Siemens automotive portfolio strategy is derived from customer challenges

Siemens automotive portfolio strategy is derived from customer challenges What challenges customers face? Shortened More vehicle models Higher productivity and reduced total cost How Siemens can help? Optimized production Life Cycle through integrated PLM solution More production flexibility through manufacturing IT Innovative automation concepts Highest plant Intelligent maintenance strategies Page 1

Siemens automotive portfolio strategy is derived from customer challenges What challenges customers face? Shortened More vehicle models Higher productivity and reduced total cost How Siemens can help? Optimized production Life Cycle through integrated PLM solution More production flexibility through manufacturing IT Innovative automation concepts Highest plant Intelligent maintenance strategies Page 2

Integrated save valuable time! Only an integrated view across all levels of production enables faster time to market! yesterday today tomorrow Process Level Product serial serial, shortened by tools parallel Process Mechanical Electrical time time time Further optimization by individual tools is widely exhausted Page 3

Combined IA and UGS portfolio for enhanced customer efficiency Former UGS Digital Factory CAM CAE Factory Idea design Service Product design CAD CAD PLM Product Lifecycle Management Digital collaboration Sales Logistic TIA Totally Integrated TIP Totally Integrated Power Functional automation engineering design PLC programming Production Production systems Communication Drive technologies Sensors and analytics Manufacturing Execution Systems Low-voltage control and power supply Integration process kicked of to bring together the portfolios of the two companies to an integrated product and production lifecycle Page 4

Siemens and UGS portfolio integrated in one automotive suite Factory Idea design Service Product design CAD PLM Sales Logistic TIA Digital Cooperation: Totally Continuous knowledge-based Integrated information Product exchange in innovation Lifecycle networks thanks Manageme open communication TIP standards Digital nt collaboration Totally Integrated Power Key benefits design Production Production SPEED (First to Market) Achieve concurrent disciplines Digitally analyze products and production Re-use assets: knowledge, engineering, parts, manufacturing plans & resources CONFIDENCE (Right to Market) Simulate & validate to ensure results Achieve closed-loop continuous improvement Manage change throughout the lifecycle Page 5

Designer Interaction with Siemens PLM software Digital Manufacturing Process / Mechanics Digital Engineering E-CAD PLC and HMI-code Process Designer Teamcenter Manufacturing Designer Documentation Process Simulate Commissioning Virtual Commissioning Teamcenter manufacturing will be the backbone of the Digital factory Page 6

Vision: An integrated product & production life cycle for a shortened Page 7

Time to market reduction with PLM from Siemens Conventional process Cost/Time Planning Engineering Start-up Production Optimization by comprehensive tools Optimization by standardization Optimization by simulation Planning Engineering Start-up Production Optimization by digital factory Cost/Time Optimization by openness -20 % Optimization process Page 8

Siemens automotive portfolio strategy is derived from customer challenges What challenges customers face? Shortened More vehicle models Higher productivity and reduced total cost How Siemens can help? Optimized production Life Cycle through integrated PLM solution More production flexibility through manufacturing IT Innovative automation concepts Highest plant Intelligent maintenance strategies Page 9

MES as a solution for manufacturing execution and optimization ERP Level ERP System ERP System ERP System Ethernet MES MES Server SIMATIC IT 6.3 Production Suite & Libraries MES Clients (Plants) SIMATIC Panel PC 677B SIMATIC IT Clients MES Client (Office) SIMATIC IT Web Client Press Shop Body Shop Paint Shop Powertrain Assembly Control Level Requirement: End-to-end data management from ERP to Control Level Page 10

SIMATIC IT as the first modular and standardized MES product Standard interfaces to ERP systems and for automation Dedicated components for managing the MES function (material, order, personnel mgmt ) Intuitive graphical user interface for the modeling of production processes and for data management Libraries with preconfigured functionalities for the optimization of applications in the automotive industry SIMATIC IT (Manufacturing Execution System) according to ISA95 Maintenance Management Production Management Quality Management Warehouse Management Page 11

Customer value of SIMATIC IT in the automotive industry Optimized production planning / execution through Intelligent clustering of job contents (e.g. body with same paint color) Real-Time request of material in stock and automatic reorder High plant availability through Monitoring and automatic response in case of production bottlenecks High cost savings through Reusable standard and custom libraries Application Application Application SIMATIC IT Libraries Application Custom Libraries SIMATIC IT Libraries SIMATIC IT SIMATIC IT SIMATIC IT Ł This results in total savings of investment and life cycle costs Page 12

Siemens automotive portfolio strategy is derived from customer challenges What challenges customers face? Shortened More vehicle models Higher productivity and reduced total cost How Siemens can help? Optimized production Life Cycle through integrated PLM solution More production flexibility through manufacturing IT Innovative automation concepts Highest plant Intelligent maintenance strategies Page 13

Siemens offers automation concepts for all process steps Automotive Production Press Shop Body Shop Paint Shop Powertrain Assembly Shop Concept for the Body Cells Concept for the Assembly Line Page 14

with a wide range of innovative automation products for maximum plant productivity Wired Communication Wireless Communication Identification with RFID technology systems for automotive industry Energy efficient drives technologies Plant visualization with mobile HMI and Thin Client Integrated safety Page 15

concept for a multi-stage press line Wired Communication Press shop Loading Feeder Press Stage Unloading Feeder Orientation Station Switch ET200 HMI PLC PROFINET Drives: SIMOTION D SINAMICS S120 Synchronization Synchronization Synchronization Requirement: Collision-free synchronization of feeders with the press action Page 16

Synchronization of press stages through PROFINET Wired Communication Press shop PROFINET IRT for isochronous communications (jitter <1µs) Modular drive system (SIMOTION / SINAMICS) with integrated PLC, Motion Control functions SCALENCE network components for the easy building of the network architecture Distributed I/O components with Safety Integrated and switch functionality Press Station Switch ET 200 Drives Page 17

Customer value through the use of PROFINET Wired Communication Press shop Isochronous coordination of the press motion through extremely deterministic data communications (IRT) Feeder motion that goes easy on the mechanical system through clocked material transfer between press stages Collision-free feeder control through speed-optimized loading and unloading Increased plant availability through Optimized interaction of all automation components and system-integrated diagnostics Ł Results in an overall increase of unit output by 10% Page 18

Increase of production by 10% (German cost) Wired Communication Press shop Initial Investment Production Increase Traditional Motion Control Solution with Fieldbus Solution with Innovative Drives and PN IRT Investment costs for automation (press & feeder)* 3,000,000 3,000,000 Press output (units per minute) 10 11 Annual press output (50 weeks / 24h day) 3,600,000 3,960,000 Ł Up to 360,000 units more per year Page 19

Monorail overhead conveyor with contactless data transmission Wireless Communication Final Assembly PLC Access Point Wireless LAN Antenna Client Drives Requirements: Reduction of wear elements during body transport Page 20

Low-maintenance communication based on iwlan Wireless Communication Final Assembly iwlan with PROFINET Use of innovative antenna technology (RCoax) for optimized radio field coverage Configuration and simulation of radio field Access Point Wireless Mobile Panel PLC Wireless LAN Safety integrated (PROFIsafe) System-integrated network diagnostics Client Page 21

Customer value through the use of iwlan with PROFINET Wireless Communication Final Assembly Significant cost savings through Elimination of wear- and maintenance-intensive brushgear and contacts Simplified assembly and commissioning and maintenance-free installation High reliability and availability through Use of standardized wireless technology (IEEE 802.11) expanded with additional features for industrial applications (e.g. Rapid Roaming) Ł This results in overall cost savings for ongoing production Page 22

Wired vs. wireless communication solution (German cost) Wireless Communication Final Assembly Initial Investment Access point infrastructure (access points, power supply, power splitter) Communication infrastructure (IE cable for access points, X208, FC plugs) RCOAX infrastructure (RCOAX cable, connectors, antenna cable, ) Client infrastructure (antennas, IWLAN PB link, antenna cable, ) Wired Power rail booster (for clients and infrastructure) 31.200 Wireless 10.605 1.870 Installation Communication costsinfrastructure (PB cable, switch) 40.000 4.864 40.000 - Slip ring infrastructure (slip ring, connector) 5.370 - - - - 6.696 42.680 - - Installation and commissioning 12.000 12.000 Total 53.434 73.851 Lifecycle cost Installation Material (power costsrail booster, ) 40.000 7.800 /year 40.000 - Maintenance (2 FTEs for 1 day/month) Total 15.000 /year 22.800 /year 5.000 /year 5.000 /year Page 23

Paint shop with highest energy consumption Paint shop Energy efficient drives technologies Production process Press Shop Body Shop Paint Shop Powertrain Assembly Electricity Consumption Total: 730-1040 kwh/car Metal forming: 2-9% 20-80 kwh/car HVAC: 11-20% 95-170 kwh/car Welding: 9-11% 80-95 kwh/car Lighting: 15-16% 130-140 kwh/car Paint systems: 27-50% 230-320 kwh/car Compressed air: 9-14% 80-120 kwh/car Materials handling: 7-8% 60-70 kwh/car Miscellaneous: 4-5% 35-45 kwh/car * Source: Ernest Orlando Lawrence Berkeley National Laboratory (2003): Energy Efficiency Improvement and Cost Saving Opportunities for the Vehicle Assembly Industry Ł Due to highest energy consumption in the paint shop energy efficient components are needed Page 24

Drives for ventilation/exhaust cause high energy consumption Paint shop Energy efficient drives technologies E-coat oven High energy consumption due to: High need of ventilation and exhaust air in primer and top coat sub-processes Slow and time intensive processing require constant production and energy supply Page 25

Reduced energy consumption through innovative drives Paint shop Energy efficient drives technologies Energy-efficient motors with high efficiency (EFF1 motors) due to compact design and high active current portion (improvement of efficiency e.g. about 1% for 132 kw) SINAMICS frequency converters Efficient speed control of blower drives (energy savings up to 70% compared with conventional solutions) Regeneration-capable components (initially up to 90 kw) Standard Power choke Required Braking resistor Required Configuration effort Standard Generated Harmonics Standard Generated Heat Yes Energy Efficient N/A N/A Low Low No Standard Energy Efficient Øof required power infeed Standard About 22% less Act. curr. portion, curr. comsumption Standard About 22% less input current Energy efficiency Standard Good Reactive power compensation No Yes Cabling requirements Standard Low Page 26

Application of energy efficient motors reduces energy costs Paint shop Initial Investment Approx. 100 motors (15 kw -160 kw) for ventilation and exhaust air supply Energy cost Energy efficient drives (EFF1*) 340.000 Standard drives (EFF2*) 320.000 Price per kwh: 0,09 5.000 40.000 Mio /year 40.000 5.110 Mio /year Euro 450.000 350.000 250.000 Calculation for a typical paint shop (300.000 cars /year) ROI calculation EFF 1 motors vs. EFF 2 motors 211.713 264.761 423.406 376.505 402.088 345.806 308.967 Energy efficient drives technologies 150.000 50.000 Break even 71.667 148.056-50.000 Discount rate: 20% -20.000 1 2 3 4 5 6 7 8 9 10 Life cycle *Energy efficiency class 1, energy efficiency class 2 Ł ROI of solution with energy efficient drives after 1,5 years Ł Total cumulated energy cost savings after 10 years: 0 4 Page 27

Cost Reduction up to 20% with Safety integrated Integrated safety Paint shop Use of Safety PLC and Safety Network Standard and SAFETY in one System Fail-safe I/O Standard PLC Emerg. stop Standard I/O Emergency stop Emergency stop Safety relays Reduction of: Hardware Space Engineering effort Components variety Programming Tools Fail-safe SIMATIC Emergency stop Standard & Fail-safe I/O Emergency stop Emergency stop PROFINET with PROFIsafe Approx. 20 control relays Approx. 15 safety relays Approx. 50 multi-conductor cables, connectors and plugs Inter panel wiring Big cabinets Elimination of one cabinet incl. modules Standard & safety data on one cable Standard & safety data in one station Standard & safety program in one PLC Engineering with one software tool Less investment average 20% Page 28

Investment savings by using PROFIsafe in a typical robot cell: ~ 20% (German cost) Integrated safety Paint shop Initial Investment Reduction of cabinets through elimination of hardware (cabinet space + control & safety relays) Additional safety modules in distributed operator panel Reduction of wiring material (cables, connectors, plugs) Investment w/o PROFIsafe Investment w/ PROFIsafe 14.000 10.000 1.800 3.500 3.700 2.700 Reduction of installation and commissioning costs* 12.000 (15 days) 9.600 (12 days) Total 31.500 25.800 * Maintenance cost to be neglected Ł Investment savings with PROFIsafe: ~ 20 % Page 29

Levers for Reduction of Life cycle costs by implementing Distributed Safety Integrated safety Paint shop Shorter planning and implementation phase Standardized cabinet design by applying software instead of hard-wired relays Use of one common engineering and programming tool for standard & safety program Cost saving by material and warehousing Less component variety leads to less spare parts inventory Increased flexibility in production line Thanks to program alterations and system add-ons (hard- and software) Failsafe SIMATIC PLC Emergency stop Emergency stop Emergency stop Reduced service and maintenance Fully integrated and system diagnosis Continuous and consistent operation Page 30

solution for linked plants Powertrain Plant visualization with mobile HMI and Thin Client CNC Machine (e.g. milling) PLC Machine (e.g. inspection) PROFINET HMI Client Switch HMI Client Switch HMI Client HMI Client HMI Client PLC HMI Client HMI Server SINUMERIK SINAMICS HMI Server ET200 ET200 Requirement: Flexible control concept in Powertrain manufacturing Page 31

Comprehensive portfolio of flexible control components Powertrain Plant visualization with mobile HMI and Thin Client Scalable range of control panels based on thin client -Fixed control panels for different equipment sizes -Usable both on PLC- and CNC-controlled machines -Integrated HMI on controller Flexible use of mobile control units -Use of mobile control units with integrated safety -Without additional configuration on thin client basis CNC Machine (e.g. milling) Switch HMI Client HMI Client HMI Client HMI Client HMI Server ET200 Page 32

Creating customer value with thin client components Powertrain Plant visualization with mobile HMI and Thin Client Significant cost savings through Maintenance-free components and elimination of wear parts (hard disk, blower and battery) Use of control components with minimum configuration requirements Flexibility of control concept through Client/server architecture approach centralized application update via server Easy expansion of the number of thin clients (up to 4 devices per machine unit) Ł This results in total savings of investment and life cycle costs Page 33

PC-based vs. thin client solution in a typical Powertrain Shop (German cost) Powertrain Plant visualization with mobile HMI and Thin Client PC-based Solution Thin-Client Solution Initial Investment Machine equipment HW ( PC-based HMIs) Machine equipment HW (Thin-Client based) Installation & commissioning 900,000-30,000 - - 520,000 30,000 Total Life Cycle Cost Installation Wear parts costs and spare parts (battery, blower, hard disk etc.) Maintenance 930,000 550,000 35,000 40.000 / year 40.000 13,000 / year 2,500 / year 1,000 / year Total 37,500 / year 14,000 / year Page 34

Cost reduction and more flexibility through wireless mobile HMI panel Paint shop Primer PC 477 Visualization with conventional mounted HMI panels 50m Plant visualization with mobile HMI and Thin Client Thin Client Base Coat Thin Client Thin Client Visualization with wireless mobile HMI panels Primer Base Coat Page 35

Mobile Panel 277 wireless with integrated Safety Paint shop Plant visualization with mobile HMI and Thin Client Features: IP65 housing, max. drop height of 1,2m 7,5 TFT Touch screen, 640 x 480, 64K colours 18 membrane keys with LED Emergency stop Key-operated switch 2 x illuminated push buttons Handweel Externally accessible USB connection Configuration with WINCC Flexible 2007 Failsafe Operating and monitoring TÜV / BGIA certified according to SIL 3 HMI authorization for individual operators or places / spots Identification and distance measurement by transponder technology Safety function (acknowledge button, emergency-stop) via PROFISAFE Safety-related operating elements (acknowledge button, emergency-stop) Increased availability Flexible changing of batteries for continuous operation without interruption Support of Sm@rt Access und Sm@rt service for flexible plant concepts SD-/Multi Media Card Combi Slot for fast data transmission Page 36

Investment savings by using wireless mobile HMI panel: ~ 54% (German cost) Paint shop Plant visualization with mobile HMI and Thin Client Initial Investment Wireless mobile HMI panel Mounted HMI panels 1x PC 477 incl. housing - 3.000 3 x Thin Client incl. housing 6.000 - Cabling (250 m) - 375 1x Switch X108 (8 port) - 340 1x wireless mobile HMI 277 F IWLAN 3.300-1 x access points W788/1Pro Cabling for access point (50 m) 1 Switch X005 (5 port) 950 75 150 - Total 4.475 9.715 Page 37

Continuous data management is the basis for real time process management Assembly shop Identification with RFID technology Interior/ Chassis assembly Periphery I-point MES PLC Scada Data stream Data stream depends on IT strategy 1. Decentral data storage: Constant data exchange between MES and RFID (quality data, etc.) 2. Central data storage: RFID for identification mainly RFID 2 2 1 1 RFID HMI Optimized planning and dispatching of orders for optimal use of the production lines Just in Time/Just in Sequence provision of vehicle modules, e.g. cockpits and seats Constant quality tracking in each production step to ensure high Ł Continuous data management based on an standardized interaction of MES and RFID technology Page 38

RFID technology: Guaranty for highest data availability Assembly shop Identification with RFID technology RFID Data matrix Code 110010 Barcode No direct optical link between transponder and reader necessary Read/Write Distance >3m < 99 % recognition rate Sensitive against pollution/scratches More information by less space 99,5 % recognition rate Less sensitive: 20 % can be destroyed or polluted High speed data transmission up to 6kByte/s 100 % recognition rate Resistant against pollution/scratches Data storage: up to 20 bytes Data storage: up to 200 bytes Data storage: up to 32 Kbytes No reusability No reusability Reusable up to 15 years Continuous improvement of data quality and cycle times Page 39

Siemens offers a comprehensive RFID solution for assembly shops Assembly shop Identification with RFID technology Comprehensive portfolio for individual applications and environments Data storage up to 32 Kbyte Big write/read distance up to 0,2m for skid identification (MOBY D, RF300) up to 3m for body identification (MOBY U, RF600) Protection up to IP68 Identification of vehicles up to 50 km/h Highest reliability Fast and highly reliable identification (100%) Reduction of engineering and maintenance cost Full integration in TIA Standardized programming interface No abrasion of components (compared to barcode scanning) Resistant against pollution (compared to barcode scanning) Flexibility and scalability Combination of RFID with I/O modules in distributed periphery systems e.g. ET200pro with up to 6 RFID modules Easy connectable to PROFBUS and PROFINET Reader and Transponder Moby U RFID system Communication Interfaces Page 40

Automated barcode scanning vs. RFID in a typical assembly shop (German cost) Assembly shop Identification with RFID technology Initial Investment 120 barcode scanner à 4.000 (incl. infrastructure) 1200 RFID transponder à 150, 120 reader (incl. Infrastructure) à 3.000 Barcode scanning 480.000 RFID 540.000 Software 70.000 70.000 Database and Printer 25.000 Installation costs 150.000 100.000 Total 725.000 710.000 Lifecycle cost Material costs for barcodes and printing: 150.000 pieces/year à 0,15 22.500 /year N.a. N.a. Replacement of barcode scanners (5 pieces) Replacement of transponders (5 pieces) Process costs due to scan errors: 120 scans x 30 sec (manual scan time) x 620 cars/day x 1 % scan failure rate Realization factor for process costs: 10% Total 20.000 /year 10.500 /year 53.000 /year 750 /year N.a. 750 /year Page 41

Siemens automotive portfolio strategy is derived from customer challenges What challenges customers face? Shortened More vehicle models Higher productivity and reduced total cost How Siemens can help? Optimized production Life Cycle through integrated PLM solution More production flexibility through manufacturing IT Innovative automation concepts Highest plant Intelligent maintenance strategies Page 42

Realization of maximum plant availability Example: Intelligent Maintenance PLC 1 Issues in process operation ( e.g. wrong positioning) Interior/ Chassis assembly 1 2 Issues with automation systems (e.g. breakdowns) ET200pro with FC or starter Geared motor 2 Power supply Frequency inverter Bad process execution and plant downtimes cause high costs (1 min downtime up to 70.000 Euro) Need for fast error detection and detailed maintenance information in order to reduce plant downtimes Maintenance resources to be allocated cost efficiently Ł Intelligent maintenance strategies combined with an efficient alarming management for reduced downtimes Page 43

Diagnostics and maintenance functions of the devices HMI / Scada Status Information Objects Alarm/Status Abrasion 50% 1 Threshold values 3 Dirt contamination 85% Number of overload cutoffs 372 Number of operating hours 2791 2 Device PLC Status determination Maintenance Request Dirt contamination above threshold Dirt contamination Status = Maintenance request Page 44

SIMATIC Maintenance Station Easy manageable interface allows fast reaction Status display by icons Detailed information Product identification Good Alarms Device Status Maintenance- Requirement Maintenance Request Work Order Status? Order unknown/ not requested Order requested Product condition Status information Maintenance Alarm Order in Progress Ł Minimal maintenance effort through the utilization of system integrated functions Page 45

SIMATIC Maintenance Station No programming, only generating Ethernet Device Information Maintenance Station PROFIBUS / PROFINET Maintenance Information PLC Explicit identification of all components Integration of devices based on established standards (PROFIBUS, PROFINET) Utilization of system functions and existing engineering data Detailed information for each device and cumulated analyses for entire systems No programming needed, generate maintenance information at the push of a button Ł Systematic and fast trouble shooting through transfer of detailed information (error source, cause of error, location of error) Page 46

Alarm Control Center (ACC) for optimized information processing Maintenance Station Alarm Control Center Ethernet Device Information PROFIBUS / PROFINET Maintenance Information PLC Alarm Receiver Ł Reduction of control center personnel at least one FTE per Control Center Ł Fast and direct indication of failures to the right service personnel reduces loss of production Page 47