Driving the Digital Transformation On the way to Industry 4.0 Leonardo Cipollini UNINDUSTRIA Reggio Emilia - 29 Aprile 2016 Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. Leonardo Cipollini Business Development Director MM Digital Factory Division Product Lifecycle Management Siemens Industry Software S.r.l. leonardo.cipollini@siemens.com Unrestricted / © Siemens AG 2016. All Rights Reserved Page 2 Siemens PLM Software Siemens Division Structure Flat market driven organization Go-to-market Americas Middle East, CIS1) Europe, Africa Market Asia, Australia Global Healthcare Separately managed Healthcare Divisions (Global P&L) Power and Gas Wind Power and Renewables PG WP Energy Management Building Technologies Mobility Digital Factory Process Industries and Drives EM BT MO DF PD Financial Services Power Generation Services PS Corporate Services Managing Board HC SFS Corporate Core 1) Commonwealth of Independent States Unrestricted / © Siemens AG 2016. All Rights Reserved Page 3 Siemens PLM Software Siemens Digital Factory Division Organization Digital Factory Division Factory Automation Control Products Product Lifecycle Management Motion Control eCar Powertrain Systems Customer Services World market leader in automation with integrated automation portfolio for all industries Products and systems to switch, protect and control low-voltage consumers Proven software solutions to create, validate and manage product and process knowledge across the product lifecycle Global leading supplier of products, systems and solutions including services: Drives, Motion Control Motors, CNC Solutions for machinery and plants High quality powertrain components and charging systems for series production of electric and hybrid vehicles Integrated service offering from a single source throughout the product lifecycle Integrated product portfolio paves the way for the Digital Enterprise. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 4 Siemens PLM Software Siemens PLM Software Profile (Italy) Organization • Siemens PLM Software • B.U. of Siemens Digital Factory Division • Headquarters – Plano, Texas • Over 10.000 employees (>160 in Italy) (Milano, Torino, Modena, Novara, Treviso) Products/Solutions • PLM Software and Services Market shares • > 90.000 customers (> 4100 in Italy) • > 11 Million user licenses Unrestricted / © Siemens AG 2016. All Rights Reserved Page 5 Siemens PLM Software Driving the Digital Transformation On the way to Industry 4.0 Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 7 Siemens PLM Software The data volumes are exploding More data has been created in the past two years than in the entire previous history of the human race. • By the year 2020, about 1.7 megabytes of new information will be created every second for every human being on the planet. • Within five years there will be over 50 billion smart connected devices in the world, all developed to collect, analyze and share data. • By 2020, our accumulated digital universe of data will grow from 4.4 zettabytes today to around 44 zettabytes, or 44 trillion gigabytes. Source: www.forbes.com Unrestricted / © Siemens AG 2016. All Rights Reserved Page 8 Siemens PLM Software Unrestricted / © Siemens AG 2016. All Rights Reserved Page 9 Siemens PLM Software Veränderungen in der Kommunikation Unrestricted / © Siemens AG 2016. All Rights Reserved Page 10 Siemens PLMOnline Software Source: The Washington Post Veränderungen in der Kommunikation Unrestricted / © Siemens AG 2016. All Rights Reserved Page 11 Siemens PLMOnline Software Source: The Washington Post Products are Getting Smarter and More Connected Unrestricted / © Siemens AG 2016. All Rights Reserved Page 12 Siemens PLM Software Smart Innovations Are Transforming Every Industry Automotive and Transportation Medical Devices and Pharmaceuticals Cars that drive themselves. Implants made just for you. Aerospace and Defense Energy and Utilities Pilotless planes launching markets. Energy that self-optimizes. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 13 Siemens PLM Software Smart Innovations Are Transforming Every Industry Consumer Products and Retail Electronics and Semiconductor Coffee that knows how you like it. Sensors tattooed onto your skin. Industrial Machinery and Heavy Equipment Marine and Shipbuilding Machines that make themselves. Ships sailed by on-shore captains. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 14 Siemens PLM Software Smart Innovations Aren’t Just Improving Products; They’re Transforming the Business Landscape Phones that take photos. Cars that drive themselves. Planes without pilots. Innovation: Camera makers leverage digital technology to replace film. Innovation: Automakers develop advanced driver assistance systems. Innovation: Aerospace companies make pilotless drones for defense. Transformation: Smart phone manufacturers leverage the internet to replace digital cameras. Transformation: New players leverage driverless cars to challenge the “conveyance” model. Transformation: Pilotless aviation serves as catalyst for innovation in security, e-commerce—and photography. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 15 Siemens PLM Software How Prepared Are You to Change Your Business? The products, business models and legacy positions that once gave companies their competitive edge are no longer secure. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 16 Siemens PLM Software Transformational Forces Behind These Smart Innovations Transformational Force 2025 Economic Impact 300% increase in connected $36 trillion – Operating costs devices over past 5 years of key affected industries Cloud Technology Tens of billions $1.7 trillion – GDP related SMAC users by 2025 to the Internet 3D Printing Technology 4x revenue increase for additive $11 trillion – Global manufacturing in past decade manufacturing GDP Knowledge Automation 400+ million increase in users $9+ trillion – Knowledge of intelligent digital assistants worker employment costs Advanced Robotics 8% CAGR, growth in sales $6 trillion – Manufacturing of industrial robots, 2010-16 worker employment costs Internet of Things Unrestricted / © Siemens AG 2016. All Rights Reserved Page 17 Rate of Improvement Source: McKinsey Global Institute research 2013 Siemens PLM Software Competing in a World of Constant Transformation How can these transformational forces improve your ability to innovate? Unrestricted / © Siemens AG 2016. All Rights Reserved Page 18 Siemens PLM Software The Gartner’s Hype Cycle Unrestricted / © Siemens AG 2016. All Rights Reserved Page 19 Siemens PLM Software The Gartner’s Hype Cycle Unrestricted / © Siemens AG 2016. All Rights Reserved Page 20 Siemens PLM Software Gartner’s 2015 Hype Cycle for Emerging Technologies Unrestricted / © Siemens AG 2016. All Rights Reserved Page 21 Siemens PLM Software Siemens terms its approach to Digitalization in industry and its way towards Industry 4.0 the “Digital Enterprise” Unrestricted / © Siemens AG 2016. All Rights Reserved Page 22 Siemens PLM Software Unrestricted / © Siemens AG 2016. All Rights Reserved Page 23 Siemens PLM Software Workflows in process / discrete industry differ Digital Enterprise Process Industries Product design Processand plant design Engineering Discrete Industries Operation Services Product design Production planning Production engineering Production Services Product design starts in the laboratory Process design – P&ID Detailed engineering – electrics, DCS engineering, piping, 3D plant design… Sensors: temperature, pressure, flow, weight, analytics, Actuators: pumps/agitators, valve positioners, heating/cooling Product design and Production planning in CAD/CAE Machine and Line Automation driven by mechatronic CAD/CAE Sensors : proximity, encoders, position, motion… Actuators: hydraulics, servo-motors, linear drives Hazardous/explosive environment Unrestricted / © Siemens AG 2016. All Rights Reserved Page 24 Siemens PLM Software The Internet is revolutionizing the business world and creates major challenges for manufacturing companies Unrestricted / © Siemens AG 2016. All Rights Reserved Page 25 Siemens PLM Software Industrie 4.0 Defining the way forward in industry in the internet age An initiative of the German industry sponsored by the German Government Cornerstones of the initiative Industrie 4.0 • Horizontal integration of the value-add networks • Seamless integration of the engineering of the entire value-add chain • Vertical integration and networked production systems Source: acatech, April 2013 “Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0” Unrestricted / © Siemens AG 2016. All Rights Reserved Page 26 Siemens PLM Software Survey of 235 companies from 5 sectors with headquarters in Germany, … substantial investment is needed • By 2020, European Industrial companies will invest €140 billion annually in Industrial Internet applications • In 5 years, more than 80% of companies will have digitalized their value chain • The industrial internet creates better productivity and resource efficiency- an 18%increase in efficiency within 5 years • Digitalized products and services generate approx. €110 billion of additional revenues per year for the European industry The Industrial Internet transforms the entire company and must be part of the CEO agenda. Source: PriceWaterhouseCooper Report Unrestricted / © Siemens AG 2016. All Rights Reserved Page 27 Siemens PLM Software How prepared are you to change your business? The products, business models and legacy positions that once gave companies their competitive edge are no longer secure. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 28 Siemens PLM Software Manufactures are conscious of being the beginning of a new industrial revolution …… smart manufacturing marries information, technology and human ingenuity to bring about a rapid revolution in the development and application of manufacturing intelligence to every aspect of business ….. • Humans, devices and systems are connected along the entire value chain • All relevant information are available in real-time – across suppliers, manufacturers and customers • Parts of the value chain can constantly be optimized with respect to different criteria, e.g. cost, resource utilization, customer needs It will fundamentally change how products are invented, manufactured, shipped and sold. First Industrial Revolution The introduction of mechanical production plants driven by water and steam until the late 18th century 1784 - First mechanical loom Second Industrial Revolution Mass production, introduction of electrical power driven systems, division of work on line production systems Third Industrial Revolution Fourth Industrial Revolution 1969 - First programmable logic controller (PLC) Modicon 084 Simulation Automous and collaborative robots DIGITALIZATION Cincinnati slaughter houses Horizontal/Vertical SW Integration IOT and Industrial Internet Introduction of electronic systems and computer based automation of production 1870 - First assembly line Cloud Based on the use of cyber-physical systems trasforming traditional factories from cost center into profit center. Additive manufacturing Augmented reality Cyber security 1800 1900 2000 Time Big Data and analytics Unrestricted / © Siemens AG 2016. All Rights Reserved Page 29 Siemens PLM Software Factory 4.0 …. the fully connected way of making things CYBER SECURITY > Stronger protection for Internetbased manufacturing > Technology products with longer life cycles BIG DATA CLOUD COMPUTING > Making sense out of complexity > Creativity > Collaborative manufacturing LOGISTICS 4.0 > Fully integrated supply chain > Interconnected systems > Perfect coordination 3D PRINTING/ ADDITIVE MANUFACTURING > Scrap elimination > Mass customization > Rapid prototyping SENSORS > Zero default/deviation > Reactivity > Traceability > Predictability COLLABORATIVE ROBOT Unrestricted / © Siemens AG 2016. All Rights Reserved Page 30 > Real-time autonomy/productivity > Full transparency (contextualization, comprehensiveness, collaborative robot) on data reporting ADVANCED MATERIALS > Smart value-added products > Technical differentiation > Connectivity Siemens PLM Software Integrating the digital and real world Product Information is enriched throughout the life cycle The digital model is always up to date and will be expanded throughout the life cycle Productdesign Production planning ProductionEngineering Production Digital World Service Integrated Plant Digital Equipment Planning Digitalization Requirements Product Structures Virtual Models Service Work instructions Quality information Productions-Simulation Configuration Validation Virtual Commissioning Ramp up / Operation Monitoring Optimization - CI Documentation Maintenance Condition monitoring Real World Unrestricted / © Siemens AG 2016. All Rights Reserved Page 31 Siemens PLM Software In order to remain competitive manufacturing companies need to achieve enormous improvements in their processes Reducing the time to market Enhancing flexibility Increasing Quality Increasing efficiency • Shorter innovation cycles • Individualized mass production • Closed loop quality processes • More complex products • Volatile markets • Larger data volumes • High productivity • Traceability and integrated genealogy • Energy efficiency and resource efficiency as key competitive factors Product and production integrated Flexible production Full process transparency Optimized production resources Unrestricted / © Siemens AG 2016. All Rights Reserved Page 32 Siemens PLM Software Market competition requires … costs optimization, continuously improve productivity and be agile respond to customer demands. Activity During last years to be competitive, manufacturing companies had to: shorten time to market Time streamline and integrate their processes work closely with customers to identify and produce tailored solutions Time to market SOP make more flexible production to suit more rapidly the demands of the market. The goal is not achievable without modify dramatically the manufacturing processes to make them more integrated and efficient as possible. Time to market SOP The key enabler of the change is the adoption of specific digital technologies and SW systems dedicated to enlarge the performance of each sector and, in the same time, making possible a real integration and collaboration among the sectors. The strategy is to have all departments which working together as part of the same process supported by IT systems. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 33 Siemens PLM Software Most of the manufacturing organizations are structured by separated “silos” which doesn’t help a real process integration Organization • • • • Product Engineering Functions Features Product segment Development platforms Process Planning • Technology • Factory Layout • Production Line design Shop floor • Plants • Work areas • Equipments Focus Product documentation Reference Data Model 3D Models Process documentation Engineering BoM Product Structure as designed Unrestricted / © Siemens AG 2016. All Rights Reserved Product Manufacturing Manufacturing Resources BoM Routings Product Structure Operations Resources to be produced • Business Process logic • Physical Plant Complexity • Production plan In many cases the data communication among different IT-systems impede a real collaboration Siemens PLM Software Page 34 Only a holistic approach improving all processes along the entire value chain will fulfill the targets From virtual to real and from concept to service 1 2 4 3 5 Unrestricted / © Siemens AG 2016. All Rights Reserved Page 35 Siemens PLM Software Use case: Plant Simulation @ Volvo Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. https://www.youtube.com/watch?v=Xx0PRMhev3A Unrestricted / © Siemens AG 2016. All Rights Reserved Page 37 Siemens PLM Software Unrestricted / © Siemens AG 2016. All Rights Reserved Page 38 Siemens PLM Software Use case: Intosite @ Ford Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. IntoSite The smart Map for your Production Facilities IntoSite is a new web application that: Takes Google maps idea into the production facility turning it into a Knowledge Network that complements traditional IT systems Enables 3D navigation through production facilities Provides simple access to Digital Manufacturing and Production info in 3D context from almost any IT System Unrestricted / © Siemens AG 2016. All Rights Reserved Page 40 Siemens PLM Software Enables 3D navigation through production facilities https://www.youtube.com/watch?v=W3Y9bRoMXC0 Unrestricted / © Siemens AG 2016. All Rights Reserved Page 41 Siemens PLM Software Use case: Optima Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. Unrestricted / © Siemens AG 2016. All Rights Reserved Page 43 Siemens PLM Software Order now! GO Unrestricted / © Siemens AG 2016. All Rights Reserved Page 44 Siemens PLM Software Today 18 product variations Unrestricted / © Siemens AG 2016. All Rights Reserved Page 45 Siemens PLM Software In the future 56,000 product variations Unrestricted / © Siemens AG 2016. All Rights Reserved Page 46 Siemens PLM Software Unrestricted / © Siemens AG 2016. All Rights Reserved Page 48 Siemens PLM Software Optima https://www.youtube.com/watch?v=lDqRoNMtd9Q Unrestricted / © Siemens AG 2016. All Rights Reserved Page 49 Siemens PLM Software Progettazione 3D e simulazione meccatronica (MCD) Unrestricted / © Siemens AG 2016. All Rights Reserved Page 50 Siemens PLM Software Progettazione e simulazione di impianto Unrestricted / © Siemens AG 2016. All Rights Reserved Page 51 Siemens PLM Software www.siemens.com/plm Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation. Optimizing Innovation Within the Digital Enterprise Siemens PLM portfolio capabilities Product Lifecycle Management Manufacturing Operations Management Integrated Production Automation Unrestricted / © Siemens AG 2016. All Rights Reserved Page 53 Siemens PLM Software The Product Lifecycle Management functional areas Portfolio Management Project Management Document Management Requirements Management Mechanical Engineering Software Development Electrical Engineering Configuration & Change Management BOM Management Supplier Relationship Management Reporting & Analytics Manufacturing Planning Unrestricted / © Siemens AG 2016. All Rights Reserved Page 54 Technical Documentation Siemens PLM Software The Digital Manufacturing functional areas Part Manufacturing Assembly Planning Plant Optimization Human Performance Quality Planning Production Management Unrestricted / © Siemens AG 2016. All Rights Reserved Page 55 Siemens PLM Software Unrestricted / © Siemens AG 2016. All Rights Reserved Page 56 Siemens PLM Software www.siemens.com/plm Unrestricted / © Siemens AG 2016. All Rights Reserved Realize innovation.