Enterprise World 2014 - Manufacturing Industry Breakout Session

Digital Disruption Across Tomorrow’s

Manufacturing Supply Chains

Mark Morley, Industry Marketing Director

Copyright © OpenText Corporation. All rights reserved.#OTEW2014

Manufacturing 2.0, Rebooting Today’s

Global Supply Chains…

Global recession, wage strikes, natural disasters and increasing

regulatory compliance are leading to manufacturers having to

restructure their global supply chains


Today’s Manufacturing Industry

North America, UK, Germany, China and

Japan lead global figures for production

output

Manufacturers continue to globalize

production facilities and de-centralize

design and engineering departments

Automotive and high tech industries are

increasingly consumer-driven, which is

leading to many new supply chain

transformation projects

New technologies such as the Internet of

Things will drive the ‘4th industrial

revolution’


Today’s Manufacturing Value Chain Distributed Operations in Multiple Countries

Near-Shoring

2010 Onwards

China Globalization

2014 Onwards

Regional Marketing & Sales

Manufacturing

Distribution

Sales

Manufacturing

Research & Design

Manufacturing

Shared Services

Sales Distribution

Global HQ

Sales Shared

Services

Sales

‘BRIC’ Markets Expansion

2000 Onwards(BRIC = Brazil, Russia, India, China)

‘MINT’ Markets Expansion

2014 Onwards(MINT = Mexico, Indonesia, Nigeria, Turkey)


From BRICs to MINTs

After significant growth,

BRICs starting to

experience difficult market

conditions

Inward investment to the

BRICs is reducing due to

an increasing interest to

invest in new low cost

markets

Fastest growing new

markets collectively known

as the MINTs


Introducing the MINT Countries

MINT is term coined

by former Goldman

Sachs economist, Jim

O’Neill, who also

introduced the BRIC

term ten years ago

Analysts estimate that

the MINT countries

could enjoy similar

double digit growth as

China saw between

2003 and 2008

Evolution of the Digital

Manufacturing Business


Traditional Manufacturing Value Chain

Information resided in multiple departmental silos

Difficult to find and navigate through information

relating to a particular product

Lack of inter-departmental information exchange

and collaboration

Business expansion led to information replication

and multiple instances of key business systems

such as ERP

Product design department traditionally led

process automation initiatives and IT adoption

Product Design & Engineering

Manufacturing

Supply Chain Management

Marketing, Sales & Service

Traditional Value

Chain

Source: Cap Gemini Consulting Analysis


Level

of

Dig

ital

Perv

as

ive

nes

s

High

Low

DesignProduction

DesignProductionPurchasing

Marketing

DesignProduction

Purchasing

Field Support

Logistics

Marketing

Design

Production

Purchasing

Sales

Field Support

Logistics

Marketing

Design

Production

Purchasing

1980 - 1990 1990 - 2000 2010 - 2020

Design & Production Automation

Computer Aided Design & Manufacture

Digital Mockups & Collaborative Design

Collaborative PLM & Cloud Connected Digital

Business

1970 1980 1990 2000 2010 2020

Evolution of the Digital


Increased digitization of information over the decades has allowed more departments across the extended enterprise to access & utilise this information

Electronic Product Definition


Digital Information Powers the

Integrated Value Chain

The Integrated Value Chain relies

on digital information to automate

and accelerate internal operations

A centralized digital information

hub:

Drives product innovation

Improves production efficiencies

Provides global agility

Increases customer satisfaction

Source: Cap Gemini Consulting Analysis

“Digital Transformation is not a quick-fix solution within rigid manufacturing processes and resources, but a long-term commitment and imperative”

Digital Product

Design

Digital Shop

Floor

Digital

Customization

Digital

Supply Chain


Enterprise Information Management (EIM)

Information

governance,

security and a

single source of

truth

Enterprise

Content

Management

Process velocity,

flexibility, quality,

efficiency

Business

Process

Management

Rich experiences

across channels

and devices,

personalized to

the user

Customer

Experience

Management

Secure transfer of

information within

and between

organizations

Information

Exchange

Find the right

information at the

right time

Discovery


How EIM Supports the Lifecycle of a

Manufactured Product

Market / Customer Requirements

A


B

PrototypeTesting & Compliance

C

Procurement / Supplier Onboarding

D

Manufacturing Engineering

E

ProductProduction

F

ProductQA & Certification

G

Plant Maintenance & Asset Management

H

Ship to Distributor or Retail Network

I

Online / Store Customer Experience

J

Aftermarket Service & Support

K

Recalls & Warranty Repairs

L


Managing Information Across the

Lifecycle of a Manufactured Product

Market/Customer Requirements

Product marketing department to undertake

information gathering about market or customer specific requirements to

understand specifications for new product/equipment

design


Any information associated with the design of a

product, eg CAD files or specifications will need to

be stored via a LOTAR initiative, may also need to be exchanged internally or externally with contractors

Prototype Testing & Compliance

All product test data including materials testing,

stress analysis results, performance tests and

environmental test information should be

retained and archived as part of LOTAR initiative





Suppliers will need to be identified & onboarded, procurement contracts drawn up and archived.

B2B solutions will need to be deployed and supplier

contact information centrally managed

Product Production

Assembly instructions, bill of materials, video

tutorials, essentially any information used in the

assembly of a product or piece of equipment could be made available on the

shop floor


Product related engineering information could be used

to help design jigs and fixtures or develop tool paths for machining of

castings. Plant maintenance schedules will need to be

drawn up



All equipment on the shop floor will need to be

maintained and tested to a high standard, for example robots, milling machines,

lathes and any other equipment used to

manufacture products




Each product needs to be tested to ensure

performance compliance and all results need to be

archived for future use, QA & performance certificates

will need to be archived


Logistics and Shipping information needs to be sent to OEM or Service

Centre. Contact & contract information for logistics

providers needs to be maintained and archived in

a central location



Aftermarket service centres and remote field service

engineers need access to all information associated with

a product or piece of equipment, eg drawings, 3D CAD Models, dis-assembly

instructions and videos




Customer experience needs to be consistent across main website and any

support related sites as well as across mobile devices. All downloadable media

needs to be presented and managed effectively

Recall & Warranty Repairs

Any future product recall process or warranty repair

situation will need to be managed effectively. Any safety related issues will

require getting access to all archived information for

fault traceability purposes


How EIM Supports the Lifecycle of a

Manufactured ProductMarket / Customer

Requirements

A


B


C


D


E

ProductProduction

F


G


H


I


J


K


L

Enterprise Content Management Customer Experience Management Business Process Management Information Exchange Discovery Appworks


Managing Digital Information Across a

Manufacturing BusinessMarket / Customer

Requirements

A


B


C


D


E

ProductProduction

F


G


H


I


J


K


L



Managing Digital Information –Product Design & Engineering

Any information associated with the design of a product will need to be centrally managed

Government regulations may require CAD data to be archived under a Long Term Archival and Retrieval (LOTAR) policy

Design information may need to be exchanged with external design partners and suppliers

Compliments an existing PLM archival system

• 3D CAD/CAM Models• 3D Printing Files• 3D Visualization Models• 2D Drawings• Production Information• Product Bill of Materials• Stress Analysis Test Reports• Environmental Test Reports• Materials Testing Reports• Materials Specifications• Product Specifications• Videos/Animations/Renderings


Managing Digital Information –Procurement / Supplier Onboarding

Suppliers will need to be identified, on-boarded and managed on an ongoing basis

Contract and Contact information for every supplier will need to be centrally managed

Each supplier will need to be contacted to identify existing B2B and ICT capabilities

Appropriate B2B technologies, either software or web-based portals, will need to be setup

Adherence to regulatory compliance initiatives

• Supplier Contract Information• Supplier Contact Information• Protocol/Document Mediation• B2B Connectivity Testing• B2B Document Mapping• Implementing Appropriate B2B

Software/Web Portal Solutions• Backend Systems Integration• Adhere to GRC Initiatives, e.g

Electronic Invoicing• Community Management• 24/7 Helpdesk Support


Managing Digital Information –Plant / Asset Management

All production-related equipment will need to be proactively maintained, including assembly & handling equipment, machining centres and utilities equipment

Maintenance teams will normally follow some form of standard process or procedure

Maintenance teams will need mobile access to a centralized repository of information for all plant equipment

• Maintenance & Test Procedures• Equipment Monitoring• Assembly & Disassembly Videos• 3D Plant Design Models• 3D CAD Equipment Animations• 2D Equipment Drawings• 2D Utilities Diagrams• Equipment Test Procedures• Equipment Test Certificates• Sub-contractor Information• Regulatory & Compliance Info.


Managing Digital Information –Online / Store Customer Experience

OEMs need a fast and secure way to manage and exchange media files across retail networks

Any type of retailer, whether car, motorbike, consumer goods or high tech will need to exchange information with their HQ location

All aspects of the customer experience must be consistent across online and in-store platforms

Centralized access to customer-related information brings significant business benefits

• Product Brochures• Promotional Videos & Adverts• High Resolution Images• 3D Computer Graphic Animations• Product Training Videos• Technical Bulletins• Advertising Agency Collaboration• In Store Graphics/Designs/Layouts• Website Design & Management• Mobile Platforms & Social Media • Online Product Catalogues• Online Product Configurators


Managing Digital Information –Aftermarket Service & Support

Aftermarket service centres and remote field service engineers need access to all information associated with a product

Information must be accessible remotely via ruggedized mobile devices

Replacement parts may need to be ordered/despatched from central warehouse

Product repairs may be part of a recall or warranty related process

• Repair & Test Procedures• Assembly & Disassembly Videos• 3D Visualization Models• 2D Product Drawings• Product Specifications• Warranty & Recall Procedures• Regulatory & Compliance Info.• Product Test Certificates• Fault Diagnosis Routines• Spare Parts Ordering Portals• Technical Service Bulletins


Managing Digital Information Across a

Manufacturing BusinessMarket / Customer

Requirements

A


B


C


D


E

ProductProduction

F


G


H


I


J


K


L


The Future of the Digital



How will Information Technology Impact

Your Company in the Year 2020?


Data

Cloud

Mobile

Apps

Security

Social

Governance

SaaS

Disruptive Innovation

We are living in a time

of massive disruption

where information and

the way we use it is

changing the rules

of business

Information is at the

heart of the disruption


The Digital Age

Information drives innovation

and growth

Information leads to greater insight,

higher customer satisfaction,

accelerates time to market, helps to

open new opportunities, and

enables you to remain competitive

Information is a key strategycomponent for every organization


Gartner Technology Trends - 2015

By 2018, the total cost of

ownership for business

operations will be

reduced by 30 percent

through the adoption of

smart machines and

industrialized services.....

Gartner, October 2014

1. Computing Everywhere

2. The Internet of Things (IoT)

3. 3D Printing

4. Advanced, Pervasive, Invisible Analytics

5. Context Rich Systems

6. Smart Machines

7. Cloud/Client Architecture

8. Software Defined Infrastructure

9. Web Scale IT

10.Risk Based Security & Self Protection


Cloud Deployments in Manufacturing

Simplifies the deployment and management of global IT infrastructures

Allows manufacturers to quickly scale up or scale down production

Design information is now accessible by anyone across the enterprise

ERP B2B PLM


Today’s Manufacturing Operations are

Entering a Period of Significant…..

D

I

G

I

T

A

L

D I S R U P T I O N

New Sources of Unstructured Information Will Need Managing Across the Enterprise

4G Networks

Cloud

B

Y

O

C

Internet of ThingsW

I

F

IPaaS

5G Networks

Smart Grids

Mesh Networks

Big Data

Social Networks

Remote Monitoring

Analytics

Mobile Apps

NFC Payments

SAAS

S

E

C

U

R

I

T

Y T

E

L

E

M

A

T

I

C

S

Sensors

RFID

Smart Phones

Tablets

B

Y

O

D

Connected Devices

3D PrintingDrones

Wearable DevicesMass Storage

M2M

Robots


Tomorrow’s Supply Chains Will be Impacted

by a Nexus of Disruptive Technologies

Wearable

Devices

Devices, such as Google Glass, will

transform how digital information

is accessed & shared across the

enterprise allowing

3D

Printing

3D Printers will manufacture parts

on demand and contribute

towards the introduction of the

‘zero length’ supply chains

Drone

Logistics

Drone aircraft will transform the

delivery of parts/finished

goods to customers across short

distance logistics networks

Future EIM platforms will need to embrace these technologies….

Internet

of Things

Introduction of more connected IoT devices /equipment

will allow manufacturers to

develop more responsive supply

chain networks

Advanced

Robotics

Next generation advanced robotics will work side by side with human

operatives, helping to automate more

production processes

1. Wearable Devices


Devices, such as Google Glass, set to revolutionize

how employees interact with their work

environments

Many manual-focused jobs require hands to be free

at all times

Glass, for example, brings data-rich information to

the user in real-time

Wearable Devices


Wearable Devices – Warehouse Picking

OK Glass,Trace ShipmentLocate Part in WarehouseScan BarcodeContact 3PL Provider

2. 3D Printing


3D Printing

Technology entering the enterprise and general

consumer markets

Products can be made using a variety of materials

including metal

Likely to revolutionize production, as machine costs

come down

HP is evaluating market as an extension of their printer

business


Technology is not new, been around for over twenty

years, formerly rapid prototyping, stereolithography

Limited production area, restricts type of products

that can be made

Relies on having a 3D representation of a product,

either as a CAD model or a 3D scan based

representation

3D Printing


HP Sprout PC & 3D Printer – 29th October 2014


HP, a Leader in Multi-Colour 3D Printing


3D Printing Examples


Most Ambitious 3D Printing Project?


Introduction of Zero Length Supply Chains?

Original OEM Part

3D Printed Part

3D printing could potentially revolutionize the service

sector

Certain replacement parts could be printed instantly at a

service location

Combined with IoT, parts could be manufactured before

existing parts experience wear or stress failure

3. Advanced Robotics


Advanced Robotics

Google acquired 8 robotics companies in 2013, looking

to develop Android-based robotics operating system

One goal of robotics division is to help high tech

companies automate manual-based assembly

processes

Contract manufacturer Foxconn seen as perfect test

environment, however will Google robots be

assembling iPhones?


Foxconn Automation, Goal = 1M ‘Foxbots’


Foxconn Automation, the Reality


Say Hello to ‘Baxter’

4. Drone-based Logistics


Amazon Prime AIR

Amazon aims to offer a 30 minute delivery service via

fleet of drones

FAA is due to introduce regulations in 2015 for drone

operation/safety

Amazon likely to acquire drone manufacturing

companies, will then own part of their logistics

network


The Future of Expedited Shipments?


Rolls-Royce Drone Ships?

5. Internet of Things


The Internet of Things -What Exactly is it?

Internet of Things (IoT)

Internet of Everything (Cisco)

Industrial Internet (GE Software)

Industry 4.0 (Bosch)

Machine to Machine (M2M)

Connectivity Across the Internet

“Any machine or device connected (via

fixed wire or wireless communication) to

the internet & being able to transmit

information in one form or another”

IDC - 200Billion connected devices by 2020

Cisco - Estimates market size at $14.4Trillion


Digital Information is now Feeding the

Fourth Industrial Revolution

Industrie 4.0

Source: Bosch



Core IoT Building Blocks

Sensors

Dedicated

Processor

Internet /

Dedicated Network

Big Data

Storage

Analytics &

Reporting

Key Characteristics = Energy Efficient + Cost Effective+ Quality & Reliable + Secure

WiFi or 4G

Comms

Devices /

‘Things’


Home Automation

Nest provides an internet-enabled range of devices for home automation applications, this example shows a thermostat


Home Automation Communications

LG has developed a home hub to allow consumers to send text messages to remotely control household appliances


Utilities Infrastructures

Utilities companies in Barcelona, Spain have installed internet-enabled refuse bins to help identify whether bins are full or empty


Connected Vehicles

Tesla Motors offers one of the most advanced connected cars on the market today, the Model S sedan


Remote e-Health Monitoring

E-Health is expected to be a major beneficiary of IoT based devices, for example this e-Pill has a built-in high definition video camera


IoT Related ROI

Source: Cisco


How Will IoT Impact Global Supply Chains?

Exponential growth in data flow across future supply chains

IoT will impact future supply chains in many different ways:

Predictive

MaintenanceSelf diagnostics identify

failing components

resulting in automated

parts ordering

Pervasive

VisibilityEnd to end visibility of

shipments from point of

manufacture to point of

delivery

Proactive

ReplenishmentOptimization and

automated ordering of

inventory at the

ultimate point of sale


1. Pervasive Visibility

Business Case - Visibility of

shipments from the factory

to the point of delivery

Example - Bosch developed

a virtual supply chain based

on inputs from an extended

network of RFID readers at

both their factories and

across their global network

of 3PL providers


2. Proactive Replenishment

Business Case - Optimization

of inventory levels at the

ultimate point of sale

Example - SAP developed a

HANA based vending machine

which tracks consumption

trends, makes alternative

buying suggestions & places

automated orders for new

stock


3. Predictive Maintenance

Business Case - Self

diagnostics identify failing

components resulting in

automated parts order

Example - RAC automotive

association in the UK offers a

retrofit module that can help

identify problems with a car

and notify driver before they

get too serious


EDIFACT

XML

SWIFT

OFTP2

IDOCANSIAS3

Contract Mfg.

DistributorsCustomers

3PLs

Banks

Insurers

AS2

FTP

HTTPSSuppliers

B2B

HULFT

IDOCS

External Trading Partner Community

Managing Information Across Tomorrow’s

Digital Manufacturing Business

ERPPLM

Internal Enterprise Community

Procurement Production

Design

Marketing Sales

Service

HQ

EIM


B2B & Supply Chain Related Benefits

Supply chains will become even more responsive

due to the sheer number of connected devices

monitoring the end to end movement of shipments

Cross enterprise connectivity and collaboration will

significantly improve business process and overall

operational efficiencies

Introduction of more closed loop, intelligent B2B

platforms and supply chains

Significant investment in new cloud based solutions

will improve functionality and usability of next

generation supply chain platforms


Issues to Resolve

Address the inevitable security and privacy issues

relating to IoT networks (in-house and third party),

eg ensure virus protection for connected devices

Investment required to WiFi enable equipment,

deploy sensors, build out IP and cellular networks

Introduce appropriate global standards to support

future IoT related platforms, setting up relevant

industry bodies such as the Industrial Internet

Consortium (Cisco, GE, IBM, Intel, AT&T)

Avoid an IoT related ‘Dotcom’ style bubble of high

valuations on unproven companies or technologies


‘Facebook for Machines’In the Future Every Connected Device Could Have an Online Profile

Conclusions


Manufacturing 2020

Enterprise Information Management helps to

embrace digital disruption in order to Simplify,

Transform and Accelerate tomorrow’s Digital


Continued globalization will fuel the need for a simplified &

centralized digital information hub

Technology being introduced today is going to transform

tomorrow’s manufacturing operations

The Internet of Things is going to improve visibility across

supply chains, accelerating business decisions and allowing

companies to be more responsive to their customers


Finally…….

New IDC Manufacturing Study!

Survey undertaken across 270 companies in the High Tech, Automotive and CPG sectors

Survey responses from companies located in 8 leading manufacturing countries including South Korea, Japan and China

Report discusses how B2B integration can help companies drive superior supply chain performance Session INX 422 @ 13:55

on Wednesday


Review of IDC

Manufacturing

Study

Panasonic

Round Table

Conflict Minerals

Reporting

Michelin

Case Study

IDC Customer

Panel

Columbia

Case Study

Industry

Strategist

Meetings

Birds of a Feather

Breakfast

www.opentext.com/OTIndustryInsights

Thank You

Mark Morley

Email: [email protected]

Twitter: @markmorley

About Me: about.me/MarkMorley