Lean is a powerful methodology that enables managers and employees to shift their mindset and helps companies to keep their business sustainable by creating competitive advantage. Today, in an increasingly complex and dynamic world, where companies struggle to maintain competitive advantage, Lean is more important than ever. This course combines the experience of many senior experts and practitioners from the Boston Consulting Group and École des Ponts, and brings perspectives on Lean in manufacturing and services. It offers strong topic foundation as well as deep practical insights into the art of continuous improvement. In this course, you will learn: - why Lean is a key driver for sustainable competitive advantage - how different companies can leverage Lean to create value both in manufacturing and services - what it takes to drive a Lean transformation and build a culture of continuous improvement - how new technologies impact traditional lean practices
A BCG view on Industry 4.0
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From the course by École des Ponts ParisTech
The hidden value – Lean in manufacturing and services
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From the lesson
How to apply Lean to improve manufacturing
Meet the Instructors
Aurélie Delemarle, Ph.DAcademic Chair, Industrial Engineering Department
Ecole des Ponts ParisTech
Dr. Thomas FrostExpert Principal
The Boston Consulting Group
Salvatore CaliExpert Principal
The Boston Consulting Group
Elsa BlumeSenior Learning & Development Specialist
The Boston Consulting Group
So Thomas introduced you the topic of lean in manufacturing.
And now I would like to end this module looking at the future.
People talk about a new revolution happening in the industry today.
And I'm very happy to cover this topic with Daniel Spindelndreier.
Daniel is a senior partner in the Dusseldorf office,
and he leads the topic of lean and manufacturing.
Hello, Daniel.
Thank you Salvator.
>> I would like to start with a simple question.
What's Industry 4.0 in a nutshell?
>> I'll try to do it in a nutshell.
Basically Industry 4.0 means that we go beyond traditional automation in
manufacturing.
So the idea is that we smart objects connected, moving towards
a goal-oriented process and that is supported by digital technologies for
automation, rather than just things being pushed or pull.
Through manufacturing but even beyond that in supply chain management, and
development over the whole product life cycle.
>> What is the improvement potential of Industry 4.0?
>> Well it very much obviously depends on where you are,
which industry and what is basically your target, your current state.
We recently did a study where we estimated that for
Germany overall, given the industry split that we have,
we see a 15% to 25% of cost reduction in manufacturing cost.
And that would be like something around 6 to 10% in total conversion cost, based on
current technologies which we see in the near term available for those industries.
>> Yeah, and what are the best in class in this topic?
Can you give us an example of companies adopting this new trend?
>> Well I think generally speaking, automotive industry is quite ahead
since they have been traditionally among the leader of automation.
So they're very fast in adapting towards Industry 4.0.
Examples are, for example, smart moving lines.
Where Audi, as one OEM example,
is working on production lines where cars basically find their own way,
rather than being pulled on a chain, as in a traditional setup.
Lean offers you a process for continuously improving a production environment.
And it offers you a traditional toolset of things to do.
I would consider Industry 4.0 as an additional toolset ideally
fitting into the same process.
So to us, a perfect status to achieve continuous improvement process,
where you work with both lean tools like systematic problem solving, and
with digital support to get to the best target state, for your process.
>> In your opinion, which technology has the most, the biggest impact?
>> Well it's hard to pick across all.
But if I had to pick one I would say, it's likely big data analytics.
In the sense that the amount of information we have available,
if we have a smart look at that and we can make the right decisions in real-time,
and strategic decisions in our manufacturing environment, for
a lot of our clients, this is still one of the biggest challenges.
Coming down from very simple things, like real OE tracking,
and problem solving based on that one towards more advanced things like,
predictive maintenance scenarios.
I think that's probably the single most biggest change we'll see in the future.
>> Daniel, in the European Union,
which technology advances have the largest impact?
>> Mm-hm. Well it's a bit challenging to pick one,
but let me try.
I would say for most companies we see, that vertical and
horizontal data integration is a major issue.
Sort of the vision of really having common data sets from,
really product development towards manufacturing.
And then transferring that for example,
into maintenance support via augmented reality is a very strong perspective.
The other very strong perspective on the data side is big data and analytics,
where we basically still see a big need in a lot of our clients from sort of,
rather simple things like understanding really or OEE is, and going into targeted
problem solving, to its broader things like finding the right pattern for
your preventive maintenance.
Beyond that, I think there are sort of technologies which would have a big impact
on certain industries, and 3D printing is often nominated as one.
So for some industries I think this will have a strong impact.
Like for example aircraft parts as we see currently, but
beyond that, partly automotive parts, casting scenarios.
But not that relevant for all industries or for the whole set of industries.
>> This looks great for companies but is there any challenge they will face?
>> Well, we see quite a challenge.
And I think first and foremost, it's a skill set, yeah?
So I mean in the old days, you would basically ask for assistant support for
your manufacturing environment and someone would install it.
These days basically we are more talking about an ecosystem of different solutions.
That means you have to understand these solutions much better.
You have to have those skills in house.
And we really advise our clients,
basically to start building these skills and
to make sure their employees understand the opportunities in Industry 4.0.
That's a big challenge.
Then there's some real life practical challenge.
I think data security is one of the most mentioned ones.
And beyond that at the end of the day, we see that the success of Industry 4.0
is largely driven that a lot of solutions are much more affordable these days,
than they were in the past.
Still there is often quite an investment needed to really move fast.
So that for many companies, is another challenge.
>> Thank you.
What prerequisites are necessary to start this journey?
>> I think the prerequisite is really to understand those technologies.
And having that anchored in your organization.
So you need essentially a skilled workforce
that understands the opportunities of Industry 4.0.
And you need a continuous improvement process mentality.
Which really says, okay I will accept that these solutions will evolve.
And that as they evolve I can use them to optimize my manufacturing setup.
>> And can you describe a typical Industry 4.0 implementation?
>> At the moment when we help our clients to start their journey towards Industry
4.0, we typically as a first step, go in and we look basically where they are.
So we look at typical challenges in their manufacturing environment.
And we basically start selecting what we call use cases.
So we do not talk about pure technologies.
We talk about application of technologies towards certain problems.
So we would then as a second step, list those and
understand sort of what is its solution.
And in the third step, we would prioritize it.
Because at the end of the day, the business case will be decisive.
Whether we would recommend our client to implement a certain solution.
And then after we have prioritized those solutions we want to implement,
we would go for an implementation preparation as in qualification,
education and discussion with potential vendors.
And then in the actual real life implementation on the shop floor.
And that overtime, becomes a repetitive process.
So we see that as a continuous loop moving towards a better and
better implementation of industry 4.0.
>> Thank you, and this is really interesting.
And what are the critical success factors for the implementation of Industry 4.0.
>> I think the most critical is,
to spend enough time to understand the scope of solutions which is out there.
But then is where to focus, and really focus on the business cases.
As engineers we are always fascinated by the technical solutions, which are sort of
now available, be it augmented reality, be it 3D printing, be it advanced robotics.
And I think it's very good for a company to understand those opportunities,
but as well keep a focus on where it really solves your problem,
where it really helps to improve your process.
And to make sure that you basically think about the process itself and
you don't start automating waste just with an easy, available technique and solution.
Yeah so, keep an eye on the process.
Keep focused on the business case.
>> This is really an exciting topic.
Thank you, Daniel, for sharing your experience.
>> Right, I agree.
It's both exciting.
I mean, in and of itself,
and then combined with the opportunities of the digital technologies.
So we very much look forward to what we see as opportunities in the future.
It was a pleasure to discuss the topic with you and to the students,
thank you very much for your attention.
And I hope you appreciate the class.
>> Thank you.
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