 Gweithgawd. Rydyn ni'n fwyaf i'r hwyl. Gweithiau iawn i'r hyn. Rwy'n dweud y ffactorio gwybodaeth. Rwy'n gweithio gydig i'r gweithio. Rwy'n gweithiau i'r ffactorio. Rwy'n gyflaen i'r hoffi a'r drwng Dr Jagjit Singh Shray, yr ysgrifftiol ymlaen i'r Unedigwyr. Rwy'n gweithio i'r ffactorio gyda'r Ffactorio Gwyrd yma, Cwm, rymorosodd yma, yn gyngorol i'r cyflawni, yn ymddangosol yng nghymru. Rwy'n digwydd gyrfa'r cwmddiadau, rydyn ni'n gofod, bwyd yn bwyd ar bau, ynglyn â'r vice-president ac ynglyn â'r rydyn ni'n gofodau ymddangosol, ychydigfaint o'r Fyllgrifonau Llywodraeth Cymru. Rydyn ni'n gofod, rydyn ni'n gofod, o'r Llywodraeth Cymru'r Llywodraeth Cymru. Virginie Rigadeau, Le Vaudrail Smart Factory Leader, and Kenneth Labhart, Lexington Smart Factory Leader. So, we get representation from France, Europe, and also from the United States. Before we just engage our speakers on the subject of Factory of the Future, maybe I just want to set the scene. The Turn Smart Factory has been around for a few years. Nobody has really spent too much time trying to demonstrate it in action and demonstrate real implementation. The World Economic Forum in collaboration with our industrial partners and academia have been starting to develop with McKinsey the concept of digital lighthouses. Now, the digital lighthouse, what does that mean? These are exemplars of smart factories. They demonstrate different aspects of using digital technologies to improve productivity, to improve resilience, to improve quality, and often lead time and customer service. All of those aspects becoming increasingly important as supply chains face quite a lot of challenges and resilience and dependability become crucial. Now, we know there's more than 100 lighthouses and one of the standout organisations with more than five lighthouses spread across different continents is indeed Schneider Electric and the Industrial Automation Division. So, just to set the stage, this is one of a choice set of digital implementations within a factory environment. And one of the things I was really struck by both these sites is that they've existed for some time. We often think digital technologies can only go in a greenfield new site, but here we'll see digital technologies really in action in sites with some substantial history. So, I want to kick off first and foremost with Barbara. First, we see supply chain resilience and supply chain challenges in the story today. What's the role of manufacturing in responding to these latest trends? I would say, first of all, I would really like to mention that the industry of the future has really to solve the challenge of CO2 emissions or gas house emissions. So, 30% of all gas house emissions are done by industries. Now, when you go a bit more into the details, you will see that the heavy industry is already on a path, they have done the efficiency and now it's about electrification. Whereas the light industry, exactly the industry where we are in as Schneider Electric, still has to go a long way. So, 70% of the energy efficiency we want to get of the industry is in light manufacturing. So, that's an important point to remember. Fantastic. So, it's about addressing the sustainability challenges as well as the operational challenges of supply chains. So, could you elaborate, Barbara, a little bit on the technologies that have helped in delivering these smart factories? So, we started with the smart factory programme in 2017 and we had different bricks from optimizing, from making more preventive diagnostics up to really energy savings, power management in the manufacturing space, which has brought us a lot of savings. But I think the best would be to really now listen to the real example, what do you think? Let's go for it, let's see the examples. Okay, let's play the video with Kenneth from Kentucky. Hello and welcome to Lexington, Kentucky. We're honoured to have you with us today as we talk about digital transformation in an aged facility. The facilities construction finished in 1957, the year 2023 will be the 66th year of production in the facility. And our smart factory programme, which started in the year 2017, focused in on digital transformation in standard priority facilities, driving standardization around the globe. And facilities like the plant that you see here in front of us. We were honoured in the year 2020 to have the World Economic Forum award us the advanced manufacturing lighthouse designation for our end-to-end digital transformation. And in the following year, the plant was awarded the sustainability lighthouse for our commitment to digital energy management, our digital energy management strategy. We manufacture product in the facility here across two shifts of production with approximately 600 employees. And we manufacture safety switches and we manufacture load centre. We're heavily vertically integrated and we're heavily automated in the fact that we make nearly three million of these devices a year and approximately 800,000 of these devices from a raw coil of steel. So how did we do this in an aged facility? No matter where you're at in your digital transformation or your smart factory programme, it is vital to realize and understand that empowerment of the employees with digital tools is the heart of a digital transformation. Giving your employees the ability to make the right decision at the right time is critical, especially in the area of continuous improvement. Now, the employees in the processes around us here are in assembly processes. They're using digital tools to identify the performance of the operation to understand the roadblocks and receive escalated and on response for the roadblocks to their production. And they're also using digital applications to manage the resources that are signed and knocked down or kill those roadblocks to production. Now, once this digital manufacturing execution system was standardized on these lines, we now have standardized data sources that we can use with much higher level business intelligence applications to really drill down with analytics to tell us trends in our performance and help us kill those roadblocks. These are the same types of digital systems in use and being driven as standard as part of our smart factory programme at over 200 facilities throughout the world. Also, employee empowerment is vital in a sustainability plan or in your digital energy management strategy. The ability to understand and use data regarding the energy usage of your facility is vital to reducing your energy spend in your facility and increasing your energy efficiency. The paint system in this facility is the largest consumer of natural gas in North America in our company. The conveyor system over my head is feeding at any given time 7,000 parts from the fabrication department through that paint system and on into the assembly process. It is vital that we understand exactly what energy is being used at what time and where in the facility. We utilize a system of connected meters, edge and cloud software applications to visualize that energy usage and to study that energy usage. At any given time in this facility or in this process, I have the ability to understand exactly what energy is used by component or by process or even by sub component. We look at that energy usage and we build a digital energy management strategy that we can attack and execute to drive energy efficiency and reduce waste in our system. At a regional level, we also pull that information for those edge applications into a cloud application where we have the ability to compare plant to plant across the entire region. It's the combination of these digital tools that have enabled the Lexington facility to deliver 26% in energy savings since the maturity of these tools. And more importantly, at a regional level, we've delivered over $6 million in energy savings. So, we're very proud of that as part of our commitment to sustainability. I want to thank you for joining us today. I realize the visit with brief, but I want you to leave with the understanding that it is vital that empowering your employees is vital to the success of your digital transformation journey. Thank you very much. Thank you, Kenneth. That's great to see these digital technologies in action. Maybe a question around the use cases we've seen of digital technologies. Fabulous on the shop floor to see them. What next? You've got the digital lighthouse badge. What next is challenging you and your team? So, you know, we have engaged IOT heavily in a smart factory program. And in Lexington, as an example, we have over 2,000 signals that are streaming from the factory floor for various data signals for critical to quality parameters, critical to asset health and also energy. We are beginning our journey of using artificial intelligence to leverage that base of IOT connected signals. So, we have several applications and facilities here in Lexington and also throughout North America where we're taking that base of IOT connected signals. We're beginning to use machine learning to detect anomalies in our quality and our health signals and our energy signals. And we're also beginning to use artificial intelligence guided vision systems at scale in North America to detect both anomalies and quality and also in the health of our assets. So, it's very exciting. That's great, Kenneth. And I'm sure there'll be questions from the audience later on in this session. So, keep them in mind. Maybe Barbara, a question for you. One of the things Kenneth mentioned was about the use of technology developed in Lexington and then applied elsewhere. You've got a very complex manufacturing footprint. How do you achieve scaling? So, we have about 200 manufacturing sites and 100 logistic centres. And Kenneth was mentioning several times a very important word. We are empowering really our shop floor people to be part of it. So, if a site wants to become a smart factory they really have to come up with proposals. They can choose from a kind of modular system and each of these modules has to be a viable business case. So, this could be a payback of less than one year in the beginning and then of course it can go up to three years or four years depending on what we are doing. But it's really the shop floor people which are bringing in those ideas and then we follow up on them and they can also track them if their ideas have been really implemented or not and if they have not been implemented what have been the reasons. And that's very rewarding and very motivating. And this is how we scale up. And again, as a factory if you want to apply for smart manufacturing you also have to fulfil certain KPIs regarding quality and so on so that you're really major enough for it. Brilliant. Is that a trigger to maybe look at the second factory? Of course. Of course. I think now we can go to Le Vaudrae to Virginie. The next video. We are entering a production sector where we are manufacturing contacts and these contacts need three departments to produce. We have a tips manufacturing part. We have a chemical engineering part to make the silver powder and we have a brazing part to braze on copper. And here we have one operator that is working here launching the batch of production for silver powder and Patrick is just right now completing the short interval meeting preparation. So he's putting the priorities he's putting the actions that we have to take on and he's coordinated with the over shift that will work here as we are working in free shift plus within. We are in this area in the tips manufacturing part. So tips as you can see is this circle silver tips are brazed on copper so this part and to make this tip we need a chemical engineering department and we have connected our department in order to be able to better monitor our production better monitor the deviation that we can have on our manufacturing process. So we have two lines and we are going to cross the sector. What is the functioning of this sector before the transformation? We have to mix all the ingredients and we still have to mix ingredients to put also sodium to generate a chemical reaction and at the end of the production we need to decrease as much as possible the level of sodium to get a rate under 200 ppm. So that's really important to get this level of sodium rate in order to deliver the good quality to our customers. And before we had to send samples to laboratory in order to check if the quality was good or not without any possibility of reaction. Now with the connection of data we are able through conductivity sensor to get considering this is the image of sodium to get the sodium rate washing cycle by washing cycle because we need to wash our production in order to decrease at a maximum the rate of sodium at the end of production and we see all the washing cycles and we see how sodium rate is decreasing. So our intelligence is able to send alerts when there is a deviation along the process. So it helps us to better monitor our production and to be sure that we are doing the good level of quality expected. Here we have our zero water rejection process. This water is used in our production of silver powder to wash all the production and this is a closed loop circuit. We have implemented this station in 2015 so we were worrying about sustainability since a long time and we have decreased thanks to this station the quantity of water we use. And what we have done additionally is that we have connected our station to an intelligence so you can see all the data that we collect and that is sent to this intelligence and we are able to calculate what we call an anomaly score putting in parallel all the data we know when we will have an issue. This anomaly score when it is reaching 80 will send an alert to people in order for them to react and prevent that the formula of water becomes not good. So this is a strong impact that we have made on our sustainability and I would say at the end this sustainability impact that we have through digital technology implemented is a good argument for us to better operate change management and better involve people in all these digital transformation. Thank you very much for your attention and have a great session in Davos. That was superb Virginie. A quick question if I may. I saw quality professionals, chemical engineers, production staff. How do you get teamwork across different disciplines both on the shop floor different engineering disciplines as well to work collectively in this digital transformation journey? You know it has been a wonderful journey since we have started this transformation at the end of 2017. Everything was new. We were experimenting first technologies but we had already in mind that people interest would be the key of success and when I say people I mean all the people up to operators working on their machines because they are the ones that have all the accurate knowledge of the process all the events occurring during the production process. So they are a wonderful source of input to manage digital transformation to help the team to initiate the digital transformation. Once you have understood that it's time ahead of project to build a kind of inquiry like you know a treasure hunt to analyse their needs and their way of working. And we think that we know all the job in factory but in reality when we connect directly with people you learn a lot, a lot of details from us a lot of details that are very grateful to operate all the projects that we want to have in our factory to improve our performance. And that has a double effect because they like to speak about their everyday job they like to transmit and you don't have to disappoint them. We use all the data that they give to us to improve the way we manage the digital transformation and prove all the digital tools that we have. We have open doors, we have opportunities with them and they like to interact. They like to test the solutions and they feel part of the transformation since this moment. And during the video we have a good example because Patrick Morge that is an operator working in the chemical department is launches batches of powder manufacturing. Patrick has given lots of ideas helping us to well manage the start of this project. He has been a facilitator. He is still a facilitator and he has a lot of impact also with its colleagues. So it's a great input and he's within the 24 smart champions that we have in our factory mixed between production and support functions that help us everyday to make improve this digital transformation. Sustainability has been also an additional motivation and Patrick knows that, he knows that all this use case described as a real impact in our environmental footprint. So clearly sustainability has an impact on the way we manage the digital transformation but is also a consequence of our digital transformation leading to the results that we got minus 25% on energy consumption and we are still on the path minus 25% on CO2 emission minus 17% on waste and minus 64% on water consumption. So we believe that we will improve still in the coming period of those figures and if you have one message to keep in mind that would be this one, trust your workforce give them the power to deliver their voice and to be the actor of their own change. Thank you Virginie. That's really inspiring right from the factory of the future with the factory floor. Questions for our guests in the US in France and of course here Barbara. Very happy to take any questions. Anything that sort of triggers one back there? Did you work on changing their compensation and their reward system in the factories as well? It's a good point. Maybe Kenneth you want to take this question. Did you hear it? I did hear that I did hear. Yes. Can you hear me? I'm back off mute now. Yeah. So question regarding the compensation. So what we have seen is that we've seen a we've seen a transition or an evolution of people from one working classification to another to a higher skilled classification. So where we may have had individuals were previously in a similar. We now have driven a need for more technicians with the ability to have advanced skills in an assembly process or a batch process like you saw in Llywodrae and people have transitioned from those assembly positions through training into those skilled positions. We have several examples of that throughout the facility. So I would say that we've had more of an evolution of people from an evolution of people across those divisions of labor at our factories more so that we have in terms of increasing pay for certain classifications. If that makes sense. Okay. Thank you. Another question from the floor. Yeah. Okay. Thank you. Thank you for the great videos and the great explanation. I would be interested. Has this program had any influence on you on the safety performance and on the safety records that you have in the company? Maybe do you want to answer this question? Did you hear it? Yes. Yes. Yes. We we have used the digital also to manage safety and this is important because this is one main domain that we monitor in in our factory. So we we have been making safety safety talks in the factory to better improve the domains of improvement within safety and using digital to better register all the elements regarding safety and to to be sure that we we improve day after day on this domain. Thank you, Virginia. One question up here in the front as well. I assume you retrofit all the old machine. How complicated is it to retrofit? You have to start from you. Can I ask Kenneth maybe to jump in there? Yeah, it's an excellent question and it's one that we struggled with in our digital transformation. We often find ourselves when we ran it. We started by classifying our types of assets. OK, so we had you know assets that had some type of connectivity all the way from an advanced connectivity with an available data stream all the way to machines that had no brains, no nothing but relay logic control or control that was very minor, no intelligence whatsoever. It's been a trade off. We have not as a we have not as a as a general principle made the decision to upgrade every piece of equipment to enable full connectivity. OK, what we have done is we've utilized several of our products that have a very basic level of connectivity that are very easily integrated into the order of equipment to pick up discrete signals. So we often we oftentimes find ourselves in our older equipment taking an auxiliary piece of equipment that has a capability of picking up analog and discrete signals from that equipment to describe health. But the short answer to your question is no, I'm not going to tell you that we made a decision across the board to upgrade everything that wouldn't talk so that it does talk. That answers your question. The tough one. Thank you for the question. We could probably want to one question more from the floor while somebody's having a think about that. Maybe I just asked Barbara is a hundred ninety five plus sites to go. What's what's the future here? What's the plans? Is is a digital lighthouse for every factory? Or would you select which sites to push that agenda forward? I think the digital lighthouse is a good thing and we are continuing with the smart manufacturing program that that is a continuous process. There's also Kenneth and and Virginia was saying even in the existing lighthouses we are continuing to improve. I think what we are now doing also on a global level is to build in more resilience between the regions. So we saw during the covid time if we have only one place of production for a certain product line, it can really jeopardize us in our capability to deliver to our customers. So this is why we are now working on a regional plan in global supply chain to say, let's bring from Asia a certain product line also to Europe so that we can serve the European market or even then to the U.S. As U.S. Now also starts to become more resist or persistence on build build in America. So say so really taking care of the regional resilience and also on on the circumstances which are given also by by the the governments. We are making these adjustments fantastic. Maybe just with with a couple of minutes left. I want to do a bit of a wrap up first thank you to Kenneth Virginie and Barbara for really their insights opening up their smart factories for all of us to experience big thanks to them. Maybe what I've picked up from the conversations is these exemplar lighthouse sites and smart factories they've been developed in a relatively short time period five years 2016 2017 kickoff programs. I think that's amazing. In my years these change programs often take longer. So that's great. So it's very achievable. I think the factories have been established sites but also more green and new build sites. So those of you are thinking of going on this journey. Don't think it's you've got old machines or old assets. It's still an agenda for you to take forward. Sometimes we might think this is a something restricted to certain geographies. We've seen exemplars in Asia in Europe and the States and if you look at the lighthouse program generally it spread over pretty much the whole world. So this smart factory concept applies to everyone. I think for the workforce which really came out from our conversations on the factory floor and through Barbara was that learning takes place at multiple levels. It's within small teams at the site. It's bringing the whole site with you but it's also exchanging between factory sites and with the lighthouse program and other programs between companies. So we're learning the learning journey is not a siloed activity. It's a very open collaboration. So we have teams within factory across factories and indeed across companies. So I think this program is exciting and it's open for all of us to to get on this journey. We are also offering it as a consulting service. So if you would like to have your manufacturing brought on a different level we have a specific practice for this one. Thank you everyone.