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The Internet of Things
The Internet of Things: Connected Products –
Connected Manufacturing
Dr. Rainer Kallenbach, CEO, Bosch Software Innovations GmbH
1
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Bosch Key Figures 2014
Bosch Group



Automotive
Technology
48,9 billion EUR in sales
290 000 associates
225 manufacturing sites
Europe



53 % share of sales
174 400 associates
140 manufacturing sites
68 % share of sales
Industrial
Technology
Americas



Energy and
Building
Technology
32% share
of sales
Consumer
Goods
Asia Pacific
2



2
Bosch Software Innovations
2
21 % share of sales
33 500 associates
33 manufacturing sites
INST/P R. Kallenbach | 12.05.2015
24.02.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
26 % share of sales
73 500 associates
52 manufacturing sites
Including other regions
The Internet of Things
On the way towards a connected world ...
of 5.7 billion people...
of 6.5 billion people...
... 0.7% are online
1995
World population
... 15% are online
2005
of 7.3 billion people...
... 75% are online
2015
People with internet access
Connected
devices
0.04 billion
0.75 billion
Bosch Software Innovations
3
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
6.6 billion
The Internet of Things
Enabling Technology: MEMS Sensors
“Moore´s law” in MEMS
Continuously shrinking size/footprint and reducing power consumption
Bosch Sensortec 1st
with 1.2 x 1.5 mm2
Bosch Sensortec 1st
with 3x3 mm2
2005
2005
Source: Bosch Sensortec
2006
2006
2007
2010
Bosch
2007Sensortec 1st2010
with 2x2 mm2
Bosch Software Innovations
4
2013
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
2013
The Internet of Things
Internet of Things Vision: Connected World
Industry
Mobility
Energy
Smart Home
Bosch Software Innovations
5
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Smart City
The Internet of Things
Connected “smart” things allow new services
„Thing“
Thing-based
FUNCTION
IT-based
SERVICE
[Physical | Local]
[Digital | Global]
IT
[HW | SW]
Source: University of St. Gallen, Prof. Dr. Elgar Fleisch
Example FUNCTION:
Charging EV with electricity.
Example SERVICE: Find charging station,
reserve and pay as you go.
Bosch Software Innovations
6
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
First Step Toward an IoT Solution
Add connectivity to the basic functionality.
adding connectivity
smartphone app
connected
remote control
managing all devices
connected home
Bosch Software Innovations
7
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
The Way Towards an Intelligent Solution
Add smart sensors to increase functionality.
motion detector
increased comfort
smart
sensing
internet based
remote management
lighting pattern
Bosch Software Innovations
8
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Finally: Added Value for the Customer
Find convenient new services based on the technological
possibilities.
local intelligence
minimal additional costs
internet
service
added value
security service
new business models
more:
Bosch Software Innovations
9
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
www.comfylight.com
The Internet of Things
Connected World Solutions cover 4 Areas
Enterprise
Users
Partner
Things
Bosch Software Innovations
10
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Connected Manufacturing Example: Service Portal
Machine Operator



One portal for all
maintenance applications
Integration of existing
processes and systems
Comprehensible and
accurate accounting
of warranty services
Machines &
Components



Real-time compilation of
machine and sensor data
Rule-based analysis of
machine data to create malfunction prognosis
Mapping of maintenance processes
Bosch Software Innovations
11
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Enterprise




Maximize uptime
Better planning of
maintenance activities
Use maximum lifetime of
spare parts and products
Increased productivity
Service Partner



Optimize services offered for
customers
Revenue through new
services
Increase margins by offering
services remotely
The Internet of Things
Industry 4.0: Solution Quadrants
Demand chain connectivity
Industry 4.0 Vision
‘Connected Product’
Supplier
Manufact.
Distributor
Customer
‘Connected Plant’
Supplier
Manufact.
Distributor
‘Connected Ecosystem’
Supplier
Manufact.
Distributor
Customer
‘Connected Operations’
Customer
Supplier
Manufact.
Distributor
Customer
Supply chain Connectivity
Source: Demand chain management in manufacturing and services: Web-based integration, drivers and performance, Markham T. Frohlich , Roy Westbrook
Bosch Software Innovations
12
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
The IoT in Manufacturing: Industry 4.0
Shortenin
g reaction
times
Increasing
competitiveness
Productiv
ity
by combining IT
expertise and domain
competency in new
solutions
Flexibility
Productivity
Increasing
output
Developing new
business
models
Reducing
total costs
Growth
Expanding
market
share
Bosch Software Innovations
13
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Optimizing
the work
environment
Converting
fixed costs
into variable costs
The Internet of Things
Our solutions for higher competitiveness
Key performance
results (KPR)
Key performance
indicators (KPI)
Failure
costs
Production
output
Production
costs
Maintenance
costs
Logistics
costs
0-mileage
complaints
Cycle time
Direct
labour costs
Spare part
costs
Inventory
Scrap
OEE
Indirect
labour costs
Maintenance
labour costs
Logistics
labour costs
Rework
Planned
downtime
Investments
Solutions
Sensorbased
Transport
Monitoring
Process
Quality
Manager
Performance Tracking
Primary
Secondary
Active
Cockpit
Cycle
Time
Manager
Smart
Adaptive
Testing
Process
Quality
Manager
Smart
Adaptive
Testing
Performance Tracking
Maintenance
Management
Predictive
Maintenance
Process
Maintenance Ticket
Quality
Management
Manager
Energy
Manageme
nt
Active
Cockpit
Predictive Maintenance
Maintenance
Ticket
Management
Remote Service Manager
Bosch Software Innovations
14
Maintenance
Management
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Dynamic
Transport
Control
Sensorbased
Transport
Monitoring
The Internet of Things
Bosch’s dual strategy towards Industry 4.0
Leading user
More than 50 pilot
projects in Industry 4.0
Sensor-based Transport Monitoring
Components
& subsystems
Equipment &
machinery
Software
solutions
Sensor
technology
Machine health monitoring
Industry
4.0 plant
concept
Leading supplier
Bosch Software Innovations
15
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Adaptive production
The Internet of Things
Industry 4.0 example: RFID creates transparency
Use case
 Logistic based on a consequent application
of RFID throughout the entire value stream
I 4.0 aspects
 Distinct identification of products including
their “Internet of things” participation
 Create product memory for e.g. quality data
 Decentralized self control (e.g. automatic
Kanban-Principles; Link to MES)
 Automatic order processing throughout the
entire value stream (closed loop from
supplier up to customer)
Exemplary results
 Simplified management of variants
(Poka-Yoke „inherent to the system“ )
 Improvement in process efficiency
+10%
 Transparency in Real time;
thereby reduction of stocks
-30%
Bosch Software Innovations
16
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Homburg Plant 2: I4.0 assembly line for hydraulic valves
 Unique product
identification by RFID,
coupling with work plan,
product informs flexible line
about process steps
 Replaceable autonomous
stations, update of virtual
image by work plan
configuration
Hydraulic valves
100.000 p/a
2.200 parts
Key data
Pilot Line
3-10
~ 25
per line
+ new types
6
1
Set-up [min]
5-30
~0
Stock [days]
2
<1
Product variants
Assembly lines
active Cockpit
Actual
 Automatic ergonomic
adjustment of stations/
machines to operator
 Line and product status,
stock data in MES/ERP;
real-time reporting and
actions by active Cockpit
Adaptive assembly line to manage high product variance
Bosch Software Innovations
17
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
The Three Layers of the IoT

A software platform converts information provided by smart things
into services.
Services &
applications
Software
platform
Smart
things
Bosch Software Innovations
18
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Bosch Software Innovations and ProSyst
Berlin
Chicago
Stuttgart
Cologne
Sofia
Shanghai
Immenstaad
Palo Alto
Singapore
 Software & systems services for the
Internet of Things
 Broad experience from embedded
electronics to complex IT systems
 730 associates worldwide, strongly
growing
19
Connected Connected
Industry
Mobility
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
Connected
Connected
Home &
Energy
Building
The Internet of Things
Connected world: nobody can do it alone
Customer
Service
Users &
Operators
Suppliers
System
integrators
 “Eco-Systems” of business partners
20
Research &
Science
 Strong involvement of users
INST/P R. Kallenbach | 12.05.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things
Our Partners (examples)
Bosch Software Innovations
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Internal | Rainer Kallenbach, Stefan Ferber | 6.2.2015 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal,
exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.
The Internet of Things: Connected products –
connected manufacturing
Dr. Rainer Kallenbach, CEO, Bosch Software Innovations GmbH
22
INST/P R. Kallenbach | 12.05.2015
24.02.2015 | © Robert Bosch GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction,
editing, distribution, as well as in the event of applications for industrial property rights.