INDUSTRIE 4.0-READINESS IN THE UPPER-RHINE REGION A n g e l a J ä g e r | D r. C h r i s t i a n L e r c h | F r a u n h o f e r I S I , Karlsruhe U.R. 4.0 - Action 1.1: Workshop
© Fraunhofer ISI
Readiness I4.0 in the Upper Rhine region Background and aims Study „Readiness I4.0 in Upper-Rhine region“: § description of the state of development towards Industry 4.0 of the Upper-Rhine region
§ tri-national comparison of the « readiness » of firms to the 4.0 technologies in the 3 regions covered by the Upper-Rhine regions (Alsace, Bade, and Basel area)
§ as well as of the distribution of nearly I4.0 technologies among manufacturing firms Analyses based on three data sources § regional extract of the European Manufacturing Survey Switzerland 2018
§ regional extract of the European Manufacturing Survey Germany 2018 § regional survey conducted by CCI Alsace Eurometropole (CCIAE) and BETA (Université of Strasbourg) addressing manufacturing firms in the French Upper-Rhine region 2018 with the following main characteristics:
§ (representative) sub-samples of manufacturing firms with at least 20 employees § covering production characteristics as well as use of technologies © Fraunhofer ISI Seite 2
Data from three parts of one region U p p e r- R h i n e r e g i o n Joint data set § n = 339
German part 4 municipalities and 10 “rural” districts additionally two neighbor districts included (n = 37)
§ representative for each regions § however, not adjusting for the different density of firms, but rather
§ equally representing all three areas Manufacturing firms Swiss part (n = 136)
Germany German part (n = 79)
French part (n = 124)
© Fraunhofer ISI Seite 3
France
Switzerland
French part 2 departments: Bas-Rhin and Haut-Rhine Swiss part 4 cantons: Basel 2x, Aargau, Jura, Solothurn
Three parts of one region Similar industry structure in data Firm size structure very similar § 70% of firms with less than 100 employees
§ 88% of SMEs French part
German part
Swiss part 54% 53% 49%
up to 49 employess
250 to 499 employees
7% 8% 7%
500 or more employees
4% 9% 1% 0%
share of firms
German part
Machinery and transport equipment Metal industry
60%
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 4
Swiss part
6% 3% 6% 11% 14% 14% 17% 11% 10% 19% 19% 14% 16%
Chemical industry (incl. pharma)
Food, beverage and tobacco industry
20% 13% 20%
100 to 249 employees
French part
Electronic and electrical industry
15% 18% 22%
50 to 99 employees
Comparable industrial structure § with some country specific sectoral highlights
23%
Wood, paper, printing industry
5%
33%
10%
15% 11% 9% 10% 9% 6% 9%
Rubber and plastics, nonmetal products Other industrial sectors 0%
Share of firms
40%
Data sources – three parts of one region R e g i o n a l d i ff e r e n c e s i n p r o d u c t i o n Simple products
Medium complexity
French part 10% German part
48%
20%
Swiss part
45%
24%
0%
Made-to-order
42%
§ Mainly small batches / single parts
34%
67%
13%
60%
14%
share of firms
100%
Assembly-to-order 69%
To stock 6%
25%
German part
74%
11%
15%
Swiss part
72%
15%
14%
0%
§ Significant regional differences Batch size
27%
French part
100%
Small or medium batch/lot
20%
Swiss part
25%
share of firms
Single unit production
German part
35%
59%
0%
Product complexity § 1/3 of firms produces complex products, even more in the French part
42%
16%
French part
Complex products
share of firms
100%
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 5
prod. § however, in the French part 1/3 of firms produces in larges batches Mode of production
§ Nearly three quarter of firms produce after customer's order
§ in the French part, production on stock much more prominent
Industry 4.0 in a holistic approach Product / offer perspective
Innovative products
Innovative services
resp. Smart Products
resp. Data-driven Services Critical competences
Process / user perspective
Innovative process technology resp. Smart Factory
Physical
Innovative process organisation resp. Smart Operations
Virtual/ not-physical
Sources: S. et ŠKinkel, Fraunhofer ISIal. (2005): Innovation: Mehr als Forschung und Entwicklung. In: Industrie-Management 21/3, S. 54-58 Lichtblau, K. et al. (2015): Industrie 4.0-Readiness. Hg.: IW KÜln Consult GmbH und FIR e.V. an der RWTH Aachen Seite 6
Industry 4.0 technology fields Digital production Management
Digital Management Systems
Production system
Near Cyber-PhysicalProduction System (CPS) processes
Product-LifecycleManagement Systems
Digital data exchange with customers and/or suppliers
Software for production planning and scheduling
Automation and management of internal logistics Near real-time production control system
Š Fraunhofer ISI Seite 7
Human-machinecommunication
Wireless humanmachine cooperation Mobile devices for programming and/or operating systems and/or machines
Digital visualization
Defining an index of I4.0-Readiness
Top group
Level 5
CPS-related processes
Level 4
Basic readiness
Basic levels Lower
IT-related processes
No readiness Non(yet) users
Š Fraunhofer ISI Seite 8
Several CPSrelated processes in use
Level 3 Individual or several IT-related processes in use
Level 2 Level 1
Level 0
Traditional processes
Higher
I4.0 similar processes
I4.0 Readiness
No I4.0 enabling technologies in use
Levels of the I4.0-Readiness index
Non-users who do not (yet) display any readiness for I4.0: § Level 0: firms that do not use any of the I4.0 enabling technologies examined and still tend to rely on traditional production processes. Basic levels, as a foundation for the path to I4.0, with a low degree of readiness:
§ Level 1 (beginners): firms that use IT-related processes in one of the three technology fields.
§ Level 2 (advanced beginners): firms that use IT-related processes in two of the three technology fields.
§ Level 3 (advanced users): firms that are active in all three technology fields and, thus, use both IT-related processes and CPS-related processes. Top group, as pioneers on the road to I4.0, with slightly higher readiness:
§ Level 4: firms that are active in all three technology fields and use at least two CPSrelated technologies.
§ Level 5: firms that are active in all three technology fields and use at least three CPSrelated technologies.
© Fraunhofer ISI Seite 9
I4.0-readiness profile of manufacturing in Upper-Rhine Only 10 percent of firms do not use any of the analsyed I4.0 technologies
Status of readiness Level 0
9%
Level 1 bis 3
No use (yet) 22%
Level 4 und 5
36%
13%
20 percent with I4.0 readiness 0%
25%
Share50% of firms
75%
Data sources: Survey 2018 – extracts of Switzerland, Germany. ŠEuropean Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 10
71 percent of IT near processes 9% 11% 100%
Every fifth firm is using technologies of all three fields and at least two CPS related applications Still a large share of over 50 percent of firms uses only technologies of one or two fields
I4.0-readiness profile of the Upper-Rhine regions - compared by firm size Large differences by firm size remain Level 1
Large firms (250 or more)
14%
Medium sized firms
Level 2
32%
15%
Small firms (< 50 empl.)
Level 4
14%
36%
28%
0%
Level 3
19%
14%
38%
25%
Level 5
50% Share of firms
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 11
13%
22%
17%
12% 5%
75%
Larger firms § all firms use digital technology § over a third are in the top group
5%
100%
Smaller firms § are mainly in using IT related technologies for management and human-machinecommunication
I4.0-readiness profile of manufacturing in Upper-Rhine – selected sectors Basic users Rubber and plastics, non-metal products
Top group 82%
Machinery and transport equipment
75%
Chemical and pharma industry
72%
Food and beverage industry
71%
Electronic and electrical products
70%
Metal industry
64%
Wood, paper, printing industry
57% 0%
12% 16% 28%
17%
Classic discrete part production with the highest share of basic users
Chemical as well as electronic and electrical industry with a large share of basic users and a high shore of top group
30% 24%
Process industry with a quite high share of CPS related process
27%
Share of firms
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 12
100%
Share of firms in Top group (level 4 and 5)
I4.0-readiness depending on production characteristics Product complexity
35% 30% 25% 20%
complex product are fully engaged in digitization
Large batch/lot
§ Producers of simple
Complex products
Medium complexity
products rarely use near CPS technologies
Small or medium batch/lot
15% 10%
§ Producers of
Batch size
Simple products
§ Firms with single unit
Single unit production
5% 0% 65%
68%
71%
74%
77%
Share of basic users (level 1 to 3) average for the region Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 13
80%
production are (still) less using near CPS technologies § Large batch production is most engaged in near CPS technology
D i ff e r e n c e s i n u s e o f t e c h n o l o g i e s Management and Human-Machine-Commun. used
Product-LifecycleManagement Systems
French part
Digital production planning and scheduling
18%
German part Swiss part
planned
25%
5%
15% 10%
German part
72%
French part
Mobile devices for French part programming and/or German part operating systems and/or machines
32%
French part
27%
German part
45%
Swiss part
44% 0%
in all three region for standard application Human-machinecommunication § lower shares of users in the French part of the region
17%
31%
§ similar share of users
100%
planned
21%
Swiss part
8%
share of firms
used
Seite 14
6%
74% 0%
Data sources: data. ISI ©Joint Fraunhofer
7%
80%
Swiss part
Digital visualization
Digital management § LifecycleManagement more often used in the German part
3%
12% 15% 23% 18% 14% share of firms
100%
D i ff e r e n c e s i n u s e o f t e c h n o l o g i e s Near CPS processes used
Digital data exchange with customers and/or suppliers Near real-time production control system
Automation and management of internal logistics
French part
54%
German part
11%
41%
9%
Swiss part
50%
12%
French part
50%
10%
German part
28%
Swiss part
30%
French part
40%
German part
28%
Swiss part
29% 0%
Technologies of near CPS processes § higher shares of users in the French part (partially in the Swiss part) of the region
planned
13% 18%
11% 16% 18% share of firms
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 15
100%
I4.0-readiness profile of the Upper-Rhine r e g i o n s – d i ff e r e n t i a t e d b y r e g i o n s Readiness status of firms in the Upper-Rhine region Level 1 French part
Level 2
Level 3
21%
German part
44%
25%
Swiss part
28% 25%
Level 5 4% 10%
36%
20% 0%
Level 4
17%
19% 50% Share of firms
10% 75%
§ A quarter of French firms is using technologies of all three fields and at least two CPS related applications
15%
7% 7%
11% 100%
Ø regional differences are rather related to differences in production structure than localisation
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 16
§ In the Swiss and French part with a lower share of nonusers
§ Single use of CPS related technologies much more prominent in German and Swiss part of the Upper-Rhine region.
Share of firms in Top group (level 4 and 5)
I4.0-readiness profile of the Upper-Rhine regions – compared to other German regions Upper-Rhine region
35% 30% 25%
§ In comparison to other regions, .. Upper-Rhine region with higher shares of § top group AND § basic users
German states
French part NRW
20% 15%
Swiss part
BadenWurttemberg
German part Bavaria
10%
§ the Swiss part includes a higher share of non-users
5% 0% 65%
§ In German part of the region, a quite low share of top group
68%
71%
74%
77%
Share of basic users (level 1 to 3)
Data sources: Survey 2018 – extracts of Switzerland, Germany. ©European Fraunhofer Manufacturing ISI Digitization Survey 2018 Upper Rhine area of France. Seite 17
80%
Summary § Readiness level of firms strongly depends on firm and production characteristics (especially on firm size, product complexity, batch size)
§ Use of multiple CPS related technologies mainly by larger firms § Digitization is still mainly used to increase automisation (large batches) § Firms of the Upper-Rhine region are using to a higher share digital technologies in production
§ the German part has the highest share of basic users § in the French part, the highest share of top group was detected § Specific for firms from the French part is: § CPS related technologies are used to a higher share § They are less active in simpler application to increase human-machine-communication
© Fraunhofer ISI Seite 18
Kontakt
Thank you for your attention! Angela Jäger Koordination European Manufacturing Survey (EMS) E-Mail: angela.jaeger@isi.fraunhofer.de Dr. Christian Lerch Leiter Geschäftsfeld Industrielle Innovationsstrategien E-Mail: christian.lerch@isi.fraunhofer.de Tel: +49 721 6809-322 Fraunhofer Institut für System- und Innovationsforschung ISI Breslauer Straße 48 76139 Karlsruhe, Germany www.isi.fraunhofer.de © Fraunhofer ISI Seite 19