Thread by @TennantReed

@The_AiGroup head Innes Willox launches the Industry 4.0 Advanced Manufacturing Forum inaugural conference; I’ll be tweeting the event as much as possible today. #Ind40inAus

Innes: Industry 4.0 is the transformation of manufacturing and other sectors through new techs (digitalization, ubiquitous connectivity, AI, analytics and more) and the different business models that can make the most of them.

New @The_AiGroup report released yesterday shows that industry is progressing on 4.0 but there is a big gap between leading businesses and the pack. cdn.aigroup.com.au/Reports/2019/A…

Case studies in report highlight potential, but surveys show high share of business don’t yet see any value in, eg, Internet of Things.

Report selected findings: access to skills is a widely cited barrier to Australian business growth.
Larger businesses are taking up new technology faster than small
NBN complaints have fallen as rollout has accelerated, belying media narrative

More findings:
Cyber security: 30%+ of surveyed biz had a major cyber incident in past year. 80% of biz were investing in cyber security, up from 20%+ in our 2017 report

Selected public policy priorities:
Enabling investments in infrastructure;
Improved collaboration between business, research, government
Managing successful economic transitions around climate and circular economy
Help SMEs take up new opportunities in global economy
Flexible IR

Economy and community are undergoing substantial change. Fourth Industrial Revolution underway; the last three created big disruption and upheaval (esp to jobs), but also big long term benefits. We need to manage the latest transformation well.

Jeff Connolly, Siemens ANZ head on 4.0 moves us to cyber-physical production systems. There is tremendous benefit potential but also risks. Distance was a barrier but also protection; we can access global markets but rest of world can access and compete here.

Jeff: automation and robotics will destroy large numbers of jobs but create even more. Net gain expected, but huge churn to get there. Need to educate kids appropriately, but also frequently reskill older workers. Can’t just take “finished products” from uni, but cultivate skills

Jeff: Ai Grouo skills research shows serious skills challenges.

Jeff: industry awareness of 4.0 and digitalization is growing but long way to go. 4.0 is not just a German marketing term - Germans don’t do marketing! - but a necessary solution to declining manufacturing productivity. Capital productivity growth, not labour, is the problem

Jeff: 4.0 case studies include mass customization in surfboard production; use of digital twins to slash quality problems; rapid design evolution with faster iteration in F1 racing - speed to market is essence of competitiveness

Jeff: the Industry 4.0 Advanced Manufacturing Forum evolved from the PM’s Industry 4.0 Taskforce and bring together industry, research, unions, standards, cyber security and government, coordinated by @The_AiGroup i4amf.aigroup.com.au

Jeff: 4.0 message has changed from “its the future” to “get on the journey” to “implement now”.

First panel on 4.0 foresight
Trish White, Nat President of @EngAustralia: progress so far - 2 years ago hardly anyone knew what 4.0 was, today hard to find an engineer who is unaware or unexcited.

Trish: but many not implementing yet. Tech adoption is not just about tech - needs sustainable biz models, management focus, good team interactions.

David Chuter, CEO of Innovative Manufacturing CRC: many now understand 4.0 concept but not the value proposition. Many biz investing in internal productivity enhancement, not yet in transformation, platform structures and global supply chains.

David: IMCRC is investing public funding in tech innovation, catalysing more private investment. Australia ranks low on R&D and collaboration; need to shift manufacturer perception from “I’m a producer” to “I provide an integrated service”, entailing collaboration.

Kate Louis, Head of Defence & Industry Development at @The_AiGroup : $200b going into defence sector is driving need for transformation. Opportunities: $500m digital shipyard reducing worker transit times from 50mins to 3mins.

Kate: Challenges: cyber threats - everyone is at risk; AI ethics.
Notes many SMEs are doing 4.0 things without labeling it as such.

David Hart (CEO of Dematec Automation): SME engineering business, system integrator across MFG, water, defence. 4.0 is a toolset for value, but challenge is for biz to understand what that value might be. If already implementing lean mfg it’s clear how automating that helps

David H: if you’re not already at the previous frontier, the new leading edge is less comprehensible.
Worked with a concrete pourer who used to guess when concrete ready for next pour, now use sensors to make it an exact science, improve quality and speed.

David H: barriers are awareness - most biz could get 4.0 value but don’t necessarily see how. The cost of implementing 4.0 has come right down, accessible for biz of any size *if* they see the value.

Trish: hurdle for many biz is question of buying and adapting external systems or building their own.

David C: look at @CSIROnews 2019 outlook for 2060 csiro.au/en/Showcase/ANO
Presents a scenario where manufacturing creates more value than any other sector; and one of slow decline. We can achieve the former.
But in last 20 years the list of most innovative Aust mfg hasn’t changed

David C: building more Australian connections to global supply chains will help propagate innovation through more Aust businesses.

Trish: during WW2 supply disruptions, @UTAS_ prof and students birthed a specialist artillery sighting producer that became a world leader for decades. We’re capable of great things when we try.

Trish: @EngAustralia looked at reskill task if automation disrupts jobs per @wef forecasts. Would see big change in next decade, but the skills pipeline looks challenging - school kids are not studying pre-eng STEM subjects enough.

Q1: challenge to turn smaller businesses into bigger. Some biz have grown for survival. Lean mfg helps but relies on engaged people to maintain lean systems. Need to build corporate knowledge of new ways of working; our success relied on good in-house coder, not consultant

Q1: just talking to consultants about manufacturing improvement is too costly, in house is more manageable.

Next panel: operationalising 4.0
Jens Goennemann @AMGC_Ltd MD:
Digitisation and implementation are priorities in Germany because they know they don’t have a resource endowment to fall back on.

Jens: 95% of Australian manufacturers are small - employing fewer than 20 people. Big task to bring these businesses along.

Chris Bridges-Taylor (GM of B&R Enclosures: what does 4.0 have to do with metal bashing? B&R’s innovation journey started with computerization through a Commonwealth innovation grant in 1986. Programs do matter.

Chris: we re-examined ourselves and found we were a services business, not just an enclosure maker. Saw supply opportunities with primes and major projects and need to be highly advanced to participate. Hence interest in 4.0.

Chris: first step was to improve internal ops; had high tech equipment, but variety created complexity. With @AMGC_Ltd we did project on rapid decisionmaking- gather info for decisions in the workshop, with full customer visibility. Transformed workshop with apps, iPads

Chris: workforce engagement essential. Have long standing workers; connecting experienced workers with augmenting tech is improving their capability and role satisfaction.

Sharon Wilson (Aust capability director at @BAESystemsAus ) - one of biggest defence businesses in Australia: Cth ship program is a massive chance for generational renewal in manufacturing. New shipyard ready July 2020, needs “digital workers”. Cutting steel on first ship Dec ‘22

Sharon: big transition from old shipyard and old ways of doing. Digital prototyping, digital testing of production processes. New skillsets needed. Establishing continual shipbuilding capability needs a lot of applied R&D.

Sharon: we aim for a shipyard that is the envy of the world.
Collaboration often discussed but often a closed shop (don’t talk outside the collab) or one way street (partner gives but doesn’t get). We want to capture and share our innovation and training across industry.

Jens: if BAE creates an open digital standard for suppliers - can suppliers digest it?
Sharon: we provide information in a platform-neutral format so everyone can access.

Ian Ryan (@SAP head of Institute of Digital Government): we’re a business process company and processes have got to fit the user.
Best process is using the most appropriate techs for context, not just the shiniest high tech, to maximize use of the available data.

Ian: customer feedback needs to be in a loop with ongoing product redesign.
What is right for very small businesses? Need lots of cloud services (light footprint) that enhance visibility of the business. Larger businesses can leverage more in-house systems.

Trevor Power (Head of Industry Growth at DIIS): businesses will take up 4.0 where they see a specific problem that it solves, not where it is a more generic business improvement recommendation.

Trevor: we can’t win the labour cost game and wouldn’t want to; we must aim to win on productivity and technology.

Q&A: how is collaboration going - are universities keen?
Chris: our best collab has been with uni mechatronics students. We’re also working with the SA shipyard; it’s provided an avenue for SMEs to work with unis in a nonthreatening environment

Sharon: the scary bit of research is not knowing what the practical outcomes may be; good collab puts lots of skill/info resources at partners’ disposal, bolstering the biz value beyond formal project outcomes.

Sharon: in UK, naval manufacturing has made advances in collaboration across multiple dispersed shipyards.

Q: what does the next next revolution look like - what is 5.0?
Ian: we have projects that are utilizing AI, machine learning and blockchain. Remember past hype about algorithms however. Outputs need to be explainable. We don’t yet have needed standards for AI and ML.

Ian: frontier is in gradation if machine-to-human processes - more flexibility in degrees of human involvement, not just black and white automated/manual.

Q: how does government address pain and benefit of automation?
Trevor: net benefits but churn is very important. Tasks of displaced people likely to be very relevant to new labour needs, so upskilling should work. But current skills system doesn’t quite match this.

Trevor: microcredentialling can help. Business also needs to be committed to skilling.

Q: How should SMEs build collab with bigger companies?
Sharon: talk to us about what you’re doing. @BAESystemsAus keen to be open with our supply chain; we have shared issues and are keen to learn as well as share.

Sharon: Many companies worry about sharing with competition. But open collaboration is needed - no way around it.
Ian: there is a gradation of collab with big companies - sometimes purely transactional, sometimes deeper. Systems need to support the range.

Q: what’s the relationship of 4.0 to sustainability and emissions reduction?
Ian: varies worldwide. In Germany 4.9 is closely aligned with circular economy agenda. Open question whether this translates to Australia. Corps like @bhp see value in circular economy, will enter Aust.

Ian: 4.0 is the most consumable digital transformation - people understand digitisation less in many other sectors. But mining is taking this up, with benefits for resource efficiency, SDGs and more.

Chris: SME needs to think about how the market and customer and community expectations will evolve. Using resources better is part of this. 4.0 is absolutely a revolution - we saw the scale of the move to 3.0 in our biz in 80s, this is of equal impact.

Jens: union involvement and works councils can be significant (eg Germany, Japan) - if workers demand the company modernize and innovate, the context is totally different - less stasis, less imposition of change on workforce

Breakout session on Industry 4.0 Standards (Chatham House rule applies so won’t identify speakers):
Speaker 1: Australia has standards for products, processes, management systems and services. All categories drawn on for applications like smart cities.

Sp 1: Australian standards are developed collaboratively and Australia is connected to international standards development.
Standards are not policy, but tech specs that support policy, market and community decisions/usage.

Sp1: standards help provide the certainty to underpin deployment of new markets and technologies.

Speaker 2: Illustrating shifts in standards:
Product standards - Water Efficiency Labelling System (WELS) led world and is being taken global, creating markets for more efficient products and removing trade friction points.

Sp 2: property valuation standard helps underpin a huge amount of economic activity.
New Australian standard for protection of privacy in orgs helps compliance with EU GDPR.
ISO9001 quality management has been adapted by medical device manufacturers to drive specific improvements

Sp2: service standards - MeToo demonstrates how sub-par org treatment of staff and customers can be destructive. Application of standards can help.

Sp2: case study - Australian gin producer @BrogansWay adopted a 4.0 platform built on ISO20001 using modular automation to assist scalable flexible production.

Sp2: standards are only part of a solution - can’t replace legislation, can’t be ignored. There is no perfect solution to Industry 4.0 - globally, everyone is feeling their way through and adapting to their own context.

Sp2: additive manufacturing: Australia is not participating in global standards development committee for this. It’s developed 9 standards and 25 more are under development. Industry can change standards if it gets involved

Sp2: graphene: Australia participated in ISO TC 229 (nano-technologies)
Australian industry can introduce new standards proposals here.

Sp2: Australia has led push for blockchain-related standards through ISO TC 307 (blockchain and DLT). Involvement has given Australian biz greater viability in digital trade. international standards development is hard; success here is a big deal, working well.

Sp2: AI standards - Australian consultation underway now. Needs an industrial focus, not just consumer: eg consider industry applications like digital twins.

Q: are there implications for 4.0 from the broader challenges to standards conformity and compliance (eg dodgy building products) - do regulators have the powers and authority to enforce expectations?

A: standards are not a silver bullet in themselves. Auditing, regulation is critical. Standards players need to work closely with users and regulators.

Q: how do we move beyond narrow product standards to integrating with process and service standards?

Q: a lot of Australia-NZ joint standards have been de-jointed in recent years, causing concern and hindering business. Driven by mismatch between Australian-set participation fees and NZ’s user-pays standards approach without cost sharing.

Q: how to prioritise 4.0 specific standards? Why?
A: existence of standards increases business confidence to invest in 4.0 without fear of VHS/Beta incompatibilities.

A: Australian additive manufacturing standards committee has first meeting in two weeks!
There’s a critical window for standards development. If too soon or too late, will be irrelevant. Should lag market a bit. Now is right time for standardizing additive manufacturing.

A: feels too early to prioritise - we don’t even have a list or sense of what 4.0 is yet.

A: interoperability protocols; cyber security; intraoperability (people/machines working together). 4.0 is such a broad term, but standards are very specific; these may be relevant without any 4.0 label.

A: automation and robotics is contained within a site; issue of getting site information up to management or down to customers is critical, needs cost effective multi-use platform for SMEs to adopt.

A: explanations of 4.0 usually go straight to technology, but this is in flux. Framework standard for 4.0 projects and systems would help.
If SMEs have resources to invest, they want a proven outcome.

A: data connection, sharing and stewardship is critical.

A: safety of automated systems and interaction with WHS - eg cobots and driverless logistics are important techs, if things go wrong the industry transition falls into disrepute.

A: FutureMap tool from IMCRC and partners is a good approach to improving SME innovation capability.

Q: what should be the role of Standards Australia?
A: there is an increasing NZ philosophy of “why reinvent global standards - unless there is something unique (earthquake readiness)”; just make sure you can participate in and influence international standards.

A: quality of Australian standards and conformity can be a key competitive advantage - think of the trust in Australian milk powder in China.

A: educating stakeholders about where standards fit with other tools for addressing issues.

Plenary session with output of all breakouts, chaired by Trish White of @standardsaus

David Chuter IMCRC on technology applications and digital business models session: focus on case studies of businesses on the journey. Vibrant 50 person discussion of how to accelerate uptake.

David C: 71% thought Australia is on “exploring” mode on 4.0, not resisting or championing.

David C: barriers to 4.0? Lack of understanding; lack of vision, culture, leadership

David C: to accelerate, need b2b collaboration, clear national strategy, business mentoring programs;
Moonshot program could help - eg “be most cyber-secure nation”; communication of case studies; funding for innovation and collaboration

Daniel Chidgey, Standards Australia on Standards breakout:
Security of information critical, cyber standards important.
SME standard for self assessment of innovation/4.0 capability would be useful.
Early provision of information on new tech is important, prior to a standard.

Daniel: Australia can play a leading role in global standards development in priority areas and can create or boost markets through development of trusted standards.

Michelle Price, CEO @AustCyber on cyber security breakout:
Cyber is like WHS - needs repeated messaging to sustain a culture of secure practices. Cyber can be a competitive advantage. Intersection of mfg and cyber is great for learning lessons & creating competitive advantage

Michelle: collaboration is key to progress.
Explaining basic concepts remains important to building awareness.
Supplier loyalty and supply chain resilience are important.
4.0 + cyber intersection allows for new kinds of product.

Leanne Barnes, @Swinburne on workforce breakout:
Cocreation of curricula between industry and education providers needed.
Test Labs: 6 unis now in national 4.0 test lab network. Engaging SMEs with these is critical for impact.
37% of advanced mfg have little 4.0 engagement

Aleks Subic, DVC R&D @Swinburne : 4.0 test labs are fundamental for getting from awareness to implementation. Open access, supportive environment allows learning by doing.

Andrew Dettmer, Nat Pres of @theamwu , on workforce key issues:
We’re trying for signposts, capacity building, priorities for new skills and practices - not a blueprint. I remember industry 3.0 - computerization - implementation was similar across plants. 4.0 skills more bespoke

Andrew: teamwork is at the heart of the skills needed.
4.0 success will require holiday, collaboration, bravery, owning failures as well as successes, trust and intellectual ferment.

Megan Lilly, Head of Workforce Development @The_AiGroup:
75% of employers are having difficulty recruiting the right people today. This risks growing as our skills needs change with digitalization.
Response? Stronger upskilling/retraining agenda for existing workers;

Megan: even where job titles are stable, skills involved are shifting and training needs to keep up.
Are our education and training systems set up for new needs? Doesn’t look like it - mostly set up long ago and not sufficiently updated. Work and education need to move closer.

Megan: the distinction between higher and vocational education is redundant.
Paradigm of ongoing education needs challenging with microcredentials, short courses and more.
People need to know where they can access training.

Q&A
Q: collaboration arouses fears of competitors - do we have to get over this?
David: nobody knows all the answers on 4.0, must share info, can’t just rely on instructions for new pieces of kit - the innovation is how systems and biz models fit.

David: typically manufacturers’ actual competition is not in Australia - it is global. Working together is much less risky than they think.
We can only get better from here.

Michelle: Australia has a fragmented business culture and much distrust. Look internationally: what value Silicon Valley has is about culture. Cyber security can be an enabler of collaboration - something that businesses share effort on rather than competing in.

Michelle: in Silicon Valley companies don’t compete on ideas; they work on them together, then compete on the implemented refinements. Australians are known for our individual abilities and we could make much more of this collaboratively.

Address to the Industry 4.0 Advanced Manufacturing Forum Conference by Minister for Industry, Science and Technology @karenandrewsmp:
When you’re speaking you’re not listening; I want to listen to industry stakeholders today.

Minister: Australia will always be a Manufacturing nation, even as the sector evolves.
Industry change is a continuous process, not just a set of discrete eras.
The Government is committed to growth, productivity and jobs. industry portfolio is where this comes together.

Minister: at election, Govt committed $160m for manufacturing modernization focused on SMEs, especially where there are opportunities for job creation and export market development.
Hard to compete on cost, need to compete on value of Australian products.

Minister: AI, robotics, digitalization can help us achieve the potential in the @CSIROnews national outlook.
Mining and Ag will continue to be important sources of opportunity, but new ones arise; 🇦🇺 space industry could grow from $9b to $12b by 2020. Goes well beyond launch.

Minister: Australia is working with NASA towards assisting the Artemis moon program.

Skills agenda is crucial to industry. Works closely with Minister Cash. Pipeline of skills is vital; STEM study is deteriorating. Industry needs to generate exciting experiences for kids.

Minister: Government will have a continuing conversation with industry stakeholders about how to maximize our manufacturing potential.
The @The_AiGroup industry report released yesterday highlights key issues including cyber security.

Minister: this room is full of technology enthusiasts, but many people are worried by talk of disruption. Industry stakeholders need to communicate the potential and the current reality of technology in ways that build understanding and salve anxiety.

Minister Q&A:
Q: innovation - Australia has dropped out of global top 20 - any ideas for how to reverse?
A: drop from 20 to 22 is not far. Innovation has been frightening for some rather than energizing. Innovation happens across industry but is too perceived as online startups.

Minister Q: will Govt consider a 4.0 strategy?
A: yes. We are committed to Industry 4. We want to bring industry, science and technology closer through collaboration.

Minister Q: how should we reform vocational ed?
A: often gets caught between Feds and States. Important for Cth to provide money with requirements on outcomes (eg apprentices taken on). Honestly this has had varied success so far; it needs to go much further.

A: must address status of VET - still seen as poor cousin of uni degree. Need buy in from lots of stakeholders: schools assessed by how many students go on to uni - got to report VET equally as a positive.
Employers often say grads not job-ready.

Minister Q: you’re an engineer; do we have enough people in politics with engineering and technical backgrounds?
A: no! Any engineers in the room who would like to go into politics - talk to me.

Minister Q: regional centres are worried about disruption and decline - how to respond?
A: regional centres have big opportunities but are struggling to keep people - kids are moving. Ideas like incentives for regional apprentices are taking shape, but more to consider.

Minister Q: Where could we make the big uplift to approach the CSIRO 2060 positive scenario?
A: innovation - we are determined to lift collaboration between researchers and industry;
Skills - we need to make a big push here.

This concludes the event and this tweetathon! Back to regular energy/climate programming tomorrow

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