Artificial Intelligence in Supply Chain andManufacturing

An IBM case study

Thorsten SchröerDirector & Industry Leader IBM Watson IoT

@ThorSchroeer

Thorsten Schroeer

2nd Annual Smart Manufacturing SummitPrague, Czech Republic April 7th, 2017By Luxatia

What is Artificial Intelligence

IBM, Google, Facebook, Amazon und Co tun sich zusammen

4>1890 Tabulating 1960 Programmable >2010 Cognitive

>80% of all data is dark and not used at all

20172013 2020

Cognitive is driving new capability. . .

Artificial Intelligence

Cognitive Computing

Machine LearningDeep Learning

7

Cognitive systems are fundamentally different from what we have today

7

Adapt and make sense of all data; “read” text, “see” images and “hear” natural speech with context

Understand

Reason Interpret information, organize it and offer explanations of what it means, with rationale for the conclusions

Learn Accumulate data and derive insight at every interaction, perpetually

AI / Watson in IBM’s Supply Chain

IBM Supply chain has been also…….

Printers Retail StoreSemiconductor

System x PC & LaptopHarddisk

…and is now….

Mainframe / Z

Storage Disk

Tape Library

+15k People

Software

Power

Solution Centers

IBM Supply Chain

Guadalajara

Poughkeepsie

Vac, Hungary

Singapore

Global Systems & Solutions Fulfillment Network

Manufacturinglocations

2015 Revenue Supported: $81.7B18K+ suppliers connected online$7B in procurement saving annually100% Purchase Orders electronic>96% of Invoices electronicOver 3.9M visits to eTools

Globally Integrated Enterprise

<2005

Transparent Supply Chain

<2015

Cognitive Supply Chain

>2015

§ Enterprise efficiencies§ Streamlined Global processes§ Information sharing

§ Advanced Analytics, Optimization, Data Management

§ Supply Chain Transparancy § Network Orchestration, Trusted Transactions

§ Cognitive / Learning§ Agile / Resilient/Mobile§ Data Driven /Digitally Executed

Gather the dataVisualise the patterns

Advance to analytics

Infuse with cognitive

• Instrument your equipment/assets to collect data

• Gather already existing data

• Visualise your data in meaningful dashboards

• Start to see patterns• Build with Bluemix

• Gain insights from the data

• Produce models, prediction recommendations

• Refine models with cognitive machine learning

• Utilise other cognitive functions to improve engagement

Asset needs to be connected, outfitted with sensor or data gathered

Use analytical models to predict equipment failures and provide recommendations

Use the platform to quickly build dashboards for data visualisation

Use speech, video, image to diagnose complex problems

Embracing IoT for Supply Chain through logical steps of value

We have deployed over 30 supply chain analytics solutions with $100M+/year in benefits.

off-load customer orders

Run manual processwork-arounds

chase supply

shape demand

pull additionalparts

stop shipments

adjust mfg capacityadjust testtimes

prioritize customer orders

pre-build ordersalert CFon latedeliveries

substituteparts

start unfirm orders / parallel assets

switch shippinglane

expediteinboundlogistics

adjustforecast

install 3rd shift

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ALL EXPERIENCE IN ONE ROOM – our original plan but we course corrected

©2016IBMCorporation

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SITUATIONAL AGILE TEAMS -DEMOCRATIZED EXPERTISE

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19

Watson Supply Chain - Traininig

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ALERT!

22

Resolution Room

23©2016IBMCorporation©2016IBMCorporation

24©2016IBMCorporation©2016IBMCorporation

IBM Guadalajara Technology Campus2015 Mexico National Technology AwardManagement Systems of Technology and Innovation

PSU's Center for Supply Chain Research (CSCR) recognized IBMLeadership and partnership to advance supply chain management over the last 25 years

IBM DSS Vác Hungarian Factory of the Year 2015 Supplier Relations category

Sharon Spaulding2016 IoPP AmeriStar Award

Distinguished Committee Service (DCS) Award presented by IPC®.

Julian SK Tan, Engineering ManagerSingapore

Resolution Rooms / Digital Collaboration PlatformGlobal Transformation Team

Visionary Leadership Award

Operational Excellence Leadership

Supply Chain Leadership

Collaborative Innovation Leadership

CSC Appliance Excellence through AutomationGuadalajara, Mexico

5 Pillars of SC Operational ExcellenceVac, Hungary

2016 2017

IBM Supply Chain External Awards…. just keep coming

2015

IBM Supply Chain’s Cognitive Journey…

Cognitive Butler Cognitive Moderator Cognitive Advisor

take minutes

locate, suggest, and invite available experts

Identify similar scenarios

Provide relevant informationRun cognitive playbooks

Dynamic, personalized, real-time Supply Chain Expert on hand

Provide Options

#CognitiveSupplyChain

Augmenting Supply Chain DecisionsSupply ChainProfessionals

WeteachWatson.

WeprogramAdvisory.

OperationCenter

Alerts

ResolutionRoom

WeuseIBM’sCognitiveDataLake

WeutilizeEnterpriseDataSources.

27©2016IBMCorporation

WegaininsightsfromIoT.

WeuploadDataintoWatsonAnalytics.

WeanalyzedatarecordedinBlockchains

WatsonQ&A

And outside IBM?

WatsonIoTPlatform

CognitiveRobot

Machinelearning Text

Image

NaturalLanguage

WatsonCognitiveAnalytics

FoxbotwritescalligraphyHannoverMesse2016

Voicerecognition

30

Cognitive EquipmentAdvisor

WorkerAssistance

Page 31

Visual Inspection – Image Analytics

Blistering Defect of Paint

LCD Panel Inspection

Mobile phone chassis inspection

Acoustic & Noise Analytics

WatsonIoTGlobalHeadquarters

Munich,Germany

Artificial Intelligence in Supply Chain andManufacturing

An IBM case study

Thorsten SchröerDirector & Industry Leader IBM Watson IoT

@ThorSchroeer

Thorsten Schroeer

2nd Annual Smart Manufacturing SummitPrague, Czech Republic April 7th, 2017By Luxatia