FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY

 
FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
White Paper

Fourth Industrial Revolution
Beacons of Technology and
Innovation in Manufacturing

In collaboration with McKinsey & Company
January 2019
FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
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FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
Contents

Foreword                                                                                                                          5
Executive summary                                                                                                                 6
1. Lighthouses: Sites Embracing the Megatrends of the Fourth Industrial Revolution                                                8
    Seeing the light: A radical leap forward for Fourth Industrial Revolution front runners                                       8
    Identifying lighthouses                                                                                                       8
2. Overview of the Global Lighthouse Network                                                                                      10
3. Understanding Lighthouses: Characteristics, Differentiators and Success Factors                                                14
    Lighthouse characteristics                                                                                                    14
         Injectors of human capital                                                                                               14
         Industry leaders that are resetting benchmarks                                                                           14
         Open innovators and collaborators                                                                                        15
         Large and small companies                                                                                                15
         From emerging and developed economies                                                                                    15
         High impact with minimal replacement of equipment                                                                        16
4. How Do the Lighthouses Achieve Impact at Scale?                                                                                17
    Charting a course for scale: Two routes                                                                                       17
    Value drivers for impact at scale                                                                                             18
    Scale-up enablers                                                                                                             18
    The current state of lighthouses                                                                                              18
    Three tools to scale Fourth Industrial Revolution technologies in production and overcome                                     19
    pilot purgatory
5. Successful Deployment at Scale: A Close Look at Two Lighthouses                                                                20
    Procter & Gamble (P&G) Rakona, Czech Republic: Growth through cost leadership                                                 20
         Site history                                                                                                             20
         An inclusive vision                                                                                                      20
         Top five use-cases                                                                                                       20
         Achievements, impact and the road ahead                                                                                  21
    Rold Cerro Maggiore, Italy: Fourth Industrial Revolution implementation in SME                                                22
         Before and after: Transformational changes                                                                               22
         Key enablers                                                                                                             22
         Top five use-cases                                                                                                       22
         Achievements, impact and the road ahead                                                                                  23
6. Call to Action                                                                                                                 24
    Why act?                                                                                                                      24
         The Fourth Industrial Revolution is essential to breaking out of productivity stagnation                                 24
         The world is under stress                                                                                                24
         The Fourth Industrial Revolution presents multifaceted opportunities and challenges                                      24
    What needs to be done?                                                                                                        24
         Augment, instead of replace, the operator                                                                                24
         Invest in capability-building and lifelong learning                                                                      24
         Diffuse technologies throughout geographical areas and include SMEs                                                      25
         Protect organizations and society through cybersecurity                                                                  25
         Collaborate on open Fourth Industrial Revolution platforms and handle data carefully                                     25
         Address the climate change challenge with Fourth Industrial Revolution technologies                                      25

                                                                      Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   3
FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
Contents

    Who needs to act?                                                                                 25
        Organizations with a lighthouse                                                               25
        Organizations without a lighthouse                                                            25
        Technology providers, start-ups and universities                                              25
        An opportunity to form a new, global learning platform for the Fourth Industrial Revolution   25
Annex: A Look Inside the Lighthouses – Inside Perspectives                                            26
1. Value Drivers                                                                                      26
    Big data decision-making                                                                          26
        Bosch Automotive in Wuxi, China                                                               26
        Christophe Chapdelaine, Senior Vice President Manufacturing and Quality Management,           27
        Bosch Automotive Diesel Systems Wuxi
        Babur Ozden, Founder and CEO, Maana                                                           27
    Democratized technology on the shop floor                                                         27
        Natan Linder, CEO and Co-founder, Tulip Interfaces                                            27
        Melonee Wise, CEO, Fetch Robotics                                                             28
    Agile working mode                                                                                28
        Fast Radius in Chicago, USA                                                                   28
        Lou Rassey, CEO, Fast Radius                                                                  29
        Bosch Automotive in Wuxi, China                                                               29
    Minimal incremental cost to add use-cases                                                         29
        Microsoft’s manufacturing site in Suzhou, China                                               29
        Darren Coil, Director of Business Strategy, Microsoft                                         30
        Melonee Wise, CEO, Fetch Robotics                                                             30
    New business models                                                                               30
        European consumer electronics manufacturer (company name undisclosed)                         30
2. Scale-up Enablers                                                                                  32
    Fourth Industrial Revolution strategy and business case                                           32
        BMW Group                                                                                     32
        Christian Patron, Head of Innovations and Digitalization in Production System, and Marcel     32
        Eigner, Strategy Digitalization and Smart Data Analytics Production System, BMW Group
    IoT architecture built for scale-up                                                               33
        Hewlett Packard Enterprise                                                                    33
        Chen Linchevski, Co-Founder and CEO, Precognize                                               33
    Capability-building through acquiring new skills                                                  34
        Tata Steel in IJmuiden, Netherlands                                                           34
        Hans Fischer, CEO, Tata Steel in Europe                                                       35
        Daiane Piva, Improvement Consultant Energy Efficiency, Tata Steel                             35
    Workforce engagement                                                                              35
        Schneider Electric in Le Vaudreuil, France                                                    35
        Lilian Aube, Le Vaudreuil Plant Union Representative, Schneider Electric                      35
        Sophie Grugier, Senior Vice President, Global Supply Chain Operations, Schneider Electric     36
Contributors                                                                                          37
Project Team                                                                                          37
Endnotes                                                                                              38

4   Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
Foreword

                   Emitting powerful light that pierces fog and darkness, lighthouses are vital to maritime navigation. They
                   serve as beacons and guides, ensuring safe passage for shipping. At the World Economic Forum’s
                   Annual Meeting 2018 in Davos-Klosters, Switzerland, leaders from public and private organizations
                   decided to seek out manufacturers in a broad range of industries who are leading the way in Fourth
                   Industrial Revolution innovation. Connected by the World Economic Forum’s platform, these model
                   factories – recognized as Fourth Industrial Revolution “lighthouses” – are beginning a unique learning
                   journey that will benefit the production environment.

                   Manufacturing has experienced a decade of productivity stagnation and demand fragmentation;
                   innovation is long overdue. Organizations that have taken Fourth Industrial Revolution innovation to
Helena Leurent,    scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal
Head of Shaping    displacement of workers. However, most companies appear to be stuck in “pilot purgatory”.
the Future         Widespread adoption of Fourth Industrial Revolution technology at scale, through the combined efforts
of Advanced        of companies and governments, can lead to a sizeable increase in global wealth production, benefiting
Manufacturing      people throughout society.
and Production
Member of          The Fourth Industrial Revolution in manufacturing remains a top priority for many leaders of private
the Executive      and public organizations. It is having an enormous disruptive impact on value chains, industries and
Committee, World   business models. With one-third of the total economic value of the internet of things (IoT) coming
Economic Forum     from production,1 factories are the centre of gravity of the ongoing revolution. While manufacturing
                   represents 16% of global GDP,2 manufacturing industries account for 64% of global R&D spend.3
                   However, there is potential for worker displacement if changes are not handled properly. Strengthened
                   collaboration among stakeholders is needed to understand unexpected consequences and manage
                   the transition.

                   “Lighthouses” are demonstrators of digital manufacturing and globalization 4.0, and exhibit all of the
                   essential characteristics of the Fourth Industrial Revolution. Moreover, they confirm the hypothesis that
                   they have the potential to generate new economic value, driven by improvements in the full spectrum
                   of production value drivers: resource productivity and efficiency, agility and responsiveness, speed
                   to market and customization to meet customer needs. Transforming existing production systems,
                   innovating value chains and building new business models with disruptive potential for established
Enno de Boer,      businesses can create value.
Partner and
Global Leader      Lighthouses highlight the global nature of production – for example, the lighthouse network includes
Manufacturing,     German-owned factories in China and a site in Ireland owned by a US company. This shows that
McKinsey &         innovation is equally relevant in all geographical areas and contexts, from sourcing basic materials to
Company, USA       process industries to advanced manufacturers addressing specialized needs. Furthermore, it proves
                   that companies of all sizes, from established global blue-chips to small local businesses with fewer
                   than 100 employees, can achieve radical Fourth Industrial Revolution innovation.

                   Lighthouses value collaboration and open their doors to thousands of visitors annually, recognizing
                   that the benefits of this collaborative culture far surpass potential competitive threats. They can serve
                   as an inspiration for defining a strategy, improving the skills of the workforce, collaborating with Fourth
                   Industrial Revolution communities and managing changes from the shop floor throughout the value
                   chain. While they vary in size, industry and geographic location, lighthouses embody nine common
                   distinguishing characteristics. This white paper explores findings derived from these characteristics
                   and calls on industry and government leaders to act. Governments, universities, technology providers
                   and companies are encouraged to use this unique network to navigate and accelerate the inclusive
                   diffusion of technology.

                   The Fourth Industrial Revolution in manufacturing presents the next engine of economic growth,
                   ushering in opportunities to learn and embed values in a way that past revolutions could not. The
                   adoption of technology, guided by an inclusive vision for a better world, can yield a stronger, cleaner,
                   global society.

                                                                    Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   5
FOURTH INDUSTRIAL REVOLUTION BEACONS OF TECHNOLOGY AND INNOVATION IN MANUFACTURING - WHITE PAPER IN COLLABORATION WITH MCKINSEY & COMPANY
Executive summary

Many companies are piloting Fourth Industrial Revolution                                  –– These sites represent both large and small companies.
initiatives in manufacturing, but few have managed                                           Fourth Industrial Revolution innovation is accessible
to integrate Fourth Industrial Revolution technologies                                       not only to large organizations but also to small- and
at scale to realize significant economic and financial                                       medium-sized enterprises (SMEs).
benefits. The World Economic Forum, in collaboration
with McKinsey & Company, scanned more than 1,000                                          –– Lighthouses can be found in emerging and developed
leading manufacturers. Subsequent outreach enabled                                           economies. Fourth Industrial Revolution technologies
visits to the most advanced sites and identification of the                                  are also paying off in manufacturing environments that
few factories that are true guiding lights in the context of                                 benefit from low labour costs.
Fourth Industrial Revolution production: lighthouses.
                                                                                          –– Lighthouses achieve high impact with minimal
This select group of manufacturing sites represent the                                       replacement of equipment. Most were created by
leading edge of adopting technology at scale. These sites                                    transforming existing brownfield operations. Optimizing
serve as beacons for the world, exemplifying the type                                        existing infrastructure and augmenting it with new
of production approach that can drive the next engine                                        machinery can deliver many benefits.
of global economic growth. They demonstrate how
forward-thinking engagement of technology can create                                      Lighthouses achieve impact at scale in different ways. The
a better, cleaner world through new levels of efficiency                                  Forum has identified two principal routes to scale by which
in manufacturing. Likewise, they illustrate how Fourth                                    manufacturing pioneers can chart their course. These routes
Industrial Revolution technology at scale can transform                                   are not mutually exclusive; rather, they can complement
the nature of work itself by engaging and improving the                                   each other:
skills of human workers with minimal displacement.
                                                                                          –– Innovate the production system: expand competitive
Three technological megatrends are the principal drivers                                     advantage through operational excellence.
of this transformation in production: connectivity,
intelligence and flexible automation. Front-runner                                        –– Innovate the end-to-end value chain: create new
production sites that have embraced these megatrends                                         businesses by changing the economics of operations.
at scale have seen a step change in performance.
These “lighthouse factories” have taken Fourth Industrial                                 Lighthouses have employed five value drivers to create
Revolution technology from pilots to integration at scale,                                impact at scale using Fourth Industrial Revolution
thus escaping the inertia of “pilot purgatory”, in which                                  technologies. They demonstrate four distinct capabilities
many organizations remain.                                                                that serve as scale-up enablers. The annex of this white
                                                                                          paper provides perspectives from lighthouses that exemplify
Lighthouses serve as real-world evidence to dispel                                        these value drivers or enablers.
widespread myths and misunderstandings posing
obstacles to the adoption of innovative technology at                                     The value drivers are:
scale. These beacons shed light on the characteristics,
differentiators and success factors that realize optimal                                  ––   Big data decision-making
scaling.                                                                                  ––   Democratized technology on the shop floor
                                                                                          ––   Agile working models
–– Lighthouses are injectors of human capital. Rather                                     ––   Minimal incremental cost to add use-cases
   than replacing operators with machines, lighthouses                                    ––   New business models
   are transforming work to make it less repetitive, more
   interesting, diversified and productive.                                               The four scale-up enablers are:

–– Lighthouses are industry leaders resetting benchmarks.                                 ––   Fourth Industrial Revolution strategy and business case
   They have moved beyond the continuous improvement                                      ––   IoT architecture built for scale-up
   efforts that have characterized factories for decades,                                 ––   Capability-building through acquiring new skills
   instead making a change that resets benchmarks.                                        ––   Workforce engagement

–– They are open innovators and collaborators. They                                       In addition to the perspectives offered in the annex, this
   engage a trisector innovation system comprising                                        white paper offers an in-depth look at two lighthouses
   business, government and the social sector, including                                  operated by two companies that differ substantially in size.
   academia.                                                                              The first, Procter & Gamble’s Rakona plant, represents

6   Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
a large multinational. The other, Rold Cerro Maggiore, is
operated by a small SME headquartered in Italy. The story
of change at each of these sites offers valuable insights into
the broad transformation occurring in the manufacturing
environment.

The World Economic Forum issues a call to action to break
out of productivity stagnation and address the significant
challenges – such as climate change, resource scarcity
and an ageing workforce – the world is facing. The Forum
suggests six principle-based actions to ensure the Fourth
Industrial Revolution in manufacturing delivers the maximum
positive benefit for society:

–– Augment, instead of replace, the operator.
–– Invest in capability-building and lifelong learning.
–– Diffuse technologies throughout geographical areas and
   include SMEs.
–– Protect organizations and society through cybersecurity.
–– Collaborate on open Fourth Industrial Revolution
   platforms and handle data carefully.
–– Address the challenge of climate change using Fourth
   Industrial Revolution technologies.

The responsibility for action lies with both the public and
private sectors, and the Forum encourages them to
engage the network of lighthouses to be part of a unique
learning journey. By engaging the findings and example of
the lighthouse network, organizations and governments
can realize the great potential that lies with the Fourth
Industrial Revolution in production. Coupling this knowledge
and technology with a commitment to environmental
stewardship and social responsibility can play a role in
driving the next economic growth engine towards a brighter
future for all of society.

                                                                 Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   7
1. Lighthouses: Sites Embracing the Megatrends of
the Fourth Industrial Revolution
Seeing the light: A radical leap forward for                                                 thus realizing significant financial and operational benefits.
Fourth Industrial Revolution front runners                                                   Qualification as a lighthouse requires meeting high standards
                                                                                             in four categories: significant impact achieved; successful
                                                                                             integration of several use-cases*; a scalable technology
Three technological megatrends are the principal drivers of
                                                                                             platform; and strong performance on critical enablers such
a Fourth Industrial Revolution transformation in production:
                                                                                             as managing change, building capability and collaborating
connectivity, intelligence and flexible automation (Figure 1).
                                                                                             with a Fourth Industrial Revolution community.
Lighthouses have embraced these megatrends and the
results are compelling.
                                                                                             Identification of lighthouses followed a comprehensive
Adoption of Fourth Industrial Revolution technologies at
                                                                                             scanning of more than 1,000 leading manufacturers in all
scale can have a radical impact upon organizations. A close
                                                                                             industries and geographical areas. Contact with more than
look at one of these three megatrends makes it clear just
                                                                                             150 of the most advanced companies yielded proposals
how powerful this effect can be. For example, a McKinsey
                                                                                             from many companies’ most sophisticated sites to be
Global Institute analysis projects a remarkable gap between
                                                                                             considered lighthouses. Site visits were carried out to
companies that adopt and absorb artificial intelligence (AI)
                                                                                             document findings, which were then presented to a Fourth
within the first five to seven years and those that follow or
                                                                                             Industrial Revolution expert panel of members from private
lag behind. The analysis suggests that AI adoption “front
                                                                                             organizations, universities and technology pioneers. This
runners” can anticipate a cumulative 122% cash-flow
                                                                                             panel selected 16 lighthouses and recognized them as the
change, while “followers” will see a significantly lower impact
                                                                                             most advanced production sites, including factories operated
of only 10% cash-flow change (Figure 2).
                                                                                             by Bayer, BMW, Bosch, Danfoss, Fast Radius with UPS,
This shows the importance of early adoption of technology,
                                                                                             Foxconn, Haier, Johnson & Johnson, Phoenix Contact,
since companies that wait risk missing a large share of the
                                                                                             Procter & Gamble, Rold, Sandvik Coromant, Saudi Aramco,
benefits. Company leaders who move to implementation
                                                                                             Schneider Electric, Siemens and Tata Steel (Figure 3).
early, rather than waiting for decreased technology and
                                                                                             Myths and misunderstandings pose obstacles to the
transition costs, will realize the greatest benefit. Thus, the
                                                                                             adoption of the Fourth Industrial Revolution. Dispelling
largest factor here is related to the competitive advantage
                                                                                             these is vital to understanding how accessible the revolution
of front runners, which by far outweighs the higher transition
                                                                                             is to organizations of all kinds. With visionary leadership,
costs and capital expenditure related to the early adoption.4
                                                                                             companies large and small can embark on an innovation
                                                                                             journey and realize the benefits of digital transformation. The
Identifying lighthouses                                                                      Forum’s analysis of lighthouses has provided meaningful
                                                                                             insights that clarify the path to successful adoption at scale
The lighthouses of the Fourth Industrial Revolution are                                      of the Fourth Industrial Revolution. These beacons of light
the factories that have taken Fourth Industrial Revolution                                   cut through the fog and provide clarity to organizations
technology from pilot schemes to integration at scale,                                       throughout the manufacturing environment.

Figure 1: Key technology megatrends transforming production

                                                                                                       Creates links between
                                                                                                       discrete network nodes,
                                                                                                       increasing visibility
                                                                                   Connectivity

                      Automates event                                                                             Incorporates
                      recognition and                                                                             response mechanisms,
                      translation for                                                         Flexible            automation and remote
                      decision-making                             Intelligence                                    movement
                                                                                             automation

* Use-case: application of one or multiple Fourth Industrial Revolution technologies in a real production environment to address a business problem

8    Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
Figure 2: Economic gains by AI adoption front runners, followers and laggards5

              Relative changes in cash flow by AI adoption cohort                             Front-runner breakdown %                                SIMULATION
              % change per cohort, cumulative                                                 change per cohort
                                                                                                                    -18
                130
                                                                             Front-
                120                                                    122   runners                             135                          -77
                                                                             (absorbing
                110                                                          within first
                100                                                          5 to 7                                                                          122
                                                                             years)                 82
                 90
                 80
                 70                                                                             Economy- Output    Transition Capital   Total
                                                                                                wide     gain/loss costs      expenditure
                 60                                                                             output   from/to
                 50                                                                             gains    peers

                 40
                 30                                                                           Laggard breakdown
                                                                                              % change per cohort
                 20                                                          Follower
                                                                             (absorbing
                 10                                                    10    by 2030)               11
                  0
                                                                             Laggard                              49                                         23
                -10                                                          (do not
                -20
                                                                             absorb                                             19
                                                                       -23   by 2030)                                 4
                -30                                                                             Economy- Output    Transition Capital   Total
                  2017          20             25               2030
                                                                                                wide     gain/loss costs      expenditure
                                                                                                output   from/to
                                                                                                gains    peers

                The increasing importance of data and interconnectivity in manufacturing changes the dynamics of technology adoption:
                Waiting for cheaper and better technology does not pay off, since frontrunners are expected to capture largest benefits.

Note: Numbers are simulated figures to provide directional perspectives rather than forecasts.
Source: McKinsey Global Institute analysis

Figure 3: Global network of lighthouse factories

                                                                                                                                                           Lighthouses
                                                                  Phoenix Contact
                                                                  Industrial
                                                                  Automation, DE

                                                                                  Sandvik Coromant
                                                                                  Industrial Tools, SE

                                                                                  Procter & Gamble
                                          Tata Steel                              Consumer
                                          Steel Products, NL                      goods, CZ
                                                                                                         Siemens
                                                                                                         Industrial Automation
                                                                                                         Products, CN
                                                                                                                                             Danfoss
                                                                                 BMW Group                                                   Industrial Equipment, CN
                                      Johnson & Johnson
                                                                                 Automotive, DE
                                      DePuy Synthes
   Fast Radius with UPS               Medical Devices, IR
                                                                                                                                             Haier
   Additive Manufacturing, US                                                                                                                Home Appliances, CN

                                                                                                                                                Bosch
                                                                                                  Bayer                                         Automotive, CN
                                                     Schneider Electric                           Division
                                                     Electrical                                   Pharmaceuticals, IT
                                                     Components, FR
                                                                                                                                            Foxconn Industrial Internet
                                                                                      Saudi Aramco
                                                                                                                                            Electronics, CN
                                                                                      Gas Treatment, SA
                                                                                Rold
                                                                                Electrical Components, IT

                                                                                            Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   9
2. Overview of the Global Lighthouse Network

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                                                                                              Implemented 30+ use cases to meet 200% increase inin
                                      Bosch        Automotive in
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                                      Danfoss
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                                                                                              Developed
                                                                                              Developed digital
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                                                                                                                manufacturing  transformation
                                                                                                                               transformation  to
                                                                                                                                               to meet
                                                                                                                                                  meet
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                                      Haier in Qingdao,
                                               Qingdao, China
                                                        China                                 Developed
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                                      Haier in Qingdao,
                                               Qingdao, China
                                                        China                                 consumer
                                                                                              Developed
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                                                                                                                                                 model
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                                            in Qingdao,
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                                                        China                                 Developed
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                                      Haier                                                   Developeddemand
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                                                                                                                                                  meet
                                      Haier in Qingdao, China
                                            in Qingdao, China                                 consumer
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                                                                                                                                                 model
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                                      Johnson
                                      Johnson & & Johnson
                                                   Johnson DePuy
                                                           DePuy Synthes
                                                                 Synthes                      Global
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                                                                                                                center focused
                                                                                                                       focused onon material
                                                                                                                                     material science
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                                                                                                                                                       and
                                      Johnson
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                                                                                                                                 on  material
                                                                                                                                     material science
                                                                                                                                              science  and
                                                                                                                                                       and
                                      in Cork,
                                      Johnson
                                      in Cork, Ireland
                                                &  Johnson
                                         Cork, Ireland
                                               Ireland     DePuy Synthes                      technology
                                                                                              Global
                                                                                              technology  innovation,
                                                                                                     innovation center
                                                                                                          innovation, with
                                                                                                                      with  in-house
                                                                                                                       focused   on
                                                                                                                            in-house technical
                                                                                                                                     material  capability
                                                                                                                                              science
                                                                                                                                     technicalscience  and
                                                                                                                                               capability
                                      Johnson
                                      in
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                                                &  Johnson
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                                                                 Synthes                      Global
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                                                                                                                      with
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                                      in Cork,
                                      Johnson  Ireland
                                                & Johnson DePuy Synthes                       Global innovation
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                                      in
                                      in
                                      in
                                         Cork,
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                                         Cork,
                                               Ireland
                                               Ireland                                        and knowledge
                                                                                              technology
                                                                                              and  knowledge
                                                                                              technology
                                                                                                   knowledge
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                                                                                                              development
                                                                                                          innovation, with
                                                                                                              development
                                                                                                          innovation, with
                                                                                                              development
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                                                                                                                            in-house
                                                                                                                            in-house
                                                                                                                            in-house
                                                                                                                                     technical
                                                                                                                                     technical
                                                                                                                                     technical
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                                         Cork, Ireland
                                      Johnson
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                                                                                                Global
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                                                                                              and             development
                                                                                                       innovation  center
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                                                                                                   knowledge          with
                                                                                                              development  focused
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                                                                                                                                     technical    science
                                                                                                                                               capability and
                                                                                              and
                                                                                              and  knowledge
                                                                                                   knowledge  development
                                                                                                              development
                                      in Cork, Ireland                                          technology
                                                                                              and  knowledgeinnovation,
                                                                                                              developmentwith in-house technical capability
                                                                                                and knowledge development

                                      Phoenix
                                      Phoenix Contact
                                              Contact in
                                                      in Bad
                                                         Bad Pyrmont
                                                             Pyrmont                          Market
                                                                                              Market demand
                                                                                                     demand shift
                                                                                                            shift towards
                                                                                                                  towards   higher
                                                                                                                            higher  level
                                                                                                                                    level of
                                                                                                                                          of customization
                                                                                                                                             customization
                                      Phoenix
                                      Phoenix Contact
                                              Contact in Bad
                                                      in Bad Pyrmont
                                                         Bad Pyrmont
                                                             Pyrmont                          Market
                                                                                              Market demand shift
                                                                                                     demand shift towards
                                                                                                            shiftoftowards
                                                                                                                  towards   higher
                                                                                                                            higher  level of
                                                                                                                                    level of customization
                                                                                                                                          of customization
                                                                                                                                             customization
                                      and Blomberg,
                                      Phoenix
                                      and           Germany
                                              Contact
                                          Blomberg,   in
                                                    Germany                                   met
                                                                                              met by
                                                                                              Market
                                                                                                  by deployment
                                                                                                     demand
                                                                                                     deployment  of various
                                                                                                                    various digital
                                                                                                                            higher
                                                                                                                            digital manufacturing
                                                                                                                                    level
                                                                                                                                    manufacturing  use
                                                                                                                                                   use  cases
                                                                                                                                                        cases
                                      Phoenix
                                      and     Contact
                                          Blomberg,
                                      Phoenix         in Bad
                                                         Bad Pyrmont
                                                    Germany
                                              Contact in     Pyrmont                          Market
                                                                                              met by
                                                                                              Market demand shift
                                                                                                            shiftoftowards
                                                                                                     deployment
                                                                                                     demand       towards
                                                                                                                    various higher
                                                                                                                            digital
                                                                                                                            higher  level of
                                                                                                                                          of customization
                                                                                                                                             customization
                                                                                                                                    manufacturing
                                                                                                                                    level          use  cases
                                      and Blomberg,
                                      Phoenix
                                      and           Germany
                                              Contact
                                          Blomberg,   in Bad
                                                    Germany  Pyrmont                          met
                                                                                              met by
                                                                                              Market
                                                                                                  by deployment
                                                                                                     demand shift
                                                                                                     deployment  of
                                                                                                                 of various
                                                                                                                  towards
                                                                                                                    various digital
                                                                                                                            higher
                                                                                                                            digital manufacturing
                                                                                                                                    level of       use  cases
                                                                                                                                             customization
                                                                                                                                    manufacturing  use  cases
                                      and
                                      and Blomberg,
                                          Blomberg, Germany
                                                    Germany                                   met
                                                                                              met by
                                                                                                  by deployment
                                                                                                     deployment  of
                                                                                                                 of various
                                                                                                                    various digital
                                                                                                                            digital manufacturing
                                                                                                                                    manufacturing  use
                                                                                                                                                   use  cases
                                                                                                                                                        cases
                                      and Blomberg, Germany
                                      Phoenix Contact in Bad Pyrmont                          met by deployment  of various digital manufacturing  use
                                                                                               Market demand shift towards higher level of customizationcases
                                      and Blomberg, Germany                                    met by deployment of various digital manufacturing use cases

     Source: Lighthouse sites
     1
       Overall Equipment Effectiveness; 2 Full-Time Equivalent; 3 Business to Consumer; 4 Virtual Reality

10      Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
Top 5 use cases                                   Impact                                                      Highlight
Digital performance management                     35%     OEE                                                A group-wide strategic
                                                                                                              initiative aims at digitizing
Mixed reality change overs                         30%     Change over time
                                                                                                              the customer experience
Advanced analytics on deviations                   80%     Deviations                                         and internal operations, as
                                                                                                              well as developing new
Advanced analytics on breakdowns                   50%     Breakdown
                                                                                                              business models
Integrated people and asset scheduling             75%     Batches per FTE²
Data analytics and predictive maintenance          25%     Unplanned downtime of press                         Strategy focused on
                                                                                                               effectiveness, the right
Smart autonomous logistics transports              35%     Logistics cost
                                                                                                               mindset and easy access
Smart maintenance and assistance                   5%      Rework                                              to improve quality, cost
                                                                                                               and productivity
Collaborative robotics and automation              5%      Efficiency in assembly
IoT enabled machine condition monitoring           >90% Benchmark OEE                                         Big data from connected
                                                                                                              machines used to improve
Digital inventory management                       >10% Total inventory
                                                                                                              operations, and agile
Digital value stream mapping                       15%     Unit output                                        proofs-of-concept support
                                                                                                              rapid deployment of new
Digital tool life-cycle management                 >10% Tool inventory
                                                                                                              use cases
Real time labor processing and time tracking       >15% Performance loss
Digital operator assistant system                  50%     Cost of scrap                                       Big data from connected
                                                                                                               machines used to improve
AI-enabled quality management system               57%     Customer complaints
                                                                                                               operations, and agile
Real-time machining quality control                7%      Machining cycle time reduction                      proofs-of-concept support
                                                                                                               rapid deployment of new
Flexible automation assembly line                  30%     Labor productivity
                                                                                                               use cases
Digital R&D and engineering                        >40% Design iteration cycle time
Cloud-based platform connecting machines           NA      Transparency                                        Clear top-down strategy,
                                                                                                               implementation enabled by
Lights-out manufacturing                           31%     Units per hour
                                                                                                               dedicated team and focus
Real-time monitoring and prediction                60%     Unexpected breakdowns                               on capability building
Automated testing using artificial intelligence    50%     Misjudgement
IoT-enabled nozzle status tracking                 25x     Lifespan of nozzles
Mass customization & B2C³ online ordering          33%     Lead time                                          Innovated new business
                                                                                                              model with web-based
Real-time operator performance ranking             64%     Labor productivity
                                                                                                              B2C sales channel for
Digital quality management system                  21%     Defects per million                                configuration and ordering
                                                                                                              of air conditioners
Digital manufacturing performance                  NA      OEE increased
Digital product after sales                        50%     Customer, maintenance staff
OEE real-time monitoring of critical assets        5%      Asset utilization                                  Dedicated Fourth Industrial
                                                                                                              Revolution space serves as
Additive manufacturing (3D printing)               25%     Cost of goods sold
                                                                                                              in-house testing ground for
Autonomous process optimization                    10%     Scrap                                              the agile testing and
                                                                                                              deployment of new use cases
VR training and design tool
   4
                                                   5x      Safety information retention
Collaborative Robotics                             25%     Labor efficiency
Digital replicas of physical assets                NA      Highly automated lot size 1 line                   Innovated a new business
                                                                                                              model based on a in-house
Digitized production performance tools             30%     Production time
                                                                                                              additive manufacturing
Mixed reality maintenance                          NA      Time and errors                                    start-up which serves both
                                                                                                              internal as well as external
Building energy management                         ~7.5% Energy costs
                                                                                                              customers
Additive manufacturing (3D printing)               60%     Cycle time

                                                                         Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   11
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                                      Rold in Cerro Maggiore, Italy                           Leverage
                                                                                              Leverage
                                                                                                Leveragedigital
                                                                                                        digital manufacturing
                                                                                                                manufacturing
                                                                                                          digital             to
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                                           in Cerro
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                                      Rold
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                                      Rold                                                      increase
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                                           in Cerro Maggiore, Italy                           Leverage
                                                                                              increase  digital manufacturing
                                                                                              increase production
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                                                                                                                   volume
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                                                                                              increase production volume

                                                                                              Digital manufacturing
                                                                                              Digital manufacturing and and smart
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                                      Schneider Electric
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                                       Siemens Industrial
                                       Siemens  Industrial Automation
                                                           Automation                         Consumer demand
                                                                                              Consumer  demand growth
                                                                                                                  growth required
                                                                                                                         required digital
                                                                                                                                  digital transformation
                                                                                                                                          transformation to
                                                                                                                                                         to
                                       Siemens
                                       Siemens Industrial
                                                Industrial Automation
                                                           Automation                         Consumer
                                                                                              Consumer  demand
                                                                                                        demand    growth
                                                                                                                  growth required
                                                                                                                         required digital
                                                                                                                                  digital transformation
                                                                                                                                          transformation to
                                                                                                                                                         to
                                       Siemens
                                       Products
                                       Products
                                       Siemens  Industrial
                                                 in
                                                 in        Automation
                                                     Chengdu,
                                                     Chengdu,
                                                Industrial    China
                                                              China
                                                           Automation                         Consumer
                                                                                              improve
                                                                                              improve
                                                                                              Consumer  demand
                                                                                                      quality
                                                                                                      quality
                                                                                                        demand    growth
                                                                                                              performance
                                                                                                              performance
                                                                                                                  growth required
                                                                                                                         required digital
                                                                                                                                  digital transformation
                                                                                                                                          transformation to
                                                                                                                                                         to to
                                       Products
                                       Siemens
                                       Products  in  Chengdu,
                                                 Industrial
                                                 in           China
                                                            Automation
                                                     Chengdu, China                           improve
                                                                                              improve quality
                                                                                                Consumer
                                                                                                      quality performance
                                                                                                           demand   growth
                                                                                                              performance   required digital transformation
                                       Siemens
                                       Products Industrial
                                                 in        Automation
                                                     Chengdu, China                           Consumer
                                                                                              improve   demand
                                                                                                      quality     growth
                                                                                                              performancerequired digital transformation to
                                       Products
                                       Products inin Chengdu,
                                                     Chengdu,China
                                                               China                          improve quality
                                                                                                improve       performance
                                                                                                        quality performance
                                       Products  in  Chengdu, China                           improve quality performance

                                      Tata Steel
                                      Tata Steel in
                                                 in IJmuiden,
                                                     IJmuiden, the
                                                               the                            End-to-end at
                                                                                              End-to-end   at scale
                                                                                                              scale transformation
                                                                                                                    transformation with
                                                                                                                                   with clear
                                                                                                                                        clear digital
                                                                                                                                              digital roadmap
                                                                                                                                                      roadmap
                                      Tata
                                      Tata Steel
                                           Steel in
                                                 in IJmuiden,
                                                     IJmuiden, the
                                                               the                            End-to-end
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                                                                                                                    transformation with
                                                                                                                                   with clear
                                                                                                                                        clear digital
                                                                                                                                              digital roadmap
                                                                                                                                                      roadmap
                                      Tata Steel
                                      Netherlands
                                      Netherlands
                                      Tata       in  IJmuiden, the
                                           Steel in IJmuiden, the                             End-to-end
                                                                                              to
                                                                                              to  improve
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                                                                                              End-to-end   at scale
                                                                                                          EBITDA¹
                                                                                                          EBITDA¹   transformation with clear digital roadmap
                                                                                                           at scale transformation with clear digital roadmap
                                      Netherlands
                                      Netherlands                                             to  improve
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                                                                                              toEnd-to-endEBITDA¹
                                      Tata Steel
                                           Steel in
                                      Netherlands in IJmuiden,
                                                      IJmuiden,the
                                                                the                           End-to-end
                                                                                              to  improve  at at
                                                                                                              scale
                                                                                                          EBITDA¹   transformation
                                                                                                                 scale             withwith
                                                                                                                       transformation   clear digital
                                                                                                                                            clear     roadmap
                                                                                                                                                  digital roadmap
                                      Netherlands
                                      Netherlands                                             to
                                                                                              totoimprove
                                                                                                  improve EBITDA¹
                                                                                                          EBITDA¹
                                      Netherlands                                                   improve EBITDA¹

                                       Fast Radius with  UPS in Chicago,                      Greenfield
                                                                                              Greenfield site to support new, Fourth Industrial Revolution
                                       Fast
                                       Fast Radius
                                       Fast Radius with
                                            Radius  with UPS
                                                    with UPS in
                                                         UPS in Chicago,
                                                             in Chicago,
                                                                Chicago,                      Greenfield site
                                                                                              Greenfield site to
                                                                                                         site to support
                                                                                                              to support new,
                                                                                                                 support new, Fourth
                                                                                                                         new, Fourth Industrial
                                                                                                                              Fourth Industrial Revolution
                                                                                                                                     Industrial Revolution
                                                                                                                                                Revolution
                                       United
                                       Fast
                                       United
                                       Fast   States
                                            Radius
                                              States
                                            Radius  with UPS in Chicago,                      technology-enabled
                                                                                              Greenfield site to
                                                                                              technology-enabled
                                                                                              Greenfield site to    business
                                                                                                                 support new,
                                                                                                                    business
                                                                                                                 support new,models
                                                                                                                              Fourth
                                                                                                                             models
                                                                                                                              Fourth Industrial
                                                                                                                                     Industrial Revolution
                                                                                                                                                Revolution
                                       United
                                       United
                                       Fast   Stateswith
                                              States
                                            Radius  with UPS
                                                         UPS in
                                                             in Chicago,
                                                                Chicago,                      technology-enabled
                                                                                              technology-enabled
                                                                                              Greenfield site to    business
                                                                                                                    business
                                                                                                                 support new,models
                                                                                                                             models
                                                                                                                              Fourth Industrial Revolution
                                       United Stateswith UPS in Chicago,
                                       Fast Radius                                            technology-enabled    businessnew,
                                                                                                Greenfield site to support
                                                                                              technology-enabled             models
                                                                                                                                 Fourth Industrial Revolution
                                       United
                                       United States
                                              States                                          technology-enabled business
                                                                                                                    business models
                                                                                                                             models
                                       United States                                            technology-enabled business models

     Source: Lighthouse sites
     1
       Earnings Before Interest, Tax, Depreciation and Amortization; 2 Enterprise Resource Planning; 3 Manufacturing Execution System; 4 Product Lifecycle Management;
     5
       Virtual Reality; 6 Advanced Analytics; 7 Sales and Operations Planning
12      Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
Top 5 use cases                                      Impact                                                    Highlight
Top  5 use cases
In-process quality control                           Impact
                                                       NA   Scrap                                              Highlight
                                                                                                               Capability-building
                                                                                                               represents a key element of
Automatic
In-process changes  to products on prod. line
           quality control                            50%
                                                      NA  Change over time
                                                          Scrap                                                Capability-building
                                                                                                               the digital transformation,
                                                                                                               represents a key element of
End-to-end supply chain
Automatic changes       synchronization
                   to products on prod. line          35%
                                                      50% Inventory
                                                          Change over time                                     with a «digital college» and
                                                                                                               the digital transformation,
                                                                                                               «SMART Lab» leveraged to
Digital direction
End-to-end        setting
              supply chain synchronization            35% Reliability
                                                      NA  Inventory and OEE                                    with a «digital college» and
                                                                                                               upskill employees
                                                                                                               «SMART Lab» leveraged to
Modelling   and simulation
Digital direction setting                             NA      Testing   time
                                                              Reliability and OEE                              upskill employees
Machine
Modellingalarm aggregation
          and simulation                              NA      Reactiontime
                                                              Testing   time for alarms                        Collaborations with
                                                                                                               universities support skill-
Digital dashboards
Machine            to monitor OEE
          alarm aggregation                           11%
                                                      NA  OEE
                                                          Reaction time for alarms                             Collaborations with
                                                                                                               building and dedicated
                                                                                                               universities support skill-
Sensor-based  KPI reporting
Digital dashboards to monitor OEE                     11% Transparency
                                                      NA  OEE          of machine status                       events ensure a high level
                                                                                                               building and dedicated
                                                                                                               of workforce engagement
Cost modeling KPI reporting
Sensor-based                                          NA      Accuracy of cost
                                                              Transparency     calculation
                                                                           of machine   status                 events ensure a high level
                                                                                                               of workforce engagement
Additive manufacturing (3D printing)
Cost modeling                                         NA      Time to market
                                                              Accuracy of cost calculation
Parametric
Additive   design and manufacturing
         manufacturing (3D printing)                  41%
                                                      NA  Improved productivity
                                                          Time to market                                       High level of operator
                                                                                                               involvement in
Digital thread
Parametric     through
             design andproduction process
                        manufacturing                 38%
                                                      41% Improved  productivity
                                                          Engineering productivity                             High level of operator
                                                                                                               development of new use
                                                                                                               involvement in
Business   intelligence
Digital thread  throughplatform
                        production process            NA  Quality of productivity
                                                      38% Improved
                                                          Operator   decisions
                                                                     productivity                              cases
                                                                                                               development of new use
Real-time process control
Business intelligence       system
                      platform                        NA      Machine
                                                              Quality ofOEE
                                                                         decisions                             cases

Unmanned   vehiclescontrol
Real-time process   for inspection
                           system                     5%
                                                      NA      Environmental
                                                              Machine OEE waste                                Collaborated with
                                                                                                               universities to develop a
Asset predictive
Unmanned         analytics
           vehicles for inspection                    2%
                                                      5%      Energy efficiency
                                                              Environmental  waste                             Collaborated with
                                                                                                               dedicated program for
                                                                                                               universities to develop a
Asset Performance   Management
      predictive analytics                            3%
                                                      2%      Reliability
                                                              Energy efficiency                                specialists in data science
                                                                                                               dedicated program for
                                                                                                               and robotics
Wearables  for operators
Asset Performance   Management                        10%
                                                      3% Workforce
                                                          Reliability productivity                             specialists in data science
                                                                                                               and robotics
Analytics
Wearablesand
          for artificial
              operators  intelligence center          12%
                                                      10% Maintenance cost
                                                          Workforce productivity
Predictive maintenance
Analytics and              through IoT
              artificial intelligence center          7%
                                                      12% OEE
                                                          Maintenance cost                                     Workforce involved in the
                                                                                                               digital transformation from
Mixed  reality
Predictive     for maintenance
           maintenance         work
                         through IoT                  20% Time to diagnosis/repair
                                                      7% OEE                                                   Workforce involved in the
                                                                                                               the beginning, leveraging
                                                                                                               digital transformation from
Energy management
Mixed reality         through IoT
              for maintenance  work                   10%
                                                      20% Energy
                                                          Time to costs
                                                                  diagnosis/repair                             digital technologies such as
                                                                                                               the beginning, leveraging
                                                                                                               virtual reality to
Lean digitization
Energy management through IoT                         NA
                                                      10% Time forcosts
                                                          Energy   lean analysis                               digital technologies such as
                                                                                                               communicate vision
                                                                                                               virtual reality to
Smart supply chain- Automated Guided Vehicles
Lean digitization                                     80%
                                                      NA  Time for milk
                                                                   lean runs
                                                                        analysis                               communicate vision
Digital
Smart performance
        supply chain-management
                     Automated Guided Vehicles        40%
                                                      80% Defects
                                                          Time for per
                                                                   milkmillion
                                                                        runs                                   A scalable IoT
                                                                                                               architecture supports the
Integration
Digital      of ERP²/MES³/PLM
        performance  management
                              4                       100%
                                                      40% C/O  5 quality
                                                           Defects       compliance
                                                                   per million                                 A scalable IoT
                                                                                                               deployment of new use
                                                                                                               architecture supports the
3D  Simulation
Integration     for Production Line
            of ERP²/MES³/PLM    4                     20%  Cycle
                                                      100% C/O   time compliance
                                                              5 quality                                        cases
                                                                                                               deployment of new use
Digital Assistant
3D Simulation   forSystem for Operators
                    Production Line                   100%
                                                      20% Issues  from customer claims
                                                           Cycle time                                          cases

Implementation
Digital Assistant of Automation
                  System  for Operators               ~45%
                                                      100% Labor
                                                           Issues avoidance
                                                                  from customer claims
AA 6
   -based image
Implementation ofrecognition
                  Automation                          50%  Cost ofavoidance
                                                      ~45% Labor   yield losses                                A digital academy has
                                                                                                               trained more than 200
AA-based
AA -basedraw
   6
             material
          image       selection
                recognition                           NA
                                                      50% Cost of yield
                                                                  raw materials
                                                                        losses                                 A digital academy has
                                                                                                               employees from all levels of
                                                                                                               trained more than 200
AA-based product quality
         raw material    optimization
                      selection                       80%
                                                      NA  Quality
                                                          Cost of reject rate
                                                                   raw materials                               the organization in data
                                                                                                               employees from all levels of
                                                                                                               analytics and digital tools
Prediction of weld quality
AA-based product   quality optimization               50%
                                                      80% Reduction   of re-welds
                                                          Quality reject rate                                  the organization in data
                                                                                                               analytics and digital tools
S&OP    planning
Prediction
      7
                 based
           of weld      on artificial Intelligence
                   quality                            50% Late deliveries
                                                          Reduction  of re-welds
Rapid 7design
S&OP          prototyping
        planning based onthrough
                          artificial 3D  printing
                                     Intelligence     89%
                                                      50% Time to market
                                                          Late deliveries                                      An agile working mode
                                                                                                               supports the
Advanced  analytics
Rapid design        platform
             prototyping  through 3D printing         95%
                                                      89% First
                                                          Timepass  yield
                                                                to market                                      An agile working mode
                                                                                                               implementation of new use
                                                                                                               supports the
Digital
Advancedtwins – factory
            analytics   network
                      platform                        NA
                                                      95% Lead   time yield
                                                          First pass  and cost                                 cases as well as the
                                                                                                               implementation of new use
                                                                                                               improvement of products
3D scanning
Digital twins –forfactory
                    qualitynetwork                    NA      Quality control
                                                              Lead time and labor
                                                                              cost content                     cases as well as the
                                                                                                               improvement of products
3D scanning for quality                               NA      Quality control labor content

                                                                          Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing   13
3. Understanding Lighthouses: Characteristics,
Differentiators and Success Factors

Lighthouse characteristics                                                                  different Fourth Industrial Revolution use-cases to transform
                                                                                            their operations. They have, on average, 10–15 use-cases
Injectors of human capital                                                                  at an advanced stage and are working on the development
                                                                                            of an additional 10–15. Accordingly, lighthouses are
Contrary to widespread concerns about worker                                                resetting industry benchmarks for operational and financial
displacement, the lighthouse factories are not deploying                                    key performance indicators (KPIs). Some lighthouses even
Fourth Industrial Revolution technology to replace operators.                               outperformed their internal expectations by a factor of two.
A McKinsey report suggests that fewer than 5% of                                            With this transformative approach, lighthouses radically alter
occupations consist of activities that are 100% automatable                                 their operations and achieve a step change in performance
with today’s technology, while 62% of occupations have at                                   increase – thereafter, they can engage in accelerated
least 30% of automatable tasks6 (Figure 4).                                                 continuous improvement efforts, using new Fourth Industrial
Consequently, employees in production enjoy a working                                       Revolution technologies and capabilities (Figure 5).
routine that is becoming less repetitive and more interesting,
diversified and productive. Employees at all career stages                                  Open innovators and collaborators
enjoy new tasks and responsibilities that demand the human
skill of dynamic decision-making in a changing environment.                                 The lighthouses demonstrate that the Fourth Industrial
                                                                                            Revolution journey need not be solitary – beacons can
Industry leaders that are resetting benchmarks                                              guide the way. Indeed, lighthouses are part of an innovation
                                                                                            environment that involves universities, start-ups and other
The Fourth Industrial Revolution differs from the continuous                                technology providers. Lighthouses have worked through
improvement efforts that have characterized factories for                                   the process of discerning amid thousands of technology
decades. It is not incremental; rather, it involves a step                                  providers – they have narrowed the options to a system
change – it is resetting benchmarks. Lighthouses employ                                     with which they collaborate closely and develop their Fourth
                                                                                            Industrial Revolution solutions on the shop floor.

Figure 4: Automation potential of manual activities7

                 Share of roles
                 100% = 820 roles

                                                                                 62% of occupations have at least 30% of                100
                                                                                 their activities that are automatable         91

                                                                                                                      73
                 90            >80           >70            >60      >50     >40      >30       >20      >10       >0
                                                                     Technical automation potential, in percent

Source: McKinsey & Company

14   Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing
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