Internet of Production

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TURNING DATA INTO SUSTAINABILITY

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INTERNET OF PRODUCTION TURNING DATA INTO SUSTAINABILITY

Editors:

Aachen Machine Tool Colloquium AWK

Thomas Bergs

Christian Brecher

Robert Schmitt

Günther Schuh

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Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliogra- fie; detailed bibliographic data are available in the internet at http://dnb.ddb.de.

Thomas Bergs, Christian Brecher, Robert Schmitt, Günther Schuh (Eds.):

30th Aachen Machine Tool Colloquium 2021

Internet of Production – Turning Data into Sustainability Further contributors:

Susanne Krause, Alexander Kreppein, Christian Lürken, Markus Meurer, Heidi Peters, Michèle Robrecht, Stefanie Strigl

1^st edition, 2021

Apprimus Verlag, Aachen, 2021

Wissenschaftsverlag des Instituts für Industriekommunikation und Fachmedien an der RWTH Aachen

Steinbachstr. 25, 52074 Aachen

Internet: www.apprimus-verlag.de, E-Mail: info@apprimus-verlag.de

ISBN 978-3-86359-995-9 DOI: 10.24406/ipt-n-640533

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Foreword of the professors

Foreword

Over the past 100 years, industrialization has affected almost all sectors of the economy and is characterized by continuous cost optimization, time savings and quality improvements. However, the resulting overproduction, which makes perfect economic sense, has led to a rapid increase in resource consumption and CO2 emissions. Although large sections of the population can now afford to own purchased goods such as clothing, appliances, vehicles, machinery or infrastructure without using them, the production of these goods consumes energy and raw materials, the recovery of which is often impossible.

This capital- and resource-intensive productivity thinking is now being overtaken by the future image of a more ecologically minded society. As a result, the capital market is also shifting its focus: away from the capital-intensive business models of industry. Accordingly, the attention of investors is turning to environmental, social and corporate governance issues that are forcing manufacturing companies to make fundamental changes.

At many points in production, we are reaching the limits of our knowledge with conventional methods, technologies and processes. However, digitization is now empowering us to transcend these limits. The better we know our complex processes and their boundary conditions, the more soundly we can name the true costs of our products, save valuable resources and reduce emissions.

To continuously optimize production, we need to incorporate data on demand, development, (series) production and the use of goods into product design and production planning. The assessment of companies' performance will shift significantly in all manufacturing industries in the coming years. As a result, companies are now required to evaluate and optimize their range of services and value creation based on the three sustainability-related areas of corporate responsibility: Environment, Corporate Social Responsibility and Corporate Governance. We see the so-called Internet of Production (IoP) as the most powerful enabler of such a production turnaround: the end-to-end digitization and networking of machines and plants within the production and value chain.

The IoP intends to help manufacturing companies achieve greater sustainability, efficiency, productivity, quality and competitiveness. Reliable availability of data, information and knowledge, at any time and any place, is considered one of the most important promises of Industry 4.0 and at the same time forms the basis for transparency along all product life cycles and value creation stages. This can help to ensure that production is ultimately oriented to the actual customer requirements and needs.

Not at least due to the effects of the corona pandemic, which affects many manufacturing companies and changes the global economy in the long term, trend-setting questions arise around the future of production technology. Under the guiding theme of "Turning Data into Sustainability," we addressed these questions at the 30^th Aachen Machine Tool Colloquium (AWK) on September 22 and 23, 2021, in collaboration with top-class teams of experts from industry and science: Together, we want to sharpen the entrepreneurial view into the future that the production turnaround towards a sustainable productivity can succeed. Our goal - and also the message of this conference volume - is to put companies in a position to deal successfully with drastic crises and to be able to operate profitably again in a short time and

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Internet of Production – Turing Data into Sustainability

at the same time more sustainably than before. The approaches of the Internet of Production, which are already available and in some cases have already been well tested, can prove to be valuable tools here.

The AWK'21 is a renowned network meeting and hybrid information hub at the same time.

Accompanied by an international top-class lecture program and with thematic tours through the hosting research facilities - on site in Aachen as well as online - the conference offers a comprehensive insight into the trends of applied research and development for experts and executives from industry and science.

This compendium continues the series of AWK lecture volumes. We are pleased to make the results of our expert teams available to a wide range of interested parties. And we thank all those who have contributed with their extraordinary dedication to the discussion as well as to the preparation of the lectures and the contributions in this book.

Aachen, September 2021

Prof. Dr.-Ing. Thomas Bergs MBA Prof. Dr.-Ing. Christian Brecher

Prof. Dr.-Ing. Robert Schmitt Prof. Dr.-Ing. Dipl. Wirt.-Ing.

Günther Schuh

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Plenary

TURNING DATA INTO SUSTAINABILITY

Securing Future Competitiveness by Sustainable

and Resilient Production

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Decarbonize | Digitalize | Capitalize: The future of the metals industry

Plenary talk

Decarbonize | Digitalize | Capitalize:

The future of the metals industry

Prof. Dr.-Ing. Katja Windt

Member of the Managing Board, CDO, SMS group GmbH Year of birth:

1969

Current position:

since 01/2018 Member of the Managing Board, CDO, SMS group GmbH, Düsseldorf

since 06/2019 Member of Board of Governors Technion, Israel Institute of Technology, Haifa

since 02/2018 Adjunct Professor of Global Production Logistics, Jacobs University gGmbH

since 06/2016 Member of Leopoldina - The German National Academy of Sciences since 07/2012 Member of acatech - The National Academy of Science and

Engineering

Previous positions:

02/2014 - Jan 2018 President and Managing Director of Jacobs University Bremen gGmbH

01/2013 – 01/2014 Provost and Vice President, Jacobs University Bremen gGmbH 02/2008 – 01/2018 Professor of Global Production Logistics,

Jacobs University Bremen gGmbH

04/2001 – 11/2007 Departmental Manager at BIBA (Institute of Production and Logistics, Bremen)

Studies:

06/1995 – 06/2000 Doctorate (Dr.-Ing.) at the Institute of Production Systems and Logistics (IFA), Leibniz University of Hannover

04/1992 – 09/1992 Visiting Scholar at Massachusetts Institute of Technology/USA 10/1988 – 04/1995 Studies of Mechanical Engineering with focus on Production

Technology, Leibniz University of Hannover, Germany

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Decarbonize | Digitalize | Capitalize: The future of the metals industry

Decarbonize | Digitalize | Capitalize: The future of the metals industry

K. Windt, Member of the Managing Board, CDO, SMS group GmbH

Abstract

Reducing the global carbon footprint in increasingly complex and volatile markets requires a new way of thinking, a willingness to change, and the use of disruptive technologies. SMS already offers not only new processes and plants for the production of high-performance materials in the field of metallurgy, but also the learning steel plant that features digitalized and networked processes as part of Industry 4.0, "additive metal manufacturing" solutions, and sustainable, innovative environmental technologies. SMS group's "New Horizon" initiative aims to develop innovative product and production solutions for the metals industry and apply proven SMS solutions in business areas that are facing similar technological challenges and changes. In this way, SMS group is also pushing into adjacent industries, such as energy and port logistics.

The use of new technologies is interesting for companies in the steel industry from both an economic and an ecological perspective: hydrogen is set to replace carbon as a reducing agent and energy carrier, so steel production in future will generate significantly lower CO2 emissions. At SMS group, MIDREX® technology, which is manufactured by Midrex and is the world's leading technology in the direct reduction of iron ore, is what makes this possible. A new feature is that hydrogen is used as a reducing agent instead of natural gas. The direct-reduced iron (DRI) produced in this way is further processed into green crude steel in the electric arc furnace using green electricity. As such, hydrogen plays a crucial role in the production of green pig iron. A requirement here is that the power used for melting in the electric arc furnace and for producing the hydrogen by electrolysis is produced without any CO2 emissions.

Through its subsidiary Paul Wurth, SMS group holds a stake in the start-up SunFire, which develops plant and equipment for the production of renewable technical gases and fuels and is one of the most innovative companies in the world in the field of hydrogen production using high-temperature electrolysis. As e-gas, e-fuel or e-chemicals, these substitutes for conventionally produced hydrogen, crude oil and natural gas are replacing fossil energy sources in existing infrastructures.

Predicting the future with digital solutions

Resource-efficient and sustainable production processes are now playing an increasingly important role in manufacturing industries. High plant availability and maximum product quality are essential performance indicators in plant operation. Artificial intelligence (AI) and machine learning (ML) have made huge progress in recent years and are being utilized in industrial manufacturing to attain these goals. When plant expertise, process modeling experience, and cutting-edge data science are intelligently combined,

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Decarbonize | Digitalize | Capitalize: The future of the metals industry improvements in predictive maintenance, quality, production planning, and energy management can be achieved, thereby increasing a steel plant's profitability. With digital solutions that reduce the need for on-site personnel deployment and with climate-friendly solutions for CO2-free steel production, SMS group, together with its digital subsidiary SMS digital, is equipped to meet the ever-increasing demands of sustainable industrial production.

With its highly dynamic process chain, cutting-edge production equipment, and process technologies for high-quality steel products, a steel plant generates enormous amounts of data. This data is of enormous importance for various types of performance evaluation and system adjustments. However, data should always be linked to added value services, which is why data silos and historically evolved structures must be eliminated. Here, the SMS DataFactory provides the basis for turning data into information and, in turn, information into added value. It is only by interconnecting and evaluating all parameters that the learning steel plant is able to interact continuously and to coordinate and optimize the process flow to the extent required by the customer. Insights into the plant condition and process performance and their influence on product quality and operating costs can now be gained.

Manufacturing industries attribute a significant portion of their overall costs to energy and resources. A single plant may have dozens of energy input sources, which must be carefully balanced to ensure a cost-effective and environmentally sound energy matrix.

Inaccurate energy forecasting and planning as well as poor costing and ineffective management workflows provide fertile ground for smarter, digital management solutions that can reduce energy and resource consumption while improving the efficiency, planning, and management of the plant and its operation. To optimize the energy balance throughout the whole production process, reduce CO2 consumption, and minimize the use of resources, energy optimization tools such as the Viridis Energy & Sustainability Platform are utilized. Viridis aims to optimize not only the throughput and quality but also energy-related costs, raw material input, and even carbon and greenhouse gas and waste emissions by using energy performance indicators of levels 2 and 3 as well as artificial intelligence and machine learning algorithms. In turn, these indicators provide information for production planning and quality management software that ensure the relevant parameters are taken into account during ongoing and future production processes and enable production planning to be as efficient and eco-friendly as possible. Viridis helps companies to achieve ISO 50001 standardization and drastically reduce operational, auditing, and maintenance costs. With more than 300 features in the system, Viridis can implement and operationalize every practice and definition of the standard, enabling a significant number of related actions to be executed automatically and thus further enhancing team productivity. The energy certification not only contributes to maintaining the company’s energy efficiency and energy management policies in the long term, but also involves a serious commitment to society and the environment.

New business models offer maximum flexibility

While many current digitalization projects focus mainly on improving an existing process, disruptive changes can be expected to take place increasingly on a business level. In terms of business operations, digital transformation is set to significantly change how companies interact today. Equipping a steel plant for digitalization improves the EBITDA margin by between six and eight percent. However, digital services in the context of the learning steel plant often require alternative pricing models. Instead of a product, the customer is offered a solution and a corresponding value proposition. That is why SMS

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Decarbonize | Digitalize | Capitalize: The future of the metals industry group offers different pricing models: Conventional contracting and software licensing, software-as-a-service (SaaS) and equipment-as-a-service (EaaS) contracting, and performance-based contracting. Performance-based business models open up potential for converting CAPEX into OPEX for customers and for reducing investment costs. With SaaS, the necessary tools can be provided to enable fully networked cooperation in a cost-effective manner. Furthermore, configuration settings can be changed, and the software can be adapted to individual requirements within certain parameters. The goal here is to operate plants in the most economically successful way. Consequently, resource-efficient and energy-saving operation is crucial. The equipment will incorporate self-diagnosing capabilities and offer a sophisticated response to spontaneous changes.

This allows plant operators and employees to concentrate far more on operational and strategic tasks and to have complex technological tasks performed by machines. In the end, digitalization will guide industries into a green future.

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Shaping sustainable aviation through revolutionary aero engines

Plenary talk

Shaping sustainable aviation through revolutionary aero engines

Lars Wagner

Member of the Executive Board (COO/ CTO), MTU Aero Engines AG

Year of birth:

1975

since 2018 Member of the Executive Board (COO/ CTO), MTU Aero Engines AG, Munich

2015-2017 Executive Vice President, OEM Operations,MTU Aero Engines AG, Munich 2011-2015 Head of Long Range Fuselage, Vice President, Head of A350 Fuselage

Operations, Vice President,Airbus Operations GmbH, Hamburg 2009-2011 Senior Director Strategy Integration,

Airbus Central Entity, Toulouse (France)

2009 Task Force A400M Fuselage Recovery Program, Airbus Bremen, Seville (Spain)

2006-2009 Head of Overall Aircraft Mass Properties,

Airbus Hamburg, Bremen, Toulouse (France), Filton (UK), Madrid (Spain) 2003-2006 Executive Assistant to the Plant & Site Manager,Airbus Bremen

Studies:

2003 Studies at Collège des Ingénieurs, Paris (France)

Graduation with a Master’s degree in Business Administration (MBA) 1997-2003 Studies in Mechanical Engineering and in Aeronautical Engineering at

RWTH Aachen University, Imperial College London (UK), and Massachusetts Institute of Technology (U.S.)

Graduation with the title of Diplom-Ingenieur (Dipl.-Ing.)

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Shaping sustainable aviation through revolutionary aero engines

Shaping sustainable aviation through revolutionary aero engines

L. Wagner, Member of the Executive Board (COO/ CTO), MTU Aero Engines AG

Abstract

Times couldn't be more exciting for the aviation industry. Even before the Covid-19 crisis, transformation was imminent. Climate change and the necessity to stop it dominated the public discourse. As an aero engine manufacturer, MTU has always strived for and delivered more efficient engines with every new generation - for both ecological and economic reasons. Noise reduction has also always played an important role in MTU’s product development strategy. In 2016, the geared turbofan again raised the bar in terms of a highly efficient, clean and quiet engine. But now the aviation industry is at a turning point: the evolutionary development of known engine concepts is insufficient for a complete emission-free aviation industry. It is time to develop ambitious, revolutionary engine concepts, as power plants provide the largest potential for this goal by far.

Within the next years, an enhanced geared turbofan will increase efficiency by approximately ten percent, but even this technology will then reach its limits. Traditional aero engines based on gas turbines have been the recipe for success in aviation for decades – offering the major advantage of being adaptable and scalable for all thrust levels and ranges. In the context of an emission-free aviation world however, the idea of one single propulsion concept for all applications will have to be abandoned. In the future, there will be (hybrid-) electrical engines, fuel cells and efficient gas turbines. In order to operate the latter in a climate neutral manner, it is crucial to foster the production of sustainable aviation fuels (SAFs). The technology already exists, and its suitability for existing engines has been proven in several pilot tests. However, there is no infrastructure in place yet to produce SAFs or the necessary hydrogen in sufficient amounts. In the coming years therefore, establishing a supply chain on an industrial scale will be a major focus.

Alongside the challenges of developing new products, the aviation industry is also entering the digital age. Digital transformation offers promising possibilities for an intensified end-to-end focus, from early product development and production aspects to fleet monitoring and maintenance. The inclusion of internal as well as external suppliers into the digital landscape and respective IT-systems will play an ever more important role.

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Shaping sustainable aviation through revolutionary aero engines The manufacturing process will see an increasing level of automation – all the way up to becoming a completely smart factory. In this context, smart solutions by machinery and equipment constructors will be needed for the effective analysis of machine data and for self-optimizing production processes.

We will start this new era of emission-free flying with the most advanced technologies for our production processes and our products.

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Empowering Autonomous Future – Can Data Save the World?

Plenary talk

Empowering Autonomous Future – Can Data Save the World?

Ola Rollén

President and Chief Executive Officer, Hexagon AB

Year of birth:

1965

since 2000 President and Chief Executive Officer, Hexagon AB

Prior to joining Hexagon, Rollén held the positions of President of Sandvik Materials Technology, Executive Vice President of Avesta-Sheffield and President of Kanthal. He also previously served as a board member of Vestas Wind Systems A/S

Studies:

until 1989 Stockholm University

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Empowering Autonomous Future – Can Data Save the World?

O. Rollén, President and Chief Executive Officer, Hexagon AB

Abstract

Thirty years ago, who could have imagined the theme of the 30th Aachen Machine Tool Colloquium theme - Turning Data into Sustainability – and just how high the stakes would be? For nearly two years, the world has been locked in battle with one of history’s deadliest pandemics. And yet, as devastating as it's been, the damage that humanity has inflicted on the environment in the same timeframe – inefficiency, waste, unsustainable growth – is threatening our very existence.

The future is governed by how the present manages the past

While many companies talk about achieving carbon neutrality by 2050, we believe we must address this crisis today. We can’t let perfection be the enemy of good. Conventional wisdom says that unless we slow our pace of CO2 emissions by 2050, we’ll cause irreversible damage to the environment. I would suggest that 2050 is the “year of too late”.

The shifts we bring about between now and 2030 are what will determine our fate. We have exhausted our margin for error over the past decades, and humanity will soon be consuming the resource equivalent of three earths.

Deus ex machina: How data can save the world

We await a deus ex machina, a term from Greek and Roman plays, when a god was lowered by crane (the “machine”) onto the stage to save the day from an impossibly hopeless situation. While we have no gods at our disposal to bring to the stage at this desperate hour, we do have two inexhaustible resources that give us great hope: data and human ingenuity.

The truth is, we have ten times more data than we had just a few years ago, so why are we not ten times more efficient, productive, and sustainable? Because we are not putting the data to work.

We know that harnessing the power of practically unlimited data is fraught with complexities of epic proportions. It’s easy to get caught in a web of untouched, unleveraged, unanalyzed data. If companies are to truly use data as a competitive advantage, they must be able to put it to work autonomously, behind the scenes, without the aid of human decision-making.

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This goal is worthy of pursuing with our entire focus and energy – to help the world put data to work to empower a new reality: a future where data is leveraged beyond simple automation of tasks to become increasingly autonomous to help us achieve our sustainability goals.

Many limit autonomy to something that will drive our cars. We believe it will do so much more. It will protect our cities. It will improve our climate. It will make fossil fuels cleaner, mining safer, manufacturing more efficient, buildings smarter, and our children’s future brighter.

This is how data can be transformed into sustainability. Autonomy is data at its best, most advanced and valuable state. It is the ultimate form of data leverage. It will be unleashed by your ingenuity and your courage to make a break from the status quo. It will lead to greater efficiency, productivity, quality, and most importantly, sustainability at scale.

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Intelligent production as key success factor in a sustainability strategy

Plenary talk

Intelligent production as key success factor in a sustainability strategy

Dr. Stefan Spindler

CEO Industrial, Schaeffler AG

Year of birth:

1961

since 2015 CEO Industrial, Schaeffler AG

2012-2014 Member of the Executive Board and Head of the Business Unit Mobile Applications, Bosch Rexroth AG

2010-2012 Member of the Executive Board and Head of the Business Unit Renewable Energies, Bosch Rexroth AG

2009-2010 Board Member/Chief Technology Officer, MAN Diesel & Turbo SE

2002-2009 Board Member/Business Units Power Plants and Marine Medium Speed, MAN Diesel SE

2000-2002 Head of Engines Product Division & Chief Technology Officer, Liebherr Machines Bulle S.A.

1986-1999 Various positions, MTU Motoren- und Turbinen-Union Friedrichshafen GmbH

Studies:

1992 Doctorate (Dr.-Ing.), Internal Combustion Engines and Automotive Technology

1986 Diploma (Dipl.-Ing.), Mechanical Engineering

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Intelligent production as a key success factor in sustainability strategy

Intelligent production as a key success factor in sustainability strategy

S. Spindler, CEO Schaeffler Industrial

Abstract

Sustainability along the industrial value chain makes a critical contribution to business success and is a distinguishing feature of rising importance. Especially in those processes that require major inputs of raw materials and energy, intelligent production and process control are critical steps on the road to carbon-neutral production.

Taking the entire value chain – from raw materials all the way up to the end-customer – into account, sustainability measures in production are critical for raising energy efficiency and attaining ambitious CO2-reduction targets. Moreover, the circular economy – that is, the re-use and recycling of materials – will increasingly take center stage. Circulation between producers and suppliers, and between product manufacturers and end-users is increasing. Some simple examples of this are re-use of packaging, optimizing logistics and refurbishing products at the end of their service life. Furthermore, substantial changes in how raw materials are produced will occur. These changes will be driven by the dual forces of decarbonization and economics. The carbon-footprint of the processes involved in raw materials production must be shrunk dramatically. One example of this is using natural gas and hydrogen in iron ore smelting as a substitute for coal. As these changes occur, global competitiveness will place even more pressure on the cost of materials.

In its sustainability strategy, Schaeffler has defined seven fundamental targets along the value chain. With concrete measures for CO2-neutral production by 2030, a 20%

reduction in fresh water use by 2030, a 100 GWh increase in energy efficiency, and by drawing 100% of energy supply from renewable sources by 2024, Schaeffler aims at a disciplined implementation of climate-friendly measures in the own value chain.

Furthermore, the company has set ambitious targets for its suppliers CDP-climate scores and sustainability self-assessments (SAQ).

Another essential aspect of the strategy is employee safety: by 2024 a 10% reduction in the annual accident rate is targeted. Because increasing energy efficiency is so central to sustainability, some exemplary measures at the Schaeffler sites in Schweinfurt, Germany and Elgoibar, Spain will be revealed.

The production facility in Schweinfurt is the headquarters of the Industrial division and one of the leading plants in the production network. In Schweinfurt more than 5,000 people develop and manufacture a broad spectrum of components, ranging from high- precision special bearings to standard bearings and large size bearings for wind turbines.

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Intelligent production as a key success factor in sustainability strategy In addition, strategic growth fields like robotics, mechatronics and digital services are expanded. Success-critical technologies range from forging and grinding all the way through to coating and assembly. The Schweinfurt plant consumes as much energy as a city of 120,000 inhabitants. Roughly half of this energy is consumed in heat treatment and forging processes. The heat treatment is a decisive factor for performance and service life of bearings during operation. The energy these processes demand depends on the material used for the bearings and the component size. Connectivity and adding sensors to the forge enable the creation of intelligent simulation models to identify unfavorable production sequences and automatically optimize production planning.

The plant in the northern Spanish town of Elgoibar manufactures rollers for needle roller bearings. With the invention of the cage-guided needle roller bearing, Dr. Georg Schaeffler set the cornerstone for his company. This product has been further refined over the decades and continues to be a central pillar of the business. Key success factors are high-precision forming, grinding and polishing technology in combination with a continuous increase in productivity. For the polishing and washing processes, the Elgoibar facility consumes some 122,500 cubic meters of water per year – enough to fill about 50 Olympic-sized swimming pools. During polishing, the semi-finished needles are processed for several hours with a water-based polishing agent (containing approximately 100 liters of water) in a polishing drum. Once this manufacturing step is finished and the drum is cleaned, the washing process in the washing-drum begins to flush out any remaining particles. This process requires up to 3,000 liters of water. The plant in Elgoibar operates a total of some 160 polishing and washing drums. By making adjustments to the manufacturing process and water treatment units, the facility is able to re-use about 60% of the water it consumes. A new water treatment system is expected to increase the water recycling rate to 100%. Elgoibar is a role model in the Schaeffler production network: Schaeffler has already achieved CO2-neutral production there.

Comparable and even more comprehensive measures, such as demand-driven compressed air production, are being implemented in all plants and facilities depending on the focus of the applied technologies.

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More Value for Our Future

Plenary talk

More Value for Our Future

Saori Dubourg

Member of the Board of Executive Directors of BASF SE

Year of birth:

1971

since 20xx Member of the Board of Executive Directors of BASF SE, Ludwigshafen, Germany

2013-2017 President, Nutrition & Health, BASF SE, Lampertheim, Germany.

2009-2013 President, Asia Pacific, BASF East Asia Regional Headquarters Ltd., Hong Kong

2009 Senior Vice President, Global HR-Executive Management & Development, BASF SE, Ludwigshafen, Germany

2008-2009 Senior Vice President, Senior Project Leader Diversity & Inclusion, BASF SE

2004-2008 Director, Business Management Europe, BASF AG

2002-2004 Manager Fibre Bonding Business & Controlling, BASF South East Asia, Singapore

2001-2002 Staff of a Member of the Board of Executive Directors, BASF South East Asia, Singapore

2000-2001 Senior Manager, E-Commerce Dispersions, BASF AG 1999-2000 Project at BASF Japan Ltd, Tokyo, Japan

1998-1999 Project at BASF Corporation, Charlotte, North Carolina, USA 1997-1998 Manager, Global Strategy Dispersions, BASF AG

1996-1997 Regional Marketing Europe, BASF AG

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More Value for Our Future

More Value for Our Future

S. Dubourg, Member of the Board of Executive Directors of BASF SE

Abstract

The world is at a turning point towards a resource-efficient economy.

Europe, as a pioneer and with the decision for its own sustainable transformation under the grand heading "European Green Deal," has not only presented the most ambitious climate program worldwide, but at the same time a strong political vision.

However, the Green Deal is not just about putting the European Union in order in terms of climate policy. Rather, it is about aligning the European economy to become a strong player for sustainability in global competition.

This involves mobilizing trillions in investment funds that far exceed the dimensions of the Marshall Plan. This is a responsible, intergenerational and challenging task. It will require not only massive investments in infrastructure, new technologies and innovations, but also new management concepts that go beyond the classical approaches and business management of the last century.

With the Value Alliance, BASF and other partners are developing an approach that provides a new perspective on corporate value creation. This attempts to provide an answer to the central question: What is the smartest way to combine macroeconomic profit optimization and resource efficiency? It assesses the economic, environmental and social impacts of corporate actions along the value chain.

The future of business, its importance and acceptance, and its global competitiveness are closely linked to its ability to grow in a resource-efficient way. That's why we need to start setting global standards now and investing in the right markets of the future.

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Sustainability through a holistic view of flexible sheet metal processing

Plenary talk

Sustainability through a holistic view of flexible sheet metal processing

Dr. Heinz-Jürgen Prokop

Member of the Executive Board and

Chief Executive Officer Machine Tools (CEO MT), TRUMPF GmbH + Co. KG

Year of birth:

1958

since 2017 Member of the Executive Board and

Chief Executive Officer Machine Tools (CEO MT), TRUMPF GmbH + Co. KG

2012-2017 Managing Director Development and Purchasing, TRUMPF Werkzeugmaschinen GmbH + Co. KG

2007-2011 Managing Partner, Frigoblock Grosskopf GmbH, Essen 2002-2006 Chairman and CEO, Fritz Studer AG, Switzerland

Studies:

1988 PhD in Engineering (Dr.-Ing.) at Stuttgart University Institute for Machinery Elements and Design

until 1985 studied Process Engineering at Stuttgart University

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Sustainability through a holistic view of flexible sheet metal processing

Sustainability through a holistic view of flexible sheet metal processing

H.-J. Prokop, Member of the Executive Board and Chief Executive Officer Machine Tools (CEO MT), TRUMPF GmbH + Co. KG

Abstract

Achieving climate neutrality and acting in a resource-saving manner is a key challenge for all of us in the coming decades. It affects each of us individually as well as companies.

Many companies have therefore already formulated their climate strategy.

Since the end of 2020, TRUMPF's production has been CO2-neutral and it has made a commitment to the Science Based Target Initiative to implement further measures on the 1.5-degree reduction path of the Paris Climate Agreement. For example, the emissions of all products worldwide will be reduced by 14 % by 2030.

In order to achieve these global goals, investments and the development of know-how are necessary. Since machine tools contribute significantly to CO2 emissions, we, as manufacturers, also have a responsibility to support our customers in achieving their climate targets. Progress can be made in three areas in particular:

1. Machine tools have to be designed to be as energy-efficient and resource-saving as possible.

To achieve this, machining technologies have been optimized for low CO2 emissions and algorithms and services have been created to ensure low-failure operation of the machine tool.

2. Solutions have to be developed that help to make customers' value chains largely disruption- and waste-free.

New sensor solutions avoid rejects, production control systems receive real-time data of all material movements through positioning systems, thus creating closed control loops.

3. The manufactured products have to be produced with the most energy-efficient process and with the least possible material usage.

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Sustainability through a holistic view of flexible sheet metal processing One of the largest contributors to CO2 emissions in the metal processing industry is the use of materials for manufactured products on machine tools. Emissions can be reduced to a considerable extent through appropriate choice of materials, low-material design and selection of the manufacturing process.

Data analysis and artificial intelligence provide valuable support in all three areas in order to get closer to the respective optima. In the process, ecology and economy go hand in hand in an impressive way.

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Sustainable Operations

Plenary talk

Sustainable Operations

Dr. Christina Reuter

Head of DDMS Program at Operations, Airbus Defence and Space

Member of Supervisory Board of KION GROUP AG

Year of birth:

1985

since 2020 Head of DDMS Program at Operations, Airbus Defence and Space (since 09/2020 in parental leave)

since 2016 Member of Supervisory Board of KION Group AG

2019-2020 Head of Operations for Space Electronics, Airbus Defence and Space 2017-2018 Head of Central Manufacturing Engineering and Operational Excellence,

Space Equipment, Airbus Defence and Space

2014-2016 Head of Department of Production Management, Laboratory for Machine Tools and Production Engineering (WZL), RWTH Aachen University, 2014-2016 Senior Trainer, Lean Enterprise Institut

2012-2013 Head of Research Group Production Logistics, WZL, RWTH Aachen University

2010-2013 Project Manager, Scientific Research Assistant, WZL, RWTH Aachen University

Studies:

2010-2014 Graduation to Dr. Ing., WZL, RWTH Aachen University

2008-2009 Master in Industrial Engineering, Tsinghua University (Beijing, China) 2004-2010 Diploma in Industrial Engineering with focus on Mechanical Engineering,

RWTH Aachen University

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Sustainable Operations

Sustainable Operations

C. Reuter, Head of DDMS Program at Operations, Airbus Defence and Space

Abstract

Airbus has defined its purpose as follows: "We are pioneers of sustainable aerospace for a safe and united world." Sustainability has a double meaning. On the one hand, it means for Airbus to be a sustainable, competitive and future-oriented company. On the other hand, sustainability is understood as the ambition to minimize the impact on the environment and to shape the way for a sustainable global travel. Sustainability does not only refer to environmental protection but has a broader meaning. The United Nations defines sustainability as "meeting the needs of the present without compromising the ability of future generations to meet their own needs".¹ Airbus follows this understanding of sustainability and takes into account the dimensions of environment, social, economic and governance.

The corporate purpose described above is brought to life through the strategy of the company and the divisions of the Airbus Group. This article refers to the Defense and Space division. The products and solutions of the Defense and Space division support govern- ment authorities, emergency service provides and healthcare providers in protecting and defending citizens around the world and provide communication, collaboration and intelligence knowledge solutions. For example, earth observation satellites help to gain a better understanding of climate change.

In the keynote, various examples within Operations will be presented which address the company's sustainability goals. The functional area Operations comprises services for the various program lines and is divided into the areas of Production, Purchasing, Quality and Industrial Strategy. The examples in the keynote are about reducing energy consumption in production or ensuring health and safety. In addition, success factors for achieving "Sustainable Operations" are presented.

In addition to the use of innovative, resource-saving technologies, a key success factor of "Sustainable Operations" is the digital connection of processes and cross-functional collaboration. For this, it is essential to establish data continuity and information consistency along the entire value stream including the suppliers as well as along the various hierarchical levels in order to achieve complete transparency at any time and from any

1 United Nations, Report of the World Commission on Environment and Development, Our Common Future, 1987

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Sustainable Operations location. The IT infrastructure forms a basis which ensures precisely this information consistency and availability. In addition, special attention must be paid to data quality and the quality of the processes with which value is generated from data.

An important advantage of digitization is the higher number of measured variables and the associated higher degree of individualization of data since decisions are no longer derived from average values but on the basis of correlations. In the past, the performance of the production system was largely determined by productivity metrics and key figures such as time (e.g. throughput time, adherence to deadlines), costs (e.g. system costs, productive hours) and quality (e.g. error rates). Now, a more holistic approach is possible and necessary. In addition to the above mentioned parameters, sustainability indicators such as energy or water consumption as well as accident rates, employee versatility and others come into focus. The value of data is determined by its relevance for the user in terms of target achievement and is increased through the aggregation and refinement of data.

The transfunctional availability of information and the individualization of data enable better process efficiency, faster decisions and lower costs. Decision-makers should be able to read data without prejudice, allow counterintuitive results if necessary and derive data- supported decisions. In addition, the type of cross-functional collaboration is crucial for increasing efficiency. A digital infrastructure alone is not enough to increase the value of data. Rather, organizational adjustments are required as well as a mindset change of employees away from silo thinking towards an end to end process-oriented thinking. A data-driven, collaboration-centered culture in ecosystems in which the individual strengths of employees and technical systems are bundled in a target-oriented manner is essential for the performance of the system. Cross-functional collaboration and the availability of relevant data form the basis for faster adaptability to unforeseeable events which has a positive effect on competitiveness. Even if future events appear less planna- ble due to dynamic influencing factors, they can be better dealt with through the ability to adapt quickly.

The drivers for sustainable operations lie in innovative, resource-saving technologies, the digital infrastructure, an interdisciplinary cooperation and a corporate culture in which data-driven and sustainable action is a matter of course. This makes economic and sustainability-oriented goals compatible. The value of the data for Sustainable Operations can only be increased through interdisciplinarity and cross-functional collaboration.

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ARCHITECTURE OF A NETWORKED ADAPTIVE PRODUCTION

SESSION 1

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1 Architecture of a networked, adaptive production

R. Schmitt, N. König, S. Jung, M. Peterek

Table of contents

1 Introduction ... 27 2 Production requirements for networking and adaptivity ... 28 2.1 Universal connectivity - "Connect Everything ... 28 2.2 Data integrity ... 31 2.3 Sovereignty ... 32 2.4 Contribution of networked, adaptive production to corporate

sustainability goals. ... 34 3 Architecture for networked, adaptive production ... 34 3.1 Networking across locations ... 35 3.2 Dynamic networking ... 36 3.3 Platforms for cross-company networking ... 38 4 Outlook ... 39 5 Literature ... 41

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Architecture of a networked, adaptive production

Abstract

Architecture of a networked, adaptive production

The vision of a networked adaptive production can only be achieved with a high-performance infrastructure. What are the performance characteristics of such an infrastructure, and what does a scalable implementation in the production environment look like? Which components enable the real-time provision of information along the entire process chain and can also be integrated into production without significant additional costs? What contribution does digitization make to a company’s sustainability goals? The Internet of Pro- duction is the framework for such an end-to-end, secure, and efficient architecture. The integrity, sovereignty, and real-time capability of the data collected are necessary for production.

Kurzfassung

Architektur einer vernetzten, adaptiven Produktion

Die Vision einer vernetzten adaptiven Produktion gelingt nur über eine leistungsfähige Infrastruktur. Was sind die Leistungsmerkmale einer solchen Infrastruktur und wie sieht eine skalierbare Umsetzung im Produktionsumfeld aus? Welche Bausteine ermöglichen die echtzeitfähige Bereitstellung von Information entlang der gesamte Prozesskette und können auch ohne bedeutende Mehrkosten in die Produktion integriert werden? Welchen Beitrag liefert die Digitalisierung zu den Nachhaltigkeitszielen eines Unternehmens? Das Internet of Production ist der Rahmen für eine solche durchgängige, sichere und leis- tungsfähige Architektur. Die Integrität, Souveränität und Echtzeitfähigkeit der erhobenen Daten ist dabei notwendige Bedingung für die Nutzbarmachung in der Produktion.

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1 Introduction

The economic situation in Germany is primarily based on the strength of the manufacturing industry. It creates value-added jobs and products that meet the highest quality standards. In this context, companies increasingly see digitization as an opportunity [1]. The collection and utilization of production and product data over the entire product life cycle can lead to productivity leaps or even offer entirely new data-based business models.

This volume of data will grow to 79.4 trillion gigabytes by 2025 [2]. However, if data is lost, there is a risk of know-how being lost or, if data is manipulated, of the customer, quality, or legal requirements not being met. Therefore, making this large volume of data securely available to the value network to increase productivity on its basis is a critical factor for the future viability of companies.

At the same time, the economy faces increasing demands for sustainability and fulfillment of corporate objectives according to ESG criteria. On the one hand, this is politically mo- tivated, such as in the European Green Deal [3]. On the other hand, it is becoming ap- parent that the capital market is increasingly evaluating companies according to ESG criteria. Boos [4, 5] therefore proposes linking ESG criteria to a financial assessment of a company’s productivity and continues to see significant added value from digitization.

This underlines that the greatest possible realization of the potential of digitization is in- dispensable if manufacturing companies want to take a leading role in the competition on global markets in the long term. Due to the increasing complexity of production processes, the number of immanent interactions between individual processes increases. In addition, the increasing individualization of products is leading to a significant increase in process variance. The consistent use of the knowledge contained in the exponentially increasing data volumes has a strong leverage effect for the continuous improvement of product and process-related quality. Instead of a pure assessment based on process data, existing information on intermediate products and individual assemblies can also be considered.

At the same time, quality-driven optimization of resources can be used to meet the stead- ily increasing sustainability demands from the public and politics. The rapid increase in data availability is due, on the one hand, to the ever-stronger networking of suppliers, producers, and customers, and on the other hand, to the use of an increasing number of different information channels from integrated sensor technology to online product re- views.

The aim is always to enable a very concentrated and conscious approach to networking and digitization. However, networking is not a purpose in itself but should provide direct added value for production in the sense of the Internet of Production (IoP). The latter arises from the end-to-end use of the available data - Turning Data into Value.

In this article, the focus is on the necessary infrastructure that makes such use possible in the first place. The aim is to highlight possibilities that can already be used and integrated. Communication usually takes place in distributed communication networks. Infra- structure in IoP considers functional, physical, and conceptual perspectives of the Digital Shadow [6] in production. The physical infrastructure supports the distributed multi-agent model executions and data flows with high performance, reliability, and security in distributed communication networks. In addition, the infrastructure must consistently manage the Digital Shadow as a knowledge carrier of heterogeneous data stores and agents, enable formal mappings between them, and generate code for efficient data integration and exchange. The envisioned infrastructure creates a novel combination of data-driven learning algorithms and physical or simulation models to transform large amounts of data into instances and formal models via the Digital Shadow, which, together with context

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Architecture of a networked, adaptive production changes, in turn, generate new data. However, the challenges that arise in the process, such as data integrity and data sovereignty, will also be highlighted.

2 Production requirements for networking and adaptivity

The basis of networked, adaptive production is the complete networking of machines, products, and people through software to form a cyber-physical production system [7]. It requires the integration of different parts of value creation. For a possible scaling of the approach to the entire value chain, which maps all phases of the product life cycle, i.e., from the idea to development, production, use, maintenance, and recycling, fast and straightforward integration of many different participants such as production machines, databases, and IT systems is necessary. Therefore, technologies that provide universal connectivity are considered ideal.

Sometimes, data exchange between several companies with decentralized data storage is required. This makes the product status transparent and traceable in all phases. In the event of product damage, transparent traceability provides the best possible insurance for value creation partners against recourse claims and loss of reputation. The networking of value chains and the decentralized availability of data from all partners is thus a driver of competitiveness.

However, the fundamental requirement for networking must go hand in hand with ensuring the security of data, whereby their exchange must be safeguarded against unauthorized access and user authorizations utilizing encryption. In particular, the manipulation security of data for quality verification is essential within the value chain by an authenticity check.

The effort required for networking in production must be translated into quantifiable added value. Therefore, networked, adaptive production’s productivity and ecological key figures must be positively proportional to the financial and energetic effort.

In summary, various fields of action are derived, which are described below.

2.1 Universal connectivity – „Connect Everything“

The requirement mentioned above to completely network the various links in the value chain presents companies with the challenge of transferring data in a heterogeneous resource network between different endpoints via different interfaces and different protocols.

The demand for fast and straightforward integration is diametrically opposed to this, as it means that the complexity of selecting from the many options must be significantly reduced.

Universal connectivity, on the other hand, should be based on the smallest possible se- lection of transmission technologies without the respective application losing performance.

A selection can be made based on the following criteria:

Ͳ Mobility - ability to transmit data to or from mobile assets over large areas, e.g., mobile and sensor-based robots, wireless sensors, autonomous material handling vehicles (AGVs).

Ͳ Real-time capability - ability to synchronize end devices and transmission rates and data transfer intervals in the range of a few milliseconds, thus enabling connectivity down to the Fieldbus level.

Ͳ Transmission bandwidth - capability to transmit data at transmission rates up to the single-digit Gbit/s range per end device.

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Architecture of a networked, adaptive production Ͳ Scalability - ability to provide the above features to multiple endpoints

simultaneously.

Real-time capable communication is of particular importance. Up to now, this has been limited primarily to the Fieldbus level. Extensive use of data from this level, i.e., the ac- quisition, aggregation, and processing of the data and the feedback into the value chain up to the field level, requires that the real-time capability of data transmission is guaranteed at all levels.

Criterion WLAN Bluetooth ZigBee 5G Ethernet

Mobility + o o + - —

Real-time capability - — o - — + +

Transmission bandwidth o - — - — + +

Scalability o - — o + +

Table 1: Evaluation of different technologies for connectivity

Table 1: Evaluation of different technologies for connectivity shows a qualitative assessment of various connectivity solutions concerning the criteria listed above. WLAN meets the requirements in terms of mobility in an industrial context. In principle, a WLAN network can be set up for an entire production hall via an appropriate number of WLAN access points. There is a wide range of low-cost transceiver modules available for integration into production equipment. However, because WLAN operates in an unlicensed spectrum, it is challenging to achieve robust, high-performance connectivity. WLAN networks are typ- ically bandwidth optimized, meaning that the available bandwidth is shared among all subscribers. This, coupled with the fact that operation in unlicensed spectrum is susceptible to interference, suggests that real-time capability with low and reproducible latency is difficult to achieve with WLAN. Although transmission rates up to 1.3 GBit/s can be achieved with technologies following the IEEE 802.11ac standard, these are shared among all subscribers. Based on the properties mentioned here, the robust, real-time transmission property for WLAN, in particular, must be viewed critically.

Bluetooth has limited mobility suitability due to its comparatively small transmission range of several 10 m and the fact that it is mainly used in peer-to-peer mode with only a few participants. Due to the small number of connected end devices, comparatively low, reproducible transmission latencies of up to 2 ms can be achieved via Bluetooth. As with WLAN, transmission takes place in an unlicensed spectrum and is generally susceptible to interference. Transmission bandwidths of up to 2 Mbit/s are specified, which is not sufficient for many applications. A significant weakness of Bluetooth is its lack of scalability. It is impossible to implement networks with a larger number of participants, such as sensor networks, which is why it is ruled out as a universal connectivity solution.

ZigBee has similar properties to Bluetooth, but its scalability is better because it connects as a mesh and can thus generally integrate more participants. The disadvantage is the low transmission bandwidth of max. 250 kBit/s and the higher latency in the double-digit ms range.

5G, on the other hand, differs from the other wireless connection technologies in that transmission takes place in the licensed spectrum and is therefore significantly less susceptible to interference than the many solutions that transmit in the unlicensed frequency range of 2.4 GHz. 5G permits latencies in the single-digit ms range in so-called Ultra- Reliable Low-Latency Communication (URLLC). Another feature is Enhanced Mobile

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Architecture of a networked, adaptive production Broadband (eMBB) transmission, which ensures that sufficient capacities of up to 10 Gbit/s are available. It is also possible to guarantee the conditions mentioned above for a large number of subscribers and thus easily scale the connectivity solution in the industrial environment for a company. The possibility in the future to realize a Time Sen- sitive Network (TSN) [8] over 5G with synchronized data transmission opens up the potential to time-stamp sensor data or outsource control tasks to a cloud.

Ethernet has established itself as the standard in wired communication. Via a modern network infrastructure, the requirements for transmission bandwidth with 1 GBit/s over copper lines and the number of subscribers are easily scalable. TSN is also being implemented for Ethernet, so that real-time capability can be achieved with the help of Preci- sion Time Protocol (PTP). The first products for this are available on the market. Connec- tivity for mobile applications cannot, of course, be guaranteed because of the cable connection.

The analysis shows that the desire for universal connectivity is achieved by combining Ethernet for the wired infrastructure (servers, stationary production equipment) and 5G for mobile production equipment. Figure 1shows what such an architecture might look like. Various wireless sensors with 5G transmission are located at different measurement locations in production, e.g., structure-borne sound, acceleration, or force sensors on workpieces for process monitoring, vibration sensors or microphones in machine tools for condition monitoring, or distributed sensors for temperature or humidity for infrastructure monitoring. The various sensors transmit measurement data and receive configuration data, such as setting the measurement frequency or on/off wirelessly using 5G. The data is coupled at the 5G base station or the 5G core by local breakout via Ethernet to the production IT. There, they can be processed in a factory cloud, an on-premise edge cloud solution, in various virtual machines. The machine tool can transmit its respective machining status, including axis coordinates or spindle speeds, as a data stream via various hardware- or software-based monitoring options. The data streams from the sensors and machines can be combined and evaluated centrally in the Factory Cloud. The process documentation can be stored in databases as a digital twin and is available for further evaluation. Process interventions and process controls can be transmitted from the Fac- tory Cloud to the machine tool via machine-to-machine (M2M) communication. Further information can be found in Deliverable 3.2 of the EU project “5G-SMART” [9]. In closed- loop control, the real-time capability of all communication channels, including the Factory Cloud, is necessary in any case.

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Figure 1: Architecture for 5G-based process and condition monitoring (taken from [9])

Potentially, connectivity via 5G can also be helpful for non-mobile applications, such as when data rates are above 1 Gbps or when laying additional Ethernet links is not economically viable.

In addition to pure data availability, there are two other classic information security goals to consider - data integrity and data sovereignty.

2.2 Data integrity

This newly emerging ubiquitous connectivity will thus make it increasingly easy for companies to access and use data. Networked production resources are constantly producing data, and the newly created IT infrastructure can store, process, and use data in an au- tomated and efficient manner.

With this increasing interconnectedness and data availability, new challenges arise concerning the reliability and trustworthiness of data - so-called data integrity (see Figure 2).

For example, if a person, in this case, Alice, sends a data packet to her colleague Bob, data integrity describes the correctness, completeness, and consistency of the data, ensuring that Mallet has not changed the data. That becomes especially relevant when business or production decisions increasingly rely on data. For example, according to the German Federal Office for Information Security, 87% of those affected say that cyberat- tacks caused significant consequences for their operations [10]. For this reason, it must be ensured that the underlying data is correct. If alteration or corruption of the data cannot be prevented, this must at least be detected. The following terms are essential in the context of data integrity:

Ͳ Correctness of the content - correct representation of real facts.

Ͳ Unmodified condition - data is delivered unmodified during transmission and is not modified by systems during use.

Ͳ Modification detection - undesirable modifications are detected.

Ͳ Timing correctness - relevant conditions such as sequence or delays are maintained.

Ͳ Ensuring regulatory requirements - compliance with the GDPR and data security.

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Architecture of a networked, adaptive production Thus, data integrity differs from data security in its objective - data security refers to protecting data and minimizing the risk of data loss, whereas data integrity refers to the trustworthiness of data.

Figure 2: Data integrity diagram

Data integrity thus includes measures to protect data from unauthorized modification throughout its entire lifecycle. Particularly in the public focus, the topic often gains attention related to criminal risks, including unauthorized attacks or data theft. Such attacks aim at changing or damaging data in order to manipulate or shut down business processes. Threats to data integrity can be multi-faceted and relate to malicious acts, human error, and technical failures.

Ͳ Human error - information can be incorrectly recorded or deleted by employees, either intentionally or unintentionally.

Ͳ Transmission errors - when data is transferred between systems, data can be intentionally or unintentionally lost or modified.

Ͳ Criminal acts - unauthorized access to data to intentionally manipulate or steal it.

Ͳ Technical errors - if essential infrastructure components are defective, such as network components, server hardware, or software systems, data may be incorrect or incomplete.

The main aspects of data integrity are therefore traceability and transparency. Therefore, in terms of data integrity, it is necessary to develop suitable measures with the help of appropriate systems, processes, and standards to minimize or completely eliminate the risk of sources of danger. The particular challenge here is the widespread impact on a global level due to ubiquitous networking. Companies and system manufacturers will have to cooperate even more closely in the future and identify and resolve existing de- pendencies. A solution that is technically successful but incompatible with heterogeneous systems, as they have often grown historically in the industry, does not provide any added value at this point. The challenge here is to address data integrity sufficiently but not to inhibit or slow down progress.

2.3 Sovereignty

According to a study carried out by PwC [11], 59% of 200 executives surveyed in German companies say they are afraid of losing control over their data. This is associated with