Kai Salminen at Mindtrek 2016. Industry 4.0 – Open your mind to ”Robot Revolution” and related new Business Models. Smart System driven transformation for growth within EU, Japan and US and related Business Intelligence development for new cognitive factory and business models.

1. Industry 4.0 – Open your mind to ”RobotRevolution”
and relatednew Business Models
SmartSystemdriventransformationforgrowth
withinEU,JapanandUSandrelatedBusinessIntelligencedevelopmentfornewcognitive
factory andbusinessmodels«
MINDTREK 2016
Tue 18th
Kai Salminen.
Hermiagroup, New Factory
kai.salminen@hermiagroup.fi

2. IoT Event Workshop
Industry4.0-OpenYourMindto“RobotRevolution”andRelatedNewBusiness
15.15 Opening session : I4.0- is it revolution or evolution; Core ?
Teamwork : Is I4.0 change clear to your business
15.45 Break
16.00 How far is I4.0 now and who are doing and what; Reality ?
Teamwork : What are you and your competitors doing
16.30 What to do? How can we join I4.0 ; RoadMap ?
Teamwork: Do we need national, domain and company RoadMaps

3. Industry 4.0
1. Core; What is Industrie 4.0; Transformation, Growth
2. Reality; What are countries and industry doing
1. EU
Germany, Austria, Netherlands, Sweden, France, Finland…
2. Japan, South-Korea, China
3. US, Canada
3. RoadMap; Recommendations for creating domain specific
Cognitive and Smart Systems,

4. Kai Salminen ,
HermiaGroup,NewFactoryltd
INDUSTRY (>20 years)
• Lännen Engineering Ltd
• Finn Avitech Ltd
• Tampella Ltd
• Metso Ltd
• The Federation of Finnish
• Technology Industries
• Hermia Group New Factory
EU (>20 Years)
• Expert Evaluator
• Monitor
• Foresight
• EU projects
BSc Product Design
MSc Production Engineering
MSc Industrial Economics
Dr studies CPPS
RESEARCH (>10 years)
• TU Tampere

5. Hermia Group
• Innovatio Oy New Factory, Non profit support for companies
• Tamlink, partnering anf joint ventures

6. Industry 4.0
DirectoroftheAssociationofGermanEngineers(VDI),RalphAppel
Industry 4.0 & education 4.0 is an umbrella term; nobody yet really knows what
I4.0 as Cyber Physical System of systems will look like. One could also say that
Industry 4.0 is the first revolution that has been announced and prepared for
before it actually happened.
The dual engineering education model “Industry 4.0 & Education 4.0” helps
pushing (incremental) innovation in systems through and integrate to market
driven domain specific systems of systems solutions platforms.
I4.0 is not only about technology, but about who “owns” interface to the consumer
and solutions. If you have access to what the consumer/customer needs and
solutions, and you can predict customer/ system behavior, you can develop a
competitive advantage. Technology in terms of products, manufacturing and
services is also very important, but not necessarily driving this. In I4.0 one need to
invest more in business models, based on the relevant Cyber Physical solutions.

7. I4.0 Robot revolution or evolution

8. I4.0 DbEDesignbyExperiment
IEC 62890; Efficiency Increse E=Q/q
I
IdeasTQMISODIN9001:2015

9. Robot revolution
Smart networked Cyber physical Systems like collaborative robots are the logical next step of
a technological revolution.
"A human is an animal plus technology. Humans have two ways to evolve - one is genetic -
the other is through technology.
We are changing the definition of humans as we develop this new technology. In Samrt CPS
we cannot separate human and robots. We will exist in this world together.
• Work becomes so difficult that it can be done only by collaborate systems
• Old and handicapped people will no longer need wheelchairs, or stair-lifts, and people with
spinal injuries, blind, deft or otherwise handicapped can access the needed capabilities.
• Human-/CPSystems can access lethal worlds in space, ocean, mines, cathastrophes.
• Individual local systems can network to global ones and have access to huge resources
• Communication and collaboration Human- Technical System- Nature becomes possible

10. History of Smart Factory; Toyota
FORD /Taylor, Gilbreth, Gantt (Scientific management)
Kiichiro Toyoda visited Ford Motor Company in 1930’s
Toyota introduced SQC
and quality circles
with Ishikawa, Deming, and Juran
TWI after 45 Koromo (later called Honsha) Plant in 1937;
introduction of flow production and JIT
Eiji Toyoda visited Ford 1950’
Evolution based manufacturing
JIDOKA, Teams, Kaizen, Kanban, Suggestion System
Toyota Central Research & Development
Laboratories, Inc, 1960
Toyota Motor Corporation introduced TQC
in 1961, and in 1965 were awarded the
Deming Application Prize
Taiichi Ohno and Shigeo Shingo
for manufacturing development
30
50
70
90
Spin off Denso and emergence of KEIREZU
Toyota's first US plant, NUMMI 1984
Deming Application Prize for quality control 1986
Womac coined LEAN manufacturing
60 % US trade deposits to Japan, Commercial crisis
IMS project main goal: Japan to relieve international trade problems
by giving its advanced manufacturing
technology to the US and Europe
Toyota Industrial robots
development to production
“Made in America” research, Harvard

11. Manufacturing 21 Japan ; “we won’tusehalf-bakedideastotacklehalf-cookedproblems.”
Toyotas first Environmental Action Plan launched 1993
Toyotas Environmental Committee set up 1992
Toyotas Introduction of Center system for 21th century needs
1990
2000
IMS Intelligent Manufacturing Systems
Japan, US, EU, Canada, Australia, South Korea
Toyota project G21, 21th century car and factory 1993, CPPS strategy
Toyota CPS Partner Robots in production
2004 Takaoka plant
1997 Prius introduced
1998 FGMS - Future Generation
of Manufacturing Systems/IMS
1999 Prius and Tahara, Takaoka and Tsusumi CPPS plants
“Global 500 Award,” and several other awards
2000 , 21 th century COE Programme
JMS/TPS for Smart Factories formally documented 2001
"The New Toyota Production System 1998
- Leaner Manufacturing for a Greener Planet".
Introduction of complete CS3 with Denso ,2008
27 Toyota factories 1995
G21 Dream car/ factory – that can make
the air cleaner than it is, that cannot injure
people, that prevents accidents from
happening , that can make people healthier
the longer they drive it /work in it, a vehicle
and factory that can excite, entertain, and
evoke the emotions of its occupants, a
vehicle that can drive around the world on
just one tank of gas and factory that is
resilient and sustainable. (Toyota Motors)
2016
• METI “Robots for Everyone Project,”
• METI ”New Robot strategy”
• Toyota announces $1bn artificial intelligence and robotics plan
2016 Toyota Research Institute
(TRI),
2011 Industry 4.0
Kiribo in Car Moon Project
2016

12. Industry 4.0 (I4.0)
Everythingcommunicateswitheverything
Industry
1.0
Mechanisation
1.0
1776
Industry 2.0
Electricity and
electronics
1.0
1880
Industry
3.0
Computing 1.0
Analog/Digital
Vrtual
1960
Industry 4.0
Cognition
Smart/CPS
1990
INDUSTRALISATION
Industry
1.0
Mehch. 2,0
Micromech.
1880
Industry
1.0
Mech.. 3.0
Nanomechanics
Mechatronics
1970
Industry
1.0
Mech. 4.0
Bio Organic
1990
Industry
2.0
E+e 2.0
Semiconductors
Photonics
1955
Industry
2.0
E+e 3.0
Organic
/Hydrogen
2000
Industry
3.0
Computing 2.0
A/D/V, AI
Propabilistic
1990
5. Wave:
Cognition/KM
CPS/Robotics/IoT
Organic
Hydrogen
Limited Resources
• Collaboration
• Symbiotic
• Localisation
• Circular economy
• Bio- /organic
• Spacetech
• Oceantech
• Arctictech
• Undergoundtech

13. How I4.0 Changes world, RWTH Aachen

14. Industry 4.0 (I4.0)
Everythingcommunicateswitheverything
Smart Systems
Cyber Physical Systems (CPS)
Smart Cities
Smart Growth
Smart Robots, Cars, IoT..
Smart
Factories
Hospitals
Mines
Ocean
Space..
Adaptive Intelligent Applications
Machine learning applications and analytics
Smart =Sense – Think - Act
Communicate
Collaborate
Learn-Teach
Identify
• Each functionality independently of
location,
• context-aware,
• in accordance with the requirements
and situation
• semi-autonomously,
• in a semi-automated manner,
• multifunctionally.
• in a distributed and networked
manner,
• learning and teaching
The rise of Intelligent systems

15. ”What Industrial
revolution did to human,
Industry 4.0 will do to
machines”; Ian Morris
Watt Steam Engine 1775
Global population explosion
Social development
CIRCULAR ECONOMY / COLLABORATIVE SYSTEMS
SOCIAL- / ECOSYSTEM
TECHNICAL SYSTEM

16. Industrie 4.0 change the role of people within industrial sosio-technical
ecosystem and requires to develop new skills and acquire new tools;
Industry 4.0 & Education 4.0.
Industrie 4.0 gives the chance to keep industrial value creation in Europe
through ”Coopetition” (Cooperative competition) over domains;
Infrastructure, structure and superstructure jobs; Domain specific OWLs
Industry 4.0 creates possibilities also there where there has been none
before; very demanding and difficult places, tasks, products and systems,
assistance for handicapped, collaboration with human, technical systems
and nature, concrete and virtual; Design by Experiments
Industry 4.0 and human jobs; Aachen RWTH
”Ideas, Possibilities and Efficiency” : Von Förster on Cybernetics

17. I4.0 is a Standard for Smart Systems
Standardization Council Industrie 4.0
• Bundesverband Informationswirtschaft,
Telekommunikation und neue Medien
(Bitkom)
• Deutsche Institut für Normung (DIN),
• Deutsche Kommission Elektrotechnik
Elektronik Informationstechnik (DKE),
• Verband Deutscher Maschinen- und
Anlagenbau (VDMA),
• Zentralverband Elektrotechnik und
Elektronikindustrie (ZVEI)
I4.0 platforms;
German; http://www.plattform-i40.de
Dutch; http://www.smartindustry.nl
French; http://www.usine-digitale.fr/industrie-
du-futur
Austrian; http://plattformindustrie40.at
Swede: http://www.produktion2030.se/
Belgian: http://www.madedifferent.be
Danisch; http://www.made.dk
USA: https://smartmanufacturingcoalition.org/
Norwegen: http://ikuben.no/
Japan: https://www.jmfrri.gr.jp/english/
China; ”Made by China 2025”

18. How far is I4.0 now and who are doing and
what; Reality ?

19. Industry 4.0 is German driwen and EU wide
Denmark
MADE
?
ARAW ( przemysl40.pl/ )
Education 4.0
Plattformindustrie40
?
?
“Industria Conectada 4.0”
Norwegen
SPARC2014
?

20. Plattform Industrie 4.0
Concrete recommendations for action for companies and politics
Reference architecture model RAMI 4.0.
Education 4.0 Labour and employment questions
New initiatives emerging out of the network
Plattform Industrie 4.0. Labs Network Industrie 4.0
International cooperation in standardization
within DIN, ISO, EU China, Japan, US. France…
Concrete instruments and event possibilities for companies.
1. The online map Industry 4.0 (www.plattform-i40.de/I40/Landkarte) with
• about 250 application examples.
2. The new online library Industry 4.0 (www.plattform-i40.de/I40/Online-Bibliothek)
3. Cooperates with associations, chambers and other initiatives and institutions,
• Germany-wide series of IHK (Chamber of Industry and Commerce)events
GERMANY

21. RE- INDUSTRALISATION STRATEGY PROGRAMME
http://www.regeringen.se/regeringens-politik/smartindustri/
http://www.produktion2030.se/en/
Four focus areas: (over 300 projects, over 80 Industry 4.0
Companies; Volvo, Sandvik, SKF, ABB….)
1. Industry 4.0 – Sweden Industry to leading position
2. Sustainable production- Regenerative development –
Resource efficiency, Circular economy Environment regeneration; resulting
value creation brings jobs and healthy economy.
3. Industrial skills boost- Knowledge transfer to Industry –
long sight , long term programmes with best.
4. Testbed Sweden – Sveden as leading in relevant research for
Swedish Industry renewal for local manufacturing.
SWEDEN

22. NETHERLAND , Smart Industry
27 themas , 1 mrd euro additional government funding 2016

23. Japan, https://www.jmfrri.gr.jp/english/
METI Signed a Joint Statement Regarding Japan-Germany Cooperation on IoT/Industrie 4.0
Plattform Industrie 4.0 and its Japanese counterpart – the Robot Revolution Initiative –
• Industrial Cyber Security
• International Standardization
• International Regulatory Reform
• Facilitation for Small- and Medium-sized Enterprises (SME)
• Human Resource Development
• Research and Development (R&D)
Make Japan the world's center of robot innovation,
1. Reinforcing Japan's ability to create robots
2. Japan the world leader in utilizing robots in society
3. Demonstration platforms of the new era of collaborative robots that includes the IoT.

24. FRANCE
Industrie du Futur launched in 2013 by Arnaud Montebourg, then the French minister of
reindustrialization. 34 industry-focused projects. In April 2014, Emmanuel Macron, the current minister
of Economy, Industry and Digital Affairs has launched the second phase, With total funding of €730m
for 2nd phase a new technology platform launched in January 2016. Aim is to strengthen France's
collaboration with European and international initiatives, with a particular focus on the European
Commission's Horizon 2020 project and the initiation of a partnership with the German platform
Industrie 4.0.
Industrie du Futur nine industrial solutions for priority markets are:
1. New resources
2. Sustainable cities
3. Ecological mobility
4. Transportation of the future
5. Health of the future
6. Digital economy
7. Intelligent objects
8. Digital trust
9. Intelligent food
330 sub-projects have been started up as part of the program, involving over 400 companies, with a
cumulative projected investment €3.7 billion, including €1.5 billion support from the French state.

25. USA,
In March 2014 AT&T, Cisco, General Electric,
IBM and Intel founded the “Industrial Internet Consortium (IIC)”
in order to coordinate the priorities for the industrial Internet, and to enable the technical
applications required for this.
• 250 companies have joined the movement.
• The aim is to bring together “operational systems”, which mean machines and industrial
plants in the widest sense of the term, and information technology.
• 16 Center of Excellence around US
• Miltary adaptations and NASA lead the way

26. "Made in China 2025" is an initiative to comprehensively upgrade Chinese industry. The initiative draws direct
inspiration from Germany's "Industry 4.0" plan, which was first discussed in 2011 and later adopted in 2013.
The Chinese effort is far broader, as the efficiency and quality of Chinese producers are highly uneven
The plan was drafted by the Ministry of Industry and Information Technology (MIIT) over two and a half years,
with input from 150 experts from the China Academy of Engineering. The plan highlights 10 priority sectors:
1) New advanced information technology;
2) Automated machine tools & robotics;
3) Aerospace and aeronautical equipment;
4) Maritime equipment and high-tech shipping;
5) Modern rail transport equipment;
6) New-energy vehicles and equipment;
7) Power equipment;
8) Agricultural equipment;
9) New materials; and
10) Biopharma and advanced medical products.
CHINA
”Made in China”, 13th five year plan 2016

27. The EU
• Horizon 2020 programme
• I4MS
• EFFRA European Factories of
the Future Research
Association
• FET Future and Emerging
Technologies Programme
• Sparks
EU Industry 4.0
Digitalisation for productivity and growth

28. Finland,
No Industry 4.0 strategy yet but lots of
Activities witin Compnanies.
ABB YUMI
CPPS assembly factories
AGCO POWER
CPPS factory
Robot shuttle
Bus Helsinki
Planmeca
3D scan
Robot+print
Smart Grid
Fortum

29. Finland strong in IoT, but I4.0 ?
I4.0 is not digitalisation
I4.0 is about CPS and new
Business models and
Possibilities with them.
I4.0 is about new mental
model; paradigm of resilient
collaborative Systems of
Systems
Strong

30. Production Engineering 2011
Experiment based
Learning:
Self-Organisation
Self-Configuration
Self- Correction
Sense
Think
Act

31. What to do? How can we join I4.0 ; RoadMap ?
• Standards
• Education 4.0
• Business Model; Ideas, Possibilities, Efficiency
• Design by Experiment; Product + Identification + Intelligence +
System + System of systems
• Business Intelligence and domain based sTQM & KM
• Coopetitive evolutionary growth with customers and
competition.

32. Industry 4.0 Collaboration

33. ISO I4.0
Industry 4.0: New ISO strategic advisory group
Cooperations with the International Electrotechnical Commission (IEC) and the International
Telecommunication Union (ITU) are planned The Technical Management Board (TMB) of the International
Standard Organization (ISO) in Geneva has now agreed to set up a Strategic Advisory Group (SAG) on
Industry 4.0/Smart Manufacturing.
The SAG will be chaired by
Prof. Dr. Kai Rannenberg, who holds the Deutsche Telekom Chair of Mobile Business & Multilateral Security
at Goethe University in Frankfurt.
AFNOR (France),
ANSI (USA),
NEN (Netherlands),
SNV (Switzerland),
JISC (Japan),
SAC (China),
SA (Australia) und
BSI (UK)
SAG is due to report to the TMB by September 2016 at the latest.
Industry 4.0 Collaboration

34. Technical System design to CPS, Siemens
Build systems “autonomous”, “information terminal device” and “networked” CPS ones,
• Use standardized data-driven devices such as actuators that make it feasible for integrate with distributed
intelligence/control system to offer a range of robot functions in various scenes of customer processes
within society.
• Use novel functions, services and features to provide new possibilities to exceed the current capabilities of
embedded systems with controlled behavior.
New CPS systems thus provide their services to users and stakeholders:
• largely independently of their location,
• but nevertheless in a context-aware manner,
• in accordance with the requirements of the current application situation
• semi-autonomously,
• in a semi-automated manner,
• multifunctionally and
• in a distributed and networked manner.
A particularly significant feature of Cyber-Physical Systems is the fact that they are directly integrated into the
physical world (“real world awareness”). Cyber-Physical Systems are capable of standardised self-
description that allow self-organisation, self-configuration and self- correction using standard mechanisms.

35. CPS for specific domains
Cyber-Physical Systems (CPS) refers to embedded systems, i.e. devices, buildings, vehicles and medical
equipment, as well as logistics, coordination and management processes and Internet services that consists
of Internet of Things, Data and Services e.g. for Smart Cities, Smart Factories and Smart Logistics etc. configured
from embedded systems e.g. airbag, networked embedded systems e.g. autonomous aviation, Intelligent
Systems e.g. intelligent networked Fighter that:
Sense; use sensors to directly capture physical data and actuators to affect physical processes,
Think; interpret and store data which they then use as the basis for active or reactive interactions with the
physical and digital worlds,
Act and Collaborate;
• are connected to each other via digital networks that may be wireless or wired and local or global,
• use data and services that are available globally,
• are accessible by a range of multimodal human-machine interfaces, offering a variety of
differentiated and dedicated options for both communication and control, for example using voice and
gesture commands.

36. Experiment (DbE) and BI (Business Intelligence)
based design for I4.0; Case ReconCell-I4MS project
Entities => IoT => Intelligence => Systems => Systems of Systems

37. IMS; CPS Reference Architechture

38. Evolution of your embedded systems
Identify
Sense- Think- Act
Communicate
Collaborate
Key non-functional features:
– Functional safety
– Dependability
– Usability, controllability (human-machine interaction
shared control)
– Valid mental model; users have an accurate idea o
what the system is capable of
– Compliance – system behaves in accordance with
expectations, observes rules, norms and standards
including engineering
– IT security issues associated with functionalities
in networked systems

39. Industry 4.0 ; Sense- Think- Act
Business; Total cost of ownership, Productivity, Resiliency, Responsiveness
TCO
System size

40. CPS ja CPPS www.toyota.com
www.kuka.com

41. Smart Construction
KOMATSU
www.komatsu.com

42. Case Toyota Homes: Smart Homes
Intelligent grid; Energy from fuel
cells. Solar panels and even
from hybrid car
1. Earth quake resistant, inflammable, affordable
environmental bening.
2. Adaptable to changes in life and different life styles
3. Factor 4 thinking (2 times better living & 2 times
more sustainable).
4. 4R (Recycle, Reuse, Re-furbish, Redesign)
5. Smart Systems
100 years LC
House can be
redesigned,
refurbished, moved,
60 years garantie ..
Supporting columns and beams can
be placed freely and space modules
are freely variable enabling easy
robotised assembly
Earth quake laboratory
Digital modelling,
Smart Systems lab
Customer involving 3D
planning
40 days to completion
4 days factory time
6 hours erection time
Resilient
Smart,
Recyclable,
Adaptable
Adaptable resilient,
sustainable houses
since 1975.
titiveSustainableManufacturingMCPC2009
Smart Systems, IoT, Robot
Accesible and Livable House

43. CPS
Physical Systems (CPS). CPS are “integrations of
computation an d physical processes. Embedded
computers and networks monitor and control the
physical processes, usually with feedback loops
where physical processes affect computations and
vice versa.” (Lee, 2008, p. 363).
The development of CPS is characterized by three
phases:
1. The first generation of CPS includes
identification technologies like RFID tags, which
allow unique identification. Storage and analytics
have to be provided as a centralized service.
2. The second generation of CPS are equipped
with sensors and actuators with a limited range
of functions.
3. CPS of the third generation can store and
analyze data, are equipped with multiple
sensors and actuators, and are network
compatible, collaborate and learn.
(Bauernhansl, 2014, pp. 16–17).
Siemens at
Hannover Messe

44. I4.0 DbEDesignbyExperiment
IEC 62890; Efficiency Increse E=Q/q
I
IdeasTQMISODIN9001:2015

45. Virtual/Real
D/V/R
Partner
Informaation
D/V/R
Partner
IMPLEMENTATION
CONCEPT
INTENTION
Time to Market
Time to Quality
Time to Cost
Time to Variety
Time to Volume
Time to Upgrade
Time to Skill
Self-Configuration Self-correctionCPS, IoT, AI Self-Organisationi
Systems
I4.0 Infrastructure
I4.0 Strukture
I4.0 Superstrukture; Standards, norms, legislation
Smart Factory
Digital/Virtual
I4.0 within Smart Systems

46. ReconCell I4.0 Learning and teaching systems
Sense-Think-Act
model predictive control (MPC)

47. Case ReconCell, I4.0 platform
KNOWLEDGE Pool
Domain Semantics, Ontologies
BPM (sBPMN/BPMI/BPEL)
Digital/ Virtual/ Real data
KPI Sets
CABABILITY Pool
Digital: Softwares, Systemdata
Virtual: BP Modellers/Simulators:
(I4MS, ReconCell)
Real: Systems, Modules, Tools,…
COLLABORATION Pool
ReconCell Consortia
Integrators, I4MS Hubs
End-users
COMPETENCE Pool
ReconCell/ I4MS Hubs
Integrators/ technology providers
Education platform
INFORMATION FLOW VALUE FLOW
ORDER DELIVERY
Q
CONFIGURATION
PROCESS KPI
Self- Configuration
NETWORK KPI
Self- Organisation
q
MANAGEMENT KPI QUALITY KPI
Self- Organisation Self- Control
ORDER
DELIVERY
Digital /Virtual Digital/Virtual/Real

48. Case ReconCell; Capabilities needed

49. Case ReconCell; Intelligent Field Agents

50. Case ReconCell, Evolutionary process
DbE Design by Experiment
New Technology
New Processes
New Network of cognitive entities
New Information process
New Capabilities
New Competences
New Collaboration
New Knowledge
New smart entities, infrastructure and superstructure
New way of sensing, thinking and acting
Competitiveness
Profitability
Growth
New Business Models
New Possibilities
New Markets

51. Example; Symbiotic Business Model
CaseYokohamaMobility"ProjectZero"(YMPZ),YokohamaCity,NissanMotorCo.,Ltd.,

52. Case; EcoModelCity programme
Smart City

53. I4.0 Case ReconCell; Coopetitive development
ReconCell
project
RWTH Aachen
Test factory
Robot Dalen
BOC, Odensee
Test factory
Industry 4.0 based development
1. Road Map
2. Coopetitive network
3. Investment in
1. I4.0 technology
2. I4.0 knowledge
3. I4.0 competence
4. Education 4.0
5. DbE Design by
Experiment =Field Lab
process Hermia,
Tampere
BI platform
IJS
Ljubljana
Test factory
Platform Industry 4.0
MADETekes
EU
Horizon 2020
I4MS
Gostop
5 Case companies
Real Process
16 IoT
module
providers
6 I4.0 system
providers

54. Case ReconCell
COOPETITIVE DEVELOPMENT
PLATFORM
Knowledge, Capabilities, Competences,
Network sharing
Company 1
Systems
Company 2 Company 3
Systems Systems

55. Thank You !
And now you know