ON THE ROAD TO THE

FACTORY OF THE FUTURE

© 2019 LNS Research

TOPICS

Quick introduction to LNS Research

Where to start

Thinking architecture

Data collection – MOM, IIOT all together

Technology going forward – operational optimisation

About LNS Research
MISSION
Evangelize and Drive
Industrial Transformation (IX)
We are trusted advisors for business, operations,
engineering, and technology leaders.

Data-driven insight, Technology-focused Outcome-based advisory

deeply experienced research for cross- services
analysts functional transformation
teams
INDUSTRIAL TRANSFORMATION FRAMEWORK
PROGRAM MEMBERS
PROGRAM MEMBERSHIP
A trusted advisor relationship to help your organization achieve desired business outcomes.

1 2 3 4 5

Research library Quarterly Executive IX Trusted Add-on

research events advisor Strategy
updates engagement plan days
What is IX?
KEY CHARACTERISTICS OF IX
 Subset of Digital Transformation
 Step change vs. Continuous Improvement
 Special challenge: coordinating / managing / rolling out
to an extended and distributed operations network
 Industrie 4.0, Smart Manufacturing, Advanced
Manufacturing, etc.
 8% of companies are already reporting “dramatic
results”

 We define IX Leaders – those getting most benefit

Where to start?
SOME “NEW” MANUFACTURING TECHNOLOGIES

AGV - 65 years old

Vision in manufacturing - 35
Connected worker – 40
3D printing - 35
EMERGING PROCESSES, TECH DEPLOYED IN MFG OPS
Machine Learning
None of the above
3D printers/additive manufacturing
Industrial hardened devices (e.g., tablets)
Blockchain
Augmented Reality (Microsoft HoloLens, Realwear, etc.)
Smart wearables (e.g., Apple Watch, ring scanner, etc.)
Cobots (collaborative robots)
Generative Design
Industry benchmarking
Edge computing
RPA (robotic process automation)
Autonomous in-plant vehicles (automatic guided vehicles)
Voice Recognition/Natural Language Processing (NLP) technology
Drones
Other, please specify:
0% 5% 10% 15% 20% 25% 30%
IT IS NOT JUST TECHNOLOGY

IX in the plant

First driver is ability to deliver

There are many futures in FoF

Data is everything

Once you have the data, share the analytics

and operations
 IX deployment plans

START WHERE?
15%

Enterprise resource planning (ERP) 28%

Customer relationship management (CRM)

Enterprise Quality Management Software (EQMS) 24%

Automation systems 10%

Industrial Internet of Things (IIoT) platform

23%
MOM/MES suite

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Currently implemented Pilot stages

Budgeted- 1 year Planned- 3 years

No plans
 IX deployment plans

START WHERE?
15%

Enterprise resource planning (ERP) 28%

Customer relationship management (CRM)

Enterprise Quality Management Software (EQMS) 24%

Automation systems 10%

Industrial Internet of Things (IIoT) platform

23%
MOM/MES suite

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Currently implemented Pilot stages

Budgeted- 1 year Planned- 3 years

No plans
IX LEADERS FOCUSED ON THE FUTURE
OT systems limitations
We are looking for systems that are more attractive to and
45%
supportive of "digitally native" younger employees 20%
replacing our aging workforce

Existing systems are old and inadequate 36% • 2.25 times more likely to be focused
30%
on the “digitally native” younger
Existing systems are too tightly linked to specific
32%
employee
equipment and ignore other critical data (business, 36%
financial, etc.,)
Systems are too difficult to use, especially for non-technical
users
23%
32%
• Followers 82% more likely to have
OT systems that are “too costly”
Management and/or IT's attention has wandered from 19%
working OT to the IIoT "buzz" 23%

We are still evaluating whether IIoT is more effective than 19%

currently available OT technologies 10%

17%
Existing systems are too costly to deploy more widely 31%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Leaders Laggards
DO PLANTS BUY IN TO IX

Plant Managers aren’t buying in to Industrial Transformation

Delivery quality and budget very critical

IT and IX leaders do not always believe in OT

Deliver OT focused FoF applications

First FoF Foundations:
MOM & Data
FOF CHANGES TRADITIONAL MOM ARCHITECTURE
HYBRID ARCHITECTURE –TOWARDS A DATA LAKE
SOURCES OF DATA INCLUDED IN DATA MODEL

Quality data 67%

Production data (e.g., scheduling, materials, etc.) 63%

Machine data (sensor data) 59%

Materials data 50%

Plant performance data 48%

Supplier data 45%

Financial data 43%

Human resources data 26%

Data external to company 12%

0% 10% 20% 30% 40% 50% 60% 70% 80%

THE EXPANDING ANALYTICS FRAMEWORK
Three Types of Advanced Analytics*
Statistics
• Frequency
• Bayesian
Artificial Intelligence (AI)
ANALYTICS FRAMEWORK
• Machine Learning (ML) PROGNO
• Vision systems STIC
• Natural Language Processing
• Neural Networks
Likely
Outcome
Decision Science Tools
• Heuristics
• Search & Optimization
• Queueing
• Markov Chain
• Stochastics
• Economics
*Partial list of approaches, techniques and algorithms 25
ANALYTICS DATA SOPHISTICATION

Descriptive 45%
IIoT Devices
• Means of collecting data of all types now go far Diagnostic 59%
beyond just MOM. Must consider control
hierarchy & direct connectivity Predictive 55%

Prescriptive 32%
Data beyond the plant
• When data becomes available, everyone wants Prognostic 19%
some of it. Apps and analytics do too!
• New modus operandi – Data Lakes None of the above 1%

0% 10% 20% 30% 40% 50% 60% 70%

Enterprise analytics
• EMI is a great starting point in MOM
• Moving up the analytics effectiveness slope
Analytics to Improve Business and Manufacturing Processes
START OF FOF? DELIVERING PROMISE

Data Collection
• Many factories are moving into the 80s! Paper is moving onto glass and the
business is screaming out for better data, nay, for information.

Empower workers
• Access to better information empowers operators
• Low/No code gives direct access to users
Business systems integration
• IT is looking for new opportunities. ERP is done, OT is not. MES is still at
<20%. Need to use IT delivery skills
Industrial transformation (IX)
• Everyone is being pushed to consider IIOT, Industry 4.0, digitization
MOST OVER-HYPED TECHNOLOGY OR INNOVATION IN THE
MANUFACTURING INDUSTRY
Artificial Intelligence/Machine learning 15%
Big Data (large data sets that can be analyzed computationally to… 13%
Blockchain 12%
Smart wearables (e.g., Apple Watch, Microsoft HoloLens, etc.) 10%
3D printers/additive manufacturing 9%
Drones 7%
XR (Augmented Reality, Assisted Reality, Virtual Reality, Mixed Reality) 6%
Industrial Internet of Things (IIoT)/ Internet of Things (IoT) 6%
Digital twins (i.e., digital replicas synchronized with physical assets) 5%
Other. Please specify: 3%
Cobots (collaborative robots) 3%
Autonomous in-plant vehicles (automatic guided vehicles) 3%
RFID 2%
RPA (robotic process automation) 2%
Generative design 1%
Lights-out manufacturing 1%
IP-enabled tools & equipment 1%
0% 2% 4% 6% 8% 10% 12% 14% 16%
Other FoF opportnunities
DIGITAL TWIN DRIVES LATER FOFS

A Digital Twin is an executable virtual

model of a thing or a system
DIGITAL TWIN REQUIRES OPERATIONAL ARCHITECURE
OEE AND OTHER OPERATIONAL METRICS
Eliminate differences in metric calculations and data quality
across sites, enables accurate benchmarking across the business
EMPOWERED WORKERS
IX leaders
• IX leaders understand the value of shop floor
workers and two way communication with them

Plant analytics
• EMI can be configured for all levels
• Operators need their own analytics

Low/No code apps

• True empowerment is trusting people to do their own
thing. No code apps will challenge you.
TRANSFORMATION REQUIRES COMMITMENT

Easy starting point

• MOM really alleviates the barriers to entry
Executive engagement
• Access to executive leaders to understand goals, business drivers, and
success factors
Integration strategy
• Platforms and architecture
• IT and OT convergence
Domain expertise
• This is where manufacturers bring skills with system integrators and
technology partners
• Delivery and roll out strategy
TAKE SOMETHING AWAY

Starting on the FoF journey –

make it pay
• Make value from data
• Data architecture is a BIG
decision
• Delivery capability critical
• Worker empowerment
• Become an IX leader
Over to Tom…