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ON THE WAY TO INDUSTRY 4.0 :
DIGITAL ENTERPRISE
Ali R脹za Ersoy
Mar, 2016 v2.0
GOOGLE
TRENDS
First assembly line
Cincinnati USA, 1870
HISTORY?
FIRST
INDUSTRIAL
REVOLUTION
 Mechanical Steam Power
First mechanical loom
Doncaster England, 1784
Photograph Source : http://etc.usf.edu/clipart/79800/79831/79831_powerloom.htm
SECOND
INDUSTRIAL
REVOLUT聴ON
 Electrical Energy
First assembly line
Cincinnati USA, 1870
Photograph Source : http://www.thinglink.com/scene/477884074095017986
THIRD
INDUSTRIAL
REVOLUTION
 Electronic and IT Systems
Programmable Logic Controller (PLC)
1969
Photograph Source : http://electrical-engineering-portal.com/when-we-started-to-use-
plcs-after-all
WHY
4th?
EAST
MANUFACTURING
OVERWHELMING
WEST
 Industrial products sales
Source VDMA
Billion  2006 2011
EU (27) 550 620
China 170 580
USA 280 280
Germany 190 220
Russia 10 15
SHORTEN
TIME TO
MARKET
 Shorter innovation cycles
 More complex products
 Smaller lots
INCREASE
FLEXIBILITY
 Individualized production
 Volatile markets
 Max. automation
BOOST
EFFICIENCY
 More with less
 Energy efficiency
 Robots for redundant actions
 More flexible and coherent
processes
WHEN?
INDUSTRIE 4.0
 2011
Hannover Fair
 2012
German Federal Goverment
 2013 April
German Country Strategy
 2014 February
Siemens Turkey Press Launch
 2015
Hannover Fair motto
 2016
Davos WEF motto
HOW?
CYBER -
PHYSICAL
SYSTEMS
 Digital 3D simulation of factories,
manufacturing lines and human
 Digital 3D simulation of products
 All on PLM-Product Lifecyle
Management systems
 Bits and atoms
Photograph Source : http://www.fabricatingandmetalworking.com/2013/09/standing-
on-the-edge/
Animation
16
VERTICAL &
HORIZONTAL
INTEGRATION
 Vertical:
Marketing, Sales, Planning,
Production (PLM, ERP,
MES/MOM)
 Horizontal:
Raw Material, Suppliers,
Producers, Logistics,
Distributers, Customers,
Recycling
 No hierarchy, all distributed
IOT
INTERNET OF
THINGS
(&SERVICES
&HUMAN
&EVERYTHING)
Connected things will double to 28 billion
by 2020, human to 7,7 billion
 Unique ID for every material,
machine, product and human
 End-to-end digital process info
from raw material to recycle
 Communicating, analyzing data,
predict failure, configure trouble
shooting
 Adapt to changes
AUTONOMOUS
ROBOTS
 Learning from other robots
and humans
 Multi programmable
 Great capabilities
 H2M, M2H, New:M2M
 Self testing and repairing
息 Siemens AG 2015
Page 20 Siegfried Russwurm, Member of the Managing Board of Siemens AGJune 9, 2015
Increase of data
from 2010 to 2020
50fold
20202010
Overall data
Big Data And
Analytics
- aaaa
0101001101101001011001010110110101100101011011100111001100
1000000110100101110011001000000110000100100000011001110110
1100011011110110001001100001011011000010000001110000011011
1101110111011001010111001001101000011011110111010101110011
0110010100100000011001100110111101100011011101010111001101
1010010110111001100111001000000110111101101110001000000111
0100011010000110010100100000011000010111001001100101011000
0101110011001000000110111101100110001000000110010101101100
0110010101100011011101000111001001101001011001100110100101
1000110110000101110100011010010110111101101110001011000010
0000011000010111010101110100011011110110110101100001011101
0001101001011011110110111000100000011000010110111001100100
0010000001100100011010010110011101101001011101000110000101
1011000110100101111010011000010111010001101001011011110110
1110001011100010000001001111011011100110010100100000011011
1101100110001000000111010001101000011001010010000001110111
0110111101110010011011000110010010010010011100110010000001
1011000110000101110010011001110110010101110011011101000010
0000011100000111001001101111011001000111010101100011011001
0101110010011100110010000001101111011001100010000001100101
0110111001100101011100100110011101111001001011010110010101
10,000
20,000
30,000
40,000
 Data created only in 2000 was
more than in 25 million years
 Many different sources (robots,
automation software, even
unfinished products)
 Must for real-time decision
making
BIG DATA
AND
ANALYTICS
THE CLOUD
 35 % of data in Cloud by 2020
 Cloud based solutions
 Smart applications
AUGMENTED
REALITY
 Manufacturing instructions
 Real-time reports, messages
 Quality checks with camera
 Emergency directives
CYBER-
SECURITY
 More comprehensive security
framework
 Increased communication can
cause access problems
 Vulnerable to cyberattacks
 Data privacy is critical
WHAT @WORLD?
GERMANY:
SIEMENS
AMBERG
FACILITY
 1000+ product variants
 1Million products monthly
 Only 25% performed by
humans
 Quality 99.9988 %
CHINA
 20 % of the world's
 Made in China 2025
 Goal :
40% by 2020
70% by 2025
 Industrial Internet
 Advanced IT and
communication sector is
advantage
 Advanced Manufacturing
National Program of the US
Department of Commerce
USA
FINLAND
 Silicon Valley of:
Industry 4.0
 Internet in manufacturing:
44%
 Employment in high-tech
8%
WHAT@TURKEY
TODAY
 Between 2.0-3.0
 Ministry of Science, Industry and
Technology meeting on Dec. 09, 2015
 Workshop on Jan. 16-17, 2016
 Science and Technology High
Councils decision on Feb. 23, 2016
 Government: Ready for I 4.0 in
Autumn 2016
Photograph Source : http://fotogaleri.egebirlik.org.tr
WWW.
ENDUSTRI40
.COM
 Turkeys Platform for:
 Information
 Discussion
 Library
 Events
 Best Practice
 Know-how exchange
 Come and be a partner
TOMORROW
 Industry 4.0 Turkey Platform
 Industry 4.0 Country Strategy
 Eurasia Hub of Manufacturing
 From technology user to
innovator
 Middle Income Trap
WHAT@NEXT
INVESTMENT
 Germany:  40 B
Europe:  140 B
p.a till 2020
 3.3 % of sales
Source : pwc
REVENUE
GROWTH
 New complex products
 New customized products
 Growth of 2-3% sales
 Germany :  30 B
Europe :  110 B p.a
Source : pwc
EMPLOYMENT
 6% increase
 Highly skilled people needed
 IT and Mechatronics experts
replacing low skilled laborers
Source : BCG
GOVERNMENTS
 Establish a Country Platform
 Workout, approve and launch
Country Strategy
 Review school curricula,
university programs
 Incentivize R&D programs,
high-tech manufacturing
 Provide a good technology
infrastructure Photograph Source : https://www.tbmm.gov.tr/develop/owa/tbmm_internet.anasayfa
RESEARCHERS
 Work on intl standards
 Focus on university 
industry collaboration models
 Mentoring students about
cross discipline studies like
mechatronics
TECHNOLOGY
SUPPLIERS
 Concentrate on future-tech
 Inform about Industry 4.0
 Collaborate with each other
 Implement new business
models, organizational
structures fit to digital world
MANUFACTURERS
 Need to fully understand
customer requirements
 Develop a strategy for
technological improvement
 Implement new business
models, organizational
structures fit to digital world
35
WHAT@BEYOND
OPEN
 Open Innovation
 Open Design
 Open Software
 Open Hardware
 Open Organization
 Open Production
 Open Capital
MAKERS
MOVEMENT
 At home
 Ingeneunity, Sharing, Self
Learning
 Production instead
consuming
 Self proto-typing
ADDITIVE
MANUFACTURING
 3D scanning and 3D printing
 First 3D printer borned in 2015
 Skull and vane already in use
 10 houses in 3 days
 Siemens TR & Dar端afaka
Robots Club - 2015 NASA Award
DISRUPTIVE
INNOVATION
 Today cars: 5 % at work
Google car: 95 %
 Robots are producing robots
LIGHT OUT
FACTORIES
 Highly automated robots
 No need for light, food etc.
 Somewhere in desert
 Controlled remotely
LETS GET
READY
FOR THEM
NOW!
THANK YOU...
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Digital Enterprise: Industry 4.0

  • 1. ON THE WAY TO INDUSTRY 4.0 : DIGITAL ENTERPRISE Ali R脹za Ersoy Mar, 2016 v2.0
  • 4. FIRST INDUSTRIAL REVOLUTION Mechanical Steam Power First mechanical loom Doncaster England, 1784 Photograph Source : http://etc.usf.edu/clipart/79800/79831/79831_powerloom.htm
  • 5. SECOND INDUSTRIAL REVOLUT聴ON Electrical Energy First assembly line Cincinnati USA, 1870 Photograph Source : http://www.thinglink.com/scene/477884074095017986
  • 6. THIRD INDUSTRIAL REVOLUTION Electronic and IT Systems Programmable Logic Controller (PLC) 1969 Photograph Source : http://electrical-engineering-portal.com/when-we-started-to-use- plcs-after-all
  • 8. EAST MANUFACTURING OVERWHELMING WEST Industrial products sales Source VDMA Billion 2006 2011 EU (27) 550 620 China 170 580 USA 280 280 Germany 190 220 Russia 10 15
  • 9. SHORTEN TIME TO MARKET Shorter innovation cycles More complex products Smaller lots
  • 10. INCREASE FLEXIBILITY Individualized production Volatile markets Max. automation
  • 11. BOOST EFFICIENCY More with less Energy efficiency Robots for redundant actions More flexible and coherent processes
  • 12. WHEN?
  • 13. INDUSTRIE 4.0 2011 Hannover Fair 2012 German Federal Goverment 2013 April German Country Strategy 2014 February Siemens Turkey Press Launch 2015 Hannover Fair motto 2016 Davos WEF motto
  • 14. HOW?
  • 15. CYBER - PHYSICAL SYSTEMS Digital 3D simulation of factories, manufacturing lines and human Digital 3D simulation of products All on PLM-Product Lifecyle Management systems Bits and atoms Photograph Source : http://www.fabricatingandmetalworking.com/2013/09/standing- on-the-edge/
  • 17. VERTICAL & HORIZONTAL INTEGRATION Vertical: Marketing, Sales, Planning, Production (PLM, ERP, MES/MOM) Horizontal: Raw Material, Suppliers, Producers, Logistics, Distributers, Customers, Recycling No hierarchy, all distributed
  • 18. IOT INTERNET OF THINGS (&SERVICES &HUMAN &EVERYTHING) Connected things will double to 28 billion by 2020, human to 7,7 billion Unique ID for every material, machine, product and human End-to-end digital process info from raw material to recycle Communicating, analyzing data, predict failure, configure trouble shooting Adapt to changes
  • 19. AUTONOMOUS ROBOTS Learning from other robots and humans Multi programmable Great capabilities H2M, M2H, New:M2M Self testing and repairing
  • 20. 息 Siemens AG 2015 Page 20 Siegfried Russwurm, Member of the Managing Board of Siemens AGJune 9, 2015
  • 21. Increase of data from 2010 to 2020 50fold 20202010 Overall data Big Data And Analytics - aaaa 0101001101101001011001010110110101100101011011100111001100 1000000110100101110011001000000110000100100000011001110110 1100011011110110001001100001011011000010000001110000011011 1101110111011001010111001001101000011011110111010101110011 0110010100100000011001100110111101100011011101010111001101 1010010110111001100111001000000110111101101110001000000111 0100011010000110010100100000011000010111001001100101011000 0101110011001000000110111101100110001000000110010101101100 0110010101100011011101000111001001101001011001100110100101 1000110110000101110100011010010110111101101110001011000010 0000011000010111010101110100011011110110110101100001011101 0001101001011011110110111000100000011000010110111001100100 0010000001100100011010010110011101101001011101000110000101 1011000110100101111010011000010111010001101001011011110110 1110001011100010000001001111011011100110010100100000011011 1101100110001000000111010001101000011001010010000001110111 0110111101110010011011000110010010010010011100110010000001 1011000110000101110010011001110110010101110011011101000010 0000011100000111001001101111011001000111010101100011011001 0101110010011100110010000001101111011001100010000001100101 0110111001100101011100100110011101111001001011010110010101 10,000 20,000 30,000 40,000 Data created only in 2000 was more than in 25 million years Many different sources (robots, automation software, even unfinished products) Must for real-time decision making BIG DATA AND ANALYTICS
  • 22. THE CLOUD 35 % of data in Cloud by 2020 Cloud based solutions Smart applications
  • 23. AUGMENTED REALITY Manufacturing instructions Real-time reports, messages Quality checks with camera Emergency directives
  • 24. CYBER- SECURITY More comprehensive security framework Increased communication can cause access problems Vulnerable to cyberattacks Data privacy is critical
  • 26. GERMANY: SIEMENS AMBERG FACILITY 1000+ product variants 1Million products monthly Only 25% performed by humans Quality 99.9988 %
  • 27. CHINA 20 % of the world's Made in China 2025 Goal : 40% by 2020 70% by 2025
  • 28. Industrial Internet Advanced IT and communication sector is advantage Advanced Manufacturing National Program of the US Department of Commerce USA
  • 29. FINLAND Silicon Valley of: Industry 4.0 Internet in manufacturing: 44% Employment in high-tech 8%
  • 31. TODAY Between 2.0-3.0 Ministry of Science, Industry and Technology meeting on Dec. 09, 2015 Workshop on Jan. 16-17, 2016 Science and Technology High Councils decision on Feb. 23, 2016 Government: Ready for I 4.0 in Autumn 2016 Photograph Source : http://fotogaleri.egebirlik.org.tr
  • 32. WWW. ENDUSTRI40 .COM Turkeys Platform for: Information Discussion Library Events Best Practice Know-how exchange Come and be a partner
  • 33. TOMORROW Industry 4.0 Turkey Platform Industry 4.0 Country Strategy Eurasia Hub of Manufacturing From technology user to innovator Middle Income Trap
  • 35. INVESTMENT Germany: 40 B Europe: 140 B p.a till 2020 3.3 % of sales Source : pwc
  • 36. REVENUE GROWTH New complex products New customized products Growth of 2-3% sales Germany : 30 B Europe : 110 B p.a Source : pwc
  • 37. EMPLOYMENT 6% increase Highly skilled people needed IT and Mechatronics experts replacing low skilled laborers Source : BCG
  • 38. GOVERNMENTS Establish a Country Platform Workout, approve and launch Country Strategy Review school curricula, university programs Incentivize R&D programs, high-tech manufacturing Provide a good technology infrastructure Photograph Source : https://www.tbmm.gov.tr/develop/owa/tbmm_internet.anasayfa
  • 39. RESEARCHERS Work on intl standards Focus on university industry collaboration models Mentoring students about cross discipline studies like mechatronics
  • 40. TECHNOLOGY SUPPLIERS Concentrate on future-tech Inform about Industry 4.0 Collaborate with each other Implement new business models, organizational structures fit to digital world
  • 41. MANUFACTURERS Need to fully understand customer requirements Develop a strategy for technological improvement Implement new business models, organizational structures fit to digital world 35
  • 43. OPEN Open Innovation Open Design Open Software Open Hardware Open Organization Open Production Open Capital
  • 44. MAKERS MOVEMENT At home Ingeneunity, Sharing, Self Learning Production instead consuming Self proto-typing
  • 45. ADDITIVE MANUFACTURING 3D scanning and 3D printing First 3D printer borned in 2015 Skull and vane already in use 10 houses in 3 days Siemens TR & Dar端afaka Robots Club - 2015 NASA Award
  • 46. DISRUPTIVE INNOVATION Today cars: 5 % at work Google car: 95 % Robots are producing robots
  • 47. LIGHT OUT FACTORIES Highly automated robots No need for light, food etc. Somewhere in desert Controlled remotely