Industry 4.

0 at Daimler AG

Submitted to:
Prof. RK Singh
Submitted by:
Harjinder Singh Brar
18PT2-24
Company Information

Daimler consists of five divisions

Industry 4.0 –
The next stage in the industrial revolution
History of production

Increasing customization has increased complexity in production of

Automotive.
Industry 4.0
Five aspects of industry 4.0 at Diamler
 A consistent digital process chain
 A 360° networked, changeable production system
 A consequent use of our product and production data
 An agile production
 An intelligent supply chain
Daimler AG revolutionizes the trucks production in Brazil with 4.0
Industry technologies

• The company inaugurates the new trucks assembly line in São Bernardo do Campo's
plant with employees and technology completely integrated to the 4.0 Industry Pillars

• Digital technology and hyper connectivity ensure high standards of quality and
productivity, further to wide flexibility to meet the customers' needs

• With innovative production and logistic processes, the new assembly line concentrates
the assembly and the parts storage warehouses in a single building

• Employees have had decisive participation in designing the work environment, which
offers better ergonomic and safety conditions

• Concept will be extended to the production of engines, gearboxes, axles and bus
chassis as well as to the Juiz de Fora's plant
 • Mercedes-Benz do Brasil has invested R$ 500 million in the new trucks assembly line
in São Bernardo do Campo's plant

Industry 4.0 implementation plan:

The company has invested R$ 500 million in the new trucks line in São Bernardo do
Campo's plant With last generation equipment, tools and technology items the new
assembly line is the fruit of a contribution of R$ 500 million, invested as from 2015.
There have been three years for the construction of a completely new building, which
concentrates the assembly of trucks, since the light up to the heavy duty units, and the
parts logistics in a modern, integrated, and intelligent production system. In this
pioneering space, the digital technology and the hyper connectivity ensure high
standards of quality and productivity, further to wide flexibility to meet the market
demands.

The employee, by his turn, is fully integrated to the innovative production and logistics
technologies and processes. “After having made the R$ 500 million investment, now it
is time to deliver this fully completed plant to its employees and customers, who will
have products produced with the highest technology level. By the way, the innovative
technologies of the 4.0 industry will be extended to all of our production processes, and
also to the aggregate lines (engines, gearboxes and axles) and to the manufacturing of
the bus chassis in São Bernardo do Campo, as well as the Juiz de Fora's plant, in Minas
Gerais, where we produce cabins and the Actros trucks”, says Philipp Schiemer. “All of
this has been already programmed within the $ 2.4 billion investment that we have
announced recently for the next five years, until 2022”.

The Daimler Group's most modern truck plant

According to the executive, further to revolutionizing the commercial vehicles industry

in the country, the new assembly line is innovative also for the Daimler Group. With
this initiative, one of the most modern truck factory Trucks is being born here in Brazil",
says Philipp Schiemer. “This is a reason of pride, satisfaction, and joy for us all,
employees of Mercedes-Benz do Brasil. It is an historical achievement that has been
reached in spite of the challenges and obstacles brought by the economic crisis through
which Brazil has gone in the recent years. With the investment in our 4.0 Plant, we
reconfirm the confidence of Mercedes Benz in the recovery of the country's economic
growth and sustainability of the commercial vehicles market”.

The digital technology, the hyper connectivity and the storing of big data volumes in the
cloud – elements pertaining to the 4.0 Industry have been widely adopted in the new
Mercedes-Benz trucks assembly line – and are also present in the interaction of the
production area with other areas of the company in São Bernardo do Campo and in the
Juiz de Fora's plant, MG. These characteristics added to the increasingly intense use of
the Internet of things and real time virtual data assessment tools.

The fourth industrial revolution puts, therefore, the company's employees on the control
of the technological items, helping to generate data that in a very close future will be
used to bring more intelligence to the operations. This way Mercedes-Benz is
revolutionizing the manner by which trucks are produced in Brazil. The new trucks
assembly line already brings gains to the company. “It is 15% more efficient than the
previous one in production terms”, says Philipp Schiemer.

Moreover, we will reach a 20% gain in logistics efficiency, thanks to examples such as
the reduction of the part warehouses number from 53 to 6, the increase in the percentage
of direct delivery of parts to the line, from 20% to 45%, and the reduction of the
components storing period from 10 days to a maximum of 3 days. All these items bring
more agility, efficiency, and productivity and make us very enthusiastic about many
other gains that we will have in the constant evolution of this new production plant”.

Full participation of employees since the design phases

Another very important aspect, which deserves acknowledgement, is that the employees
themselves had a decisive participation in the designing of the concept adopted for the
work environment of the new trucks assembly line that offers better ergonomic and
safety conditions, with very positive effects in the productivity. Furthermore, with the
new processes and technologies a significant quantum leap is achieved, for the life of
the employees in their daily activities. Since the project stages, many employees have
been heard about the new trucks assembly line and they continue giving suggestions
constantly, concerning the work methods. “This means, the roads speak and Mercedes-
Benz listens, which is the motto that drives us with regard to our customers. Here inside
our company, the employees speak and Mercedes-Benz also listens to them”,
emphasizes Schiemer. Further to listening to them frequently the company also trains its
staff. All the assemblers and operators are being trained for the new processes and new
work resources and tools which are also from the last generation, with advanced items
that contribute for the improvement of the teams. “If you look at the new work
environment, you will see that it is brighter, more organized, and intelligent. Everything
has been designed to improve the ergonomic conditions for the workers and bring higher
life quality and safety conditions for all of them”, states Philipp Schiemer. “This is why
we made a point in hearing the workers who have been working here since the start of
the project, telling us better than anyone else, what would be best for them. This way,
we are more productive and more efficient to meet the needs of our customers”.

Assembly stands out due to the high technology all over the line

The Mercedes-Benz do Brasil's innovative trucks assembly line calls attention due to the
diversified universe of last generation equipment, tools and technological items, fully
connected. The state of the art technology adopted all over the line, makes possible, for
example, to make available data in real time for several areas of the plant. This means
that this is an assembly line 100% connected with all the production areas of the
company. This has been possible due to the use of a mobile phone App that makes
possible to follow 100% of the production in the new truck assembly line by using a cell
phone. This tool has an interface with the Juiz de Fora's plant and many areas in São
Bernardo do Campo's unit. Furthermore, it will also have interfaces with the other truck
plants pertaining to the Daimler Group. This means that everything can be followed up
in real time by using the application.

“Additionally, all the data generated by the application and also by the equipment items,
such as electronic nut runners and AGVs (Automatic Guided Vehicles), are being stored
in the cloud with the Big Data intelligence. With such data, using the resources of the
Analytics, we can monitor the quality of all our products, detect any fault and even
match the information from Sales with our production systems to make more flexible
our products mix”, explains Carlos Santiago, Vice-president of Operations at Mercedes-
Benz do Brasil. Among the peculiarities of this new truck assembly line there is the
intense use of AGVs. There are over 60 units of these autonomous vehicles that
transport trucks over the line and through the logistics area, in connection with the work
stations where all the components are installed. At the end of the line, after the assembly
completion, the AGV returns to the initial point in an autonomous manner, with perfect
safety conditions, thanks to the many sensors and connections along the circuit installed
at the plant floor. The AGVs are already used in the trucks plant of Juiz de Fora. In São
Bernardo do Campo, as the employees have also suggested ideas for their utilization,
each AGV received the name of a professional, as a tribute to the team.
AGV at Brazilian plant

Another big novelty in the new line are the electronic nut runners, which work with an
automatically programmed torque moment according to each product.
This way, they eliminate errors and ensure the process traceability. There are over 100
new nut runners, which are in variable positions, from the roof, adjusted to the size of
each assembler, ensuring his ergonomic, safety and productivity conditions. During the
whole assembly process the “Paperless” concept is adopted. Instead of paper, there are
over 40 TV screens that guide the assemblers in each work station.

“The reduction is really incredible in the use of paper in this new assembly line. Almost
100% of all processes can be followed up in a digital manner. If the assembler has any
doubt, he can check on the video screen how to proceed. Everything is programmed”,
states Santiago.

At the chassis frame closing, the transport is fully automatic and unprecedented in
Brazil. The innovative process eliminates strains during the transport of the longitudinal
members.

3D Printers:

The use of 3D printers also has been intensified in the new line. This modern and
advanced resource ensures a quick prototype production of the parts, making more agile
the meeting of the demands. The Prototypes Area has one of the most modern 3D
printers. By using it, the testing of new parts with a lower cost and much more agility
has been made possible. In 2017, over 150 3D parts had been created in-house.

Maintenance:

The Support and Maintenance staff members will have in a close future, a new advanced
and high technology work tool. They will have at their disposal, augmented reality
glasses to access the machines manual or specific information about any component. It
will be possible for another member of the staff to see in a computer what they are
seeing. Furthermore, the audio interface will facilitate the communications between
them.
New forklifts:

New forklifts, by their turn, are other highlights of the São Bernardo do Campo's plant
new trucks assembly line. Many cameras guide all the movements of the forklifts
ensuring efficiency and safety in the logistic process of parts, components and sets
supply to the production line. Still within the logistic process, luminous sensors in the
warehouse shelves monitor the incoming and outgoing of materials, feeding with
information the whole line supply chain.

Innovative layout results in best space use

The innovative layout is also a great novelty of the trucks assembly line. Thanks to the
“One roof assembly” concept, all the truck models can be produced in a single building,
with model assembly order flexibility, from the light to the heavy duty units. The
“Fishbone” concept, by its turn, results in a fully integrated warehouse and storage, pre-
assembly and final assembly of parts, optimizing and making more agile the trucks
production process. The unification and vertical integration of the warehouses makes
possible the centralization of the empty packages receiving, distribution and returning.
This brings productivity and efficiency gains, with the reduction of logistic and transport
costs inside the plant. The over 50 old logistic warehouses will be concentrated in 6
Logistic Hubs, fully integrated to the assembly line. Each of them will be close to a
production center. This change brings improvements in the ergonomic and safety
conditions of the staff, further to more rapidity in the production and more agility of the
processes, further to the transport costs reduction. The hubs have a 12 meter height,
equivalent to a 7 floor building. In order to move volumes at such a height, the operators
of the new forklifts have a camera that facilitates to see the shelves. IT systems control
automatically the in and out of materials. “As we can see, we are innovating also in the
use of the space all over our production area”, emphasizes Carlos Santiago. “This way,
we have obtained a wider and more organized work place, which brings benefits in
terms of welfare, ergonomics, and safety for the employees”. The new plant brings
important gains for the environment, contributing to the obtainment of a more
sustainable operation. The energy saving is a good example. A reduction of 56% in the
energy consumption has been obtained with the adoption of LED lights at 100% of the
final trucks assembly line.

Human Robot Corporation:

Advantages:
• Human-robot cooperation makes production changeable
  reduces the complexity of a system by combining the respective strength of human
and machine
 makes systems scalable in their degree of automation and thereby ensures efficiency
where quantities are fluctuating
• Needs less shop floor area
• Quality: accuracy and repeatability is much higher than human
• Cost reduction in long term
• Higher availability
• Daimler increasingly uses HRC applications in series production with
 lightweight robots and
 standard industrial robots

Challenges:
• Despite the tremendous potential involved, there is still a limited availability of
  safety system components (i.e. tools and sensors)
 easy to use operating and programming concepts
 networking and intelligent use of production data
• By lightweight robots:
 Payload is at the moment too small (up to 15 kg.)
 Reach ability is not long enough for some applications (<100cm)
 Business case must be approved
• It is a challenge to find a proper process in an existing production “brown
field”. Use of synergies between automation in the factory and autonomous
driving.
 Increasingly prepared to meet the customers' requests

• At Philipp Schiemer's point of view, with this historical achievement, Mercedes-

Benz do Brasil is increasingly prepared to meet the customers' requests, continuing
with its commitment "The roads speak and Mercedes-Benz listens. “We have
started 2018 with a new plant and a new trucks line, developed practically at the
same time”, says the executive. “I am sure that we are much better prepared to
continue as top of mind for the customers”. With the new trucks assembly line, and
the definitive step ahead aiming at implementing the 4.0 Industry, the company
gets increasingly prepared for the future. “We are already experiencing the future
and it has been designed with the very important participation of our employees.
The new plant is a proof of this”, concludes Philipp Schiemer.