Scale effectively –Transform production network and supply chain
Frank Göller [Head of Digital Production – Volkswagen Group]
October 11th, 2022
Classification: PUBLIC

Volkswagen AG with over 672,000 employees – a challenge for transformation

119

production plants

brands>40,000€250 bn

>60

8,2 m

suppliers

product
ramp-ups
Source: Volkswagen AG – Annual Report 2021
INTERNAL

12

sales revenue

vehiclesproduced

“NEW AUTO”

Volkswagen reinvents itself“There is much to suggest that many of theparameters, paradigms, rules of thumb and empiricalvalues we have accumulated over the past 100 yearsof automotive history will change fundamentally.

So it’s time to reinvent ourselves.”
Herbert Diess
Strategy presentation NEW AUTO | July 2021

Source: Volkswagen AG
INTERNAL

Aspiration requires change of rules & mindset

EffortSpeed

÷2x2

Change ofRULES & MINDSETNEW Production
Autonomous factories
along all shops andprocesses

GAME CHANGE

Resilient production
network incl. global
supply chains

TODAY

Requirements
ENVIRNONMENTMAL

Impact

Team=0=1

Zero impact sites
Digital ecosystem in linewith production goals

TRADITIONAL
ProductiontNEW AUTO needs NEW PRODUCTIONPredictive demand &capacity management insupply chain

Paradigm shift of product & mobility requires a radical change in production!
Source: Volkswagen AG
INTERNAL

How we create
the technicalbasis for scaling
Industrial Cloud

Source: Porsche Consulting, Volkswagen AG
INTERNAL

Volkswagen transforms a fragmented IT landscape to an integrated
platform architecture
SCHEMATICERPAPPLICATIONS
ERP

MES B

MES A

Scada

indiv.
platf.

indiv.
platf.

MLO

PS

indiv.
platf.

DPP
indiv.
platf.

PLATFORM & DATA MANAGEMENT

BSPS

AL

FLO

MLOPSBSPSAL

FLOn to n interfaces between solutions

One interface from asset to platform

Highly customized solutions
and thus redundancies

Decentral developed solutions
based on a standard platform

Source: Porsche Consulting, Volkswagen AG
INTERNAL

CSM

indiv.
platf.

indiv.
platf.

PLM

MES C

The platform allows modular use case development to achieve interoperability
and quick value capture

Reusability,
scalability &conformity

USE CASESTECHNICAL CAPABILITIESSERVICES

Solution to a problem

Described skill

Ready-to-use software

Reusability depends oncommonality &standardization

Commonality allowsstandardization

Standardization enables
modular reusability

e.g. Intelligent Sign Inspection

Source: Porsche Consulting, Volkswagen AGINTERNAL

e.g. Image Recognition

e.g. Industrial Computer Vision

Services provided by

To build the platform, Volkswagen attracts partners willing to invest

LayersTechnical Capabilities

IIoT use cases &platform applications

APPLICATIONS

AI & Machine Learning

PLATFORM

CONNECTIVITY

Source: Porsche Consulting, Volkswagen AG
INTERNAL

CloudSecurity,
data rights & control

Advanced Analytics

Data collection, data aggregation & cloud connection

Existing plant IT

SHOPFLOORPartners

Existing machines

Plant infrastructure…

Example | Intelligent Sign Inspection use case unlocks the economy of scale
Singleuse case

Scaling platform
01

02

Scope

Individualplants

57 VWplants

Externalscaling

ROI

Severalyears<1yearAdditional
revenue

ExampleISI – INTELLIGENT SIGN INSPECTION
Leveraging Industrial
Computer Vision platform
service for automatic
label recognition via
stationary in-line cameras
or image recognition app
on mobile device

Source: Porsche Consulting, Porsche AG, Volkswagen AGINTERNALThe Intelligent Sign Inspection is built on Volkswagens
group-wide Vision Workbench

Volkswagen VisionWORKBENCH

Sign
Inspection

Source: Porsche Consulting, Volkswagen AGINTERNAL

Installation Control
Assembly

Crack Detection
Press ShopAnonymizationof Images

A QuickStarter Kit serves to create transparency for all plants across all use cases

QUICKSTARTER KITLogistics
use case

Shopfloor mgmt.
use case

Maintenanceuse case…
Source: Porsche Consulting, Volkswagen AG
INTERNAL

With overview
of all use cases
ready to scale

With this platform approach Volkswagen focuses on enabling decentralized scaling“We give developers aplatform. And flexibility.”“We give plants aplatform. And flexibility.”“A store that welcomescompetition.”“A store that promotes
efficient collaboration &development.”

Source: Porsche Consulting, Volkswagen AGINTERNAL

01 Open innovation

Why does
Volkswagen wantto create theINDUSTRIAL CLOUDECOSYSTEM?

Innovate faster by sharing use cases acrosscompanies in the ecosystem, creating awin-win situation for all members

02 Scaling
Create open standards for apps,
services and use cases to rapidly scale
across plants and companies

03 Value chain integration
Enable efficient collaboration acrossthe whole ecosystem, help achieve
productivity goals

Source: Porsche Consulting, Volkswagen AGINTERNALHow we create theorganizationalfoundation for scaling
Industrial Cloud Solutions & Scaling Arena

Source: Porsche Consulting, Volkswagen AGINTERNALThe ICS portfolio is built up based on current challenges of the OEMs

Alarm Cockpit

SounceCall Rocker

Centralized Data Mgmt. in Paint Shop

Energy Data Reporting & Analytics

Eagle

Smart Twin

Digital PDCA Process

Asset Management

Consolidation of multiple alarms fromvarious systems into one app

Analysis of paint shop quality dataduring operational process

Optimization of assembly line feeding policies

Source: Porsche Consulting, Volkswagen AGINTERNAL

AI-supported acoustics/vibrations based
condition monitoring solution

Creating transparency about consumption & identificationof energy saving potentials to achieve ESG goals

System for identifying errors and causes in production,
allowing knowledge transfer of measures between plants

Automation & digitization of replenishment control

High speed and high throughput shop floor
to cloud connectivity

Enabler for life cycle management of IoT software assets

Volkswagens ecosystem and platform will link to connect the automotive industry

VW GROUP

AUTOMOTIVE INDUSTRY

APP
APP
APP
APPn tier

PLANTS

1st tiern tier

BRANDS

EXTERNAL PARTNERS

Source: Porsche Consulting, Volkswagen AG
INTERNAL

WarehouseOEM

Aftersales