Say "Hello" to Industry 4.0: Flexible automation & the future of manufacturing

SAY ‘HELLO ’ TO INDUSTRY 4 .0

If you are not on the list, you want to be on it.

If you are on the list, you want to stay on it.

AVERAGE T IME ON THE FORTUNE 500 L IST

1950 2015

Source: Richard Foster, The Creative Edge, Deloitte

60 YEARS

12 YEARS

S AY H E L LO TO I N D U S T R Y 4 . 0

SO WHAT DOES THIS TELL US ABOUT INDUSTRY 4 .0?

“There is a clear correlation between innovation and revenue growth, with the most innovative companies growing 38% faster than

their stagnating counterparts over the last three years.” - P W C C O N S U LT I N G

WHAT IS IT?

HOW CAN IT HELP?

HOW DO I GET STARTED?

WHY? DO WE NEED TO ENGAGE IN INDUSTRY 4.0 CAPABILITY…

O V E R T H E N E X T D E C A D E

3 . 5 M I L L I O N U S M A N U FA C T U R I N G J O B S

W I L L B E N E E D E D W I T H A P P R O X I M AT E LY

2 M I L L I O N L I K E LY T O G O U N F I L L E D

- D E L O I T T E

LABOR SHORTAGE

T H E N U M B E R O F D E R I V AT I V E S O F A N E W C A R I N C R E A S E D 1 0 0 % F R O M 2 0 0 2 T O 2 0 1 1

INCREASINGLY COMPLEX SUPPLY CHAIN

T H E M A N U FA C T U R I N G S E C T O R I N T H E U . S . H A S N O T G R O W N A S FA S T A S T H E R E S T O F T H E E C O N O M Y A N D, A S A R E S U LT, I T S S H A R E O F T O TA L O U T P U T

H A S FA L L E N F R O M 2 4 % I N 1 9 7 0 T O 1 2 % C U R R E N T LY.

COST PRESSURES

T O D AY ’ S W H Y

I S T O

I N O U R M A R K E T

O U T PA C E C H A N G E

W H Y N O W I S A N Y D I F F E R E N T ?

T H E 3 R D I N D U S T R I A L R E V O L U T I O N P R O V I D E D F I X E D A U T O M AT I O N T O C O M P L E T E S P E C I F I C TA S K S .

B U T O U R M A R K E T P L A C E I S C H A N G I N G Q U I C K LY A N D W E N E E D P R O D U C T S T H AT W I L L A D A P T W I T H O U R B U S I N E S S .

A D A P T I N G

I N T E L L I G E N C ER E Q U I R E S

I N T E L L I G E N C E

P R O C E S S I N G O F D ATAR E Q U I R E S

N O W I S T H E T I M E F O R I N D U S T R Y 4 . 0 B E C A U S E : • D ATA S T O R A G E I S I N E X P E N S I V E • C O M P U TAT I O N A L P O W E R H A S A D V A N C E D T O

A C C O M M O D AT E I N D U S T R I A L N E E D S • D ATA N E T W O R K I N G E N A B L E S F R E E F L O W O F D ATA

A D V A N C E M E N T S H A V E L E A D T O P O W E R F U L , I N T E L L I G E N T S E N S O R S AT A P R I C E P O I N T T H AT

O F F E R H I G H R O I I N T H E I N D U S T R I A L S PA C E .

WHAT? IS THIS INDUSTRY 4.0 THING…

I N D U S T R Y 4 . 0

I N T E R C O N N E C T E D I N D U S T R I A L E Q U I P M E N T

T H AT P R O V I D E S

C E N T R A L I Z E D O P E R AT I O N A L D ATA

INDUSTRY 4 .0

SMART FACTORY

INTERNET OF THINGS ( IOT)

CYBER PHYSICAL SYSTEMS

INTEROPERABIL ITY

VERTICAL NETWORKS

BIG DATA

T H E P H Y S I C A L W O R L D I S B E C O M I N G A T Y P E O F I N F O R M AT I O N S Y S T E M — T H R O U G H S E N S O R S A N D

A C T U AT O R S E M B E D D E D I N P H Y S I C A L O B J E C T S A N D L I N K E D T H R O U G H W I R E D A N D W I R E L E S S N E T W O R K S

“ P R O C E S S A N D D E V I C E W I L L B E

I N S E P E R A B L E ” - M C K I N S E Y R E P O R T

ABOUT 25 BILLION OBJECTS WILL BE INTERCONNECTED BY 2020.

TODAY, THERE ARE 3.8 BILLION SUCH OBJECTS

G A R T N E R S T U DY

HOW CAN IT HELP? THIS INDUSTRY 4.0 THING…

T H E M A N U FA C T U R I N G S E C T O R IN THE U.S. HAS NOT GROWN AS FAST

AS THE REST OF THE ECONOMY … TOTAL OUTPUT H A S FA L L E N FROM

24% IN 1970 TO 12% CURRENTLY

INDUSTRY 4 .0 CAPABIL IT IES ENABLE INFORMATION TO BE

TRANSMITTED INSTANTLY.

I M A G I N E R O B O T I C W O R K C E L L S T H AT A R E S E R V E D B Y S E L F - D R I V I N G V E H I C L E S

T H E F A C T O R Y O F T H E F U T U R E W I L L :

I N C R E A S E E F F I C I E N C Y

R E D U C E C O S T S

A D A P T

C E N T R A L I Z E D O P E R AT I O N A L D ATA I N M A N U FA C T U R I N G O F F E R S

1. Lean Process Optimization

2. Predictive Maintenance

3. Elimination of Quality Process

1. LEAN PROCESS OPTIMIZATION

Systems will become interconnected and know the exact location of every part at any given time and build in probabilities to have only the parts needed delivered to the line.

The system will be able to extend beyond limit of individual factories and interconnect multiple facilities to accomplish goal of lean.

• R E D U C E M A I N T E N A N C E C O S T S B Y 1 0 T O 4 0 %

• R E D U C E D O W N T I M E B Y 5 0 %

• L O W E R E Q U I P M E N T A N D C A P I TA L I N V E S T M E N T B Y 3 T O 5 % B Y E X T E N D I N G M A C H I N E L I F E

– M C K I N S E Y S T U DY

T H E P E R C E N TA G E S A N D C O S T, T H E P O T E N T I A L F O R S A V I N G O P E R AT I O N A L E F F I C I E N C Y A N D U S E O F R E S O U R C E I S S I G N I F I C A N T.

2. PREVENTATIVE MAINTENANCE

3. EL IMINATION OF QUALITY PROCESS

T R A D I T I O N A L T E C H N O L O G Y I S G O O D AT R E V I E W I N G A D E F I N E D S E T O F P R O B L E M S , B U T M A C H I N E L E A R N I N G

T E C H N I Q U E S C O U L D P O T E N T I A L LY E L I M I N AT E T H E P R O C E S S O F T E S T I N G A L L T O G E T H E R B Y P R E D I C T I N G

Q U A L I T Y E A R LY I N T H E M A N U F A C T U R I N G P R O C E S S A N D K N O W I N G W H E N T H E S Y S T E M I S G O I N G T O F A U LT.

W H AT I F :

- Systems present and act on optimization opportunities

- Adapt to changes in real time - Facilities learn from each other

C L E A R P A T H C O N F I D E N T I A L

Say Hello to Industry 4.0

SOUNDING FAR FETCHED? M O S T N E V E R T H O U G H T W AT S O N W O U L D B E AT T H E J E O PA R D Y

C H A M P I O N O F T H E W O R L D .

“Humans can typically create one or two good models a week; machine learning can create thousands of models a week.”

T H O M A S H . D A V E N P O R T, A N A LY T I C S T H O U G H T L E A D E R E X C E R P T F R O M T H E W A L L S T R E E T J O U R N A L

HOW CAN I IMPLEMENT? THIS INDUSTRY 4.0 THING…

S T E P 1 : R E C O G N I Z E T H E C H A N G E P O T E N T I A L , V A L U E

C R E AT I O N , A N D C O S T R E D U C T I O N S W E C A N A C H I E V E .

S T E P 2 : M A K E T H E S Y S T E M U S E R - F R I E N D LY S O T H AT E N D

U S E R S C A N I M M E D I AT E LY R E A C T W I T H O U T G E T T I N G B L O C K E D O N I N T E R D E P E N D E N C I E S .

S T E P 3 : W O R K W I T H PA R T N E R S W H O D R I V E T H I S V I S I O N

T H R O U G H T H E I R P R O D U C T O F F E R I N G

– M C K I N S E Y R E P O R T

MATERIAL HANDLING ACCOUNTS FOR:

PRODUCTION COST EMPLOYEE TIME FACTORY SPACE PRODUCTION TIME

75% 25% 55% 87%

– C O N C O R D I A U N I V E R S I T Y

S M A R T M AT E R I A L T R A N S P O R T = S M A R T FA C T O R Y

B Y C O N T R O L L I N G M AT E R I A L T R A N S P O R T Y O U H A V E A C C E S S T O

C R I T I C A L O P E R AT I O N A L D ATA

“ B L A C K B O X ” M A N U F A C T U R I N G P R O C E S S

B Y A U T O M AT I N G M AT E R I A L F L O W, W E K N O W :

Part location of all inventory

Cycle time of production cell

Uptime / Downtime

Units produced

Quality Rate

This data provides opportunity to advance change and improvement

M AT E R I A L F L O W I S C O M P L E X A N D C H A N G E C A N N O T H A P P E N O V E R N I G H T…

B U T T E C H N O L O G Y I S A D V A N C I N G Q U I C K LY A N D B R I N G I N G U S S T E P S C L O S E R T O O U R V I S I O N O F T H E ‘ S M A R T F A C T O R Y.’

Era 1: Early Industrial Robotics1955 – 1980

Era 2: Autonomous Guided Vehicles1980 – 2015

Era 3: Self-Driving Vehicles2015 – 2025

No Navigation Infrastructure

Safe and Collaborative

Parallel Operation

Adapts to Change

Fixed Infrastructure

Sequential

InflexibleLimited application

Short move transfers

S E L F D R I V I N G V E H I C L E S F O R I N D U S T R Y

C O N F I G U R AT I O N S

"I believe that we are at the dawn of an innovation wave that will soon hit the material handling industry. The convergence of

big data, faster and cheaper computer power, and increasing demands of customers will likely accelerate the adoption of

innovative products and services."

S C O T T S O P H E R P R I N C I PA L , D E L O I T T E C O N S U LT I N G L L P

I N D U S T R Y 4 . 0 I N N O R T H A M E R I C A N E E D S

C H A M P I O N S A N D T H O U G H T L E A D E R S

E N G A G E I N D U S T R Y 4 . 0 AT:

W W W. O T T O M O T O R S . C O M

Say "Hello" to Industry 4.0: Flexible automation & the future of manufacturing

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