Industry 4.0 Maturity Index

Dr. Bertolt Gärtner | Günter Herkommer,

Ready for Industry 4.0?

Remaining competitive requires the ability to adapt quickly to market changes. The 'Maturity Index' is designed to help companies determine their own level of Industry 4.0 maturity and, based on this, identify the necessary fields of action.

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The fact that digitalized, self-organizing processes save costs and increase production efficiency is hardly questioned in the context of Industry 4.0. However, the fact that German companies are lagging behind countries such as the USA in terms of implementation, as can be read in various studies, is often due to the fact that the challenges of a comprehensive digital transformation appear too great and the know-how to systematically drive development forward is lacking. There are also very practical issues, such as the right software, security aspects or relevant standards.

Basic procedure for the introduction of Industry 4.0.

© Acatech

This is where the 'Industrie 4.0 Maturity Index' comes in, which the German Academy of Science and Engineering (acatech) has developed together with partners from research and industry. This is a multidimensional maturity model that manufacturing companies in particular can use to evaluate their digitalization status quo and develop company-specific strategies for their 'Development 4.0'. Small and medium-sized companies in particular should benefit from this tool - they often find the transformation particularly difficult.

The digitalization of production goes hand in hand with the creation of an increasingly comprehensive database. However, data must be processed, prepared and made accessible. Employees must be able to interpret and use it. Only then can data help to optimize processes.

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Technology alone does not create agility

In order to do justice to this fact, the Maturity Index is based on an expanded understanding of I4.0. It comprises four central design fields for the development of an agile company:

  • Resources: employees and their skills, machines and systems, tools, products.
  • Information systems: socio-technical systems in which people and information and communication technologies provide, process and use data.
  • Organizational structure: Rules and structures that guide relationships within the company, but also between the company and its environment.
  • Culture: Value system within the company, such as the willingness of employees to embrace change and review their behavior.

Ultimately, a company is agile if it can react quickly to changes in its environment and within the company itself. The quality of decisions is characterized by the fact that they are based on reliable, systematically collected and evaluated information. Development in this direction must take place step by step and each company must find its own individual development path in accordance with its own corporate strategy.

The six degrees of maturity

The Maturity Index pursues an understanding of Industry 4.0 that goes beyond technological aspects: the maturity level is therefore assessed for each of the four design fields of resources, organizational structure, information systems and culture.

© Acatech

To support companies in this process, the Maturity Index defines six incremental maturity levels:

1. computerization:
Using information technologies and automating processes is the first step. This is the case in almost every company. At this stage, however, information technologies are still used in isolation. One example is the use of a CNC milling machine for the precise machining of workpieces, which is not networked with other systems, so that employees have to enter the necessary data manually.

2. connectivity:
If components are networked, the maturity level of connectivity has been reached. One example of this is remote maintenance through remote services. However, full integration between the information technologies and the operational technologies has not yet taken place. This networking means greater complexity and only takes place in the next higher level.

3. visibility:
At this level, sensor technology is used to record statuses and processes in production in real time. To fulfill this function, an interface is created in parallel, which creates a digital model of the company - a so-called 'digital shadow' - that shows what is happening in the company at all times.

The six levels of the Maturity Index and the benefits that each new level brings to the company. Being able to react autonomously and quickly to events is characteristic of an agile company.

© Acatech

4. transparency:
If companies use the 'digital shadow' not only to see what is happening, but also to uncover cause-and-effect relationships and understand why it is happening, they have reached the fourth level of maturity. This requires interpreting the data in context and linking it with engineering knowledge. Big data applications are used in parallel with operational application systems such as ERP or MES systems, creating a common platform for comprehensive data analysis.

5. forecasting capability:
In order to create different scenarios and evaluate them in terms of their probability of occurrence and consequences, the digital shadow is extrapolated into the future. To do this, data from the ERP or MES system is used and supplemented with other data that is individually required. In this way, developments can be anticipated and company decisions can be aligned with them by
opportunities are exploited or countermeasures are taken depending on the situation.

6. adaptability:
If these decisions are made automatically by the IT systems, Industry 4.0 is fully realized in the company. Adaptation measures are carried out by human actors without delay. The extent to which IT systems are granted autonomy here should always depend on the complexity of the decision and the cost-benefit ratio for automated or human action.

Quick successes, long-term strategy

The goal in all of this is not necessarily to achieve the highest level of maturity. Rather, the decisive factor is which corporate strategy is pursued and at which level the best cost-benefit ratio is achieved. A significant advantage of the approach is that 'quick wins' can be achieved with the gradual development from one level to the next. The benefits with positive effects on profitability are therefore quickly visible, while at the same time a comprehensive, long-term transformation is pursued. This increases the chances of success of the process.

So how is the Industry 4.0 Maturity Index applied in practice? The first step is to analyze the current situation: What is the status of the company's Industrie 4.0 development? The company is divided into five central functional areas: Development, Production, Logistics, Service and Marketing & Sales. The current maturity level is determined for each functional area with the help of a questionnaire, a plant tour and expert workshops.

The second step is to define objectives: what strategy is the company pursuing, in which direction should the company as a whole develop and how are the individual functional areas contributing to this? In the subsequent gap analysis, we analyze which skills are missing so that these goals can actually be achieved. Based on this, measures are identified in the third and final phase that help to develop these necessary skills. Finally, a system of key figures in combination with a cost-benefit matrix shows which of the possible measures are particularly suitable for increasing the company's level of maturity. These are recorded in a roadmap.

Maturity Index - a practical example

The Maturity Index has already been tested and validated in several companies, including a manufacturer of electrical connection technology. At several locations, the 4000 or so employees manufacture plug-in, connection and network systems, which are also used in the automation of production processes. The product portfolio also includes RFID solutions. The company has therefore already dealt intensively with Industry 4.0 and has a correspondingly high level of maturity. This is reflected, among other things, in the fact that a digital shadow has already been implemented in recent years. Data from production constantly flows into the information systems in real time and keeps the digital shadow up to date at all times.

In terms of continuous development, the roadmap in this case study included a good thirty measures to further improve production with the already digitally monitored systems. They related, for example, to the optimization of a pilot project in which punching-cutting machines at several locations were equipped with structure-borne noise sensors. Measuring the vibrations makes it possible to derive statements about the condition of the systems and maintain them as required. This is because the data makes it immediately clear if, for example, a cutting edge is worn and, as a result, workpieces are being produced outside of tolerance.

So far, however, the process has only been monitored locally. The roadmap now envisaged networking and evaluating the data in real time across the entire production process and not just in isolation on a few production lines. The result: optimization measures can now be compared across production lines on the basis of specific key figures. The most successful measure can then be rolled out across the board and continue to be
be monitored.

Overall, the roadmap measures taken helped to increase delivery reliability and flexibility in production. In addition, the company was able to use the Maturity Index to significantly reduce the time required to select and evaluate pilot projects - from the usual six months to just a few weeks. Subsequently implemented use cases can be evaluated more easily, which enables a faster and better decision to be made on their implementation throughout production.

Industry 4.0 with security

One thing remains to be said: Digitalization and networking hold enormous potential for the production of the future. However, they also make it more susceptible to access by third parties, manipulation or espionage. One example: 4.0 companies are often dependent on data provided by the manufacturers of sensors and components. If this data is communicated unprotected, manipulation is possible - with potentially serious consequences. To prevent this, two redundant communication paths should always be implemented.

As one of acatech's partners, TÜV Süd contributed its knowledge of functional safety and industrial IT security to the development of the Maturity Index. TÜV Süd was also one of the first companies to develop certification in accordance with the IEC 62443 safety standard for industrial control and automation systems. This enables companies to identify potential vulnerabilities in their control and instrumentation technology and take effective protective measures. After all, an agile Industry 4.0 company can only exist with IT Security 4.0.

Author:
Dr. Bertolt Gärtner is President & CEO of TÜV Süd Atisae, Madrid.

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