel
different”
Sundsvall, SwedenAkzoNobel
https://youtu.be/nQq8gDbVvv0
Sundsvall, Sweden
AkzoNobel https://youtu.be/nQq8gDbVvv0
Run video
AkzoNobel
Enabled to serve our customers in a better way
• Recovered 20% capacity in Sundsvall
• Deferred CAPEX on a new line
• Learning point
• Transformed business models
Summary
• Organizations expect revenues to be driven by digital business
• Develop a balanced roadmap
• Take advantage of economic upswing
• Projects that provide contextualized data
• Act now
See us in the Tech Hall – Manufacturing Solutions
Take The Next Step
Thank You
SIMON JACOBSONResearch VP
Gartner Research
Digital Transformation of Manufacturing
SIMON LAWSONManufacturing Solutions
GE Digital
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