Road-to-industry-4-point-0-value-creation-and-cost-reduction.pdf

KPAII WORKSHOP, 11 DESEMBER 2017

Rantai Pasok Global The Challenges of Tomorrow

DRADJAD IRIANTO Manufacturing Systems Research Group ITB

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OUTLINE • PENDAHULUAN • INDUSTRIAL REVOLUTION • i2.0 → i3.0 • i3.0 → i4.0

• COLLABORATIVE MANUFACTURING

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PENDAHULUAN • The International Academy of Production Engineering (CIRP) describes manufacturing system as having an integrated group of functions, i.e. marketing, product design, process design, production planning, production process, and delivery to customer (Caggiano, 2014 )

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PENDAHULUAN • Developing manufacturing industries in Indonesia is still necessary for nation economic development and providing jobs while contributing to the preservation of nature. (Industri Hijau , UU 13/2014)

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SUSTAINABLE MANUFACTURING

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SUSTAINABLE MANUFACTURING

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SUSTAINABLE MANUFACTURING chain…

NEW TERMS .......... GVC Global Value Chain. GVC analysis focuses on the strategic global dispersion of different value added activities in value chain from the postioning in product specific value chain. GPN Global Production Networks. GPN analysis focuses on how a flagship firm’s production network is organized; how it is dispersed across firms and borders; and how technology is transferred among network participants. GSC Global Supply Chain is a global system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. TNCsTransnational Corporations

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Outsourcing & Kolaborasi High Cost Reduction (Global Integration)

“Global” Strategy

“Transnational” Strategy

“International” Strategy

“Multidomestic” Strategy

Low Low

Local Responsiveness

High

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PENDAHULUAN • Manufacturing Competitiveness Index

Compete or Collaborate

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Stabilitas Pertumbuhan

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PREDICT TECHNOLOGY & MARKET

Surce: US National Science Foundation

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REVOLUSI INDUSTRI iCyber-Physical Internet of things Collaborative manufacturing

Mass production Interchangeable parts Quality control Standardization

Industry 2.0 Industry 1.0 Revolusi industri Mekanisasi produksi

Industry 4.0 Industry 3.0 Mass customization Flexible Manufacturing Computer integrated Automation & robotic

e-

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What ever the revolution is: • The main objectives of an industry:

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INDUSTRY 2.0 → INDUSTRY 3.0 Satisfaction?

? Set price

Profit

Market specifications

Designed Utility/ Quality Price

ROI (Profit) Total cost

Target cost

Finished good

Finished good

Processes

Processes

Raw material

Raw material

MASS PRODUCTION

MASS CUSTOMIZATION

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INDUSTRY 2.0 → INDUSTRY 3.0 • Industrial automation & robotics

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Manufacturing Process & Design Repair

Design

Inspect

Produce

On-line manufacturing: eliminate waste & reducing cost

Off-line manufacturing: creating more value through product & process design

Relocated industry to Indonesia is a “maker”, mostly is only focused on on-line manufacturing.

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Starting from the end & finished at the beginning (Habibie, Indonesian aircraft)

Technology for product development through advancement of production, inspection, repair & design in double loops.

Repair

Design

Inspect

Produce

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PT. Dirgantara Indonesia (Nurtanio) NBO 105

1980

C212

N250

CN235

Starting from the end, and finished at the beginning

1995 Since then

A380

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INDUSTRY 3.0 → INDUSTRY 4.0 More on value creation & cost reduction Designed Quality

Value added k Price

ROI (Profit)

Price

Value added … Target cost

Target cost

Process k

Finished good

Value added 2 Process …

Processes Raw material

Process 2

Value added 1

Process 1

Akumulasi biaya

Market specifications

Designed Quality

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INDUSTRY 3.0 → INDUSTRY 4.0 More on value creation & cost reduction… Core competence on process & worker Designed Quality

Industry K Core competence k

Price

Industry … Core competence …

Industry B Core competence 2

Process k Process … Process 2

Industry A Core competence 1

Value chain, networked, collaborative

Process 1

Akumulasi biaya

Target cost

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INDUSTRY 3.0 → INDUSTRY 4.0 SIPOC

Demand Pull

Outsourcing Outsourcing + Outsourcing … 2

 g   g   Var( x1 )    Var( y)    x1   x2 

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Internet connection 2

 g   Var( xn ) Var( x2 )  ...    xn 

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INDUSTRY 3.0 → INDUSTRY 4.0 Internet connection INPUT

PROCESSES (OUTSOURCING, GLOBAL)

OUTPUT

Vendor & retailers

Industry C Industry A Industry B

Industry K Industry D

Suppliers

Industry …

Networked & collaborating Industries Production processes and products are being digitized (cyber physical); manufacturers, suppliers and customers are establishing closer networks, and innovation cycles are being reduced.

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COLLABORATIVE MANUFATURING

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Collaborative manufacturing System for SME

Demand from local assembler

Demand from abroad

Technopark management Existing SMEs R&D – engineering design

Metrology & production facilities

New SME (start up)

Incubator

Assembler, after market & export

Human resource dev.

Financial & legal supports

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COLLABORATIVE MANUFATURING • Process outsourcing: a process selection model Existing sytem

Stage 1

Stage i Scrap 1

Process 1

Stage N Scrap i

Process 1

Rework 1

Scrap N

Process 1

Rework i

Rework N

alternative

Stage 1

Stage i Scrap 1

Process 1

Process 1

Rework 1

Process j

Process 1

Rework 1

Scrap N

Process j

Rework i

Scrap 1

Rework N

Scrap i

Process M

Rework 1

Rework N

Scrap i

Process j

Process M

Scrap N

Rework i

Scrap 1

Jerusalem et al., 2015

Stage N Scrap i

Scrap N

Process M

Rework i

Rework N

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COLLABORATIVE MANUFATURING • Process outsourcing: a process selection optimization mathematical model to maximize profit Cost of manufacturing

Cost of process improvement

Quality loss

2 2 N M N M   t    Y      ij   x  I cm x  A I i ij ij p   i    ij  i 1 j 1  i 1 j 1  X i   X i   3      N M N M   f i R  rijR   R R R  c ( f i  rij ) xij Max P  U .I ( N 1)   Qij xij   I i 1  R R  i  1   f i  rij  i 1 j 1   i 1 j 1 N M S S S  I i ci ( f i  rij ) xij  i 1 j 1 Sales 

Cost of scrap Jerusalem et al., 2015

           

Cost of Inspection

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COLLABORATIVE MANUFATURING • Global technology & market • Global value chain • Global supply chain • Transnational cooperation • Basis sumber daya industri & Perwilayahan industri

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DEVELOPING INDONESIA Implementation Roadmap:

• GOALS: industry development, technology innovation, productivity improvement, inclusion for SME • WHERE TO PLAY: potential sector (automotive, ICT, etc.), technology choices (robotics, cloud, AR, 3D printing, etc.), area of application choice (production, logistics, etc.), geography domain (global, regional, local) • HOW TO WIN: execution focus choice (government, corporation, SME, etc.), enabler choice (policy, infrastructure, R&D, market, etc.)

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TERIMA KASIH