INDUSTRIE 4.0 ENABLED INNOVATIVE SPARE PARTS MANAGEMENT

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1 INDUSTRIE 4.0 ENABLED INNOVATIVE SPARE PARTS MANAGEMENT THE IMPACT OF INDUSTRIE 4.0 ON LOGISTICS AND SUPPLY CHAIN MANAGEMENT PROF. DR.-ING. BERND HELLINGRATH INDUSTRIE III Seminário 4.0 Brasil-Alemanha Enabled Innovative de Inovação Spare Parts Management Prof. São Paulo, Dr.-Ing. November Bernd Hellingrath 12,

2 AGENDA 1 Industrie 4.0 Enables New Opportunities 2 Innovative Spare Parts Supply Chain Management 3 New Business Models 2

3 INDUSTRIE 4.0 INDUSTRIE 4.0 ENABLES NEW OPPORTUNITIES Overview of Industrial Revolutions Power Loom 1784 Conveyor Belt Revolution Electricity Programmable Logic Controller Revolution Digitalization Cyber-physical Systems Today 4. Revolution M2M Collaboration Complexity 1. Revolution Steam Power Introduction of Cyber-physical Systems into Production and Logistics Time CPS enable vertical integration and horizontal collaboration in production and logistics. These capabilities offer the potential to define new business processes and to develop new services and new business models. [Forschungsunion Wirtschaft Wissenschaft 2013] 3

4 CAPABILITIES OF CYBER PHYSICAL SYSTEMS INDUSTRIE 4.0 ENABLES NEW OPPORTUNITIES Sensors Advanced sensors enable CPS to assess its environment in real time, allowing an early recognition of disturbances Actuators Through actuators, a CPS can influence its environment, e.g. by performing a specific production process Embedded Systems Embedded systems can be used to perform control and planning tasks locally and to adapt such plans in near realtime Connectivity A direct network connection enables a vertical integration of information and a horizontal collaboration between multiple CPS 4

5 INTELLIGENT MAINTENANCE SYSTEMS INNOVATIVE SPARE PARTS SUPPLY CHAIN MANAGEMENT IMS Simulator Manufacturer of electric valve actuator used in oil pipelines Embedded Sensors Model Expert Knowledge! Watchdog Agent Degradation Information Distributed IMS using Artificial Immune Systems Assessment Prognostics Breakdown of actuators lead to reduced volume transportation and high costs Intelligent Maintenance Systems provide information about current machine condition and remaining useful life Improvement of IMS capabilities regarding failure forecast 5

6 INTEGRATED PLANNING INNOVATIVE SPARE PARTS SUPPLY CHAIN MANAGEMENT Individual condition monitoring information IMS Intelligent Maintenance System CMMS Computerized Maintenance Management System Request for altering machine s mode of operation Integrated Planning Decision Support for planning the spare parts supply chain including all related levels and activities Considers data available in advanced supply chain planning system Planning on short and mid-term time horizon Aggregated & enriched condition monitoring information Request of maintenance Scheduled maintenance services Transportation Planning Production Planning Integrated Model APS Advanced Planning System Inventory Planning Service Management Planning 6

7 THE BIG DATA APPROACH INNOVATIVE SPARE PARTS SUPPLY CHAIN MANAGEMENT Big Data Sensor Data M1 Expert Knowledge Sensor Data M2 Master Data Sensor Data M3 Machine Control Data Analytics Methods Failure Pattern Remaining Useful Life Improved Supply Chain Management Pre-location of spare parts Early availability check of personnel and tools On-time production Reduction of transportation and inventory costs Enablement of new business models 7

8 IMS ENABLED BUSINESS MODEL (EXAMPLE) NEW BUSINESS MODELS Example (Condition Based Monitoring Business Model Development) Trigger Condition Mon. Business Modell Pilot Rollout CM CM + Data Full Maintenance CM Business Model Aspect Technology For whom: machine users Environment How: data collection Primary Services What: guaranteed maintenance Revenue: flat fee Further Services 1 Detailed definition of a New Business Model: Full Maintenance Package for annual flat fee (enabled by IMS, data analytics) Next Steps: further development of additional service offerings based on data (additional services ideas presented on next slides) 1) E.g. developed with Data-First Approach of Big Data Methodology [Business Model Inspiration: FEINTOOL] 8

9 INDUSTRIE 4.0 ENABLES BUSINESS MODELS NEW BUSINESS MODELS Impact of Innovation on Business Models The connection of a product and a service opens up new business models that can be continuously adapted to changing customer requirements Options New services, e.g.: Guaranteed machine availabilities Remote optimization of machine usage ( manufacturer feedback ) Remote maintenance support (more immediate help in case of failure) Other effects Shift of revenue back to manufacturer (e.g. maintenance) Better knowledge about customer usage (for new machine development) Lower costs due to optimization with regard to spare parts inventory, etc. (lower costs could be used to offer lower prices) Immediate Revenue Shifts Traditional Model some maintenance provided by local firms Manufacturer Other providers Total Costs for Customer Manufacturer Other providers Total Costs for Customer Manufacturer with all spare parts revenue Lower costs for customer due to predictive maintenance benefits 9

10 CHAIR FOR INFORMATION SYSTEMS AND SUPPLY CHAIN MANAGEMENT PROF. DR.-ING. BERND HELLINGRATH LEONARDO-CAMPUS 3; MÜNSTER GERMANY 10

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