Siemens Corporate Technology | Munich, June 25, 2015 Industrie 4.0 – The Fourth Industrial Revolution Gerd Hoefner Managing Director and Chief Executive Officer Siemens Technology and Services Pvt. Ltd. Answers for life. © Siemens AG 2015. All rights reserved Agenda Industrie 4.0 - Overview Industrie 4.0 at Siemens Page 2 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Industrie 4.0 ? German for “Industry” refers to the 4th industrial revolution A strategic initiative of the German manufacturing industry sponsored by the German Government to secure the future competitiveness of the German manufacturing industry by defining define the way forward for manufacturing companies in the internet age Page 3 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved The Four Industrial Revolutions Degree of complexity First Industrial Revolution Second Industrial Revolution Third Industrial Revolution Fourth Industrial Revolution Water and Steam Power Electric Energy Electronics and Information Technology Internet of Things and Cyber-Physical Systems First production line, Cincinatti Slaughterhouses, 1870 First programmable logic controller (PLC), Modicom 084, 1969 First mechanical loom, 1784 1800 1900 2000 2011 Time Source: DFKI (2011) Page 4 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Internet of Things The Milk and The Fridge Don’t Talk* Four Takeaways: December 5, 1999 1. The “Internet of Things” is a vision of the future and has been for more than a decade. 2. Do we want a new kind of global physical, digital and virtual infrastructure of devices and entities, which will manage everything for us and also through us, to the very texture and nature of our daily life? 3. It is difficult to get away from the weak link – people. 4. Don’t forget the milk on the way home. * http://www.congregation.ie/blog-papers/the-milk-and-the-fridge.html by Noreen Henry, lecturer in IT at the Mayo campus of GMIT, October 2014 Page 5 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Cyber-Physical Systems (CPS) have all the information as a digital model A CPS is a system of collaborating computational elements controlling physical entities Contains all the information on … Software Mechanics Electrics, Electronics Automation, HMI Safety, security Maintenance + Digital model Physical production facility Location, identity… Status SW version Interfaces … The digital model is always up-to-date and is extended over the entire lifecycle Product design Page 6 June 2015 Production planning Zinnov Confluence 2015 Gerd Hoefner Production engineering Production execution Services © Siemens AG. 2015. All rights reserved The Internet of Things is becoming real .. “Smart, connected products ultimately can function with complete autonomy. Human operators merely monitor performance or watch over the fleet or the system, rather than over individual units.” How Smart, Connected Products Are Transforming Competition Michael E. Porter, James E. Heppelmann Harvard Business Review November 2014 Page 7 June 2015 Zinnov Confluence 2015 Tesla Wind Turbine A Tesla vehicle in need of repairs can autonomously call for a corrective software download, or, if necessary, When smart wind turbines are send a notification to the customer networked, software can adjust the with an invitation for a valet to pick up blades on each one to minimize impact the car and deliver it to a Tesla facility. on the efficiency of turbines nearby. Gerd Hoefner © Siemens AG. 2015. All rights reserved The Future of Manufacturing has three key element 1. Production network Flexible value chains with information available in real-time across company boundaries 2. Fusion of virtual and real world Integration of product design and production engineering for shorter time to market 3. Cyber-physical systems Modular production units with complete and consistent virtual image Industrie 4.0 analyzed how to implement the 4th industrial revolution in a German environment. Page 8 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Recommendations for implementing the strategic initiative Industrie 4.0 In order to bring about the shift from industrial production to Industrie 4.0, Germany needs to adopt a dual strategy. 1. Germany’s manufacturing equipment industry should seek to maintain its global market leadership by consistently integrating information and communication technology into its traditional high-tech strategies so that it can become the leading supplier of smart manufacturing technologies. 2. At the same time, it will be necessary to create and serve new leading markets for CPS technologies and products. In order to deliver the goals of this dual CPS strategy, the following features of Industrie 4.0 should be implemented: Horizontal integration through value networks End-to-end digital integration of engineering across the entire value chain Vertical integration and networked manufacturing systems Page 9 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Industrie 4.0 – Integration of value chains 1. Horizontal integration through value networks 2. End-to-end digital integration of engineering across the entire value chain 3. Vertical integration and networked manufacturing systems Page 10 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Germany has formed a working group for Industrie 4.0 which is off to a good start... Platform “Industrie 4.0” and its environment Clusters of excellence 45 projects ZP Internet based services for the economy, 5 WG 14 projects … and many more … Page 11 June 2015 Zinnov Confluence 2015 BDI/BDA-AK “Future of Industry” - WG “Human and Work” Gerd Hoefner © Siemens AG. 2015. All rights reserved Agenda Industrie 4.0 - Overview Industrie 4.0 at Siemens Page 12 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Siemens’ Vision for Industrie 4.0 Product and machine communication through Internet of Things Collaboration of all plant resources All devices are connected together Page 13 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Only a holistic automation approach including the whole value add chain will yield sustainable competitiveness Product design Production planning Product Lifecycle Management Page 14 June 2015 Zinnov Confluence 2015 Production engineering Totally Integrated Automation Gerd Hoefner Production execution Services Manufacturing Execution Systems © Siemens AG. 2015. All rights reserved “Digital Enterprise” Software Suite – The Siemens answer to Industrie 4.0 requirements PLM = Product Life Cycle Management MES = Manufacturing Execution Systems TIA = Totally Integrated Automation MES PLM TIA SIMATIC IT Teamcenter / NX SIMATIC / SINUMERIK Integrating all steps along the value chain based on excellent industry software to improve productivity and efficiency Page 15 June 2015 Zinnov Confluence 2015 Gerd Hoefner © Siemens AG. 2015. All rights reserved Contact Further information and information resources Further information Contact About Siemens Siemens Technology and Services Pvt. Ltd. No. 84, Keonics Electronics City Hosur Road Bengaluru 560 100 India WWW.SIEMENS.COM/ABOUT Press WWW.SIEMENS.COM/PRESS Investor Relations WWW.SIEMENS.COM/INVESTORS Internet E-Mail Page 16 Innovation WWW.SIEMENS.CO.IN/STS WWW.SIEMENS.COM/INNOVATION Jobs & Careers gerd.hoefner@siemens.com June 2015 Zinnov Confluence 2015 WWW.SIEMENS.COM/CAREERS Gerd Hoefner © Siemens AG. 2015. All rights reserved