Connecting digital steps to smart growth

Updated: 2014-11-10 07:07

By Meng Jing(China Daily USA)

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Connecting digital steps to smart growth

Siemens PLM software is widely used to design and simulate the performance of airplane and car components. Pretest simulation on digital platforms can save time and money compared with traditional physical testing. Provided to China Daily

'Bright future' for Siemens PLM software in China as firms seek an edge, says CEO

Though winds of change are sweeping across the manufacturing landscape with tremendous speed, countries like China can still retain their winning edge by using innovative industrial software that can integrate the product development and production processes, a top industry official said.

Much like cloud computing that is transforming the information technology business, it is "Industry 4.0" - a concept that promotes the digitalization of the manufacturing industry - that is now being hailed as the way forward for manufacturing companies.

German industrial giant Siemens AG has been the most notable supporter and proponent of the concept, which is essentially a collective of smart factories, intelligent machines and networked processes that provide a direct and real-time interface between the virtual and physical worlds.

Chuck Grindstaff, chief executive officer of Siemens PLM Software, believes that China would be the biggest market and largest buyer of the new solutions that are spearheading the so-called next industrial revolution. "China's competitive advantage was low-cost labor initially. But in the long run, its sustainable advantages would be innovation and quality," said Grindstaff.

His remarks come at a time when policymakers are looking for ways to make China's growth innovation-oriented, rather than driven by low-cost labor. Grindstaff said that the Industry 4.0 concept would help Chinese manufacturers hone their competitive edge globally and move up the quality, innovation ladder.

"We have a team of people who are well aware of the new concepts and processes, and our products are well-suited for the Chinese marketplace," said Grindstaff, whose company has been rated as the market leader in China's product lifecycle management sector for 13 years in a row, according to consultancy and research firm, CIMdata Inc.

The Texas-based Siemens PLM develops software that can manage the entire lifecycle of a product from designing to manufacturing, to deployment and even disposal. It is seen as a key enabler for countries like China that are on the cusp of an industrial transformation, experts said.

Policymakers are already working on an industry blueprint known as "China manufacturing 2025" that aims to make China a manufacturing leader by 2025 and zoom past Germany and Japan by 2035.

A cutting-edge project that showcases the advantages of PLM software is Siemens' digital factory in Chengdu in Sichuan province.

The factory, Siemens' only digital workshop outside of Germany, is a highly automated unit where production materials are sorted and delivered to the exact production line at the exact time without workers lifting their fingers. The machines are also smart enough to "talk" to each other and make their own decisions by using well-designed connectivity machines.

Each worker at the 3,100 - square-meter factory floor has an account on the digital system and at least one screen for each of them to receive orders and production guidance from computers. The entire production process is paperless and much faster than conventional factories.

The key to making this smart manufacturing happen is the collaborative digital platform that is based on PLM software, which is widely used by auto, aerospace and aviation companies. As many as 19 out of the top 20 aviation companies in the world use Siemens' PLM software, including Boeing and Airbus, said Grindstaff.

"By using the three-dimensional simulation software from Siemens PLM, we have been able to better simulate the movement of robots and deploy them in the correct slots on production lines. It has helped us to deliver any kind of project to customers within one year," said Ding Yudong, mechanical design manager of Comau (Shanghai) Engineering Co Ltd.

Ding's company, which provides tailor-made robotized production lines to auto makers in China, said the software simulates work scenarios for robots based on customer demands, a critical component for today's automotive industry.

The data generated during the design, innovation and production processes are stored in digital platforms, which helps ensure seamless communication between innovation and production. Employees who work in different domains, different offices and different countries can share the information and benefit from the collaborative platform, he said.

Though the Chengdu digital factory has been operational for just a year, it has already made significant achievements like "fast to the market", and "high delivery performance" with quality defect rate as low as less than 15 out of 1 million.

According to a report released by The Boston Consulting Group in September, more than half of the US-based manufacturing executives at companies with sales of more than $1 billion are planning to return production to the US from China or are actively considering it. The share of executives who are planning to "reshore" or are considering it rose to 54 percent, compared with 37 percent in a survey in 2012.

The top three factors cited as driving future decisions on production locations were labor costs, proximity to customers, and product quality .

As the manufacturing industry moves ahead, employees will find that they will have "less repetitive tasks and more thinking tasks", he said.

Grindstaff said that Chinese companies like Zoomlion Heavy Industry Science & Technology Development Co Ltd and Haier Group have been at the forefront of the PLM race in China with their enhanced focus on high quality and boldness in embracing new technologies. "As they expand their capabilities and become world leaders in their respective sectors, they will have to make products that are smarter and better. So our technology becomes crucial for them," said Grindstaff.

"China is big, diverse and growing fast. It is important for us to keep pace with the changing dynamics in China. We cannot depend on the things that we did in the past to drive success. What it also means is that we need to have deep and strategic engagements with our Chinese customers," he said.

Q&A | CHUCK GRINDSTAFF

How did your background as former chief technology officer help you in your current role as chief executive officer?

Though we have several technology products in our portfolio, I am not unduly worried as I was involved with most of them from inception itself. Yes, it would have been a mystery to me if I were a rank outsider. The technical knowledge that I gained in my previous role helps me to focus on business growth and also to understand the people behind our successful products.

How do you usually spend your weekends?

I try to spend some time with my wife and three children whenever I can. Sometimes I work during the weekends also.

What are your hobbies?

Growing grapes for wines is my favorite hobby and I spend most of the free time in my vineyard. I also like cooking and riding motorcycles.

How often do you come to China?

I make several trips to China in a year.

Do you have any secrets for breaking the ice with Chinese businesspeople?

I use the same secret that I use all over the world. If you want to understand, you have to listen.

What is the trait that you admire most in your peers?

Honesty is the one trait that I believe all should have.

mengjing@chinadaily.com.cn

(China Daily USA 11/10/2014 page15)

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