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BATANGAS STATE UNIVERSITY

College of Engineering, Architecture and Fine Arts

Electrical Engineering Department

Main Campus II, Alangilan, Batangas City

INTERNET OF THINGS

Submitted by:

Fampulme,Christine Angelic F.

EE-5102

Submitted to:

Ms.Lysa V. Comia

Instructor
Pioneers the Smart, Connected Printing Press

Challenges facing printing industry

The trend away from print media and towards digital communications is having a major
impact on the printing industry. Some printing markets, such as newspapers and corporate
printing, have seen significant reductions in demand while others, such as packaging and in-store
displays, are still growing. Overall, the printing industry has considerable excess capacity which
has resulted in debilitating price wars. The commercial printing industry has adapted to these
trends through a process of consolidation in which many less efficient printers have gone out of
business while a smaller number of well managed and technologically astute printers have
thrived. Many of the well managed companies that have succeeded in this challenging
environment utilize digital printing technology to provide highly flexible and customized
production, often providing the capability to customize each individual printed piece. Today’s
leading edge print shops are often integrated in a digital supply chain with their customers and
suppliers. Some offer value-added services such as publishing and logistics, 7X24 operation and
serve a global market

First attempt at smart, connected services achieves limited success

Perhaps no company in the world is as closely tied to the fortunes of the commercial printing
industry as Heidelberger Druckmaschinen, known in English as Heidelberg, which makes printing
presses for sheetfed offset, digital and flexo printing, as well as prepress and finishing machinery
and software for integrating all of the processes within a print shop. The company is by far the
largest producer of printing presses with a market share that encompasses approximately half
the world market.

Heidelberg has spent more than 15 years transforming its products, organization and business
model to deliver value to its customers with smart services. This initiative originated with the vision
that smart, connected services had the potential to revolutionize the printing machinery business
by enabling presses to deliver much higher levels of uptime and productivity to print shops.

Heidelberg made its first attempt at building connectivity into its printing presses in the late 1990s
by offering an optional dial-up service that captured a few key operating parameters from the
machine and uploaded them to remote service personnel who used them in diagnosing the
customer’s problem. This first effort was limited to a very small number of data points so it was
useful in solving a relatively small proportion of potential press problems. But it demonstrated the
potential of the concept and thus encouraged further development in this direction.

Strategic choices are made and products are transformed

By 2002 the project showed positive results but the company decided that in order to exploit its
full potential it needed to be expanded. At this point, Heidelberg already had several thousand
sensors in each of its printing presses that monitored nearly every aspect of press operation and
transmitted data to the control system where it was used to make operating decisions in real time.
Heidelberg management decided that taking full advantage of the potential of smart services
required that the control systems for each of its presses be redesigned nearly from scratch so
that all sensor data would be available for remote access. The decision was made to approach
the challenge incrementally by providing support for remote access whenever a control system
was upgraded. Over the course of a few years, the company upgraded each of its presses with
typical presses providing more than 3,000 sensors that can be accessed remotely.

In 2004 Heidelberg introduced its first web-based service which offers remote diagnosis of
customer problems on a much larger scale. The company’s Remote Diagnosis service provides
instant remote troubleshooting and application advice. The operator in a print shop provides a
Heidelberg service expert with access to the press directly from the press control system to review
log files, run diagnostics and analyze faults. The customer maintains control of the process by
determining what information is transferred to the Heidelberg expert. This approach saves time
by eliminating the need for the customer to provide the information over the phone such as the
press serial number, software version, etc. Many electronical issues can be fixed over the remote
connection, eliminating the need for site visits by technicians and associated labor and travel
costs, but most important helping to reduce customer downtime

Early solutions create value and require additional transformation

The Remote Diagnosis service was very well received by customers. Since then, smart services
have become an important part of the development process at Heidelberg for every new press,
ranging from the concept stage, when the parameters that will be available for remote access are
selected, to the later stages where a remote connection is used to test the functionality of the
smart services.

Heidelberg’s eCall, which was introduced in 2008, takes smart, connected services to the next
level by sending automatic notification to the printer in case of a problem. The printer can then
request service with the click of a button. An automated pre-analysis tool transmits the fault details
to the responsible Heidelberg service expert who can then immediately get started on solving the
problem. The combination of automated notification to Heidelberg and guaranteed response time
which is included with the eCall service agreement reduces response time by 50% compared to
the normal incident process without eCall. Gerhard Keinath, CEO, of commercial printing firms
Keinath Offetdruck GmbH & Co., had this to say about his company’s experience with eCall:
“Shortly after eCall was installed, we had an error message on our press control. We only had to
touch the eCall button and 20 minutes later got a callback from the Heidelberg service team. The
problem was solved remotely.”

As Heidelberg began delivering smart services, it quickly became clear that customers required
assurance that connecting their presses to Heidelberg will not create any security risks.
Heidelberg developed a security plan that began with the development of security standards for
the company’s computing systems. Each press is designed so that it cannot be operated remotely
in order to prevent accidents that might otherwise occur if an operator was working on the machine
when it began to operate based on a remote command. Heidelberg hired the TÜVIT independent
German technical inspection organization to audit the security of the company’s smart services.
Heidelberg was certified twice and created a whitepaper document to communicate its security
standards with its customers.

It soon became clear that smart services provided a fundamentally better way to provide service
on printing presses that was advantageous both to customers and to Heidelberg’s own service
team. Smart services benefit customers by offering faster solutions to machine problems and
benefit the press manufacturer by reducing travel expenses and increasing customer satisfaction.
Based on this insight, Heidelberg management decided to offer remote service at no charge
during the first year after a machine is sold as part of the warranty program. The Heidelberg sales
force discovered that once the customer experiences the benefits of smart services during the
warranty period, it is easier to convince them to pay for the service after their warranty expires.
Even when customers choose not to purchase a remote service contract, the machine is
connected to the Internet so that customers can choose to utilize the remote services on a per-
incident basis.

Enhanced solutions create more value and require more transformation

Heidelberg’s Predictive Monitoring service introduced in 2012 pioneers the use of predictive
maintenance to reduce downtime to even lower levels. The machine continuously sends data via
the Internet to a Heidelberg big data analytics system that analyzes it and searches it for trends
that predict the occurrence of a problem long before it has a noticeable impact on the performance
of the press. Whenever the big data analytics system identifies an issue, a Heidelberg expert is
notified, pours over the data and personally makes the decision as to whether the customer should
be notified. The ability to detect indications of failure prior to an actual breakdown makes it
possible for the customer to avoid production downtime by scheduling required maintenance for
a time when the machine would normally not be operating. This approach also reduces downtime
by making it possible to combine tasks that are required now or in the future in a single service
call. Besides addressing potential press problems, the Predictive Monitoring service also includes
information that can help increase machine utilization such as the time spent on production, setup
and maintenance as well as scrap.

Heidelberg’s Performance Plus launched in 2013 with the goal of optimizing the operation of the
entire print shop. Performance Plus is a smart service that takes advantage of the performance
data provided over the remote network to help printers increase profits either by lowering costs
per job produced or by achieving a higher total output per hour. Press performance data as well
as anonymous values from a comparable peer group are displayed in an online portal that can be
accessed by the customer as a service called Performance Benchmarking. If the customer sees
a need for action, he or she can decide to contact the Performance Plus team to get further
assistance. In the beginning of a Performance Plus engagement, the customer and Heidelberg
engineers examine the operation of the printing plant and data that has been collected from the
data analytics system. This is more detailed than the Performance Benchmarking data and gives
more information about individual points that need improvement. Heidelberg experts work with
the customer to develop a customized program that sets measurable goals for achieving
improvements in all aspects of the plant’s operation and includes a project plan designed to
achieve these goals. During monthly performance reviews, Heidelberg guides the customer
through the data and provides recommendations on how to improve output on an ongoing basis.
Heidelberg collects a percentage of the savings achieved by the customer as its consulting fee.
As of 2015, 10 Performance Plus consultations were in progress in the U.S. The average project
duration was twelve months and customers saved between 1,000 to 2,000 production hours per
project.

The dramatic expansion in the Heidelberg smart services prompted major changes in the required
skills and business processes used by the service organization. Heidelberg created a training
program that was used to train over 1,000 technical experts in the service team on how to utilize
smart services in solving problems for customers. For example, the experts were trained in how
to interpret event messages in order to diagnose an ongoing or emerging problem. The service
team was also trained to explain to the customer the process that they used analyze the
customer’s data and arrive at their diagnosis. In addition to retraining the existing service team,
the expanding role of smart services in the press service process was used to update

the qualities that the company sought in new members of the service team. The company’s sales
team, which traditionally focused on equipment sales, had to be trained in selling smart services.
For example, they learned how to demonstrate to customers how smart services can help printers
generate additional revenues by preventing breakdowns.

The future shows the opportunities for value creation

Heidelberg has responded to the challenges faced by the entire printing industry by putting more
emphasis on developing integrated overall processes that can ensure the success of its
customers. Today, Heidelberg generates about 40% of its sales from services, consumables and
spare parts and it continues to reorient its product portfolio towards global growth segments,
especially digital printing, consumables and services. Heidelberg focused its initial rollout of smart
services to developed economies in Europe, North America and Japan. More recently, the
company has recognized that the owners of printing businesses in the developing world are
increasingly eager to maximize utilization of their capital assets by reducing production downtime.
Heidelberg is moving to address this trend by selectively offering smart services to new markets
around the world.
Heidelberg has always sold and serviced at least 90% of the machines it sells with its own internal
staff. Smart services are a good fit with the company’s direct sales and service model in that they
deepen the relationship of Heidelberg with its customers and better utilize the time of its highly
skilled service engineers by reducing travel time. Heidelberg plans to continue to maintain direct
relationships with its customers without going through an intermediary or dealer for the vast
majority of its sales.

Heidelberg remote services have revolutionized the process of detecting and rectifying printing
machinery failures in a fraction of the time required in the past. Heidelberg smart, connected
services are capable of solving about 70% of press electronic problems and application questions
and 90% of software problems without the need for an onsite service call. In cases where the
problem cannot be fixed remotely, the expert can at least diagnose the problem to ensure that
the right expert with the right parts is sent to fix the problem. The savings that accrue to the
customer from Remote Diagnosis and other smart services from avoiding the need for a service
call are substantial. The cost of a typical service call might include 200 € in travel and expenses.
The machine might also typically sit idle for 5 hours while waiting for the service engineer at a
cost of 300 € per hour for another 1,500 €. With Remote Diagnosis, on the other hand, travel
expenses are eliminated and downtime is typically reduced to 15 minutes, resulting in savings of
1,625 €.

REACTION:
In the face of progressive globalization, brand companies with an international sales and
production infrastructure also have a growing need for additional packaging variants, a more
individual sales approach, and a shorter time-to-market. The appearance of packagings at the
point of sales has a direct influence on the purchase decision and the brand experience of
consumers. The printing press and subsequent technological advances related to paper
manufacturing and distribution led to the establishment of print as the first mass medium.

CONCLUSION:

Heidelberg has spent more than 15 years transforming its products, organization and
business model to deliver value to its customers with smart services. Perhaps this company is by
far the largest producer of printing presses with a market share that encompasses approximately
half the world market. This initiative originated with the vision that smart, connected services had
the potential to revolutionize the printing machinery business by enabling presses to deliver much
higher levels of uptime and productivity to print shops.

RECOMMENDATION:

With the new usage concept of the printing machinery business they should still focus on
the delivery of smart services that increase uptime and provide information that can be used to
better manage a printing operation, Heidelberg is well positioned to continue to expand its
leadership position in the printing machinery business.

Referrence:

https://www.ptc.com/-/media/Files/PDFs/Case-Studies/J6684-Heidelberg-
CS_EN_v1b.ashx?la=en&hash=724504B94C60C11FECC9B988D9E025C0756CE7F0

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