Road To Industry 4 Point 0 Value Creation and Cost Reduction PDF

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KPAII WORKSHOP, 11 DESEMBER 2017

Rantai Pasok Global


The Challenges of Tomorrow

DRADJAD IRIANTO
Manufacturing Systems Research Group ITB
2

OUTLINE

• PENDAHULUAN
• INDUSTRIAL REVOLUTION
• i2.0 → i3.0
• i3.0 → i4.0
• COLLABORATIVE MANUFACTURING
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PENDAHULUAN
• The International Academy of
Production Engineering (CIRP) describes
manufacturing system as having an
integrated group of functions, i.e.
marketing, product design, process
design, production planning, production
process, and delivery to customer
(Caggiano, 2014 )
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PENDAHULUAN

• Developing manufacturing industries in


Indonesia is still necessary for nation
economic development and providing
jobs while contributing to the
preservation of nature.

(Industri Hijau , UU 13/2014)


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SUSTAINABLE MANUFACTURING
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SUSTAINABLE MANUFACTURING
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SUSTAINABLE MANUFACTURING chain…

NEW TERMS ..........


GVC Global Value Chain. GVC analysis focuses on the strategic global
dispersion of different value added activities in value chain from
the postioning in product specific value chain.
GPN Global Production Networks. GPN analysis focuses on how a
flagship firm’s production network is organized; how it is
dispersed across firms and borders; and how technology is
transferred among network participants.
GSC Global Supply Chain is a global system of organizations, people,
activities, information, and resources involved in moving a
product or service from supplier to customer.
TNCsTransnational Corporations
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Outsourcing & Kolaborasi

High
“Global” “Transnational”
Strategy Strategy
Cost Reduction
(Global Integration)

“International” “Multidomestic”
Strategy Strategy

Low

Low Local Responsiveness High


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PENDAHULUAN
• Manufacturing Competitiveness Index

Compete or Collaborate
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Stabilitas Pertumbuhan
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PREDICT TECHNOLOGY & MARKET

Surce: US National Science Foundation


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REVOLUSI INDUSTRI
i-
Cyber-Physical
Internet of things
Collaborative
manufacturing

Mass production
Interchangeable parts Industry 4.0
Quality control
Standardization Industry 3.0
Mass customization
Industry 2.0 Flexible Manufacturing
Computer integrated
Automation & robotic

Industry 1.0
Revolusi industri
e-
Mekanisasi produksi
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What ever the revolution is:


• The main objectives of an industry:
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INDUSTRY 2.0 → INDUSTRY 3.0

Designed
Satisfaction? Utility/
Quality
Market
? specifications
Set price Price
Profit ROI (Profit)
Total cost Target cost
Finished Finished
good good
Processes Processes
Raw Raw
material material
MASS PRODUCTION MASS CUSTOMIZATION
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INDUSTRY 2.0 → INDUSTRY 3.0


• Industrial automation & robotics
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Manufacturing Process & Design

Repair Design Off-line manufacturing:


creating more value
through product &
process design

Inspect Produce
Relocated industry to
Indonesia is a “maker”,
mostly is only focused on
On-line manufacturing: eliminate on-line manufacturing.
waste & reducing cost
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Starting from the end & finished at the beginning


(Habibie, Indonesian aircraft)

Technology for product


development through Repair Design
advancement of
production, inspection,
repair & design in double
loops.
Inspect Produce
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PT. Dirgantara Indonesia (Nurtanio)


NBO 105
1980 C212

N250

CN235 1995

Starting from the end, and Since


then
finished at the beginning

A380
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INDUSTRY 3.0 → INDUSTRY 4.0


More on value creation & cost reduction

Designed Designed
Quality Quality
Market Value added k
specifications
Price Price

ROI (Profit) Value added …


Target cost Target cost

Akumulasi biaya
Process k
Finished good Value added 2
Process …
Processes Process 2
Value added 1
Process 1
Raw material
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INDUSTRY 3.0 → INDUSTRY 4.0


More on value creation & cost reduction…
Core competence on process & worker
Designed
Quality
Industry K
Core competence k
Price

Industry …
Core competence …
Target cost

Akumulasi biaya
Process k
Industry B
Core competence 2
Process …

Process 2
Industry A
Process 1
Core competence 1

Value chain, networked, collaborative


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INDUSTRY 3.0 → INDUSTRY 4.0


SIPOC
Demand Pull

Outsourcing
Outsourcing + Internet connection
Outsourcing …
2 2 2
 g   g   g 
Var( y)    Var( x1 )    Var( x2 )  ...    Var( xn )
 x1   x2   xn 
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INDUSTRY 3.0 → INDUSTRY 4.0


Internet connection

INPUT PROCESSES (OUTSOURCING, GLOBAL) OUTPUT

Vendor &
retailers
Industry C
Industry A
Industry B

Industry K
Industry D
Suppliers Industry …

Networked &
collaborating Industries

Production processes and products are being digitized (cyber physical);


manufacturers, suppliers and customers are establishing closer networks, and innovation
cycles are being reduced.
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COLLABORATIVE MANUFATURING
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Demand from Demand from


local assembler abroad
Collaborative
Technopark
manufacturing management
System for SME
Existing SMEs
R&D – Human
engineering New SME resource dev.
design (start up)

Metrology & Financial &


Incubator
production legal supports
facilities

Assembler, after market & export


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COLLABORATIVE MANUFATURING
• Process outsourcing: a process selection model
Existing sytem

Stage 1 Stage i Stage N

Scrap 1 Scrap i Scrap N

Process 1 Process 1 Process 1

Rework 1 Rework i Rework N

alternative

Stage 1 Stage i Stage N

Scrap 1 Scrap i Scrap N

Process 1 Process 1 Process 1

Rework 1 Rework i Rework N

Scrap 1 Scrap i Scrap N

Process j Process j Process j

Rework 1 Rework i Rework N

Scrap 1 Scrap i Scrap N

Process M Process M Process M

Rework 1 Rework i Rework N

Jerusalem et al., 2015


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COLLABORATIVE MANUFATURING
• Process outsourcing: a process selection optimization
mathematical model to maximize profit
Cost of manufacturing Quality loss

Cost of process
improvement N M N M  
2 2 
    Y  t 
  ij   x  
 p   i
I cm x  A I    ij
i 1 j 1
i ij ij
 i 1 j 1  X i   X i   3   
   
N M 
 N M   f i R  rijR   R R R 
Max P  U .I ( N 1)   Qij xij   I i 1  c ( f i  rij ) xij 
 i 1 j 1 i 1 j 1 
 1   f i  rij 
R R  i

N M S S S 
 I i ci ( f i  rij ) xij 
 i 1 j 1 
Sales  

Cost of scrap Cost of Inspection


Jerusalem et al., 2015
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COLLABORATIVE MANUFATURING

• Global technology & market


• Global value chain
• Global supply chain
• Transnational cooperation
• Basis sumber daya industri &
Perwilayahan industri
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DEVELOPING INDONESIA
Implementation Roadmap:
• GOALS: industry development, technology innovation,
productivity improvement, inclusion for SME
• WHERE TO PLAY: potential sector (automotive, ICT, etc.),
technology choices (robotics, cloud, AR, 3D printing,
etc.), area of application choice (production, logistics,
etc.), geography domain (global, regional, local)
• HOW TO WIN: execution focus choice (government,
corporation, SME, etc.), enabler choice (policy,
infrastructure, R&D, market, etc.)
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TERIMA KASIH

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