Competence Center for the Digital Transformation in Small and Medium-Sized Enterprises

Competence Center for the Digital Transformation in Small and Medium-Sized Enterprises

Available online at www.sciencedirect.com ScienceDirect Procedia Manufacturing 11 (2017) 1495 – 1500 27th International Conference on Flexible Autom...

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Available online at www.sciencedirect.com

ScienceDirect Procedia Manufacturing 11 (2017) 1495 – 1500

27th International Conference on Flexible Automation and Intelligent Manufacturing, FAIM2017, 27-30 June 2017, Modena, Italy

Competence Center for the Digital Transformation in Small and Medium-Sized Enterprises Egon Müllera , Hendrik Hopfa* a

Mittelstand 4.0 Competence Center Chemnitz, c/o Chemnitz University of Technology, Chemnitz, D-09107, Germany

Abstract The approaches of the internet of things, cyber-physical systems and industry 4.0 include various potentials for industrial enterprises. The “Mittelstand 4.0 – Digital Production and Work Processes” initiative by the Federal Ministry for Economic Affairs and Energy in Germany supports small and medium-sized enterprises to become digitized, to network and to start using industry 4.0 applications. The “Mittelstand 4.0 Competence Center Chemnitz” is part of this initiative. It provides information, practical trainings, test environments and application projects for the small and medium-sized companies in the region. In the paper, the center’s goals, structures and service offer are described. © by by Elsevier B.V.B.V. This is an open access article under the CC BY-NC-ND license © 2017 2017The TheAuthors. Authors.Published Published Elsevier (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and IntelligentManufacturing Manufacturing. Intelligent Keywords: competence; cyber-physical systems; digital transformation; industry 4.0; internet of things

1. Introduction The digital transformation is seen as a disruptive change of the industry, which has various potentials for industrial enterprises. The internet of things, cyber-physical systems and industry 4.0 are the main components for this development. Thus, custom-designed goods can be produced rapidly and flexibly in small quantities. Comprehensive services around the product become more and more important in this context. The horizontal and

* Corresponding author. Tel.: +49 371 531-38527; fax: +49 371 531-838527. E-mail address: [email protected]

2351-9789 © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and Intelligent Manufacturing doi:10.1016/j.promfg.2017.07.281

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vertical integration of business and technological processes in and between companies represent the basis for the digital transformation. This leads to fundamental changes in production and work processes. Keeping up with these changes, it is necessary to transfer knowledge and experiences from research & development into practical usage. Thereby, the practicability and profitability of solutions must be focused. Especially small and medium-sized enterprises (SME) could benefit from these potentials by establishing new processes, products and business models. However, the SMEs often have limited resources for research & development, investments, consulting or qualification of personnel. Thus, active support for SMEs by public funding is needed. To meet these requirements, the initiative “Mittelstand 4.0 – Digital Production and Work Processes” [1] and the involved project “Mittelstand 4.0 Competence Center Chemnitz” are introduced in this paper. The remainder of the paper is organized as follows: The theoretical and practical background of the internet of things, cyber-physical systems and industry 4.0 is explained in section 2. The funding initiative, goals, structures and service offer of the competence center are described in section 3. Finally, section 4 summarizes the main facts about the current and the further work. 2. Background 2.1. Technological Basis Smartphones, tablets and computers have become integral parts of this world. Home appliances like washing machines or coffee makers, which are connected to the internet and can be remotely controlled by a smartphone, are also well known. In the figurative sense, this kind of machines can be seen as so-called “cyber-physical systems” [2], which are the main components of industry 4.0 [3]. On the one hand, the systems are part of the real world (“physical”). On the other hand, the systems are also part in the digital world – described by data and information (“cyber”). These systems are further characterized by intelligent control, information and communication devices which are used to recognize and influence the system’s environment. Thus, they are able to communicate and cooperate autonomously with other systems and humans. Therefore, an appropriate framework in form of an information network is required. This represents the “internet of things” (also “internet of things and services”). Different evolutionary stages are available [4]. Basically, intelligent physical things (e.g., devices, containers or tools) are directly connected to the internet as well as other things and humans by using information and communication technologies (e.g., embedded systems). The humans become part of this information network with the help of mobile devices (e.g. as smartphone or smartwatch). Building on that, new services for users or customers can be applied (e.g., online order by touch of a button). As a result, industry 4.0 can be seen as the transfer of the concepts of the internet of things to the industrial application by using cyber-physical systems. This implies that new business, production and work processes based on intelligent and connected systems of humans and machines are created. For example, the machine 4.0 as a cyberphysical system directly reports the consumption of auxiliary and operating materials or occurring malfunctions to the internal maintenance staff or to the external service providers via internet. The maintenance technician controls the operating state of the machine and may adjust settings by remote access [5]. Furthermore, the factory 4.0 or “smart factory” is composed of these cooperating cyber-physical systems. It is able to offer tailor-made, customized products and services both in a flexible way and throughout the world. It has to be emphasized that the human being with his cognitive abilities is the key element for the digital transformation. 2.2. Requirements It becomes clear that new technologies are the basis for the digital transformation. This is why technologies are focused in research & development projects. Different solutions are already usable, for example 3D printing, cloud computing, lightweight robotics, intelligent sensors, augmented or virtual reality. Depending on their readiness, these technologies could be integrated step by step in the companies. Standards (e.g., protocols) are required for that. However, technology is just one requirement. The related changes in and between companies are much more profound and concern the entire organizational and operational structure. Therefore, the successful application of

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industry 4.0 depends on management decisions for the complete company. Every person – from the entrepreneur over the executive to the practitioner – has to be involved with his concrete functions, tasks and responsibilities. As a prerequisite for the digitalization, processes have to be structured and defined in a clear and simplified manner. Further aspects such as law, safety and security also belong to that. Questions like “Who is the owner of the data?” or “Who is responsible in case of malfunction?” have to be answered. If companies, humans and machines work together, then all of these requirements are important. As a result, the most important requirement belongs to the humans. The personnel has to be sensitized for the topics digitalization, networking and industry 4.0. Interdisciplinary competencies are required to understand how new approaches and technologies can be used efficiently for the own processes. Therefore, the three dimensions human, technology and organization have to be considered in a holistic way for the successful digital transformation. 2.3. Basic steps for application How can industry 4.0 be applied practically? Basically, the entrepreneurs should be open-minded and recognize new products, technologies and connected services to earn money (e.g., apps). They should think about how these approaches could be applied in their own company. However, it doesn’t mean that the whole company has to be renewed completely. If the goals and processes are defined clearly, improvements can be applied step by step [6]. At the first step, systems for data acquisition could be integrated in manufacturing (e.g., object identification by barcode reader or RFID). Thus, information about how the process works are gathered. Large stocks or long process times are identified and traced to their origins. In the next step, mobile devices with an appropriate software can be used as an assistance system to provide role and task specific information for the personnel in the factory. This could be useful for repair or learning processes. A next possible step is the integration of intelligent and autonomous systems (e.g., lightweight robotics or automated guided vehicles) to improve manual production and logistics processes. Then, machines and humans are connected. This means, for example, that messages or failures are directly reported to the mobile devices of the personnel and actions are derived automatically. For example, see Fig. 1. Finally, this is the basis for the networking and cooperation of humans and machines across companies. Again, it is emphasized that the personnel has to be sensitized and qualified for these approaches.

Fig. 1. Example of an assistance system in one of five test environments of the competence center.

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3. Mittelstand 4.0 Competence Center Chemnitz 3.1. Funding Initiative The “Mittelstand 4.0 – Digital Production and Work Processes” initiative by the Federal Ministry for Economic Affairs and Energy in Germany supports small and medium-sized enterprises to become digitized, to network and to start using industry 4.0 applications. The active transfer of knowledge and technologies from research and development into practical usage of the SMEs is focused. By this, the awareness among SMEs about the technological and economic potentials of digitalization including industry 4.0 should be raised. Two kinds of projects are part of this initiative: The so-called “Mittelstand 4.0 agencies” work on specific issues such as cloud, processes, communication and trade for SMEs and share this knowledge to multipliers; the “Mittelstand 4.0 Competence Centers” represent the local contact points for the SMEs to receive a direct support. 3.2. Goals & Structure The “Mittelstand 4.0 Competence Center Chemnitz” [7] is one of these centers in the middle and east of Germany. It supports SMEs with the digital transformation of their systems and processes. Industrial equipment suppliers, suppliers for automotive and manufacturing industries as well as IT/ICT service providers are the focused industrial sectors. The service offer consists of the three main parts information, qualification and support (see below) and is performed by five consortium partners of the project (Fig. 2).

Fig. 2. Overview on Mittelstand 4.0 Competence Center Chemnitz.

Egon Müller and Hendrik Hopf / Procedia Manufacturing 11 (2017) 1495 – 1500

3.3. Service Offer – Information, Qualification and Support The service offer includes several instruments for the stepwise sensitization, training and support of entrepreneurs, executives and practitioners for the topics digitalization, networking and industry 4.0 applications. For this, the three main parts information, qualification and support are defined. Each of these parts consists of three instruments: the first ones are located in the companies (business forums, in house trainings and application projects); the second ones take place in the test environments of the competence center (theme days, face to face trainings and technology tests); the third ones can be used online (online information services, online qualification services, online support services). To get an impression, more than 90 events and trainings as well as 30 application projects will be performed in the project duration (three years until 2019). Typical contents are: • • • • •

Digitized factory and production systems, Virtual product development and business processes, Work processes and qualification, Legal aspects, Usability.

3.4. First findings In the first months more than ten events and trainings as well as nine application projects were performed with different results and findings. Basically, the demands of the SMEs for information and qualification are different compared to large companies or to typical research and development projects of universities and other research institutes. The SMEs don’t have time or resources to qualify the staff, to develop complex ICT structures or to think about a digitalization strategy for the company. There also skepticism about the word “Industry 4.0” and the benefits of it. Therefore, for the beginning, basic topics (e.g., “What is Industry 4.0?”, “What can I do with digitalization?” or “New business models”) have to offered in the first events and have to be detailed in following workshops. By this, the participants want to get concrete and easy-to-use solutions which can be directly used in their own processes or companies. By using practical and conceivable demonstrators and also short use cases, the most effects can be achieved (Fig. 3). Low-cost solutions are also preferred (e.g., by using Raspberry Pi or free and open source software).

Fig. 3. Demonstrators and impressions of events.

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4. Conclusion The digital transformation of systems and processes includes risks and potentials, especially for SMEs. These companies have limited resources for research & development, investments, consulting or qualification of personnel. Therefore, the “Mittelstand 4.0 – Digital Production and Work Processes” initiative supports SMEs to become digitized, to network and to start using industry 4.0 applications. The “Mittelstand 4.0 Competence Center Chemnitz” is part of this initiative and provides information, practical trainings, test environments and application projects for the companies. Acknowledgements The Mittelstand 4.0 Competence Center Chemnitz is part of the funding initiative “Mittelstand 4.0 – Digital Production and Work Processes” by the Federal Ministry for Economic Affairs and Energy in Germany. References [1] Federal Ministry for Economic Affairs and Energy in Germany, Mittelstand 4.0 – Digital Production and Work Processes, http://mittelstanddigital.de/DE/Foerderinitiativen/mittelstand-4-0.html, (accessed April 28, 2017). [2] H. Song, D. B. Rawat, S. Jeschke, C. Brecher, Cyber-Physical Systems Foundations, Principles and Applications, Elsevier, 2017. [3] E. Müller, H. Hopf, M. Clauß, F. Börner, Cyber-Physische Systeme in der Instandhaltung - Herausforderungen und Chancen, in: G. Horn (Eds.), Der Instandhaltungs-Berater. TÜV Media GmbH, Köln, 2016, pp.1–30. [4] L. Atzori, A. Iera, G. Morabito, Understanding the Internet of Things: definition, potentials, and societal role of a fast evolving paradigm, Ad Hoc Networks 56 (2017), 122–140. [5] H. Hopf, D. Jentsch, T. Löffler, S. Horbach, A. C. Bullinger-Hoffmann, Improving Maintenance Processes with Socio-Cyber-Physical Systems, in: F. F. Chen (eds.), Proceedings of the 24th International Conference on Flexible Automation and Intelligent Manufacturing, DEStech Publications, Lancaster, Pennsylvania, USA, 2014, pp. 1163–1170. [6] J. Bischoff et al., Erschließen der Potenziale der Anwendung von “Industrie 4.0” im Mittelstand, Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi), Berlin, 2015. [7] Project Mittelstand 4.0 Competence Center Chemnitz, https://betrieb-machen.de (accessed April 28, 2017).