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1. The better the question. The better the answer.
The better the world works.
INDUSTRY 4.0
Why it matters?
2. Page 2
Industrial Evolution
4. Industrial
revolution
Based on cyber-physical-
systems
3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production
2. Industrial revolution
Introducing mass production
lines powered by electric
energy
1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
End of the
18th century.
Beginning of the
20th century
Beginning of the
70th
Industry 1.0 Industry 3.0
Industry 2.0 Industry 4.0
Level
of
complexity
Today
Source: DFKI/Bauer IAO
4. Page 4
Phases of earlier 3 Industrial Revolutions
1. 1760 to 1840 - Ushered in Mechanical production; railways and
steam engine
2. 1870 to 1940 - Mass production; electricity and assembly line
3. 1960 to 2010 - Computers; semi conductors, main frame computing,
personal devices, internet
7. Connected Devices Projection
2003 2010 2015 2020
500 Million 12.5 Billion 50 Billion
25 Billion
Connected
Devices
Connected
Devices Per
Person 0.08 1.84 6.58
3.47
World
Population 6.3 Billion 6.8 Billion 7.6 Billion
7.2 Billion
More connected
devices than people
(Conservative)
2008
SOURCE: CISCO
8. Smart Buildings
Internet
AC power sub-meters
Outdoor temperature
Temp, Hum., Light, CO2
sensors
Relay nodes
Routers
Gas/Water sub-meters
Dashboards
SOURCE: CISCO
9. Smart Manufacturing
Supply Chain
Distribution Center
Customer
Business
Systems, ERP
Smart Grid
Smart Factory
• Dynamic plant configuration, readiness
• Dynamic product configuration
• Dynamic inventory minimization
SOURCE: ROBERT GRAYBILL
11. Page 11
Time to reach 100 Million customers
► Telephone 75 Years
► Web 7 Years
► Facebook 4 Years
► Instagram 2 Years
► Pokemon Go 1 Month
12. Some Industry 4.0 Technologies
Digital workflows
and platforms
End-to-end (E2E)
process
management
Smart,
autonomous
assets
Human
interaction
Logistics systems across the networked industry
Big
data
3D printing &
virtualization
New digital
business
models
SOURCE: PROF. DR. ANDRÉ LUDWIG
13. Page 13
Industry 4.0
Six Design Principles
► Interoperability: the ability of cyber-physical systems (i.e. work
piece carriers, assembly stations and products), humans and Smart
Factories to connect and communicate with each other via the
Internet of Things and the Internet of Services
► Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual
plant models and simulation models
► Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
► Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
► Service Orientation: offering of services (of cyber-physical
systems, humans and Smart Factories) via the Internet of Services
► Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules
14. Page 14
Building blocks of Industry 4.0
Industry 4.0
Autonomous
Robots
Simulation
Horizontal
and vertical
system
integration
Industrial
Internet of
Things
Cyber
Security
Additive Mfg
Augmented
reality
Big data
analytics
16. Page 16
Potential Implications
Robot Assisted production
Predictive Maintenance
Additive manufacturing of complex parts
Machines as a service
Big data drive quality control
Production line simulation
Smart supply network
19. Page 19
Impact
Business
► Customer expectations
► Data enhanced products
► Collaborative innovation
► New operating models
Combining digital, physical and biological worlds
20. Page 20
Impact
► National & Global
► Governments
► Countries, regions & cities
► International security
► Society
► Inequality
► Community
► The Individual
► Identity, morality & ethics
► Human connection
21. BUSINESS MODELS OF INDUSTRY 4.0
From product to service mindset
Manufacturers employing Industry 4.0 are
redefining themselves in the value chain by adding
services to their products. This is allowing them to
evolve from product-specific companies,
competing exclusively on manufacturing costs,
time or quality.
Customer experience
Industry 4.0 enables insight into the entire
production chain in real time, which allows
manufacturers to spot where service levels can be
improved. This, by itself, is enough to make service
the focus in any newly developed business model.
22. BUSINESS MODELS OF INDUSTRY 4.0
Developing a network
Interoperability, the foundation of Industry 4.0, is the ability of
systems to exchange information. That, coupled with the horizontal
and vertical integration of the value chain, broadens a
manufacturer’s traditional role. Behind this is the stakeholders’
network.
Smarter products
Another way Industry 4.0 is changing business models is in the
products manufacturers produce. Remember Tesla and its free
functionalities with software updates? Here, the manufacturer is
providing a smarter product.
Manufacturers can offer customers products embedded with
aspects of the Internet of Things (IOT) – the very same technology
that allows them to operate smarter. This enables the expansion of
markets or diversification. Going this route would allow
manufacturers to experiment with a new business model before
abandoning the old.
23. Lean Management or "Lean" is the optimal way of managing through the
removal of waste and implementing flow.
It is renowned for its focus on reduction of the original process wastes in
order to improve overall customer value.
In simple term, more value with less work.
Lean manufacturing is derived mostly from the Toyota Production System
(TPS) Identified as "Lean" only after 1990s.
Goal is to eliminate the waste from the process.
LEAN MANAGEMENT
26. TOYOTA PRODUCTION SYSTEM
Make what the customer needs, when it is needed, in the right
amount.
Minimize inventories
Separate machine work from human work and fully utilize both
Build quality into the process and prevent errors from happening
Reduce lead-times to allow for rapid, flexible scheduling
Produce a high mix of low volume products efficiently
27. Main goals ofToyota Production System (TPS) are to eliminate:
Overburden or stress in the system (muri)
Inconsistency (mura)
Waste (muda)
Goal is to design a process that runs smoothly, can flex without stress, and
eliminates waste.
UsingTPS,Toyota was able to reduce lead-time and cost, while improving
quality.
LEAN PRODUCTION -TPS
28. MUDA (Waste)
MURI
(Strain / Over burden)
MURA (Unevenness)
Eliminating 3 M
29. MUDA
Process-1 V
W
Process-2 V
W
Process-3 V
W
Process-4
W
Product
V
Input
V:Value added product/services
W: Wasteful product / practices/services that does not add value
MUDA is the Waste, work that does not add any value to the product
30. EconomicValue of Waste
Every business activity absorbs
resources and every resource has
a cost
Every waste has a cost, and that
is direct loss to the company.
Economic value of waste in a
process industry are in the range
of 10 -35% of annual turnover
31. Unnecessary Motions
Waiting for work and materials
Transportations
Overproduction
Processing
Inventories / Unnecessary WIP
Corrective operation
7 Seven MUDA [Wastes]
33. MUDA of Motion
Movement that does not add value
Searching for files
Extra clicks or key strokes
Clearing away files on the desk
Gathering information
Looking through manuals and catalogs
Handling paperwork
36. MUDA ofWaiting
Idle time created when material, information, people or
equipment is not ready.
Waiting for:
Faxes
The system to come back
Copier machine
Customer response
A handed off file to come back
37. MUDA ofTransport
I am more expensive
since raw material is
coming from a far
off place.
38. MUDA ofTransport
Movement of information that does not add
value:
Carrying documents to and fro from shared
equipment
Taking files to another person
Going to get signatures
40. MUDA of Over
production
Generating more information than the customer needs
right now:
More information than the customer needs
Creating reports no one reads
Making extra copies
More information than the next process needs
41. MUDA of Process
1. Using more expensive
equipment or tools where
simpler ones would suffice.
2. Having meetings that are not
needed.
3. Having people at meetings
that are not required.
4. Agenda points, not to be
included;
42. MUDA of
Process
Efforts that create no value from the customer
viewpoint:
Creating reports
Repeated manual entry of data
Excessive paperwork
Duplicity of work
Use of outdated standard forms
Use of inappropriate software
43.
44. More information, project, material on hand than
the customer needs right now:
Files waiting to be worked on
Open projects
Office supplies
E-mails waiting to be read
Unused records in the database
46. Work that contains errors, rework, mistakes or
lacks something necessary:
Data entry error
Pricing error
Missing information
Missed specifications
Lost records
Rework
Rescheduling meetings
47. Find the Root Cause
- Asking ‘WHY’ for 5 times
- 5W 1H
How to eliminate?
48. The Five Ws and The One H
Who What Where
1. Who does it?
2. Who is doing it?
3. Who should be doing it?
4. Who else can do it?
5. Who else should do it?
6. Who is doing 3-Mus?
1. What to do?
2. What is being done?
3. What should be done?
4. What else can be done?
5. What else should be done?
6. What 3-MUs are being
done?
1. Where to do it?
2. Where is it done?
3. Where should it be done?
4. Where else can it be done?
5. Where else should it be
done ?
6. Where are 3- MU s being
done?
49. Muri is the overburden on equipment, facilities & people caused by
mura and muda.
This is in some respects on the opposite end of the spectrum of
muda.
Muri is pushing a machine or person beyond natural limits.
Overburdening people results in safety and quality problems.
Overburdening equipment causes breakdowns and defects
MURI
50.
51.
52. Identifying MURI
MURI = Physical Strain, Overbourden
Placing of excessive demands on
People
M/Cs, Production equipment.
Muri is caused by the respect of unsuited standards
Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?
53. MURA
Mura is the variation in the operation of a process not
caused by the end customer.
It is the unevenness, unbalanced work on machines.
Mura results when employees are told to work like crazy
early in the morning only to stand around and do nothing
late in the day.
Result: Excess capacity allocation and increased cost.
54. Eliminating MURA
MURA is
Inconsistent or
Irregular or
Uneven use of person or M/c.
Happens sometimes?
Happens some places
Happens to some people
One side is ok; the other side is not ok
60. Just-In-Time (JIT) Defined
JIT can be defined as an integrated set of activities
designed to achieve high-volume production using
minimal inventories (raw materials, work in process,
and finished goods).
JIT also involves the elimination of waste in
production effort.
JIT also involves the timing of production resources
(e.g., parts arrive at the next workstation “just in
time”).
61. Just in Time Manufacturing
Produce according to customer demands:
What is needed
When it is needed
In the quantity it is needed
62. Minimizing Waste: Just-In-Time
Production
• Management philosophy
• “Pull” system though the plant
WHAT IT IS
• Employee participation
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes
WHAT IT REQUIRES
• Attacks waste
• Exposes problems and bottlenecks
• Achieves streamlined production
WHAT IT DOES
• Stable environment
WHAT IT ASSUMES
64. Lean and Just-in-Time
Lean was generated from the Just-in-time (JIT)
philosophy of continuous and forced problem solving
Just-in-time is supplying customers with exactly
what they want when they want it
With JIT, supplies and components are “pulled”
through a system to arrive where they are needed
when they are needed
69. Kanban
Manual information system to control production.
Material transportation, and inventory
Literally means “visible record” or card
In the the broad sense it is a communication signal
from a downstream process (customer) to a
upstream process (producer)
70. Japanese word for card
Pronounced ‘kahn-bahn’ (not ‘can-ban’)
Authorizes production from downstream operations
‘Pulls’ material through plant
May be a card, flag, verbal signal etc.
Used often with fixed-size containers
Add or remove containers to change production rate
Kanban
71. 72
Kinds of Kanban
Two most common kanbans
production kanbans (P- Kanban)
authorizes a process to produce a fixed amount of product