Manufacturing Global – May 2019

TE Connectivity Transforming manufacturing through automation manufacturingglobal.com

M AY 2 0 1 9

Chantier Davie

Bringing IoT to shipbuilding

Samsung and AT&T explore 5G capabilities

ENHANCING PRODUCTIVITY AT TC TRANSCONTINENTAL SVP John Adams on how the flexible packaging business leverages digital transformation to remain sustainable

TOP 10

Automotive manufacturers

FOREWORD

W

elcome to the May edition

focused 5G ‘innovation zone’, which

of Manufacturing Global!

has been developed by AT&T,

“We’re always looking at how

we can enhance productivity and expand our capacity to enable growth,” says John Adams,

Samsung Electronics America and Samsung Semiconductor.

Manufacturing Global sits down with two key leaders behind the ground-breaking project to find out

Senior Vice President

how 5G can deliver a rage

& Managing Director of

of advantaged.

TC Transcontinental’s Advanced Coatings

Don’t forget to take

business. Indeed, the flexible packaging company is looking at how it can leverage

a look at our in-depth John Adams, SVP & Managing Director TC Transcontinental

company reports on TE Connectivity, Chantier Davie Canada,

digital transformation

Siemens and Daimler.

to remain sustainable.

For this month’s Top 10 list,

In this issue, Adams explains how

we’ve brought you a selection of

supply chain management is vital

the biggest and best automotive

to this transformation journey.

manufacturers, as well as distilling

“Procurement has been critical to

the most important industry events

identifying partners that can enable

to make sure you have a ticket for!

us to achieve our productivity and innovation aspirations,” he comments.

Elsewhere, we’ve taken a look at America’s first manufacturing-

Enjoy the issue!

Sean Galea-Pace sean.galea-pace@manufacturingglobal.com

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03

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CONTENTS

12 Transforming supply chain strategies

26

36

HARNESSING 5G TO DRIVE OPERATIONAL EXCELLENCE WITHIN MANUFACTURING

Transforming packaging with GE Digital

48 Cognitive predictive maintenance transforms manufacturing

56

70 TOP 10

Automotive manufacturers HOW DOES SUPPLY CHAIN MANAGEMENT AFFECT MANUFACTURERS?

84

Events & Associations

CONTENTS

88

TE Connectivity

106 Chantier Davie Canada

120 Siemens

142 Daimler

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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12

Transforming supply chain strategies WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

TOM VENTURO

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13

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T C T R A N S C O N T I N E N TA L

John Adams, Senior Vice President & Managing Director of Transcontinental Advanced Coatings, discusses how his business segment is operating in the manufacturing industry amidst significant digital transformation 14

W

ith the world’s leading companies undergoing digital transformations to accelerate operations, it’s becoming

fundamental that businesses employ the latest technological advances to sustain success in the manufacturing industry. John Adams, Senior Vice President & Managing Director of the Advanced Coatings business segment within flexible packaging company TC Transcontinental, discusses his procurement strategy and how his team leverages technology to disrupt and lead the manufacturing sector. “Procurement has been critical to identifying partners that can enable us to achieve our productivity and innovation aspirations,” explains Adams.

“We’re always looking at how we can enhance productivity and expand our capacity to enable growth. You can’t have a strong growth strategy without a smart investment strategy.”

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15

w w w.ma nufa c t uri nggl o b a l. com

T C T R A N S C O N T I N E N TA L

“ Procurement has been critical to identifying partners that can enable us to achieve our productivity and innovation aspirations” 16

— John Adams, Senior Vice President & Managing Director Transcontinental Advanced Coatings

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With technology considered a key component of Transcontinental Advanced Coatings’ procurement strategy, Adams believes it’s important that his business segment utilize technology in the right way – especially when it comes to safety. “When we think about how we use technology, we think about what the strategic priorities of the business are and decide where we need to invest.

Safety is always our top priority,” he says. “Since we use a range of solvent based techniques in our manufacturing processes, it is imperative that we ensure our work environments are safe from any risk of fire at all times.

CLICK TO WATCH : ‘TC TRANSCONTINENTAL – 2019’ 17 As a result, we invest in a range of

the business operates a converting

technologies for the detection

and distribution facility in China,

of different solvents, monitoring of

serving its customers on a global scale.

humidity control, dissipation of static

Having been with the company since

throughout the production line, and the

March 2016, Adams is proud of the

safeguarding of equipment to make

considerable growth achieved in the

sure that we have a safe environment.”

past three years. “When I joined, it was clear to me there was the potential for

OPERATING IN THE MANUFACTURING SECTOR

large expansion of the business,

Transcontinental Advanced Coatings

market segments we serve,” says

operates ISO-certified manufacturing

Adams. “Approximately half of our

facilities at its headquarters in

business globally is tied to the medical

Matthews, North Carolina, and it’s UK

segment, inclusive of advanced wound

plant in Wrexham, North Wales. Also,

care products. With favorable global

primarily due to the nature of the key

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T C T R A N S C O N T I N E N TA L

18 growth trends in healthcare, inclusive

ion batteries on an explosive growth

of a growing aging population and

trajectory, we’ve started to think about

increased access to medical care,

things such as consumer electronics,

that segment represents an expanding

cell phones, and the automobile space.

market worldwide — it’s a great area

I think it’s important to consider the

to be a market leader in.”

key drivers of segment growth and the

To set TC Transcontinental apart

underlying fundamentals of the

from rivals, Adams understands the

business. What do people want? For

requirements of his customers to

example, they want a phone to charge

ensure the business can continue to

faster and for the charge to last longer.

transform in an ever-changing market.

We work with customers to create

“We’re able to work intimately with our

energy storage solutions for such

customers to develop and commer-

products. We can apply very thin

cialize differentiated solutions, rather

coatings to substrates that become

than just being a commodity product

the building blocks for power transmis-

supplier,” says Adams. “With lithium-

sion and storage devices.”

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E XE CU T I VE PRO FI LE

John Adams, Senior Vice President & Managing Director John Adams joined Coveris Americas in 2016 as the Vice-President of Sales and Marketing for the global Advanced Coatings business and was promoted to the Vice-President and Managing Director role for the organization later that year. Following the acquisition of Coveris Americas by TC Transcontinental in 2018, John was named Senior Vice-President and Managing Director of the Advanced Coatings business segment.Before joining TC Transcontinental, John spent over five years with Danaher Corporation as a Vice-President of Sales and Marketing for a global industrial controls business group comprised of 6 business units covering the Americas, Europe, and Asia. Also, he spent over 15 years at Teradyne, Inc., holding roles of increasing responsibility in engineering, marketing, and general management. He holds a B.S. in Mechanical Engineering from Worcester Polytechnic Institute, and an M.S. in Manufacturing Engineering and an MBA from Boston University.

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T C T R A N S C O N T I N E N TA L

ESTABLISHING KEY PARTNERSHIPS In May 2018, TC Transcontinental completed the acquisition of Coveris Americas, inclusive of the Advanced Coatings business segment. Recognized as one of the top 10 converters of flexible packaging and other value-added products in North America, Coveris Americas manufactured a range of flexible plastic and paper products such as bags and pouches, shrink films, coextruded films and coated substrates and labels.

“TC Transcontinental had been 20

focused on diversifying its printing and media assets to ensure its long-term growth and initiated its strategic shift in 2014 with a first acquisition in the flexible packaging industry,” explains Adams. “That leveraged manufacturing as their core competency and they invested in approximately six smaller acquisitions, generating about CAD $300mn in annual revenues.

When Coveris Americas became available; it was a great opportunity for TC Transcontinental to continue the transformation of the company. Now, packaging is the largest sector of TC Transcontinental, and it’s become the engine of the company’s strategic M AY 2 0 1 9

21

$2.6bn Approximate revenue (CAD)

1976

Year founded

9,000

Approximate number of employees

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“ When we think about how we use technology, we think about what the strategic priorities of the business are” — John Adams, Senior Vice President & Managing Director Transcontinental Advanced Coatings

to aid with solvent vapor monitoring.

“EW Process has been able to monitor the full range of solvent products that we use to ensure we don’t have any issues,” says Adams. “In our operations, safety is always our number one priority. Control Instruments is the one supplier we can depend on to provide comprehensive LEL sensing solutions that ensure the full range of solvent vapors resulting from production are precisely monitored through the equipment. This capability is paramount to ensuring we have no risk of combustion prior to exhaust entering our

shift. The Coveris Americas acquisi-

thermal oxidizer for final destruction.”

tion has allowed the company to become a leader in the North Ameri-

REMAINING SUSTAINABLE

can flexible packaging market, and

With sustainability crucial to the long

provides a strong, stable environment

term growth of all businesses, TC

for us to continue our growth.”

Transcontinental has several targets in

Transcontinental Advanced

mind in a bid to continue to thrive in the

Coatings business is in a rapid growth

manufacturing industry. “It’s about

phase, and as a result is focused on

having a strategy rooted in strategic

optimizing the performance of existing

markets, and ensuring that the

operations, and making the strategic

segments we’re in have fundamentally

investments necessary to enable

sustainable long-term growth trends.

growth. As an example, with safety as

As an ISO certified company, we

a top priority, TC Transcontinental has

ensure we have a high degree of

established a critical partnership with

process control, and explicitly

EW Process and Control Instruments

prioritize where we will grow and w w w.ma nufa c t uri nggl o b a l. com

23

T C T R A N S C O N T I N E N TA L

invest, and where we will not.”

To achieve a sustainable future, TC Transcontinental values the importance of building and developing a capable team to deliver a market-leading level of customer intimacy and responsiveness, staying ahead of rivals technologically, and achieving mutual and collaborative success with our customers. “It’s important that we recruit strong people and put a lot of energy into building, investing and helping our associates to stay ahead of the curve, in terms of training and capabilities,” explains 24

Adams. “We’re constantly bringing in new hires from universities to provide us with new ways of thinking. Thanks to this talent, combined with the best new technologies, we are innovating and developing next-generation environmentally sustainable solutions. TC Transcontinental’s unwavering commitment towards sustainability means that we are always looking at limiting our environment footprint and reducing waste.”

New technologies are critical to staying ahead of the curve in terms of quality and delivery performance.

“Two key capital investment strategies involve the implementation of in-line M AY 2 0 1 9

vision systems, ensuring 100% visual inspection of our products throughout the production process, and deployment of IoT 4.0 technologies, providing us with advanced notice of impending capital maintenance needs to minimize unplanned downtime and optimize maintenance spending,” notes Adams.

Looking to the future, Adams believes there is significant room for Transcontinental Advanced Coatings to grow over the next few years.

“We see the opportunities for substantial organic growth, and we intend to add additional capacity to our coating facilities in the near and mid-term as we optimize utilization of our existing capacity,” summarizes Adams. “Many of the partnerships that we have are long-lasting, and we continue to build off that as well as part of our growth strategy to help support our partners in the next generation of developments.”

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25

LEADERSHIP

26

HARNESSING 5G TO DRIVE OPERATIONAL EXCELLENCE WITHIN MANUFACTURING WRITTEN BY

CATHERINE S TURM AN

AT&T, SAMSUNG ELECTRONICS AMERICA AND SAMSUNG AUSTIN SEMICONDUCTOR HAVE LAUNCHED AMERICA’S FIRST MANUFACTURING-FOCUSED 5G ‘INNOVATION ZONE’. WE SPEAK TO TWO KEY LEADERS BEHIND THE GROUND-BREAKING PROJECT

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LEADERSHIP

28

I

ndustry 4.0 is set to revolutionise

the manufacturing sector. From

to deliver a myriad of advantages.

Partnering with Samsung

artificial intelligence (AI), aug-

Electronics America (SEA) and

mented reality and Industrial Inter-

Samsung Austin Semiconductor

net of Things (IIoT), the emergence

(SAS), global telecoms giant AT&T

of 5G technologies will set the stage

has sought to develop America’s

for the evolution of Smart Factories.

first manufacturing-focused 5G

Unlocking new revenue streams,

Innovation Zone. Located at

promoting increased flexibility and

Samsung Austin Semiconductor in

driving seamless digital connectivity,

Texas, the facility will undertake

the use of data analytics will also

ground-breaking studies to take a

lead to the emergence of agile net-

closer look at the potential 5G will

works, where 5G’s low latency and

bring to manufacturers and enable

high bandwidth capabilities will work

the roll out of an essential roadmap

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“ 5 G BRINGS GAMECHANGING NEW ADVANCEMENTS, SUCH AS SUPER LOW LATENCY, ULTRA-HIGH SPEEDS AND ENHANCED BANDWIDTH” — Wilf Norrlinger, Vice President, Samsung Electronics America’s Networks Division 29

in developing Smart Factories

bringing 5G to an industrial environ-

of the future.

ment, we partnered with Samsung

“5G is a new technology and with

Austin Semiconductor — one of the

wwit arrives game-changing new

country’s largest and most technically

advancements, such as super low

advanced facilities of its kind in the US.”

latency, ultra-high speeds and

“Collaborating with AT&T on this

enhanced bandwidth. It’s an ideal

project also made sense when building

technology for the smart factory

out the unique capabilities of this

environment, and we envisioned this

Innovation Zone, so we could create a

environment as being typical for 5G

testbed to define relevant use cases

deployment,” comments Wilf Nor-

that represent the smart factory of the

rlinger, Vice President, Samsung

future. We will begin in the innovation

Electronics America’s Networks

zone, and then bring it to the factory

Division. “Once we saw the potential of

floor in later phases.” w w w.ma nufa c t uri nggl o b a l. com

LEADERSHIP

Connecting industrial systems,

30

“We are excited to expand upon our

leveraging data and embracing

recent commercial networks agree-

automation to enhance operational

ments with AT&T to bring 5G technolo-

performance will no doubt lead to

gies to the forefront of industry. As a

increased productivity at every stage.

leading provider of mobile and wireless

Combining AT&T’s 5G wireless

services to businesses, AT&T has a

technology with Samsung’s 5G

deep expertise in developing solutions

network equipment, all parties will look

for enterprise verticals.,” states

to develop innovative products,

Norrlinger. “We were announced as a

services and solutions, following

5G vendor for AT&T last fall, and by

various 5G studies. Areas of focus

partnering on testbeds like this, we‘re

include the utilisation of 4K video as a

seeking ways to advance 5G use cases

sensor, the use of analytics to improve

to accelerate new market opportunities.”

plant security and detection response,

Working alongside the tech giant on

Industrial IoT (IIoT) sensors that

an array of digital initiatives, Shiraz

monitor for environmental and

Hasan, AT&T’s VP of Industry Solutions

equipment conditions, as well as

and Marketing admits that his passion

location services to improve safety.

for all things tech has led him to remain at the forefront. From the growth of the wireless industry to the development of business to business (B2B) and business to consumer (B2C) applications for smartphones and iPads, he explains that pioneering technologies, such as 5G, will continue to disrupt outdated business models. “Approximately 16 years ago, there was this concept around wireless data, where initial data networks that were General Packet Radio Services (GPRS) were very exciting and considered the most

M AY 2 0 1 9

CLICK TO WATCH : ‘WILF NORRLINGER SHARED WITH TECHREPUBLIC HOW 5G IS GOING TO INFILTRATE AND CHANGE EVERY INDUSTRY’ 31

advanced things,” he says. “It has been

network where data is being gener-

an exciting journey, not just internally,

ated, instead of in a centralised data

but also externally watching this

processing warehouse,” it works to

market evolve.”

break down various applications,

Building a global 5G ecosystem, as

extend its real-time data processing

well as defining profitable use cases

capabilities, and localise data

will no doubt unlock increasingly

application traffic.

connected manufacturing competen-

“Being one of the largest providers

cies. AT&T recently announced a new

in the Internet of Things (IoT) space,

multi-access edge compute (MEC)

this is something that appears in all

solution as part of their 5G for Busi-

industries” explains Hasan. “We take

ness strategy. Defined by Hewlett

a multi-prong approach to security

Packard Enterprise as “the practice of

and have the ability within our cellular

processing data near the edge of your

networks to route wireless traffic w w w.ma nufa c t uri nggl o b a l. com

LEADERSHIP

by assigning private IP addresses.

That could be a subnet that a customer provides us. So, that traffic is never visible on the internet at all.”

“There are latency improvements when you are able to route the traffic within the facility and keep information local, where we can process information much faster,’ Hasan continues.

“It also caters towards the security element to the information that’s very proprietary in a manufacturing environment. It’s something we’ve done on traditional cellular networks, 32

but with 5G, we can route that traffic from those sensors within the factory and keep it local to that location.”

Norrlinger adds: “5G promises to have a significant impact on Industry 4.0 connected manufacturing. It has the power to unlock new experiences in areas such as augmented reality (AR), machine learning and artificial intelligence (AI) applications, intelligent robotics, and predictive maintenance.

Combined with compute power at the edge, this Innovation Zone will strive to show how’s manufacturing’ can evolve and strengthen the overall industry.”

“If you have an edge computing solution installed, all the machineM AY 2 0 1 9

“ AT&T HAS A DEEP EXPERTISE IN DEVELOPING SOLUTIONS FOR ENTERPRISE VERTICALS” — Wilf Norrlinger, Vice President, Samsung Electronics America’s Networks Division

generated data that’s coming off your assembly line can be kept local.

That same solution can also offer a Wi-Fi experience,” continues Hasan.

“If employees are utilising it for browsing, that traffic can ride the macro network, and a multi-edge compute solution enables users to differentiate between these two types of traffic,

The 5G testbed will be located at Samsung Austin Semiconductor, featuring AT&T’s 5G wireless technology with Samsung’s 5G network equipment

and decide how to manage each type of data strand.”

With more and more devices being connected, the concept of edge computing remains critical across the manufacturing space. The amount of information that endpoints generate continues to rise, therefore the utilisation of this technology will allow information to be processed rapidly, and to a high standard.

“For instance, IIoT sensors can monitor environmental and equipment conditions, such as vibration, temperature and speed, on top of location services, to improve safety,” says Norrlinger. To give an example, in an assembly line there’s certain levels of vibration that’s expected. As long as the particular area of assembly line is performing within defined parameters, sensors can successfully collect that information. w w w.ma nufa c t uri nggl o b a l. com

33

LEADERSHIP

5G TE C HNOLOG IES FACTS

• The emergence of 5G technologies will set the stage for the evolution of Smart Factories • The Innovation Zone will work to develop Smart Factories of the future • The 5G testbed will deliver significant insight into how to improve manufacturing and system performance

• C onnecting industrial systems, leveraging data and embracing automation will lead to increased productivity at every stage • AT&T’s 5G network launched in 12 US cities in 2018, making it the first operator to establish a mobile network underpinned by 5G

34

“However, if it breaches those

Taking its 5G capabilities one step

parameters and the vibrations have a

further, AT&T’s 5G network launched in

significant impact, immediate action

parts of 12 US cities at the end of 2018,

can be taken based on the information

making it the first operator to establish

that gets processed,” affirms Hasan.

a mobile network underpinned by 5G

“Lower latency is available with 5G,

technology. With plans to extend the

where edge computing can allow us to

technology to parts of another 9 US

do things like this. Manufacturers can

cities by the end of 2019, other

therefore, gain access to predictive

providers, such as T-Mobile and Sprint

information regarding the performance

are quickly following suit. “We’re

of factory equipment, reducing potential

looking forward to the handsets which

downtime across the factory floor and

will be also become available in the

ensures companies are increasingly

second half of 2019, which come from

proactive rather than reactive.

Samsung,” notes Hasan. “It’s creating

M AY 2 0 1 9

35

an experience for our customers

improved reliability and latency. But it’s

that allows them to do things they

not just faster speeds – it’s a network

haven’t been able to do in a mobile

that makes a connected, near real-time

environment before.”

world possible, and we anticipate 5G

Providing ample opportunities to transform the capabilities of manufac-

technologies will help accelerate this,” concludes Norrlinger.

turers, the adoption of 5G will drive essential change and support the ongoing growth of the Smart Factory.

Edge computing will also allow for enhanced decision making.

“The network of the future impacts the entire user experience, including faster speeds, greater coverage, and w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

Transforming packaging with GE Digital 36

Filing its second IPO and achieving ₏1.7bn turnover, Swiss packaging maker SIG Combibloc’s focus on Digital has completely transformed the lives of its employees, as well as its customers WRITTEN BY

M AY 2 0 1 9

CATHERINE S TURM AN

37

w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

R

enowned for its unique technology and the creation of innovative, environmentallyfriendly packaging solutions, SIG Com-

bibloc’s range of packs, flexible filling machines

and world class engineering has sought to address the challenges within an ever-evolving consumer market. No longer solely price driven, consumers are demanding products which not only cater to their busy lifestyles, but for goods and services which are healthy, sustainable and value for money.

Placing increased pressures on the food packaging industry, technology is playing a significant role in the adherence of food safety standards, as well 38

delivering filling and packaging flexibility within manufacturing operations.

According to the The McKinsey Global Institute, data-driven organisations are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times as likely to be profitable.

A lead figure in the digital transformation and global IT at SIG, Senior Vice President Corporate Development & Digital Transformation, Christian Alt has looked to fully connect SIG’s lines to guarantee further efficiencies. Utilising high volumes of data to improve asset efficiency and overall equipment effectiveness (OEE), SIG not only sells packaging materials or equipment, but a complete end-to-end solution to its customers.

“It’s important for the customer to have a partner that is not just completing a transaction, but will M AY 2 0 1 9

39

help optimise their filling lines, where they then also have packaging material and services to ensure the right quality of filled products on time in full,� states Alt. Generating high volumes of data, he explains that SIG for more than 20-years has developed its own efficiency control system that connects its filling lines and provides line monitoring capabilities to its customers. In order to move to the next level of IoT and predictive analytics and machine learning, SIG looked to collaborate with a technology leader w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

“ GE Digital have a number of trusted and proven digital solutions and tools available,and it’s applying these solutions together with our domain expertise in food and beverage packaging that makes it a winner in our industry” 40

— Christian Alt, Senior Vice President Corporate Development and Digital Transformation, SIG Combibloc

to support the development of an integrated solution, particularly in the field of filling line asset optimisation, combining asset performance management (APM) with field service management (FSM).

“Studying the market, we weren’t just interested in another FSM tool.

We were interested in an integrated APM/FSM tool to help us to monitor the assets and then manage the strategies per component. There were solutions out there, but not too many that can run in an integrated way,” explains Alt. M AY 2 0 1 9

Narrowing down a long list of providers, GE Digital was ultimately selected, alongside its cloud-based Predix APM and ServiceMax solutions.

“At the beginning, we were solely looking for an integrated solution - we weren’t looking for a strategic partnership at that time. However, by going through the process, it became very important to us. GE Digital have a number of trusted and proven digital solutions and tools available, and it’s applying these solutions together

CLICK TO WATCH : ‘SIG & GE DIGITAL: A PARTNERSHIP FOR DIGITAL TRANSFORMATION’ 41

with our domain expertise in food

a digital platform strategy, from digital

and beverage packaging that makes

assets and services at our customer’s

it a winner in our industry,” he adds.

factories to our own production sites

GE Digital’s integrated solutions, but

worldwide, and linking all to our digital

most importantly, its people and cultural

packaging solutions called ‘Connected

mindset were a number of essential

Pack.’ Making sure we’re able to provide

factors, expresses Alt. Working closely

a unique ID on every aseptic carton

to deliver an integrated solution which

pack that our customers run through

is now being rolled out worldwide, both

our filling lines, and then managing

parties are keen to kickstart other

that data to allow brand owners,

elements within SIG’s digital strategy to

retailers and consumers to use our

provide enhanced equipment productiv-

platform for engagement and commu-

ity and greater operational efficiency.

nication,” he says.

“From the beginning, we have defined

Bolstering its digital marketing w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

efforts, each unique QR code, printed at SIG’s factories or at its customers premises, has seen consumers further interact and engage with brands within the delivery of SIG’s connected packs.

Such technology has also allowed consumers to interact with brands, find products easier, engage in loyalty programmes or lucky draws, highlighting further possibilities for retailers.

Additionally, its integrated track and trace system has sought to provide a comprehensive analysis across the 42

product journey; from raw materials, processing and filling to quality checks and logistics operations, boosting quality control, efficiency and consumer trust. “Each brand has its own strategy, but in the end, brand owners and retailers all need that unique ID which sits on the packaging. This is where we foresee a lot of potential, to sit in the middle with packaging and provide a platform where brand owners and retailers can build their relationships with consumers in a new way,” adds Alt. “In terms of which printers are we using, the kind of integration into manufacturing execution systems (MES) we are bringing, where we store M AY 2 0 1 9

€1.7mn Approximate revenue

1853

Year founded

5,000

Approximate number of employees

our data - big retailers will push for standardisation, where we can use blockchain to really deliver full credibility for tracking and tracing. Wherever there are issues of authenticity or quality, this technology is highly relevant. Connectivity, big data, analysing data and making our operations run better is essential.�

With the mid-term aim to deliver further digital innovations, such as remote service and 3D-printed spare parts, SIG will remain a key player in influencing consumer purchasing as a result of its commitment to sustainability. The first company to launch a non-aluminum containing barrier within its aseptic carton packaging, its manufacturing operations fill 9,000 large-format carton packs per hour, 12,000 medium sized carton packs, as well as 24,000 small carton sizes in the same time frame, the business continues to look at ways to removing all materials which go against its recycling efforts. “20 years ago, it was good to have aluminum in the structure, but these days everybody knows how much energy goes into producing aluminum.

Our packaging has always been fully w w w.ma nufa c t uri nggl o b a l. com

43

D I G I TA L F A C T O R Y

“ We’ve now gone further to ensure we have 100% FSC certified liquid paper board.We now also have our Signature Pack, which is 100% linked to plant-based renewable material” — Christian Alt, Senior Vice President Corporate Development and Digital Transformation, SIG Combibloc

44

recyclable, but the recycling rates in

However, although the business

certain regions worldwide still have

has advanced significantly with regards

potential to go up further. A polymer-

to providing innovative, sustainable

based barrier already has a much lower

packaging, it remains commonplace

CO2 footprint by approximately 30%,”

for costs to initially creep upwards

notes Alt. “In 2001, we launched our

as a result of introducing processes

first aluminum free aseptic carton pack.

or materials. Switching to sustainable

We were ahead of our time, but today it

options has also presented further

is a huge asset. We’ve now gone

ethical challenges for manufacturers,

further to ensure we have 100% FSC

where cutting down rainforests which

certified liquid paper board. We now

grow sugar cane which is then convert-

also have our Signature Pack, which

ed to polymer, for example, is an area in

is 100% linked to plant-based renew-

which SIG has aimed to tackle through-

able material.”

out implementing sustainable sourcing

M AY 2 0 1 9

45

to optimise its environmental footprint.

our competition. It’s important that it

“We’re making our operations more

provides benefits to our customers

efficient, logical, intuitive, more user

first, and only then to ourselves. It’s

friendly, and to a certain extent of

also just a fact that if you’re not

course, digital can help to improve

embracing digital, and if you’re not

our environmental profile,” states Alt.

using it to make your own unique

All machines at SIG house the lowest

selling points (USPs) even stronger, it

rate of waste, below 0.5%, the lowest

will not work. It’s not something that’s

industry standard, delivering significant

standalone, it’s integrated, and only

speed and efficiency.

something that will succeed if you can

“I think what’s always relevant is why we’re doing this, to stay relevant, to further develop the advantages that we deliver to the customers, versus

generate that added value - otherwise, it’s just a fad.

At SIG, success is fully measured by its commitment to continuously w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

“ We’re making our operations more efficient,logical, intuitive,more user friendly” — Christian Alt, Senior Vice President Corporate Development and Digital Transformation, SIG Combibloc

46

M AY 2 0 1 9

improve its processes to the benefit of its customers, with added value firmly at its centre. Its people-focused culture and innovative mindset has seen the business fully transform its capabilities, where more than 500 field service engineers have been placed at the helm to support customers anytime, anywhere, in order to ensure the delivery of smarter factories and guarantee customer satisfaction.

“We are generating big data, and we have the predictive analytics and machine learning algorithms in place.

We’ve already built a platform team, because it’s not just relevant out in the field of customers, it’s also relevant in our own plants, in our own assembly sites, in R&D, it changes how we understand how our machines work out in the field, so that we can also develop better solutions,” says Alt. Continuously working on its processes to further configure and improve its service delivery, SIG remains on a journey to deliver intelligent, connected factories which deliver the highest efficiency, flexibility and quality.

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47

TECHNOLOGY

48

Cognitive predictive maintenance transforms manufacturing New innovative technologies are transforming manufacturing at an unprecedented rate, where sophisticated analytics are leading to significant advances across the sector WRITTEN BY

M AY 2 0 1 9

RUBAN PHUK AN

49

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TECHNOLOGY

T

oday’s manufacturing sector is at the centre of transformation. Technology has fundamentally changed manufacturing processes

leading to smart production cycles that produce

smart end products. Like most industries, the manufacturing industry, has been reaping the benefits of data analytics to optimise production processes and boost productivity for years.

Smart machinery and equipment carrying sensors and data points that can generate and log a vast volume of data are nothing new. What is, however, changing the game in the sector is the ability to analyse, visualise and productionise 50

this data to create real business value. Artificial Intelligence (AI) and Machine Learning (ML), in particular, are shifting the manufacturing paradigm from ‘fast reaction’ to a truly cognitive predictive model for maintenance.

ENTER COGNITIVE PREDICTIVE MAINTENANCE Recalls, faults and broken parts make headlines around the world, costing brands millions of pounds in repairs and significant reputational damage. Data analytics has so far offered manufacturers valuable insights in terms of identifying and understanding the root cause of a past problem and prevent similar occurrences in the future. This approach has been effective but requires significant investment in data scientists to analyse the data.

In addition, organisations often focus on historical M AY 2 0 1 9

“ AI and Machine Learning are shifting the manufacturing paradigm from ‘fast reaction’ to a truly cognitive predictive model for maintenance” — Ruban Phukan, VP of Product at Progress, DataRPM

51

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TECHNOLOGY

“ 80% of the problems and faults are new and unknown to most industries. Unless the signs for these 80% of the problems are detected early on, modelling on past failure patterns cannot be effective enough�

52

— Ruban Phukan, VP of Product at Progress, DataRPM

failure to draw learnings and spot patterns that will help them identify past failures or faults that are likely to reoccur. Although this process can provide useful insights, it is important to note that only about 20% of the problems that occur in the field are in fact repeat problems. This means that in reality, 80% of the problems and faults are new and unknown to most industries. Unless the signs for these 80% of the problems are detected early on, modelling on past failure patterns cannot be effective enough.

Data analysis performed by AI-powered platforms, on the other hand, enables manufacturers to move to the next level. Manufacturers are able to track multiple components of heavy machines and identify highly localised and contextual signals that indicate future potential problems, especially those that are new and unknown.

These micro-anomalies and small changes that can go undetected in the quality check process can be identified automatically as they occur and be responded to before they lead to current or future defects.

Thanks to ML, these

M AY 2 0 1 9

CLICK TO WATCH : ‘PROGRESS: COGNITIVE FIRST’ 53

platforms are able to teach them-

During the initial manufacturing

selves continuously and go beyond

process, cognitive predictive mainte-

the macro-patterns that the human

nance can identify and share alerts on

brain tends to spot. In this way,

in-line defects. This allows for prob-

breakdowns or faults can be predicted

lems to be addressed long before the

ahead of them occurring and sparking

product goes to market. Similarly,

product recalls or causing downtime.

when it comes to large industrial equipment where understanding and

LOOK AFTER THE ENTIRE PRODUCTION LIFECYCLE

assessing the health of the machine in

Predictive maintenance is most

ing, ‘Digital Twins’ can provide the

effective when it is deployed as a

answers.

holistic approach across the various touchpoints in the production process.

minute detail is essential yet challeng-

This technology enables machines to be paired with a digital double that w w w.ma nufa c t uri nggl o b a l. com

TECHNOLOGY

54

mimics actions and environments,

The role of predictive maintenance,

as well as their working conditions

however, does not stop once the

and depletion. Thanks to sensors

product is out of the factory. Once in

that generate the data and AI and ML

the market, the cognitive predictive

that enable the automatic processing

maintenance model can be derived

of the data, manufacturers can

from multiple data sources, like data

understand the health and readiness

collected from connected devices

of equipment down to the molecular

and service records, test data on

level. In this way, even the tiniest of

parts that have been replaced and

issues that would otherwise be

even social media. This data can be

missed during a manual inspection

used to identify and solve problems

process can be detected and

faster, to either avoid a recall alto-

addressed.

gether or at least initiate it sooner.

M AY 2 0 1 9

“Cognitive predictive maintenance has the potential to untie the manufacturers’ hands and deliver real ROI by eliminating production and post-purchase problems and inefficiencies” — Ruban Phukan, VP of Product at Progress, DataRPM

TOWARDS AUTONOMOUS MAINTENANCE

55

manufacturing industry operates.

Cognitive predictive maintenance has

What is even more impressive is that

the potential to untie the manufactur-

as technology advances continuously,

ers’ hands and deliver real ROI by

the end game is to achieve autono-

eliminating production and post-pur-

mous maintenance where the

chase problems and inefficiencies.

machines maintain themselves and

With product recalls, missed SLAs

seek expert intervention only when

and operational inefficiencies

necessary. Judging from the pace of

becoming a thing of the past, the

innovation, this technology might not

manufacturing sector can deliver

be that far-off.

unprecedented customer experience, higher margins, lower risks and a complete transformation of how w w w.ma nufa c t uri nggl o b a l. com

S U P P LY C H A I N & O P E R AT I O N S

56

HOW DOES SUPPLY CHAIN MANAGEMENT AFFECT MANUFACTURERS? The supply chain is being disrupted across the manufacturing industry as part of evolving consumer demands: Oliver Wight EAME’s Liam Harrington and Birgit Breitschuh discuss the long term effects of these changes WRITTEN BY AND

M AY 2 0 1 9

LIA M HARRINGTON BIRGIT BREIT SCHUH

57

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S U P P LY C H A I N & O P E R AT I O N S

M

anufacturing is undergoing a fourth revolution as automation and computing collaborate with

increasing complexity. Innovations such

as the Internet of Things (IoT), advanced robotics, analytics and big data, jump-start an organisation’s performance, improving customer satisfaction as supply chain management applies these developments to enable ‘Supply Chain 4.0.’ These pave the way for opportunities for value creation, collaboration and improved margin, but a business can’t benefit without the capabil58

ity to act upon them.

Success is dependent on automated, well-connected systems from cashpoint to manufacturer, guided by impeccably organised behaviours and processes within a well-structured organisational framework.

With volatility and unpredictability now the norm, rather than the exception, an optimised go-to-market strategy is pivotal so the supply chain can respond rapidly to constantlychanging market conditions. A mistake that many companies make is trying to just optimise the front-end of the supply chain – focusing on improving forecast and planning accuracy, or reducing inventory for example.

They fail to realise that to reap the benefits, the entire supply chain needs to be optimised M AY 2 0 1 9

59

with a full restructure to sufficiently serve the front-end; from the consumer all the way back through to suppliers’ suppliers.

BOARDROOM RESHUFFLE Historically, Supply Chain has always languished further down in the organisational hierarchy, reporting to Operations, rather than Operations being part of Supply Chain and its role has been limited to delivering the right quantities at the right time, at the lowest cost. Not anymore. The best in business elevate their supply chain to the senior executive team, realising that it’s capable of w w w.ma nufa c t uri nggl o b a l. com

S U P P LY C H A I N & O P E R AT I O N S

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‘ S UCCESS IS DEPENDENT ON AUTOMATED, WELL-CONNECTED SYSTEMS FROM CASHPOINT TO MANUFACTURER, GUIDED BY IMPECCABLY ORGANISED BEHAVIOURS AND PROCESSES WITHIN A WELLSTRUCTURED ORGANISATIONAL FRAMEWORK”

so much more than just supply and demand balancing. Their success isn’t just measured in low inventory costs; it’s measured in terms of driving the optimisation of sales.

Ultimately, you can’t save your way to prosperity. Turning profits of pennies into profits of pounds, or cents into euros and dollars, is rooted in increased revenues and margin growth; although there is certainly merit in streamlining processes, that’s not where the big bucks are made. With reduction of costs usually supply chain orientated – surplus inventory, exorbitant shipping costs or inefficient processes – Supply Chain has been limited in its opportunities to proactively pursue bigger profits.

To boost sales, it really is as obvious as ensuring that the supply chain is structured in a way that can anticipate and fulfil what the customer wants now, and what they will want in the future.

This can only be achieved by properly integrating Supply Chain into the wider organisational framework.

By offering supply chain executives a seat at the leadership table, organisations can have true cross-organisational transparency, with all members

M AY 2 0 1 9

CLICK TO WATCH : ‘IBP & SUPPLY CHAIN OPTIMIZATION: OLIVER WIGHT IN CONVERSATION WITH AIMMS’ 61 of the leadership team given access

accordingly. However, modern day

to the necessary insights to optimise

consumers are no longer the affable,

the business as a whole. With an equal

easily-impressed and continually

voice and equal accountability, Supply

content customers that they once

Chain becomes truly invested into

were. Increasingly demanding,

the business and will begin to seek

customers have moved online, with

out opportunities to actively generate

internet and mobile shopping becom-

revenue.

ing first choice for many, lured by the promises of next or even same-day

RAPID RESPONSE

delivery. It’s now about when and

Success is inextricably linked with

how, rather than what or who.

customer satisfaction. If an organisa-

For many customers, the online

tion meets consumer demand, or

channel is the fastest growing. How-

exceeds consumer expectation they

ever, a disorganised, disconnected

will see their revenue figures respond

supply chain will result in dissatisfied w w w.ma nufa c t uri nggl o b a l. com

S U P P LY C H A I N & O P E R AT I O N S

62

‘A PPLIED IN THE CONTEXT OF LARGE MULTI-NATIONAL ORGANISATIONS, PLANNING CONTROL TOWER DECISIONS ARE MADE CENTRALLY, SYNCHRONISING WHAT’S BEING MADE IN MULTIPLE FACTORIES AND WHAT’S DISTRIBUTED TO MULTIPLE MARKETS’ customers, lost sales and surplus

towers manage and monitor the

inventory. There needs to be a con-

multiple autonomous events at airports

crete go-to-market strategy in place,

– take-offs, landings, on-the-ground

and that’s impossible without an

transport and logistics etc. By tracking

integrated end-to-end supply chain.

independent but parallel events, the

End-to-end supply chain is about

control tower can improve perfor-

managing the supply chain in an

mance, respond in real-time to

organised way, and this is where the

projected or unexpected events and

concept of planning ‘control towers’

ensure operations run as expected.

emerges. Predictably, its origins are

And avoid potential disasters.

in the world of aviation, where control M AY 2 0 1 9

When applied in the context of large

63

multi-national organisations, planning

the decisions being made benefit the

control tower decisions are made

organisation as whole, enabling them

centrally, synchronising what’s being

to optimise the allocation of products

made in multiple factories and what’s

and services.

distributed to multiple markets.

Cottoning onto this concept, a number

Decision-making isn’t devolved to a

of software solution providers now

local level, rather, it all stems from one

offer IT packages which include

centralised source with access to

a ‘Control Tower’ module. Most often,

insights for the whole organisation,

these are cloud-based data-storage

rather than just a single sub-division.

systems that enable companies to

This way, businesses can ensure that

leverage their end-to-end supply chain w w w.ma nufa c t uri nggl o b a l. com

S U P P LY C H A I N & O P E R AT I O N S

visibility performance by using real-time data analytics for optimised performance. The most sophisticated systems not only provide visibility, but also respond to disruptions and provide collaboration capabilities and functionality to automate processes and controls everything from optimum products distribution to temperature of perishable products monitoring.

However, if organisations continue to operate on internal customer methodology or just by optimising the front-end of the supply chain, they are never going to be able to 64

improve to the extent that they can realistically afford to compete.

INTEGRATED BUSINESS PLANNING The solution may be straightforward – an optimised end-to-end supply chain – but it’s not simple, and the steps to achieving this require more effort than many organisations are willing to put in. When it comes to business improvement, opportunities are typically disguised as hard work, so they often go unrecognised. Organisations are quick to buy into ‘miracle’ products, rather than commit to a complete overhaul of their practices - they’re willing to spend time and money on systems but won’t spend on the actual transformation they need to make to M AY 2 0 1 9

the supply chain itself.

Without doubt, technology advancements have significant merit, but they need to be implemented alongside a thorough transformative strategy to ensure sustained success. This is where Integrated Business Planning (IBP) proves pivotal - it’s a process which ensures early focus on any potential gaps in business performance, allowing organisations to predict and respond positively to changing conditions over the next 24-36 months. Furthermore, it allows business leaders to allocate critical resources - people, equipment, inventory and materials - in the most profitable way.

However, it’s essential to realise that although IT systems need to complement an existing IBP process, IBP in the 21st century is also inextricably reliant on the data these IT systems capture. IBP facilitates effective long–term demand planning and management, but data analytics enables control of short-term variability. In a volatile, consumerdriven and unpredictable environment, this control is invaluable.

Demand Sensing provides real-time consumer insights to enable organisations to immediately detect and respond proactively to changes in demand within the execution window. By leveraging analytics and the w w w.ma nufa c t uri nggl o b a l. com

65

S U P P LY C H A I N & O P E R AT I O N S

latest mathematical algorithms, it creates an accurate picture of changing demand, based on the current realities of customer behaviour.

These early indicators allow organisations to react in-the-moment, responding accurately and efficiently to create an ever-improving customer experience. Efficient demand sensing and execution processes take the chaos out of short-term planning. They’re levers which ignite actions to real-time signals or responses of customers and 66

with lightning-fast reactions, companies improve customer service and

‘ D ECISION-MAKING ISN’T DEVOLVED TO A LOCAL LEVEL, RATHER, IT ALL STEMS FROM ONE CENTRALISED SOURCE WITH ACCESS TO INSIGHTS FOR THE WHOLE ORGANISATION’ M AY 2 0 1 9

increase sales revenue. But this is only possible with an integrated, end-toend supply chain.

GOOD IS THE ENEMY OF GREAT Many organisations can become good, but few become truly great - the deciding factor is rooted in the determination and goals of the leadership team. There needs to be a realisation that being prepared for the future isn’t instantaneous improvement,

67

it’s continuous transformation.

By setting the agenda, providing

will be flexible enough to accommodate the trends of the future and

the resources and leading the way to

ambitious enough to survive them.

transformation, business leaders can

The higher the ambition, the more

inspire the cultural change they need

significant the goals that can be

to create success. A strong leadership

achieved, and this requires leaders

and team-based culture enable

who are driven by an insatiable

organisations to react quickly and

desire for success.

with agility, in response to a constantly changing market and customer dynamic. Leaders need to provide the vision for the business - a vision that w w w.ma nufa c t uri nggl o b a l. com

Premier Partner

Associate Partners

Award Sponsors

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For further information please contact: Craig Smith / +48 604 144 769 / craig@EuropaProperty.com Anna Kaliszewska / +48 601 382 667 / anna@EuropaProperty.com

Beer Partner

Jury Members 2019

Marek Foryński

Kris Bledowski

Karel Zeman

Wolfram Braun

Panattoni Head of BTS Group

MAPI Council Director and Senior Economist

CBRE Global Investors Poland Head of Investment Operations Poland

AVON Operations Poland Vice President Global Manufacturing

Katarzyna Pyś-Fabiańczyk

Phil Goss

Courtney Fingar

Adam Zawadzki

Exeter Property Group Director Leasing and Development CEE

Perła Browary Lubelskie Vice-president of the Management Board

fDi Magazine Editor-in-Chief

Toyota Motor Europe Senior Project Leader

Philippe Beurtheret

Michał Nowicki

Łukasz Niesłuchowski

Bruno Lambrecht

CEETRUS General Manager Hungary

RECARO Director Quality and Deputy General Manager

Rockwell Automation Country Sales Director

CFE Poland General Manager

Dorota Raben

Preston Smith

Marek Potoczny

Adam Janus

CLIP Group Member of The Board

CDDI Founder & Executive

Valeo Group Industrial Projects Director

DHL Head of Real Estate Solutions CEE

T O P 10

TOP 10

Automotive manufacturers worldwide

70

Manufacturing Global counts down its top 10 automotive manufacturers worldwide WRITTEN BY

M AY 2 0 1 9

SEAN GALEA-PACE

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T O P 10

72

10

Suzuki Japan

Founded in 1909, Japan-based Suzuki has around 35 production facilities in 23 different countries and 133 distributors in 192 countries. The firm employs over 45,000 people and is one of the biggest automotive companies in Japan. Suzuki manufactures a range of different products including four-wheel drive vehicles, wheelchairs, automobiles and outboard marine engines. In March 2019, Suzuki and Toyota announced a joint venture to develop a new hybrid electric vehicle in the UK set to be based on Toyota’s Corolla model, according to The Guardian.

M AY 2 0 1 9

73

09

Groupe PSA France

The French company operates under the Peugeot brand and is the biggest PSA brand in Europe and worldwide. Based in Paris, Groupe PSA is considered Europe’s second-biggest automaker. The company’s brands include Citroën, DS, Ambassador, Opel, Peugeot, Vauxhall and Aixam. With approximately $84bn in revenue, the firm is set to enter the North American market in 2020.

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T O P 10

74

08

Fiat Chrysler (FCA) Italy / USA

Formed following the merger of Fiat and Chrysler in October 2014, FCA operates through two main subsidiaries FCA Italy and FCA US. With $133bn in revenue, the company holds its legal office in Amsterdam, the Netherlands, in addition to operating its main office in London.

FCA’s subsidiaries include Jeep, Alfa Romeo and Maserati.

M AY 2 0 1 9

75

07

Honda Japan

Founded in 1948, Honda is recognised globally as one of Japan’s leading automakers. With 45% of Honda’s vehicles manufactured in the US, the company has 31mn unit sales worldwide. The company is renowned for being the world’s largest motorcycle manufacturer and it has held the position since 1959. Honda is also considered the top producer of internal combustion engines by volume, with over 14mn internal combustion engines produced annually.

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T O P 10

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06

Ford USA

The US automotive manufacturing giant, Ford, was first established

by Henry Ford in 1903 and holds its main headquarters in Michigan, USA. The company is the second largest US-based automaker and accrued approximately $156bn in revenue in 2017. Ford employs around 202,000 people worldwide and manufacturers 64% of its vehicles in the US. In March 2019 it was announced that Ford has begun to expand production of its all-electric vehicles through the launch of a new $900mn facility in Michigan, according to BBC News.

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05

General Motors USA

As the biggest US-based automotive manufacturer by total revenue, General Motors operates in 37 different countries with its core automobile brands being Chevrolet, Buick, GMC and Cadillac. The company employs approximately 180,000 people worldwide and has 396 facilities on six continents globally. Formed in 1908, the firm produces around 10mn vehicles worldwide. In March 2019, it was announced that General Motors would make a $300mn investment at its Orion Assembly Plant in Michigan and create 400 jobs as it develops a new electric vehicle, according to CNBC.

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T O P 10

78

04

Hyundai South Korea

Formed in 1967, the company is the biggest automaker in South Korea and features at number four worldwide. Having unveiled the biggest integrated automobile manufacturing facility globally in Ulsan, South Korea, with an annual production capacity of 1.6mn units, Hyundai employs approximately 75,000 people and sells vehicles in 193 countries. Hyundai is the parent company of Kia Motors, following its acquisition in 1998.

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79

03

Nissan Japan

As the second-largest automaker in Japan, Nissan has been a key part of the Renault-Nissan-Mitsubishi Alliance since 1999. The company is considered to be the world’s biggest electric vehicle (EV) manufacturer and had produced approximately 320,000 all-electric vehicles as of April 2018. Nissan is also responsible for other brands such as Infiniti, Nismo and Datsun. It is expected that all vehicles of its division, Infiniti, will become hybrid or fullyelectric vehicles as of 2021.

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T O P 10

02

Toyota Japan

Just missing out on the top spot is Toyota with around $265bn in revenue. The Japanese company is a market leader in the distribution of hybrid electric vehicles and

80

is also a leading firm in hydrogen fuel-cell vehicles.

Toyota has a number of divisions including Lexus, Ranz, TRD, Gazoo Racing and Daihatsu. The firm produces over 10mn cars annually and is listed on the stock exchanges of New York, London and Tokyo.

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T O P 10

01

Volkswagen Germany

Topping the list is the Germany-based automaker Volkswagen with a revenue of around $278bn. The company had approximately 10.8mn global sales in

82

2018 and employs approximately 302,550 staff worldwide. Volkswagen’s main market is in China and the firm generates 40% of its sales and profits there.

Volkswagen has a range of major subsidiaries including Audi, Bentley, Bugatti, Porsche, SEAT and Lamborghini.

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY SEAN GALEA-PACE from around the world

10–12 JUNE 2019

84

15 MAY 2019

The Manufacturing Finance Summit

15th Anniversary Manufacturing Leadership Summit

[ OXFORD, UK ]

[ HUNTINGTON BEACH, CALIFORNIA ]

The Manufacturing Finance Summit

Now in its 15th year, the Manufacturing

sees the UK’s largest gathering of

Leadership Summit invites individuals

manufacturing finance professionals.

from all areas of the manufacturing

80 like-minded executives will explore

sector. With close to 60% of attendees

how the finance sector is impacting UK

situated in senior level roles, opportu-

manufacturers, from automotive, aero-

nities for networking with c-suite

space, defence, electronics, food and

executives, general managers, vice

drink and FMCG. With attendees given

presidents and directors will remain

the option to choose which speaker

central to those who wish to gain key

they listen to, the summit offers free-

insights from manufacturing leaders.

dom of choice revolving around three

Last year, notable companies such as

conference streams: Risk, Capital and

Bosh, Caterpillar, Dell, Cisco and Ford

Innovation.

attended this popular event.

M AY 2 0 1 9

19–20 JUNE 2019

AI & Big Data Expo 2019 [ RAI, AMSTERDAM ]

The leading Artificial Intelligence (AI)

85

and Big Data conference and Exhibition in Europe, this year’s AI & Big Data Expo is set to attract more than 2,000 attendees. Showcasing next genera-

19–22 JUNE 2019

attendees will hear from speakers on

Manufacturing Expo 2019

how to take their business to the next

[ BANGKOK, THAILAND ]

level by implementing AI and Big Data.

Over 85,000 industrialists in manufac-

With four co-located events, and more

turing and supporting industries in the

than 300+ speakers and exhibitors,

Association of Southeast Asian Nations

businesses will gain increased brand

(ASEAN) are set to meet with technol-

exposure, showcase their products

ogy providers at 2019’s Manufacturing

and take advantage of further net-

Expo. Last year’s event saw more than

working opportunities.

90,000 people in attendance.

tion technologies and strategies,

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EVENTS & A S S O C I AT I O N S

09–11 JULY 2019

86

The Global Manufacturing & Industrialisation Summit (GMIS) [ YEKATERINBURG, RUSSIA ] The Global Manufacturing and Industrialisation Summit is now in its second iteration and is certainly

14–16 AUGUST 2019

Vietnam Manufacturing Expo 2019

not to be missed. The event focuses

[ HANOI, VIETNAM ]

on innovation and Fourth Industrial

Although Vietnam’s Manufacturing

Revolution technologies in the global

Expo released limited information

manufacturing sector. In particular,

regarding its event for 2019, over 200

the conference will look at the UN’s

brands from 20 countries were in

Sustainable Development Goals and

attendance in 2018. More than 7,000

the role of nature inspired technolo-

industrialists looked at how investing

gies in manufacturing. This theme

in new technologies could transform

will be explored through interactive

their traditional manufacturing plants

debates, sessions and workshops.

into world-class production factories.

M AY 2 0 1 9

30 SEPT– 03 OCT 2019

18 SEPT 2019

Canadian Manufacturing Technology Show

Industry 4.0 Exchange

[ TORONTO, ONTARIO ]

[ DERBY, UNITED KINGDOM ]

Serving more than 90,000 manufac-

Sponsored by renowned companies

turing businesses in Canada,

such as Epicor and Sage Enterprise

contributing CAN$610bn to the local

Management, the Industry 4.0

economy, the Canadian Manufacturing

Exchange event brings together Manu-

Technology Show (CMTS) is the

facturing IT professionals, architects,

country’s largest manufacturing event,

CIOs, CTOs and more to look at ways

welcoming leaders across the auto-

to enhance supplier performance and

motive and aerospace industries

the advantages of innovative technolo-

worldwide. Workshops, tours, exhibitor

gies and range of software solutions

demos, presentations and panel

to drive long-term growth. Attendees

discussions will be on offer, which will

can attend a range of sessions, cover-

explore key pain points, as well as

ing topics such as ‘connecting the

solutions which can solve modern day

digital supply chain’ to mastering ‘the

manufacturing challenges in order

challenges of modern manufacturing

to take manufacturing industry into

with ERP.’

a new age.

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88

TE Connectivity: Transforming manufacturing WRITTEN BY

JOHN O’HANLON PRODUCED BY

TOM VENTURO

M AY 2 0 1 9

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TE CONNECTIVITY

The automation of manufacturing processes is driving the rapid development of the products of tomorrow: Roberto Lu, Vice President – Technology: Automation Manufacturing, Global Operations, explains how…

B

ack in 1941, Aircraft Marine Products (AMP) was founded, as so many companies were, as part of the technical leap

forward catalyzed by war. The need for rapid 90

development and deployment of new ships and aircraft spelt the death of labor intensive manufacturing practices such as manual soldering of electrical connections, and AMP – which would later become TE Connectivity – established itself on its ability to develop solderless connectors that could be changed quickly but without losing the ability to pass current reliably in demanding conditions.

78 years on, this market has transformed very much to TE Connectivity’s advantage. The company is still adding value at the interface between devices and solving the problems presented at those interfaces. Electronics are ubiquitous.

Domestic appliances, automotive, aerospace, energy, manufacturing, medical devices and more all call for specialized and smart connectors to enable transformations through the internet of M AY 2 0 1 9

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TE CONNECTIVITY

“ Our production today is all about automation and semi-automation” — Roberto Lu, VP Technology, TE Connectivity

things (IoT), machine learning (ML), automation and robotics.

This places TE Connectivity firmly among the essential global companies that most people haven’t heard of, sitting behind the label on your smartphone, your transportation, all of your internet activity and every experience you have. It develops and manufactures switches, cable assemblies, relays, antennae and many more product categories as well as critical connection solutions for fiber optics.

Today the company employs 80,000 people, makes 220bn products a year,

92

achieved sales of $14bn in 2018 and has 130 manufacturing and engineering centers around the world.

AMP was acquired by Tyco International in 1999, becoming part of Tyco Electronics in a 2007 restructure.

In 2011, however, it rebranded itself as TE Connectivity partly to reflect its approach to the market and partly to avoid confusion with other Tyco companies. This happened under the leadership of Tom Lynch, CEO from 2006 until 2017 and now Chair of the Board. Attracting talent was an important part of the former Motorola CFO’s strategy, as was shown in 2011 M AY 2 0 1 9

CLICK TO WATCH : ‘ENGINEERING THE FUTURE’ 93 when he reached out to a high-flying

about the company at the time. I was

Boeing executive to fill the newly

attracted by the breadth of TE’s global

created job of Vice President –

reach and the realization that it is

Technology: Automation Manufactur-

present wherever there is a signal –

ing, Global Operations.

whenever you call someone you are going through TE products!”

CAPTIVATED BY CONNECTIVITY

Having no predecessors, at first Lu

What persuaded Roberto Lu to take on

worked on his own and without a budg-

this challenge? “Tom had brought in

et. “I travelled extensively in the first

Rob Shaddock as CTO from Motorola:

weeks and I was amazed at the number

they saw they needed someone to run

of opportunities that I saw to contrib-

manufacturing technology so they

ute on the manufacturing technology

created my job. I hadn’t planned to

side,” he explains. As a part of the

leave Boeing, but I was really captivat-

global corporate headquarters

ed by TE, though I didn’t know much

organization, reporting to the CEO w w w.ma nufa c t uri nggl o b a l. com

TE CONNECTIVITY

94 through the head of operations, Lu’s responsibility covers all the TE

acronym stands for automation!”

This nimble approach typifies the

segments: Communications, Trans-

company and its leadership, he

portation and Industrial. Today he has

continues. “Back in 2012 it was quite

a team of 50 engineers located in the

visionary of the company to see that

USA, Mexico, Europe and China but

automation was going to be such a big

his organization had to be built from

deal. We have to give this credit to our

scratch. “In March 2012 I inherited a

leaders because who can estimate

small team and was allocated a budget

what is going to happen a few years

– my boss asked me what I wanted to

down the road? That is another reason

call it, so I said AMT. At the time that

that I really like this company: the

stood for advanced manufacturing

leaders are not only interested in this

technology but we rethought that,

quarter’s performance on the stock

taking into account the rapid growth of

exchange market but also looking

automation, and now the A in the

forward years down the road to see

M AY 2 0 1 9

where we’ll be in the long term.”

You can buy TE products across the

stage to solve connectivity issues before the product is made. Team

counter or even online through

members from TE Connectivity work

distributors or the company’s website.

full time at the engineering and

However, most of TE’s business

production facilities of nearly all

comes from engagement with OEMs

of the world’s global auto and aircraft

with whom the company works closely

makers. There’s also a high percent-

to develop solutions for next-genera-

age of TE content within the critical

tion products, right from the concept

control functions that maintain the

E XE CU T I VE PRO FI LE

Roberto Lu, Vice President – Technology: Automation Manufacturing, Global Operations TE Connectivity (NYSE: TEL) is a $14bn global industrial technology leader. TE connectivity and sensor solutions are essential in today’s increasingly connected world.

TE collaborates with engineers to transform their concepts into creations – redefining what’s possible using intelligent, efficient and high performing TE products and solutions proven in harsh environments. He works closely with the company’s manufacturing and operation leaders to advance TE’s overall manufacturing capabilities in automation, artificial intelligence and machine learning technologies.

He charters TE’s global manufacturing technology strategies and roadmaps, which guide the company’s manufacturing technologies, initiatives, and the overall development of new manufacturing processes. Manufacturing technologies from his team reach more than 102 TE factories in EMEA, the Americas and Asia.

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TE CONNECTIVITY

$14bn Approximate revenue

2004

Year founded

80,000

Approximate number of employees 96

M AY 2 0 1 9

97

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M AY 2 0 1 9

“ We have 8,000 engineers working on connectivity solutions” — Roberto Lu, VP Technology, TE Connectivity

speed and stability of the 350+ kph Beijing to Shanghai high speed train link, Lu says. It’s worth noting that TE Connectivity is among the biggest foreign employers in China, where it has more than 2,000 engineers working on product research and manufacturing development.

The competitive advantage of vertical integration can’t be overstressed.

A major transportation organization, for example, wanted connectivity solutions to deliver fast streaming of media content. Weight reduction and efficient operation were key criteria.

“They came to me with the next question: what about manufacturing technology and were we going to manufacture in a low cost location with a lot of manual labor? I could assure them that we have 11 patents on this product family manufacturing technology. We own it. Our production today is all about flexible precision automation and semi-automation. Our customer can rest assured that TE can not only produce the parts to the satisfaction of the customer but that we have our manufacturing technology in-house and they have access to our technical team members including myself!” w w w.ma nufa c t uri nggl o b a l. com

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TE CONNECTIVITY

INNOVATE AND AUTOMATE As the leader of a global center of excellence in assembly automation, including manufacture and assembly, innovation is important to Lu. “We must lead with the next ready-to-deploy technology otherwise the innovation pipeline runs dry, and that is bad business. The opportunities presented

by IoT are taking us in many directions.

At our engineering centers we have top grade engineers developing innovations that will be needed in transportation, for example, as driverless cars 100

and even ships and aircraft become a reality. We have 8,000+ engineers working on those connectivity and sensing solutions. Out in the field their concern is to build customized solutions for major connectivity platforms, and work on the production floor to implement these solutions.” As we have seen, the IP the company possesses aids the customization of solutions – once a successful implementation has been established at one site, it will be rolled out at multiple sites, saving time and money.

On the manufacturing side, his team is constantly working on improving performance and finding new soluM AY 2 0 1 9

tions: one of the biggest challenges (and market opportunities) is presented by high-speed communications. In this field alone, he says, TE holds more than 200 global patents. Here automation has been the key. “In many product categories we are achieving over 99% first-time-right pass rates. There’s no way that can be achieved through manual processes, and our customers really appreciate that reliability. We have developed spatial intelligence machine learning capability for a variety of our products, with at least 18 deployments across sites of various business units. We use artificial intelligence to learn what is done right and what is not: there’s deep learning behind our processes and our inspections to increase our speed and quality.”

In 2011, Roberto started to draw up technology roadmaps to chart forward development, and today he and his team continue to use this approach.

A year later, with the support of Rob Shaddock and Tom Lynch, he introduced TE Connectivity to the global RoboCup competition. With so much talent residing in its engineers, dispersed as they are, it was necessary to find collaborative routes to w w w.ma nufa c t uri nggl o b a l. com

101

TE CONNECTIVITY

102

innovation. “Innovation is a team sport,

NEVER-SATISFIED CURIOSITY

and it’s everybody’s job,” said Rob

One of Lu’s great strengths is his

Shaddock, former CTO and Lu’s boss

desire to learn. Since bagging his first

at the time. Teams participating in

degree in 1985 at Taiwan he gained

RoboCup use vision-guided robots to

four more advanced degrees from

improve TE production processes and

American universities including a

provide significant ROI. Lu’s AMT team

doctorate in industrial engineering.

runs robotics courses for the partici-

There’s continuity from his work at the

pating team members, training them in

Boeing Company, where he worked for

working with new applications such as

over 13 years, and his present role in

collaborative robotics. The first

that they both involved manufacturing

competition took place in 2012 and it

technology research and development

has run annually ever since.

– though the transition was not an

M AY 2 0 1 9

obvious one. “I was honored to work alongside so many innovators at Boeing and was one of the first few engineers working on the Boeing 787 in 1999. We had to develop our internal processes because on something like that there’s nobody you can ask!”

Involvement with something as high profile as the 787 Dreamliner, and the experience of working at Boeing, where they say ‘The sky is not the limit – it is Boeing’s playground’ was “awesome”, according to Lu. “In my Boeing days I was very fortunate to have outstanding leaders and managers who inspired me.” The company became his own playground, he

“ Insatiable curiosity became a drive for me to seize every opportunity to contribute to Boeing locations globally” — Roberto Lu, VP Technology, TE Connectivity

admits. Poring over the internal maps of Boeing’s many locations he set himself the task of getting into every building on every manufacturing and fabrication site and finding out what happens there. A tall order, but he managed to do them all bar one.

“Insatiable curiosity you may say, but that curiosity became a drive for me to seize every opportunity to contribute to Boeing locations globally.”

He had every expectation of retiring as a senior Boeing Fellow when he was approached by Tom Lynch, who w w w.ma nufa c t uri nggl o b a l. com

103

TE CONNECTIVITY

104

he regards as the model of an inspirational leader. Perhaps he recognizes a

capabilities than we know.”

In 2015 at a global leadership event

kindred drive and curiosity in a

for the top echelon of the company Lu

corporate finance leader prepared to

was listening to a dinner presentation

leave his dream job as CFO at

when he heard a story unfolding that

Motorola to turn around the reputation

was rather like his own. “I realized that

of Tyco electronics. “It’s Tom who

this was actually my story: then my

has made TE Connectivity the really

name was announced and I had to

strong performance company it is

quickly gulp down my food and go up

today. He likes to inspire everyone,

on the stage to be presented with a

with the message that we have better

black leather jacket! The jacket is like

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105

a pilot’s jacket – it means you are a

made more mistakes than I would like

solo flyer, and it is a great honor, rather

to admit to! The key thing was that

like a lifetime achievement.”

I recognized them and accepted they

Despite this and many more achieve-

were part of my growth.”

ments, like the publication of his book on ASCL models in production engineering, Lu is refreshingly ready to admit he doesn’t know it all. Don’t be afraid to make mistakes as long as you learn from them, he says. “I am thankful to TE Connectivity because I have w w w.ma nufa c t uri nggl o b a l. com

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CHANTIER DAVIE: INTRODUCING CONNECTED FLEETS AND IOT WRIT TEN BY

SOPHIE CHAPM AN PRODUCED BY

JA MES BERRY

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C H A N T I E R D AV I E C A N A D A I N C .

Canada’s largest shipbuilder, Chantier Davie Canada, reveals how it is updating its technology to connect a shipyard the size of a small town

E

stablished in 1825, Chantier Davie Canada has been building ships for almost 200 years but has just started

to take the first steps on its digital transformation journey. The shipyard is the largest, highest capacity, and most experienced in 108

Canada. Davie Shipbuilding has a vision of being the nation’s “premier shipyard providing national strategic capability when it comes to the digital transformation,” claims Jeremy Citone, Technology Director of Chantier Davie Canada. “The yard has recently delivered the most complex vessel ever built in North America, and we are now focusing on innovating new ferries which use clean energy.”

“Being in a company with so much history, it’s a challenge in itself. Facilities are more than 2 kmsq. With its 56 buildings, it is really like a small town. When the shipyard reopened in 2012, it was 10 years behind with technology. Everything needed to be updated, from security, IT infrastructure to introducing Internet of Things,” notes Citone. Despite M AY 2 0 1 9

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CLICK TO WATCH : ‘CANADA’S NEXT AUXILIARY OILER REPLENISHMENT SHIP – EPISODE ONE’ 111 the numerous changes being made

were facing: to provide information

around Davie, its workers are entirely

when an where it is needed within our

involved and committed. “Major

environment.”

technology changes are always tricky

“The use of technology not only

to introduce. However, our workers

enables the shipyard to be more efficient,

are embracing the new tools they are

but it also makes the company more

provided with.”

sustainable, as it is able to move on

Citone notes that for him live information is key – while engineers are behind computers designing

from paper-based practices which are riskier and less reliable.”

Citone reveals that the shipyard’s

ships, the supervisors are onboard.

technologies are well on track to reach

“But how can you ask someone to be

Industry 4.0 levels. Over the past 3

efficient onboard a ship under construc-

years, he has introduced and fostered

tion if they don’t have access to that

a culture which has the goal of becom-

information? That’s the challenge we

ing a smarter and virtual shipyard. w w w.ma nufa c t uri nggl o b a l. com

C H A N T I E R D AV I E C A N A D A I N C .

“In five years I see the implementation of AI for shipbuilding.

AI will allow us to use our workforce smarter” — Jeremy Citone, Technology Director of Chantier Davie Canada 112

“We are now 3D scanning incoming

the 3D models,” he adds. Augmented

ships, both inside and outside. When

reality technologies allow them to be

we have a virtual ship, we can measure

onboard and visualize the ship the way it

it from the office. We can select the

will look like once completed. All piping,

best spot for a piece equipment. That

equipment, and lighting systems are

allows us to work around the clock with

displayed on top of what the camera

engineering companies all over the

sees directly on the tablets onboard

world,” Citone explains. As part of the

the ship. This way, the supervisors can

firm’s digital transformation journey,

understand and show the workers

supervisors have been equipped with

what to do and where to do it.

tablets, and Wi-Fi has been installed

“I believe live information and reporting

across the site. “With the tablets, our

is key. In-house developed apps allow

supervisors are able to draw on top of

the supervisor to have a clear view of

M AY 2 0 1 9

the progress made onboard and keep track of their budget per task. All tablets are connected to the main cluster and are regularly updated with any revisions as it is used. This reduces risks and mistakes” Efficiency, according to Citone, is the most important aspect of the company’s digital transformation journey. “However, as we are based in Canada, the labor is quite expensive compared to all of our international competitors.

Therefore, our employees need to be very efficient and technology-driven.”

However, Citone notes that live information is being used even further: “For every ship, we collect as much E XE CU T I VE PRO FI LE

Jeremy Citone After finishing his second Master’s degree in Computer Science in California, Jeremy was head hunted by the INOCEA group in Monaco to take on a role of a system engineer. His vision for shipyard technology led him to Inocea-owned Chantier Davie, the largest shipyard in North America. In 2017, just a few years after joining the company, he became the head of the IT department. Today, Jeremy works on implementing his vision by bringing high-end technology to the shipbuilding industry

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113

C H A N T I E R D AV I E C A N A D A I N C .

114

production data as we can. This live

recent major conversions, the Replen-

data allows us to update our norms for

ishment at sea vessel MV Asterix.”

the planning. I would like to see the end

While building the Asterix, the

of the averaging. With lots of data, we

company also prioritized cybersecurity,

now have the capability to get to a level

and designed an entire network for its

of accuracy we couldn’t dream of before.

connected ships. “Ships are more and

A good example of the marine industry

more connected to the internet; the

transformation is one of our most

engines, navigation chart systems,

M AY 2 0 1 9

715

Ships built at Davie

1825

Year founded

348

Metre Drydock

integrated management system are

strides forward, creating a training

all connected for maintenance and

system that resembles a video game.

updates.” Those technologies cannot

“It’s something completely new that

be implemented without having

we’ve never seen before in the marine

a shipyard mastering those technolo-

industry. We partnered with Race-

gies,” he continues.

Rocks, a Canadian company based in

On its journey toward Industry 4.0, the company has made significant

Vancouver that designs training systems in the style of video games. We gave w w w.ma nufa c t uri nggl o b a l. com

115

C H A N T I E R D AV I E C A N A D A I N C .

116

“ Ships are more and more connected to the internet; the engines, navigation chart systems, integrated management system are all connected for maintenance and updates” — Jeremy Citone, Technology Director of Chantier Davie Canada

M AY 2 0 1 9

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C H A N T I E R D AV I E C A N A D A I N C .

“ We gave them a 3D model of our ship and they made a video game out of it” 118

— Jeremy Citone, Technology Director of Chantier Davie Canada

M AY 2 0 1 9

them a 3D model of our ship and they made a video game out of it,” says Citone. “The crew can sit down with their computers in their rooms and train on how to extinguish fires, operate equipment and follow procedures.

Some training will display a virtual replenishment at sea console. The console is fully functional, every single button works – if they were to push the wrong button, the simulation will fail.” Using one-of-a-kind technology to train its staff marks the direction the shipyard is going in, “In 5 years I see the implementation of AI for shipbuilding. AI will allow us to use our workforce in an optimal fashion. We currently have accurate feedback on how long it takes to complete each job based on complexity, material availability, and manpower.

Planning won’t be based mainly on rules: we will be able to predict schedules using actual shipyard capabilities. And that’s a game changer for Canada.”

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120

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WORKING TO SOLVE WHAT MATTERS WRIT TEN BY

M ARÍA COBANO-CONDE

PRODUCED BY

M ANUEL NAVARRO

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SIEMENS

HOMERO JAVALERA, DIRECTOR OF OPERATIONS, EXPLAINS THE TRANSFORMATION THE MONTERREY PLANT UNDERWENT WITH THE LATEST TECHNOLOGICAL INNOVATIONS

S

iemens enjoys a privileged position as one of today’s leaders in the industries of technology, health-

care, and solutions for the processes of electrification and digitalisation.

122

Siemens may be defined as an actor that understands what truly matters in today’s society: the extreme urbanisation of the planet, globalisation, digitalisation, climate change, and the ageing of the population are some of the hot topics for which Siemens creates solutions that leverage change. All this is focused on the creation of a catalogue and implemented in three cornerstones: automation, electrification, and digitalisation.

Its production plant in Monterrey (Mexico) is going through a digitalisation renewal process that is making its manufacturing processes more agile and efficient – it’s truly a factory from the future.

Homero Javalera, director of Operations in Siemens Mexico, has been at the forefront of M AY 2 0 1 9

Homero Javalera, Director of Operations for Siemens Mexico

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SIEMENS

“SIEMENS HAS AN IIOT (INDUSTRIAL INTERNET OF THINGS) OPERATIVE SYSTEM CALLED MINDSPHERE, AND OUR 3.0 VERSION IS IN THE SERVERS OF AMAZON WEB SERVICES” — Homero Javalera, Director of Operations for Siemens Mexico

124

M AY 2 0 1 9

the plant’s operations for four years, a labour that has earned him awards as renowned as the Global Siemens AG Award 2016 (Werner von Siemens Award) for the best global performance, the biggest recognition awarded by Siemens in the entire corporation.

THE COMBINATION OF TWO BUSINESS AREAS The most relevant development that Javalera may have had in his adminis-

CLICK TO WATCH : ‘SIEMENS — MANIFIESTO INTERNACIONAL’ 125 tration to date has been the fusing together of two production plants into

$220mn and over 20mn units per year.”

Javalera delves into the plant creation

today’s Monterrey plant, where work is

process: “What we did was bring two

done in three different areas. “I took

factories together into one – we had

care of the transfer of two business

a single type of product here, and then,

areas and the coordination of the

we brought over two more from two

whole team, a task that consisted of

different factories. Now, we have three

building warehouses, hiring 1,000

types of products in Monterrey:

people, implementing ERP (Enterprise

residential circuit breakers, industrial

Resource Planning), redirecting the

circuit breakers, and safety switches,”

entire supply chain and all the suppli-

Javalera analyzes. “This isn’t just

ers, contacting internal clients and

a manufacturing facility; it’s an Investi-

investors, buying new equipment, etc.

gation and Development center as we

We have 1,500 employees in the

design and launch new products here

factory, and we sell approximately

as well. We have a group of researchers w w w.ma nufa c t uri nggl o b a l. com

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With over 66 years of experience in additive technologies, ARRK has amassed a wealth of knowledge to assist designers and engineers from a wide range of industries which include medical, consumer electronics, automotive, aerospace, and defense.

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SIEMENS

conducting advanced materials investigations using nanotechnology, and another group doing Investigation and Development with the supply chain group from Global Procurement in the areas of automation and digitalisation here in this organisation as well.”

“This is truly a company doing complex things, a company facing today’s most complex challenges. It generates technology to address issues such as climate change, energy distribution, clean energy generation... our portfolio 128

is vast in that sense. We also address the issue of the planet’s extreme urbanisation, and to do so, Siemens’s catalogue serves, for example, mobility, trains, smart buildings, and energy consumption control in urban concentrations. We have the opportunity to contribute that to our clients. Digitalisation is a global trend and a priority for Siemens. Through our portfolio, we provide solutions for our clients, and we’re also developing our internal systems. For example, we’ve grown very much in comparison to previous years with clients such as Amazon, Facebook, and Microsoft given the investments they’ve made in infrastrucM AY 2 0 1 9

“SIEMENS IS MIGRATING TOWARDS BECOMING A COMPANY THAT IS THOROUGHLY ABOUT DIGITAL TECHNOLOGY” — Homero Javalera, Director of Operations for Siemens Mexico

ture such as data centers.

The world is going electric, and Siemens has this whole catalogue.”

DIGITAL TRANSFORMATION FROM THE INSIDE Siemens Mexico doesn’t create innovation for its clients only, but it also applies it to its production processes.

The radical changes in the plant’s production lines were a result of introducing the most relevant trends in digitalisation to maximise resources. Javalera explains

how this change developed. “The change has been exponential in the last years, not so much before then.

Ten years ago, we made very slow changes as needs would arise and according to the available technology.

Now, we have a deeper understanding of digitalisation and automation; technology is more readily available, and new generations are entering the labour market with different skills in digitalisation.”

“Change in the past three or four w w w.ma nufa c t uri nggl o b a l. com

129

Proud Partner of Siemens Monterrey MX Digital Transformation

Smart Man Manufacturing www.InnovarSystems.com www.Innovar

The Siemens Mexico management team

131

years has been exponential indeed

transition and application of digital

since, 10-15 years ago, we hadn’t done

technologies: “Digital Factory is our

what we’ve been doing lately. For

division leading us through the

example, mobile technology already

digitalisation process – they have the

existed then, but today, new communi-

entire portfolio, and it’s quite vertical.

cation protocols in mobile technology

It includes the physical elements

allow for the exchange of data in

necessary to connect the machines

massive amounts and at unbelievable

and generate data as well as the

speeds. This way, data from thousands

elements for interconnectivity and

of connections in your production lines

industrial networking purposes. Our

may be connected in real time and be

Siemens PLM division has an entire

used in a very valuable way.”

software portfolio for the different

Siemens Mexico has its own team of experts in charge of leading the

stages in our digitalisation, and it also has the design software Siemens NX w w w.ma nufa c t uri nggl o b a l. com

SIEMENS

COMPAN Y FAC TS

• Siemens Mexico employs 1,500 collaborators in its Monterrey plant • On average, Siemens Mexico generates $220M in revenue, and it sells 30M units per year

132

1847

Year founded

372,000 Number of Siemens employees globally

$95bn+ Revenue in fiscal year 2017

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Siemens building in Monterrey, Mexico

to create digital twins of industrial processes and/or products such as cars, airplanes, circuit breakers, etc.”

By executing a circular strategy, Siemens uses these same digital processes to leverage the efficiency of the products it offers to market.

“For example, you can monitor the efficiency of our electricity generation turbines in real time. You can monitor the efficiency of the electric distribution and make decisions on the spot.

Also in real time and through customised solutions tailored to your needs, you can monitor and distribute energy in a smart way in cities and buildings.

Even at the production line level, through Siemens’s portfolio of software and hardware, you can know which engine is consuming more energy, or you can know what the peak times of energy consumption are in a smart building to implement energysaving projects,” he concludes.

INNOVATION APPLIED TO MANUFACTURE PROCESSES In Siemens’s Mexico particular case, the application of digital innovations is accomplishing a very high level of w w w.ma nufa c t uri nggl o b a l. com

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SIEMENS

CLICK TO WATCH : ‘SIEMENS MÉXICO— DIGITALIZATION’ 134 satisfaction with processes, produc-

of dollars by preventing potential

tion, and manufacturing. Javalera

failures from errors in the design of

offers exclusive information on this

the productions lines. Moreover, once

newly obtained acceleration: “We can

it’s running, you can make sure its

save on months of prototype develop-

efficiency is as close as possible to the

ment, long hours of engineering, and

efficiency you expect from production,

lots of money in materials and tools

emphasising automatic management

by simply creating digital twins for the

of the client’s demands, where we have

products before launching them.”

much less human intervention.”

“Before ordering new machinery

In matters of production execution,

and investing hundreds of thousands

we monitor the performance of the

of dollars in equipment, simulations

lines in real time, and we receive

are designed by computer right at the

an immediate response whenever

production line to determine what is

a problem arises. Regarding quality

really needed. This saves up thousands

and product safety, in very critical

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“ O UR DIGITAL FACTORY IS LEADING OUR DIGITALISATION” — Homero Javalera, Director of Operations for Siemens Mexico

135

processes, we accomplished having

need to do a maintenance intervention

deep and detailed traceability at an

so the machine won’t fail. In the future,

individual level for each of the 30 million

we’re moving up to a prescriptive level

units we make every year. We have

in such a way that the system itself will

a “birth certificate” for every one of

give instructions, carry out maintenance

them, a matrix code that is unique for

activities automatically, and even

every product. All of that is available in

create purchasing orders [for parts]

the cloud, and we can make inquiries,

promptly. Whenever the replacement

analyse, improve, monitor, etc. through

part is ready in the warehouse, it will

applications.”

create and send a maintenance work

“For machine maintenance, we’re

order to be executed.”

installing additional sensors, connectivity modules, HMIs, and PLCs. We are

SOLID ALLIANCES WITH COLLABORATORS

getting them connected so they can let

Siemens Mexico is proud to offer its

us know in a predictive way when we

avant-garde innovation to clients as w w w.ma nufa c t uri nggl o b a l. com

SIEMENS

136

“GENERATING TECHNOLOGY TO TAKE CARE OF ISSUES SUCH AS CLIMATE CHANGE, ENERGY DISTRIBUTION, CLEAN ENERGY GENERATION...

OUR PORTFOLIO IS EXTENSIVE IN THAT SENSE” — Homero Javalera, Director of Operations for Siemens Mexico

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SIEMENS

renowned as Microsoft, Facebook, BMW, General Motors, and Ford, and this is thanks to its collaboration with top companies as well as with partners and suppliers. This has been evidenced by the recent association of Siemens with Amazon Web Services, the digital giant: “Siemens has an IIoT (Industrial Internet of Things) operative system called MindSphere, and our 3.0 version is in the servers of Amazon Web Services. These servers have a superior processing capability when 138

compared to what we have internally and to what we’ve seen from other potential partners.”

“Amazon’s processing capability is brutal; it’s very fast, and it can process a huge amount of data simultaneously.

Our operative system is installed there.

We already started by implementing the first application, and we plan on connecting over 550 pieces of equipment. Every piece of equipment will have at least 10 connection points; that is, over 5,500 connection points that will generate millions of data.”

The company also enjoys an excellent collaborative relationship with its suppliers, such as ARRK, for example.

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A specialist in product development, it has been a global supplier of prototypes and production tools for Siemens since 1997, working jointly in many different divisions including Siemens Medical. This year, it has been in charge of the largest version of a toolkit for a single provider.

In great measure, said collaborations drive digitalisation in Latin American, enriching and leveraging transformation. Javalera analyses the digital disruption situation in the region: “Here, we see it at our operation’s level.

Job positions are truly changing. The demand for process engineers is decreasing, and so is the demand for data entry clerks, inspectors, etc.

However, there is a higher demand for programmers, applications developers, and people who know about automation, PLCs, industrial networks, and big data analysis.”

“That is a challenge; there will be a huge demand, and there won’t be enough people to fulfill it. We’re going to need to hurry up, both the industry and universities, in order to develop the necessary skills. Another important challenge is implementing a big part of w w w.ma nufa c t uri nggl o b a l. com

139

SIEMENS

the innovation in digitalisation. The industry needs to be more willing to invest and experiment without the burden of traditional accounting. The value is clear, and it does exist, but on occasion, it will be difficult to calculate an immediate return of investment.”

Siemens Mexico has defined its strategy to continue transforming itself in the future: “Siemens is migrating towards becoming a company that is thoroughly about digital technology.

Regarding software and digital 140

services, we grew 20% last year, with a revenue of over $5.78 billion – Siemens is already the eight largest software company in the world in terms of size.

We’ve acquired over $11.55 billion in software in the last 10 years. We’ve also

Homero Javalera and Miguel Guerrero

increased our investment in investigation and development significantly in the last few years. Almost $7 billion will

“In California, we have the Next

go to Investigation and Development

47 division, which works as a kind of

every year. This includes both the

catalyst for startups. For the next five

digital and automation areas as well

years, Siemens sets aside $1.16 billion

as the areas of additive manufacturing,

for Next 47, and it’s mainly working

autonomous robots, blockchain

with 3D printing, IoT, robotics and

applications, Artificial Intelligence,

drones, artificial intelli-

advanced materials, and energy

gence, augmented reality,

storage among others.

and virtual reality.”

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Collecting the Global Siemens AG Award 2016 (Werner von Siemens Award) for best global performance, the highest recognition granted by Siemens

141

“We are not only helping with capital, but Siemens connects these startups with either our partners or with Siemens itself to see how to implement their proposals in the industry. We also get them closer to both the industry and potential clients,� concludes Javalera.

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MERCEDES-BENZ BRASIL

142

Reinventing the automotive industry

WRIT TEN BY

M ARÍA COBANO-CONDE PRODUCED BY

M ANUEL NAVARRO

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143

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MERCEDES-BENZ BRASIL

Mauricio Mazza, CIO at Mercedes-Benz Brazil, offers the keys to Daimler’s digital transformation through innovation, sustainability and employees

D

aimler AG belongs to that select group of companies that has had the privilege of forging history.

144 The history of the automobile began in 1886 with Daimler’s first motor carriage and Carl Benz’s three-wheeled vehicle.

Since then, Daimler has been synonymous with tradition, quality and innovation.

This stamp is printed in its five divisions: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services.

Mauricio Mazza, CIO at Mercedes-Benz Brazil, one of the companies of Daimler AG, explains the great responsibility of the company in Brazil as the leader in innovation in the automotive industry.

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145

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MERCEDES-BENZ BRASIL

THE BASIS FOR THE FUTURE, IN THE CULTURE SHIFT Daimler founded its Brazilian production plant in 1956, in the city of São Bernardo do Campo (São Paulo). It was one of the first automotive manufacturing companies that decided to start operations in the country, thanks to the opportunities in the truck manufacturing market.

Mazza begins: “The community had a strong participation in making this possible, as we covered the heavy need for transportation through trucks 146

and buses to move people and goods

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“ As a company, Daimler has confidence that our history and our culture are strong assets that we have to use” — Mauricio Mazza, CIO at Mercedes-Benz Brasil

CLICK TO WATCH : ‘MERCEDES-BENZ MUSEUM: AWAKEN YOUR INNER CHILD’ 147 around. I think the company has very

culture, that allows us to continue

strong ties with Brazil and what makes

growing while being relevant for the

us unique, besides this strong link, is

economy of Brazil,” Mazza analyses

that we have a very broad portfolio of

about the beginnings in Brazil.

products that has, in many ways, adapted to the Brazilian reality.”

“We also have dense penetration

From this strong market position, Daimler is going through a deep cultural change in its strategy and internal

in the different logistics areas in the

culture. That change, of course, is

country: transportation for retail,

based on innovation. “We always had

for agribusiness, for oil and gas, for

a very strong culture of innovation;

chemicals and for several different

I think this is something that in the DNA

types of industries is essential. That

of Daimler, ever since the founding of

has positioned us uniquely in terms

the company. We always had strong

of knowledge of the market, relation-

engineering departments here in Brazil

ships with key players as well as the

particularly; it was something very w w w.ma nufa c t uri nggl o b a l. com

important in the company, and we live

big investments that we are deploying

up to those standard.”

to redesign our plant. We believe that

“It’s not innovation per se and alone,

every innovation is important and

but innovation applied to the busi-

that it belongs to everybody. All the

ness that moves into efficiency. We

employees in the company.”

have the recognition mechanics, the and from the whole board on really

INNOVATION IN MANUFACTURING ENGINEERING

developing innovative solutions that

As Mazza states, innovation at all levels

don’t necessarily need to be big and

is the key to Daimler’s transformation

expensive. It does not matter if it is

in Brazil: “We have been making a huge

a small detail on the shop floor or the

investment for the last two years in

support from specific departments

E X E C U T I V E P R OF IL E

149

Mauricio Mazza graduated in Mechatronics Engineering in 1999 from the Polytechnic School of the University of São Paulo, Brazil.

For over 16 years Mauricio has worked as a consultant, helping clients through the challenges of business and technology innovation, enabling them to become more relevant and valuable.

Whilst always valuing and respecting everyone’s insight — client or colleague, analyst or VP — Mauricio’s down-to-earth yet empowered approach allows him to contribute at both operational and executive levels, building relationships rooted in credibility and trust.

Mauricio developed his skills serving different clients, industries and cultures, with over three years of international experience working in the US and Europe, besides multiple locations within Brazil.

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MERCEDES-BENZ BRASIL

150

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C OMPA N Y FA C T S

• Daimler divisions are Mercedes-Benz Cars, Daimler Trucks, MercedesBenz Vans, Daimler Buses and Daimler Financial Services • In 2017, the Group sold around 3.3 million vehicles and employed a workforce of more than 289,300 people in the world • The history of the automobile began in 1886 with Daimler’s first motor carriage and Carl Benz’s three-wheeled vehicle • Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa • In 2017, Daimler generated €164,330mn in revenue

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MERCEDES-BENZ BRASIL

redesigning and rebuilding our own factory. We are trying to rebuild our production lines and our logistics infrastructure around the new digitalisation and automation capabilities that are there in the market, or that we are pioneering or inventing.”

“In general, we are driving around 15% to 20% efficiency with the new layouts of the logistics and production. Previously, we had two assembly lines, but we amalgamated them into one single line that is more efficient 152

than the other two combined with more flexibility” – explains Mazza – “We are applying the same concepts of flexibility and digitalisation to the assembly lines for chassis, engines, trucks, gearboxes and cabins.”

Besides that, for even further enhancements in its digitalization strategy,

is not only on the company and the

Daimler Brazil is partnering with tech-

employees, but also for the client, as

nology giants such as Microsoft, IBM,

we have a parallel improvement in

T-Systems and additional partners such

terms of quality, failure prevention,

as start-ups and niche players such as

vehicle testing and a series of activi-

Semantix as well as hardware/automa-

ties to create better, more technologi-

tion solution partners like Durr.

cally advanced and safer products.

Subsequently, the positive effect

Our customers are the first ones to

of this transformation is spreading

benefit and we believe that by the

across all stakeholders. “The effect

time Brazil recovers as an economy,

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153

our production figures will probably increase significantly, because we are in a better position to fulfil our customers’ requirements, more efficiently.”

PEOPLE, PLANET AND PROFIT Sustainability, as a driving force for change, is also a priority for Daimler in Brazil and part of its culture shift. As Mazza explains: “People, Planet and w w w.ma nufa c t uri nggl o b a l. com

“ We have a very strong culture of innovation, ever since the founding of the company” — Mauricio Mazza, CIO at Mercedes-Benz Brasil

ronmental regulations, but also going further and trying to offer something really relevant for society and the local community around us.”

This approach is ingrained in the sales strategy of the company, as Mazza explains: “It needs to make economic sense – we believe that we have to not only focus on being green, on being environmentally correct, and empowering our people. We need to do that in the direction of maintaining the company’s profitability while ensuring that the initiatives are profitable for sale on this journey.”

Profit, the three Ps, is a framework out in the market. You have to make

PARTNERSHIP IN A CUSTOMERCENTRIC ERA

a combination of these three dimen-

As Daimler Company in Brazil we are

sions to be successful in terms of

laying a very clear vision for the future,

sustainability.”

challenges lay ahead. This includes the

that has been more and more used

“In São Bernardo we have our huge

manufacturing of e-vehicles, and car-

manufacturing plant, and also a hos-

rying on with building trust in the brand.

pital sponsored by the company and

“Electrical is definitely a very strong

a firefighter station that not only serve

component of the strategy. Daimler

the company but also the local com-

launched the fully electric vehicle called

munity around the plant. We are, in

EQC in Stockholm on September, 4th

both ways, from a people and a planet

– our first 100% electrical vehicle.”

perspective, very concerned and active not only to withstand local envi-

“The electrification of the powertrain is not our only priority, but we also w w w.ma nufa c t uri nggl o b a l. com

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MERCEDES-BENZ BRASIL

“ I think every company in the automative industry is facing one very big challenge: reinventing themselves” — Mauricio Mazza, CIO at Mercedes-Benz Brasil

156

M AY 2 0 1 9

have to understand how we can make the usage of our products more efficient both economically for our customers and the environment. We want to make sure our vehicles are shared and that they have a better occupation of the capacity of the equipment and the assets. This is definitely a significant

part of our strategy that is not only

one in the market will be able to offer

a long-term dream but a dream that is

solutions by himself to all kinds of prob-

turning into reality as we speak.�

lems that our customers could have.

For Mazza, liaising with Daimler’s

It involves collaboration, partnership

customers in Brazil is an integral part

and a combination of strengths and

of facing the future: “I think the key

openly talking about your weaknesses

message is to be open to listen, and be

and where you can improve. All this

humble enough to understand that no

technology and the wider trends need

157

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Welcome to the

Visioneering

Group

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to be used to become really customercentric to solve your customer’s problems or requirements and fulfil their expectations, comprehensively.”

“I think every company in the automotive industry is facing one very big challenge: reinventing themselves.

That is, trying to understand how the future will look; what the future is holding for us in the next 20, 30 years.

What will the role of mobility be in a new fully digital society, and how can digital change impact our business? I think one important challenge

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1956

Year Mercedes-Benz do Brasil founded

+ 10,000 Approximate number of Mercedes-Benz do Brasil employees

CLICK TO WATCH : ‘MERCEDES-BENZ | PEÇA PARA UMA ESTRELA’ 159 is to understand the digital mechanics of the industry.”

“As a company, Daimler has confidence that our history and our culture are strong assets that we have to use.

We are also very aware that the past success is no guarantee of a future success, so we have to be very smart, to be very alert and to be very sensitive to the changes that are going on in the market,” concludes Mazza.

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