ignite 2015 valentijn de leeuw - industry 4.0: the industrial internet of things
TRANSCRIPT
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The Contribution of Supply Chain Networks
Smart Manufacturing and Industrial IoT
Elemica Ignite Sept 15th, 2015
Valentijn de Leeuw Vice President
ARC Advisory Group [email protected]
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2 © ARC Advisory Group
What ARC Does
t ARC helps Suppliers • Accelerate Revenue Growth & Manage Costs • Bring Products & Services to Market Faster and more
Effectively t ARC helps Industrial Companies
• Understand the Value of Emerging Technologies • Choose Appropriate Suppliers for their Unique Needs • Implement Operational Best Practices
Blog: Newsletter: http://industrial-iot.com http://industrial-iot.com/subscribe-to-newsletter/
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Contents
1. Smart Manufacturing for economic growth 2. Key Initiatives SMLC, Industrie 4.0 and Horizon 2020
Innovator’s IIoT application examples Their implications for supply chain networks
3. New approaches to analytics Supply Chain analytics
4. Human-machine integration The role of the Human in all this?
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Smart manufacturing: the growth strategy?
t Manufacturing fuels the supply chain t Smart Manufacturing increases manufacturing
growth
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Manufacturing growth and competitiveness
Manufacturing Resilience Competitiveness Growth
High degree of Technology intensity Technology/manufacturing complexity Quality
DE
Complexity index 2010 versus 1995
SE UK
FR IT
ES
Impacted by Smart Manufacturing
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Smart Manufacturing Initiatives
Smart Manufacturing Leadership Coalition (US) (High Value Manufacturing) Catapult (UK) Industrial Internet Consortium (International) Industrie 4.0 (Germany, Intl.) Industrie du Futur (France) Horizon 2020 (EU)
SPIRE (Sustainable process industries by Resource and Energy Efficiency Factory of the Future
Alliance for IoT Innovation (EU) Confederation of Indian Industries’ Smart Manufacturing (India) Made in China 2025 (China)
Different visions for different outcomes
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vo•cab•u•la•ry (vō-kăbˈyə-lĕrˌē)
t Smart Manufacturing • Advanced Manufacturing
• …
• Smart Manufacturing Technologies • Industrial Internet of Things (IIoT) • …
t Smart Manufacturing Initiatives
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t Key Characteristics • Revitalize US manufacturing
since 2006, innovation • Oil and Gas, Process and
Hybrid focused • Engineering, Manufacturing
and Supply Chain • Private-public partnerships • Open SM platform, test
beds, market place (standards)
• Step-change improvements • Project cost and
duration • Efficiency, productivity,
cost reduction • Flexibilty and agility • Sustainability and safety
Smart Manufacturing Leadership Coalition
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Shorten SCM implementation time dramatically
t SMLC Testbed General Mills
t Complex integrated solution requirement • Each implementation
iteration takes years • Objective: reduce
application building and integration to a few months.
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Industrie 4.0 t Key Characteristics
• German > International • Rather discrete focused • PLM, Manufacturing and SC • Private-public partnerships • Technology / Approach
• Digitalization • IT/OT/Process integration • Ubiquitous sensing / CPS • Big data – analytics
• Stepchange or gradual change • Industry growth, biz
models • Project cost and duration • Efficiency, productivity,
cost reduction • Flexibilty and agility • Sustainability and safety
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Industrie 4.0 t S
up
ply
Ch
ain
In
teg
rati
on
• In
tra-
com
pany
•
Inte
r-co
mpa
ny
• In
ter
disc
iplin
ary
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Traditional Supply Chain t A
dap
tive
Pro
du
ctio
n
• D
eman
d pu
ll •
Mat
eria
l sup
ply
coul
d be
pr
ovid
ed v
ia S
CO
N
Source: Poetter, Namur General Assembly 2013
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Industrie 4.0: Cyber-physical systems t V
MI
usi
ng
cyb
er-
ph
ysic
al s
yste
ms
• Re
quires
rea
l-tim
e op
erat
ing
SCO
N!
Sou
rce:
Poe
tter
, N
amu
r G
ener
al A
ssem
bly
20
13
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Increased throughput in existing plant
t Industrie 4.0 at ThyssenKrupp
t Supply chain integration • Thyssen-Krupp and
clients • Pull manufacturing • Throughput
increase • Avoid equipment/
surface size increase
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Fine Chemicals and Life Sciences Modular production technolgy
t M
odu
lar
pro
du
ctio
n
• EU
co-
spon
sore
d re
sear
ch
• 7
F3 F
acto
ry c
ase
stud
ies
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Modular equipment, lines and production units Revolution in engineering, construction and production
(Fine) Chemicals, Polymers and Pharmaceuticals
Modular reactor
Docking a modular plant
Details: “Advanced” Manufacturing
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Future Implications of Modular/Mobile Production
t Modularity of plants / exchangeable units • P&S must take all possible routings into account, also within
the plant and production lines • This is the “self-organizing” plant of Industrie 4.0 • Plant size would not be a constraint anymore: line up/line
down
t Mobile production lines • Production network becomes flexible
• place the production unit where it creates maximum value/minimum cost
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Other Smart Manufacturing Impacts
t Digitization • Digital twin of the
plant enables fast delocalization
t Energy and feedstock price volatility • Multi energy supply • Multi feedstock supply
t Greening • Increasing use of
biological, living materials
• Biomass as feedstock • CO2-based feedstock
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Your Grandfather’s BI & Analytics…
Operational Systems
(ERP, MES, SCM, Financials etc.)
Data Warehouse
12
6
3 9
1 2
5 4
7 8
10 11
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Add Velocity, Volume and Variety…
Operational Systems,
M2M Data, Partner
Data, Public Data, Textual…
Data Warehouse
12
6
3 9
1 2
5 4
7 8
10 11
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…Has Too Much Latency for IIoT
Operational Systems
(ERP, MES, SCM, Financials etc.)
Data Warehouse
Events Insight
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Cutting Latency
Operational Systems,
M2M Data, Partner
Data, Public Data, Textual…
Data Warehouse
1. Merged Database
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Cutting Latency
2. Stream Processing (CEP) 3. Predictive Analytics
Operational Systems
(ERP, MES, SCM, Financials etc.)
Data Warehouse
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Complex Event Processing
Complex Event Processing (aka Event Streaming)
Real-Time Automated Decisions
Data Streams
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What Predictive Analytics Isn’t…
3834
5117
6448
7908
9181
11497 10788
10021
8341
Dow Jones Industrial Average
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Value from Variety (Unstructured Data)
Operational Systems,
M2M Data, Partner
Data, Public Data, Textual…
Data Warehouse
4. Text Analytics
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Unstructured Brings New Perspective
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From MRPII to Advanced P&S
Collaborative Forecasting
and Demand
Management
Supply &
Demand Balancing
Scheduling And
Capable to Promise
Rough Cut Capacity Planning
Distribution Requirements Planning
Sales and Operations Planning
Master Production Scheduling
Material Requirements Planning
Infinite Capacity Scheduling Available to
Promise
Statistical Forecastin
g
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From MRPII to Advanced P&S and Analytics
Collaborative Forecasting
and Demand
Management
Supply &
Demand Balancing
Scheduling And
Capable to Promise
Rough Cut Capacity Planning
Distribution Requirements Planning
Sales and Operations Planning
Master Production Scheduling
Material Requirements Planning
Infinite Capacity Scheduling Available to
Promise
Statistical Forecastin
g
Towards Predictive
Supply Chain Analytics and
Network Optimization
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Emerging SM/IIoT Architecture – SC Analytics
Plant Operations
Corporate Purchasing Engineering
XYZ Chemical XYZ Chemical XYZ Chemical
Enterprise
Maintenance
XYZ Chemical
Device buses
Production Management
Logic & Motion
Discrete ControlProcess Control
Infrastructure (Networks…)
Wireless
HMI / Workstations
Fieldbus
Application Specific
Appliances
Safety
XYZ Chemical
Client
3rd Parties
Supplier
Physical asset with sensors, actuators
Local IoT Compute and Communicate module
Smart Machine
IoT Smart Module
Emerging Option: Connect Assets Using New Technologies
New IoT Analytics and Applications
Purdue Hierarchy
IIoT Hierarchy
Enterprise
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Analytics Levels and Methodologies t
Leve
l 1:
his
tori
cal r
epor
tin
g
• re
port
ing
t
Leve
l 2:
Pre
dic
tive
An
alyt
ics
• Fo
reca
stin
g t
Leve
l 3:
Pre
scri
pti
ve a
nal
ytic
s •
Rec
omm
enda
tions
, op
timiz
atio
n
Tim Sharpe, Energy management at Sabic UK, Sabisu, EIF 2015
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t Negotiation, collaborative forecasts, engaged social networking, motivation, decision making …
We continue to need unique human skills
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Human-Machine Integration t Human
• Provide data to the system • Need to develop trust • Assesses, delegates,
interprets, judges and decides with consciousness and skill
Cognitive agents unload the human
Semantic interaction: meaningful human-
system communication
Source: Maurice Wilkins, Valentijn de Leeuw
t Machine • Allows focusing on problem
solving and decision making • Provide context • Ecological interface design
Predictive analytics proposes actions
Acts ethically and with compassion
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Implementation Strategies
t Target radical efficiency improvements • Start small
t Choose areas of innovation in line with business strategy and sector needs • Per production type, process or plant type
t Set goals, define KPI’s • Improve product, material, substance performance if possible • Innovate business models (e.g. circular) and value creation ecosystem • Sustainability
t Assessment methodology and Roadmap • Maturity model, business case, roadmap • Feasible roadmap, with regular updates
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Acknowledgement
David White Senior Analyst ARC Advisory Group [email protected] @addicted2data
IIoT Newsletter: http://industrial-iot.com/subscribe-to-newsletter/
Thanks to David for the analysis and survey on IIoT, big data and analytics