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8th Conference on Learning Factories 2018 - Advanced Engineering Education & Training for
8th Conference on Learning Factories 2018 - Advanced
Manufacturing Engineering Education & Training for
Innovation
Manufacturing Innovation
Integration of Industrie 4.0 in Lean Manufacturing Learning Factories
Integration
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Conference 2017, MESIC Factories
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capacity optimization in(iwb),Industry 4.0: Trade-off
Technical University of Munich, Institute for Machine Tools and Industrial Management (iwb), Boltzmannstr. 15, 85748 Garching, Germany
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Abstract between used capacity and operational efficiency

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1. Introduction
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1. Introduction
value. The trade-off capacity maximization vs operational efficiency is highlighted and it is shown that capacity
"Industriemight
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Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency

* Corresponding author. Tel.: +49-89-289-16587 fax: +49-89-289-155-55.

1. Introductionharald.bauer@iwb.mw.tum.de
* Corresponding
E-mail address:author. Tel.: +49-89-289-16587 fax: +49-89-289-155-55.
E-mail address: harald.bauer@iwb.mw.tum.de
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Education & Training for Manufacturing Innovation.
10.1016/j.promfg.2018.04.008
148 Harald Bauer et al. / Procedia Manufacturing 23 (2018) 147–152
H. Bauer et al. / Procedia Manufacturing 00 (2017) 000–000

digitization trends into the training concept, in order to keep their central role in promoting process orientation in
manufacturing systems (cf. e.g. [3–6]). Hence, the compatibility of the lean philosophy and the new digital possibilities
of I.4.0 need to be investigated. In this contribution, the main principles of lean production are discussed in the context
of increasing digitization. Based on this, five theories are derived and form the requirements for the integration of I.4.0
into the LSP through so-called “I.4.0-challenges”. For this purpose, a procedure for the preparation of I.4.0-challenges
is presented, which supports the concept of problem-based-learning (cf. e.g. [7]) of the LSP. Finally, the
implementation of the challenges in the LSP is described. This paper aims on contributing a promising approach to
enhance the existing training concepts in lean learning factories in order to meet the evolving new requirements in the
context of Industrie 4.0.

2. The LSP Learning Factory for Lean Production

The aim of the iwb’s Learning Factory for Lean Production (LSP) is to teach the principles and the methods of lean
production in a sustainable way. Therefore, the iwb’s learning factory provides a reality-conform production
environment for the assembly of planetary gearboxes. Consisting of seven fully flexible assembly tables, two rack
storage systems, and a comprehensive set of equipment, the LSP represents a flexible, modular assembly system,
which supports the realization of different production structures as well as different material supply strategies. It is
comparable to other learning factories, however, it focuses on flexibility (all equipment is transportable and quick-
adjustable) and is unbiased as to the result.
The didactic concept of the LSP is based on three main steps: (1) Theoretical method training, (2) simulation
games, and (3) the transfer into the real production environment of the learning factory. The methodology training is
embedded in the philosophy of lean manufacturing and starts with the mediation of the lean production’s background
and the Toyota production system. Subsequently, different methods of lean production are trained. In order to illustrate
the theoretical content and to make it perceptible, selected simulation games (2) are carried out. For example, using a
slightly modified version of the Lean Enterprise Institute's Airplane Game shows the difference between push and pull
steering. The transfer (3) begins with an assembly run with a high level of waste within the gearbox assembly’s value
stream. From this starting point, the participants successively try to eliminate the existing waste by changing the
production setting. The improvement’s results are measured during a final assembly run using key indicators as e.g.
delivery reliability. Depending on the available time, different numbers of assembly runs are completed. In this way,
the participants directly notice and experience the improvements, which arise through application of the taught
methods.

3. Lean and Industrie 4.0

3.1. Principles of Lean Management

In literature, numerous approaches explain lean management by different “principles”, “guidelines”, or “rules”.
Based on the values of the Toyota Production System, Womack & Jones [8] derive five general principles: (a) value,
(b) value stream, (c) flow, (d) pull, (e) perfection. These can be supplemented by the principle (f) Respect for People,
which the founders of the Toyota Way regard as a fundamental basis for a trusting cooperation of all employees. In
order to create a later comparability with the developments in the I.4.0, the following section briefly explains these
basic principles of lean production.

(a) Value: according to Womack & Jones [8], the definition of value must always be made from the customer's
point of view. All customer requirements – this means not only of the recipient of the final product, but also
the person who carries out the subsequent manufacturing activity [9] – must be satisfied.
(b) Value Stream: the value stream comprises all steps that are necessary for a product’s creation – from customer
order to delivery [10]. The identification of the value stream significantly increases the understanding of the
process and hence, helps to disclose problems that previously were undetected [11].
(c) Flow: the flow principle fundamentally fulfills the Toyota Production System's guiding principle of customer
orientation by shortening the time from order entry to delivery with clear value stream based production layout.
 Harald Bauer et al. / Procedia Manufacturing 23 (2018) 147–152 149
H. Bauer et al. / Procedia Manufacturing 00 (2017) 000–000

(d) Pull: the Pull Principle implies on-demand service delivery. Customer orders trigger manufacturing processes.
(e) Perfection: perfection through continuous improvement (kaizen) is the guiding principle of lean thinking and
is therefore the core of lean management. The prerequisite for continuous improvement in small steps (Kaizen)
[12] is the existence of standardized, stable and transparent processes.
(f) People & Teamwork: respect for the employees is a central aspect of the lean philosophy. By focus on
teamwork, the available potential of employees is developed.

3.2. Industrie 4.0

According to [1] I.4.0 can be defined as „real time, intelligent and digital networking of people, equipment and
objects the management of business processes and value creating networks“. Goal is to enable people and things to be
constantly connected with each other [13]. Therefore, technologies as the Internet of Things and Services, Cyber
Physical Systems, industrial automation, intelligent robotics, big data analytics, etc. are applied [14] and can be
clustered into technologies, systems, and process relation characteristics [1].

3.3. 5 theories and their importance for the LSP

The combination of lean manufacturing is currently highly discussed in literature. While certain authors describe
lean as basis for the implementation of I.4.0 [15], others see I.4.0 as a completion of lean [16] or as potential for
efficiency increase in lean [17]. Some authors even consider lean principles as changing in order to implement I.4.0
[18]. Within the iwb’s learning factory, five theories concerning the influence of I.4.0 for lean were derived, based on
the principles of lean (see section 3.1) and contents of I.4.0 (see section 3.2) as well as interviews with several lean
managers from different nationalities:
1. The customer is always right!
Highest priority in lean thinking is the customer satisfaction, thus, to provide the customer with the exact value and
quality he demands. Due to digitalization of purchase processes, markets are evolving even faster towards buyers-
markets [19]. Thus, customer influence will keep increasing with the development of I.4.0. Subsequently, the focused
customer orientation of lean think will stay essential – even become more important – in the time of digitalization.
However, new technologies also lead to new customer requirements beside short lead times and 100% quality – e.g.
product traceability through the manufacturing and delivery process – which cannot be provided by manual lean
methods. Emerging customer demands have to be analyzed and lean methods have to be complemented by digital
technologies in order to satisfy said demands.
2. The process stays priority number one!
The base of the lean thinking – process perfection by elimination of waste, continuous improvement, and creation of
“flow” and “pull” – will stay essential for the implementation of I.4.0. A connected, highly-automated non-value
adding process still stays a non-value adding process. However, the methods used for process improvement can be
supported by evolving technologies.
3. Lean and technology complement each other to serve the process!
Methods in order to achieve flow, pull, just-in-time, etc., as for example value stream analysis or poka-yoke can be
substantially optimized and accelerated by integrating I.4.0-technologies. A current example is the application of value
stream analysis in high variant logistic centers [20]. A manual analysis of all components is not feasible. However,
based on time stamps created from barcode scanning at each handling and transport process, value streams can be
generated by data mining algorithms. Furthermore, unusual transport paths as well as excessive inventory are
identified automatically.
4. No continuous improvement without human sense!
Already in 2004 Toyota announced, that they will replace robots with humans, as a lack of process understanding
leads to a lack of continuous improvement [21]. The best way to understand the processes and identify optimization
potential is the inspection of the actual system. However, to be able to suggest and implement continuous
improvements, workers have to acquire knowledge concerning the functions and possibilities of new technologies.
5. Conclusion: Lean is the basis for successful manufacturing services – I.4.0-technologies enable to optimize
its implementation.
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H. Bauer et al. / Procedia Manufacturing 00 (2017) 000–000

As described in the aforementioned four theories, the general principles of lean manufacturing most likely will not
change through the development of I.4.0. However, the specific implementation can be complemented by the uprising
new technologies.
In order to keep the highly practical and problem-based teaching concept within the LSP at the iwb, the goal of this
contribution is to propose a way of integrating I.4.0 topics into lean learning factories. This concept should sensitize
participants for new customer requirements, that cannot be provided by manual lean application, should show
potentials, where implementing lean methods can be complemented and improved with I.4.0-technologies, and give
an advice to easily achieve said customer requirements and method improvement using I.4.0-technologies.
For this purpose, the participants are triggered to develop said three aspects on their own by setting new “I.4.0-
challenges”, which are presented in the following chapter.

4. “Challenges” for I4.0 integration

4.1. General understanding of challenges

Within the LEAN-factory teaching concept a problem-based-learning approach (cf. e.g. [7]) has been applied in an
industry-related environment. Rather than teaching new concepts and solutions relevant for Industrie 4.0 applications
and illustrating how to use them in specific problem situations, the participating group is primarily confronted with a
challenge. More particularly, a problem statement is assigned putting the course participants in a realistic problem
situation regarding the assembly concept of their factory in which first they have to identify what they need to know
in order to apply and further deepen their gained knowledge by solving the stated challenge.
Thus, as challenge in the LSP, we understand customer values, that participants need to provide within their gear
box assembly line. The only support given to participants are hints concerning possible technologies, which might be
useful for the specific challenge.

4.2. Procedure for I4.0 challenge creation

To create I.4.0-challenges for the LSP, a procedure with three consecutive steps is applied (see Fig. 1). First,
customer demands and limits of lean methods, which can be solved by using technologies of I.4.0, are collected by
literature research and expert elicitation. The implementation of each demand and method optimization forms a
challenge’s goal. Secondly, digital technologies that are, on one side, suitable to achieve the derived goals, and on the
other side, applicable without extensive initial training, are identified by market research. Finally, goals and
technologies are further refined towards concrete challenges including the creation of instructions, supporting
documents, etc.

Fig. 1: Procedure for I.4.0-challenge creation.

 Harald Bauer et al. / Procedia Manufacturing 23 (2018) 147–152 151
H. Bauer et al. / Procedia Manufacturing 00 (2017) 000–000

5. Implementation within the LSP

In the following, two of the recently developed challenges are shortly presented, explaining the respective goal,
problem statement, feasible approaches and achievable results. Ancillary tools and ideas are provided to the group to
incent their creativity and sharpen problem-solving skills before facing them. AppSheet (www.appsheet.com) for
example is a free web service to quickly design and instantly implement small applets, following the idea of wrap-ups
and physical prototypes.

“Traceability Challenge”
Goal: gaining full transparency on the assembly process
Problem statement: the customer demands full transparency on the assembly process regarding the following three
aspects: (a) what parts have been used in the product, (b) when have the parts been assembled by whom, and (c) when
is the product expected to be delivered. The customer is willing to pay a higher price for the product, depending on
the level of transparency the assembly line can provide (a-c).
Potential approaches: a pre-kitting concept could help to keep track of the assembled parts and guarantees
consistency and simplicity in the assembly line. Traceability could be achieved by manually tracking all used parts
and furthermore supported and by a tracking tool.
Ancillary Tools: AppSheet, bar code scanner and printer, rapid prototyping facilities
Example: a recent group used an applet to break down customer orders into picking lists, guiding the logistics
specialist through the parts supermarket to equip standardized boards. These boards carrying the right parts for the
customer order were then placed at the assembly line. During the picking process parts ID’s were registered and stored
in a database. Each assembly step is traceable through a manual time stamp by the respective employee. Furthermore,
the applet calculates delivery times depending on these time stamps, lead times, and customer order data.

“Demographic Change Challenge”

Goal: integration of a handicapped person into the assembly line
Problem statement: demographic change necessitates an adaption of the equipment, processes and assistive tools in
assembly lines in order to compensate handicaps. Depending on the grade of handicaps, the group achieves to
compensate in the assembly line, the selling price of their products is subsidized by a public social fund.
Potential approaches: dynamic and individual assembly assistance tools and respective visualization, adaptions of
assembly equipment and tools, as well as customized assembly process all contribute to compensate individual
limitations of the employees (physical, mental, lingual, skill-related). While some handicaps can be simulated by a
special gear used at the institute for teaching purposes (human related production), some have to be imagined and the
jury decides based on the underlying compensation concept.
Ancillary Tools: AppSheet, camera-based assembly tracking, individual floater support concepts, visual and auditory
equipment
Example: recent groups compensated visual and auditory handicaps by developing and implementing individual and
dynamic visualization of production orders on each assembly station based on the respective handicap. Further they
adapted the assembly sequence in order to focus delicate steps on experienced employees.

Results: the proposed procedure is a generic approach for the training of I.4.0 competencies in learning factories by
creating new challenges (cf. chapter 4.2). In the first piloted trainings respectful results were achieved. The groups
showed great performance in adapting to the problem situation. They developed skills and gained knowledge
autonomously in order to solve the challenge. The Traceability Challenge for example forced the participants to an
inquiry based approach. What data can be used and how should it be gathered to create an added value for the
customer? On this basis they developed new skills in data management and technologies to gather it. Further, they
learned how to make application prototypes by using tools like AppSheet.
152 Harald Bauer et al. / Procedia Manufacturing 23 (2018) 147–152
H. Bauer et al. / Procedia Manufacturing 00 (2017) 000–000

6. Conclusion

Industrie 4.0 is referred to as an umbrella term for various digital concepts e.g. IoT, CPS, Big Data, Data Analytics,
Digital Twin, Digital Shadow, HRC, etc. Said concepts may not change the general principles of lean production,
however, are seen to be promising complements for the successful and holistic implementation of lean methods. In
this paper, the interaction of lean production and I.4.0 is summarized in five theories and implications for today’s
learning factories are derived. The central message of lean remains: the process commands all activities and
technologies to shorten lead times and reducing waste. New applications of using the information that make processes
clearer or more transparent to the process user or engineers are potential supportive tools. Based on this, the goal of
the integration of I.4.0 into the iwb’s learning factory is to sensitize participants for the high potential of digital
technologies concerning their support of lean. Therefore, a problem-based learning approach in the form of “I4.0-
Challenges” is applied. Said challenges are derived from customer requirements that cannot be fulfilled be applying
lean basics only. The participants have to create new solutions by gaining knowledge autonomously and using
ancillary I.4.0-tools in order to meet the customer requirements within the LSP’s gearbox assembly line. In particular,
two recently developed challenges – “Traceability” and “Demographic Change” – were successfully integrated and
tested within the iwb’s learning factory. These exemplary cases demonstrated the effectiveness of the applied approach
to further develop teaching concepts in the context of Industrie 4.0.

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