From lean to the digital factory – a vision becomes reality · 2020-07-16 · They cover a broad...

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A white paper from Bosch Industry Consulting

From lean to the digital factory – a vision becomes reality

March 2020

bosch-industry-consulting.com

Preface 3

Executive summary 4

Increasing competitiveness and securing 6 production sites with Industry 4.0

Industry 4.0 – from theory to practice 8

Nine success factors for Industry 4.0 10

The road to the connected factory: 13 a systematic approach

Designing transformation: focus on employees 18

Reference projects with other companies 21

Industry 4.0 use cases from Bosch factories 26

Outlook 56

Contents

2

Sven HamannSenior Vice President, Bosch Connected Industry

The future of industrial production begins now! At the same time, con-necting production and logistics presents many companies with major challenges. What is the right approach? How can machines and processes be efficiently digitized in both new and existing production environments? What software and hardware are required? And how can we best support employees on this journey?

This study uses numerous practical examples to show how digitization can be achieved easily and efficiently – from individual projects to the con-nection of entire plants. The basis for successful implementation lies in a holistic approach: many years of experience in manufacturing and soft-ware development paired with consulting, technical assistance, employee qualification and implementation support. We use our expertise from the Bosch Production System (BPS) and from digitization in accordance with our vision of the Factory of the Future.

Above all, this study is intended to motivate: the digitization of manufac-turing and logistics is feasible, and it holds enormous potential for every-one involved. Let’s tap this potential together!

Senior Vice President Bosch Connected Industry

Sven Hamann

Bosch Connected Industry offers software and services for Industry 4.0.

Preface

Preface | 3

Bosch recognized the relevance and potential of Industry 4.0 very early on and was able to accumulate a wealth of experience in internal and external projects – which we now want to share with the readers of this study. We have summarized all essential milestones on Bosch’s Industry 4.0 learning journey: from the motivation that led to the first pilot projects in Bosch factories to the results of the group-wide strategy, which are now reflected in the external market with fully-fledged solutions and compre-hensive consulting services. Bosch Industry Consulting supports the se-lection and implementation of Industry 4.0 with a novel, practice-oriented consulting approach, which is also presented below.

Bosch Industry Consulting is dedicated to accompanying customers on the path to connected production and logistics. This is supported by the experience from numerous successful projects, as well as by the direct access to experts from the Bosch Group, who can answer individual ques-tions in a targeted manner. The most important findings in this study can be summarized as follows:

Executive summary

4

▶ Industry 4.0 has the maximum effect in projects that were previ-ously standardized and streamlined according to lean principles.

▶ Industry 4.0 requires solutions individually tailored to each situation. Therefore, digitization projects should begin with an experience-based, standardized method such as the “Digital Operations Assessment”, which systematically determines the initial situation and the gaps to be filled regarding lean princi-ples and Industry 4.0.

▶ The successful change is not achieved through individual, groundbreaking solutions. It requires the coordinated interaction of different solutions.

▶ Industry 4.0 begins with manageable projects and defined subgoals. This limits costs and resource expenditures and promotes acceptance from managers and staff.

▶ Technological capabilities are important. People, however, are the decisive factor. Systematic change management is therefore a fundamental component of all Industry 4.0 projects – because the transformation can only succeed if management, personnel departments and affected employees are convinced and support-ive.

If these requirements are met, there is nothing more to prevent a suc-cessful implementation. The projects presented in this study also show: Industry 4.0 achieves measurable progress that was not attainable with previous approaches. Connectivity creates transparency, reduces produc-tion costs and enables multi-variant production up to batch size 1. The results of the projects show consistent, significant improvements in im-portant KPIs. Moreover, plants and companies can react faster and more agile to new framework conditions. In a nutshell, Industry 4.0 strengthens competitiveness and secures the future of the respective production.

Executive summary | 5

Industry 4.0 encompasses the connection of people, machines and prod-ucts via information and communication technologies. Intelligent solu-tions for production and logistics enable a systematic production optimi-zation that ultimately improves competitiveness in manufacturing.¹

As a pioneer, Bosch was among the first companies to identify the Internet of Things (IoT) and Industry 4.0 as strategic opportunities to secure the long-term competiveness of the business and of the production plants even in high-wage locations: since January 2012, Bosch has been cooper-ating with other industrial companies, experts in information and com-munication technology, as well as production research in an Industry 4.0 working group, on the question of how the Internet of Things will impact production and logistics in the future.² The starting points are two trends: global competitiveness in high-volume mass production and a strong cus-tomization of products.³

In times of connectivity and internet configurators, established customer relations change. The classic separation between business-to-business (B2B) and business-to-consumer (B2C) is softening. In the future, users will actively influence the products they want to buy. These personalized products lead to a new model: business-to-user (B2U). Mass customiza-tion introduces new requirements to all business areas – from develop-ment through manufacturing and logistics to goods delivery.⁴

At the same time, traditional delivery models with large quantities receive greater competitive pressure. High-wage locations must substantially decrease manufacturing costs through process optimizations. Markets are moving faster, production life cycles are shorter. Consequently, manufacturing companies seek ways to minimize maintenance times and

Increasing competitiveness and securing production sites with Industry 4.0

Markets are moving faster, and produc-tion life cycles are becoming shorter. The goal of manufacturing companies is to minimize main-tenance times and repair costs, while increasing machine availability.

1 See Plattform Industrie 4.0 – Was ist Industrie 4.0?: https://www.plattform-i40.de/I40/Navigation/DE/Industrie40/WasIndustrie40/was-ist-industrie-40.html

2 See Technik fürs Leben – 24 Stunden: Magazin zum Geschäftsbericht 2013, Robert Bosch GmbH, 20143 See Bundesforschungsministerium, Industrie 4.0: https://www.bmbf.de/de/zukunftsprojekt-industrie-4-0-848.html4 See Fraunhofer-Institutszentrum Stuttgart, Mass Personalization – Mit personalisierten Produkten zum Business-to-User (B2U): https://

www.stuttgart.fraunhofer.de/de/studie_b2u.html

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repair costs to achieve higher machine availability with shorter idle times.⁵ Against this background, the Bosch Group has positioned itself as both leading user and leading provider for Industry 4.0. As a leading user, the company has explored the potential of connectivity in its own 270 facto-ries and 700 warehouses worldwide. The practical experiences are used for the further development of the solutions. After successful validation, they are made available to customers in a wide variety of industries.

Bosch thus not only optimizes its own production network, but also acts as a leading supplier in the external market. The company knows that In-dustry 4.0 cannot be achieved by one player alone and is actively seeking cooperation with partners from science, the software industry and me-chanical engineering to establish value creation networks across company boundaries and to achieve a comprehensive implementation of Industry 4.0.

For Bosch, Industry 4.0 is far more than a safety strategy for its own cor-porate group. Rather, digitization is a prerequisite to maintain competitive-ness in high-wage locations. For this reason, Bosch shares its experiences in the introduction and implementation of Industry 4.0 solutions with other businesses to exploit the full potential of connected manufacturing and logistics.

Digitization is a prerequisite for keeping industrial plants in high-wage locations com-petitive. How-ever, Industry 4.0 offers much more potential that can only be exploited together.

5 See Global Digital Operations Study 2018; PwC, 2018

Introduction | 7

Most description and research on Industry 4.0 refers to theoretical considerations and simulations or only considers the topic from the IT per-spective. The present study, however, is based on actual use cases in the plants of the Bosch Group and reference projects in other industrial com-panies. They cover a broad spectrum of manufacturing scenarios, from large-scale mass production for the automotive industry to multi-variant assembly in smallest quantities.

Globally leading management consultancies describe the requirements for successful implementation of connection strategies as follows: “Whoever wants to master Industry 4.0 requires a deep understanding of collabora-tion, engagement of the top management and a clear strategy.”⁶ At Bosch, the top management has addressed Industry 4.0 as a strategic issue that manifests itself in the company’s positioning as leading user and leading provider. Industry 4.0 thus attains a significance comparable to lean phi-losophy.

A representative example of the implementation of Industry 4.0 is the approach for the introduction of RFID technology (Fig. 1). Prerequisites for the implementation are: firstly, a standardized process in the context of the lean principles; secondly, an IT foundation that allows for basic con-nectivity and the exchange of data of different systems. Standardized pro-cesses enable the targeted capture of important information based on the RFID raw data. In turn, KPIs can be generated and monitored in real time. The resulting transparency can be integrated into management routines as a key management tool. Savings potential is fully exploited thanks to the introduced improvement measures. Subsequently, additional connectiv-ity steps, such as independent communication of virtual images or even self-optimizing processes, can be implemented.

The numerous Industry 4.0 projects implemented in Bosch’s own plants cover all steps of the value stream and a wide variety of processes. These use cases serve as pilot projects, which are then expanded to upstream and downstream process steps and rolled out in Bosch’s international production network.

Industry 4.0 – From theory to practice

6 See Dr. Reinhard Geissbauer, PwC Strategy & Germany, Global Head of the Digital Operations Impact Center, in Global Digital Operations Study 2018; PwC, 2018

Requirements for implement-ing Industry 4.0 are standardized lean processesand an IT foun-dation that permits the exchange of data from different systems.

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IntelligenceSelf-optimizing

processes

Example – RFID application for intralogistics

InteractionCommunication between

cyber physical systems

KnowledgeProcessing and connection of information

InformationPreparation of data

RequirementLean / process

RequirementConnectivity

Established RFID infrastructure and implementedproduction system with highly standardized processes

RFID raw data adjusted to generate information

Analysis of RFID data regarding certain target KPIs orfor performing root cause analysis

The Stock management application of the Nexeed Industrial Application System communicates with a milkrun to replenish according to real-time demand

Autonomous intralogistics vehicles carry out supply tasks within a plant and organize processes among each other.

What these applications all have in common? They are customized to the requirements of the respective plants and integrate existing equipment in a brownfield approach. The process is iterative with short control loops. Small steps reduce complexity and lead to the desired results faster.

Fig. 1: The combination of people, connected machines, products and lean principles forms the basis for each Industry 4.0 implementation.

Industry 4.0 implementation | 9

1The journey into connected pro-

duction requires a goal

Nine success factors for Industry 4.0

Nine success factors for Industry 4.0

The plants, process steps and framework conditions of all the projects are very different. And yet we can identify nine commonalities and factors that lead to success.

2Focus on the

people

3Lean is the

engine, Industry 4.0 the

turbocharger

4Only measurable success is actual

success

5Each challenge

requires its own solution

6Industry 4.0 is

not a sprint, but a triathlon

7Network,

customize, roll out

8Compatibility

is the key

9Concepts must

adapt to produc-tion, not to the

paper

10

1 The journey into connected production requires a goal

Management has the first move to formulate a clear strategic direction and to define goals: What business model are we aiming at? What are our competencies? Which conditions and situations are we starting with? Only if these questions are answered can the journey into connected production begin.

2 Focus on the people

However innovative and exciting the technology might be: it is not the technology, but the people that determine success. Staff and manage-ment must recognize the opportunities and be excited about the change. The most important management task is to involve the employees and to take them along on the digital journey by means of systematic change management.

3 Lean is the engine, Industry 4.0 the turbocharger

Lean principles are a requirement for introducing Industry 4.0. The com-bination of lean and Industry 4.0 creates a previously unrealized transpar-ency and opens significant potential for improvement in expenses, quality and agility.

4 Only measurable success is actual success

Industry 4.0 must be economically viable – and based on clearly defined key indicators and the return on investment (ROI). In its own plants, Bosch has already measurably improved the KPIs for inventory, delivery time and productivity. But the implementation of Industry 4.0 has also qualitatively increased agility and simplified variant management up to batch size 1.

Nine success factors | 11

5 Each challenge requires its own solution

Different production steps, different value streams, a wide variety of frame-work conditions: there is not just the one Industry 4.0 standard solution. It is decisive to analyze individual requirements in advance before developing and implementing a tailored solution, while never forgetting that even simple solutions can achieve significant effects.

6 Industry 4.0 is not a sprint, but a triathlon

Innovations and new processes require time to unfold. Digital transfor-mation is no sprint and not a task that management can simply delegate. It affects all business functions and requires patience in all disciplines.

7 Network, customize, roll out

Even customized solutions are based on proven components, modules and processes. Machines and people must connect for Industry 4.0. Employees with a wide variety of functions must create new solutions together by using their respective domain knowledge. These solutions can often be transferred to similar situations with little modification.

8 Compatibility is the key

Connectivity and compatibility are inextricably intertwined. From an IT standpoint, only open standards can ensure a successful implementation. Uniform initial data ensure consistent evaluation and thus harmonize calculation of the relevant KPIs.

9 Concepts must adapt to production, not to the paper

What looks good in a PowerPoint presentation does not necessarily re-flect reality. The real factory world is and remains decisive. What counts here from the beginning is whether the applications improve daily work – because that is the test for acceptance by the staff and for a successful implementation.

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These nine success factors reflect the process knowledge that Bosch has gained in the past years in Industry 4.0 projects. Participating Bosch plants and business units at the beginning of this digital development always faced the question of what significance and what use Industry 4.0 would bring. Clarification of this question points the way to an appropriate target image and the derivation of suitable implementation projects. After a successful pilot project phase, the “Digital Operations Assessment” method was developed to support the right project choice. This method allows a systematic evaluation regarding both lean and Industry 4.0. In this context, lean stands for the conceptual degree of maturity of the produc-tion system, Industry 4.0 for the degree of digital execution and implemen-tation (e.g. paper vs. tablet).

The Digital Operations Assessment methodA simultaneous examination of lean and Industry 4.0 is what makes this evaluation approach new and important. Especially standardized pro-cesses according to the lean principles are a fundamental requirement for the successful implementation of Industry 4.0. The lean theme is of high priority in the evaluation and should prevent Industry 4.0 from just being a waste of time. To facilitate a comprehensive evaluation of a factory or value stream, production and logistics are broken down into their individu-al modules in the evaluation categories of the Digital Operations Assess-ment:

I. Management systemII. Production control III. IntralogisticsIV. Line and workplace design V. QualityVI. Maintenance and serviceVII. Energy managementVIII. IT infrastructure

The road to the connected factory: A systematic approach

A systematic approach | 13

Each of these categories in turn includes multiple subcategories. For example, the category “Intralogistics” includes receiving, commissioning, material supply and dispatch. During the evaluation, experts classify each of these subcategories using a field-tested catalog of criteria on a scale of 1 to 5. The criteria are continuously developed based on assessments in Bosch factories and in external customers’ plants. This makes it possible to have a valid classification of the current degree of maturity.

Fig. 2: Schematic representation of the Digital Operations Assessment

The assessment initially identifies the deviations from the optimal state in each evaluation category (Fig. 2). Subsequently, an additional value stream analysis considers the data flow and media discontinuities (Fig. 3). In this way, the identified potential of the assessment as well as the problem fields can be linked to the daily production run on the shopfloor and prior-itized according to urgency. Hence the results are sure to provide measur-able use and promote value creation in the form of improvement metrics.

Functional assessment

Evaluation categories(based on the Bosch production system)

Shopfloor management system

Production control

Intralogistics

...

Lean Management

Level

Potential for improvement

1 12 23 34 45 5

Industry 4.0

Current maturity level

14

Supplier

Processing

Customer

Assembly Shipping

Support Functions

Throughput time

PPS/SAP

OXOX

Flow

of M

ater

ial

Flow

of I

nfor

mat

ion

Source Make Deliver

Pain points from operations

In the next step, the individual evaluation categories are classified accord-ing to their degree of maturity with respect to lean and Industry 4.0 and prioritized based on management input and value stream analysis. The next step consists in determining the target state for the individual plant. Fig. 4 shows an example of the assignment of the category “Shopfloor Management”: the evaluation indicates potential for improvement in both dimensions: connectivity and lean. To achieve the target state, specific measures are derived and represented in a roadmap. The assessment thus results in concrete fields of action for the plant’s further operative development.

Fig. 3: Exemplary value stream for the identification of pain points

Problems in delivery reliability

High inventory

Pain Points of the operations

PPS/ERP


Validations of this method in plants of Bosch and external customers have shown that Digital Operations Assessment creates the necessary trans-parency to construct a target image — and above all, to implement it. This, in turn, forms the basis for an efficiency-increasing alignment of produc-tion in the context of the long-term business success. The following crite-ria are critical for a successful assessment:

▶ Cross-domain knowledge from all participating disciplines such as IT, production, logistics and change management

▶ A systematic process that tests the requirements, analyzes the actual situation, proposes technical solutions and guides the implementation

▶ Practical implementation experience on shopfloor level and knowledge about good practice in the different areas

Fig. 4: Categorization, prioritization and derivation of a roadmap for individual management fields

Classification of evaluation categories

Development of prioritized topics

Prioritization

Development of prioritized topics

e.g. shopfloor management system

high medium low

Lean

Industry 4.0

3 months 6 months 9 months

Roadmap for improvement

Industry 4.0

Lean

Knowledge database

Data analysis (e.g. identification of trends)

Digital KPI-visualization

Performance measurement

Agenda/ meetingstructure

Shopfloor KPIs

Action plan & problem solving

16

SolutionsLeading user

ProductLeading Provider

Know-HowLeading user

ConsultingLeading Provider

Low Granularity High

i4.0 vision and strategy

Conceptdevelopment

Use casedefinition

Specificationand adaption

Testing andimplementation

Training andintegration

Requirements for technology,

users,processes

The assessment, however, represents only the first step towards Industry 4.0. The standard approach at Bosch for the introduction of connected production (Fig. 5) goes far beyond the initial direction of the assessment. After successful analysis and target definition, it is all about identify-ing specific use cases that contribute to the target state. This results in detailed concepts regarding operation and scale of the solution. These concepts are transferred into the technical specifications needed by the solution providers. Now the physical implementation of a solution in the value stream starts, including the necessary preparation and adaptation.

Because the technical requirements are generally valid, companies can freely choose which supplier they want to work with to provide and imple-ment the solution. From defining the target state through to final commis-sioning of the individual solutions, they also have the possibility to obtain everything from a single source from Bosch. It is also possible to realize an orderly hand over to an external provider or to a partner of Bosch Indus-try Consulting as soon as the technical requirements are specified. This gives the internal plants the same freedom of choice as the external cus-tomers to always opt for the best available solution that most effectively brings the identified use case closer to the target state.

Fig. 5: The Industry 4.0 journey from strategy to implementation

SolutionsLeading user

ProductLeading Provider

Know-HowLeading user

ConsultingLeading Provider

Low Granularity High

i4.0 vision and strategy

Conceptdevelopment

Use casedefinition

Specificationand adaption

Testing andimplementation

Training andintegration

Requirements for technology,

users,processes

After analysis and target defi-nition, it is all about identifying specific use cas-es that contrib-ute to the tar-get state. They result in detailed concepts regard-ing operation and scale of the solution.

From assessment to implementable strategies


Anyone who has already gained experience with Industry 4.0 knows that it goes beyond the implementation of new technologies. The overall objective of Industry 4.0 must be to simplify the daily work for employees and to simultaneously optimize production and logistics with respect to transparency, quality, flexibility and productivity.⁷ To successfully involve staff in this process, a systematic change management approach is need-ed. Early training offers as well as targeted preparation for the new work content are paramount.

Designing the transformation – focus on employees

Change managementChange management encompasses the targeted, early communication with staff about upcoming changes. It accommodates the thoughts and uncertainties of the employees, addresses them and integrates them into the process as important framework conditions.

The employees’ actual concern understandably revolves around their own workplace. Although job profiles will change with Industry 4.0, there will be no empty factories.


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Employees at all levels require new qualifications to perform their tasks in ever more complex connected manufacturing. They must learn to manage the large amount of data and how to draw the appropriate conclusions. On the one hand, it is the responsibility of the human resources depart-ment (HR) to organize continuing education measures. On the other hand, it is important to increase the employees’ readiness for change. This can be done with a systematic change management that includes the employees, brings expectations to a realistic magnitude, takes fears seriously and resolves them through clear perspectives.

Merely factual communication is not enough. It is rather a question of addressing the employees and managers on the psycho-social and mental level. The more profound and complex the changes are, the more import-ant a sensitive communication is. Research, for instance from John P. Kotter, determines that about 70 percent of all change projects fail, the majority already in the initial phase. Two factors are mainly responsible for these high failure rates: opposition to the change among staff and managers, as well as falling back into old patterns as soon as attention diminishes.

Bosch uses Kotter’s 8-step model for change projects related to the introduction of Industry 4.0. It highlights the phases of change management and presents systematics that enable changes to be successfully driven forward. Communication is at the core: it is primarily about convincing the employees of the opportunities of the change. This readiness for change is the prerequisite for accepting new technologies and new methods in daily life. The local situation is decisive and Human Resources and managers must solve each task individually.⁸ Therefore, HR was intensively engaged in all Bosch projects to increase staff’s readiness for change or even to trigger it in the first place.


Integrating the employees into digital transfor-mation success-fully requires a systematic change manage-ment and early offers of further training.

Associates in focus | 19

Qualification and competenciesAnother important aspect of change management is to give the affected staff a perspective. An early offer of individual training measures is not only about knowledge. In the connected work environment, it is especially important to establish a new, more flexible form of collaboration within the company and across the respective divisional boundaries.

Most importantly, the valuable knowledge of individuals must be used and made available to others. At the same time, these individuals must be ready to enter into new territory and use new technologies.

New employees, such as apprentices or young professionals feel that cross-division project work is normal. For them, agile work methods such as development sprints are a part of everyday life. They are comfortable in an environment where testing, failing and trying again is perfectly natural.This work culture is often still unknown to many traditional companies and long-time staff. Hence, management and HR must gently guide these current employees on their way into this new work culture.A very successful example is the implementation of the energy manage-ment project in Bosch’s Homburg plant. From the beginning of the project, the team members practiced working with agile methods. Competencies in these modern workflows were already built up before project start in a targeted manner. Combined with strong support from management, the team achieved a great success on new terrain.

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Optimization approaches and methodologies that were first tested internally have also proven their value externally in numerous customer projects.

Reference projects with other companies

Fig. 6: Bosch Industry Consulting combines teams with cross-domain knowledge for individual customer requirements

For organizational implementation, Bosch Industry Consulting uses a crowd-staffing approach (Fig. 6). Here, the core team accesses the expertise of the whole Bosch group. The project team can be expanded by a large selection of experts from a variety of areas. Customers have direct access to the competence centers and experts of the Bosch group. For example, energy management and the use of RFID technology in the Homburg 1 plant (Bosch Powertrain Solutions), assistance systems for multi-project assembly workstations in Homburg 2 (Bosch Rexroth), ex-pertise for autonomous transport vehicles in the Nuremberg plant (Bosch Powertrain Solutions). Beyond this, there is close contact with the Bosch research campus as well as the central divisions for logistics and manu-facturing planning. This knowledge allows Bosch Industry Consulting to assemble the appropriate project team for each individual need and to advise customers comprehensively and very specifically, as the following examples show.

Bosch crowd staffingBosch Industry Consulting team

Specification

Orientation

Cross-functional

Logistics

Production

Change

IT

ConceptionC

orpo

rate

Divi

sions

Plants

Departments

Leading user

Leading provider

Reference projects | 21

Reference project 1: From the strategy to the measures (OEM)

The focus of the project at a German automotive manufacturer (OEM) was to support the planning for construction of a new assembly plant and to identify the relevant Industry 4.0 use cases. The experts at Bosch Industry Consulting defined a target state for the factory and derived the relevant spheres of activity. These spheres of activity, among them production, en-ergy management and Human Resources, were prioritized in a first step. For production, for example, Industry 4.0 specialists with experience in the Bosch Production System (BPS) identified potentials in the on-site value stream and defined concrete applications in the context of the strategic orientation of the plant. In the second project phase, the areas security, plant and quality management were analyzed, and concrete use cases were again derived.

The result is a technical concept for the individual applications including an evaluation of costs, savings and time requirements. In addition, con-crete measures for implementation were outlined. The OEM received a comprehensive overview of the relevant Industry 4.0 use cases in the dif-ferent areas. In combination with the quantitative evaluation, this resulted in a well-founded basis for decision-making to further refine the planning for the new plant. The customer can be sure to establish a digital factory of the future that sets the benchmark in its sector.

The compre-hensive view of Industry 4.0 use cases and the quantitative eval-uation form the basis for a digi-tal factory of the future that sets the benchmark in its sector.

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Reference project 2: A connected factory from a single source

A greenfield approach was also at the center of a project for a European automotive manufacturer (OEM). However, an already existing factory with comparable structures regarding the value stream potential was investigated first. Based on this potential, Bosch Industry Consulting identified and implemented three important use cases for the new plant:

▶ Shopfloor visualization KPIs are visualized and interlinked from plant manager to staff level to create maximum transparency along the value stream across hierarchies

▶ Energy managementTracking and visualization of the energy usage in the entire plant in-cluding intelligent algorithms to lower the energy costs (e.g. bench-marking the plants or switching off unnecessary loads)

▶ Digital maintenance support in real timeDigitization of the maintenance and repair process on the shopfloor to increase efficiency and system availability, accompanied by the creation of a knowledge database

These three areas were developed in detail through to the technical spec-ifications and iteratively adapted within a test system. The experience and feedback of the actual users could be included in the concept – whereby the additional value for the customer substantially increased. Experi-


Reference project 3: New solutions in an existing landscape

At a tier 1 supplier for the automotive industry, the requirement consisted in connecting production and logistics processes in existing plants. In a preliminary project, Bosch Industry Consulting analyzed the value stream and prioritized five topic areas:

▶ Autonomous transport vehicles in intralogistics ▶ Human-robot collaboration in assembly ▶ Highly flexible assembly line including digital staff support ▶ Factory-wide, sensor-supported energy management ▶ Digitization of the material flow via RFID technology

enced systems architects and application engineers from Bosch guided the implementation in the value stream. The process was carried out by a single provider from the identification of use cases through to the imple-mentation. This made it possible to harmonize and connect the different Bosch solutions from the very beginning – which, in turn, was reflected in a more efficient implementation.

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For the realization of the project, experts from different Bosch plants were called in to conduct a detailed analysis of the individual topics. For example, experts from the Homburg plant supported the sub-projects RFID and energy management, while experts from the Nuremberg plant helped with the autonomous transport vehicles.

Technical concepts and feasibility studies that served as the basis for further decisions were developed in workshops on site with a focus on the cost/benefit ratio, as well as the technical and time requirements for implementation. On this basis, Bosch Industry Consulting identified and implemented the relevant use cases. As a result, the customer now has a highly flexible assembly line for a factory with low volumes and high variance as well as sensor-supported energy management as a central platform for plants worldwide.


To demonstrate the diversity of potential Industry 4.0 projects, we have collected a selection of ten different applications from five plants in Germany and have added further relevant information. Each example contains a plant portrait, a compact overview of the use case and a more detailed description. This represents a small selection of the Industry 4.0 world at Bosch and emphasizes how customized the solutions for different production characteristics can be.

Digital maintenance solutions for manufacturing

PlantBamberg

Systematic production improvement

Intelligent transport management

Digital shopfloor management

Energy management

RFID in logistics

Multi-product lines

3D printing technology

Driverless transport vehicles

Human-robot collaboration

Plant Blaichach

Plant Feuerbach

Plant Homburg

Plant Nuremberg

Detailed description of the Industry 4.0 use case

Industry 4.0 use cases from Bosch factories

Availability in the plant

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

×

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As one of the largest plants in the Bosch Group, the Bamberg plant produces components for gasoline and diesel engines such as high- pressure injection valves, sensor elements, common-rail injectors, nozzles, spark plugs and actuators. The site is the lead plant for 22 plants in 13 countries. Since 2014, Industry 4.0 is represented by many individual projects in Bamberg. The creation of a unified database, a so-called data warehouse, among others, is part of connected manufacturing. The structured collection of all data from machines and products allows for a variety of services and use cases.

The Bamberg plant

Industry 4.0 use cases | 27

Background ▶ Creation and processing of maintenance tasks directly at the machine ▶ Use of mobile devices: integration of documents, images, videos, etc. ▶ Maintenance workers have access to all relevant information

I4.0 use case ▶ Creation of maintenance assignments by the employee

on site (incl. photos, videos etc.) ▶ Automatic availability of replacement parts ▶ Increased efficiency thanks to digital support of the

maintenance process

Lessons learned ▶ Standardized maintenance process as the basis for digitization ▶ Early inclusion of all stakeholders (e.g. management, works committee) ▶ Use of mobile devices enables the identification of additional use

cases

Plant characteristics ▶ Products: components for gasoline and diesel engines such as

high-pressure injection valves, sensor elements, common-rail injec-tors, nozzles, spark plugs and actuators

▶ Technologies: grinding, milling, electrochemical deburring, drilling, eroding, washing, assembling, curing, adhesive bonding, welding, plastic injection, sintering

Benefits

Increased machine availability

Short reaction times

Cost savings

Unit quantity per year

High(Millions)

Low(Thousands)

Use of mobile devices to process maintenance assignments and transmit detailed information for improved fault detection and remedy: integration of staff expertise in the problem-solving process

Digital maintenance for manufacturing

Bamberg plant

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The Nexeed Maintenance Support System (Nexeed MSS) is a mobile main-tenance solution for maintenance processes, troubleshooting, as well as preventive and predictive maintenance developed by Bosch Connected Industry in cooperation with a variety of Bosch plants — among them the Bamberg, Homburg and Feuerbach pilot plants. The goal of the project was to eliminate inefficiencies in the existing maintenance processes and to support the staff.

Prior to the implementation, the employees of the Bamberg plant had comprehensive know-how about their respective machine or line. This knowledge, however, was not stored and shared in a structured manner. The requirements that flowed into the software development process were identified in cross-sectoral work groups ranging from machine oper-ators to production planners and maintenance technicians. The process know-how of the employees paired with their years of experience enabled a comprehensive understanding of the application and an optimization of the workflow.

With the new solution, the employees can monitor manufacturing pro-cesses using a mobile device such as a smartphone or tablet and receive all necessary information about the current status. It is no longer man-datory for staff to be in the office all the time to create the maintenance order. The event can be sent to the Nexeed MSS fully automatically directly from the machine, so that the responsible service technician receives a corresponding notice on his smartphone. Using the fault his-tory, he troubleshoots the disruption on site. He can thus concentrate on solving the problem and saves lots of time on organizing his tasks.

Time-intensive searches for machine documents and instructions are also a thing of the past. By scanning a QR code on the machine, all relevant information such as documents, images or videos are digitally available to the maintenance technicians. Ordering replacement parts can also be accomplished directly at the machine. The maintenance technician receives information about the parts inventory to his mobile device, can reserve them and obtain them from the warehouse in a timely manner. This prevents long downtimes.

Since the rollout, the average interruption time in the Bamberg plant has been reduced by about 20% and the OEE has increased by up to 5%.

Digital maintenance for manufacturing

Since the roll - out, the average interruption time in the Bamberg plant has been reduced by about 20% and the OEE has increased by up to 5%.


The Bosch plant in Blaichach/Immenstadt for Chassis System Control (CC) has a diversified portfolio. In addition to electronic braking systems like ESP/ABS, iBooster and Integrated Power Brake (IPB), systems for use in electric and hybrid vehicles are also produced. In addition, the plant manufactures components for the drive train, such as injection technol-ogy and sensors for engine management and multifunction cameras. As lead plant, Blaichach controls a worldwide production network of eleven plants and over 7,400 connected installations. The data that is generated along the different value streams forms the starting point for all Industry 4.0 projects.

The Blaichach plant

30

The Industry 4.0 software solution Production Performance of the Nexeed Industrial Application System for systematic production improvement supports employees from quality and maintenance management with detailed process and machine information in real time

Background ▶ Aggregation of data from various sources (different machines, tools,

etc.) ▶ Modules and algorithms for standardized analyses ▶ Condition monitoring, live process data analysis, predictive mainte-

nance

I4.0 use casePrevention of tool fractures and high reject rates due to critical joining forces via a three-stage approach:

▶ Monitoring of joining force ▶ Notification of the operator and process experts if limits are exceeded ▶ Implementation of precautionary measures for downtime prevention

Lessons learned ▶ Functions and advantages must be communicated openly ▶ Best-practice advice by expert groups is required ▶ Starter kits support fast learning and simplify implementation

Plant characteristics ▶ Products: electronic brake controls (ABS and ESP), drivetrain compo-

nents, video sensors, new brake systems and multifunctional cameras ▶ Technologies: injection molding, chip removal, assembly, curing,

adhesive bonding, joining processes, washing, eroding


Blaichach plant

Benefits

Full transparency

Increased efficiency

Cost savings


High(Millions)

Low(Thousands)


To systematically improve production sequences, the Bosch plant in Blaichach cyclically evaluates new Industry 4.0 solutions along the pro-duction value stream and includes suitable solutions into its portfolio. Most recently, the application Production Performance from the Nexeed Industrial Application System was added to the portfolio. The application Production Performance can be optimally integrated into the production environment and the underlying IT systems. It supplements existing solu-tions with respect to visualization and evaluation of real-time data. The intuitively operable management interface of the software enables the dif-ferent user groups to monitor the production and process data of different types of machines within an application in real time.

The targeted monitoring of quality-related parameters provides for higher transparency of the manufacturing process and quality. In addition, it supports employees on the line. They receive selected information about deviations through the line management functions (Linecockpit and Lin-estatus) and can concentrate on the general availability of the plant. The system thus supports the daily work in production, maintenance and quality management.

The application supports the Andon boards used for visualizing the output quantities. It enables staff to monitor the cycle times in real time and to identify potential deviations of the target delivery quantities. Line staff are informed quickly and can intervene. This not only shortens reaction times for troubleshooting and simultaneously reduces the number of unplanned maintenance. It also helps in taking preventive measures to proactively avoid errors.

The Production Performance application is, amongst others, suitable for use in exchanging stamping tools: up to now, this was done at fixed prede-termined maintenance intervals. This sometimes led to an excess of the threshold force before the next maintenance interval, which in turn was responsible for tool breakage during production and ultimately a higher reject rate. The Blaichach plant now relies on the software to monitor the force of the stamp, as well as its surface in real time. An array of threshold values has been defined for this force value. If this threshold is reached, the solution automatically sends notifications to the responsible machine operator and process experts and conducts additional actions. The grad-ual approach for threshold value definition makes it possible to create an escalation model based on the criticality of the respective threshold value. The people in charge initiate the appropriate measures that prevent tool breakage.


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As lead plant, Blaichach is committed to achieving economies of scale in the production network with Industry 4.0 solutions. For this reason, Blaic-hach has created a standard that makes it possible to identify and evalu-ate use cases globally throughout all plants. This basic prerequisite has decisively contributed to the successful implementation of the Production Performance application from the Nexeed Industrial Application System and to the acceptance of the new solution.

This standard now enables the plants to implement similar or identical use cases more quickly and to exchange experiences in how they are man-aged. The standard creates a clear understanding of the use cases and provides the necessary transparency in the manufacturing process. The previously developed communication and training concept was also crit-ical for the success of the software. To start with, all participating roles such as process experts, machine operators and maintenance technicians were drawn into the rollout and intensively trained on the line for a real use case.

A “starter kit” specially developed in Blaichach offers comprehensive access to learning videos for properly managing the solution as well as ex-emplary evaluations of possible use cases in the line. A support concept about key users and experts rounds out the use of the Production Perfor-mance application in Blaichach and in the production system.


Around 13,500 employees from 82 different nations work in multiple fields of activity in Stuttgart-Feuerbach. The location, which is steeped in tradition, looks back on more than 100 years of history. Today it is, among others, home to the Powertrain Solutions division. The three market seg-ments Electric Vehicles, Passenger Cars and Commercial Vehicles/Off-Road offer comprehensive solutions and an extensive powertrain product and service portfolio, regardless of fuel type.

The Feuerbach plant

34

Creation of a digital, intelligent material flow across the whole intralogistics value stream: identification of all in-house transport procedures in real time to support logistics staff in optimizing transport processes

Background ▶ Collection of all relevant milkrun information in real time ▶ Dynamic route planning regarding optimization of routes

and vehicle utilization ▶ Demand-based transport instead of fixed timetables

with standardized routes

I4.0 use case ▶ The milkrun operates exclusively on request without fixed timetables ▶ The vehicle fleet can be connected to and controlled by different ERP

systems ▶ The milkrun driver receives the required information via tablet

Lessons learned ▶ Change management enables early integration of the end user ▶ Early, comprehensive process understanding according to the motto

“experience the process yourself” ▶ Comprehensive test phase before productive use

Plant characteristics ▶ Products: high-pressure piston pump, CV injector, diesel components,

exhaust sensors (XS) ▶ Technologies: Drilling, pair grinding, welding, plastic injection

molding


Feuerbach plant (Homburg test plant)

Benefits

Cost savings

Higher quality



High(Millions)

Low(Thousands)


To improve competitiveness, the managers in Feuerbach have further refined their digitization strategy. The process showed that the milkrun trains operating in Feuerbach have a substantial potential for optimiza-tion. To this end, the plant introduced the sub-solution Transport Manage-ment of Nexeed Intralogistics Execution with support from the Homburg pilot plant, which had already gathered comprehensive experience in this use case.

From the warehouse to the point of use, Nexeed Intralogistics Execution (Nexeed IE) provides transparency across the entire material delivery chain and supports the logistics staff in optimizing their processes. Before the changeover, the milkruns ran a fixed route on a specified timetable with individual stations. After the introduction of Transport Management (TM), an application for improved utilization of logistics vehicles, the milkruns are now driven by demand without a fixed schedule. The driver is informed via tablet on the vehicle when and where which material is required. The solution is consistently connected with Transport Manage-ment in the ERP system and delivers information on the status of trans-port orders. It also provides information on the status of the vehicle fleet and transport routes.

At the beginning, a milkrun route with an easy process was selected. In addition, all transport releases run 100 percent via RFID and can therefore be easily digitally mapped. Finally, an extensive testing phase ensured a stable pilot operation. It was an educational experience to learn that parts of the traditional lean philosophy on cycle and rhythm of a factory had to be reconsidered for the transition to a new, demand-driven supply. The actively guided change process on the part of HR was crucial for success. The drivers of the material trains were involved from the be-ginning and had the opportunity of actively helping design the project. On the one hand, this allayed initial fears; on the other hand, motivation was increased.

The project demonstrated an increase of process efficiency of up to 15 percent. The improved utilization significantly reduces the number of milkrun trains and costs. The increased transparency contributes to inventory reduction. Thanks to the intelligent and near real-time transport control, less material must be kept on the lines. The new system also reduces training expenditure for new staff. Through communication with Manufacturing Execution System, it will also be possible to consider not just currently known transports, but also those occurring in the future. Transport Management can simulate whether quality metrics will con-tinue to be achieved based on historical transports by changing defined parameters.


The solution was able to achieve an increase of process efficiency of up to 15%.The improved utilization of the milkrun fleet significantly reduces the number of milkrun trains and costs.

36

Implementation of a digital shopfloor manage-ment system with NEXEED: collection of manufac-turing data for increased value stream transpar-ency; modularized software enhancements for individual production requirements

Background ▶ Homogenized plant standards in the collection of KPIs ▶ Increase of transparency and comparability at factory and

business division levels ▶ Enables feedback in real time with respect to current and

targeted performance

I4.0 use case ▶ Establishment of a unified standard for the whole international

production network (IPN) ▶ Reduction of significant time loss in manual data collection

and preparation

Lessons learned ▶ Definition of a comprehensive system of unified fault codes ▶ Integration and coordination of all relevant divisions ▶ Establishment of standardized use of available data

Plant characteristics ▶ Products: high-pressure pumps; CV injectors; diesel components ▶ Technologies: drilling, pair grinding, welding, plastic injection

molding; coating, heat treatment, assembly


Feuerbach plant

Benefits

Full transparency

Increased productivity

Comparability


High(Millions)

Low(Thousands)


Every business wants to improve its processes continuously and at the immediate place of value creation. It therefore pays off to identify optimi-zation potential within production – because the most important goal is the optimum fulfilment of customer requirements. It is not just the OEE increase that plays an important role. Ensuring quality, efficiency and transparency are equally important. This is also true in the Bosch plant in Feuerbach: the goal consists in integrating a digital shopfloor manage-ment system into the existing production system. Considering existing processes, measures are taken that will lead to a future improvement of the production process:

▶ From manual entry to automated collection and digitization of production data, including reporting for the manufacturing personnel and management

▶ Transparency and visualization of plant-wide real-time data in the IPN (International Production Network) including comparability of the data thanks to a common database

▶ Early recognition of bottlenecks and implementation of early warn-ing systems for fast problem identification and troubleshooting

▶ Optimization of resource usage (waste/reject reduction). ▶ Ensuring quality and traceability

NEXEED from Bosch fulfills all these requirements. The appropriate solution package was employed to implement the defined measures: Shopfloor Management from the Nexeed Industrial Application System together with traceability functions to ensure quality and traceability in the manufacturing process.

The Shopfloor Management bundles and analyzes production and ma-chine data in real time. The integrated planning, visualization and report-ing functions ensure higher production transparency. Thanks to direct rep-resentation of plant data, operators can continuously optimize processes. Bottlenecks can be identified early; targeted countermeasures can be adopted, and results monitored.Thanks to the additional Management View function, line and production managers quickly receive an overview of the production status of their plant and across multiple locations.


38

In addition to Shopfloor Management, the implementation of the trace-ability functions ensures the traceability of fitted components.

Critical processes can be tested, and the components sent to the rework-ing station, where the decision is made whether a component should or can be reworked or not. The next process step after a successful test is also approved. At the final assembly lines, the traceability functions ensure that only flawless parts are packed. In the Feuerbach plant, the software ensures not only high quality, but also a precise traceability: thanks to the storage and documentation of production and process data, it is precisely determined which part was manufactured when with what measured values.

The success of a newly implemented system depends in the first place upon the staff that use it. Using targeted training and change management methods, both the personal and the business advantages of the changes were explained to the employees. The results are impressive: with the implementation of NEXEED, manual efforts for collection and preparation of the necessary data were reduced by almost 90 percent – from 320 to only 34 hours per month. This enormous increase in efficiency is achieved by the now partially automated data collection, as well as by the intuitive and standardized character of the remaining manual tasks.

With the imple-mentation of NEXEED, man-ual efforts for collection and preparation of the necessary data could be re-duced by almost 90%: from 320 to only 34 hours per month.


The Homburg Powertrain Solutions (PS) plant produces several million diesel components each year. It is the lead plant for injectors, high-pres-sure accumulators (rails) and in-line pumps for the international Bosch production network. The plant’s main challenges are the demanding logistics processes, the multiple product variants and higher complexity in the partial value streams, as well as the extensive space that is needed for production. The energy issue offers extremely rewarding potential for optimizing project costs and increasing production safety. Moreover, the logistics processes offer numerous approaches for intelligent Industry 4.0 solutions in mass production.

The Homburg plant of the Drive and Control Technology business division (Bosch Rexroth) produces hydraulic valves, primarily as equipment for tractors and plastic injection-molding machines. Production is charac-terized by high product variability and batch sizes typical for mechanical engineering of up to a maximum of 100 pieces per order. The manufactur-ing portfolio has a very high variation due to the customer structure. The factory typically fulfills orders for German small and medium-sized enter-prises and shows that Industry 4.0 also prevails under these conditions.

The Homburg 1 plant

The Homburg 2 plant

40

Automated tracking of energy-related machine conditions and deviation management: transparency through KPI monitoring supports the continuous improvement process and enables the optimization of peak loads

Background ▶ Highly volatile energy market with an expected increase in energy costs ▶ Significant savings potential because of strong differential sensitivity

in energy usage ▶ Allows for carefully stewarding resources

I4.0 use case ▶ Standardized analysis of energy data to identify variations ▶ Incorporation of the relevant KPIs into the daily routine provides

transparency ▶ Significant improvements through the combination of data

collection and monitoring

Lessons learned ▶ Selection of cost-effective network architectures ▶ Incorporation of all relevant divisions ▶ Standard approach for selecting appropriate sensors

Plant characteristics ▶ Products: common-rail components (rail, injectors, pump parts)

for diesel vehicles (personal vehicles, trucks, off-highway) ▶ Technologies: grinding, milling, ECM, drilling, eroding, as well as

assembly and testing technology

Energy management

Homburg 1 plant

Benefits

Cost savings

Increased transparency

Optimized peak loads


High(Millions)

Low(Thousands)


The plant has the overall responsibility for energy data visualization in the PS business division. The Industry 4.0 use case “Energy Management” was implemented as part of the continuous improvement process. Although en-ergy costs have long been in the background compared to personnel and machine costs, the project shows that an increase in energy efficiency pays off. The Homburg plant has implemented several efficiency projects since 2007 that have reduced energy costs by about 12 million euros in total with a total amortization time of under 1.5 years.

Using the Nexeed Energy Platform, the plant implemented a comprehen-sive and expandable solution for energy controlling. Different sensor data with information from existing databases (MES, ERP, GLT) are combined via the cloud-based platform to evaluate the energy efficiency, recognize deviations and troubleshoot them in a fully or partly automated manner. An essential instrument for increasing energy efficiency is static or moving tar-get values for individual metrics. These automatically defined target values enable a continuous improvement process to realize additional savings. In addition to the energy aspects, the energy platform also monitors informa-tion relevant to quality, processes or maintenance. These synergies lead to significant cost reductions. For example, the energy use of a suction device allows for conclusions on the degree of soiling and can be used for a condition-oriented maintenance of components. The monitoring of the equipment conditions alone helped the Homburg plant to achieve savings of up to 750,000 euros per year.

A team consisting of energy experts, staff from the application divisions and management bundled the necessary knowledge. The project clear-ly showed that Industry 4.0 solutions are not available on the market as standardized and ready-to-use products, but always require a high degree of individualization. Only adaptations to the requirements and framework conditions unlock the full potential. For this reason, individual evaluation classifications had to be created for existing machines to obtain reliable information from the data.

For the employees, the scale of the change was acceptable. Where individ-ual, less valuable processes have been partially or even fully automated, the technical experts now have more time for value-creating and meaning-ful optimization projects. The Bosch Energy Platform helps to realize cost sa-vings, to act in an environmentally exemplary manner and, at the same time, to bring the staff closer to the Industry 4.0 issue.

Energy management

The Homburg plant has implemented several efficiency projects since 2007 that have reduced energy costs by about 12 million euros in total with a total amortiza-tion time of under 1.5 years.

42

Digitized logistics processes with high transparency, reduced inventory and replacement times: traceability of materials and products, improved efficiency with indirect processes

Background ▶ RFID as an industrial standard enables a uniform information

exchange between the plants ▶ RFID as the basis for further Industry 4.0 solutions such as

driverless transport systems or intelligent supermarkets ▶ RFID digitizes goods in the supply chain in order to create the

foundation for the digital twin

i4.0 use case ▶ Comprehensive approach: RFID implementation across

the entire value stream ▶ A wide variety of RFID-based use cases in inventory,

production and shipping

Lessons learned ▶ Specific hardware and software strongly depend upon the

respective use case ▶ Stable processes are the foundation for success ▶ RFID can be used in the entire value stream, not only in intralogistics

Plant characteristics ▶ Products: common-rail components (rail, injectors, pump parts)

for diesel vehicles (personal vehicles, trucks, off-highway) ▶ Technologies: grinding, milling, ECM, drilling, eroding, assembly and

testing technology

RFID in logistics

Homburg 1 plant

Benefits

Full transparency

Cost savings

Reduced inventory


High(Millions)

Low(Thousands)


Since 2008, RFID applications have been running productively in seriesoperation in Bosch’s Homburg plant. No matter whether in new develop-ments with leading manufacturers of RFID components or as co-develop-ers of RFID communication standards – the Homburg competence center for RFID series process is almost always involved. In the RAN project (RFID-based automotive network), standards were created together with leading automotive manufacturers, tier 1 suppliers, software providers, logistics service suppliers and with university support that today serve the whole industrial world.

As a competence center for RFID in the largest business division of Robert Bosch GmbH, Powertrain Solutions, the Homburg plant not only works on improvements internally, but also rolls these out to other factories. Homburg thus supports over 50 international Bosch plants with hardware and software expertise. Even today, the Homburg plant profits from the experiences of the earliest period. With approx. 25% of the RFID reading events in the entire Bosch group, it is undisputedly in first place.

This is primarily because, in addition to classic booking solutions where goods are detected half or fully automatically via so-called RFID gates or RFID readers, connected solutions are also playing an increasing role. De-centralized warehouses in production, so-called intelligent supermarkets, reorder goods fully automatically as they are used. Once the products are delivered to the supermarket, the items log themselves in and are only approved if the products are assigned to the proper lane. This not only supports the employee on site to monitor the complex daily business, but also protects against quality problems due to mixed-up parts.

Early integration of the staff was an essential step in Homburg to support the user with technology on a daily basis. More specifically, this means that software developers and users work together and influence im-provements directly in the development process. This is what happened with the sub-solution Transport Management from Nexeed Intralogistics Execution. It is an assistance software for the drivers of forklift trucks for cyclical transport. Via RFID events that are triggered by, for example, a removal from an intelligent supermarket, a transport order for new merchandise is initiated. The driver now receives this order directly on his tablet, loads his milkrun train from the list and simply drives to the station where the material is actually needed. All of this is done using an algorithm that now also calculates the ideal route with the help of the cur-rent environment (one-way streets, other milkrun trains, etc.). While the drivers no longer must deliver on call or plan on short-term route changes with “their software”, the value-stream

RFID in logistics

44

manager is now spoilt for choice: either he lets his milkrun train stand still until it is full and increases the utilization of his floor vehicles, or he drives short cycles and can reduce his calculated inventories due to the shorter replacement times – the program offers him both possibilities.

The implementation of these and other connected solutions are only pos-sible, however, because a digitization strategy was applied early. Thanks to high reading distances and multiple readings in bulk, RFID offers a great added value. The greatest advantage over other auto-ID solutions remains the high degree of standardization and its broad market reach. Bosch can therefore also help other clients to find the ideal digitization strategy to help lower costs and lay the foundation for connected solu-tions.


Production of six product families and over 200 different products with more than 2,000 compo-nents on a single line: thanks to digital systems, workplaces adapt automatically to the require-ments and capabilities of operators

Background ▶ High product variation because of customer requirements ▶ Maximum flexibility to better react to contract fluctuations ▶ Bosch Production System (Lean) as a foundation for

digitization approaches

I4.0 use case ▶ User identification with subsequent workplace customization ▶ Individualized digital assistance and minimized set-up time

thanks to connectivity ▶ Production of batch size 1 with maximum flexibility ▶ Self-guiding product

Lessons learned ▶ Agile development: fast feedback from users ▶ Holistic thinking: use of synergies with other digital systems

Plant characteristics ▶ Products: hydraulic valves and blocks for agricultural machinery ▶ Technologies: typical assembly processes, e. g. screwing, pressing,

inserting, airtightness checks with a commonly low degree of automation

Multi-product line

Homburg 2 plant

Benefits

Cost savings

Reduced inventory

Increased flexibility


High(Millions)

Low(Thousands)

46

The multi-product line for hydraulic valves is part of the response of the Bosch Rexroth plant to the demands of the future: depending upon the order mix, approximately 80,000 products are manufactured annually on the multi-product line. The spectrum encompasses six different product families with 200 variations. The proportion of manual operations is very high. The employees are supported by sensor and assistance systems.

Increasing flexibility and efficiency (by mastering the high complexity) were central aspects. The project includes a wide variety of digital solu-tions: assistance systems based on RFID for the “self-guided product”; “ultra-wideband” technology for staff localization and recognition as well as different camera technologies for scanning processes and quality control. Moreover, the line was integrated vertically into the MES and can exchange information directly with the ERP system. In addition, the line was linked with further Industry 4.0 solutions. The ActiveCockpit in-creased the transparency of the value stream, and the integrated fault and deviation management accelerated troubleshooting.

The combination of the different possibilities opened up enormous po-tential for improvement. The component inventories at the line dropped by more than 30%, productivity increased by more than 10%. In addition, logistics changeover times were eliminated. Because of its high flexibility, the multi-product line can not only cover short-term demand peaks. It is also very well-suited for new product runs as well as product phase-outs and cuts down on assembly lines that are product-family specific and underutilized. This leads to an improvement in important customer KPIs such as delivery performance.

Valuable experience was collected during the implementation and planning phase. A central point is that lean principles must already be consistently applied before the actual implementation of an Industry 4.0 solution. To digitize waste only results in additional expenses. In accor-dance with the Design Thinking principle, the project was developed responsively through many iteration cycles to gather feedback from the production staff as quickly as possible. Moreover, the early definition of a vision and strategy for Industry 4.0 projects for the plant or the compa-ny is crucial for the future success and for securing the full synergy yield through combination with other digital systems.

Multi-product line

The spectrum of the line en-compasses six different product families with 200 variations. Productivity in-creases of more than 10% and an inventory re-duction of 30% were achieved.


The Nuremberg plant, Powertrain Solutions (PS) business division, is the lead plant for twelve manufacturing locations and a competence center for different manufacturing technologies. The location manufactures dif-ferent products for air control, gasoline direct injection and transmission controller product areas in the automotive sector: throttle devices, high-pressure pumps, pressure-regulator valves for automatic transmissions and components for exhaust management. Several million parts are pro-duced annually. Because of the high piece count and a focus of production characteristics on assembly processes, the automation level in the plant is very high. There are several variants within each product type that lead to a highly developed product variation in the entire production.

The Nuremberg plant

48

Background ▶ Light construction through optimal material use ▶ Improvement of component design through design

freedom and functional integration ▶ Shorter development time

(in particular of prototypes and small series)

I4.0 use case ▶ Fast production of sample components (rapid prototyping) ▶ Fast tool production (rapid tooling) ▶ Fast production of short runs (rapid manufacturing)

Lessons learned ▶ Strong integration and training of employees (e.g. UX design) ▶ Rethinking component development and construction

Plant characteristics ▶ Products: high-pressure pumps, throttle valves, pressure regulators

for automatic transmissions / DNOX ▶ Technologies: plastic injection molding, machinin, winding of copper

coils, welding processes, pressing and caulking operations, assembly processes

Benefits

Cost savings

Faster delivery

Increased agility


High(Millions)

Low(Thousands)

Production of complex geometries with less material than in conventional manufacturing methods: competitive advantages through additive manufacturing and a very fast production process


Nuremberg plant


The initiative started in 2014 to implement a plant strategy for the time af-ter combustion engines. Flexibility and agility in the product development process to shorten the time-to-market and the realization of more com-plex geometries were identified as important competencies. Therefore, the focus in the Nuremberg plant was the increased use of 3D printers in manufacturing. This technology offers four significant advantages:

▶ An increase in design flexibility with respect to more complex geometries

▶ The possibility for functional integration of multiple components into a single component

▶ The ability to fulfill the ever-increasing requirements for light-weight construction

▶ Increased speed in the production of prototypes, small series and tools

The implementation of the 3D printing center entailed numerous challeng-es: after the methodical selection of suitable machinery and equipment, the implementation of the requirements for work safety was particularly challenging because there were no norms or specifications available to provide orientation. Another important step was to introduce the employ-ees to the production technology and to build up the required know-how. The decisive criterion was to create a deep understanding for all process steps along the whole additive manufacturing process chain, which is comprehensively installed in the Nuremberg plant. The process steps include, among others, the design of the required support structures, the simulation of the additive manufacturing process before actual produc-tion, heat treatment as well as manual and mechanical reworking. Today, the project is viewed as a complete success. In addition to the strong network of university partners and the special research area 814 in the region, access to internal Bosch knowledge was also a supporting factor. The majority of the engineers must learn a new way of thinking to ensure a wider use of additive manufacturing processes in the future: additive-ready design. Traditional “subtractive” educated engineers are therefore actively supported in learning additive-ready design as an additional competence. In the future, the plant will continue to develop the use of technology and to implement it in series production for the automotive industry. Today, the Nuremberg plant serves as a Center of Competence for other Bosch factories in additive manufacturing and the industrialization of 3D printing.


50

Background ▶ Fast and easy implementation of first use cases without

modification of the existing factory infrastructure ▶ Robust laser navigation in a busy work environment

(mixed operation, hybrid mode) ▶ Safety laser scanners (performance level D) ▶ Changing and adapting the guidance system during ongoing operation

I4.0 use case ▶ Transport of empty containers from the supermarket or the

machine into the logistics area ▶ Supplying supermarkets close to production with raw material

Lessons learned ▶ Including or involving employees in the change

process proved to be helpful ▶ Increasing transparence, in particular with respect

to the information flow

Plant characteristics ▶ Products: high-pressure piston pumps, throttle valves, pressure

regulators for automatic transmissions / DNOX ▶ Technologies: plastic injection molding, machining, winding of

copper coils, welding, assembly processes, pressing/caulking methods

Benefits

Transparency

Cost savings

Cyclical supply


High(Millions)

Low(Thousands)


Nuremberg plant

Automation of processes to increase transparency and reduce safety stock levels: supporting the employees by minimizing non-cognitive tasks


Automated Guided Vehicles (AGV) serve to support the employees in their daily work. They enable efficiency improvements during routine tasks and increase the profitability of logistics processes. The need for ActiveSh-uttle driverless transport vehicles was derived from the current material supply and the future vision of intralogistics. Under the auspices of the Nuremberg plant, initial functional patterns were created and tested in eight selected Bosch plants. The responsibility for the industrialization of the product was transferred to Bosch Rexroth. The Nuremberg plant and the other Bosch plants continuously send experiences and further requirements to Bosch Rexroth. In this way, the interaction between lead-ing user and leading supplier is realized during the product development process. In the actual use case, more potentials were identified:

▶ The alignment of the existing logistics concept to the smallest space possible using supermarkets close to production and highly cyclical provision of raw material

▶ Short amortization of the equipment based on an attractive price/performance ratio

▶ Implementation of a fleet concept using several AGVs to assure appropriate traffic management

▶ Digitization of the processes and unambiguous localization of the goods to increase transparency and reduce safety stock

Integration into the existing infrastructure is a key component to fully exploit all potentials. In Nuremberg, interfaces to the ERP, MES and logis-tics middleware were set up. The safety requirements in mixed operation with people and autonomous vehicles are strict, so the experiences of the safety engineers were included into the hazard potential detection early on. The workforce’s acceptance of the new technology was achieved by including the employees in the process. Training was initiated early and concepts for successful change management were developed using agile methods. In the Industry 4.0 solution, implicit knowledge should be integrated to prevent deviations from the target process. If this is not possible, an emergency plan for switching to manual processes must be created.


52

The ActiveShuttle can be integrated into existing factory structures quickly and easily. However, robust operations in the material supply are essential for sustainable and error-free use. The use case can be set up by the employees themselves. They are thus able to react flexibly to changes in the plant after initial commissioning. By using a central logistics plat-form, all Industry 4.0 logistics solutions can be integrated. Incorporation into the RFID structure and integration in Nexeed Connected Logistics provide a unified logistics concept within a short timeframe that unifies all solutions in a central middleware and simultaneously respects local circumstances.


Humans and robots work together without protective housing: the robot supports the employees and makes their work easier; human capabilities are combined with the robot’s strengths such as precision, power, speed and repeatability

Background ▶ Multi-stage safety system for close human-machine collaboration ▶ Space-saving automation: no additional safety devices required ▶ Fast amortization, even in temporary use ▶ Fast, mobile and flexible

i4.0 use case ▶ Assembly of a throttle valve shaft into a workpiece carrier ▶ Tool based mounting of a brush holder ▶ Loading measuring machines ▶ Palletizing completely assembled high-pressure pumps

Lessons learned ▶ Strong incorporation and training of employees

(e.g. UX Design, concept) required ▶ Comprehensive test phase before productive use ▶ Inclusion of relevant divisions

Plant characteristics ▶ Products: high-pressure pumps, throttle valves, pressure regulators

for automatic transmissions / DNOX ▶ Technologies: plastic injection molding, machining, winding of

copper coils, welding, assembly processes, pressing/caulking methods


Nuremberg plant

Benefits

Supporting employees

Increased flexibility



High(Millions)

Low(Thousands)

54

The use of collaborative robots allows for closely coordinated cooperation between man and machine. While humans still make the decisions and handle complex tasks such as controlling and monitoring the production or complex assembly operations, monotonous and physically demanding work is handled by the robot. Automation permits companies to increase productivity as well as the speed of the production process. Both amount to significant cost savings. By using a mobile robot system that can be set up quickly and easily at different production locations, the production flexibility can also be significantly increased. The Nuremberg plant imple-mented collaborative robotics in first use cases.

Initially, the value stream was recorded, and different application potentials were identified for the use of collaborative robotics. A total of two applica-tion areas were selected and equipped with different robotics systems:

▶ The first field of application was equipped with four APAS robots ▶ In the second use case, an ABB-YuMi was integrated into the

assembly of brush holders

Before use in the productive area, the system applications were piloted and comprehensively tested in the innovation center. According to feed-back from the employees, the detailed test phase was an essential suc-cess factor. In addition to the technological aspects, the support from management and the early incorporation of the system operators played a decisive role. The intensive training of the operators and the inclusion of their needs and concerns contributed to a broad acceptance within the workforce and thus encouraged the implementation process.

The successful integration of the technologies into the existing infrastruc-ture of the factory does not yet represent the final state of use. In the fol-lowing steps, among others, 3D image recognition and intuitive learning will be pursued in collaborative robotics. The introduction of these tech-nologies will make it possible to use the collaborative robot systems in the quality assurance area in the future.



90 percent lower expenditure for manual data collection, up to 30 percent inventory reduction or increases in productivity of about 15 percent – Industry 4.0 already brings measurable success. What’s more, connected manufacturing and logistics creates deep transparency as a prerequisite for additional improvements in quality and efficiency, even with the small-est batch sizes.

So the question is not whether Industry 4.0 is coming. It is rather about how soon the implementation will happen. Organizations such as the Ger-man Engineering Association (VDMA) and the German Association of the Electrical and Electronics Industry (ZVEI), together with companies like Bosch, have defined concepts and standards. This lays the foundation for multi-producer Industry 4.0 solutions. In a few years, connected industry will already be as obvious for companies as the use of an ERP system and a presence on the Internet.

Bosch has the experience and is happy to share it. The company does not act as a classic consulting company, but as a manufacturing company that itself has successfully implemented many projects. Accordingly, it is not merely theoretical concepts or virtual lines behind the offering of Bosch Industry Consulting. It is about actual experience from numerous use cases in existing value streams – from supplier parts for the automotive industry to industrial technologies and diverse products for the end user.

Bosch Industry Consulting assembles project-specific, overarching teams with specialists from the plants and business areas. This opens access to the comprehensive knowledge of more than 400,000 Bosch employees and to their operational and strategic experience in many functions and ar-eas. Whoever uses this knowledge creates digital transparency in produc-tion and logistics faster and sustainably increases the competitiveness and future security of both company and industry.

Outlook

The question is not whether Industry 4.0 is coming. It is rather about how quickly the conver-sion to greater digital trans-parency — and thus to higher competitive-ness — will happen.

56

Acknowledgments

Bastian BökerHomburg plant

Roland BrehmBamberg plant

Fabian BuckschHomburg plant

Matthias EineckeNuremberg plant

Matthias FontiusFeuerbach plant

Sven GrochockiNuremberg plant

Mark GrötzingerBosch Rexroth

Matthias HeroldBosch Energy and Building Solutions

Gregor KörkelFeuerbach plant

Oliver LeipoldNuremberg plant

Dr. Matthias MöllerHomburg plant

Christian OchsNuremberg plant

Stefan RuhrmannBosch Rexroth

Timm StegentrittHomburg plant

Dr. Michael StrasserBlaichach plant

Dr. Thies Uwe TrappHomburg plant

Acknowledgments | 57

Bosch Industry Consulting is a practice-oriented consultancy with comprehensive expertise in the implementation of Industry 4.0 projects tested in many sectors.

Bosch Industry Consulting accompanies customers in the digital transformation of their entire val-ue streams. The consulting unit offers advice and support for production and logistics from a single source. Using automation and networking, customers can thus design their processes to be more transparent and more efficient.

Additional information can be found at www.bosch-industry-consulting.com.

Robert Bosch Manufacturing Solutions GmbHPO Box 30 02 2070442 StuttgartGERMANY+49 711 811 – 0www.bosch-industry-consulting.com

© Robert Bosch Manufacturing Solutions GmbHMarch 2020 | Printed in GermanyBosch and the device mark are registered trademarks of Robert Bosch GmbH, Germany. This document is a schematic representation and not an operating manual. Occasional differences of the images from the operation manual are possible. Please refer to the operating manual regarding the proper use of the system.

About Bosch Industry Consulting

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