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

Transcript of The Fourth Industrial Revolution Are UK manufacturers embracing … · 2020. 7. 14. · Digital...

  • The Fourth Industrial Revolution –Are UK manufacturers embracing it?

    Sponsored by

    Produced by

  • 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

  • Dr Malcolm WheatleySpecialist manufacturing

    writer, and Visiting Fellow at Cranfield

    University School of Management

  • 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?

  • 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

  • Industry of the future everywhere

  • 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.

  • 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.

  • Priorities: “Connected” vs. “Smart”

  • Investing in the IoT?

  • If yes, when?

  • Vikram SinglaProduct Innovation & Supply Chain Leader

    Oracle

  • 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

  • Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

    Connected EnterpriseBenefit Areas

  • 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

  • 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

  • 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

  • Jonathan GrayVice President

    Head of Innovation EMEA

    Hitachi Consulting

  • © 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

  • © 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

  • © 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

  • © 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.

  • • The benefits are compelling

    • Many practical starting points

    • The time is NOW

    Summary

  • 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]