Communication on the Sino-German Cooperation Pilot Demonstration Project!
Weichai Power Co., Ltd. 1 Contents
q 1. About Weichai Group q 2. Sino-German Cooperation Project Status q 3. Requirements and Suggestions
2 1.1 About Weichai Group p Established in 1946 p Weichai Group has five major business segments, p Employees: 74,000 worldwide including automobile, construction machinery, p Total assets: 133 billion RMB powertrain system, luxury yacht, finance & p Sales revenue: 107.5 billion RMB (revenue of services. It is currently one of the strongest and most overseas companies accounting for 53%, and comprehensive automobile and equipment German subsidiaries contributing 1/3) manufacturing groups in China. p One of the strongest automotive and equipment manufacturing companies in China
34%
Sales income（ in 100 million RMB）
3 1.2 Integration of IT and industrialization at Weichai Group
Process & IT support global business operations refinement
p Weichai’s R&D has gone through stages of "so ware design – single-point system support - full coverage for R&D process – in-group collabora ve R&D - global industrial chain collabora ve R&D", and ul mately uses the integra on of IT and industrializa on to support Weichai’s global collabora ve R&D. p Weichai’s produc on has gone through stages of "manual recording – MES 1.0 engine assembling document management – MES 2.0 produc on order tracking – MES 3.0 system-guidance feeding – MES 4.0 product cloud, mobiliza on and Internet of things", and uses the integra on of IT and industrializa on to support Weichai’s large-scale, customized and fast delivery. In 2016, 69,436 enterprises par cipated the evalua on of integra on p Weichai’s a er-service market has gone through stages level of IT and industrializa on. Weichai Power Co., Ltd. is higher of "service process monitoring - main service process than 98.38% of the par cipa ng enterprises, higher than 99.20% of integra on – life-cycle service for customer", and uses the same industry. In accordance with the first-level indicator score, the integration of IT and industrialization to support Weichai is in the "breakthrough innova on (3.8%)" stage. Weichai’s transforma on to a manufacturing and service company. 4 1.3 Intelligent manufacturing is the only way to realize Weichai Group’s strategy
In May, 2015, the Chinese government issued "Made in China 2025" Chinese In Jan, 2016, the Chinese government proposed to make intelligent manufacturing the main direc on of the Government integra on of industrializa on and IT. strategy Intelligent manufacturing: realizing the informa oniza on, digitaliza on, intelligen za on of the whole process of manufacturing.
Company To create products with the most compe veness in view of cost, core technology and quality, to Strategy move towards the high-end, and to transform into a manufacturing and service company
Improve the cost compe veness Improve the technological compe veness Improve the quality compe veness Flexible manufacturing Global collabora ve research and development Process op miza on Improve efficiency Intelligent products & industrial data Quality control upgrade cut costs Promote product op miza on and technology Product consistency & reliability upgrades, and move towards the high-end
Improve the overall compe veness of the industrial chain Establish the overall upgrading forces for the "vehicle - powertrain - parts" golden industry chain; Play the leading role in the chain to push upstream and downstream companies for collabora ve innova on and enhancement of customer sa sfac on
5 1.4 Sino-Germany cooperation project status
Overall Plan Step By Step Cooperation
In August, 2015, Weichai In May,2016, Weichai “Intelligent plant In September,2016, Weichai’s “Sino- “Comprehensive demonstra on of construc on of high-end diesel engine German coopera on in high-end diesel engine intelligent based on intelligent equipment and hydraulic part factory pilot project pilot” manufacturing”was selected as large industrial data” was selected as was selected as Sino-German smart 2015 pilot project of intelligent 2016 intelligent manufacturing manufacturing coopera on pilot manufacturing by China’s Ministry applica on demonstra on by China’s demonstra on by China’s Ministry of of Industry and Informa on Ministry of Industry and Informa on Industry and Informa on Technology. Technology. Technology.
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q 1. About Weichai Group q 2. Sino-German Cooperation Project Status q 3. Requirements and Suggestions
7 2.1 Sino-German Cooperation Program
Project Name: Sino-German coopera on in smart high-end hydraulic part factory pilot Aschaffenburg, Germany demonstra on Project content: 1. Chinese part invests 78 million euros to jointly build high-end hydraulic intelligent factory in Germany; 2. Both par es carry out coopera on in informa on technology and data u liza on; 3. Based on the previous experience of coopera on, the joint team will build a intelligent hydraulic factory in China; 4. Both par es will together promote the relevant standards of intelligent manufacturing being introduced; Time: March 2016 - March 2018 Weifang, China Status: 1. The intelligent manufacturing demonstra on factory in Germany has been completed; 2.Linde hydraulic (China) factory construc on is currently in progress. Coopera on par es:
Chinese team German team Weichai Power Co., Alliance of Industria Internet, KION GROUP, Linde Hydraulics China Academy of Informa on and Communica ons Technology ,Ins tute of GmbH & Co. KG , Siemens Ltd., Automa on of ， Chinese Academy of Sciences, China,Robert Bosch Gmbh and Huawei Technologies Co., Ltd. ,ETIRI, CHINA so on TELECOM and so on
8 2.2 Project Benefits Ø Two smart factories: Linde Hydraulics’ new factory in Germany, and Linde Hydraulics (China) Smart factory smart factory. Ø Sino-German intelligent manufacturing will integrate and promote each other. With integra on of German experiences on cultural ideas, factory design, produc on, business opera on, product research etc, “German quality but made in China” will be realized.
Technology patent Ø The pilot project will form 25 patents regarding technology and applica on, including the safe brake system, walking system, variable control system. Ø It will enable Linde Hydraulics to become the leader in China‘s high-end hydraulic part industry.
Social benefits Ø The German intelligence factory will provide more than 500 jobs, and more than 20 million worth of tax every year. Ø Chinese party’s investment of 78 million euros for the new factory in Germany will promote the cultural exchanges and economic development between two governments.
Economic benefits Ø In five years a er the comple on of the project, the factory is expected to produce and sell 12,000 hydraulic pumps, 12,000 motors, and 1,240 valves. The sales revenue will reach 300 million euros. Ø 1 billion euros sales revenue is expected in 2030.
9 2.3 Cooperation between Weichai and German parties
Weichai has purchased equipment, parts, so ware, industrial control systems, etc. from German enterprises with more than 2 billion RMB. On equipment On products
Working with Bosch, Weichai has researched and developed engine ECUs (electronic control unit), which are currently applied in Weichai’s diesel engines and CPS⽣产线 多托盘卧式加⼯中⼼ 三坐标测量机 ⾃动机器臂 offering lots of running data for Weichai. Intelligent processing, assembling, test equipments Working with Siemens, Weichai has introduced the advanced five-axis machining center, tray horizontal machining center and a number of advanced detec on equipment, and has built several flexible produc on lines and intelligent test lines with high-end equipment. On Pla orm On Electric CNC system and PLC Working with Siemens for R&D on process management WPM pla orm for Weichai
1. 255 sets of electric CNC systems, and 34.9% come from Working with SAP for R&D on ERP system for subsidiaries Siemens. ERP of Weichai. 2. 1201 sets of PLC system, and 76.6% come from Siemens.
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q 1. About Weichai Group q 2. Sino-German Cooperation Project Status q 3. Requirements and Suggestions
11 3 Requirements and Suggestions
p We suggest a Sino-German coopera on for intelligent manufacturing technology breakthrough Intelligen za on of the products: At present, we have high demand for industrial-level embedded communica on module in the process of intelligen za on. But the exis ng technology cannot meet the requirements on stability, reliability, durability and low cost during intelligen za on. The internet of the industry. When it comes to data transmission, how we should realize the requirements on low latency, high security, high reliability and high performance is a new challenge.
p We suggest that China and Germany share the exis ng standards to promote the forma on of industry standards for intelligent manufacturing At present, Weichai has shared the data security standard protocol with Siemens and Bosch. In the future, Sino-German coopera on should be further enhanced to hopefully one day form data security standards and common industry standards.
p We suggest that German government gives equal support to the Sino-German coopera on pilot demonstra on project The Chinese government has given great financial support to the Sino-German coopera on pilot demonstra on project. As the beneficiary of tax, employment and expanding Chinese market, we hope that German government can offer equal financial support.
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