SIEMENS SOLVES WHAT MATTERS
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WORKING TO SOLVE WHAT MATTERS WRIT TEN BY
M ARÍA COBANO-CONDE
PRODUCED BY
M ANUEL NAVARRO
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HOMERO JAVALERA, DIRECTOR OF OPERATIONS, EXPLAINS THE TRANSFORMATION THE MONTERREY PLANT UNDERWENT WITH THE LATEST TECHNOLOGICAL INNOVATIONS
S
iemens enjoys a privileged position as one of today’s leaders in the industries of technology, health-
care, and solutions for the processes of electrification and digitalisation. 04
Siemens may be defined as an actor that understands what truly matters in today’s society: the extreme urbanisation of the planet, globalisation, digitalisation, climate change, and the ageing of the population are some of the hot topics for which Siemens creates solutions that leverage change. All this is focused on the creation of a catalogue and implemented in three cornerstones: automation, electrification, and digitalisation. Its production plant in Monterrey (Mexico) is going through a digitalisation renewal process that is making its manufacturing processes more agile and efficient – it’s truly a factory from the future. Homero Javalera, director of Operations in Siemens Mexico, has been at the forefront of
Homero Javalera, Director of Operations for Siemens Mexico
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“SIEMENS HAS AN IIOT (INDUSTRIAL INTERNET OF THINGS) OPERATIVE SYSTEM CALLED MINDSPHERE, AND OUR 3.0 VERSION IS IN THE SERVERS OF AMAZON WEB SERVICES” — Homero Javalera, Director of Operations for Siemens Mexico
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the plant’s operations for four years, a labour that has earned him awards as renowned as the Global Siemens AG Award 2016 (Werner von Siemens Award) for the best global performance, the biggest recognition awarded by Siemens in the entire corporation.
THE COMBINATION OF TWO BUSINESS AREAS The most relevant development that Javalera may have had in his adminis-
CLICK TO WATCH : ‘SIEMENS — MANIFIESTO INTERNACIONAL’ 07 tration to date has been the fusing together of two production plants into
$220mn and over 20mn units per year.” Javalera delves into the plant creation
today’s Monterrey plant, where work is
process: “What we did was bring two
done in three different areas. “I took
factories together into one – we had
care of the transfer of two business
a single type of product here, and then,
areas and the coordination of the
we brought over two more from two
whole team, a task that consisted of
different factories. Now, we have three
building warehouses, hiring 1,000
types of products in Monterrey:
people, implementing ERP (Enterprise
residential circuit breakers, industrial
Resource Planning), redirecting the
circuit breakers, and safety switches,”
entire supply chain and all the suppli-
Javalera analyzes. “This isn’t just
ers, contacting internal clients and
a manufacturing facility; it’s an Investi-
investors, buying new equipment, etc.
gation and Development center as we
We have 1,500 employees in the
design and launch new products here
factory, and we sell approximately
as well. We have a group of researchers w w w. s i e m e n s . c o m / m x /e s
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conducting advanced materials investigations using nanotechnology, and another group doing Investigation and Development with the supply chain group from Global Procurement in the areas of automation and digitalisation here in this organisation as well.” “This is truly a company doing complex things, a company facing today’s most complex challenges. It generates technology to address issues such as climate change, energy distribution, clean energy generation... our portfolio 10
is vast in that sense. We also address the issue of the planet’s extreme urbanisation, and to do so, Siemens’s catalogue serves, for example, mobility, trains, smart buildings, and energy consumption control in urban concentrations. We have the opportunity to contribute that to our clients. Digitalisation is a global trend and a priority for Siemens. Through our portfolio, we provide solutions for our clients, and we’re also developing our internal systems. For example, we’ve grown very much in comparison to previous years with clients such as Amazon, Facebook, and Microsoft given the investments they’ve made in infrastruc-
“SIEMENS IS MIGRATING TOWARDS BECOMING A COMPANY THAT IS THOROUGHLY ABOUT DIGITAL TECHNOLOGY” — Homero Javalera, Director of Operations for Siemens Mexico
ture such as data centers. The world is going electric, and Siemens has this whole catalogue.”
DIGITAL TRANSFORMATION FROM THE INSIDE Siemens Mexico doesn’t create innovation for its clients only, but it also applies it to its production processes. The radical changes in the plant’s production lines were a result of introducing the most relevant trends in digitalisation to maximise resources. Javalera explains
how this change developed. “The change has been exponential in the last years, not so much before then. Ten years ago, we made very slow changes as needs would arise and according to the available technology. Now, we have a deeper understanding of digitalisation and automation; technology is more readily available, and new generations are entering the labour market with different skills in digitalisation.” “Change in the past three or four w w w. s i e m e n s . c o m / m x /e s
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The Siemens Mexico management team
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years has been exponential indeed
transition and application of digital
since, 10-15 years ago, we hadn’t done
technologies: “Digital Factory is our
what we’ve been doing lately. For
division leading us through the
example, mobile technology already
digitalisation process – they have the
existed then, but today, new communi-
entire portfolio, and it’s quite vertical.
cation protocols in mobile technology
It includes the physical elements
allow for the exchange of data in
necessary to connect the machines
massive amounts and at unbelievable
and generate data as well as the
speeds. This way, data from thousands
elements for interconnectivity and
of connections in your production lines
industrial networking purposes. Our
may be connected in real time and be
Siemens PLM division has an entire
used in a very valuable way.”
software portfolio for the different
Siemens Mexico has its own team of experts in charge of leading the
stages in our digitalisation, and it also has the design software Siemens NX w w w. s i e m e n s . c o m / m x /e s
COMPAN Y FAC TS
• Siemens Mexico employs 1,500 collaborators in its Monterrey plant • On average, Siemens Mexico generates $220M in revenue, and it sells 30M units per year
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1847
Year founded
372,000 Number of Siemens employees globally
$95bn+ Revenue in fiscal year 2017
Siemens building in Monterrey, Mexico
to create digital twins of industrial processes and/or products such as cars, airplanes, circuit breakers, etc.” By executing a circular strategy, Siemens uses these same digital processes to leverage the efficiency of the products it offers to market. “For example, you can monitor the efficiency of our electricity generation turbines in real time. You can monitor the efficiency of the electric distribution and make decisions on the spot. Also in real time and through customised solutions tailored to your needs, you can monitor and distribute energy in a smart way in cities and buildings. Even at the production line level, through Siemens’s portfolio of software and hardware, you can know which engine is consuming more energy, or you can know what the peak times of energy consumption are in a smart building to implement energysaving projects,” he concludes.
INNOVATION APPLIED TO MANUFACTURE PROCESSES In Siemens’s Mexico particular case, the application of digital innovations is accomplishing a very high level of w w w. s i e m e n s . c o m / m x /e s
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CLICK TO WATCH : ‘SIEMENS MÉXICO— DIGITALIZATION’ 16 satisfaction with processes, produc-
of dollars by preventing potential
tion, and manufacturing. Javalera
failures from errors in the design of
offers exclusive information on this
the productions lines. Moreover, once
newly obtained acceleration: “We can
it’s running, you can make sure its
save on months of prototype develop-
efficiency is as close as possible to the
ment, long hours of engineering, and
efficiency you expect from production,
lots of money in materials and tools
emphasising automatic management
by simply creating digital twins for the
of the client’s demands, where we have
products before launching them.”
much less human intervention.”
“Before ordering new machinery
In matters of production execution,
and investing hundreds of thousands
we monitor the performance of the
of dollars in equipment, simulations
lines in real time, and we receive
are designed by computer right at the
an immediate response whenever
production line to determine what is
a problem arises. Regarding quality
really needed. This saves up thousands
and product safety, in very critical
L AT I N A M E R I C A
“ O UR DIGITAL FACTORY IS LEADING OUR DIGITALISATION” — Homero Javalera, Director of Operations for Siemens Mexico
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processes, we accomplished having
need to do a maintenance intervention
deep and detailed traceability at an
so the machine won’t fail. In the future,
individual level for each of the 30 million
we’re moving up to a prescriptive level
units we make every year. We have
in such a way that the system itself will
a “birth certificate” for every one of
give instructions, carry out maintenance
them, a matrix code that is unique for
activities automatically, and even
every product. All of that is available in
create purchasing orders [for parts]
the cloud, and we can make inquiries,
promptly. Whenever the replacement
analyse, improve, monitor, etc. through
part is ready in the warehouse, it will
applications.”
create and send a maintenance work
“For machine maintenance, we’re
order to be executed.”
installing additional sensors, connectivity modules, HMIs, and PLCs. We are
SOLID ALLIANCES WITH COLLABORATORS
getting them connected so they can let
Siemens Mexico is proud to offer its
us know in a predictive way when we
avant-garde innovation to clients as w w w. s i e m e n s . c o m / m x /e s
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“GENERATING TECHNOLOGY TO TAKE CARE OF ISSUES SUCH AS CLIMATE CHANGE, ENERGY DISTRIBUTION, CLEAN ENERGY GENERATION... OUR PORTFOLIO IS EXTENSIVE IN THAT SENSE” — Homero Javalera, Director of Operations for Siemens Mexico
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renowned as Microsoft, Facebook, BMW, General Motors, and Ford, and this is thanks to its collaboration with top companies as well as with partners and suppliers. This has been evidenced by the recent association of Siemens with Amazon Web Services, the digital giant: “Siemens has an IIoT (Industrial Internet of Things) operative system called MindSphere, and our 3.0 version is in the servers of Amazon Web Services. These servers have a superior processing capability when 20
compared to what we have internally and to what we’ve seen from other potential partners.” “Amazon’s processing capability is brutal; it’s very fast, and it can process a huge amount of data simultaneously. Our operative system is installed there. We already started by implementing the first application, and we plan on connecting over 550 pieces of equipment. Every piece of equipment will have at least 10 connection points; that is, over 5,500 connection points that will generate millions of data.” The company also enjoys an excellent collaborative relationship with its suppliers, such as ARRK, for example.
A specialist in product development, it has been a global supplier of prototypes and production tools for Siemens since 1997, working jointly in many different divisions including Siemens Medical. This year, it has been in charge of the largest version of a toolkit for a single provider. In great measure, said collaborations drive digitalisation in Latin American, enriching and leveraging transformation. Javalera analyses the digital disruption situation in the region: “Here, we see it at our operation’s level. Job positions are truly changing. The demand for process engineers is decreasing, and so is the demand for data entry clerks, inspectors, etc. However, there is a higher demand for programmers, applications developers, and people who know about automation, PLCs, industrial networks, and big data analysis.” “That is a challenge; there will be a huge demand, and there won’t be enough people to fulfill it. We’re going to need to hurry up, both the industry and universities, in order to develop the necessary skills. Another important challenge is implementing a big part of w w w. s i e m e n s . c o m / m x /e s
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the innovation in digitalisation. The industry needs to be more willing to invest and experiment without the burden of traditional accounting. The value is clear, and it does exist, but on occasion, it will be difficult to calculate an immediate return of investment.” Siemens Mexico has defined its strategy to continue transforming itself in the future: “Siemens is migrating towards becoming a company that is thoroughly about digital technology. Regarding software and digital 22
services, we grew 20% last year, with a revenue of over $5.78 billion – Siemens is already the eight largest software company in the world in terms of size. We’ve acquired over $11.55 billion in software in the last 10 years. We’ve also
Homero Javalera and Miguel Guerrero
increased our investment in investigation and development significantly in the last few years. Almost $7 billion will
“In California, we have the Next
go to Investigation and Development
47 division, which works as a kind of
every year. This includes both the
catalyst for startups. For the next five
digital and automation areas as well
years, Siemens sets aside $1.16 billion
as the areas of additive manufacturing,
for Next 47, and it’s mainly working
autonomous robots, blockchain
with 3D printing, IoT, robotics and
applications, Artificial Intelligence,
drones, artificial intelli-
advanced materials, and energy
gence, augmented reality,
storage among others.
and virtual reality.”
Collecting the Global Siemens AG Award 2016 (Werner von Siemens Award) for best global performance, the highest recognition granted by Siemens
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“We are not only helping with capital, but Siemens connects these startups with either our partners or with Siemens itself to see how to implement their proposals in the industry. We also get them closer to both the industry and potential clients,� concludes Javalera.
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Av Ejército Nacional 350 Polanco, Polanco V Secc Ciudad de México CDMX, México T +52 55 5328 2199 E servicios.mx@siemens.com www.siemens.com/mx/es