The document discusses the transition to smart manufacturing, also called Industry 4.0, in the UK. It notes that the UK lags behind countries like Germany in adoption of industrial robots. Embracing smart manufacturing technologies could boost UK competitiveness and productivity. However, there is a skills gap as many UK companies lack experience with robotics that prevents greater adoption. Bridging this skills gap through training programs and making robots easier to use are seen as key to driving increased adoption of smart manufacturing in the UK.

1. © ABB
| Slide 1
The road to smart manufacturing in
the UK
Mike Wilson, 19 October 2016

2. © ABB
September 10, 2009
Fire & Emergency
Actions on hearing the Fire Alarm (continuous bell tone)
 Evacuate the building via your nearest available fire exit
 Proceed to the Assembly Point and await instructions
 DO NOT stop to collect personal belongings
 DO NOT re-enter the building until authorised to do so
 DO NOT rely on assistance outside normal hours
If you discover a fire
 Operate the nearest fire alarm call point (break glass)
 DO NOT tackle the fire or take personal risks

3. Robotic
Demo
Area
Training
Suite
Workshop
Customer
Support
Solutions
Centre
Office
Fire ExitFire Exits
Fire Exit
Fire Exit
Main
Entrance
Fire ExitFire Exit
(First Floor)
z
First Floor Only
Smoking shelter
Please use main entrance
Auriga House
Fire Assembly
Point in Visitors
Car Park
June 2014
Storage
Building

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| Slide 4
The 4th Industrial Revolution
• Machines;
• Water power;
• Steam power.
1nd Industrial
Revolution www.sciencemuseum.org.uk/
• Electrical power;
• Division of labour;
• Mass production.
http://woolworthsreunited.com/
2nd Industrial
Revolution
3rd Industrial
Revolution
• Automation;
• Robotics;
• PLC.
3rd Industrial
Revolution
www.pressebox.de
4th Industrial
Revolution
• Information and
Communication
Technology (ICT)
‪Source: The Manufacturing Technology Centre

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| Slide 5
Industry 4.0 – The vision
Seamless connectivity
Leveraging information
through intelligence
Smart factories
• Robots & automation
‪Source: The Manufacturing Technology Centre

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| Slide 6October 20, 2016
Achieving the factories of the future
Example – ABB breakers & switches production plant
- 22‪robots‪installed‪at‪ABB’s‪breakers‪and‪
switches plant in Vaasa, Finland
- Automation is used extensively
throughout order to delivery chain
- Automation applied to key areas
including materials procurement, switch
assembly and logistics
- Robots used throughout the process,
handling picking, packing and assembly
- Robot night shift assembles and tests
switches ready for morning – reduces
lead times

7. © ABB
| Slide 7October 20, 2016
ABB breakers & switches production plant
Key benefits
- The reliability of deliveries is now 98.3
percent, up from 94.4 percent
- The average lead time has improved
from ten days to five
- Profitability has nearly doubled in four
years
- Production can be adjusted according to
demand
- The quality of work has improved, and
the number of customer reclamations has
halved
- Sick leave is down 30 percent

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| Slide 8
How do we see the future?
The Internet of Things, Services and People (IoTSP)

9. © ABB
| Slide 9October 20, 2016
The Internet of Things, Services and People
A new age of industrial production
Things
 Intelligent things and smart data
 Includes intelligent machines, devices and systems
 Generate large amounts of data – when analysed, this data allows functions to be controlled,
prepared and automated
Services
 Availability of data enables pre-emptive diagnostics and maintenance
 Predictability increases operational reliability, consistency, cost effectiveness and safety
 Mobile and Cloud based data makes it easier to control and interrogate equipment remotely
People
 Enables organisations to get more from their people
 Human participation will be less about strenuous and dangerous tasks – people will perform added
value functions, e.g. programming, supervision

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| Slide 10
Does the UK need to change?
Mike Wilson, 19 October 2016

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| Slide 11
The world will change
Sirkin, Zinser & Rose – Sept 2015
 Three major trends behind growth of advanced industrial robots:
- Greater cost-effectiveness when compared with human labour
- Technological advances are wiping out barriers to adoption
- Arrival of systems that smaller manufacturers can afford and easily use
 By 2025, the share of tasks performed by robots will rise from a global average of
around 10 percent to about 25 percent across all manufacturing industries
 Wider robotics adoption will boost manufacturing productivity by up to 30 percent
 When costs are sufficiently low, robot installation rates likely to accelerate rapidly,
creating a substantial competitive advantage
 But…….

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| Slide 12
161
142
117
74 71
31
0
20
40
60
80
100
120
140
160
180
Germany Sweden Italy Spain France UK
UK invests far less in robots
Comparison with European countries
Source: IFR World Robotics report – 2015
Robot density in non-automotive sectors
(Number of robots per 10,000 employees)

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| Slide 13
Could Industry 4.0 enhance UK manufacturing?
Enhanced competitiveness and greater level of individualised choice for
customers through:
 Increased flexibility
 Greater product customisation
 Localised manufacturing
 Shorter lead times
Barclays report: Future-proofing UK manufacturing
“Even a moderate increase of £1.24bn in automation investment could raise the
overall value added by the manufacturing sector to the UK economy by £60.5bn”
“Would be expected to amount to 33,000 manufacturing jobs by 2020 and 73,000
jobs by 2025”

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| Slide 14
The challenge
Smart manufacturing needs technology AND people
 Industry 4.0 has the potential to displace many types of demanding, strenuous and dangerous tasks
 BUT: automation will not replace employment
“Complete automation is not realistic. Technology will mainly increase productivity through
physical and digital assistance systems, not the replacement of human labour.” 1
 New roles requiring flexibility, problem solving and customisation
 Industry 4.0 workers will need to combine knowledge of a specific job or process with IT skills
- Basic skills, e.g. using spreadsheets, accessing interfaces, etc
- Advanced skills, e.g. advanced programming, data analysis, etc
- Onus will be on the employee as well as the employer to ensure that skills are kept up to date
‪Ingo Ruhmann, special adviser on IT systems, German Federal Ministry of Education and Research, quoted in
Man and Machine in Industry, Boston Consulting Group

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| Slide 15
The challenge
Move towards smart manufacturing may provide the incentive needed to boost take-up of
robot automation in the UK
 ABB survey in 2013 of 221 UK companies of all sizes
 Aim was to identify the major barriers to robot adoption in the UK
 60% were not currently using robots
 Of these, 29% ruled out an investment in robotic automation in the near future
 58% of these respondents cited lack of experience in robotic automation as the major
reason
 This includes both skills needed to operate and maintain / support robots
ABB survey 2013

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| Slide 16
Driving the change to smart manufacturing
Two main areas need to be addressed:
1. Bridge the robot skills gap
- Give organisations the skills they need to make the most from an investment in
robots
2. Make robots easier to operate, maintain, supervise and own
- Provide support when and where needed to help ensure maximum robot uptime
How do we get UK companies to embrace smart manufacturing?

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| Slide 17
Bridging the skills gap
Dean Phipps, 19 October 2016

18. © ABB
| Slide 18October 20, 2016
How are we helping to bridge the skills gap?
ABB Robotics training centre
• Designed to teach the skills needed to
program, operate and maintain robots
• Around 1000 students attend our courses
every year
• Wide variety of robots and robot systems
represented
• Courses vary in duration and content,
from machine operators through to
advanced programmers

19. © ABB
| Slide 19October 20, 2016
ABB Robotics training centre
2016 upgrade
• £250k investment in new equipment,
including latest generation of robots and
controllers and integrated safety guarding
• Training cells reflect typical guarding
arrangements in industry
• Updated range of robots, including latest
generation IRB1200 and YuMi robots
• Expanded range of courses added to
training programme, including YuMi,
collaborative robot

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| Slide 20
Tour….

21. © ABB
| Slide 21October 20, 2016
Connected Services
Jörg Rommelfanger, Global Product Manager, ABB Robotics Customer Service

22. © ABB
| Slide 22October 20, 2016
Looking back
The world has changed….
The Internet is
just a hype
Bill Gates , 1993

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| Slide 23October 20, 2016
Looking ahead
Increase in connectivity provides more opportunity
 6.4‪billion‪connected‪“things”‪in‪2016
 More than 20 billion by 2020
 5.5 million new things every day
 In 2016, global Internet traffic will exceed
the 1 zettabyte mark (1 trillion GB)
 Traffic growing at 23% per year
 By 2019, traffic will be 64x that of 2005
 Majority of traffic from non-PC devices
Things and Connectivity
Source: Gartner public forecast (Nov. 2015);
Cisco Virtual Networking Index (2014)

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| Slide 24October 20, 2016
The technical revolution has started
(just‪look‪into‪your‪pockets…)
 Within 8 year ~100% market penetration
Two days after pope Johannes Paul II died. His successor Benedikt XVI retired and a
new pope has been elected.
2005 2013
‪Source: www.spiegel.de, Christian Klettner /BASF

25. © ABB
| Slide 25October 20, 2016
Customer Service trends
Connectivity changes the world
50 billion devices connected by 2020
Reactive Proactive
‪Source: Gartner

26. © ABB
| Slide 26October 20, 2016
ABB is a Pioneer in Digitalization
Increasing Uptime, Reliability and Efficiency throughout the Life
Cycle
Creating value for partners and customers
System / Fleet
Management
Production
Optimization
Machine Learning
HTML5 interface
Remote Assistance
Condition Monitoring
All products IoT
enabled
Pioneers in Remote
Services with long
experience
Robot Studio
Digital Engineering
Yesterday – Remote Services Today – Connected Services Tomorrow
ABB‪became‪a‪pioneer‪in‪robot‪Remote‪Services‪already‪in‪2007,​‪
with‪optional‪hardware‪allowing‪for‪significantly‪reduced‪time‪to‪fix​
Service
Intelligence Unit

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| Slide 27
Connected Services
New Product Structure
Up to 25% fewer incidents, 60% faster response times and issue resolution
Connected Services
Condition
Monitoring &
Diagnostics
Backup
Management
Remote
Access
Fleet
Assessment
Asset
Optimization

28. © ABB
| Slide 28October 20, 2016
Connected Services
Secure Connectivity embedded
Connected Services preinstalled in every delivered robot
Additional Remote Service Box Embedded in Controller and Robotware
Internet
GPRS
3G
3G, Wi-Fi optional

29. © ABB
| Slide 29
Connected Services
Condition Monitoring & Diagnostics
Information at your fingertips , proactive and immediate support
 Avoidance of unplanned production stoppages,
typically 1 shift
 Increase of equipment availability
 Fault repair in planned production shutdown
 Fast notification and identification
of failure root cause
 Optimal spare part recommendation
 Typical error detection on fans, power supply unit,
connectivity , storage, software resources, cables
and mechanical components
Benefits

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| Slide 30
Connected Services
Backup Management
Fast recovery in case of trouble
 Fastest controller and production recovery
 Avoidance of new programming
 Correction of unwanted changes in program or
configuration
 Historical data available
 Part of web-based‪User‪Interface‪‚MyRobot‘
Benefits

31. © ABB 2014
Connected Services
Remote Access
 Expert knowledge at any anytime
Benefits
Endcustomer
Integrator ABB
Common support platform
 Get instant access to experts
 Fastest response time to avoid downtime
 Saving travel time and expenses
 Fast identification and remedy the cause of the
error
 Successful troubleshooting in 70% of cases
 Low one-time investment, no license fees,
no additional software
 One time purchase, lifelong use in conjunction with
service agreement
 Condition monitoring and remote access on same
secure platform

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| Slide 32
Connected Services
Fleet Assessment
Giant leap towards Predictive Maintenance
Benefits
Features
 Optimized usage / reduction of the maintenance
budget
 Assistance for maintenance strategy
(refurbishment, replacement, second lifetime)
 Assistance for long term investment planning
 Identification of candidates for further audit
activities or higher service demand
 Limit risk of critical failures in gearbox and motors

33. © ABB
| Slide 33October 20, 2016
Connected Services
Asset Optimization
Highest support level for maximum performance
AGBSN
 Increase Performance and availability of the
system
‒ Avoid unnecessary downtime from specific
motion or stoppage alarms
‒ Minimize warnings & messages for smooth
operation
 Identification of high attention areas to reduce the
risk of failure
 Extend equipment lifetime
 Increase value of maintenance
Lowest downtime Benefits

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| Slide 34October 20, 2016
Connected Services
Offering highlight – Service Intelligence Unit (SIU)
Local
Specialists
 Global monitoring, alarm management , reporting, pre-diagnostics,
remediation, development and management of service intelligence
 Equipped with appropriate tools and resources
 Diagnostics and prognostics based on remote data
 Recommendation of actions towards local ABB units
 Daily support for >4,000 robots in 40 countries
Global Service
Center
Device Data /
Datalake
Global monitoring
Supervise whole fleet,
advice local ABB to act
when relevant
Reporting
Regularly improvement
advisory reports
Proactive support
High-light‪“attention‪
areas”‪and‪advisory

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| Slide 35
What is next?

36. © ABB
| Slide 36October 20, 2016
IoTSP Ecosystem
New ABB Cloud platform
Related External
Data Data Management
Analytics Engine
ABB Cloud
Large Volume
Customers
Analytics Apps /
User Interfaces /
APIs
Advanced Service
Agreements
Field Service
Information and
Consultancy
R & D
Information
Secure Real Time Connection
Services based on Analytics
Intelligent
Engineering
Cloud
MES
ERP
Data
Prediction / Fleet
API

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| Slide 37
Conclusion
Mike Wilson, 19 October 2016

38. © ABB
| Slide 38October 20, 2016
The way forward
Engineering an automation nation
 Current estimated number of robots currently in use in the UK – approximately 16,935
(IFR 2015)
 Estimate around 5,000 active robot users in the UK
 UK manufacturing sector comprises:
 1,200 large UK-based companies (>250 employees)
 Approx. 87,000 SMEs (<250 employees)
 10,000 to 20,000 companies could be considered as potentials for Industry 4.0
technologies
‪

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| Slide 39
The way forward
Grabbing the opportunity
“The companies that do well out of the fourth
industrial revolution will be the ones that recognise
the business opportunities and apply the
technologies in a focused way to drive the benefits.
The winners as always will be the companies with
the best people, vision and determination to
succeed.”
Professor Ken Young, Technology Director, Manufacturing Technology Centre
Quoted‪in‪BDO’s‪Industry‪4.0‪Report,‪June‪2016