1. Unrestricted © Siemens AG 2014. All rights reserved. The Digital Factory – Enabling a Holistic Approach to Automation MIT Industrial IoT Workshop – October 7, 2014 Rick Dries, Director of Engineering Support, Digital Factory Division, Siemens USA

2. © Siemens AG 2014. All rights reserved. Challenges: Manufacturing is changing faster than ever before Industry Software should help to solve manufacturing challenges Increasing competitiveness Enhance flexibility Shorter innovation cycles More complex products Larger data volumes Individualized mass production Volatile markets High productivity Energy and resource efficiency are decisive competitive factors Increase efficiency 1 Shorten time-to-market 23

3. © Siemens AG 2014. All rights reserved. Growing business process complexity is impacting automation systems S5 CPU100 1987 S7 CPU1518 2013 S7 CPU319 2010 S5 CPU945 1993 0,03 16,384 2,000 0,25 On Board Memory (OBM) SIMATIC controller Mbyte TIA Portal V12 2013 TIA Portal V11 2011 Step7 Prof Classic 2010 TIA Portal V13 2014 (current status) ~ 7’ ~ 55’ 50’ 31’ Code volume SIMATIC Engineering Software Lines of Code Software content of automation solutions is continuously rising Page 3

4. © Siemens AG 2014. All rights reserved. Complexity is driving up engineering costs time Hourly rates / Engineering hours / Total engineering cost Hourly rate of engineers Total engineering cost Engineering hours per project Page 4

5. © Siemens AG 2014. All rights reserved. TIA Portal – Mitigating the fast growing cost of automation engineering Page 5 time Hourly rates / Engineering hours / Total engineering cost Hourly rate of engineers Total engineering cost Engineering hours per project time TIA Portal One engineering tool for all automation engineering tasks Total engineering cost

6. © Siemens AG 2014. All rights reserved. Automotive manufacturers reach the next level of production with industry software Electrical and mechanical turnkey solution in BMW assembly factory Reference: BMW Integrated industry software optimizes production at BMW PLM software, MES and TIA Portal All BMW cars can be produced on one manufacturing line Ergonomic adjustments to production plant and high safety standards 99%+ availability – helping assembly plant to avoid bottlenecks: Low downtimes, High quality BMW sees the greatest potential cost savings in engineering TIA Portal concepts delivers this savings through: Fewer interfaces A common database Less errors through consistent system support TIA Portal creates the conditions for reducing engineering costs by creating more effective and automated engineering; contributing significantly to cost reduction in time and quality.

7. © Siemens AG 2014. All rights reserved. A holistic automation approach must include the entire value chain 1 Product design 2 Production planning 3 Production engineering 4 Production execution 5 Services 1 2 3 4 5 Increasing productivity and efficiency in the individual process steps

8. © Siemens AG 2014. All rights reserved. Siemens Digital Enterprise Platform Best in class digital representation of the physical world. TIA Totally Integrated Automation PLM Product Lifecycle Management Production planning Production engineering Production execution Product design Digital World Product design and virtual production Physical World Real production Page 8

9. © Siemens AG 2014. All rights reserved. The 3 core aspects Production Network 1  Flexible supply chains with cross-company just-in-time decisions Product and Production Design 2  Reducing time to market by the integration of both processes Cyber-Physical Systems 3  Flexible production based on modular, autonomous production units Cyber-physical systems

10. © Siemens AG 2014. All rights reserved. Production chain Production network More flexible and dynamic production …. based on just-in-time decisions From static production chains to flexible network Long-term and static relations More dynamic relations  Seamless Integration of PLM, ERP, MES and Automation  Dynamic decisions regarding supply of dedicated resources, vendor parts, logistic services and production sites Solution: Optimized production with Manufacturing Operations Management

11. © Siemens AG 2014. All rights reserved. The 3 core aspects Production Network 1  Flexible supply chains with cross-company just-in-time decisions Product and Production Design 2  Reducing time to market by the integration of both processes Cyber-Physical Systems 3  Flexible production based on modular, autonomous production units Cyber-physical systems

12. © Siemens AG 2014. All rights reserved. From serial to parallel processes  Common data model with consistent data flows  PLM-Team collaboration and roundtrip engineering Faster from idea to production… Solution: Integrated Workflow from Product Design to Production ….based on integration of product- and production design Serial Process Parallel Process Local optimization Integrated optimization time

13. © Siemens AG 2014. All rights reserved. The 3 core aspects Production Network 1  Flexible supply chains with cross-company just-in-time decisions Product and Production Design 2  Reducing time to market by the integration of both processes Cyber-Physical Systems 3  Flexible production based on modular, autonomous production units Cyber-physical systems

14. © Siemens AG 2014. All rights reserved. Static Production Flexible Production Increasing flexibility of production… …. based on modular production units From static to flexible production Pre-defined production process Self optimizing and autonomous Solution: Use of Cyber-Physical Systems Increase flexibility and reduce complexity CPS  Intelligent, autonomous and self configuration/optimizing  Communicative and collaborative  Context aware

15. Unrestricted © Siemens AG 2014. All rights reserved. The Digital Factory – Enabling a Holistic Approach to Automation MIT Industrial IoT Workshop – October 7, 2014 Rick Dries, Director of Engineering Support, Digital Factory Division, Siemens USA