West Virginia University Benjamin M. Statler College of Engineering and Mineral Resources Department of Industrial and Management Systems Engineering
Smart Manufacturing and Industry 4.0 - Opportunities and Challenges for SMEs
1st Industry 4.0 School & Industry Night February 18, 2018 Dr. Thorsten Wuest Kelonwa, Canada [email protected] 2005 2013
Schmid & Wuest, 2017
Dr. Thorsten Wuest [email protected] 2005 2013
Schmid & Wuest, 2017
Dr. Thorsten Wuest [email protected] Agenda
1. Smart Manufacturing 2. Smart Manufacturing Technologies 3. SmartMfg Survey of SMEs in West Virginia 4. Recommenda ons
Dr. Thorsten Wuest [email protected] “Manufacturing creates wealth” Prof. Ronald G. Askin, Arizona State University (USA)
Dr. Thorsten Wuest [email protected] “Obama plans execu ve ac ons to strengthen U.S. manufacturing” (h p://www.reuters.com/ar cle/2014/10/27/us-usa-obama-industrialoutput-idUSKBN0IG0UR20141027) “Obama pushes for high-tech manufacturing” (Pace, J., June, 24th 2011, NBC News)
h ps://s-media-cache-ak0.pinimg.com/ 736x/ 38/92/57/389257d7b42e9a9bc34df0a5d0 “Obama confirms funding for manufacturing 0ae87e.jpg innova on hubs” (Skiba, K., Chicago Tribune, Feb, 25th 2014) “We’re building Ironman – Manufacturing Innova on” (Obama, Feb, 2014 )
Dr. Thorsten Wuest [email protected] Manufacturing today
• New technologies • New global rules • New opportuni es • New challenges…
h p://www.3dprin ngjobs.info/wp-content/uploads/2014/12/Automo ve1.gif
h p://3.bp.blogspot.com/-YGLBPWZFOxY/VC10ThjQAoI/AAAAAAAAAbI/VZT7ELIwCiE/s1600/ p.png h p://www.thebigdatainsightgroup.com/site/sites/default/files/geindustrialinsight_0.gif
Dr. Thorsten Wuest [email protected] You may have heard of Smart Manufacturing Intelligent Manufacturing Industrial Internet IMS Industrie 4.0 Cyper-Physical (Produc on) Systems Industry 4.0 Factory of the Future Smart Factory Cloud Manufacturing Manufacturing Intelligence … and many more! All these terms describe a similar development! Dr. Thorsten Wuest [email protected] Heading towards the 4th industrial revolution
Value from… People Process Technology Informa on
Source: h ps://www.i-scoop.eu/industry-4-0/
Dr. Thorsten Wuest [email protected] Automa on
Physical vs. Cogni ve
Dr. Thorsten Wuest [email protected] Industry 4.0 and employment
h p://www.cbc.ca/radio/quirks/ september-9-2017-1.4280509/will-you-have-to- become-a-cyborg-for-your-job-1.4280516
Dominion Post Dec. 29, 2017 Dominion Post Dec. 30, 2017
Dr. Thorsten Wuest [email protected] It is a global development
High-Tech Strategy Industry Revitalization Plan Projects for the future Restructuring of industry • Industry 4.0 initiative World’s leading IT society • Smart Services Program Connected factory • Smart Data Program for SME
Manufacturing Renaissance China Manufacturing 2025 • Industrial Internet Consortium IT integration in industrial processes • Smart Manufacturing Leadership High-end automatization & robotics Coali on (SMLC) • Manufacturing USA
Source: Siemens Ltd. Seoul 2014
Dr. Thorsten Wuest [email protected] Advanced & Smart Manufacturing
Dr. Thorsten Wuest [email protected] Advanced vs. Smart Manufacturing Two different ways of differentiation
Advanced Manufacturing Advanced Smart New technologies, products, materials Manufacturing Manufacturing and processes Focus on physical Focus on data and manufacturing- analy cs technology
Smart Manufacturing Use of data throughout the product life cycle
Source: Shipp et al. 2012 Source: Mi al, Khan & Wuest 2017 Schmid & Wuest, 2017
Dr. Thorsten Wuest [email protected] Smart Manufacturing
“Smart Manufacturing is a data intensive applica on of informa on technology at the shop floor level and above to enable intelligent, efficient and responsive opera ons.” Wallace & Riddick, 2013
Dr. Thorsten Wuest [email protected] Smart Manufacturing Smart manufacturing marries informa on, technology and human ingenuity to bring about a rapid revolu on in the development and applica on of manufacturing intelligence to every aspect of business. It will fundamentally change how products are invented, manufactured, shipped and sold. It will improve worker safety and protect the environment by making zero- emissions, zero-incident manufacturing possible. It will help keep jobs in this country [USA] by keeping manufacturers compe ve in the global marketplace despite the substan ally higher cost of doing business in the United States. Chand & Davis, 2010
Dr. Thorsten Wuest [email protected] SMART MANUFACTURING PRINCIPLES / CONNECTIVITY / VIRTUALIZATION / DATA UTILIZATION
Schmid & Wuest, 2017 Smart Manufacturing Opportunities The Industrial IoT creates various improvement opportunities
+ 49 % - 30 % product quality + 25 % + 80 % production time productivity efficiency increase + 40 % + 25 % customer energy efficiency + 1 % sa sfac on - 25 % improvement GDP safety incidents
Source: h ps://www.slideshare.net/solaircorporate/
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Smart Manufacturing Vision Fully Connected Smart Factory Control center: Aggregated data reveal Alerts monitor: improvement areas Problem with machine #2. Please check Packing material is low. Please release order. I’m customer order #312 and want to be red colored.
I need more materials End of line test: Machine #1, Please adjust machine parameters Cogwheel will break in five days. I have ordered spare parts and scheduled Source: h p://smartamerica.org/teams/smart-manufacturing/ external service provider.
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] IT/OT Integration enabling Smart Manufacturing Convergence of the virtual and real world
Mainframe Informa on Technology (IT) Virtual world PC ERP Internet MES Cloud
Internet of Things Embedded Smart Manufacturing Manual Barcode RFID Wireless Sensor (IoT) Data Input
Fieldbus TCP/IP PLC Sensors Robo cs Real world CNC Opera onal Technology (OT)
Dr. Thorsten Wuest [email protected] Smart Manufacturing and (I)IoT (I)IoT as an enabler of Smart Manufacturing
Internet of Things
• All industries • All things and devices
Smart Manufacturing • Manufacturing industries Smart Plants • Systems, things, devices, Smart Ci es Connected Cars on the shop floor Smart Products • Products throughout Smart Grids Smart Smart Processes their life cycle …
Source: h ps://www.youtube.com/watch?v=1Q5Iyw8vll8
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] SMART MANUFACTURING MARRIES TECHNOLOGY, DATA AND HUMAN INGENUITY
Schmid & Wuest, 2017 Source: Jinwoo Park, 2015 Dr. Thorsten Wuest [email protected] Smart Manufacturing Technologies
• Technology is always a key enabling factor • But what are Smart Manufacturing associated technologies? • We created a comprehensive overview as a basis for discussion and a first step towards a Smart Manufacturing Ontology
• Open Access Paper: Mi al, S., Kahn, M. Romero, D. & Wuest, T. (2017). Smart Manufacturing: Characteris cs, Technologies and Enabling Factors. Part B: Journal of Engineering Manufacture, Online first, 1-20. DOI 10.1177/0954405417736547
Dr. Thorsten Wuest [email protected] Mittal et al., 2017
Dr. Thorsten Wuest [email protected] Smart Manufacturing Technology Clusters 38 technologies (27 char. / 7 enabl. factors) We decided to cluster, resul ng in: 1. 3- D Prin ng / Addi ve Manufacturing 2. Cloud Manufacturing 3. CPS (Cyber Physical Systems) / CPPS (Cyber Physical Produc on Systems) 4. Cyber Security 5. Data Analy cs 6. Energy Saving / Energy Efficiency 7. Intelligent Control 8. IoT / IoS / IIoT 9. IT based Produc on System 10. Smart Product / Part / Material Mittal et al., 2017 11. Visual Technology Dr. Thorsten Wuest [email protected] Example: Visual Technologies
• Example Cluster: Visual Technology • Comprised of three Source: h ps://compass-ssl.surface.com/assets/d4/8d/d48dbc28-aec3-4417-b319-bed3aac91c81.jpg? technologies: n=Overview_Hero_1920_img_new.jpg • Hologram / Digital Twin • Augmented Reality • Virtual Reality
Mittal et al., 2017
Dr. Thorsten Wuest [email protected] … But what does all that mean for manufacturing companies?
• Con nuous innova on • Ques on current processes & prac ces! • Adap on of new technologies, tools and frameworks • Data & Informa on driven! • Skilled workforce • Lifelong learning!
Dr. Thorsten Wuest [email protected] Smart Manufacturing in Small- and Medium-sized Enterprises (SMEs)
Dr. Thorsten Wuest [email protected] Status of Industry
Source: Jinwoo Park, 2015 Dr. Thorsten Wuest [email protected] Siemens Digital factory
• Siemens’ plant in Amberg, Germany • Products communicate with manufacturing machines • IT systems control and op mize all processes • Produc on quality is at 99.99885 %
Dr. Thorsten Wuest [email protected] SMEs vs MNEs – Different requirements
Dr. Thorsten Wuest [email protected] Upgrade existing systems • Bosch upgraded Lathe from 1887 to be Smart Manufacturing ready • New capabili es: • process monitoring for constant quality assurance • another is condi on monitoring in order to prevent unplanned down mes • Extreme example but showcases the poten al h p://www.bosch-presse.de/pressportal/en/69632.html
Dr. Thorsten Wuest h p://www.bosch-presse.de/pressportal/ en/69632.html [email protected] Project Scope
Background § Internet of Things is changing the industrial landscape § Manufacturing is undergoing a major transi on § Large corpora ons are dealing with this topic intensively
⇒ But how to apply Smart Manufacturing in small companies? ⇒ How can small manufacturers take advantage of it?
Objectives § Examine the current state of manufacturing with a survey Work Packages
§ Understand the manufacturing landscape and its specific 1. Online survey challenges and concerns by conduc ng interviews and plant visits 2. Interviews & plant visits § Support small manufacturers in adop ng Smart Manufacturing 3. Analysis of results & report technologies by se ng up a training workshop 4. Training workshop
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Survey Method Who participated in the survey?
Total # of respondents from manufacturing 53 12 10 8 Company size by #employees 6 4 less that 20 2 100 - 499 0 20 - 99
500 and more
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Survey Results How aware are companies of the transition towards Smart Manufacturing?
I have already heard about... My company is dealing with...
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Industry 4.0
Smart Manufacturing
Industrial Internet
Internet of Things (IoT)
Smart Factory
Cyber-physical system
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Survey Results How prepared are companies for Smart Manufacturing?
How relevant is Smart Manufacturing To what extent is your company and for your company? your employees prepared?
Very relevant Very prepared
Moderately relevant Moderately prepared
Not relevant at all Slightly prepared
0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70%
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Survey Results What are the needs of manufacturers when it comes to Smart Manufacturing?
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Interview Method Who participated in the interview sessions?
Manufacturers Manufacturing Experts
9 5 Interviewees in Experts in academia, manufacturing associa ons & state companies agencies
Dr. Thorsten Wuest Schmid & Wuest, 2017 [email protected] Selected insights from interviews Lack of economic opportunities Manufacturing reputation problem - Decline of coal industry - Mindset of ‘second-class’ jobs & low wages - Decline in local markets - Misconcep on of dirty and dangerous work - Oversupply in global markets - Global compe on Perception of Smart Manufacturing value Infrastructure challenges - Lack of awareness of exis ng tech. & poten al impact - Telecommunica on infrastructure - Hard to imagine value-add for discrete manufacturing - Lack of investments in facili es/tech. - Difficult to imagine in a small scale - Infrastructure of support systems - Lack of show cases & success stories / role models Increasing cost “It’s a different deal in small companies in many - Increasing u lity rates ways” - Rapidly rising healthcare cost - Small companies could move faster - Lack of capital to ‘keep up’ w/ tech. - Less resources reg. humans resources, money & me
Dr. Thorsten Wuest [email protected] Key challenges of Smart Manufacturing adoption for SMEs
Lack of opportunity Resources & cost
Knowledge & awareness
Skilled workforce Missing ‘success stories’
Dr. Thorsten Wuest [email protected] ‘Capability creates Opportunity’
Craig Hartzell, Azimuth Inc., 2017
Dr. Thorsten Wuest [email protected] SMART MANUFACTURING IS NOT ONLY FOR THE BIG GUYS.
Schmid & Wuest, 2017 Opportunities for collaboration & entrepreneurs
Brave new world ‘Low’ initial investment
Dedicated ‘Apps’ (Platform solution)
Scalable solutions (interoperable & extensible) Fast deployment
Dr. Thorsten Wuest [email protected] Recommendations (1/2) for Smart Manufacturing in SMEs
• Provide educa onal resources on Smart Manufacturing and Industry 4.0 (‘spread the word’ in an accessible way) for industrial partners. • Jointly develop curriculum for 1) professionals to equip them with required knowledge to innovate and operate within a Smart Manufacturing environment, and 2) include Smart Manufacturing in exis ng engineering curricula across ins tu ons (‘high school to masters/Ph.D.’), departments and majors. • Communicate successes broadly and encourage peer-to-peer exchange (across industries) of best prac ces and lessons learned.
Dr. Thorsten Wuest [email protected] Recommendations (2/2) for Smart Manufacturing in SMEs
• Build strong and sustainable partnerships between companies, academia and industry associa ons. For example, leverage (local) technology start-ups to team-up with established manufacturers and academia. • Start with small ‘lighthouse’ projects targe ng specific pain points to learn and achieve quick wins. • Leverage state and federal funding to complement the limited recourses available to manufacturing SMEs.
Dr. Thorsten Wuest [email protected] SMART MANUFACTURING CANNOT BE BOUGHT. THE SUCCESS HAS TO BE EARNED.
Schmid & Wuest, 2017 My take on this issue:
• Solu ons must be tailored to To do so SMEs need to: SMEs’ (real!) needs & • Assess their current processes requirements! cri cally • Create real value • Iden fy their core competencies (short AND long term)! • Build on those and • Fit the strategy / vision! • Develop a roadmap with specific milestones / objec ves • (keep 80/20 rule in mind!)
Dr. Thorsten Wuest [email protected] Contact:
Thorsten Wuest, Ph.D. Assistant Professor Smart Manufacturing Wayne and Kathy Richards Faculty Fellow
West Virginia University Thank You! Industrial and Management Systems Engineering 347 Engineering Sciences Building Morgantown, WV 26506-6070, USA
+1 (304) 293-9439 [email protected] www.thorstenwuest.com