SIRI Assessor Training Course PDF

SIRI Assessor Training Course SIRI Assessor Training Course Learners’ Guide: Module 2 - Smart Industry Readiness Index TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 1 SIRI Assessor Training Course Limit of Liability / Disclaimer of Warranty: Author and publisher have used their best effort...

SIRI Assessor Training Course SIRI Assessor Training Course Learners’ Guide: Module 2 - Smart Industry Readiness Index TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 1 SIRI Assessor Training Course Limit of Liability / Disclaimer of Warranty: Author and publisher have used their best efforts in preparing this book. TÜV SÜD Asia Pacific Pte Ltd makes no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for a particular purpose. There are no warranties that extend beyond the descriptions contained within this paragraph. No warranty may be created or extended by any sales representative or sales materials. The accuracy and completeness of the information contained herein and the opinions stated herein are not guaranteed or warranted to produce any particular results and the advice and strategies contained herein may not be suitable for every individual. TÜV SÜD Asia Pacific Pte Ltd shall not be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. All rights reserved. Published By: TÜV SÜD Digital Service TÜV SÜD Asia Pacific Pte Ltd 1 Science Park Drive Singapore 118221 All rights® reserved. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without prior written permission. Version Effective date Changes Authors 1.0 28 April 2020 New TÜV SÜD TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 2 SIRI Assessor Training Course Table of Contents 02 Module Overview 6 1. Introduction to SIRI 7 2. LEAD Framework 10 2.1 Learn 11 2.2 Evaluate 12 2.3 Architect 12 2.4 Deliver 13 3. The SIRI Framework 14 3.1 The 16 Dimensions of the SIRI Framework 26 4. Assessment Matrix 32 DIMENSION 1: Process – Operations – Vertical Integration 32 DIMENSION 2: Process – Supply Chain – Horizontal Integration 34 DIMENSION 3: Process – Product Lifecycle – Integrated Product Lifecycle 36 DIMENSION 4: Technology – Automation – Shop Floor Automation 39 DIMENSION 5: Technology – Automation – Enterprise Automation 41 DIMENSION 6: Technology – Automation – Facility Automation 44 DIMENSION 7: Technology – Connectivity – Shop Floor Connectivity 46 DIMENSION 8: Technology – Connectivity – Enterprise Connectivity 48 DIMENSION 9: Technology – Connectivity – Facility Connectivity 50 DIMENSION 10: Technology – Intelligence – Shop Floor Intelligence 53 DIMENSION 11: Technology – Intelligence – Enterprise Intelligence 55 DIMENSION 12: Technology – Intelligence – Facility Intelligence 57 DIMENSION 13: Organization – Talent Readiness 60 – Workforce Learning & Development DIMENSION 14: Organization – Talent Readiness 62 –Leadership Competency DIMENSION 15: Organization – Structure & Management 64 – Inter – and Intra – Company Collaboration ​DIMENSION 16: Strategy and Governance 67 TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 3 SIRI Assessor Training Course Table of Contents 02 5. TIER Framework 69 6. Prioritization Matrix 73 6.1 Introduction 73 6.2 Cost Factor 74 6.3 Key Performance Indicator Factor 75 6.3.1 Productivity 76 6.3.2 Quality 78 6.3.3 Flexibility 79 6.3.4 Speed 80 6.4 Understanding the Degree of Relevance Tables 81 6.5 Proximity Factor 82 6.6 Planning Horizon 83 6.6.1 Strategic 83 6.6.2 Tactical 84 6.6.3 Operational 84 6.7 Bringing It All Together: An Illustrative Case Study 84 6.7.1 About the Company 85 6.7.2 Results 85 6.7.3 Company A’s Inputs for the Prioritization Matrix 86 6.7.4 Calculation Methodology: A Step-by-step Manual 87 7. SIRI Insights 90 7.1 Overview 90 7.2 The Manufacturing Insights 91 7.3 SIRI Maturity and SIR 92 7.4 Archetypes of Transformation 93 7.5 3B Maturity Benchmark 96 7.6 Insights from the Process Building Block 98 7.7 Insights from the Technology Building Block 99 7.8 Insights from the Organization Building Block 100 7.9 Industry Performance Cards 102 TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 4 SIRI Assessor Training Course Table of Contents 02 8. Conclusion 103 9. Appendix 104 References 112 TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 5 SIRI Assessor Training Course Module Overview COMMENTS Welcome to the second module of the SIRI Assessor Training Course. This module introduces the Smart Industry Readiness Index (SIRI). It explains the various frameworks and tools under SIRI and shares the insights from the completed SIRI Assessments. Upon completion of this module, you should be able to: Explain the rationale behind the development of SIRI Describe the Industry 4.0 transformation journey using the LEAD framework Understand and describe the 3 layers of the SIRI Framework: 3 building blocks 8 pillars 16 dimensions Explain in depth the Assessment Matrix, which serves as a diagnostic tool that consists of 6 bands under each of the 16 SIRI Dimensions Describe the four key principles of prioritization, collectively known as the TIER framework — Today’s State, Impact to Bottom Line, Essential Business Objectives and References to the Broader Community Explain the rationale for the development of the Prioritization Matrix Describe and explain the Prioritization Matrix formula. This includes explaining each of the three factors and the four inputs, such as the Cost Profile, the Key Performance Indicator Categories and the Industry Best-in-Class Benchmark Understand the calculation methodology of the Prioritization Matrix Understand the SIRI insights from the 200 completed SIRI Assessments to illuminate the current state of manufacturing transformation This unit is delivered through classroom/online training with case studies and group discussions. In this learner’s guide, you will find the materials and resources you will need to complete this unit successfully. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 6 SIRI Assessor Training Course 1. Introduction to SIRI COMMENTS Industry 4.0 is gaining momentum globally. Based on a 2017 study conducted in partnership with Accenture, 70% of manufacturers in Singapore will deploy Industry 4.0 solutions by 2020. However, the pace of Industry 4.0 adoption is uneven across different industries and companies. Companies both globally and locally are grappling with the concept of Industry 4.0 and the value it could bring. For these companies, questions such as What is Industry 4.0, and how can it benefit my company? Where should I start? What are my gaps today and where are the opportunities tomorrow? remain unanswered. In McKinsey’s 2017 digital manufacturing global expert survey, companies pointed out that the lack of a clear vision, strategy, and a systematic roadmap were the biggest challenges hindering Industry 4.0 adoption. The Smart Industry Readiness Index (SIRI) was therefore developed to address these challenges. SIRI strikes a balance between technical rigor and practical applicability; it defines the end states and the intermediate steps needed for continual improvement. SIRI aims to equip companies with practical knowledge about: What Industry 4.0 is and the tangible benefits it could yield; The maturity levels of their organizations and facilities; and How they can improve in a targeted and incremental manner. Created by the Singapore Economic Development Board (“EDB”), in partnership with a network of leading technology companies, consultancy firms, and industry and academic experts, the Smart Industry Readiness Index (“SIRI”) comprises a suite of frameworks and tools to help manufacturers – regardless of their size and industry – start, scale, and sustain their manufacturing transformation journeys. The SIRI covers the three core elements of Industry 4.0: Process, Technology, and Organization as illustrated in Table 2.1. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 7 SIRI Assessor Training Course Smart Industry Readiness Index 3 Building Blocks Process Technology Organization 8 Pillars Product Talent Structure & Operations Supply Chain Automation Connectivity Intelligence Lifecycle Readiness Management 16 Dimensions Shop foor Inter- and Intra- Workforce Learning Company & Development Collaboration Integrated Vertical Horizontal Product Enterprise Integration Integration Lifecycle Leadership Strategy & Facility Competency Governance Table 2.1 Smart Industry Readiness Index Development Process of the SIRI Framework & Assessment Matrix Screen Draft Validate Pilot Launch Research and Index Framework Key Expert Index Pilot Index Evaluation Design Validation with Industry Publication & Development Literature review Design & development Validate index Pilot the index with Release of index and landscape of a practical yet with industry Singapore-based through a scan of existing technically rigorous and academic SMEs & MNCs whitepaper for Industry 4.0 concepts framework experts and industry to learn and frameworks key associations and apply Figure 2.1 Development Process of the Index TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 8 SIRI Assessor Training Course The development process commenced with a literature review of a wide range of Industry 4.0 related concepts and frameworks. These included COMMENTS industry reports, landscape studies, business surveys, and models produced by leading associations and industry players. At its core, SIRI draws on the Reference Architectural Model for Industry 4.0 (“RAMI 4.0”) developed by Plattform Industrie 4.0. Beyond RAMI 4.0, other reference materials included (but were not limited to) the Industrie 4.0 Maturity Index developed by the German Academy of Science and Engineering (acatech) and the Bersin model for human capital development by Deloitte. To ensure the technical robustness and usability of the SIRI Framework and Assessment Matrix, an advisory panel of experts from industry and academia was also consulted. The panel’s input was then used to further improve SIRI. Thereafter, the Assessment Matrix was piloted with a group of Singapore- based industrial companies. Participating companies ranged from small and medium-sized enterprises (SMEs) to multi-national corporations (MNCs), including both discrete and process manufacturing facilities. Each pilot was conducted through a workshop involving the company’s senior management and engineering and operations teams, alongside the core SIRI development team. The insights, suggestions, and feedback gained from each pilot were then taken into account when refining the SIRI Framework and Assessment Matrix. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 9 SIRI Assessor Training Course 2. LEAD Framework COMMENTS Transforming and upgrading a manufacturing facility is not a one-off exercise. Rather, it is a continuous and iterative process for companies. This experience can be encapsulated by the LEAD framework, a circular, continuous 4-step process that all manufacturers can adopt in their approach towards Industry 4.0 Transformation. Learning is the first step for companies to be familiar with the key concepts of Industry 4.0, followed by the evaluation of their current status, gaps and future needs towards Industry 4.0. Then, the company needs to architect or design its strategy and transformation roadmap before delivering the outcomes. THE LEAD FRAMEWORK Figure 2.2 LEAD Framework TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 10 SIRI Assessor Training Course 2.1 Learn COMMENTS Key concepts and build a common language for alignment A thorough understanding of key Industry 4.0 concepts will provide companies with a firm foundation for transformation. However, according to McKinsey’s 2016 and 2017 Industry 4.0 Global Expert Surveys, there is a high level of uncertainty among manufacturers about what is required for an effective transformation. Therefore, many are still struggling to begin their transformations and less than 50% of survey participants considered their companies to be well- prepared. They highlighted their lack of familiarity with key concepts and the absence of a clear strategy and roadmap as the biggest challenges faced. Even once companies have started their transformation journeys, knowledge generally remains confined to the corporate management level or to a few in-house experts. SIRI aims to help companies strengthen their institutional knowledge about Industry 4.0 in two ways. First, by examining the 3 building blocks, 8 pillars, and 16 dimensions, SIRI seeks to better inform and educate companies about the core concepts and fundamental principles of Industry 4.0. This ensures that companies will be equipped with the following knowledge: An understanding of the key principles, concepts and technologies under Industry 4.0 An overview of the tangible benefits and business value that Industry 4.0 can yield A guide to illustrate how companies can achieve their ideal end states in a practical, step-wise fashion Second, SIRI aims to establish a common language among the various stakeholders which is necessary for the transformation. The new technical terms and jargon arising from Industry 4.0 can be confusing and thus counterproductive for companies. By providing companies with an intuitive and standardized set of terms and definitions, SIRI can establish a common understanding among companies and the workforce. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 11 SIRI Assessor Training Course This can facilitate more effective communication within the organization and with external stakeholders. A common language also allows technology COMMENTS providers to have more effective and productive conversations with manufacturers. This helps them to identify gaps, establish priorities, and structure comprehensive transformation roadmaps. 2.2 Evaluate The current state of facilities and the company’s level of preparedness Learning the key concepts is an essential first step. However, that alone will not help companies to devise effective transformation strategies. Companies must understand where they currently are before they can identify what and how to improve. Thus, to help companies conduct comprehensive assessments of their facilities, SIRI includes an Assessment Matrix that incorporates all 16 dimensions. 2.3 Architect A comprehensive transformation strategy and implementation roadmap With a growing number of companies looking to initiate or scale up their transformation initiatives, SIRI serves as a timely guide to help design a comprehensive strategy and roadmap for an Industry 4.0 transformation. In this third step, companies can use SIRI in two tangible ways. First, SIRI serves as a checklist so that companies can ensure that all the building blocks, pillars, and dimensions are formally considered. While the relative importance of each dimension may vary, companies must consider all the dimensions to ensure that all of the aspects are covered. Even if they ultimately decide to deprioritize specific dimensions and focus on others, these decisions must be made after careful consideration. Many companies often fail to include improvements in complementary or adjacent domains that might yield additional benefits. This occurs due to two main reasons. Firstly, many companies tend to focus only on the domain directly related to the issue at hand. For instance, if a company employs too many low-skilled workers engaging in repetitive tasks, the organization will tend to focus on increasing shop floor automation. Secondly, teams and companies tend to focus more on areas that they are already familiar with. For example, a warehouse management team will naturally tend to focus on supply chain initiatives. Thus, SIRI serves as a checklist to provide companies with a systematic way to broaden the scope of their transformation initiatives. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 12 SIRI Assessor Training Course SIRI also doubles as a step-by-step improvement guide which breaks down and lays out the intermediate steps of the long-term transformation journey. COMMENTS This deliberate effort to plot out the intermediate phases was created because, although there are many frameworks articulating the ideal Industry 4.0 end-state, only a few of them provide practical guidance on how to get there. Without proper guidance, many companies would struggle to develop a way to bridge the gap between their current “as-is” state and their “to-be” vision. This issue is often amplified for brownfield facilities, where limitations and considerations such as operational continuity, fragmented systems, and legacy infrastructure often dictate and limit the scale and feasibility of transformation initiatives. By providing clear definitions and descriptions for all bands across the 16 dimensions, SIRI aims to address this challenge. It will enable companies to systematically identify high-impact initiatives and structure effective implementation plans with clearly-defined phases. 2.4 Deliver Impact and sustain transformation initiatives As with all transformation initiatives, a well-designed strategy is only as good as its execution. Once a company has come up with its transformation roadmap, the next step is to put the right infrastructure, systems and processes in place. Companies will need to determine the optimal approach to achieve their outcomes across the various phases and initiatives. To ensure sustained impact, SIRI serves as a blueprint for companies to measure and refine their initiatives over a multi-year period. Rather than being short-lived, transformation should be a long-term endeavour. Even as companies kick-start their transformation through quick wins, the right systems should be put in place to sustain these wins. Transformation strategies must also adapt and evolve continually. Companies should therefore consider establishing central, cross-functional teams to execute initiatives, monitor progress, assess impact, and identify future opportunities for improvement. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 13 SIRI Assessor Training Course 3. The SIRI Framework COMMENTS The SIRI framework consists of 3 building blocks, 8 pillars and 16 dimensions, which are briefly described in Figure 2.3. Supply Chain Pro du ns ct tio Li fe ra e cy Op Process cl e Struc Smart Automation ture & Managem Industry olo gy Organ Readiness Index hn iza ent io ec T t n ity tiv ec nn Co Ta le nt Re ad ce ine ss elligen Int Figure 2.3 SIRI Framework The SIRI Framework identifies the 3 fundamental building blocks – Technology, Process and Organization – that must be considered for any facility to transform into a facility-of-the-future. All 3 building blocks must be considered in order to harness the full potential of Industry 4.0. Underpinning the 3 building blocks are 8 key pillars, which represent critical areas that companies must focus on to become future-ready Industry 4.0 organizations. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 14 SIRI Assessor Training Course SM ART I N DUSTRY RE ADINE SS INDE X SM ART IND US T RY R EA DIN ESS IND E X COMMENTS Process Technology Organization Figure 2.4 Three Building Blocks of SIRI Process Building Block and its Pillars Process Building Block 3 Pillars Operations Supply Chain Product Lifestyle Dimensions Vertical Integration Horizontal Integration Integration Product lifecycle Table 2.2 Process Building Block of SIRI Framework To maximize value, technology must always be applied in tandem with effective and well-designed processes. After all, using technology to digitize a poorly designed process will only result in a poorly designed digital process. Conversely, applying technology to a well-developed process will enhance its efficiency and enable the creation of new value. From the beginnings of modern manufacturing, companies have used process improvements to lower costs and shorten their time-to-market. Previously, companies centered their efforts on improving the efficiency of individual processes. However, under Industry 4.0, the concept of process improvements has expanded to focus on the integration of processes within a firm’s operations, supply chain and product lifecycle - as is shown in Figure 2.5 and 2.6. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 15 SIRI Assessor Training Course This stems from the new ethos of connecting intelligent facilities with every part of the production value chain. As various processes become COMMENTS integrated, they will ultimately converge into a single unified system where data is shared, processed and integrated across the organization’s product management, production and enterprise layers. This can help generate the next leap forward in flexibility and efficiency. This pillar covers the transformation of the fundamental processes, including planning, acquisition, production and sale and distribution. Once the transformation to Industry 4.0 begins, each process of the company should be mapped to the digital world. Furthermore, different value-added processes should be integrated across the enterprise architecture in a standardized manner. PROCE SS PI LL ARS PROCESS PILLARS Operations Supply Chain Product Lifecycle Figure 2.5 The three pillars of Process Building Block The Operation Pillar The first pillar encompasses the planning and execution of processes which lead to the production of goods and services. The end goal is to convert raw materials and labour into goods and services at the lowest cost. While this objective does not change in the context of Industry 4.0, companies can now access new technologies and approaches to achieve this goal quicker and with better results. For instance, companies can use data analytics to reduce waste by identifying and improving inefficient processes. They can also use wireless communications to connect discrete processes and systems in order to enable the remote monitoring and decentralized control of assets. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 16 SIRI Assessor Training Course Key benefits/outcomes: COMMENTS Higher traceability of production data Enabling flexibility through real-time optimization for changing needs Improving personalization Being able to respond appropriately and with agility to changing market signals and new opportunities The Supply Chain Pillar The second pillar primarily manages the planning and management of raw materials and inventory of a company’s goods and services from the point of origin to the point of consumption. Under Industry 4.0, traditional supply chain models can become increasingly digitized; processes across the supply chain can be connected through a sensor network and managed through a central data hub and analytics engine. The digitalization of supply chains can also allow decisions about cost, inventory and operations to be made from an end-to-end perspective rather than in isolation. This evolution benefits all players across the value chain in the following ways: with greater speed due to reduced lead times, greater flexibility through real-time optimization for changing needs, greater personalization, greater efficiency and greater transparency, both within and outside the organization. This pillar promotes: The potential of implementing an integrated supply chain man- agement system Continuously mapped Agile collaborative network that physical flows describes the shift in horizontal integration towards flexibly defined extended enterprise Supply Chain Pillar Connected supply chain operation Impact of big data and technology that network and recreate supply enablers to transform the flows on a virtual level integrated supply chain platform Business impact to refocus on core competencies Figure 2.6 Supply Chain Pillar TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 17 SIRI Assessor Training Course One of the biggest challenges of an Industry 4.0 transformation journey is the development of an integrated supply chain. This is crucial in leveraging on COMMENTS Industry 4.0 technologies that have the potential to bring tangible benefits to the organization. Achieving full digital collaboration and then using it effectively throughout the supply chain requires organizations to develop processes, capabilities and systems to support them. Culturally, they must develop the responsibility and trust to openly share accurate information in a timely manner. For many organizations, this requires a maturity far beyond that exhibited in traditional supplier and customer relationships. For instance, intelligent supply chain management can be achieved using sensors (RFID tags), optimization of inventory monitoring and process automation. The supply chain pillar will cover the highly-integrated and automated supply chain operations that are empowered by cyber-physical systems. Key benefits/outcomes: Higher speed due to reduced lead times Enabling flexibility through real-time optimization for changing needs Improving personalization Increasing efficiency Greater transparency, both internally and externally The Product Lifecycle Pillar The third pillar describes a sequence of stages that a product goes through – from its initial conceptualization to its eventual removal from the market. These stages range from design, engineering and manufacturing to customer use, service and disposal. A robust product lifecycle management framework has always been integral to manufacturing operations. However, shorter product cycles and a growing demand for personalization have accentuated the need for greater integration and digitalization across the various stages. Advancements in digital tools have made it much easier to bring together data, processes, business systems and people to create a unified information backbone that can be managed digitally. Industry 4.0 also introduces the concept of a “digital twin”; a virtual representation of the physical assets, processes and systems involved throughout a product lifecycle. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 18 SIRI Assessor Training Course Key benefits/outcomes: COMMENTS The information generated at each stage can be shared seamlessly, facilitating better decision-making and enabling processes to be dynamically optimized in other stages. This allows companies to shorten their design and engineering cycles and respond to customer demands more quickly. A digital twin removes the limitations of working with physical prototypes. By working off the digital twin, multiple prototypes can be created and tested virtually at speed, at scale, and at a much lower cost. Technology Building Block and its Pillars Technology Building Block Pillars Automation Connectivity Intelligence Dimensions Shop Floor Enterprise Facility Table 2.3 Technology Building Block Technological advancement has been the cornerstone of the last three major industrial revolutions. The discovery of steam power brought about the first industrial revolution, while innovations in electric power catalyzed the second. In a similar manner, Industry 3.0 was powered by the advent of electronics and Information Technology (IT) systems. Today, technology systems have allowed companies to achieve an unrivalled degree of precision and efficiency through automation. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 19 SIRI Assessor Training Course New digital technologies work together to create a hyper-connected industrial landscape where physical assets and equipment are integrated with COMMENTS enterprise systems to enable a constant and dynamic exchange and analysis of data. Therefore, cyber-physical systems make companies more agile and nimble. For companies to realize their Industry 4.0 ambitions, a high degree of automation, ubiquitous connectivity and intelligent systems are necessary. To reflect this, the Technology building block has been segmented into the following 3 pillars: Automation, Connectivity and Intelligence. TE CH N OLOGY PI L L ARS TECHNOLOGY PILLARS Automation Connectivity Intelligence Figure 2.7 The Three Pillars of the Technology Building Block The Automation Pillar Automation — the application of technology to monitor, control, and execute the production and delivery of products and services — was the hallmark of Industry 3.0. It not only freed workers from mundane and repetitive tasks, but also enhanced the speed, quality and consistency of execution. While automation continues to be a key enabler for companies, its role is changing. To cope with the rising demand for smaller batches and on- demand production, it is no longer sufficient to simply maximize efficiency. To adapt quickly to changing market needs, automation needs to be flexible instead of fixed. As automation systems become increasingly flexible, manufacturers can generate a larger range of products in smaller batches without significant investments in capital, time or re-designing of processes. This puts manufacturers in a more competitive position, thereby helping them to pursue a large variety of global business opportunities and adapt to rapidly changing customer needs. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 20 SIRI Assessor Training Course Key benefits/outcomes: COMMENTS Mass customization: Production lines are capable of producing very low or even unitary batches to meet the needs of each customer, thus improving competitiveness. Greater flexibility: Enabling flexible manufacturing systems to quickly respond to changes in demands, specifically through a rapidly networking flexibly configurable lines of machines. If required, a new machine can be inserted into the production line. Plug and produce system: Machines can connect to the network without the need for reprogramming, thus allowing them to transfer data rapidly. Quality control: End-to-end visibility will help to optimize processes, inventories and resources, thereby reducing overall costs. New opportunities that are created with the emergence of innovative business models and services can contribute to new forms of value chain interaction (e.g. digital platforms). Optimized decision-making: The usage of smart products and devices enables the tracking of production in real-time, thereby allowing manufacturers to optimize their decision-making processes. Improved human-machine interfaces: Co-existence with robots and adopting new ways of interacting/operating in the factory enables workers to have a more flexible and diversified career, thereby making them relevant and productive for a longer period of time. The Connectivity Pillar The interconnectedness between equipment, machines and computer-based systems enables communication and data exchange across assets. Devices and systems are increasingly being converted from wired and analogue formats to wireless and digital ones. Such IoT-enabled devices are also increasing in both quality and quantity, which generate enormous amounts of data. Technological advancements in cloud computing and wireless infrastructure also enables central collection and management of data. Likewise, systems that were once independent or isolated can now be integrated, unifying the various shop floor, facility, and enterprise systems through connected organization-wide networks. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 21 SIRI Assessor Training Course Interoperability — the ability to access data with ease across assets and systems — is key to achieving this. Companies need to standardize or COMMENTS make use of complementary communication technologies and protocols to establish more open, inclusive, and transparent communications networks. Such deeply interconnected systems also make cyber-physical security an integral aspect of Connectivity. Hyperconnected manufacturing operations can increase the number of vulnerable points in a system, which could give cyber-attacks a far more extensive impact than before. To mitigate this risk, secure and resilient cyber-physical security architectures will need to be established. Key benefits/outcomes: Improve yield Standard, interoperable and secured ecosystem Fast closed loop that improves operations Improve real-time performance Improve Overall Equipment Effectiveness (OEE) of legacy systems The Intelligence Pillar While Automation provides the muscle for Industry 4.0 and Connectivity acts as its central nervous system, Intelligence is the brain powering this new age. Automation and Connectivity focus on establishing linkages between equipment, machines, and computer-based systems for the collection and integration of data. Intelligence, conversely, is about the processing and analysis of that data. This is important as modern manufacturing is no longer just about finding ways to operate faster while reducing expenses; it is also about doing so in a data-driven and intelligent way. The benefits to be derived from the Intelligence pillar are significant and far-reaching. With technologies such as cloud and data analytics, the vast quantities of data generated can be processed and translated into actionable insights to diagnose problems and identify opportunities for improvement. With machine learning, highly intelligent systems can assist the workforce in predicting equipment failures and changes in demand patterns. At their best, these intelligent systems can also autonomously make decisions and respond to changing internal and external business needs. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 22 SIRI Assessor Training Course Responsiveness Predictability level and adaptability Intelligence Pillar Ability to Use of machine cooperate intelligence in self-reliance and responsiveness of the shop floor equipment Human machine sym- biosis Figure 2.8 Assessment Structure for the Intelligence Pillar COMMENTS Organization Building Block and its Pillars The Organization plays an equally important role alongside Technology and Processes building blocks. To remain relevant in the face of increasing competition under Industry 4.0, companies must adapt their organizational structures and processes to allow their workforce to keep up with the pace. Industry 4.0 calls for a greater focus on two key components that can affect an organization’s effectiveness. First, the people who make up the organization - the entire workforce from the top management down to the operational teams. Second, the institutional systems that govern how the company functions. Both components must be considered to fully reap the benefits of Industry 4.0. For instance, even the most competent leadership team and workforce can be demotivated by rigid structures, inconsistent practices and siloed processes. Likewise, open channels for collaboration and innovation cannot be effective unless employees are aware of the potential benefits these may bring. As such, necessary enhancements must be made to people (Talent Readiness) and the company (Structure & Management), before the effective implementation of Industry 4.0 strategies. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 23 SIRI Assessor Training Course Organization COMMENTS Pillars Structure and Talent Readiness Management Dimensions Workforce Learning Inter-and-Intra Company and development Collaboration Leadership Competency Strategy and Governance Table 2.4 Organization Building Block The Talent Readiness Pillar For any transformation to deliver value, Talent Readiness — the ability of the workforce to drive and deliver Industry 4.0 initiatives — is a key factor for success. As organizations embrace flatter structures and decentralized decision- making, it becomes critical to build a competent and flexible workforce characterized by continuous learning and development at all levels. Management should implement systems or practices that will allow people to constantly stay abreast of the latest developments in Industry 4.0. This will allow them to capture new opportunities to drive improvement. Concurrently, the wider workforce needs to be multi-skilled and adaptable to manage Industry 4.0’s dynamic and digitalized operations. This is enabled by formal talent development programmes that are not only aligned with the company’s business and human resource objectives, but also foster a culture of self-learning and personal development. If successful, this will create a skilled and self-learning workforce; one that can maximize the value of any transformation initiative. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 24 SIRI Assessor Training Course Key benefits/outcomes: COMMENTS Strategic Outcomes Upskilling talents so that they can ad- Increase industry - dress skillset gaps academia and embark on a digi- collaboration tal journey Enhance capabilities of the existing workforce so that they can handle disruptive technologies Figure 2.9 Strategic Outcomes of the Talent Readiness Pillar The Structure & Management Pillar An organization’s structure refers to its system of explicit and implicit rules and policies that outline how roles and responsibilities are assigned, controlled and coordinated. Structure influences how teams act and interact and how various initiatives can be implemented to achieve organizational goals. Meanwhile, Management is fundamentally about getting people to work together towards a well-defined common goal. Given the paradigm shifts on multiple fronts, Industry 4.0 is also a change management exercise. Strong leadership, supported by a clear strategy and governance framework, is hence essential for any organization to successfully navigate this increasingly complex and highly networked world. Robust Structure & Management will make an organization more flexible, collaborative and empowered to design and implement Industry 4.0 strategies effectively. Key benefits/outcomes: Robust Structure & Management will make an organization more flexible, collaborative and empowered to design and implement Industry 4.0 strategies effectively. A clear strategy and governance framework is hence essential for any organization to successfully navigate this increasingly complex and highly networked world. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 25 SIRI Assessor Training Course 3.1 The 16 Dimensions of the SIRI COMMENTS Framework These 16 dimensions represent assessment areas that companies can use to evaluate the current readiness of their facilities. A brief description of each of the 16 dimensions is provided in this section. Smart Industry Readiness Index Process Technology Organization Product Talent Structure & Operations Supply Chain Automation Connectivity Intelligence Lifecycle Readiness Management 1 2 3 4 7 10 13 15 Shopfloor Workforce Learning Inter- and Intra- & Company 5 8 11 Development Collaboration Integrated Vertical Horizontal Product Enterprise Integration Integration 14 16 Lifecycle 6 9 12 Leadership Strategy & Competency Governance Facility Table 2.5 16 SIRI Dimensions Source: Economic Development Board COMMENTS Dimension 1: Process — Vertical Integration Vertical Integration is one of the three key characteristics defined under Industry 4.0. It can be understood as the integration of processes and systems across all hierarchical levels of the automation pyramid within a facility to establish a connected, end-to-end data thread. This dimension seeks to assess the extent of formal connections and linkages between and across processes and systems, and it also takes into account how data is exchanged and analyzed. In its ideal form, the Vertical Integration dimension defines a state where all OT and IT systems across the production and enterprise levels are integrated into automated, interoperable, and flexible networks that will permit seamless data exchange, analysis and decision-making. This will in turn allow better communication, flexibility, and operational efficiency, and will also enable faster and more concerted responses to any changes in resource availability, operational demands or product types. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 26 SIRI Assessor Training Course Dimension 2: Process — Horizontal Integration COMMENTS Horizontal Integration, the second key characteristic of Industry 4.0, refers to the integration of enterprise processes across the organization and with other stakeholders along the value chain. Enterprise processes include demand planning, procurement, logistics, and after-market services, while stakeholders include suppliers, business partners and customers. It evaluates the presence of formal channels that enable information sharing as well as how data is exchanged and analyzed. As processes and systems become ever more defined and digital. The Horizontal Integration dimension describes an end state where a company’s internal processes converge with those of its suppliers and partners. This creates an interoperable and transparent network, within which all stakeholders are able to coordinate and optimize their processes, tasks and decisions across the entire value chain. Besides enabling higher productivity and shorter lead times, such an integrated value chain can also facilitate the creation of new businesses and operating models. Dimension 3: Process — Integrated Product Lifecycle Integrated Product Lifecycle integrates people, processes, and systems along the entire product lifecycle, and it also examines how data is collected, managed, and analyzed across the different stages of the product lifecycle. These stages include design and development, engineering, production, customer use, service and disposal. To build an Integrated Product Lifecycle, companies will need to use digital tools and systems to create a product information backbone that can be accessed by employees and their extended enterprise networks. For instance, at the most advanced stage, companies may create “digital twins” of processes and assets; by removing physical constraints through these digital twins, companies can shorten development cycles, improve existing systems, and launch new processes and products in a swift and scalable manner. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 27 SIRI Assessor Training Course NOTE COMMENTS For Dimensions 4-12, under the Technology building block, the SIRI Framework segments the areas of assessment into three layers: the Shop Floor, where the production and management of goods is carried out; the Enterprise, where administrative tasks are carried out; and the Facility, which is the physical building or premises where production takes place. Dimension 4–6: Automation — Shop Floor, Enterprise and Facility Across the Shop Floor, Enterprise, and Facility layers, the Automation dimensions evaluate the degree and flexibility of automation, as well as the extent of its integration across multiple systems. The lower bands assess the overall automation levels of both production and support processes. Flexibility is then introduced in a higher band, as flexible automation will allow processes to be reconfigured and machines to be re-tasked. This allows companies to manufacture a greater variety of products with shorter turnaround times. At its most advanced stage, automation systems across all three layers will converge and interact dynamically with one another as a single integrated whole system. Dimension 7–9: Connectivity — Shop Floor, Enterprise and Facility The Connectivity dimensions evaluate the level of interconnectedness between the equipment, machines, and systems that reside within the Shop Floor, Enterprise, and Facility layers. Once formal connections have been established across assets and systems, the higher bands measure the interoperability, security, speed, and agility of the network as a whole. These qualities allow interconnected systems to communicate with one another seamlessly and allow them to be reconfigured dynamically in response to changing needs. Dimension 10–12: Intelligence — Shop Floor, Enterprise and Facility The Intelligence dimensions evaluate the ability of IT and OT systems at the Shop Floor, Enterprise and Facility layers to identify and diagnose any deviations and adapt to changing needs. At the lower bands, essential intelligence is derived by processing large quantities of data and detecting TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 28 SIRI Assessor Training Course any deviations from predefined parameters. As more advanced algorithms and models are introduced, computer systems will be able to detect COMMENTS deviations, identify likely causes and even predict potential failures ahead of time. Ultimately, IT and OT systems will autonomously learn and adapt to new needs while making decisions on their own to optimize processes, assets and resources. Dimension 13: Organization — Workforce Learning and Development A workforce learning and development (“L&D”) strategy aims to develop the workforce’s capabilities, skills and competencies to achieve organizational excellence. In the context of Industry 4.0, this is especially critical as new technologies and processes will fundamentally alter the nature of work and the types of skills required. Traditional engineering capabilities will need to be augmented with new digital skills, such as data analytics, systems integration and software development. In the long term, the entire workforce needs to have digital confidence, which may include skills such as data interpretation and automation management. Employees will also need to adapt to new types of interactions between people and machines, where humans operate alongside intelligent machines and systems. As a proxy to workforce readiness, the Workforce Learning and Development dimension measures the quality of a company’s L&D programmes. To start with, L&D programmes should be structured and implemented on an ongoing basis; this will provide employees with opportunities for continuous learning, helping them to acquire new skills and enhance existing ones. This is important as occupational needs and job roles evolve with time. To achieve a high level of workforce readiness, L&D programmes must be aligned with business needs and integrated with other key human resource functions like talent attraction and career development. They must also be dynamically updated based on the feedback and insights provided by employees and business teams and should proactively position the workforce for future skills. Integrated and forward-looking L&D programmes allow companies to build a high-performing and future ready workforce capable of managing and sustaining Industry 4.0 initiatives. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 29 SIRI Assessor Training Course Dimension 14: Organization — Leadership Competency COMMENTS Leadership Competency refers to the readiness of the management core to leverage the latest concepts and technologies for the company’s continued relevance and competitiveness. As transformation is a multi-year journey that will evolve and adapt over time, it must be led from the front by a strong leadership core with commitment, a clear vision and the right capabilities and knowledge. To unlock its full potential, companies may adopt flatter organizational structures and enable decentralized decision making. At the lower bands, this dimension examines the management team’s familiarity with the latest concepts and technologies, and the ways by which such knowledge is acquired. Companies should establish processes and systems for the acquisition of information on the latest trends, concepts, and technologies. As a company progresses, this dimension will then measure the leadership team’s ability to independently design, execute, and adapt transformation strategies to ensure the company’s relevance in the long term. Dimension 15: Organization — Inter- and Intra- Company Collaboration Inter- and Intra- Company Collaboration refers to the process of working together, both internally and with external partners, to achieve a shared vision and purpose. Industry 4.0 has created a connected network of systems and technologies which reduce the cost of collaboration. It has also redefined the basis of competition while increasing the pace of change; in such a highly networked environment, companies must be able to collaborate effectively and adapt swiftly. However, the biggest barriers to collaboration are often not technical. Rather, they are cultural and institutional in nature. As such, the Inter- and Intra- Company Collaboration dimension assesses the formal channels that enable employees to share information and work together, as well as the institutional structures and systems that allow collaborative behaviors and initiatives to flourish. Flatter organizational structures enable faster decision-making, and the alignment of incentives can empower the workforce to collaborate more effectively. At its highest form, cross-functional teams can be dynamically formed across internal departments and even include partners and customers with shared goals, resources, and joint key performance indicators (KPIs). TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 30 SIRI Assessor Training Course The benefits of a high level of collaboration run deep. Through effective and open inter- and intra- collaboration, companies can tap into a wider degree of COMMENTS expertise and resources to address complex, multi-stakeholder challenges. In the long term, this will shift the company from a culture of internal competition to a culture of shared goals, accountability and rewards. Dimension 16: Organization — Strategy and Governance Strategy and Governance relate to the design and execution of a plan of action to achieve a set of long-term goals. It includes identifying priorities, formulating a roadmap and developing a system of rules, practices and processes to translate a vision into real business value. This dimension examines how well an organization has developed and implemented its strategy and a robust governance model. Both factors are critical and must exist in tandem to manage the complexity that comes with the increasing interconnectedness of processes, systems and people. To navigate change and mitigate risk, companies will need to define their vision and end outcomes while establishing consistent guiding principles and supporting structures. This will guide decision-making and help determine the approaches needed to achieve the company’s desired outcomes. The different bands map the natural progression that a company will take, from the identification of Industry 4.0 as a strategic focus to the development, implementation, scaling and continual enhancement of the strategy and governance model. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 31 SIRI Assessor Training Course 4. The Assessment Matrix COMMENTS DIMENSION 1 Process – Operations – Vertical Integration DEFINITION: Vertical integration is the integration of processes and systems across all hierarchical levels of the automation pyramid within a factory/plant to establish a connected, end-to-end data thread. BAND NARRATIVE Band 0 – Undefined Definition: Vertical processes are not explicitly defined. Description: Resource planning and technical production processes are managed and executed in silos, based on informal or ad-hoc methods. FOR EXAMPLE Standard Operating Procedures (SOPs) such as work instructions and production planning are not defined for the resource planning and technical production processes Band 1 – Defined Definition: Vertical processes are defined and executed by humans, with the support of analogue tools. Description: Resource planning and technical production processes are managed and executed in silos, based on a set of formally-defined instructions. FOR EXAMPLE SOPs are defined to manage and execute the resource planning and technical production processes via analogue tools (e.g. paper-based work instructions, lot traveler, etc.) Manufacturing records and quality inspections data are managed through paper-based systems (e.g. logbook) and manually transferred to analogue tools (e.g. excel sheet) Band 2 – Digital Definition: Defined vertical processes are completed by humans with the support of digital tools. Description: Resource planning and technical production processes are managed and executed in silos, by Operational Technology (OT) and Information Technology (IT) systems. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 32 SIRI Assessor Training Course FOR EXAMPLE COMMENTS OT and IT systems (e.g. Manufacturing Execution System (MES), Enterprise Resource Planning (ERP), Warehouse Management System (WMS), Quality Management System (QMS), etc.) are used to manage and execute resource planning and technical production processes Production processes are performed using OT and IT systems (e.g. MES, Distributed Control Systems (DCS), Human-Machine Interface (HMI), Supervisory Control and Data Acquisition (SCADA), etc.) Band 3 - Integrated Definition: Digitized vertical processes and systems are securely integrated across all hierarchical levels of the automation pyramid. Description: OT and IT systems managing resource planning and technical production processes are formally linked. However, the exchange of data and information across different functions is predominantly managed by humans. FOR EXAMPLE Resource planning and technical production processes are connected via standard communication protocol and data transfer is seamlessly executed and managed in the operations environment The OT and IT are systems are integrated into a unified operations system. The management, transfer and execution of data are performed digitally Band 4 – Automated Definition: Integrated vertical processes and systems are automated, with limited human intervention. Description: OT and IT systems managing resource planning and technical production processes are formally linked. This enables the exchange of data across different functions that is predominantly executed by equipment, machinery and computer-based systems. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 33 SIRI Assessor Training Course FOR EXAMPLE COMMENTS Work orders generated from a purchase order are directly managed, verified, planned and transferred to the shop floor for autonomous production Resource planning and technical production processes are managed and executed automatically through OT and IT systems (e.g. Advanced Planning and Scheduling (APS)) Band 5 – Intelligent Definition: Automated vertical processes and systems are actively analyzing and reacting to data. Description: OT and IT systems are integrated from end-to-end, with processes being optimized through insights generated from the analysis of data. FOR EXAMPLE Assets on the shop floor are embedded through the industrial ethernet, and analytical capabilities to autonomously obtain and analyze insights from operational data Big data and advanced analytics are being used to optimize processes (e.g. predictive maintenance) and adapt to anomalies within the production environment DIMENSION 2 Supply Chain – Horizontal Integration DEFINITION: Horizontal integration is the integration of enterprise processes across the organization and with stakeholders along the value chain. BAND NARRATIVE Band 0 – Undefined Definition: Supply chain processes are not explicitly defined. Description: Enterprise processes are managed and executed in silos, based on informal or ad-hoc methods. FOR EXAMPLE SOPs (e, g. policy, procedure, etc.) are not defined for the enterprise processes (e.g. procurement, sourcing, etc.) TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 34 SIRI Assessor Training Course Band 1 – Defined Definition: Supply chain processes are defined and executed by humans, with COMMENTS the support of analogue tools. Description: Enterprise processes are managed and executed in silos, based on a set of formally defined instructions. FOR EXAMPLE Enterprise processes data (e.g. sourcing, purchasing, supply chain management, logistics, etc.) are managed in analogue tools (e.g. paper-based, excel sheets, etc.) Band 2 – Digital Definition: Defined supply chain processes are completed by humans with the support of digital tools. Description: Enterprise processes are managed and executed in silos by IT systems. FOR EXAMPLE IT systems (e.g. ERP, Supply Chain Management (SCM) System, etc.) are used to manage and execute enterprise processes Purchase orders, delivery orders are managed and executed with suppliers via IT systems (e.g. e-Procurement) Band 3 – Integrated Definition: Digitized supply chain processes and systems are securely integrated across business partners and clients along the value chain. Description: IT systems managing enterprise processes are formally linked. However, the exchange of data and information across different functions is predominantly managed by humans. FOR EXAMPLE Enterprise processes within the organization are integrated via the enterprise platform (e.g. supply chain platform) and transfer is seamlessly executed and managed in the supply chain environment Enterprise processes are integrated with external suppliers and customers (i.e. Electronic Data Interchange (EDI)) TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 35 SIRI Assessor Training Course Band 4 – Automated Definition: Integrated supply chain processes and systems are automated, COMMENTS with limited human intervention. Description: IT systems managing enterprise processes are formally linked. The exchange of data and information across different operations are predominantly executed by computer-based systems. FOR EXAMPLE Enterprise processes are connected via standard communication protocol and data transfer is seamlessly executed and managed in the supply chain environment (e.g. Supply Chain Control Network) Robotic Process Automation (RPA) is used to automate the enterprise workflow processes (e.g. Logistic Management, Procurement, etc.) Band 5 – Intelligent Definition: Automated supply chain processes and systems are actively analyzing and reacting to data. Description: IT systems are integrated from end-to-end, with processes being optimized through insights generated from analysis of data. FOR EXAMPLE The enterprise processes are managed autonomously through connecting data within factories and enterprises both on the premises and across external supply chain Big data and advanced analytics are being used to optimize processes (e.g. suppliers performance management dashboard) and adapt to anomalies within the supply chain environment DIMENSION 3 Product Lifecycle – Integrated Product Lifecycle DEFINITION: Integrated Product Lifecycle is the integration of people, processes and systems along the entire product lifecycle. This encompasses the stages of design and development, engineering, production, customer use, service and disposal or recycle. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 36 SIRI Assessor Training Course BAND NARRATIVE COMMENTS Band 0 – Undefined Definition: Product lifecycle processes are not explicitly defined. Description: Processes along the product lifecycle are managed and executed in silos based on informal or ad-hoc methods. FOR EXAMPLE SOPs for processes along the product life cycle (e.g. design data, document control, bill of materials (BOM), etc.) are not defined Processes along the product lifecycle is managed and executed based on individual knowledge and experience Band 1 – Defined Definition: Product lifecycle processes are defined and executed by humans, with the support of analogue tools. Description: Processes along the product lifecycle are managed and executed in silos, based on a set of formally defined instructions. FOR EXAMPLE Design and engineering data are documented in analogue tools (e.g. paper-based, excel sheets, etc.) Communication across the departments is managed through analogue tools (e.g. email, paper, etc.) Band 2 – Digital Definition: Defined product lifecycle processes are completed by humans, with the support of digital tools. Description: Processes along the product lifecycle are managed and executed in silos, by digital tools. FOR EXAMPLE Digital tools (e.g. CAD system, CAM system, etc.) are used to manage and execute processes along the product lifecycle (e.g. R&D, Design, Engineering, Manufacturing, Customer Service, etc.) Customer feedback is collected and managed via digital tools (e.g. Customer Relationship Management (CRM)) TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 37 SIRI Assessor Training Course Band 3 – Integrated Definition: Digitized product lifecycle processes and systems are securely COMMENTS integrated across all stages of the product lifecycle. Description: Digital tools and systems that manage the product lifecycle are formally linked with each other. However, the exchange of information along the product lifecycle is predominantly managed by humans. FOR EXAMPLE Product lifecycle processes are integrated via a product life cycle management platform, data transfer is seamlessly executed and managed in the product design, development and manufacturing environment Processes across the product lifecycle are integrated with the enterprise systems (e.g. ERP) and customer portal (e.g. CRM) Band 4 – Automated Definition: Integrated product lifecycle processes are automated, with limited human intervention. Description: Digital tools and systems that manage the product lifecycle are formally linked with each other, and the exchange of information along the product lifecycle is predominantly executed by computer-based systems. FOR EXAMPLE Product lifecycle management platform automatically manages and executes the changes in product specifications, and govern the workflows with the stakeholders Robotic Process Automation (RPA) is used to automate the processes along the product lifecycle Band 5 – Intelligent Definition: Automated product lifecycle processes are actively analyzing and reacting to data. Description: Digital tools and systems deployed for the management of the product lifecycle are integrated from end-to-end, with processes being optimized through insights generated from analysis of data. FOR EXAMPLE Digital twin and big data solutions are used to analyze and optimize within product lifecycle environment TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 38 SIRI Assessor Training Course DIMENSION 4 Technology – Automation – Shop Floor Automation COMMENTS DEFINITION: Shop Floor Automation is the application of technology to monitor, control and execute the production and delivery of products and services, within the location where the production and management of goods is carried out. BAND NARRATIVE Band 0 – None Definition: Repetitive production and support processes are not automated. Description: Production processes are executed by humans FOR EXAMPLE Repetitive production and support processes are not automated (e.g. manual lathe, manual assembly, etc.) Band 1 – Basic Definition: Repetitive production processes are partially automated, with significant human intervention. Repetitive support processes are not automated. Description: Production processes are executed by humans with the assistance of equipment, machinery and computer-based systems. FOR EXAMPLE Repetitive production processes are partially automated (e.g. CNC machine) with the assistance of equipment, machinery and computer- based systems Material handling in the production and warehouse areas are executed manually (e.g. manual forklift, gantry crane, etc.) Band 2 – Advanced Definition: Repetitive production processes are automated, with minimal human intervention. Repetitive support processes are not automated. Description: Production processes are predominantly executed by equipment, machinery and computer-based systems. Human intervention is required to initiate and conclude each process. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 39 SIRI Assessor Training Course FOR EXAMPLE COMMENTS Repetitive production processes are automated with equipment, machinery and computer-based systems (e.g. Surface Mount Technology production line, pick and place robot in the assembly line, automated refinery, etc.) Material handling in the shop floor and warehouse areas are executed manually (e.g. manual forklift, gantry crane, etc.) Band 3 – Full Definition: Repetitive production processes are fully automated, with no human intervention. Repetitive support processes are partially automated, with limited human intervention. Description: Production processes are fully automated through the use of equipment, machinery and computer-based systems. Human intervention is required for unplanned events. FOR EXAMPLE Repetitive production processes are fully automated (e.g. fully automated robotics line) Material handling is partially automated in the production and warehouse areas (e.g. automated guided vehicles (AGV), automated storage/retrieval (AS/RS), etc.) Band 4 – Flexible Definition: Automated production processes are reconfigurable through plug- and-play automation. Repetitive support processes are partially automated, with limited human intervention. Description: Equipment, machinery and computer-based systems can be modified, reconfigured and re-tasked quickly and easily when needed. Limited human intervention is required for unplanned events. FOR EXAMPLE The equipment, machinery and computer-based systems are able to reconfigure autonomously based on the changing requirements TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 40 SIRI Assessor Training Course Band 5 – Converged Definition: Flexible production and support processes are converged with COMMENTS enterprise and facility automation platforms to form highly autonomous networks. Description: Equipment, machinery and computer-based systems are flexible and formally integrated with enterprise and facility systems to allow for dynamic, cross-domain interactions. FOR EXAMPLE The equipment, machinery and computer-based systems are integrated across other computer-based systems with the use of analytics to self-optimize processes based on the changes in the working environment DIMENSION 5 Technology – Automation – Enterprise Automation DEFINITION: Enterprise Automation is the application of technology to monitor, control and execute processes within the location where the administrative work is carried out. These processes include, but are not limited to, sales and marketing, demand planning, procurement, and human resource management and planning. BAND NARRATIVE Band 0 – None Definition: Enterprise processes are not automated. Description: Enterprise processes are executed by humans. FOR EXAMPLE The enterprise processes are not automated. Analogue tools (e.g. excel spreadsheet, paper-based, ledger, etc.) are used for information management Supplier Management Processes such as procurement, planning and invoices are communicated to the suppliers using analogue tools (e.g. telephone, fax, etc.) TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 41 SIRI Assessor Training Course Band 1 – Basic Definition: Enterprise processes are partially automated, with significant COMMENTS human intervention. Description: Enterprise processes are executed by humans with the assistance of computer-based systems. FOR EXAMPLE The enterprise processes are partially automated through assistance of basic computer-based systems (e.g. excel). Data entry is input manually Supplier Management Processes such as procurement, planning and invoices are communicated to the suppliers by basic digital tools (e.g. email) Band 2 - Advanced Definition: Enterprise processes are automated, with minimal human intervention. Description: Enterprise processes are predominantly executed by computer- based systems. Human intervention is required to initiate and conclude each process. FOR EXAMPLE The enterprise processes are automated through workflow-based computer-based systems (e.g. ERP). Data entry is managed by computer-based systems Supplier Management Processes such as procurement, planning and invoices are communicated to the suppliers by workflow based digital tools (e.g. SCM, CRM, etc.) Band 3 - Full Definition: Enterprise processes are fully automated, with no human intervention. Description: Enterprise processes are fully automated through the use of computer-based systems. Human intervention is required only for unplanned events. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 42 SIRI Assessor Training Course FOR EXAMPLE COMMENTS The enterprise processes are fully automated through computer- based systems (e.g. Robotic Process Automation (RPA)). Data entry is managed by computer-based systems Supplier management processes such as procurement, planning and invoices are managed automatically by workflow based digital tools (e.g. Supply Chain Control Tower) Band 4 – Flexible Definition: Automated enterprise processes are adaptable. Description: Computer-based systems can be modified, reconfigured and re-tasked quickly and easily when needed. Limited human intervention is required for unplanned events. FOR EXAMPLE The enterprise processes are fully automated through automated computer-based systems and could be re-configured easily to adapt to the new requirements Supply Chain Management system is able to adapt to changing requirements and make necessary adjustments in the overall procurement, planning and invoices processes automatically Band 5 – Converged Definition: Flexible enterprise processes are converged with shop floor and facility automation platforms to form highly autonomous networks. Description: Computer-based systems are flexible and formally integrated with those of shop floor and facility systems to allow for dynamic, cross- domain interactions. FOR EXAMPLE The enterprise systems are integrated across the shop floor and facility systems with the use of analytics to self-optimize processes based on the changes in the working environment TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 43 SIRI Assessor Training Course DIMENSION 6 Technology – Automation- Facility – Automation COMMENTS DEFINITION: Facility Automation is the application of technology to monitor, control and execute processes within the physical building and/or premises where the production area is located. These processes include but are not limited to the management of HVAC, chiller, security and lighting systems. BAND NARRATIVE Band 0 – None Definition: Facility processes are not automated. Description: Facility processes are executed by humans. FOR EXAMPLE The facility processes are not automated (e.g. on/off switch, silo- controlled compressor, etc.) The information across facility processes are collected and managed via analogue tools (e.g. paper-based) Band 1 – Basic Definition: Facility processes are partially automated, with significant human intervention. Description: Facility processes are executed by humans, with the assistance of equipment, machinery and computer-based systems. FOR EXAMPLE The facility processes are partially automated (e.g. Heat, Ventilation and Air-conditioning (HVAC) with the assistance of equipment, machinery and computer-based systems (e.g. programmable logic control (PLC) systems) The information across facility processes is partially collected and managed via basic digital tools (e.g. excel) Band 2 – Advanced Definition: Facility processes are automated, with minimal human intervention. Description: Facility processes are predominantly executed by equipment, machinery and computer-based systems. Human intervention is required to initiate and conclude each process. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 44 SIRI Assessor Training Course FOR EXAMPLE COMMENTS The facility processes (e.g. dust collector, pH monitoring, air compressor, heater, water treatment, etc.) are automated via the Building/Facility Management System (BMS) The information across facility processes is partially collected and managed with digital tools (e.g. sensor, SCADA, etc.) Band 3 – Full Definition: Facility processes are fully automated, with no human intervention. Description: Facility processes are fully automated through the utilization of equipment, machinery and computer-based systems. Human intervention is required for unplanned events. FOR EXAMPLE The facility processes are fully automated and monitored by equipment, machinery and computer-based systems (e.g. Building management system (BMS)) The information across facility processes is automatically collected and managed with digital tools (e.g. sensor, SCADA, etc.) Band 4 – Flexible Definition: Automated facility processes are adaptable. Description: Equipment, machinery and computer-based systems can easily be modified, reconfigured and re-tasked quickly and easily. Limited human intervention is required for unplanned events. FOR EXAMPLE The facility processes are fully automated using equipment, machinery and computer-based system are able to re-configure to adapt to the new requirements Band 5 – Converged Definition: Flexible facility processes are converged with shop floor and enterprise automation platforms to form highly autonomous networks. Description: Equipment, machinery and computer-based systems are flexible and formally integrated with shop floor and enterprise systems to allow for dynamic, cross-domain interactions. TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 45 SIRI Assessor Training Course FOR EXAMPLE COMMENTS The facility systems are integrated across the shop floor and enterprise systems with the use of analytics to self-optimize processes based on the changes in the working environment Technology – Connectivity DIMENSION 7 – Shop Floor Connectivity DEFINITION: Shop floor connectivity is the interconnection of equipment, machines and computer-based systems to enable communication and seamless data exchange, within the location where the production and management of goods is carried out. BAND NARRATIVE Band 0 – None Definition: Production assets and systems are not connected. Description: Equipment, machinery and computer-based systems are not able to interact or exchange information. FOR EXAMPLE Equipment, machinery and computer-based systems are in stand-alone mode and are not connected to the local IT network Band 1 – Connected Definition: Production assets and systems are connected via multiple communication technologies and protocols. Description: There are formal network links will enable equipment, machinery and computer-based systems to interact or exchange information. FOR EXAMPLE Equipment, machinery and computer-based systems are connected to the local IT network via a communication protocol (e.g. field bus, VLAN, etc.) Information is transferred through a central data server (e.g. manufacturing specifications are transferred through a common server to the CNC machines) TÜV SÜD Asia Pacific Pte Ltd | DIGITAL SERVICE pg 46 SIRI Assessor Training Course Band 2 – Interoperable Definition: Connected production assets and systems are interoperable COMMENTS across multiple communication technologies and protocols. Description: Equipment, machinery and computer-based systems are able to interact and exchange information without significant restrictions. FOR EXAMPLE Equipment, machinery and computer-based systems interact and exchange information with the central production monitoring and control systems (e.g. SCADA, MES, etc.) Equipment, machinery and computer-based systems exchange information with one another using standard communication protocol (e.g., MT connect XML-based standard, OPC UA, etc.) Band 3 – Interoperable & Secure Definition: Interoperable production assets and systems are secure. Description: There is a vigilant and resilient security framework to protect the network of interoperable equipment, machinery and computer-based systems from undesired access and/or disruption. FOR EXAMPLE Equipment, machinery and computer-based systems interact and exchange information via a common enc