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Institute
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.
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.
[Study] Blockchain
(2019)
Distributed ledger technologies, of which the best known example is blockchain, were expected to make their big breakthrough in 2018. Instead, the opposite happened. Cryptocurrency price slumps and delays in promising projects became symptoms of a new sense of caution. Organizations tried to use blockchain in unsuitable applications, and underestimated implementation hurdles. Despite this, the need for effective data exchange and data management in today's connected world remains high. Decentralized solutions, intelligent sensors, global supply chains and vast quantities of customer data will further stimulate demand for specialized and powerful data management systems. Blockchain therefore remains one option to enable a secure and interconnected world. The following five-step approach will help you harness blockchain's potential, avoiding common mistakes and overcoming implementation hurdles on your way.
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]
Smart Service Engineering
(2019)
In our digitalized economy, many traditional service engineering models lack flexibility, efficiency and adaptability. As today’s market differs significantly from the market of the late 20th century, service engineering models must meet different requirements today than they had to meet in the past. The present paper starts off by providing an overview of the requirements that modern service engineering models need to fulfill in order to succeed in today’s economic environment. Afterwards, three promising models that meet several of these requirements will be introduced.
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 aim of the related research project eCloud is to enable small and medium sized enterprises (SMEs) to implement flexible energy management without in-depth energy knowledge and with little distraction from day-to-day business, which is prepared for current and future challenges in the field of energy use. The overall result is a validated prototype for a plug and automate capable (i.e. without implementation effort) operational energy management, which can be successively set up in SMEs based on a cloud platform. Through its gradual and modular implementation, energy management meets the individual needs of each company and contributes to energy system transformation and climate protection by reducing energy costs and greenhouse gas emissions by up to 25%. In total, three expansion stages are available with the levels of monitoring, load management and grid usage, which consist of various Software as a Service (SaaS) modules from the cloud that can be retrieved as required. Thus, the user only needs a minimal hardware intervention in his production and saves a complex IT infrastructure. The methodology developed has been successfully applied by two user companies so far. This proves the effectiveness of the method.
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.
In recent years, the complexity of the management of supply chains has increased significantly due to the growing individualization of products and dynamics of the market environment. To remain competitive, ensuring efficient and flexible processes and procedures along the entire supply chain are of particular importance for companies. Especially in the inter-company context, decisions must be made as quickly and correctly as possible. To enable good decision-making processes data must be processed and provided in a targeted manner. Currently, however, the necessary transparency is often lacking within the supply chains. In this article, a software-based assistance system for decision support on supply chain level is presented that aims to increase the transparency and efficiency of the decision-making process. A concept for decision support on supply chain level is presented. This paper focuses on the conceptual linkage of relevant decisions and data. Therefore, indicators are identified and linked with the relevant decisions. Moreover, a suitable way of visualizing the identified indicators for each decision in a user-friendly manner is defined. These results are then used to implement the software tool.
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.
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.
Es geht um die Entwicklung eines Software-Tools zur Unterstützung bei der Auswahl von geeigneten 3D-Druckdienstleistern im Kontext der additiven Ersatzteillogistik. Im Fokus steht der Logistikdienstleister als potentieller Nutzer des Softwaretools. Das Softwaretool erfüllt zwei zentrale Funktionen: Überprüfung ob ein Ersatzteil additiv gefertigt werden soll und Auswahl eines konkreten Produzenten durch Matchingalgorithmus.
The shop floor is a dynamic environment, where deviations to the production plan frequently occur. While there are many tools to support production planning, production control is left unsupported in handling disruptions. The production controller evaluates the deviations and selects the most suitable countermeasures based on his experience. The transparency should be increased in order to improve the decision quality of the production controller by providing meaningful information during his decision process. In this paper, we propose a framework in which an interactive production control system supports the controller in the identification of and reaction to disturbances on the shop floor. At the same time, the system is being improved and updated by the domain knowledge of the controller. The reference architecture consists of three main parts. The first part is the process mining platform, the second part is the machine learning subsystem that consists of a part for the classification of the disturbances and one part for recommending countermeasures to identified disturbances. The third part is the interactive user interface. Integrating the user’s feedback will enable an adaptation to the constantly changing constraints of production control. As an outlook for a technical realization, the design of the user interface and the way of interaction is presented. For the evaluation of our framework, we will use simulated event data of a sample production line. The implementation and test should result in higher production performance by reducing the downtime of the production and increase in its productivity.
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.
This paper contributes to an assessment framework for valuing data as an asset. Particularly industrial manufacturers developing and delivering Smart Product Service Systems (Smart PSS) are comprehensively depended on the business value derived by processing data. However, there is a lack in a framework for capturing and comparing the Smart PSS data value with the purpose of increasing the accountability of data initiatives. Therefore a qualitative data value assessment approach was developed and specified on Smart PSS, based on an industrial case study research. [https://link.springer.com/chapter/10.1007/978-3-030-57997-5_39]
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]
Reliability-centered maintenance for production assets is a well-established concept for the most effective and efficient disposition of maintenance resources. Unfortunately, the approach takes a lot of effort and relies heavily on the knowledge of individuals. Reliability data in Computerized Maintenance Management System (CMMS) is scarce and almost never used well. An automated risk assessment system would have the potential to contribute to the dissemination and effective use of risk information and analysis. The individuality of production setting, however, prevents current systems from being practically relevant for most industries. The presented approach combines ontologies to store and link knowledge, an information logistics model displaying the various information streams, and the Internet of production to take the different user systems and infrastructure layers into account. The provided model of a reference digital shadow for risk information and a detailed information logistics model will help software companies to improve reliability software, standardize and enable assets owners to establish a customized digital shadow for their production networks. [https://link.springer.com/chapter/10.1007/978-3-030-57993-7_2]
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.
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.
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.
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]
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.
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.
The Impact Of Manufacturing Execution Systems On The Digital Transformation Of Production Systems
(2021)
With the focus of manufacturing companies on the digital transformation, Manufacturing Execution Systems are market-ready, modular software solutions for manufacturing companies to integrate the value-adding and supporting processes horizontal and vertical in the company. Companies, especially small and mediumsized companies, face high internal and external costs for the implementation of the MES modules. An advantage of MES is the possibility to implement the systems in a continually, module-by-module approach, with the benefit of timely distributed investments. By realizing fast improvements, companies can use the benefits for further module implementations. This paper proposes a maturity model to measure the impact of an MES on the digital transformation of the company’s production systems. The model fulfils two purposes. The first, companies can measure the impact based on the difference between its current maturity index and the potential index of an implemented MES. The second is, the user can identify what impact an MES has in general on the digital transformation since the developed maturity model is derived from an established industry 4.0 maturity model. The development of the maturity model is based on the methodologies of AKKASOGLU and focuses on the further development of an established model. As an outlook, the application of the model will be described briefly. The proposed maturity model can directly be used by practitioners and offers implications for further development of MES functionalities.
Industrial practice shows a strong trend towards digitalization. It is not only economic crises, such as those triggered by Covid-19, that are reinforcing this trend. It is also the entrepreneurial urge to fulfill customer wishes in the best possible way and to adapt to new requirements as quickly as possible. Due to the advancing digitalization, the role of business application systems in manufacturing companies is therefore becoming increasingly important. The data processed in IT-Systems represent a great potential, especially for the evaluation of change requests in production. Through efficient change management, companies can record and process changes quickly. However, the necessary data basis to decide on existing change requests is still hardly used. Existing IT-Systems for change management coordinate the processing of change requests, but do not relate to data of operational application systems such as Enterprise-Resource-Planning. Therefore, a conceptual approach is required for the evaluation of change requests. This approach is based on an objective recording system that enables the transformation from the change description to an evaluation space. The paper presents an approach for the systematic transfer of requirement characteristics into the world of operational IT-Systems.
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.
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.
Data-driven transparency in end-to-end operations in real-time is seen as a key benefit of the fourth industrial revolution. In the context of a factory, it enables fast and precise diagnoses and corrections of deviations and, thus, contributes to the idea of an agile enterprise. Since a factory is a complex socio-technical system, multiple technical, organizational and cultural capabilities need
to be established and aligned. In recent studies, the underlying broad accessibility of data and corresponding analytics tools are called “data democratization”. In this study, we examine the status quo of the relevant capabilities for data democratization in the manufacturing industry.
(1) and outline the way forward.
(2) The insights are based on 259 studies on the digital maturity of factories from multiple industries and regions of the world using the acatech Industrie 4.0 Maturity Index as a framework. For this work, a subset of the data was selected.
(3) As a result, the examined factories show a lack of capabilities across all dimensions of the framework (IT systems, resources, organizational structure, culture).
(4) Thus, we conclude that the outlined implementation approach needs to comprise the technical backbone for a data pipeline as well as capability building and an organizational transformation.
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.
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.
The operation of CNC milling is expensive because of the cost-intensive use of cutting tools. The wear and tear of CNC tools influence the tool lifetime. Today’s machines are not capable of accurately estimating the tool abrasion during the machining process. Therefore, manufacturers rely on reactive maintenance, a tool
change after breakage, or a preventive maintenance approach, a tool change according to predefined tool specifications. In either case, maintenance costs are high due to a loss of machine utilization or premature tool change. To find the optimal point of tool change, it is necessary to monitor CNC process parameters during machining and use advanced data analytics to predict the tool abrasion. However, data science expertise is limited in small-medium sized manufacturing companies. The long operating life of machines often does not justify investments in new machines before the end of operating life. The publication describes a cost-efficient approach to upgrade legacy CNC machines with a Tool Wear Prediction Upgrade Kit. A practical solution is presented with a holistic hardware/software setup, including edge device, and multiple sensors. The prediction of tool wear is based on machine learning. The user interface visualizes the machine condition for the maintenance personnel in the shop floor. The approach is conceptualized and discussed based on industry requirements. Future work is outlined.
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.
Driven by different trends, such as digitalization, the number of companies aiming for successful business transformation is increasing, while new structures and systems are paving the way. Strategic agile management systems offer significant potential benefits given the increasing speed of the evolving environment in which organizations find themselves these days. To select and implement the appropriate strategic agile management system, companies need to understand the underlying theoretical principles to be able to select the most suitable for the respective company and to introduce it based on individual adaption. Within this paper, a morphology is presented to improve theoretical knowledge about strategic agile management systems. Creating a common understanding of strategic agile management systems and their current areas of application creates a suitable frame of reference for future research projects.
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.
Understanding the Organizational Impact of Robotic Process Automation: A Socio-Technical Perspective
(2022)
Interest in AI-driven automation software is growing constantly across
all industries, as these technologies enable companies to almost automate administrative processes completely and significantly increase operational efficiency.
However, many implementation attempts fail due to a lack of understanding of how these technologies affect the various socio-technical aspects that are intertwined in an organisation. This leads to a widening gap between value propositions of automation software and the ability of companies to exploit them. For long-term
success, collaboration between humans and software robots in the organization must be optimised. Therefore, the social, technical, and organizational impact of Robotic Process Automation was investigated. Following a socio-technical systems approach, a model was developed and validated in a use case of a company in the mechanical engineering sector. Knowing the influencing factors before launching large-scale automation initiatives will help practitioners to better exploit
efficiency potentials and increase the long-term success.
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.
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.
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.
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.
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.
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.
The successful use of Business Analytics is increasingly becoming a differentiating competitive factor. The ability to extract data-driven insights and integrate them into decision-making is becoming growingly important. The underlying technologies are evolving exponentially, the value proposition differs from simple descriptive applications to automated decision-making. Existing approaches found in literature and practice to classify those levels only insufficiently mark down the boundaries between the different technology levels. As a consequence, it is often unclear which characteristics of the technology interact with the working environment, which can be described as a socio-technical system. Using a systematic literature review, this paper identifies the characteristics of Business Analytics and delineates three types of Business Analytics based on case studies. Thus, a starting point for the socio-technical system design and optimization for the use of Business Analytics is created.
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.
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.