Keynote about Industry 4.0 by Prof. Dr. Volkert Stich (RWTH Aachen).

1. © FIR 2015
Prof. Dr.-Ing. Volker Stich
Managing Director, FIR e.V. at RWTH Aachen
Eindhoven, February 26th 2015
FACTORY OF THE FUTURE -
Industrie 4.0

2. © FIR 2015
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Introduction to Industrie 4.01
Agenda
The Aachen perspective on Industrie 4.02
Relevance of Industrie 4.0 in SME3
Synopsis4

3. © FIR 2015
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Introduction to Industrie 4.01
Agenda
The Aachen perspective on Industrie 4.02
Relevance of Industrie 4.0 in SME3
Synopsis4

4. © FIR 2015
4
What is „Industrie 4.0“?
The striking name „Industrie 4.0“ is
understood as the comprehensive
inclusion of information and
communication technology as well as the
interconnection to an Internet of Things,
services and data that enables a real-
time capability of production systems.
Prof. Dr.-Ing. Dieter Spath
Source: BMBF, Spath (2013), Image: Festo

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Why do we need Industrie 4.0?
“The situation is
not clear”
“The quantity of
variables is
increasing”
Average time between two
passes
5,8 4,4 3,7
WC
1970
WC
1990
WC
2010
“The game
becomes faster”
Daily routine Production
Source: Wjingaard & Schütze 2003; WZL-Project illustration; BMW Group & Renner 2007
>390 different job cards to manufacture a
product
48% of all orders have more than one
planed completion date
1,1
WC
2014
Variants at BMW Group over time
DeliveryTime[Days]
Significantly reduced delivery times (e.g. PVD-Coating)
Time
Programrange
Time

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What is the intention of Industrie 4.0?
21. Cent.
18. Cent.
Price
& Quality
& Flexibility
& Time
& Deadline
Repetitiveness
Craftsmanship
Efficiency
1769
Steam engine
1908
Fordism
~1810
Interchangeability
from 1956
Toyota Production System
~1990
Lean Thinking
1930 - 1950
Quality awareness
1890
Scientific
Management
Product variance
§ Standardized work
§ Time studies and
working standards
§ Worker/Management
Dichotomy
§ Any number, at different
times, at different locations
produced parts A need to
fit any number, likewise
produced parts B without a
need to rework
§ Transition from
craftsmanship to
factory work
§ Use of machines
§ Value
§ Value stream
§ Flow
§ Pull
§ Perfection
§ Client contact
§ One-piece-flow
§ Zero-failure-principle
§ Kaizen
§ Quality control chat / Statistic
process control
§ Ishikawa-Diagram
§ PDCA-procedure
§ Mass production
§ Flow-production
§ Tact
§ Complexity management

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What are essential distinguishing characteristics of the
4. industrial revolution
Industrie 4.0 drives the renunciation
of Taylorism by complementary
automation processes at the
interface of man-machine interaction
The “Company Organization 4.0” is
characterized in terms of responsibility
and remit by job enlargement and job
enrichment. Assistance systems helps to
cope with greater responsibility.
21. Cent.
18. Cent.
Price
& Quality
& Flexibility
& Time
& Deadline
Repetitiveness
Craftsmanship
Efficiency
1769
Steam engine
1908
Fordism
~1810
Interchangeability
ab 1956
ToyotaProductionSystem
~1990
Lean
Thinking
1930 -1950
Quality awareness
1890
Scientific
Management
Product variance

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Introduction to Industrie 4.01
Agenda
The Aachen perspective on Industrie 4.02
Relevance of Industrie 4.0 in SME3
Synopsis4

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The increase of collaboration productivity enables a 50% reduction of
development time, development- and manufacturing costs
IT Software: Truth IT Hardware: Speedcyber
physical
Software
Hardware
Physical Systems: Automation
Business
Communities
4. Industrial Revolution
Collaboration
productivity
- Human / Human
- Human / Machine
- Machine / Machine
Social Behaviour: Cooperation
PLM-System
ERP-System
Local
storage
Save in the
cloud
High Speed
Computing
Cognitive SystemsSocial
Communities

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The increase of collaboration productivity enables a 50% reduction of
development time, development- and manufacturing costs
IT Software: Truth
1. An entire PLM-System as a
„Single Source of Truth“
2. Use of “high-resolution” data from
production
IT Hardware: Speed
3. Simulation-based decision
guidance
4. Cloud-based and real-time
capable simulation
cyber
physical
Software
Hardware
5. Intelligent and self-learning
systems
6. Highly skilled employees as a key
to success
Physical Systems: Automation
4. Industrielle Revolution
7. Disruptive network approach
8. Fast implementation by
transparency and communication
4. Industrial Revolution
Collaboration
productivity
- Human / Human
- Human / Machine
- Machine / Machine
Social Behavior: Cooperation

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1. An entire PLM-System as „Single Source of Truth“ for
product an production-related data
Administration of
Construction data
Administration of
Product data
PPCFormerly
Administration of
Construction data
Administration of
Product data
PPC
PLM
As-is
state
PPC
LF SOPKE
PLM/ PDM
Ideal
Data transfer

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3. Simulation-based decision guidance for production to
inrease decision quality
Source: Mercedes Benz, glasspilot, ProSense
“Will I hit
the runway
on that
trajectory?”
“Terrain
vision“
System
”What is
the
distance
behind my
car?“
Rear view
camera
“What potentials
can I realized by
better steering
decisions?“
Potential- &
„What-if“- simulation
Sophisticated decision guidance, self-optimization and simulation “conquer” the production
Intelligent dicision guidance in daily routine Intelligent dicision guidance in production

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6. High-skilled employees are a key to success
We need to utilize the competencies we have within this country. However, if we want to use
the highly-skilled education, we need to reject from Taylorism. We need to move to a holistic
employee responsibility (Hr. Wiedemann, Technikvorstand Fa. Rational)
Intuitive surfaces for
complex applications
Interactive
visualizations
Fast
Problem solving
Employees as
decisions
makers
Source: Ortlinghaus, WZL

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8. Fast implementation by transparency and
communication
Promote exchange
between employees
Openness
Break up with
hierarchical structures
Bring your own
device
Higher transparency facilitates employees to quickly improve complex production processes.
Thereby the productivity rises within the entire company!
Source: Ortlinghaus, WZL

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Introduction to Industrie 4.01
Agenda
The Aachen perspective on Industrie 4.02
Relevance of Industrie 4.0 in SME3
Synopsis4

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In SME and particular in production, a variety of areas for
improvement can be identified
Examples of medium-sized mechanical engineering companies
Source: WZL Project illustration 2011/2012
>10
orders on average are located before the machine –
corresponding with a workload of 4 days
days of possessing time are needed for an order to pass the
production. The average is 32,5 days2-250
48% of all orders have more than one completion date
of working time are used for non value-adding activities by
employees of production scheduling department50%
>390 different job cards to manufacture a product

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The preconditions in order to implement Industrie 4.0 in SME
are not set yet
“Everything is possible“
is not relevant in practice
n 57% of the companies
use a written
documentation of their
stock- and movement
data
n 17% of the companies
do not acquire data
IT-Infrastructur1 Lack of information3Willingness to invest2
Yes, I know about
Industrie 4.0
No, I don‘t know
about Industrie
4.0
Source: 1) Schuh (2013): Produktion am Standort Deutschland (n=84); 2) VDI Nachrichten (2014); Fraunhofer IML;
3) techconsult GmbH (2013): Fertigung Mittestand D/A/CH (n=900)
How can solution approaches of Industrie 4.0 be adapted and transferred to SME?

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By connecting operational objects and information technologies Industrie 4.0
enables Smart Products, Smart Data und Smart Services
Source: Smart Service Welt - Umsetzungsempfehlungen für das Zukunftsprojekt Internetbasierte Dienste für die Wirtschaft
ContainerDocuments Identification Localization
Smart Data
Smart
Products
Smart
Services
Operational objects Information technology
SensorsActuatorsWork piecesMachines
Staff Communication
Information
processing
Tools

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Already today adapted solutions for SME are existing in order
to implement Industrie 4.0
TomorrowToday
Intelligent
tools
Self-controlling
products
Smart
Products
Real-time
optimized
production
IT-supported
material postingSmart Data
Simplified
maintenance
Flexible
material staging
Smart
Services

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Smart Products
From intelligent tools to self-controlling products
n Automated tool crib
n Optimized tool planning by recording tool
idle time
n Automatic request to supplier, if tools are
needed
n Communication between product and
production plant
n Storage fo all necessary information on one
chip on the product
n Self-controlling product throughout the whole
production
Image source: Gühring, mymüsli
TomorrowToday

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Smart Products
From intelligent tools to self-controlling products
n Communication between product and
production line, - plant
n All necessary information stored
on a chip right on the product
n Self-controlling product throughout the
entire production
TomorrowToday
Image source: Gühring, mymüsli
n Automated tool crib
n Optimized tool planning by recording tool
idle time
n Automatic request to supplier, if tools are
needed

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Smart Data
From IT-supported material posting to real-time-optimized production
n Supporting posting of material withdrawal
from stock by sensors
n Material tracking throughout production by
sensors at work places
n Simulation of production scenarios on basis of
gathered data
n Testing of “What- if“ scenarios in order to
analyze different scenarios
n Improve production control by deriving
relevant fields of actions
Image source: inotec, ProSense
TomorrowToday

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Smart Data
From IT-supported material posting to real-time-optimized production
n Simulation of production scenarios on basis of
gathered data
n Testing of “What- if“ scenarios in order to
analyze different scenarios
n Improve production control by deriving
relevant fields of actions
TomorrowToday
Image source: inotec, ProSense
n Supporting posting of material withdrawal
from stock by sensors
n Material tracking throughout production by
sensors at work places

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Smart Services
From flexible material staging to simplified maintenance
n Improving of internal logistics
n Determination of material requirements and
request times at work places, based on
production planning data
n Calculation of departure time and “Milkrun”
routing
n Simplification of maintenance by using
Augmented Reality
n Target/actual comparison permits a quick
fault detection, fast debugging and
reduction of machine downtimes.
Image source: Liebherr, Kinrig
TomorrowToday

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Smart Services
From flexible material staging to simplified maintenance
n Improving of internal logistics
n Determination of material requirements and
request times at work places, based on
production planning data
n Calculation of departure time and “Milkrun”
routing
n Simplification of maintenance by using
Augmented Reality
n Target/actual comparison permits a quick
fault detection, fast debugging and
reduction of machine downtimes.
Image source: Liebherr, Kinrig
TomorrowToday

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A variety of Digital Manufacturing initiatives are already
launched on country and EU level
Source: European Commission

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The Industrie 4.0 “Readiness” across Europe varies;
Frontrunners are Germany, Ireland, Austria and Sweden
Source: Roland Berger (2014)

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Introduction to Industrie 4.01
Agenda
The Aachen perspective on Industrie 4.02
Relevance of Industrie 4.0 in SME3
Synopsis4

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Industrie 4.0 - How we make it happen at the
RWTH Aachen Campus Cluster Logistik
Increased significance
Automated calculation of transition times
Staging area 2
RFID-
Sensor
Consistent communication
Adaptive assembly instructions
Reliable forecast
Situational capacity planning
Better comprehension
PPC based analysis of gathered data
Simulation of
possible alter-
native actions
Overview of
production
capacities
Visualization of
gathered data
(As-is status)
Simulative
Determination of
Controlling optimum
PLM-based
worker guidance
Staging area 1

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Synopsis
Industrie 4.0…
… is the inclusion of information and communication
technology and their interconnection to an „Internet
of Things“,
… offers great potential by combining information in an
appropriate context,
… enables the increase of collaboration productivity in
order to increase competitiveness,
… enables Smart Products, Smart Data and Smart
Services,
… needs to be adapted to the requirements of SME.

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Thank you for kind your attention
Prof. Dr.-Ing.
Volker Stich
Managing Director
Telefon: +49 (0)241 477 05-100
Fax: +49 (0)241 477 05-199
E-Mail: Volker.Stich@fir.rwth-aachen.de