towards the re-industrialization of europe · megatrends and challenges, which influence the...

Towards the Re-Industrialization of Europe

Engelbert Westkämper

A Concept for Manufacturing for 2030

Towards the Re-Industrialization of Europe


Towards theRe-Industrializationof Europe

A Concept for Manufacturing for 2030

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Engelbert WestkämperUniversität StuttgartFraunhofer IPAIFFStuttgartGermany

ISBN 978-3-642-38501-8 ISBN 978-3-642-38502-5 (eBook)DOI 10.1007/978-3-642-38502-5Springer Heidelberg New York Dordrecht London

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Letters of Recommendations José Manuel Barroso President of the European Commission

on occasion of the World Manufacturing Forum 2012, Stuttgart, Germany

The EU is among the world’s leading exporters in such industrial sectors as aeronautics, pharmaceuticals, and chemicals, adding that industry accounts for 80 percent of the European Union’s current exports and for 80 percent of its private research and development expenditures.

But while 74 million jobs in the European Union depend on manufacturing and related services the crisis has cost industry 3 million jobs, and Europe’s industrial production remains around 10 percent below the levels it reached in the years prior to the crisis.

We cannot be complacent with historical trends that progressively damp the role of industry in our economies. We can reverse these trends and we intend to do so. The European Commission put forward a communication on industrial policy calling for action on four levels:

- creating partnerships in which the EU, its member states, and industry collaborate to foster the best possible conditions for development of new markets based on new technologies;

- speeding up standardization activities and continuing to support EU firms’ development on international markets;

- seeking broader access for businesses, in particular small and medium-sized enterprises (SMEs), to capital markets by “maximizing the potential European budget and diversifying the choice of financing sources available”; and

- coordinating more closely with member states to ensure the availability of the human capital and skills crucial to industry.

Europe needs to invest in new technologies and innovation. We are on the eve of a new technological era, which some analysts have called a New Industrial Revolution, where new and cleaner technologies fundamentally change production patterns and also the global value-added chain. We cannot afford to miss the opportunities brought by these changes

VI Letters of Recommendations

Winfried Kretschmann

Prime Minister of Baden Württemberg,

Ministerpräsident of Baden-Württemberg Germany

A rapidly growing worldwide population, advancing urbanization, global climate change as well as the increasing consumption of energy and material create significant environmental and social challenges that need to be solved by innovative approaches. Policy, economy and science agree that a fundamental change of industrial paradigms is needed: From pure cost orientation to a sustainable production process which not only reduces CO2 emissions but also adds more ecological features to the final products. In the course of this process, manufacturing can play a central role by creating and implementing new technologies for future products and manufacturing itself.

Baden-Württemberg is, due to its traditionally strong automotive, electrical and machine industries, one of the leading industrial regions in Europe. Well-known companies such as Bosch, Daimler, Porsche along with our many Small and Medium Companies have the capabilities to contribute tackling these challenges. Their research, ideas and innovations help us to fulfill our responsibility for the development of a greener industrial manufacturing on a European and global scale. They are the “Engineers” of future products and manufacturing technologies, which can help us strengthen the ties between economy and environment.

I believe that the visions of Manufacturing 2030 are European answers to future challenges as well and contributions for possible solutions created for the global and sustainable manufacturing area.

Winfried Kretschmann

Letters of Recommendations VII

Heinrich Flegel

Chairman of the ManuFuture High Level Group

“The only way of finding the limits of the possible is going beyond them, into the impossible …” Arthur C. Clarke

During the last two years the Support Group has developed the MF Strategy 2030 on behalf of the ManuFuture High Level Group (HLG). The ideas and concepts given in our strategy paper were verified in a Europe-wide consultation and approved by the ManuFuture HLG.

In recent years real economy has regained importance as a source of value creation, income and prosperity. On almost any product you can attach a sticker “manufacturing inside”. The manufacturing sector is of vital importance to foster economic growth and eventually job creation and has a pivotal role to play in prompting investment and innovation, in particular as a vehicle for the introduction of radical innovation.

We are convinced that the base concept of sustainable globalization is the right approach for the foreseeable future and must be the guideline for the development of future products and processes. Europe still has an excellent starting position. It is important to use this momentum and make the right and timely decisions.

We welcome your suggestions.

Heinrich Flegel

VIII Letters of Recommendations

Reimund Neugebauer President of Fraunhofer

Research and Innovation are the fundamentals of industrial development. The area of manufacturing, which contributes massively to social welfare and the ecomomic and ecological efficiency of Europe’s industries, has a key-enabling role for the future by research for innovation and transfer to industrial practice. Fraunhofer is a leading European research organization with a core in engineering and application of innovative technologies, which supports industries with knowledge and technical solutions for future markets.

Europe’s Manufacturing sectors have a long tradition but high running risks. Many enterprises have existential problems or disappeared in the last crisis. Visions and strategic orientations are required to push manufacturing in Europe back to competitiveness and growth by innovative factories. Long term trends and societal challenges are opportunities for change. Technologies open new perspectives of future products and markets. We all are sure that Europe’s manufacturing is able to stop the degression of adding value and re-industrialize its economy with an orientation to high efficiency and sustainability and radical change of paradigms as written in this book.

Fraunhofer appreciates the initiatives of ManuFuture to discuss visionary factories of the future and their public environment. In co-operation with industries and other research organizations we will contribute with our competences to a successful competitive and sustainable development.

Preface


10 Years ago ManuFuture as European Technology Platform was born. ManuFuture is a success story which elaborated a Vision 2020, a strategic

Research Agenda (SRA) and Road Maps for European Research. We all thank our colleague Professor Franco Jovane, who initiated ManuFuture and did not stop his engagement to push the European Manufacturing areas again and again on the political agenda in Europe. ManuFuture created the European Factory of The Future Research Association (EFFRA) as executive arm to manage activities in a Public Private organization to implement strategies of Manufacturing. ManuFuture created many regional/national and specific subplatforms, which all follow the main paradigms of competitive and sustainable development as formulated by Franco Jovane and his “polar star” vision.

Manufacturing 2030 continues the visions of Future Manufacturing to fight against deindustrialization for growth and sustainability by taking into account the megatrends and challenges, which influence the development of all manufacturing sectors. This document is a contribution for political, economic, ecologic and social orientation from a European perspective.

Main contributions to this document came from the ManuFuture Support Group and have been discussed with the representatives from politics, industries and science in the High Level Group. With the link to the EFFRA Road Map and contributions to Horizon 2020, the next European Framework Program, it seems to be possible for taking the chance for a strategic development and a leading role of European Manufacturing Industries in the global economy.

I thank the members of the ManuFuture editorial committee and the members of the support Group for their active contributions to this document.

Engelbert Westkämper, Stuttgart, Mai 2013

Contents

1 Summary ................................................................................................. 1

2 ManuFuture – European Technology Platform for Manufacturing ........................................................................................ 3

3 Manufacturing the Backbone of the European Economy ................... 7 3.1 De-industrialization in the Developed Countries ............................ 9 3.2 The Manufacturing Sectors ............................................................. 11 3.3 European Leadership in Manufacturing and the Crucial

Role of Manufacturing in the Innovation Process ........................... 14

4 Global “Megatrend’s” Grand Societal Challenges .............................. 17 4.1 The Impact of “Megatrends” ........................................................... 17 4.2 Manufacturing Is the Solution Provider for Grand Societal

Challenges in the EU Horizon 2020 ................................................ 21

5 The Objectives of Manufacturing Development .................................. 23 5.1 Leadership in Manufacturing with European Culture ..................... 23 5.2 Adding Value for Growth and Employment by Manufacturing ...... 26 5.3 European Production System .......................................................... 27 5.4 Engineering and Skill as Key Enabling Technologies .................... 30 5.5 Contributions for Sustainability ...................................................... 33 5.6 Reactivation of Low-Tech and Basic Technologies – A

Chance for Regional High Unemployment .................................... 35

6 Visions of Future Manufacturing in Europe ........................................ 39 6.1 The Four Major Topics of Manufacturing....................................... 40

6.1.1 Factories as Good Neighbors and Manufacturing in an Urban Environment ............................................................. 40

6.1.2 Factories in the Value Chain ............................................... 43 6.1.3 Factory and Nature – Lean, Clean, Green Factories ............ 49 6.1.4 Digital Factory and Humans................................................ 52

XII Contents

6.1.4.1 Humans in the ICT-Environment ......................... 54 6.1.4.2 Cyber-Physical Manufacturing ............................ 55

6.2 Action Fields around the Four Major Topics .................................. 57 6.2.1 Robust-Resilient Business System ...................................... 58 6.2.2 Innovation of Products and Processes ................................. 61

6.2.2.1 The Innovation Chain of Manufacturing .............. 61 6.2.2.2 Accelerating the Innovation Chain by

Application-Oriented Research ............................ 64 6.2.2.3 Multidisciplinarity and Networking for Innovation

in Manufacturing .................................................. 65 6.2.2.4 Areas of Product-Innovations for Lead

Markets................................................................. 67 6.2.2.5 Innovative Manufacturing Technologies for

Future Products .................................................... 70 6.2.3 Knowledge-Based Engineering ........................................... 74

7 Fields of Actions for Sustainable Growth............................................. 81 7.1 Infrastructure for Efficient Manufacturing ...................................... 83

7.1.1 The Innovation Landscape with High Regional Differences .......................................................................... 83

7.1.2 Factories with Regional Roots ............................................ 84 7.1.3 Regional Clusters and European Networking ..................... 87 7.1.4 Infrastructure for Sustainable Development ........................ 88

7.2 Education and Skill ......................................................................... 91 7.2.1 Knowledge-Based Innovation Paradigm ............................. 91 7.2.2 Increasing Demand for Qualified People ............................ 93 7.2.3 Skills and Educational Strategy ........................................... 94 7.2.4 Learning and Teaching Factories ........................................ 97 7.2.5 Recommendations for Actions in Education ....................... 98

7.3 ICT-Infrastructure for Manufacturing ............................................. 99

8 Global Manufacturing and Internationalization ................................. 103 8.1 Sustainable Growth ......................................................................... 103 8.2 Policy of Standardization for Manufacturing .................................. 105

9 Conclusions ............................................................................................. 109

References ..................................................................................................... 111

E. Westkämper, Towards the Re-Industrialization of Europe, 1 DOI: 10.1007/978-3-642-38502-5_1, © Springer-Verlag Berlin Heidelberg 2014

Chapter 1

Summary

The European economy has lost approximately one third of its adding value in the last 20 years. All the ambitious objectives such as the Lisbon Agenda 2002 (growth, employment, etc.) or national actions in innovation and R&D were contributions to fight against continuous degression of the GDP. The economic crisis caused by financial turbulences highlighted the consequences and weak points in the migration of manufacturing and consumption. Following the trend of de-industrialization, Europe will lose half of the employment again in the next 30 years. Europe needs new ways of thinking for re-industrialization and reactivation of its potential for adding value with the emphasis on sustainable and competitive development.

Manufacturing, with its approximately 20 industrial sectors, is the backbone of the European economy. More than 30 million people work in this area. An additional 70 million are engaged in peripheral sectors related to manufacturing.

Not only economic turbulences but also other trends – so-called “megatrends” – influence the development of manufacturing. Ageing, urbanization, environmental impacts, individualism, peak points of energy and materials or knowledge creation will change future products and processes. Nearly all industrial work, the way of life, health and welfare depend on technical development. It is now time to start action with long-term strategic perspectives.

The European Technology Platform ManuFuture developed visions 2020 and roadmaps for manufacturing. Ten years ago globalization, economic cycles and the environmental aspects were discussed and the new paradigm of competitive and sustainable development was formulated by the ManuFuture community. This brought manufacturing back onto the R&D agenda in Europe. The economic crisis of the last years made it clear that the real economy needs a competitive industrial base: it is the only way to stabilize welfare. The US government started a big program to stop the deindustrialization process by application- oriented R&D and education for qualifying the next generation. Discussions in the Second World Manufacturing Forum 2012 in Stuttgart made it obvious that technologies for economic, ecologic and social efficiency should be enhanced by innovative and resilient business models. Manufacturing industries are the enabler of our future.

Manufacturing 2030 reflects a time scale in which a fundamental change – initiated by research activities and technical innovations – can be reached. The perspectives of Manufacturing 2030 have been elaborated together with

2 1 Summary

EFFRA (the European Factory of the Future Research Association) and are already defined in the EFFRA Road Map with proposed activities in the Cooperative Research Programs of HORIZON 2020, the next European Research Framework program. The perspectives of Manufacturing 2030 are contributions for industrial companies, politicians and scientists to focus their strategies on fundamental fields for adding value by development and implementation of technologies to overcome existing boundaries in the efficiency of resources and re-industrialization of the economies in Europe.

The main topics are:

- bringing back manufacturing to the urban environment, where people live and where social problems (high unemployment, no future for young people, emissions and traffic in cities, etc.) are critical, by taking into account manufacturing of so-called low technologies.

- manufacturing in global and local value chains reflects the fact that the efficiency of factories depends on the spectrum of competences and the efficiency of cooperation.

- manufacturing in line with nature by using renewable materials and energy, no waste, no environmental impact, high technical efficiency and sustainable management or simply put “lean, clean, green”.

- manufacturing with human orientation, taking into account the communication and information society by creating solutions for social efficiency and technical intelligence.

It is the role of engineers to create viable solutions for products and processes. The creativity and efficiency of engineering is one of the critical success factors in the future. They can develop solutions which are required for competition and sustainability. However, management models along the life cycle of each technical product which are robust enough to survive economic crises are required. Fundamental research can contribute by analysis and modeling of all technical processes to increase the material and energy efficiency, to reduce costs of experiments and evaluate technical solutions in the digital area.

Customer-driven innovations are typical for manufacturing industries. They are the enablers of productivity (competition) and quality. In view of the trends towards individualism, they are requested to produce reliable solutions for tasks and problems across the full spectrum of product technologies. The competence in solving special problems with innovative systems requires competence in the integration of different technologies (mechatronics) and the management of systems complexity on the highest level. Deep and wide competences make the difference in the global economy and market success. European manufacturers have the chance to lead the technical front in manufacturing with its growing world market. They are able to set the economic, ecological and social standards.

The infrastructure around the factories: culture, education and skills, transport, logistics, R&D, technical services, consultancy, financial services, maintenance, supply of non-manufacturing goods influence the economic success. All factories need roots in the local infrastructure. That is why co-operative actions between regional (governmental) clusters and public research are key for the future development.


Chapter 2

ManuFuture – European Technology Platform for Manufacturing

The ManuFuture concept was created in 2003 at the CIRP General Assembly, the European ManuFuture Platform was launched in spring 2004. It provides visions, strategies, road maps and contributions for manufacturing development in Europe. ManuFuture is an informal organization of researchers, industrialists and public-private partnership organizations, which brings together the stakeholders for discussions of challenges and actions towards long-term objectives (Figure 2.1).

Annual ManuFuture Conferences (2003–2011) and the World Manufacturing Forum (2011, 2012) reflected the challenges and future orientation of the proposed development. ManuFuture as a trans-sectorial Platform (component- and machine-industries, automotive, aerospace, electric, electronics, etc.) is an organ which combines the interests of thousands of companies, involved in manufacturing of goods.

The mission of the European Technology Platform ManuFuture is to propose, develop and implement a strategy based on research and innovation, capable of speeding up the rate of industrial transformation to high-added-value products, processes and services, securing high-skills employment and winning a major share of world manufacturing output in the future knowledge-driven economy.

ManuFuture developed the Vision 2020, the Strategic Research Agenda (SRA) and Road Maps as contributions to the European Research in FP7 and the Factory of the Future (FOF) initiative. The vision was mainly influenced by the challenges towards competition and sustainability by transformation from cost orientation to high-adding value with technical and organizational innovations. ManuFuture proposed fields of proactive actions for cooperative research in Europe. [1,20]

The dynamics of change in the global economy, the financial crisis with impact on manufacturing industries and global, societal “megatrends” require new strategic orientations and long term objectives. New strategies are required to stop the deindustrialization of Europe and change the objectives from economic to

4 2 ManuFuture – European Technology Platform for Manufacturing

Fig. 2.1 European Technology Platform ManuFuture: Initiatives for sustainable growth

ecologic and social efficiency. It seems to be the most important task for Europe to fight against unemployment by adding value. Under the impact of “megatrends” a radical change of the strategies is required.

This paper is a contribution to the strategic research in the area of manufacturing by opening the perspective to 2030 and reflecting the societal grand challenges. This paper is a contribution to the long-term development in manufacturing with visions and strategic orientations in Research, Infrastructure, Education and Policies to activate the European potential on the global markets (Figure 2.2).

Fig. 2.2 Action fields of ManuFuture

CIRPInternational Academyfor Production Engineering

MANUFUTURE EuropeEFFRA European Factory of the Future Research Association

National Platforms

Regional platformsRegional cluster

Sustainable growthCIRP White paperGobal standards

Vision 2020 – Vision 2030Strategic research agendaManufuture road mapsFP 7 – Horizon 2020PPP-Factory of the future

National research initiativesNational programsNational infrastructureEducation programs

Regional - networkingSmart specializationCenters of competence

MANUFUTUREEU

MANUFUTUREnational

MANUFUTUREregional

UniversitiesResearch

organisations

GlobalCommunity

EFFRA

Industrialenterprises

2008 2012 2020 2030

Growth

FOF 7th FP

FOF Road Map Horizon 2020

Manufacturing 2030

Stop of de-industrializationby emergingmanufacturing

Efficient infrastructure

Education for futuremanufacturing

ManuFuture SRA

Economic crisisFOF=Factory of the Future

ManuFuture – European Technology Platform for Manufacturing 5

The European Commission proposed the Horizon 2020 Framework Program for Research and innovation. 2020 is the time scale for actions in the research and innovation program. Taking into account the life-cycle of technologies from basic research and invention to implementation in manufacturing industries, it seems to be advantageous to have a time scale of more than ten years to reach measurable effects in production industries. That is the cause of an orientation towards manufacturing 2030.

Europe has a long history in manufacturing. Manufacturing influenced culture, welfare and social development. Technological and economic changes caused revolutions and social changes. Any change of paradigms in manufacturing will even change policies in the future. At the beginning of this century, a fundamental change is necessary to continue welfare and culture in a long-term perspective.

This book starts with the role of manufacturing in the European economy. Main global trends, so called “megatrends” and resulting challenges have an impact on the long-term vision and concrete objectives towards a sustainable and global manufacturing development. Four major topics of factories of the future explain the long-term visions to adding value, employment and the efficiency of factories. Action fields are contributions to the necessary change and innovation of manufacturing.

Understanding factories as a socio-technical system, whose effectiveness depends not only on companies’ internal performance but even on the peripheral public system, it is necessary to include the public infrastructure and the research system in the road maps for change. Science, industry and public communities must concentrate their competences to reach long-term objectives. Taking into account the economic differences in European countries it seems to be necessary to integrate regional structural development in the long-term roads to reindustrialize Europe.

Fig. 2.3 Content of the book

4 majortopics forfactories

Manufacturing thebackbone of

European economy

Global megatrends

Objectives

Action fields- Business system- Innovation in products and processes- Knowledge-based engineeringEmerging technologiesPublic infrastructure for growthEducation and skillstandards

Sustainable and competitive development….

• High-adding value• Employment• Economic, ecologic

and social efficiencyin manufacturing

…back to factories with regional / local roots in urban environment

Science

Industry

Public

6 2 ManuFuture – European Technology Platform for Manufacturing

This book reflects on the long-term perspectives of manufacturing as part of the European economic system (Figure 2.3). It defines major topics of manufacturing and contributes to discussions of core and additional fields of actions to support the European development. Science, research and factories are elements of the European culture. They are embedded in the socio-economic system as elementary parts of the global eco-environment.

It gives science, industries, political, public and private organizations perspectives for the future by taking into account the global challenges and “megatrends”.


Chapter 3

Manufacturing the Backbone of the European Economy

More than 70 million people in Europe work directly or indirectly in adding value by making technical products for private and industrial markets. Forty industrial sectors produce a wide spectrum of products from technical consumer goods up to complex investment goods and systems. They operate in a global market and play a significant role in the economy of Europe, influencing the way of work, employment, income, welfare and the culture. European welfare strongly depends on the economic, ecologic and social efficiency of manufacturing. Manufacturing is the Key Economic Area to create high-adding Value by transformation of material and energy to products. It is essential to concentrate forces in R&D for competitive and sustainable development in the global environment with its rapidly changing economic factors and new grand societal challenges of our times.

Manufacturing demonstrates a huge potential to generate wealth and high-quality, adding value jobs. In 2006, the total number of manufacturing enterprises in the EU-27 non-financial business economy was estimated as 2.3 million, representing a little over one in every ten (11.5%) enterprises within the EU-27 non-financial business economy. Manufacturing enterprises provided employment for 34.4 million persons. This was equivalent to 27% of the employment in the EU-27 non-financial business economy. The EU-27 manufacturing sector generated EUR 6,816 billion of turnover in 2006, of which EUR 1,712 billion was value added. This was equivalent to 30% of the value added in the EU-27 non-financial business economy. On average, EUR 49,700 of value added in manufacturing was generated by each person employed. Total investment by the EU-27 manufacturing sector was valued at EUR 238 billion in 2006, equivalent to almost 14% of the manufacturing sector's value added [2].

The European manufacturing is a dominant element of the international trade. The 27 Member States of the EU exported manufactured goods to the value of EUR 3,512 billion in 2007 (NACE Sections C to I and K). Extra-EU trade in manufactured goods resulted in a trade surplus of EUR 107 billion in 2007.

Indicatively, the European machine tools industry is leader on the global market. The global market for the production of machine tools amounted to 55 billion € in 2008, 44% of which was produced in Europe. European machine tool

8 3 Manufacturing the Backbone of the European Economy

builders exported 71% of their production in 2008, amounting to 55% of total global exports (17.6 billion €) [3,4].

Manufacturing is a substantial activity with respect to its environmental impact. Manufacturing addresses today a constantly increasing demand for consumer goods, since living standards are on the rise. As a consequence of this trend, the consumption of raw materials and energy from the manufacturing industry keeps increasing. In 2005, the energy consumption of manufacturing industry was 297 Mtoe (million tons oil equivalent), which accounted for 27.9% of the total energy consumption in Europe [5]. Moreover, manufacturing is one of the primary sources of hazardous emissions and waste generation. The manufacturing industry emitted the equivalent of 910 million tons of carbon dioxide (CO2) in 2000 [Eurostat, Statistics in Focus, Environment and Energy, 16/2006], while 32.7% of the overall waste generated in Europe comes from the manufacturing industry [6].

Manufacturing activity is important for SMEs. SMEs are in fact, the backbone of the manufacturing industry in Europe. Micro, small and medium enterprises provide around 45% of the value added by manufacturing, while they provide around 59% of the manufacturing employment [3].

Manufacturing is critical for emerging markets. New markets, driven by advances in science and innovation, will revolutionize Europe’s capability to span manufacturing across traditional and new industries. Building on an excellence in Europe’s scientific capability and burgeoning industry base, such markets as industrial and medical biotechnology, printed electronics and regenerative medicine, are areas where Europe can become dominant in high-value manufacturing through new processes and business models. These new markets offer significant environmental and social benefits, with industrial biotechnology providing alternative production processes to oil- and gas-based chemicals and regenerative medicine delivering improving healthcare and possibly cures for degenerative diseases. Forecast global markets are £150-360bn by 2025 for industrial biotechnology with great opportunity for Europe to lead because of its regulatory framework [7].

Manufacturing is critical for research, education and innovation. Manufacturing accounts for 82% of the total business enterprise sector (BES) R&D expenditure. In 2004, manufacturing accounted for 101,132 EUR million. Indicatively, in 2006, DaimlerChrysler and Siemens total R&D investment was 5,234 and 5,024 EUR million respectively. Also in terms of number of researchers, manufacturing is by far the most important sector of economic activity in 2004 in the EU-27. In 2004, it made up 70.0% of the entire BES. Manufacturing accounted for 426,748 business enterprise researchers, while overall R&D personnel in manufacturing enterprises totaled more than 800,000 (in Full-Time Equivalent). In 2005, 2,357,666 students were participating in tertiary education in engineering, manufacturing and construction (EU-27). That accounted for 3.7% of population aged 20-29. At the same year, there were also 73,001 doctoral students in these scientific fields. Manufacturing pursues innovation, as well. A high level of

3.1 De-industrialization in the Developed Countries 9

industrialization results in a high number of patent applications. In 2004, Germany, France and UK accounted for two thirds of all patent applications to the European Patent Office from the EU-27. In the same year, 41.5% of all European enterprises in industry were engaged in innovative activity. A percentage of 37.4% of those engaged in innovative activity introduced new or improved products to the market [8].

3.1 De-industrialization in the Developed Countries

European industries constantly lost shares of the national GDP. Migration of products and consumption from the global centers of innovation (US, Japan, Europe) to emerging regions (Brazil, Russia, India, China, South Africa) were caused by the transfer of knowledge in expanding economies. Many companies profited from lower costs of manufacturing by outsourcing and shifting capacities. The growth of emerging regions offered markets for high technologies and factories equipment. Structural changes of the industrial areas were consequences of the past. Concentration on innovative technologies and service-oriented areas could not adjust the loss of adding value and created unemployment. Continuing the business strategies will destroy many traditional sectors of manufacturing (Figure 3.1).

Fig. 3.1 Share of manufacturing industries in the GDP in industrialized countries

The value-share of manufacturing industries is decreasing in all industrialized countries - but increasingly so in the BRIC states. The migration of consumption and production from industrialized to developing countries – driven by the global exchange of knowledge – is still ongoing. Global logistics, growing consumption, market developments and the focus of business systems on short-term profits accelerates the migration of production. Emerging technologies such as electronics, ICT, nanotechnologies, biotechnologies did not have the power to compensate for the loss of production and employment in Europe and other industrialized countries.

The cost of labor and costs per unit increased in less developed regions and accelerated the migration of production by losing productivity in manufacturing.


Some regions in Europe and many companies – mainly in central Europe – negotiated the economic crisis by unconventional activities such as obtaining human competence (engineers and workers), innovation in times of declining markets, global initiatives in growing market, etc. Some regions in Europe lost their businesses by the fact of missing productivity, migration of manufacturing in emerging economies (BRIC states), low financial reserves, missing public support, etc…

Economic cycles are known in manufacturing. Degression phases initiated dismissions of enterprises and pushed technological or methodological innovations. Such events happened in the past with the implementation of flexible manufacturing systems (1970–1980) or with lean production systems (1990–2000). The last crisis – caused by the financial system – was extreme and happened after a ten years’ growth.

The causes of the degression are manifold but it is obvious that short profit strategies destroyed parts of the industrial economic base in Europe. Short profit strategies accelerated the migration of production to lower developed region in the world. They forgot the activation of human resources and investment in innovations for manufacturing even in sectors where the basic research opened long term potentials. In the consequence Europe lost value of work from round about 10 million employees.

Economic cycles accelerated the process of de-industrialization. Missing trust in the future and to low investments in R&D and reduction of resources instead of high performance manufacturing are typical behavior patterns of a business system, which is only short term oriented (Figure 3.2).

Fig. 3.2 EU27 manufacturing production growth and industrial confidence (1993-2011) Source: Eurostat / DG Economic and Financial Affairs [2]

3.2 The Manufacturing Sectors 11

The financial crisis intensified the existential problems of manufacturers in many regions in Europe by:

• insufficient financial funds; • cycles of markets and global standards; • expanding costs of engineering; • insufficient infrastructure and periphery.

The governmental expenditures for R&D in Europe are lower than the objectives formulated in the Lisbon Agenda 2000. States pay for the social areas to maintain the European standards of living and focused mainly on so-called key-enabling technologies. Europe lost mass production of low technologies (R&D > 3 %) and with this the work base for low-skilled people. Public debt increased and reached a critical level without reserves.

Manufacturing is in a critical situation – caused by the migration of production and consumption of products from Europe towards other emerging countries – and economic crisis and technological changes. High unemployment without perspectives, and especially the unemployment of young people, is the breeding ground for revolutions, if there are no long-term perspectives for a better future … It is the time to change the paradigms towards future requirements and grand societal challenges.

A fundamental change in the business model and strategies is required to stop the process of de-industrialization by concentrating on adding value by European manufacturing of products and services along the life cycle.

Crises are opportunities for a radical change of paradigms. Now it is time to change the paradigms towards sustainable globalization in manufacturing and give industries, research institutes and policymakers orientations to solve the challenges ahead. Only a radical change of the economic system towards long term sustainability and implementation of knowledge can be an answer for the future.

3.2 The Manufacturing Sectors

Manufacturing industries include more than 40 industrial sectors. They can be divided in four groups with different technological profiles. Basic materials and semi-finished goods such as steel, aluminum, polymers, etc. are energy-intensive sectors. Capital investment goods industries produce - necessary equipment. Most of them are highly specialized and are able to solve the manufacturing tasks and problems in the third sector: manufacture of technical consumer goods. This group operates usually customer ---driven. The fourth group is related to services for products in their life cycle. It includes fields of engineering, marketing, sales, maintenance, consultancy, factories services, R&D services, education, training, administration, etc. (Figure 3.3).


The sectors of the capital-intensive goods produce the equipment for factories. This includes hardware and software for the producers of technical consumer goods. Continuous and customer-driven innovation can keep them in a leading position in the world markets. Many companies in this sectors are small and medium. High flexibility and reliability characterize their operations. Many of them are engaged in regional societies and regional networks. Some are world champions in specialized (niche) sectors.

Fig. 3.3 Industrial sectors of manufacturing

The sectors of technical consumer goods operate global and are often OEMs with global networks of suppliers. Quality is the condition of success. The competences in research, engineering and manufacturing are added by the management of supply chains and global sales.

Both sectors have expanding fields of services along the life cycle of products. Economic results in services often compensate for losses in production.

Conventional and basic technologies – that have been continuously developed – are the basis of manufacturing of each technical product. Not single but market- and customer-driven innovations demand for continuous progress in quality, productivity and efficiency of resources (Figure 3.4).

Technical equipment (machines, systems, tools, etc.) and skill contribute to economic competition. Europe still leads in manufacturing technologies but is not effective enough at winning back shares of industrial production and reducing unemployment, mainly caused by high labor costs.

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ital I

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sive

Goo

ds Systems, Machines and Equipment (tools, etc.) for Manufacturing

Equipment and Systems forTransport and Logistics

Technical and MechatronicComponents

ICT for Manufacturing

Manufacturing Systems forFood, Pharma, and Biochemical

Manufacturing Systems forConsumer products

Aerospace, Shipbuilding, Trains

Electric and House-Products

Automobile and Suppliers

Food, Pharma, and Bio-chemicalProducts

Consumer ProductsTextile, Leather, Sports, …

Agriculture, Furniture,

Materials and semi-finished goods - Recycling Industries

Services along the product life cycle

3.2 The Manufacturing Sectors 13

Fig. 3.4 Engineers’ industries are the enabler of manufacturing development

Manufacturing industries can be characterized as the engineering industry:

• able to create technical solutions for problems, customers and markets; • able to manage technical complexity; • able to generate high reliability and quality.

One example of the competences of European manufacturing industries and relations between the sectors of capital und technical consumer-industries is shown in the next figure.

Fig. 3.5 Flexible car body manufacturing system (Source: Daimler)

Productrequirements Engineering

ProductionControl

Manufacturing Engineering

System-integration

Productsales andaftersales

Product Development

Production

Life cycleknowledge

Adapt/Reuse

Key enabling technologies

Emergent technologies and methods for the Factories of the FutureFactory NetworksManufacturing plants/systemsManufacturing EquipmentModules/components

It‘s a task for Engineers…

Technical System-Robots-Handling devicesmechanic, electric, pneumatic-Fixtures-Joining tools-Transport system-Storage-Measurement-Sensors-Test equipment-ControlSystem-Monitoring System-RC-Programming-Security devices-Electric System-Electronic System-Information system-Media Supply-Air, Heat, Cooling-Watersupply


Modern factories for car bodies are highly automated. Robots work in technical sequences to join sheets in transfer lines. Product-specific tools fix positions to reach the quality tolerances and support the joining processes. The system is flexible and adaptable to variants of products and customers’ special orders. All robots are linked in a control and monitoring system. The role of workers has changed from direct operations to programming and supervision.

The figure 3.5 shows an example from automotive car body assembly in which many robots collaborate in the process sequence from sheet-metal parts to the body. The system is able to make different (customized) car-bodies with high number of variants. The picture of a modern flexible assembly system for car bodies is typical for the collaboration between manufacturers of technical equipment and automotive manufacturers. Manifold technical solutions are integrated to a holistic factory system which has to fulfill the special requirements of variants-production. Many specialized companies deliver technical components with high reliability and performance.

Digital tools are used for engineering of such systems. The management of operations and orders is supported by administrative systems, which are linked to suppliers and logistics. Flexible automation was the key-enabling technology for car-body assembly. More than 100 companies are engaged in the implementation of one system.

Flexible automation is an answer for expanding variants in design. But each new product generation requires high investments in a customized manufacturing system.

3.3 European Leadership in Manufacturing and the Crucial Role of Manufacturing in the Innovation Process

3.3 European Leadership in Manufacturing and t he Crucial Ro le

Many European equipment manufacturers are leading world-market positions were engineers and management reflects on specific customers requirements and follow the “megatrend” of individualism. High Capability to solve customer requirements, Flexibility in operations and business and Reliability characterize the way of the champions.

In principle, mass customization could be one of the strongest contributions to stop the migration process or reestablish mass production in Europe. This requires leadership in quality, time and cost in all basic technologies embedded in a (European) holistic production system and oriented to efficiency of resources. The coming structural change in manufacturing is of course the biggest chance for Europe in the global markets. Manufacturing industries are able to innovate the European industry with solutions for the future and factories, which may fulfill the demands of future trends.

Engineers – industries, such as machine and tools industries, create the technical equipment for manufacturing of products. Their solutions influence productivity and quality in the user-oriented industries like automotive, aerospace,

3.3 European Leadership in Manufacturing and the Crucial Role 15

electrics, technical consumer goods, etc. The competence of the engineers’ industries is the enabler of factories of the future (Figure 3.6).

Therefore, European leadership depends on the innovation and emerging technologies in engineers’ industries. Small and medium enterprises (SMEs), deep knowledge and a wide spectrum of different basic technologies, flexible and mid-/long-term business models are backbones in the global markets. Only these industrial sectors contributed with their products to the success of some European regions with their high export rates. [1]

Fig. 3.6 Strategies of manufacturing industries

The following factors are the critical success factors of engineers’ industries:

- SMEs – many of them family-owned - high-net equity – high vertical range of manufacturing - regional networking – regional engagement - specialization in basic technologies – leading in core technologies - co-operation with application-oriented research centers - high rate of skilled labor and engineers – dual system - high quality and capability - high flexibility - high reliability - customer-driven innovation

The strategies of manufacturing industries to re-industrialize should be focused on innovation to add value and growth by higher efficiency of the resources required for products. First of all it is essential to concentrate the manufacturing system on customizing and customer satisfaction by high quality. Taking the life cycle of products into account, this strategy will open the field of services along the life of each technical product. The second line of strategic development reflects to sustainability of products and manufacturing processes including the sustainability of the management system. High economic, ecologic and social efficiency characterizes this strategy. The third line reflects on global standards for manufacturing. Global technical and social standards - made and leaded in Europe

1 3

2 41StrengthenCustomization

3

2

4

Leadership in Sustainable Manufacturing

Global Standards

Factories of the Future

Adding Value and Growth

Efficiency

Competitive& Sustainable Development

EuropeanInfrastructure

Technical, economic, ecologic and social Standards


– can contribute to fair trade and exchange of products, information and knowledge in global manufacturing networks. The development of standards requires long term views based of research.

Last but not least it is necessary to follow long term paradigms and resulting visions for factories of the future which are based on perspectives and challenges for sustainable growth taking the societal challenges and trends into account.

European manufacturing industries have the potential to recover positions in world markets. Their strategies require a common understanding of politics and societies by using the options of future trends.


Chapter 4

Global “Megatrend’s” Grand Societal Challenges

European manufacturing industries need the orientation towards 2030 for the strategic orientation of research, national and regional priorities, and enterprise developments. The vision, elaborated by ManuFuture reflects the fundamental changes in the manufacturing area as formulated in the past and takes into account the lessons learned after the economic crisis 2009/2010, which opens the possibilities for future markets by Key Enabling Technologies (KET). The Vision 2030 is a contribution to the next generations of manufacturing taking into consideration the impact of global “megatrends”.

4.1 The Impact of “Megatrends”

Global “megatrends” cause a global structural change in nearly all sectors of manufacturing by influencing technologies of products and processes, human labor, management and resources (Figure 4.1).

Fig. 4.1 “Megatrends” influence manufacturing development

Urbanization Environment, Mobility, Traffic, … New products for “mega-cities” Work in “mega-cities” Factories in urban environment

Sustainability Priorities for economic, ecologic, social

efficiency of manufacturing Finance

Turbulences in finance of investment R&D and long-term assets Economic cycles

Public debt Adding value - resilience Growth for employment Taxes, general conditions

Ageing Future markets and products Human work and organization

Individualism Individual and customized products Relation of human being and working

conditions Knowledge in the global ICT

Knowledge driven product development Optimization of manufacturing processes IP and IT security

Globalization Global process-standards in OEMs Products and manufacturing

technologies for the global markets Local conditions and regulations Competition of locations

18 4 Global “Megatrend’s” Grand Societal Challenges

In the past, innovation processes in manufacturing were mainly driven by technological and methodological developments to increase productivity and flexibility in the market-oriented business. The future development of manufacturing is massively influenced by turbulent factors, which change markets and processes. They offer new opportunities and cause structural changes.

Ageing (population) influences future products and markets and the kind of work of 100 million people in Europe’s manufacturing. Ageing people are a resource with high levels of experience but special human work requirements. More and more direct manual work in manufacturing is replaced by indirect work caused by ongoing automation and engineering and pre- and after sales business. The use of ICT almost all workplaces opens new fields of work for older people, human machine interfaces and integrating knowledge in manufacturing for adding value.

Individualism boosts the customization of products towards complexity and variety of products and processes. Individualism is supported by the application of internet-technologies in sales and sourcing. Individualism requires and leads to reduction of distances between manufacturers and their customers. It will contribute to the migration of manufacturing sites to the centers of markets. Individualism requests the competence to design and manufacture individual products in high dynamic, high performance and changeable manufacturing. Taking into account the industrial structure of wide, deep and broad competences in manufacturing technologies and many highly specialized suppliers (mostly SMEs), it is evident, that individualism is the biggest chance for European development by serving customers with individual products and product support. Individual products made for individual customers require a flexible highly productive manufacturing technology with ahigh level of quality and reliability.

Knowledge is the key ingredient for adding value. As a result of fundamental research and education knowledge will drive technologies towards technical innovations and produce complex products with efficient processes. Already today about 20% of the workforce in industry are engineers. All indicators show increasing demand of knowledge: customer-driven innovation, reliability and capability of technical solutions, high efficiency, high technical utilization, adaptability, flexibility, new emerging technologies, etc. Knowledge is the future source for adding value by the integration of knowledge in products and machines by cognitive methodologies to increase the utilization and efficiency in the technical life of each product. Scientific-based knowledge supports the learning effects in manufacturing. The requirements of qualification and skill of manufacturing people are increasing, caused by the complexity and variety of products and processes. The protection of IP and the IT-Security in the global ICT-Environment are new and critical success factors for all companies and especially in the future “internet-society”.

Globalisation and global networks in manufacturing is a fact today. The migration of consumption and production to the growing number of newly industrialized countries (mainly BRIC-states) is occurring. European manufacturers lost strategic positions in innovative fields of communication, but they still lead in the high level of flexible automation in manufacturing.

4.1 The Impact of “Megatrends” 19

Globalization, enabled by manufacturing and impacting on it, is an “epochal” revolution, started in the ‘90s. The globalization of the manufacturing ecosystem, driven by the pursuit of competitiveness – as shown by the recent work of the World Manufacturing Forum – is a key enabler of economic growth, higher-value job creation and a rising standard of living, in particular, in emerging nation economies. It also helps to establish, there, technical capabilities, such as: R&D, innovation, engineering, design and production of manufacturing equipment. All this is dramatically changing competition at global level.

New factors, continuously evolving, will be reshaping and driving manufacturing globalization, through the next decades. Such process will be influenced by complex macroeconomic and geopolitical challenges.

But globalization, while contributing to the global economy, has been and is raising dramatic short- as well as long-term problems, heavily impacting on society and the environment. To make globalization work better for the individuals who are left behind because of changes in international trade, and to reduce the inequality for the developing countries, as well as respecting the environment.

Global sourcing, production and distribution equalizes the quality and technology standards in the world. Different surrounding economic conditions influence the speed of migration.

Equalizing and global standardization of manufacturing technologies provide advantages for manufacturers who operate globally and benefit from regional economic conditions.

Urbanization changes the requirements for the way of life. Half of the world population lives in huge cities. The increasing world population is a resource for cheap workforces. Urbanization changes the requirements for future products (mobility, welfare, culture) with consequences in markets, logistics, traffic-technologies and regulations for manufacturing in the huge cities (personal resources, restrictions, work regulations, etc.).

Some huge cities have extreme environmental and traffic problems. High rates of unemployment cause poverty and crime. Generating jobs by manufacturing low-tech products is one of the central objectives in the world.

Sustainability is a common interest of the world’s societies. Strong environmental legislation and enforcement in Europe has reduced the environmental impact and the consumption of energy and materials. It is the critical success factor for manufacturers. Material and energy are the main resources for technical products. Sourcing of critical materials (e.g. rare earth) depends on the costs of their exploration. The costs of materials and energy are increasing worldwide, so industry needs solutions to reduce the consumption of materials and energy, where ever possible [22, 23, 26, 29, 30].


Process energy is a factor of cost. The change from fossil energies to renewable energies is a strategic option for nearly all manufacturing sectors.

Turbulent finance markets impact highly on the investments in manufacturing -- as we learned in the economic crisis and other economic cycles. Many enterprises did not survive the maelstrom of global finance. New models of management, finance and liquidity are required to reach higher resilience and fitness in the global turbulent environmental and national conditions.

Resilient economic principles, a banking system oriented to sustainability and survival of enterprises in economic cycles require innovation in the finance system especially for SMEs. Investment in R&D and manufacturing equipment is insufficient for a strategy for growth.

Public debt of states influence their taxes and investment in the infrastructure (research, education, communication, transport) with impact on the conditions of manufacturing. The states are highly interested in increasing the adding value by manufacturing and have to create the preconditions for sustainable growth (precondition of employment) in manufacturing.

Taking into account all these “megatrends”, a fundamental change in manufacturing is necessary to hold or expand the positions of European manufacturers in the global economy.

It seems to be necessary to co-ordinate research, infrastructure, education and policies in Europe towards the opportunities for growth and structural change. Infrastructure includes the public environment around factories with non industrial – governmental – areas like water, energy-supply, transport (sourcing, disposal), mobility, ICT, research-centers, public services, social facilities, health, etc.

Fig. 4.2 “Megatrend” and fields of policy, strategies and actions

Individualism

Politics

Education

Infrastructure

Manufacturing

2030Research

Globalization

Ageing

Sustainability

Finance

Technologies

Urbanization

Public debt

Knowledge and ICT

Population

Resources

Customization

4.2 Manufacturing Is the Solution Provider for Grand Societal Challenges 21

Education takes care of skill and qualification for future manufacturing. A central aspect is the unemployment of young people and the ageing population. Smart policies should activate creativity, (de-)regulation, laws and standards (technical, social, ecological). It would be a great reform and push of growth, if regulations would take into account the “megatrends” (Figure 4.2).

Contributions of research topics create governmental bureaucracy. The impact on growth of past topics was often only marginal. This makes it necessary to generate a climate of innovation, which is based on knowledge and high skills, qualification as well as interdisciplinary work by strengthening regional cooperation.

The creation of jobs by investments in products and processes for competition and sustainability is the major task of the future. Re-establishing mass production in the regions of high unemployment by manufacturing technologies, which fulfill the requirements of future sustainable and competitive manufacturing, is one topic where research, infrastructure, education and policies can give answers to societal and economic problems. Investment for creating value is a better answer than capital investment in the global finance system.

The “megatrends” of urbanization and sustainability require a focus on the efficiency of resources – mainly material and energy – on the way towards leadership in sustainable manufacturing. This orientation gives people and entrepreneurs the hope of a successful future with a high potential in the global markets. But it requires rethinking the short-term profit-oriented business models and substituting them with long-term sustainable development. 4.2 Manufacturing Is t he So lut ion Provider for Grand Societal C hallenges

4.2 Manufacturing Is the Solution Provider for Grand Societal Challenges in the EU Horizon 2020

4.2 Manufacturing Is t he So lut ion Provider for Grand Societal C hallenges

In the preface of “Europe 2020” [9] one can read:

“… That is the purpose of Europe 2020. It's about more jobs and better lives. It shows how Europe has the capability to deliver smart, sustainable and inclusive growth, to find the path to create new jobs and to offer a sense of direction to our societies …”

Fully in line with this vision, European manufacturing industry primarily aims to have a fundamental impact on “Growth and Jobs”. “Growth and Jobs” is a prerequisite for a societal sustainability addressing the needs of the citizens and the environment, and as such it is considered a major enabler to the achievement of all EU grand societal challenges.

It is envisaged that the continuation of the joint EC-industry investments on cross-disciplinary manufacturing research would allow the contribution to major social-driven targets for European manufacturing:


- create new jobs in manufacturing

- increase value added in the life-cycle of customized technical products by manufacturing and manufacturing-related services

- Environmental impact:

o reduce emissions of greenhouse gases from manufacturing activities

o reduce energy consumption in manufacturing activities

o reduce consumption and substitute critical materials

o reduce waste generation from manufacturing activities

o recycle materials

- increase business enterprise R&D expenditure in manufacturing

- increase the number of manufacturing enterprises engaged in innovation activities

- bring all manufacturing engineering graduates and doctorate holders into manufacturing employment

The Europe 2020 Strategy highlights the short- and long-term challenges Europe has to tackle. The immediate challenge is putting the European economy back on an upward path of growth and job creation, while long-term global challenges comprise inter alia globalization, pressure on resources and ageing population. The 2020 Strategy underlines the role of ”technology” as the ultimate solution-provider for tackling these challenges. It shows the way forward as investing in key enabling technologies, which will help innovative ideas be turned into new products and services that create growth, quality jobs and help address European and global societal challenges.

Nevertheless, one should keep in mind that today, every high-value product or service, which relies on key technologies, has a manufacturing process behind it. Manufacturing enables technological innovations to be applied in goods and services, which are marketable in the marketplaces of the world. Products of high value and with superior features, enabled by KETs, cannot generate any value for society and economy, if they are not affordable or if they are not put on the market in time. Advanced manufacturing not only allows turning technological achievements into products and services, but it also enables a cost-effective, resource-efficient, and timely production and commercialization.


Chapter 5

The Objectives of Manufacturing Development

The influencing “megatrends”, the experiences of the actual financial crisis and opportunities of new technologies require a radical change of paradigms from economic orientation towards sustainable development in all sectors of manufacturing in the next decades. The objectives of manufacturers change from cost and short profits to competition and sustainability.

5.1 Leadership in Manufacturing with European Culture

The strategies for manufacturing development and main objectives have to be changed for global competition and sustainability to adding value and growth. Based on European competences with more than 100 years’ experience in manufacturing the main objectives of future development in all sectors can be summarized as shown in Figure 5.1.

Fig. 5.1 Objectives of future manufacturing development

Leadership by competitiveness of European manufacturing industries

to survive in the turbulent economic environment

to compensate for migration and consumption of techologies

to generate more and better jobs

to stabilize economic results (growth)

to ensure welfare and social standards of living

Leadership in manufacturing technologies and implementation

to support innovative products and processes

to lead manufacturing with gloabal standards

to guarantee human and social standards of work

Innovation by environmental-friendly products and manufacturing

to reduce the environmental losses and emissions

to change the consumption of limited resources

to maximize the benefits of each product in the life-cycle

24 5 The Objectives of Manufacturing Development

Manufacturing industries can change their strategies and systems by implementation of these general objectives and transfer in the operating business processes. It seems to be advantageous to follow long term-visions of the European way of manufacturing by a new culture of management and technologies which are not only dominated by economic objectives but a set of objectives. This will open new strategic positions in the global markets and leadership in manufacturing.

Following the grand societal challenges and the orientation to competitiveness and sustainability strategic objectives can be summarized as shown in the next figure (Figure 5.2). Global competition and sustainability are the main objectives to strengthen the European development into a smart, sustainable and inclusive economy, delivering high levels of employment, productivity and social cohesion. This is possible by taking a holistic view on factories as complex socio-technical systems, in which the transformation process is managed towards measurable objectives. Technical and methodological innovations create a new culture, which enable a strategic orientation towards the “European Manufacturing system”.

Today’s holistic manufacturing systems, implemented already in many companies as standard, are part of the management philosophy. They were influenced by the Toyota Manufacturing System of 30 years ago and are well known as “lean manufacturing”. The philosophy follows the flow of value generation in the chain of processes from customer requirements to finished products. The elimination of waste (time, resources, etc.) and strong quality procedures created of set of methodologies for practice to optimize the efficiency and performance with great success. This philosophy can be added o by “sustainability objectives” and methodologies for reduction of environmental emissions and social, ecologic efficiency. In summary, Europe is able to implement a new philosophy of future manufacturing with high benefits for global competition and sustainability by overcoming the limitations of the Toyota Production System (Figure 5.2).

The economic, ecologic and social efficiency can be reached by a permanent innovation – based on fundamental research – and optimization of all elements and their relations in the process chains:

- from basic research to implementation; - from raw material to the end of life of each product; - from customers demand to renewing of products and recycling of materials.

Experts agree that it is necessary to activate the potential in all manufacturing processes required for future products, e.g. basics and conventional technologies because of their big impacts on competitiveness and ecologic, economic and social efficiency. Following the life of products from idea to the end of life, it seems to be possible to add value by product-oriented services. Moreover, the key enabling technology is the infrastructure for industrial IT.

5.1 Leadership in Manufacturing with European Culture 25

Fig. 5.2 Breakdown of manufacturing objectives for operations and management

Companies need engineering competences to implement and manage advanced manufacturing technologies for changeability, flexibility and performance. In the future they can implement technical intelligence – made by knowledge and models for real time control and automation to reduce the consumption of energy and material (zero defects, no scrap, lean technologies). The link of digital engineering and digital administration with the technical systems enables solutions of real- time operations in a digital environment (cyber-manufacturing). Interdisciplinary development (mechanics, mechatronics, informatics) is the critical success factor. Europe has the potential to define the global standards and lead the development of advanced manufacturing systems.

Sustainable products reduce the consumption of energy in the usage phase. Intelligent solutions for technical components and technical systems require the knowledge of application under real conditions as well as fast reaction in changing markets in the turbulent economy.

To realize growth and reduce unemployment by bringing back volume production to Europe, we need a focus on conventional technologies, but in a way that manufacturers fulfill the requirements of economic, ecologic and social standards on a European level.

Green manufacturing is the grand opportunity for the transformation of the European manufacturing to the requirements of the next decades.

Global competition and sustainability

…..along the life-cycle of products

TransformabilityFlexibility

High performance

Technical intelligence

Digital engineering

Innovativetechnologies

Sustainable products

Economicefficiency

Ecologic efficiency

Social efficiency

Greenmanufacturing

Factory of the future

Globalnetwork

FactoriesSegments System-

boundaries

Environment

Adaptivemanufacturingsystems

MachinesWorkplaces

Informationmaterial

ProcessesOperations

Employees


5.2 Adding Value for Growth and Employment by Manufacturing

Manufacturing is a transformation process to add value from input (material, energy, etc.) to output (products, services). Factories, in which the transformation process is realized, are complex socio-technical systems, which have to be adapted to the customer-driven market requirements. The efficiency of this transformation process is the critical success factor, where the costs of input are increasing and the revenue depends on global competition. The purpose of manufacturing is to create value. Factories may be defined as places where society concentrates its repetitive value creation process [10,11,12, 13,14].

Main economic/ecologic perspectives are:

- innovations for efficiency to reduce the consumption of energy and materials; - recycling and reuse of materials; - innovations for basic process technologies.

The main resources we have in Europe for competitiveness are people and workforce (unemployment) and their knowledge and skill. The infrastructure of our regions with a traditional culture in manufacturing is the base for future competition.

Manufacturing as a socio-technical element includes humans as workers, engineers, technicians, administrators, managers. The efficiency of the transformation process depends on the technical system and the equipment of factories, were the process of adding value happens. Logistic systems connect the processes in the value chain from raw materials to finished products.

Europe has a well-developed infrastructure for transport but limitations in the capacities. Transport is a cost driver and not a value-creating process. The reduction of transport and logistics seems to be necessary in view of urbanization and traffic problems in the cities. Due to these requirements, it is necessary to rethink the processes of outsourcing and networking over long distances. Factories of the future produce in the market centers and co-operate in the digital world.

The necessary concentration on the value-creating processes makes it necessary to reduce the process chains and fight against loss of materials, time and costs (lean manufacturing). The concentration on process technologies, in which the value is created, demands the reduction of waste and emissions and technologies to recycle all materials with high productivity (Figure 5.3).

Adding value is the difference between Input and Output – usually measured in money.

For adding value are resources required. Because of missing raw materials, adding value is mainly created by the work of people and competitive advantageous achieved by manufacturing knowledge.

Remanufacturing and recycling are also areas of manufacturing. Many regulations in technical areas accelerated the process of the circular flow economy

5.3 European Production System 27

Fig. 5.3 The role of manufacturing as enabler and as value creator

and created innovative technologies. But - in view of increasing costs of material and the impact on the environment – the long-term goal are factories for adding value by remanufacturing and recycling, which recover nearly all materials used in technical products.

Besides the future emerging areas like Solar-, Photonics-, Micro-, Nano- and Biotechnologies, which require new industrial manufacturing solutions, even traditional technologies have a high impact on employment and high potential regarding the efficiency of resources [21].

Increasing costs of resources (energy, materials) and the environmental impact – driven by the global industrialization accelerate the change from traditional paradigms towards sustainable development worldwide. Therefore, the future paradigm is sustainable globalization.

5.3 European Production System

Manufacturing as transformation process has been influenced for more than hundred years by the Tayloristic paradigm. Taylorism was oriented to the effectiveness of human work. Scientific based methods allow the detailed analysis of processes and the optimization of single operations. Today, we understand manufacturing as a scalable, socio-technical system with elements (resources), which are embedded in logistic and information networks and relations between the elements of the system. Optimization is oriented to the best practice of each element and the efficiency of the networks e.g. supply chains. Flexible automation of processes (robots, NC-Machines etc.) was the main contribution to push the

Changing face of industry in EuropeIndustry will be the engine of the new low-carbon, resource-efficient

and knowledge-based economy

OutputProductsValue addedEmissions/Waste

InputEnergy, MaterialsMachines, Equipment

People Knowledge

Value

Life CycleHigh adding valueminimize input, maximize output

Competitive andsustainable

Manufacturing

CapitalFinancial resources


productivity, precision and capability of operations in areas which are outside of human performance (high speed, high volume etc.). The supply chains are dislocated. Computerized management systems coordinate the flow of material and control the processes. Computerized systems are usual tools for engineering, design and planning and administration processes (automation of human work). Information and communication technologies are standards in each operation in manufacturing. But in general, the structure of the industrial transformation process and manufacturing is still Tayloristic.

Division of labor was the basic paradigm for the industrialization and rationalization in the last century. Nowadays new forms of work organization like team-work are influenced by principles and methodologies of lean manufacturing which activated the logistic and performance potential in nearly all sectors with series and mass production.

The culture of Europe is the base for an own holistic production system. Manufacturing - a complex socio-technical system - needs standards of management, which follow principles of permanent system adaptation and system optimization. It has responsibilities for the internal system and their relations to the environment. It can have a high dynamic behavior with respecting the humans inside and their way of life outside.

Production systems are a set of regulations and methodologies for manufacturing formulated to achieve benefits in the efficiency of a complex and changeable system. Advantages result from each operation and from the system behavior. This model includes the labor relations and motivation factors for humans. The theoretical base has been defined already in some research projects. The system has to be added by environmental objectives and methodologies, which refer to the ecologic (green) efficiency.

Fig. 5.4 System view on manufacturing – the European holistic manufacturing system

• Manufacturing Network• Supply, Production, Distribution

• Locaction, plant, site• Segments: Workshops, Technologies• Manufacturing- / Assembly- Systems• Subsystems: flow of…

• Material, tools,• information, energy , air…

• Machines• Workplaces• Processes

System Levels of FactoriesScalable Structure of Factories

Environment

System

Relations

Subsystem System-boundary

Element Environmentalelement

Elements: Humans, Data, Information, Parts, Components, Products,…

Factories are complex socio-technical systemsThe Efficiency depends on the characteristics and properties of its elements

and relations and structure of the systems

5.3 European Production System 29

Holistic production-systems open the system boundary over the whole scale of operations in the life cycle of products. They follow the paradigms of sustainable development by optimization and permanent innovation and are able to adapt the systems’ architecture to the environment around.

In the age of information and communication, it seems to be of a fundamental objective to make the information and knowledge exchange a part of the production system. Regulations about ownership, information protection, trust and security of personal data are inherent parts of the production system.

The information technologies are the backbone of manufacturing and offer the potential for future optimization of the manufacturing system by activating efficiency-reserves in the processes and in the system-relations. Therefore, we see a long future in the manufacturing system development by advanced solutions based on systems theories and change from process optimization towards system self-organization and -optimization.

Factories are complex socio-technical systems, whose efficiency depends on the effectiveness of each element and the effectiveness of the system. The new paradigm – characterized by a system view (Figure 5.4) – links high performance elements to an adaptive system, which activates the potential of synergetic work.

The European Production System, which includes social and ecologic aspects is innovative and future-oriented by:

- Human-centered management and work organization;, - Human oriented work and innovative human – machine interfaces;, - Knowledge support at workplace to support employees learning capability;, - High-performance processes and process chains from raw materials to

finished products including the application of innovative materials and logistics;,

- High productivity and reliability of the manufacturing systems realized by intelligent, flexible automation;

- Implementation of industrial ICT in the life-cycle of products to maximize the benefits of each technical product;

- Resource efficiency including recycling and remanufacturing; - Flexible and event-driven workflows and operations:.

Industrial manufacturing first and foremost means high-value added products and services with the help of skilled people, their knowledge, factory equipment /machines and tools within industrial factories:

- high-tech products made by high-tech production processes (e.g.: future cars, high-tech machine tools, aircrafts, engines, high-speed trains, energy systems and accessories)

- as lean and clean as possible, - ideally in a zero-emission and zero-waste factory. Therefore, industry will inevitably be the engine of the future low-carbon and resource-efficient economy.

- Green manufacturing made by the fundamental attainment and knowledge of processes reduces the impact on the environment and enables operation in urban centers.

Competition and sustainability are the general objectives of manufacturing and the drivers for innovation. It is already known that sustainability is not a factor of cost


but even a contribution to increase productivity. This technical world has to be realized by engineers. Engineers create the technical solutions of products and processes. Their skills and their efficiency is one of the critical success factors.

5.4 Engineering and Skill as Key Enabling Technologies

It is the role of engineers to find answers for future sustainable products and manufacturing processes. It is the role of governments to set the framework conditions for the necessary structural change. It is the role of industries to create value by implementation the holistic production system for future transformation of resources to high added value products with high economic, ecologic and social efficiency.

The competence, required for continuous adaptation of the production system, is the critical success factor of manufacturing. Companies must be able to adapt their operations permanently on the requirements of changing products (product-innovation and customization) on dynamic markets and innovative technologies for manufacturing. High skill and experiences of engineers which use knowledge based engineering tools for adaptation can be defined as “advanced industrial engineering”. Interdisciplinary qualification in technologies, IT, economics and social competences in competences allow constant optimization and activation of the potential in production networks (synergy) as well as in the specific operations in processes.

Engineers create the production system. They usually follow company strategies and objectives by implementing the technical and operational system. Under the aspects of the above described holistic production system enables their work companies to realize ambitious innovations. Global competition depends today and much more in the future on the competences and skill of manufacturing engineering (Figure 5.5).

Fig. 5.5 Manufacturing engineering as key technology for adapting the manufacturing system

TechnologiesMarketsCustomers

Advancedindustrial

engineering

Products

Manufacturing engineeringWorkplaningOperationsTime, cost, quality

Strategies and technologiesSites, networks, investmentOrganizationPeople

Holistic production systemsMethodologies

Digital factorySystems and tools

Realization

5.4 Engineering and Skill as Key Enabling Technologies 31

All indicators of the technical developments show that the costs of engineering are increasing:

- Customizing and individual reliable solutions; - Increasing product complexity; - Engineered multi-materials - Mechatronic solutions with embedding electronics - Process capability - Technical support in the life cycle - Physical test of products, etc.

Experts expect an expanding demand for engineers in all phases of the life-cycle of products. Short time of implementation of innovations and the fact of high different requirements for approval and certification for global and regional markets are often constraints of innovations in the global area. Manufacturing experts expect that the productivity of engineers and skilled technicians can be increased to double by using state of the art high skills and ICT tools.

Most of today’s and tomorrow’s products are the results of cooperation. For this, engineers need an IT-infrastructure and a high variety of tools with standardized interfaces and IT-services along the product life-cycle. Regional co-operation is required for each innovation process in manufacturing to optimize the complex system of future technical solutions. Following this aspect of innovation, it becomes evident that the skill of engineers and technicians, the cooperation competence and regional synergies are the top criteria for future successful innovation realized by manufacturing and highly influenced by tertiary level education.

The ability to innovate and compete in the global economy greatly benefits from co-location of manufacturing and manufacturing-related R&D activities, including product research and development processes (since “innovation” is not linear). The loss of these activities will undermine the capacity to invent, innovate, and compete in global markets.

Increasing market demands for reliable and efficient products increase the requirements of human qualification for manufacturing (Figure 5.6).

There are great differences of qualification for manufacturing in Europe with high impact on manufacturing costs. Customization reduces the number of products and gives skilled personal cost advantages especially, when flexibility and quality are required. Regions which follow dual education principles at all levels, have clear advantages in productivity and flexibility.

Human qualification and skill gives advantages in the economic competition. It is known that lower skill of workers causes losses when manufacturing tasks change. Uncertainties in products and processes generate defects and waste. Skilled labor has advantages in manufacturing complex products and change of manufacturing. Skilled workers are able to make products of high precision and high technical capability. Skilled workers achieve higher utilization of machines.


Fig. 5.6 Cost per unit depends on skill of workers and engineers

When following the trends of customization, manufacturing with high skill of workers have advantages. This is of fundamental impact on future developments.

The technical systems are influenced by the integration of mechanics, electronics and software in so called “mechatronic” systems. The degree of automation as driver of productivity and flexibility is still increasing. This trend is hardly influenced by embedding electronics in components and integration of technical intelligence. Technical intelligence supports workers to achieve higher productivity in the processes by reducing defects and managing processes in parameter-rooms, where the tactile perception is limited e.g. high speed, high precision processes. The skill of workers for understanding complex technical system and operate in boundaries of performance is therefore increasing.

High kill of workers and technicians is even required in the after sales business and technical services for manufacturing solutions. The fact, that most of technical investments are special solutions and are complex technical systems requires system-competences.

Human skill and engineering competences are the driving forces for competitive manufacturing of customized products. Not mass production but customized production in an ICT-environment is the core of the future orientation. Skill and competences of people have to be supported to increase the efficiency of engineering in the future digital environment. Human productivity, skill and

Costper unit

Conventional learning- Lower skill in manufacturing

Manufacturing with high skill

Number of products

Customizing

Flexibility

5.5 Contributions for Sustainability 33

competence can be increased by the implementation of ICT-innovative solutions and tools (engineering, training, e-learning, etc.).

One conclusion of the last economic crises is that a “hire and fire” management destroys the personal competences and the knowledge base of companies. Such traditional management systems are not robust enough to overcome crises.

5.5 Contributions for Sustainability

Some people may think:

- let us reduce the consumption of technical goods; - let us send all manufacturing of technical goods to the other side of the earth

and far away from living places; - let us concentrate the economy mainly on engineering and innovation (blue

prints), financial management or the service community.

This can’t be the basic of a responsible economy and would increase the unemployment of the lower educated people.

Reduction of consumption reduces the welfare and standard of living (mobility, health, energy-technologies, living comfort, etc.). Manufacturing contributions are the reduction of resources required for products and their production.

It is part of the responsibility of manufacturers (legal) to take care of all products generated and manufactured in the best technical way. Manufacturing industries contribute with their operations and products to the societal demands. Nearly all manufacturers are committed (by law) to fulfill the legal environmental and social responsibilities and standards. But the fulfillment of standards leaves the way open for better solutions and innovations beyond the existing boundaries and standards (Figure 5.7).

Manufacturing at locations, wherever peoples are living and where the markets are is of course one of the central contributions for sustainable economies. This leads to a radical change of the actual practice in which locations of manufacturing are chosen only under aspects of low wages and open labor markets.

In long-term manufacturing development, answers for the grand societal challenges and especially for the economic, ecological and social effectiveness, which can be summarized as dimensions of sustainability, must be found. Manufacturing with its more than 40 industrial sectors, is the key area, which is able to change industrial operations with technical innovative solutions to a sustainable area. The structural change requires investments in sustainable products and processes. Highest standards open global markets with growth perspectives in dimensions far in excess of the actual state of the art. The effectiveness of technical solutions is the scale unit of future manufacturing. [17, 18, 19].


Fig. 5.7 Sustainability and manufacturing

Many Companies have already formal commitments for sustainability in their business strategies. They take care to protect the nature and reduce emissions over the legal limitations. In many cases they could demonstrate that expenditures for sustainability are economically advantageous. Some companies demonstrated that innovative solutions in their manufacturing shops are contributions for successful development. Equipments for water protection, separation of production waste, recycling of production scrap or recycling of products and many other environmental products open a growing market in manufacturing industries.

Economic effectiveness reflects on robustness in turbulent economies and markets. Ecological effectiveness depends on the efficiency of resources and impact on the environment. Social effectiveness is related to human work and relations of work and standards of living.

Laws, regulations for emissions and expanding costs of energy and material are trends which influence the manufacturing area extremely. Manufacturing has the option to reduce the consumption of energy and material by taking the challenge for sustainability as part of the overall management objective. This opens the way for technical innovations and economic success. It has the potential for emerging markets in the manufacturing of technical solutions for environmental protection and industrialization of manufacturing of environmental friendly products (energy, water, air). Factories of the future take back products after their usage for remanufacturing and material-oriented recycling. It is the long-term objective to replace critical and hazardous materials, to increase energy-efficiency and to reduce carbon dioxide as much as possible.

Major contributions to changing the manufacturing area from past economy towards future challenges and answers on global trends are:

Natural resource management / conservation

Poverty reduction/equity

Industrial production addresses all of them

Sustainability has economic, social and ecological objectives

Efficiency andgrowth

5.6 Reactivation of Low-Tech and Basic Technologies 35

- Strengthening the competitiveness in the global economy by permanent innovation, which is based on research to overcome today’s limitations of consumption of non-renewable resources.

- Activating the technical and economic potential of sustainable manufacturing - by innovative solutions to reduce the consumption of material and energy.

- Knowledge-oriented business, technologies and solutions to activate the economic and ecological potential along the life-cycle of each technical product taking into account the link between IT and technical systems or products.

- Activating the potential of customized and close-to-market products by increasing the creativity of engineers and flexible – customized - manufacturing.

- Realizing high-efficiency and zero-emission manufacturing in urban environments.

The strongest contribution for reducing energy and material consumption in the life-cycle is dematerialization:

- reducing weight by intelligent design; - miniaturization of technical components (micro-, nanodimensions); - special materials, recycling with low energy and no loss of properties; - technologies for upgrading and reproduction; - reproduction and substitution of rare earth materials; - increasing lif- time of products (utilization); - substitution of mechanical functions by software; - Total Energy Efficiency management.

Active orientation towards the so-called green manufacturing follow well-known methodologies like lean manufacturing or value-oriented manufacturing chains, which reduce loss of material, energy and other resources in the life of products. 5.6 Reactivation of Low- Tech and Bas ic Technologies

5.6 Reactivation of Low-Tech and Basic Technologies – A Chance for Regional High Unemployment

5.6 Reactivation of Low- Tech and Bas ic Technologies

Low technologies are classified as that group which has an F&E ratio of lower than 3%. This field is influenced by migration to BRIC and low-wage areas. Most of them are labor-intensive in manufacturing. The degree of automation and process parameters allows manufacturing with low-skilled staff. Many of these products have short life-cycles. Besides this, there are fields of low tech which are characterized by low technical investment and low lot size in the border zone between handicraft and industry. Many products in this area are influenced by design and special customer interests (Figure 5.8).


Fig. 5.8 Flexible Automated Manufacturing for customized manufacturing

The Combination of flexible Manufacturing systems with engineering and design systems opens the room for manufacturing of low technologies. The productivity of the manufacturing system is independent from the location. Customer relations can be increased by application of visualization technologies and IT-Networking. New Technologies like 3D-Printing or coating can be implemented for new design and individual creativity.

Flexible automated manufacturing systems are nearly independent from wages for workers. Their application is nearly independent from locations but requires high end solutions for the technical system to achieve quality and productivity.

Fig. 5.9 Location independent manufacturing of low tec-products

Source HOMAG

CAD Design System

Animation in Virtual Reality

Flexible AutomatedManufacturing System

Source IKEA

Customized Solution

Customer

Pictures: Windmöller& Hölscher

Low -TecProducts

High - TecMachines

CustomizedSolutions

System-Engineering

in highdeveloped

regions

Operationin the

centers of markets

Global(remote) services

High Prerformance

Processes

5.6 Reactivation of Low-Tech and Basic Technologies 37

The example (Figure 5.9) illustrates the possibility to application of high developed manufacturing systems, which require low rate of operators but a strong link to the system manufacturer. Adding value and employment is achieved in the periphery for adaptation, tools, maintenance or any services around. This example shows the role of manufacturer to support low tec manufacturing with high-tec solutions based on process know how and engineering competences.

Many well -nown products like consumer goods, mass products (electronics) and standardized low technology-components like drives, electrical, mechanical components, batteries, pumps, etc. belong to this group. Many of them are components of higher sophisticated technical systems and require co-operation and networking in the supply chains of OEMs. Another field consists of products for humans and houses such as furniture, textiles, and diverse equipments. All products of the low-tech area require basic and conventional technologies. Productivity, quality and reliability depend on the level of technical knowledge. Many of the diverse processes may be transferred in higher levels by implementation of best practices and flexible automated manufacturing technologies. These areas require tools and machines and a lot of other equipment which are part of the high tech sectors. They influence the productivity and are the backbone for nearly all industrial enterprises.

European Research politics negotiated the technologies required for the sectors of low tech. The field of manufacturing of low-tech products was not included in the research topics.

For employment and for the transformation of environmental aspects in all products used for home and peripherals, they have a dominant role. The relation to customers and rapid-flexible technologies can push these sectors towards a new culture and create jobs in regions with high unemployment. Many SMEs are operating in the so-called low technology area. Their role in the supply chains and in technical-oriented services for OEMs and users is of high importance for lower developed industrial regions or manufacturing in huge cities. They offer work for lower-skilled people. Research policy overlooked these fields of employment and innovations as elements of a competitive and sustainable economy. But exactly these areas offer a high potential for creating value and implementation of innovations in regional markets. They can play a strong role in customizing and urban production.

The gap between handicraft and industrial manufacturing in relation to customers is one of the answers in global manufacturing and resilient customer relations. To give up the low-tech sectors and areas of manufacturing is a historical misjudgment of the industrialized countries.


Chapter 6

Visions of Future Manufacturing in Europe

Visions are polar stars, which give orientations in a turbulent environment. They are helpful to concentrate forces to overcome crises and to realize changes.

Following the impact of “megatrends” and resulting objectives, four central visions of factories have been defined, which may illustrate the future development in manufacturing. They are “major topics” for the development of the manufacturing sectors. Figure 6.1 shows the main visions for manufacturing 2030. They concentrate on adding value by competition and sustainability. Research can contribute to the development, when it is possible to create technical solutions under the aspects of grand societal challenges and by changing the business to the paradigms of the future.

Fig. 6.1 The four major topics for manufacturing 2030

Innovativetechnologies formanufacturing

Competitive andsustainabledevelopment

• Infrastructure and education

• New businessmodels in the life-cycle of products

• Knowledge-basedmanufacturingengineering

• Innovative products andprocesses

Factory asgood

neighbourManufacturing

in urban environment

Factoryin the

value-chain

Digital factory and

humansin the age of

ICT

Factory andnature

Lean, clean, green

factories

40 6 Visions of Future Manufacturing in Europe

It is evident, that Europe has to find ways of co-operation between the public infrastructure, research and enterprises to overcome the actual threats and economic crises in European countries by new orientations. The visions have the potential to solve social and environmental problems with research-based knowledge.

6.1 The Four Major Topics of Manufacturing

The four major topics are contributions for discussions in Europe to find answers against the ongoing process of loosing adding value. They are deliberate provocations, which break with traditional paradigms and take care of technical trends as discussed in manufacturing related communities.

6.1.1 Factories as Good Neighbors and Manufacturing in an Urban Environment

Two statements to neighborship of homes an factories

Neighborship is a European way of living in a historic tradition. But factories as neighbors with all their emissions are closed areas in the village.

Manufacturing is embedded in the public communities. It should be the place, where customer requirements are satisfied in the best economic and ecologic way. Factories can use high-end technologies and are able to play a positive role as neighbors.

Big cities with high rate of unemployment and social problems – mainly of young people – need jobs in their living areas. One of the most important challenges of Europe is the creation of jobs by manufacturing including production of high and low technology products in mass, volume and customized production. European countries spend a lot of money on unemployment in their social programs but they do not support labor-intensive work, which belongs to the “low technologies”. Factories are a part of a regional community and have relations in all their operations with the urban environment. Manufacturing in the urban environment is one answer for the actual challenges of gigantic cities:

- Traffic caused by the fact of long distances from home to work or shopping centers;

- Traffic caused by the supply of shopping areas; - Dust caused by the emission of traffic and manufacturing; - Energy efficiency and energy supply as part of the local energy system; - Unemployment in the lower level of education and resulting social problems; - Usability of former industrial areas and contaminated ruins.

6.1 The Four Major Topics of Manufacturing 41

The creation of value happens in factories, which generate not only usable final products but also emissions, traffic and environmental impacts. That is why our communities and the management like to have them far away from urban centers, mainly in the periphery of cities.

Fig. 6.2 Manufacturing in urban environment (Source Daimler)

Figure 6.2 shows the central facilities of Daimler in Stuttgart. They are located in a region with high population density but connected with transport by trucks, trains and ships. Manufacturers with such locations have to fulfill many obligations and official restrictions. Employees like such location because nearby workplaces. The cities have problems with traffic and environmental impacts. Good Technical innovations in factories infrastructure can reduce the impact of emissions and the acceptance in the communities. The example shows even some special investments for the cities culture (Museum, Sports etc.)

Factories near home reduce traffic problems and require investments in manufacturing equipment for low emissions in sectors of low technologies and high customized products. It is one of the areas to generate welfare with a high social and cultural impact.

Manufacturing in urban environment requires resources: personnel, material, energy, etc. for making products of higher value (adding value). They require a highly developed and specialized infrastructure, logistics and services (finance, consultancy, ICT, etc.), which is available in the urban environment more than in the country with its agricultural environment. Manufacturing creates jobs along the life-cycle of each product from investigation to the end of life. The core of the


major topic: Factories as “good neighbors” is to bring back manufacturing in the urban environment for local employment and customer orientation without disturbances of life areas. This does mean: no emissions, low logistics, attractive workplaces, embedded in the urban culture and regional roots. It is necessary to find innovative solutions for urban manufacturing with zero emissions (no noise, no scrap, etc.), logistics in high traffic centers and human-intensive work with high productivity. Customers, suppliers and workers should feel positive emotions when they have this type of factory as neighbors.

We have the possibility to focus research and technical knowledge again for the development of solutions (products, processes) - including human-oriented automation - to realize manufacturing systems for volume and mass production and related services in very large cities - at places, where people live. Manufacturing technologies allow solutions, which can fulfill even economic demands by application of technical intelligence.

Fig. 6.3 Factories of emotions in the urban environment

Waking up emotions of all neighbors of factories leads to a visionary model of factories of the future with many challenges for technical emotions. Figure 6.3 shows the areas of activities, which open the perspectives of manufacturing in urban environments.

It seems to be possible to realize “factories of emotions” inside shopping centers of cities for design-oriented products and let people see and feel the manufacturing process of customized products. Manufacturing systems have to be fast, flexible, precise, visible, transparent and integrated in the logistic chains of shopping centers. They have to be linked in IT-networks and be a part of regional energy and material supply systems.

Public Infrastructure

Factory of Emotions in Urban Environment

Product-SalesDemonstration, Visualisation,Animation,

Configuration

FlexibleManufacturing

Systems

FlexibleAssemblySystems

Administration for Manufacturing on Demand (Customisation)

Design and Engineering

Service, Remanufacturing, Recycling

ProductUsage

User Support-linked in ICT

Education-,Qualification-

System

Energy,WaterSuppy

Public/NonpublicServices

Transport & Logistics

GovermentalRelations

Traffic,Commerce,

Communication

PrivatArea

PublicArea


Factories in urban environments are places to inspire emotions for products and processes:

- Customers shopping in factories; - Customized products – short delivery – product service; - Integrated service, remanufacturing and recycling; - Factory layout for cultural, societal emotions; - Transparency in all operations; - Flexible automation integrated with product design; - Using commercial logistic systems for material supply, distribution and

redistribution; - Low noise, low emissions, etc.

Factories of emotions require innovative technical solutions for products and processes. The areas of public traffic, dual education, public and non-public services and the energy or water supply open the potential for synergies in regional or local cooperation- and collaboration-networks.

The fact that the urbanization is one of the “megatrends” that opens emerging markets in the world for innovative products – like technical consumer goods or goods for the urban way of life (furniture, textiles, etc.). Factories which have low emissions and use highly developed manufacturing technologies like additive manufacturing have the potential to bring mass production back to Europe and increase employment by usage of urban manufacturing technologies.

Alongside highly sophisticated technologies are conventional and handcraft-technology fields for employment of lower qualified people. Urban manufacturing is therefore an ambitious field tor economic, ecological and social development.

6.1.2 Factories in the Value Chain

Tayloristic networking and perfect logistic characterize the structure of networks in today’s supply chains. The main vision of networking of factories follows therefore logistic and performance optimization-principles of processes in the life-cycle of technical products by taking turbulences - caused by change drives (products, markets, resources) – into account. Efficient networking depends on specialization of factories and manufacturing segments in the value chains of engineering and production, service, distribution and redistribution and recycling [25, 27, 31, 32,]

Many OEMs reduced their competences to core technologies for only activating economic potentials. They implemented a global logistic system, which is characterized by optimization of quality, time and cost (in this sequence). Quality, just-in-time delivery and low manufacturing costs are the main objectives of the conventional logistic chains. In consequence differences in quality and technical efficiency will disappear and it makes no difference were the factories are located. Specialization and distribution of operations let the value chains


explode and create losses in the interfaces by increasing transactions and management complexity.

Costs of labor have been the main drivers for the explosion of manufacturing networks and migration of production capacities in the global area. We see now that labor cost of modern products like electronics, mobile devices etc. are already lower than 5%. In many sectors they are not more the critical cost factor. More important are cost of materials and flexibility of logistic operations and the cost of adaptation of networks.

Manufacturing networking has a high impact on the logistic and transport. Figure 6.4 shows an example of manufacturing networks with distributed and dislocated facilities in Europe. The material supply in “just-in-time logistic chains” boosts the transports between the factories and lets the traffic problems especially in urban areas increase. Networking OEMs and gives them the flexibility for product variants. Management systems link the material- and information-flow. Networking allows the combination of specialized factories and specific technologies around production networks. The figure shows an example of a traffic situation on a highway. Further growth can be limited by traffic problems and the efficiency and complexity of networks over great distances.

Fig. 6.4 Logistic network and traffic with trucks on a highway

Factories in the value chain are specialized and concentrate manufacturing to reach the best point in economic utilization of resources. They follow internally flow principles to reach minimum throughput-time and minimum inventory. Interfaces in the value chains are standardized and operate with minimal defects. Quality and logistics are transparent and managed with computerized systems.


Up to now, the optimization of the value chains is the driving factor of efficiency in manufacturing networks. But following the life-cycle paradigm additional chains have to be implemented to activate adding value.

Figure 6.5 shows the main phases of logistics over the life cycle. Cooperation and collaboration in the phases of engineering and design reflects on the objectives of short time to market and open innovation. The efficiency of the production and distribution supply chains depends on standards for interfaces and disturbances caused by quality and missing capability. Zero-defect production is a critical success factor. Future development for an order- or demand- (event) driven and management can contribute to higher dynamic behavior of the networks. In the longer perspective Internet-technologies will allow the management of the logistic system by a methodology of “Internet of Things”.

Fast reaction on events in the usage phases by IT-based services and customer-support stabilize the relations of customers and manufacturers over a long time scale. The physical usage can be added by services around the products and opens a wide spectrum for adding value. Services include technical, knowledge (best practices) and personal support (training) and many other special services. The link of physical products with IT-networks allows manufacturers to integrate diagnostics and monitoring up to remote operations.

The end phase of products life cycles includes the processes of re-manufacturing and recycling. The long term objective is of course to win back all materials. The Logistic system in this phase is characterized by robustness.

The (legal) responsibility of manufacturer includes the behavior of products in use and the impact on the environment. Future networks follow the life cycle. Optimization is oriented not only to singe processes but the efficiency of the whole network.

Fig. 6.5 Value chains in the life-cycle of technical products

EngineeringDesign Chain

ProductionSupply Chain

DistributionChain

RedistributionChain

RecyclingChain

Life cycle of technical products

Usage/Service

Start of life End of life

Production Re-ManufacturingDesign /Engineering

ServiceChain

Adding value in distributed, dislocated manufacturing networks


Manufacturing doesn’t end with the delivery of products like it was a past paradigm. Manufacturers know the relevance of customer relation not only in sales but more and more in after sales services. Life Cycle of technical products from birth to end of life is the balance room for future adding value.

All technical products have a life, which starts with ideas and ends with recycling. In former times products were made complete by the manufacturers and distributed by trade chains. Specialization provokes distribution of manufacturing chains up to global production networks, where economic advantages are achievable. But transport and logistics became critical factors of success. Under the influence of cost and value of material, re-distribution and recycling becomes a part of the networks.

Each factory in the logistic chain has to adapt its system and operations towards fast throughput. The capability for fast adaptation of manufacturing is therefore the main requirement of the future development. Adaptability is reached by flexible manufacturing systems:

- High degree of automation and high flexibility in operations referring to increasing variance and customized products;

- Short term ramp up of series or mass production; - Zero defects by knowledge integration in the control system; - Digital tools for engineering; - Flexible time and resource management; - Holistic (methodology) production-management-systems and fast reaction for

change; - High skill of workers and peripheral services

Highly efficient and adaptive factories need an environment for change. Change management and adaptation of high performance processes requires system competences in technologies and processes. Disturbances in uncertain situations must be solved by strong and collaboration between systems experts and users. The reliability of product-related services along the chains is necessary for customer satisfaction especially in the sectors of investment goods and manufacturing equipment. Services along the life-cycle of technical products open an emerging field for adding value especially for SMEs and Start-Ups. Research and other services support factories with knowledge and contribute to the competiveness of factories in value chains. It is evident, that the efficiency of factories in the supply chain depends on the regional infrastructure and services around (see Chapter 7.2).

- High performance processes and flexibility - High quality up to zero defects - Integration of the management systems in the network with standardized

methodologies and interfaces

Increasing demands for customer specific products require flexibility and changeability. This can be reached by a system, in which the elements have partly


self-government embedded in overall management system. The next figure shows the principles of elements organization which gives them a partly autonomy for fast reactions and own responsibility for operations (time, cost, quality) (Figure 6.6). Self-organization and self-optimization are basic principles, which reduce losses of bureaucracy and increases flexibility. The ability of cooperation includes rational workflows and trust. The elements can manage the utilization of their resources (self-configuration) in own responsibility but embedded in a hierarchical target and controlling system (self-control). The operations of elements are transparent in the network and characterized by high reliability for the demand and delivery of material or intangible products.

Fig. 6.6 Basic principles of network elements in manufacturing chains

Self-organization, self-optimization, co-operation, self-configuration of the technical system and self-control are attributes of active elements in the manufacturing process chains. These principles support the changeability of complex socio-technical systems by human- centered management.

These principles are part of a future production system, which reflect on professional operations with principles of self-organization. It makes complex manufacturing resilient and gives them the dynamic for change.

Standardized methodologies which activate the potential of value chains like value – lean manufacturing, value chain optimization, avoidance of loss in time and resources, continuous improvement and many others are the fundaments of factories in the value chains. Factories need the competence in methodologies combined with the flexibility of the administration. They should be able to manage change in an efficient way.

Humans areactive elements in

manufacturing systems• Self-organization• Self-optimization• Co-operation• Self-configuration• Self-control

Orders, tasksObjectives

FeedbackData logging

Turbulentenvironment

Demand

Delivery

OrdersObjectives

FeedbackData logging

Demand

Delivery


Around such principles new agreements with unions for flexible work times, target-oriented fair wages and salary are necessary should be based on human oriented and social standards. They can contribute to competitiveness by motivation for the economic and ecologic objectives and responsible engagement.

The basic principles can even be used for the technical system to reach technical intelligence high automated flexible production systems (see chapter 6.2.2)

Taking into account the fact of costs of global logistics and public laws or regulations for product-security it is evident, that the logistic chains will be oriented to regional markets: Europe, US/Canada, South America, Asia (with differences in Japan, China, India, Rest of Asia) Africa.

Specialization and distribution of operations let the value chain explode and creates losses in the interfaces by increasing transactions and management complexity. The locations of factories in the value chain influence the cost of the logistic system. This makes it necessary to rethink the division of work and the principles of outsourcing to regions where the labor costs are cheap. Short distances as realized in supply parks near OEM-factories optimize the structure of networks and have advantageous in network efficiency.

Factories in the value chain use local roots for global competition and sustainable development. The conclusion for future industrial development to reindustrialization is the optimization of factories including their local roots:

- Increasing in-house production depth – reduces costs of transport; - Standardization of communication interfaces – increase the effectiveness of

management; - Holistic production systems – support the collaboration and optimization; - Adaptability and flexibility of operations and capacities – increase the

dynamic behavior of value chains; - Regional cooperation for short distances and “green logistics” – reduce the

indirect costs.

This vision requires a break with traditional logistic oriented networking and management systems to “broker business” and open innovation.

It is time to reconsider the past practice under aspects of rational and market oriented manufacturing. Innovative value chains, which take into account the sequences of traditional interfaces, e.g. between casting and cutting offer a high potential to reduce the loss of value by defects or energy. Rational value chains take into account the reduction of sequences by technical process-integration from raw material to finished products from customer orders to the end of life of each manufactured product.

Efficient networking is the chance for Europe to bring back mass-production for the European market and a leading role in manufacturing equipment driven by the competences in manufacturing engineering.


6.1.3 Factory and Nature – Lean, Clean, Green Factories

The evolution of the nature was a process of millions of years. The nature created solutions of excellence in high variety and part of the living system. Principal solutions of the nature can be transferred in the products and production systems as for example:

- Bionic systems - Co-operation mechanisms (e.g for hunting) - Efficiency of biological systems

Nature is often the archetype of technical solutions especially under aspects of brilliant efficiency and robustness. There are many technical innovations, which follow natural principles: light-weight, integration of sensors, redundancy, robustness, efficient use of resources or collaboration and cycles. Natural principles can be transferred to products, technical systems and Factories of the Future for brilliant manufacturing systems - especially to reduce loss of input or increasing the efficiency of material and energy. The orientation on green - includes technical intelligence and efficiency of distributed systems.

Fig. 6.7 Cost of energy in automobile manufacturing

Druckluft

KühlwasserAssembly 17%

Coating 44%

Car body32%

Forming 7%

Cost of energy in automotive

manufacturing

Electricity 82%

Gas 6%

Compressed air 8%Cooling fluids 4%

Cost of energycarrier

Car bodymanufacturingSource: Volkswagen AG 2008


Holistic production systems are standard in many companies which include usually the methodologies of lean production. The lean methodologies refer to the reduction of waste in time and resources. Lean methodologies usually follow the process chains backward from delivery to the birth of products. The vision of lean, clean and green factories is driven by methodologies and technologies, transfers lean principles on environmental processes to reduce emissions and contamination.

Main focus is the reduction of energy, material and avoidance of scrap with innovations which follow principles of nature. They include a permanent optimization of processes to perfect systems. Lean methodologies are accepted as standard in series and mass-production to increase the productivity by avoiding operations which do not contribute to adding value to each product. This methodology can be transferred to environmental optimization of factories and added by technologies which increase the efficiency of material-processing and energy consumption.

Energy and material are increasing factors of costs (Figure 6.7). In many companies the cost of energy are not known in detail. Energy consumption in manufacturing depends on the technological processes as shown in the next example.

Coating and welding are the processes with highest cost of energy. To achieve the technical quality processes are dominated by energetic technologies, which change the properties of material for functions and reliability. Alongside the process-energy is a broad spectrum of energy waste caused by the heating and cooling system, buildings-construction, etc., which has a potential of 10-30% for reduction without loss in productivity.

The efficiency of material and energy are the main objectives of lean, clean and green factories as explained above with multiple action fields.

The visions of lean, clean green factories get impulses from natural phenomena and use methodologies to increase the efficiency of the operating system. It is a long-term vision but allows actions here and now. The methodologies of lean clean, green should be a part of the enterprise culture and management. They can be transferred to practice by management on the basis of detailed holistic manufacturing systems.

Some fields require technical innovations and rethinking traditional operations like green logistics or the dematerialization, where ever possible. Some fields are new operations, which require industrial solutions like remanufacturing and recycling. They offer new perspectives of adding value (Figure 6.8).


Fig. 6.8 Lean, Clean, Green Factories

The impact of factories on the environment has to be reduced and natural resources protected. A critical field is the handling of hazardous substances and critical materials for which solutions to substitution are required.

Many companies implemented already management methodologies for sustainable design and production of innovative products with high economic success e.g. avoidance of hazardous materials and substances or lower emission in usage phase. It seems to be accepted in European industry that the obligation for sustainability is part of economic profitability in manufacturing.

Fig. 6.9 Zero-Emissions-Factory (Source: SOLVIS, Braunschweig)

Some companies like SOLVIS (Figure 6.9) used their own manufacturing shop to demonstrate successful implementation of innovations for sustainability. The company engaged in energy technologies for private and industrial applications

Zero emissionsNoise, Air,...

No wasteProcess….

Sustainableprocesses

Total energy-efficiency

management

Technicalintelligence -mechatronics

ProductLife-cycle

LCA

Demateriali-sation

Management of hazardous substances

Remanufacturing and recycling

Carbonfootprint

Green logistics


realized a zero-emissions factory to demonstrate the technical and economic potential of intelligent solutions. They have been awarded with the European Solar price 2002 and the energy globe 2003. Photovoltaics, block heat and power plant, energy storage and the full concentration on energy saving technologies are elements of the production system [17, 18].

This example illustrates the successful feasibility of environmental oriented production system. It opens the perspectives of future developments by focusing sustainable perspectives in manufacturing as market for products and cost reduction in the plants.

6.1.4 Digital Factory and Humans

Factories are the place of humans work. Humans generate and drive factories. Humans are the most flexible resource in the manufacturing system. Humans are creative and, if required, able to repeat. But their cognitive, physical and tactile perceptions are limited. Humans can work in areas outside of their tactile perception by intelligent automation. Humans can use computational intelligence to learn and overcome ”oblivion” and taking advantages of computational knowledge. Humans are able to learn, to forget, to communicate and cooperate in the digital environment. Machines are the tools (even computers are machines), which support humans in their work and operations.

Humans are more than a factor of cost. Their motivation and their creativity as well as their experience are the driving forces for innovation, adaptation and optimization in manufacturing. Most of them are interested in sustainable jobs, income and social satisfaction. They all have specific relations to the culture and the way of life around of factories. They will be able to create the management system under the aspects of ageing, and individualization. They generate the work conditions with innovative technical interfaces, which consider human requirements. Taking into account the innovations in ICT for manufacturing and the global networking, it seems to be possible to realize new human-oriented work in the digital environment.

Special aspects in the changing characterize the change of humans work in manufacturing:

- from direct to indirect labor; - from manual work to the usage of high performance machines; - from tayloristic workflows to co-operation in networks; - from paper work to computerized work; - from experienced manufacturing to knowledge-based manufacturing.

Humans are the backbone of future manufacturing systems

The humans inside and outside of factories are the critical success factor for sustainable and competitive manufacturing. The humans are the owner of competences, which are capable of flexible communication - used


for work and relations to customers, suppliers, service, governments, unions, social organizations etc. Factories of the future reflect on emotions in the relations and collaboration.

Flexibility and changeability of the operating system are the main criteria for the organization in this visionary topic. Reducing bureaucracy and principles of self-organization characterize the way to systems with higher dynamic. The work-system, which is dynamic, robust and flexible in turbulent environment follows principles of management and human involvement in its operating units (active elements) as illustrated above (see figure 6.4). This concept gives the humans the room for operations reflecting to the situation and manufacturing objectives. They are able to learn and use scientific-based methodologies for optimization.

Factories with human orientation fulfill the social and ergonomic requirements. Their methodologies use knowledge for permanent optimization and adaptation. They are able to react directly to customer orders and specific tasks. The humans are the interfaces between the active elements in the manufacturing systems. New forms of work organization are consequences of the principles and basics in this visionary concept.

Fig. 6.10 Humans work in the age of ICT

Figure 6.10 shows an engineer in manufacturing calibrating the control computers of a flexible automated manufacturing system.

The enabling technology of collaboration and cooperation of active elements in manufacturing networks are Information and communication technologies. Humans as actors in the network are supported by IT-tools and IT-services, which makes information available every time and everywhere. The vision of this major topic influences each work place in manufacturing.

Computeraidedworkwithergonomic human -machine interfaces

Cooperative / collaborative formsof organization andflexible work time

Learning andtraining atworkplace with ICTknowledge support

Picture Daimler


6.1.4.1 Humans in the ICT-Environment

Digital products and digital factories are the computer internal models of technical objects. The digital representation of any object is part of product life-cycle management. The order management and the management of supply chains is high integrated and the backbone of administration. Control-systems of machines and robots are linked on shop floor level with transport and storage-systems to flexible production and assembly systems. There are nearly no operations in factories, which are not supported by information systems. Now begins the age of integration of knowledge in the manufacturing systems for optimization.

Implicit (humans) and explicit (computers) knowledge is integrated in the planning and operating processes of future factories. The exchange of knowledge takes IT-technologies and methodologies to overcome the gap between the virtual/digital and the real world to increase the productivity and flexibility so that each operation can be supported by a full set of actual and reliable information. This leads to a cyber-physical approach in which computers are used to collect and analyze histories and to control and manage the resources. Look ahead and data feedback require cognition based IT-methodologies like simulation or data analysis, which are integrated in the architecture of distributed networks. Cognition based IT- systems support the generation of and the management of knowledge.

Fig. 6.11 Manufacturing in a virtual-real environment, linked to outside expertise and service (Source Siemens)

Picture Siemens


Figure 6.11 illustrates an engineer`s working place in the digital environment. Information is available everywhere and at any time and can be presented in a virtual system so, that even complex technical solutions are to understand in shortest time. Virtual systems can be connected to operating machines and processes for diagnostics and monitoring far away from their actual location.

Digital products are a computerized representation of products. They are embedded in Product-Life-Cycle – Management Systems, which support all operations from begin to end of life. Understanding factories as products leads to digital factories, which represent all objects of factories in digital models. Factory data management systems support operations along the life-cycle of factories and their technical equipment. Manifold tools are used for design, analysis and optimization in product and manufacturing engineering. They are tools of families for digital products and digital factories. Additionally, many engineers use special and original tools for methodologies, which are not integrated in the digital families.

6.1.4.2 Cyber-Physical Manufacturing

Cyber physical systems are collaborating computational elements controlling physical entities like machines or other technical equipments with embedded electronics.

New IT-systems change the architecture by flexible and networking systems based on internet-technologies. Platforms for communication, whose primary market are the private sectors, have a potential for application in manufacturing industries. They allow the federation of dislocated information sources, flexible workflows and flexible configuration of the tools. Visualization and Virtual Reality contribute to the interface with tactile elements between humans and computers. They change the work principles of the humans and the speed of communication inside and outside of factories. Apps as flexible tools support technicians and engineers in their tasks along the life cycle of products. Platforms for engineering in the digital world and administration require a set of standards and methodologies for security.

Figure 6.12 illustratedes the future visions of computerised manufaturing with its repräsentation of products and factories by using cloud technologies. Administration processes including logistics operate with changeable and individuals workflows and a set of software tools, which can be linked to the operations as required. The engineering system uses soft-machines for design and optimization around the CAx-Technologies. On factory side all sensors and control units are elements of the shops and generate informations around events. This can be called “a smart factory”. Real time information combined with histories and future (simulation) make it possible to realize a new generation of IT-driven factories and enterprises.


Fig. 6.12 Smart manufacturing and cyber-physical systems

The degree of flexible (computerized) automation on shop floor level increases. This changes the work conditions from manual work to planning, supervision, monitoring and manufacturing services. Sensors are integrated in the technical solutions. They have the potential to measure parameters outside of human senses and transfer it into room of human recognition threshold. Additionally, they become elements of the technical system for intelligent control of processes and the management system of factories operations. This can be summarized as “smart factories”. Smart factories use sensors and actors to win real-time information for management operations and knowledge-driven optimization.

Factories achieve in the long-term learning capabilities and can be seen as learning factories, which are able to reduce defects and deviations from objectives by supervising and monitoring. The vision takes into account the innovations in software regarding federations of wide-spread databases and data-analytic for gaining experience (cognition technologies).

Engineering administration and production are fields of implementation of new ICT-technologies, which influence each process in manufacturing. The main drivers for the ICT in manufacturing such as the internet, grid and cloud-technologies create a new generation of ICT by integrating the real, physical system and the digital system. They are characterized by event-driven operations and multi-sensor data capturing in networks. In the future it will be possible to implement technical intelligence and link it with the operations in engineering and administration. But new threats in the security of networking require trust-systems for industrial operations.

In summary we can expect a growing field for “Soft-Machines” and IT-services around manufacturing which can be opened by cooperation of engineering industries and IT-industries. High specialization and adaptation gives especially SMEs a chance for future markets in all manufacturing sectors.

Digital products

Digitalfactories

Engineering in a digital

environment

with“soft-machines“

“engineeringapps“

Administration in a digital

environment

withchangeable,

individual workflows

Threats: ICT-security, gap digital-real world, ICT costs, bureaucracy

Global ICT - networks – Product life-cycle management – real time IT

Opportunities: Tools for engineers (soft machines), IT-services, efficiency of engineers

6.2 Action Fields around the Four Major Topics 57

6.2 Action Fields around the Four Major Topics

Factories are embedded in the economic system, whose conditions, regulations and standards influence the development. Governmental policies and the contributions or services of the infrastructure influence the economic results of each factory. It is essential for the European development that both the public infrastructure and the private system contribute in a cooperative way to the long-term objectives and structural change.

The internal private system of industries has to develop a business system, which is robust enough to overcome crises and resilient against the turbulent influencing factors. Permanent innovation of processes and products has to be a part of the management system. Engineering in the knowledge age must guarantee the best application of research results. The limits of balance are defined by all processes in the life-cycle of each technical product from birth to the end of life. The internal management model can follow the above-defined principles.

The private system of generating high-adding value has to be supported by the public infrastructure with its main areas in research, education, external (global) ICT networks and transport environment.

Fig. 6.13 Manufuture’s Four major topics factories with internal dynamics embedded in the public infrastructure

The future visions of manufacturing break with traditional methodologies of management and business systems to activate the value-adding potential in the life-cycle of each product (Figure 6.13). This change requires peripheral actions in the development of the infrastructure. The way to a Manufacturing Vision 2030 is only successful when the actors in the private and public sectors co-operate with an orientation on the visions of sustainability.

Public Infrastructure

Four major topics factories

Robust – resilient busniess system

Innovation products andprocesses

Knowledge-basedengineering

Processes in product-life-cycle: sustainable from birth to end of life

Research Education ICT Transport


6.2.1 Robust-Resilient Business System

A system is only able to survive, if it has the competence to adapt its elements and systems structure, when the environment changes. Manufacturing is influenced by many dynamic factors, which make rustiness of the business system to a critical factor.

It is evident that in the last decades many companies did not survive under critical changing influencing factors. They were not robust enough to overcome the financial crises. The cycles of economy created insolvencies. Turbulences in the financial markets or short-term profit maximization were indicators for changing factors. As the next figure illustrates, there are many influencing factors on enterprises which may cause critical situations and require a permanent adaptation of the production system (Figure 6.14).

Fig. 6.14 πάντα ῥεῖ - “Panta rhei”- Everything flows

Everything flows in the real world. The supervision of all influencing factors and flexible reaction must be a part of the business system. Future management systems take care of turbulences and give the survival of crises highest priorities. Solutions for future business models concentrate on long-term objectives and financial or capital reserves as well as on adaptability of resources.The crisis showed us, that manufacturing industries need robust business and management models for sustainability in turbulent environment.

Europe has the tradition and the competence to change short-term profit optimization to robustness and sustainability. We need new business models and creativity in the business methodologies.

Globalcompetition

Permanentadaption of the

“system” production

ProductsMarketsOrder trends

OrganizationManagementMethodsICT-Systems

InnovationProductsProcesses

LocationBuildingsMachinesEquipment

Law, guidelines, standardsPay scale agreementCompany agreements

Staff- Qualification- Motivation

ShareholdingFinancingCapital markets


In the time Asian companies need to ramp up a production program, European companies are just finishing their business plan and are too late in the market. In some technology areas Far East companies are able to start industrial manufacturing programs in the shortest time. This is caused by the fact of lower automation and lower planning details. They benefit from time to market by fast ramp up and flexibility in the labor work. But they accept losses in quality in the ramp up of series and mass production.

Europeans are leading in many key-technologies but not able to establish series production. European companies lost manufacturing in the global migration process without extensive use of their manufacturing know-how. Bureaucracy and low flexibility of resources are limitations in the completion and weak points in many sectors.

New business models are oriented to customers and customer demands. The business models for such requirements use the IT for information retrieval and management of operations. Methodologies for technology-management and industrial engineering as well as proactive quality management are parts of the business system. As well as that, it seems to be necessary to increase own equity capital as buffers in cycling markets.

The rate of investments in mobile assets in Europe is low and must be integrated in long-term strategies by taking costs of opportunities into account. Regional cooperation-networks have a potential of synergy in capacities and special technologies, that can contribute to economic success. Robustness can be achieved by long-term business and flexibility of resources: personnel, machines, storage, etc.

A missing field in economic research are application-oriented methodologies for robustness and sustainability especially for SMEs. Main research objectives of this field are:

- Resilience and sustainability of companies; - Activation of potentials for adding value in the product life-cycle; - Implementation of a public ICT-infrastructure for operations in turbulent

environments.

Resilience in business can be added by services along the lifecycle each product and long term customer relations based on reliability and quality. But it is necessary to find solutions for security and protection of technical know-how. Additional fields of actions are in the computerized technical support and service (Figure 6.15).

European companies operate on high social standards. (e.g. hours of work, holidays, protection against dismissal, ergonomics), which limit the flexibility and influence the indirect personnel costs. Taking into account the changing conditions of work like trends to automation, increasing indirect work, ICT-work, etc. It is essential to find ways for higher flexibility by adapting the work


Fig. 6.15 New business models

organization and workflows with all the possibilities of ICT in manufacturing. Human competence is the critical success factor in all operations along the life cycle. By taking the customer relations und necessary trust into account skill and experience are the backbone of sustainable business and must be the topic in business planning and resource management.

Of highest importance for the reindustrialization of Europe are the investment strategies and the methodology of management decisions in relation to manufacturing areas. Most business models follow traditional life-cycle models, which ends with product sales. The potential for adding value by services for customers along the life-cycle opens new possibilities and sustainable customer relations like operator models or innovative services. Customers benefit from the engineering competences by changing tasks or changing applications. But the investment in operator models shares the risks und must be based on co-operation contracts.

The calculation system has to be enlarged to a life-cycle approach, which considers the usage and the recycling phases (Figure 6.16). The calculation methodology has to take into account the so-called “costs of opportunity” which reflects on the difference between losses in productivity of installed resources by wear or abrasion and the state of the art in front of productivity.

By permanent supervision of the state of the art and innovations the delta between available technologies and the own productivity can be estimated. Losses in productivity and potential losses by missing know-how become transparent. The total loss of efficiency is an indicator for renewing and reinvestment to achieve advantages in competition.

The relation of manufacturers and customers becomes a new and profitable view for cooperation and collaboration, which makes long-term and sustainable development possible.

New businessmodels

European model of business: Robust against financial threats Sustainability of business Adaptability and flexibility of resources

Increase the corridor of capacities R&D - strategy

Life-cycle management – life-cycle operations pre- and after-sales Services along life-cycle

European standards: social, ecological, economic


Fig. 6.16 Calculation of cost of opportunity in the life of manufacturing systems

6.2.2 Innovation of Products and Processes

Innovations in product-technologies and processes are the driving factors of change in manufacturing. Incremental innovations are the usual way to increase the productivity and performance. They make the permanent optimization of manufacturing systems possible and are in many enterprises integrated in the management system (e.g. continuous improvement). Basic research and experience in utilizations of conventional technologies allow the permanent optimization of operations by best practices and usage of knowledge. Competition in solutions for customers manufacturing tasks increase the technical creativity ofv the equipment industries so that customer driven innovations are the main driver of the technical development.

Beside of that are fields of disruptive innovations which are mainly based on inventions or basic research. They cause substitution effects of conventional technologies and change the manufacturing structure. Both types of innovation require intensive research with the orientation to application in nearly all areas of manufacturing technologies including basic processes.

6.2.2.1 The Innovation Chain of Manufacturing

Each technology has its own life from basic investigation to technological or physical limitations. After invention, permanent Innovation of products and processes occurs, which is driven by research or competitors, who follow fast.

Some examples may illustrate the fundamental law of technical development and innovation:

100 %

+

-

Market drivencontinuousinnovation

Loss in productivityby usage and wear

Available technologiesand state of the art

Start of usage

Missing know-howand knowledge

Total loss ofefficiency

OEE

Time (Years)

End of life

Technicalefficiency

Machines in use


• Invention of semiconductors – Moors Law; • Invention of numerical control machines – high speed CNC; • Invention of robots – flexible automation – smart robotics; • Invention of computer-aided design – digital products.

The technical development in manufacturing industries contributes by permanent innovations and increasing technical efficiency from invention to maturity. Even traditional “ old technologies” of manufacturing” have a continuous growing efficiency, which brings them to high performance (precision, time, cost) (Figure 6.17).

Fig. 6.17 The law of technologies life and the difference between research and application

As the figure shows defines research the feasibility and limitations of technologies. Research may find out what can be realized (we can) and influences the graduate of development. The time of transfer from research to application (we do) influences the business success.

It is known that enterprises, who lead technology development by early implementation and bring their innovations in shortest time to the global market achieve competition positions where they dominate. Examples: communication products like mobile phones, Software products, Airplanes, etc.

Companies lost their leading position, when they forgot to develop global markets by concentrating only on regions. Plagiatism accelerates this and creates cut-throat competition.

Limits of technologies

Time

Efficiency

Application

Research

We do

We can


Technical solutions take into account the real state of the art and practicability under the conditions of the reality. Continuous innovation and customers manufacturing tasks characterize the way of innovation. Customers and their manufacturing tasks are the drivers of innovative solutions and demand capability, reliability and cost effectiveness. The gradient of enhancement in the technology curve is a strategic factor, which depends on:

- Intensity of research and development; - Knowledge of fundamental limitations; - Transfer losses from research to application;

Companies can win competition by accelerating their innovation speed and learning from practice. To increase the speed of innovation it is necessary to:

• Increase fundamental, analytical research for technical limitations of technologies analytical research under the requirements of reality (application-oriented research).

• Increase technical creativity of engineers and knowledge-based engineering. • Promotion of innovation co-operation between producers of Equipment and

customers. • Efficient Technology transfer-mechanisms from research to application e.g.

by pilot lines. • Security and IP – protection in the ICT environment.

The technological limitations of most of the basic manufacturing technologies are not reached, so even conventional technologies have a high potential in efficiency. Limitations of manufacturing innovation reflect the efficiency of technologies. The main field of innovation in manufacturing is the producibility of innovative products by productive processes to increase the technical efficiency for adding value. This field includes all technologies required for products: conventional technologies and emergent technologies. They activate the potential in precision, performance and reliability to overcome existing borders. The technical limitations are often not known because of the experimental character of processes. Fundamental research is far away from phenomenal models and understanding of the dynamic behaviour and lead to instable processes.

Another important area of innovation are the methodologies, which reflect the optimization and synergetic work of the production system and the value chain. Proactive methodologies reduce the loss of resources in early phases of products’ life-cycles. They contribute to the quality and reliability of technical solutions and help to optimize the production system. Some methodologies revolutionised the management systems like the Toyota Production System or methodologies for organisation of the human workforce. They even have a life-cycle from invention to maturity.

Technical criteria such as utilization, reliability, productivity, flexibility, quality can be added by ecologic and social criteria to contribute to the change of basic paradigm from cost to sustainability and competitiveness. Permanent innovation reflects to contributions for higher technical, economical, ecological and social


efficiency. Taking these criteria into account as new factor of efficiency, it becomes evident that European Manufacturers have a historic chance to lead the innovation in manufacturing.

6.2.2.2 Accelerating the Innovation Chain by Application-Oriented Research

In practice, we see a gap between basic and academic research and application. Europe has intensive basic research but is behind in implementation and transfer. Different views of academia and industry, long-term decision processes, administration and regulations are obstacles of the innovation process.

In the last decades we had expanding scientific publications, expanding patents but low industrial usage for adding value. A strategic answer could be the acceleration of the implementation of new technologies based on stronger cooperation between basic research and industrial application.

The innovation process in Europe has to be accelerated by systematic cooperation (Figure 6.18). Basic research should have the application in mind. Engineering science has to take into account the criteria of practice and be added by application-oriented research and development nearby reality. Potential- and risk-analysis has to be done in early phases of the life-cycle. Scientific support is required in all phases of the life cycle of products. The model is shown in the next figure. It is like a Tayloristic system and misses funds for creativity, collaboration and readiness to assume risks. The application and the practical relevance are critical success factors for the innovation chain.

Fig. 6.18 The Innovation chain from basics to application

Phenomena

Models

Physical basics

Natural sciencefundamental research

Engineering sciencebasic research and analysis

Application research and development

Optimizationusage

Visions andapplications

in mind

Products

Production systems

Product support

Recycling

Feasibility

Technical realization

Limits

Innovative engineering

Precompetitive engineering


It is the role of engineers to transfer knowledge from research into application and add this with their own creativity (invention) to find reliable solutions. In practice, there are gaps between basic research and application. The Future Manufacturing Philosophy is open for collaboration and open innovation.

6.2.2.3 Multidisciplinarity and Networking for Innovation in Manufacturing

Innovations in manufacturing are usually the results of co-operative work. Taking into account that technical solutions for manufacturing are complex systems – in many cases only on customer request – with a high variety of different elements, which achieve their functionality by integration of components in a reliable system, multidisciplinary system-competence is required.

Many innovations are driven by interdisciplinary and cooperative development. Strategic options are to find in the borders of research disciplines as illustrated in the next figure. Natural sciences (physics, chemistry, biology, mathematics) offer the basis for phenomena and process-models (explicit knowledge). They contribute to the understanding of the technical behaviour (e.g. wear, corrosion, etc.) and the way to miniaturize technical solutions (micro, nano) as well as to measure process parameters. ICT-innovations are one of the main drivers for all processes and the future cyber-physical systems. Business economics, social sciences influence the business models and the management methodologies. Architecture and social science offer contributions for societal emotionalization. Biotech, medicine-techniques offer expanding areas for products in a growing markets. Languages and cultural sciences influence the solutions for global activities and networking. Multidisciplinary work in research and development is one of the fields, where Europe can create new attractive solutions for factories with a typical European brand.

Networking and cooperation in innovation is essential for generating emerging technologies and industrializing of manufacturing in nearly all emerging product sectors. Engineers and technicians are the actors to generate solutions in the boundaries of disciplines as illustrated in Figure 6.19.

Examples of this are machines with high degree of automation. Mechanics, electrics, electronics, software – so called mechatronic systems – require co-operation between specialized engineering and IT competences. Systems complexity is increasing and requires solutions to manage engineering, application and service. It is part of the actual technical revolution from programmed automation to technical intelligence. The competence to innovate technical elements – seen as competence for solving customers’ tasks (problem-solving competence) and the competence of integration (system–integration-competence) are the critical success factors for future manufacturing systems.


Fig. 6.19 Innovations in the boundaries of disciplines – Cooperation required

Engineering industries can benefit extremely from co-operation in the boundaries of conventional disciplines. Some examples may illustrate this:

- Physics and chemistry are basics of solar technologies, which are known by basic inventions and basic research. Competences in photonics, materials, mechanics, electrics, and electronics are required to generate products. To bring them on the market it is essential, to industrialize the manufacturing systems by the realization of process technologies such as reliable surface operations, technologies for assembly, measurement, flexible automation, control systems or sensor technologies and integrate them in economic equipment of solar factories.

- Mathematic methodologies are required for cognitive elements in intelligent machines or robots.

- For interaction of humans with machines for homes and especially for disabled people co-operation between medicine, mechatronics, automation and communication leads to innovative solutions in an expanding market (health, ageing).

ICTMathematics

Businesseconomics

Physics

Chemistry

Biology

Medicalsciences

Architecture

Socialsciences

R&DManufacturingEngineering

andTechnology

Language/Cultures


- Chemistry, process technologies, material- and energy-engineering and sensor-technologies for solutions for environmental technologies.

In summary it is essential that manufacturing engineering is the enabler for innovations in co-operation with a systems approach.

6.2.2.4 Areas of Product-Innovations for Lead Markets

Sustainability is one of the drivers for product-innovations, which reflects on the megatrends. Especially reducing the consumption of materials is one of the challenges of future product-innovations. With lower weight and higher efficiency between raw materials and product weight a strong contribution to sustainability can made in reality.

The consumption of process-energy is proportional to the mass of material so savings in material are savings in energy and costs. Other innovation lines are driven by electronics and integration of sensors in technical components (mechatronic devices). They will bring us new generations of products characterized by the expression “Technical intelligence”

Figure 6.20 shows fields of innovation for future products taking into account the potentials of materials and technical intelligence. Continuous innovations driven by materials and mechatronics push the position of manufacturer in existing markets. The variation of current and sometimes old technologies can be used for emerging markets, as for example for electrical vehicles or medicine-techniques. Taking into account that the physical limitations of many basic technologies for manufacturing are obviously not reached, we have an expandable

Fig. 6.20 Areas for product innovations in lead markets

Implementation of new materials / Nano’sEmbedding of sensors / electronicsWeight reduction (dematerialization)New functionalities / technical intelligence

… for emerging markets

E-Mobility (E-Cars, Engines, Batteries, Control,…)Health (Medicine, Pharma), Bio-productsEnvironmental energy (Water, Wind, Solar,…)Agricultural food

… for low technologiesTechnical consumer goodsLow technologies

… for enablers

Factories equipment (Basic technologies)Photonic machinesMechatronicsSoftware for products and production

… for existing markets

Innovative products


field for employment in the area of low-cost technologies such as technical consumer goods or design-oriented products. Flexible automation can contribute to the production of low-tech products, even in high-wage regions. A specific approach may be the reactivation of manufacturing low-technology products with techniques producible by flexible automation in high quality and high environmental and social standards. And last but not least is the field of emerging technologies, which are oriented to break through technologies such as additive manufacturing or photonics for brought spectrum of markets.

For all these future products Europe needs the production technologies on industrial standards (competition, sustainability). Many well-known processes have to be adapted or changed for the requirements of future products.

The Figure shows some known fields for innovative products and the technologies behind. Innovative products – under the aspect of sustainability and ecologic efficiency - have a long perspective in existing markets. This topic reflects on the potential of permanent innovation to overcome today’s boundaries and reach the zone of limitations. Examples are high performance (time, quality) machines for conventional technologies by implementing light-weight materials or technical intelligence.

Fig. 6.21 Light weight technologies in automotive industries (Source, Daimler, Bessey)

Figure 6.21 shows as an example the effects of weight reduction in the automobile Industry. Light weight-design made it possible to reduce the weight of each component and optimize the dimensions for compensation additional contents. Material has to be processed from raw to functional properties and

Weight reduction for all components

Lightweight designcompensation of additional content

Lightweight design 2.01-EIC lowerLightweight design 3.02-EIC lower

Generation of vehicles

The right material in the right place


technical reliability in usage. Automobile industry established a design system, which is based on fundamental research in material technologies and characterized by optimization of each technical element.

The automotive industry had the financial and technical power to generate new generations of vehicles by engineered materials and light weight design. This was contributed by manufacturing equipment industries which made the application reliable and capable. The development was oriented to objectives of sustainability and pressed by public regulations and standards ( e.g. emissions of CO2). But we see that in many industrial sectors lost their markets because of underestimating the potential of basic technologies and short term profitability. Sectors of so called low technologies disappeared in Europe (e.g. consumer electronics, or mass production goods). The area of so called low-tech products needs a research push in the basics behind to achieve contributions for sustainability and adding value again.

One example for underestimating the potential and the future technical relevance is the production of electrical engines.

50% of all electric engines are produced in China. They belong to the group of conventional – low-cost – technologies. They are one key for future electric automobiles. But the technology has to be adapted to the requirements of automobiles and to the energetic efficiency. The zone of technical limitations is not yet reached. It seems to be possible, to innovate this old technology for high -end efficiency. Even in this case, the economic objectives of manufacturing depend on the productivity of manufacturing. Flexible and adaptive manufacturing have the potential for realizing series production again in Europe by concentration the forces of research application and manufacturing technologies for future generations.

Beside the technical innovations is a field of services along the life-cycle of products, which has the potential of lead markets. Services include technical services as maintenance or repair but even new aspects, opened by the link between computerized technical equipment and ICT in a cyber-physical world. It allows manufacturer to support customers in all operations: Technical specification, consultancy, upgrading, setup, planning of operations, facility management, etc. ICT-based services with information supply anywhere and at any time open extensive markets, when it will be possible to connect the digital world with the reality.

All indicators of future development demand growing costs of engineering. The main drivers are the customization, the complexity of products and the requirements of reliability and usability. Life-cycle assessment and services along the life-cycle are areas for adding value and following the “megatrends”.


6.2.2.5 Innovative Manufacturing Technologies for Future Products

Innovations for manufacturing systems - seen as complex technical systems – are manifold as shown in Figure 6.22. They are offered by various disciplines and follow objectives under the constraints of individual manufacturing tasks. The main impulses come from basic process technologies such as casting, forming, joining and are influenced by innovative solutions of machines and tools. Intelligent mechatronics embedding electronics contribute to high performance and high technical productivity. The innovation is oriented to overcome existing technical borders by the implementation of partial innovations. The implementation of new technologies, like additive or generative technologies generates substitutions of conventional technologies with advantages in efficiency or new construction of products.

Fig. 6.22 Fields of innovation or future generations in manufacturing beyond existing technical limitations

The figure shows the fields of technologies, relevant for manufacturing to overcome boundaries. One of the most important technologies for manufacturing innovations that help to overcome limitations is the implementation of engineered (advanced) materials. Materials can be selected from a very broad spectrum with specific properties or composed for specific applications (so called engineering materials). Their behavior in application and usage can be influenced by special processes (heating, coating, etc.) to achieve specific functional properties like wear resistance, tactile feeling, design effects and many others. In view of long-term innovations the following trends are relevant:

Design andengineering andmanufacturing

Process-technologies

Advancedmaterials

Intelligentmechatronic

systems

Embeddedelectronics

Micro- / nano-scale

High performance

Dimensions

Energy efficiecy

Material efficiency

Environmental behavior

Generative processes

Adaptive processes


- Light-weight design – reducing the material consumption; - Long life and high reliability; - Individual properties; - Substitution of conventional design; - Capabilities for full recycling.,

Materials of the category of advanced materials (e.g. composites) allow new construction and design of products and demand changes of the manufacturing processes. Nano-technologies, for example, allow new functional effects in the surfaces and interaction of products with their environment but they require new machines and tools for production and changes in the technical system of factories. This impact of material-innovation is shown in the next figure and illustrated by an example of the aircraft industry.

Material innovations change the structure of factories including the periphery and require investments in new factories (Figure 6.23). Such structural changes may be cost-intensive and create technical and economic risks. It is necessary to intensify the implementation by pilot-manufacturing systems by taking into account the manufacturing systems are prototypes with all their risks in reliability and capability.

Fig. 6.23 The impact of innovation on products and processes

Beside of the impact of advanced materials are others which have an high potential for future products when they are driven by the objective to overcome limitations and when product technologies are supported by the manufacturing processes, specialized machines and integration in flexible systems. Manufacturing systems make the application reliable and opens the industrial feasibility. Such a strategic option can be illustrated by the ambitious developments in the aerospace industries. Their successful development was only possible with new manufacturing equipment. The aerospace industry is one of the drivers for new manufacturing system and created around many innovations for equipment manufacturers.

Processinnovation

Process-technology

Machinestools

Productinnovation

(Customized)Intelligentproducts

Devices,components

Individual parts

Innovativetechnologies

beyond borders

Flexible manufacturing

systems


The Example (Figure 6.24) shows the material and process innovations for the ambitious Airbus A 380 Program. New engineering-materials, whose properties can be designed, like GLARE (multi-layer laminated material) or CFRP (Carbon Fibre Feinforced Plastics), titanium alloys and thermoplastics are contributions to reduce the weight and allow upscaling of the dimensions. Other parts and devices in this product followed the downscaling of dimensions to reduce weight.

Fig. 6.24 New product-technologies demand new production system (source: Airbus)

The manufacturing system for these aircraft technologies was new. Machines, tools, measurement and automation had to be developed to fulfill the requirements of each process regarding accuracy, process capability and productivity.

Similar effects are known from other sectors of manufacturing industries. The industrialization of the manufacturing systems for emerging sectors such as in environmental energy production, health-technology, medicine-technologies, food-industries and others is essential for break through and leading positions in the markets. It is not only a task for manufacturing to create industrial concepts for new technologies but even for running and conventional technologies, where small steps of product-innovation generate the demand for new manufacturing solutions (Figure 6.25).

Emergent technologies are created in basic science of materials and processes. New functionalities and a wear resistance allow a longer life time and higher utilization. They all are usable for bringing back volume production to Europe (and in very large cities), when it is possible to make factories free of emissions, operating with high resource efficiency and intelligent technical solutions. Just for this technical concepts and economic investigations should be made now to overcome the crisis in critical regions.

GLARE CFRP FloorBeams(upper dock)

CFRP Empennage CFRP Section18 &19.1

CFRP rearpressure bulkhead

CFRP WingRips

Laser BeamWelding

CFRP CenterWing Box

More Titanium& new processing(electron beam welding


Fig. 6.25 Innovation in the process chains for intelligent manufacturing systems

The competence to develop and implement innovative manufacturing solutions is a key-technology for reindustrialization in Europe. Competences in material engineering, process-engineering, engineering of the equipment and the implementation in reliable manufacturing systems is especially required to bring back mass production to Europe by application of technical intelligence.

The rate of automation in manufacturing is increasing. Flexible automation with machines and robots, which can be adapted to changing tasks of manufacturing started as long ago as the 70s with flexible manufacturing systems and robotics for parts manufacturing and assembly. Since that time flexible manufacturing has contributed permanently to productivity and created new innovation sectors in manufacturing industries – mainly in the area of components and devices. The future technical development can be characterized by:

- increasing speed, performance and reliability; - ergonomic human-machine interfaces; - technical standards and integrability in systems architecture; - modularization, (re-)configurability of technical systems; - integration of process-models in the control system; - Interaction with technical environment and periphery.

The reduction of costs of devices accelerates the application of flexible automated manufacturing by the reduction of fixed costs and operating costs.

Future perspectives of innovation in flexible automation attack the adaptability and the human-machine interfaces. They get impulses by innovations in electronic devices and communication so that future systems will be able to cooperate in self-organizing systems. The human interface gives support by look ahead to avoid defects and to optimize the operations by supervising the environment.

Material- Metal

- Steel- light weight

- Polymer- Ceramics- Textile- Leather- Glass…..

(Digital) Manufacturing engineering – European standards

Product engineering Process engineering Management

Processes- Casting- Shaping- Forming- Cutting- Joining- Coating-

Equipment- Automation - Machines- Transport- Tools, - Molds, Dies- Measurement - Monitoring-

People- TrainingSystems- Smart factoryFactory-infrastructure- Media supply- Logistic-

Intelligent manufacturing

Material models Process models Machine models Factory models

Generation,transfer,storage,

applicationof explicit

and implicitknowledge


Fig. 6.26 From flexible automation to intelligent manufacturing machines

Machines have the intelligence to learn their behavior and operate in areas, which are usually unstable and cause deviations in quality. They have methodologies on board which supervise and predict the operations for the workers. The control systems have competences to minimize consumption of energy and auxiliary materials. High performance is reached by high speed, high volume and high precision. Solutions are specialized for specific products. Visionary aspects are remote operations, where the usage is supported by dislocated, virtual experts. Information and knowledge for optimization and adaptation is available everywhere and at any time (Figure 6.26).

The embedding of technical intelligence in machines in information networks creates new tasks and services around. This is one source for future growth even in conventional markets.

6.2.3 Knowledge-Based Engineering

Engineering Competence is one of the key–enablers of European industries. It is a fact that nearly 70% of product development costs are determined by physical experiments and tests. The cost of preparing products for market readiness, which are driven by statutory provisions and national product security regulations are increasing. Therefore it is evident that knowledge-based engineering can reduce costs of experiments by doing things exactly right. Knowledge based engineering will push the competition and application of innovations in products and processes for leadership.

Manufacturing engineeringDigital and virtual

product engineering,process planning

and process control with learning elements andIn situ-process-simulation

Variancy Zero-defects

Customised manufacturing solutions

Process technologiesbeyond limits

Flexibility for turbulent markets

Intelligent machines

Flexibility and high performanceHigh energetic efficiency

Increasing the quality and efficiency of manufacturing engineering

Remotemanufacturing

Scientific based process models


Visions, which contribute to the cost reduction in engineering, reflect on the management methodologies like preventive digital engineering and tools for optimization in early phases of a product’s life. Especially the productivity of engineering can be increased by

- qualification of engineers at a higher and medium level; - an engineering platform for cooperation and networking; - tools for managing complexity in the age of individualism and customizing; - tools to increase the quality and reliability of technical solutions by

simulation.

Increasing productivity and reliability of engineering allows lead in manufacturing and has a high cost saving potential by reducing the costs of experiments and prototyping.

The central visions of knowledge-based engineering are dominated by the implementation of knowledge in computer systems (Figure 6.27). Implicit knowledge is based on experience and the skill of engineers. The aspect of qualification (implicit knowledge) of engineers at different levels takes into account the demand to control the technical system and to detail each element of the technical system on high quality and in relation to the influence of the product life.

Fig. 6.27 Knowledge-based engineering

Engineering

Platform

Simulation

CAECAD/CAM

Digital productsDigital Factory

Intelligentautomation

Models

Explicit knowledge E-Learning

at workplace


Customization and optimization of efficiency requires higher personnel skill in engineering and production. The specific objectives of this field of actions are:

- customized innovation – high variability and flexible manufacturing, - quality, reliability and capability of products under the constraints of usage, - implementation of technical intelligence in products and link to ICT (cyber

space), - proactive optimization of the life benefits.

Scientific-based methodologies and simulation are the technologies for the engineering of future products and factories. They support the agility of operations in the workplace and activate the performance and productivity potential for the next generations more than other technologies before them. They are the basis for increasing efficiency and sustainability.

Engineers’ skills (implicit knowledge) must be deep – to optimize details – and wide to understand and control the complexity of technical systems. Europe has in this case deficits, which are caused by lacking qualification standards.

Explicit knowledge is based on scientific trusted models and intelligent analysis of the product behaviour in the real environment (histories, defect analytics, life time analysis etc..)

The Engineering Platform is an environment with methods and tools, engineers require for definition, design and analysis of solutions. Basic systems like CAD/CAM can be added by tools for mechatronic design (mechanics, electrics, electronics, software) to support the system-aspects in future products. Digital product representation and standard interfaces allow the exchange and online co-operation with partners and suppliers. Systems for life-cycle data management support the administrative tasks and link operations in the life-cycle of products. The link between physical products and the digital-virtual world is of course one of the main emergent technologies. Visions follow the idea, that each technical product can be connected with its digital model and location. Cyber physical systems offer a wide perspective for innovations. But they also create threats in the IP-protection, security, manipulation and spying. Technologies for security and methodologies of trust management in the future digital world are of high importance in the global economy.

Standards for the exchange of explicit knowledge require standards in models and a strong security system. Security systems protect know-how and IP. Intelligent searching machines/engines support engineers in finding solutions (elements, components) or technical data. Workflow management systems support groups in the project management and in the simultaneous engineering processes. Products and factories can be documented in digital forms - scalable to the details if required. The data flow from engineering to automated devices will be fully integrated.


Fig. 6.28 Visionary knowledge-based engineering system: soft-machines

Knowledge can be formalized in methods and models and computed in simulation systems (virtual products). The vision of application of simulation follows the life-cycle: product development, production, usage, remanufacturing, recycling. In all areas are application fields for simulation, which reflect to the requirements of the reality (Figure 6.28).

Explicit knowledge can be supported by modelling and simulation. It seems to be possible to implement knowledge about processes and in computerized systems, which have a scientific and practical background. This will help to reduce the costs of experiences and to assure solutions already in early phases of products life. For this, it is necessary to create models of technical systems with fundamental phenomena and evaluate them by supervising the real behavior under the constraints of practice. Models can be implemented as computer systems, which allow engineers to adapt and modify the solutions under the specific conditions.

Models can even be implemented in control systems to predict the results of operations of machines by look ahead. It is possible to create a learning system by feeding back sensor signals and parameters and simulate processes near reality as illustrated in the figure.

Models are abstracts of real objects (thinks) in computers in a virtual world. They have a scientific core (mathematically-defined set) and parameters. Scientific experiments are necessary to evaluate the models and their parameters. The gap between reality and the virtual world can be bridged by sensors and cognitive software tools. Sensors collect data, which can be concentrated to find

Process-models

Simulationable to learn

Real process(Production system)

Look ahead Feed back

Machines

Humans

ICT Engineering – Environmentfor manufacturing engineeringand management standards

Implicitknowledge

Explicit knowledge


the parameters (Smart factory). Models are computed by simulation technologies to predict the future behaviour or events. Simulation will be able to learn by permanent (online) adaption of the parameters.

The necessary computer-techniques are available. Europe has the competence to use high-performance computing and simulation technologies to analyse products behaviour by simulation technologies. Virtual technologies for intelligent monitoring, interaction, animation and visualisation are available. We miss the intensive research of process models on a scientific base and reliability. This is one of the main aspects of future development:

- models of all manufacturing processes and tools for adaptation of virtual and real conditions;

- ICT centres for High-Performance computing for manufacturing (network for simulation of products and processes;

- methodologies for management of trust and security in digital networking.

There is a strong world market for engineering tools, which require technical knowledge. We make the best machines but not the machines (knowledge based) for engineers to develop high end products or to manage the complexity of products. (Future market: soft – machines digital products, digital factory, knowledge tools, security of networking, Software Service (SaaS) for manufacturers etc.).

Fig. 6.29 Productivity push by knowledge-based manufacturing

Knowledge-basedManufacturing

PerformanceTime, Cost, Quality

Time

ConventionalProduction


In summary, knowledge-based engineering and knowledge based manufacturing have the long-term productivity potential to achieve high advantages in the competition. ICT-technologies are used to communicate explicit knowledge in the supply chains and in the transfer of best practices to suppliers and partners in the global networks of manufacturing.

When it is possible to activate the knowledge potential of conventional technologies by modeling and simulation near reality all manufacturing sectors benefit from this type of knowledge-based manufacturing. Reduction of defects, high performance of machines and equipment and the reduction of expenditures for experiments are the main cost-saving factors. It is expected, that the productivity can be duplicated.

More and more seems it possible to use digital models of humans for ergonomic design of products and workplaces. These models include bio-mechanics and physical properties of humans. They can be adapted to individual properties of humans and especially for disabled people or to the elderly. Engineers can use digital humans for planning and adaptation of work including the so-called hybrid system, in which robots and human collaborate (Figure 6.29).

Medical progress flows into the manufacturing environment to adapt the technical system on the requirements of humans and optimize their work in industrial manufacturing.


Chapter 7

Fields of Actions for Sustainable Growth

The vision of Manufacturing 2030 proceeds the Strategic Research Agenda (SRA) of Manufuture and boost the paradigm of competitive and sustainable manufacturing under the aspects of “megatrends”:

- From cost and short-term profit orientation towards high-adding value; - From economic efficiency to sustainable and green manufacturing; - From mass production to customized production; - From Tayloristic methods to knowledge-based manufacturing; - From hire and fire to societal grand challenges and human relations to

manufacturing.

Re-industrialization and manufacturing based growth demands the concentration of all forces in Europe, which have influence on the development:

- Industries in their role as actors for adding value; - States and governments, who set the surrounding conditions; - Research organizations, who generate the scientific basics for future

development.

States and governments are requested to support the culture and climate for sustainable and competitive development by activities in the infrastructure. Science must be opened for the application of research and transfer to education and qualification. There is an enabling role to take by industries, who deliver equipment and capital-intensive goods and users of factories in customer-driven industries (Figure 7.1).

They all need a common sense and orientation to long term visions, which are answers for the societal challenges and the “megatrends” as shown before. Vision, elaborated by the Manufuture community, reflect on the “megatrends” and challenges in techniques and management of manufacturing sectors. 4 major topics and action fields around span a wide field for innovations and topics for strategies.

The present European economic system comprises:

- universities, research centers, applied research organizations, - OEMs and their supply system, - SMEs, more or less specialized in industrial sectors,

82 7 Fields of Actions for Sustainable Growth

Fig. 7.1 Strategic fields of actions towards Manufacturing 2030

- public/private institutions for education and services, - unions, industrial organizations, associations, - governmental organizations (administration, security, health, etc.)

This system plays a fundamental role in the long-term development of manufacturing industries. The gap between universities’ research – which is often academic – can be bridged by universities co-operative campus-concepts and transfer-mechanisms. The public sector influences with laws and regulations the boundaries of manufacturing and the level of education and skill as well as the logistics and transport. Unions influence the cost of work and work organization. It seems to be necessary to synchronize the structural development and structural funding with growth, employment and manufacturing under the constraints of global “megatrends” environment.

The co-operation of the main actors in these public/private economic system is the critical success factor. Industrial development and growth depend extremely on the infrastructure around. The main areas are research, education, ICT and transport. It is evident that visions can be realized in environments which have the culture and the competences to innovate the public and private areas in the periphery of factories and inside of factories.

Local strength is essential for success in the global economy.

Highaddingvalue

CapitalintensivegoodsEnabler sectors

ConsumergoodsEmerging sectors

Infrastructure and surrounding conditions

Humansand ICT

Greenfactories

Factories In the

value chain

Urbanfactories

Research

ICT

Education

Transport

Sustainablegrowth

Competition

Knowledge

7.1 Infrastructure for Efficient Manufacturing 83

7.1 Infrastructure for Efficient Manufacturing

The last economic crisis made the regional differences in Europe evident. They show the need of infrastructure development as part of the re-industrialization strategies with regional orientation. Some regions spend their interest on the research and transport infrastructure without success in adding value. One of the lacks can be seen in the gap of cooperation between public support of research and private entrepreneurship for adding value. In the future visions factories are seen as an element of regional communities which have regional roots.

7.1.1 The Innovation Landscape with High Regional Differences

Europe is able to win leadership in efficiency of resources and set the global technical and social standards of future manufacturing. Following the EFFRA Road Maps and faster application of R&D results, it will be possible to generate the Factory of the Future with technical perspectives to global leadership in manufacturing. It is possible to develop the innovation culture in regions by concerted actions of research and infrastructure programs.

Research is only one factor for innovation. The transfer to practice and the roll out for adding value requires investments in the infrastructure around.

The infrastructure of a region influences the efficiency of manufacturing by its public and private facilities and institutions. Experts rate the regional advantages in collaboration to approximately 25% of manufacturing costs caused by operations effectiveness and availability of technical and human competences in critical success factors.

Figure 7.2 shows the regions of high innovation in Europe. Some regions have a long industrial and commercial history. Some are the result of entrepreneurship and special skill and competences. Some are influenced by public engagements in the infrastructure development or public investments (e.g. research centers). Some regions, which had in the past advantageous in labor costs lost their industries in the migration process of production to locations with extreme low costs (e.g. regions of Asia) without renewing.

Competition between regions caused differences in the local conditions. Some regions in central Europe are leading in innovation and are the engines of

the European economy. They can be characterized by:

- high R&D rate in industries and public research institutes; - dual Education System – high skill and qualification; - mobility of humans on all levels; - SME’s and OEMs – synergetic development; - short distances in transport and regional markets, etc. - engagement of companies in regional public and cultural activities;


Fig. 7.2 European regional innovation scoreboard

The technological competences of leading regions with manufacturing industries are deep and broad. But they concentrate their competences on specific sectors of technologies. The leading regions in the world developed their infrastructure for education and mobility in a strong public–private co-operation. Universities, education, Start-up-funding, technology-parks, services for manufacturing and business, including the finance sectors, follow future perspectives of products and markets. Regional co-operation activate synergies by networking. The economic advantages of high developed networking regions are approximately > 20% of costs.

Economic advantageous result mainly from the following factors: efficiency in work management, flexibility and reliability of operations, common use of resources, neighborhood and common economic interests.

7.1.2 Factories with Regional Roots

The strategic focus only on so-called key enabling technologies cannot fulfill the future requirements of manufacturing industries and factories of the future alone. It has to be supplemented by education and regional infrastructure to make the development towards leadership robust and resilient. The strategy must be

Regional Innovation Scoreboard (2009)


supported by the development of the industrial infrastructure and the regional/national education system – the floor of the next generation’s manufacturing and high employment within a European culture.

Learning from Nature: It states that growth is controlled not by the amount of resources available, but by the scarcest resource (limiting factor)

Limiting factors of factories depend on competences, required for innovative products (product-technologies) and efficient manufacturing (manufacturing resources).

Factories have regional roots (Figure 7.3), which influence the development to decline or growth. The roots can give manufacturing resilience and robustness by activation of regional synergies and social effectiveness. They contribute to the emotional environment.

Fig. 7.3 Factories with regional roots

Manufacturing enterprises and their factories are usually embedded in a local environment even when they operate in the global economy. Each factory is an element of a regional economic and social system:

- Public area: government, universities, education, health, transport, etc. - Public-private area: services in energy, water, telecommunication, etc. - Private area: industrial companies, finance, consultancy, etc.

Their characteristics define the regional competence for innovation, competiveness and potential for future development. The development of regions is therefore one of the central challenges for sustainable growth and employment.

Public investments in an infrastructure are long-term investments and should therefore be a part of long-term development to sustainable and competitive manufacturing. A concentration on single or key enabling technologies is not sufficient, if they do not reflect the full spectrum of technologies including the

Roots in theRegional Community (Infrastructure)Education Research Communication Health Transport Energy Water … Services

Regional Synergy Regional cluster Open innovation Cooperative development

Social Efficiency Regional culture Human centered Flexible work organisation

Factories of Emotions Suppliers Customers Government Public organisations


basic technologies. Strategies for regional development have to be defined carefully in co-operation of the acting parties.

The main question of European infrastructure development is: how can the public infrastructure of regions support the industrial value creation and the social welfare by activating regional synergies.

There are already many regional clusters, which show the positive impact on economic developments and give advice to the future. Examples are:

- regional clusters, which are characterized by a core technology field such as automotive, aerospace, electronics, textiles, etc.;

- European technology cluster-initiatives such as mechatronic, organic electronics, micro-manufacturing, bio-manufacturing, carbon manufacturing;

- global clusters: silicon valley, Gauteng region in China, electronic clusters in South Asia and others.

Regional clusters have the potential of adding value and growth by cooperation of the actors and support by public funding (Figure 7.4).

Fig. 7.4 Activating regional synergies in manufacturing for competition

Common culture, technological specialization, regional services, short distances, special skill and education, flexibility and engagement of enterprises in public development, regional sourcing and many other factors help to activate cost potentials for success. Co-operation and collaboration of public and private actors in regional systems benefit from system advantages and open an innovation culture oriented to regional and global markets. Universities and research centres are often the enabler of start ups and innovative business.

Some of the regional clusters are dominated by sectorial centres, which have a long industrial history behind. Some are oriented to emerging technologies or future enabling technologies. Their common interest is of course the activation of competences and resources by concentration on areas with high economic potential. Management of sectorial or thematic co-operation networks, RTD and

25 %

Manufacturing process chain

AddingValue Potential of

regional synergiesand collaboration ofpublic and privateorganizations


innovation investment funding is a key to sustainable development and reindustrialization of Europe by regional developments.

These models could even be orientations to fight against unemployment with manufacturing of low technology products by implementation of European standards in manufacturing and high performance manufacturing systems (e.g. flexible manufacturing, customized manufacturing). It can be the answer to the different regional situations in lower developed areas and give manufacturers the roots for successful sustainable development.

The actual political discussions in Europe for growth of economies under the expression of smart specialization follow regional infrastructure ideas. Regional governments use the resources of the European infrastructure programmes and complementary governmental programmes to develop the local environment. Taking into account the global challenges it is the time now for co-operative solutions on the way to sustainable development including manufacturing for adding value.

7.1.3 Regional Clusters and European Networking

Building a world-class research-technology-development infrastructure will only be possible if a favorable economic and regulatory climate encourages research investment and entrepreneurialism. Further harmonization of national regulatory and taxation frameworks will be required, particularly to support companies pursuing high-risk strategies when operating in highly competitive environments (e.g. high-tech, IT). The aim should be for the national frameworks to merge on a common basis at European level, thereby promoting equal opportunities for competition [15, 16].

Relevant framework conditions are:

- managers' education and awareness of the relevance of science-based innovation;

- employees’ education and training; - existence and recognition of the “innovation management” function; - access to the national and European scientific and technological systems, and

to the results of their activities and projects by networking of regional centers.

Visionary aspects of infrastructure development are driven by the following activities:

- public engagement to support the sustainability of regional developments in manufacturing, e.g. by support for the structural change of industry;

- governments’ contribution to the ecological and social efficiency around factories;

- public-funded research and transfer of research to practice for contributions to the innovation processes;


- urban development including regulations for good neighbourhood and generation of jobs in an urban environment;

- public services to support the global operations of manufacturers; - European governments support the standardization for manufacturing.

Networking manufacturing can be seen as nodes with regional relations. The efficiency of regional networks depends on the competence and efficiency of each node and the efficiency of the relations between the nodes or interactions with other outside organizations. Fields of actions are:

- education and skill in the dual mode; - research and research- based services; - regional energy sourcing and regional energy networks (public and private); - funding of regional clusters and engineering-centers for advanced

technologies; - ICT- Infrastructure and ICT-Services including the public and private sectors; - activating remanufacturing and recycling facilities.

Public activities influence the productivity and costs of manufacturing. It is now time to change the role of governments from control and supervision to a service-oriented role for development of the future sustainable manufacturing as the driver of adding value and employment. It is essential for Europe to activate the potential of regional networking clusters by infrastructure programs – oriented to the paradigm of competitive and sustainable manufacturing and the visions of future manufacturing. Short distances and flexible reliable support of everything: manufacturers need are critical success factors. The development of the infrastructure is therefore one of the obligations of the governments to support their regions.

7.1.4 Infrastructure for Sustainable Development

A successful Re-Industrialization by sustainable development needs the activation of regional competences and public investment in the infrastructure. Public organizations can play a role as service provider and promoter for efficiency in many fields in which manufacturer need help. Especially SMEs development depends on local conditions and regional services which is required for competition and resilience. The next figure illustrates the areas to support the structural change to sustainable adding value in regional clusters for smart specialization. Taking into account the above mentioned major topics like bringing manufacturing in the urban environment or implement cyber-physical manufacturing it seems to be necessary to implement critical competences in the near of factories (Figure 7.5).


Fig. 7.5 Orientation of public infrastructure toward service for manufacturing

Strategic developments of industries require complementary activities in the infrastructure:

- research (basics and application) and education of people in technologies and methodologies;

- ICT Services (Networks, SaaS etc.) – mainly for SMEs; - sourcing of resources including recycling and remanufacturing of products; - transport and logistics for efficient supply chains.

In a fast-changing and extremely competitive global environment manufacturing infrastructure and education become a strong prerequisite for promoting excellence and extending competence in manufacturing.

The regional development should be oriented to technology fields and include product- and process-innovations for regional and global markets with European ecological, economic and social standards. Governmental regulations for operating factories like buildings, water, air-emissions, waste, work conditions etc. need to be adapted to the requirements of sustainable manufacturing.

SMEs make up the majority of the European industrial manufacturing landscape for which ManuFuture represents a means of achieving market success and ensuring a viable future. Securing that future depends upon developing a scalable approach based on a single platform following the principles of co-operation in a networked value system for high-performance SMEs that are self-organizing, self-monitoring, and self-configuring. Co-operation between academia and industry is vital. This is especially true for the large majority of the European

SustainableAddingValue

Administration

Research andEducation

ICT-Services

Resources- Energy,

Water- Recycling

Transport, Logistics,Mobility


Economy that wants or needs to innovate but cannot afford an adequate internal research capacity. Transformable SMEs will build their technical and organizational processes around the strategy of innovating production, employing optimized inputs of materials, energy and information. They will continuously develop operational, organizational and financial solutions that answer day-to-day challenges, while also taking account of a planning perspective aimed at improving their competitive position in the medium- to long-term. Value-based internal and external developments will be identified at an early stage by means of risk analysis of future developments and their impact on investment decisions. Regional clusters are exactly for SMEs the opportunity for acceleration their growth.

For systems and human resources to act co-operatively throughout the value-adding chain, and to enable an SME negotiate independently with partners at its own and other hierarchical levels, new theories and methods must be proposed. These would ensure a dynamic process through which the enterprise could acquire the desired degree of freedom in both tactical and strategic decision, empowering it to pursue and self-regulate its goals.

Structural concepts with standardized interfaces for rapid configuration by ‘plug and play’ will be central to the common platform – as will digital tools and human-centered approaches to coaching, facilitating and empowering SMEs, enabling them to maintain a forward-looking stance and optimize the configuration of their operational processes, performance units and networks.

The research output of innovating SMEs is a key value-adding component. It will be used to test, validate and demonstrate solutions suitable for small enterprises in general, moving towards innovating production in tomorrow’s virtual factories – and thus permitting rapid deployment of new technical knowledge by the SME community. Proving that networked transformable SMEs can function as full working participants in a new knowledge-based world would thus show that the virtual factory concept represents a real opportunity for would-be investors.

Manufacturing industries can derive added value from the knowledge created within knowledge-intensive SMEs and from applied research organizations. This will enable them to focus on their own core activities, while leaving tasks that require specialized skills to the SMEs that have direct links with universities and RTD centers. As a result of their extensive networking, SMEs will thus become important reference points for manufacturing enterprises seeking frontier knowledge and innovative services. They will also form fertile breeding grounds in which personal growth and creative talent are strongly stimulated.

The favorable framework conditions should be set by ensuring a blend of basic, sector-specific and regionally focused application-oriented research in:

- advanced industrial engineering; - emerging manufacturing science and technologies; - new business models;

7.2 Education and Skill 91

- development of a cost-effective and robust shared research infrastructure capable of delivering results according to the current and future needs of Europe’s manufacturing industry.

Because RTD processes take a long time and are complex, involving several layers of society, an integrated set of actions is required at Member State level. In addition to pan-European efforts, national and regional authorities must participate, either independently or in a complementary manner, by

- fostering the creation of clusters (sector-specific, technology-oriented or other) at national and/or regional level, creating research and transfer nodes, and integrating SMEs into networks. These can then join and support the creation of clusters at EU level;

- developing competence in high-end manufacturing technologies; -establishing local centers of excellence in manufacturing, incorporating a ManuFuture network of educational and research communities to permit the involvement of university researchers, knowledge transfer to industry and the formation of spin-off companies.

Europe spends a lot of money in structural funds. The policy should use it for the support of regional infrastructure for sustainable growth in manufacturing and SMEs- periphery (roots) by pushing their competences.

In comparison to some regions in China, where industrialized areas are realized on a green field by (central) governmental decisions has Europe to create a climate of entrepreneurship and regional neighborhood (regional clusters) for growth. This strategy can achieve higher creativity, flexibility and resilience than governmental controlled economies.

A central field of the infrastructure support is the field of education and qualification of people.

7.2 Education and Skill

Employees are not only a cost factor of manufacturing. The old economic systems in which employees end especially the workers are only seen as a costly resource can’t be the base of manufacturing in the future. The role of workers in manufacturing has changed and only the view on human competences makes future development possible. The qualification of humans for manufacturing depends on the education system and facilities for manufacturing. This will be discussed in the following chapters.

7.2.1 Knowledge-Based Innovation Paradigm

The progress of knowledge-based manufacturing from breakthrough research to market innovation will be realized by considering this breakthrough research, together with enabling technology research, product and process development and


industrial innovation as a set of integrated activities. The top-down Research-Technology-Development (RTD) approach of radical and disruptive innovation is a science driven process, leading to new high-added-value products and processes “looking” for potential use.

The bottom-up route of incremental innovation, going from the market towards RTD-based development results in upgraded products and processes responding to shorter-term market challenges and opportunities with improved science-driven products and science-driven processes. They are alternative approaches for delivering new products for existing and new markets.

According to the Eurostat Business Statistics 2009 [2] 1.3 million professional researchers (full-time equivalent) and research managers are employed within this system in the EU-27 countries.

A knowledge-based economy will also necessitate a restructuring of education and training to reflect the lifelong learning needs of tomorrow's “knowledge workers”, for whom variety must be seen as opportunity. However, it is also crucial to consider the social dimension. To cope with demographic change and the ageing population in many western European countries, new forms of work organization should be developed to permit full integration of the elderly – including those with low qualification levels – into the workforce (Figure 7.6).

Fig. 7.6 Manufacturing education – driver for promoting manufacturing excellence (Source: Chryssolouris)

The transformation of manufacturing requires new and dynamic research and innovation networks that must be nurtured to stimulate knowledge generation and ensure efficient transfer of its benefits to the market sector. It involves clear recognition of the mutual value in an intimate collaboration between industry, the academic community and knowledge transfer intermediaries. This demands a clear

Promote manufacturing excellencein the years to come

Innovative products and services

Innovative enterprise and production

Innovative research and development

High added-value design

New businessmodels

Knowledge-based

engineering

Emerging MFG technologies

Manufacturing education

The drivers

The strategic goal


understanding of the respective roles of research partners on the one hand and of industrial partners on the other. Each has a different viewpoint in evaluating results. That difference must be recognized and reconciled if collaboration is to lead to optimum outcomes in which innovation is translated into new products and processes.

The successful dual system is one orientation for future development of the education system. It is known that skilled labor forces give high economic advantages in customized and changing operations: time and quality of manufacturing.

7.2.2 Increasing Demand for Qualified People

All technical and economical factors indicate a growing demand for qualification of the humans for future manufacturing (Figure 7.7). First and driving force is the trend for customization - based on the “megatrend” of individualism - as mentioned before. Customization expands the variety of products and the flexibility or changeability in manufacturing processes. Quality has to be ensured by legal responsibilities of producers. Regulations for products request intensive tests and experiments independent of the number of products produced.

Fig. 7.7 Demand for qualification and skill

Taking into account the manufacturers follow the life cycle of technical products from birth to the end of life for adding value many new jobs are created with new qualification profiles and work in an ICT environment. System competences and customer relations need basic knowledge and experience. New and expanding areas of work are the pre-sales and after-sales operations and services around manufacturing. This all requires system competences and

System competence

Workers for production, logistics, administration

Skilled workers for production, service

Technicians, specialists

Engineers

System-engineers

Mgt Increasing demand- Customization- Adaptation- Precision- Complexity- Reliability

Cooperative work- Working groups- Team work (simultaneous)- Interdisciplinar- Networking- Work in ICT environment


interdisciplinarity in the work organization between mechanics, electronics and software-production along the life-cycle of each technical product.

Permanent adaptation of manufacturing systems and work tasks influence the dynamics at work and management. The complexity is increasing by integration of technical functions in the products, which have to fulfill high global standards in reliability and technical efficiency. Automation modifies work from physical to digital and virtual work – embedded in the workflows of administration.

A second change driver is dominated by the needs of co-operation and collaboration to reduce time to market and achieve the objectives of quality by work-sharing, specialization and division of labor in the manufacturing chains. Most of our technical products are made by working groups. In the engineering and design departments collaborative forms of work organization such as team work, simultaneous or concurrent engineering are state of the art, which require social and cultural knowledge.

A third factor of changing traditional organizations is driven by ICT- environments and systems (cyber-physical manufacturing). Shortest delivery time, reduction of stocks in the logistic system (just-in-time) requires the usage of scientific based methodologies. Examples are methods for management of the supply chains or systems to optimize the value chains with computerized tools like simulation which support the operators and decision-makers on time. Information is available at anytime and anywhere. ICT-Systems based on the internet change the workflows and allow synergetic work via global networking and information exchange. Interdisciplinary teams are linked in ICT- Networks and administrative workflows.

7.2.3 Skills and Educational Strategy

The challenge for European manufacturing is to increase skills and capabilities of the EU workforce by developing the competences needed by new generations of “knowledge workers” combining technological expertise with entrepreneurial spirit (Figure 7.8). Ensuring continual training will produce a workforce capable of working in volatile business networks, and facilitate the mobility of researchers, engineers and skilled workers. Further important challenges for manufacturing education include overcoming the fragmentation of manufacturing knowledge and research in Europe, embedding innovative spirit within the education system to counter the risk-averse approach that characterizes Europe, and providing the means by which the loss of a large number of low-skilled jobs can be balanced by educating high-level personnel for new manufacturing jobs (e.g. shift from production to pre- and post-production, focus on after-sales services, etc.). A basic need is to align the differing national educational systems with the demands of future manufacturing, taking into consideration that the responsibility for those systems lies within different departments in each of the Member States. Knowledge-based production requires the support of new kinds of education and training schemes integrating research with technology and manufacturing. The priorities are to:


- develop an effectively resourced landscape of innovation, together with a training mechanism for its emerging job profiles;

- reorganize educational programs around new engineering disciplines; - establish Europe-wide educational systems by introducing an EU credit

system allowing students of manufacturing engineering and other disciplines to complete parts of their education in other regions and countries;

- address the workforce as a societal issue, focusing on attracting and keeping adequately trained people to make European manufacturing more competitive and sustainable.

Industry, universities and public education organizations are partners for education and qualification. Industrial growth depends not only on technological innovation but also on the skill and availability of qualified people at all levels. A strategy for qualification can be successful by collaboration of industries, universities and public education organizations as shown in Figure 7.9.

Usually many public and private institutes are responsible for the basic education and skill. Some regions offer young people an industrial-oriented education system by following the dual education in which young people are educated in basic technologies for industrial manufacturing. This is the source for skilled workers - qualified for precision and reliable workmanship. The dual education system is one of the success factors of leading companies.

Fig. 7.8 Education of young people for manufacturing in the dual system (Daimler)


Education for manufacturing requires well equipped and state of the art facilities. Theory and practice are necessary to deepen the knowledge and operate machines of high performance. The increasing demand in indirect work and future activities after sales makes it necessary to include methodologies for manufacturing in the education programs.

Universities educate higher levels of skill based on scientific research and technical fundamentals. In modern times they are oriented to academic objectives and disregard the requirements of application or the continuity of further education post-university degree. Lifelong learning and learning at work are fields, where a dual system for post-university education promises faster transfer from research and optimization of industrial operations.

Industrial companies have a high interest in qualifying their customers in operating, fabrication and technical services of their products. This part of the education system – along the life of technical products – is one of the critical success factors for customer relationship and adding value in manufacturing.

Fig. 7.9 Learning and teaching factories

Education is investment in human resources. It requires state of the art and the newest technical equipment in the training centers and laboratories. It seems possible to use e-learning methodologies to offer best practices and knowledge at work place.

Education and skill of young people is the main objective to offer qualified work. The process of de-industrialization can be reversed by collaboration of industries, universities and education institutions for basics and innovative technologies in common centers for skill and qualification.

Industry

Basic education and skill

Dual education forskilled workers

Post-universityeducation andqualification

Customers support

and training

Universities

Learning and

teachingfactory

Public education

organizations


7.2.4 Learning and Teaching Factories

During the 1990s, universities were faced with significant pressure to produce innovative results that could be exploited more effectively by industry. This was mostly due to the fact that the European innovation gap was deemed to result from insufficient and inefficient scientific and technological transfer. Despite the efforts of the academic community, development of educational curricula has failed to keep pace with either the growing complexity of industry or the economy, and even less with the rapid development of new technologies. Studies are often too lengthy and too general.

Furthermore, it can be argued that manufacturing is a subject that cannot be handled efficiently inside a university classroom alone. A highly promising approach would be to integrate the factory environment with the classroom, to create the “Teaching Factory”, in which academic studies are combined with hands-on work experience and exposure to the needs of industry. This concept has its origins in the medical sciences, and specifically in the paradigm of the teaching hospitals, where medical schools operate in parallel with hospitals. In a similar way, aiming to become a new paradigm in education and training for manufacturing technology, the teaching factory will combine research, innovation and educational activities within a single initiative.

New forms of basic and life-long training, moving beyond the traditional disciplinary boundaries with world-class targeted interdisciplinary teaching at university and postgraduate level, should also be introduced and established (e.g. academic start-ups and ‘venture capital universities’).

The qualification of high level employees for manufacturing and management must be oriented to the system-approach of future manufacturing. The management of complex technical and organizational systems and the competence to their development requires high skill in interdisciplinary fields especially for manufacturing engineers. To achieve the required qualification it is necessary to cross the disciplines of mechanics, electronics, computer science, economics and social science in relation to the practice.

One innovative example for this innovative way for qualification and education of highly skilled engineers is the Graduate School for advanced Manufacturing Engineering (GSaME) at the University of Stuttgart, Germany. GSaME was launched 2009 as an interdisciplinary graduate school for doctoral students in the field of Manufacturing. The school focuses on Factories of the Future and on Methodologies and Technologies for competitive and sustainable development in manufacturing.

GSaME offers companies mid-term co-operative research projects, which require scientific basics and innovations in a dual system. The doctoral students with a university degree in natural science, mechanics, electronics, information technologies or economics can spend half of their time in laboratories or shops of manufacturers. Their additional education program qualifies in management and technologies far beyond their dissertation projects.


Fig. 7.10 Graduate School for Advanced Manufacturing Engineering GSaME (Source University Stuttgart)

GSaME (Figure 7.10) follows visions of future factories and contributes with methods and technologies in six interdisciplinary clusters of strategies, global/regional networks, ICT-systems, processes and materials, equipment and intelligent production systems. It is based on an operational model of manufacturing business processes and a holistic view of manufacturing as a socio-technical system. Sustainability and competiveness are the main objectives.

Visions of factories of the future and the change of paradigms from cost-orientation to sustainability should be the leading philosophy of the education system.

7.2.5 Recommendations for Actions in Education

As a result of all the discussions of re-industrializing Europe and re-vitalizating manufacturing as the core of European economic development, education seems to be the most important field of action beside technical innovation. Recommendations for education and skill reflect all levels of work:

- build strong links between industry and academia, by establishing joint postgraduate degrees, postgraduate industrial training and industrial ‘real-life’ courses, as well as manufacturing departments and/or universities driven by industry;

- integrate all manufacturing qualifications of EU Member States into European engineering curricula;

- introduce new teaching principles and industry-based case studies that will promote concrete expertise in manufacturing;

Individual education program

University of StuttgartFraunhofer IPA and IAO

Industry

AStrategies and factories’ development

BManagement of global

manufacturing networks

CInformation and communication for manufacturing

DEquipment and service engineering

E Materials and process engineering F

Intelligent manufacturing

systems

Technologies and methods

forfactories of the future

GSaME

Graduate School advanced

Manufacturing Engineering

University of Stuttgart

• Dual system• Individual education• Learning factory• Scientific profile

7.3 ICT-Infrastructure for Manufacturing 99

- re-organize educational programs around new engineering disciplines with a high potential impact on EU manufacturing competitiveness. Such disciplines need to address all levels of the extended products, systems and embedded services of the manufacturing sector;

- activate an appropriate ManuFuture International School, leading to Masters and PhD qualification in industrial research, based on research institutes and manufacturing companies in a dual system.

- set up of education centers for young people for skilled work and support of the development of four major topics.

Finally, as an industrially-driven platform, ManuFuture defines a consensus vision of the research and innovation needs for high-added-value manufacturing. This vision should be used by stakeholders to integrate and co-ordinate research in a European Research and Innovation Area for Manufacturing – EMIRA within the European Research Area (ERA). This co-ordination should take account of regional and national needs, and recognize Europe’s wider role in the global RTD and innovation network.

7.3 ICT-Infrastructure for Manufacturing

Co-operation and collaboration between all players in manufacturing and in operations along the life-cycle of products is already today’s practice. This networking in manufacturing requires cheap and standardized local (inside manufacturing) and global (wide, outside manufacturing) communication systems with standards in interfaces, high security, reliability at any time. We can expect, that the following trends and innovation in ICT open new perspectives for future manufacturing:

- increasing speed of information and data transfer, - increasing performance of computing and electronic devices, - human-centered interfacing to computers, - sensor-integration, - ICT services like data storage, data transfer and software-services, - but increasing threats: investigation, plagiarism, cyber-terrorism, etc.

Networking stakeholders around manufacturing sites are shown in Figure 7.11. Usual business-to-business relations are known but combing them with products and pre- and after-sales services in a real-time and cyber-physical- environments make the ICT-networking to success factor for all.

Manufacturing needs an industrial ICT-Infrastructure to connect the stakeholders and to add value in the life-cycle of technical products by services and just-in-time information supply anywhere and at any time.


Fig. 7.11 ICT for manufacturing to support regional and global cooperation

- product–information supply for products in their life; - factories with their suppliers and customers (supply chains, customer

relations); - partners in the engineering chains from open innovation to customized design; - factory equipment chains including services for machines; - communication chains to administration and public government; - co-operative activities between research, education and companies; - mobility of people (employment); - ICT Services (software, computing, consultancy)

The ICT-networks are parts of the infrastructure and contribute extremely to the efficiency of manufacturing. Changing manufacturing systems and visions of future factories are influenced by innovations and connectivity in IT.

New architectures of ICT-Networks for manufacturing take opportunities of ICT-innovations and –services into account and fight against threats of security. Regional centers for communication in manufacturing link the stakeholders and support their operation with information in a federative way. The centers have high security standards to protect knowledge and technical data. They offer a wide spectrum of software tools: so-called engineering apps which are additional tools for technicians and operators. E-learning modules for technical education and training of customers are fields of growth.

Federation principles have intelligent mechanisms to supervise technical sources and sensors in a cyber-physical environment. Such a system requires trust in data and information. The ICT center can be understood as a virtual-Fort Knox with detailed stores and knowledge (models) (Figure 7.12).

InternetGrid, SaaS, Cloud

Facilitymanagemente-Services

Supply chainmanagement (SCM)

Product datamanagement

ICT for manufacturing

Customer relationsmanagement (CRM)

Research

Engineering partnersopen innovation

Sal

es a

nd d

istr

ibut

ion

Mat

eria

l sup

ply

Engineering partnersopen innovation

Education

ICT services

Administrationgovernments

7.3 ICT-Infrastructure for Manufacturing 101

Fig. 7.12 Regional ICT-Centers called “Virtual Fort Knox”

Regional ICT-Centers as part of regional clusters are nodes for industrial communication and services. They need public support for the implementation of high-performance computer resources and regulations for security including European standards for protection of private data. The industrial ICT-network can be supported by infrastructural developments for the communication networks and regulations regarding security. We called centers for industrial communication a virtual Fort Knox, in which companies that fulfill high security standards can store technical data and mass data by using efficient IT. The realization requires investment in the infrastructure and research for innovations to protect knowledge and data in an open environment. The idea of a virtual Fort Knox is the result of discussions about synergies of collaboration across different sectors in manufacturing.


Chapter 8

Global Manufacturing and Internationalization

Local or regional strength and global operations are possible by implementing visions like those described before but they require additional activities in global networking for sustainable growth and global standardization policy [11, 12, 14,]

8.1 Sustainable Growth

European manufacturers of production equipment are still in a leading world market position. Main factors such as:

- quality of customized engineering (market driven innovation); - capability of complex technical solutions; - quality of persons employed; - deepness and variety of technical competences; - efficiency of networking;

are the basis for future development in nearly all manufacturing areas and sectors. Many small and medium enterprises have excellent global market positions especially in niches of equipment and tools for manufacturing. Taking the strength as a basis of global strategies it seems possible to compete successfully against low-cost regions.

Under the influence of the global “megatrends” it seems to be possible to grow in all areas, which are dominated by engineering and intelligence of the manufacturing system. The “megatrends” open the potential for a new generation of manufacturing systems, which follow the paradigm of competitive and sustainable development. European manufactures are able to compete with high-tech solutions, customer-driven innovations and specialized applications.

With existing competences and the orientation to factories of the future it seems possible to re-industrialize Europe in the global markets by leading in manufacturing and engineer-driven production systems.

Investments have to be taken in methodologies, technologies, technical resources and human capital for leading in manufacturing:

Public: regional infrastructure for manufacturing and innovation culture to support regional synergies and co-operation,

104 8 Global Manufacturing and Internationalization

Private: investment in market-driven innovation and modernization, adaptation of resources for economic, ecologic and social efficiency, Research: tools and methodologies for efficient manufacturing engineering along the life-cycle of each technical product to increase adding value.

Public-private-cooperation is not only necessary to compete in high-tech for final products but also for the manufacturing technologies to produce in the best infrastructure. Europe has to win back the competitiveness in the low-tech area and invest again in low-tech manufacturing for adding value and growth.

The position of this future perspective can be summarized by competences for sustainable solutions in technology and business. Europe can set the social, economic and technical standards. The orientation of business along the life-cycle opens new potentials for adding value by application of ICT- based services (Figure 8.1).

Fig. 8.1 Strategy for global competition

European manufacturers have to change their structure for global sustainable growth by primary application of technologies, which increase economic, ecologic and social efficiency. Scientific-based research in technologies reduces losses of practical experience and opens the way for solutions beyond existing boundaries. Engineers focus on manufacturing of intelligent solutions enabling completion to bring customized mass production back to Europe. This is also a contribution for export European-made manufacturing in subsidiaries of European manufacturers. Manufacturing standards supported by a European standardization policy and sector or OEM specific standards, with a research background, stabilize the economic position. ICT-networking with the link between the real and the digital environment open the marked for product-oriented services.

EuropeanEconomy

Competitive & Sustainable

Manufacturing

Global Economy

• Local content• Near market• Global

standards

Competition in high tec

Import

Sustainablesolutions

Manufacturingstandards

ICT basedservices

Synergies of RegionalCooperation

EfficientEngineering

Market drivenInnovation

Best infrastructure

Education system

Export

Competition in low tec

8.2 Policy of Standardization for Manufacturing 105

Europe can be the leader of future manufacturing standards by consequent orientation on the structural change – driven by the global “megatrends”. Global manufacturing commandments are required for the sustainability of industrial development. Taking into account global problems and threads of the future, the migration of production and consumption, changes of life influenced by the production and management systems and the necessity to adding value as base of welfare standards of manufacturing have to be brought in a declaration for global networking.

Politics discuss the following questions:

- growth and employment - how can positive interaction be enhanced? - investment in human capital – a key factor for economic progress and social

inclusion - regional co-operation to strengthen the social dimension of globalisation

The answers can be given by the manufacturing industries.

8.2 Policy of Standardization for Manufacturing

Standardization is an instrument to protect or open markets. Standards for manufacturing were born for the exchange of technical elements mainly for spare parts (Tolerances) and for interfacing technical systems. Many European standards are based on old national standards. In the meantime standards have normative character, with legal instructions or engineers’ standards. Some of them are defined by market leaders to protect their position. Standards heavily influence the innovation and technical development.

Fig. 8.2 Deregulation or Regulation of Standards for Manufacturing 2030

Deregulation Regulations for the future

StandardsState of the art

Market protectionCreativity and innovation Customization Individual solutions Bureaucracy Certification

Consumer protectionMangagement of complexity Economic advantages Market position IP protection Ecological efficiency Energy Material Social efficiency Social standards of work Effectiveness of technical systems Adaptability and reconfigurability

of technical systems Service quantities (spare parts) IT-based communication

106 8 Global Manufacturing and Internationalization

Standards usually define the state of the art. Standards reduce the variety of technical solutions and supports mass production (Figure 8.2). Standardization boosts bureaucracy and protectionism. They are sometimes the brake for innovation. The export-oriented industries have to fulfill many national and special instructions, which causes them disadvantages in time and cost. On the other hand, standards are instruments to protect consumers, users or customers (health, service, security, guarantee).

Legal instructions which are based on standards influence technical developments like emissions (noise, gas, water, etc.) or accelerate the implementation of innovations. They even contribute to the exchange of information or technical goods in the logistic system.

Europe has a different interest in the standardization policy, which depends on the interests of specific industrial sectors. Leading groups use standardization to protect their market. In other cases they are fighting for deregulation to compete with their special solutions.

Taking a strategic development towards Manufacturing 2030 with global leadership into account, it is necessary to develop a Standardization strategy which is focused on the perspectives of competitive and sustainable growth.

The implementation of new paradigms in manufacturing is influenced by the Economy, Society, Environment and Policy. The Vision of Manufacturing 2030 can be a kind of a polar star to develop a standardization strategy and in the consequence a European Standardization Policy to accelerate the manufacturing development process. All areas of new holistic manufacturing systems are required to analyze the impact and the potential of standards.

Fig. 8.3 European Standardization Policy (source: working document EC JRC Foresight study on the future of standards)

Businessenvironment

Materials and re-use

recycling

Value services

Economy

Society

Policy

Environment

How will standards facilitate new production systemsin the context of EU Innovationand competitiveness 2025 ?

Objectives:European standardization Policy for global manufacturing

Infra-structure and logistics

Technologiesprocesses

ICT andknowledge

management

8.2 Policy of Standardization for Manufacturing 107

The influence of “megatrends” classified in the fields of economy, ecology, socials and policies now requires long-term modifications. It has to be considered that the definition of standards has to be oriented to long-term objectives. They may be driven by the technological potential and the requirements of manufacturing systems. Objectives and regulations have to anticipate the future producibility. This requires research of basics (models) and feasibility of new solutions.

A European Standardization policy (Figure 8.3) is required, that:

- releases the brakes, where protectionism blocks the growth; - reduces the bureaucracy to accelerate the implementation of innovation; - guaranties customers requirement regarding health, security and usability; - sets objectives to increase economic, ecologic and social efficiency; - opens a global market with European certificates and quality; - creates a leading European standard for manufacturing systems.

Standardization policy should find the way of co-operation with research and application. The main points of a global standardization policy for manufacturing are:

- assuring the intellectual property rights in a global ICT environment; - assuring social effectiveness; - social standards of work based on scientific results; - human safety at work;

o working conditions, o worker participation, o performance-oriented wages – “social dumping”.

- Environmental protection and pollution: o lean, clean, green, manufacturing; o emissions, waste, hazardous materials; o sustainable sourcing and recycling; o energy and material processing efficiency;

- Standards of management and business; - Technical standards for new areas and networking;

o information exchange, o trust and security in cyber-physical systems, o standards of IT-interfaces, o tolerance systems for micro- and nano-technologies, o environmental standards.

Standardization politics for manufacturing require log term strategies, which take into account the megatrends and opportunities in the global economies. They should open innovation and exchange of products. For manufacturing is essential that standards contribute to fair trade and sustainable development.


Chapter 9

Conclusions

The European economy lost a third of its industrial base within the last 40 years. The permanent degression, which is partly caused by short term profit business generates unemployment and missing value which is necessary to uphold the social standards. A radical change of the economic/technical system is necessary:

- From short-term to long-term profitability, - from production and sales to life-cycle operations, - from the view on workers as cost factors to human competences, - from green field back to urban environments, - from global networking to regional co-operation - from cost optimization to holistic efficiency, - from standardized workflows to dynamic operations, - from conventional engineering to knowledge-based engineering.

The change of these paradigms allow the implementation of a holistic and efficient manufacturing system as a European way for re-industrialization. Europe has the power to lead manufacturing when it concentrates the forces on a development, which is hardly influenced by global megatrends.

Some conventional paradigms have to be changed. It is the time to realize new generations of manufacturing, which may be answers to the grand societal challenges and trends of the future. Four major topics have been identified. The must be added by peripheral actions to accelerate the implementation of new technologies and generate high performance and flexibility. IT seems possible to bring back mass production to Europe by usage of flexible technologies and customization.

Manufacturing creates adding value in a complex socio-technical system. Not only single technologies but the chains from birth of products to the end of life and synergies of networking have the potential for success in the global competition. This system approach focuses on application-oriented research, an IT-Environment, and a dual education in all levels. Factories have regional roots which influence growth perspectives. It is time to combine public funding in research with the regional infrastructure development.

110 9 Conclusions

ManuFuture defined visions and road maps for a development towards global competition and sustainability. This book is a contribution to discussions in politics, science and industry for the future development. We are sure that Europe has the competence and strength to lead the implementation.

Erratum: Towards the Re-Industrialization of Europe Engelbert Westkämper

Universität Stuttgart Fraunhofer IPA IFF Stuttgart Germany

E. Westkämper, Towards the Re-Industrialization of Europe, DOI: 10.1007/978-3-642-38502-5, © Springer-Verlag Berlin Heidelberg 2014

DOI 10.1007/978-3-642-38502-5_10 In the original online version of this volume, the organization is missing. It is given on the next page.

_______________________________________________ The original online version for this volume can be found at http://dx.doi.org/10.1007/978-3-642-38502-5 _______________________________________________

Organization

Two groups from the EU Technology Platform ManuFuture were actively involved in contributing ideas and discussing the objectives, major topics and strategies of the European Manufacturing development initiative. I would like to thank them all for their engagement over the last years and for the confidence they showed in the success of the European way for re-industrialization. The ManuFuture Community is a great and enthusiastic family.


ManuFuture Editorial Committee

Franco Jovane, ITIA, Vice Chaiman European Technology Platform ManuFuture Eberhard Bessey, Daimler, Secretary European Technology Platform ManuFuture George Chrissolouris, University Patras Christoph Hanisch, FESTO, Germany Siegfried Stender, Fraunhofer IPA Engelbert Westkämper, University Stuttgart, Fraunhofer IPA

ManuFuture Support Group

Professor Francesco Jovane, Politecnico di Milano, Italy Arunjunai Annamalai, TNO, Netherlands Dr. Eberhard Bessey, Daimler, Germany Dr. Rikardo Bueno, Tecnalia, Spain Dr. José-Carlos Caldeira, INESC, Portugal Professor Edward Chlebus, CAMT, Poland Professor George Chryssolouris, LMS, Greek Chris Decubber, Agoria, Belgium Djea Djeapragache, CETIM, France Sue Dunkerton, TWI, UK Filip Geerts, Cecimo, Europe Dietmar Goericke, VDMA, Germany Dr. Christoph Hanisch, Festo, Germany

Organization

Peter Johansson, Teknikföretagen, Denmark Dr. Massimo Mattucci, Comau, Italy Professor José Mendonça, INESC, Portugal Dr. Augusta Maria Paci, CNR, Italy Zeljko Pazin, Orgalime, Europe Dr. Kai Peters, VDMA, Germany Daniel Richet, CETIM/FIM, France Dr. Siegfried Stender, Fraunhofer-IPA, Germany Professor Tullio Tolio, ITIA-CNR, Italy Professor Frederikus van Houten, University Twente, Netherlands Professor Dr. Engelbert Westkämper, Fraunhofer-IPA, Germany Professor David Williams, University Loughborough, UK

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