PWC FACTORY INTELLIGENCE - A SMART TRANSITION - REDUCE COSTS, IMPROVE EFFICIENCIES, INCREASED PROFITABILITY = GLOBALLY COMPETITIVE - GIZ
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PwC Factory Intelligence – A Smart Transition Reduce Costs, Improve Efficiencies, Increased Profitability = Globally Competitive March 2021
Digital transformation
Company strategy & positioning
Market Position
Ability to get connected (e.g. IOT)
Digital transformation is
69%
of CEOs are worried about
Ability to aggregate massive data sets
combining strategy &
the speed of tech change
operations with technology and they’re struggling to Data science / RPA / AI / ML innovation
innovation, analytics, and keep pace
design to rapidly increase
Faster better cheaper mobility
productivity, address pain
points, push forward
adaptive business models or 01
disrupt the industry 75%
said their upskilling
More natural customer collaboration
Agile and fast solution dev methods
programmes have achieved
greater innovation &
accelerated digital More Digital savvy demographics and IQ
Digital Global Champions Study, 2018 transformation1
02
PwC 2
Why Smart Manufacturing?
3
The main reason for setting up digital factories… Source: PwC – PwC Digital Operations Study 2018 PwC 4
Tomorrow’s manufacturing operations become more complex
requiring real-time information to react and make corrective
actions
End-customer expectations change and make …and challenge companies to answer to the key
operations more complex… questions on time across plants with corrective actions.
Product individualization and smaller How is the
How is the
OEE of my
lot sizes inventory reach
production
for critical raw-
assets?
materials?
Reduction of lead times to respond to
demand
E2E traceability, sustainability and
safety requirements
Volatile demand
due to global crises
How much is
the cost of How was the Why plant A is
Constant poor quality? delivery performing
cost pressure performance better than
for plant A? plant B?
PwC 4
We currently see four digital trends which will further emerge
and change manufacturing industries by 2025
1 Manufacturing becomes data-
driven and AI-enabled
Data & AI enable higher OEE and quality. Use
2 Manufacturers are building Digital
Production Platforms & CoE’s
Manufacturing industries are investing into
cases such as real-time monitoring, predictive their own data lakes and analytics centers of
maintenance, traceability and process mining excellence, which are key enablers for their
are transferring from pilot to scaled application. digital production use cases.
3 Manufacturing & IT companies jointly
invest in open IIoT platforms
Initiatives such as the Open Manufacturing Platform
4 Equipment becomes commodity,
software interfaces are key
While factory equipment (e.g. AGV) is getting
(OMP) or ADAMOS are taking off in the manufacturing more connected and intelligent, the hardware
industry, where production companies and software becomes commodity, while the software and
vendors are jointly designing IIoT platform blueprints. especially standardized interfaces are a key.
PwC 4
While those trends will increase the potential of a Smart
Factory, many companies struggle to unlock real business
impact and achieve scale
Why Smart Factory projects
fail and don’t scale
Missing integration & Missing talent and Changing priority &
No clarity on Scaling roadmap
collaboration among expertise for missing management
business impacts is not drawn
various teams implementation commitment
Business needs should be the If scaling roadmap is missing, the To truly digitalize production Smart Factory Transformation Crucial support and backing of
driver for the technology full business impact of the Smart processes a close integration requires a diverse set of skills senior management is key to
changes. Business should Factory Transformation cannot of business, technology and to ensure a scalable, reliable & the success of such initiatives
drive the technology, and not be shown which will slow down user experience is key for the secure solution that can in hard times. Patience is the
vice versa. adoption and value realization. project success. deliver true business value key and outcome will follow.
PwC’s Smart Factory approach
… addresses clients needs from an organizational and a technical point of view as it seeks for a solution from an operational perspective by
also providing an Azure based digital asset that is designed to accelerate use case development and provides the necessary framework to
leverage the potential of analytics within the production environment.
PwC 4
To successfully transform Factories into Smart Factories,
business & technology expertise needs to go hand in hand
Integrate operations Put the user and business
experts into transformation problem in the center
Build robust and scalable Think End-to-end smart
Digital Manufacturing platform manufacturing transformation
Smart
Factory
Keep business, technology & Transformation Secure adequate resources
experience requirements synchronized for the transformation
Develop with an agile and Leverage pre-configured
user-centric approach digital assets to accelerate
Implement from day one with a
focus on showing business impact
PwC 4
Smart Factory decision makers from a business & technical
background needs to be addressed according their individual
needs
Chief Head of Head of Chief Information IIoT Center of
Executive Officer Manufacturing Industry 4.0 Officer Excellence
▪ Aims for further ▪ Seeks for cross-plant ▪ Identifies promising areas for ▪ Aligns the IT & Data- ▪ Identifies and develops
digitalization of his transparency, even though, I4.0 applications within the Strategy to the overall scalable solutions for
business plants vary significantly company corporate strategy optimal cost-benefit ratio
▪ Ensures competitiveness in ▪ Leverages IoT & Data ▪ Develops unified automation ▪ Drives innovation within ▪ Ensures the
the market and derives Analytics to increase strategy and processes that the company implementation of use
new business models productivity and efficiency are scalable globally by cases from PoC to MVP and
▪ Discovers new relevant
through the use of new within the production taking into account local productive
technical developments for
technologies processes specifics of plants operationalization
the company and evaluates
▪ Reinforces data-driven ▪ Increases product quality and ▪ Empowers employees to their potential ▪ Sets up a qualified team
decisions and management reduces costs by further work with and use new with the right capabilities
▪ Ensures constant service
by unlocking the potential optimizing processes through applications to leverage the to drive and support
and availability of IT-
of data digital solutions potential innovation
systems
Business Technology
Driven Driven
PwC 9
Roadmap for achieving the Business Goals
Digital Tools Digital Solutions Typical Losses Business Impact Business Goals
IOT & Emerging
Cloud Techs
PwC Solutions: Near Miss /Accidents Safety Increase Employee
Enterprise
1.Factory Intelligence Safety
IT
ERP L5
PLM 2.Digital Twin
• Robotics 3.DOMA On Time Delivery Product Delivery
Management
• AR/VR
MES 4.VR
L4 • Drones
Increase Output of
MRP
• AR/VR Scrap & Rework , Product Quality
• 3D Good Quality Parts
Supervision Start Up losses
SCADA L3 Printing Other Examples:
OT
• Cyber-
• Robotics for process Machine Failures,
Control
L2 security
optimisation Machine Availability
Increase
PLC
Material Shortages Reduce Manufacturing
Reduce
Enable
Drive
• 3D printing for
Machine
prototyping/product Costs
Sensors L1 Small Stops, Reduced Machine Performance
development
Speed
Labour Efficiency People Efficiency Increase
Non Digital Tools Non Digital Solutions
(Direct, Indirect) Environmental Impact
Inventory/Material Inventory & Material
• Manufacturing • Capacity Planning
Processes • Production Line Efficiency Mgt.
• Lean - TPS, TPM, Balancing
Shingo Model • Production Process Energy Losses Energy Mgt.
• Six Sigma & Quality Efficiency
• Work Measurement • Factory Layout Design
• Ergonomics • Ergonomics Greenhouse gas, Environment
• Capacity Planning assessments CO2, Water Usage
PwC 10Video https://www.youtube.com/watch?v=2uL-oCbJXv0&feature=youtu.be
By applying PwC Smart Factory approach, we have realized
significant improvements and savings across industries
Exemplary Smart Factory Projects Exemplary project output
Additional
references > 7% 8% pts
▪ Digitalization of two
plants in Germany and
▪ Trusted advisor for
client’s Digital
▪ Our Strategy through
execution approach
cost savings
of conversion cost
& OTIF
Improvement
US Production Program has been proven in
▪ Optimization of ▪ Digital Production many client
capacity constraint Vision & Strategy engagements across
industries
7.500.000 25.000.000 15% pts
production sites development
▪ Identification of ▪ Design & minutes minutes OEE
bottlenecks on the Implementation Reduced downtime Increased production time Improvement
shop floor (machine, client’s Digital Electronics Automotive
labor, tools) Production Platform
Plant Performance Insights Predictive Quality
▪ Integration of relevant ▪ Implementation of
source systems (MES, end-user centric value Increase the output of bottleneck Reduce the costs scrap, rework
ERP, HR systems) driven digital use Process Manufacturing production assets by ~ 30%. and manual sorting by ~ 40%.
▪ Development of cases for different
predictive analytical categories, e.g.
models and reliability, efficiency
applications to improve Retail & Chemicals
operational excellence consumer
goods
Business Technology
Driven Driven
PwC 12Our model enables us to help clients‘ to envision the future,
design the future solution and scale it up across production
network
Step 1 Step 2a Step 2b Step 3
Understand the value of Get prepared for the Smart Lighthouse plant
Show, don’t just tell
the Smart Factory Factory Transformation implementation
• Focus on understanding the • High level use case identification • Focus on understanding the • Develop use cases following agile
maturity, target state and providing and definition business problem model
PwC-Microsoft perspective on
• Benefits identification • Estimate the potential business • Implement use cases
successful Smart Factory
value of the Smart Factory
transformation • Implementation of the PoC use • Improve solutions and stabilize
case • Detail the epics and use cases operations
• Different maturity stages
• Strategy – Outline how the Smart • Demonstration of the Factory • Build potential PoC • Ensure change adoption and
Focus Intelligence scalability
Factory would look like • Ensure robust and scalable
areas • Design & Build – Focus on value • Deep dive into state-of-the-art platform and architecture • Scale to other plants
creation and technical platform platform architecture
• Select the plant for lighthouse
• Operate & Scale – Focus on implementation or scale-up
augmenting and scaling the
solution
• Understand potential gap to the
target state
Duration 1 - 2 weeks 4 - 6 weeks 4 - 6 weeks 4 - 12 months
Depends on the size
Cost Free of charge 50 - 75 k€ 50 - 75 k€
of the operations
Confidential information for the sole benefitand use of Microsoft
PwC 13Factory
Intelligence
“PwC Factory Intelligence is centered
around a set of dashboards that
matter and analytics that drive results
and fast ROI for our initiatives. It has
the DNA for driving results through
AI, analytics and process integration
that is missing from most Smart
Factory software solutions on the
market.”
Plant Manager, Automotive Supplier
PwC’s Digital Services
PwC Confidential information for the sole benefit and use of PwC’s client.Factory Intelligence is not a boxed, final set of applications but
an integral part of the Smart Factory Integrated Solution that
unlocks the potential of smart manufacturing transformation
What is PwC Factory Intelligence? What is PwC Factory Intelligence not?
▪ Part of an integrated solution that is designed to support ▪ PwC’s own MES, ERP or scheduling application and does
Smart Factory Transformation projects with a flexible not aim to implement those functionalities at all.
framework for fast use case realization.
▪ A full stack IIoT platform like PTC Thingworkx or Siemens
▪ A thin layer on top of your existing shop floor applications Mindsphere.
that allows you to easily combine any kind of data.
▪ A setup.exe or 100% Plug-and-Play solution where solely
▪ A solution that was built with the idea in mind to leverage the deployment is sufficient to have a ready-to-use solution
existing applications but make todays static connections in place.
flexible and create intelligent process chains.
▪ A PaaS based pre-defined architecture for Smart Factory
solutions based on Microsoft Azure that is customizable
based on the client´s needs.
PwC 15June 2020 PwC 16
June 2020 PwC 17
June 2020 PwC 18
June 2020
19June 2020 PwC 20
Case Study #1 Large Oil & Gas
Company in South Africa
21Local Project – Large Manufacturer
We increased the plant’s capacity by 35% through improved ways of working, whilst unlocking more than 20% in inventory
optimisation benefits, and enabling an improved S&OP cycle, through technology and optimised processes...
Capacity Improvement Potential Gross Margin Inventory Optimisation
~ 22% ~ 35% ~ 20%
Capital value released, tied up in finished goods and
Increased fill line utilisation from 29% to 51% Gross margin at R x / Litre
30% moving average reduction in raw materials
From 6 → 9 From 36 → 31
Sales increase enabled through
525 HRS 35%+ additional capacity ~20%
improvement (‘19 - ‘20)
Increased Average Inventory days on hand
Additional direct Additional capacity
Inventory turnover cover reduction with
filling lines across [Client] from Shortening the noisy long
optimal mix
operating time X to Y ML tail. Identified 98 non
32% SKUs contributors (32% of skus) to
Plant’s annual constrained capacity rationalize
[Client]’s finished goods inventory
Actual C+D Base Estimate:-15% Actual: -23%
Top & Bottom Line
Original (4-12 months) (Dashboards on Factory Intelligence to provide leadership with a single source of the truth…timeously
Executive Dashboard Plant Manager Dashboard Maintenance Manager
Dashboard
PwC 23Case Study #2 Predictive
Maintenance
24Outcomes and opportunities of Predictive Maintenance
Outcomes and Predictive Maintenance has a potential of
Opportunities £6.3m savings per annum for 1 asset type
£31 m
Extended asset life with lesser asset
repair/replacement costs
savings over 5 years
AMP 7 Optimised Energy Consumption
20% Reduction in consequential costs of
failure (tankering, jet washing)
extension in asset life
25
Fewer pollution events
12-20% Reduction in planned and unplanned/
Energy Savings reactive maintenance effort
for 1 asset type !Case Study #3 Large Automotive
Supplier
26Microsoft and PwC conducted a joint pre-study for an automotive
supplier to explore value creation opportunities through Smart Factory
Background Pre-study project Deliverables
• Microsoft and PwC propose to • Joint teaming with Client, Microsoft and
transform one of the Automotive PwC Operations & Technology consulting 1. Smart Factory Approach
Supplier’s plants using Microsoft to conduct pre-study
technologies to show real value by
• Run a series of workshops to 2. Lighthouse Plant Defined
unleashing true P&L effects
• Microsoft and PwC conducted a joint • Assess current maturity
pre-study project to evaluate opportunity 3. Identified Use Cases
• Define epics and use cases
to proceed
• Evaluate business value for all parties
• After a successful lighthouse plant 4. Assessed Business Value
implementation, the developed digital • Estimate implementation costs
factory solutions shall be rolled out to • Define implementation approach
further plants globally 5. Planned Implementation Cost
• Preparation of investment case
6. Estimated Azure Consumption
PwC 27Three epics and 19 use cases have been identified to create high value
for Automotive Supplier
Production End-to-End Maintenance
Control Tower Traceability Intelligence
Transparency of production Traceability of production flow, analysis Enhance maintenance operations
performance from plant down to and prediction of production and quality through machine monitoring and fault
machine level. outcomes. prediction.
Description 7 use cases 6 use cases 6 use cases
Maturity Level 6 reached Maturity Level 6 reached Maturity Level 6 reached
Value Reduced Inventory Performance Quality Workforce
Conversion Costs Reduction Improvement (OEE) Improvement (FPY) Efficiency
Technology | Factory Intelligence
Enablement
Confidential information for the sole benefit and use of Microsoft
PwC 28Following guiding principles to implement the DMP*, we will suggest
PwC Factory Intelligence based on Microsoft Azure and Microsoft 365
Client
DMP Implementation Options
Design Principles
User-centric principles
IaaS-based ‘Make’ Framework-based with high Self-Service capabilities
• Self-Service is a top priority
• E2E Process support Not recommended due to high Recommended due to fast set Leverage PwC Factory
development effort and thus, long up using pre-built solutions Intelligence as solution
• Pay-Per-Use
time to market, which is more critical and connectors. Good fit with framework with ready-to-use
• Easy & Secure data sharing for Automotive Supplier than full existing platforms and high and customizable business
vendor agnosticism. degree of self-service apps for common
capabilities possible. manufacturing use cases
IT Design principles leveraging Azure & M365.
• High availability and SLA’s
• High performance & Scalability PaaS-based ‘Make’ Full ‘Buy’ | Factory Intelligence
• Ensure data security and privacy Powered by
• Use asynchronous messaging for Possible option due to fast set up, Not recommended due to uncertain
loose coupling of services already available skills, positive compatibility to Automotive
experiences and good integrability Supplier’s guiding principles,
• Enable resiliency through fast
with existing platforms, but limited shared OMP solutions and other
failure detection and recovery
integration of Self-Service platforms.
features.
* DMP = Digital ManufacturingPlatform
Confidential information for the sole benefit and use of Microsoft
PwC 29PwC Factory Intelligence brings ready to use shop-floor solutions and is
fully built on Microsoft Azure and Microsoft 365 Services
Platform Backend Business Apps & Portal
IIoT Edge Data Processing Self-Service Business Business
Streaming Layer Analytics Apps Apps Integration
Azure Azure Azure Azure Azure Data Explorer
Node JS React Single Page
IoT Edge IoT Hub Stream Analytics Event Hub (for Time SeriesAnalysis)
Microservices in Application in
Azure App Service Azure App Service
Systems of
Batch Layer Azure Databricks
Record (for Advanced Analytics)
Power BI
Azure SQL Service Power
(for master data) Automate
Enterprise Azure Azure Azure Azure Synapse MongoDBin
Systems Data Factory Data Lake Databricks (for Business Intelligence) Azure VM
(ERP, MES etc.) Storage (Pipelines) Power
Apps
Base Components
Azure Cognitive
Azure Azure Azure Azure Azure Azure Azure Azure Azure
Services
Active Directory Logic App Container Registry Service Bus DevOps KeyVault Monitor Security center API Management
Confidential information for the sole benefit and use of Microsoft
PwC 30What about the people?
June 2020
31Increasingly complex operator environments are calling for a connected
worker mindset
Challenges on the shopfloor Connecting the shopfloor
PwC 32Thought leadership: Eight commandments to digitising our shop
floor workforce
1. Bring the consumer’s reality into the realm of industry
2. Select the right challenges
3. Place your workforce at the centre
4. Weigh your options smartly
5. Let the voice of your workforce lead you through your
transformation
6. Select the most promising operational area to start your journey
7. Connecting your workforce is the means to an end: unlocking the
data
8. A small step for your workforce can be a big step in your digital
transformation
PwC 33Video https://www.youtube.com/watch?app=desktop&v=VenjJl3j7tg
Contact.
VINESH MAHARAJ
Smart Manufacturing Lead, PwC South
Africa
E mail: Vinesh.mahajaj@pwc.com
Telephone: +27 (11) 287 0839
Mobile: +27 (83) 792 6518
Thank you for your attention!
PwC’s Digital Services
Confidential information for the sole benefit and use of PwC’s client.
© 2021 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of
PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm
is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is
not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind
them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of
another member firm’s professional judgment or bind another member firm or PwCIL in any way.
PwC’s Digital Services 35You can also read
