MASTER'S THESIS - DiVA 1021654/ MASTER'S THESIS Realization of Industry 4.0 through RFID

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  • MASTER'S THESIS

    Realization of Industry 4.0 through RFID An Implementation in Internal Logistics at Bosch Rexroth Mellansel

    Ronny Higberg Goran Larsson

    2016

    Master of Science in Engineering Technology Industrial Design Engineering

    Luleå University of Technology Department of Business Administration, Technology and Social Sciences

  • Master of Science in Industrial Design Engineering

    Department of Business Administration, Technology and Social Sciences

    Luleå University of Technology

    Realization of Industry 4.0 through RFID An Implementation in Internal Logistics at Bosch Rexroth Mellansel

    Ronny Higberg

    Goran Larsson

    2016

    Examiner: Jan Johansson

    Supervisor: Anna Öhrwall Rönnbäck

  • Master of Science Thesis

    Realization of Industry 4.0 through RFID

    An Implementation in Internal Logistics at Bosch Rexroth Mellansel

    Master of Science Thesis in Industrial Design Engineering- Production design and development

    © Ronny Higberg & Goran Larsson

    Published and distributed by

    Luleå University of Technology

    SE-971 87 Luleå, Sweden

    Telephone: + 46 (0) 920 49 00 00

    Printed in Luleå Sweden by

    Luleå University of Technology Reproservice

    Luleå, 2016

  • Acknowledgement Although only our names appear on the cover on this thesis, a great many people have contributed to its

    production. As a sign of acknowledgement, we would like to extend our gratitude to these individuals

    that have helped create this thesis.

    We would like to thank John Reimers at the Bosch Center of competence, for his guidance and feedback

    through technical issues and hardware discussion. He has helped us a great deal in providing support

    related to the implementation and has provided us with relevant contacts, and Bosch standards that

    otherwise may have gone over our heads.

    We are also very grateful to all the personnel at the shop floor who have contributed a great deal to our

    understanding of the investigated processes. Their insightful comments and constructive criticism

    throughout our research have helped us discover the details and focus our ideas. The interviews,

    observations, workshops and discussions we have had with all these individuals have not only provided

    us with important information but also great insights on how complex a production environment truly

    is.

    We would like to acknowledge the assembly group manager Carolina Sondell, who has provided us with

    supervision on who to talk with and has set us up with the correct individuals whenever we have needed

    it.

    We would like to acknowledge Dr. Juergen Lieser for his role as our supervisor for the second part of

    our thesis. He has shown his resourcefulness and efficiency at getting things done whenever we have

    needed help.

    We would also like to acknowledge Anders Palm for his trust in us and for providing us with a great

    deal of autonomy to explore on our own during our stay in Mellansel.

    We would lastly like to express gratitude to our fellow students and teachers at the Industrial Design

    Engineering Programme. They have been a great part of our development for the last 5 years and have

    shown us the importance of combining creativity with knowledge.

    Luleå 28th of May, 2016

    Ronny Higberg and Goran Larsson

  • Abstract With increasing global competition between industries comes a growth in the demand for increased

    productivity, output and service quality from transnational companies. This creates a need for

    organizations that are versatile and have the correct tools for developing more efficient processes,

    reducing costs and increasing productivity within the manufacturing industry. This new phase in the age

    of manufacturing industries is on its way to meet this changing environment and it is commonly referred

    to as Industry 4.0, the next big industrial revolution. This revolution refers to the introduction of Internet

    in industries, leading to the establishment of smart factories. In the smart factory, functions such as

    logistics, manufacturing and product development are integrated in Cyber-physical systems.

    One way to gain the upper hand among the global competition is to gain control over the internal logistics

    chain. Technologies like Radio Frequency Identification (RFID) can be used to create smart factories

    where a product sends information on its whereabouts in real-time. This thesis studies how RFID as a

    means to achieve Industry 4.0 can be reached with an implementation in internal logistics at Bosch

    Rexroth in Mellansel. This thesis aims to contribute with a deeper understanding of how a RFID

    implementation process is designed and what benefits it can provide a manufacturing organization. This

    study also investigates how a smarter industry in terms of Internet of Things and Industry 4.0 can be

    achieved by implementing RFID in internal logistics.

    The master thesis is founded on a literature review and empirical results achieved through a case study.

    The case study consists of a current state investigation, situation analysis, system design and

    implementation, and ends with an evaluation. The thesis ends with several conclusions gained from the

    insights of the empirical and theoretical studies.

    This thesis presents a framework that outlines important steps to be performed in the implementation of

    RFID. Key factors to achieve a successful implementation are also elaborated on. Moreover, a

    compilation of the benefits that can be achieved by using RFID in internal logistics are presented. As a

    final conclusion, a presentation is made of the benefits of Industry 4.0 that Bosch Rexroth in Mellansel

    can achieve through an implementation of RFID.

    KEYWORDS: Bosch Rexroth, Cyber-Physical system, CPS, i4.0, Implementation, Industry 4.0, Internet of Things, IoT, Lead time, Logistics, Manufacturing, Production, Radio Frequency

    Identification, RFID, Smart factory.

  • Sammanfattning I en alltmer hårdnande global konkurrens mellan industrier tilltar kravet på ökad produktivitet,

    avkastning och kvalitet från internationella företag. Detta skapar ett behov av flexibla organisationer

    som har rätt verktyg för att utveckla mer effektiva processer, minska kostnader och öka produktiviteten

    inom tillverkande industrier. En ny våg inom industrin, omnämnd som nästa stora industriella revolution,

    Industry 4.0, är på väg för att möta dessa nya utmaningar. Denna revolution syftar på sammankopplingen

    av Internet med industrimiljöer, vilket leder till skapandet av smarta fabriker. I den smarta fabriken

    sammankopplas funktioner inom logistik, tillverkning och produktutveckling i Cyber-fysiska system.

    Ett sätt att skaffa sig ett övertag i en hårdnande internationell konkurrens är att få kontroll över det interna

    värdeflödet. Tekniker som Radiofrekvensidentifikation (RFID) kan användas för att skapa smarta

    fabriker där en produkt kan sända information om sin position i realtid. Detta examensarbete studerar

    hur RFID kan användas för att uppnå Industry 4.0 genom en implementering i intern logistik på Bosch

    Rexroth i Mellansel. Detta examensarbete syftar till att bidra med en djupare förståelse för hur en

    implementering av RFID bör utformas och vad det kan bidra med i en tillverkande industri. Detta

    examensarbete undersöker också hur en smartare industri kan uppnås med avseende på Internet of

    Things och Industry 4.0 genom en fallstudie på en implementering av RFID i intern logistik.

    Detta examensarbete är baserat på en litteraturstudie och empiriska resultat från fallstudien. Insikterna

    från denna forskningsansats har använts för att svara på forskningsfrågorna i avhandlingen. Fallstudien

    består av en kartläggning av nuläget, analys, systemdesign och implementering, och slutar med en

    utvärdering av resultatet. Denna avhandling presenterar ett ramverk som beskriver stegen en

    implementering av RFID bör genomgå. Faktorer för att uppnå en lyckad implementering diskuteras

    också vidare. En sammanställning presenteras sedan över de fördelar en organisation kan uppnå genom

    en implementering av RFID i intern logistik. Slutligen presenteras de fördelar Bosch Rexroth i Mellansel

    kan uppnå inom Industry 4.0 genom en implementering av RFID.

    NYCKELORD: Bosch Rexroth, Cyber-fysiska system, CPS, i4.0, Implementering, Industri 4.0, Internet of Things, IoT, Ledtid, Logistik, Produktion, RFID, Smart fabrik, Tillverkning.

  • Abbreviations and Explanations

    Expression Explanation

    Crosstalk

    Middleware between hardware and

    software for the RFID system. Converts

    the RFID signal to a format suitable for

    other systems.

    nofilis Supplier of RFID equipment and

    software.

    Abbreviation Explanation

    AGV Automated Guided Vehicle

    AX Microsoft Dynamics AX

    BPS Bosch Production System

    CoC Robert Bosch’s

    Center of Competence

    CPS Cyber