1. Augmented Reality & Virtual Reality in Manufacturing
The future of Connected Manufacturing
Presented By:
Team - Iron & Steel
Members – Chetan Anand &
Pranay Sarkar

2. 33% 32% 31%
25%
20% 17% 13%
0%
10%
20%
30%
40%
Percentage of companies by industry
investing in AR/VR technology
Augmented Reality and Virtual Reality in Manufacturing
Executive SummaryExecutive Summary
32.0%
26.2%
22.3%
19.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Where are manufacturers deploying
AR/VR technology?
80
100
120
2008 2009 2010 2011 2012 2013 2014
Telecom Price Index
Telecom Price Index
2
• The Adoption Rate of Augmented Reality and Virtual Reality (AR/VR) in
the Manufacturing Industry : This technology is getting adopted globally
and continues to demonstrate improvements in productivity, product
development and supply-chain management.
•The VR/AR fence-sitters: Meanwhile, what’s holding back some
manufacturers from jumping into the VR/AR world? According to PwC’s
survey, about one-third of respondents not adopting say they are sitting on
the fence because they have “yet to identify a practical application”,
followed by those who cite prohibitive costs (20%) and another 31% who
believe the technology is not “ready for prime time.
• Use Cases of Best Practices in Manufacturing Industry:
- Visual support for product development
- Facilitation of international teamwork
- Easier maintenance of complex products
• Is this the best time for Tata Steel to adopt this technology?
Yes, this is the best time to adopt this technology because of the
following reasons:
- Pressure to lower production costs due to the onslaught of the Chinese
Steel Players.
- The technology is starting to find its place in steel plants like
Kazakhstan Steel Plant and it has already contributed to its production
efficiency.
- International Universities have done the research and groundwork
- The support infrastructure costs like the telecom prices are at an all
time low.

3. AugmentedReality/VirtualReality in Industry4.0
Industry 4.0
Levers
Value Drivers
0
0.5
1
1.5
2
2.5
3
2013 2014 2015 2016 2017 2018 2019 2020
Augmented reality market, EUR billion
North America Western Europe
24%
22% 23%
19% 18%
0%
5%
10%
15%
20%
25%
30%
Asia Africa Latin
America
Europe North
America
Percentage of companies by region investing in
AR/VR (sensor) technology
Source: Deustche Bank Survey & Analysis
Source: Deustche Bank Survey & Analysis
33% 32% 31%
25%
20%
17%
13%
0%
5%
10%
15%
20%
25%
30%
35%
Industry wise investment in AR/VR
Augmented Reality
• The global market for augmented reality is expected to increase from
current EUR 500 million in 2013 to EUR 7.5 billion by 2020, but the share of
western Europe which houses Tata Steel’s plant will be merely 1.7 EUR
Billion
Source: Deustche Bank Survey & Analysis
Source:
Mckinsey
3

4. No plans
to Adopt
36%
Plan to adopt in the next year
10%
Not yet adopted 23%
Currently adopting
9%
Adoption Rate ofAR/VR
Augmented Reality and Virtual Reality in Manufacturing
IncreasingComplexity
…..2012
• Volkswagon
• Boeing
2014-15 2016……
• Product design and development
• Virtual assembly/improved process design
• Maintenance, repair or operation of equipment
• Data and information access
• Remote collaboration
• Wearable AR
• Supply chain collaboration/communications
• Ubiquitous tracking and system portability
• Real-time depth & surrounding sensing
• Interface and visualization paradigms replace WIMP std.
• Photorealistic and advanced rendering
• DHL
• ArcelorMittal
• Dassault
• Boeing
• Airbus
•Kazakhstan Steel Plant
•BMW
•AUDI
•Volkswagen
•Pirelli
•HP
• AR replaces service manuals
in heavy industries
• Mobile augmented reality
Technical Assistance
0
1000
2000
3000
4000
5000
6000
2010 2011 2012 2013 2014 2015 2016
Augmented Reality Applications
Market USD Million $
Source: PwC Survey & Analysis
Plan to adopt within
next 3 yrs 18%
Source: PwC Survey & Analysis
No. of Respondents : 120
Adoption Of Augmented Reality Technology
AR/VR technology has been increasingly adopted by
manufacturers and other companies in the last 5-6 years
Time 
No.ofApps
4

5. Adoption Rate ofAR/VR (cont.)
Other Hurdles in Broader Adoption:
•Technical - User-friendly operation/control Visualisation in the line of
sight Lasting battery performance Sufficient computing power
•Political/regulatory : Reliable data protection, Dependable, high-
performance network infrastructure
• Economic: Short lead times between research and product readiness
Do not
believe the
technology
is ready
for “prime
time”
31%
Lack the
technologic
al
skills to
implement
14%
Possible
benefits
do not justify
the required
time/effort
16%
Cost is
prohibitive
20%
See no
practical
application
at
this time
19%
Extremely
important
4%
Very
Important
18%
Moderately
Important
50%
Not
Important
29%
Importance of VR in manufacturing in next 3 years
Plan to
Adopt in the
Next Year
8% Plan to
Adopt within
the Next 3
Years
16%
Unsure
31%
Currently
Adopting
13%
No plans to
Adopt
32%
Use of any type of virtual reality technology (e.g., fully
immersive experience such as a CAVE system)
Adoption Hurdles
Survey Conducted to Gauge the Attitude of Manufacturing Companies
Towards Adoption of AR/VR Technology :
Out of 130 odd companies surveys most of them agreed to the
importance of the AR/VR technology in manufacturing process
Some of them have already adopted virtual reality technology
A small portion of the companies felt that it was not useful to adopt
citing reasons like not ready, costs more than benefits etc.
Source: PwC & Deloitte survey on augmented reality
Source: PwC & Deloitte survey on augmented reality
Source: PwC & Deloitte survey on augmented reality
No. of Respondents :130 No. of Respondents :130
No. of Respondents :130 5

6. Use Case / Best Practices in Manufacturing
Manufacturing companies which have adopted AR/VR as part of industry 4.0 implementation have done so under 4 major categories
Vertical Networking
Of smart production systems
Horizontal Integration
via new generation of value chain
networks
Through Engineering
across the entire value chain
Exponential Technology
Use in acceleration of productivity
Use Case: Design & Prototyping
• Permits the designers to preview
new designs and detect flaws
• Allows comparision with existing
products, modification,optimisation
Industry: Automotive & heavy
equipment, electronics
KPIs: Cost reduction, lesser time to
market, defuse challenges before
they arise
Use Case: Assembly line and
spatial Optimization
• Augments workflows and
optimizes the equipment
positioning and spatial layouts
• Helps in rapid assessment of
feasibility of deploying assets
Industry: aerospace tech.,
automotive & heavy equipment,
electronics
KPIs: reduces errors , delay in
assembly lines
Use Case: Cross- functional input
Digital models are virtually tested,
analysed and simulated with tools
like FEA and CFD
Industry: automotive & heavy
equipment, electronics
KPIs: Rapid iterative design cycles
and ultimately great products.
Helps to get cross-functional team
input, including potential clients
Use Case: Inspection
• Assess quality of goods produced in
manufacturing processes
• Assess the condition of assets as
part of maintenance
• Use of graphic overlays to compare
the optimal state of the objects
• Based on mobile platforms
• use of highly precise measurements
through fixed position and laser
measurement systems
Industry: Automotive & heavy
equipment, electronics, defense,
aerospace, agriculture,
telecommunications, logistics, power
& automation, energy & resource,
naval engineering
KPIs: Early detection of defects, latest
models available for comparisons,
specs’ discrepancies can be avoided
Use Case: Training & Field Service
• On the job training, using existing
tech repositories when working on
more obscure, complicated tech
• Mobile technology used. fixed
screens and touch screen facilities,
head mounted displays with 2 way
communications
• connectivity to repo and parts
Industry: Automotive & heavy
equipment, electronics, telecomm.
KPIs: Rapid and consistent access,
augments key workflows, procedures
and conceptual information
Use Case: Functional nano-
materials and nanosensors
•Used in production control
systems
•Makes quality management
more efficient
•Allows the production of next
generation robots that work
hand-in-hand with humans
Industry: automotive & heavy
equipment, electronics
KPIs: Improvements in quality
assurance
Use Case: Flying robots /drones
• to make inventories of
warehouse stock level
• Deliver spare parts at any time
of day and night
• These applications will become
routines in future factories
Industry: automotive & heavy
equipment, electronics
KPIs: more efficient solutions
24X7
Use Case: Monitoring
• Monitors machine health,
operation safety parameters,
• Provides data visualization
6

7. Use Case / Best Practices (cont.)
Vertical Networking
Of smart production systems
Horizontal Integration
via new generation of value chain
networks
Through Engineering
across the entire value chain
Use Case: Work Order Creation
• Planning scope, scheduling of
resources, identify issues, using
inventory details
• Real time performance histories
and service records
• The user interface for work order
creation can be speech, gesture
and eye-gaze or touch screen using
enterprise DB, workflow info.
Industry: Automotive & heavy
equipment, electronics
KPIs: Decreases response times,
increase safety and efficiency
Use Case: Damage Assessment & Repair:
• Pinpoint the source of damage
• Estimation of damage using historical info of service
records and performance parameters
• Inventory description, Mobile AR devices utilizing ERP
Industry: Automotive & heavy equipment, electronics,
defence, steel, mining
KPIs: Time reduction in assessment of damages
Use Case: Shutdown Management
• Unforeseeable and therefore not predefined
• Complete work breakdown structure with only
few variables
• Equipment data and the predefined master-work
packages are available on the mobile device
Industry: Automotive & Heavy equipment
KPIs: Avoids endangering the restart of production,
while not exceeding the planned costs
Use Case: Monitoring (cont.)
• Delivers control-room–level data to workers on the
shop floor
• Reporting transforms into increasingly interactive
statistics – like allowing a floor manager to see the
daily progress of factory projects through voice-
overs,stats KPIs: allow quick solutions to downtime
Use Case: Warehousing
• manages the sorting, storing and retrieval
process using codes and graphic overlays
• AR-assisted warehouse picking can be speech
recognition, gesture recognition, eye-gaze
recognition
• Integration of AR-assisted warehouse picking
with parts and inventory databases, workflow and
customer management technologies
Industry: Automotive & heavy equipment,
electronics, steel and aluminum
KPIs: Increasing safety of workers , reduces human
errors, decreases warehousing costs substantially
helps steel industry in store management
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Usage of AR/VR in various fields in manufacturing industries
Source : PwC survey & analysis
No. Of Respondents : 120 industries
7

8. Augmented Reality and Virtual Reality in Manufacturing
Strategy - Collaborate Capitalize Commercialize
2016 2020 2025
Decreasing
Manufacturingcosts
U S E G L O B A L K N O W L E D G E E C O N O M Y
I M P L E M E N T A R / V R I N P R O C E S S E S
G E T A R / V R S K I L L S / T O O L S I N - H O U S E
E N C O U R A G E
V E N D O R S T O
U S E A R / V R
T a c t i c a l
C o l l a b o r a t i o n s
• Universities and their Research Labs
- License university-owned patents
• Leverage existing University Tie-ups
- University of Sheffield's’ AMRC
• AR hardware manufacturers
- Personal devices, smart phones
• AR software companies - Software
development kits
• Leading AR software developers
- Mobile operating system with AR
C o l l a b o r a t e
C o m m e r c i a l i z e
C a p i t a l i z e
M a j o r
I m p l e m e n t a t i o n s
• Go for phased adoption of AR/VR
- Phase 1 – Implement AR in maintenance
and repair (and other non critical processes)
- Phase 2 – Implementation in product
development and designing (and other critical
processes)
• Vertical Networking: Focus on sharing of
information through IET and smart networks.
Implement 6Cs
• Horizontal Integration: Real time reaction to
downtimes, damages, stock
• Through Engineering: Integrated flexibility in
global logistics, improves traceability,
accountability and improves the value chain
D e v e l o p A R / V R
S k i l l s I n - h o u s e
• Economies of Scale : Application
of Moore’s Law, R&D focus, develop
competencies, learning from niche
development and learning
• Corporate Venturing : Invest in
new trends , “look around the next
corner”
• The learning organisation: The
use and integration of exponential
tech. needs to gradual.
• Emerge as new Leader : After
learning establish yourself as the
new segment leader
Research Publications in AR/VR area country wise
By Universities
In ‘000s
8

9. AR Packaging
14%
AR/VR
Software
41%
AR/VR
Hardware
28%
AR/VR
Consulting
17%
Collaborations
0
0.5
1
1.5
2
2.5
3
3.5
Publications of AR/VR by different Universities
(in '000)
Augmented Reality and Virtual Reality in Manufacturing
Evolution of Corporate R&D: Tata Steel can collaborate with
universities to international universities in Germany and China to
gain knowledge about AR/VR technology.
Research Progress and Maturity: Number of research papers
published in AR/VR by the academic world has been constant
increasing over the last 5 years.
Create Joint Steering groups: Comprising company executives and
senior academicians
Avoid universities with inflexible approach to Intellectual Property
Tata Steel can also leverage its existing university tie-ups like the
collaboration with University of Sheffield’s (AMRC). It should arrive
at framework agreement.
Technology Providers : Since AR/VR technology is used in various
manufacturing functions as seen in the graph, Tata Steel should first
collaborate with the technology providers to implement AR/VR in
the existing processes.
Types of Technology Providers : Leading technology providers
come in to broad categories – AR Packaging Segment Companies &
Only AR Hardware or Only AR Software companies.
Industrial AR Packaging Segment Companies: Daqri, Metaio , Sony
Leading AR Hardware Companies : Google, Samsung , Sony
Leading AR Software Companies: Metaio, Total Immersion, NGrain
Different types of
firms working in
the AR/VR area
Source: PereyConsulting
Data of 36 major companies working in the AR/VR area
9

10. Augmented Reality and Virtual Reality in Manufacturing
Thought Leaders - Potential Partners
IndustrialCollaboratorsAcademicCollaborators
Flagship Product/Research Implementation Major Clients/ Tie-up Potential Use in Tata Steel
• Smart Helmet • Facilitation of International Team
• Easier maintenance of complex
products
• Kazakhstan Steel Plant
• Vinci Energies
• Hyperloop
Decentralized Control Room
for Data Visualization
• NGrain Consort
• NGrain Envoy
• NGrain Scout
• Virtual Inspection & Damage
Assessment
• On Demand access to crucial
equipment information
• Real time decision making
• Lockheed Martin
• US Army
• BCIT
Inspection of steel surface ,
texture segmentation of cold
rolled steel sheets
• TryLive
• Customized 3D
solution for clients
• 3D product visualization and
virtual try-on solutions for the
retail and e-commerce sectors
• Alstom
• Volvo
• Volkswagon
Virtual Reality and
Augmented Reality in
industrial training involving
simulation exercises.
• Metaio Engineer
• Metaio SDK
• Unifeye
• Software for AR solutions
• SDK for AR softwares
• Mobile S/W development Kit
• BMW
• Toyota
• Volkswagon
Can be used by the Tata
Steel R&D team to make
customized AR softwares
• IMG projects on
Augmented Reality in
manual assembly
•AMRC and IBM MRO
prototype
• Digitally Assisted Assembly
• Reconfigurable Manufacturing
Technology
•Combination of augmented
reality,robotics for Field Engineers
• IBM
• Boeing
• AREA
Collaborate with AMRC to
gain expertise while
developing in-house AR &
VR capabilities for MRO
activities
• dARsein
• DATEV
• CHESS
• Industrial AR maintenance
applications using mobile devices
• Advanced Computer Tracking
Technology
• Heavy Manufacturing
Industries
Collaborate for
“maintenance, training and
support” offers high impact
as it can be also integrated
in tele-consultation scenario
10

11. Implementation Strategy- In-houseDevelopment
11
Augmented Reality and Virtual Reality in Manufacturing

12. 0
50
100
150
200
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Producer price index, 2010=100, DE
IT costs Manufacturing costs
Others
26%
Break up of Expenses
Logistics 8%
Overheads 45%
Conversion costs
5%
Depreciation
6%
Labour/Op EX
10%
Recommendation : ImplementAR/VR
0
20
40
60
80
100
120
140
160
Labor Cost Depreciation Operating
Cost
Logistics
Cost
Materials
Cost
Overhead
Estimate of change in costs of Tata Steel after AR/VR
implementation in 5-10 years
Existing AR implementation
• Connected Manufacturing Potential: Augmented Reality and
Virtual Reality provide “Connected Manufacturing” potential to
manufacturing firms looking out to adopt industry 4.0.
We have seen how it has the potential of connecting the various
supply chain partners i.e. the Supplier , the Manufacturer , the
Distributer and the Customer.
• Hurdles are Temporary: The hurdles for adoption of the
Augmented Reality and Virtual Reality in Manufacturing are more
less than the benefits that manufacturers see in this technology.
These hurdles are temporary as our research shows that once the
economies of scale is reached in the industry.
• Lower Operating and Other Expenses: Secondary research shows
that BCG suggests how expenses under various heads are brought
down by adopting industry 4.0 technology which mostly refers to
AR/VR technology.
• IT costs in Industry 4.0 :The below graph shows the break even
point of the IT costs incurred in the manufacturing industry over a
period of 10 years.
•Recommendation: So we suggest that Tata Steel should implement
AR/VR technology and we predict that it will recover the costs in a
period of 5-10 years.
Source of Expense Breakup :
Tata Steel annual Statement
These cost reductions are calculated in accordance with the Boston
Consulting Group’s research recommendations on AR/VR in manufacturing
12