It s all about the & Brilliant Factory at GE. sme.org/smartmfgseries

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1 It s all about the & Brilliant Factory at GE sme.org/smartmfgseries

2 Connecting for Operational Excellence Brilliant Factory Lean Manufacturing Six Sigma Operational Excellence Each element contributes to overall operational excellence

3 Identifying the Steps for Success Lean Manufacturing Customer Demand Linked to Factory Output Established Flow Continuous Improvements Foundational Business Standards Visual Performance Monitoring Six Sigma Data Driven Pursuit of Perfection Elimination of Process Variation Process Monitoring Brilliant Factory Factory that Never Stops More Safe, Efficient and Smart Production Manufacturing Processes Broken into Basic Steps Digitization of Fully-Connected Manufacturing Connecting the Process to the Data Real Time Decisions Big Data / Data Lake Advanced Analytics Design and Producibility Impactful Decisions 7-Apr-16 3

4 What is a Brilliant Factory? Customer Customer based: value/cost targets lead times quality CTQs IT STARTS WITH THE CUSTOMER

5 What is a Brilliant Factory? Customer Lean : safety flow / lead time reduction standard work / consistency cost productivity continuous improvement Lean HAS A STRONG LEAN FOUNDATION

6 What is a Brilliant Factory? 6σ Customer Lean Six Sigma methods as needed: analytic methods applied to improve Customer CTQs elusive root cause defect & variation reduction improve first pass yield USES SIX SIGMA TO MEASURE/DIAGNOSE

7 What is a Brilliant Factory? FastWorks process reinvention: 6σ Customer FW breakthrough changes Iterative experiments 3P methods Lean CONTINUOUSLY REINVENTS TO IMPROVE

8 What is a Brilliant Factory? Digital Thread: 6σ Customer Lean FW data capture/access 3d models visibility analytic methods/models feedback / control new insights / optimization Digital AND LEVERAGES NEW DIGITAL CAPABILITY

9 Brilliant Factory Vision Digitally Enabled Optimization Manual/Analog < > Digital Basic Bright Brilliant GE Brilliant Factory Limited continuous improvement < > Lean Lean Continuous Improvement

10 SOFTWARE IS IMPACTING EVERY INDUSTRY 20BN Hotel Service The world s largest accommodation provider that owns no real-estate 18BN Consumer App Economy The world s largest consumer hardware company only creates a few apps 50BN Taxi Service The world s largest taxi company that owns no vehicles #IndustrialInternet powered by

11 Consumer Internet Digital Transformation digital model Female Age Income < $70K Parents live ~ 600 miles 1st child, 5-10 months Female Age Income < $70K 39 yrs. $183B rev ( 14) insights Demographic Spends $1.2K /month online Psychographic [Model of ONE] business outcome Empowerment, Choice, Personalizatio 21 yrs. $89B rev ( 14) system transformation & expansion Segmentation Profiling, Prediction [P&L of ONE] Personalized, Synergistic Experience 17 yrs. $66B rev ( 14) platform Books PHYSICAL DIGITAL New Industries and Services [New Revenue]

12 Digital Industrial Leadership Digital Twin Engineering models that continuously increase insights in each asset to deliver specific business outcomes. digital model insights business outcome Flying in North America 2-3 Service Years Fleet LIFE Fleet Fleet PERF. Flying in North America 2.6 Service Years Last inspection found distress ranking < 2 Flies 80% in Pacific NW Per Asset PER FLIGHT [Model of ONE] Temp. T49 delta < 10o F Due for overhaul in 7.1 months Efficiencies, Performance, Economic Individual LIFE Individual PERF. system transformation & expansion Fleet Analytics Per Asset Analytics [P&L of ONE] Synergistic Economic Expansion Customized Optimizers Dynamic controls + Digital Twin + PREDIX platform Services & Products New Services & Products [New Revenue]

13 DIGITAL INDUSTRIAL IN FULL FORCE Industrial Internet no longer is a probability, but an inevitability #IndustrialInternet powered by

14 THE DIGITAL TRANSFORMATION Increased opportunities for software-defined everything; & data as a revenue generator New Business Models GE Digital Wind Farm Current, Powered by GE Speed of change requires months to days, scalability Cloud-based Platform Predix Industrial Internet Operating System Building on current IT investments and assets Convergence of IT & OT GE Digital #IndustrialInternet powered by

15 GE AS DIGITAL INDUSTRIAL $1 Trillion value of managed assets in aviation, healthcare, transportation, power & water and oil & gas 14k+ $5B developers in revenue supports customers in 100+ countries 30k+ staff globally Customer Outcomes Increased productivity for our customers Technical Leadership Merging physical & analytical science Digital Thread Common systems strategy leveraging Predix Ecosystem Approach Co-creating with customers, developers, partners Culture of Simplification Act with speed & new business models #IndustrialInternet powered by

16 INTELLIGENT INFRASTRUCTURE #IndustrialInternet powered by

17 CREATE DIGITAL INDUSTRIAL INNOVATION The Industrial Cloud Platform #IndustrialInternet powered by

18 PREDIX #IndustrialInternet powered by

19 OPEN INNOVATION ECOSYSTEM Plataine Pitney Bowes Altran BSquare Pivotal TCS Nurego FogHorn AT&T FPT ThetaRay Vodafone Azuqua Industrial Internet Consortium Accenture Intel Predix Toshiba IGATE China Telecom ANSYS InfoSys SparkBeyond Cisco Genpact SoftBank #IndustrialInternet powered by

20 Digital Thread Vision Design Systems Integration (DSI) Model Based Enterprise (MBE) Brilliant Factory Field & Service NPI Design Product Definition Mfg Engineering Production Field & Service Digital Thread: Feed-forward, Feedback, Analytics, Apps

21 A Better Way Forward Video sme.org/smartmfgseries

22 It s all about the & Brilliant Factory at GE sme.org/smartmfgseries