say "hello" to industry 4.0: flexible automation & the future of manufacturing
TRANSCRIPT
SAY ‘HELLO ’ TO INDUSTRY 4 .0
If you are not on the list, you want to be on it.
If you are on the list, you want to stay on it.
AVERAGE T IME ON THE FORTUNE 500 L IST
1950 2015
Source: Richard Foster, The Creative Edge, Deloitte
60 YEARS
12 YEARS
S AY H E L LO TO I N D U S T R Y 4 . 0
SO WHAT DOES THIS TELL US ABOUT INDUSTRY 4 .0?
“There is a clear correlation between innovation and revenue growth, with the most innovative companies growing 38% faster than
their stagnating counterparts over the last three years.” - P W C C O N S U LT I N G
WHY?
WHAT IS IT?
HOW CAN IT HELP?
HOW DO I GET STARTED?
WHY? DO WE NEED TO ENGAGE IN INDUSTRY 4.0 CAPABILITY…
O V E R T H E N E X T D E C A D E
3 . 5 M I L L I O N U S M A N U FA C T U R I N G J O B S
W I L L B E N E E D E D W I T H A P P R O X I M AT E LY
2 M I L L I O N L I K E LY T O G O U N F I L L E D
- D E L O I T T E
LABOR SHORTAGE
S AY H E L LO TO I N D U S T R Y 4 . 0
T H E N U M B E R O F D E R I V AT I V E S O F A N E W C A R I N C R E A S E D 1 0 0 % F R O M 2 0 0 2 T O 2 0 1 1
INCREASINGLY COMPLEX SUPPLY CHAIN
S AY H E L LO TO I N D U S T R Y 4 . 0
T H E M A N U FA C T U R I N G S E C T O R I N T H E U . S . H A S N O T G R O W N A S FA S T A S T H E R E S T O F T H E E C O N O M Y A N D, A S A R E S U LT, I T S S H A R E O F T O TA L O U T P U T
H A S FA L L E N F R O M 2 4 % I N 1 9 7 0 T O 1 2 % C U R R E N T LY.
COST PRESSURES
T O D AY ’ S W H Y
I S T O
I N O U R M A R K E T
S AY H E L LO TO I N D U S T R Y 4 . 0
O U T PA C E C H A N G E
S AY H E L LO TO I N D U S T R Y 4 . 0
W H Y N O W I S A N Y D I F F E R E N T ?
S AY H E L LO TO I N D U S T R Y 4 . 0
T H E 3 R D I N D U S T R I A L R E V O L U T I O N P R O V I D E D F I X E D A U T O M AT I O N T O C O M P L E T E S P E C I F I C TA S K S .
B U T O U R M A R K E T P L A C E I S C H A N G I N G Q U I C K LY A N D W E N E E D P R O D U C T S T H AT W I L L A D A P T W I T H O U R B U S I N E S S .
A D A P T I N G
S AY H E L LO TO I N D U S T R Y 4 . 0
I N T E L L I G E N C ER E Q U I R E S
I N T E L L I G E N C E
S AY H E L LO TO I N D U S T R Y 4 . 0
P R O C E S S I N G O F D ATAR E Q U I R E S
S AY H E L LO TO I N D U S T R Y 4 . 0
N O W I S T H E T I M E F O R I N D U S T R Y 4 . 0 B E C A U S E : • D ATA S T O R A G E I S I N E X P E N S I V E • C O M P U TAT I O N A L P O W E R H A S A D V A N C E D T O
A C C O M M O D AT E I N D U S T R I A L N E E D S • D ATA N E T W O R K I N G E N A B L E S F R E E F L O W O F D ATA
S AY H E L LO TO I N D U S T R Y 4 . 0
A D V A N C E M E N T S H A V E L E A D T O P O W E R F U L , I N T E L L I G E N T S E N S O R S AT A P R I C E P O I N T T H AT
O F F E R H I G H R O I I N T H E I N D U S T R I A L S PA C E .
WHAT? IS THIS INDUSTRY 4.0 THING…
I N D U S T R Y 4 . 0
I N T E R C O N N E C T E D I N D U S T R I A L E Q U I P M E N T
T H AT P R O V I D E S
S AY H E L LO TO I N D U S T R Y 4 . 0
C E N T R A L I Z E D O P E R AT I O N A L D ATA
INDUSTRY 4 .0
SMART FACTORY
INTERNET OF THINGS ( IOT)
CYBER PHYSICAL SYSTEMS
INTEROPERABIL ITY
VERTICAL NETWORKS
BIG DATA
S AY H E L LO TO I N D U S T R Y 4 . 0
T H E P H Y S I C A L W O R L D I S B E C O M I N G A T Y P E O F I N F O R M AT I O N S Y S T E M — T H R O U G H S E N S O R S A N D
A C T U AT O R S E M B E D D E D I N P H Y S I C A L O B J E C T S A N D L I N K E D T H R O U G H W I R E D A N D W I R E L E S S N E T W O R K S
S AY H E L LO TO I N D U S T R Y 4 . 0
“ P R O C E S S A N D D E V I C E W I L L B E
I N S E P E R A B L E ” - M C K I N S E Y R E P O R T
S AY H E L LO TO I N D U S T R Y 4 . 0
ABOUT 25 BILLION OBJECTS WILL BE INTERCONNECTED BY 2020.
TODAY, THERE ARE 3.8 BILLION SUCH OBJECTS
G A R T N E R S T U DY
HOW CAN IT HELP? THIS INDUSTRY 4.0 THING…
T H E M A N U FA C T U R I N G S E C T O R IN THE U.S. HAS NOT GROWN AS FAST
AS THE REST OF THE ECONOMY … TOTAL OUTPUT H A S FA L L E N FROM
24% IN 1970 TO 12% CURRENTLY
S AY H E L LO TO I N D U S T R Y 4 . 0
S AY H E L LO TO I N D U S T R Y 4 . 0
INDUSTRY 4 .0 CAPABIL IT IES ENABLE INFORMATION TO BE
TRANSMITTED INSTANTLY.
I M A G I N E R O B O T I C W O R K C E L L S T H AT A R E S E R V E D B Y S E L F - D R I V I N G V E H I C L E S
S AY H E L LO TO I N D U S T R Y 4 . 0
T H E F A C T O R Y O F T H E F U T U R E W I L L :
I N C R E A S E E F F I C I E N C Y
R E D U C E C O S T S
A D A P T
C E N T R A L I Z E D O P E R AT I O N A L D ATA I N M A N U FA C T U R I N G O F F E R S
1. Lean Process Optimization
2. Predictive Maintenance
3. Elimination of Quality Process
S AY H E L LO TO I N D U S T R Y 4 . 0
S AY H E L LO TO I N D U S T R Y 4 . 0
1. LEAN PROCESS OPTIMIZATION
Systems will become interconnected and know the exact location of every part at any given time and build in probabilities to have only the parts needed delivered to the line.
The system will be able to extend beyond limit of individual factories and interconnect multiple facilities to accomplish goal of lean.
S AY H E L LO TO I N D U S T R Y 4 . 0
• R E D U C E M A I N T E N A N C E C O S T S B Y 1 0 T O 4 0 %
• R E D U C E D O W N T I M E B Y 5 0 %
• L O W E R E Q U I P M E N T A N D C A P I TA L I N V E S T M E N T B Y 3 T O 5 % B Y E X T E N D I N G M A C H I N E L I F E
– M C K I N S E Y S T U DY
T H E P E R C E N TA G E S A N D C O S T, T H E P O T E N T I A L F O R S A V I N G O P E R AT I O N A L E F F I C I E N C Y A N D U S E O F R E S O U R C E I S S I G N I F I C A N T.
2. PREVENTATIVE MAINTENANCE
S AY H E L LO TO I N D U S T R Y 4 . 0
3. EL IMINATION OF QUALITY PROCESS
T R A D I T I O N A L T E C H N O L O G Y I S G O O D AT R E V I E W I N G A D E F I N E D S E T O F P R O B L E M S , B U T M A C H I N E L E A R N I N G
T E C H N I Q U E S C O U L D P O T E N T I A L LY E L I M I N AT E T H E P R O C E S S O F T E S T I N G A L L T O G E T H E R B Y P R E D I C T I N G
Q U A L I T Y E A R LY I N T H E M A N U F A C T U R I N G P R O C E S S A N D K N O W I N G W H E N T H E S Y S T E M I S G O I N G T O F A U LT.
W H AT I F :
- Systems present and act on optimization opportunities
- Adapt to changes in real time - Facilities learn from each other
S AY H E L LO TO I N D U S T R Y 4 . 0
C L E A R P A T H C O N F I D E N T I A L
Say Hello to Industry 4.0
SOUNDING FAR FETCHED? M O S T N E V E R T H O U G H T W AT S O N W O U L D B E AT T H E J E O PA R D Y
C H A M P I O N O F T H E W O R L D .
S AY H E L LO TO I N D U S T R Y 4 . 0
“Humans can typically create one or two good models a week; machine learning can create thousands of models a week.”
T H O M A S H . D A V E N P O R T, A N A LY T I C S T H O U G H T L E A D E R E X C E R P T F R O M T H E W A L L S T R E E T J O U R N A L
HOW CAN I IMPLEMENT? THIS INDUSTRY 4.0 THING…
S AY H E L LO TO I N D U S T R Y 4 . 0
S T E P 1 : R E C O G N I Z E T H E C H A N G E P O T E N T I A L , V A L U E
C R E AT I O N , A N D C O S T R E D U C T I O N S W E C A N A C H I E V E .
S T E P 2 : M A K E T H E S Y S T E M U S E R - F R I E N D LY S O T H AT E N D
U S E R S C A N I M M E D I AT E LY R E A C T W I T H O U T G E T T I N G B L O C K E D O N I N T E R D E P E N D E N C I E S .
S T E P 3 : W O R K W I T H PA R T N E R S W H O D R I V E T H I S V I S I O N
T H R O U G H T H E I R P R O D U C T O F F E R I N G
– M C K I N S E Y R E P O R T
S AY H E L LO TO I N D U S T R Y 4 . 0
S AY H E L LO TO I N D U S T R Y 4 . 0
MATERIAL HANDLING ACCOUNTS FOR:
PRODUCTION COST EMPLOYEE TIME FACTORY SPACE PRODUCTION TIME
75% 25% 55% 87%
– C O N C O R D I A U N I V E R S I T Y
S M A R T M AT E R I A L T R A N S P O R T = S M A R T FA C T O R Y
S AY H E L LO TO I N D U S T R Y 4 . 0
S AY H E L LO TO I N D U S T R Y 4 . 0
B Y C O N T R O L L I N G M AT E R I A L T R A N S P O R T Y O U H A V E A C C E S S T O
C R I T I C A L O P E R AT I O N A L D ATA
“ B L A C K B O X ” M A N U F A C T U R I N G P R O C E S S
O U T
B Y A U T O M AT I N G M AT E R I A L F L O W, W E K N O W :
Part location of all inventory
Cycle time of production cell
Uptime / Downtime
Units produced
Quality Rate
This data provides opportunity to advance change and improvement
I N
S AY H E L LO TO I N D U S T R Y 4 . 0
S AY H E L LO TO I N D U S T R Y 4 . 0
M AT E R I A L F L O W I S C O M P L E X A N D C H A N G E C A N N O T H A P P E N O V E R N I G H T…
B U T T E C H N O L O G Y I S A D V A N C I N G Q U I C K LY A N D B R I N G I N G U S S T E P S C L O S E R T O O U R V I S I O N O F T H E ‘ S M A R T F A C T O R Y.’
Era 1: Early Industrial Robotics1955 – 1980
Era 2: Autonomous Guided Vehicles1980 – 2015
Era 3: Self-Driving Vehicles2015 – 2025
S AY H E L LO TO I N D U S T R Y 4 . 0
No Navigation Infrastructure
Safe and Collaborative
Parallel Operation
Adapts to Change
Fixed Infrastructure
Sequential
InflexibleLimited application
Short move transfers
S AY H E L LO TO I N D U S T R Y 4 . 0
S E L F D R I V I N G V E H I C L E S F O R I N D U S T R Y
S AY H E L LO TO I N D U S T R Y 4 . 0
C O N F I G U R AT I O N S
"I believe that we are at the dawn of an innovation wave that will soon hit the material handling industry. The convergence of
big data, faster and cheaper computer power, and increasing demands of customers will likely accelerate the adoption of
innovative products and services."
S C O T T S O P H E R P R I N C I PA L , D E L O I T T E C O N S U LT I N G L L P
I N D U S T R Y 4 . 0 I N N O R T H A M E R I C A N E E D S
C H A M P I O N S A N D T H O U G H T L E A D E R S
E N G A G E I N D U S T R Y 4 . 0 AT:
W W W. O T T O M O T O R S . C O M