The Transformative Journey to M4.0: Challenges and ... · business, identifying growth and...

The Transformative Journey to M4.0:Challenges and Opportunities

September 13, 2017Smart Manufacturing Seminar Series

BOLD IDEAS - POWERFUL CONNECTIONS - WINNING STRATEGIES

Today’s Speaker

Jeff MoadExecutive Editor & Research DirectorManufacturing Leadership CouncilFrost & Sullivan

[email protected]

mailto:[email protected]

Today’s Agenda

About the Manufacturing Leadership Council

Manufacturing 4.0 in Context

Momentum is Building

M4.0 Challenges

Progress is Being Made—Case Studies

The Way Forward

2018 Manufacturing Leadership Awards & Summit

Imagine a Better Future for Manufacturing …

The Transformative Journey to Manufacturing 4.0

ABOUT THE ML COUNCIL

Imagine a Better Future for Manufacturing …Manufacturing Leadership Council VisionTo create and inspire a global community of manufacturing executives who believe in the proposition that manufacturing is the fundamental driver of economic and social prosperity, and that its growth will lead to a better future and a higher standard of living for all people.

Manufacturing Leadership Council MissionTo enable manufacturing executives to achieve transformational growth for themselves, their companies, and for the industry at large through enlightened leadership.

In support of this, the Council focuses on the intersection of advanced technologies and the business, identifying growth and improvement opportunities in the operation, organization and leadership of manufacturing enterprises.

The Council delivers thought leadership, networking events, exclusive research, and a portfolio of high-value services around a member-defined set of Critical Issues that are shaping the future of manufacturing.

ML Council Membership Portfolio

Senior-level collaborative business leadership network. Member-driven agenda, M4.0-focused programs, Industry-wide.

800+ Council Members & Associate Members

Executive Summit: June 11-13, 2018Join senior-level executives making a disruptive difference with M4.0. Bold Ideas for a Better Future: www.MLSummit.com

Industry Innovation Awards Independently-judged annual

awards honoring industry leadership, innovation, and achievement:

http://mlawards.gilcommunity.com

Global Business Network7,000+ ML Website Global Members2,200+ ML Linked In Group Members10,000+ ML Viewpoint Subscribers22,000+ ML Twitter Followers

Thought-Leadership JournalThe Harvard Business Review of Manufacturing

Written for the industry, by the industry. http://www.mljournal-digital.com

Hyatt Regency, Huntington Beach, CA.

www.ML-Council.com

Exclusive M4.0 ResearchLive Council Plant Tours

Extensive Cross-Industry Membership


MANUFACTURING 4.0 IN CONTEXT

Industrial Revolutions Over the Centuries

M4.0: The Next Industrial Opportunity

1960s 1870s 1780s 2000s

Mechanization,Line Production, Steam, Water

Computer Control,Semiconductors, IT, Automation, Miniaturization

Digitization +2030s

Cognitive MFG

M4.0

Production Powerand Complexity

Mass Production,Electricity, Assembly Lines,Division of Labor

Sensors, Connectivity, Data Analytics, Cyber-Physical Systems, Collaborative Robotics,Predictive Maintenance,3D Printing, Augmented Reality

1.0 2.0

3.0

The Next Industrial Revolution: What’s Driving M4.0?

M4.0: A 3 Dimensional UndertakingManufacturing 4.0 is the next stage of industrial progress, enabling mass customization on a global scale by factories and plants that are extensively networked, software-driven, intelligent, autonomous, and information-intensive.

M4.0 will disrupt existing business models and enable the creation of new ones, requiring manufacturing companies to rethink the fundamentals of their business, and adopt new IT and automation technologies, organizational models, and leadership approaches in an orchestrated manner.

M4.0

Leadership

Technology Organization

M4.0: Driving Fundamental Business Model Change In Manufacturing


M4.0

Leadership


MOMENTUM IS BUILDING

Technology Momentum: Digitization Will Surge

M4.0

Leadership


Now 5 Years

Digital Production/Assembly

Networked Plant Equipment

Electronic Integration with Suppliers/Customers

Predictive Analytics

Extensive Increase in Digital Platforms Over 5 Years

* completely/largely digitized

* extensively/partially networked

* extensively/partially implemented

10% 64%

41% 87%

50% 80%

39% 78%* extensively/partially integrated

© 2017 ML Council Research Surveys

Organizational Momentum: Integration

M4.0

Leadership


53%Over 50% of companies regard Cross-Functional Integration as a formal goal for the future

Key Reasons for Integration

#1 Cut costs, waste, and increase efficiency

#2 Improve communications, reduce errors, leverage skills

#3 Achieve greater speed and agility

Over one third have already adopted a Digital Thread approach

70% see Data Analytics as significant in driving functional integration© 2017 ML Council Research Surveys

Organizational Momentum: Collaboration

M4.0

Leadership


Command and Control Structures Giving Way to Collaboration

Now 5 Years

Collaborative: employees, customers, suppliers involved

Somewhat Decentralized: hybrid structures

Highly Centralized: hierarchical, command & control structure

Highly Decentralized: managers have significant autonomy

9% 39%

38% 29%

24% 11%

25% 13%


Organizational Momentum: Innovation

M4.0

Leadership


Key Innovation Goals Over Next 5 Years

#1 New Products #2 Manufacturing Processes#3 New Services#4 New Business Models #5 Supply Chain

The Importance of Competitive Innovation Will Rise Dramatically with M4.0

Customers, Business Partners, Suppliers, and Technology VendorsWill Be Main Innovation Collaborators Over Next Two Years


90% Increasing in importance

Leadership Momentum: New Skills

M4.0

Leadership


Overwhelming Majority Say M4.0 Needs Different Leadership Approaches and Skills

99%fully or partially agree

What Does M4.0 Leadership Mean?

#1 Having a vision for the future and a strategy to get there

#2 Inspiring and engaging everyone around me, every day

What New Skills Are Needed in an M4.0 World?

• How to use Analytics to help make decisions• How to integrate processes & functions• How to manage accelerating market change• How to lead collaborative organizations• How to create open, virtual working cultures


Leadership Momentum: New Roles

M4.0

Leadership


Source: 2017 August Manufacturing Leadership Journal


M4.0

Leadership


M4.0 CHALLENGES

M4.0 Technology Challenges

* Only One Third Have a Formal Technology Strategy in Place - 34%

* Over Half Think Cybersecurity Will Restrict or Hinder M4.0 Adoption - 54%

* Mixed Responses on Readiness of Technology Vendors

* Confusion Around Lack of Available M4.0 Standards


* Cost and Complexity of Upgrading Legacy Systems

* Understanding How to Manage and Maximize the Tsunami of Data

* Hard to Keep Pace with M4.0 Technology Developments - 56%

M4.0 Organizational Challenges

77%

Top 3 Integration Challenges Resistance to Change


• Changing What We Are Doing While Still Running the Business

• Cultural Change / Behavior Change 73%

• Middle-Level Managers

• Senior Executives

• Business Unit Leaders

• Supervisors & Managers

• Line Workers

30%25%20%14%11%• Putting in Place New Metrics,

Reward Systems, to Reinforce Integration

38%

M4.0 Leadership Challenges

Understanding the Benefits/Challenges

Manufacturing Leadership’s Top M4.0 Concerns

Leadership Readiness

Corporate Culture


M4.0 Leadership Challenges

92%Not at all, or only somewhat prepared

82%Very, moderately, or slightly vulnerable

Manufacturing Leaders NOT READY for M4.0

4 OUT OF 5Feel Vulnerable About M4.0 Success

13%Of leaders say M4.0 is well understood today

VERY FEW Understand M4.0 Impact


M4.0 In Action

PROGRESS IS BEING MADE …

M4.0

Leadership


M4.0 In Action

Project:Advanced Logic Planning Support

Description:Created a tool based on a sophisticated data-driven optimization model and smart algorithm that allows the company to dramatically reduce the time it takes to switch production lines from one product to another. The system, which replaces manual processes, allows Merck to optimize turnaround plans in near-real-time, enabling it to respond much more nimbly to market changes.

Outcome: Shorter lead times, lower inventory levels, smaller batch sizes and higher equipment utilization at plants in the network.

M4.0 In Action

Project:Cisco’s Digital Design and Manufacturing (DDM) Platform

Description:This initiative created a series of digital production data, visibility, and manufacturing applications that together, transformed how Cisco shares design and production data with its contract manufacturers. By getting the right data to the right people at the right time, Cisco effectively meshed its development and fulfillment supply chains, allowing it to get new products to market faster and more efficiently.

Outcome: Millions saved in reuse of parts, reduced part and tooling costs, and much faster prototype and tooling cycle times.

M4.0 In Action

Project:Lexmark’s Predictive Service

Description:Combines thousands of smart, connected printers in the field with predictive algorithms and models, allowing the company to predict and proactively fix service issues.

Outcome: Millions of dollars in savings for Lexmark and better service for customers.

M4.0 In Action

Project:Operations Talent Development Initiative

Description:Enabled Dow to develop an engaged workforce for the M4.0 era. Innovative programs use unconventional methods to uncover latent skills, motivations, and ambitions, and provide clarity of purpose through a guided process of self-discovery.

Outcome: Better developed employee capability and value, lower retention costs, increased morale and stability, improved engagement and effectiveness.

M4.0 In Action

Project:iWAREHOUSE

Description:Telematics tracking and data analysis system that reports on utilization and maintenance data of fork lift trucks and lift truck operator efficiency.

Outcome: Raymond’s customers can now optimize labor and equipment productivity, fleet utilization, industrial battery management and warehouse operations.


THE WAY FORWARD

M4.0

Leadership


The Way Forward—What You Can Do NowStart Your Journey Now…

Identify Areas of Maximum Competitive and Operational Opportunity

Launch Pilot Projects to Prove Concepts and Measure Gains

Embrace New Insights from M4.0 Technologies and Analytics

Create Collaborative Cross-Functional Teams to Share Ideas

Partner with Key Customers and Suppliers to Drive Innovation

Educate and Engage Your Workforce to be M4.0-Ready

M4.0: The Way Forward Think Big! Nothing will be Gained by Inaction

Align Your M4.0 Initiatives with Future Business Strategy

Learn, Experiment, and Embrace Risk

Explore New Business Models that Harness Market Disruption

Orchestrate Change Across the 3 M4.0 Dimensions

Develop New Leadership Skills and Digital Industry Acumen

Create a Culture of M4.0 Innovation & Success

Join the Journey to Manufacturing 4.0

www.ML-Council.com

Join Industry Thought-Leaders at the 2018 ML Summit

Nominate Your Innovative Projects for a 2018 ML Award

Join the World’s Foremost Industry Leadership Network

http://mlawards.gilcommunity.com

http://www.mlsummit.com

2018 Manufacturing Leadership Awards

Prestigious Annual Industry-wide Awards Program 10 Innovative M4.0 Project Categories Individual Category for Visionary Leadership Independently-judged Nominations Additional High Achievers & Manufacturers of the Year Awards 2018 ML Awards Gala Dinner, June 2018

Download Your Nomination Form Nowhttp://mlawards.gilcommunity.com

Celebrate Your Success!

2018 ML Awards Deadline: December 15, 2017

2018 Manufacturing Leadership Summit

• Manufacturing 4.0 Early Adopters• Thought-Leading Industry Speakers• Award-Winning Innovative Projects• Expert Panels• M4.0 Think Tanks• 2018 Critical Issues Annual Council Meeting• 2018 ML Awards & Gala Dinner

Accelerating the Journey to M4.0June 11-13, 2018

Hyatt Regency Huntington Beach, Huntington Beach, CA

www.MLSummit.com

http://www.MLSummit.com

Imagine a Better Future for Manufacturing

www.ML-Council.com

Jeff [email protected]

About the Manufacturing Leadership CouncilThe Manufacturing Leadership Council, part of Frost & Sullivan, offers an integrated portfolio of leadership networking, information and

professional development products, programs, and services for industrial executives worldwide. MLC’s mission is to help senior executives define and shape a better future for themselves, their organizations and the industry at large. MLC’s portfolio consists of the Manufacturing

Leadership website, an online global business network; the Manufacturing Leadership Council, an invitation-only executive organization; the annual Manufacturing Leadership Summit conference; the Manufacturing Leadership Awards program; and the Manufacturing Leadership

Journal. For more information, visit www.ml-council.com/about-us.

For questions regarding membership, please contact:

BOLD IDEAS - POWERFUL CONNECTIONS - WINNING STRATEGIES

mailto:[email protected]

The Transformative Journey to M4.0: Challenges and ... · business, identifying growth and...

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