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Technology based industrial product-services supporting robustness in manufacturing systems
IFAC Conference on Manufacturing Modelling, IFAC Conference on Manufacturing Modelling, Management and on Control IFAC Manufacturing Available online at www.sciencedirect.com IFAC Conference Conference Manufacturing Modelling, Modelling, Management and on Control June 28-30, 2016. Troyes, France Management and Control Control Management and June 28-30, 2016. Troyes, France June June 28-30, 28-30, 2016. 2016. Troyes, Troyes, France France
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Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in manufacturing systems manufacturing systems manufacturing systems manufacturing systems
Colledani M.*, Silipo L.*, Yemane A. *, Lanza G.**, Stricker N. **, Ziprani F. ***, Fogliazza G. **** Colledani M.*, Silipo L.*, Yemane A. *, Lanza G.**, Stricker N. **, Ziprani F. ***, Fogliazza G. **** Colledani Colledani M.*, M.*, Silipo Silipo L.*, L.*, Yemane Yemane A. A. *, *, Lanza Lanza G.**, G.**, Stricker Stricker N. N. **, **, Ziprani Ziprani F. F. ***, ***, Fogliazza Fogliazza G. G. **** **** *Mechanical *Mechanical Engineering Engineering Department, Department, Politecnico Politecnico di di Milano, Milano, Milano, Milano, (e-mail: Department, [email protected]). *Mechanical Engineering Politecnico *MechanicalItaly Engineering Politecnico di di Milano, Milano, Milano, Milano, Italy (e-mail: Department, [email protected]). **Karlsruher Institute für Italy Technologie, wbk Institute of Production Science, Karlsruhe, Germany (e-mail: [email protected]). (e-mail: wbk [email protected]). **Karlsruher Institute für Italy Technologie, Institute of Production Science, Karlsruhe, Germany (e-mail:[email protected]) **Karlsruher wbk **Karlsruher Institute Institute für für Technologie, Technologie, wbk Institute Institute of of Production Production Science, Science, Karlsruhe, Karlsruhe, Germany Germany (e-mail:[email protected]) *** Marposs Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) (e-mail:[email protected]) (e-mail:[email protected]) *** Marposs Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) *** Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) *** Marposs Marposs Spa, Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) **** MCM Vigolzone (PC) ,Italy (e-mail:[email protected].) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) Abstract: Uncertainty affecting manufacturing systems or networks asks for approaches able to Abstract: Uncertainty affecting manufacturing systems or networks asks for approaches able to smoothing the the negative effects effects of disturbances disturbances coming both from from the plant plant asks and supply supply chain levels. levels. Thus, Abstract: Uncertainty affecting manufacturing systems or for able to Abstract: Uncertainty affecting manufacturing systems or networks networks asks for approaches approaches able to smoothing negative of coming both the and chain Thus, the objective of this paper is to investigate the capability of product-services business models of smoothing the negative effects of disturbances coming both from the plant and supply chain levels. Thus, smoothing the of negative effectsisoftodisturbances both from plant and supplybusiness chain levels. Thus, the objective this paper investigatecoming the capability ofthe product-services models of increasing companies robustness, towards internal internal and external external disturbances business in highly highlymodels dynamic the objective of is the of of the objective of this this paper paper is to to investigate investigate the capability capability of product-services product-services business models of increasing companies robustness, towards and disturbances in dynamic environments. This work is part of the EU project RobustPlaNet, which investigates this topic in the increasing companies robustness, towards internal and external disturbances in highly dynamic increasing companies robustness, internalRobustPlaNet, and externalwhich disturbances in highly dynamic environments. This work is part of towards the EU project investigates this topic in the context of threeThis industrial areas, i.e.the automotive, aerospace and industrial automation.this Thetopic analysis is environments. work part EU RobustPlaNet, which in environments. work is isareas, part of of EU project project RobustPlaNet, which investigates investigates in the the context of threeThis industrial i.e.the automotive, aerospace and industrial automation.this Thetopic analysis is carried out on a case study in the field of equipment reliability in order to demonstrate the formalization context of three industrial areas, i.e. automotive, aerospace and industrial automation. The analysis is context of three industrial i.e. automotive, aerospace industrial automation.the The analysis is carried out on a case study areas, in the field of equipment reliabilityand in order to demonstrate formalization of business models forstudy industrial product-services thatreliability support systems’ robustness. carried out aa case in field in to carried out on on case in the theproduct-services field of of equipment equipment in order orderrobustness. to demonstrate demonstrate the the formalization formalization of business models forstudy industrial thatreliability support systems’ of business models for product-services that support systems’ robustness. of models for industrial industrial product-services that support systems’ robustness. © business 2016, IFAC (International Federation of systems, Automatic Control) Hosting by Elsevier Ltd. All rights reserved. Keywords: Disturbances, manufacturing product-services. Keywords: Disturbances, manufacturing systems, product-services. Keywords: Disturbances, manufacturing systems, product-services. Keywords: Disturbances, manufacturing systems, product-services.
1. 1. INTRODUCTION INTRODUCTION 1. INTRODUCTION 1. INTRODUCTION In In recent recent years, years, manufacturing manufacturing industries industries are are challenging challenging with with highly unpredictable production environment, while to In recent years, manufacturing industries are with In recent years, manufacturing are challenging challenging with highly unpredictable productionindustries environment, while trying trying to be efficient and to fulfill customers’ demand with the highest highly unpredictable production environment, while trying to highly unpredictable production environment, while to be efficient and to fulfill customers’ demand with thetrying highest performance. They are part of global production networks be efficient and to fulfill customers’ demand with the highest be efficient and to fulfill customers’ demand with thenetworks highest performance. They are part of global production and, for this reason, exposed the influence of the other performance. They part global production networks performance. They are are part of ofto production networks and, for this reason, exposed toglobal the influence of the other companies’ output variability and to the fluctuations of and, for this reason, exposed to the influence of the and, for this output reason,variability exposed toand the toinfluence of the other other companies’ the fluctuations of markets. At output plant level, disruptive events, like for example companies’ variability and to the fluctuations of companies’ output variability and to the fluctuations of markets. At plant level, disruptive events, like for example machine lack materials, influence markets. At disruptive events, like for example markets. At plant plantor level, disruptive events, like the for behavior example machine failures failures orlevel, lack of of materials, influence the behavior of and modify the related machine failures of influence machine failures or or lack lacksystem of materials, materials, influence the behavior of the the manufacturing manufacturing system and may may modifythe thebehavior related performance. These deviations cause in turn lowered of the manufacturing system and may modify the related of the manufacturing system and cause may modify related performance. These deviations in turnthelowered customer related performances (e.g. service level) and performance. These deviations cause in turn lowered performance. These deviations (e.g. cause service in turnlevel) lowered customer related performances and definitely problems in achieving demand requirements. This customer related performances (e.g. service level) and customer problems related performances (e.g. service level) This and definitely in achieving demand requirements. asks for solutions for improving the ability of production definitely problems in achieving demand requirements. This definitely problems for in achieving requirements. This asks for solutions improvingdemand the ability of production system handle for these environmental while asks for solutions improving the of asks for to improving the ability abilitychanges, of production production system tosolutions handle forthese environmental changes, while maintaining the requested performance, i.e.changes, being robust. system to handle these environmental while system to handle these environmental changes, while maintaining the requested performance, i.e. being robust. Traditionally, of maintaining requested i.e. robust. maintaining the enhancing requested performance, performance, i.e. being being systems robust. Traditionally,the enhancing of manufacturing manufacturing systems responsiveness disturbances is Traditionally, enhancing of systems Traditionally, enhancing of manufacturing manufacturing systems responsiveness towards towards disturbances is addressed addressed exploiting exploiting in-house competences or by paying for outsourced solutions. responsiveness towards disturbances is addressed exploiting responsiveness towardsordisturbances is outsourced addressed exploiting in-house competences by paying for solutions. For example, solutions forpaying mitigating productionsolutions. system in-house competences or for in-house competences or by by for outsourced outsourced For example, solutions forpaying mitigating productionsolutions. system reliability disturbances rely in maintenance crew additional For example, solutions for mitigating production system For example, solutionsrely for inmitigating production system reliability disturbances maintenance crew additional training on specific interventions or in equipment overhaul reliability disturbances rely in maintenance crew additional reliabilityondisturbances rely in maintenance crew additional training specific interventions or in equipment overhaul outsourcing. Amonginterventions the other or approaches proposed in training in overhaul training on on specific specific in equipment equipment overhaul outsourcing. Amonginterventions the other or approaches proposed in literature, the adding, coupling or integrating of proposed services into outsourcing. Among the other approaches in outsourcing. Among the other approaches proposed in literature, the adding, coupling or integrating of services into products represents production system literature, the coupling integrating of into literature, the adding, adding, coupling aaor or viable integrating of services services into products offering offering represents viable production system robustness enabler. In establishment of products aa viable production system products offering represents viable the production system robustnessoffering enabler. represents In fact, fact, it it promotes promotes the establishment of new cooperative and collaborative buyer-supplier robustness enabler. In fact, it promotes the establishment of robustness enabler. In and fact, it collaborative promotes the establishment of new cooperative buyer-supplier relationships, characterized by interactions/communications new cooperative and collaborative buyer-supplier new cooperative and bycollaborative buyer-supplier relationships, characterized interactions/communications schemes which aim at smoothing the negative effects of relationships, characterized by relationships, characterized by interactions/communications interactions/communications schemes which aim at smoothing the negative effects of disturbances acting on the system under This of is schemes which aim at smoothing the negative schemes which aimonatthesmoothing the investigation. negative effects effects disturbances acting system under investigation. This of is made possible by assigning robustness related critical tasks disturbances acting on the system under investigation. This is disturbances acting on the system under investigation. is made possible by assigning robustness related criticalThis tasks and associated risksassigning to the stakeholders in the user network made possible by robustness related critical tasks made possible by assigning robustness related critical tasks and associated risks to the stakeholders in the user network which have greater expertise and can achieve the and associated to stakeholders in network and associated risks to the the stakeholders in the the user network which have the the risks greater expertise and which which canuser achieve the which have the greater expertise and which can achieve which have the greater expertise and which can achieve the the
goal of disturbance mitigation in the most efficient way. For goal of disturbance mitigation in the most efficient way. For services with shop floor robustness i.e. in which the goal mitigation in most way. goal of of disturbance disturbance mitigation in the thefocus most ––efficient efficient way. For For services with shop floor robustness focus i.e. in which the service provider is the technology provider – this means also services with shop floor robustness focus – i.e. in which the servicesprovider with shop floor robustnessprovider focus ––i.e. whichalso the service is the technology thisinmeans overcoming the product-focused technical offering basedalso on service provider is the technology provider –– this means service provider is the technology provider this means also overcoming the product-focused technical offering based on transactional towards service-centered selling overcoming product-focused offering on overcoming therelations, product-focused technical offering based based on transactional the relations, towardstechnical service-centered selling grounded long-term relationships and added transactional service-centered transactional relations, towards service-centered selling grounded on on relations, long-term towards relationships and value value selling added proposition al., these grounded long-term and grounded on(Wiendahl long-termet relationships and value value added added proposition on (Wiendahl et relationships al., 2004). 2004). Operationally, Operationally, these collaborative relations require B2B business models and proposition (Wiendahl et al., 2004). Operationally, these proposition (Wiendahl et al., 2004). Operationally, collaborative relations require B2B business modelsthese and related technical enablers, like ICT integrated solutions and collaborative relations require B2B business models collaborative relations require B2Bintegrated business solutions models and and related technical enablers, like ICT advanced hardware. related enablers, related technical technical enablers, like like ICT ICT integrated integrated solutions solutions and and advanced hardware. advanced hardware. advanced Thus, thehardware. objective of this paper is to investigate the Thus, the objective of this paper is to investigate the capability ofobjective product-services B2B (Business-to-Business) Thus, the of paper is Thus, the of this this in is to to investigate investigate the the capability ofobjective product-services inpaper B2B (Business-to-Business) applications of contributingin to (Business-to-Business) increase companies capability of product-services B2B capability of product-services in B2B (Business-to-Business) applications of contributing to increase companies manufacturing robustness, and applications contributing to increase companies applications ofsystems contributing to towards increase internal companies manufacturing of systems robustness, towards internal and external disturbances in highly dynamic environments. The manufacturing systems robustness, towards internal and manufacturing systems robustness, towards internal The and external disturbances in highly dynamic environments. paper is focused on the description and analysis of productexternal disturbances in highly dynamic environments. The external disturbances in description highly dynamic environments. The paper is focused on the and analysis of productservice strongly grounded on technologies paper focused on and of paper is isbusiness focused models, on the the description description and analysis analysis of productproductservice business models, strongly grounded on technologies in their delivery/fruition. In fact, this work is included in the service business models, strongly grounded on technologies service models, In strongly grounded technologies in their business delivery/fruition. fact, this work ison included in the EU project RobustPlaNet, whose main scope is developing in their delivery/fruition. In fact, this work is included in in their delivery/fruition. fact, this work is included in the the EU project RobustPlaNet,Inwhose main scope is developing innovative methodologies, tools and business approaches for EU project RobustPlaNet, whose main scope is developing EU project RobustPlaNet, whose main scope is developing innovative methodologies, tools and business approaches for collaborative and robust production system approaches and networks, innovative methodologies, tools and business for innovative methodologies, tools and business approaches for collaborative and robust production system and networks, able technology-based product-services with collaborative robust system collaborative and robust production production system and and networks, networks, able to to provide provideand technology-based product-services with high high service levels global environments. The able to product-services with able to provide provide technology-based product-services with high high service levels in intechnology-based global and and unpredictable unpredictable environments. The project investigates this topic in the context of three industrial service levels in global and unpredictable environments. The service investigates levels in global and unpredictable The project this topic in the contextenvironments. of three industrial areas, i.e. automotive, aerospace and industrial automation. project investigates this topic in the context of three industrial projecti.e. investigates this aerospace topic in theand context of three industrial areas, automotive, industrial automation. Ad-hoc designed questionnaire areand usedindustrial to gather automation. information areas, automotive, aerospace areas, i.e. i.e. automotive, aerospace Ad-hoc designed questionnaire areand usedindustrial to gather automation. information from industrial partners and define product-services for the Ad-hoc designed questionnaire are used to gather Ad-hoc designedpartners questionnaire are used to gather information information from industrial and define product-services for the different application domains. In this paper, one for of the from industrial partners and define product-services from industrial partners and define product-services the different application domains. In this paper, one for of the product-service business model proposed in RobustPlaNet is different application domains. In this paper, one of the different application domains. In this paper, one of the product-service business model proposed in RobustPlaNet is analyzed in detail. It is conducted in the field of equipment product-service business model proposed in RobustPlaNet is product-service business model proposed RobustPlaNet is analyzed in detail. It is conducted in the in field of equipment reliability for enhancing shop floors robustness. Hence, in analyzed in detail. It is conducted in the field of equipment analyzed It is conducted in the field of equipment reliabilityinfordetail. enhancing shop floors robustness. Hence, in Section 2 we the shop motivation leads to identify reliability for enhancing floors robustness. Hence, in reliability for discuss enhancing floorswhich robustness. Hence, in Section 2 we discuss the shop motivation which leads to identify product-services as a method for increasing the degree of Section 2 we discuss the motivation which leads to identify Section 2 we discuss motivation which leads identify product-services as a the method for increasing the to degree of robustness of manufacturing This paves way of to product-services as for the degree product-services as aa method methodsystems. for increasing increasing the the degree robustness of manufacturing systems. This paves the way of to robustness of manufacturing systems. This paves the way robustness of manufacturing systems. This paves the way to to
2405-8963 © IFAC (International Federation of Automatic Control) Copyright © 2016, 2016 IFAC 53 Hosting by Elsevier Ltd. All rights reserved. Copyright 2016 responsibility IFAC 53 Control. Peer review©under of International Federation of Automatic Copyright © 53 10.1016/j.ifacol.2016.07.549 Copyright © 2016 2016 IFAC IFAC 53
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the description of the formalized framework under which the case study is presented. The related detailed discussion is illustrated in Section 3 and is followed by the selected product-service description and analysis. Section 5 points out the main conclusions and draws possible future work paths.
react to the changes. In order to be effective, it must fit the features of the dynamic environment. In fact, the capability of fast reacting to changes must be embedded in the manufacturing system design, equipped by suitable ICT systems for information sharing with the selected network partners. Finally, the robust-oriented solution implementation must be justified by higher benefits (deducted all costs) compared to the status-quo situation.
2. ROBUSTNESS AND PRODUCT-SERVICE 2.1 Robustness in manufacturing systems
2.2 Industrial product-services as robustness enablers
A manufacturing system is considered robust if it is able to reduce the output variability with respect to the desired target performance when the system is subject to a given set of disturbances. Thus, robustness is defined as the ability of a system to provide the desired output performance at the desired time, in presence of internal and external disturbances. In the RobustPlaNet project is investigated the influence of supply chains on manufacturing system robustness and vice-versa. Here the focus is exactly on the first link. Indeed, manufacturing systems are exposed to a wide set of disturbances. These disturbances reflect context uncertainty and are unexpected and unwanted, since they act negatively on the manufacturing system and on the whole supply chain performances. For this reason, their impacts must be taken under control (Stricker and Lanza, 2014). In order to achieve this goal, it is needed to act on the causes of disturbances, which can be either internal or external.
Industrial Product-Services are characterized by an integrated and mutually determined planning, development, provision and use of product and service shares including its immanent software components in Business-to-Business applications and represents a knowledge-intensive socio-technical system (Meier et al., 2010b). The integration of technology-based services into product offering allows for the implementation of robust-oriented solutions (e.g. reconfigurable equipment) in the most efficient way, taking advantages of capabilities and resources located at plant level. Practically, it is implemented by the establishment of collaborations among stakeholders with long-term perspectives. The co-operative relation permits to study the best allocation of the activities and tasks related to the service, according to the capabilities and resources of the single supply chain stakeholders. Within a network, at minimum, product-service provider and product-service receiver work together for achieving the maximum value (Meier et al., 2010b) and thus a win-win situation. For this reason, industrial product-services can be considered as multi-agent systems (Meier et al., 2010c) in which the value is mostly co-created (Rese et al., 2012). This means that how the features and the dynamics of the interactions among stakeholders are designed and delivered – so the underlying business model(s) – determine the productservice success in achieving competitiveness and robustness. In fact, utility is a well-known goal, which reflects the ability of a company business model of generating added value – see (Tukker, 2004) for an extend analysis in product-service context –, while the robustness is embodied in the quality of the business model design and delivery, in the selected supporting technologies and in the tasks/risks distribution among supply chain stakeholders. Hence, product-service characteristics reflect their suitability for enhancing robustness in manufacturing systems and competitiveness. For example, in the context of capacity selling – i.e. resultsoriented product-service (Tukker, 2004) in which a machine tool builder sells parts instead of selling machines (Baines et al., 2007; Beuren et al., 2013) – the information sharing (common feature of product-services), at various level, enables reducing information distortions and asymmetry and, thus, the associated disturbances. In fact, it permits the service receiver to operate with certain capacity flexibility (improvement of robustness), without bearing the uncertainties of machines capital lock-out and related technology use (improvement of the utility). While, the service provider can maximize the utilization of its available capacity (improvement of the utility), applying the same service to different customers, and so maintain his demand as stable as possible (improvement of robustness).
Internal disturbance sources are originated within the company boundary and influence the behaviour of the manufacturing system, affecting processing times, availability of resources and parts quality. For example, equipment failure can be caused by uncontrolled degradation dynamics of the equipment components (internal disturbance source); acting on this earlier, either the probability or the magnitude of fault occurrence can be reduced, having in turn benefits on production system performance (e.g. throughput). On the other hand, external disturbance sources are driven by variations originated from the environment outside the company boundary, both on suppliers’ side and on customers’ side. These fluctuations regard volume and part mix to be produced, as well as related processes and materials. For example, supplier delays in component delivery (external disturbance source) cause modification of production plans and other related activities (e.g maintenance interventions). Sharing information related to components forecast, production plans and suppliers capacity helps in reducing the probability of delays and increasing stakeholder responsiveness. Regardless of the class of disturbances, their impact on system performance can be mitigated by the application of solutions that improve faster adaptability or resilience to changes. At shop floor level the system may be endowed with redundant buffers/transportation system for absorbing part routing variations and volume fluctuations. On the other hand, flexible equipment can meet variable tasks and reconfigurable production lines can adjust their layout and configuration according to variable part mix. In any case, the selected solution embodies a certain robustness level and is characterized by certain costs and benefits, such as time-to54
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2.3 Business models of industrial product-services
55
allocations implies different business models. It relies on integrated hardware and software, which embeds advance methodologies.
The first step in the development of product-service solution offering is the identification of disturbances which affect manufacturing systems and which can be mitigated by the introduction of service-based collaborative approaches. They rely on supply chain stakeholders capabilities and resources, which can be made available for partnerships establishment and implementation. The associated interaction structure, intrinsic dynamics and technical solutions definition represent the second step in product service solution offering, i.e. the related business model definition. Despite the different approaches in literature (see among others Osterwalder et al., 2005 and Meier et al., 2010a), the structure of product-service business models can be considered as composed of three main building blocks. The first one is the value proposition, which defines the bundle of product and services which are delivered from the provider, and related network, to the receiver(s). Considering the industrial application in production contexts, the final aim is to provide integrated services into the product offering which supports the achievement of target manufacturing system performance. Second, the value creation architecture, defines the related partnerships and supporting technological enablers. This implies the distribution of processes and activities placed at different hierarchical levels – planning (strategic), management (tactical) and implementation (operational) – as well as resources among the involved partners. Material flows (components, products, consumables etc.) and information flows connect the different tasks/activities/processes and determine the degree of cooperation among the partners (Rese et al., 2012). Depending on the degree of sharing (knowledge and labor) and responsibility (in decisions and results), the third building block, i.e. the turnover, is defined. Contracts formalize these factors into economic parameters and help in mitigating the uncertainties and in defining property rights (Herring and Milosevic, 2001).
Product-services investigated in RobustPlaNet project are defined on the base of the effective disturbances observed in the different case studies. In particular, the area of interest regards: (1) equipment reliability related disturbances, (2) production planning and scheduling related disturbances both in manufacturing and (3) remanufacturing contexts and production technologies related disturbances. Different product-service scenarios are defined, according to the different level of collaboration, information sharing, property rights and associated risks. For example, in area (1) maintenance services in technology provision are defined, in area (2) production capability services and in context (3) focused flexibility services are proposed. For the sake of brevity, in this paper we focus on business models for improving reliability in shop floor, smoothing related disturbances. MARKET
Planning
Management
Implementation
PRODUCTION AND TECHNOLOGIES SUPPLY CHAINS
Figure 1 Framework for business models generation
3. ROBUSTPLANET PRODUCT-SERVICES FRAMEWORK
4. CASE STUDY 4.1 Field of interest
3.1 Framework for robustness oriented product-service business models
The domain of interest is the production system of the User, which will be the receiver of the service proposition. The system is equipped with machines, transportation systems and other auxiliary elements provided by Machine Tool Builder. This system is affected by different type of disturbances, which can be either I (internal) or E (external). They influence the KPIs of the system, such as the OEE (Equipment Overall Efficiency). It embeds the percentage of system availability (i.e. uptime relative to a set time frame), the related performance (i.e. the rate of production relative to a set nominal rate, during uptime) and the quality of the output (i.e. the amount of accepted product relative to full acceptance). The context of the case study focuses on reliability related disturbances.
User’s manufacturing system related disturbances can be addressed through the allocation of key processes/activities/tasks to the different stakeholders involved in the product-service value delivery. In RobustPlaNet project, the framework presented in Fig.1 explores the connections between planning, management and implementation activities at plant level, that can contribute to increase robustness of manufacturing systems. These activities are connected through physical and information flows, which can be horizontal – i.e among elements of a same hierarchical class – or vertical – i.e among elements of different hierarchical classes. It can be seen as a map to generate robustness-oriented product-services business models and embodies RobustPlaNet collaborative approach through the entire supply chain. Different activities
• Failures (I). Manufacturing systems are usually considered unreliable, since are subject to failures. Unexpected 55
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equipment components breakage causes downtimes, which include time for maintenance team arrival, time to detect failure and time to repair it. This reduces the operational window of the system in a severer manner compared to the preventive maintenance interventions, since it’s conceivable that corrective interventions require more time and effort. Consequently, system productivity and part quality are affected. • Degradation (I). The equipment unreliability is not always manifested with its disruptive event (i.e. failure): it is often “hidden” in the degradation dynamics of constitutive components. Wear can be originated from age or operative conditions. Since the equipment state during this dynamics is worsening, both the quality of produced parts and the reliability of the machine is reduced and the probability of faults occurrence increased. Preventive or periodical maintenance acts on this latter, aiming at taking the components in a “good as new” condition; but they required time in which system equipment machines are not operational, thus reducing system throughput. • Personnel (I). Availability and competences of maintenance staff have direct impacts on the time and costs of interventions. It is reasonable to assume that low experienced and skilled personnel takes more time for fixing and repairing activities, which is positive correlated with the difficulty of the task to be accomplished. This reduces consistently system uptime and consequently productivity. • Maintenance planning (I). Maintenance operations aims at maintaining manufacturing resources “in good health”, while preventing failures or breakages (preventive or periodical maintenance), or restoring them if a failure already occurs (corrective maintenance). Treating its planning in isolation, without considering production logistics and planning, may lead to reduction of operational time without compensations in term of productivity. • Spare parts (E). Shortage of spare parts affects the possibility, the time and the costs related to the maintenance activities. For example, it can reduce or impedes the implementation of preventive maintenance in a certain planned time window or increases the time required for a corrective maintenance. On the other hand, high stocks represents anticipation of probable unnecessary needs/costs and capital lock-out.
4.2 Remote Diagnostics In RobustPlaNet project a product-service called Remote Diagnostics is defined for smoothing reliability related disturbances. Fig. 2 reports the portion of the framework identified in section 3 related to the product-service under investigation.
Figure 2 Remote Diagnostics related framework 4.2.1 Value proposition Description. Remote Diagnostics is the service proposal, integrated in Machine Tool Builder equipment provision to his customers (Users). It aims at reducing the negative impacts of the reliability disturbances related to User production facility and therefore improving Overall Equipment Efficiency (OEE). In particular, it provides monitoring and supervision services for User’s machines and related critical components: this is performed by the Machine Tool Builder. It requires remote data collection, processing, analysis, interpretation and finally information delivery to the User in an easy-to-read form. The control actions recommended by the Machine Tool Builder permit to anticipate or foresee disruptive events (like machine components breakage) thanks to the observation of the degradation dynamics of the equipment under monitoring and subsequent diagnosing of their effective health state. It allows the identification of major causes of equipment efficiency loss and provides insight to prevent or reduce future losses. This mechanism entails the involvement in both machine design, installation and use of another stakeholder, i.e. Sensor Provider. Thus, the complete product-service offering for the User is composed by machines, sensors and additional supporting tools.
The aim of the User is smoothing these disturbances, for positively impacting the robustness of the system (i.e. guaranteeing target OEE) and in turn increasing the company performance in utility terms. On the other hand, Machine Tool Builder can see profitable opportunities solving User disturbances through integrating in its sold product-service enabling technologies (e.g. hardware and software plug-ins). For achieving goals on both sides, it should find the efficient way to deal with missing or not sufficient capacities/knowledge. The underlying criteria is the exploitation of the core competences of each stakeholder and the possibility of sharing information at different levels. Based on this principle, each stakeholder spends effort only in tasks for which it can exploit economies of scale, of scope or of learning.
Lifecycle and Orientation. The Remote Diagnostics service entails an active cooperation among User, Machine Tool Builder and Sensors Provider, along the production system lifecycle. It can be applied both in green and brown field cases. In the first case the design of the production system and of the monitoring network (and the implied Machine Tool Builder-Sensors Provider collaboration) happens concurrently; while in the second case, the production system is already existing and Machine Tool Builder and Sensors Providers proposed plug-in/upgrades/modifications in the actual physical resources. Development, testing and installation activities are carried out by both suppliers in 56
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User production resources are equipped with network of sensors and related monitoring architecture. The monitoring system gathers process data, on the condition of critical machine components. Production logistics events data are collected from the plant supervisory system; threshold crossing, disruption events and additional configuration data are used for the reliability parameters estimations. These two information flows are managed according to the different origin sources (heterogeneity of data), pre-elaborated and aggregated for releasing and transmission to the Machine Tool Builder degradation model and optimizer, through dedicated communication channels. The data processing and analysis provides output thresholds that correspond to the levels of resource degradation. Equipment diagnosis, suggested action plans and procedures are hence formulated based on already fixed target performance and processed data. Before sending the report to the User, an analysis of the precision of the diagnosis is performed. If the deviation is not negligible, additional monitoring effort and other information from the production facilities may be needed. This former entails the direct involvement of Sensors Provider, which translates the monitoring requirements in technological specifications, selecting the best candidate solution for monitoring upgrading, in collaboration with the Machine Tool Builder. The selected solution is proposed to User approval. If the production resources diagnosis is sufficiently precise, the report is sent to the User and made visible through simplified GUI. The User uses these results to compare different maintenance policies, organize consequently maintenance interventions, considering the constraints imposed by the production plan.
collaborations in both cases. Remote diagnostics service is effectively exploited in production system usage phase. User and Machine Tool Builder collaborate for permitting the provision (User), elaboration (Machine Tool Builder, with the knowledge and active support of Sensors Provider) of necessary production system reliability-related information, identification and communication (Machine Tool Builder) of the suggestion of control actions useful for maintenance planning (User). Remote Diagnostics can be considered an availability-oriented service, since it enables continuative control of the equipment health states, providing the needed knowledge to the User for planning and implementing maintenance interventions which less interfere with the production. Reasoning. The rational supply chain stakeholders (User, Machine Tool Builder, Sensors Provider) will undertake product-service relations, if the related product-service configuration is beneficial for all the parties involved. In table 1 a list of the major benefits are presented for each stakeholder (User, MTB, i.e. Machine Tool Builder, SP, i.e. Sensors Provider). User MTB SP Core focus
competence
Economies of scale
Reduction uncertainty suppliers
Exploiting expertise knowledge
Continuous learning
Sharing best practices
Improving equipment reliability and related disturbances
Improving underlying models and whole solution, offering the same service to different customers
Long term partnership
Juxtaposition of production and maintenance plans
Sharing best practices
Long partnerships
Wider offering
term
of on
the the
Resolution of disturbances. The service implementation permits to address the listed disturbances in section 4.1. In fact, with the introduction of Remote Diagnostics (1) failures occurrence will be comprehensively reduced thanks to the increased awareness of the machine health state which permits to introduce control policies and higher observability on the equipment degradation (2) dynamics. The reduced uncertainty in machine states evolution impacts directly on the planning of maintenance (3). Firstly, the criteria for restoring actions is the real degradation conditions of production resources: the overcoming of defined thresholds represents the achievement of defined non-desirable equipment state. Secondly, the increased awareness of health condition allows the use of non-productive time windows for maintenance interventions, affecting as less as possible the production planning and execution. It has a positive impact also on the organization of human resources (4): the severity and the type of the maintenance actions ask for different skills and competence of the maintenance crew, which can be, on this basis, selected and planned. Likewise, the higher predictability of degradation dynamics reduces the uncertainty of spare parts procurements planning (5).
Long term partnerships
Table 1 Benefits for stakeholders 4.2.2 Value architecture Value configuration. The Remote Diagnostics value configuration is supported by the ICT and hardware architecture reported in Fig.3. 1
1
0 .9
0.87 0.8
0 .8
0.86 0 .7
0.85 0.6
0 .6
0.84 0 .5
0.83 0.4
Etot
0 .4
0.82 0 .3
0.2
0.81 ( N1NEW , h (C11,2 ) NEW )
0 .2
Average Machine Efficiency 1
21
41
61
81
101
121
141
161
181
0
0.8
( N1START, h ( C11,2 ) START)
0 .1
0
h(C11,2) 0 .0
0.5
1 .0
1.5
2 .0
2 .5
3.0
3 .5
4.0
4 .5
5.0
5 .5
6. 0
6.5
7 .0
7.5
8 .0
8.5
9 .0
9.5
N1
1 0.0
OPTIMIZER DEGRADATION MOODEL M1
DEGRADATION MODEL MK
Degradation Modeling of Critical resources
Supervisory Production logistics data Event & resource data
Physical Resources Machines, equipment etc. Configurations, capabilities
57
Monitoring System Thresholds for CBM Sensors signals
4.2.3 Turn over The derivation of contracts among the supply chain stakeholders responds to a need of reducing the risks and uncertainties associated to complex partnership mechanisms. It is directly connected to the share of responsibilities and
Figure 3 Architecture for provision of Remote Diagnostics
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property rights related to the specific supply chain stakeholder. In particular, in the Remote Diagnostics service the equipment can be either sold or given on rent to the User, while the monitoring effort is completely in Machine Tool Builder hands, supported in the measurement devices selection and installation by the Sensors Provider. This latter bears less risks, since it is only responsible of a sub-set of the service, related to the quality and the suitability of the sensors architecture, while Machine Tool Builder has the primary responsibility of service performance. Both providers collaborate along the entire life-cycle of the service. In the following we decide to focus on the main risks and parameters which can influence the contractual statement between the stakeholders which are engaged in the main relationship, i.e. Machine Tool Builder (a) and User (b). The major identified risks are: (1b) Dependence on the suppliers and reduced development of an internal expertise; (2a) Proliferation of ah-hoc monitoring solutions without exploitation of common patterns among customers (3a) Quality and aggregation level of the provided data; (4a) Integrated communication and IT infrastructure investments; (5ab) Confidentiality, informatics systems interfaces, access rights; (6ab) Trust in sensors selections and in monitoring results. On this basis, a list of related significant parameters are presented, assuming that the User periodically pays to the service provider an agreed rate of payment for a guaranteed target service level on the facilities that are included under the scope of the monitoring and diagnostics service. Some of the main parameters to be considered are: contract length/duration, actual equipment health conditions, specific diagnostics features and implementation, transparency of intentions and further modification of conditions. Therefore the service provider has responsibility to perform the remote diagnostic service to achieve and guarantee the agreed minimum service.
REFERENCES Baines, T.S., Lightfoot, H.W., Evans, S., Neely, A., Greenough, R., Peppard, J., Roy, R., Shehab, E., Braganza, A., Tiwari, A., Alcock, J.R., Angus, J.P., Bastl, M., Cousens, A., Irving, P., Johnson, M., Kingston, J., Lockett, H., Martinez, V., Michele, P., Tranfield, D., Walton I.M., Wilson, H. (2007). State-ofthe-art in product-service systems, IMechE Proc. IMechE Vol. 221 Part B: J. Engineering Manufacture. Beuren, F.H., Gomes Ferreira, M.G., Cauchik Miguel, P.A. (2013). Product-service systems: a literature review on integrated products and services. Journal of Cleaner Production, 47 (2013), 222–23. Herring, C., Milosevic, Z., (2001) Implementing B2B Contracts Using BizTalk. Proceedings of the 34th Hawaii International Conference on System Sciences, Maui, Hawaii, 3-6 January, 2001 . Meier, H., Roy, R., Seliger, G. (2010a). Industrial ProductService Systems – IPS2. CIRP Annals – Manufacturing Technology, 59 (2010), 607–627. Meier, H., Völker, O., Funke, B. (2010b). Industrial ProductService System (IPS2) – Paradigm shift by mutually determined products and services. The International Journal of Advanced Manufacturing Technology, February 2011, Volume 52, Issue 9, 1175-1191. Meier, H., Uhlmann, E., Krug, C.M., Völker, O., Geisert, C., Stelzer, C., (2010c). Dynamic IPS2 networks and operations based on software agents. CIRP Journal of Manufacturing Science and Technology, 3 (2010) 165173. Osterwalder, A., Pigneur ,Y., Tucci, C.L. (2005), Clarifying Business Models: Origins, Present, and Future of the Concept. Communication of the Association for Information Systems: Vol.16, Article 1. Available at: http:77aisel.aisnet.org/cais/vol16/iss1/1. Rese, M., Meier, H., Gesing, J., Boßlau, M. (2012) An Ontology of Business Models for Industrial ProductService Systems. Proceedings of CIRP International Conference on Industrial Product-Service Systems, Tokyo, Japan, November 8th-9th, 2012. Stricker, N., Lanza, G. (2014). The Concept of Robustness in Production Systems and its Correlation to Disturbances. Procedia CIRP, 19 (2014), 87–92. Tukker, A.(2004). Eight type of product-service system: eight ways to sustainability? Experiences from SUSPRONET. Business Strategy and the Environment, 13 (2004), 246260. Wiendahl, H.P Andersson, P., Berggre, C., Nehler, C. (2004). Manufacturing Firms and Integrated Solutions: Characteristics and Implications. European Journal of Innovation Management, 7, 1, 218-228.
5. CONCLUSIONS In this paper a technology based product-service for improving the robustness of a manufacturing system has been proposed. Remote Diagnostics addresses reliability related disturbances and identifies possible mitigation solutions based on a collaborative approach among the User, Machine Tool Builder and Sensors Provider. Related business models can be generated by the framework defined in Section 3 which permits to identify the allocation of product-service process/activities/tasks and related responsibilities. The business model describes the key benefits for the stakeholders, defines requirements for the implementation of the product-service and the expected economic advantages. This framework can be further detailed to deeper granularity level of analysis and extended to other cases in the context of manufacturing robustness improvement. 6. ACKNOWLEDGEMENTS This Research is carried out in the context of the European Union 7th Framework Programme Project No: NMP 2013609087, Shock-robust Design of Plants and their Supply Chain Networks (RobustPlaNet). The authors would like thank all industrial partners involved in this research. 58
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Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in Technology based industrial product-services supporting robustness in manufacturing systems manufacturing systems manufacturing systems manufacturing systems
Colledani M.*, Silipo L.*, Yemane A. *, Lanza G.**, Stricker N. **, Ziprani F. ***, Fogliazza G. **** Colledani M.*, Silipo L.*, Yemane A. *, Lanza G.**, Stricker N. **, Ziprani F. ***, Fogliazza G. **** Colledani Colledani M.*, M.*, Silipo Silipo L.*, L.*, Yemane Yemane A. A. *, *, Lanza Lanza G.**, G.**, Stricker Stricker N. N. **, **, Ziprani Ziprani F. F. ***, ***, Fogliazza Fogliazza G. G. **** **** *Mechanical *Mechanical Engineering Engineering Department, Department, Politecnico Politecnico di di Milano, Milano, Milano, Milano, (e-mail: Department, [email protected]). *Mechanical Engineering Politecnico *MechanicalItaly Engineering Politecnico di di Milano, Milano, Milano, Milano, Italy (e-mail: Department, [email protected]). **Karlsruher Institute für Italy Technologie, wbk Institute of Production Science, Karlsruhe, Germany (e-mail: [email protected]). (e-mail: wbk [email protected]). **Karlsruher Institute für Italy Technologie, Institute of Production Science, Karlsruhe, Germany (e-mail:[email protected]) **Karlsruher wbk **Karlsruher Institute Institute für für Technologie, Technologie, wbk Institute Institute of of Production Production Science, Science, Karlsruhe, Karlsruhe, Germany Germany (e-mail:[email protected]) *** Marposs Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) (e-mail:[email protected]) (e-mail:[email protected]) *** Marposs Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) *** Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) *** Marposs Marposs Spa, Spa, Bentivoglio (BO) ,Italy (e-mail:[email protected]) **** MCM Vigolzone (PC) ,Italy (e-mail:[email protected].) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) **** MCM Spa, Vigolzone (PC) ,Italy (e-mail:[email protected].) Abstract: Uncertainty affecting manufacturing systems or networks asks for approaches able to Abstract: Uncertainty affecting manufacturing systems or networks asks for approaches able to smoothing the the negative effects effects of disturbances disturbances coming both from from the plant plant asks and supply supply chain levels. levels. Thus, Abstract: Uncertainty affecting manufacturing systems or for able to Abstract: Uncertainty affecting manufacturing systems or networks networks asks for approaches approaches able to smoothing negative of coming both the and chain Thus, the objective of this paper is to investigate the capability of product-services business models of smoothing the negative effects of disturbances coming both from the plant and supply chain levels. Thus, smoothing the of negative effectsisoftodisturbances both from plant and supplybusiness chain levels. Thus, the objective this paper investigatecoming the capability ofthe product-services models of increasing companies robustness, towards internal internal and external external disturbances business in highly highlymodels dynamic the objective of is the of of the objective of this this paper paper is to to investigate investigate the capability capability of product-services product-services business models of increasing companies robustness, towards and disturbances in dynamic environments. This work is part of the EU project RobustPlaNet, which investigates this topic in the increasing companies robustness, towards internal and external disturbances in highly dynamic increasing companies robustness, internalRobustPlaNet, and externalwhich disturbances in highly dynamic environments. This work is part of towards the EU project investigates this topic in the context of threeThis industrial areas, i.e.the automotive, aerospace and industrial automation.this Thetopic analysis is environments. work part EU RobustPlaNet, which in environments. work is isareas, part of of EU project project RobustPlaNet, which investigates investigates in the the context of threeThis industrial i.e.the automotive, aerospace and industrial automation.this Thetopic analysis is carried out on a case study in the field of equipment reliability in order to demonstrate the formalization context of three industrial areas, i.e. automotive, aerospace and industrial automation. The analysis is context of three industrial i.e. automotive, aerospace industrial automation.the The analysis is carried out on a case study areas, in the field of equipment reliabilityand in order to demonstrate formalization of business models forstudy industrial product-services thatreliability support systems’ robustness. carried out aa case in field in to carried out on on case in the theproduct-services field of of equipment equipment in order orderrobustness. to demonstrate demonstrate the the formalization formalization of business models forstudy industrial thatreliability support systems’ of business models for product-services that support systems’ robustness. of models for industrial industrial product-services that support systems’ robustness. © business 2016, IFAC (International Federation of systems, Automatic Control) Hosting by Elsevier Ltd. All rights reserved. Keywords: Disturbances, manufacturing product-services. Keywords: Disturbances, manufacturing systems, product-services. Keywords: Disturbances, manufacturing systems, product-services. Keywords: Disturbances, manufacturing systems, product-services.
1. 1. INTRODUCTION INTRODUCTION 1. INTRODUCTION 1. INTRODUCTION In In recent recent years, years, manufacturing manufacturing industries industries are are challenging challenging with with highly unpredictable production environment, while to In recent years, manufacturing industries are with In recent years, manufacturing are challenging challenging with highly unpredictable productionindustries environment, while trying trying to be efficient and to fulfill customers’ demand with the highest highly unpredictable production environment, while trying to highly unpredictable production environment, while to be efficient and to fulfill customers’ demand with thetrying highest performance. They are part of global production networks be efficient and to fulfill customers’ demand with the highest be efficient and to fulfill customers’ demand with thenetworks highest performance. They are part of global production and, for this reason, exposed the influence of the other performance. They part global production networks performance. They are are part of ofto production networks and, for this reason, exposed toglobal the influence of the other companies’ output variability and to the fluctuations of and, for this reason, exposed to the influence of the and, for this output reason,variability exposed toand the toinfluence of the other other companies’ the fluctuations of markets. At output plant level, disruptive events, like for example companies’ variability and to the fluctuations of companies’ output variability and to the fluctuations of markets. At plant level, disruptive events, like for example machine lack materials, influence markets. At disruptive events, like for example markets. At plant plantor level, disruptive events, like the for behavior example machine failures failures orlevel, lack of of materials, influence the behavior of and modify the related machine failures of influence machine failures or or lack lacksystem of materials, materials, influence the behavior of the the manufacturing manufacturing system and may may modifythe thebehavior related performance. These deviations cause in turn lowered of the manufacturing system and may modify the related of the manufacturing system and cause may modify related performance. These deviations in turnthelowered customer related performances (e.g. service level) and performance. These deviations cause in turn lowered performance. These deviations (e.g. cause service in turnlevel) lowered customer related performances and definitely problems in achieving demand requirements. This customer related performances (e.g. service level) and customer problems related performances (e.g. service level) This and definitely in achieving demand requirements. asks for solutions for improving the ability of production definitely problems in achieving demand requirements. This definitely problems for in achieving requirements. This asks for solutions improvingdemand the ability of production system handle for these environmental while asks for solutions improving the of asks for to improving the ability abilitychanges, of production production system tosolutions handle forthese environmental changes, while maintaining the requested performance, i.e.changes, being robust. system to handle these environmental while system to handle these environmental changes, while maintaining the requested performance, i.e. being robust. Traditionally, of maintaining requested i.e. robust. maintaining the enhancing requested performance, performance, i.e. being being systems robust. Traditionally,the enhancing of manufacturing manufacturing systems responsiveness disturbances is Traditionally, enhancing of systems Traditionally, enhancing of manufacturing manufacturing systems responsiveness towards towards disturbances is addressed addressed exploiting exploiting in-house competences or by paying for outsourced solutions. responsiveness towards disturbances is addressed exploiting responsiveness towardsordisturbances is outsourced addressed exploiting in-house competences by paying for solutions. For example, solutions forpaying mitigating productionsolutions. system in-house competences or for in-house competences or by by for outsourced outsourced For example, solutions forpaying mitigating productionsolutions. system reliability disturbances rely in maintenance crew additional For example, solutions for mitigating production system For example, solutionsrely for inmitigating production system reliability disturbances maintenance crew additional training on specific interventions or in equipment overhaul reliability disturbances rely in maintenance crew additional reliabilityondisturbances rely in maintenance crew additional training specific interventions or in equipment overhaul outsourcing. Amonginterventions the other or approaches proposed in training in overhaul training on on specific specific in equipment equipment overhaul outsourcing. Amonginterventions the other or approaches proposed in literature, the adding, coupling or integrating of proposed services into outsourcing. Among the other approaches in outsourcing. Among the other approaches proposed in literature, the adding, coupling or integrating of services into products represents production system literature, the coupling integrating of into literature, the adding, adding, coupling aaor or viable integrating of services services into products offering offering represents viable production system robustness enabler. In establishment of products aa viable production system products offering represents viable the production system robustnessoffering enabler. represents In fact, fact, it it promotes promotes the establishment of new cooperative and collaborative buyer-supplier robustness enabler. In fact, it promotes the establishment of robustness enabler. In and fact, it collaborative promotes the establishment of new cooperative buyer-supplier relationships, characterized by interactions/communications new cooperative and collaborative buyer-supplier new cooperative and bycollaborative buyer-supplier relationships, characterized interactions/communications schemes which aim at smoothing the negative effects of relationships, characterized by relationships, characterized by interactions/communications interactions/communications schemes which aim at smoothing the negative effects of disturbances acting on the system under This of is schemes which aim at smoothing the negative schemes which aimonatthesmoothing the investigation. negative effects effects disturbances acting system under investigation. This of is made possible by assigning robustness related critical tasks disturbances acting on the system under investigation. This is disturbances acting on the system under investigation. is made possible by assigning robustness related criticalThis tasks and associated risksassigning to the stakeholders in the user network made possible by robustness related critical tasks made possible by assigning robustness related critical tasks and associated risks to the stakeholders in the user network which have greater expertise and can achieve the and associated to stakeholders in network and associated risks to the the stakeholders in the the user network which have the the risks greater expertise and which which canuser achieve the which have the greater expertise and which can achieve which have the greater expertise and which can achieve the the
goal of disturbance mitigation in the most efficient way. For goal of disturbance mitigation in the most efficient way. For services with shop floor robustness i.e. in which the goal mitigation in most way. goal of of disturbance disturbance mitigation in the thefocus most ––efficient efficient way. For For services with shop floor robustness focus i.e. in which the service provider is the technology provider – this means also services with shop floor robustness focus – i.e. in which the servicesprovider with shop floor robustnessprovider focus ––i.e. whichalso the service is the technology thisinmeans overcoming the product-focused technical offering basedalso on service provider is the technology provider –– this means service provider is the technology provider this means also overcoming the product-focused technical offering based on transactional towards service-centered selling overcoming product-focused offering on overcoming therelations, product-focused technical offering based based on transactional the relations, towardstechnical service-centered selling grounded long-term relationships and added transactional service-centered transactional relations, towards service-centered selling grounded on on relations, long-term towards relationships and value value selling added proposition al., these grounded long-term and grounded on(Wiendahl long-termet relationships and value value added added proposition on (Wiendahl et relationships al., 2004). 2004). Operationally, Operationally, these collaborative relations require B2B business models and proposition (Wiendahl et al., 2004). Operationally, these proposition (Wiendahl et al., 2004). Operationally, collaborative relations require B2B business modelsthese and related technical enablers, like ICT integrated solutions and collaborative relations require B2B business models collaborative relations require B2Bintegrated business solutions models and and related technical enablers, like ICT advanced hardware. related enablers, related technical technical enablers, like like ICT ICT integrated integrated solutions solutions and and advanced hardware. advanced hardware. advanced Thus, thehardware. objective of this paper is to investigate the Thus, the objective of this paper is to investigate the capability ofobjective product-services B2B (Business-to-Business) Thus, the of paper is Thus, the of this this in is to to investigate investigate the the capability ofobjective product-services inpaper B2B (Business-to-Business) applications of contributingin to (Business-to-Business) increase companies capability of product-services B2B capability of product-services in B2B (Business-to-Business) applications of contributing to increase companies manufacturing robustness, and applications contributing to increase companies applications ofsystems contributing to towards increase internal companies manufacturing of systems robustness, towards internal and external disturbances in highly dynamic environments. The manufacturing systems robustness, towards internal and manufacturing systems robustness, towards internal The and external disturbances in highly dynamic environments. paper is focused on the description and analysis of productexternal disturbances in highly dynamic environments. The external disturbances in description highly dynamic environments. The paper is focused on the and analysis of productservice strongly grounded on technologies paper focused on and of paper is isbusiness focused models, on the the description description and analysis analysis of productproductservice business models, strongly grounded on technologies in their delivery/fruition. In fact, this work is included in the service business models, strongly grounded on technologies service models, In strongly grounded technologies in their business delivery/fruition. fact, this work ison included in the EU project RobustPlaNet, whose main scope is developing in their delivery/fruition. In fact, this work is included in in their delivery/fruition. fact, this work is included in the the EU project RobustPlaNet,Inwhose main scope is developing innovative methodologies, tools and business approaches for EU project RobustPlaNet, whose main scope is developing EU project RobustPlaNet, whose main scope is developing innovative methodologies, tools and business approaches for collaborative and robust production system approaches and networks, innovative methodologies, tools and business for innovative methodologies, tools and business approaches for collaborative and robust production system and networks, able technology-based product-services with collaborative robust system collaborative and robust production production system and and networks, networks, able to to provide provideand technology-based product-services with high high service levels global environments. The able to product-services with able to provide provide technology-based product-services with high high service levels in intechnology-based global and and unpredictable unpredictable environments. The project investigates this topic in the context of three industrial service levels in global and unpredictable environments. The service investigates levels in global and unpredictable The project this topic in the contextenvironments. of three industrial areas, i.e. automotive, aerospace and industrial automation. project investigates this topic in the context of three industrial projecti.e. investigates this aerospace topic in theand context of three industrial areas, automotive, industrial automation. Ad-hoc designed questionnaire areand usedindustrial to gather automation. information areas, automotive, aerospace areas, i.e. i.e. automotive, aerospace Ad-hoc designed questionnaire areand usedindustrial to gather automation. information from industrial partners and define product-services for the Ad-hoc designed questionnaire are used to gather Ad-hoc designedpartners questionnaire are used to gather information information from industrial and define product-services for the different application domains. In this paper, one for of the from industrial partners and define product-services from industrial partners and define product-services the different application domains. In this paper, one for of the product-service business model proposed in RobustPlaNet is different application domains. In this paper, one of the different application domains. In this paper, one of the product-service business model proposed in RobustPlaNet is analyzed in detail. It is conducted in the field of equipment product-service business model proposed in RobustPlaNet is product-service business model proposed RobustPlaNet is analyzed in detail. It is conducted in the in field of equipment reliability for enhancing shop floors robustness. Hence, in analyzed in detail. It is conducted in the field of equipment analyzed It is conducted in the field of equipment reliabilityinfordetail. enhancing shop floors robustness. Hence, in Section 2 we the shop motivation leads to identify reliability for enhancing floors robustness. Hence, in reliability for discuss enhancing floorswhich robustness. Hence, in Section 2 we discuss the shop motivation which leads to identify product-services as a method for increasing the degree of Section 2 we discuss the motivation which leads to identify Section 2 we discuss motivation which leads identify product-services as a the method for increasing the to degree of robustness of manufacturing This paves way of to product-services as for the degree product-services as aa method methodsystems. for increasing increasing the the degree robustness of manufacturing systems. This paves the way of to robustness of manufacturing systems. This paves the way robustness of manufacturing systems. This paves the way to to
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the description of the formalized framework under which the case study is presented. The related detailed discussion is illustrated in Section 3 and is followed by the selected product-service description and analysis. Section 5 points out the main conclusions and draws possible future work paths.
react to the changes. In order to be effective, it must fit the features of the dynamic environment. In fact, the capability of fast reacting to changes must be embedded in the manufacturing system design, equipped by suitable ICT systems for information sharing with the selected network partners. Finally, the robust-oriented solution implementation must be justified by higher benefits (deducted all costs) compared to the status-quo situation.
2. ROBUSTNESS AND PRODUCT-SERVICE 2.1 Robustness in manufacturing systems
2.2 Industrial product-services as robustness enablers
A manufacturing system is considered robust if it is able to reduce the output variability with respect to the desired target performance when the system is subject to a given set of disturbances. Thus, robustness is defined as the ability of a system to provide the desired output performance at the desired time, in presence of internal and external disturbances. In the RobustPlaNet project is investigated the influence of supply chains on manufacturing system robustness and vice-versa. Here the focus is exactly on the first link. Indeed, manufacturing systems are exposed to a wide set of disturbances. These disturbances reflect context uncertainty and are unexpected and unwanted, since they act negatively on the manufacturing system and on the whole supply chain performances. For this reason, their impacts must be taken under control (Stricker and Lanza, 2014). In order to achieve this goal, it is needed to act on the causes of disturbances, which can be either internal or external.
Industrial Product-Services are characterized by an integrated and mutually determined planning, development, provision and use of product and service shares including its immanent software components in Business-to-Business applications and represents a knowledge-intensive socio-technical system (Meier et al., 2010b). The integration of technology-based services into product offering allows for the implementation of robust-oriented solutions (e.g. reconfigurable equipment) in the most efficient way, taking advantages of capabilities and resources located at plant level. Practically, it is implemented by the establishment of collaborations among stakeholders with long-term perspectives. The co-operative relation permits to study the best allocation of the activities and tasks related to the service, according to the capabilities and resources of the single supply chain stakeholders. Within a network, at minimum, product-service provider and product-service receiver work together for achieving the maximum value (Meier et al., 2010b) and thus a win-win situation. For this reason, industrial product-services can be considered as multi-agent systems (Meier et al., 2010c) in which the value is mostly co-created (Rese et al., 2012). This means that how the features and the dynamics of the interactions among stakeholders are designed and delivered – so the underlying business model(s) – determine the productservice success in achieving competitiveness and robustness. In fact, utility is a well-known goal, which reflects the ability of a company business model of generating added value – see (Tukker, 2004) for an extend analysis in product-service context –, while the robustness is embodied in the quality of the business model design and delivery, in the selected supporting technologies and in the tasks/risks distribution among supply chain stakeholders. Hence, product-service characteristics reflect their suitability for enhancing robustness in manufacturing systems and competitiveness. For example, in the context of capacity selling – i.e. resultsoriented product-service (Tukker, 2004) in which a machine tool builder sells parts instead of selling machines (Baines et al., 2007; Beuren et al., 2013) – the information sharing (common feature of product-services), at various level, enables reducing information distortions and asymmetry and, thus, the associated disturbances. In fact, it permits the service receiver to operate with certain capacity flexibility (improvement of robustness), without bearing the uncertainties of machines capital lock-out and related technology use (improvement of the utility). While, the service provider can maximize the utilization of its available capacity (improvement of the utility), applying the same service to different customers, and so maintain his demand as stable as possible (improvement of robustness).
Internal disturbance sources are originated within the company boundary and influence the behaviour of the manufacturing system, affecting processing times, availability of resources and parts quality. For example, equipment failure can be caused by uncontrolled degradation dynamics of the equipment components (internal disturbance source); acting on this earlier, either the probability or the magnitude of fault occurrence can be reduced, having in turn benefits on production system performance (e.g. throughput). On the other hand, external disturbance sources are driven by variations originated from the environment outside the company boundary, both on suppliers’ side and on customers’ side. These fluctuations regard volume and part mix to be produced, as well as related processes and materials. For example, supplier delays in component delivery (external disturbance source) cause modification of production plans and other related activities (e.g maintenance interventions). Sharing information related to components forecast, production plans and suppliers capacity helps in reducing the probability of delays and increasing stakeholder responsiveness. Regardless of the class of disturbances, their impact on system performance can be mitigated by the application of solutions that improve faster adaptability or resilience to changes. At shop floor level the system may be endowed with redundant buffers/transportation system for absorbing part routing variations and volume fluctuations. On the other hand, flexible equipment can meet variable tasks and reconfigurable production lines can adjust their layout and configuration according to variable part mix. In any case, the selected solution embodies a certain robustness level and is characterized by certain costs and benefits, such as time-to54
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2.3 Business models of industrial product-services
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allocations implies different business models. It relies on integrated hardware and software, which embeds advance methodologies.
The first step in the development of product-service solution offering is the identification of disturbances which affect manufacturing systems and which can be mitigated by the introduction of service-based collaborative approaches. They rely on supply chain stakeholders capabilities and resources, which can be made available for partnerships establishment and implementation. The associated interaction structure, intrinsic dynamics and technical solutions definition represent the second step in product service solution offering, i.e. the related business model definition. Despite the different approaches in literature (see among others Osterwalder et al., 2005 and Meier et al., 2010a), the structure of product-service business models can be considered as composed of three main building blocks. The first one is the value proposition, which defines the bundle of product and services which are delivered from the provider, and related network, to the receiver(s). Considering the industrial application in production contexts, the final aim is to provide integrated services into the product offering which supports the achievement of target manufacturing system performance. Second, the value creation architecture, defines the related partnerships and supporting technological enablers. This implies the distribution of processes and activities placed at different hierarchical levels – planning (strategic), management (tactical) and implementation (operational) – as well as resources among the involved partners. Material flows (components, products, consumables etc.) and information flows connect the different tasks/activities/processes and determine the degree of cooperation among the partners (Rese et al., 2012). Depending on the degree of sharing (knowledge and labor) and responsibility (in decisions and results), the third building block, i.e. the turnover, is defined. Contracts formalize these factors into economic parameters and help in mitigating the uncertainties and in defining property rights (Herring and Milosevic, 2001).
Product-services investigated in RobustPlaNet project are defined on the base of the effective disturbances observed in the different case studies. In particular, the area of interest regards: (1) equipment reliability related disturbances, (2) production planning and scheduling related disturbances both in manufacturing and (3) remanufacturing contexts and production technologies related disturbances. Different product-service scenarios are defined, according to the different level of collaboration, information sharing, property rights and associated risks. For example, in area (1) maintenance services in technology provision are defined, in area (2) production capability services and in context (3) focused flexibility services are proposed. For the sake of brevity, in this paper we focus on business models for improving reliability in shop floor, smoothing related disturbances. MARKET
Planning
Management
Implementation
PRODUCTION AND TECHNOLOGIES SUPPLY CHAINS
Figure 1 Framework for business models generation
3. ROBUSTPLANET PRODUCT-SERVICES FRAMEWORK
4. CASE STUDY 4.1 Field of interest
3.1 Framework for robustness oriented product-service business models
The domain of interest is the production system of the User, which will be the receiver of the service proposition. The system is equipped with machines, transportation systems and other auxiliary elements provided by Machine Tool Builder. This system is affected by different type of disturbances, which can be either I (internal) or E (external). They influence the KPIs of the system, such as the OEE (Equipment Overall Efficiency). It embeds the percentage of system availability (i.e. uptime relative to a set time frame), the related performance (i.e. the rate of production relative to a set nominal rate, during uptime) and the quality of the output (i.e. the amount of accepted product relative to full acceptance). The context of the case study focuses on reliability related disturbances.
User’s manufacturing system related disturbances can be addressed through the allocation of key processes/activities/tasks to the different stakeholders involved in the product-service value delivery. In RobustPlaNet project, the framework presented in Fig.1 explores the connections between planning, management and implementation activities at plant level, that can contribute to increase robustness of manufacturing systems. These activities are connected through physical and information flows, which can be horizontal – i.e among elements of a same hierarchical class – or vertical – i.e among elements of different hierarchical classes. It can be seen as a map to generate robustness-oriented product-services business models and embodies RobustPlaNet collaborative approach through the entire supply chain. Different activities
• Failures (I). Manufacturing systems are usually considered unreliable, since are subject to failures. Unexpected 55
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equipment components breakage causes downtimes, which include time for maintenance team arrival, time to detect failure and time to repair it. This reduces the operational window of the system in a severer manner compared to the preventive maintenance interventions, since it’s conceivable that corrective interventions require more time and effort. Consequently, system productivity and part quality are affected. • Degradation (I). The equipment unreliability is not always manifested with its disruptive event (i.e. failure): it is often “hidden” in the degradation dynamics of constitutive components. Wear can be originated from age or operative conditions. Since the equipment state during this dynamics is worsening, both the quality of produced parts and the reliability of the machine is reduced and the probability of faults occurrence increased. Preventive or periodical maintenance acts on this latter, aiming at taking the components in a “good as new” condition; but they required time in which system equipment machines are not operational, thus reducing system throughput. • Personnel (I). Availability and competences of maintenance staff have direct impacts on the time and costs of interventions. It is reasonable to assume that low experienced and skilled personnel takes more time for fixing and repairing activities, which is positive correlated with the difficulty of the task to be accomplished. This reduces consistently system uptime and consequently productivity. • Maintenance planning (I). Maintenance operations aims at maintaining manufacturing resources “in good health”, while preventing failures or breakages (preventive or periodical maintenance), or restoring them if a failure already occurs (corrective maintenance). Treating its planning in isolation, without considering production logistics and planning, may lead to reduction of operational time without compensations in term of productivity. • Spare parts (E). Shortage of spare parts affects the possibility, the time and the costs related to the maintenance activities. For example, it can reduce or impedes the implementation of preventive maintenance in a certain planned time window or increases the time required for a corrective maintenance. On the other hand, high stocks represents anticipation of probable unnecessary needs/costs and capital lock-out.
4.2 Remote Diagnostics In RobustPlaNet project a product-service called Remote Diagnostics is defined for smoothing reliability related disturbances. Fig. 2 reports the portion of the framework identified in section 3 related to the product-service under investigation.
Figure 2 Remote Diagnostics related framework 4.2.1 Value proposition Description. Remote Diagnostics is the service proposal, integrated in Machine Tool Builder equipment provision to his customers (Users). It aims at reducing the negative impacts of the reliability disturbances related to User production facility and therefore improving Overall Equipment Efficiency (OEE). In particular, it provides monitoring and supervision services for User’s machines and related critical components: this is performed by the Machine Tool Builder. It requires remote data collection, processing, analysis, interpretation and finally information delivery to the User in an easy-to-read form. The control actions recommended by the Machine Tool Builder permit to anticipate or foresee disruptive events (like machine components breakage) thanks to the observation of the degradation dynamics of the equipment under monitoring and subsequent diagnosing of their effective health state. It allows the identification of major causes of equipment efficiency loss and provides insight to prevent or reduce future losses. This mechanism entails the involvement in both machine design, installation and use of another stakeholder, i.e. Sensor Provider. Thus, the complete product-service offering for the User is composed by machines, sensors and additional supporting tools.
The aim of the User is smoothing these disturbances, for positively impacting the robustness of the system (i.e. guaranteeing target OEE) and in turn increasing the company performance in utility terms. On the other hand, Machine Tool Builder can see profitable opportunities solving User disturbances through integrating in its sold product-service enabling technologies (e.g. hardware and software plug-ins). For achieving goals on both sides, it should find the efficient way to deal with missing or not sufficient capacities/knowledge. The underlying criteria is the exploitation of the core competences of each stakeholder and the possibility of sharing information at different levels. Based on this principle, each stakeholder spends effort only in tasks for which it can exploit economies of scale, of scope or of learning.
Lifecycle and Orientation. The Remote Diagnostics service entails an active cooperation among User, Machine Tool Builder and Sensors Provider, along the production system lifecycle. It can be applied both in green and brown field cases. In the first case the design of the production system and of the monitoring network (and the implied Machine Tool Builder-Sensors Provider collaboration) happens concurrently; while in the second case, the production system is already existing and Machine Tool Builder and Sensors Providers proposed plug-in/upgrades/modifications in the actual physical resources. Development, testing and installation activities are carried out by both suppliers in 56
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User production resources are equipped with network of sensors and related monitoring architecture. The monitoring system gathers process data, on the condition of critical machine components. Production logistics events data are collected from the plant supervisory system; threshold crossing, disruption events and additional configuration data are used for the reliability parameters estimations. These two information flows are managed according to the different origin sources (heterogeneity of data), pre-elaborated and aggregated for releasing and transmission to the Machine Tool Builder degradation model and optimizer, through dedicated communication channels. The data processing and analysis provides output thresholds that correspond to the levels of resource degradation. Equipment diagnosis, suggested action plans and procedures are hence formulated based on already fixed target performance and processed data. Before sending the report to the User, an analysis of the precision of the diagnosis is performed. If the deviation is not negligible, additional monitoring effort and other information from the production facilities may be needed. This former entails the direct involvement of Sensors Provider, which translates the monitoring requirements in technological specifications, selecting the best candidate solution for monitoring upgrading, in collaboration with the Machine Tool Builder. The selected solution is proposed to User approval. If the production resources diagnosis is sufficiently precise, the report is sent to the User and made visible through simplified GUI. The User uses these results to compare different maintenance policies, organize consequently maintenance interventions, considering the constraints imposed by the production plan.
collaborations in both cases. Remote diagnostics service is effectively exploited in production system usage phase. User and Machine Tool Builder collaborate for permitting the provision (User), elaboration (Machine Tool Builder, with the knowledge and active support of Sensors Provider) of necessary production system reliability-related information, identification and communication (Machine Tool Builder) of the suggestion of control actions useful for maintenance planning (User). Remote Diagnostics can be considered an availability-oriented service, since it enables continuative control of the equipment health states, providing the needed knowledge to the User for planning and implementing maintenance interventions which less interfere with the production. Reasoning. The rational supply chain stakeholders (User, Machine Tool Builder, Sensors Provider) will undertake product-service relations, if the related product-service configuration is beneficial for all the parties involved. In table 1 a list of the major benefits are presented for each stakeholder (User, MTB, i.e. Machine Tool Builder, SP, i.e. Sensors Provider). User MTB SP Core focus
competence
Economies of scale
Reduction uncertainty suppliers
Exploiting expertise knowledge
Continuous learning
Sharing best practices
Improving equipment reliability and related disturbances
Improving underlying models and whole solution, offering the same service to different customers
Long term partnership
Juxtaposition of production and maintenance plans
Sharing best practices
Long partnerships
Wider offering
term
of on
the the
Resolution of disturbances. The service implementation permits to address the listed disturbances in section 4.1. In fact, with the introduction of Remote Diagnostics (1) failures occurrence will be comprehensively reduced thanks to the increased awareness of the machine health state which permits to introduce control policies and higher observability on the equipment degradation (2) dynamics. The reduced uncertainty in machine states evolution impacts directly on the planning of maintenance (3). Firstly, the criteria for restoring actions is the real degradation conditions of production resources: the overcoming of defined thresholds represents the achievement of defined non-desirable equipment state. Secondly, the increased awareness of health condition allows the use of non-productive time windows for maintenance interventions, affecting as less as possible the production planning and execution. It has a positive impact also on the organization of human resources (4): the severity and the type of the maintenance actions ask for different skills and competence of the maintenance crew, which can be, on this basis, selected and planned. Likewise, the higher predictability of degradation dynamics reduces the uncertainty of spare parts procurements planning (5).
Long term partnerships
Table 1 Benefits for stakeholders 4.2.2 Value architecture Value configuration. The Remote Diagnostics value configuration is supported by the ICT and hardware architecture reported in Fig.3. 1
1
0 .9
0.87 0.8
0 .8
0.86 0 .7
0.85 0.6
0 .6
0.84 0 .5
0.83 0.4
Etot
0 .4
0.82 0 .3
0.2
0.81 ( N1NEW , h (C11,2 ) NEW )
0 .2
Average Machine Efficiency 1
21
41
61
81
101
121
141
161
181
0
0.8
( N1START, h ( C11,2 ) START)
0 .1
0
h(C11,2) 0 .0
0.5
1 .0
1.5
2 .0
2 .5
3.0
3 .5
4.0
4 .5
5.0
5 .5
6. 0
6.5
7 .0
7.5
8 .0
8.5
9 .0
9.5
N1
1 0.0
OPTIMIZER DEGRADATION MOODEL M1
DEGRADATION MODEL MK
Degradation Modeling of Critical resources
Supervisory Production logistics data Event & resource data
Physical Resources Machines, equipment etc. Configurations, capabilities
57
Monitoring System Thresholds for CBM Sensors signals
4.2.3 Turn over The derivation of contracts among the supply chain stakeholders responds to a need of reducing the risks and uncertainties associated to complex partnership mechanisms. It is directly connected to the share of responsibilities and
Figure 3 Architecture for provision of Remote Diagnostics
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property rights related to the specific supply chain stakeholder. In particular, in the Remote Diagnostics service the equipment can be either sold or given on rent to the User, while the monitoring effort is completely in Machine Tool Builder hands, supported in the measurement devices selection and installation by the Sensors Provider. This latter bears less risks, since it is only responsible of a sub-set of the service, related to the quality and the suitability of the sensors architecture, while Machine Tool Builder has the primary responsibility of service performance. Both providers collaborate along the entire life-cycle of the service. In the following we decide to focus on the main risks and parameters which can influence the contractual statement between the stakeholders which are engaged in the main relationship, i.e. Machine Tool Builder (a) and User (b). The major identified risks are: (1b) Dependence on the suppliers and reduced development of an internal expertise; (2a) Proliferation of ah-hoc monitoring solutions without exploitation of common patterns among customers (3a) Quality and aggregation level of the provided data; (4a) Integrated communication and IT infrastructure investments; (5ab) Confidentiality, informatics systems interfaces, access rights; (6ab) Trust in sensors selections and in monitoring results. On this basis, a list of related significant parameters are presented, assuming that the User periodically pays to the service provider an agreed rate of payment for a guaranteed target service level on the facilities that are included under the scope of the monitoring and diagnostics service. Some of the main parameters to be considered are: contract length/duration, actual equipment health conditions, specific diagnostics features and implementation, transparency of intentions and further modification of conditions. Therefore the service provider has responsibility to perform the remote diagnostic service to achieve and guarantee the agreed minimum service.
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5. CONCLUSIONS In this paper a technology based product-service for improving the robustness of a manufacturing system has been proposed. Remote Diagnostics addresses reliability related disturbances and identifies possible mitigation solutions based on a collaborative approach among the User, Machine Tool Builder and Sensors Provider. Related business models can be generated by the framework defined in Section 3 which permits to identify the allocation of product-service process/activities/tasks and related responsibilities. The business model describes the key benefits for the stakeholders, defines requirements for the implementation of the product-service and the expected economic advantages. This framework can be further detailed to deeper granularity level of analysis and extended to other cases in the context of manufacturing robustness improvement. 6. ACKNOWLEDGEMENTS This Research is carried out in the context of the European Union 7th Framework Programme Project No: NMP 2013609087, Shock-robust Design of Plants and their Supply Chain Networks (RobustPlaNet). The authors would like thank all industrial partners involved in this research. 58