Lukas Budde Roman Hänggi Thomas Friedli Adrian Rüedy Smart Factory Navigator Identifying and Implementing the Most Beneficial Use Cases for Your Company—44 Use Cases That Will Drive Your Operational Performance and Digital Service Business Smart Factory Navigator · · · Lukas Budde Roman Hänggi Thomas Friedli Adrian Rüedy Smart Factory Navigator Identifying and Implementing the Most Beneficial Use Cases for Your Company—44 Use Cases That Will Drive Your Operational Performance and Digital Service Business Lukas Budde Roman Hänggi Institute of Technology Management IPEK University of St. Gallen OST Eastern Switzerland University St. Gallen, Switzerland of Applied Sciences Rapperswil, Switzerland Thomas Friedli Institute of Technology Management Adrian Rüedy University of St. Gallen IPEK St. Gallen, Switzerland OST Eastern Switzerland University of Applied Sciences Rapperswil, Switzerland ISBN 978-3-031-17253-3 ISBN 978-3-031-17254-0 (eBook) https://doi.org/10.1007/978-3-031-17254-0 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface Digitalization, Industry 4.0, or smart factory have become important terms when it comes to implementing digital technologies in industrial companies. The imple- mentation is extremely complex and is often associated with a lot of new topics, challenges, and a need for additional competences for a company. Different compa- nies have turned to us for advice on how to implement these new approaches to optimize their businesses or factories. In assisting these companies, we have often been confronted with significant management confusion and questions regarding the right process for implementation. We have often experienced that the same questions are asked: What is Industry 4.0 and how is it different from the smart factory? Which technologies are relevant to us? What are the benefits of certain technologies, such as IoT, for our plants? Which competences do we need in the future to cope with these new approaches? How does the smart factory fit with our lean approach? How can we digest all these necessary changes and strengthen our competencies in this area? These and related questions have challenged us in many research and consulting projects and formed the basis for our “Smart Factory Framework.” While we were working on our framework we came up with the following definition of a smart factory: The smart factory is a fully connected manufacturing system, combining human competencies and technological capabilities to conduct all required tasks and decisions for producing goods efficiently and enabling innovative digital services. It can be said that a smart factory has a lot to do with technology. The key, however, is that it is only the combination of technology and humans that makes it successful. In addition, goal orientation is part of the smart factory. We implement the smart v vi Preface factory approach in order to increase the operational performance of the factory. Technology is only an enabler. So how did we go about developing an approach for the implementation of the smart factory? Firstly, we extensively researched published and implemented smart factory use cases. The focus was not only on the use cases themselves but also on their predicted outcomes. We categorized these use cases into 44 distinct use cases that make up the Smart Factory Framework. In our book, we describe these use cases in detail, including implemented real-world examples, and the implications in terms of quality, cost, delivery, and flexibility. In addition, we have mapped the use cases to the required technologies that can potentially be applied. Our research has identified 25 technologies relevant to smart factory implementation, the use of which depends on the different use cases. The Smart Factory Implementation Process is a usable approach for the concrete realization of the smart factory in your company. This seven-step process starts with the selection of promising use cases, followed by a prioritization step, adaptation to the company-specific context and a detailing of the information needs for the different management levels. A stringent project setup and execution process helps the users to achieve positive results that can then be rolled out on a global scale. This process has been developed interactively with dozens of companies and applied in many research and consulting projects. It has proven to be a realistic and results-oriented approach for the smart factory journey. This book is the summary of a four-year process involving intensive research and project work with many different companies in different industries. The manifold discussions, challenges, and presentations helped to build this into a robust approach. This journey would not have been possible without the support of various individuals who challenged us along the way. We would like to thank our research assistants Kay Beeler and Leonardo Laglia for their support. We also appreciate the illustration skills of Roland Siegenthaler. We have also applied this approach in various lectures and project work at the University of St. Gallen (HSG) and the University of Applied Sciences St. Gallen (OST), thereby receiving valuable input from our students which has been incorporated into our approach. In addition, our research partner Cognizant, a global information technology services and consulting company, supported us shape our approach through its project work and its research practice. Preface vii We are confident that our book will give you the needed guidance on your own digitalization journey increasing your operational excellence and competitiveness. St. Gallen, Switzerland Lukas Budde Rapperswil, Switzerland Roman Hänggi St. Gallen, Switzerland Thomas Friedli Rapperswil, Switzerland Adrian Rüedy Contents 1 Introduction ................................................... 1 References ..................................................... 5 2 Smart Factory Navigator ........................................ 7 2.1 Smart Factory—The Future of Manufacturing ................. 7 2.2 The Smart Factory Navigator Model ......................... 15 2.3 Human Centricity ......................................... 17 2.4 Enabling Technologies ..................................... 20 References ..................................................... 27 3 Smart Factory Framework ...................................... 33 3.1 Structure of the Use Cases .................................. 33 3.1.1 Process Stage ..................................... 35 3.1.2 Maturity Level—Degree of Analytical Foresight ....... 38 3.1.3 Technology Mapping ............................... 39 3.2 Base Use Cases ........................................... 40 3.2.1 Use Case 01: Data Capturing ........................ 40 3.2.2 Use Case 02: Data Transmission ..................... 46 3.2.3 Use Case 03: Data Storage .......................... 48 3.2.4 Use Case 04: Information Visualization ............... 50 3.3 Demand Management ...................................... 55 3.3.1 Use Case 05: Demand Diagnostics ................... 55 3.3.2 Use Case 06: Demand Prediction ..................... 58 3.3.3 Use Case 07: Autonomous Demand Forecast ........... 62 3.4 Supply Chain Management and Sourcing ..................... 65 3.4.1 Use Case 08: End-To-End Performance Tracking ....... 65 3.4.2 Use Case 09: Marketplace Platforms .................. 69 3.4.3 Use Case 10: Sustainability and Carbon Footprint Tracking .......................................... 73 3.4.4 Use Case 11: Digital Inventory Management ........... 77 3.4.5 Use Case 12: Digital Picking Assistance .............. 81 3.4.6 Use Case 13: Supply Chain Early Alert System ........ 86 ix x Contents 3.4.7 Use Case 14: Supply Chain Collaboration Platforms .... 90 3.4.8 Use Case 15: Autonomous Inventory Control .......... 95 3.5 Production Scheduling ..................................... 98 3.5.1 Use Case 16: Identification and Asset Tracking ......... 98 3.5.2 Use Case 17: Shift Planning ......................... 104 3.5.3 Use Case 18: Production Network Configuration and Coordination Assistance ........................ 107 3.5.4 Use Case 19: Scheduling Assistance .................. 111 3.5.5 Use Case 20: Scheduling Decision Support ............ 115 3.5.6 Use Case 21: Autonomous Job Scheduling ............ 119 3.6 Process Optimization ...................................... 123 3.6.1 Use Case 22: Incident Database ...................... 123 3.6.2 Use Case 23: Incident Pattern Recognition ............. 126 3.6.3 Use Case 24: Intelligent Performance Dashboard ....... 130 3.6.4 Use Case 25: Process Mining ........................ 134 3.6.5 Use Case 26: Digital Twin .......................... 138 3.6.6 Use Case 27: Process Performance Prediction .......... 142 3.6.7 Use Case 28: Optimal Process Parameter Identification ...................................... 146 3.7 Use Case 29: Autonomous Process Optimization ............... 150 3.8 Process Control ........................................... 155 3.8.1 Use Case 30: Digital Shopfloor ...................... 155 3.8.2 Use Case 31: Low Batch Size Manufacturing .......... 159 3.9 Use Case 32: Human-Centred Flexible Automation ............ 163 3.9.1 Use Case 33: Digitally Guided Operations ............. 167 3.9.2 Use Case 34: Autonomously Controlled Material Flow ............................................. 171 3.9.3 Use Case 35: Autonomously Controlled Manufacturing/Assembly ........................... 176 3.10 Quality Management ....................................... 180 3.10.1 Use Case 36: Fault Detection ........................ 180 3.10.2 Use Case 37: Quality Diagnostics .................... 184 3.10.3 Use Case 38: Quality Prediction ..................... 188 3.10.4 Use Case 39: Autonomous Quality Management ....... 192 3.11 Maintenance .............................................. 196 3.11.1 Use Case 40: Remote Maintenance Assistance ......... 196 3.11.2 Use Case 41: Condition Monitoring .................. 200 3.11.3 Use Case 42: Failure Diagnostics ..................... 204 3.11.4 Use Case 43: Predictive Maintenance ................. 207 3.11.5 Use Case 44: Autonomous Maintenance ............... 211 References ..................................................... 215 Contents xi 4 Smart Factory Implementation Process ........................... 231 4.1 Step 1: Selection of Promising Use Cases ..................... 236 4.2 Step 2: Classification in Potential and Complexity .............. 238 4.3 Step 3: Adaption of the Use Case to a Company-Specific Context .................................................. 243 4.4 Step 4: Creation of Personas for Each Use Case ................ 244 4.5 Step 5: Project Setup ....................................... 247 4.6 Step 6: Implementation First Project(s) ....................... 257 4.7 Step 7: Scaling and Internationalization ....................... 260 References ..................................................... 263 5 Use Case Framework to Identify Digital Services for Commercialization .......................................... 265 5.1 DS I: Identification of Customer Value ....................... 270 5.2 DS II: Quantification of Customer Value ...................... 270 5.3 DS III: Derivation of Pricing Options ......................... 272 Reference ...................................................... 275 6 Learning from Case Studies and Outlook ......................... 277