LIVEWORX.COM | #LIVEWORX

SPEAKER(s):

SESSION ID:

9th of June 2020

CASE STUDY: HOW AUTOLIV OPTIMIZES OEE ACROSS THE ENTERPRISE

IF1295CA

Daniel Jackson

Director of Manufacturing IT,

Autoliv

Maciej Redel

Sr Manager & Digital Lead

Kalypso

2

#LIVEWORX

Daniel JacksonDirector of Manufacturing IT,

Autoliv

Bringing a unique perspective to digital transformation in manufacturing, based on a diverse background in Operations, Production Control & Logistics, and IT.

Maciej RedelDigital Lead,

Kalypso

Driving innovation with digital technologies –Internet of Things, Analytics, AI/ML, AR/VR. Hands-on practitioner.

3

#LIVEWORX

AGENDA

Autoliv’s Factory of The Future initiative

Kalypso’s Smart Connected Operations

SCO at Autoliv◊ Performance management dashboards

◊ Analytics based workforce planning

Lessons Learned

5

#LIVEWORX

AUTOLIV IN BRIEF

FACTORY OF THE FUTURE INITIATIVE

6#LIVEWORX

AUTOLIV’S GLOBAL FOOTPRINT

$8.7 billionsales

7% sales growth

10.5% adjusted* operating margin

40% market share

Americas

31%of sales

Europe

32%of sales

Japan

9%of sales

China

18%of sales

Rest of Asia

10%of sales

6

27 CountriesAcross All Key Automotive Regions

19 Crash Test TracksEnabling Crash Simulations Globally

64 FacilitiesIn Close Proximity to OEMs

14 Tech Centers

7#LIVEWORX

AT THE FOREFRONT OF TECHNOLOGY TO SAVE MORE LIVES

PEDESTRIAN AIRBAGS AND HOOD LIFTERS

Protect

Pedestrians

STEERING WHEELS

With the Lives of Others in Your

Hands

FRONTAL AIRBAGS

Save Lives and

Reduce Injuries

CHILD SEATS

Protect

Children

SEATBELTS

Top Life-Saving Device

PYRO SWITCH

Stop the

Fire

8#LIVEWORX

DIGITAL TRANSFORMATION OF MANUFACTURING SYSTEMS WILL REQUIRE A CHANGE IN DESIGN AND ARCHITECTURE

Current

ISA-95 architecture Future

Software Design

Real-time, processing,

quality control

Proprietary and

standard apps

Mobile applications, SaaS

Cyb

ers

ec

urityAgile application

development

Big data aggregation and storage

Advanced analytics and Machine Learning

Device management: Discover, connect..

Development, data management, connectivity management

IIoT

platform

Edge

compute

Edge

platform

Next Gen

Apps &

Micro-

services

PLM

ERPScheduling, material, finance

MESProduction, quality,traceability, maintenance, ..

PLC/SCADAShop floor sensors

Cyb

ers

ec

urit

y

Future

Infrastructure Architecture

Sensors, Cameras, Actuators

Plant servers

PLCs

Data center

Cloud

WAN

SecurityConnectivit

yReliability

Edge

Connectivity

Ma

nu

fac

turin

g S

yst

em

s

9#LIVEWORX

FACTORY OF THE FUTUREInitiative summary

Process Automation

Sample of projects• Automatic downtime response

• Automatic changeover

• Automated assembly

• Auto-adjust based on data

• Automated inspections

Material Flow

Sample of projects• Automatic machine loading

• Automated component feeding

• Automated finished good conveyance

• Digital Material Replenishment

• Automated palletizing

Physical to Digital

Sample of projects• AR Operator training support

• Electronic Work Instructions

• Electronic Performance Dashboard

• Mobile checklist

• Product and Process tracking

Data & Analytics

Sample of projects• Internal & External supplier data

used for process

• Predictive Maintenance

• Data used between processes

• Machine & process data used for statistics & quality analysis

Benefits• Labor Efficiency

• Reduce Scrap & Downtime

• Improved Quality

Benefits• Labor Efficiency

• Material utilization

Benefits• Reduce manual reporting time

• Improve Quality & Traceability

• Reduced time for training

Benefits• Improved Quality

• Improved OEE

• Material usage & reduced scrap

• Traceability

10#LIVEWORX

Kalypso is a professional services firm.

We help our clients discover, create, make and sell better products with digital.

Established in 2004

2020 Acquired by Rockwell Automation

260+ Professionals

400+ Clients Served

INDUSTRY FOCUS

CO

MP

REH

EN

SIV

E C

AP

AB

ILIT

IES

Enterprise Technology

Business Process Management& Managed Services

Consulting

Digital

Consumer LifeSciences

Industrial High Tech

Ka

lyp

so L

P 2

02

0 ©

-P

rop

rie

tary

& C

on

fid

en

tia

l

11

#LIVEWORX

Product Innovation enabled by Digital Product Creation (DPC)

Overall Equipment Effectiveness enabled by Smart Connected Operations (SCO)

KALYPSO PERSPECTIVE ON VALUE FOCUS AREAS FOR DIGITAL

1111

12#LIVEWORX

Can the equipment operate at an improved rate with improved quality?

Can the equipment operate for more hours?

Mechanical Availability

Utilisation Management

Production Time (rate & quality)

Downtime Control Zone

Production Time Control

Zone

8760

(hours in a year)

We know digital is working when it is applied to improve performance. Positive changes in key measures are proof the digital solution is working

OVERALL EQUIPMENT EFFECTIVENESS (OEE) ENABLED BY SMART CONNECTED OPERATIONS

13#LIVEWORX 13#LIVEWORX

KALYPSO’S APPROACH TO DIGITIZATION OF OPERATIONS

Reactive to Predictive

Optimize manufacturing control systems with Machine Learning

Improve Manufacturing Performance through predictive event

Mechanical to Digital

Deploy ThingWorx as platform

Establish connected control system foundation

Enable continuous improvement

Organize to Scale

Establish repeatable installation playbook and operating model

Develop Knowledge and skillset in organization to scale capability acrossmanufacturing portfolio

1

3

2

13

14

#LIVEWORX

SMART CONNECTED OPERATIONS AT AUTOLIV

SOLUTION OVERVIEW

15#LIVEWORX

OPTIMIZING OEE AT AUTOLIV WITHSMART CONNECTED OPERATIONS

PHASE 1: PERFORMANCE MANAGEMENT DASHBOARDS

PHASE 2: ANALYTICS BASED WORKFORCE PLANNING

16#LIVEWORX 16#LIVEWORX

PERFORMANCE MANAGEMENT DASHBOARDS

• Manual, paper based and labor-intensive KPI calculation

• No real time visibility into many KPIs

• No real time aggregation of process information on different levels

• No single source of truth between PLC, OPC, MES and ERP systems

Replacing paper boards with touch screen interactive

dashboards

17#LIVEWORX

FROM PAPER TO DIGITAL

8

Dashboards & control room are linked through an integrative information flow and continuous improvement

Information flow regarding

status, performance, trends,

line manning etc.

Information flow

through (aggregated)

KPIs, status information

and regular reporting

Line dashboards

AMT dashboards

AMG dashboards

Identification of

problems, trends etc.Development &

tracking of actions

Continuous improvement

through structured

problem solving (on the

lowest level possible)

Escalation of problems

which can not be solved

on this level

Problem solving

Performance control room

Machine status displays

KPIsStatus

Actions

tbd

KPIsStatus

Actions

tbd

KPIsStatus

Actions

tbd

KPIsStatus

Actions

tbd

KPIs

10.5

10.1

10.2

10.3

10.4

Problem solving

Problem solving

Problem solving

Illustrative

Real time process monitoring to power Continuous Improvement

OperatorLine

LeaderTeam

LeaderGroup Leader

Site Leadership

Source: Autoliv

18#LIVEWORX 18#LIVEWORX

PERFORMANCE MANAGEMENT DASHBOARDS

• Real time KPI visibility

• Live data streamed from machines and MES

• Improved OEE and On Time Delivery

• Visual feedback on current bottlenecks on the production line

• Recommended actions and upcoming events

• Continuous Improvement mind

19#LIVEWORX

ANALYTICS BASED WORKFORCE PLANNING

Challenge

◊ Shift start delay due to manual allocations performed on-the-spot in the drafting process based on intuition

◊ OEE lower than estimated in production plan due to sub-optimal worker to machine allocation

◊ Low transparency of overall impact of reactive decisions

Solution benefits

◊ Decisions based on data – not intuition

◊ Avoidance of non-productive time at shift start

◊ Improved OEE due to optimal worker to machine allocation

◊ Impacts of decisions analyzed through simulation

Business needs

◊ Recommend optimal production line workforce deployment: one week in advance, before shift start, and during the shift run

◊ Recommend corrective actions and re-allocation of workforce if needed based on actual performance, workforce availability and skill set

20#LIVEWORX

ANALYTICS BASED WORKFORCE PLANNING

Digital Skills Matrix (DSM), informed by external systems, describes each worker in workers population.

Station Performance Model (SPM) depends on product, equipment type and historical worker performance. It predicts Worker-Station scores.

Worker Allocation Engine (WAE) optimizes allocation of available population of workers based on inputs from Station Performance Model.

Workers population

Station Performance Model

trigger

1. Plan for next week

2. Before shift start

3. During ShiftSchedule

Worker Allocation Engine

people data

HR MES Clocking OPC

machine perf data

Inform (features)

describe

optimize allocations

inform (Worker-Station Score)

re-allocate

allocate

allocate

Station St.05

Station St.10

Station St.20

Station St.xx

Digital Skills Matrix

ERP

21#LIVEWORX

ANALYTICS BASED WORKFORCE PLANNING

Workers population

solve

Solution Space

Y = 18,000 Y = 23,500 Y = 25,000

Worker Allocation Engine optimizes allocation of available worker population to required station population across one site.

WAE uses combinatorial optimization (Kuhn-Munkres) approach to solving assignment problem, respecting business constraints:

◊ Worker availability

◊ Planned and unplanned attendance

◊ Skills

◊ CertificationsUnavailable Unallocated Sub-optimal allocation

Optimal allocation

22#LIVEWORX

SCO ARCHITECTURE

MES

ThingWorx Foundation

Performance dashboards

Data ModelIntegration Services

Workforce dashboards

Planning dashboards

HR: workforce &

skills

OPC UA

PLCs

Machines

ThingWorx Analytics

Station Performance

Model

ERP: orders & schedule

Clock-in/clock-out

Digital Skills Matrix

Workforce Allocation

Engine

HMI

Smart Connected Operations built on backbone of ThingWorx Foundation, ThingWorx Analytics and OPC Aggregator technology from PTC

23

#LIVEWORX

WHERE TO GO NEXT?

GLOBAL ROLLOUT

ANALYTICS & MACHINE LEARNING APPLICATIONS

AUGMENTED & VIRTUAL REALITY APPLICATIONS

23

24

#LIVEWORX

LESSONS LEARNED

25#LIVEWORX

LESSONS LEARNED – GOVERNANCE

Cross-functional team, cutting through Business, OT & IT silos, with strong support from Leadership to drive adoption

Defined strategy for Factory of the Future program and guiding principles

Delivery following Agile Methodology promoting team interactions and close collaboration

26#LIVEWORX

LESSONS LEARNED – DELIVERY

Prototype, iterate and seek constant user feedback to achieve optimal UI/UX design and usability

Document Key Performance Indicators – align on terminology, data sources and formulas

Co-locate team for critical phases of the delivery – UAT testing and initial production rollout

27#LIVEWORX

LESSONS LEARNED – ADVANCED ANALYTICS

Accept iterative nature of the Advanced Analytics projects and prepare to revisit hypothesis and adapt feature set

Establish understanding of fundamental Machine Learningconcepts and basic terminology across whole project team

Anticipate data quality issues – availability, reliability and accessibility. Expect some business rules not to be codified

28#LIVEWORX

LESSONS LEARNED - SCALABILITY

Ensure solution is scalable across organization

Secure organizational alignment across sites

➢ Definitions & measurements methods

➢ Continuous Improvement process

➢ Technology stack

Establish separation between core solution and site configuration

29#LIVEWORX

We looked at how Smart Connected Operations integrate machines, OT, and IT systems to provide real-time process visibility and improve OEE.

KEY TAKEAWAYS

We inspected how Advanced Analyticsis applied to optimize workforce and transforms operations from intuition-based to data-driven.

We shared some lessons learned and advice applicable for any organization embarking on Industry 4.0 journey.

30

#LIVEWORX

Thank you!

WANT TO LEARN MORE?

VISIT

WWW.KALYPSO.COM/LIVEWORX2020

daniel.jackson@autoliv.com

linkedin.com/in/daniel-jackson-94722b18

Daniel Jackson

Maciej Redel

maciej.redel@kalypso.com

linkedin.com/in/maciejredel

LIVEWORX.COM | #LIVEWORX