Press Information

The next step in the industrial revolution

Industrie 4.0 – Digitalisation at Mercedes-Benz

Contents Page

Short version The Next Step in the Industrial Revolution 2 Press Information New Solutions for the Plant of the Future - Stations in the TecFactory 10

Daimler’s Top Management on Industrie 4.0 14

Long version The philosophy The next stage in the industrial revolution 15

The dialogue Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, Daimler AG and Michael 21 Brecht, Chairman of the General Works Council, Daimler AG, in a joint interview

The TecFactory From the idea, through testing to series production 26

The smart factory The completely networked value chain 32

The driverless transport system (FTS) Autonomous mobility around the plant 38

Virtual assembly Testing with avatars 39

Digitalisation of the next E-Class Intelligently developed, intelligently produced 42

Review Milestones in passenger car production history 52

Glossary Key specialist terms 55

The production network The worldwide plants and the Sindelfingen facility 58

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand Industrie 4.0 – Digitalisation at Mercedes-Benz

The Next Step in the Industrial Revolution

The automobile industry is facing fundamental changes. Alongside the electrification of the powertrain, autonomous driving and the development of new markets, it is above all digitalisation that is driving this process of change. This combination of the physical and digital is often referred to as "Industrie 4.0". Networking the entire value chain in real time is already more than just a vision for Mercedes-Benz. And the focus here is always on people - customers and employees.

"All major trends in the automobile industry are already driven by digitalisation, or are driving it themselves. Our aim is to be the world's leading, most innovative automobile manufacturer when it comes to digital technologies, too," says Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.

"At Mercedes-Benz, we use the term 'Industrie 4.0' to describe the digitalisation of the entire value chain, from design and development to production, where the term has its origin, and finally to sales and service," says Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, Daimler AG. "For us at Daimler, there is no question that the digital revolution will fundamentally change our industry. This applies to the methods by which we develop, plan and produce our vehicles. It applies to the way we make contact with our customers. And not least, it can be experienced through our products themselves."

The potential of the digital revolution is huge: If man, machine and industrial processes are intelligently networked, individual products of high quality can be created more rapidly, and production and manufacturing costs can be made competitive. Flexibility is another reason why Mercedes-Benz is actively helping to shape the digital revolution: The worldwide demand for passenger cars, commercial vehicles and mobility concepts is increasing. At the same time, the requirements of customers around the globe are becoming increasing diverse. While

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand Page 3

Mercedes-Benz was able to cover most customer requirements with just three basic passenger car models in the 1970s, there are now ten times as many. At the Sindelfingen plant, for example, it is extremely rare for two identical examples of the S-Class to leave the production lines. There is also an increasingly wide range of drive variants – alongside petrol and diesel engines, hybrid and fully electric drive systems are increasingly popular.

And the innovation cycles are increasingly shorter. All this culminates in the vision that automobile production will change from large-scale to "one-off" production, where every car is built to individual customer requirements.

From purely an automobile manufacturer to a networked provider of mobility services

The revolution is fully underway: With over one million users, the mobility service car2go is the world's largest car-sharing business. The moovel app shows users how a wide variety of means of transport can be combined to get from A to B efficiently – whether by car2go, ride-sharing, taxi or by public transport. Mercedes-Benz has consolidated all these services under one sub-brand – Mercedes me, which makes Mercedes-Benz reachable at any time. The portfolio extends from booking a service appointment to individual networking with the customer's own vehicle and personally configured financial services. Customers are also offered packages that go well beyond the car itself, e.g. lifestyle activities and entertainment.

The next E-Class – intelligently developed, intelligently produced

"Digital natives" is the term used for people who have grown up in the digital world. The future E-Class, the 213 series, is also a "digital native": from development to sales, digitalisation has made its mark on this series in all phases and areas. Digital solutions such as the networking of safety and assistance systems help to ensure the E-Class is the most intelligent saloon in its segment. Numerous innovations make it possible to drive semi-autonomously on motorways and country roads, and to enter and leave tight parking spaces by remote control using a smartphone app. Car-to-X communication provides early warning of dangers that lie ahead. Sophisticated radio technology turns the smartphone into a vehicle key.

When production of the next E-Class commences, numerous elements from the "smart factory" toolbox will already come into use. These include e.g.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Augmented reality: Here the actual status is visually overlaid on the design specification on a monitor. Deviations are immediately apparent. This procedure is used for factory planning, during assembly testing using virtual components and for the manufacture and commissioning of equipment components and production facilities

 Virtual assembly: Just as the movement control of a games console is able to imitate golf or tennis strokes, virtual assembly installs parts in a vehicle with amazing realism. By testing with an avatar, experienced employees can assess how the relevant job might best be carried out, or whether design changes are necessary.

 Digital process chain: The buildability of the vehicle is already verified at an early stage in the product creation process. This is ensured by the use of digital methods to represent a digital production process chain.

 360°networking (body-in-white): The complex network of 87 body-in-white production systems with 252 programmable logic controllers, 2400 robots and 42 technologies (spot welding, bonding, laser welding, mechanical joining etc.) for the 213 series is linked by approx. 50,000 intelligent network participants (IP addresses).

 Human-Robot cooperation: A lightweight robot on a mobile carriage is used to calibrate the head- up display. It carries the calibration camera on a lightweight GFRP arm and can calibrate both right and left-hand drive vehicles by one-sided access. Previously calibration was carried out by two permanently installed robots behind a protective fence.

The smart factory – the completely networked value chain

The 'smart factory' is the centrepiece of the digitalisation of the entire company. In the smart factory, the products, machines and the entire environment are networked with each other and connected to the internet. Integration of the real world into a functional, digital world enables a so-called "di-

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand Page 5 gital twin" to be created, which allows the real-time representation of processes, systems and entire production shops.

"Digitalisation enables us to make our products more individual, and production more efficient and flexible. The challenge is to plan for the long term while remaining able to respond rapidly to customer wishes and market fluctuations," explains Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Man- ufacturing and Supply Chain Management, Daimler AG.

Mercedes-Benz is following five major objectives with the smart factory:

 Greater flexibility: The smart factory allows production to respond even faster to global market fluctuations and changing, even more individual customer demand. Digital production also makes it easier to produce increasingly complex products.

 Greater efficiency: Efficient use of resources such as energy, buildings or material stocks is a decisive competitive factor; a completely digital process chain also means constant inventory control: components can be identified at any time and anywhere. Production facilities can be controlled from anywhere.

 Greater speed: Flexible production processes, simplified modification of existing production facilities and the installation of new facilities allow simpler, more efficient manufacturing processes. This in turn allows shorter innovation cycles, and product innovations can be transferred to more model series in a shorter time (time-to-market).

 Attractive working environment: Active interaction between man and machine, also using new operating interfaces, will change the working environment in many areas, e.g. in training and ergonomics. Taking demographic changes into account, this opens up new perspectives when creating new working and lifestyle models.

 Smart logistics: from vehicle configuration and ordering by the customer to the definition of required parts and their procurement, and then to production and delivery. To put this in visionary terms: "Once ordered, a vehicle looks for its production location and machine by itself."

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand Mercedes-Benz is already able now to digitally simulate the production process from the press plant to final assembly, and therefore to master the complexity of modern automobiles and their manufacture: for assembly alone, around 4000 individual processes are examined for technical feasibility long before series production commences.

Stage by stage, the smart factory concept is being realised in the global production network of Mer- cedes-Benz. The first two stages have already been clearly defined and substantially achieved:

 Mercedes-Benz now has global component standards, a standardised systems architecture and standardised automation, regulation and control technology.

 Wherever investments are made, globally standardised technology modules are used in robotics and production processes.

The next steps on the way to the production of the future are globally applicable equipment modules suited to product modules, and standardised working strategies. Before the end of the decade, this specific vision of the smart factory will come together in the form of a reference factory designed completely for the methods and processes described above.

Many processes that sounded like science fiction just a short time ago are already or will soon be in use in production:

 3D printing/Additive Manufacturing: Use in rapid prototyping (e.g. sand-casting moulds for engines), protective covers (e.g. for tooling in Human-Robot cooperation), tools (e.g. gripping elements)

 Human Augmentation/Mobile devices in production: New ways of calibrating head-up displays (from mid-2016), use of tablets for controlling robots inside vehicles (“InCarRob”) via Wi-Fi (worker instructs robots in headliner assembly)

 Machine learning/machines assist their users: The path to be followed by lightweight robots can be generated by “demonstration”, i.e. the worker leads the robots and the machine learns the path

 Production Data Cloud/worldwide availability of production data: For example, as the lead plant for compact models, Rastatt is able to access production data from all the other plants in the worldwide production network, e.g. Kecskemét, and would even be able to reprogram the robots in operation there.

Scientific backup on the way to the digital factory is provided by the ARENA 2036 project (Active Research Environment for the Next Generation of Automobiles): This is a research campus where Daimler conducts research into the future of production and lightweight design with partners from the scientific community and industry. The project will continue to the year 2036, when the automobile celebrates its 150th birthday.

The TecFactory – from the idea, through testing to series production

Daimler is a leader in innovative production technologies. For example, the company was the first in the automobile industry to recognise the potential of the sensitive lightweight robot and successfully test it for series production. Mercedes-Benz tests such new production concepts and ideas in the TecFactory. Numerous applications have already made their way from an idea, through testing and into series production. They include innovative logistical solutions using driverless transport systems (DTS).

One particular part of the TecFactory is the test factory. "This is where we try out the production processes of the future," says Andreas Friedrich, Head of the Technology Factory, Mercedes-Benz Cars, Daimler AG. "In the ideal scenario, the applications go straight from here to series production. This then gives us room to try out new ideas." The large production shop resembles an inventors’ convention: engineers and technicians are busily engaged at several workstations, operating small and medium-size robots, which grab and move components, or install components such as bodyshell grommets or sun visors.

Immediately noticeable in the test factory is the absence of protective fences, and there is open access to all workstations. "Fenceless production and Human-Robot cooperation (MRC) are the specialist terms used," says Friedrich. "This new, cooperative form of working without protective fencing is possible because the latest generation of robots are sensing." These intelligent robots use their sensors to register their immediate

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand surroundings and detect resistance. For example, they can stop their movement sequence if there is a person within their range of activity. Or they recognise collisions with components and can pause their movements.

Sometimes direct contact between man and machine is even expressly desirable: some lightweight robots start their work after being given a slight push. Or they are literally taken in hand: the employee moves their articulated arm to the starting point of the relevant task and they get to work. In so-called "Robot Farming", one employee will often look after several robots.

The working world of the future – focus on people

As a result of the digital transformation along the entire value chain, the working world and production processes are changing rapidly and comprehensively. Today, an assembly step is generally performed either by employees or by robots, which are placed behind protective fences for safety reasons and can be used in other production areas only with a great deal of effort. At Mercedes-Benz, the aim is real cooperation between robots and people (MRC) under the control of people. The direct cooperation between people and robots means the cognitive superiority of people is ideally combined with the power, endurance and reliability of robots. It facilitates different objectives: higher quality, increased productivity, new possibilities for ergonomic and age-conformant work. MRC is not aimed at the maximum mechanisation or full automation of activities.

Markus Schäfer: “In all changes, the focus will always be on people as customers and employees. People's experiences, creativity and flexibility will still be indispensable in many areas of automotive production. The factory of the future will in no way be without people.”

Michael Brecht, Chairman of the General Works Council, adds, “Technical changes are coming. To shape these properly, we need a new humanisation policy. The decisive factor is how to design the relationship between autonomy and control in the man-machine interaction. Either: people will tell the machines what to do. Or: people will be told what to do by the machines. The key is that we can prepare people very well through qualification.”

The story so far – Industrie 1.0 to 3.0

Industrie 4.0 describes the comprehensive digitalisation of all processes. Industrie 4.0 is the next stage in the industrial revolution. Here is an overview of the earlier revolutionary stages:

 Industrie 1.0: The first industrial revolution began in Europe in the second half of the 18th Century and initiated the transition from an agrarian economy to the division of labour and mass production.

 Industrie 2.0/Electrification: The second industrial revolution began worldwide in around 1860. Electrical energy allowed further rationalisation of production processes, with a further division of labour.

 Industrie 3.0/Automation: The third industrial revolution began in the 1960s and 1970s. Computer technology and microelectronics brought about new changes.

      Contacts:    Jörg Howe, tel: +49 (0)711 17-41341, [email protected]  Dr. Nicole Ladage, tel: +49 (0)711 17-49420, [email protected]   Further information about Mercedes-Benz is available online: www.media.daimler.com and www.mercedes-benz.com 

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  New Solutions for the Plant of the Future – Stations in the TecFactory

 Statio  Human-Robot Cooperation (MRC) – Hand-in- n 1 Hand Collaboration

 Applic  Production of dual-clutch transmissions (DCT) ation

 Benefi  Support in physically strenuous and monotonous t operations, increasing quality and efficiency

 Descri  A modern lightweight robot installs the components ption of the dual-clutch transmission (DCT). For a long time, only the human hand could detect whether the gears of the clutch plates were a perfect fit. The latest generation of sensing robots are now also able to feel whether the components are still interfering - and therefore in need of slight adjustment during assembly - or whether they fit. Following certification by the employers’ liability association, this robot type is already in regular operation in the Hedelfingen annexe of the Untertürkheim plant.

 Statio  Human-Robot Cooperation (MRC) and n 2 Driverless Transport Vehicle (DTV) – More Flexibility

 Applic  Battery installation in a hybrid vehicle ation

 Benefit  Rapid adaptation of logistics, simplification of assembly, replacement of bulky equipment, increase in quality and efficiency

 Descri  The vehicle body is delivered for battery installation ption by a driverless transport vehicle (DTV). To facilitate this, permanent magnets are installed all over the floor. Together with the route transmitted via Wi-Fi by the control system, this invisible magnetic matrix

enables the driverless transport vehicle to navigate.

 A modern, medium-size robot installs the battery with very high repeatability and, unlike before, there is no need to turn the battery. During the process, an employee monitors the robot's working area and removes any wiring that might be hanging in the insertion path.

 

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand   Statio  Human Augmentation – Man Replaces Robot n 3  Applic  Calibration of head-up display with mobile device ation  Benefi  Faster and more flexible wiring, lower costs t  Descri  The mirror of a head-up display (HUD) must be ption adjusted after installation, so that the display is exactly in the driver's field of vision. This calibration was previously carried out by two fixed robots, but for the new E-Class a lightweight robot on a movable carriage will be used instead. In future, things will become even more simple and flexible: An employee sits behind the wheel with a tablet computer equipped with two additional cameras. One camera calibrates the tablet's position to a certain point in the dashboard. Arrows on the screen tell the employee in which direction to move the tablet. Completion of this automatically triggers an image taken by the second camera and the image is then analysed. The setting parameters are sent to the HUD's control unit by Wi-Fi, via the OBD interface, and the necessary adjustments are made. The second camera then checks the position and form of the image.

 Statio  Virtual Assembly – Testing by Avatar n 4

 Applic  Final vehicle assembly ation

 Benefit  Early optimisation of individual assembly steps

 Descri  Similar to how a gaming console with movement ption control mimics the swing of a golf club or tennis racquet, virtual assembly enables components to be attached to a vehicle with remarkable realism. By

testing with an avatar, experienced employees can assess how best to execute the respective task. Mercedes-Benz implemented these findings for the first time in production planning for the forthcoming E-Class.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand 

 Statio  Human-Robot-Cooperation (MRC) – Robot On n 5 Board

 Applic  Final assembly with InCarRob ation

 Benefi  Assists with physically strenuous operations, t increases quality and efficiency

 Descri  With the so-called "InCarRob", the robot sits inside ption the vehicle and handles strenuous overhead tasks for which a human would also need to get in and out. This method is being used for the first time in an operational trial in the production of the Mercedes- AMG GT. The robot assembles the rear bulkhead and parcel shelf, screwing around 20 M5 and M6 bolts into their threads. 

 Statio  360°-Networking – Round-the-Clock Support n 6 Worldwide

 Applic  Remote access to production equipment ation

 Benefi  Quality, transparency, speed t

 Descri  Quality and other body-in-white parameters can be ption accessed worldwide in real time all the way down to sensor/actuator level. This is enabled by comprehensive, worldwide use of "Integra" control software and ethernet-based networking of all automation components. One benefit is that maintenance and problem solving can be handled remotely and improvements can be applied across all facilities. And often, technicians don’t need to take trips. Thus, the four C-Class plants (Bremen, Beijing/China, East London/South Africa, Tuscaloosa/USA) were able to support each other

during start-up. This is demonstrated via real-time access to a body-in-white welding station in Tuscaloosa.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand 

 Statio  Augmented Reality – Virtual world’s within one’s n 7 reach

 Applic  Production planning & quality control with mobile ation devices

 Benefi  Quality, leaner production t

 Descri  The production process can be optimised by fusing ption real and virtual planning at an early stage. Production quality, for instance, can be analysed on a mobile device using AURA (Augmented Reality Apps). This provides a comparison of actual versus specification, and virtual parts are evaluated in a real environment. Another example of augmented reality is automatic quality control with IRIS (Intelligent Reporting and Information System). This brings together on a screen, virtual images of the specified design status and camera images of the actual status. For instance, this is used to inspect the installation of a diagonal strut in the chassis. It saves time- consuming rectification further along the assembly line and assures quality.

 Statio  Start-to-Finish Digital Process Chain -- Without n 8 Delay Straight into Series-Production

 Applic  Powertrain ation

 Benefi  Shorter innovation cycles t

 Descri  The basis for all simulations is a 3D model from the ption design department. The casting or forging concept is worked out in close cooperation with the design engineers, and verified and optimised using extensive simulations. The digital process chain

continues when the components are machined. NC programmes for complete machining with all tools are simulated, optimised and passed directly to the machine tool that produces the parts. The machined parts are then fed to the assembly line. This is all comprehensively planned on the basis of the same data. Digital simulations are used to assess whether all the parts of an engine can actually be assembled, at which workstation which part will be installed and what ergonomic stresses this entails for the employees.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Daimler’s Top Management on Industrie 4.0

 "We are taking the lead in the digital age, too"

 "All major trends in the automobile industry are already driven by digitalisation, or are driving it themselves. Our aim is to be the world's leading, most innovative automobile manufacturer when it comes to digital technologies, too." Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes- Benz Cars

 "At Mercedes-Benz we use the term 'Industrie 4.0' to describe the digitalisation of the entire value chain, from design and development to production, where the term has its origin, and finally to sales and service." Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, Daimler AG

 "One of the most elementary management tasks in the automobile industry now and in the future is to maintain control of variety and complexity. One of the keys to this is the digitalisation of the entire value chain. This enables us in research and development to bring innovations to series production more rapidly." Prof. Dr. Thomas Weber, Member of the Board of Management of Daimler AG, Group Research & Mercedes-Benz Cars Development

 "We are taking the lead in the digital age, too, creating the conditions for an agile, networked organisation. This enables our employees to work with better ergonomics and higher efficiency." Wilfried Porth, Member of the Board of Management of Daimler AG, Human Resources and Director of Labour Relations, IT & Mercedes-Benz Vans

 The philosophy

 The next stage in the industrial revolution

 The automobile industry is facing fundamental changes. Alongside the electrification of the powertrain, autonomous driving and the development of new markets, it is above all digitalisation that is driving this process of change. This combination of the physical and digital is often referred to as "Industrie 4.0". Networking the entire value chain in real time is already more than just a vision for Mercedes-Benz. And the focus here is always on people – customers and employees.

 "At Mercedes-Benz, we use the term 'Industrie 4.0' to describe the digitalisation of the entire value chain, from design and development to production, where the term has its origin, and finally to sales and service," says Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, Daimler AG. "For us at Daimler, there is no question that the digital revolution will fundamentally change our industry. This applies to the methods by which we develop, plan and produce our vehicles. It applies to the way we make contact with our customers. And not least, it can be experienced through our products themselves."

 The potential of the digital revolution is huge: If man, machine and industrial processes are intelligently networked, individual products of high quality can be created more rapidly, and production and manufacturing costs can be made competitive. Flexibility is another reason why Mercedes-Benz is actively helping to shape the digital revolution: The worldwide demand for passenger cars, commercial vehicles and mobility concepts is increasing. At the same time, the requirements of customers around the globe are becoming increasing diverse. While Mercedes-Benz was able to cover most customer requirements with just three basic models in the 1970s, there are now ten times as many. The configuration options have also increased enormously. At the Sindelfingen plant, for example, it is extremely rare for two identical examples of the S-Class to leave the production lines. There is also an increasingly wide range of drive variants – alongside petrol and diesel engines, hybrid and fully electric drive systems are increasingly popular. And the innovation cycles are increasingly shorter. All this culminates in the vision that automobile production will change from large-scale to "one-off" production, where every car is built to individual customer requirements.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  This means that production must become increasingly flexible and efficient. The aim is the "smart factory", which is characterised by the ability to change, efficient use of resources and ergonomics, as well as the integration of customers and commercial partners into business and value-creation processes. More details on this can be found in the relevant section of this press kit.

 The TecFactory: From the vision to the road

 Every Mercedes-Benz is a highly innovative product manufactured with maximum precision. If it were a one-off production, it would be worth several million euros. The vehicle development and production teams in the TecFactory, part of Mercedes-Benz Cars Operations (MO), work very closely together to ensure efficient series production of the highest quality. This is where the progressive ideas and innovations inherent in every Mercedes-Benz are transformed from vision into reality.

 The principal location of the Technology Factory is Sindelfingen, but the unit also has a presence at other Mercedes-Benz production locations in Germany and abroad. The TecFactory is the central point of reference for partners in planning, vehicle development and product strategy for production and product concepts, and verifies their level of maturity. The TecFactory is the competence centre for outsourced parts, tools, production systems, the start-up factory and the press shop. In this role, the TecFactory is not only a driver of future-oriented production technologies; it also develops holistic factory concepts for the customised manufacture of Mercedes-Benz series-production vehicles worldwide.

 Robot Farming: flexible use of robots

 Robots are already to be found everywhere in automobile production - especially where tasks would be particularly stressful or even ergonomically harmful for people. Assembly operations are usually performed nowadays by employees or by robots. For safety reasons, the latter are always behind protective fencing.

 This is set to change. In future, people and robots will cooperate with each other directly, without fencing. This huHuman-Robot cooperation enables the best possible combination between the cognitive superiority and flexibility of man and the strength, endurance and dependability of robots. Not only does this improve quality, it also leads to considerable increases in productivity. At the same time, it opens up new possibilities in respect of ergonomic, age-compatible working conditions.

 "Robot Farming" is an industrial application of cooperation between people and robots. A single employee is in charge of one or more robots and uses them flexibly at various workstations, working with them in a common area without fencing. In 2014, Mercedes-Benz Cars received an award for the trailblazing "Robot Farming" production concept at the International Conference on Robotics and Automation (ICRA) in Hong Kong.

 "Digital prototyping" at the start of the development process

 Industrial processes are linked to each other in real time along the entire value chain. The real and virtual worlds increasingly become one – creating cyber-physical systems. This networking of the entire value chain means that Industrie 4.0 is more than just a matter of production. Mercedes-Benz also has a pioneering role in other areas. For example in "digital prototyping". In 2007, the predecessor to the current C-Class was the world's first series-production car to be conceived and developed entirely on the basis of a digital prototype (DPT). Mercedes-Benz uses this process to consolidate all computational methodologies and create a complete virtual image of the car.

 Indeed, the designers use the virtual world at an even earlier stage of the development process: They use a "power wall" and "CAVE" (Computer Aided Virtual Environment) for realistic, three- dimensional projections of the car, making it straightforward to compare, assess and modify different design ideas. Digitalisation therefore also multiplies the creative possibilities.

 From purely an automobile manufacturer to a networked provider of mobility services

 The revolution is fully underway: With over one million users, the mobility service car2go is the world's largest car-sharing business. The moovel app shows users how a wide variety of means of transport can be combined to get from A to B efficiently – whether by car2go, ride-sharing, taxi or

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand by public transport. Mercedes-Benz has consolidated all these services under one sub-brand – Mercedes me, which makes Mercedes-Benz reachable at any time. The portfolio extends from booking a service appointment to individual networking with the customer's own vehicle and personally configured financial services. Customers are also offered packages that go well beyond the car itself, e.g. lifestyle activities and entertainment.

 The car is being increasingly networked with its surroundings – opening up fascinating possibilities. It has now become almost standard for smartphones to be seamlessly integrated into cars. And the networking process does not stop there: cameras, ultrasonic and radar sensors constantly keep an eye on the surroundings, and are even able to predict where other road users will move. Today's cars can warn us if we become drowsy while driving or if there is insufficient distance to the vehicle in front. And it is no secret where all of this is heading – autonomous driving.

 More about the digitalisation of the automobile can be found in the section "Digitalisation of the next E-Class".

 The story so far – Industrie 1.0 to 3.0

 Industrie 4.0 is the next stage in the industrial revolution. Mechanisation, electrification and further automation using information technology (IT) are now being followed by digitalisation.

 Here is an overview of the earlier revolutionary stages:

 Industrie 1.0: The first industrial revolution began in Europe in the second half of the 18th Century and initiated the transition from an agrarian economy to the division of labour and mass production. The textiles industry in England was the pioneer. Inventions such as the Spinning Jenny by James Hargreaves (1764) or the mechanical loom by Edmund Cartwright (1784) ensured that machines would increasingly replace human labour. Large factories equipped with these new machines made it

possible to produce textiles far more rapidly and cheaply than with hand-operated spinning-wheels and weaving looms. Aside from the mechanisation of production, this phase was also marked by the increasing use of steam engines (invented in 1769 by James Watt) to replace human muscle and watermills as a source of power.

 Industrie 2.0: The second industrial revolution began worldwide in around 1860. Inventions such as the dynamo by Werner von Siemens (1866) ushered in this stage. Electrical energy allowed further rationalisation of production processes, with a further division of labour. The first conveyor belt entered service in the slaughterhouses of Cincinnati/USA in around 1870. Gottlieb Daimler and Carl Benz paved the way for individual mobility, with the first high-speed four-stroke petrol engine (1883) and the "Benz Patent Motor Wagon" (1886), acknowledged as the world's first automobile. In 1913, Henry Ford put the automobile industry's first "moving assembly line" into operation in Detroit. In 1928, Daimler Motoren Gesellschaft (DMG) switched the press shop in Sindelfingen from individual, manual production to series production using deep drawing presses. In the mid- 1930s, plant director Wilhelm Friedle introduced production-line assembly at the Sindelfingen plant.

 Industrie 3.0: The third industrial revolution began in the 1960s and 1970s. Computer technology and microelectronics brought about new changes. In 1961, General Motors used the first robot in the automobile industry. The "Unimate" had an arm weighing around two tons for handling hot die-cast components. In 1972, Mercedes-Benz was one of the first manufacturers in Europe to use a numerically controlled robot to weld the side walls of the S-Class. The programmable logic controller invented by Richard Morley (1969) was a further important development. This revolutionised the control of industrial systems. Apart from the automation of production, other characteristics of the third industrial revolution were the increasing internationalisation of business relationships and a structural change towards the service sector.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Dialogue: the Working World of the Future

 The focus is on people

 Digitalisation is one of the major trends in the automotive history. As a result of the digital transformation along the entire value chain, the working world and production processes are changing rapidly and comprehensively. This development raises many questions. Markus Schäfer and Michael Brecht provided some answers in a joint interview.

 Markus Schäfer (50) has been active as Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, Daimler AG since January 2014. He has more than 20 years of experience in production. Most recently, he was in charge of production planning for the passenger car business. Prior to that, Markus Schäfer headed the plant in Tuscaloosa, USA.

 Michael Brecht (50) has been active as Chairman of the General Works Council of Daimler AG since April 2014. He completed an apprenticeship as an automotive mechanic at Daimler-Benz in Gaggenau and, among other things, obtained further training as a time-and-motion-study technician. In 2011, he completed an extra-occupational study program in business administration at the Malik Management Centre in St. Gallen with a master's degree in management. Brecht has been a member of the Supervisory Board of Daimler AG since July 2012 and is currently active as Deputy Chairman of the Supervisory Board, the Mediation Committee, the Presidential Committee and the Audit Committee.

 Question: Mr Schäfer, Mr Brecht: What are the underlying factors and aims of the changes that are frequently associated with the term Industrie 4.0?

 Markus Schäfer: The name already reveals a part of the answer - we are facing an almost revolutionary upheaval in the industry. All big trends in the automotive industry are already driven by, or are driving, digitalisation. Our goal is to be the leading and most innovative automotive

manufacturer in the world with respect to digital technologies as well, and to achieve digitalisation of the entire value chain from design and development through production, where the term originates, and up to sales and service. If people, machines and industrial processes can intelligently interconnect, individual products can be created to a higher level of quality more quickly. Production and manufacturing costs can be structured competitively.

 Michael Brecht: And this will also offer new opportunities for employees: for example, on the one hand, digitalisation and the use of robots can relieve workers from physically strenuous activities in the future. On the other hand, if we set the limits appropriately now, people in industry will have a stronger controlling and monitoring function in future, rather than a purely operational one. This can make the work more interesting and more highly specialized. If we could look back at an automotive factory or an office of 25 or 30 years ago, we would probably laugh at what we would find. The working world has changed drastically since then. There are completely new jobs and activities, IT has seeped through into all areas and processes are organised very differently. We have to face it: these days, such major changes in the working world are much more rapid - and can take place within a period of five to ten years.

 Should Mercedes-Benz employees fear the digital changes that fall under the term "Industrie 4.0"?

 Schäfer: No. Of course, changes always present a challenge and require additional efforts. But Industrie 4.0 offers many opportunities - not only for the company as a whole but also - and particularly - for our employees.

 Brecht: Investments and innovations are really the best future safeguard we can ever have. And, we understand very well that the company must continue to raise its efficiency. It goes without saying that Daimler has to remain competitive. However, it is important to us that this does not take place at the employees' expense, but rather that we actively shape the transformation together - as a company, works council representatives and employees.

 Do you have any specific ideas for this?

 Brecht: Systematic and forward-looking training of present and future employees is certainly one key to this. The next wave of digitalisation coming up concerns an aging workforce; the number of young people is declining. This puts increasing focus on forward-looking qualification of the

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand necessary specialists and the reduction of physically strenuous work, if we are to avoid negative impact on employees. Specifically, this means we have to examine whether the vocational jobs and content we offer are still fit for the future, how the knowledge transfer between old and young can take place and, of course, that we must continue to train and develop the 50+ generation.

 Schäfer: In all changes, the focus will always be on people as customers and employees. People's experiences, creativity and flexibility will still be indispensable in many areas of automotive production. The factory of the future will in no way be without people. On the contrary: we expect that there will be new tasks and profiles for our employees and new products for our customers.

 One of the most important key terms is "Human-Robot cooperation" (MRC). How does that work?

 Schäfer: Flexibility is a major objective of the digital change process, which spans the entire value chain. In intelligent production, the so-called "adaptable manufacturing system" will play a key role and will require innovative MRC work models. Today, an assembly step is generally performed either by employees or by robots, which are placed behind protective fences for safety reasons and can be used in other production areas only with a great deal of effort. For us, MRC is a real cooperation between robots and people under the control of people. The direct cooperation between people and robots means the cognitive superiority of people is ideally combined with the power, endurance and reliability of robots. It facilitates different objectives: higher quality, increased productivity, new possibilities for ergonomic and age-conformant work. MRC is not aimed at the maximum mechanisation or full automation of activities.

 Brecht: The decisive factor is how to design the relationship between autonomy and control in the man-machine interaction. Either: people will tell the machines what to do. Or: people will be told what to do by the machines.

 If people tell the machines what to do, they can use the acquired freedom for innovation, control and regulating activities. Either by driving forward with new technological developments or by using the new possibilities of the systems for innovative processes and products. Work will become more interdisciplinary and working patterns potentially more holistic. At the same time, social skills will be given a higher priority because of the interconnections between formerly separate departments and disciplines and the growing importance of cooperation across companies and industries. This will lead to an increase in the general need for communication between people – directly and via computer.

 So far, we have only spoken about the factory of the future. But office work is also changing rapidly.

 Brecht: Work is becoming more flexible because it is less dependent on time and place and the distribution of labour can be organized more easily beyond company and spatial confines. The digitalisation of the working world is also opening up new opportunities for self-determination when it comes to the time and place of work. Today, we are already involved in a totally new debate about "mobile work" in the industry– in our company as well. About 30,000 colleagues in the group are "always on" – and can work at any time as if they were in their offices. We are currently in the process of researching the requirements and motivational aspects within the framework of a broad- based campaign at Daimler. In this context, the workforce is showing great interest in using these possibilities, motivated by diverse factors. Mobile work is often seen as a way of accommodating personal interests and duties without having to give up professional development opportunities. Many commuters hope for relief from long - and frequently unproductive - travel times. It’s no coincidence that the option of a flexible and mobile work schedule is among the top ten criteria in the Employer of Choice ranking.

 But this must not lead to the complete breakdown of work boundaries or the devaluation of employees and performance. We want fair conditions for mobile work and not digital day labour with poorly paid micro tasks.

 Schäfer: We want an agile and networked organisation that can help our employees make full use of their creativity and develop their ideas. For example, routine tasks such as simple invoice checking could be fully automated in future. At the same time, the infiltration of information and communication technologies into the working world means that work is becoming less dependent on fixed working hours, locations and organisations. Daimler currently uses more than 300 working

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand time models; in Germany alone, more than 25,000 employees are using the opportunity of mobile work and more than 11,000 employees take advantage of a variety of part-time models. The use of modern techniques for communication and work collaboration and the trend towards the individualisation of working time models will provide the company and employees with greater flexibility.

 Brecht: Technical changes are coming. To shape these properly, we need a new humanisation policy which brings up to date the criteria for good, humane work in working models, work organisation, working time (policy) and also qualification training and competence development, all against the background of digitalisation and Industrie 4.0. The key is that we can prepare people very well through qualification training. We also have to change some aspects of the legal framework. For example, it is not fair that employees who take part in company-financed continuing education programs in their free time should also be taxed on such programmes as non-monetary economic benefits.

 

 The TecFactory

 From the idea, through testing to series production

 Daimler is a leader in innovative production technologies. For example, the company was the first in the automobile industry to recognise the potential of the sensitive lightweight robot and successfully test it for series production. Mercedes-Benz tests such new production concepts and ideas in the TecFactory. Numerous applications have already made their way from an idea, through testing and into series production. They include innovative logistical solutions using driverless transport systems.

 An unassuming outside stairway leads into the inner sanctum of the production specialists and process engineers at Mercedes-Benz: "Ringbahn" (= "Circuit") is the name given to the spotless test factory in Building 40, so called because of its circular overhead conveyor system for vehicle bodies. The TecFactory has been in operation at the Sindelfingen plant for one and a half years.

 "This is where we try out the production processes of the future," says Andreas Friedrich, Head of the Technology Factory, Mercedes-Benz Cars, Daimler AG. "In the ideal scenario, the applications go straight from here to series production. This then gives us room to try out new ideas." The large production shop resembles an inventors’ convention: engineers and technicians are busily engaged at several workstations, operating small and medium-size robots, which grab and move components, or install components such as bodyshell grommets or sun visors.

 Human-Robot cooperation: hand-in-hand, without protective fencing

 Immediately noticeable in the test factory is the absence of protective fences, and there is open access to all workstations. "Fenceless production and Human-Robot cooperation (MRC) are the specialist terms used," says Friedrich. "This new, cooperative form of working without protective fencing is possible because the latest generation of robots are sensing." These intelligent robots use their sensors to register their immediate surroundings and detect resistance. For example, they can stop their movement sequence if there is a person within their range of activity. Or they recognise collisions with components and can pause their movements.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Sometimes direct contact between man and machine is even expressly desirable: some lightweight robots start their work after being given a slight push. Or they are literally taken in hand: the employee moves their articulated arm to the starting point of the relevant task and they get to work. In so-called "Robot Farming", one employee will often look after several robots.

 Programming skills are becoming increasingly unnecessary to operate the robots: Alongside the direct physical interaction described above, they can be controlled more and more intuitively using graphic interfaces on monitors and tablet-like input devices, or with a 6D mouse. This further development of the PC mouse allows robot movements to be controlled on six axes directly at the point of application. New interfaces such as these also relieve humans of monotonous and demanding physical work.

 But even though these cooperative robots work hand-in-hand with people, so to speak, "safety first" is of course a top priority at Mercedes-Benz. All robots must meet the stringent German health & safety at work regulations, and only then are they also used in other plants around the world. Daimler is working together closely on this with employer liability associations. These extensive tests include, for example, the use of load cells to verify that force and pressure limits are adhered to in the event of a collision.

 One good example of the sophisticated safety concept at Mercedes-Benz is the robot in the test factory which positions the side members for the E-Class. Right next to this long, sharp-edged steel panel is an employee installing small components – something previously unthinkable.

 Workstations in the TecFactory – new solutions for the factory of the future

 From a flash of inspiration to the test stage and series production – in the ideal scenario, this is the career path taken by the applications tested by Mercedes-Benz in the TecFactory. Here is an overview of some of the current projects:

 Human-Robot cooperation (MRC): production of dual-clutch transmissions -- Hand-in- hand Cooperation: A modern lightweight robot installs the components of the dual-clutch transmission (DCT). For a long time, only the human hand could detect whether the gears of the clutch plates were a perfect fit. The latest generation of sensing robots are now also able to feel whether the components are still interfering - and therefore in need of slight adjustment during assembly - or whether they fit. Following certification by the employers’ liability association, this robot type is already in regular operation in the Hedelfingen annexe of the Untertürkheim plant.

 Human-Robot cooperation (MRC) and driverless transport vehicle (DTV): installing the battery into a hybrid vehicle -- More Flexibility: The batteries for electric and hybrid vehicles must offer as much operating range as possible, and are correspondingly large and heavy. This makes their installation in vehicles difficult. Workers were previously assisted by an expensive, bulky and inflexible piece of handling equipment similar to a crane. Owing to its size, the battery also had to be turned before and after insertion through the luggage compartment aperture, so as to prevent damage to the edges of the aperture. A modern, medium-size robot controlled along a "virtual rail" now installs the battery with very high precision and without turning it, thus simplifying production. During the process, an operator using his eyesight monitors the robot's working area and removes any wiring that might be hanging in the insertion path of the battery. Because the robot responds very rapidly when the operator's hand leaves the controller (dead man's handle), man and machine can work closely together. This production technology is currently being introduced at the Bremen plant as part of the Mercedes-Benz hybrid offensive. Thanks to visualisation on the accompanying programming unit (SmartPad), the employee also receives information on the process status, line movement and actions currently required, enabling them to communicate and interact with the robot. The vehicle body is delivered for battery installation by a driverless transport vehicle (DTV). Only a keen eye will notice the special pattern on the floor of the TecFactory: permanent magnets are installed all over the floor. Together with the route transmitted via Wi-Fi by the control system, this invisible magnetic matrix enables the driverless transport vehicle to navigate. This magnetic matrix navigation is extremely flexible: changes in the production process require no physical modifications, as only the route needs to be adapted by the control system (more about DTS in a separate section).

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Human augmentation: calibration of head-up displays with mobile devices -- Man Replaces the Robot: The mirror of a head-up display (HUD) must be adjusted after installation, so that the display is exactly in the driver's field of vision. This calibration was previously carried out by two fixed robots, but for the new E-Class a lightweight robot on a movable carriage will be used instead (see the section on the E-Class). In future, things will become even more simple and flexible: An employee sits behind the wheel with a tablet computer equipped with two additional cameras. One camera calibrates the tablet's position to a certain point in the dashboard. Arrows on the screen tell the employee in which direction to move the tablet. Once in position, the second camera then checks the position and form of the image. The parameters are sent to the HUD's control unit by Wi-Fi, via the OBD interface, and the necessary adjustments are made. The advantages of the new method compared to previous procedures are considerably lower costs and much more flexibility, as the employee can carry out the calibration at practically any point on the assembly line. The first low-volume production use of this technology is planned for mid-2016.

 Virtual assembly: final vehicle assembly – Testing by Avatar: Similar to how a gaming console with movement control mimics the swing of a golf club or tennis racquet, virtual assembly enables components to be attached to a vehicle with remarkable realism. By testing with an avatar, experienced employees can assess how best to execute the respective task. Mercedes-Benz then implements these findings in production planning, as it did when preparing for the production of the forthcoming E-Class. More about that in the chapter “Testing by Avatar”.

 Human-Robot cooperation (MRC): final assembly with InCarRob -- Robot on Board: With "InCarRob", the robot sits inside the vehicle and handles strenuous overhead tasks for which a human would also need to get in and out (a so-called "Red Spot" activity in the Mercedes-Benz classification system). The InCarRob can also be active while the vehicle body is being transported around the factory, thereby improving efficiency. In the TecFactory, the use of the "InCarRob" is being tested for assisting in installation of the headlining and for attaching seat

belts, sun visors and grab handles. This method is being used for the first time in an operational trial in the production of the Mercedes-AMG GT. The robot assembles the rear bulkhead and parcel shelf, screwing around 20 M5 and M6 bolts into their threads. Development engineers are already preparing for future use of this process; in readiness for "InCarRob" technology, Mercedes-Benz is planning corresponding mounting points in the vehicle body and is standardising the hole matrix in all variants of the C and E-Class.

 Augmented reality: production planning and quality control with mobile devices – Helpful Information Overlay: The production process can be optimised by fusing real and virtual planning at an early stage. Production quality, for instance, can be analysed on a mobile device using AURA (Augmented Reality Apps). This provides a comparison of actual versus specification and virtual parts are evaluated in a real environment. Another example of augmented reality is automatic quality control with IRIS (Intelligent Reporting and Information System). This brings together on a screen, virtual images of the specified design status and camera images of the actual status. For instance, this is used to inspect the installation of a diagonal strut in the chassis. It saves time-consuming rectification further along the assembly line and assures quality.

 360° networking: remote access to production facilities -- Round-the-Clock Support Worldwide: One precondition for the transparency of all production processes, equipment monitoring and access in real time is for all elements in the system to speak the same language. Mercedes-Benz ensures this by comprehensive, worldwide use of "Integra" control software: from sensor level in individual machines, all the way to production control, and also in its cooperation with all suppliers and system partners. The second prerequisite is the ethernet-based networking of all automation components – more than 250,000 worldwide. One practical benefit is that maintenance and problem solving can be handled remotely and improvements can be applied across all facilities. Thus, the four C-Class plants (Bremen, Beijing/China, East London/South Africa, Tuscaloosa/USA) were able to support each other during start-up. This is demonstrated via real-time access to a body-in-white welding station in Tuscaloosa. More on that in the next chapter “Smart Factory”.

 Start-to-finish digital process chain: powertrain – Without Delay Straight into Series- Production: The basis for all simulations is a 3D model from the design department. The casting or forging concept is worked out in close cooperation with the design engineers, and verified and

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand optimised using extensive simulations. For the first sand-cast prototype components after the first simulation phase, the moulds are produced literally overnight using 3D sand printing. The digital process chain continues when the components are machined. Standardised machine modules and production processes are efficiently combined with the help of digital production planning. NC programmes for complete machining with all tools are simulated, optimised and passed directly to the machine tool that produces the parts. The machined parts are then fed to the assembly line. This is all comprehensively planned on the basis of the same data. Digital simulations are used to assess whether all the parts of an engine can actually be assembled, at which workstation which part will be installed and what ergonomic stresses this entails for the employees.

 The smart factory

 The completely networked value chain

The 'smart factory' is the centrepiece of the digitalisation of the entire company. In the smart factory, the products, machines and the entire environment are networked with each other and connected to the internet. Integration of the real world into a functional, digital world enables a so-called "digital twin" to be created, which allows the real-time representation of processes, systems and entire production shops.

 "Digitalisation enables us to make our products more individual, and production more efficient and flexible. The challenge is to plan for the long term while remaining able to respond rapidly to customer wishes and market fluctuations," explains Markus Schäfer, Executive Board Member Mer- cedes-Benz Cars Production and Supply Chain Management.

 "The working environment in the automobile industry is facing major and very rapid changes," says Michael Brecht, Chairman of the Daimler AG Works Council. "We want to be actively involved in shaping these changes. One key to this is undoubtedly the systematic, far-sighted training of the current and future workforce".

 Increasing networking and systems intelligence will allow more flexibility in all processes. Future systems will be able to plan ahead, optimise themselves, communicate better with people and provide more certainty. Another decisive aspect in the factory of the future is the interface between man and machine. Fenceless production will be one of the far-reaching changes in this.

 Mercedes-Benz is following five major objectives with the smart factory:

 Greater flexibility: The smart factory allows production to respond even faster to global market fluctuations and changing, even more individual customer demand. Digital production also makes it easier to produce increasingly complex products.

 Greater efficiency: Efficient use of resources such as energy, buildings or material stocks is a decisive competitive factor; a completely digital process chain also means constant inventory control: components can be identified at any time and anywhere. Production facilities can be controlled from anywhere.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Greater speed: Flexible production processes, simplified modification of existing production facilities and the installation of new facilities allow simpler, more efficient manufacturing processes. This in turn allows shorter innovation cycles, and product innovations can be transferred to more model series in a shorter time (time-to-market).

 Attractive working environment: Active interaction between man and machine, also using new operating interfaces, will change the working environment in many areas, e.g. in training and ergonomics. Taking demographic changes into account, this opens up new perspectives when creating new working and lifestyle models.

 Smart logistics: from vehicle configuration and ordering by the customer to the definition of required parts and their procurement, and then to production and delivery. To put this in visionary terms: "Once ordered, a vehicle looks for its production location and machine by itself."

 To achieve these goals, extensive changes will not only be required at production sites. The central approach is to achieve a completely digital process chain. On the product side, for example, the conditions for digital production are to a great extent already in place with digital prototyping and the digital development process: vehicle data are available in great detail.

 360° networking: All machines speak the same language

 Another precondition for a production system that is completely networked and flexible is that all the elements in the system speak the same language. Mercedes-Benz ensures this by comprehensive, worldwide use of "Integra" control software: from sensor level at individual machines right up to production control, and also in its cooperation with all suppliers and system partners.

 Mercedes-Benz is already able now to digitally simulate the production process from the press plant to final assembly, and therefore to master the complexity

of modern automobiles and their manufacture: for assembly alone, around 4000 individual processes are examined for technical feasibility long before series production commences. This also includes feed-back to vehicle engineering verifying suitability for assembly and availability of installation space, material flows and workplace ergonomics.

 The decisive next step, also after production has commenced, is to continue digitally documenting the real factory: a virtual representation of the real factory is maintained in real time as a "digital twin". This includes e.g. regular, automated capture of the actual situation in the factory, possibly in- volving the use of drones in future to fly over and scan the production lines.

 Big data: self-learning and self-optimising production system

 All processes already generate large amounts of data and this is set to increase even further in future. Experts refer to this as “Big Data”. In future, these product and production data will be evaluated more systematically and used more rigorously. The end result will be more efficient control loops and focussed, more intelligent decisions by the responsible personnel.

 Information measured and gathered locally, such as the quality of surfaces, will then no longer be evaluated manually but rather made usable by intelligent analytical processes, and employed to control machinery, for rapid identification of causes when faults develop, or to plan maintenance and repair work. In ongoing production, digital reference models can already tell why certain machines/processes deviate from set parameters. Digital process data are used to predict when processes will deviate from standards, and pre-emptive maintenance stabilises processes and quality.

 In cylinder head production, for example, the capturing and evaluation of 600 parameters that influence quality has significantly reduced the rejection rate by a factor of 4. The effect has been even more considerable during production start-ups: The time taken for the production process to run smoothly has been substantially reduced.

 In the production of dual-clutch transmissions, feeding back production data and service data from the field has led to quality improvements and reduced costs. Predictive analysis also gives early in- dications for the start-up of comparable components.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Flexible production: New technology creates flexibility

 Today, many production processes are characterised by complex full automation with the rigid installation of machines and robots. Changes are expensive and require a great deal of time and space. For safety reasons alone, man and machine are strictly separated by extensive protective fencing and safety features. Future generations of robots will allow a greater degree of cooperation with people: fenceless systems are much easier to change over, processes become leaner and the capital employed is used much more efficiently. In "Robot Farming", an employee will operate one or more robots depending on the required volume and production steps, using them flexibly at different workstations and even working together with them in the same area without protective fencing.

 More flexibility is also required in handling technology. Today, transport and conveyor systems are fixed installations with rigid sequences. Volume flexibility is limited and changes require expensive and time-consuming conversion work. Intelligently controlled, driverless transport systems (DTS) provide optimum capital employment, thanks to scalability and complete freedom of configuration. This also allows flexible buffering in the production process.

 Plant logistics are also becoming leaner. Driverless, fully automatic pickers deliver exactly the parts required to the personnel at a workstation, in the form of a so-called carset for the current assembly job. The result is considerably improved workplace ergonomics, less walking distance, higher quality, direct material access, more space at the production line and lower risk of accidents thanks to the absence of fork-lift trucks.

 More flexibility and less capital commitment also come from "jigless welding", where complex jig technology is replaced by cooperation between two robots: These hold the components to be joined and bring them into the best position for the welding process. One example of this in series production is seat manufacture for the Mercedes-Benz Sprinter.

 Future-proof: integration of new technologies

 The flexibility of the smart factory also means rapidly and successfully integrating future technological developments into the production process. Examples include:

 3D printing/Additive Manufacturing: Use in rapid prototyping (e.g. sand-casting moulds for engines), protective covers (e.g. for tooling in Human-Robot cooperation), tools (e.g. gripping elements)

 Human Augmentation/Mobile devices in production: New ways of calibrating head-up displays (from mid-2016), use of tablets for controlling robots inside vehicles (“InCarRob”) via Wi-Fi (worker instructs robots in headliner assembly)

 Machine learning/machines assist their users: The path to be followed by lightweight robots can be generated by “demonstration”, i.e. the worker leads the robots and the machine learns the path

 Production data cloud: Worldwide availability of production data

 Gesture control: Machines “understand” what people want from them

 Step-by-step: en route to the digital factory

 Stage by stage, the smart factory concept is being realised in the global production network of Mer- cedes-Benz. The first two stages have already been clearly defined and substantially achieved:

 Mercedes-Benz now has global component standards, a standardised systems architecture and standardised automation, regulation and control technology.

 Wherever investments are made, globally standardised technology modules are used in robotics and production processes.

 For example, as the lead plant for compact models, Rastatt is able to access production data from all the other plants in the worldwide production network, e.g. Kecskemét, and would even be able to reprogram the robots in operation there. In addition, every vehicle body manufactured in Rastatt bears

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand an RFID chip (Radio Frequency Identification). All the vehicle details are stored on this digital label. Transponders are used to access the data and add new data. It is therefore possible to see at any time how far production has progressed, and what is still to be done. The data are used to control 1500 automatic machines.

 The next steps on the way to the production of the future are globally applicable equipment modules suited to product modules, and standardised working strategies. Before the end of the decade, this specific vision of the smart factory will come together in the form of a reference factory designed completely for the methods and processes described above.

 Scientific backup on the way to the digital factory is provided by the ARENA 2036 project (Active Research Environment for the Next Generation of Automobiles): This is a research campus where Daimler conducts research into the future of production and lightweight design with partners from the scientific community and industry. The project will continue to the year 2036, when the automobile celebrates its 150th birthday.

 The driverless transport system (DTS)

 Autonomous mobility around the plant

 Plant logistics, and especially delivery of the required parts to assembly stations, are a constant challenge. Intelligently networked and flexibly controlled driverless transport systems (DTS) ensure smooth processes.

 Another possible DTS application is the flexible connection of two production lines. Such a connection might be necessary for the onward transportation of a vehicle body. Bodies were previously moved from line to line via permanently installed transport stations. Any modifications are therefore expensive and time-consuming. With the use of driverless transport vehicles, however, the body is loaded at the end of one line and transported to the start of the other line as if by magic.

 DTS technology is also used for the so-called mobile pickers. This form of parts supply, which can replace fixed-route supply trains in production shops, makes it possible to deliver "just in time" or "just in sequence".

 At the Ludwigsfelde Sprinter plant south of Berlin, driverless transport vehicles are already supplying assembly line workers fully automatically with prepared "shopping baskets" from the logistics and picking areas. One example is door pre-assembly: Where parts containers were once lined up in tight rows along the production line and employees had to find, fetch and install the parts themselves, you now only see the occasional tool wagon and data terminals. Everything else an employee needs to assemble a side door is brought by a driverless transport vehicle in so-called "carsets" containing the right parts and arriving at the line exactly in sequence with the respective vehicle.

 A trailblazing pilot project is also currently underway at the Hungarian Mercedes-Benz plant in Kecskemét, where all materials are brought line-side for final assembly in pre-picked carsets by DTS vehicles. Not only does this eliminate walking distances for personnel, it also means that, at the end, one look into the "shopping basket" shows whether all parts have been installed – a further simple and effective contribution to quality assurance.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Virtual assembly

 Testing with avatars

 Just as the movement control of a games console is able to imitate golf or tennis strokes, virtual assembly installs parts in a vehicle with amazing realism. By testing with an avatar, experienced employees can assess how the task at hand might best be carried out. Mercedes-Benz then uses these findings in its production planning.

 In front is an obsidian black E-Class Saloon, directly followed by a CLS Coupé in citrine brown and behind that an E-Class Estate in iridium silver – which sounds just like the usual line of business travellers one might see on German autobahns. However, we are actually in Shop 36 at the Mercedes-Benz plant in Sindelfingen. Here in the final assembly shop, the freshly painted bodies are completed with all add-on parts and the required optional extras. Individual sub-assemblies and large units such as the engine, transmission, axles, doors or bumpers are pre-assembled in separate areas.

 "The assembly process is highly complex, and has around 4000 individual processes," says Dr. Günter Wöhlke, head of Digital Verification and Simulation. There are around 900 employees on the line per shift, installing components ranging from exterior mirrors to interior trim in high-gloss ash wood. Depending on the cycle time, each individual assembly step takes one to several minutes. The highlight of the assembly process is the so-called "wedding", when the engine, chassis and body come together.

 One storey higher up, directly above the E-Class assembly shop, workers have already virtually tested and practiced on prototypes how the individual assembly steps are best carried out, whether one worker is enough or a team would be better, and whether to use a torque wrench or perhaps even large handling equipment to optimise ergonomics and avoid overhead working.

 "Two years before start-of-production, virtual reality is used to help examine important assembly stages," Dr. Wöhlke explains. Only later are prototypes made available to train assembly workers. The area of the virtual assembly station roughly corresponds to that of the real assembly area one floor down. This is because Mercedes-Benz does not want to create an artificial laboratory situation, but rather – unique in the automobile industry – to reflect production reality.

 The vehicle itself is far from being a shiny business saloon, but looks more like it came from a metalworking kit. Metal sections indicate the outlines of the body and areas such as door pillars and beltlines, which are important for assembly operations.

 There are digital models of the vehicle and all assembly components in the computer, which has direct access to the design data from the Mercedes-Benz Technology Centre right next door - a new application of the digital prototyping introduced by Mercedes-Benz at the turn of the century. The data of all tools such as torque wrenches are also available. Reflective balls are attached all over the body of the person assigned to conduct a test at the virtual assembly station. There are around 60 of these balls, grouped into patterns such as "lower left arm". Cameras positioned around the virtual assembly station use these clusters to recognise human movement patterns. Real tools and assembly parts are also fitted with these reflective balls. Their movements can therefore also be captured.

 The camera data are fused with the virtual vehicle data. The software ensures that the on-screen avatar moves exactly like the person at the virtual assembly station. After a brief calibration session, all systems are good to go for the virtual assembly of brand-new models such as the next E-Class series.

 Components such as interior panelling or the tailgate closing system can be installed in the virtual vehicle with amazing realism. Real tools such as torque wrenches become heavy after a few minutes, and it is quickly ascertained that people of average height can only reach the upper area of a tailgate with the help of a footstool – just as in real production.

 However, computers and monitors are no more than working aids in this production simulation – human assessment is indispensable: "Experienced employees can use the virtual assembly station to judge how the relevant task is best accomplished, and whether the individual installation procedure is comfortable or might lead, say, to back pain," Dr. Wöhlke explains. "We then use these findings in our production planning." The alternatives are quick and easy to try out digitally. For example, a

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand different installation sequence, or the provision of working aids such as footstools or special tools with the necessary working space. Or feedback is sent to the design department to reconfigure a component for easier assembly.

 Digitalisation using the next E-Class as an example

Intelligently developed, intelligently produced

"Digital natives" is the term used for people who have grown up in the digital world. The future E-Class, the 213 series, is also a "digital native": from development to sales, digitalisation has made its mark on this series in all phases and areas. Digital solutions such as the networking of safety and assistance systems help to ensure the E-Class is the most intelligent saloon in its segment. Numerous innovations make it possible to drive semi-autonomously on motorways and country roads, and to enter and leave tight parking spaces by remote control using a smartphone app. Car-to-X communication provides early warning of dangers that lie ahead. Sophisticated radio technology turns the smartphone into a vehicle key.

 The car is already the most complex IT product. A software comparison shows this: an average smartphone app, for example, consists of around 50,000 lines of programming code. For Google's Android operating system, the figure is around twelve million lines. A Boeing 787 has around 14 million lines. But even today, there are around 100 million lines of code in a Mercedes-Benz E- Class. That equates to 1.8 million A4 pages. The car is a mobile computer centre, with over 100 control units connected to sensors and each other via several kilometres of wiring. The computing power corresponds to that of a dozen modern PCs.

 But the fact that there is so much of the digital world in the next E-Class is only one side of the coin. The other is that, as the latest product, digitalisation of the company itself has already had a decisive influence on the E-Class in all its development phases and lifecycles. The following are a few examples:

 Design: first test drive on the PowerWall

 During the development process for new Mercedes-Benz models, the designers are the first to benefit from the possibilities of the virtual world. They use it to compare and assess different design ideas, and change them with little effort. Mercedes-Benz has put the tools for this in place in the Virtual Reality Centre in Sindelfingen.

 The Virtual Reality Centre provides a wide range of projection options. Initial design ideas can be viewed most effectively on the so-called PowerWall. Several beamers project two or three-dimen-

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand sional computer images from behind onto this large projection surface, which measures around 17 square metres and enables a complete vehicle to be represented in 1:1 scale.

 The virtual car can be examined even more intensively and realistically in the "CAVE" (Computer Aided Virtual Environment). Unlike with conventional image projections, the designers and engineers are not just external observers but become part of the virtual surroundings. The "CAVE" opens the door to another reality, so to speak.

 The "CAVE" is an open-fronted cube consisting of five semi-transparent projection surfaces whose edges each measure 2.50 metres, onto which five powerful beamers each project a computer-generated image. Once the engineers put on stereo goggles, a fascinating spatial image of the desired object magically appears in the room. The designers are then able to move freely around the projection space and act almost entirely naturally in the 3D environment by using tracking and working aids such as data gloves and virtual tools.

 The powerful computers create such a realistic image of the vehicle in the empty space that the designers can view their creations from any angle, and have the impression that they will leave finger- prints on the shining paint finish when they touch it. Every detail can be seen in the "CAVE": Even the surface of the dashboard or of the seat upholstery is so realistic that there is a temptation to run a finger along it to feel the texture.

 Development and testing: simulation allows optimisation at an early stage

 Mercedes-Benz is currently the leader in almost all vehicle classes where aerodynamics are con-

cerned: the new E-Class is also at the very top of its segment with an outstanding cd value. The aerodynamics were already optimised during an early development phase, using sophisticated computer calculations and airflow simulations. A total of more than 275,000 CPU hours (Central Processing Unit) were needed for the numerical flow simulation. The models and prototypes spent around 1100 hours in the wind tunnel for measurement work.

 Extensive crash test simulations were the basis for safety developments in the E-Class. This is a field which has developed at a furious pace. In the early 1990s, Mercedes-Benz conducted around 200 computer crash tests per year. By 2000 the number was already 1500 simulations, and in 2010 it rose to over 50,000. And that is not the only impressive statistic: For the W 124, a predecessor to the E-Class in the late 1980s, the computer model consisted of only 25,000 finite elements. Nowadays the level of detail is much greater – there are around two million elements in the digital image of the coming E-Class (W 213) and the surface mesh of the virtual vehicle structure is now made up of tiny rectangles and triangles with edges measuring three millimetres. This allows a much more precise and detailed deformation analysis than was possible when the elements were much larger at 25 millimetres.

 Crash test simulations are also valuable during the development of restraint systems. The next E- Class will be available with a beltbag - an inflatable seat-belt strap that reduces the load on the rib- cage in a frontal impact, and is thus able to reduce the risk of injury to passengers in the rear. Mer- cedes-Benz safety experts developed the beltbag with the help of virtual human models, which provide a clearer picture of what happens to a vehicle's occupants in an accident than crash test dum- mies.

 Numerous simulators are employed as standard practice in the development and testing of new vehicles at Mercedes-Benz. "Digital prototypes" of a vehicle, which are created with the aid of extremely powerful computers, allow comprehensive testing of a new model in many driving situations before the actual vehicle exists in real life. As a result, the actual prototypes attain a higher maturity level more quickly, enabling even more detailed testing.

 At the end of 2010, Mercedes-Benz opened the world's most cutting-edge "moving-base" driving simulator in Sindelfingen. With its 360° screen, fast electric drive and twelve-metre rail for trans- verse or longitudinal movements, the dynamic driving simulator is the most powerful in the entire automotive industry. With this driving simulator, highly dynamic driving manoeuvres such as changing lane can be simulated in a realistic manner, enabling in-depth research into driver and vehicle behaviour on the road.

 Numerous other simulators are used in the development and testing of new vehicles. With a ride simulator, it is possible to carry out subjective assessments of the performance of digital prototypes driving on uneven roads, for example. To this end, Mercedes specialists feed the simulator with the sur-

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand face data of real-life test stretches and the necessary suspension and functional data relating to vehicle models. Driver and front passenger can sit in the two seats on the test rig to carry out purely digital yet realistic test drives, as the vehicle seats mounted on a hexapod with electrical actuators move as specified by the digital prototypes.

 Fixed-base simulators do not have a hydraulically or electrically powered motion system and the vehicle cab is fixed to the floor. Thanks to single or multi-channel projection and the sound systems conveying driving noises, the traffic scenario is nevertheless so realistic that the driver becomes im- mersed in the virtual world and behaves as if in real-life road traffic. This is where the driving assistance systems are tested in different traffic situations. Development work is also carried out on interi- or noise using measured and synthetic noises and with the aid of expert panels and customer studies.

 Production: the smart factory is becoming a reality

 When production of the next E-Class commences, numerous elements from the "smart factory" toolbox will already come into use. These include e.g.

 Augmented reality: Here the actual status is visually overlaid on the design specification on a monit- or. Deviations are immediately apparent. This procedure is used

o for factory planning: The actual construction status of the production shop (e.g. infrastructure such as compressed air lines, but also production equipment etc.) is compared to the virtual image to detect possible deviations and update the virtual image before the concept is fi- nalised. This ensures the virtual data is of a high quality, as it forms an elementary basis for the planning and design of production facilities during reconfiguration;

o during assembly testing using virtual components: In the early approval and operating phases of production equipment, components are not available for specific optional extras or variants that will not enter series production until later. Using augmented reality, these can

nonetheless be included and assessed as virtual test components during the approval and commissioning process. In contrast to purely virtual analysis, real parameters such as product fixtures in production equipment that are subject to tolerances, and the dynamic routing of flexible equipment components (e.g. hoses), and to an extent, also the dynamic, physical behaviour of components under the effects of gravity can be assessed;

o during the manufacture of equipment components and production facilities: Both at the sup- plier and post-installation in the plant, the actual facilities are compared to the virtual design data to ensure a high level of production quality and execution. Deviations are thus detected and rectified prior to commissioning;

o during the commissioning of production facilities: Compared to classic metrology, augmented reality makes deviations in a complex object detectable in a few minutes, so that possible solutions can be discussed within the workgroup. If analysis becomes necessary during the commissioning process, this is possible by overlaying and evaluating individual images taken with an SLR camera. This can be done without interrupting the operation of the equipment.

 Virtual assembly: The virtual assembly station was used for the first time as part of the interdisciplinary production preparations (IPP) for the forthcoming E-Class (213 series). Just as the movement control of a games console is able to imitate golf or tennis strokes, virtual assembly installs parts in a vehicle with amazing realism. By testing with an avatar, experienced employees can assess how the relevant job might best be carried out, or whether design changes are still necessary. When used for the 213 series, it was found that it was possible to dispense almost completely with vehicle hardware during the first IPP phases - for the first time, the three first IPP assembly procedures were purely virtual (by human interaction with the computer screen). It also facilitated ergonomic optimisation of individual assembly steps (specific installation and bolting situations). These included: bonnet insulation, Frontbass installation, control unit contacts, accessibility of axle wiring, front axle bolted connections, wrench accessibility. The assembly procedure could therefore be planned at a much earlier stage, allowing earlier influence on product/process design with advantages for all those involved. Following this positive experience, Mercedes-Benz will use virtual assembly for all future model series.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Digital process chain: The buildability of the vehicle is already verified at an early stage in the product creation process. This is ensured by the use of digital methods to represent a digital production process chain.

o This begins by verifying buildability of the individual bodyshell components and their tools in the press plant, continues with an assembly simulation in the body shop using mechanical joining techniques (e.g. spot welding, roller hemming) and goes right up to corrosion protection measures in the paint shop.

o In this way, the demanding specifications for gap tolerances and transitions in the 213 series were met by combining forming simulation in the press plant with assembly simulation in the body shop. This provides important information about the major influences on the dimensional accuracy of assemblies. For the 213 series, this process chain was used to optimise the aluminium add-on parts in the computer, and establish suitable equipment settings. This intelligent linking of numerical calculation methods allows reduced induction and start- up times.

o In the interests of corrosion protection for the new E-Class, the bodyshell design was optimised at an early stage for the cathodic dip painting process. In close cooperation with the digital product developers, layer thickness simulations were carried out and countless holes, impressions and bonded seams were moved and redesigned. A drier simulation showed at an early stage the best possible drier configuration to achieve the best paint curing conditions for this new body-in-white.

 360°networking (body-in-white): The complex network of 87 body-in-white production systems with 252 programmable logic controllers, 2400 robots and 42 technologies (spot welding, bonding, laser welding, mechanical joining etc.) for the 213 series is linked by approx. 50,000 intelligent network participants (IP addresses).

Thanks to comprehensive horizontal and vertical networking, the following superordinate information and intervention options are now available:

o All the safety parameters of the equipment technology are automatically monitored. Time- consuming manual monitoring is no longer required

o Monitoring the energy consumption of the new production facilities. On the basis of these data, it is possible to ascertain the energy consumption per component/bodyshell. Further improvements in energy consumption are made possible on the road to "green production".

o All the parameters of the vehicle’s joining processes are captured as "Big Data" for analysis and monitoring purposes. There is an immediate response to deviations from the specified process thanks to intelligent evaluation.

o Maintenance: A remote support function is integrated into all equipment. This means that systems experts can use the network to provide rapid and efficient support in the event of problems.

o Component requisitions are made electronically. This means that the lead times and necessary parameters can be adjusted in the system by the logistics personnel at any time. These adjustments are also made remotely, and require no intervention in the equipment technology.

 360° networking (assembly): The vehicle production numbers and the movable tools are digitally linked by the Ubisense system in E-Class assembly. The position of the vehicle body on the production lines is precisely registered, and the tagged Wi-Fi power wrenches are automatically activated at the right moment. All-in-all, around 620 antennae were installed to "light up" approx. 400 workstations and control around 180 Wi-Fi power wrenches. This means that scanning-in the vehicle information is no longer necessary, as thanks to the Wi-Fi and locating technology, the worker is able to move freely around the product and work to best effect.

 Human-Robot cooperation: A lightweight robot on a mobile carriage is used to calibrate the head-up display. It carries the calibration camera on a lightweight GFRP arm and can calibrate both right and left-hand drive vehicles by one-sided access. Previously calibration was carried out by two perman-

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand ently installed robots behind a protective fence. This innovation reduces the complexity of the system, and elimination of the fence makes it smaller and more flexible. Another advantage is that the new robot quickly takes its reference from the vehicle's dashboard, and no longer from the door aperture.

 Automated vehicle transport: What began digitally at the design PowerWall will end automatically in future: During the production period of the forthcoming E-Class, the plan is for the finished vehicle to drive automatically from the assembly shop to the loading points for rail and truck transport, or to the Customer Centre. This is a particularly apt example of a fully digital process chain, because the plant will then be using vehicle capabilities that also provide its future owner with additional comfort and safety.

 Vehicle use: Intelligent Drive Next Level and connectivity

 The networking of all systems – what applies on a grand scale to "Industrie 4.0" is at the same time the philosophy of "Intelligent Drive" broken down to the vehicle level. Modern safety and assistance systems take their reference from networked sensors – in the next E-Class these will include an en- hanced multi-purpose stereo camera behind the windscreen and new multi-stage radar sensors with adjustable range and included angle around the vehicle, plus tried-and-tested sensors such as ultrasonic sensors and the lenses of the 360°-camera. The combined use of data from the sensors allows analysis of complex traffic situations, better detection of potential dangers on the road and, therefore, the ability to further enhance the increasing number of functions provided by the safety and assistance systems.

 "Intelligent Drive Next Level" will see the new E-Class showcase the next milestone on the road to autonomous driving. On motorways and country roads, the saloon is not only able to keep the car at the correct distance behind vehicles ahead automatically, it can also follow them at a speed of up to 200 km/h. This can make life easier for the driver, who no longer needs to operate the brake or accel-

erator pedal during normal driving, and receives considerable steering support – even on slight bends.

 A wealth of innovations related to connectivity help to ensure that the E-Class is in many respects the most intelligent saloon in its class. These include:

 Car-to-X communication: In 2013, Mercedes-Benz was the first manufacturer to introduce car-to-car networking in the form of a retrofit solution. This is now to be followed by the logical next step as the world's first fully integral Car-to-X solution goes into series production. Mobile phone-based ex- change of information with other vehicles further ahead on the road, for example, can effectively allow the driver to see around corners or through obstacles. This means that the driver is now warned earlier than before in the event of imminent danger, such as a broken down vehicle at the edge of the road.

 Digital Vehicle Key: This drive authorisation system uses Near Field Communication technology and allows the driver's smartphone to be used as a vehicle key. Simply holding the smartphone at the door handle is all it takes to unlock the vehicle. This also activates the personal comfort options, e.g. seat and mirror positions or the favourite radio station.

 Remote Parking Pilot: This system allows the vehicle to be moved into and out of parking spaces remotely using a smartphone app for the first time, enabling occupants to get into and out of the car easily, even if space is very tight. The parking scenario is enacted automatically - including steering, braking and direction changes - as long as the driver continues to provide a confirmation gesture on the smartphone.

 Launched a year ago, "Mercedes connect me" enables customers throughout Europe to link up with their vehicles from anywhere at any time. Buyers of the next E-Class will of course be able to use the "Mercedes connect me" services as well. The connectivity services include accident recovery and maintenance and breakdown management, as well as the Mercedes-Benz emergency call system and telediagnosis.

 Moreover, digitalisation also helps to improve safety in other areas often unnoticed by the driver. Mercedes-Benz is the first automobile manufacturer to provide rescue stickers, so that the emergency services have rapid access to safety-related information at the scene of an accident. Scanning

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand the QR code on the sticker into a smartphone or tablet displays the current rescue card for the vehicle. This enables emergency services to see immediately where the airbags, battery, tanks, electrical wiring, pressure cylinders and other components critical to a rescue operation are located.

 Review

 Milestones in passenger car production history

 Mercedes-Benz, the world's oldest automobile manufacturer, is not only often well ahead of its time with its products, the company has also long been a pace setter in production technology and the digitalisation of the process chain, from design and development to the networked car. Here is a cursory overview.

 Y  Event e a r  1  Foundation of Benz & Cie. in Mannheim in October 8 8 3  1  Carl Benz builds the world's first automobile, the Benz Patent 8 Motor Wagen. 8 6  1  Foundation of Daimler-Motoren-Gesellschaft (DMG) in 8 Cannstatt in November 9 0  1  In August 1900, 185,000 square metres are purchased in 9 Untertürkheim and construction of new factory facilities 0 begins. A major fire on the night of 9 to 10 June 1903 destroys 0 the assembly shop in Cannstatt and accelerates construction of the factory in Untertürkheim, so that production commences there in December 1903.  1  Official opening of the Mannheim plant on 12 October 9 0 8  1  On 6 July, Daimler-Motoren-Gesellschaft (DMG) and the 9 municipality of Sindelfingen conclude a settlement contract: 1 DMG plans to construct an aircraft factory on a 38 hectare site 5 near the military airfield.  1  Production of the first vehicles in Sindelfingen 9 1 9  1  Merger of Benz & Cie. and Daimler-Motoren-Gesellschaft 9

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand 2 4  1  First production abroad: In November, Daimler-Benz AG 9 entrusts the Bohnstedt-Petersen company in Copenhagen, 3 Denmark with assembly of Mercedes-Benz passenger cars 5 (Type 130; W 23).  1  Production of the passenger car version of the pre-war 170 V 9 restarts in Untertürkheim 4 7  1  The decision is taken that in addition to bodyshell production, 9 the Sindelfingen plant will also take on final assembly 4 operations previously carried out in Untertürkheim. 7  1  Construction of the test track in Untertürkheim 9 5 5  1  Daimler-Benz AG commissions Car Distributors Assembly 9 (CDA) to produce the W 121 series. This is the start of 5 Mercedes-Benz passenger car production in South Africa. 8  1  Acquisition of the Bremen plant (originally Borgward) by 9 taking over truck manufacturer Hanomag-Henschel- 6 Fahrzeugwerke GmbH (HHF) 9

1 9 7 0  1  Europe's first fully automatic robotic transfer line goes into 9 operation in the body shop in Sindelfingen. 7 2  1  Production of the W 123-series Estate commences at the 9 Bremen plant, making Bremen the second assembly location 7 for Mercedes-Benz passenger cars after Sindelfingen. 8

 1  In March, the in-house "Long-term Production Order" (LPO) 9 specifies that trucks will be exclusively produced in Wörth and 7 Düsseldorf, and passenger cars in Sindelfingen and Bremen. 9  1  Construction of the third Mercedes-Benz passenger car 9 assembly plant begins in Rastatt. 9 0  1  Construction of the new Mercedes-Benz Technology Centre 9 begins in Sindelfingen, opening in 1998. 9 4  1  Series production of the first Mercedes-Benz C-Class cars 9 begins in South Africa. 9 4  1  In May, the first M-Class leaves the production line in 9 Tuscaloosa (USA). The new plant in Alabama, constructed 9 between 1995 and 1997, is the first location outside Germany 7 where Mercedes-Benz passenger cars are produced for the entire world market.  1  Official opening of the smart plant in Hambach, Lorraine in 9 October, with the introduction of an innovative, particularly 9 lean production concept ("smartville"). 7  1  The South African company Car Distributors Assembly 9 (CDA) becomes a wholly-owned subsidiary of Daimler-Benz 9 AG. 8  2  In the Virtual Reality Centre, future models are depicted three- 0 dimensionally with the help of the latest computers. In 0 addition, the "CAVE" (Computer Aided Virtual Environment) 5 enables designers to move around the projection space freely in a 3D environment, and use tracking and working aids such as data gloves and virtual tools to act almost completely naturally.  2 0 0  Additional production of the E-Class Saloon begins in Beijing, 6 at Beijing Benz Automotive Corporation (BBAC). This makes the E-Class the first Mercedes-Benz model to be locally produced in China.  2  SafetyEYE gives employees even better protection against 0 unintentional contact with production equipment. The new 0 safety system is based on the environmental recognition 6 technology which Daimler researchers have developed for visual assistance systems in vehicles.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  2  The Digital Prototype makes it possible for all simulation 0 methods to be pooled for the first time, and thus to create a 0 completely virtual car. The new C-Class is the world's first 7 series-production car to be developed using this innovative method.  2  Official opening of the assembly plant in Pune (India) 0 0 9  2  From March, and as a first in the automobile industry, 0 innovative lightweight robots from the aerospace industry are 0 used for regular rear-axle production in the Esslingen- 9 Mettingen annexe of the MercedesBenz plant in Untertürkheim.  2  Start of B-Class production at the new passenger car plant in 0 Kecskemét (Hungary). The plant in Kecskemét is the 1 company's first passenger car plant to be planned entirely 2 digitally in advance and three-dimensionally verified.  2  With the start-up of the smart electric drive in Hambach, 0 France, smart presents the first series production of an electric 1 vehicle in Europe. 2  2  Beijing Benz Automotive Corporation (BBAC) expends its 0 local production to include engines. 1 3  2  From August, the A-Class is produced to order by Finnish 0 production specialist Valmet Automotive 1 3  2  Start of the "Space Cowboys": Retirees contribute their 0 experience to projects. They are mainly employed in 1 production-related areas, in IT and in research & development. 3 

 2  Large-scale production of Mercedes-Benz models (B-Class 0 Electric Drive) with combustion engine and electric drive on 1 one and the same line for the first time in Rastatt. 4  2  For the first time, the C-Class is produced in Mercedes-Benz 0 quality in four locations on four continents: Bremen 1 (Germany), East London (South Africa), Beijing (China) and 4 Tuscaloosa (USA).  2  Mercedes-Benz expands its digital customer service with 0 "Mercedes me". "Mercedes me" provides personalised access 1 to the world of Mercedes-Benz, and is made up of numerous 4 new services.  2  Mercedes-Benz invests more than € 100 million in the press 0 plant in Bremen. Fully integrated quality inspection of 1 components within the press line using a stripe projection 4 process is a world first.  2  Mercedes-Benz restructures the passenger car production 0 organisation, with production now according to product 1 architectures. 4  2  The Renault-Nissan alliance and Daimler expand their 0 cooperation with a new plant in Mexico. Production of Infiniti 1 models is scheduled to start in 2017. These are to be followed 4 by Mercedes-Benz vehicles from 2018.  2  Mercedes-Benz invests over € 750 million in the 0 modernisation and expansion of the Bremen plant. The 1 keynote document "Future Vision" includes expansion of 5 production using highly flexible shift patterns and the recruitment of 500 personnel.  2  Official opening of the new Consolidation Centre in Speyer as 0 a logistical hub, as part of a strategic realignment by 1 Mercedes-Benz Cars focussing on global logistics. 5  2  Production of the GLA at the assembly plant in Pune (India) 0 begins. This means that six different model series will be 1 produced there in future 5 (S-, E- and C-Class, GL and GLA, M-Class).  2  Berlin, the oldest Daimler plant, receives investment approval 0 for 1 € 500 million, and is now being expanded into a high-tech 5 location for component manufacture  2  The foundation stone is laid for the plant in Iracemápolis 0 (Brazil). It will commence production of the C-Class in the 1 first quarter of 2016, followed by the GLA mid-year. 5  2  Official opening of the new compact car plant of Beijing Benz 0 Automotive Corporation (BBAC) in Beijing, and start of GLA 1 production. BBAC is developing into the only Mercedes-Benz

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand 5 passenger car location worldwide where front and rear-wheel drive models as well as engines are produced.  2  Rastatt obtains approval for production of the next generation 0 of compact Mercedes-Benz cars, and becomes the global lead 1 plant for compact vehicles. By 2020, Daimler AG will have 5 invested around € 1 billion in further technological development and production expansion at this location.  

 Glossary

 Key specialist terms

 3D printers: These are classified as digital fabricators. They are machines that create material, three-dimensional objects from computer-generated CAD data. These machines are grouped into two basic classes, namely subtractive fabricators which create the desired object by removing or separating material – e.g. by milling, turning, cutting, using CNC machines – and additive fabricators which build up the object from the base material, especially 3D printers.  Arena 2036: “Active Research Environment for the Next Generation of Automobiles”. Research campus where Daimler researches into the future of production and lightweight design with partners from the scientific community and industry. The project will continue to the year 2036, when the automobile celebrates its 150th birthday.  Augmented reality: Computer-assisted augmentation of perceived reality. This information can be directed at all the human senses. Assembly personnel can e.g. have the next working procedure projected directly into their field of vision.  Avatar: Artificial persona or graphic figure assigned to a person in the virtual world, i.e. on the internet, in forums or in a computer game. The term comes from the Sanskrit language. Avatāra originally means "descent" (into worldly realms).  Big Data: Digital networking generates enormous quantities of data. With intelligent processing, this potential can be used for further improvements in productivity and quality.  CAVE: Computer Aided Virtual Environment. Three-dimensional, virtual representation of a car in an early design phase on several projection surfaces, with rapid image sequences unnoticeable to the human eye. The image becomes spatial if stereo goggles are worn.  Digital development process: Consolidation of all simulation methods to develop/test a virtual prototype.  "Digital shadow"/ "Digital twin": Virtual representation of the

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand factory in real time  Digital prototype: The complete automobile and all its parts are digitally designed and virtually generated with the help of the finite element method.  Driverless transport systems (DTS) "are in-house, ground-based transport systems using automatically controlled vehicles whose primary purpose is not passenger but materials transport. They are used inside and outside buildings," according to the official definition by VDI (Association of German Engineers). DTSs consist of one or more driverless transport vehicles, a control centre, identification and location facilities, data transfer facilities, an infrastructure and peripheral facilities.  Fenceless production: Absence of protective fencing. A new form of cooperation between man and robot which dispenses with protective fencing.  Gesture control: Automatic recognition via a computer of gestures performed by humans. Any posture or physical movement can in principle represent a gesture. Recognition of hand and head movements is however of most importance. Examples include the operation of touchscreens or camera-based recognition of gestures.  "InCarRob": Robot that sits inside the vehicle and works in that position.  Industrie 4.0: The digitalisation of the entire value chain. Fourth industrial revolution based on fusing the physical and virtual worlds into so-called cyber-physical systems (CPS)  Integra: Company-wide Mercedes-Benz standard used in automation  Jigless welding: Welding without a jig for holding the workpiece. Complex jig technology is replaced by cooperation between two

robots.  Just in sequence: Delivery of production parts to the assembly line at precisely the time and in the sequence they are needed.  Just in time: Production or procurement timed to meet the needs of a production process.  Batch size: In industrial management and production engineering, a batch is defined as the volume/number of products in a production order that passes through the stages of a batch production process as a job lot.  Human-Robot cooperation (MRC): A new form of cooperation between man and robot which dispenses with protective fencing.  PowerWall: An enormous projection surface on which designers can view and analyse their draft designs from different perspectives.  Robot: Derived from the Czech word "robota" ("forced labour"), the term refers to "a programmable multi-purpose handling tool designed to move materials, workpieces, tools or other specialist equipment. Its freely programmable movement sequence makes it usable for a wide variety of tasks," according to the Robotic Industries Association.  Robot Farming: An industrial application of MRC. A single employee is in charge of one or more robots and uses them flexibly at various workstations, working with them in a common area without fencing.  Smart factory: Vision of the fully networked, extremely flexible factory of the future.  Smart logistics: Digital process chain from ordering an automobile and procurement of the parts to production and delivery.  TecFactory: Generic term for the intermeshing of vehicle development and production at Mercedes-Benz. This is where the progressive ideas and innovations inherent in every Mercedes-Benz are transformed from vision into reality. In this role, the TecFactory is not only a driver of future-oriented production technologies; it also develops holistic factory concepts for the tailored manufacturing of Mercedes-Benz series-production vehicles worldwide.  6D mouse: Element for the intuitive operation of a robot. Depending

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand on the pressure and movement direction, this innovative man-machine interface responds by moving a robot's working tool in the different coordinate directions x, y and z. The robot moves or rotates at varying speed depending on the pressure applied to operate the 6D mouse. 

 The production network

 The worldwide plants

 The worldwide production network of Mercedes-Benz Cars extends to four continents, has been considerably expanded in recent years and continues to grow. Here is an overview followed by details of the Sindelfingen plant.

 Vehicle plants:

 Bremen/Germany

 East London/South Africa

 Hambach/France

 Iracemápolis/Brazil (from 2016)

 Kecskemét/Hungary

 Rastatt/Germany

 Sindelfingen/Germany

 Tuscaloosa/USA

 Passenger car assembly locations (e.g. Completely/semi–knocked-down: delivered parts kits are locally assembled):

 Bangkok/Thailand

 Ho Chi Minh City/Vietnam

 Jakarta/Indonesia

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Pekan/Malaysia

 Pune/India

 External partners/commissioned production and assembly:

 AM General, Mishawaka/USA (from summer 2015)

 Magna Steyr, Graz/Austria

 Valmet Automotive, Uusikaupunki/Finland

 Joint ventures:

 Beijing Benz Automotive Co., Ltd., Beijing/China: Joint venture with BAIC Motor

 Cooperation with Renault-Nissan:

 Aguascalientes/Mexico (from 2018)

 Decherd/USA

 Novo mesto/Slovenia

 Powertrain plants:

 Affalterbach/Germany (Mercedes-AMG GmbH)

 Arnstadt/Germany (MDC Technology GmbH)

 Berlin/Germany

 Cugir/Romania (StarTransmission)

 Hamburg/Germany

 Kölleda/Germany (MDC Power GmbH)

 Sebeş/Romania (Star Transmission)

 Stuttgart-Untertürkheim/Germany

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand  Sindelfingen/Germany

 Plant foundation  1915  Production  Mercedes Benz CLS, CLS Shooting Brake, E- Class (Saloon and Estate),

S-Class, S-Class Coupé, Mercedes-AMG GT, MercedesMaybach S- Class  General Manager  Michael Bauer  Site area in sq. m.  2.950,697  Built-on area in sq. m.  1.299,463  Number of employees at the location/MBC   2014  25,948/25,513  2013  26,134/22,108  2012  25,947/22,161  Homepage: www.werk-sindelfingen.mercedes-  Figures as of 31.12.2014 benz.com

 The Sindelfingen plant is Daimler AG's largest production plant.

 The Mercedes-Benz Technology Centre includes the Research & Development unit for new Mercedes- Benz models.

 The Sindelfingen plant is the competence centre for the production of executive and luxury-class vehicles.

 The Sindelfingen location is one of the world's leading competence centres in the automotive sector for safety, innovation and design.

 The 20 millionth vehicle since the plant was founded will leave the production line in the 100th anniversary year 2015.

 Present & History

 1915 Foundation of the plant by Daimler-Motorengesellschaft: production of aircraft engines and aircraft.

 1919 Production of the first automobiles.

 1980 Foundation stone laid for the Mercedes-Benz Customer Centre.

 1995 Inauguration of the Mercedes-Benz Technology Centre.

 2009 Start of series production for the E-Class and the S 400 HYBRID.

 2010 Series production of the B-Class F-Cell and gullwing model Mercedes-Benz SLS AMG.

 2011 Production of the CLS and start-up of the new SLS AMG Roadster.

 2012 Start-up of the CLS Shooting Brake.

 2013 Start-up of the new S-Class and new E-Class.

 2015 The Sindelfingen location celebrates its 100th anniversary.

Daimler Communications, 70546 Stuttgart/Germany Mercedes-Benz – A Daimler Brand