Ineke Dezentjé Hamming-Bleumink President FME Moderator

Arnold Stokking Managing Director TNO Industrial Innovation

Dutch Industry, fit for the future ?!

smart industry agenda

Our world is changing…   and so our industry….   with impact on economy and society

The changing face of industry and society

Manufacturing industry in Europe has declined in the last decade.

Industry is backbone of Dutch economy Economic impact of manufacturing: Direct impact: 68 billion Euro 13% of GDP in 2012 Total impact, including 50 billion euro indirect: 118 billion Euro = 22% of GDP. Export: 50% of total production in manufacturing industry is exported. Over 80% of total exported goods (without re-export) comes from manufacturing industries. Germany is the main export country: 25% of the total exported goods. Jobs: 10% of Dutch workforce in manufacturing industry: 825,000 people. Total impact, including 7,5 % related jobs: 17,5% = 1,450,000 people.

Wold wide investments in New Industry

Dutch Industry wants to keep its competitive advantage Æ an initiative is needed

Smart Industry Smart Industries are industries that have a high degree of flexibility in production, in terms of: • product needs (specifications, quality, design), • volume (what is needed), timing (when it is needed), • resource efficiency and cost (what is required), • being able to (fine)tune to customer needs and make use of the

entire supply chain for value creation. It is enabled by a network-centric approach, making use of the value of information, driven by ICT and the latest available proven manufacturing techniques.

Network Centric Production: information as main source for value creation

Enabled by new, converging technologies No single technology or technology domain governs the Smart Industry revolution. There is an alignment and convergence of rapid progress in multiple domains. Technologies are: • the Internet of Things, • next generation adaptive robots, • 3D printing, • further integration of embedded systems, • smart grid technologies, • man-machine interfaces, • Cyber Physical Systems, • advanced sensors, • big data and cloud computing, • zero defect manufacturing.

Smart changing industry and society New business models

New products and services

Radical changes in the value chain of book production & selling

Changes in retail sector and jobs…

..this will happen in other sectors also.

Opportunities and threats There are clear opportunities: • Smart Industry can enable leading competitive Dutch

industry sectors like High Tech, Chemicals, Logistics and Agrofood strengthen their international positions.

• Dutch industry is highly internationally oriented, we have an advantage in connecting to other countries.

But there are also threats to be countered: • The human capital agenda • Radical changes of structures in different sectors

We have a right to play • Dutch  companies  are  actively  implementing  ‘smart’  

manufacturing technologies to retain their competitive advantage • The open and non-hierarchical business culture provides

opportunities to develop the network centric way of production.

But extra effort is required:

• The mutual understanding and value creation between the ICT and manufacturing industries is insufficient.

• Although knowledge on the different domains relevant to Smart Industries is present, additional efforts are needed to create integrated solutions, new business and new companies.

Smart Industry Æ deepening the Dutch strength in system integration

Outline Smart Industry Agenda 1. New Business with Smart Industry: boost on available

knowledge and current best practises.

2. New Knowledge with impact for Smart Industry: boost on new (integrated) knowledge development and R&D investment.

3. New Skills for Smart Industry: skilling up and educating current and future employees.

4. Supporting Policies for Smart Industry: make it happen.

Marc Hendrikse President Brainport Industries CEO NTS Group

19

Towards an integrated supply network Showcase Brainport Industries Marc Hendrikse Chairman Brainport Industries, CEO NTS Group John Blankendaal Managing Director Brainport Industries

20 Market focus of Brainport Industries

PHOTO VOLTAIC PRINTING ANALYTICAL MEDICAL

High mix, low volume, high complexity

SEMICON

21 Industry  4.0…?

Volume

Complexity

CD players

Mobile phones

Cars

Trucks

Hightech Equipment

Airplanes

22 This high-tech  world  is  changing  … • World wide competition

• Increasing complexity

• Flexibility and agility demanded

• Shorter product life cycles

• Upfront investment for new product development grows

• Pool of technical talent shrinks

• Cost price pressure

• Higher quality levels required

Market share US: 2009: 50%, 2013: 2%

Global market share: 2007: 50%, 2013: 3%

23 The answer is to be found in the supply chain

• Value chains compete instead of individual companies

• Supply chain is designed to outsource non-core activities or functionalities

• Cooperation within high intelligent networks is the model for the future

• The supply chain opens itself and takes more responsibility

Source: ASML Sustainability Report 2009

24 Classic way of outsourcing

1. Research & Development

3. Prototyping & Industrialization

4. Component production

5. System integratio

n

6. Sales & Service

2. Design & Engineering

1980: OEM VALUE CHAIN

• Subcontracting of component production only with different suppliers

25 Recent development in outsourcing

1. Research & Development

4. Component production

6. Sales & Service

2. Design & Engineering

3. Prototyping & Industrialization

5. System integration

Process Development

Sub-Assemblies Components

Supply Chain Management

Sourcing & Life Cycle Mngt.

2000: OUTSOURCING PART OF THE VALUE CHAIN

• Outsourcing core processes including Process Development

• Outsourcing support processes like Supply Chain Management, Sourcing and Life Cycle Management

26 The near future of outsourcing

1st Tier

1. Research & Development

3. Prototyping & Industrialization

4. Component production

5. System integration

6. Sales & Service

Sub-Assemblies

Components

Systems

2nd Tier

3rd Tier

2. Design & Engineering

Process Development

Project Management & Staffing

Quality Assurance

Business Model Development, Financing & Funding

Sourcing & Life Cycle Management

Supply Chain Management

2020: OPEN SUPPLY CHAIN

• OEM transform to lean companies

27 Suppliers teamed up to create…

- 85 members - € 2 billion turnover - 9000 fte

28 Addlab (shared 3D metal print facility)

• KMWE • NTS-Group • Frencken Europe • Machinefabriek De Valk • FMI • MTA • Philips Innovation

Services • De Lage Landen

29 Smart Industry

• Early supplier involvement • Working  with  OEM’s  in  joint  development  teams • Sharing CAD systems • Model based engineering • Using PLM systems in life cycle • Sustaining engineering during life cycle • Full transparency in the chain • Suppliers working together in pre competitive

projects

30 Charles Darwin

Proudly stolen from the Origin of Species, 1859

It is not the strongest nor the most intelligent of the species that survives but the one that is the most adaptable to change.

31 34

Thank you for your attention

32

Marion Horstmann Head of Strategy Siemens Industry

siemens.com/hannovermesse Unrestricted © Siemens AG 2014. All rights reserved.

The Future of Industry

Smart Industry – Dutch Industry fit for the Future | April 9, 2014

April 9, 2014

Unrestricted © Siemens AG 2014. All rights reserved.

Page 35 Marion Horstmann/Industry Sector

Our approach Covering the entire product development and production process

Product design

Production planning

Production engineering

Production execution

Service

1 2

3 4 5

Integrated product development and production processes increase productivity, efficiency and flexibility in modern manufacturing

Unrestricted © Siemens AG 2014. All rights reserved.

April 9, 2014 Page 36 Marion Horstmann/Industry Sector

Making things right Siemens at Hannover Messe 2014

Design

Planning

Engineering

Production

Services

Unrestricted © Siemens AG 2014. All rights reserved.

April 9, 2014 Page 37 Marion Horstmann/Industry Sector

Today’s  portfolio:  Industrie 3.X

Vision for the future: Industrie 4.0

•Massively extended semantics in M2M communications •Rule framework and architecture for dynamic topologies • Integrated process simulation "We need five doors"

"Checking process completed"

"Car body identified"

I am robot 1

I am the conveyor

"Optimization reduced tact time by 10%"

"Simulate and optimize operation"

I am robot 2 I am robot 3

I am the car body

From Industrie 3.X to Industrie 4.0

Rob Karsmakers Site Manager Philips Consumer Lifestyle Drachten

Jan Post, Philips CL Rob Snel, TNO

Hannover Messe, April 9th 2014

2014-04-09 Consortium Confidential 42

MEGaFiT

The work leading to these results has received funding from the European Community`s Seventh Framework Programme under grant agreement n° FP7-285030

Adaptive process control to realise Zero Defect manufacturing of complex high-precision metal parts.

2014-04-09 Consortium Confidential 43

MEGaFiT

The work leading to these results has received funding from the European Community`s Seventh Framework Programme under grant agreement n° FP7-285030

The state of the art: production & quality control of mass produced goods

Metal strip •µm accuracy •Off-line

Proces control hours

Measurement lab Production

Physics modelling

Products

samples

2014-04-09 Consortium Confidential 44

MEGaFiT

The work leading to these results has received funding from the European Community`s Seventh Framework Programme under grant agreement n° FP7-285030

The innovation: 100% in line quality control of mass produced goods • Demonstration by cold forming of metals @ 100 parts/minute • Real time extraction of shape parameters with µm accuracy • Proces feedback ensures manufacturing quality  →  Zero Defect

2014-04-09 Consortium Confidential 45

MEGaFiT

The work leading to these results has received funding from the European Community`s Seventh Framework Programme under grant agreement n° FP7-285030

2014-04-09 Consortium Confidential 46

MEGaFiT

The work leading to these results has received funding from the European Community`s Seventh Framework Programme under grant agreement n° FP7-285030

The benefit: generated by the 3D sensor

• The 3D sensor becomes available for in line quality control for a wide

range of industrial end-users. Zero Defect production means better competitive products and less waste of resources.

• The  3D  sensor  technology  is  being  transferred  to  SME  companies.  SME’s  sell an innovative metrology product. Create sustainable jobs.

• Knowledge spill over: we all get smarter by cooperation in the golden triangle of government, companies and knowledge institutions.

Thank you for your attention!

Jasper Wesseling Deputy director-general Ministry of Economic Affairs