The Fourth Industrial Revolution Are UK manufacturers embracing … · 2020. 7. 14. · Digital...
Transcript of The Fourth Industrial Revolution Are UK manufacturers embracing … · 2020. 7. 14. · Digital...
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The Fourth Industrial Revolution –Are UK manufacturers embracing it?
Sponsored by
Produced by
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Speakers:
Vikram SinglaProduct Innovation & Supply Chain Leader
Oracle
Jonathan GrayVice President
Head of Innovation EMEA
Hitachi Consulting
Dr Malcolm WheatleySpecialist manufacturing
writer, and Visiting Fellow at Cranfield
University School of Management
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Dr Malcolm WheatleySpecialist manufacturing
writer, and Visiting Fellow at Cranfield
University School of Management
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Industry 4.0 – the fourth industrial revolution
Big Data
Computer-integrated
Manufacturing
Additive Manufacturing
Digital Manufacturing
Internet of Things
Advanced Analytics
• How aware are manufacturers of the Industry 4.0 opportunity?
• What benefits do they see in Industry 4.0?
• How ready are they to invest in Industry 4.0?
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1st
MECANICS
End18th century
2nd
ELECTRIC
Early20th century
3rd
ELECTRONICS
4th
Cyber systems
(Connected humans, parts, machines,
partners)
Early70’
Today
Complexity
Time
4 Industrial automation revolutions
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Industry of the future everywhere
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Maturity of understanding
• High levels of awareness, but over a third “unaware”.
• Knowledge levels encouraging among those who are aware.
• Company size related to knowledge levels.
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Assessing the impact
• Undoubted impact on respondents’ businesses.
• Low impact = new business models and mass customisation.
• High impact = improved customer service, end-to-end value chain engineering, and automation and robotics.
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Priorities: “Connected” vs. “Smart”
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Investing in the IoT?
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If yes, when?
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Vikram SinglaProduct Innovation & Supply Chain Leader
Oracle
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Connected Enterprise through Industry 4.0Step change in competitiveness
Performance
• Step-change in efficiency and productivity
• Mitigation of global labour arbitrage
• Increased flexibility – mass customization
• Variable, elastic capacity/cost models
Growth
• Smart products, new customer experiences
• Shift to service business models (XaaS)
• Creation of new service markets
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Connected EnterpriseBenefit Areas
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Connected ProductIncreasing Customer Lifetime Value @Toy Manufacturer
- Challenge- Not able to identify the customer needs/desires
and hence build loyalty over the lifecycle
- Resolution- Identify spend desire by geography / customer for
Smart Toys/Accessories
- Incorporate the feed in forecast (causal factors)
- Monitor Supply Disruptions
- Update forecast/pricing accordingly
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Connected DemandIncreasing Value Add to the Customer @ Industrial Gas Supplier
- Challenge- Low differentiation against the competition
- High operating cost
- Resolution- Operate Tanks @ Customer Location (Service model)
- Usage data recorded through telemetry devices
- Forecast/Replenishment based on usage data
- Abnormal usage tracked by sending Hourly Forecast back
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Connected ManufacturingEnhancing total yield @High Tech Manufacturer
- Challenge- Not able to identify the root cause of failures
- Not able to solve the problem with conventional statistical analysis
- Resolution- An innovative approach is required to analyze
massive equipment sensor data. (Above 500 thousand sensors, 3.5 billion data points)
- Analyze subtle patterns in up-to-the-second equipment sensor data to identify the root cause of chronic failures
- Compare patterns with long term sensor data
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Jonathan GrayVice President
Head of Innovation EMEA
Hitachi Consulting
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© 2015 Hitachi Consulting Corporation. All rights reserved. Proprietary and confidential.
Making it happenIndustry 4.0 will require investment in time and money. How do we move to Industry 4.0 without dramatically increasing our OpEx and CapEx envelopes?
Co-innovate with
suppliers (and
customers) with
risk/reward sharing
Change the
commercial model,
buy services not
products
Set the priorities
based on customer
& operational needs
not technology
readiness
Tackle the challenge
in bite-sized chunks
with clear ‘use cases’
and ROIUnderstand what you
can leverage from
previous
investments
e.g. business intelligence, sensor technology on new equipment, RFID, GPS
e.g. cloud applications, availability based plant and equipment models
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© 2015 Hitachi Consulting Corporation. All rights reserved. Proprietary and confidential.
Evolution of Operational Excellence
Operational Excellence
Supply Chain Management
ManufacturingExcellence
Asset Management
Maturity
Best-in-Class Future World Class
Agile SI&OP & Simulation
Self Optimising Production
Digital Operations Management
Total Supply Chain Optimisation
Predictive Maintenance Self Healing Machines
Good Practice
Smart Logistics (Connected Assets)
Multi-Variate Analytics for RCA
Reliability Centred Maintenance
Standard Practice
Integrated Planning
Connected Control Systems & MES
Condition Based Monitoring
Lean Manufacturing
Supplier Development
Preventative Maintenance
Foundation
Industry 4.0 Use Cases
Head-line use cases.
Connected Integrated Intelligent Optimised
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© 2015 Hitachi Consulting Corporation. All rights reserved. Proprietary and confidential.
Use cases exploredExploiting Industry 4.0 capabilities across different sectors.
Train Manufacturer & Rail Service Provider
Situation• Pay-per ‘reliable service’ contract• Avoid any/all unplanned maintenance• Optimise contract profitability
Solution• Reliability centred maintenance program• Predictive analytics for failure prediction of
critical areas• Edge processing & multiple data transfer
scenarios
Predictive Maintenance
Commercial Aircraft OEM
Situation• Need to ramp-up production volumes• Limited automation in assembly• Reduce non-conformity and recurring costs
Solution• Real-time end-to-end progress monitoring • Improve granularity and ease of access to
performance data for front-line• Advanced on-the-fly root-cause-analysis
and proactive issue resolution
Digital Operations ManagementTransport Aerospace
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© 2015 Hitachi Consulting Corporation. All rights reserved. Proprietary and confidential.
Where to start or what to do next?Avoiding expensive, disparate initiatives that fail to deliver timely, tangible business value.
Determine the most
appropriate use-
cases, define the
benefits case.
Understand the
future evolution of
your business
model.
Understand your
current maturity and
existing capabilities
you can leverage.Consider the ’art of
the possible’ and set
the vision.
Drive
experimentation and
piloting at pace with
focused teams.
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• The benefits are compelling
• Many practical starting points
• The time is NOW
Summary
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Thank you. For further information contact:
Vikram: [email protected]
Jonathan: [email protected]
Tim Brown (The Manufacturer): [email protected]
mailto:[email protected]:[email protected]:[email protected]