Eckard Eberle, CEO Process Automation, Division Process Industries & Drives Smart industry seminar: Digitalization and Industry 4.0 as drivers for growth and competitive industry Page 1 September 2015 The main challenges and drivers in the industrial environment Time to market 2 Flexibility • From idea to production • Individualized products / quantities • Ramp-up of plant • Different feedstock September 2015 Output • Demanded product / quantity • Increased productivity Siemens Process Industries and Drives Costs • Resource efficiency • Operational Excellence Unrestricted © Siemens AG 2015. All rights reserved Customers see Digitalization and Digital Disruption as a threat … … and as an opportunity Digital disruption by Industry … … creates opportunities for new entrants Manufacturing structure in Finland Sales in bln EUR 119″ others Motor Vehicles Electrical 60″ 2″ 4″ Chemicals 9″ Food & Beverage 12″ Metals 15″ Machinery 17″ 2013 Source: Global Center for Digital Business Transformation, 2015 [“Digital Vortex - How Digital Disruption Is Redefining Industries”], HIS Global insight [2013] 3 September 2015 Siemens Process Industries and Drives Siemens’ main customer base Unrestricted © Siemens AG 2015. All rights reserved Digitalization is next level to yield productivity within the industry Electrification, Automation and Digitalization as levers to increase productivity Technological driver • Computing power Different initiatives, e.g. • Industry 4.0 • IoT • … • Communication Digitalization • New sensors “Digital Plant” • • Virtualization • Cloud computing • Simulation Automation “TIA@Process Industry” • • … Electrification Integrated Engineering and Integrated Operation Perfect interaction of all components along the life cycle “TIP@Process Industry” • • Next level of productivity Experienced partner for automation and electrification Electrical power wherever and whenever Seamless integrated in and controlled by TIA Time 4 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Digitalization in discrete industries focuses on digitalization of the entire value chain Digitalization – Different forms in industries Siemens offerings for the future of industry Discrete Industry Product design Production planning Process Industry Production engineering Production Service Product design Process & plant design Engineering Operation Service Digital Enterprise 5 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Discrete industry – The entire value chain from product design to service is digitalized and integrated Simulation Product Lifecycle Management (PLM) Manufacturing Execution Systems (MES) Totally Integrated Automation Real World Lifecycle & Data driven Services 1 2 3 4 5 Services Production Production engineering Production planning Digital World 6 September 2015 Product design Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved The logical way – Step by step into the digital world Four steps on the way to the Digital Enterprise for small and medium-sized enterprises 7 September 2015 1 Digital Enterprise Software Suite 2 Industrial communication networks 3 Security in automation 4 Business-specific industrial services Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Digitalization in process industries focuses on digitalization of plant across the whole plant life-cycle Digitalization – Different forms in industries Siemens offerings for the future of industry Discrete Industry Product design Production planning Process Industry Production engineering Production Service Product design Process & plant design Engineering Operation Service Digital Enterprise 8 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Already today, customer plan digitalization steps to address key challenges of their Industries Digitalization in Process Industries – Customer Discussion Examples Chemicals – Seasonal production Challenges: 9 Pharma – Personalized Medicine Today: • Plant in one location over entire life cycle Today: • Generic drugs produced in large quantities Vision: • Jan-Apr: Operation integrated w/ 20 modules • Apr-Jun: Transport to different locations/ Service • Jun-Nov: Immediate operation w/o any delay Vision: • Small, personalized, quantities of drugs (batch) • Disposable production units (i.e. infusion bags) • Highly automated modules with self-diagnostic functionality • Remote maintenance and control • Standardized modules September 2015 Challenges: Siemens Process Industries and Drives • Standardized modules for decentralized production • Flexible automation and central recipe management • Sensor / actor technologies (i.e., disposable micro technology) Unrestricted © Siemens AG 2015. All rights reserved Siemens drives Digitalization in Process Industries through Integrated Engineering and Integrated Operations Digitalization in Process Industries – Focus of Siemens Plant Design / Engineering Installation / Commissioning Operation / Services INTEGRATED ENGINEERING enabled by Horizontal Integration… Common data model Simulation Integrated engineering tools Cloud-enabled services and analytics Next level of Control Digitalization of field level Safe connectivity …INTEGRATED OPERATIONS through Vertical Integration 10 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Integrated Engineering will connect all systems and devices along the life cycle and enable as-is transparency of all assets in a digital plant Digitalization in Process Industries – Integrated Engineering 1 Vision Integrated Engineering Seamless integration along the lifecycle (design, engineering, operations, maintenance) of all devices / systems Digital model of real plant in “as-is” quality to enable support during the entire lifecycle “As-is” transparency on all asset related information and central availability of all data Seamless connection between all devices and levels ensuring IP protection and IT security Simulation tools help to validate plant design, capture know how and make it accessible 11 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Integrated engineering as efficiency driver in the process industry Example BMA Product design Process & plant design Engineering Operation Service COMOS SIMATIC PCS 7 Integrated engineering with COMOS/SIMATIC PCS 7 • Effort for the creation of typicals reduced by 25% • 60% of the plant generated from typicals in COMOS • Project failures minimized • Time savings for the customer BMA benefits from an optimal integration of both systems and a continuous workflow 12 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Integrated Operations enables real time transparency to frees up productivity potential and remote and modularized solutions to increase flexibility Digitalization in Process Industries – Integrated Operations 2 Vision Integrated Operations Decision support through real-time transparency on all levels (field, plant, enterprise) Unfold efficiency and productivity potential through analytic tools and services Increased reliability by usage of information and experience, e.g., through predictive maintenance and remote services Remote operations supported by advanced process control, embedded intelligence and assisting systems for operators Plug‘n’produce ability through standardized, flexible and scalable integration as well as open interfaces 13 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved Siemens – Trusted partner Trusted customer solution partner – from early concept discussion to complete solutions Leading automation vendor worldwide with largest installed base (SIMATIC) Software Provider over the entire life cycle 14 September 2015 Siemens Process Industries and Drives Unrestricted © Siemens AG 2015. All rights reserved