The document discusses Industry 4.0 and the digital transformation of manufacturing. It describes how digital technologies like sensors, computing power, analytics and networking are enabling advanced cyber-physical systems and integrated value networks. This allows for benefits like mass customization, increased flexibility, shorter innovation cycles and higher productivity. The document outlines Siemens' vision for a fully integrated digital enterprise and presents examples of Siemens technologies that can help manufacturers achieve Industry 4.0, such as industrial communication networks, security solutions, cloud services and smart factories.

1. © Siemens AG 2015 siemens.com
Industry 4.0 – Vision to Reality
Simon Keogh | Siemens Digital Factory GM Factory Automation

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Industry 4.0
….moving into a fourth Industrial Revolution

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The Internet is revolutionising the world of business

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New business models in the Internet age
From taxi to
ride-sharing
From record store
to streaming
From bookstore
to e-book
From
Yellow Pages
to marketplace

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Industrial challenges and drivers
• Shorter
innovation cycles
• More complex products
• Greater data volumes
Shorten time
to market
• Individualised mass
production
• Volatile markets
• High productivity
Increase
flexibility
• Energy efficiency and
resource efficiency are
critical competition factors
Boost
efficiency

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Manufacturing beyond 2025
Source: acatech, April 2013 “Recommendations for implementing the strategic initiative Industrie 4.0”
Key research areas
• Horizontal integration via value-added networks
• End-to-end engineering across the entire value chain
• Vertical integration and networked production systems
Industry 4.0 …
• Organisation and control across entire value chain &
product life cycle
• Individualised to customer wishes
• Encompassing all phases:
• From idea to order
• Development and production
• Delivery to the customer
• Even recycling and related services

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Digitalisation
Influence of Digitalisation on Siemens Innovation
Electrification
Automation
Enablers
• Sensors
• Computing
power
• Storage
capacities
• Data analytics
• Networking

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Industry 4.0 touches all elements of the value chain
Human
Resources
Digital
Manufacturing
Lifecycle
Data Manage-
ment (cPDM)
for Product and
Production
Customer
Relationship
Management
Engineering,
Design Tools
& Simulation
Enterprise
IT Infrastructure
Material
Tools
& Fixtures
Machinery
Factory
Infrastructure
Industrial
Communication
& Security
Maintenance,
Repair
& Overhaul
Sensors &
Actuators
Supply Chain
Management
Asset
Management
Industrial
Control
Systems
Manufacturing
Operations
Management
Global
Communication
Infrastructure
Enterprise
Resource
Planning
The Digital Enterprise today –
Domains covered by Siemens DF and PD
Public
IT Infrastructure
(Internet)

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Real World
Digital World
Discrete industry –
The entire value chain is digitalised and integrated
1
2 3
54
Product design
Production planning
Production engineering
Production
Services
Lifecycle & Data
driven Services
Totally Integrated Automation
Manufacturing Execution Systems (MES)
Product Lifecycle Management (PLM)
Simulation

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Cyber-physical systems - Complete digital model
The digital model always up-to-date and is extended over the entire lifecycle
• Software / Informatics
• Mechanics
• Electrics, Electronics
• Automation, HMI
• Safety, security
• Maintenance
Cyber-physical system (CPS)
Physical production unit Digital model
• Location, identity…
• Status
• SW version
• Interfaces
• …
Contains all information …
+
Services
Production
execution
Production
planning
Product
design
Production
engineering

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Cornerstones of the Digital Enterprise – The Innovation Challenge
Integrated value chain with seamless engineeringUse of intelligent models
Transparent factories, internally and externally networkedModular, networked, secure automation

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Step by step into the digital world
Four steps to the Digital Enterprise for small and
medium-sized enterprises
Digital Enterprise Software Suite
Industrial communication networks
Security in automation
Business-specific industrial services
1
2
3
4

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Secure end-to-end communication infrastructure
End-to-end communication across
companies, production facilities and field
sensors with PROFINET
Communications Solutions for Industry
• Profinet – Profisafe, ProfiEnergy
• Wireless Industrial Communication
• Managed Switches
• Network Management & Diagnostics
• Secure Remote Access
Production
network
Production
network
Corporate
IT
Central data
backbones
Production
network
RFID
code
RFID
code
RFID code
RFID code
RFID
code
RFID code

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Comprehensive security
* Based on IEC 62443
• Copy and
manipulation protection
• Authentication and
user management
• Firewall & VPN (Virtual
Private Network)
• System “hardening”
Products and systems with integrated security
Industrial Security Services
Production
Facility
Security - “Defense in Depth”
Technical
measures
Guidelines,
organizational
measures
2
3
Risk Analysis
1
Evaluation &
improvement
4

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Big Data > Smart Data > Business Data
Siemens Plant Data Services Portfolio
Siemens Plant Security Services
• Holistic security offering
for industrial plants
• Ensuring data confidentiality and
integrity as well as plant and asset
availability
• Plant assessment
• Plant optimization
• Managed Security Service
Siemens Plant Analytics Services
• Plant and asset
optimisation through
• Asset Analytics
• Energy Analytics
• Process Data Analytics
Siemens Plant Cloud Services1)
• Open industrial cloud platform,
including standardised device
connectivity
• Eco-systems for customers and
analytics partners
• Siemens as “data custodian”
1) Currently only pilot customers

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Siemens industrial open cloud platform
based on SAP HANA technology
Optimisation of plants and machines
as well as energy and resources
• Open standard (OPC) for connectivity of
Siemens and third-party products
• Plug and play connection of Siemens
products (engineering in the TIA Portal)
• Cloud for industry with open application
interface for individual customer applications
• Optional cloud infrastructure – public cloud,
private cloud or on-premise solution
• Transparent pay-per-use pricing model
• Opportunities for completely new business
models (e. g. selling machine hours)
App dev. appsEnd customerCloud for industry apps OEM apps
apps
PLC’s Machine tools Drives Network
Devices
Process
Control
Third-party
products

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The future of Industry
Many teams are posed on the starting line
Don't wait for Industry 4.0, join the
challenge now and help to shape it!

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Today’s investments in Industry 4.0 – to beat global competition
Smart Products , Smart Factories , Smart Supply Chains
Summary
• Infrastructure Industrial Ethernet, wireless, IoT,
sm@rt data, mass customisation
• Virtualisation 3D CAD modeling, simulation,
supply chain data collaboration, zero prototyping
• Hybrid Skills for self optimising cyber-physical
manufacturing
Results
• Mass Customisation - batch sizes of 1
• Shorter Time to Market – zero prototyping
• Highly Flexible Manufacturing
• 30% increased productivity

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Factory of the Future R&D environments

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Thank you
Industry 4.0 - Vision to Reality