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BUSINESS IN THE AGE OF EXPERIENCE

Thursday, November 10Levis Stadium, Santa Clara, CA North America

Hitachi, Ltd. 2016. All rights reserved. Hitachi, Ltd. 2016. All rights reserved.

Global Collaborative Creation:Inspiring Innovation across our FactoriesMichelle MertensDirector of Information Technology Hitachi Computer Products (America), Inc. November 10, 2016

Rev.3.1031

Hitachi, Ltd. 2016. All rights reserved.

Who we are

What we do

What we did

What was the ROI

Agenda

Hitachi, Ltd. 2016. All rights reserved.

Engage in close dialogue in order to understand the challenges we each face

Pooling resources, working together towards a common goal

Making what we do more meaningful and beneficial

Utilize teamwork and our extensive experience

Collaborative Creation

Accelerating our Social Innovation Business through Collaborative Creation

Toshiaki Higashihara, President & CEO

Hitachi, Ltd. 2016. All rights reserved.

Who are we?

Power systems

Automotive Systems

Other (Logistics &

Other services)

Smart Life & Ecofriendly

Systems

Information & Telecommunication Systems

Social Infrastructure & Industrial Systems

Construction Machinery

Financial Services

Electronics Systems & Equipment

High Functional Materials & Components

TotalFY 2014

15

117

4

14

9

711 3 19

Hitachi Ltd Business Units

Graph1

19

4

15

11

7

14

9

7

11

3

Sheet1

19

4

15

11

7

14

9

7

11

3

Hitachi, Ltd. 2016. All rights reserved.

Hitachi Virtual Storage Platform

Hitachi Unified Storage

Hitachi Unified Storage VM

Hitachi Blade Servers

What we do

PCBA: Printed Circuit Board Assembly

3 Factories (RAID/Servers): Asia, Europe, USA

Final Assy

Logistics(HDS)

Final Test Config to OrderReceivingInspectionPCBA

SBB

SBBSBB

SBB

SBB

SBB

SBB

SBB

SBB

SBB

JAPANFRANCE -USA -

Japan & Singapore

Norman, OK USANetherlands

Hitachi, Ltd. 2016. All rights reserved.

Supply Chain Overview

French Manufacturing Site

US Manufacturing SiteJapan

Manufacturing Site

R&D

DistributionHDS Netherlands

DistributionHDS Shanghai

Japan Domestic Sales

Oversea Sales HDS HQ

DistributionHDS Oklahoma

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

DistributionHDS Singapore

Manufacturing Distribution

Asia Pacific

Engineering/R&D

Americas

Europe/Africa

Norman, Oklahoma US

Orleans, France EU

Kanagawa, JapanHitachi Information & Telecommunication Manufacturing

Hitachi Computer Products (America), Inc.

Hitachi Computer Products (Europe) S.A.S.

IT Platform Products Division

Hitachi, Ltd. 2016. All rights reserved.

25+ Years as Autonomous Factories

GlobalizationThe world is smaller

Changing Industry & Products

Driving the Need for Change

Hitachi, Ltd. 2016. All rights reserved.

Move from Standalone Factories to Standardized Global Manufacturing Processes

Move from Using Paper and Excel Spreadsheets to Streamlined Global Inventory Management

Move from Local to Global Visibility to ImproveQuality Control

Move from Local to Globally Aligned Quality and Statistical Reporting

Move from Independent Process changes to GlobalCollaborative Changes in Order to Support Simultaneous New Product Introduction

Meeting Our Manufacturing Challenges

Hitachi, Ltd. 2016. All rights reserved.

Orleans, France Norman, OK USAOdawara Kanagawa Yokohama

Engagement of Business Process Owners

Local study to understand the food chain

Global workshops to determine best practice

Process driven not system constrained

How We Did It

Steering CommitteeExecutive member from each site JP/US/FR

Project Manager

Business Process Owners (BPO)

Global Center of Operational Excellence (COE)Project Manager and Technical Lead

from each site JP/US/FR

I/T Developer Pool JP/US/FR

Dassault System Technical Support

JP/US/FR

Hitachi, Ltd. 2016. All rights reserved.

Enter Dassault Systemes

DELMIA AprisoManufacturing Operations Management

Make to Promise Industry Solution Experience

Hitachi, Ltd. 2016. All rights reserved.

DELMIA Apriso 2016 Application Portfolio Utilized

QUALITY WAREHOUSE MAINTENANCEPRODUCTION LABOR

ROBOTICS FABRICATIONPROCESS PLANNING ERGONOMICS

INTELLIGENCE CENTER OF EXCELLENCE TRACEABILITYSCHEDULING

COLLABORATIVE MANUFACTURING

OPERATE & MEASURE

OPTIMIZE & PREDICT

BUILD & SIMULATE

Hitachi, Ltd. 2016. All rights reserved.

Focused on user experience and overall efficiencies

Gained stronger support for global development pool

Standardized core with flexibility to support unique local requirements

Partnering with Dassault Systemes

Hitachi, Ltd. 2016. All rights reserved.

The Result? Global Collaboration

Global Cross Functional Team

Hitachi, Ltd. 2016. All rights reserved.

Overview of GMES Project(Global Manufacturing Execution System)

Center of Operational Excellence (COE)

HICAM Server HICEF Server

LOCAL TEST

ITPD Server HICAM Server HICEF Server

LOCAL PRODUCTION

ITPD Server

HICAM Server HICEF Server

LOCAL DEVELOPMENT

ITPD Server

COE Global Server

GLOBAL DEVELOPMENT (GMES)

Exception Only

Build Configuration

Build Configuration Troubleshoot Deploy

Independent Systems One Global System

Project Objectives: Improved Inventory Management Global & Local Semi-Finished Goods

visibility Proactive Quality Control & visibility Global metrics supported by

standardized processes Aligned, consistent quality

and statistical reporting Collaborative process design

and system development

Project Goal: Global Visibility across the Supply Chain

Provide consistent integrated visibility

Apriso Center of Operational Excellence (COE)

GlobalCore

LocalizedUSLocalized

JP

LocalizedFR

DatasweepJapanAsia

Proprietary

AprisoOklahomaAmericas

France EU

High Level Schedule (November 2016)

Hitachi, Ltd. 2016. All rights reserved.

Global Synergy at a cross-functional level Reduced overhead of new product

introductions Enhanced visibility between the shop floor,

management and global stakeholders Achieved a significant reduction in

operations overhead for data collection Simplified implementations for future

functions and sites

The ROI?

Message from Japan site General ManagerThis improvement unlocked a business transformation, difficult to itemize when evaluating ROI of MES but a significant benefit.

Hitachi, Ltd. 2016. All rights reserved.

We will make innovation that make people's dreams come true through IT,through control technology, and through social infrastructure systems.

Hitachi, Ltd. 2016. All rights reserved. Hitachi, Ltd. 2016. All rights reserved.

Thank You

Thursday, November 10Levis Stadium, Santa Clara, CAGlobal Collaborative Creation:Inspiring Innovation across our FactoriesAgendaCollaborative CreationWho are we?What we doSupply Chain OverviewDriving the Need for ChangeMeeting Our Manufacturing ChallengesHow We Did ItEnter Dassault Systemes DELMIA Apriso 2016 Application Portfolio UtilizedPartnering with Dassault SystemesThe Result? Global CollaborationOverview of GMES Project(Global Manufacturing Execution System)The ROI?Slide Number 17Thank YouThursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Forum Energy TechnologiesCompany OverviewExample ProductsGoing up And coming downThe Journey StartsCurrent State: Consolidating Manufacturing & ReportingFuture State: Building New Business ModelsThursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Slide Number 32Slide Number 33A high tech application to a low tech industryA high tech application to a low tech industryA high tech application to a low tech industryA high tech application to a low tech industryMass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Mass Timber Technology: The worlds future building material?Data driven decision making - ConstructionData driven decision making - ConstructionData driven decision making - ConstructionData driven decision making - ConstructionCloud optimized workflow for facade manufacturing We believe inThursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Thursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Moving From Products and Services to Platforms and Experiences:Imperatives, Challenges, and OpportunitiesAgenda Marc StrohleinAdjunct Research AdvisorIDC Executive Programmstrohlein@idc-rn.comThursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Thursday, November 10Levis Stadium, Santa Clara, CA3DEXPERIENCE FORUM 2016Thursday, November 10Levis Stadium, Santa Clara, CA