Driving unconventional Growth through the Industrial Internet of … · 2015-11-16 · The Digital...

Copyright © 2015 Accenture. All rights reserved

Driving unconventional Growth

through the Industrial

Internet of Absolutely Everything A Point of View of IOT for Korean IE Manufacturer

Tae-Jin Lee, Accenture “Copyright © 2015 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture”

1. Introduction

2. Industry 4.0

3. Smart Factory

4. Conclusion

Disclaimer

“This document and the information contained herein are proprietary to Accenture. This

document, either in whole or in part, may not be reproduced in any form or by any

means without Accenture’s prior written permission. This document provides no

warranties with respect to the offerings described within. Accenture, its logo, and High

Performance Delivered are trademarks of Accenture. Any third-party names,

trademarks and copyrights contained in this document are the property of their

respective owners.”


Introduction


Digital Industry 4.0 …. It’s complicated !

4


Digitalization will impact the life of companies and individuals…


… new information and communication technologies will connect almost

everything and create the Internet of Things.

6

Internet of Things (IoT):

Accenture understands

that the Internet of Things

is more valuable than the

sum of its parts. It is not

enough to be “connected”.

The goal is to be

pervasive, transformative,

and intelligent.


What is the difference between the Internet of Things (IoT) and the Industrial

Internet of Things (IIoT) or Industry 4.0?

7

IoT is used more liberally to represent

all of the application of the seamless

integration of the physical and digital

worlds through networked sensors and

actuators, big data, processes and

people.

IIoT is the realization of IoT in the

industrial sector. The German

Government is running a strategic

program directed toward the year 2020,

under the name Industry 4.0 which has

the same meaning like IIoT.


In the center of IIoT/ Industry 4.0 we see the smart factory which will differ

entirely from current factories

8


• Advantages:

-Free capacities will be

announced directly

-Active support of production

process

-Real-time analytics of

components and machines

-Predictive maintenance

For the first time components, machines and humans will communicate

spontaneously which enables smart factory to be more flexible and resistant

9


Industry 4.0


Parallel Industrial and Communications revolutions converging on Industry 4.0

A Fourth Industrial Revolution, driven by new forms of technology

11

2.0 3.0 4.0

Steam power … Electrical power … Automation …

Mail … Telegraphy … Internet …

Smart

Connected

Devices …

1.0


The Digital Industry 4.0 - Drivers for change

A convergence of technology forces is changing the industrial ecosystem,

triggering the Digital industrial revolution or Industry 4.0

12

Profound changes in

the entire industrial

ecosystem

+

=

Connected, always-on,

intelligent, software &

data powered

autonomous devices

Connectivity

Hyperscale Data Centers

Analytics and Algorithms

CPU Performance Chip Miniaturization

Software Push Internet Backbone

LTE

Technology

Progress

Smart Devices

Cyber Physical

Systems

(4th Industrial

Revolution)


The Industrial Internet of Things (IIoT) will bring new

economic growth, reinventing sectors that account for

almost two-thirds of world output.

The raw technical conditions for the widespread

adoption of the IIoT are highly favourable.

The potential economic benefits of the IIoT may

be massive, but not guaranteed.

Seizing the opportunity

IIoT could add to the

global economy

$14.4tn

13 Source: © Copyright Cisco white paper “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion”

IDC – industrail IoT Value


The economic impact of Industrial Internet is measured in trillions of dollars

Cisco: “Internet of Things will increase private-

sector profits 21 percent by 2022 and add $14.4

trillion to the global economy.”

“Gartner predicts that the total economic value

add for the Internet of Things will be $1.9 trillion

dollars in 2020, benefiting a wide range of

industries, such as healthcare, retail, and

transportation.”

McKinsey Global Institute: $36 trillion operating

costs of key affected industries (manufacturing,

health care, and mining) could be impacted by

Internet of Things

Sources:

• Cisco White Paper, “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion”, 2013

• Gartner Press Release, “Gartner Says It's the Beginning of a New Era: The Digital Industrial Economy”, October 2013

• McKinsey Global Institute Report, “Disruptive technologies: Advances that will transform life, business, and the global economy”, May 2013

14

http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

https://www.gartner.com/newsroom/id/2602817

http://www.mckinsey.com/insights/business_technology/disruptive_technologies

Copyright © 2015 Accenture. All rights reserved 15

Of The Estimated $14.4 Trillion Of New Value At Stake, $5 – 9 Tr. Is In The Digital Industrial 4.0 Area.

Value at stake as a result of disruption – IDC – IoT value $ 7tr

Source: © Copyright Cisco white paper “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion”

IDC – industrail IoT Value

Customer experience

-> more and new customers

$3.7

Asset utilization (100%)

-> reduce costs $2.5

Employee Productivity (20 – 30%)

-> increase efficiency $2.5

Supply chain and Logistics (100%)

-> eliminate waste $2.7

Innovation (10 – 30 %)

-> reduce time to market $3.0

$14.4 Trillion


There are multiple ways to extract business value from the Industrial IoT

Value Categories Value Levers

Unconventional Revenues

Most Valuable Information Provider

Product as a Platform

New Business and Operating Models

Products / Services Hybrid Treating Services as R&D for products

Enabling third parties to create information services

Locking customers into the information services

Sensors, analytics, and real time data for insights

Operations & Predictive Maintenance

Commercial Optimization

New Customer Experience

Flexible production techniques to boost productivity

Data to work as digital service for equipment performance

Gain opportunities to create customer touch points

Incremental Revenues

Operational Efficiency

Avoiding unnecessary product shutdowns

Computerize repetitive tasks and workflows

Improved supply chain and logistics performance

Reduce costs of energy, maintenance, repair etc.

Preventive Maintenance

Process Automation

Operation Optimization

Global Asset Visibility

Do what you do now,

and make more

money from it

Do things differently,

and make money in

new ways

Do what you do now,

at a lower cost

http://thenounproject.com/term/add-money/3047

http://thenounproject.com/term/growth/40672

http://thenounproject.com/term/gear/13834


We see the 4.0 transformation journey taking businesses through certain steps

that open new opportunities as they mature

Copyright © 2015 Accenture All rights reserved. 17

IIoT/ Industry 4.0

transformation

journey -In most cases, making

the case for operational

efficiency is a low-

hanging fruit providing

easy-to-estimate return.

-As strategies re-align

over time, new top line

opportunities arise

thanks to previous

investments and

organizational

realignment.


IIOT : Redefining Industry Boundaries (HBR 2014 Nov)


Interconnected system of systems Smart & Connected Products Smart but Standalone Outcome based services

Remote diagnostics

Individually customized outcome-based business models

Outcome-based business model

Digitization route of existing service businesses

Resource Sharing (ala Uber)

Support for Pay-per-use

model

Data Monetization

Ma

rke

t O

ffe

rin

gs

A Smart Products Roadmap

The path taken will vary the revenue mix of software, services & products

19

product

services

information

& ecosystem

Unconnected Products (HW)

Smart but Unconnected Products

Smart and Connected

Product

Ecosystem of products

Customizable / configurable products

Self-optimize, self-diagnose

product

Mobile- accessible products

OTA upgradable/ customizable products

Collaborate with other products

from same vendor

Cloud- enabled products

API-enabled products

Product as a platform (e.g., app store)

Collaborate with other products across

vendors

Scheduled equipment maintenance

On-demand & on-spot training

Predictive

maintenance

Real-time optimization

(e.g., fuel savings) Service Aggregation

Outcome-based service (single vendor)

Ecosystem of services

Shared Revenue model

More advanced business models and higher level of disruption


Changes in the technology landscape are making this possible

Sensor technology advances: Physical, chemical and biological sensors based on

nano-structured materials and nano-materials such as conducting polymers and

composites are rapidly evolving towards autonomous analytical devices that perform

sophisticated analytical processes.

Cost of electronics: The cost of electronic components has dropped over 30% in the

last 5 years, making many new business cases possible today. (Gartner, June 2014)

Network advances: The advances and standardization in Internet network

technologies allow rapid and low-cost promulgation of information from physical

sensors to be combined with the avalanche of related business process and consumer

activity data.

Business and governmental understanding of the potential benefit: Businesses

are realizing that this data can be used to optimize cost and delivery of industrial

services.


Smart Factory


Trends in Manufacturing

Productivity requires information moving to people rather than

people moving to the information. Remote Monitoring

• Predict and reduce downtime

• Improve decision making

• Refine processes

• Save Energy

Information

Leverage

Integrating customer preferences in development and production

processes, facilitated by exchanging data with machines

Industry 4.0

Social Media

Drone 3D printing

Big

Data

Exponential growth in data

due to low cost computers

and wireless sensors


Industry 4.0 & its use cases

Machines

organize

themselves

Supply

chains

coordinate

automatically

Unfinished

products

send data to

processing

machines

Predictive

maintenance

Flexible

products

Reduced

energy

consumption

Telepresence

platform for

service

maintenance

Industrial

software

security


Future of Manufacturing: Customer Centric Production

The manufacturing will follow the customer centric production process where customer knows the

status of the product and its stage. Customer can change the product feature before each stage of

production

Traditional Manufacturing Process

• Harmonization of Business

and IT structure

• Security aspects (like firewall,

SSL and user level) need to be

well established

• Modularization and reuse

strategies need to be

developed for cost effective

and highly productive factories

• Plant floor and top floor

employees need to be trained

to understand the impact

of the approaches

Smart Manufacturing Process Impact

Product Design

After Sales

Consumer

Product Planning

Manufacturing

Consumer

After Sales

Product Design


Future of Manufacturing: Mass Customization

Customization parameters for Region 1

Customization parameters for Region 2

Impact

• Localized teams need to be

trained for creating the product

and quality assurance

• Smart factories should work

on a different revenue model

based on the localization

• Need to have a data analysis

system which can analyze the

local customer requirements

Global Factory

Keypad Display size No front camera

3D printers Quality assurance

Local customer Group 1

Local product house

Quality assurance

Local customer Group 2

Keypad Display size No front camera


Future of Manufacturing: Self organizing factories

When a machine is faulty, production system automatically finds the best assembly line which can

meet the deadline and continue production

Impact

• Much more complex

communication across

subsystems on plant-floor

• Real time handling of errors

and decision making

• Every subsystem / device able

to communicate its status to

other subsystem

Production begins

Faulty machine communicates its state to MES

MES finds an alternate

path which needs to meet

• Dead line

• Cost

MES Instructs

faulty

assembly line

to change

the working

assembly line

Product is moved

to Assembly line - 2

Assembly

line – 2

instructs

MES

MES continue tracking

production process

Finished Product

1

2

4

6

3

5

Production

system 7

Unfinished product

Working machine

CPS

Unfinished product

Faulty machine

CPS

26

Assembly line 1 Assembly line 2

CPS : Cyber-Physical System


Future of Manufacturing: Flexible Factories

Factories will have Dynamic production line, in which product moves autonomously through the

CPS enabled workstations based on customer needs of the products

PLM

Impact

• Production system needs

to interface with 3rd party

systems for getting

customer inputs

• Production line needs to be

dynamic to have changes

in workflow

• Interface of PLM, MES,

Production line

Design

House 1

Design

House 2 • No front camera

• Low RAM

• Low Phone Memory

• White case

Configuration Configuration

• Front camera

• High RAM

• High Phone Memory

• Pink case

Configuration

• No front camera

• Low RAM

• Low Phone Memory

• White case

Configuration

• Front camera

• High RAM

• High Phone Memory

• Pink case

Customer A Customer B

Workstation Grid

27

4

1

7

5

2

8

6

3

9

CPS

CPS

CPS

CPS

CPS

CPS

CPS

CPS

CPS


Future of Manufacturing: Energy Consumption Reduction

Closed loop demand response power utility services and localized automated power management

system for the individual equipment in the industry

Pla

nt 1

Energy Monitor

HVAC Robot Lighting System

Pla

nt n

Energy Monitor

Pla

nt 2

Energy Monitor

Energy

Management

System

Impact

• Manufacturer have significant

scope in reducing energy

consumption

• Security aspects (like firewall,

SSL and user level) need

to be well established

• Different Trainings need to

be identified & provided to

white color and blue color

job holders



Demand

Response

Client

DRAS –

Demand

Response

Automation

Server

Utility Demand

Response Server Cloud


Future of Manufacturing: Predictive Maintenance, Downtime Reduction

Smart Maintenance avoids costly downtime and maintenance costs. The early identification of

symptoms of the machinery helps in deploying optimum resources, maximizes machine uptime and

improve supply chain processes.

Sensor 1

Sensor 2

• Checks life expectancy

data sheets

• Check against

boundary conditions

• Compare with similar

healthy systems

Impact

• System need to handle

complex predictive

maintenance analysis

• Need to connect your supply

chain with production system

• Form ecosystem with device

manufacturers

Component

Manufacturer

Place order

Historical

data from other

similar systems

Analytics Energy Motor

ORDER

29


A Smart Production Roadmap

Companies can take all three paths to greater efficiency and flexibility

30

Manual / unconnecetd produciton

Agile factories

Basic mfct.

services

Remote servicing

Demand driven

production

Pro

du

cti

on

sys

tem

&

pro

ce

ss

au

tom

ati

on

Semi-automated & Connected Serviceable & fully automated Intelligent /smart factories Externally connected production eco-systems

Dynamic Re-planning

RFID tracking

Remote Monitoring

Internally & externally integrated

Joint demand planning & execution

Dynamic spot marketplace

Automated process changes & SMED

Machine optimization

Maintenance as a service

Just in time Inventory

Mass customization

Predictive Maintenance

Plant floor Optimization

Ultra Postponement Of products/ parts

Dynamic scheduling and task mgmt.

Inventory adjustment based on material condition alert

I need

maintenance

in 200h

working hours

In 20 minutes,

I m going to get

assembled with

the wrong part

Internally integrated

Provision of digital Services to support maintenance & repair

Static process, Manual variant production (bespoke)

More advanced production and service systems and higher workforce skill requirements


New IT for the Industrial Internet of Things

What technologies will make the Industrial Internet of Things a source of

breakthrough innovation and competitive advantage?


Accenture Digital Plant Solution

HMI Clients

Plant

Remote HMI Devices

Digital Plant loT platform on DCPP/Azure

Universal Plant Gateway

Industrial Controller

Industrial Equipment/Devices

Universal Plant Gateway

Digital Plant Platform Cloud loT (Azure ISS)

Equipment Devices Sensors

Allan Bradley 5561 Siemens PLC S7 313C 2DP

WinCC/OPC Servers

Industrial

Internet


Accenture Digital Plant Framework is implemented for the following use cases

• Predictive Maintenance & Supply chain connectivity

• Remote Monitoring

• Expert Collaboration

Digital Plant Mapping to Industry 4.0

Digital Plant

Machines

organize

themselves

Supply

chains

coordinate

automatically

Unfinished

products

send data to

processing

machines

Predictive

maintenance

Flexible

products

Reduced

energy

consumption

Telepresence

platform for

service

maintenance

Industrial

software

security

Accenture

implemented the

framework and

basic scenarios

…

Supply chain

connectivity

Predictive

Maintenance

Expert

Collaboration

Service

Maintenance

Industrial

Security

33


Digital Plant Screenshots

Executive

Dashboards

Remote

Monitoring

Predictive

Maintenance

Expert

Collaboration


Conclusions


Unconventional Revenues

Incremental Revenues

Operational Efficiency

Sense and Act

Analyse and

Visualize Communicate

Smart Factory

Smart product

(Unfinished)

Smart product

(Finished)

Smart Logistics

Smart Product

(Delivered)

Smart Tool

IOT Benefits For Manufacturers

http://thenounproject.com/term/add-money/3047

http://thenounproject.com/term/growth/40672

http://thenounproject.com/term/gear/13834


Disrupt or be disrupted.

Start building the bridge to the future.

Decide to fight or flight.

Not to be the first, make sure the last.

Innovation is unforeseen.

Closing

Driving unconventional Growth through the Industrial Internet of … · 2015-11-16 · The Digital...

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