Smart Machine and Productivity 4.0 in Taiwan: Now and Future

Smart Machine and Productivity 4.0 in Taiwan: Now and Future

Wu, Ming-Ji, Director General,

Industrial Development Bureau, MOEA

May 30, 2016

Introduction

Comparative Advantage of Germany

and Taiwan

Success cases

Opportunities for Future Cooperation

Recommendations

Outline

3

Global Industry Trends

After the manufacturing industry went through automation, mass

production, and globalization, German (Industry 4.0), U.S.A. (AMP), Japan

(4.1J), China (Made in China 2025), and other major countries are

actively building agile and predictable cyber-physical systems for smart

manufacturing, production, and marketing to address the market

demand.

日本4.1J

U.S.A. AMP

Germany Industry 4.0

Japan Industry 4.1J

Korea Manufacturing Innovation 3.0

China Made in China 2025

Industry revitalization through equipment investment and R&D.

Future manufacturing focus: 3D printing, big data, manufacturing systems, and intelligent robots.

Integrate ICT hardware and software for Cyber-Physical System (CPS).

Assist SMEs to set up intelligent and optimized manufacturing processes.

Upgrade manufacturing industry, aiming to become a "world manufacturing power" by 2025

-AMP (Advanced Manufacturing Partnership)

-4.1J (Japan Industry 4.1J)

4

Productivity 4.0 Framework 製造業： 因應此國際趨勢，行政院已於今(104)年9月17日核定「生產力4.0發展方案」，聚

焦於製造業、服務業及農業，在製造業方面，將結合台灣擅長的精密機械與資通訊

技術，提升高值內銷並創造高端外銷，連結全球市場，提升整體產業國際競爭力，

達到「擴大市場內需，創造外銷契機」的目標。

五大重點產業：(占整體製造業62%，占從業人口數67%)

電子資訊業：產值約占31.0%，從業人口占29.0%

金屬運具業：產值約占19.6%，從業人口占21.9%

機械設備業：產值約占5.1%，從業人口占7.7%

食品製造業：產值約占3.8%，從業人口約5.0%

紡織製造業：產值約占2.2%，從業人口占3.4%

帶動產業結構優化 能資源使用最佳化：智慧製造強化土地能、源生產力，減廢再生提升資源使用效率。

友善人機協同作業：員工在職訓練晉升為決策與管理者，結合機器人達成協同生產。

彈性敏捷生產：彈性產線與即時管理，達到快速回應市場訂單。

預測製造管理：巨量資料預測分析，達成製程優化、預知保養、市場預測。

大量客製化高值/質產品：運用CPS切入高值產品市場，生產監控與訊息即時回饋，確保產品品質。

創新製造服務網絡：整合製造，通路及消費體系，創造生產營運新型態與新產業。

Why Productivity 4.0

Objective: Raise GDP per capita of manufacturing industry to 10 million NTD in 2024 (up 60% compared to 2014).

Strategy: Optimize smart supply chain eco-system of 5 leading industries (electronics and information, metal transportation, machine tools, food, and textile)

Enhance economic growth

and international competitiveness

Step 3 Promote

local

content Agriculture 4.0

Business 4.0

Step 2

Foster new

ventures

Step 1: Optimize smart supply chain ecosystem of leading industries

Step 4

Obtain self-developed, game-

changing technologies

Step 6 Support the industry with preferential

policies

Step 5

Cultivate experienced talents

Build fundamental

environment for

Productivity 4.0

Objective: GDP per capita of manufacturing industry to top 10 million NTD by 2024 (up 60% compared to 2014)

Manufacturing 4.0 (electronics, metal

transportation, machine tools, food, and textile)

5

Focus on the Future:

Robot

IoT

Big Data

CPS

Lean Management

Productivity

4.0

Sensor

Precision

Machinery

Smart

Machine

3D Printing

With the foundation of precision machinery and ICT technologies,

Taiwan is implementing Productivity 4.0 to make smart machines a

reality and promote the industrialization of smart machines and smart

machine-intensive industry.

Taiwanese Machinery Industry

ICT

Technology

Industrialization of Smart Machine

• Foster smart machine

technologies

• Develop solution-based smart

machines

• Establish smart machine

ecosystem

Smart machine-intensive Industry

• Reduce labor overheads, speed

up talent recruitment

• Create innovative production

process and boost productivity

• Utilize ICT advantages to smarten

up industry supply chains

6

According to Global Competitiveness Report of World Economic Forum 2014-2015, Taiwan has the most concentrated IT industry clusters, ranked first in the world.

Advantages of Taiwan 1.1 Most concentrated industry clusters

1.2 Close proximity to Southeast Asia

1.3 Rapid commercialization

1.4 Sufficient supply of skilled talent

Taiwan has a sufficient supply of skilled talent for the ICT, electronic/electrical, and machinery industry

to help the industry move forward to Productivity 4.0 .

Taiwan's high-technology exports in % of manufactured exports was ranked second in 2015, reflecting

the fact that Taiwan has high levels of hardware /software integration capability for flexible production

and rapid commercialization

According to BERI's Investment Environment Risk Assessment Report, Taiwan's investment environment is

ranked second in Asia and close proximity to southeast Asia enable TW to tap market demand efficiently

Smart Auto. Experience

Automation ratio: 67% Smart auto. ratio: 40%

Pioneer in IT Industry

World #1 foundry industry Top 3 network comm. industry Top 5 IC design industry

4.0 Industry Clusters

Industry clusters are connected to offer collective learning base

Smart Auto. Experience

Automation ratio: 67% Smart auto. ratio: 40%

Pioneer in IT Industry

World #1 foundry industry Top 3 Network Comm. industry Top 5 IC Design industry

4.0 Industry Clusters

Industry clusters are connected to offer collective learning base

2. What We Have for Productivity 4.0

1. Our Global Competitiveness

7

The Manufacturing sector’s high share

of GDP

Dominant Position in

Global Economy

Sustained Global Competitiveness

Industry 4.0

Global manufacturing industry

competitiveness: Ranked 3rd

Major advantages: sufficient supply of

talent, high levels of creativity, and well-

built infrastructure.

Major disadvantages: relatively high costs

of labor, raw materials and energy

Pioneer in the machinery,

chemical & pharmaceutical,

automotive, and electronic

industries.

Manufacturing industry has 5%

CAGR during the recent 20 years,

up from 1% in 1995

Manufacturing industry's exports in

GDP: over 80%

Industrial products' global share: 7%

Manufacturing industry's share of GDP: over

22%

Cyber-Physical System (CPS) is the core

Industry, academic, and research institutes jointly establish

smart factory and move forward to Industry 4.0.

Advantages of Germany

8

Success Cases

Siemens-Productivity 4.0 Promotion Office Cooperation Productivity 4.0 Promotion Office signed MOU with Siemens to introduce CPS

training courses to cultivate talent on site or in Taiwan.

SAP, Taiwanese Manufacturers Join Hands for Industry 4.0 Factory SAP has assisted Taiwanese companies Cheng Shin Rubber, Shihlin Paper, Pou

Chen Group, Everest Textile in establishing Industry 4.0 factory to sharpen their

international competitiveness.

Fair Friend Group, 13 Germany Manufacturers Form Industry 4.0 Strategic Partners FFG cooperates with 13 Germany Industry 4.0 manufacturers, including Siemens,

SAP, BOSCH, and so on for greater influence in the global smart machine market.

TongTai-Siemens Cooperation for the Aerospace Machine Market TongTai has introduced Siemens's technology and established a Productivity 4.0

production line in cooperation with Taiwan's AIDC for high-end national defense

and aerospace markets in the future.

9

。

Introduction of Siemens' aerospace controller and driver technologies,

as well as value-added machine tools. To facilitate Taiwanese machine tool manufacturers to join the supply

chain of aerospace industry

To nurture over a hundred of aerospace parts and components suppliers

Information Technology

Communication

Technology

Operation Technology

Complete-plant 3D logistic model

CPS-ERP & smart scheduling

Data visualization/Electronic board/Processing GPS

Vibration monitoring

app

Utilization rate monitoring app

Feed rate optimization app

Safeguarding app

Support all kinds of domestic and commercial controllers Industrial IoT

Signal Acquisition

Device

Industry 4.0 Demo site,

Shop floor#8

Success Cases (Cont.)

10

Introducing CPS-ERP technology to build smart supply chain ecosystem by connecting machine

tool companies and their supply chain partners

To facilitate upstream and downstream metal processing partners of

machine tool companies introducing smart CPS-ERP technology

Success Cases (Cont.)

CPS Connect physical supply chains and productivity data, scheduling system via VMX platform

First-level upstream supply chain A (raw

materials/components)

Second-level upstream supply chain B (processing/mfg.

process)

Third-level upstream supply chain C (modules)

Tool Plants (e.g. Tongtai, Victor

Taichung

ERP B&C

ERP A

System Integrators (e.g. Deta Group)

Work dispatch

Material feed

Maintenance

Sensing data Production

resume Control

parameters

IoT

Sensor

IoT

Sensor

IoT

Sensor

Utilization rate Estimated

delivery schedule

Supply Chain CPS Schedule

Supplier Capacity

Machine Operation Status

Inventory Statistics

VM

X D

ata

Ce

nte

r

IoT Control parameters, machine sensing data are sent back to cloud database via VMX platform

Big Data Collect large volume of sensing data and set up Data Model to monitor machine real-time status

Lean Management Control precisely supply chain production capacity, conduct work scheduling and work dispatch via CPS-ERP to shorten time-to-market significantly

Place

Order

Deliver

11

Opportunities for Future Cooperation

Co-developing Total Solutions To encourage German and Taiwanese companies to join Productivity 4.0 Working

Group and co-develop Productivity 4.0 total solutions

• Co-developing int'l markets: to serve the needs of Asia Pacific markets

• Applying Joint test: to build a sensor testing & solution verification mechanism

Seeking Best Practices via Continued Cooperation with Taiwanese Domestic Manufacturers To cooperate with Taiwanese service providers to find best practices before

large-scale implementation.

• Standard and Security: to co-establish a common 4.0 communications

standard to solve system security issues for the manufacturing industry

• Vocational Cooperation: to take Germany vocational system as a reference

• Ecosystem: to facilitate the partnering in supply chain

Co-developing Productivity 4.0 Demo Site

Developing a demo site to showcase educational, scalable, practical, and

economic benefits

12

Germany-Taiwan cooperation to expand and grow stronger

Cooperation

Area

Cooperation

Parties Objective

Solution-Oriented

Cooperation

Controller +

Driver

AIM

+

Siemens

Introducing dedicated aerospace controller and driver technologies

AIDC, a Taiwanese state-owned aerospace company, has built up Productivity 4.0 production line and will work together with Siemens to tap into international market of aircraft machine tools

Sensor

ITRI

+

DKD

Setting up a test lab

In 1997, DKD set up the 1st calibration laboratory in HBM. Taiwan aims to co-develop a test lab with DKD and ITRI has

started to evaluate the possibility of cooperation with DKD to create test and certification of total solutions.

Robot

ITRI

+

DLR

Developing core technology of adaptive robot

Introducing adaptive robot technologies from international research institutes dedicated to RoboDrive technology to build up Taiwan's capability of exporting

total solutions for the robotics industry.

Opportunities for Future Cooperation

(Cont.)

- AIM (Aerospace-Intelligence-Machine Team)

- ITRI (Industrial Technology Research Institute)

- DKD (Deutscher Kalibrierdienst)

- DLR (Deutsches Zentrum für Luft- und Raumfahrt)

13

Recommendations

• Establishing a bilateral exchange platform

Setting up an exchange platform to organize Industry 4.0/Productivity 4.0

International Forums on a regular basis for cross-regional cooperation and

experience exchange.

• Forming a working group to connect industry, academic, and

research institute sectors from both sides

Exploring demand of the smart machine, national defense & aerospace,

and ICT industry, developing corresponding solutions, and establishing

common communication standards in compliance with Productivity

4.0/Industry 4.0 to ensure interoperability of components and systems from

both sides

• Developing emerging Asia-Pacific markets together

Taking the advantages of Germany in CPS, solid experience and thorough

knowledge in the manufacturing industry, and of Taiwan in manufacturing

ICT equipment, alongside with success cases, Germany and Taiwan are

able to have a greater influence in the emerging Asia-Pacific markets

14

Danke

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