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Acatech MATERIALIEN Industry 4.0 and Urban Development the Case Industry 4.0 and Urban Development The Case of India Bernhard Müller/Otthein Herzog acatech MATERIALIEN Authors/Editors: Prof. Dr. Dr. h.c. Bernhard Müller Prof. Dr. Otthein Herzog Technische Universität Dresden und Universität Bremen und Leibniz-Institut für ökologische Raumentwicklung (IÖR) Jacobs University Bremen Weberplatz 1 Am Fallturm 1 01217 Dresden 28359 Bremen E-Mail: [email protected] E-Mail: [email protected] Project: GIZ SV IKT Projekt Advanced Manufacturing und Stadtentwicklung Project term: 12/2013-09/2014 The project was financed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (support code 01/S10032A). Series published by: acatech – NATIONAL ACADEMY OF SCIENCE AND ENGINEERING, 2015 Munich Office Berlin Office Brussels Office Residenz München Unter den Linden 14 Rue d’Egmont/Egmontstraat 13 Hofgartenstraße 2 10117 Berlin 1000 Brüssel 80539 Munich Belgium T +49 (0) 89 / 5 20 30 90 T +49 (0) 30 / 2 06 30 96 0 T +32 (0) 2 / 2 13 81 80 F +49 (0) 89 / 5 20 30 99 F +49 (0) 30 / 2 06 30 96 11 F +32 (0) 2 / 2 13 81 89 E-Mail: [email protected] Web site: www.acatech.de © acatech – NATIONAL ACADEMY OF SCIENCE AND ENGINEERING, 2015 Coordination: Dr. Karin-Irene Eiermann Rework: IÖR A. S. Hering, K. Ludewig, K. Kohnen, S. Witschas Layout-Concept: acatech Conversion and typesetting: Fraunhofer-Institut für Intelligente Analyse- und Informationssysteme IAIS, Sankt Augustin > THE acatech MATERIALS SERIES This series publishes discussion papers, presentations and preliminary studies arising in connection with acatech‘s project work. Responsibility for the content of the volumes published as part of this series lies with their respective editors and authors. In the course of the project we met too many helpful people in Germany and India to mention here. Special thanks go, however, to the President of INAE, Dr. Baldev Raj, National Institute of Advanced Studies, Bangalore, to Brig Rajan Minocha, INAE HQ and his staff, and especially to the authors of the in-depth studies on Advanced Manufacturing (Prof. Klocke, RWTH Aachen and Fraunhofer IPT, and Prof. Manoj Tiwari, FNAE, Indian Institute of Technology, Kharagpur), Logistics (Prof. Kuhn, TU Dortmund and Fraunhofer IML, and Prof. N. Viswanadham, FNAE and INSA Senior Scientist, Indian Institute of Science, Bangalore) and Urban Development (Dr. Schiappacasse, TU Dresden, and Prof. T. G. Sitharam, Indian Institute of Science, Bangalore) each one either from a German or an Indian perspective. Last, but definitely not least we thank Dr. Eiermann, previously at acatech Berlin, who did a wonderful job in keeping tabs on the project and taking care of everything: it was a pleasure to work with her. CONTENTS FOREWORD 7 1 POTENTIAL OF INFORMATION AND COMMUNICATION TECHNOLOGY AND ITS IMPACT ON 9 ADVANCED MANU FACTURING WITH SPECIAL REFERENCE TO AN INTERNATIONAL CONTEXT Fritz Klocke 1.1 Environment 9 1.2 Framework 9 1.3 Smart Manufacturing 13 1.4 Safety and Security 35 1.5 Deficits and ctionsA Recommended 37 References 39 2 REQUIREMENTS FOR AND IMPACTS OF ICT BASED ADVANCED MANUFACTURING WITH SPECIAL 43 REFERENCE TO AN INDIAN CONTEXT Manoj Kumar Tiwari Executive Summary 43 2.1 Indian Manufacturing: Scope and Key Abilities 44 2.2 Vision for Technology – Trends in the Factory of the Future 47 2.3 Enhancing the Indian Manufacturing MSMEs 56 2.4 The Strategic Pathway for Advancement in Manufacturing 58 2.5 Becoming Globally Competitive 62 2.6 Integrated Advanced Manufacturing Networks – Requirements And Impact 63 References 69 Appendix – E-Survey Results 73 3 LOGISTICS INTEGRATION OF SUPPLIERS FROM INDIA IN SUPPLY CHAINS OF 77 GERMAN MANUFACTURERS – REQUIREMENTS AND KEY ACTION FIELDS UNDER AN INDUSTRY 4.0 PERSPECTIVE Axel Kuhn, Tobias Hegmanns, Andreas Schmidt 3.1 Introduction 77 3.2 Logistics Requirements in Global Production Networks 79 3.3 Empirical Analysis of Logistical Requirements 81 3.4 Requirements Catalogue for Logistical Supplier Integration 84 3.5 Summary and Outlook 87 References 92 4 PATH TO GROWTH: TECHNOLOGY ENABLED LOGISTICS IN INDIA 93 Nukala Viswanadhame Abstract 93 4.1 Introduction 93 4.2 Logistics 94 4.3 Economic Relevance of Logistics 95 INDUSTRY 4.0 & URBAN DEVELOPMENT 4.4 Types of Logistics 96 4.5 Logistics Service Providers 97 4.6 Recent Technological Innovations in Logistics 97 4.7 Status of Indian Logistics Infrastructure 99 4.8 Industry Clusters in India 100 4.9 Ecosystem Framework 101 4.10 Inbound Logistics Ecosystem 104 4.11 Innovations in the Indian Logistics 105 4.12 Possible Trends for the Indian Logistics industry 106 4.13 Governance of the Logistics Network 107 4.14 Mathematical Models for Design of Governance Mechanisms 108 4.15 Indian Retail Industry 108 4.16 Urbanization and Logistics 109 4.17 Indo-German Trade: Status and Opportunities 110 4.18 Recommendations 111 References 113 5 INDUSTRY 4.0 – INTERRELATIONS BETWEEN ADVANCED MANUFACTURING AND 115 URBANIZATION IN INDIA T.G. Sitharam 5.1 Executive Summary 115 5.2 Preamble 115 5.3 Indian Manufacturing 116 5.4 Industry 4.0 118 5.5 Urbanization in India 118 5.6 Status of Three Indian Cities: Bangalore, Pune, and Noida 121 5.7 Final Remarks 132 References 136 6 ADVANCED MANUFACTURING – WHY THE CITY MATTERS, PERSPECTIVES FOR INTERNATIONAL 139 DEVELOPMENT COOPERATION Bernhard Müller, Paulina Schiappacasse Executive Summary 139 6.1 Introduction 140 6.2 Industry 4.0, Advanced Manufacturing and the City 141 6.3 The Urban Context: Challenges, Competitiveness and Planning 147 6.4 Advanced Manufacturing and Urban Development - Why Space Matters 152 6.5 Advanced Manufacturing and Urban Development – New Opportunities for International Development Cooperation? 156 References 164 List of Abbreviations 168 7 LIST OF AUTHORS 170 6 FOREWORD FOREWORD Industry 4.0 and Advanced Manufacturing are topics of a high Plan 2012–2017, and the 100 Cities Program of the National international relevance. They are currently intensively discussed Government were subjects of discussion. both in the academic literature, and in practice within the framework of Industry 4.0 which refers to the so-called 4th in- The following project results can be highlighted: dustrial revolution. They depend to a high degree on the avail- ability of adequate digital infrastructures and well-functioning — Industry 4.0 is a relevant topic for the German interna- logistics systems, and they have a number of repercussions on tional development cooperation. It has the potential to cities and regions. support all dimensions of qualitative growth as defined by the German international development cooperation. As there has not been much work done yet regarding the inter- Furthermore, it is apt to promote a green urban economy relations between Industry 4.0 (“Advanced Manufacturing”) and and to make an essential contribution to sustainable ur- urban development, the report by the Deutsche Akademie der ban development. Technikwissenschaften (acatech) presented here is dealing with a — The potential of Industry 4.0 regarding the implementati- new field of academic and practical interest, especially as it also on of the new international development agenda beyond takes up an international development cooperation perspective. 2015, based on the Sustainable Development Goals (SDGs) defined by the United Nations, should be carefully explored The acatech project reported here on “Advanced Manufactur- and introduced into the international debate. ing/Industry 4.0 and Urban Development – Connected, sustain- — Industry 4.0 has a high potential to positively impact eco- able and urban economic activities in the industrial sector in nomic development and to contribute to the sustainable the context of local, regional and global ICT-based value and development of cities of developing countries and emerging logistic chains using the example of selected Indian metropolis- economies. However, it is also dependent on appropriate es” was commissioned by the Deutsche Gesellschaft für interna- economic and urban framework conditions in order to make tionale Zusammenarbeit (GIZ) on behalf of the Bundesministeri- its potential benefits work. These framework conditions um für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ). should be especially addressed by BMZ and the German in- The study was conducted in close cooperation with the Indian ternational development cooperation. National Academy of Engineering (INAE). — India is a very suitable partner for further action, especially for generating good practice examples regarding Industry The report is based on a number of expert studies on Advanced 4.0 and urban development, and to work on the impro- Manufacturing, logistics and urban development, as well as on vement of the framework conditions for successfully prepa- own research by the authors, for example in India. Furthermore, ring the country for further development. the results of a symposium held in India together with GIZ and INAE have been reflected in the report. The opinions expressed here are those of the authors. They are neither binding BMZ or GIZ nor acatech or INAE. In the report, reference is made to the German Digital Agenda 2014 – 2017, the GIZ “Quality of Growth” concept, the GIZ/ ICLEI1 discussion paper on “Green Urban Economy”, and the BMZ document on “Managing urbanization – towards sustain- Dresden, Bremen, March 2015 able cities”. The ongoing discussion on the National Platform City of the Future (Nationale Plattform Zukunftsstadt NPZ) in Germany was taken into consideration, too. On the Indian side, among others, the National Manufacturing
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