Using Industry 4.0 & tech to improve productivityIn partnership with: Using Industry 4.0 & tech to....
Transcript of Using Industry 4.0 & tech to improve productivityIn partnership with: Using Industry 4.0 & tech to....
In partnership with:
Using Industry 4.0 & tech to
Presented by NZMEA Chief Executive Dieter Adam
15 September 2017
improve productivity
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NZMEA / Callaghan Innovation Industry 4.0 study tourGermany 23 April – 5 May 2017• Three days at the worlds largest industrial
technology fair Hannover Messe
• Visiting leading German industrial technology companies:
- Bosch
- Festo
- Sew Eurodrive
- Cirp
- Bechoff
- Trumpf
- Trilux
- Fraunhofer
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Contents1. Establishing the need
2. Advanced manufacturing technologies (Overview)
3. Industry 4.0 – networked manufacturing:
4. Industry 4.0 – products and beyond
5. AR / VR
6. Keeping skills development in line with technology
7. Bringing your people along
8. A plan for New Zealand
0.1 Establishing the need
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Seasonally adjusted sales of machinery and equipment - including transport
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2012 2017
In our monthly business survey, manufacturers regularly report export sales >50% of total
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OECD June 2017Labour productivity continues to lag
1. Population-weighted average for the top 17 OECD countries for labour productivity, calculated using 2010 purchasing power parity exchange rates.Source: OECD (2017), Productivity database; OECD (2017), Economic Policy Reforms: Going for Growth 2017.
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Labour productivity – country comparison
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Working harder not smarter
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How to grow an economy without increasing wealthFigure 3. Potential GDP Growth
Source: Looking at the Stars – Speech by John McDermott, Assistant Governor and Head of Economics, RBNZ (26 July 2017)
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And… manufacturing is performing poorly by comparison
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Annu
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Multifactor Productivity
Primary industries
Manufacturing
Transport equipment, machinery and equipment manufacturing
Service industries
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What is the rate of defects in welding fabrication?
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New Zealand as 1.3 million FTE of employment
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Working harder not smarter
The Barista Effect
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Manufacturing is becoming more complicated at an accelerating rate
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The eroding margins of New Zealand manufacturingChallenge:• Globalisation
- Variable and unpredictable demand
- Price pressure from low cost economies
- Complicated supply chains
• Diversified
- Low volumes per variant
• Customer
- Short runs / batch size of one
• Demand
Challenge:• Shortened
- Increased investment in R&D required
• Product
• Life cycles
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The eroding margins of New Zealand manufacturingOur response:• Niche manufacturing
- Agile
- Responsive
- Innovative
The consequence:• Loss of scale (not that we had much)
• Increased cost
- Eroding margins and productivity
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The challenges and levers
Challenges:• To build and sustain globally competitive manufacturing
businesses
Levers:• Productivity (value created per hour Profitability
• Delighting the customer through excellent product and services
0.2 Advanced manufacturing technologies (overview)
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Advanced manufacturing technologies
• Additive manufacturing (3D printing) – plastics and metals
• Industry 4.0 (IIoT) – digitally networked manufact-uring
• Industry 4.0 (IIoT) – new products / services / business models
• Augmented reality / virtual reality
0.3 Industry 4.0 (IIoT) –digitally networked manufacturing
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Industry 4.0 (IIoT) – digitally networked manufact-uring
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Current methods to improve productivityAlready rely heavily on data acquisition and effective communication
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Industry 4.0 productivity improvement opportunitiesNetworked Manufacturing - more robust, and more efficient digital connection across all manufacturing assets and processes allows:• Acquisition of real-time performance information
• Optimisation of production planning and scheduling
• Real-time / early QA/QC
• Increased people flexibility in assembly
• Flexible production schedules (batch size = 1)
• Preventative maintenance and reduced downtime (Bosch Fellbach)
• Process optimisation
- Energy consumption FESTO Scharnhausen
- Fully automatic / self-organising production systems (FESTO; SEW Eurodrive)
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Acquisition of real-time performance information
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The concept of digital twin
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Optimisation of production planning and schedulingAxoom – a nice illustration of networked manufacturing
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Real-time / early QA/AC
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Increased people flexibility in assembly
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Flexible production schedules (batch size = 1)View Bosch Rexroth video: https://youtu.be/DrE0FShBfF4
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Preventative maintenance and reduced down time and process optimisation
AP
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Networked production architecture of the future
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Sew Eurodrive assembly cell
View video: https://www.youtube.com/watch?v=PY2TF3ZF0Kk
Assembly Cell
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Nothing new under the sun?
Gearbox assembly in SEW Eurodrive’s Graben-Neudorf factory, using CIM (Computer Integrated Manufacturing) in 1985
0.3 Industry 4.0 (IIoT) –new products / services / business models
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Industry 4.0 (IIoT) – new products / services / business models
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Out there, doin’ it already
0.4 Augmented reality / virtual reality
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AR-assisted assembly, servicing and repair
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DAQRI smart helmet
View video: https://youtu.be/t5ixBsHPMxk
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The future of manufacturing?
0.6 Keeping skills development in line with technology
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Jürgen Bechtloff
0.7 Bringing your people along
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Results from a 2016 survey of 1,500 workers across a range of industries in Germany
What role are new digital technologies playing in your work environment today?
Have these technologies made your life at work easier or harder?
0.8 A plan for New Zealand
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It’s about defending and building globally competitive manufacturing companiesNew Zealand manufacturers will:
• Have to ensure that they are not falling behind their competitors in terms of productivity gains and/or improved customer experience
• Evaluate and implement where appropriate Advanced Manufacturing Technologies to improve productivity and enable them to provide better products and services to their customers
• Only need to change & adopt new technologies to the extent required to stay globally competitive – but that could be a lot (and over what period of time?!)
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Conclusions1. Benefit assessment for these technologies is challenging, and
benefit realisation uncertain. Technology vendors usually fail to assist when it comes to preparing the business case
2. Vendor-independent assessment of Advanced Manufacturing Technologies will be a challenge for many manufacturers individually (shortage of time, skills/knowledge and senior management attention)
3. A major part of this assessment process is pre-competitive and hence best done collaboratively
4. Peer-to-peer learning has already proved to be a powerful tool to over-come the scale challenge we all face
5. There are opportunities to create additional scale benefits by working with parallel efforts in Australian manufacturing
6. There is a key role for government to support our efforts
7. Advanced Manufacturing Technologies will primarily benefit those who have already optimised their processes using existing approaches (LEAN, etc)
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Where to from here?• The NZMEA will continue to take a lead in supporting NZ
manufacturers in accessing new manufacturing technologies to build and sustain globally competitive manufacturing businesses
• Our role is to act as technology scouts, connectors and advocates in negotiating government support
• We are well down the track to form the Advanced Manufacturing Initiative (AMI), a virtual network of NZMEA members and others
• In and through the AMI, we’ll connect
- Manufacturers to create peer-to-peer learning opportunities
- New Zealand manufacturers with leading research facilities, technology developers and industry groups internationally
- NZ manufacturers as a group with similar industry-government initiatives overseas (e.g. IMCRC in Australia)
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Past and current activities
• Workshops with Dr Wagner, Fraunhofer Institute (June 2016)
• Established relationships with CSIRO and IMCRC (Aug. 2016)
• Conducted industry-readiness survey with AKL University and Callaghan Innovation (Feb. 2017)
• Organised study tour to Germany with Callaghan Innovation (April/May 2017)
• Preparing 2-day visit to Australia (use cases and research facilities) for November 2017
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Next
• Complete recruitment into the AMI
• Organise schedule of peer-to-peer learning events
• Set up database of existing / developing use cases in New Zealand
• Set up capability database for New Zealand (manufact-urers, consultants, research institutes and vendors)
• Work with IMCRC to organise visits by Fraunhofer experts
• Explore opportunities for ‘crowd-funded’ pilots, co-funded by Callaghan Innovation
• Work with govt agencies to set up Learning Factory