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TITLE “Smart” businesses use Smart Manufacturing

TITLE “Smart” businesses use Smart Manufacturing. PRESENTERS Dr. Craig Livingstone, Director, AP Benson Limited. DATE 4 th June 2013. OUR DOCUMENT REFERENCE 20130604/WG/Digital_2013/Smart_Mfr.ppt. Manufacturing Success. Manufacturing in the West.

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TITLE “Smart” businesses use Smart Manufacturing

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  1. TITLE “Smart” businesses use Smart Manufacturing PRESENTERS Dr. Craig Livingstone, Director, AP Benson Limited DATE 4th June 2013 OUR DOCUMENT REFERENCE 20130604/WG/Digital_2013/Smart_Mfr.ppt

  2. Manufacturing Success

  3. Manufacturing in the West Overseas manufacturing costs are increasing Manufacturing is no longer important in developed economies c.£150bn GVA 80%+ of exports 12% of UK economy, 8.3% of workforce “Real” manufacturing has moved off shore to lower cost-base centres Managing extended supply chains is not easy Britain & Wales can survive as innovators and entrepreneurs and manufacturing can be outsourced Overseas centres are developing capable innovation and design centres

  4. British manufacturers can compete Wales has important players in the aerospace, the automotive and the optoelectronics sector supply chains and a well established process engineering sector British manufacturers can compete • BUT: • We cannot rely on outdated aged plant and machinery... • ...and we cannot rely on cheap labour and cheap parts... • ...and we do need to invest in competitiveness with world class manufacturing and business management systems. • We need to compete in a worldwide open and rapidly developing market.

  5. Failure

  6. Success

  7. What is Smart Manufacturing?

  8. A future vision …the integration of data… • Smart Manufacturing is: …with process expertise… …to enable “evidence based” management… …of manufacturing.

  9. Smart Connections The Smart Grid Real time information flows Reporting on availability, traceability & movement of products Optimise resource and energy use vs. production Other Network Partners Create agile networks able to respond to Rapid demand changes Higher product availability & lower inventories Customers Suppliers OEM Distribution Centres Your Smart Factory Mass customisation Traceable Recyclable / remanufactured Close links into supply chain/networks Optimise production performance Optimise production and minimise cost Business Systems Demand

  10. Pedigree • Smart Manufacturing Leadership Coalition – USA-based lobbying group • Developed from National Science Foundation grant in 2008 • to support US industry competitiveness • to address off-shoring • But challenged by ability to apply same techniques globally • However off-shoring is a weakening trend due to: • Education & Cost – Equalising (everyone is “lean”) • Logistics – Long supply chains are more risky • Resulting in a more level but highly competitive playing field

  11. A lot of future promise but... ...there are practical steps that can be taken by British businesses today... ...to ensure we are ready to join in as smart develops. Our Assessment • Sold with a certain amount of hype • The promise is big but the message is confusing • Incorporates other IT ideas like “big data” • Timescales up to 2020 in US plans

  12. USA Ambition/Goals • Operating Efficiency +20% • Energy Efficiency +25% • New Product and Services Sales +25% • Moves into “Adjacent” Industries +25% • Costs -30% • Cycle Times -40% • Safety Incidents -25% • Water Use -40% • Supply chain wide tracking and traceability of products in production • Increases in skills and job sustainability • Cradle to grave (to cradle) product lifecycle maps • Double SME Capacity

  13. Phases • 1. Plant and enterprise wide integration 2. Development of flexible manufacturing based on: 3. Process innovation led by greater analysis, innovation & identification of market disrupting opportunities analysis of customer demand factory planning performance data and options modelling Predicted: the $3000 car and the $300 PC

  14. Barriers and Enablers • Barriers: • incorporating and integrating customer intelligence and demand dynamics... • the need for greater affordability... • operator usability... • protection of proprietary [company] data... • systems interoperability... • and security. • Enablers: • In-house integration of business and manufacturing systems • Smart tooling and factory floor systems (CNC/PLC, AIDC) • Real time reporting and analysis: Business Information Management • Smart resource metering / “the smart grid” • Adding sensors and data gathering points (Raspberry Pi and Gadgeteer etc.) • Dynamic modelling of supply chains/networks, dynamic planning and scheduling across SME/OEM supply chain networks • Secure data exchange

  15. Outcomes Ability to meet customer data demands (openness, visibility, traceability) Ability to participate in smart supply chain networks Ability to model and optimise processes in company and across supply chains / networks (including resource use and energy use management) Ability to anticipate and schedule maintenance (“improved asset management”) Improved use of automated monitoring (reduce abnormal and catastrophic events) Ability to improve safety monitoring and performance Ability to improve competitiveness through efficiency, optimisation and agility Manage through dashboard performance tools – real time reporting of key performance indicators, dynamic monitoring, dynamic visualization of critical data, like a car dashboard (including energy & resource management)

  16. Smart manufacturing: Flavours • “Flavours” of smart for... • ...Batch... • ...Continuous... • ...Discrete... • ...manufacturing processes

  17. Priority Actions in Smart

  18. Action 1:Modelling and simulation Understanding business processes and opportunities for optimisation at the supply chain / network level (better tools needed?) Integration of human factors and decisions into models Integrate energy/resource efficiency decision tools • Community • platforms – • integrate supply • chains and create • agile “virtual • plants” able to • respond to • changes in • customer • demand • Develop, • improve and • implement • software and • computing • architectures • for manufacturing • decision-making • Integrate human • factors and • decision points Extend integrated business management systems to manage energy and resource use/costs

  19. Action 2: Affordable collection and management systems Develop supply chain connections (protocols and interfaces, communications standards) • Develop robust data collection frameworks • (sensors/fusion, machine and user interfaces, • data recording and reporting and analysis tools)

  20. Action 3: Enterprise-wide Integration Optimisation through reporting and response (dashboard reports, metrics, common data architecture and language) Develop methods to integrate SMEs and OEMs Integrate partner process models (Business Systems, Manufacturing Plants, and Suppliers) • Action 4: Education and training Enhance education and training to build workforces Fit for Smart

  21. Practical Steps Towards Smart

  22. Step 1 Integrate information technology, sensors, motors/actuators, computerized controls, production management / ERP Work towards an integrated business management system Process, cost, efficiency visibility – real time reporting Develop towards “manufacturing intelligence” • Do this first within your own company • Be ready to do it across your supply chain • network • Lower cost options are becoming more available

  23. Step 2 • BE ABLE TO: • Put together, analyse and present business and manufacturing • performance data in real time • Change plans to optimise production and resource use • Respond to changes in demand • Model business processes and supply chains to assist in • optimisation • BE READY TO: • Connect with supply chain • partners and potential new • partners • WORK TO OPTIMISE: • Costs, efficiencies, energy • conservation etc.

  24. Step 3 Some processes have more opportunity for flexibility / optimisation than others – high tech manufacturing vs. every day process engineering manufacturing. Consider integration with emerging cost management options – scheduling vs. the “smart grid” – make things when energy costs less (USA DoE Project) Manage for process efficiency Manage product mass-customisation Improve product tracking and traceability

  25. Benefits • Integration of systems and data: • ...leads to more profound analysis... • ...and the elimination of wastes... • ...promotion of flexible and efficient processes... • ...and to innovative and “disruptive” products • Plant wide integration / Integrated business systems • Demand Driven supply Chains • Sustainable Production • Ability to participate in smart supply chains • Development of a smart workforce

  26. Case StudiesMoving in the Right Direction

  27. Invertek Integrating manufacturing management systems and ERP

  28. FSG Tool and Die Integrating high end machine tools, manufacturing planning and ERP

  29. Texturing Technology and TATA Supply chain integration and traceability

  30. Relevance to non-manufacturers • Service and professional services businesses • E.g. HCD and Contract Services

  31. Next Steps

  32. Key goal: lowering cost of entry • “Community Sourcing” Development of: “Smart” pilots and demonstration sites National centres of excellence Develop, improve and implement real time visualisation and simulation tools (real time planning, tracking / traceability – materials and products)

  33. Collaborative Development Develop consortia to develop integrated supply chains / networks - Goals: Test and develop methods for efficient flexible manufacturing Develop smaller, incremental projects - Each stage should develop something that delivers ROI and practical benefits in return for a small incremental project –Develop a road map made up of small projects – Maybe a multi-year programme but delivered in increments with in-year benefits Map proposed actions to practical benefits for participants The roadmap needs to accommodate the ability of participants to devote time to projects Practical projects involving consortia of industry players are preferable to academic or government led projects, but academia and government may have roles Open to participants at equitable investment levels (inc. SMEs) Work out how IPR will be owned

  34. Sources of Knowledge • Welsh • Government • E-Business • Programme • Events, • Industry • Associations, • Universities • WRAP • Cymru – • Resource • Efficiency • support • Business • colleagues • and partners • Private • sector • suppliers • and • consultants • The High Value Manufacturing Catapult • Advanced Manufacturing Research Centre (University of Sheffield), Sheffield • Nuclear Advanced Manufacturing Research Centre (Universities of Manchester and Sheffield) • Manufacturing Technology Centre, Coventry • Advanced Forming Research Centre (University of Strathclyde), Glasgow • National Composites Centre (University of Bristol), Bristol • Centre for Process Innovation, Wilton and Sedgefield • Warwick Manufacturing Group (University of Warwick), Coventry • Publications (including online): • SMLC: “Implementing 21st Century Smart Manufacturing” June 24,2011 • US Academic/Industrial forum – focus: lobbying

  35. Thank you!Questions / Discussion

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