Towards Industrie 4.0

s & Systems Processes & Software Future of Manufacturing Towards Industrie 4.0

Industry is once again considered the driver for growth and stability worldwide USA Germany China India "Manufacturing Renaissance" Formation of a "National Network for Manufacturing Innovation" Use of national shale gas and oil deposits (fracking) Maintain leading industrial position Sustainable investment in innovative strength High level of exports Industrie 4.0 as new guiding principle Higher product quality by use of high-end technology Rising wages Need for quality driven demand for automation Energy efficiency legislation Increased investments to improve production technologies (quality, safety, efficiency) Industry contributes to about 25% of GDP Energy Conservation legislation in place Need to improve productivity through Automation Page 2 2014-06

Challenges: Manufacturing changes are needed faster than ever before Increase the ability to compete 1 2 3 Raise efficiency Reduce time-to-market Increase flexibility Energy and resource efficiency as decisive competition factors Shorter innovation cycles Ever more complex products Larger data volumes Individualized mass production Volatile markets High productivity Industrie 4.0 will help manufacturing overcome the challenges it faces Page 3 2014-06

Roadmap towards Industrie 4.0: Evolution, not Revolution Introduction of electronics and IT to further automate production Integration and optimization of the entire product development process Industrie 4.0 Optimization of production through cyber-physical systems (CPS). All components of production are connected with the aid of sensors, RFID chips. the product itself is an active part of the production process. All information related to product & production life cycle mgmt. is available as a digital model. 1960 2010 2030 On the way to Industrie 4.0 Unrestricted / Siemens AG 2014. All Rights Reserved. Page 4 5 June 2014 Sector Industry

This image cannot currently be displayed. The future of manufacturing covering the entire product development and production process execution Services engineering planning design Need to integrate all the steps along the value chain through seamless data connection based on excellent industry software to improve productivity and efficiency For each product, alongside its physical depiction, a virtual depiction is available at every stage of the value adding process which continues to undergo further development. Page 8 2014-06

This image cannot currently be displayed. Merging the virtual and real manufacturing worlds: Digital Enterprise Platform Design and virtual production Real production planning design PLM Lifecycle Management TIA Totally Integrated Automation engineering design Cohesive data connection across every stage of the value adding process leading to optimum integration of real & virtual worlds is established using the elements of the Digital Enterprise Platform Page 9 2014-06

Digital Enterprise Platform Basis for Industrie 4.0 ivity and competitiveness cpdm PLM Early adopters Seamless integration With collectively used data models Best-of-breed products PDM Interconnected by means of data import and export 2000 2010 2020 2030 Time Change of paradigms for the next productivity stage: Integrating product and production lifecycles can reduce time-to-market by 50% Page 10 2014-06

This image cannot currently be displayed. 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) planning design CAD design software of composite materials (2011) (2007) cost management (2012) PLM Lifecycle Management TIA Totally Integrated Automation engineering Software for production planning and scheduling (2013) 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) It is only through digital depiction of the complete value chain, that we will be able to achieve all conceivable advances in productivity Page 11 2014-06

2. Portfolio for Discrete Manufacturing Siemens Industry Software Process Steps Teamcenter (cpdm collaborative Definition Management PLM NX (CAD-CAE-CAM) Tecnomatix (Manufacturing planning) MOM LMS (Simulation and Testing Solutions) LMS (Simulation and Testing Solutions) SIMATIC IT Manufacturing Execution System / Advanced Scheduling IBS Quality Management System Planning Efficiency TIA TIA Portal Engineering Framework Unrestricted / Siemens AG 2014. All Rights Reserved. Page 12 5 June 2014 Sector Industry

Example for discrete industries: Covering entire product and production lifecycles design planning engineering execution Services PLM Software Totally Integrated Automation Unrestricted / Siemens AG 2014. All Rights Reserved. Page 13 March 2014 Sector Industry

This image cannot currently be displayed. BMW: Integrated industry software optimizes production at BMW in Shenyang Electrical and mechanical turnkey solution in BMW Brilliance 1) assembly factory Totally Integrated Automation (TIA), STEP 7 for PLC, LIS and integrated PROFIsafe, SIMATIC S7 controllers, SINAMICS drives All BMW cars can be produced on one manufacturing line (so far X1 and 3 Series) future extension possible Ergonomic adjustments to production plant and high safety standards 99%+ availability helping assembly plant to avoid bottlenecks: Low downtimes High quality Automotive manufacturers reach the next level of production thanks to industry software Unrestricted / Siemens AG 2014. All Rights Reserved. Page 15 March 2014 1) Joint venture of BMW Group and Brilliance China Automotive Holdings Ltd Sector Industry

Vision of Manufacturing: Industrie 4.0 development, production and services communicate through software and networks Machines and products exchange information and instructions in real time Autonomous control and optimization Unrestricted / Siemens AG 2014. All Rights Reserved. Page 17 February 2014 Sector Industry

Our perspective of Industrie 4.0 What needs to be done! Future: Industrie 4.0 Future: Industrie 4.0 Dynamic network of local controls Today: Industrie 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 implication 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 Unrestricted / Siemens AG 2014. All Rights Reserved. Page 23 March 2014 Sector Industry

Siemens The right partner to realize Industrie 4.0 Page 24 2014-06 Siemens expertise Great experience as pioneer in automation since 1958 with SIMATIC Leading global automation vendor with largest installed base 20 billion Euro investment Trendsetter with Totally Integrated Automation, introduced in 1996 Establishing of PLM environment since 2007 Driver for standardization like Profinet, IEC, PLC open, Digital Enterprise Platform, the best-in-class, integrated product portfolio to manage design and production complexity

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