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Preparing for the Future
What It Will Take to Compete in 2021
Connie Palucka
Managing Director
Regional Initiatives
May 20, 2016
©2016 Catalyst Connection
Industry 4.0 …
The Evolution of Smart Factories
May 23, 2016 SLIDE 2
Industry 4.0 Examples
• Germany’s Energy Sector ꟷ smart grids allow shift from
consumption-oriented generation to generation-optimized
consumption
– RESULT ꟷ fluctuating renewable energy power generation &
consumption is optimally managed
• Michelin ꟷ Connectivity & smart devices enabled them to
completely shift business to providing mobility & safety of
tires as a service rather than focus on selling tires
– RESULT ꟷ Sensors & intelligence embedded in tires monitor
performance; a network of support ensures problems are addressed
SLIDE 3
Trends to Watch … They Could
Impact Your Company’s Future
• Additive
Manufacturing
• Collaborative Robotics
• Internet of Things
• Distributed
Manufacturing
SLIDE 4
Manufacturing Trends
Additive Manufacturing (AM)
• TODAY: Currently used for prototypes, tooling,
fixtures & jigs (non-critical parts) in aerospace, medical
device, automotive & consumer sectors
– Boeing uses AM to produce over 200 PN for 10 types of aircraft
– GE invested $39MM in CATA; std process in each business unit
– Alcoa investing $60MM to develop advanced AM materials &
processes
• WHAT TO EXPECT LONG-TERM:
– Expect lines between additive & conventional manufacturing to blur
– As materials portfolio expands and standards are introduced, AM
will be approved for critical as well as non-critical parts
SLIDE 5
Manufacturing Trends
Additive Manufacturing
• NEXT FIVE YEARS:
– Expect expanded range of materials, improved reproducibility,
introduction of quality and machining standards
– Important next stage is 3D printing of integrated electronic
components, such as circuit boards
– 3D printing-as-a-service model as well as a leasing model
• WHAT SHOULD YOU DO TO PREPARE
– Utilize 3D printing for prototyping to spur innovation & reduce time
to market
– Start small. Really look at your application. Understand the
characteristics that help determine which ones could benefit from
AM. Contract 3D prints on several machines to narrow process /
equip selection.
– Purchase something cheap 1st to learn basics .. how the technology
works … how support materials work. Then select a 3d printer.
SLIDE 6
Manufacturing Trends
Collaborative Robotics “Cobots”
• TODAY: Initially less intricate tasks like lifting or welding … now
robots do more complex jobs like working on engines
– Starting to see collaborative robots to complement rather than replace workers
– Automotive sector has invested heavily in collaborative robotics
• WHAT TO EXPECT LONG-TERM: Smarter, more mobile, more
adaptable, easier to program
– Cobot applications: machine tending; handling heavy payloads currently
requiring lift devices; mechanical assembly; palletizing / packaging / handling
– Major changes on factory floor & global competitive landscape
• China planning robot revolution by automating work done by millions of
low-paid workers.
– Accelerated time-to-market, improved
production accuracy, reduced rework
– Expect more autonomous vehicles on the
road & in the warehouse
SLIDE 7
Manufacturing Trends
Collaborative Robotics
• NEXT FIVE YEARS:
– Industry expected to grow 10x by 2020 to reach $1B
– Robots and humans working side by side will become common
• WHAT SHOULD YOU DO TO PREPARE
– Identify potential applications
– Describe in sequence how the task is currently being performed;
take particular note of metrics such as :
• Changeover Throughput Environment
– What could be improved on the cell
• Production cost; Quality; Ergonomics
• Other key metrics you are working to improve in your plant
SLIDE 8
Manufacturing Trends
Internet of Things
• TODAY: Apps making mobile devices multifunctional so
they can operate equipment, act as scanner, etc.
– GE’s wind turbines - 20,000 sensors produce 400 data points/sec; ongoing
analysis allows GE & customers to optimize turbine performance &
proactively make decisions
• WHAT TO EXPECT LONG-TERM:
– Production will become more networked until everything is interlinked with
everything else; machines, sensors, computers & humans are linked
enabling new levels of info monitoring, collection, processing & analysis
SLIDE 9
Manufacturing Trends
Internet of Things
• NEXT FIVE YEARS:
– IoT is like any new, emerging
technology
• Ex: Cloud computing - The
Open Group set key
considerations in 2019 for
how to build & measure ROI
for cloud initiatives
• This gave businesses a set of
stds & benchmarks to define
success and measure results
of investing in “the cloud”
• 2016, cloud solutions are the
norm
– Expect IoT to develop the
same way; GE already working
on transforming all of their
products into data centers
$170
$206
$225
Consumer IoT
Enterprise Cloud
Computing
Industrial Internet
Annual Revenue by 2020
shown in $Billion
SLIDE 10
Industrial Internet Gold Rush
By 2020, GE expects the industrial
Internet market to be far more lucrative
than consumer IoT
Manufacturing Trends
Internet of Things
• WHAT SHOULD YOU DO TO PREPARE
– Determine what data is most valuable to collect; Gauge efficacy of
analytical structures that will be used to assess data
– Data security - big concern within Industry 4.0 to guarantee safe
production
• Establish appropriate IT security mechanisms for the production
environment as part of a new enterprise security plan
– If you’re developing smart products, start small & work on projects
that are “quick wins” - will generate value quickly without significant
investment
• Start small with a hand-built prototype, make a dozen for a few
strategic customers - Prove value in small ways
SLIDE 11
Manufacturing Trends
Distributed Manufacturing
• TODAY: This week, UPS announced creation a fully
distributed mfg platform, connecting 60 UPS stores, each
with mid-level 3D printers, onto an advanced production
platform built & run by parts mfger, Fast Radius
• WHAT TO EXPECT LONG-TERM:
– The UPS story is first instance of “Uberization of mfg”, i.e. seamless
connection of demand with distributed production capacity
– Look for production partners around the world on this platform to
expand rapidly, mirroring UPS’ extensive hub and spoke distribution
network - Implications for global manufacturing are potentially as
disruptive as when Amazon launched its Cloud Hosting business
– Currently unknown whether distributed manufacturing will become
mainstream or remain a niche activity
SLIDE 12
Manufacturing Trends
Distributed Manufacturing
• NEXT FIVE YEARS: Currently it’s too early to predict
• WHAT SHOULD YOU DO TO PREPARE
– Stay abreast of what’s going on in your industry and supply chains
SLIDE 13
SLIDE 14
Connie Palucka
Catalyst Connection
(W) 412-918-4259 (C) 412-721-8309
cpalucka@catalystconnection.org
Thank You!

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Preparing for the Future - What It Will Take to Compete in 2021 - Connie Palucka, Catalyst Connection

  • 1. Preparing for the Future What It Will Take to Compete in 2021 Connie Palucka Managing Director Regional Initiatives May 20, 2016 ©2016 Catalyst Connection
  • 2. Industry 4.0 … The Evolution of Smart Factories May 23, 2016 SLIDE 2
  • 3. Industry 4.0 Examples • Germany’s Energy Sector ꟷ smart grids allow shift from consumption-oriented generation to generation-optimized consumption – RESULT ꟷ fluctuating renewable energy power generation & consumption is optimally managed • Michelin ꟷ Connectivity & smart devices enabled them to completely shift business to providing mobility & safety of tires as a service rather than focus on selling tires – RESULT ꟷ Sensors & intelligence embedded in tires monitor performance; a network of support ensures problems are addressed SLIDE 3
  • 4. Trends to Watch … They Could Impact Your Company’s Future • Additive Manufacturing • Collaborative Robotics • Internet of Things • Distributed Manufacturing SLIDE 4
  • 5. Manufacturing Trends Additive Manufacturing (AM) • TODAY: Currently used for prototypes, tooling, fixtures & jigs (non-critical parts) in aerospace, medical device, automotive & consumer sectors – Boeing uses AM to produce over 200 PN for 10 types of aircraft – GE invested $39MM in CATA; std process in each business unit – Alcoa investing $60MM to develop advanced AM materials & processes • WHAT TO EXPECT LONG-TERM: – Expect lines between additive & conventional manufacturing to blur – As materials portfolio expands and standards are introduced, AM will be approved for critical as well as non-critical parts SLIDE 5
  • 6. Manufacturing Trends Additive Manufacturing • NEXT FIVE YEARS: – Expect expanded range of materials, improved reproducibility, introduction of quality and machining standards – Important next stage is 3D printing of integrated electronic components, such as circuit boards – 3D printing-as-a-service model as well as a leasing model • WHAT SHOULD YOU DO TO PREPARE – Utilize 3D printing for prototyping to spur innovation & reduce time to market – Start small. Really look at your application. Understand the characteristics that help determine which ones could benefit from AM. Contract 3D prints on several machines to narrow process / equip selection. – Purchase something cheap 1st to learn basics .. how the technology works … how support materials work. Then select a 3d printer. SLIDE 6
  • 7. Manufacturing Trends Collaborative Robotics “Cobots” • TODAY: Initially less intricate tasks like lifting or welding … now robots do more complex jobs like working on engines – Starting to see collaborative robots to complement rather than replace workers – Automotive sector has invested heavily in collaborative robotics • WHAT TO EXPECT LONG-TERM: Smarter, more mobile, more adaptable, easier to program – Cobot applications: machine tending; handling heavy payloads currently requiring lift devices; mechanical assembly; palletizing / packaging / handling – Major changes on factory floor & global competitive landscape • China planning robot revolution by automating work done by millions of low-paid workers. – Accelerated time-to-market, improved production accuracy, reduced rework – Expect more autonomous vehicles on the road & in the warehouse SLIDE 7
  • 8. Manufacturing Trends Collaborative Robotics • NEXT FIVE YEARS: – Industry expected to grow 10x by 2020 to reach $1B – Robots and humans working side by side will become common • WHAT SHOULD YOU DO TO PREPARE – Identify potential applications – Describe in sequence how the task is currently being performed; take particular note of metrics such as : • Changeover Throughput Environment – What could be improved on the cell • Production cost; Quality; Ergonomics • Other key metrics you are working to improve in your plant SLIDE 8
  • 9. Manufacturing Trends Internet of Things • TODAY: Apps making mobile devices multifunctional so they can operate equipment, act as scanner, etc. – GE’s wind turbines - 20,000 sensors produce 400 data points/sec; ongoing analysis allows GE & customers to optimize turbine performance & proactively make decisions • WHAT TO EXPECT LONG-TERM: – Production will become more networked until everything is interlinked with everything else; machines, sensors, computers & humans are linked enabling new levels of info monitoring, collection, processing & analysis SLIDE 9
  • 10. Manufacturing Trends Internet of Things • NEXT FIVE YEARS: – IoT is like any new, emerging technology • Ex: Cloud computing - The Open Group set key considerations in 2019 for how to build & measure ROI for cloud initiatives • This gave businesses a set of stds & benchmarks to define success and measure results of investing in “the cloud” • 2016, cloud solutions are the norm – Expect IoT to develop the same way; GE already working on transforming all of their products into data centers $170 $206 $225 Consumer IoT Enterprise Cloud Computing Industrial Internet Annual Revenue by 2020 shown in $Billion SLIDE 10 Industrial Internet Gold Rush By 2020, GE expects the industrial Internet market to be far more lucrative than consumer IoT
  • 11. Manufacturing Trends Internet of Things • WHAT SHOULD YOU DO TO PREPARE – Determine what data is most valuable to collect; Gauge efficacy of analytical structures that will be used to assess data – Data security - big concern within Industry 4.0 to guarantee safe production • Establish appropriate IT security mechanisms for the production environment as part of a new enterprise security plan – If you’re developing smart products, start small & work on projects that are “quick wins” - will generate value quickly without significant investment • Start small with a hand-built prototype, make a dozen for a few strategic customers - Prove value in small ways SLIDE 11
  • 12. Manufacturing Trends Distributed Manufacturing • TODAY: This week, UPS announced creation a fully distributed mfg platform, connecting 60 UPS stores, each with mid-level 3D printers, onto an advanced production platform built & run by parts mfger, Fast Radius • WHAT TO EXPECT LONG-TERM: – The UPS story is first instance of “Uberization of mfg”, i.e. seamless connection of demand with distributed production capacity – Look for production partners around the world on this platform to expand rapidly, mirroring UPS’ extensive hub and spoke distribution network - Implications for global manufacturing are potentially as disruptive as when Amazon launched its Cloud Hosting business – Currently unknown whether distributed manufacturing will become mainstream or remain a niche activity SLIDE 12
  • 13. Manufacturing Trends Distributed Manufacturing • NEXT FIVE YEARS: Currently it’s too early to predict • WHAT SHOULD YOU DO TO PREPARE – Stay abreast of what’s going on in your industry and supply chains SLIDE 13
  • 15. Connie Palucka Catalyst Connection (W) 412-918-4259 (C) 412-721-8309 cpalucka@catalystconnection.org Thank You!