Presentation from EY Global Advanced Manufacturing at PTC LiveWorx 2020. See ey.com/mfg for more information.

1. Are smart factories
manufacturing a new
industry model?

2. This presentation is provided solely for the purpose of enhancing knowledge. It does not provide
advice because it does not take into account any specific facts and circumstances.
These slides are for educational purposes only and are not intended to be relied upon as
accounting, tax or other professional advice. Please refer to your advisors for specific advice.
The views expressed by the presenters are not necessarily those of Ernst & Young LLP or other
members of the global EY organization.

3. Market insights
Page 2
63% of companies are focused on a
physical return and a reimagining of
work
71% said that enhancing health and
safety protocol is the primary challenge,
followed by reconfiguring physical space
58% of the organizations are using this
time as an opportunity for
transformation
Operational continuity/business
operations was the No. 1 requested
area for future learning
Polling results from webcast with over
6,000 client participants*
Sustainable
manufacturing
resilience
Time
Performance
Typical
(i.e., COVID-19)
Disruption
► Ongoing disruptions to the supply chain are the “new normal.”
► Companies will continue to face supply chain disruptions from a range of sources.
► Continuing performance improvement will require a different approach.
► The strongest will have a foundation for sustainable manufacturing resilience.
A resilient manufacturing enterprise is agile, efficient, stable,
connected, responsive and customer-centric.
* EY webcast conducted with clients on April 30, 2020
Harness the power of digital through EY Smart Factory

4. Factory of the Future Benchmarking Study
* Smarterchains study sponsored by EY from June 2019 to February 2020
Study overview*
Factory of the future dimensions
 Factory of the future leadership
 Digital organization
 Data-driven maintenance
 Automated data flow
 Automated material flow
 Digital-ready infrastructure
 360-degree factory visibility
 Intelligent quality
 Tech-augmented workforce
 Zero-touch production Automationanddigitizationmaturity
Operational excellence maturityLow High
High
Low
Digital
novice
LeadingTechnology first
Beginner
Page 3 Harness the power of digital through EY Smart Factory

5. The journey to resilience and improvement is achieved through empowering
people and accelerating the move to zero-touch operations
Smarter equipment
Better outcomes
create better value
Performance culture
Help to empower and
engage people
Standard ways of
working
End-to-end digital ecosystem
Problem-centric
application of technology
Integrated and
contextualized data
Data
Insight
Decision
Action
Smarter people
Page 4 Harness the power of digital through EY Smart Factory

6. EY Smart Factory applications elevate people performance, eliminate low-value
activities and support manufacturing resiliency and zero touch
EY Smart Factory applications can be adopted individually or in an integrated program
Smart Factory applications can be adopted individually or in an integrated
program
Elevate the performance of
your people and eliminate non-
value-added work ...
... Elevate the performance of
your equipment and eliminate
loss by supporting a digital
shop floor
Resilient manufacturing
operations
1 2 3
The Smart Deployment Console allows global,
24/7 digital access to the manufacturing
excellence work system to guide self-directed
teams on the journey to capability development
and performance improvement.
Standard work processes are transformed from
white boards and clipboards to a digital environment
that significantly improves adoption and execution
across the network.
Specific use cases harness disruptive technology
to drive better decision-making and eliminate loss.
Digital strategy and transformation management
My tasks
EY Smart Factory solution
Smart capability progression Smart daily management Smart process optimization
IWS
Page 5 Harness the power of digital through EY Smart Factory

7. ► One-click access to content to execute
improvement actions
► Servant leadership to drive empowerment
and ownership
► Digital coach; a self-directed road map to
excellence
► Single version of the truth codified and
standardized
► Visibility of progress to track performance
results
Production line assessment
Assess
Strategic
improvement plan
Plan
Digital content delivery
to support self-directed
execution
StandardsDo
Check
Monitor
impact
Build capability to
take the right
actions
Smart capability progression
The EY Smart Deployment Console is supported by P&G’s world-class Integrated Work System (IWS). This digital application is
designed to store and manage manufacturing excellence systems. It supports structured capability progression for individuals
and teams through the support of a digital coach and program management in the plan.
Manufacturing resilience requires a workforce that is empowered through the ability to consistently deploy leading-practice
capabilities. Traditional manufacturing excellence programs aim to achieve this but too often fail due to an inability to scale and
sustain capability development.
Page 6 Harness the power of digital through EY Smart Factory

8. Effective execution of
critical standard work
Integrated data and task
management
Embedded task-based
microlearning supports scaled
knowledge transfer from experts
to front-line workers
Key benefits
Changeover Efficiency
Maintenance Planning
Safety & Quality
Incident Elimination
Breakdown Elimination
Shop floor Meetings
Shop floor Improvement
Clean, Inspect, Lubricate
Centerline
Defect Logging
My Tasks – Maintenance engineer
My Tasks – Maintenance technician
My Tasks – Line leader
My Tasks – Operator A
Significant reduction in
unplanned downtime
The EY Smart Daily Management application supports the enterprise-wide deployment and effective execution of standard
daily work processes through visual data management, capability building and automated workflow. Digitally embedded
standards not only drive consistency but also free up people to problem-solve and adapt to change.
Standardization of critical daily work processes is a key building block of manufacturing resilience, empowering all shop floor
staff to effectively execute critical tasks while providing a foundation for stability and flexibility in operations.
Role-based
“My Tasks”
Smart daily management
Page 7 Harness the power of digital through EY Smart Factory

9. The EY solution offers
► Off-the-shelf use cases that
have been tried and tested
► Point solutions to shop floor
challenges in specific areas such
as yield, quality, maintenance
and energy management
► Practical applications of digital
technologies focused on
creating value today and not in
the distant future
Smart Quality
Management
Smart Maintenance
Management
Smart Energy
Management
Smart Planning and
Material Management
• Defect logging
• Maintenance planning
• Condition-based predictive
maintenance
• Intelligent maintenance (AR)
• Intelligent process
optimization
• Zero-loss yield
• Energy management analytics • Supply chain synchronization
• Supply chain integrity
• Autonomous stock control
Advanced
analytics, AI,
machine learning
IT/OTcybersecurity
Digital enablers
Automation,
robotics
Digital
twin
Augmented
reality,
virtual reality
Blockchain
Smart Tasks Management (My Tasks)
Given that the sheer range and velocity of emerging technologies can be overwhelming and distracting, the approach is
to stay focused on tried-and-tested use cases that address specific productivity challenges and emphasize immediate
value creation.
Advanced technologies offer significant potential as a supporter of manufacturing resilience. However, the reality for most
manufacturers is that the return on investment in shop floor digital adoption has been disappointing so far. We need to find
more effective ways of scaling and capturing the value of digital transformation investments.
Smart process optimization
Page 8 Harness the power of digital through EY Smart Factory

10. EY Smart Factory IT architecture
Azure
Functions
Azure
Service Bus
Azure BLOB
Storage
Azure
CosmosDB
Enterprise Active
Directory
SQL Database
Azure Active
Directory
Enterprise Resource
Planning (ERP)
Enterprise Asset
Management (EAM)
Azure Container
Registry
Browser Mobile employees Dashboards
Factory machines
and systems
Azure Kubernetes
Service
Smart Capability
Progression
Smart Daily
Management
Smart Process
Optimization
Custom manufacturing and supply chain
processes and applications
Azure
IoT Edge
Gateway
Azure IoT
Hub
EY Smart Factory Solutions
Microsoft Azure Business Integration
Microsoft Azure Cold Path Analytics and StorageMicrosoft Azure Edge & IoT Hub
Client Enterprise IT
Client Enterprise Business Processes
Client Operations Technology
User
experiences
Vuforia Expert
Capture
PTC Solutions
Page 9 Harness the power of digital through EY Smart Factory

11. EY Smart Factory applications elevate people performance, eliminate low-value
activities and support manufacturing resiliency and zero touch
Smart Factory applications can be adopted individually or in an integrated program
Smart Factory applications can be adopted individually or in an integrated
program
Elevate the performance of
your people and eliminate non-
value-added work ...
... Elevate the performance of
your equipment and eliminate
loss by supporting a digital
shop floor
Resilient manufacturing
operations
1 2 3
The Smart Deployment Console allows global,
24/7 digital access to the manufacturing
excellence work system to guide self-directed
teams on the journey to capability development
and performance improvement.
Standard work processes are transformed from
white boards and clipboards to a digital environment
that significantly improves adoption and execution
across the network.
Specific use cases harness disruptive technology
to drive better decision-making and eliminate loss.
Digital strategy and transformation management
My tasks
EY Smart Factory solution
Smart capability progression Smart daily management Smart process optimization
IWS
Page 10 Harness the power of digital through EY Smart Factory

12. The EY solution offers
► Off-the-shelf use cases that
have been tried and tested
► Point solutions to shop floor
challenges in specific areas such
as yield, quality, maintenance
and energy management
► Practical applications of digital
technologies focused on
creating value today and not in
the distant future
Smart Quality
Management
Smart Maintenance
Management
Smart Energy
Management
Smart Planning and
Material Management
• Defect logging
• Maintenance planning
• Condition-based predictive
maintenance
• Intelligent maintenance (AR)
• Intelligent process
optimization
• Zero-loss yield
• Energy management analytics • Supply chain synchronization
• Supply chain integrity
• Autonomous stock control
Advanced
analytics, AI,
machine learning
IT/OTcybersecurity
Digital enablers
Automation,
robotics
Digital
twin
Augmented
reality,
virtual reality
Blockchain
Smart Tasks Management (My Tasks)
Given that the sheer range and velocity of emerging technologies can be overwhelming and distracting, the approach is
to stay focused on tried-and-tested use cases that address specific productivity challenges and emphasize immediate
value creation.
Advanced technologies offer significant potential as a supporter of manufacturing resilience. However, the reality for most
manufacturers is that the return on investment in shop floor digital adoption has been disappointing so far. We need to find
more effective ways of scaling and capturing the value of digital transformation investments.
Smart process optimization
Page 11 Harness the power of digital through EY Smart Factory

13. Digital twin and plant simulation for a $15b automotive supplier
A digital twin
not only
identifies
where the
problem is,
but it can
predict the
outcome of
every possible
course of
action, helping
the user to
converge on
the optimal
solution.
Plant-level digital win models using smart objectsBusiness questions
Textiles
Natural
rubber
Chemicals
Steels
Fabric
Fabric bias cutter and
sheet calendar
Tire building
machine
Curing
press
Visual
inspection
Force
variation
X-ray
Balance
Financial report Finished
tire
Wire
calendar
Wire
treatment
cutter
Bead
construction
Extruders
Banbury
mixer
Bead, belt,
carcass wire
…
Plant 1 Plant 2 Plant 3 Plant n
Consolidated financials
Suppliers
Material
inventory
Plant
models Distribution Sales
What is the
optimal product mix
given our current
manufacturing
footprint?
How can
we optimize the
production schedule
to improve our
throughput?
Where should
we allocateCapex to
maximize profits?
How will
adding a new
product impact
production
capacity?
Where is our
system bottleneck?
Enterprise
digital twin
•Plant-level
financials
•Consolidated
financials
Benefits
Better informed CapEx
allocation taking into account
product, manufacturing and
schedule complexity through
the exploration of alternative
scenarios
Leaner operations through
improved material flow, lower
WIP levels and reductions in
overtime
Improved single and multi -
plant site/line selection and
production schedules
Real-time detailed shop floor
scheduling and bottleneck
identification
Improved supply chain
Increased SKU profitability by
understanding the true
cost of producing the SKU
•
•
•
•
•
•
Consolidate
plant models
Page 12 Harness the power of digital through EY Smart Factory

14. Factory of the Future Benchmarking Study
* Smarterchains study sponsored by EY from June 2019 to February 2020
Study overview*
Factory of the future dimensions
 Factory of the future leadership
 Digital organization
 Data-driven maintenance
 Automated data flow
 Automated material flow
 Digital-ready infrastructure
 360-degree factory visibility
 Intelligent quality
 Tech-augmented workforce
 Zero-touch production Automationanddigitizationmaturity
Operational excellence maturityLow High
High
Low
Digital
novice
LeadingTechnology first
Beginner
Page 13 Harness the power of digital through EY Smart Factory

15. Are you
manufacturing
for the future or
manufacturing
the future?
EY Smart Factory
brochure
Could a smart workforce
be the key to
manufacturing
excellence?
Thought leadership:
What creating a high-
performance culture
in manufacturing
really means
EY Smart Factory
Daily Management
brochure
EY Smart Factory
Deployment brochure
EY Smart Factory
Process Optimization
EY Smart Factory
Production System
EY Smart
Factory
solution
overview
EY Smart
Factory
point of
view
How pre-built, integrated
applications can accelerate smart
factory adoptionj
Why a robust production system is a
prerequisite for the smart factory
How a digital coach can improve
the deployment of a production
system
How the smart factory can make
your shop floor smarter
Additional information available at ey.com/mfg
Page 14
How digital twins give
manufacturers a real-
world advantage
How to navigate supply chain
disruption with digital process
mining and digital twins
https://www.smarterch
ains.com/factory-of-
the-future-cpg-study-
2020-interactive
Harness the power of digital through EY Smart Factory

16. Speaker contact information
Jay Welsh, Principal, Ernst & Young LLP
EY Americas Supply Chain & Manufacturing Leader
jay.welsh@ey.com
Mobile: +1 508 259 1188
Greg Wagner, Senior Manager, Ernst & Young LLP Ernst & Young G
Supply Chain & Manufacturing
greg.wagner@ey.com
Mobile: +1 847 450 9310
Sachin Lulla, Principal, Ernst & Young LLP
EY Global Digital Strategy & Transformation Leader
Advanced Manufacturing & Mobility
sachin.lulla@ey.com
Mobile: +1 310 430 5393
Page 15 Harness the power of digital through EY Smart Factory

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About EY
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© 2020 Ernst & Young LLP.
All Rights Reserved.
US SCORE no. 09476 - 201US.
This material has been prepared for general informational
purposes only and is not intended to be relied upon as
accounting, tax or other professional advice. Please refer
to your advisors for specific advice.
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