1. © Fraunhofer IAO, IAT Universität Stuttgart
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INDUSTRY 4.0
Impacts on Production Management
Dr.-Ing. Sebastian Schlund
Fraunhofer IAO, Universität Stuttgart, Germany
Barcelona, April 22th, 2015

2. © Fraunhofer IAO, IAT Universität Stuttgart
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Our
Economy
Our Knowledge
Our
Interaction
How Digitalization is Changing our World…
Websites, Blogs
Smartphone
E-Health
Emails
Cloud
Computing
Smart Energy
Big / Smart Data
Edutainment
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Tablet E-Commerce
E-Banking
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Identity
Car2X
VoIP-Software
Industrie 4.0
Webinare
RSS-FeedsNewsletter
Data Analytics
Wikis
Augmented Reality
Open Innovation
Kommunikation
Mobile Devices
Cybercrime
IT-Sicherheit
E-Collaboration
Suchmaschinen
3D-Simulationen

3. © Fraunhofer IAO, IAT Universität Stuttgart
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Trends in Manufacturing
The Internet of Things (IoT) becomes real
Who
communicates
with whom?
technological
requirements
„The Internet of Things is the technical vision, to integrate objects of any kind into a
universal digital network. The objects have a unique identity (smart objects) and are /
move in a 'smart' environment.”
Federal Ministry of Economics and Technology 2007
RFID-Chips
= Intelligent
localization
technique
Sensors &
Actuators
IPv6
Extended address space
for smart objects
Data
Analytics
 Internet capability of all objects
 communication technologies: common standards and interfaces
Cloud
Technology
…
and why?
 For best possible networking of physical and digital Worlds
 Added values: simplification, rationalization and improvement of
human everyday life and working routine by embedded systems
Machine2Machine (M2M) Person2Machine (P2M) Thing2Machine (T2M)

4. © Fraunhofer IAO, IAT Universität Stuttgart
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Beispiel IoT: Insulin Angel
Bildquelle: insulinangel.com

5. © Fraunhofer IAO, IAT Universität Stuttgart
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Industry 4.0 in a Nutshell
What does Industry 4.0 stand for?
 Via IP addresses connected objects with embedded hardware and software (Cyber-Physical
Systems) interact with their environment
 The self-organizing smart factory accounts for vision and scope; similar to smart mobility,
smart logistics, smart grid, smart building, smart health.
 Frontrunners expect the impact of a fourth industrial revolution, after mechanization,
industrialization and automation
The term »Industry 4.0« describes the expected digitalization of
industrial value chains.
Industry 4.0 describes a real-time-capable, intelligent integration of
humans, machines and objects towards a management of systems.
[according to Plattform Industrie 4.0; DB Research]

6. © Fraunhofer IAO, IAT Universität Stuttgart
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The Vision of a 4th Industrial Revolution
[acatech, 2013]

7. © Fraunhofer IAO, IAT Universität Stuttgart
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Industry 4.0 as International Competitive Advantage
German industry in good starting position
Germany‘s manufacturing share is increasing in
absolute terms but decreasing in relative terms
nationally and internationally
Development of Manufacturing Value Added (MVA)
[United Nations Accounts Main Database, 2014]
The German industry is well prepared for the
digitalization of industrial value chains (within a
European scope)
[Roland Berger, 2014]

8. © Fraunhofer IAO, IAT Universität Stuttgart
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Industrie 4.0 – Implementation Recommendations
 Dual strategy of using new technology and
developping / selling new technology
 Three main directions:
 Horizontal integration through value-creating
networks
 Consistency of engineering across the entire value
chain
 Vertical integration and networked production
systems

9. © Fraunhofer IAO, IAT Universität Stuttgart
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Dual Strategy Industry 4.0
Germany as leading market and leading supplier
Objective: Increase in process efficiency by
implementation of IoT use cases
Objective: Realization of new market
opportunities by innovative business models
Trigger: Internet of Things (IoT, CPS) Trigger: Internet of Services
Today main emphasis is placed on process efficiency – competition of best business
models is just starting.
Germany as leading market Germany as leading supplier
MES
Control
Engineering
Mobile Robotics
Mobile Internet
Automation
Embeddeds
Degree of maturity
[Accenture, 2014]
[Bildquellen: itizzimo, DFKI, Kuka, kiva, DHL, Uber, GE]

10. © Fraunhofer IAO, IAT Universität Stuttgart
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Use Cases and Examples in Industry and Research
Products and application
mechanization industrialisation automation Industry 4.0
 Technologies are available – crucial will be:
 to use them economical and
 to develop sustainable business models
 Examples:
 social machines
 mobile devices
 handling-assistents
 smart factories and intelligent objects
 predictive maintenance
 smart data (e.g. Smart Data Innovation Lab)
 Corporate App Stores
 holistic principles: “4.0-enterprises” (Bosch, Wittenstein)
CLAAS TRUMPF
FRAUNHOFER IAO ITIZZIMO + X
KUKA BOSCH
WÜRTH
DFKI
BOSCH REXROTH SIEMENS

11. © Fraunhofer IAO, IAT Universität Stuttgart
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Industry 4.0 Raises High Expectations
Significant added value and investments expected
German enterprises expect
efficiency and turnover
gains and plan to invest
annually further EUR 40 bn
for industry 4.0 solutions.
High expectations
regarding efficiency gains
by industry 4.0 – within
own manufacturing and
across the value chain.
[ingenics, 2014]
[PWC, 2014]

12. © Fraunhofer IAO, IAT Universität Stuttgart
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Projects and Initiatives
Political Agenda Setting Publically Funded Research Projects
Standardisation,
Dissemination Industrial Initiatives
Surveys Dedicated SME Initiatives
Allianz Industrie 4.0 Baden-Württemberg
… and more to
come

13. © Fraunhofer IAO, IAT Universität Stuttgart
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Industry 4.0 stands in line with several international initiatives towards smart manufacturing.
Digitalization of Manufacturing as International Megatrend

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International Cooperation
 The integration of value chains requires capable and innovative partners.
 Industry 4.0 is all about interaction and connectivity. Be part of the
network.
 Software kills hardware – the trend is already reaching manufacturing
industry. New value chains evolve.
 Integrated IT and manufacturing skills and the gift of applying them to
today’s and tomorrow’s challenges will make the difference

15. © Fraunhofer IAO, IAT Universität Stuttgart
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Opportunities for (Small and Medium) Enterprises
1. Discover IoT (Internet of Things) opportunities for
industrial purposes.
2. Develop IoT products, applications and business
models beyond todays scope.
3. Create mobile applications and human-machine
interfaces for business/industrial/manufacturing
purposes.
4. Look for opportunities for the use of small and big
data within industrial processes.
5. Be part of IT and data-driven networks and
platforms.
6. Speed-up – there is still a first-movers advantage.
[Elabo, Linemetrics, itizzimo]

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Thank you very much!
SEBS

17. © Fraunhofer IAO, IAT Universität Stuttgart
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Contact
Dr.-Ing. Sebastian Schlund
Leiter Competence Center Produktionsmanagement
Fraunhofer IAO
sebastian.schlund@iao.fraunhofer.de
0711 / 970-2065
blog.iao.fraunhofer.de