1. Digital factory: the information systems aspect
International Convention on Quality – ICQ May – 3.Jun 2016, Belgrade
11th International UASQ Congress ’’BUSSINES EXCELLENCE’’
Digital factory: the information systems aspect
Prof.Dr. Tatjana V. Šibalija
Metropolitan University, Belgrade,
Faculty of Information Technology, Faculty of Management

2. Outline Introduction Digital factory Digital factory in Horizon 2020
Digital factory in Industry 4.0
Information systems in digital factory
IS in digital factory: today and tomorrow / Industry 4.0
Horizontal, vertical, and end-to-end integration
PLM, BPMS
Concluding remarks

3. Introduction Focus on digital factory
Digital factory is the key topic in Industry 4.0.
According to the Association of German Engineers (VDI), digital factory is
‘‘a comprehensive network of digital models, methods and tools, including simulation and 3D/virtual reality & visualisation,
which are integrated through continuous data management’’,
with the goal to design, model, simulate, evaluate and optimise products, processes and systems before any modification is actually carried out on an existing (or new) physical system.
Its meaning in Industry 4.0 is extended, implying an entire value network.

4. Factories of Future (FoF) Roadmap 2010-2013 / FP7: research priority
ICT-enabled Intelligent Manufacturing
ICT is a key enabler for improving manufacturing systems at three levels:
Smart Factories
Goal: More automation, better control & optimisation of factory processes
Means: Software, lasers & intelligent devices embedded in machines & factory infrastructure
Less waste
Less energy use
Faster time-to-market
Better quality
Virtual Factories
Goal: To manage supply chains; to create value by integrating products & services
Means: Software to holistically interconnect & manage distributed factory assets; new business models & value propositions
High-value products
Keep jobs in Europe
Process transparency
IPR security
Lower CO2 footprint
Reduce design errors
Better & efficient products
Less waste + rework
Sensors,
Tags
Product
PLM agent
(reader)
PLM server
data
info
advice
Info request
Digital Factories
Goal: To “see” the product before it is produced
Means: Software for the digital representation & test of products & processes prior to their manufacture & use
Factory productivity
Supply-chain productivity
Design productivity
Source: NCP Info Day, 13 May 2011, Brussels, Factories of the Future& Next ICT Calls Dr Erastos Filos, FoF ICT Coordinator

5. Technologies & Enablers Challenges & Opportunities
FoF 2020 Roadmap / Horizon 2020
Technologies & Enablers
Challenges & Opportunities
Advanced manuf. processes
Mechatronics for advanced manuf. systems
ICT
Manufacturing strategies
Modelling , simulation and forecasting
Knowledge workers
Part II: R&I Strategy
Future products
Economic sustainability
Social sustainability
Environmental sustainability
R & I
Prio-rities
RESEARCH & INNOVATION
PRIORITIES
Advanced manufacturing processes
Innovative processes for both new and current materials or products – sub-domains:
Processing novel materials and structures (into products)
Complex structures, geometries and scale
Business models and strategies for disruptive manufacturing processes
Adaptive and smart manufacturing systems
Innovative manufacturing equipment, including mechatronics, control and monitoring – sub-domains:
Adaptive and smart manufacturing devices, components and machines
Dynamic Production systems and Factories
Digital, virtual and resource-efficient factories
Factory design, data collection and management, operation and planning, from real-time to long term optimisation approaches
Collaborative and mobile enterprises
Networked factories and dynamic supply chain
Human-centric manufacturing
Enhancing the role of people in factories
Customer-focused manufacturing
Customers in manufacturing value chain, from product-process design to innovative services
Source: Factories of the Future Multi‑annual roadmap for the contractual PPP under Horizon 2020

6. Digital factory in Industry 4.0: digital – smart factory
Industry 4.0: „digital factory“ „smart factory“
Digital factory: all elements of extended factory (products, processes, systems, logistics, supply networks, etc.) must be presented in a digital format, so that information from all these elements (i.e. “things”) can be stored, transferred, analysed and acted upon in new, automated ways via network connections
Application of Internet of Things and Services (IoTS) in industrial
processes: digital factory produces an extended product-service
system (products + services + support networks + infrastructure)
Integration of Cyber-physical-systems (CPS) in production and logistics:
- entities in intensive connection with surrounding physical world,
providing and using at the same time, data-accessing and
data-processing services available on the Internet
- physical device translated into cyberspace as virtual model:
with networking capabilities, the virtual model can
monitor and control its physical aspect, while the physical
aspect sends data to update its virtual model
Digital factory vision: product and machines should be
able to communicate with each other where the products should “control” their production processes
Extended digital network vision: a huge number of machines and systems worldwide will communicate with each other
Source: Landherr et al. (2016) The Application Center Industrie Industry-driven manufacturing, research and development. CIRP-CMS 2016, Stuttgart, May 2016
Source: INDUSTRIE 4.0 – Smart Manufacturing for the Future, 2014.

7. Digital factory in Industry 4.0: major technological advances
for realisation of digital factories within Industry 4.0
Machinery- related advances:
direct machining in mass production
increased use of additive manufacturing for a customised design
safe human-hardware (e.g. machine, robot, equipment, etc.) cooperation
The expected advances related to ISs should enable:
autonomous production with robots working alongside humans, and increased connectivity to allow machines to operate independently
self-organising factories based on autonomous production: (i) in factory machines manage themselves, and (ii) in extended factory supply chains automatically generated
digitalisation of the entire end-to-end process, extended simulations & virtualisation
integration of supplier and production network via internet-based product lifecycle management to improve collaboration in the networked environment
transition from big data to smart data - understanding a content of a huge amount of data to access the most useful data about manufacturing system and networked factory

8. Information systems in digital factory
IS in digital factory today - typical set of tasks (usually, not very well integrated):
Digital product / process / systems development including the whole CAx chain (CAD-CAPP-CAM-CAI), product lifecycle management (PLM) - modelling, simulation and visualisation
Production management and control (i.e. manufacturing execution system – MES), including software- controlled integration of value-added processes, virtual commissioning and set-up
Order processing, logistics, planning of company resources (i.e. enterprise resource planning - ERP)
Sales and services, and intelligent solution for efficient integration of supply chain (supply chain management – SCM), including sometimes customer relationship management (CRM)
Business process management (BPM): modelling, automation, execution, control and optimisation of end-to-end business processes in enterprise and beyond its boundaries (suppliers, customers, partners, etc.), to facilitate agility of business processes and enterprise
IS in digital factory in Industry 4.0 / tomorow
In an extended, networked digital factory demands inlcude not only the manufacturing system, but also the business ecosystem and overall organisation of a highly connected supply chain.
In digital factories (or smart factories, according to Industry 4.0), the manufacturing systems are:
vertically networked with business processes within factories and enterprises
horizontally connected to industry value networks
they both enable and require end-to-end engineering across the entire value chain

9. Information systems in digital factory: horizontal integration
The inter-industry value chain, including
supply chains:
The integration of the industry value
chain has a significant impact on the product design, development, production & delivery
Since the product-service is considered, the new roles appear in term of providers of the integrated product-service
The following issues must be addressed:
New business models, i.e. business ecosystem (based on e-service) or new value networks
Smart supply chains & logistics: integration between multiple enterprises will form a horizontal enterprise architecture where the issues of
sustainability,
know-how protection, and
IT security management
must be addressed to assure the data security and, therefore, trust of all partners in the
supply chains and business ecosystem
Source: Recommendations for implementing the strategic initiative INDUSTRIE 4.0

10. Information systems in digital factory: vertical integration
Integration of flexible & reconfigurable
manufacturing systems within an enterprise,
including business processes:
The redesign of manufacturing and IT
infrastructure is needed to accomplish integration of services into manufact. processes
The major topics in vertical integration are:
Integration of IT infrastructure, which is today rather fragmented in most of the companies or there is a variety of interfaces between ISs, implying all vertical levels in a factory – from sensors, via MES, up to ERP and BPM;
Definition of IT configuration rules that can be used on a case-by-case basis to automatically build a specific topology for every situation;
Data management and analytics founded on cloud-based service models, in order to cope with a big data and turn them into “smart” data, aiming to support decision-making regarding production but also regarding the business processes;
Cloud-based applications that will be particularly useful for decentralised, networked manufacturing systems i.e. ad hoc networking and reconfigurability of manufacturing systems, and for integrating all actors in the supply chain.
Source: Recommendations for implementing the strategic initiative INDUSTRIE 4.0

11. Vertical integration: new digital factory enterprise pyramid
Vertical integration within digital factory: changing architecture of the enterprise pyramid
The factory IT architecture needs to be changed from a traditional ISA-95 factory pyramid - architecture to a new Industry 4.0 digital factory architecture, to incorporate changes such as inclusion of
PLM layer between MES and ERP, and
BPM layer for the overall business optimisation – above the ERP level.

12. Vertical integration: new enterprise pyramid – next level
Vertical integration & CPPS – next level
Cyber Physical Production System (CPPS) partly breaks the traditional automat. pyramid:
Lower levels: typical field level (& control - PLCs level) still exist
Higher levels: decentralised functioning - by using cloud-based services
on Service Oriented Arhitecture (SOA)
Decomposition of the enterprise automation pyramid with distributed services in CPPS
Source: VDI/VDE-Gesellschaft Mess und Automatisierungstechnik (GMA). Cyber-physical systems: Chancen und nutzen aus sicht der Automation, Thesen und Handlungsfelder, April 2013: 9
Steps in decomposition of the enterprise automation pyramid: toward distributed cloud-based services
[courtesy of ABB]

13. Information systems in digital factory: end-to-end integration
Integration of engineering activities across
the entire value chain of both product-services
and the manufacturing system, aiming to
integrate the full life cycle:
stronger connection with the user, so that manufacturers can, based on the feedback from the user, re-design and offer innovative product-service systems
The following topics should be considered:
Development of an efficient life cycle management, including product lifecycle management, and stronger relations with the user
Full integration of digital and real worlds across a product-service’s entire value chain and across different companies
End-to-end business processes integration supported by IS, including the entire value chain
Since full digitalisation of an entire engineering value chain, and end-to-end business process integration are the major topics, the key ISs needed for the realisation of a digital factory are:
product lifecycle management (PLM) and
business process management system (BPMS).
Source: Recommendations for implementing the strategic initiative INDUSTRIE 4.0

14. Information systems in digital factory: PLM
PLM - to virtually design, develop and test
product before its production, and
manufacturing/assembly processes, their flow, resources, and the factory layout
Typical functionalities of PLM software:
Process planning: manufacturing process plan - connected to system and elements - synchronisation of product with manufact. requirements, sequence, resources, ...
Robotics and other automated systems
Factory design: factory and its layout
Quality management: linkage of quality information with manufacturing and design
Production management: visibility of digital and physical design of production configurations through a process lifecycle, integration with MES and SCADA
Manufacturing process management: management of all of the above data - products, processes and workflow, resources and plant layout knowledge
PLM toolset supporting manufacturing process management
[courtesy of Siemens / Hitachi]
PLM environment in Ford Motor Company [courtesy of Ford]

15. Information systems in digital factory: BPMS
BPMS - integrated business applications (ISs) and functions that support end-to-end process
BPM: one of key enablers of digital factories
- evolve from function-based to
cross-functional process management
- end-to-end collaboration with environment
BPMS (BPM Suites): orchestrate IoTS-based
technology, with manufacturing, logistics,
procurement, order, and other systems
central system manages the process
from a holistic end-to-end perspective
end-to-end business process in BPMS [courtesy of SAP]
Major characteristics:
agility of a business processes to address changes in environment
event-based management that processes can be modelled, implemented, deployed, and optimised quickly in a response to changing business requirements
IT infrastructure must be based on service-oriented architecture (SOA)
Efforts to inegrated BPM (BPMS) in digital factory
e.g. LEGO® demo (German research center for AI): flexible manufacturing process embedded into integrated model in Smart LEGO Factory - fully automated control and monitoring based on CPS - from parts supply, via production and quality control, up to warehousing
More research needed for full integration of BPM into digital factory in Industry 4.0

16. Concluding remarks
In a manufacturing-driven economy, digital factories are the key for sustainability and competitiveness
A digital factory concept is hugely relevant for Industry 4.0, since digital transformation implies transition from digital (smart) factory to smart product- service systems
In order to accomplish this task, future research on information systems are needed to provide
full integration and digitisation of the end-to-end process
across the entire value chain
in a networked environment

17. Thank you for your attention. Questions / Comments?!
International Convention on Quality – ICQ May – 3.Jun 2016, Belgrade
11th International UASQ Congress ’’BUSSINES EXCELLENCE’’
Thank you for your attention.
Questions / Comments?!
Digital factory: the information systems aspect
Prof. Dr. Tatjana ŠIBALIJA
Metropolitan University, Belgrade, Serbia