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How to survive the
Fourth Industrial Revolution
a 15-minute guide to Digital Manufacturing for SME decision makers
Briefing at a glance
Manufacturing is a major contributor to the UK economy.
We all agree that Manufacturing is vital to the health and prosperity of
the UK economy. But a new wave of digital technologies are about to
transform the sector. This will bring both challenges and opportunities.
As a decision maker within a Manufacturing SME or micro-enterprise,
it is crucial that you understand how these disruptive changes will impact
your business.
Trying to get to grips with all this detail can be a daunting task. So I
have put together this short guide to Digital Manufacturing for busy
managers and executives of SMEs and micro-enterprises.
This briefing encapsulates all of the key ideas that you need to begin
preparing your manufacturing business for the agile, data-driven,
world of the future. Good luck with the journey!
Bill Harpley
Founder and
Principal Consultant
bill.harpley@astius.co.uk
©2017 Astius Technology Systems Ltd215th February 2017
15th February 2017 ©2017 Astius Technology Systems Ltd3
Digital Manufacturing
What’s it all about?
The Fourth Industrial Revolution
15th February 2017 ©2017 Astius Technology Systems Ltd4
A remarkable range of new
technologies are evolving
towards commercialisation.
These technologies will
provide the basis for the jobs
and industries of the future.
Advanced manufacturing
processes will play a key role
in delivering social, economic
and environmental benefits.
Many commentators refer to
this transformation as the
Fourth Industrial Revolution.
UK Government policy
15th February 2017 ©2017 Astius Technology Systems Ltd5
UK Industrial Strategy
• Digital Manufacturing will play
an important role in
Government strategy for
innovation, exports and
regional economic growth
• The Green Paper published in
January 2017 sets out the case
for a new industrial strategy
• Promotion of manufacturing excellence is
supported by a number of Government
funded organisations.
• These provide Industry with:
• Partnerships and collaboration
• Funding opportunities
• Academic research
Two bold visions
15th February 2017 ©2017 Astius Technology Systems Ltd6
The Industrial Internet Consortium
was founded in March 2014 by a
number of major global companies:
 Cisco, IBM, Intel, General Electric
 It aims to foster the development
of industrial Internet applications
and technologies
 Its activities span a broad range of
industrial sectors such as Energy,
Transport and Manufacturing
Industrie 4.0 started life as a research
programme to promote the shift to
digital manufacturing by German
industry.
 It is concerned solely with the needs of
Manufacturing industry
 The initiative has enjoyed broad
support within the EU and other
industrialised regions of the world
 ‘Industry 4.0’ will be the focus of this
briefing as it is highly relevant to
developing the digital manufacturing
capabilities of SMEs within the UK
Why Industry 4.0 is important
15th February 2017 ©2017 Astius Technology Systems Ltd7
Did you know that the American city of Cincinnati has declared itself to be an “Industry 4.0
Demonstration City”? An official proclamation was signed by John Cranley, Mayor of Cincinnati
Major Industry 4.0 initiatives are happening in industrial centres around the world –
U.S. , China, Japan, Germany, Brazil – to name but a few
Here are just a few of the many reasons which Industry 4.0 is so important
to the future of Manufacturing
Flexible and
data-driven
production
processes will
foster innovation
and enable mass
customisation
Smart Products
will allow the
manufacturer to
understand how
products perform
in a customer
environment
It enables higher
productivity,
improvements in
quality, shorter
time to market
and new types of
business models
Digitization of the
entire value chain
will lead to the
‘upgrade’ of
entire sectors
(e.g. Automotive,
Aerospace)
Why we need Industry 4.0 in the UK
15th February 2017 ©2017 Astius Technology Systems Ltd8
UK businesses can play a lead role in both developing and
deploying Industry 4.0 technologies and systems
Industry 4.0 will help UK manufacturing companies remain
competitive in both domestic and export markets
The efficiency gains from Industry 4.0 may make it feasible to
‘reshore’ activities currently performed in low-cost countries
If UK manufacturers were to invest as much in Industry 4.0 as
their German counterparts, they could boost their revenues by
£20bn 1
1 Source: GAMBICA
GAMBICA
View the infographic
‘Industry 4.0 – the
opportunity for UK
Manufacturing’
15th February 2017 ©2017 Astius Technology Systems Ltd9
OK, it all sounds vaguely
interesting. So what are the
benefits to me and my business?
Turn the page and
discover why major
Manufacturers have
embraced Digital
Manufacturing.
The benefits of Transformation
Increased
Revenues
Greater
Customer
Satisfaction
Highly Skilled
Workforce
Agile Business
Processes
Growth
Mindset
Improved
Decision
Outcomes
Better Quality
Products
Greater Brand
Value
These are just a few of the glittering prizes which can arise
from successful transformation to Digital Manufacturing.
©2017 Astius Technology Systems Ltd1015th February 2017
15th February 2017 ©2017 Astius Technology Systems Ltd11
Digital Manufacturing
What does it look like?
The building blocks of Digital Manufacturing
15th February 2017 ©2017 Astius Technology Systems Ltd12
Digital
Manufacturing
Digital
Technologies
The core
pillars of
Industry 4.0
New Business
Models
Culture and
Strategy
Let’s take a look at
each of these in turn
Digital Technologies
15th February 2017 ©2017 Astius Technology Systems Ltd13
Technology
Drivers
Robotics
Simulation
Digital
Communications
Cloud
Computing
Additive
Manufacturing
Virtual /
Augmented
Reality
Big Data
and
Analytics
Sensors and
Data
Acquisition
Novel
Materials
These are the key
technologies which
are driving
Manufacturing
towards the Fourth
Industrial Revolution
The core pillars of Industry 4.0
15th February 2017 ©2017 Astius Technology Systems Ltd14
Advanced
Automation
Seamless
Connectivity
Sophisticated
Data Analytics
Industrial
Cybersecurity
Industry 4.0 takes
automation to new
heights. Intelligent
machines and smart
components work
together to create a
highly efficient
workflow.
Machines, databases
and production plants
are all connected
together via a digital
network. This enables
efficient scheduling and
co-ordination across the
entire value chain.
Production plants
generate vast quantities
of data. Analytics
enables engineers and
managers to exploit the
hidden value in data. For
example, to predict
failure of equipment.
Greater levels of
connectivity increase the
risk of cyber-attacks.
Cyber-physical security is
a core element of
Industry 4.0. Assess level
of threat and implement
effective policies.
New business models
15th February 2017 ©2017 Astius Technology Systems Ltd15
Customers
Suppliers
Internal
Stakeholders
Partners
Product
Product Service
Service
Product
only
Service
only
Product +
Service
Designing intelligence into products
opens up the possibility of using data to
create new revenue streams and
business models.
EXPLORE NEW WAYS TO CREATE VALUE.
Culture and Strategy
15th February 2017 ©2017 Astius Technology Systems Ltd16
“Culture eats
strategy for
breakfast.”
• Strategy exists on paper
• Culture determines how
things really get done
Value
Propositions
Business
Models
Customers
Markets
Products
Always remember that for your Industry 4.0 strategy to succeed, it needs to be
accompanied by a programme of change management for:
• Organisational culture
• Processes
• Skills and responsibilities
15th February 2017 ©2017 Astius Technology Systems Ltd17
OK, I’m with you so far.
But how do I get started with
transforming my business into a
Digital Manufacturing company?
Turn the page and
discover how to take
your first steps on the
road to a Digital
Manufacturing future.
15th February 2017 ©2017 Astius Technology Systems Ltd18
Digital Manufacturing
Let’s get started
Where are you on the journey?
15th February 2017 ©2017 Astius Technology Systems Ltd19
“Where do
I begin?”
“We are thinking
about it.”
“We have just
launched our first
pilot project.”
“We’ve just
transitioned
our first pilot
to Production.”
“We are
extremely proud
of what we have
achieved!”
“It’s of no
interest to me
or my company.”
“We have
a plan!”
Let’s learn
more about
Industry 4.0
The six capabilities of Industry 4.0
15th February 2017 ©2017 Astius Technology Systems Ltd20
Use these key capabilities to assess your readiness for Industry 4.0
Strategy, organisation
and culture are
crucial to adoption of
Digital Manufacturing
STRATEGY AND
ORGANISATION
Highly automated
distributed
manufacturing
processes are at the
heart of the Smart
Factory concept
SMART FACTORY
Efficient workflow is
enabled by building
‘intelligence’ into
both machines and
components
SMART
OPERATIONS
Physical products are
equipped with
sensors and
connectivity to
enable value-added
services
Data-driven
processes are used to
design new business
models and revenue
streams
Developing a skilled
and well qualified
workforce is essential
to implementation
SMART
PRODUCTS
BUSINESS
MODELS
WORKFORCE
EXPERTISE
Assess your current capabilities
15th February 2017 ©2017 Astius Technology Systems Ltd21
Each key Industry 4.0 capability is composed
of a set of business functions
You can use the Industry 4.0 capability wheel
to create your own scorecard in order to set
a baseline for improvement
Assess your current state of readiness with
the help of an external consultant or use the
free Impulse online assessment tool
Your long-term goal should be to build a
complete set of Industry 4.0 capabilities
across your Manufacturing business
Source: adapted from Impulse
Industrie 4.0 readiness model
Now get ready to
define your current
state of Industry 4.0
readiness
15th February 2017 ©2017 Astius Technology Systems Ltd22
In the next slide you will see a table which allows
you to estimate your current level of readiness for
Industry 4.0
• It takes each of the key capabilities which you have just
learned about and allows you to assign a score to each of
them
• Scores are in the range of 0 to 5, each indicating how far
you are along the road to successful implementation of
Industry 4.0
Industry 4.0 capability matrix
15th February 2017 ©2017 Astius Technology Systems Ltd23
CAPABILITY
LEVEL
Strategy &
Organisation
Smart
Factory
Smart
Operation
Smart
Products
Business
Models
Workforce
Expertise
LEVEL
0 Bystander
1 Beginner
2 Intermediate
3 Experienced
4 Expert
5 Leader
• Level 0 is for companies which have so far done nothing to prepare for Industry 4.0
• Level 5 is for companies which have successfully implemented all Industry 4.0 activities
Source: adapted from Impulse
Industrie 4.0 readiness model
Defining the ‘new normal’
15th February 2017 ©2017 Astius Technology Systems Ltd24
Select a capability
which needs
improvement
Develop an
hypothesis
Design your
experiment
Run your
experiment
Evaluate the
outcome
If hypothesis is correct,
this becomes the new
desired operating state
Choose either of:
•Refine the hypothesis and
repeat the experiment
•Accept hypothesis is false
and abandon experiment
Start here SMEs tend to have limited
expertise and resources.
So how do you improve your
Industry 4.0 capabilities?
The answer is ‘experiments’
• Select a capability which needs
improvement
• If you could achieve this level of
performance, it would become the
‘new normal’
Design a set of experiments
which will test the feasibility of
your idea
• Run the experiments and evaluate the
results
• If it is a success, this will be the
‘new normal’ mode of operation
• If it fails, refine and repeat the trial or
move on to the next experiment
An example: predicting failure
15th February 2017 ©2017 Astius Technology Systems Ltd25
CAPABILITY:
“I want to provide my
customers with
Smarter products.”
HYPOTHESIS:
“If I monitor Big Pump
using sensors, I will be able
to predict failures.”
DESIGN EXPERIMENT
- Install vibration sensors on
Big Pump
- Collect the data
- Analyse the data
Run the experiment
for six weeks
Analyse the data
and verify your
initial hypothesis
YES, the experiment
has shown we can
predict possible
failures of Big Pump.
Choose either of:
•NO, experiment has clearly
shown that is not feasible to
predict failure of Big Pump
• MAYBE, let’s tweak the
experiment and run it again
Start here Running these types of
experiments brings many
benefits:
 Increased skills and
knowledge
 Measurable outcomes
 Great feeling of confidence
CONGRATULATIONS
If you were to engage in such
a successful experiment then
you would have increased
your Industry 4.0 ‘Smart
Products’ capability rating
Level 0
(Bystander)
Level 1
(Beginner)
Track your progress
15th February 2017 ©2017 Astius Technology Systems Ltd26
CAPABILITY
LEVEL
Strategy &
Organisation
Smart
Factory
Smart
Operation
Smart
Products
Business
Models
Workforce
Expertise
LEVEL
0 Bystander
1 Beginner
2 Intermediate
3 Experienced
4 Expert
5 Leader
As your expertise and confidence grows, use the capability matrix to track your progress
towards complete Industry 4.0 implementation
Let’s talk about skills
15th February 2017 ©2017 Astius Technology Systems Ltd27
Building new digital capabilities for your
business requires investment in Skills
You need to initiate a programme of talent
acquisition and development
The benefits of doing this are legion:
 Opportunities to create apprenticeships for
young people
 Attract a more diverse workforce
 Create high-quality career opportunities for
engineers, managers and executive staff
 Enhance the reputation of your business as a
forward-thinking organisation
Take a balanced approach
15th February 2017 ©2017 Astius Technology Systems Ltd28
DOWNSIDE
There are significant
challenges and risks
associated with the
move to Industry 4.0
UPSIDE
A programme of
managed change
will transform your
organisation into a
21st century Digital
Manufacturing business
Using the scorecard approach described in this document will maximise your chances of
implementing a successful programme and contain the risks within identifiable bounds.
The benefits of Industry 4.0
Increased
Revenues
Greater
Customer
Satisfaction
Highly Skilled
Workforce
Agile Business
Processes
Growth
Mindset
Improved
Decision
Outcomes
Better Quality
Products
Greater Brand
Value
We have seen this slide earlier in the presentation. But now you understand the basic ideas
behind Industry 4.0, it will repay a second viewing.
©2017 Astius Technology Systems Ltd2915th February 2017
15th February 2017 ©2017 Astius Technology Systems Ltd30
OK, you’ve convinced me!
But for an SME, it looks like a
huge challenge. Where can I get
help with my Industry 4.0
initiative?
Turn the page and
discover how to get
help with your project.
15th February 2017 ©2017 Astius Technology Systems Ltd31
Digital Manufacturing
Get help with your Industry 4.0 project
How to survive the
Fourth Industrial Revolution
However, we never said it
would be easy …
Go it alone if you want to.
• But remember that failure is
always an option!
• A skilled consultant can bring
vision, impartiality and vital
expertise to the project
But which partner to choose?
©2017 Astius Technology Systems Ltd3215th February 2017
We hope you feel inspired to
pursue your dream
 Learn about Industry 4.0
 Commit to a plan
 Implement your pilot project
 Design your new business model
 Transition into production
 Track your progress ……
Now it starts to look complicated!
Why choose
Astius Technology
for your project?
How to choose a
Consulting Partner
Deep knowledge of Industry 4.0
Three things to look for Three things to avoid
Visionary
thinking
Narrow focus on ‘automation’
Understands challenges faced by
SMEs in Manufacturing sector
Clear vision of how digital manufacturing
will transform your business
Solutions which lock you in to a
particular vendor
Lacks candour and tells you only
what they think you want to hear
©2017 Astius Technology Systems Ltd3315th February 2017
Brilliant
technology
Design for
people
Business
focused
Take an independent view
15th February 2017 ©2017 Astius Technology Systems Ltd34
The Engineering Employers
Federation (EEF) have many useful
resources on the subject of Digital
Manufacturing and the ‘Fourth
Industrial Revolution’
https://www.eef.org.uk/campaignin
g/campaigns-and-issues/current-
campaigns/industrial-strategy
Read the IMechE and BDO report
from June 2016
‘Lack of understanding of Industry
4.0 will hold back UK
manufacturing’
Manufacturing matters
©2017 Astius Technology Systems Ltd3515th February 2017
Talk to us
We are ready to help
01273 906507
bill.harpley@astius.co.uk
Manufacturing
business will
experience
monumental change
over the next decade.
With our visionary
thinking and
technology know-how,
we can help you make
the most of this
remarkable
opportunity.
Digital Manufacturing matters even more
Advanced System Technologies
in Urban Spaces™
©2017 Astius Technology Systems Ltd3615th February 2017

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How to survive the Fourth Industrial Revolution: a guide to Digital Manufacturing for SME decision makers

  • 1. How to survive the Fourth Industrial Revolution a 15-minute guide to Digital Manufacturing for SME decision makers
  • 2. Briefing at a glance Manufacturing is a major contributor to the UK economy. We all agree that Manufacturing is vital to the health and prosperity of the UK economy. But a new wave of digital technologies are about to transform the sector. This will bring both challenges and opportunities. As a decision maker within a Manufacturing SME or micro-enterprise, it is crucial that you understand how these disruptive changes will impact your business. Trying to get to grips with all this detail can be a daunting task. So I have put together this short guide to Digital Manufacturing for busy managers and executives of SMEs and micro-enterprises. This briefing encapsulates all of the key ideas that you need to begin preparing your manufacturing business for the agile, data-driven, world of the future. Good luck with the journey! Bill Harpley Founder and Principal Consultant bill.harpley@astius.co.uk ©2017 Astius Technology Systems Ltd215th February 2017
  • 3. 15th February 2017 ©2017 Astius Technology Systems Ltd3 Digital Manufacturing What’s it all about?
  • 4. The Fourth Industrial Revolution 15th February 2017 ©2017 Astius Technology Systems Ltd4 A remarkable range of new technologies are evolving towards commercialisation. These technologies will provide the basis for the jobs and industries of the future. Advanced manufacturing processes will play a key role in delivering social, economic and environmental benefits. Many commentators refer to this transformation as the Fourth Industrial Revolution.
  • 5. UK Government policy 15th February 2017 ©2017 Astius Technology Systems Ltd5 UK Industrial Strategy • Digital Manufacturing will play an important role in Government strategy for innovation, exports and regional economic growth • The Green Paper published in January 2017 sets out the case for a new industrial strategy • Promotion of manufacturing excellence is supported by a number of Government funded organisations. • These provide Industry with: • Partnerships and collaboration • Funding opportunities • Academic research
  • 6. Two bold visions 15th February 2017 ©2017 Astius Technology Systems Ltd6 The Industrial Internet Consortium was founded in March 2014 by a number of major global companies:  Cisco, IBM, Intel, General Electric  It aims to foster the development of industrial Internet applications and technologies  Its activities span a broad range of industrial sectors such as Energy, Transport and Manufacturing Industrie 4.0 started life as a research programme to promote the shift to digital manufacturing by German industry.  It is concerned solely with the needs of Manufacturing industry  The initiative has enjoyed broad support within the EU and other industrialised regions of the world  ‘Industry 4.0’ will be the focus of this briefing as it is highly relevant to developing the digital manufacturing capabilities of SMEs within the UK
  • 7. Why Industry 4.0 is important 15th February 2017 ©2017 Astius Technology Systems Ltd7 Did you know that the American city of Cincinnati has declared itself to be an “Industry 4.0 Demonstration City”? An official proclamation was signed by John Cranley, Mayor of Cincinnati Major Industry 4.0 initiatives are happening in industrial centres around the world – U.S. , China, Japan, Germany, Brazil – to name but a few Here are just a few of the many reasons which Industry 4.0 is so important to the future of Manufacturing Flexible and data-driven production processes will foster innovation and enable mass customisation Smart Products will allow the manufacturer to understand how products perform in a customer environment It enables higher productivity, improvements in quality, shorter time to market and new types of business models Digitization of the entire value chain will lead to the ‘upgrade’ of entire sectors (e.g. Automotive, Aerospace)
  • 8. Why we need Industry 4.0 in the UK 15th February 2017 ©2017 Astius Technology Systems Ltd8 UK businesses can play a lead role in both developing and deploying Industry 4.0 technologies and systems Industry 4.0 will help UK manufacturing companies remain competitive in both domestic and export markets The efficiency gains from Industry 4.0 may make it feasible to ‘reshore’ activities currently performed in low-cost countries If UK manufacturers were to invest as much in Industry 4.0 as their German counterparts, they could boost their revenues by £20bn 1 1 Source: GAMBICA GAMBICA View the infographic ‘Industry 4.0 – the opportunity for UK Manufacturing’
  • 9. 15th February 2017 ©2017 Astius Technology Systems Ltd9 OK, it all sounds vaguely interesting. So what are the benefits to me and my business? Turn the page and discover why major Manufacturers have embraced Digital Manufacturing.
  • 10. The benefits of Transformation Increased Revenues Greater Customer Satisfaction Highly Skilled Workforce Agile Business Processes Growth Mindset Improved Decision Outcomes Better Quality Products Greater Brand Value These are just a few of the glittering prizes which can arise from successful transformation to Digital Manufacturing. ©2017 Astius Technology Systems Ltd1015th February 2017
  • 11. 15th February 2017 ©2017 Astius Technology Systems Ltd11 Digital Manufacturing What does it look like?
  • 12. The building blocks of Digital Manufacturing 15th February 2017 ©2017 Astius Technology Systems Ltd12 Digital Manufacturing Digital Technologies The core pillars of Industry 4.0 New Business Models Culture and Strategy Let’s take a look at each of these in turn
  • 13. Digital Technologies 15th February 2017 ©2017 Astius Technology Systems Ltd13 Technology Drivers Robotics Simulation Digital Communications Cloud Computing Additive Manufacturing Virtual / Augmented Reality Big Data and Analytics Sensors and Data Acquisition Novel Materials These are the key technologies which are driving Manufacturing towards the Fourth Industrial Revolution
  • 14. The core pillars of Industry 4.0 15th February 2017 ©2017 Astius Technology Systems Ltd14 Advanced Automation Seamless Connectivity Sophisticated Data Analytics Industrial Cybersecurity Industry 4.0 takes automation to new heights. Intelligent machines and smart components work together to create a highly efficient workflow. Machines, databases and production plants are all connected together via a digital network. This enables efficient scheduling and co-ordination across the entire value chain. Production plants generate vast quantities of data. Analytics enables engineers and managers to exploit the hidden value in data. For example, to predict failure of equipment. Greater levels of connectivity increase the risk of cyber-attacks. Cyber-physical security is a core element of Industry 4.0. Assess level of threat and implement effective policies.
  • 15. New business models 15th February 2017 ©2017 Astius Technology Systems Ltd15 Customers Suppliers Internal Stakeholders Partners Product Product Service Service Product only Service only Product + Service Designing intelligence into products opens up the possibility of using data to create new revenue streams and business models. EXPLORE NEW WAYS TO CREATE VALUE.
  • 16. Culture and Strategy 15th February 2017 ©2017 Astius Technology Systems Ltd16 “Culture eats strategy for breakfast.” • Strategy exists on paper • Culture determines how things really get done Value Propositions Business Models Customers Markets Products Always remember that for your Industry 4.0 strategy to succeed, it needs to be accompanied by a programme of change management for: • Organisational culture • Processes • Skills and responsibilities
  • 17. 15th February 2017 ©2017 Astius Technology Systems Ltd17 OK, I’m with you so far. But how do I get started with transforming my business into a Digital Manufacturing company? Turn the page and discover how to take your first steps on the road to a Digital Manufacturing future.
  • 18. 15th February 2017 ©2017 Astius Technology Systems Ltd18 Digital Manufacturing Let’s get started
  • 19. Where are you on the journey? 15th February 2017 ©2017 Astius Technology Systems Ltd19 “Where do I begin?” “We are thinking about it.” “We have just launched our first pilot project.” “We’ve just transitioned our first pilot to Production.” “We are extremely proud of what we have achieved!” “It’s of no interest to me or my company.” “We have a plan!” Let’s learn more about Industry 4.0
  • 20. The six capabilities of Industry 4.0 15th February 2017 ©2017 Astius Technology Systems Ltd20 Use these key capabilities to assess your readiness for Industry 4.0 Strategy, organisation and culture are crucial to adoption of Digital Manufacturing STRATEGY AND ORGANISATION Highly automated distributed manufacturing processes are at the heart of the Smart Factory concept SMART FACTORY Efficient workflow is enabled by building ‘intelligence’ into both machines and components SMART OPERATIONS Physical products are equipped with sensors and connectivity to enable value-added services Data-driven processes are used to design new business models and revenue streams Developing a skilled and well qualified workforce is essential to implementation SMART PRODUCTS BUSINESS MODELS WORKFORCE EXPERTISE
  • 21. Assess your current capabilities 15th February 2017 ©2017 Astius Technology Systems Ltd21 Each key Industry 4.0 capability is composed of a set of business functions You can use the Industry 4.0 capability wheel to create your own scorecard in order to set a baseline for improvement Assess your current state of readiness with the help of an external consultant or use the free Impulse online assessment tool Your long-term goal should be to build a complete set of Industry 4.0 capabilities across your Manufacturing business Source: adapted from Impulse Industrie 4.0 readiness model Now get ready to define your current state of Industry 4.0 readiness
  • 22. 15th February 2017 ©2017 Astius Technology Systems Ltd22 In the next slide you will see a table which allows you to estimate your current level of readiness for Industry 4.0 • It takes each of the key capabilities which you have just learned about and allows you to assign a score to each of them • Scores are in the range of 0 to 5, each indicating how far you are along the road to successful implementation of Industry 4.0
  • 23. Industry 4.0 capability matrix 15th February 2017 ©2017 Astius Technology Systems Ltd23 CAPABILITY LEVEL Strategy & Organisation Smart Factory Smart Operation Smart Products Business Models Workforce Expertise LEVEL 0 Bystander 1 Beginner 2 Intermediate 3 Experienced 4 Expert 5 Leader • Level 0 is for companies which have so far done nothing to prepare for Industry 4.0 • Level 5 is for companies which have successfully implemented all Industry 4.0 activities Source: adapted from Impulse Industrie 4.0 readiness model
  • 24. Defining the ‘new normal’ 15th February 2017 ©2017 Astius Technology Systems Ltd24 Select a capability which needs improvement Develop an hypothesis Design your experiment Run your experiment Evaluate the outcome If hypothesis is correct, this becomes the new desired operating state Choose either of: •Refine the hypothesis and repeat the experiment •Accept hypothesis is false and abandon experiment Start here SMEs tend to have limited expertise and resources. So how do you improve your Industry 4.0 capabilities? The answer is ‘experiments’ • Select a capability which needs improvement • If you could achieve this level of performance, it would become the ‘new normal’ Design a set of experiments which will test the feasibility of your idea • Run the experiments and evaluate the results • If it is a success, this will be the ‘new normal’ mode of operation • If it fails, refine and repeat the trial or move on to the next experiment
  • 25. An example: predicting failure 15th February 2017 ©2017 Astius Technology Systems Ltd25 CAPABILITY: “I want to provide my customers with Smarter products.” HYPOTHESIS: “If I monitor Big Pump using sensors, I will be able to predict failures.” DESIGN EXPERIMENT - Install vibration sensors on Big Pump - Collect the data - Analyse the data Run the experiment for six weeks Analyse the data and verify your initial hypothesis YES, the experiment has shown we can predict possible failures of Big Pump. Choose either of: •NO, experiment has clearly shown that is not feasible to predict failure of Big Pump • MAYBE, let’s tweak the experiment and run it again Start here Running these types of experiments brings many benefits:  Increased skills and knowledge  Measurable outcomes  Great feeling of confidence CONGRATULATIONS If you were to engage in such a successful experiment then you would have increased your Industry 4.0 ‘Smart Products’ capability rating Level 0 (Bystander) Level 1 (Beginner)
  • 26. Track your progress 15th February 2017 ©2017 Astius Technology Systems Ltd26 CAPABILITY LEVEL Strategy & Organisation Smart Factory Smart Operation Smart Products Business Models Workforce Expertise LEVEL 0 Bystander 1 Beginner 2 Intermediate 3 Experienced 4 Expert 5 Leader As your expertise and confidence grows, use the capability matrix to track your progress towards complete Industry 4.0 implementation
  • 27. Let’s talk about skills 15th February 2017 ©2017 Astius Technology Systems Ltd27 Building new digital capabilities for your business requires investment in Skills You need to initiate a programme of talent acquisition and development The benefits of doing this are legion:  Opportunities to create apprenticeships for young people  Attract a more diverse workforce  Create high-quality career opportunities for engineers, managers and executive staff  Enhance the reputation of your business as a forward-thinking organisation
  • 28. Take a balanced approach 15th February 2017 ©2017 Astius Technology Systems Ltd28 DOWNSIDE There are significant challenges and risks associated with the move to Industry 4.0 UPSIDE A programme of managed change will transform your organisation into a 21st century Digital Manufacturing business Using the scorecard approach described in this document will maximise your chances of implementing a successful programme and contain the risks within identifiable bounds.
  • 29. The benefits of Industry 4.0 Increased Revenues Greater Customer Satisfaction Highly Skilled Workforce Agile Business Processes Growth Mindset Improved Decision Outcomes Better Quality Products Greater Brand Value We have seen this slide earlier in the presentation. But now you understand the basic ideas behind Industry 4.0, it will repay a second viewing. ©2017 Astius Technology Systems Ltd2915th February 2017
  • 30. 15th February 2017 ©2017 Astius Technology Systems Ltd30 OK, you’ve convinced me! But for an SME, it looks like a huge challenge. Where can I get help with my Industry 4.0 initiative? Turn the page and discover how to get help with your project.
  • 31. 15th February 2017 ©2017 Astius Technology Systems Ltd31 Digital Manufacturing Get help with your Industry 4.0 project
  • 32. How to survive the Fourth Industrial Revolution However, we never said it would be easy … Go it alone if you want to. • But remember that failure is always an option! • A skilled consultant can bring vision, impartiality and vital expertise to the project But which partner to choose? ©2017 Astius Technology Systems Ltd3215th February 2017 We hope you feel inspired to pursue your dream  Learn about Industry 4.0  Commit to a plan  Implement your pilot project  Design your new business model  Transition into production  Track your progress …… Now it starts to look complicated!
  • 33. Why choose Astius Technology for your project? How to choose a Consulting Partner Deep knowledge of Industry 4.0 Three things to look for Three things to avoid Visionary thinking Narrow focus on ‘automation’ Understands challenges faced by SMEs in Manufacturing sector Clear vision of how digital manufacturing will transform your business Solutions which lock you in to a particular vendor Lacks candour and tells you only what they think you want to hear ©2017 Astius Technology Systems Ltd3315th February 2017 Brilliant technology Design for people Business focused
  • 34. Take an independent view 15th February 2017 ©2017 Astius Technology Systems Ltd34 The Engineering Employers Federation (EEF) have many useful resources on the subject of Digital Manufacturing and the ‘Fourth Industrial Revolution’ https://www.eef.org.uk/campaignin g/campaigns-and-issues/current- campaigns/industrial-strategy Read the IMechE and BDO report from June 2016 ‘Lack of understanding of Industry 4.0 will hold back UK manufacturing’
  • 35. Manufacturing matters ©2017 Astius Technology Systems Ltd3515th February 2017 Talk to us We are ready to help 01273 906507 bill.harpley@astius.co.uk Manufacturing business will experience monumental change over the next decade. With our visionary thinking and technology know-how, we can help you make the most of this remarkable opportunity. Digital Manufacturing matters even more
  • 36. Advanced System Technologies in Urban Spaces™ ©2017 Astius Technology Systems Ltd3615th February 2017