3. Industry 4.0 Examples
• Germany’s Energy Sector ꟷ smart grids allow shift from
consumption-oriented generation to generation-optimized
consumption
– RESULT ꟷ fluctuating renewable energy power generation &
consumption is optimally managed
• Michelin ꟷ Connectivity & smart devices enabled them to
completely shift business to providing mobility & safety of
tires as a service rather than focus on selling tires
– RESULT ꟷ Sensors & intelligence embedded in tires monitor
performance; a network of support ensures problems are addressed
SLIDE 3
4. Trends to Watch … They Could
Impact Your Company’s Future
• Additive
Manufacturing
• Collaborative Robotics
• Internet of Things
• Distributed
Manufacturing
SLIDE 4
5. Manufacturing Trends
Additive Manufacturing (AM)
• TODAY: Currently used for prototypes, tooling,
fixtures & jigs (non-critical parts) in aerospace, medical
device, automotive & consumer sectors
– Boeing uses AM to produce over 200 PN for 10 types of aircraft
– GE invested $39MM in CATA; std process in each business unit
– Alcoa investing $60MM to develop advanced AM materials &
processes
• WHAT TO EXPECT LONG-TERM:
– Expect lines between additive & conventional manufacturing to blur
– As materials portfolio expands and standards are introduced, AM
will be approved for critical as well as non-critical parts
SLIDE 5
6. Manufacturing Trends
Additive Manufacturing
• NEXT FIVE YEARS:
– Expect expanded range of materials, improved reproducibility,
introduction of quality and machining standards
– Important next stage is 3D printing of integrated electronic
components, such as circuit boards
– 3D printing-as-a-service model as well as a leasing model
• WHAT SHOULD YOU DO TO PREPARE
– Utilize 3D printing for prototyping to spur innovation & reduce time
to market
– Start small. Really look at your application. Understand the
characteristics that help determine which ones could benefit from
AM. Contract 3D prints on several machines to narrow process /
equip selection.
– Purchase something cheap 1st to learn basics .. how the technology
works … how support materials work. Then select a 3d printer.
SLIDE 6
7. Manufacturing Trends
Collaborative Robotics “Cobots”
• TODAY: Initially less intricate tasks like lifting or welding … now
robots do more complex jobs like working on engines
– Starting to see collaborative robots to complement rather than replace workers
– Automotive sector has invested heavily in collaborative robotics
• WHAT TO EXPECT LONG-TERM: Smarter, more mobile, more
adaptable, easier to program
– Cobot applications: machine tending; handling heavy payloads currently
requiring lift devices; mechanical assembly; palletizing / packaging / handling
– Major changes on factory floor & global competitive landscape
• China planning robot revolution by automating work done by millions of
low-paid workers.
– Accelerated time-to-market, improved
production accuracy, reduced rework
– Expect more autonomous vehicles on the
road & in the warehouse
SLIDE 7
8. Manufacturing Trends
Collaborative Robotics
• NEXT FIVE YEARS:
– Industry expected to grow 10x by 2020 to reach $1B
– Robots and humans working side by side will become common
• WHAT SHOULD YOU DO TO PREPARE
– Identify potential applications
– Describe in sequence how the task is currently being performed;
take particular note of metrics such as :
• Changeover Throughput Environment
– What could be improved on the cell
• Production cost; Quality; Ergonomics
• Other key metrics you are working to improve in your plant
SLIDE 8
9. Manufacturing Trends
Internet of Things
• TODAY: Apps making mobile devices multifunctional so
they can operate equipment, act as scanner, etc.
– GE’s wind turbines - 20,000 sensors produce 400 data points/sec; ongoing
analysis allows GE & customers to optimize turbine performance &
proactively make decisions
• WHAT TO EXPECT LONG-TERM:
– Production will become more networked until everything is interlinked with
everything else; machines, sensors, computers & humans are linked
enabling new levels of info monitoring, collection, processing & analysis
SLIDE 9
10. Manufacturing Trends
Internet of Things
• NEXT FIVE YEARS:
– IoT is like any new, emerging
technology
• Ex: Cloud computing - The
Open Group set key
considerations in 2019 for
how to build & measure ROI
for cloud initiatives
• This gave businesses a set of
stds & benchmarks to define
success and measure results
of investing in “the cloud”
• 2016, cloud solutions are the
norm
– Expect IoT to develop the
same way; GE already working
on transforming all of their
products into data centers
$170
$206
$225
Consumer IoT
Enterprise Cloud
Computing
Industrial Internet
Annual Revenue by 2020
shown in $Billion
SLIDE 10
Industrial Internet Gold Rush
By 2020, GE expects the industrial
Internet market to be far more lucrative
than consumer IoT
11. Manufacturing Trends
Internet of Things
• WHAT SHOULD YOU DO TO PREPARE
– Determine what data is most valuable to collect; Gauge efficacy of
analytical structures that will be used to assess data
– Data security - big concern within Industry 4.0 to guarantee safe
production
• Establish appropriate IT security mechanisms for the production
environment as part of a new enterprise security plan
– If you’re developing smart products, start small & work on projects
that are “quick wins” - will generate value quickly without significant
investment
• Start small with a hand-built prototype, make a dozen for a few
strategic customers - Prove value in small ways
SLIDE 11
12. Manufacturing Trends
Distributed Manufacturing
• TODAY: This week, UPS announced creation a fully
distributed mfg platform, connecting 60 UPS stores, each
with mid-level 3D printers, onto an advanced production
platform built & run by parts mfger, Fast Radius
• WHAT TO EXPECT LONG-TERM:
– The UPS story is first instance of “Uberization of mfg”, i.e. seamless
connection of demand with distributed production capacity
– Look for production partners around the world on this platform to
expand rapidly, mirroring UPS’ extensive hub and spoke distribution
network - Implications for global manufacturing are potentially as
disruptive as when Amazon launched its Cloud Hosting business
– Currently unknown whether distributed manufacturing will become
mainstream or remain a niche activity
SLIDE 12
13. Manufacturing Trends
Distributed Manufacturing
• NEXT FIVE YEARS: Currently it’s too early to predict
• WHAT SHOULD YOU DO TO PREPARE
– Stay abreast of what’s going on in your industry and supply chains
SLIDE 13