The impact of the digital transformation on industry: be prepared and re-invent the future of your organization through innovative operational excellence and new growth platforms. Get inspired by insights on the opportunities and examples of implementation.

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CONFIDENTIAL Template Innovation Day 2017CONFIDENTIAL
INDUSTRY 4.0:
BIG INDUSTRIAL TRANSFORMATION
An opportunity or another hype ?
Joris Vanderschrick
Business Development Manager Industry
Joris.vanderschrick@verhaert.com
M +32 (0)473 78 37 67
Paul Poelmans
Senior Advisor Innovation & Transformation TechXfer
ESA Technology Transfer Network – Prime contractor
paul.poelmans@verhaert.com
M +32 479 26 06 99
TRACK 4 - SMART INDUSTRIES

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3
CONTENT
i4.0 a route to Digital Transformation 4 your Industry
Let’s make it concrete
Conclusion and take-away’s

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INDUSTRY 4.0
It’s a another hype, the same old wine in new bottles ?!
It’s just an extension on what we already do in operational excellence !
It’s only for B2C companies, not for us in B2B or at the beginning of the value chain
It’s an opportunity for growth

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Exponential growth and convergence in IT technology
WHAT’s happening !
Moore’s law
Ray Kurzweil’s comparison
The emperor and the chess board
India 6th century
18.446.462.598.732.800.000

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Some history …
Industry 4.0
DigitalTransformation4industry
TRANSFORMING INDUSTRY
40 yrs. evolution
infrastructure
computer & network
applications
Digital
data
algorithms
internet
apps
cloud
DT4i
interoperability
information transparency
technical assistance
decentralized decisions
project in German’s
high-tech strategy to
promote digitalization
of manufacturing
2012
Globalisation
Disruption
Adidas
Uber
airbnb
Kodak

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i4.0 original infograph 2012

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DT4i motivators !?
TREND
MOTIVATORS
COST ↘ REVENUE ↗
‘new future’
BUSINESS
TRANSFORMATION

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It will disrupt your business ! How? When? Who?
• How will future processes / plants look like?
• New feeds? waste, bacteria's, insects, ….
• What unexpected players will enter your market?
• Operator Management industry in gas industry ?!
• Waste industry entering chemical industry ?!
• What skills will be needed?
• What about stakeholders?
• …
Sooner then expected,
also our business might be
disrupted as UBER disrupted
the taxi industry
Head of Corporate Innovation Evonik
sept. 2017

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READY TO RE-INVENT THE FUTURE?
Impact DT4i
Nancy Duarte
TED speaker - Writer
The future is not a place you go,
it’s a place you invent
Existing !
Well known !
NEW SHORT TERM
OPPORTUNITIES !!!
NEW LONGER TERM
OPPORTUNITIES !!!
Asset
Management
R&D Supply Chain
Processing
Digital Driven
Innovative
Operational Excellence
Digital Driven
Innovative
Operational Excellence
Customer
Interaction
Smart
Products
New
Innovation
Models
New Business
Models
Lean
Operational Excellence (OE)

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Verhaert’s concrete DT4i transformation opportunities

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LET’s MAKE IT CONCRETE
DIGITAL DRIVEN INNOVATIVE OPERATIONAL EXCELLENCE
SOME INSPIRATION

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SOME RECENT TOPICS IN THE MARKET
We have squeezed out the last ms during SMED exercises, we want to turn to
technology to further optimize (automize) the manufacturing plant.
Automize very specific handling in production lines
Automize manual operations
We want to master a new or complex manufacturing process & related risks
We want to master a new technology & related risks
Before the production line upscaling, build & installation
We want to improve our energy
consumption
We want to improve our supply chain

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BOTTOM UP APPROACH TO DIGITALIZATION
Measure # Physical Parameters of the product in process machinery
Measure # process parameters
Data Analytics: Find use for the gathered sensor data
Duplicate & connect
Cyber Security
• Optimize supply chain
• Optimize logistics
• Optimize production process
(Plant of fleet level)

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IOT PLATFORMS OPTIMIZING THE SUPPLY CHAIN
Control supply chain
TOOL AVAILABILITY ↗ TECHNICIAN TRAINING COSTS AND TIME ↘
• Connecting machines in different phases of the value chain allows to optimize
production in function of use , trends and behavior
System data of all beer dispensers of ABInBev distributed
worldwide is collected centrally and after processing it
including unstructured data (social, geographical, cultural
…) it allows to:
• Feed the supply and logistics management system
• Rapidly detect operational malfunctions
• Feed a dashboard with the consumption of beer in any dispenser,
anywhere in the world, allowing to trace consumption profiles
according to social and geographical location.
IN-LINE INFORMATION ↗ MAINTENANCE VARIABILITY ↘
A Telemetry system was developed for Coca-Cola
Company which monitors remotely all vending machines
of its new prototype, spread all over the world.
Verhaert created the entire online infrastructure that
allows to access remotely all machines enabling to solve
problems anywhere in the world. The online portal also
allows to view information graphically and intuitively
anytime, anywhere.
All data such as temperature, sales and operational
problems are displayed in real-time and accessible via any
internet enabled device.

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BIGGER OPPORTUNITIES THROUGH SENSORS & DATA ANALYTICS
Data mining
Predictive analytics
Machine learning
Statistics
Classification
Forecasting
Pattern recognition
Virtual sensors
Giving added-value to sensor data
New opportunities

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CONDITON-BASED MONITORING & PREDICTIVE MAINTENANCE
Condition monitored maintenance programs envisage to
• Improve downtime
• Increased effectiveness
• Reduced maintenance cost
• Reduced spares inventory

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FLAVOUR OF DATA ANALYTICS
Prognostic Health Management (PHM)
To predict health state by combining :
Sensor data
Physical model
Historical information
• It derives the features of the data based on training
(no labeling of known faults, nor pre-processing to
enhance known fault characteristics)
• Universal and rapidly applicable to any piece of
equipment
Anomalies detection
• Diagnose a fault as early as possible
• Differentiate unknown faults from known nominal
and fault behaviour. Decrease false alarms
• Early, non obvious fault detection
• Prognose remaining lifetime (confident guess)
Neural networks have the ability to learn, from
training data
Store information as patterns
Extracting features
Used in
Signature analysis
Investment analysis
Process control
Where can neural networks be used in?
Where no algorithmic solution is available
Where we can get lots of examples of the
behaviour we require

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APPLIED IN:
Electrical motor
Detect robustly anomalies in measurements from a
range of sensors detecting electrical current, vibration,
etc.
No engineering model available
Diamond grinder
As the diamond and the diamond powder
based grinding wheel have equal hardness,
the system needs to detect which one is
wearing fastest. Additionally the system
needs to warrant the diamond due to stress is
not going to shatter into small pieces

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APPLIED IN:
Small oil cooler fan mounted on military equipment
Early and robust detection of a trend to failure
Single mounted accelerometer sampled over 20sec
Used as trend detector and alarm signal
Very sensitive
Very low false alarm rate
Single accelerometer identifying anomalies in
gearbox used as trend detector
Gearbox behaves differently in almost each
helicopter
Eliminates subjective interpretation of experts

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RTRT (Real-Rime Release Testing) IN PHARMA
• Integrated advanced process control and PAT tools enable monitoring during
production
• Approve by FDA that you can clear It based on sensor data & analytics
• Real-time release

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CO-MODELLING AUTOMIZING OPERATIONS
• Connecting the physical with the embedded world
• Machine learning: Train algorithm to make It reliable
• Own co-modelling platform: DESTECS

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EXCAVATOR FOR DREDGING
Performance highly dependent on operator skills
Goal:
• Increase performance and decrease down time
• Develop ‘smart’ controller:
o Prevent overloads
o Semi-automate digging task

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ANALYTICS & ROBOTICS FACILITATING AUTOMATED HANDLING
UNLOADING
NEW PROCESS
LINE
STACKING
STACKING
• Container with materials in #
different options of positioning
& # shapes
• Difficult handling (surfaces)
• Place on trolley
• Transport to process line
AUTOMATED PROCESS LINE
• Chemical process not
proven to work yet
UNLOADING
• QA check
• Load on trolley

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AUTOMATED HANDLING
STRATEGY
STACKING
Recognize
complex shapes &
positioning
&
Separate
NEW PROCESS
LINE
UNLOADING
= + -
=
=
Robotics
+
Machine building
+ =
+
Robotics
=
-=

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SOME INSPIRATION
DIGITAL DRIVEN
NEW GROWTH PLATFORMS

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INTEGRATION
SOME CASES
Converging and
connected
technological
solutions
NEW GROWTH
PLATFORM
Pushes corporates
to go and explore
challenging but
unknown business
opportunities and
treats
Connected
Products
Connected
Operations
&
Machines
Connected
Services
Connected
Demand
Connected
Value
Chains
Connected
Logistics
Connected
Factories

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Conclusion

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Impact DT4i
INDUSTRY 4.0
Nancy Duarte
TED speaker - Writer
The future is not a place you go,
it’s a place you invent
BE PREPARED AND
Existing !
Well known !
NEW SHORT TERM
OPPORTUNITIES !!!
NEW LONGER TERM
OPPORTUNITIES !!!
Asset
Management
R&D Supply Chain
Processing
Digital Driven
Innovative
Operational Excellence
Digital Driven
Innovative
Operational Excellence
Customer
Interaction
Smart
Products
New
Innovation
Models
New Business
Models
Lean
Operational Excellence (OE)

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Strategy
Business
Technology
User centricity
TRANSFORMATION FRAMEWORK
Design
thinking
Digital & data
sciences
Business model
innovation / servitization
3D printing
Advanced
materials
IoT &
sensors
Robotics &
autonomous
platforms
Early user
validation
(User)
co-creation
Behavioral
change
Roadmap
Accelerated by open innovation and technology transfer

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Other external Challenges
INDUSTRY 4.0
 SECURITY
 Ready to open your production capability ?
 Hackers, Privacy, IP of customers
 RELIABILITY and STABILITY
 For critical machine-to-machine communication
 Protect INDUSTRIAL KNOWHOW
 Maintain INTEGRITY of PRODUCTION PROCESSES
 Avoid any IT snags, as those would cause expensive production outages
 Unknown future (black swan’s)
 Lack of ADEQUATE SKILL-SETS
 Threat of redundancy of the corporate IT department
 General reluctance to change by stakeholders
 CULTURAL CHANGE
 Connection & Agility
 Social IMPACT
 Loss of many jobs due to automatic IT-controlled processes, especially for lower educated employees
 Union’s

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Questions / Remarks
thank you !
Paul
Poelmans
paul.poelmans@verhaert.com
Joris
Vanderschrick
joris.vanderschrick@verhaert.com

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Innovation Day is an initiative of Masters in Innovation,
the umbrella brand of the Verhaert Group which aims
to connect, train and accelerate professional innovators.
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