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Are smart factories manufacturing a new industry model

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Presentation from EY Global Advanced Manufacturing at PTC LiveWorx 2020. See ey.com/mfg for more information.

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Are smart factories manufacturing a new industry model

  1. 1. Are smart factories manufacturing a new industry model?
  2. 2. This presentation is provided solely for the purpose of enhancing knowledge. It does not provide advice because it does not take into account any specific facts and circumstances. These slides are for educational purposes only and are not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. The views expressed by the presenters are not necessarily those of Ernst & Young LLP or other members of the global EY organization.
  3. 3. Market insights Page 2 63% of companies are focused on a physical return and a reimagining of work 71% said that enhancing health and safety protocol is the primary challenge, followed by reconfiguring physical space 58% of the organizations are using this time as an opportunity for transformation Operational continuity/business operations was the No. 1 requested area for future learning Polling results from webcast with over 6,000 client participants* Sustainable manufacturing resilience Time Performance Typical (i.e., COVID-19) Disruption ► Ongoing disruptions to the supply chain are the “new normal.” ► Companies will continue to face supply chain disruptions from a range of sources. ► Continuing performance improvement will require a different approach. ► The strongest will have a foundation for sustainable manufacturing resilience. A resilient manufacturing enterprise is agile, efficient, stable, connected, responsive and customer-centric. * EY webcast conducted with clients on April 30, 2020 Harness the power of digital through EY Smart Factory
  4. 4. Factory of the Future Benchmarking Study * Smarterchains study sponsored by EY from June 2019 to February 2020 Study overview* Factory of the future dimensions  Factory of the future leadership  Digital organization  Data-driven maintenance  Automated data flow  Automated material flow  Digital-ready infrastructure  360-degree factory visibility  Intelligent quality  Tech-augmented workforce  Zero-touch production Automationanddigitizationmaturity Operational excellence maturityLow High High Low Digital novice LeadingTechnology first Beginner Page 3 Harness the power of digital through EY Smart Factory
  5. 5. The journey to resilience and improvement is achieved through empowering people and accelerating the move to zero-touch operations Smarter equipment Better outcomes create better value Performance culture Help to empower and engage people Standard ways of working End-to-end digital ecosystem Problem-centric application of technology Integrated and contextualized data Data Insight Decision Action Smarter people Page 4 Harness the power of digital through EY Smart Factory
  6. 6. EY Smart Factory applications elevate people performance, eliminate low-value activities and support manufacturing resiliency and zero touch EY Smart Factory applications can be adopted individually or in an integrated program Smart Factory applications can be adopted individually or in an integrated program Elevate the performance of your people and eliminate non- value-added work ... ... Elevate the performance of your equipment and eliminate loss by supporting a digital shop floor Resilient manufacturing operations 1 2 3 The Smart Deployment Console allows global, 24/7 digital access to the manufacturing excellence work system to guide self-directed teams on the journey to capability development and performance improvement. Standard work processes are transformed from white boards and clipboards to a digital environment that significantly improves adoption and execution across the network. Specific use cases harness disruptive technology to drive better decision-making and eliminate loss. Digital strategy and transformation management My tasks EY Smart Factory solution Smart capability progression Smart daily management Smart process optimization IWS Page 5 Harness the power of digital through EY Smart Factory
  7. 7. ► One-click access to content to execute improvement actions ► Servant leadership to drive empowerment and ownership ► Digital coach; a self-directed road map to excellence ► Single version of the truth codified and standardized ► Visibility of progress to track performance results Production line assessment Assess Strategic improvement plan Plan Digital content delivery to support self-directed execution StandardsDo Check Monitor impact Build capability to take the right actions Smart capability progression The EY Smart Deployment Console is supported by P&G’s world-class Integrated Work System (IWS). This digital application is designed to store and manage manufacturing excellence systems. It supports structured capability progression for individuals and teams through the support of a digital coach and program management in the plan. Manufacturing resilience requires a workforce that is empowered through the ability to consistently deploy leading-practice capabilities. Traditional manufacturing excellence programs aim to achieve this but too often fail due to an inability to scale and sustain capability development. Page 6 Harness the power of digital through EY Smart Factory
  8. 8. Effective execution of critical standard work Integrated data and task management Embedded task-based microlearning supports scaled knowledge transfer from experts to front-line workers Key benefits Changeover Efficiency Maintenance Planning Safety & Quality Incident Elimination Breakdown Elimination Shop floor Meetings Shop floor Improvement Clean, Inspect, Lubricate Centerline Defect Logging My Tasks – Maintenance engineer My Tasks – Maintenance technician My Tasks – Line leader My Tasks – Operator A Significant reduction in unplanned downtime The EY Smart Daily Management application supports the enterprise-wide deployment and effective execution of standard daily work processes through visual data management, capability building and automated workflow. Digitally embedded standards not only drive consistency but also free up people to problem-solve and adapt to change. Standardization of critical daily work processes is a key building block of manufacturing resilience, empowering all shop floor staff to effectively execute critical tasks while providing a foundation for stability and flexibility in operations. Role-based “My Tasks” Smart daily management Page 7 Harness the power of digital through EY Smart Factory
  9. 9. The EY solution offers ► Off-the-shelf use cases that have been tried and tested ► Point solutions to shop floor challenges in specific areas such as yield, quality, maintenance and energy management ► Practical applications of digital technologies focused on creating value today and not in the distant future Smart Quality Management Smart Maintenance Management Smart Energy Management Smart Planning and Material Management • Defect logging • Maintenance planning • Condition-based predictive maintenance • Intelligent maintenance (AR) • Intelligent process optimization • Zero-loss yield • Energy management analytics • Supply chain synchronization • Supply chain integrity • Autonomous stock control Advanced analytics, AI, machine learning IT/OTcybersecurity Digital enablers Automation, robotics Digital twin Augmented reality, virtual reality Blockchain Smart Tasks Management (My Tasks) Given that the sheer range and velocity of emerging technologies can be overwhelming and distracting, the approach is to stay focused on tried-and-tested use cases that address specific productivity challenges and emphasize immediate value creation. Advanced technologies offer significant potential as a supporter of manufacturing resilience. However, the reality for most manufacturers is that the return on investment in shop floor digital adoption has been disappointing so far. We need to find more effective ways of scaling and capturing the value of digital transformation investments. Smart process optimization Page 8 Harness the power of digital through EY Smart Factory
  10. 10. EY Smart Factory IT architecture Azure Functions Azure Service Bus Azure BLOB Storage Azure CosmosDB Enterprise Active Directory SQL Database Azure Active Directory Enterprise Resource Planning (ERP) Enterprise Asset Management (EAM) Azure Container Registry Browser Mobile employees Dashboards Factory machines and systems Azure Kubernetes Service Smart Capability Progression Smart Daily Management Smart Process Optimization Custom manufacturing and supply chain processes and applications Azure IoT Edge Gateway Azure IoT Hub EY Smart Factory Solutions Microsoft Azure Business Integration Microsoft Azure Cold Path Analytics and StorageMicrosoft Azure Edge & IoT Hub Client Enterprise IT Client Enterprise Business Processes Client Operations Technology User experiences Vuforia Expert Capture PTC Solutions Page 9 Harness the power of digital through EY Smart Factory
  11. 11. EY Smart Factory applications elevate people performance, eliminate low-value activities and support manufacturing resiliency and zero touch Smart Factory applications can be adopted individually or in an integrated program Smart Factory applications can be adopted individually or in an integrated program Elevate the performance of your people and eliminate non- value-added work ... ... Elevate the performance of your equipment and eliminate loss by supporting a digital shop floor Resilient manufacturing operations 1 2 3 The Smart Deployment Console allows global, 24/7 digital access to the manufacturing excellence work system to guide self-directed teams on the journey to capability development and performance improvement. Standard work processes are transformed from white boards and clipboards to a digital environment that significantly improves adoption and execution across the network. Specific use cases harness disruptive technology to drive better decision-making and eliminate loss. Digital strategy and transformation management My tasks EY Smart Factory solution Smart capability progression Smart daily management Smart process optimization IWS Page 10 Harness the power of digital through EY Smart Factory
  12. 12. The EY solution offers ► Off-the-shelf use cases that have been tried and tested ► Point solutions to shop floor challenges in specific areas such as yield, quality, maintenance and energy management ► Practical applications of digital technologies focused on creating value today and not in the distant future Smart Quality Management Smart Maintenance Management Smart Energy Management Smart Planning and Material Management • Defect logging • Maintenance planning • Condition-based predictive maintenance • Intelligent maintenance (AR) • Intelligent process optimization • Zero-loss yield • Energy management analytics • Supply chain synchronization • Supply chain integrity • Autonomous stock control Advanced analytics, AI, machine learning IT/OTcybersecurity Digital enablers Automation, robotics Digital twin Augmented reality, virtual reality Blockchain Smart Tasks Management (My Tasks) Given that the sheer range and velocity of emerging technologies can be overwhelming and distracting, the approach is to stay focused on tried-and-tested use cases that address specific productivity challenges and emphasize immediate value creation. Advanced technologies offer significant potential as a supporter of manufacturing resilience. However, the reality for most manufacturers is that the return on investment in shop floor digital adoption has been disappointing so far. We need to find more effective ways of scaling and capturing the value of digital transformation investments. Smart process optimization Page 11 Harness the power of digital through EY Smart Factory
  13. 13. Digital twin and plant simulation for a $15b automotive supplier A digital twin not only identifies where the problem is, but it can predict the outcome of every possible course of action, helping the user to converge on the optimal solution. Plant-level digital win models using smart objectsBusiness questions Textiles Natural rubber Chemicals Steels Fabric Fabric bias cutter and sheet calendar Tire building machine Curing press Visual inspection Force variation X-ray Balance Financial report Finished tire Wire calendar Wire treatment cutter Bead construction Extruders Banbury mixer Bead, belt, carcass wire … Plant 1 Plant 2 Plant 3 Plant n Consolidated financials Suppliers Material inventory Plant models Distribution Sales What is the optimal product mix given our current manufacturing footprint? How can we optimize the production schedule to improve our throughput? Where should we allocateCapex to maximize profits? How will adding a new product impact production capacity? Where is our system bottleneck? Enterprise digital twin •Plant-level financials •Consolidated financials Benefits Better informed CapEx allocation taking into account product, manufacturing and schedule complexity through the exploration of alternative scenarios Leaner operations through improved material flow, lower WIP levels and reductions in overtime Improved single and multi - plant site/line selection and production schedules Real-time detailed shop floor scheduling and bottleneck identification Improved supply chain Increased SKU profitability by understanding the true cost of producing the SKU • • • • • • Consolidate plant models Page 12 Harness the power of digital through EY Smart Factory
  14. 14. Factory of the Future Benchmarking Study * Smarterchains study sponsored by EY from June 2019 to February 2020 Study overview* Factory of the future dimensions  Factory of the future leadership  Digital organization  Data-driven maintenance  Automated data flow  Automated material flow  Digital-ready infrastructure  360-degree factory visibility  Intelligent quality  Tech-augmented workforce  Zero-touch production Automationanddigitizationmaturity Operational excellence maturityLow High High Low Digital novice LeadingTechnology first Beginner Page 13 Harness the power of digital through EY Smart Factory
  15. 15. Are you manufacturing for the future or manufacturing the future? EY Smart Factory brochure Could a smart workforce be the key to manufacturing excellence? Thought leadership: What creating a high- performance culture in manufacturing really means EY Smart Factory Daily Management brochure EY Smart Factory Deployment brochure EY Smart Factory Process Optimization EY Smart Factory Production System EY Smart Factory solution overview EY Smart Factory point of view How pre-built, integrated applications can accelerate smart factory adoptionj Why a robust production system is a prerequisite for the smart factory How a digital coach can improve the deployment of a production system How the smart factory can make your shop floor smarter Additional information available at ey.com/mfg Page 14 How digital twins give manufacturers a real- world advantage How to navigate supply chain disruption with digital process mining and digital twins https://www.smarterch ains.com/factory-of- the-future-cpg-study- 2020-interactive Harness the power of digital through EY Smart Factory
  16. 16. Speaker contact information Jay Welsh, Principal, Ernst & Young LLP EY Americas Supply Chain & Manufacturing Leader jay.welsh@ey.com Mobile: +1 508 259 1188 Greg Wagner, Senior Manager, Ernst & Young LLP Ernst & Young G Supply Chain & Manufacturing greg.wagner@ey.com Mobile: +1 847 450 9310 Sachin Lulla, Principal, Ernst & Young LLP EY Global Digital Strategy & Transformation Leader Advanced Manufacturing & Mobility sachin.lulla@ey.com Mobile: +1 310 430 5393 Page 15 Harness the power of digital through EY Smart Factory
  17. 17. EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2020 Ernst & Young LLP. All Rights Reserved. US SCORE no. 09476 - 201US. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com

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