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Companies are transforming from transactional sales to providing solutions for their customers. Mostly, smart products, enabling companies to enhance their products by providing smart services to their customers, are a key building block in this transformation. However, the development of a smart product requires many digital skills and knowledge, which regular companies do not have. To facilitate the design and conceptualization of smart products, this paper presents a use-case-based information systems architecture prototype for smart products. Furthermore, the paper features the application and evaluation of the architecture on two different smart product projects. The use of such an architecture as a reference in smart product development serves as a huge advantage and accelerator for inexperienced companies, allowing faster entry into this new field of business. [https://link.springer.com/chapter/10.1007/978-3-031-14844-6_16]
Industry 4.0 is driven by Cyber-Physical Systems and Smart Products. Smart Products provide a value to both its users and its manufacturers in terms of a closer connection to the customer and his data as well as the provided smart services. However, many companies, especially SMEs, struggle with the transformation of their existing product portfolio into smart products. In order to facilitate this process, this paper presents a set of smart product use-cases from a manufacturer’s perspective. These use-cases can guide the definition of a smart product and be used during its architecture development and realization. Initially the paper gives an introduction in the field of smart products. After that the research results, based on case-study research, are presented. This includes the methodological approach, the case-study data collection and analysis. Finally, a set of use-cases, their definitions and components are presented and highlighted from the perspective of a smart product manufacturer.
Methods of machine learning (ML) are notoriously difficult for enterprises to employ productively. Data science is not a core skill of most companies, and acquiring external talent is expensive. Automated machine learning (Auto-ML) aims to alleviate this, democratising machine learning by introducing elements such as low-code / no-code functionalities into its model creation process. Multiple applications are possible for Auto-ML, such as Natural Language Processing (NLP), predictive modelling and optimization. However, employing Auto-ML still proves difficult for companies due to the dynamic vendor market: The solutions vary in scope and functionality while providers do little to delineate their offerings from related solutions like industrial IoT-Platforms. Additionally, the current research on Auto-ML focuses on mathematical optimization of the underlying algorithms, with diminishing returns for end users. The aim of this paper is to provide an overview over available, user-friendly ML technology through a descriptive model of the functions of current Auto-ML solutions. The model was created based on case studies of available solutions and an analysis of relevant literature. This method yielded a comprehensive function tree for Auto-ML solutions along with a methodology to update the descriptive model in case the dynamic provider market changes. Thus, the paper catalyses the use of ML in companies by providing companies and stakeholders with a framework to assess the functional scope of Auto-ML solutions.
Methods of machine learning (ML) are difficult for manufacturing companies to employ productively. Data science is not their core skill, and acquiring talent is expensive. Automated machine learning (Auto-ML) aims to alleviate this, democratizing machine learning by introducing elements such as low-code or no-code functionalities into its model creation process. Due to the dynamic vendor market of Auto-ML, it is difficult for manufacturing companies to successfully implement this technology. Different solutions as well as constantly changing requirements and functional scopes make a correct software selection difficult. This paper aims to alleviate said challenge by providing a longlist of requirements that companies should pay attention to when selecting a solution for their use case. The paper is part of a larger research effort, in which a structured selection process for Auto-ML solutions in manufacturing companies is designed. The longlist itself is the result of six case studies of different manufacturing companies, following the method of case study research by Eisenhardt. A total of 75 distinct requirements were identified, spanning the entire machine learning and modeling pipeline.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.
Industry 4.0 and Smart Maintenance represent a great opportunity to make manufacturing and maintenance more effective, safer, and reliable. However, they also represent massive change and corresponding challenges for industrial companies, as many different options and starting points have to be weighed and the individual right paths for achieving Smart Maintenance need to be identified. In our paper, we describe our approach to evaluating maintenance organizations in a case study for the oil and gas industry, developing a shared vision for the future, and deriving economical and effective measures. We will demonstrate our approach, by showcasing a specific example from the oil and gas industry, where a need for action on HSE-relevant critical flanges in the company's piping systems was identified. We describe the steps, that were taken to identify the need for action, the specifications of the project and the criticality analysis of the piping system. This resulted in the derivation of a digitalization measure for critical flanges, which was first commercially analyzed and then the flanges were equipped with a continuous monitoring solution. Finally, a conclusion is drawn on the performed procedure and the achieved improvements.
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
Companies operate in an increasingly volatile environment where different developments like shorter product lifecycles, the demand for customized products and globalization increase the complexity and interconnectivity in supply chains. Current events like Brexit, the COVID-19 pandemic or the blockade of the Suez canal have caused major disruptions in supply chains. This demonstrates that many companies are insufficiently prepared for disruptions. As disruptions in supply chains are expected to occur even more frequently in the future, the need for sufficient preparation increases. Increasing resilience provides one way of dealing with disruptions. Resilience can be understood as the ability of a system to cope with disruptions and to ensure the competitiveness of a company. In particular, it enables the preparation for unexpected disruptions. The level of resilience is thereby significantly influenced by actions initiated prior to a disruption. Although companies recognize the need to increase their resilience, it is not systematically implemented. One major challenge is the multidimensionality and complexity of the resilience construct. To systematically design resilience an understanding of the components of resilience is required. However, a common understanding of constituent parts of resilience is currently lacking. This paper, therefore, proposes a general framework for structuring resilience by decomposing the multidimensional concept into its individual components. The framework contributes to an understanding of the interrelationships between the individual components and identifies resilience principles as target directions for the design of resilience. It thus sets the basis for a qualitative assessment of resilience and enables the analysis of resilience-building measures in terms of their impact on resilience. Moreover, an approach for applying the framework to different contexts is presented and then used to detail the framework for the context of procurement.
Due to shorter product life cycles and the increasing internationalization of competition, companies are confronted with increasing complexity in supply chain management. Event-based systems are used to reduce this complexity and to support employees' decisions. Such event-based systems include tracking & tracing systems on the one hand and supply chain event management on the other. Tracking & tracing systems only have the functions of monitoring and reporting deviations, whereas supply chain event management systems also function as simulation, control, and measurement. The central element connecting these systems is the event. It forms the information basis for mapping and matching the process sequences in the event-based systems. The events received from the supply chain partner form the basis for all downstream steps and must, therefore, contain the correct data. Since the data quality is insufficient in numerous use cases and incorrect data in supply chain event management is not considered in the literature, this paper deals with the description and typification of incorrect event data. Based on a systematic literature review, typical sources of errors in the acquisition and transmission of event data are discussed. The results are then applied to event data so that a typification of incorrect event types is possible. The results help to significantly improve event-based systems for use in practice by preventing incorrect reactions through the detection of incorrect event data.
Manufacturing companies (MFRs) are increasingly extending their
portfolios with services and data-driven services (DDS) to differentiate themselves from competitors, tap new revenue potential, and gain competitive advantages through digitization and the subsequently generated data. Nonetheless, DDS fail more often than traditional industrial services and products within the first year on the market. Particularly, companies are failing to sell DDS successfully and efficiently with their existing (multi-level) distribution structures. Surprisingly, there is a lack of scientific research addressing this issue. Since there are currently no holistic models for an end-to-end description of distribution-tasks for DDS in the manufacturing industry, this paper contributes to a task-oriented reference model for mapping interactions in the multi-level distribution management. Therefore, a case study research approach is used, to identify and describe the interactions in the multi-level distribution management of DDS, as well as to develop a regulatory framework for MFRs and their multi-level distribution management. This research uses the established theoretical framework of Service-Dominant-Logic to address the co-creation in multi-level distribution management of DDS. As a result, this paper identifies different interaction variants as well as the need for a new management function with 4 main and 14 basic tasks.
Generation of a Data Model For Quotation Costing Of Make To Order Manufacturers From Case Studies
(2022)
For contract or make to order manufacturers, quotation costing is a complex process that is mainly performed based on experience. Due to the high diversity of the product range of these mostly small or medium-sized companies (SMEs) and the poor data situation at the time of quotation preparation, the quality of the calculation is subject to strong variations and uncertainties. The gap between the initial quotation costing and the actual costs to be spent (pre- and post-calculation) is crucial to the existence of SMEs. Digitalization in general can help companies to get a better understanding of processes and to generate data. For improving these processes, an understanding of the important data for that specific process is crucial. Accurate quotation costing for customized products is time-consuming and resource-intensive, as there is a lack of an overview of data to be used within the process. This paper therefore derives a data model for supporting quotation costing in the company, based on literature-based costing procedures and recorded case studies for quotation and calculation. Based on the results, SMEs will have a first overview of the needed data for quotation costing to optimize their calculation process.