What is it, and what does it mean for us? Leif Hinrichsen Regional Sales Manager WA SA

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1 Industry 4.0 What is it, and what does it mean for us? Leif Hinrichsen Regional Sales Manager WA SA Page 1

2 Agenda Industry 4.0 What is it? Why should Australian industry care? What do we need to do to get there? Page 2

3 Industry 4.0 What is it? Page 3

4 Industry 4.0 Released! Page 4

5 Industry 4.0 the Fourth Industrial Revolution Page 5

6 The Future of Industry: What does personalised mass production look like? Page 6

7 The Future of Industry: What does personalised mass production look like? Flare Wheel Arch +15% Design your own model with unlimited customisable options Page 7

8 Fusion of the real and virtual worlds Siemens PLM examples From design to showroom floor 36 months down to 24 months Rapid Prototyping Digital SLR 100% designed & tested in virtual world Page 8

9 Internet of Things 2012 IPv6 gets things started Page 9

10 The Future of Industry: Industry 4.0 three key elements 1 Production network Flexible value chains with information available in realtime across company boundaries 2 Fusion of virtual and real world Integration of product design and production engineering based on a common Digital Enterprise Platform 3 Cyber-physical systems Modular production units with complete and consistent virtual image Page 10

11 Industry 4.0 Production based on cyber-physical systems Smart products The product to be manufactured has all the necessary information for every step of its production Autonomous production facilities Self-organization of networked production facilities taking into account the entire value chain Production steps are configured flexibly in response to changing situations Reduction of complexity due to smarter structures Page 11

12 Cyber-physical systems have all the information as a digital model Cyber-physical system (CPS) Contains all the information on Physical production facility + Digital model Software / Informatics Mechanics, Electrics, Electronics Automation, HMI Safety, security Maintenance Location, identity Status SW version Interfaces The digital model is always up-to-date and is extended over the entire lifecycle Product design Production planning Production engineering Production execution Services Page 12

13 Industry 4.0 Why should Australian industry care? Page 13

14 Australia, a place to do business Industry GDP Mining 13.5% Manuf. 11% Construct. 9.5% Agriculture 2% *source Page 14

15 Global Challenges: Industry is changing faster than ever before Increasing competitiveness 1 Increase efficiency Shorten 2 3 Enhance flexibility time-to-market Energy and resource efficiency are decisive competitive factors Shorter innovation cycles More complex products Larger data volumes Individualized mass production Volatile markets High productivity COMPETITION Page 15

16 Renewed Focus on Industry National Manufacturing Policy: National Investment all over India with modern infrastructure and less red tape Automation to increase productivity and improve quality Manufacturing GDP increase 16% to 25% by Real Value: manufacturing generates $1.48 support compared with $0.54 for retailing. Obama proposal: National Network for Manufacturing Innovation - 15 research institutions Mars Rover: virtual development using PLM will become the baseline for Industry 4.0 Berlin has a master-plan to double the number of industrial jobs Germany has highest exports per capita from 2003 to % of these come from mid-sized companies Industrie 4.0 national working group Page 16

17 Finding our place Can Australia be the best at everything? Where do we fit in the global supply chain? Who are our real competitors? What enablers do we need? Do we have particular strengths in: food and beverage? medical sciences? oil and gas? mining? and advanced manufacturing? Page 17

18 Role of Government...to create a way forward for industry Policy Certainty Articulate that they want to have a strong industrial & manufacturing sector in Australia. Then policies to reflect this. Enablers for manufacturing Clear Vision Incentivise Technology Investment Incentives not hand outs: Productivity increases Energy efficiency Could we prequalify funding for certain technologies that are more efficient? Loans for technology upgrades? Bridge ROI gaps Simplify & remove red tape Encourage educational collaboration Drive infrastructure development to enable Industry Page 18

19 Industry 4.0 What do we need to do to get there? Page 19

20 Much to be done! Future: Industry 4.0 Future: Industrie 4.0 Dynamic network of local controls Today: Industry 3.x Today: Industrie 3.8 Local controls Realtime communication Digital "copies" of products and production Manufacturing Execution Systems Industrial security concepts Execution and decision making mainly by humans Rule framework and architecture for dynamic topologies Massively extended semantics for M2M communication Integrated process simulation Extended complex communication Digital models of the overall process and participants Process optimization in dynamic networks Self-configuring security concepts also for temporary requirements Humans to define rules and frameworks for decision making Page 20

21 The future of industry covering the entire product development and production process We need to integrate all the steps along the value chain based on excellence in industry software to improve productivity and efficiency Page 21

22 Siemens is continually investing in R&D Research & Development Over A$6 billion 160 R&D locations globally 29,500 R&D employees 57,300 patents granted 8,900 inventions registered in fiscal 2012 In the time it takes me to present today, Siemens will have registered at least one more new invention. In fact today, Siemens will have registered about another 40 inventions. Page 22

23 Real and virtual worlds are converging thanks to our Digital Enterprise Platform Design and virtual production Real production Production planning Product design PLM Product Lifecycle Management TIA Totally Integrated Automation Production engineering Production execution Page 23

24 Real and virtual worlds are converging thanks to our Digital Enterprise Platform Design and virtual production Integrated plant management (2008) Ethernet communication products and network solutions (2012) Real production PLM software integration (2013) Computer-aided motion software (2012) CAE software for simulating and testing of mechatronic systems (2012) Production planning Product design CAD design software Production of composite materials (2011) (2007) Product cost management (2012) PLM Product Lifecycle Management TIA Totally Integrated Automation Production engineering Software for production planning and scheduling (2013) Production execution Industrial quality and production management (2012) MES software Life science industries (2009) Software for production management (2001) MES software Pharmaceutical and biotech industries (2011) Page 24

25 Smart data for efficiency Page 25

26 Big data to smart data Snowtown II Snowtown II Wind farm Australia s newest wind farm 270 MW 90 turbines, 80metres high 53 metre long rotar blades Smart Data 800 sensors collecting data continuously transmits to Brande in Denmark Vibration sensors can detect even tiny deviations that indicate a potential defect. Allows predictive maintenance Data from the Snowtown II site flows continually to the diagnostic centre of Siemens Wind Power Services in Brande, in western Denmark. The facility collects and evaluates all the operating data from more than 7,500 Siemens wind turbines all over the world. Page 26

27 But in the future world, new skills are needed Page 27

28 Digital Enterprise Platform Basis for Industry 4.0 Productivity and competitiveness cpdm PLM Early adopters Product Seamless integration Production With collectively used data models Best-of-breed products PDM Product Production Interconnected by means of data import and export Time Change of paradigms for the next productivity stage: Integrating product and production lifecycles can reduce time-to-market by 50% Page 28

29 Infiniti Red Bull Racing Accelerated design with Siemens PLM software What we can learn from F1 The competition is global (embrace globalisation) It relies on continual investment in technology We are in a race to Industry On the journey to Industry 4.0 Page 29

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