Five serious theses on
the way to Industry 4.0

DO YOULOVEYOUR
MASTERDATA?

Five serious theses on the way to Industry 4.0

MORE MOTIVATIONFOR QUALITY
MASTER DATA!
Master data is of central importanceto the future of business.
At TCM we have experienced in our daily
work that this topic does not receive theattention it deserves. We want to change
that. The five theses we are presenting here
are intended as a guide, as a tool to help you
define your own point of view and recognize
your weak points.
Master data is closely linked to digitalization– both will play a crucial role. Many are awareof this. So, all that is missing is the courage
to take the first step towards quality masterdata. It‘s easier and faster than you‘d expect!

Manfred Kainz
TCM International, CEO01

WHAT ON
EARTH ISDIGITALIZATION?

Industry 4.0 is not available from the rack.
Where are we positioned? Where are we going? Digitalization requires reflection on your ideas andgoals, and last but not least on the processes.

02

TODAY, MASTERDATA IS A
BURDENSOMEOBLIGATION.

03

A PICTURE SAYS
MORE THAN
A THOUSAND
WORDS.

Transparency and standardization are theadjustment screws for success.

04

100 PERCENTDATA QUALITY
IS ONLY JUSTGOOD ENOUGH.

Effort comes before success and notjust in the dictionary.

DIGITALIZATIONREQUIRESLEADERSHIP.

Doing it as an “afterthought“ won’t suffice.

05

Tomorrow it will be necessary for survival.
Show me your master data, and I‘ll tell you where youstand. The analysis of the current state is fast. But
then you have to: Get out of the comfort zone!

See the bigger picture. Only clear andmeaningful key figures provide an overview
of your own processes.

Top-data quality means continuous work.
No reason to panic: Once you get involved,it‘s much easier than before.

Digitalization is not a switch that you flip. It requires
the commitment of everyone involved. And clear
decisions by management.

Five serious theses on the way to Industry 4.0

WHAT ON EARTH IS
DIGITALIZATION?
INDUSTRY 4.0 ISN’T
AVAILABLE FROM THE RACK.
Digitalization – a big topic with an equal lackof focus in its definition. What exactly are
we talking about when we use that irritating
word digitalization? For some it is the sameold same old in a new box. (“We’ve always
been doing it anyway!“), For others, it is thelong-awaited starting signal into a new era(“It requires disruptive changes!“). In between,
there are more or less ambitious efforts to
use the topic for their own needs. So, isdigitalization ultimately whatever companies
want it to mean?
This much is certain: manufacturing companies cannot avoid placing digitalization in an
expanded context. The system of production- machines, control and auxiliary systems ofvarious types, as well as the human factor- have not changed structurally, but neither

the operation of the plants nor the necessary services are possible without accessto the online services of the respective
manufacturers. An improved infrastructure,especially more bandwidth for Internet connections, has enabled new applications andfaster response times. The formerly isolated
production area has long since been networked with the world.
The consequences are well known: newpotential in production, new markets andincreased competitiveness. Anyone whoignores this development, can be out of thegame quickly. Wonderful new digital freedom?
Not quite. Because more freedom means lessand less security. And that can hurt a lot
quickly: Data loss, uncontrolled data flow tothe outside, virtual attacks ... the range ofrisks is large. Awareness among employees,on the other hand, and investing in security
helps. Then, digitalization can do what we
expect it to do.

01010010110

Digitalization – thought of in the widest
possible context – however, starts muchearlier. The question is not how to masterIndustry 4.0 (Does anyone really know how
Industry 2.0 works?). The question is how
to master your own processes.
And this mastery begins fundamentally withthe master data of a company.

”It‘s not the strongest
species that survives,
not even the smartest,
but the one that best
responds to changes.”
Prof. Wilfried Sihn, CEO Fraunhofer
Austria Research GmbH,quoting Charles Darwin

Example 01
If you ask the participants of symposia, if master datain the company are important, then almost all of themanswer yes. If you ask whether the quality of this datais good in their own company, then almost all of themanswer no.

010010111010

Five serious theses on the way to Industry 4.0TODAY, MASTERDATA IS A
BURDENSOMEOBLIGATION.
TOMORROW, THEY WILL BE
NECESSARY FOR SURVIVAL.
“What‘s your idea of master data?“ - Whatappears at first glance to be the crucial question of digitalization is, on closer inspection,
only the follow-up question of a far more
extensive occupation with the productionengineering processes. Wherever industrial
production, automation, in short modern production is concerned, the question must be:“Are you in control of your processes?“
In most cases, sufficient technology is avail­able to improve manufacturing processes.
So, the technology is there. What is important in the first place, however, is the qualityof the processes. As a result, every company
has to confront a whole series of uncom-

fortable questions - ideally in time and forthemselves, at least – before someone else
asks them: “Are we aware of our processes
in the mechanical manufacturing?“ “Are theytransparent?“ “Do we control them in normal
operation, and can we control them in exceptional cases?“
Digitalization also means taking a look at thedata quality in the company - and with themost critical possible view. The motto is not:“Let‘s take a look sometime, then we‘ll see“,it‘s “Get out of the comfort zone!“ Because
whoever talks about master data is speaking
about quality. To the contrary, the picturethat sometimes presents itself in the company is questionable: the most varied article
numbers and specifications from various systems torpedo any meaningful use. A reliable
process cannot be derived from this.

01010020110

So, there is no way around it. Dealing withthe current system and data landscaperequires a critical approach. This is how
you can set up a solid foundation on which
digitalization can build in order to survive inthe fast-paced market, to implement automation efficiently internally, and to be externallyconnectable.

Example 02”The analysis process of TCM
shows very well where you
stand. Strengths and potentials are presented clearly,
and recommended actions aresuggested. This helps to set
the course and make the rightdecisions for the future.”
Richard Wieser, Head of Components
Production, Motor Factory HATZ

TCM has developed a tool management analysis process that checks the quality of the master data within
two to three days. The objective view from the outside
is completely and shows ways in which the data quality can be increased.

01101010101

Five serious theses on the way to Industry 4.0

A PICTURE SAYS
MORE THAN
A THOUSANDWORDS.
TRANSPARENCY AND
STANDARDIZATION ARE THE
ADJUSTMENT SCREWSFOR SUCCESS.
A recurrent partner of digitalization is transparency. And that has its reasons. Ultimately,
manufacturing processes can only be optimized if they are transparent. The diversityand variety of systems - planning systems,
simulation systems, production systems etc.
- must be recorded transparently. Or, in theold-fashioned way, you have to get an overview in order to keep track of things.
But how does that work?
One example: There are quite a few companies that use thousands of different cutting
tools. The result is a jumble of equivalent products or with only slightly changed specifications that are used from different suppliers.

If you take a look at the underlying process,you end up with the stock value or the inventory turnover rate. And now it gets interesting: If you also look at which tools were noteven moved in a certain period (about a year)- so-called “slow movers“ - you quickly realizethat a lot of unproductive capital is justsitting around.
This situation can be avoided – if you do not
lose the perspective! This is precisely wheretransparency and standardization help. They
are the best adjustment screws to raiseawareness and thus change the situation.
For example, if programmers have access toup-to-date, qualitative data about those toolsthat are actually used in production and also
in stock, it enables them to derive a morebinding planning process. Work is done withwhat is available and released, with thosetools that have also been cleared in the system. All a question of the overview …

0101000031

And one more thing: Those who define clear
and meaningful key figures at the processlevel, have a useful guide for the next steps.
It is only later that key figures are derived
such as tool costs per production hour. Onceagain, an old fashioned saying: just take one
step at a time.

Example 03
Three practical observations:• 50 percent of companies cannot give a clear
statement about tooling costs related toproduction behavior.
• 90 percent maintain tool data redundantly.
• 100 percent have room for improvement in theinventory, but they do not use it due to the lackof transparency and clear key figures.

“The basis for a vital CIP
process is the standardizationof routine work. The higher
the degree of standardizationin the company, the higher
the quality and the shorterthe turnaround time. As aconsequence, the costs
decrease. Furthermore, moretime remains to work on thefuture of the company.“
Armin Decker, Operations
Manager and Authorized
Signatory of J. D. Neuhaus

10100101001

Five serious theses on the way to Industry 4.0100 PERCENTDATA QUALITYIS JUST ENOUGH.
EFFORT COMES BEFORE
SUCCESS. AND NOT ONLY
IN THE DICTIONARY.
Let‘s just stay with the topic of success: It
will come, but not overnight, and not automatically. Qualitative master data, end-to-end
systems and reliable processes require real
work - an effort, however, that pays off!
Once this new data quality has been achieved,
an essential basis for optimized processes
has been created. This level must be absolutely maintained, because it is not about a one-time success, or a a “one-time cleaning up“ ofthe data disorder. The hard-won solutions in
the production environment must also be able
to permanently meet the quality demands
that have been achieved! No one would trust
an assistance or navigation system that only
worked 90% of the time. Why should this bedifferent in production processes?

To return to the example of cutting tools, theaim is to ensure that all the data required
for the next step in the process is available
in the required quality and to the required
extent when creating a cutting tool. Let‘scall the scope the „golden record“ of the tool.
This “Golden record“ ensures that all specialist departments are informed and involved
right from the birth of the data creation.
Cross-system analyses are possible at anytime, since uniform and consistent part numbers and specifications are used.
This closes the large gap between the isolated solutions.
At the same time, it is ensured that it is also
possible to use economically sound basic
data (disposition data, consumption data,
cost statements) to make production-related statements (where is which tool used,which cutting values are used on whichmachines?). Each system usually has its own

01110101010

unique purpose in the software landscape.
All these systems are allowed to speak theirown “dialect“, but each of these systems
will speak a defined standard in the future digital English, if you like.

Example 04”’Data gaps? We‘ll have thesummer interns do that!’– An
unmistakable sign that theimportance of master data
quality is not understood.“Markus Temmel,Managing Director, TCM

Tool data can today be imported online via cloudsystems and portals. However, the quality of this data
is often so poor, that each record has to be checked
manually. This puts every automated data transfer
into question.

01041010010

Five serious theses on the way to Industry 4.0

DIGITALIZATIONREQUIRESLEADERSHIP.
DOING IT AS AN“AFTERTHOUGHT“WON’T SUFFICE.
Although it has been said several times,
digitalization is work – but work that is worthwhile. After all, anyone who has been successful has dealt intensively with their data,
the underlying system landscape and theprocesses that have been used. This has adecisive consequence: digitalization requires
leadership! It cannot be prescribed, switchedon or delegated. Rather, it is an attitude thatmust be anchored throughout the corporate
DNA. Only then will the challenge be understood, only then will the right decisions be
made and then these decisions will become
visible as successes, namely:• No redundancy, which the customer does
not pay for and which paralyzes theorganization• No gaps and missing data quality that
undermine transparency and significance• No restriction to interpret the data pooland to find new business models• No problem to make new technologies
like AI even more effective and much more.
What is required is the courage to take thefirst step. Once this is taken, each successive step is faster to implement - a dynamic is
set in motion and success becomes visible,
which in turn increases the approval andacceptance within the company. And slowly,
but steadily, the digitally driven corporatechange reveals its full potential.
The result is what you never expected:
You will come to love your master data!

01001010111

Example 05
Software-driven projects are usually started with great
enthusiasm by the management. It is the implementation and empowerment at the operational level, as
well as consistent project application and monitoringthat is often the bottleneck in its adoption. If you cancombine both, you have already gone halfway to thesuccess of the project.

“It is not the IT departmentthat is responsible for the
successful implementation ofa digitalization strategy.
It is the process owners who
have to be won over. And itis the task of top management to win people overin the companies!“Manfred Kainz,CEO, TCM

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Five serious theses on the way to Industry 4.0

ABOUT TCM
As experienced tool managers, we at TCM arealso users of our own product and software
solutions. In order to develop our products, wethink backwards from the chip. In doing so,
we repeatedly ask ourselves what needs tobe done to produce the chip easier, moreaccurately or faster - because that ensuresthe decisive competitive advantage for us andour customers. Just thinking about digitalization is not enough. In the end, you have to use
it for your own production.
We are constantly learning from our customer
projects and together with our customers.
Every day we are confronted with a widevariety of demands. Various materials thatneed to be machined, diverse production
structures and batch sizes, as well as various
software environments, challenge us. All ofour findings flow into the further developmentof our solutions.

This is precisely what has helped us to gain acentral insight: high master data quality is theprerequisite for the success of a digitalization
strategy!
We are happy to pass on this experience and,
together with you, take the first step to evaluate the digital potential in your company. We
will accompany you from the concept to its
practical implementation, so that you are one
step ahead of your competitors.

Markus Temmel,
TCM International, Managing Director

https://www.tcm-international.at/produkte/
tool-management-analyse/01001010111

Imprint:
WinTool AG
Flüelastrasse 78048 Zurich
Switzerland
Publisher:
DI Markus Temmel© 2020101011011110

WINTOOL AG
Flüelastrasse 78048 Zürich, SWITZERLAND
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08-2020-EN

FIVE SERIOUS
THESES ON
THE WAY TO
INDUSTRY 4.0