Sustainable Manufacturing: A New Paradigm for Progress
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Sustainable Manufacturing: A New Paradigm for Progress MLC Master Class Series Webinar with Dassault Systèmes February 17, 2021 Imagine a better future for manufacturing …
Transcript of Sustainable Manufacturing: A New Paradigm for Progress
Sustainable Manufacturing:
A New Paradigm for Progress
MLC Master Class Series Webinar with Dassault Systèmes
February 17, 2021
Imagine a better future for manufacturing …
Moderator
Paul TateCo-Founding Executive Editor &
Senior Content Director
Manufacturing Leadership Council
2021 MLC Critical Issues Agenda
© 2021 Manufacturing Leadership Council / NAM
Manufacturing 4.0 Sustainability:Scope of Opportunity
COVID 19: Road to Recovery
Factories of the Future
Transformative Technologies
M4.0 Cultures
Next Gen Leadership & Workforce
Manufacturing 4.0 Sustainability
The Journey to Manufacturing 4.0
Global Shift to Sustainable Manufacturing
Industrial commitments to ‘Net Zero’
more than doubled in 2020UN ‘Race to Zero’ Campaign
Cemex
Clif Bar
Jacobs
Biogen
Hogan Lovells
Crown Holdings
Colgate Palmolive
EcoLab
SAS Institute
Ford
General Mills
Nestlé
Unilever
Volvo
Microsoft
Novelis
LafargeHolcim
Boeing
BP
American Airlines
Hewlett Packard
Salesforce
Pepsi
Levi Strauss
Perrier
Guess
Johnson Controls
Saint Gobain
Owens Corning
Astra Zeneca
IKEA
Shell
Apple
Nespresso
Amazon…
© 2021 Manufacturing Leadership Council / NAM
+ GM’s All Electric Vision: Gerald Johnson, EVP of Global Manufacturing at GM,
Cover Interview, February 2021 ML Journal
1,541 more companies
committed to Net Zero in 2020,
an estimated 3-fold increase over 2019
Companies Transitioning to Circular
Industrial Economy Models
Moving from traditional ‘Take, Make, Dispose’ approaches
towards a future more sustainable and circular
‘Reuse, Remanufacture, Recycle’ industrial model.
Key Driver of Future Competitiveness & Growth
MLC M4.0 Sustainability Survey, December 2019:
© 2021 Manufacturing Leadership Council / NAM
Sustainability: The Next M4.0 Inflection Point?
Michele D’AlessandroVice President & CIO Manufacturing IT, Merck, MLC Board of Governors
“I don’t think we completely
understand yet what sustainability will
mean for the future of production.”
“I think all companies will ultimately
be forced by their customers to push
that green button.”Detlef ZühlkeIndustry 4.0 Pioneer, Executive Director, SmartFactory EU network,
MLC Board of Governors
MLC Novelis Dialogue, MLJ October 2020; Manufacturing 2030: Visions of the Decade to
Come, MLJ December 2020; The Circular Production Economy, MLJ February 2021
“We’re at an inflection point. There’s
no doubt it’s coming and it’s going to
be a game-changer.”Bea Landa, Vice President, Metal Procurement & Recycling North America, Novelis
“Before any meaningful sustainability
effort can take hold, the foundation for
digital transformation must be built and
leveraged by everyone.”
Francisco Betti, Head of Advanced Manufacturing and Production, World
Economic Forum; Lawrence Whittle, CEO, Parsable, Member of Forbes
Technology Council & WEF* Next M4.0 Sustainability Survey - December 2021
© 2021 Manufacturing Leadership Council / NAM
Thomas Muth
MLC Master Class Expert Speaker
DELMIA Strategic Business Development &
Offer Marketing Director
Dassault Systèmes
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Sustainable Manufacturing can play a key role in achieving the UN’s 2030 Agenda for SustainableDevelopment.
With the industry and manufacturing sectors accounting for 41%of global GDP, the production sectors are at the crossroads ofeconomic impact and resource use. Companies need to find waysto remain competitive and sustainable with fewer resources.
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Sustainable Operations is an Imperative
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of CEOs believe that Sustainable Development Goals (SDGs) provide an opportunity to rethink approaches to sustainable value creation.
already see opportunities to contribute to the SDGs through their core business.
believe that business will be the single most important actor in delivering the SDGs.
of executives expect theirproducts to be low carbonby 2028.
Source: YouGov poll 2018
87% 78% 49% 52%
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Sustainable Operations is an Imperative
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Registrant Polling:Does your organization have a sustainability charter in manufacturing
operations for 2021?
Yes No
No
32%
Yes
67%
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Increase in market performance,over a three year period, for companies that focus their sustainability efforts primarily on material social and environmental factors.
Transitioning to a Circular Economy can unlockglobal GDP growth of $4.5 trillion by 2030.
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16% $US$ 4.5TRILLION
Sustainable Operations are Good for Business
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Fragile
Slow
Rigid
Static
Resilient
Fast
Agile
Dynamic
• Re-shoring drives new / re-configured plants
• Mergers, acquisitions, bankruptcies drive new alignment
• Resiliency top of mind with executives
• Transformation message has new urgency
Manufacturers Evaluating
Crisis Performance
Seeking Alternative
Operations Strategies
INDUSTRY is Looking for Reduced Risk Transformation
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Sustainable Operations Framework
PEOPLE PLANET PROFIT
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PEOPLE
Sustainable Operations Framework
Workforce of the Future
SAFETY
COLLABORATION
EMPOWERMENT
AUTONOMY
FULFILLMENT
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Sustainable Operations Framework
Human Experience
Virtual Simulation of Workplace Possibilities
Employee Safety, Autonomyand Fulfillment
Collaboration andEmpowerment
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Sustainable Operations Framework
PLANET
Global Operations Optimization
BETTER PLAN
ELIMINATE WASTE (MUDAS)
ALL ACTIVITIES
ALL OPERATIONS
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Sustainable Operations Framework
Virtual Model of Operations Possibilities
Real-time Operations Performance Feedback
Optimization and Simulation
VIRTUAL TWIN EXPERIENCE
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PROFIT
Sustainable Operations Framework
Value Network Orchestration
LONG TERM
PROFITABILITY
AGILITY AND SPEED
ALL VALUE STREAMS
ZERO CO2FOOTPRINT
FOSTERTRANSPARENCY
AND HARMONY
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Sustainable Operations Framework
Virtual Model of Stakeholders and Business Goals
Lean Operations Managementwith Dynamic Exception
Handling
Value Network
What-If, Collaborative DecisionSupport
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DELMIA Sustainable OperationsEnabling virtual experiences and real world evidence to enable:
Workforce of the Future Value Network OrchestrationGlobal Optimization
PEOPLE PLANET PROFIT
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Workforce-Lean Collaboration Example
Inset Video
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PerformanceEfficiency Innovation
Sustainability Twin Example
Plant Layout Factory Flow
SimulationMachine SimulationPlant Operations
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Virtual Twin Value on Sustainability
Consumer Packaged Goods: Sustainable product development supported by
3D modeling and simulation
Manufacturing plant optimization for products
Transportation / Mobility: Accelerate the vehicle concept, detailed design
and design verification stages, reducing physical
testing and optimizing for lower embedded carbon
footprint and (more) circular design
After-market performance optimization
Life Sciences Identify process improvements leading to
efficiencies across business and sustainability drivers
Combining data science, virtual collaboration,
modeling, and simulation (including of the human
body), for “in silico” drug/device development,
reducing impact on animals and people, use of
resources and time-to-market
Electronics / High Tech Informs decisions on whether to re-use, recondition,
recycle, or scrap items Enable better value recovery
at end of life
Use of virtual twin technologies to embed
sustainability at the design stage
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Value Network Orchestration
~ 1,000,000 meals per day
Amy's Kitchen is a family-owned,
privately held company that
manufactures organic and non-GMO
convenience and frozen foods
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Distribution Optimization
The Puzzle
• Limited Warehouse capacity at the plants requires
product to be shipped as soon as it is released
• Trucks must be booked prior to production to ensure
equipment available
• High variability between booking and shipping
(Schedule changes, Holds, Delayed Release)
• Inflexible ERP order process
The Solution
• Truck bookings determined 3 days out
• Load mix optimized up until the day before
• ERP Orders created just prior to pick
Benefit:
• Truck Utilization increased from <80% to >99%
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Planning with Uncertainty
Labor Availability (MP / Scheduler):
• Monthly plan updates to react to changes (MP)
• Run scenarios on alternative labor plans (MP)
• Model product mix changes around available labor (MP)
• Weekly monitoring of adherence to the labor plan
• Maximizing utilization of available labor (Scheduler)
• Integrated materials planning for complexity of schedule changes (Scheduler)
Product Availability (DRP):
• Complete process redesign
• Delayed decision on load mix to allow for changes
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Operational Sustainability Values
Reduction in overall time to market 30% | Increase safety 25% | Reduction in overall cost 20%
LOWER COSTS
FASTER DEVELOPMENT
OPTIMIZED TIME TO MARKET
INCREASED SAFETY
REDUCED FOOTPRINT
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Overcoming Barriers to Sustainability in Operations Investments
1. Ensure leadership support for tying together the technology, sustainability
and circular agendas including measuring and tracking value
2. Improve understanding of virtual twin technology and potential use cases
across the organization
3. Focus on scaling solutions with transformational sustainability impact, moving
beyond efficiency improvements
4. Build broad support with private, public sector and civil society to ensure long-
term success and help de-risk and pilot use cases
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Operational Sustainability
Support creation of Value Network
Empower the Workforce of the Future
Execute a virtual model of a physical system which brings in learning and experiences taken from REAL world
processes and updates the virtual twin model.
Achieve closed-loop sustainability from the convergence of the Virtual and Real Worlds.
Achieve Sustainable Innovation and Excellence
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Related Reads…Role of virtual twin in accelerating sustainability -
Whitepaper
https://www.3ds.com/sustainability/sustainability-
insights/designing-disruption
Transformation Journey Research Series
7 components of transforming operations
The 4 steps maturity transformation model for
operations
Key considerations in planning and executing your
transformation strategy
Where to Start and Create Value in Your
Transformation
https://discover.3ds.com/transformation-journey-
research-note-series
Q&APlease use the ‘Questions Box’ located on the right-hand side of your screen to submit your questions.
Thomas Muth
DELMIA Strategic Business Development
& Offer Marketing Director
Dassault Systèmes
Paul Tate
Co-Founding Executive Editor &
Senior Content Director
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The Manufacturing
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Additional Resources
https://www.manufacturingleadershipcouncil.com/2019/12/02/the-
sustainability-imperative-embracing-the-external-dimension/
The Sustainability Imperative: Embracing the External Dimension,
MLC Survey, December 2019
The Critical Role of Virtual Twins in Accelerating Sustainability
A Dassault Systèmes and Accenture Whitepaper https://www.3ds.com/sustainability/sustainability-insights/designing-disruption
Transformation Journey Research Series
A 4-step set of Research Notes, Dassault Systèmeshttps://discover.3ds.com/transformation-journey-research-note-series
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