FOURTH INDUSTRIAL

REVOLUTION
BEACONS OF TECHNOLOGY AND INNOVATION IN
MANUFACTURING
Why we need to act?

• Productivity stagnation, demand fragmentation

• Fourth Industrial Revolution – a solution
• Most are stuck in pilot phase
• Actors will be leaders
Leaders and Laggers
Automation potential
Forerunners across the world
Lighthouse Characteristics

 Injectors of human capital

 Resetting benchmarks
 Open to innovators and collaborators
 Also to SME
 For Developing and developed economies
 High impact with minimal replacement
Charting a course for scale

• Innovate the production system

• Innovate end to end value chain
Value drivers for impact

• Big data decision-making

• Democratized technology on the shop floor
• Agile working models
• Minimal incremental cost to add use-cases
• New Business models
1. Big data decision making
Bosch Automotive,
Wuxi
• Journey started in 2015

• >10% increase in output in selected areas, within 2017.

2. Democratized technology on
the shop floor Tulip
Interfaces, MA
• Manufacturing apps – without code

• Bottom-up digital transformation

3. Agile Working mode
Fast Radius,
Chicago
• Network of empowered teams

• Software-enabled rapid decision and learning cycles

4. Minimal incremental cost to
add use-cases
Microsoft, Suzhou
• Connection of equipment

• Prediction using big data

• Application of machine learning

=> 30% Yield improvement within completion of one use-

case.
5. New Business models
European consumer electronics
manufacturer
• Continuously changing market demands
• Disruption - Existing value chain
• Creation - New Business models

– Time for new product introduction: -90%

– Capital bound in inventory: -75%
– Manual assembly time per product: -80%
– Investment in design-specific tools: -100%
– CO2 output: -50%
Four scale-up enablers

• Fourth Industrial Revolution strategy and business case

• IOT architecture built for scale up
• Capability building through acquiring new skills
• Workforce engagement
1. Fourth Industrial Revolution
Strategy, Business case BMW
group
• Effectiveness - IoT

• Mindset - “Sharing is caring”

• Easy access – ‘As simple as possible’
2. IoT architecture built for scale
up
• Hazardous chemicals – safety Texmark
Chemicals
• IoT – reduced human risk

• Accessibility of data
• Fast trial and error
• Agile architecture design
3. Capability building through
acquiring new skills Tata
Steel
• Workers with specialized skills – requirement

• Internal Advanced Analytics Academy

• >200 people trained
• Hackathon – Real life Tata steel situation
4. Workforce engagement
Schneider Electric,
France
• 3-D virtual reality model of factory

• Forum – discussion for improvement

• Shift in factory management practices
• Interconnection of factories
CASE STUDY: SUCCESSFUL
DEPLOYMENT
P&G,
• Started in 1875
Rakona
• 4 million cases – daily production

• Significant drop in demand – 2010 to 2013

• Need for expansion - 2014 to 2016

Vision – “WE ARE RAKONA, WE CREATE THE FUTURE”

TOP FIVE USE CASES:
• Digital direction setting
• In-process quality control
• UPack
• End-to-end supply chain synchronization
• Modelling and simulation
RESULTS
• Productivity has increased by 160%
• Customer satisfaction has increased by 116%
• Customer complaints have been reduced by 63%
• Full plant cost has been reduced by 20%
• Inventory has been reduced by 43%
• Off-quality products have been reduced by 42%
• Time for changeover has been reduced by 36%

All within three years.

World Economic Forum
suggestions

• Augment, instead of replace, the operator

• Invest in lifelong learning
• Diffuse technologies - geographical areas
• Include SME's
• Cybersecurity
• Collaborate
• Change of climate