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Institute
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
Crises are becoming more and more frequent. Whether natural disasters, economic crises, political events, or a pandemic - the right action mitigates the impact. The PAIRS project plans to minimize the surprise effect of these and to recommend appropriate actions based on data using artificial intelligence (AI). This paper conceptualizes a cascading model based on scenario technique, which acts as the basic approach in the project. The long-term discipline of scenario technique is integrated into the discipline of crisis management to enable short-term and continuous crises management in an automated manner. For this purpose, a practical crisis definition is given and interpreted as a process. Then, a cascading model is derived in which crises are continuously thought through using the scenario technique and three types of observations are classified: Incidents, disturbances, and crises. The presented model is exemplified within a non-technical application of a use case in the context of humanitarian logistics and the COVID-19 pandemic. Furthermore, first technical insights from the field of AI are given in the form of a semantic description composing a knowledge graph. In summary, a conceptual model is presented to enable situation-based crisis management with automated scenario generation by combining the two disciplines of crisis management with scenario technique.
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.
5G offers the manufacturing industry a wireless, fast and secure transmission technology with high range, low latency and the ability to connect a large number of devices. Existing transmission technologies are reaching their limits due to the increasing number of networked devices and high demands on reliability, data volume, security and latency. 5G fulfills these requirements and also combines the potential and use cases of previous transmission technologies so that unwanted isolated solutions can be merged. Use cases of transmission technologies that previously required a multitude of solutions can now be realized with a single technology. However, the general literature often refers to 5G use cases that can also be realized over cables in particular. In this paper, a literature review presents the current state of research on the various 5G application scenarios in production . Furthermore, concrete characteristics of 5G use cases are identified and assigned to the identified application scenarios. The goal is to verify the identified 5G use cases and to work out their 5G relevance in order to be able to concretely differentiate them from already existing Industrie 4.0 applications.
This research area focuses on the management systems and principles of a production system. It aims at controlling the complex interplay of heterogeneous processes in a highly dynamic environment, with special focus on individualized products in high-wage countries. The project addresses the comprehensive application of self-optimizing principles on all levels of the value chain. This implies the integration of self-optimizing control loops on cell level, with those addressing the production planning and control as well as supply chain and quality management aspects. A specific focus is on the consideration of human decisions during the production process. To establish socio-technical control loops, it is necessary to understand how human decisions are made in diffuse working processes as well as how cognitive and affective abilities form the human factor within production processes.
Forecasting-based skills management, which is oriented to the respective corporate goals, is gaining enormous importance as a central management tool. The aim is to predict future skills requirements and match them with existing interorganizational skills. Companies are required to anticipate changes in markets, industries, and technologies at an early stage as well as to identify changes in job profiles within an occupational profile by tapping into and evaluating various data sources. Based on these findings, they can then make informed decisions regarding skill gaps, for example, to implement targeted further training measures. Forecasting-based skills management offers the opportunity to optimally qualify employees for constantly changing tasks. At the same time, however, the targeted development of such skills requires a high level of time, financial and personnel resources, which small and medium-sized enterprises (SMEs) generally do not have at their disposal. In addition, many SMEs are not yet aware of the importance of this issue. Within the framework of research and industrial projects of the Smart Work department at the FIR (Institute for Industrial Management) at the RWTH Aachen University, an AI-based skills forecasting tool will be developed. The goal of the paper is to conceptualize the future machine learning method, that is able to generate individualized skills forecasts and recommendations for SMEs. This is achieved by linking societal forecasts and sector trends with company-specific conditions and skills. In order to generate a corresponding database, the derivation system is made available to various companies (large companies and SMEs) in order to obtain as many data sets as possible. The data sets obtained via the derivation system are then used as training data sets for the machine learning method, with the help of which an automatic derivation of competencies depending on new trends is to be made possible.
For developing a European industrial cooperation and involvement in the furniture industry, the international research project INEDIT conducted a survey for furniture customers. By finding out the needs and wishes of the customer regarding innovative products and the production process the project will establish a new way for designing and producing furniture. Within INEDIT a platform is built on which customized, technologically innovative and sustainable furniture can be created and produced in a co-creation process. The furniture industry should thus become significantly more flexible, transparent and sustainable. Following the "do-it-together" approach, a business ecosystem will be generated which creates added value not only for customers but also for designers, suppliers and manufacturing companies. In order to involve the customer even more actively in the design process and the production, the platform will provide access to a mix of digital and physical services and is linked to all other stakeholders in the value chain. To match the platform and the process to the needs, wishes and demands of the customer an anonymous survey with 300 participants was developed and conducted. By analyzing the survey, important factors were found for buying and for using furniture considering new technological inventions (e.g. 3D-printing or smart objects), sustainability of the products and the production process. Furthermore, the potential customer-group and their usage of the do-it-together process and additional activities can be tightened.
Manufacturing companies are constantly increasing their efforts in the subscription business, also known as product-as-a-service business, offering usage and outcome based solutions (value-in-use) instead of transactional services and products (value-in-exchange). Customers are becoming contractual subscribers of the solution in return for recurring, performance-related payments. To address arising, inevitable challenges like (1) reducing customer churn, (2) increasing usage intensity and outcome quality, (3) ensuring the adoption of product and software releases as well as (4) fostering customer loyalty, leading manufacturing companies are setting up a new organizational, customer-facing unit, called Customer Success Management (CSM). This unit has its origins in the software-as-a-service business, operating next to established entities like sales, key account management and customer service. Since there are currently no holistic models for an end-to-end description of CSM-tasks in the manufacturing industry, this paper contributes to a taskoriented reference model, using a grounded theory approach, examining both manufacturing and software companies. Containing a reference framework with 8 main tasks, 17 basic tasks and 76 elementary tasks, the reference model supports manufacturing companies in adapting and customizing a company-specific CSM concept.
One major problem of today’s producing companies is to reach a high adherence to delivery dates while considering the volatile market situation as well as economic aspects. This problem can only be solved by using a production control that is optimally adapted to the processes. A good working, process-oriented production control is essential for being able to control the production situation and to ensure a high adherence to delivery dates. Data generation and processing determine the success of production control. Current processes and IT systems have several shortcomings in meeting these challenges.
The solution for this problem is the so called “cyber physical production control” (CPPC). It optimally supports the production scheduler in his decision making process based on real-time high-resolution data. With the help of data analytics, the production controller receives decision support over various steps. Due to CPPC, the overall goal of a high adherence to delivery dates can be fundamentally increased.
Digitization is constantly affecting the working world and is of enormous interest in many fields of science. But to what extent are innovative technologies actually being applied in regional SMEs and what are the obstacles to their introduction? From a psychological point of view, it is essential to consider the employee's health and the effects of innovative technologies on their everyday work. The aim of using innovative technologies should not be to completely replace human labor or to dequalify employees, but to relieve the workforce and free up working time for more meaningful activities. One concept that should be included in the human-centered design of human-machine interaction in artificial intelligence is the HAI-MMI concept (Huchler, 2020), which offers starting points for high-quality collaboration at various levels. To reduce the gap between science and industry, this paper focuses on the actual demands of SME in the Aachen region in Germany referring to a requirements analysis within the research project AKzentE4.0 (N = 50 SME) and discusses how appropriate innovative technologies of the Industry 4.0 and AI can be implemented and deployed in a human-centred way. Moreover, the establishment of a Human Factors Competence Center for Employment in Industry 4.0 is outlined, which is meant to be used for the dissemination of research results from the project and should narrow the gap between science and industry in the long run.
In recent years supply chain participants are increasingly suffering the effects of disturbances in transportation supply chains. Both, dynamics in consumer demands and global supply chains lead to a growth in unplanned supply chain events. These can cause from rather manageable disturbances through to complete break-downs of transportation chains, resulting in high follow-up and penalty costs.
Consequently, concepts for an efficient supply chain disturbance management are needed, preferably with a real-time identification and reaction to disturbance events. Therefore in the following paper the research results of the German research project Smart Logistic Grids with the focus on designing an integrated model for the real-time disturbance management in transportation supply networks are presented. This includes the introduction of elaborated classification models for disturbances and action patterns as well as an associated costs and performance measurement system. Finally, a procedure model for the disturbance management is presented.
In road haulage, transports are interrupted by truck drivers to comply with driving and rest times. On long-distance routes, these interruptions lead to a considerable increase in transport time. Transport interruption can be avoided by so-called relay traffic: a vehicle (e. g. semi-trailer) is handed over to a rested driver at the end of the driving time. This type of transport requires a certain company size. In Germany, however, transport companies have 11 employees on average. Intra-company relay traffic is therefore not economically viable for most transport companies. To organize an intermodal transport across forwarding companies, long-distance routes need to be split into partial routes to divide them between freight forwarders and carriers. This paper presents a data concept for an algorithm to find the best possible route sections along a previously defined start and endpoint. The developed data concept includes order-specific data, forwarder-specific data, real-time traffic data, geographical data as well as data from freight forwarding software and telematics to be the basis for the route sectioning algorithm. In this paper, different data sources, external services and logistic systems are analyzed and evaluated. It is shown which data is needed and what the best ways are to select and derive this data from the different data sources.
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.
This paper addresses the challenge of a systematic requirement-oriented configuration and selection of cyber physical systems (CPS) for SMEs. As the key technologies of realizing the digitalization and interconnection of production processes, manufacturing companies have realized the potential benefits brought by CPS. However, due to the
complexity and fast development of CPS technology, it is difficult for SMEs, which lack expertise and financial resources, to select the appropriate CPS technologies meeting both functional and financial requirements. To overcome the issue, an online matching platform is developed to let SMEs express their needs and assist them onceptualize
the individual CPS. This paper presents the matching methodology of the matching platform, which can not only match technical characteristics but also evaluate economic potentials. Then, it was demonstrated by a tracking and tracing use case in the end-of-line assembly of a small-sized German electric automobile manufacturer.
Due to Digital Transformation, also called Industry 4.0 or the Industrial Internet of Things, the barrier for implementing data collecting technology on the shop floor has decreased dramatically in the past years – leading to an increasingly growing amount of data from a multitude of IT systems in production companies worldwide. Despite that, the production controller still relies heavily on intrinsic knowledge and intuition for the management of disruptions in production. Thanks to advances in the fields of production control and artificial intelligence, potentials for the collected data for disruption management arise. However, in order to transform data into usable information and allow drawing conclusions for disruption management in production, the relevant data-objects, disturbances and alternative actions must be known. Thus, the decision-making can be supported, reducing the decision latency and increasing benefit of alternative actions. Therefore, the goal of this paper is to discuss the prerequisites necessary to perform a data based disruption management and the methodology itself, serving as an approach to allow companies to build a data basis, classify disruptions and alternative actions in order to improve decision making in the future. [https://link.springer.com/chapter/10.1007/978-3-030-28464-0_13]
Development of a platform business model for co-creation ecosystems for sustainable furniture
(2023)
Existing design platforms with multi-dimensional value chains currently have deficits in terms of their business models, resulting in insufficient attention to sustainability goals and individual requirements for products of these platforms. Co-creation approaches, such as the Do-It-Together (DIT) approach for furniture, involve customers and manufacturers as equal partners in the design and production process. This allows customers to have more influence on the sustainability and individualization of products. The existing literature addresses sustainability-oriented design principles for platform business models, but concrete platform business models for multidimensional DIT cocreation of furniture are still missing. Therefore, the objective of this paper is to develop a business model for a DIT co-creation platform for the furniture industry based on a four-step business model innovation framework. This method will then be applied to a specific project scenario to derive a project-specific DIT co-creation business model. This generates knowledge about the collaborative manufacture of sustainable and customized furniture and contributes to the cross-sectoral transfer of platform business models for the development of sustainable products.
Technology management can significantly influence the strategic decisions of a company and thus cause success or failure. Basic templates for technology management are technology radars as well as the determination of the technology readiness level (TRL) to be able to evaluate the maturity of newly deployed technologies (e.g., newcomer vs. established). The radars, as well as the TRL, are identified in time-consuming, manual research by subject matter experts from external consultancies. This process is often repeated due to the further development and new development of technologies so that the necessary research becomes an ongoing task. The TechRad research project, therefore, aims to automate the identification of the TRL as well as technology radars using web crawling and Natural Language Processing (NLP). To commercialize the pre-competitive prototype, the development of a pre-competitive business model is the goal of this paper. Based on customer analyses, a target group definition is created. Based on user interviews, the precompetitive business model will be detailed in a four-step approach using a business model canvas and a value proposition canvas.
The do-it-yourself mentality is particularly widespread in the furniture sector. Homemade furniture is very popular. The individualisation of furniture can be observed in internet forums, such as the online platform Pinterest. These creative ideas of potential customers show a need for individualized sustainable pieces of furniture. The current production structures, however, do not allow individual production according to the end customer's specifications. In addition, information logistics faces a major challenge: making the creative ideas of end consumers available to producers in parametric form. Topics such as customer requirements in relation to sustainable production, material specifications, industrial property rights, fair production conditions and traceability are the focus of this data interchange. An open and innovative European furniture ecosystem must be created to connect all stakeholders in the production process. This is made possible by a platform that channels the creativity of consumers and makes it designable and producible through the professional skills of designers. This requires the involvement of manufacturing specialists who can produce personalised products through sustainable intelligent production technologies. An exchange of information must also take place securely and quickly in order to protect the personal rights of the sources of ideas. This is being developed in the EU research project INEDIT - Open Innovation Ecosystem for do-it-together process. By connecting many different stakeholders along the entire value creation process, a change towards efficient collaborative collaboration is achieved. This paper presents a project insight for the development of an international co-creation platform by presenting the problem and linking it to a potential solution.
Innovation is one of the key drivers of growth, development, and profitability, which increases competitive advantages and has recently been moving towards industry 4.0 technologically. This motivates companies to update their business models (BM) towards industry 4.0. Moreover, there is a technique with the primary characteristics for achieving this motivation called "cross-industry innovation". Cross-industry innovation is a new method of innovation that concerns the creative translation and imitation of existing solutions from other industries for responding to the needs of the current market, sectors, areas, or domains. The challenge is to find out how far managers can rely on that to innovate their BM towards Industry 4.0. The aim of this study was to investigate the application of cross-industry innovation for designing industry 4.0 BM and explore the extent to which companies can rely on it as it has not been used for this purpose previously. This study utilized a database analysis to compare cross-industry innovation practices with industry 4.0 BM's characteristics in terms of value proposition, value creation, and value capture levels. In addition, some interviews were conducted with companies that had previously implemented cross-industry innovation to validate and generalize the results. The results indicated that cross-industry innovation practices can better fulfill flexible and dynamic networks, connected information flows, high efficiency, high scalability, and high availability in terms of value creation as well as variabilization of prices and costs in terms of value capture. Therefore, it demonstrated that cross-industry innovation was a more dependable and applicable strategy for designing the BM of Industry 4.0 than current practices.
It is crucial today that economies harness renewable energies and integrate them into the existing grid. Conventionally, energy has been generated based on forecasts of peak and low demands. Renewable energy can neither be produced on demand nor stored efficiently. Thus, the aim of this paper is to evaluate Deep Learning-based forecasts of energy consumption to align energy consumption with renewable energy production. Using a dataset from a use-case related to landfill leachate management, multiple prediction models were used to forecast energy demand.The results were validated based on the same dataset from the recycling industry. Shallow models showed the lowest Mean Absolute Percentage Error (MAPE), significantly outperforming a persistence baseline for both, long-term (30 days), mid-term (7 days) and short-term (1 day) forecasts. A potential decrease of up to 23% in peak energy demand was found that could lead to a reduction of 3,091 kg in CO2-emissions per year. Our approach requires low finanacial investments for energy-management hardware, making it suitable for usage in Small and Medium sized Enterprises (SMEs).
Augmented reality seems to offer great potential benefits in the field of industrial services. However, the question of the exact benefits, both monetary and qualitative, is difficult to evaluate, as is the case with IT investments in gen-eral. Within the framework of the DM4AR research project, an evaluation model was therefore developed. Based on group discussions and interviews on potential AR use cases, a list of monetary and qualitative benefits was compiled to form the basis for selecting suitable evaluation modules in the existing literature. These include an impact chain analysis in the form of a strategy map, a monetary eval-uation as a calculation of the return on investment, based on the assumptions of the use case as well as existing studies, and a qualitative evaluation in the form of a utility analysis. The outcome is an evaluation model in the form of a multi-perspective approach that considers the impact of AR in the four perspectives of the balanced scorecard (financial, customer, internal business processes, learning and growth). The results of the qualitative and monetary evaluation can be sum-marized in a 2D matrix to support decision-making.
Industrie 4.0 is said to have major positive effects on productivity in manufacturing companies. However, these effects are not visible yet. One reason for this is the lack of understanding of maintenance services as a crucial value contributing partner in production processes, although scientific literature already highlighted the importance of indirect maintenance costs. In order to retrieve the unused potential of maintenance services, a digital shadow in form of a sufficiently precise digital representation is required, providing a data model for the value of maintenance actions so that asset and maintenance strategies can be optimized later on. Using case study research for process manufacturers, the first research contribution of this paper consists of 21 value contributing elements being identified. The second contribution is a reference processes model, showing seven major process steps as well as the required intra-organization interaction on an information technology system level. Therefore, it provides the base for the missing data model shaping the targeted digital shadow of maintenance services’ value contribution. [https://link.springer.com/chapter/10.1007/978-3-030-57993-7_69]
Since data becomes more and more important in industrial context, the question arises on how data-driven added value can be measured consistently and comprehensively by manufacturing companies. Currently, attempts on data valuation are primarily taking place on internal company level and qualitative scale. This leads to inconclusive results and unused opportunities in data monetization. Existing approaches in theory to determine quantitative data value are seldom used and less sophisticated. Although quantitative valuation frameworks could enable entities to transfer data valuation from an internal to an external level to take account of progress in digital transformation into external reporting. This paper contributes to data value assessment by presenting a four-part valuation framework that specifies how to transfer internal, qualitative to external, quantitative data valuation. The proposed framework builds on insights derived from practice-oriented action research. The framework is finally tested with a machine tool manufacturer using a single case study approach. Placing value on data will contribute to management’s capability to manage data as well as to realize data-driven benefits and revenue. [https://link.springer.com/chapter/10.1007/978-3-030-85902-2_19]
In diesem Paper wird eine Architektur für Kommunikationsnetze für industrielle Anwendungen vorgestellt, die neue 5G-Technologien mit vorhandener Kommunikationstechnik auf der Feldbusebene kombiniert. Diese Architektur verbindet private und öffentliche Mobilfunknetze mit lokalen Funktechnologien, um einen flexiblen Aufbau zu ermöglichen, der in der Lage ist, viele industrielle Anwendungsfälle zu unterstützen. Es wird gezeigt, wie die Errungenschaften, die mit der neuen 5G-Technologie eingeführt werden, einen großen Bereich der industriellen Anforderungen erfüllen können. Weiterhin werden relevante Anwendungsfälle beschrieben und eine Gesamtsystemarchitektur vorgeschlagen, welche nicht nur die technischen, sondern auch die funktionalen Anforderungen, welche von den spezifischen Anwendungen heutiger und zukünftiger Herstellungsprozesse gestellt werden, erfüllen kann.
Generation of a Data Model For Quotation Costing Of Make To Order Manufacturers From Case Studies
(2022)
For contract or make to order manufacturers, quotation costing is a complex process that is mainly performed based on experience. Due to the high diversity of the product range of these mostly small or medium-sized companies (SMEs) and the poor data situation at the time of quotation preparation, the quality of the calculation is subject to strong variations and uncertainties. The gap between the initial quotation costing and the actual costs to be spent (pre- and post-calculation) is crucial to the existence of SMEs. Digitalization in general can help companies to get a better understanding of processes and to generate data. For improving these processes, an understanding of the important data for that specific process is crucial. Accurate quotation costing for customized products is time-consuming and resource-intensive, as there is a lack of an overview of data to be used within the process. This paper therefore derives a data model for supporting quotation costing in the company, based on literature-based costing procedures and recorded case studies for quotation and calculation. Based on the results, SMEs will have a first overview of the needed data for quotation costing to optimize their calculation process.
High Resolution Supply Chain Management (HRSCM) aims to stop the trend of continuously increasing planning complexity. Today, companies in high-wage countries mostly strive for further optimization of their processes with sophisticated, capital-intensive planning approaches. The capability to adapt flexibly to dynamically changing conditions is limited by the inflexible and centralized planning logic. Thus, flexibility is reached currently by expensive inventory stocks and overcapacities in order to cope with rescheduling of supply or delivery. HRSCM describes the establishment of a complete information transparency in supply chains with the goal of assuring the availability of goods through decentralized, self-optimizing control loops for Production Planning and Control (PPC). HRSCM pursues the idea of enabling organization structures and processes to adapt to dynamic conditions. The approach includes the strengths of the existing planning models as well as the process of decision making in organizations. A precondition for this decentralized adaptation is the synchronization of the objectives of the several units or process owners. The basis for this new PPC Model are information transparency, stable processes, consistent customer orientation, increased capacity flexibility and the understanding of the production system as a viable, socio-technical system.
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.
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.
Auf Basis einer systematischen Literaturanalyse wurden insgesamt 11 Kennzahlen identifiziert, welche die Grundlage zur Beschreibung der operativen Leistungsfähigkeit von Unternehmen bilden. Die Kennzahlen wurden in die vier Leistungsdimensionen Effizienz, Qualität, Zeit und Flexibilität eingeteilt.
The use of chatbots has hardly been established in B2B companies to date and involves various challenges. The goal of this paper is to identify the biggest barriers to the successful implementation of chatbots in B2B customer service and to develop measures to overcome them. The barriers are identified by conducting expert interviews within the framework of Eisenhardt's case study research. These are examined through a socio-technical analysis focusing on people, technology, and organization. By means of systematic literature research and in-depth interviews with German chatbot providers and customers of chatbots, measures for overcoming the barriers are identified. Using interviews with experts from German chatbot providers, the responsible stakeholders of each measure according to the RASCI Responsibility Matrix are determined. A total of 46 implementation barriers and 100 measures to overcome these barriers are identified. The study shows that there are major barriers in the areas of people, technology, and organization of a socio-technical system that can cause the implementation of a chatbot to fail. A holistic view is therefore essential. The results provide firms with a guideline on how to overcome potential barriers during chatbot implementation in B2B customer service.
While digitization is a strategic advantage in numerous industries such as the automotive industry or mechanical engineering, other industries like the German quarrying industry have not yet established a transformation towards a digitized industry. This leads to inefficient work and inaccurate forecasting capabilities. To address these challenges, digital platforms can incentivize digitization
by supporting the capacity utilization and forecasting capability of these companies. In this paper, the quarrying industry is analyzed by a morphology and different types of companies are identified. Knowing the digital maturity of these companies and by determining the key factors to forecast demands and the capacity utilization, different operating models are derived. Combined with a morphology and the value creation system, different scenarios for the identification of platform services are examined. These scenarios are weighted in a utility analysis to get an operating model blueprint to develop and establish digital platforms in less digitized industries.
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.
Industrie 4.0 is all around us today: in politics, in the media, and on the agendas of researchers and entrepreneurs. Smarter, faster, more personalized, more efficient, more integrated – those are just some of the promises of this new industrial era. The potential, especially for Germany ́s mechanical
engineering industry and plant engineering sector, is indeed great, both for providers and for users of technologies across the spectrum of Industrie 4.0.
But there are still many unresolved questions, uncertainties, and challenges. Our readiness study seeks to address this need and offer insight. Because Industrie 4.0 will not happen on its own.
This study is intended to bring the grand vision closer to the business reality. We also highlight the challenging milestones that many companies must still pass on the road to Industrie 4.0 readiness.
The study examines where companies in the fields of mechanical and plant engineering currently stand, focusing on what motivates them and what holds them back, and on the differences that emerge between small and medium enterprises on the one hand and large enterprises on the other.
The results make it possible for the first time to develop a detailed, systematic picture of Industrie 4.0 readiness in the engineering sector.
The study concludes with recommendations for action in the business community, complementing the diverse suite of programs and activities offered by VDMA’s Forum Industrie 4.0. We would like to take this opportunity to thank the two sponsors of this project from the VDMA Forum, Dietmar Goericke and Dr. Christian Mosch, whose efforts played a critical role in making this study a success.
We are convinced that Industrie 4.0 can become a success story for Germany’s engineering sector. May our “Industrie 4.0 Readiness” study do its part in this effort.
Manufacturing companies (MFRs) are increasingly extending their
portfolios with services and data-driven services (DDS) to differentiate themselves from competitors, tap new revenue potential, and gain competitive advantages through digitization and the subsequently generated data. Nonetheless, DDS fail more often than traditional industrial services and products within the first year on the market. Particularly, companies are failing to sell DDS successfully and efficiently with their existing (multi-level) distribution structures. Surprisingly, there is a lack of scientific research addressing this issue. Since there are currently no holistic models for an end-to-end description of distribution-tasks for DDS in the manufacturing industry, this paper contributes to a task-oriented reference model for mapping interactions in the multi-level distribution management. Therefore, a case study research approach is used, to identify and describe the interactions in the multi-level distribution management of DDS, as well as to develop a regulatory framework for MFRs and their multi-level distribution management. This research uses the established theoretical framework of Service-Dominant-Logic to address the co-creation in multi-level distribution management of DDS. As a result, this paper identifies different interaction variants as well as the need for a new management function with 4 main and 14 basic tasks.
Changing customer demands lead to increasing product varieties and decreasing delivery times, which in turn pose great challenges for production companies. Combined with high market volatility, they lead to increasingly complex and diverse production processes. Thus, the susceptibility to disruptions in manufacturing rises, turning the task of Production Planning and Control (PPC) into a complex, dynamic and multidimensional problem. Addressing PPC challenges such as disruption management in an efficient and timely manner requires a high level of manual human intervention. In times of digitization and Industry 4.0, companies strive to find ways to guide their workers in this process of disruption management or automate it to eliminate human intervention altogether. This paper presents one possible application of Machine Learning (ML) in disruption management on a real-life use case in mixed model continuous production, specifically in the final assembly. The aim is to ensure high-quality online decision support for PPC tasks. This paper will therefore discuss the use of ML to anticipate production disruptions, solutions to efficiently highlight and convey the relevant information, as well as the generation of possible reaction strategies. Additionally, the necessary preparatory work and fundamentals are covered in the discussion, providing guidelines for production companies towards consistent and efficient disruption management.
Long-term production management defines the future production structure and ensures the long-term competitiveness. Companies around the world currently have to deal with the challenge of making decisions in an uncertain and rapidly changing environment. The quality of decision-making suffers from the rapidly changing global market requirements and the uniqueness and infrequency with which decisions are made. Since decisions in long-term production management can rarely be reversed and are associated with high costs, an increase in decision quality is urgently needed. To this end, four different applications are presented in the following, which support the decision process by increasing decision quality and make uncertainty manageable. For each of the applications presented, a separate digital shadow was built with the objective of being able to make better decisions from existing data from production and the environment. In addition, a linking of the applications is being pursued:
The Best Practice Sharing App creates transparency about existing production knowledge through the data-based identification of comparable production processes in the production network and helps to share best practices between sites. With the Supply Chain Cockpit, resilience can be increased through a data-based design of the procurement strategy that enables to manage disruptions. By adapting the procurement strategy for example by choosing suppliers at different locations the impact of disruptions can be reduced. While the Supply Chain Cockpit focuses on the strategy and decisions that affect the external partners (e.g., suppliers), the Data-Driven Site Selection concentrates on determining the sites of the company-internal global production network by creating transparency in the decision process of site selections. Different external data from various sources are analyzed and visualized in an appropriate way to support the decision process. Finally, the issue of sustainability is also crucial for successful long-term production management. Thus, the Sustainable Footprint Design App presents an approach that takes into account key sustainability indicators for network design. [https://link.springer.com/referenceworkentry/10.1007/978-3-030-98062-7_15-1]
Since 2016, the “Digital in NRW” Competence Centre has been supporting SMEs in the manufacturing industry in designing their individual digital transformation. With an Industry 4.0 maturity assessment, we define the status quo of SMEs, derive SME-specific measures from this, develop a digitalization roadmap and accompany the SME transformation. This paper presents the results of the four-year SME support. By analyzing the results of all maturity assessments, potential analysis and design workshops, we present the most frequent and most effective measures for a successful digital transformation of SMEs. The result of the paper is an action guideline for SMEs to initiate their own digital transformation based on formalized experience.
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.
Progress in the development of small electric and hybrid aircraft promises business opportunities for thin-haul air mobility services. In order to develop demand-oriented flight plan scenarios for Germany, this paper presents a model to estimate the marked volume of thin-haul air mobility. To quantify the potential demand, our model includes the steps of trip generation, trip distribution and mode choice. Trip generation and distribution takes place between 412 geographic subdivisions of Germany and is based on calibrated traffic forecast data for the year 2030. For the first time the five relevant modes of transport, namely: car, intercity train, intercity bus, commercial aircraft and thin-haul air mobility services, have been included in one model. The step of choosing the transport mode is implemented via a generalized cost approach, taking into account travel costs and travel time. Additionally, route modeling of all transport modes is enhanced by real market data using large-scale data readouts of web interfaces. As primary result we predict a market share of 6 % or 81 million trips per year for thin-haul air mobility services. The demand concentrates on a small number of airports: 30 % of the trips are estimated to be between only 20 airports. Hubs and main routes are identified to offer the potential for scheduled air services.
Digitalization is changing the industrial landscape in a way we did not anticipate. The manufacturing industries worldwide are working to develop strategies and concepts for what is labelled with different terms such as the Industrial Internet of Things in the USA or Industrie 4.0 in Germany. Many industrialized economies are driven by the production sector and this sector needs specific approaches and instruments to take up other than those approaches we know from start-ups and ventures coming from Silicon Valley and other places. In this paper, we demonstrate an appropriate approach to transform producing companies in a systematic and evolutionary approach.
In particular, the objective of this paper is to provide results from two initiatives which conceptually build upon each other and are of particular relevance for the production industry. First, we present a global survey on the state of implementation and the future perspectives of the concept Industrie 4.0 from 2016. Findings from this study have forced parts of the German industry to heavily invest into a common approach to accelerate change towards Industry 4.0 in order to stay competitive in worldwide economy. This approach is presented in a second part.
Nowadays, cyber physical systems support the improvement of efficiency in intralogistics by controlling and manipulating the production and logistic environment autonomously. Due to the complexity of the individual production processes, designing suitable cyber-physical systems based on their existing production environment is a challenge for companies.
This paper presents a new methodology on how to design cyber-physical systems conceptually to suit an individual production environment. Compared to existing design approaches, this methodology matches immediately the required functions to existing information and communication technology’s components insisting on the neutral assimilation of requirements.
Therefore, the requirement specification asks for needed functions in relating to offered functions of information and communication technology (ICT) components. The paper focusses the use case of implementing a cutting-edge mobile network technology into an existing tracking and tracing process.
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.
Electricity generated by wind turbines (WT) is a pillar of the transition to renewable energy [1]. In order to economically utilize WTs, operating and maintenance costs, which account for 25% of total electricity generation costs in onshore WTs, are a focus of cost reduction activities [2]. A prescriptive maintenance approach can support in achieving this goal. Prescriptive maintenance is a maintenance approach, where asset condition data is collected and analyzed to recommend specific actions to prevent breakdowns and reduce downtimes. However, the processing and analysis of data is quite complex. Especially unstructured data (such as comments of service technicians in free text fields) is often left unused, as companies, mostly SMEs lack the capacity to carry out these analyses. In this work we propose an approach to utilize the information from service reports, maintenance reports as well as status records from SCADA systems for the development of a prescriptive maintenance approach to onshore WTs. To achieve this, an ontology was utilized in this approach to codify implicit knowledge of service technicians and aid in making unstructured data usable for further analysis. The ontology was used to link historical service and maintenance reports with status codes, thus enabling automated analysis. In interviews with WT topic experts and through further research, damage mechanisms and corresponding maintenance measures were identified and a measure catalogue was developed to support service and maintenance activities. The recognition of the root cause of problems allows for a prescriptive maintenance approach that recommends targeted actions to reduce downtimes and optimize maintenance activities, it also allows to effectively control the outcome of maintenance activities and optimize their execution.
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
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.
Competitive differentiation in the manufacturing sector is no longer based on product and service innovations alone but on the ability to monetize the usage phase of products and services. To this end, manufacturers are increasingly looking at so-called subscription business models as a way of supplementing the traditional sale of products and services. Since supplier success in the subscription business is directly dependent on customer success, the setup and expansion of a so-called Customer Success Management (CSM) is required. While CSM has already been established in the software industry for several years, companies in the manufacturing sector are often still in the conceptual phase of a CSM, parallel to the setup and expansion of their subscription business. Therefore, this paper aims to support the set-up of a CSM by providing a reference data model, based on case study research, that can be used to support the organizational or daily CSM tasks and to serve as a blueprint for conceptualizing CSM-specific IT systems.
Industrie 4.0 is changing the industrial landscape in an unanticipated way. The vision for manufacturing industries is to transform to an agile company, in order to react on occurring events in real-time and make data based decisions. The realization requires also new capabilities for the information management. To achieve this goal agile companies require taking measured data, analyzing it, deriving knowledge out of this and support with the knowledge their employees. This is crucial for a successful Industrie 4.0 implementation, but many manufacturing companies struggling with these requirements. This paper identifies the required capabilities for the information management to achieve a successful Industrie 4.0 implementation. [https://link.springer.com/chapter/10.1007/978-3-319-65151-4_3]
This paper addresses the challenge of modelling individual cyber-physical systems (CPS) for small and medium-sized enterprises (SMEs) in manufacturing industries. CPS are key technology building blocks for the implementation of Industrie 4.0. Especially for SMEs the increase of production efficiency and reduction of manufacturing costs through CPS offer potential to maintain their competitiveness and innovation capacity. Although SMEs perceive the potential of CPS, they often lack financial and human resources to acquire the necessary CPS-competencies as well as an overview of all the currently available technological solutions. To overcome this issue a matching platform will offer SMEs support in finding suitable CPS-components by letting them express their functional and technical requirements. The matching logic is based on a set of morphologies that encompasses the functional and requirement spectrum of CPS-components. The matching algorithm analyses the input for congruence of requirements and available technologies and suggests suitable technology combinations. This paper describes the methodology of the matching platform, and introduces the research work to define and to develop the technology morphologies. The presented results facilitate the selection and configuration of CPS for SMEs.
The industrial food production is currently caught between the increas-ing demands of numerous stakeholders, economic profitability and the challenges of digitization. A solution to face these various challenges can be seen in the aggregation of data into higher-value, independent data products that can be of-fered and sold on a buyer's market. Large amounts of heterogeneous data are already available in the value chain of the industrial food production, e.g. throughout the data-driven harvesting of primary products, further processing by interconnected production facilities and the information-intensive product distri-bution to end consumers. However, the data is usually only evaluated and used locally for the optimization of internal processes or, at the most, within compre-hensive partnerships. The purpose of this paper is to identify new revenue oppor-tunities for current and future players in the industrial food production by using data as an independent economic good (data products). For this purpose, scenar-ios for the development and use of data products via Industrial Internet of Things platforms are developed for a food technical reference process, the industrial chocolate production and its value chain. On this basis, examples for different types of data products and their value propositions are derived. The results can not only serve food producers and relevant stakeholders but all industrial produc-ers as an input for the future, yield-increasing orientation of their business models.
Service Engineering Models
(2019)
Since the field of service engineering emerged in the late 20th century, the service industry has undergone drastic changes. Among the reasons for these changes is the increasing digitalization, which has made it difficult for companies to successfully develop new service offerings. While numerous service engineering models are available to provide guidance during the design of new services, many of them cannot keep up with the requirements of today’s economic environment. The present paper examines the requirements that service engineering models need to meet in order to be suitable guidelines for the digital age. To this end, the introduction illustrates how digitalization has changed the service industry. Afterwards, selected service engineering models and related norms are presented. Finally, a set of requirements for modern service engineering models derived from best practices from recent years is introduced.