INDUSTRY 4.

0
MERGING INTERNET AND FACTORIES

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 A STORY OF
INDUSTRIAL
REVOLUTIONS

//2
3 MAJOR INDUSTRIAL REVOLUTIONS

I II III

1800 1890-1910 1960-1970

Hydropower and fossil Electric energy Telecommunications

Mass Production Programmable Logic

# Steam machine (1803) #Electricity (1891) # Programmable Logic (1969)

//3
 THE 4TH
INDUSTRIAL
REVOLUTION?

//4
INDUSTRY 4.0
WHAT IS IT?
The concept of “Industry 4.0” comes from Germany. It defines a new way of organizing factories,
also called smart factories, aiming to better serve costumers through greater flexibility of
production and resource optimization.

KEY PRINCIPLES OF THE FACTORY 4.0

THE FACTORY BECOMES SIMULATION TOOLS AND AN EFFICIENT FACTORY

DIGITAL AND FLEXIBLE POWERFULL DATA REGARDING ENERGY AND
PROCESSING RESOURCES

It is characterized by continuous
and instantaneous communication
between the various workstations
and tools, integrated into the
supply and production lines.
The collection and analysis of data
produced throughout the assembly
line can be used for modeling and
testing. This is of great value for
workers who wish to get
familiarized with industrial tools
and processes.
Industry 4.0 is energy efficient by
using communication networks to
exchange information instantly and
continuously to coordinate needs
and availability.

//5
INDUSTRY 4.0
THE LEVERS USED FOR ITS PROLIFERATION

CONNECTED SENSORS BIG DATA PREDICTIVE ANALYSIS

//6
INDUSTRY 4.0
KEY FIGURES

By 2020, more than 1 BILLION CONNECTED OBJECTS

will equip factories (237M today). This represents an ANNUAL
GROWTH OF MORE THAN 55%

Sources : BI Intelligence 2015, GE 2014

IN THE USA, INDUSTRIAL IOT COULD

IMPROVE PRODUCTIVITY BY 40% UNTIL 2035 //7
 INDUSTRY 4.0
WHAT ARE THE BENEFITS?

short term long term

1 2 3 4

Operational New products and Outcome economy Autonomous, pull

efficiency services economy
•  Pay-per-outcome
•  Asset utilization •  Pay-per-use •  New connected •  Continuous demand-
•  Operational cost •  Software-based services ecosystems sensing
reduction •  Data monetization •  Platform-enabled •  End-to-end automation
•  Worker productivity marketplace •  Resource optimization &
waste reduction

Sources : World Economic Forum 2015

FACTORIES OF THE FUTURE COMBINE MASS PRODUCTION EFFICIENCY WITH CUSTOM

MANUFACTURING (ON DEMAND) AND OPTIMIZE THE SUPPLY CHAIN IN REAL TIME
//8
 EXAMPLE :
FACTORY 4.0
BY SIEMENS

//9
FACTORY 4.0 BY SIEMENS

“
When you look at Industry 4.0, it’s based on a logic of
cyber-physical systems (i.e. connected systems). That
is to say you’ve got autocratic, independently
operating systems, which self-optimize,
communicate with each other and, ultimately,
optimize production as a whole

ECKARD EBERLE
CEO Process Automation @Siemens

// 10
FACTORY 4.0 BY SIEMENS

// 11
 FACTORY 4.0 BY SIEMENS
LIQUID PACKAGING PLANT (SIEMENS LABS)

“
1. A bottle with an RFID tag
comes on the packaging line
2. The filling machine reads 3. Similarly for the type of 4. And for the label to stick
the RFID tag and detects spout and screw. on the bottle
which liquid (among many)
corresponds to the bottle

A PRODUCTION LINE WHICH IS CONNECTED, MODULAR SMART AND SELF-ADAPTABLE

YET DOES NOT HAVE MUCH MORE EMBEDDED TECHNOLOGY COMPARED TO A
STANDARD PRODUCTION LINE // 12
 SOME
CASE STUDIES

//13
 INDUSTRY 4.0
WHAT ARE THE BENEFITS?

short term long-terme

1 2 3 4

Operational Nouveaux produits Economie de la Economie autonome

efficiency et services performance et dynamique

•  Asset utilization •  Business model du •  Business model du Pay- •  Analyse et modélisation

•  Operational cost
reduction
•  Worker productivity
product-as-a-service ou per-outcome de la demande en
pay-per-use •  Création de nouveaux continu et alignement en
•  Création de nouveaux écosystèmes connectés conséquence de la
services basés sur du (partenaires industriels) chaine de production
software (analyse de grâce à une
données, algorithmes) automatisation complète
•  Valorisation /
monétisation des datas

Sources : World Economic Forum 2015 //14

OPERATIONAL EFFICIENCY
WATER MANAGEMENT

Thames Water
The largest water services provider and
wastewater treatment in the UK, uses MEMS
sensors in all its facilities, and analyses in real
time all collected data.

RESULTS
This allows to anticipate equipment failures
and respond more quickly to critical situations,
such as leaks or critical weather events.
In 2 years, Thames Water was able to see a
TOTEX (CAPEX + OPEX) decrease of 15 to 20%.

//15
OPERATIONAL EFFICIENCY
PREDICTIVE MAINTENANCE

ThyssenKrupp
The company operates more than 1.1 million
elevators worldwide. In 2013, a partnership
was launched with Microsoft (Azure IoT
service) in order to remotely obtain and store
several measurements and settings for their
lifts (engine temperature, shaft alignment,
speed, door functionality, etc.).

RESULTS
All these parameters analyzed in real time
using algorithms help anticipate, operations
related to maintenance and to minimize
breakdowns.

//16
OPERATIONAL EFFICIENCY
THE COBOTS (COWORKING ROBOTS)

Airbus introduced in 2014 on its Puerto Real

plant the first cobot operating on an assembly
line for the A380. A gradual implementation of
cobots allows workers to focus on higher
value-added tasks that require dexterity and
inventiveness.

RESULTS
An efficiency leap in aircraft assembly with:
•  50% decrease in production cost and
•  85% decrease of the worker’s downtime
when working with robots.

//17
OPERATIONAL EFFICIENCY
PREDICTIVE MAINTENANCE

Apache is a company that operates oil and

gas fields in several countries.
Apache uses sensors to collect data that will:
•  predict failures
•  minimize production losses

RESULTS
•  An increase in efficiency of 1% for
Apache pumps (this would generate an
additional production of half a million
barrels / day for the entire oil industry )

//18
 INDUSTRY 4.0
WHAT ARE THE BENEFITS?

court-terme long-terme
1 2 3 4

Efficacité New products and Economie de la Economie autonome

opérationnelle services performance et dynamique

•  Optimiser l’utilisation des •  Pay-per-use •  Business model du Pay- •  Analyse et modélisation

ressources (matière,
machines, humain)
•  Diminuer les coûts
d’exploitation
•  Améliorer le productivité
des employés
•  Software-based services per-outcome
•  Data monetization •  Création de nouveaux
écosystèmes connectés
(partenaires industriels)
de la demande en
continu et alignement en
conséquence de la
chaine de production
grâce à une
automatisation complète

Sources : World Economic Forum 2015 //19

NEW PRODUCTS AND SERVICES
AUGMENTED MAINTENANCE

In October 2013, Volkswagen developed an

application for tablets and smartphones
named MARTA (Mobile Augmented Reality
Technical Assistance).
Thanks to data collected by onboard
electronics, the application allows:
•  Instant identification of a problem via a
mixture of real images and virtual
information
•  Help repair with technical explanations
and video simulations for each step

RESULTS
It becomes impossible for a technician not to
know where the problem relies. MARTA
simplifies vehicle maintenance by analyzing
information provided by onboard electronics.

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 INDUSTRY 4.0
WHAT BENEFITS?

court-terme long-terme
1 2 3 4

Efficacité Nouveaux produits Outcome economy Economie autonome

opérationnelle
•  Optimiser l’utilisation des
ressources (matière,
machines, humain)
•  Diminuer les coûts
d’exploitation
•  Améliorer le productivité
des employés
et services et dynamique
•  Pay-per-outcome
•  Business model du •  New connected •  Analyse et modélisation
product-as-a-service ou ecosystems de la demande en
pay-per-use •  Platform-enabled continu et alignement en
•  Création de nouveaux marketplace conséquence de la
services basés sur du chaine de production
software (analyse de grâce à une
données, algorithmes) automatisation complète
•  Valorisation /
monétisation des datas

Sources : World Economic Forum 2015 //21

OUTCOME ECONOMY
MAXIMIZE THE PRODUCTION OF
RENEWABLE ENERGY

General Electric launched its Wind Power Up

platform. By placing sensors on wind turbines
(existing or new) and with accurate weather
data, GE is now able to optimize in real time
the use of turbines, power generation and
maintenance through analysis of collected
data.
With E.ON (Climate and Renewables in North
America), GE is compensated by taking a
percentage of the incremental income due to
improved power generation.

RESULTS
•  A 5 to 20% growth of renewable energy
produced by E.ON wind farms.

//22
OUTCOME ECONOMY
HOW TO SELL FLIGHT TIME

Rolls-Royce provides a range of services

dedicated to predictive maintenance for its jet
engines with a set of remote analysis tools
based on sensors.
This increases engine reliability and limits
unexpected time spent on the ground for
airline companies (i.e. maximizes flight time
and generates more specific estimates and
predictions).
With the TotalCare program, Rolls-Royce is
able to reimburse airline companies for losses
due to unexpected outages.

RESULTS
92% of Trent engines (latest generation) have
a TotalCare maintenance program.

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OUTCOME ECONOMY
BENEFITS FROM HIGH
PERFORMANCE TIRES

With EFFIFUEL, MICHELIN solutions promises

to lower fuel consumption for carriers.
By analyzing transportation data and
information of a truck fleet’s load, Michelin is
able to predict fuel economy targets (with the
use of new tires and an eco-driving training).  
If targets are not met, Michelin commits to
offer a refund in proportion to the expenses
incurred.

RESULTS
•  1,5 l/100km saved with an even
higher potential gain

//24
 INDUSTRY 4.0
WHAT ARE THE BENEFITS?

court-terme long term

1 2 3 4

Efficacité Nouveaux produits Economie de la Autonomous, pull

opérationnelle et services performance economy

•  Optimiser l’utilisation des
ressources (matière,
machines, humain)
•  Diminuer les coûts
d’exploitation
•  Améliorer le productivité
des employés
•  Business model du •  Business model du Pay- •  Continuous demand-
product-as-a-service ou per-outcome sensing
pay-per-use •  Création de nouveaux •  End-to-end automation
•  Création de nouveaux écosystèmes connectés •  Resource optimization &
services basés sur du (partenaires industriels) waste reduction
software (analyse de
données, algoritmes)
•  Valorisation /
monétisation des datas

Sources : World Economic Forum 2015 //25

AUTONOMOUS, PULL ECONOMY
DIGITALIZATION OF FACTORIES

AREVA launched the Comurhex 2 project,

which aims to create an uranium conversion
site, used before the enrichment steps.
A 3D modeling of the building facilitated the
construction by:
•  Optimization of space management
•  Detection of possible conflicts between
different types of equipment
•  Better visualization of technical systems
compared to a 2D plan
•  Better on site management of human
resources

RESULTS
•  Process optimization for the project and
the company
•  Time and money saved
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AUTONOMOUS, PULL ECONOMY
FACTORY MANAGEMENT

General Electric, develops the Predix cloud

platform, a Cloud-as-a-Service platform aimed
at industries where issues of security and
compliance are very important. 
Application development on this platform
started with GE and will eventually open
following an on-demand pricing model.
The development of analytics services will
enable GE to provide reporting applications,
maintenance and technology optimization
services to its customers.

RESULTS
GE has the ambition to become one of the top
ten software players by 2020, a sector where it
already boasts a turnover of $ 6 billion.

//27
Contacts
Elodie Bongrain, director at Objet by FABERNOVEL
elodie.bongrain@fabernovel.com

Thomas Borie, Project Manager

thomas.borie@fabernovel.com

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