Interview
Industry 4.0 in German Mid-Sized Companies: “Optimizing Production Processes Presents a Great Opportunity”

In the interview, Thomas Holm speaks about the opportunities that Industry 4.0 provides for mid-sized companies and offers insights into the corporate practices at WAGO.

Thomas Holm

Thomas Holm has been involved with optimizing production processes at WAGO since 2015 and is a leading participant in developing the DIMA concept (Decentralized Intelligence for Modular Applications). The 38-year-old engineer studied mechanical engineering and business administration in Hamburg, London and Hagen. His PhD thesis at the Helmut-Schmidt University in Hamburg was on “Cost Evaluation in Modular Process System Engineering.”

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Thomas Holm

Many experts feel that mid-sized German companies are lagging far behind when it comes to implementing Industry 4.0. Why is that, in your opinion?

Implementing Industry 4.0 means a comprehensive change to the business model corporations are accustomed to, as well a transformation of the technologies used. This results in changes that affect all levels of operation, which can lead to both immense opportunities and the risk of high economic losses. It is precisely within mid-sized companies where business risk and liability become one in the minds of typical management team: If there’s even the slightest hint of risk, then some corporations simply will not take that first step.

In which sectors or applications do you see the greatest benefit of IoT applications?

IoT applications produce added value from connecting uniquely identifiable objects that are also virtually represented on an Internet-like platform. By combining and comparing the virtual images, including current operating data for the associated objects, information can be derived and the design processes accelerated. The basic prerequisite is the connection of an object to the Internet, which requires the use of IT security measures. Thus, the greatest initial benefit is seen in applications in which only sensitive information that requires protection is exchanged. Contents such as energy consumption, operating data or wear information are included here.

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Implementing Industry 4.0 means a comprehensive change to the business model corporations are accustomed to, as well a transformation of the technologies used.

Where do you see the greatest opportunities for WAGO with respect to implementing IoT applications?

Optimizing production processes presents a great opportunity. Individual machines are often developed by experts, and they can adapt them to a production process during commissioning on site and perfectly customize them to their environments. In many cases, this optimization no longer occurs during subsequent operation; the machine drifts away from its operating optimum and functions inefficiently, leading to increased wear under certain circumstances. By transmitting a specific operating parameter to personnel, the machine could be kept in optimal operating condition; the production processes would then require fewer resources, and idle times would be reduced.

What are the greatest digital challenges for WAGO?

As a German company and supplier of automation solutions, we have two tasks: On one hand, we must prepare for changes as a company, e.g., use the added value from digitizing the value creation. On the other, we must develop solutions for implementing this digitization in automation. We are thus facing the same challenges as our customers. Together with them, we can develop the solutions.

WAGO offers solutions for implementing Industry 4.0 concepts – how are these concepts being put to use in your own products?

We regularly test the newest developments and allow the knowledge to flow into our own production. This allows us to maintain state-of-the-art production. Thus, for example, the degree of networking in our production machines is already quite high, which reduces the use of resources to keep our German production facility viable.