German Industry 4.0 Index 2015
Industry 4.0 and Lean
A study by Staufen AG
your partner on the way to Top performance
.2
EDITORIAL
When Staufen AG checked the company for the "German Industry 4.0 Index" for the first time
nine months ago, the investigation revealed a mixed picture. Because although the until then
few flagship projects apparently made the heart of the entire industry beat faster, most
companies were still in idle mode when it came to the topic of networked factories.
There can be no more talk of this in mid-2015.
As the second study impressively shows, the 4.0 engine has started. The proportion of companies that already network their value stream
comprehensively or in individual projects has more than doubled compared to the previous year's survey, at 35 percent. However: Many
employees and executives threaten to lose touch with this dynamic development after the intermediate spurt.
So that it doesn't get that far, it's worth taking another look at the 4.0 pioneers. Is there something in common between the networked pioneers?
Yes: lean management. According to the study, an above-average number of them have already set up their entire organization efficiently. In
addition, they develop their processes and procedures at the point of value creation in such a way that technical progress and the further
development of management culture are always in step.
Andreas Romberg,
Director Business Unit
This shows that the tried and tested pacemaker lean management forms the ideal foundation for the intelligent factory - also for companies
Staufen AG
that have not yet or only partially dared to make the transition to the smart factory
ABOUT THE SURVEY
For the “German Industry 4.0 Index 2015”, the management consultancy Staufen asked a total of 179 industrial
companies in Germany on the subject of “Industry 4.0 and Lean”.
The survey took place from mid-April to early May 2015.
Around 70 percent of the companies surveyed come from the mechanical and plant engineering, electrical and
automotive industries.
.3
BACKGROUND AND FRAMEWORK OF THE STUDY
The success of the German economy is based to a large extent on its ability to produce high-quality technical
innovations and to manufacture these new products on competitive terms. The control of a complex, work-sharing and
geographically branched production structure is a basic requirement for this. This networking is currently increasing
rapidly and the Internet of Things is finding its way into factories.
In ten years at the latest, there is hardly a manufacturing company that can do without
The 2015 Hanover Fair already made the vision of a Smart Factory concrete. For the
networked production. According to a survey by the Association of Electrical, Electronic
first time, companies presented technologies that customers can buy and install directly
and Information Technologies (VDE) presented on the occasion of this year's Hanover
in their machines and systems. Trade fair boss Jochen Köckler: "Industry 4.0 is far more
Fair, the “smart factory” will be a nationwide reality by 2025 at the latest, thereby greatly
than a catchphrase, it is reality and has arrived in the present". 2
improving Germany's competitiveness. More than half of the respondents are also
convinced that Industry 4.0 is an important path to the ongoing re-industrialization of
Europe. 1
The study presented here emphatically confirms this assessment. A lot has happened
since the first edition of the “German Industry 4.0 Index” in summer 2014. Most
important finding: German industrial companies have taken a significant step
towards the smart factory in less than a year.
However, re-industrialization does not mean going back to analog times. Because in the
factory of the future, machines and workpieces permanently exchange information and
However, the study also shows the technical and organizational challenges that
automatically and intelligently ensure optimal results and efficient processes.
Germany as an industrial location still faces in times of digital transformation.
1
VDE trend report electrical information technology 2015: Innovation - Markets - Labor market
2
http://www.hannovermesse.de/de/presseservice/pressemitteilungen/pressemitteilungen-deutsche-messe/?id=717953&lang=D&page=&page_ size = 20 & area = & sub area =
. 4th
THE SURVEY
More and more companies are becoming "Smart Factory"
After the already strong media presence of the term Industry 4.0 in recent years, the intelligent factory has finally
arrived in business reality in 2015. 76 percent of all companies are now dealing with it - in 2014 it was significantly
less at 60 percent. The first fully networked factories are already working and almost every third company has
already started the path there with specific projects (previous year: 14 percent).
This shows that the larger firms tend to be further ahead
Industry 4.0, the internet-based networking of objects, machines and people in real time, is currently the hot
than the smaller firms. This is particularly evident in the
topic. How far is your company on the way to the “Smart Factory”?
number of companies that continue to ignore the topic of
Industry 4.0 completely. Because while across all
company sizes only 19 percent (previous year: 34
percent) refuse the idea of a smart factory, this rate is
Industry 4.0 is fully
40 percent for companies with fewer than 250 employees
operational with us
and less than 10 percent for companies with more than
5%
No Answer
4%
implemented
19%
We haven't really looked at it yet
36%
The topic is in the observation
1000 employees .
We follow operational
31%
Individual projects in terms of things
Industry 4.0
and analysis phase
The topic is in the planning
and testing phase
5%
2015
2014
19%
We haven't been specific yet
busy with
34%
The topic is in our
36%
Observation and analysis phase
39%
The topic is in our
5%
Planning and testing phase
6%
We pursue individual operational projects
31%
Industry 4.0
14%
Industry 4.0 is becoming comprehensive for us
4%
implemented operationally
1%
5%
No Answer
n = 179
6%
0%
10%
20%
30%
40%
50%
.5
Focus on production and warehousing
The vast majority of companies that are already dealing
In which areas of the company are you already relying on Industry 4.0 or are you planning to use it there
with the Smart Factory focus on production (86 percent).
soon? Multiple answers possible.
Two thirds now also focus on logistics and warehousing.
Respondents are already implementing Industry 4.0 comprehensively or operationally in individual projects, or are at
Research and development has lost some of its
least in the planning and test phase.
importance, while service and sales have received a
significant boost. After all, almost every fourth company
2015
(23 percent) would like to optimize its service according
100%
to Industry 4.0 aspects, 16 percent now also have sales
90%
in their sights.
2014
93%
86%
80%
70%
66%
60%
50%
40%
31%
30%
29%
34%
23%
16%
20%
7%
10%
13%
10%
7% 10%
3%
0%
production
Logistics /
Warehousing
research
service
administration
Purchasing
distribution
and
(Finance,
Staff,
development
Etc.)
n = 70
Germany stays ahead - China overtakes France
As in the previous year, the vast majority of those
In your opinion, which country has made the most progress today on the way to Industry 4.0?
surveyed are convinced that Germany is the world's
leading nation when it comes to industry
4.0 is possible. As in the previous year, Japan and the
USA rank in second and third place.
(Average rating, 8 = most advanced)
8th
2015
7.06% 7.11%
7th
6.35% 6.26%
2014
6.26%
6th
Germany still has to be careful not to fall behind in the
innovation race for Industry 4.0 dominance in view of the
US dominance of technical software and internet
platforms or their links to applications in trade and
industry (big data). 3
5.24%
5
4.86%
4.31%
4.28%
3.75%
4th
4.14%
4.38%
3
2
In the USA, Cisco, General Electric and IBM have joined
forces with other companies for the purpose of
standardization to form the Industrial Internet Consortium
(IIC). Bosch and Siemens from Germany are also there. 4th
1
0
Germany
Japan
USA
UK
China
France
So whether Germany will win the race for technology
Especially since another big player is already positioning itself with China. While the Middle Kingdom had to lag behind
leadership in the long term has not yet been determined.
Great Britain and France in 2014, it could now break into the European phalanx. In view of the great Industry 4.0
euphoria in China, Beijing will hardly be satisfied with this position.
3
VDE trend report electrical information technology 2015: Innovation - Markets - Labor market
4th
heise.de: "Industry 4.0: Bosch wants to drive standards forward" on February 15, 2015: http://www.heise.de/newsticker/meldung/Industrie-4-0-Bosch-will-Standardsvorantreiben-2549645.html
. 6th
The importance of the topic has long been underestimated
Despite its position at the top of the world, German
How has German industry positioned itself on the subject of Industry 4.0 so far?
industry is quite self-critical. The clear majority of
true
companies (61 percent) say that business is the
importance of industry
rather applies
does not apply
rather does not apply
The importance of Industry
23%
4.0 has long been
4.0 I underestimated for a long time. Even three quarters
underestimated
of the companies admit that the industry was not very
The pace of the industry
sensitive to the assessment of the speed of change.
4.0 development was
38%
18%
34%
5%
56%
22%
4%
initially underestimated
The qualification of the
38%
Employee limps
Interesting: While the verdict on an industry or the
economy in general is often much harder than looking at
one's own house, this time the companies questioned
also go harshly with their own forecasting skills. Perhaps
also because the consequences cannot be denied.
Three out of four companies admit that the qualifications
45%
1%
16%
Development afterwards
The qualification of the
40%
Executives are limping
45%
1%
14%
Development afterwards
The urgency of the
25%
Too little was addressed in
37%
33%
5%
politics
of both employees and managers are lagging behind
their development. Incidentally, this also applies to
n = 130
10%
0%
20%
30%
40%
60%
50%
100%
90%
80%
70%
companies that already have operational experience as a
smart factory.
And how has your company positioned itself so far on the subject of Industry 4.0?
true
rather applies
does not apply
rather does not apply
The importance of Industry
23%
4.0 has long been
32%
35%
10%
underestimated
The pace of the industry
20%
4.0 development was
42%
30%
8th%
initially underestimated
The qualification of the
38%
Employee limps
34%
23%
5%
Development afterwards
The qualification of the
39%
Executives are limping
38%
20%
3%
Development afterwards
The urgency of the
25%
Too little was addressed in
32%
27%
16%
politics
n = 123
10%
0%
20%
30%
40%
60%
50%
100%
90%
80%
70%
Industry 4.0 strengthens economic success
Even if the companies themselves have not yet classified
What will Industry 4.0 achieve in your company in the next five years?
themselves as predictably reliable, Staufen AG wanted to
know from them what Industry 4.0 will affect their
companies over the next five years. 72 percent of all
respondents are convinced that converting them to
intelligent factories will make them more economically
successful. Companies with operational Industry 4.0
experience are even more optimistic here.
true
rather applies
does not apply
rather does not apply
Our business model
17%
dell will change noticeably
40%
Our product range
te will change
37%
40%
8th%
6%
42%
10%
noticeably
Our R&D activities
24%
become noticeable
48%
22%
6%
change
In addition, three out of four respondents expect a
significant impact on their own research and
development activities. In five years' time, the majority of
companies will also no longer see their own business
model and current product range as they do today.
The composition
12%
our workforce will
39%
41%
8th%
change noticeably
Our company
25%
becomes economical
47%
22%
6%
more successful
n = 124
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
. 7th
Lean processes form the foundation for Industry 4.0
The foundation for the smart factory and the economic
How strongly have you already established the methods of lean management in your company? Please
successes hoped for are efficient processes in
select an answer that best fits your status.
production, development and administration. The study
therefore asked how far the companies are with regard to
the introduction and implementation of lean
step 1 - a continuous improvement process has been
18%
established
management.
Level 2 - The added value is based on the most
41%
important lean principles
Almost every fifth company (18 percent) has so far only
introduced a continuous improvement process,
level 3 - even the indirect areas already follow the lean
15%
principles
In addition, 41 percent have already aligned their entire
added value according to the lean principles and a
further 15 percent have already extended this to the
Level 4 - Strategy and organization comprehensively
17%
implement the Lean philosophy
indirect areas.
No lean management introduced
9%
The next step - the complete alignment of strategy and
organization to the lean philosophy - has so far only
0%
n = 123
10%
20%
30%
40%
taken 17 percent of those surveyed. From the companies
that have already gained experience with Industry 4.0
projects,
however, 27 percent do this. This leads to the conclusion
that advanced lean experiences clearly pave the way for
Industry 4.0.
Value stream orientation as the most important basis
The value stream-oriented organization of production
In your opinion, how important are the following lean management methods when implementing
and development is the lean method that, from the point
Industry 4.0?
of view of companies, helps most in the implementation
of Industry 4.0. 88 percent of all respondents consider
not important
less important
neutral
very important
important
value stream orientation to be very important or
important. Variant and complexity management is also
well ahead,
Value stream oriented
1% 3%
Organization of production
83 percent consider this to be very important or important
when setting up and operating a smart factory. However,
the use of standard procedures, the reduction of set-up
and throughput times as well as consumption control
Use of standard procedures
49%
3% 3%
18%
and technologies in production
43%
33%
and development
based on the Kanban or supermarket principle are
mostly classified as very important or important.
39%
8th%
and development
1% 5%
Reduction of throughput
21%
and set-up times
Consumption control
(e.g. Kanban or supermarket
28%
45%
1%
9%
30%
33%
27%
principle)
2% 2%
Variants and complexity
management
n = 122
13%
33%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
50%
50%
. 8th
Lean methods are not yet implemented consistently enough
When it comes to the implementation of the individual
How is your company currently positioned with the following lean management methods?
lean methods, however, the respondents see room for
improvement. Only about four out of ten companies state
that they are well or even very well positioned when it
inadequate
sufficient
satisfying
very good
Good
comes to lean management. It makes little difference
whether it is about value stream-oriented organization,
Value stream oriented
the use of standard procedures or the reduction of
Organization of production
throughput times. One outlier upwards is consumption
and development
7%
14%
36%
35%
8th%
control, where 13 percent feel that they are already very
well positioned. On the other hand, companies see the
greatest need for action in complexity management,
where only every fourth company issues a good report.
Use of standard procedures
and technologies in production
5% 13%
35%
41%
6%
and development
4%
Reduction of throughput
15%
and set-up times
Consumption control
(e.g. Kanban or supermarket
41%
17%
8th%
34%
30%
6%
32%
13%
principle)
Variants and complexity
management
n = 120
12%
25%
37%
23%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Lean and Industry 4.0 complement each other
The Lean implementation, which may have stalled at one
How will Industry 4.0 influence the use of lean management?
or the other company, could now get going again.
Because four out of five respondents (82 percent)
true
rather applies
rather does not apply
does not apply
believe that Industry 4.0 is a renaissance for lean
management prin-
Lean management creates
the prerequisite for the successful
tipping means that procedural thinking is given more
weight again.
33%
introduction of
44%
4%
19%
Industry 4.0
With Industry 4.0, lean
And not only the companies that already have
management experiences a
31%
Renaissance, as thinking in terms
experience in Industry 4.0 are absolutely certain that the
of processes comes back into
technology-oriented Industry 4.0 thinking
focus
51%
14%
6%
Lean Management (am
fits perfectly with the Lean philosophy, which is oriented
towards the value stream
Value stream oriented) and Industry
37%
4.0 (technology oriented)
53%
9%
47%
13%
complement each other perfectly
and the approaches complement each other perfectly.
Businesses can too
without lean methods
successful in the industry
10%
30%
4.0
Industry 4.0 will ultimately make
lean management
1%
6%
30%
become superfluous
n = 118
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
63%
4%
.9
Managers are challenged as communicators
According to scientists, the role of managers will change
What effects does Industry 4.0 have on leadership?
in a smart factory. 5 However, not all those affected are
convinced of this. More than half of the respondents (56
percent) see a future for their traditional leadership
true
rather applies
does not apply
rather does not apply
behavior, only nine percent are certain that the
management of employees will change fundamentally in
The management of employees will
the near future.
not change fundamentally
However, almost all (86 percent) assume that managers
will have to be even better communicators in the future.
Almost a third of the study participants (31 percent)
believe that Industry 4.0 knowledge is becoming more
important than management knowledge.
17%
39%
35%
9%
Managers are in the future
38%
demanded even more than good
48%
14%
communicators
Industry 4.0 know-how becomes
more important for managers
10%
21%
52%
17%
as management knowledge
In the future, employees will act
Almost two thirds (62 percent) of those surveyed also
see it coming that employees will act more autonomously
more autonomously and thus be
less dependent on managers
54%
8th%
32%
6%
in the future and will be less dependent on managers.
Here, the respondents are now very close to the
The number of managers per
scientists who advocate moving away from central
employee will tend to decrease
4%
38%
46%
12%
management structures and turning to decentralized
decision-making mechanisms for smart factories
n = 117
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
deem necessary. 6th
Shop floor management prevails
The basis for this is provided by so-called shop floor
How do your executives interpret their role today?
management, which is beginning to establish itself in
more and more companies. In every fifth company, the
true
rather applies
does not apply
rather does not apply
managers are consistently working at the point of value
creation. If you add in the number of companies that are
at least rudimentary trying to do this, three out of four
companies are already on the right track. In two out of
Our managers act
mostly targeted at the point of
20%
57%
23%
value creation
three companies, managers also see themselves as
coaches and mentors for their employees. Fixed
feedback routines and exemplifying the model of
continuous improvement are already common practice in
Our managers
see themselves as coaches and
15%
48%
35%
2%
mentors for their employees
more than 70 percent of all companies surveyed.
Our executives have
33%
fixed feedback routines with
41%
20%
6%
their employees
Our managers live
However: In more than half of the companies (53
percent) the managers still enjoy the role of the firefighter
who prefers to solve all problems quickly instead of
empowering his employees to solve problems.
the concept of continuous
23%
48%
27%
2%
improvement
Our executives are
of their self-image
dear firefighter
as fire protection officer
13%
40%
- if in doubt, you can solve
problems yourself quickly
n = 115
5
http://www.cio.de/a/wie-industrie-4-0-den-fuehrungsstil-veraendert,2960778
6th
http://www.cio.de/a/wie-industrie-4-0-den-fuehrungsstil -changed, 2960778
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
40%
7%
. 10
Industry 4.0 changes corporate and leadership models
In order to bring about this change in mentality, top
What measures has your company already introduced in terms of leadership in the context of Industry
management is required. However, more than two thirds
4.0?
(71 percent) of all companies have not yet started to
(1 = not yet started, 5 = advanced)
adapt their corporate principles to future requirements.
1
2
3
5
4th
Even at companies with Industry 4.0 experience
Company mission statement on the
58%
future requirements
54 percent still see an urgent need for action in-house.
The 4.0 pioneers are a little further on in another point.
More than half of them are already adapting their
13%
15%
11%
3%
to adjust
Leadership guidelines on the
54%
future requirements
18%
21%
5% 2%
to adjust
selection of managers, at least in part, to the new
requirements. For companies without
Only 35 percent do this with 4.0 experiences. Also with
Executive selection
the future requirements
45%
20%
24%
9%
2%
45%
21%
22%
10%
2%
adapt to
regard to the development of managers and an
adjustment of the target agreements, something happens
Leadership development
as soon as a company transforms into a smart factory. If
adapt to future requirements
a total of seven out of ten companies still have deficits in
these areas, companies with initial operational 4.0
experience are clearly better positioned here.
Target agreements of the management
44%
Adapt the management forces to
26%
16%
12%
2%
the future requirements
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
n = 117
A lack of norms and standards slows down Industry 4.0
In addition to the internal management issue, the lack of
What are the possible obstacles on the way to Industry 4.0 in Germany?
norms and standards is currently the biggest obstacle on
Germany's path to becoming an Industry 4.0 nation.
no barrier
minor obstacle
medium obstacle
obstacle
very big obstacle
41%
17%
More than half of the respondents (51 percent) see this
problem. As part of the digitization of industrial
Insufficient broadband
production, production parts are equipped with sensors
conclusions
and chips and can thus send or receive information to
Missing norms and
extent the language that chips and machines use to
Standards
incomplete.
27%
6%
4%
machines or suppliers. The standards are to a certain
communicate. 7th If it is missing, the smart factory remains
9%
17%
Lack of capital for
28%
34%
20%
Financing the investment 9%
17%
39%
23%
9%
4%
20%
Missing employees
Legal uncertainties with regard to patents and data
protection were named as the second biggest obstacle
Too little know-how
in politics
10%
37%
23%
34%
32%
23%
5%
12%
with 43 percent. A lack of employees (39 percent) and
too little political know-how (35 percent) also hamper
Too little willingness to implement
development.
in politics
Legal uncertainties
(e.g. regarding patent and data
protection)
n = 137
7th
heise.de: "Industry 4.0: Bosch wants to drive standards forward" on February 15, 2015:
http://www.heise.de/newsticker/meldung/Industrie4-0-Bosch-will-Standards-vorantreiben-2549645.html
13%
28%
26%
23%
10%
3%
17%
37%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
33%
10%
. 11
Above all, politics should push broadband expansion
The demands on politics arise directly from the major
What do you expect from politics in terms of Industry 4.0?
obstacles to the development of Industry 4.0. Four out of
Please arrange the options in an order ( 1 = highest priority)
ten respondents urge accelerated broadband expansion
as the highest priority. This is followed by the creation of
1
2
3
5
4th
legal certainty, closely followed by the creation of
standards. While one in ten respondents warned against
overregulation, German industry has apparently given up
41%
Force broadband expansion
16%
13%
14%
16%
hope that politics will really speak with one voice in the
matter of Industry 4.0 in the future.
Legal security
24%
produce
standardization
22%
drive forward
Overregulation
avoid
29%
11%
27%
23%
22%
20%
20%
12%
20%
27%
8th%
15%
20%
2%
Clear responsibilities
produce
n = 133
10%
20%
27%
41%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
CONCLUSION
The results of this study show that a lot has changed in the past nine
months since the first survey of the “German Industry 4.0 Index”. More
and more German companies are leaving their observation posts and
are making a very concrete move towards the intelligent factory. In doing
so, they apply proven lean principles that create the basis for being able
to follow this path successfully. At the same time, they create the right
environment by readjusting the role of their managers.
your partner on the way to Top performance.
EDITOR
CONTACT PERSON
CONTACT PERSON FOR MEDIA:
STAUFEN.AG
Dr. Ulrich Frenzel
Consulting, academy, participation
Director Business Unit
Stephanie Acker
Marketing Manager
Blumenstrasse 5
u.frenzel@staufen.ag
Tel: 07024 8056 0
marketing@staufen.ag
Tel: 07024 8056 152
D-73257 Koengen
+ 49 7024 8056-0
+ 49 7024 8056-111
www.staufen.ag
kontakt@staufen.ag