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Jens Fath, Partner Advisory Operations at PwC Germany, explains the importance of a data-driven approach when reaching smart factory maturity.
Written by Anna McMahon | Produced by Jennifer Davies
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JENS FATH JOINED THE AUDITING AND CONSULTING FIRM, PWC GERMANY, FIVE MONTHS AGO AS A PARTNER IN THE OPERATIONS TRANSFORMATION UNIT. ogether with his partner colleagues, he is responsible for topics related to smart manufacturing and smart factory. The 200-strong operations team consults customers end-toend on everything from the development and innovation process via purchasing and supply chain, to optimisation and manufacturing. So, how would Jens describe his smart factory approach? He answers, “We use the data that is available to a company or plant, analyse it, and try to implement data-driven use cases and data-driven processes. The starting point is always the strategy. Why
should a company transform the factory processes to reach smart factory maturity levels? The second step is finding the right use cases to quickly realise benefits that will have an impact on the bottom line of our customers. We want to combine connectivity and a full IT architecture with the selection of the right solutions and the realisation of the right use cases in order to process efficiency in the smart factory.” As the global supply chain is getting more and more connected, Jens argues that a smart factory can only be smart if it is using data around the factory, such as
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delivery dates and information pertaining to problems in the delivery chain. He says, “To reach smart levels, the factory must be fully integrated in global supply chain. IT architectures seem complex at first, but the smart factory systems are now so developed that they interoperate and allow us to automate more. If you have the right data available, production planning can be digitalised and automated. So, the IT maturity level of factories is improving, but we have to trigger the mind change in people to show them that the data will bring huge benefits in the end.” Changing the mindset is one challenge for Jens and his team, whilst enabling the digitalisation
“To reach smart levels, the factory must be fully integrated in global supply chain” 6
of the end-to-end supply chain is another major focus. Jens explains, “I had the pleasure of advising a project in the past on algorithmdriven production, where the production system decides which product to produce next. To bring the right components to the right machines, you need to link the manufacturing and intralogistics processes. Digitalisation holds
the key because automation is not enough. We need the data to make the decisions in a flexible manufacturing approach.” Speaking of algorithm-driven production, Jens shares the analogy of two machines in the smart factory doing the same job. Based on the data, we know using machine A results in better quality
products than using machine B, whilst machine B is superior in terms of the maintenance aspect. Jens adds, “If we know that the process data we are collecting is changing for one of the machines, this will impact the algorithm that decides which product is next, so the algorithm can therefore level depending on the data and raise quality and output.” 7
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In such digitalised and integrated manufacturing processes, a database as central platform, including all the routine information about the products, provides a base for calculations. Jens says, “If we have the chance to group back real production data into the direction of R&D, the data quality in the digitalised factory will increase, raising the maturity level of the smart factory.”
“Simulated processes based on AR and VR can help people in the plant to understand new changes”
So, what are the current and emerging technologies that Jens recognises as most prevalent? He answers, “In my opinion, AR and VR are increasing because of the training entity. Simulated processes based on AR and VR can help people in the plant to understand new changes. The second element is all the analytic tools in combination with RPA. Having real-time interaction based on AI, for example, is creating a lot of hype at the moment, and can improve the production planning processed dramatically. Last but not least, you need other delivery and manufacturing concepts between your machines. Autonomous Guided Vehicles (AGVs) can connect the 9
“ADAMOS is a good example of joining forces. Their goal is to bring services together on a platform that can be used by all companies in the network, as well as selling services to other companies in the market. ADAMOS is a strong corporation, focused on collaboration for the new business model”
different work centres, so many of our customers are now thinking about how they can use them effectively.” A well-shaped company’s IT architecture determines how successfully it can use, for example, AGVs, as Jens explains, “Most customers have small and large components. Where production is on one level, the hardware can have restrictions. It is hard to find one supplier that can deliver on all the different requirements; one may be better for smaller components, whilst
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“If you take our key IT platform provider and ERP system vendor, if they were unable to collaborate, the INTEGRATED IT landscape would not be realised. Key partnerships are not only relevant for large companies, but also the smaller ones” Jens Fath, Partner Advisory Operations at PwC Germany
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another could be better suited to forklifts. If you want the best efficiency out of your plant, you need an independent supplier orchestration layer in your IT landscape that knows what every component is doing. Failure to do so means each AGV supplier will provide its own orchestration layer, and you might end up with 14
several orchestration layers that are not optimised end-to-end. That is the main risk in such AGV projects.” Sometimes a customer is uncertain as to whether they require an IoT platform, or if their Manufacturing Executing System (MES) can get to grips with what they are trying to achieve. With the requirement
“Everything is getting faster, so factories have to be more dynamic. A new product variant used to need a whole new production line, but with dynamic concepts and a strong R&D link, we can automate existing machines for variants”
sources into the IoT platform for analytics amongst other functions, helping to standardise the IT architecture.” for more analytics and greater integration, however, there is an increased need for an IoT platform. Jens says, “MES is responsible for the execution and control of the machines, along with the ERP system for the enterprise processes. The data is collected and then brought together with a lot of other data
The benefits of dynamic, datadriven operations are plentiful. Aside from the flexibility and resilience they offer, Jens says that dynamic factories, centring operation processes on machines, makes the jobs of the workers far more interesting. He continues, “Everything is getting faster, so factories have 15
“We are likely to give the heavy jobs to machines, so the workforce can handle processes in the production and ensure quality at the end of the day”
to be more dynamic. A new product variant used to need a whole new production line, but with dynamic concepts and a strong R&D link, we can automate existing machines for variants. This enables us to handle lot size 1, as well as special demands of our customers.” As for the question of whether human beings are likely to be replaced by robots in the future, Jens believes the key functions of a factory will continue to be managed by people. He explains, “There will be more management positions for workers to control the system and interact if there 16
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is a problem. Some skills are hard to transfer from people to machines. We are likely to give the heavy jobs to machines, so the workforce can handle processes in the production and ensure quality at the end of the day.” PwC’s goal is to harmonise and standardise the IT architecture, 18
whilst combining the best functionality together, and enabling factories for efficient processes. But this means the key solution providers have to work in a more integrated fashion to be successful. Jens says, “If you take our key IT platform provider and ERP system vendor, if they were unable to collaborate, the integrated IT
“PwC’s goal is to harmonise and standardise the IT architecture, whilst combining the best functionality together, and enabling factories for efficient processes” our key roles at PwC, bringing the right partners together to build a scalable and flexible ecosystem.”
landscape would not be realised. Key partnerships are not only relevant for large companies, but also the smaller ones. If they have services that help our processes, they must be easily integrated, so all partners must be open. The next dimension is the hardware side. All devices should integrate easily into our IT landscape. This is one of
One such partner that has worked with PwC is ADAMOS. Jens adds, “ADAMOS is a good example of joining forces. Their goal is to bring services together on a platform that can be used by all companies in the network, as well as selling services to other companies in the market. ADAMOS is a strong corporation, focused on collaboration for the new business model.” For further information, visit www.pwc.de/en 19
www.pwc.de/en
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