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Due to shorter product life cycles and the increasing internationalization of competition, companies are confronted with increasing complexity in supply chain management. Event-based systems are used to reduce this complexity and to support employees' decisions. Such event-based systems include tracking & tracing systems on the one hand and supply chain event management on the other. Tracking & tracing systems only have the functions of monitoring and reporting deviations, whereas supply chain event management systems also function as simulation, control, and measurement. The central element connecting these systems is the event. It forms the information basis for mapping and matching the process sequences in the event-based systems. The events received from the supply chain partner form the basis for all downstream steps and must, therefore, contain the correct data. Since the data quality is insufficient in numerous use cases and incorrect data in supply chain event management is not considered in the literature, this paper deals with the description and typification of incorrect event data. Based on a systematic literature review, typical sources of errors in the acquisition and transmission of event data are discussed. The results are then applied to event data so that a typification of incorrect event types is possible. The results help to significantly improve event-based systems for use in practice by preventing incorrect reactions through the detection of incorrect event data.
Companies operate in an increasingly volatile environment where different developments like shorter product lifecycles, the demand for customized products and globalization increase the complexity and interconnectivity in supply chains. Current events like Brexit, the COVID-19 pandemic or the blockade of the Suez canal have caused major disruptions in supply chains. This demonstrates that many companies are insufficiently prepared for disruptions. As disruptions in supply chains are expected to occur even more frequently in the future, the need for sufficient preparation increases. Increasing resilience provides one way of dealing with disruptions. Resilience can be understood as the ability of a system to cope with disruptions and to ensure the competitiveness of a company. In particular, it enables the preparation for unexpected disruptions. The level of resilience is thereby significantly influenced by actions initiated prior to a disruption. Although companies recognize the need to increase their resilience, it is not systematically implemented. One major challenge is the multidimensionality and complexity of the resilience construct. To systematically design resilience an understanding of the components of resilience is required. However, a common understanding of constituent parts of resilience is currently lacking. This paper, therefore, proposes a general framework for structuring resilience by decomposing the multidimensional concept into its individual components. The framework contributes to an understanding of the interrelationships between the individual components and identifies resilience principles as target directions for the design of resilience. It thus sets the basis for a qualitative assessment of resilience and enables the analysis of resilience-building measures in terms of their impact on resilience. Moreover, an approach for applying the framework to different contexts is presented and then used to detail the framework for the context of procurement.
The environment in which companies operate is increasingly volatile and complex. This results in an increased exposure to disruptions. Past disruptions have especially affected procurement. Thus, companies need to prepare for disruptions. The preparedness for disruptions in the context of procurement is significantly influenced by the design of the procurement strategy. However, a high number of purchased articles and a variety of influencing factors lead to high complexity in procurement. The systematic design of the procurement strategy should therefore take into account the criticality of the purchased articles. This enables to focus on the purchased articles that have a high impact on the disruption preparedness. Existing approaches regarding the design of the procurement strategy in uncertain environments either lack practical applicability and objective evaluation or focus on the criticality of raw materials rather than of purchased articles. Therefore, a data-based approach for the systematic design of the procurement strategy in the context of the Internet of Production has been proposed. One central aspect of this approach is the identification of success-critical purchased articles. Thus, this paper proposes a framework for characterizing purchased articles regarding supply risks by combining two systematic analyses. First, a systematic literature review is performed to answer the question of what factors can be used to describe the supply risks of purchased articles. The results are analyzed regarding sources and impacts of risks and thus contribute to a structured characterization of supply risks. Second, existing criticality assessment approaches for raw materials are analyzed to identify categories and indicators that describe purchased articles. The results of both reviews provide the basis for linking product characteristics with supply risks and assessing product criticality which will be integrated into an app prototype.
Task-Specific Decision Support Systems in Multi-Level Production Systems based on the digital shadow
(2019)
Due to the increasing spread of Information and Communication Technologies (ICT) suitable for shop floors, the production environment can more easily be digitally connected to the various decision making levels of a production system. This connectivity as well as an increasing availability of high-resolution feedback data, can be used for decision support for all levels of the company and supply chain. To enable data driven decision support, different data sources were structured and linked. The data was combined in task-specific digital shadows, selecting clustering and aggregation rules to gain information. Visual interfaces for task-specific decision support systems (DSS) were developed and evaluated positively by domain experts. The complexity of decision making on different levels was successfully reduced as an effect of the processed amounts of data. These interfaces support decision making, but can additionally be improved if DSS are extended with smart agents as proposed in the Internet of Production.
In the food industry, a very large potential of data ecosystems is seen, in which data is understood, exchanged and monetized as an economic asset. However, despite the enormous economic potential, companies in the food industry continue to rely on traditional, product-oriented business models. Existing data in the value chain of industrial food production, e.g., in harvesting, logistics, and production processes, is primarily used for internal optimization and is not monetized in the form of data products. Especially the pricing of data products is a key challenge for data-based business models due to their special characteristics compared to conventional, analog offerings and multiple design options. The goal of this work is therefore to solve this issue by developing a framework that allows the identification of pricing models for data products in the industrial food production. For this purpose, following the procedure of typology formation, essential design parameters and the respective characteristics are derived. Furthermore, three types for pricing models of data products are shown. The results will serve not only stakeholders in the food industry but also manufacturing companies in general as input for an orientation of their databased business models.
Recent developments have demonstrated the challenges and impacts of disruptions in supply chains. Current disruptions especially affected procurement and have indicated a lack of resilience. Resilience aims at being prepared, decreasing the impact, and enabling fast reactions and adaption in case of disruptions. The systematic design of resilience in procurement is significantly influenced by proactive and strategic actions before disruptions occur. Thus, the procurement strategy plays a major role when increasing resilience. The procurement strategy is influenced by various factors. Thus, a data-based approach for its systematic design is required. Based on the vision of the Internet of Production (IoP), this paper presents a data-based approach for designing procurement strategies. The IoP is a framework that enables cross-domain collaboration by providing semantically adequate and contextual data from production, development, and usage in real-time at an appropriate granularity. The paper aims at analyzing the state of the art regarding the design of procurement strategy in uncertain environments and the identification of success-critical purchased articles. Based on this, an approach is developed that is structured along the action research cycle and uses CRISP-DM to further detail the different steps. Through the use of these frameworks, both practical applicability and objective evaluation are ensured. The proposed approach thus allows the systematic evaluation of purchased articles regarding supply risks and lies the foundation for the adaption of the procurement strategy. The resulting approach is the foundation for future practical application of different use cases. As one central use case for the presented approach, the paper introduces the textile industry and its supply chains.
For most industries, Artificial Intelligence (AI) holds substantial potentials. In the last decades, the extent of data created worldwide is exponentially increasing, and this trend is likely to continue. However, despite the prospects, many companies are not yet using AI at all or not generating added value. Often, an AI project does not exceed its pilot phase and is not scaled up. The problems to create value from AI applications in companies are manifold, especially since AI itself is diverse and there is no ‘one size fits all’ approach. One often stated obstacle, why many AI projects fail, is a missing AI strategy. This leads to isolated solutions, which do not consider synergies, scalability and seldom result in added value for the company. To create a company-specific AI strategy with a top-down approach, a generic but holistic framework is needed. This paper proposes a strategic AI procedure model that enables companies to define a specific AI strategy for successfully implementing AI solutions. In addition, we demonstrate in this paper how we apply the introduced strategic AI procedure model on an AI-based flexible monitoring and regulation system for power distribution grid operators in the context of an ongoing research project.
In the age of digitalization, manufacturing companies are under increased pressure to change due to product complexity, growing customer requirements and digital business models. The increasing digitization of processes and products is opening up numerous opportunities for mechanical engineering companies to exploit the resulting potential for value creation. Subscription business is a new form of business model in the mechanical engineering industry, which aims to continuously increase customer benefit to align the interests of both companies and customers. Characterized by a permanent data exchange, databased learning about customer behavior, and the transfer into continuous innovations to increase customer value, subscription business helps to make Industry 4.0 profitable. The fact that machines and plants are connected to the internet and exchange large amounts of data results in critical information security risks. In addition, the loss of knowledge and control, data misuse and espionage, as well as the manipulation of transaction or production data in the context of subscription transactions are particularly high risks. Complementary to direct and obvious consequences such as loss of production, the attacks are increasingly shifting to non-transparent and creeping impairments of production or product quality, which are only apparent at a late stage, or the influencing of payment flows. A transparent presentation of possible risks and their scope, as well as their interrelationships, does not exist. This paper shows a research approach in which the structure of subscription models and their different manifestations based on their risks and vulnerabilities are characterized. This allows suitable cyber security measures to be taken at an early stage. From this basis, companies can secure existing or planned subscription business models and thus strengthen the trust of business partners and customers.
Industry 4.0 and Smart Maintenance represent a great opportunity to make manufacturing and maintenance more effective, safer, and reliable. However, they also represent massive change and corresponding challenges for industrial companies, as many different options and starting points have to be weighed and the individual right paths for achieving Smart Maintenance need to be identified. In our paper, we describe our approach to evaluating maintenance organizations in a case study for the oil and gas industry, developing a shared vision for the future, and deriving economical and effective measures. We will demonstrate our approach, by showcasing a specific example from the oil and gas industry, where a need for action on HSE-relevant critical flanges in the company's piping systems was identified. We describe the steps, that were taken to identify the need for action, the specifications of the project and the criticality analysis of the piping system. This resulted in the derivation of a digitalization measure for critical flanges, which was first commercially analyzed and then the flanges were equipped with a continuous monitoring solution. Finally, a conclusion is drawn on the performed procedure and the achieved improvements.
Subscription business transforms traditional business models of machinery and plant engineering. Many manufacturing companies struggle to pull out the potential created by Industry 4.0 and make it economically usable. In addition to technological innovations, it is necessary to transform the business model. This leads to a shift from ownership-based and product-centric business models to outcome-based business models, which focus on the customer's value and thus realize a unique value proposition and competitive advantage – the outcome economy. Based on a case study analysis among manufacturing companies, this paper provides further clarification including a definition and constituent characteristics of subscription business models in machinery and plant engineering.
The efficient dealing with the dynamic environment of production industries is one of the most challenging tasks of Supply Chain Management in high-wage countries. Relevant and current information are still not used sufficiently, to handle the influence of the dynamic environment on intra- and inter-company order processing adequately. Among other things, the problem is caused by missing or delayed feedback of relevant data. As a consequence of that, planning results differ from the actual situation of production. High Resolution Supply Chain Management describes an approach aiming on high information transparency in supply chains in combination with decentralized, self-optimizing control loops for Production Planning and Control. The final objective is to enable manufacturing companies to produce efficiently and to be able to react to order-variations at any time, requiring process structures to be most flexible.
Electricity generated by wind turbines (WT) is a mainstay of the transition to renewable energy. In order to economically utilize WT is, operating and maintenance costs, which account for 25% of total electricity generation costs in onshore WT’s, are a focus of cost reduction activities. Implementing a data-driven prescriptive maintenance approach is one way to achieve this. So far, various approaches for prescriptive maintenance for onshore WT’s have been suggested.
However, little research has addressed the practical implementation considering sociotechnical aspects. The aim of this paper is therefore to identify success factors for the successful implementation of such a maintenance strategy with clear and holistic guidance on how existing knowledge on prescriptive maintenance from science can be transferred to business practice. These recommendations are developed through case study research and classified in the four structural areas of Acatech’s Industry 4.0 Maturity Index: Resources, Information Systems, Organizational Structure and Culture.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.
With big data-technologies on the rise, new fields of application appear in terms of analyzing data to find new relationships for improving process under-standing and stability. Manufacturing companies oftentimes cope with a high number of deviations but struggle to solve them with less effort. The research project BigPro aims to develop a methodology for implementing counter measures to disturbances and deviations derived from big data. This paper proposes a methodology for practitioners to assess predefined counter measures. It consists of a morphology with several criterions that can have a certain characteristic. Those are then combined with a weighting factor to assess the feasibility of the counter measure for prioritization.
Failure management in the production area has been intensely analyzed in the research community. Although several efficient methods have been developed and partially successfully implemented, producing companies still face a lot of challenges. The resulting main question is how manufacturers can be assisted by a sustainable approach enabling them to proactively detect and prevent failures before they occur. A high-resolution production system based on analyzed real-time data enables manufacturers to find an answer to the main question. In this context, Big Data technologies have gained importance since the critical success factor is not only to collect real-time data in the production but also to structure the data. Therefore, we present in this paper the implementation of Big Data technologies in the production area using the example of an actual research project. After the literature review, we describe a Big Data based approach to prevent failures in the production area. This approach mainly includes a real-time capable platform including complex event processing algorithms to define appropriate improvement measures.
In Germany’s transition to a more sustainable industrial landscape, electricity generated by wind turbines (WT) remains a mainstay of the energy mix. Operating and maintenance costs, which account for roughly 25% of electricity generation costs in onshore WTs make improvements of maintenance activities a key lever in the economic operation of WTs. Prescriptive maintenance is a possible approach for improved maintenance activities. It is a concept where asset condition data is used to recommend specific actions and has great potential for the operation of wind parks. However, especially small, but also large wind park operators, and maintenance service providers often struggle with the implementation of such a new maintenance approach. As a part of the research project ReStroK, a learning game has been developed to support the training and familiarization of maintenance technicians with the concepts and underlying principles of this maintenance approach. In this paper, the concept for the development of a learning game will be presented. Multiple scenarios for its usage and their corresponding requirements will be discussed and an overview over the game will be given.
Towards a Methodology to Determine Intersubjective Data Values in Industrial Business Activities
(2021)
This paper contributes to a valuation framework for valuing data as an intangible asset. Especially those industrial manufacturers developing and delivering holistic digital solutions are limited in calculating the true business value of data initiatives. Since the value of data is strongly dependent on the respective use case, a completely objective valuation is not possible. This complicates decision-making on the internal side regarding investments in digital transformation, and on the external side to communicate existing benefits to third parties via financial reporting. Therefore, the target is to design a valuation framework that allows industrial manufacturers to determine an intersubjective, i.e., traceable and transparent, data value. In order to develop a framework that can be applied in practice, the approach is based on industrial case study research.
Influenced by the high dynamic of the markets the optimization of supply chains gains more importance. However, analyzing different procurement strategies and the influence of various production parameters is difficult to achieve in industrial practice. Therefore, simulations of supply chains are used in order to improve the production process. The objective of this research is to evaluate different procurement strategies in a four-stage supply chain. Besides, this research aims to identify main influencing factors on the supply chain’s performance. The performance of the supply chain is measured by means of back orders (backlog). A scenario analysis of different customer demands and a Design of Experiments analysis enhance the significance of the simulation results.
A large number of product-accompanying services in the machinery and plant engineering industry is based on the cross-company exchange of data and information. By providing services, additional sales potential on the manufacturer side as well as far-reaching product and process advantages for appliers can be reached. However, the necessary cross-company exchange of information is nowadays limited due to a lack of trust in the interacting partner and the applicable existing technologies, which results in significant losses in the terms of business potential. The uncovering of this potential now seems to be made possible by the use of the Blockchain technology. Through the key factors security, immutability, transparency and decentralisation, it serves as an enabler for cross-company communication and product-accompanying services. The technological implementation of a Blockchain can take on a broad spectrum of attributes, which can lead to decisive restrictions for the execution of services. This justifies the necessity for a qualified and context-related assessment of service-types-individual specifications and the resulting requirements on the system. Within the scope of this paper, different types of product-accompanying services are identified and analysed regarding their requirements for a Blockchain-based machinery and plant connection. This can serve as a basis for a qualified and goal-oriented configuration of the Blockchain.
The digitalization of manufacturing processes is expected to lead to a growing interconnection of production sites, as well as machines, tools and work pieces. In the course of this development, new use-cases arise which have challenging requirements from a communication technology point of view. In this paper we propose a communication network architecture for Industry 4.0 applications, which combines new 5G and non-cellular wireless network technologies with existing (wired) fieldbus technologies on the shop floor. This architecture includes the possibility to use private and public mobile networks together with local networking technologies to achieve a flexible setup that addresses many different industrial use cases. It is embedded into the Industrial Internet Reference Architecture and the RAMI4.0 reference architecture. The paper shows how the advancements introduced around the new 5G mobile technology can fulfill a wide range of industry requirements and thus enable new Industry 4.0 applications. Since 5G standardization is still ongoing, the proposed architecture is in a first step mainly focusing on new advanced features in the core network, but will be developed further later.