Benefits of Industry 4.0 / Smart Manufacturing

1 Benefits of Industry / Smart Manufacturing totally integrated automation for Manufacturing Unrestricted Siemens 2016 DISCLAIMER/ TERMS OF USE: THE INFORMATION PROVIDED HEREIN IS PROVIDED AS A GENERAL REFERENCE. REGARDING THE USE OF THE APPLICABLE PRODUCTS IN GENERIC APPLICATIONS. THIS INFORMATION IS PROVIDED. WITHOUT WARRANTY. IT IS YOUR RESPONSIBILITY TO ENSURE THAT YOU ARE USING ALL MENTIONED PRODUCTS. PROPERLY IN YOUR SPECIFIC APPLICATION. ALTHOUGH THIS PRESENTATION STRIVES TO MAINTAIN ACCURATE AND. RELEVANT INFORMATION, THERE IS NO OFFICIAL GUARANTEE THAT THE INFORMATION PROVIDED HEREIN IS. ACCURATE. IF YOU USE THE INFORMATION PROVIDED HEREIN IN YOUR SPECIFIC APPLICATION, PLEASE DOUBLE.

2 CHECK ITS APPLICABILITY AND BE ADVISED THAT YOU ARE USING THIS INFORMATION AT YOUR OWN RISK. THE. PURCHASER OF THE PRODUCT MUST CONFIRM THE SUITABILITY OF THE PRODUCT FOR THE INTENDED USE, AND. ASSUME ALL RISK AND LIABILITY IN CONNECTION WITH THE USE. New business models in the Internet age From bookstore From record store to e-book to streaming From Yellow Pages From taxi to marketplace to ride-sharing Unrestricted Siemens AG 2016. Page 3 DF FA S MP DE. Studies emphasize Manufacturing transformation Trend to individualized mass production requires extended communication technologies along the value chain . The shift towards networked production is just beginning.

3 Digital Manufacturing is expected to change the . face of today's Industry structures and value chains Unrestricted Siemens AG 2016. Page 4 DF FA S MP DE. The Internet is revolutionizing the business world and creates major challenges for Manufacturing companies Unrestricted Siemens AG 2016. Page 5 DF FA S MP DE. Manufacturing is moving into the age of digitalization 4th Industrial Revolution rd Industrial 3 Revolution Industrial nd 2 Revolution st 1 Revolution Industrial Electricity, Water and steam mass production automation Digitalization Sources: BITKOM, BCG. Unrestricted Siemens AG 2016. Page 6 DF FA S MP DE. Digitalization addresses all aspects of the industrial value chain Global Siemens Digital Enterprise Communication Factory Human Infrastructure Resources portfolio addresses specific Infrastructure Customer aspects of digitalization in Relationship Supply Chain IT Infrastructure Management Industry Management Enterprise Resource Machinery Planning Lifecycle Data Management Asset Tools (cPDM)

4 Management & Fixtures for Product and Engineering, Production Manufacturing Maintenance, Design Tools Operations Repair & Simulation Management & Overhaul Industrial Digital Communication Material Manufacturing & Security Industrial Control Systems Domains covered by Siemens Digital Enterprise Sensors &. Actuators Unrestricted Siemens AG 2016. Page 7 DF FA S MP DE. Smart Manufacturing and The Siemens Digital Enterprise . The idea for a modern Smart Manufacturing environment offers a comprehensive, seamless integrated merge of the Real and Virtual worlds and a Seamless flow of data from Field to Enterprise levels. This allows for a complete optimization of the entire product/project lifecycle which achieves lower costs, reduced time to market, and greater flexibility for adopters of this paradigm shift.

5 Siemens offers a complete portfolio of leading edge solutions and automation technologies within our Digital Enterprise to make this automation modernization possible. The seamless integration from Design, Development, to Production. Unrestricted Siemens AG 2016. Page 8 DF FA S MP DE. Key areas expected where advanced automation provides significant advantages Reducing Enhancing Increasing the time to flexibility efficiency market Shorter Individualized mass production Energy and resource efficiency innovation cycles Volatile markets as key competitive factors More complex products High productivity Larger data volumes Unrestricted Siemens AG 2016. Page 9 DF FA S MP DE.

6 Only a holistic automation approach including the whole value add chain will yield sustainable competitiveness Production execution Services 3 4 5. 2. Production engineering Production planning Product design 1. Unrestricted Siemens AG 2016. Page 10 DF FA S MP DE. Siemens Digital Enterprise Holistic Approach to Smart Manufacturing Productio Product Production n Design Planning Planning Production Productio Production n Engineering Execution Execution Supplier Service Logistics Unrestricted Siemens AG 2016. Page 11 DF FA S MP DE. Digital Enterprise Software Suite . Answers for the future of Manufacturing MES. PLM TIA. Management Enterprise automation Unrestricted Siemens AG 2016.

7 Page 12 DF FA S MP DE. Digital Enterprise Software Suite PLM. Product Lifecycle Management 50%. Software Product Planning, Design, PLM software and Test and Simulation automation , products Production Planning, get to market up to Engineering and 50% faster. Simulation Top Down, Product Driven Unrestricted Siemens AG 2016. Page 13 DF FA S MP DE. Digital Enterprise Software Suite MES. Manufacturing Execution Software Planning & Scheduling MES/MOM is the real- Quality Management time core element Manufacturing Execution linking PLM to Manufacturing Intelligence automation . SCADA / HMI. Seamless Integration Unrestricted Siemens AG 2016. Page 14 DF FA S MP DE. Digital Enterprise Software Suite TIA.

8 Industrial automation 30%. Software integrated engineering and Siemens TIA portal runtime for controllers, reduces engineering distributed I/O, HMI, drives, costs by up to 30%. motion control and motors Industrial Safety and Security Bottom Up, Process Driven Unrestricted Siemens AG 2016. Page 15 DF FA S MP DE. The meaning of Digitalization ? Unrestricted Siemens AG 2016. Page 16 DF FA S MP DE. Requirements for machines resulting from market trends Ability to meet customer demands Reaction to changing market trends . requires vertical integration to ERP and requires digitalization MES level of end- and simulation customer to the process High number of product variants Production improvements.

9 Requires modularity of ..require highly available machines machines Plant Cloud Services Unrestricted Siemens AG 2016. Page 17 DF FA S MP DE. Customer statement To be able to react in shortest time on market trends, we need flexible and individualizing machines.. For us, simulation means an essential quality improvement.. Future concepts are based on software. With software the vision of self-learning machines will be achievable.. Unrestricted Siemens AG 2016. Rainer Feuchter, CEO Optima Packaging Group Page 18 DF FA S MP DE. Horizontal integration in the value chain The role of digitalization in engineering Machine builder as supplier Requirements of end-customer Complete process information to optimize machine performance Define production KPIs Shorten start-up times with ability for complete process simulation (throughput, quality, etc.)

10 In advance Streamline the start-up Faster time to Market Engineering Execution Continuous improvement of Mechanical productivity, based on simulations Electrical Simulation Commissioning automation Teamcenter Unrestricted Siemens AG 2016. Page 19 DF FA S MP DE. Vertical integration in the value chain The role of digitalization in production Engineering / System Integrator Cloud as supplier Distribution of process data seamlessly available MES. SCADA. Implement line management systems Energy Management Implement maintenance concepts of a smarter systems Execution Maintenance Requirements of end-customer Define production KPIs (throughput, quality ). Streamline suppliers, orders, changes, etc.