Munich Re partners with digital duo to ‘revolutionise’ smart factory offering

Munich Re has teamed up with digital partners to set up, risk manage and insure smart factories to allow manufacturers to take advantage of Industry 4.0 developments. Germany-based KUKA, which supplies intelligent automation solutions, will develop the robot-based automated plants and Porsche-owned consultancy MHP will provide digital expertise and systems. Munich Re will complete the new business model with integrated risk management and finance models. Known as SmartFactory as a Service (SmartFactory), the trio said they have combined their services into “one vision” to offer industry a new business model to “revolutionise automotive manufacturing”. The firms said small-scale manufacturing will be commercially viable under the SmartFactory business model as it mitigates risks and investment costs. In addition, product development will become faster, with the time to take products to market reduced by up to 30%. Munich Re said manufacturing is under pressure from clients to innovate and leave traditional practices behind to become more competitive. “This transformation demands great flexibility and transparency along the entire value chain – and access to critical resources. It is generating high capital costs and harbours substantial uncertainty and risks,” the reinsurer said on launching SmartFactory. “Together, the three partners aim to digitalise the whole value chain, realise a high quality end-to-end data flow, and meld areas and systems in the production development process that were previously unconnected. The SmartFactory as a Service will independently and flexibly produce different product types in any quantity and so fulfil clients’ changing demand for customised products,” it added. The team said integrating development, manufacturing and embedded risk, and financial management realises synergies throughout the value chain. Dr Torsten Jeworrek, member of Munich Re’s Board of Management, said: “The combination of state-of-the-art manufacturing technology with the digitalisation of all processes, and with risk management and financial strength enables a new and innovative form of manufacturing. One that we plan to develop in partnership with our clients, supporting them on their journey into the digital future.” SmartFactory as a Service is already in action at a plant in Munich to demonstrate how the new model works in practice and the new technology behind it. Dr Till Reuter, CEO at KUKA AG, said: “A plant’s ability to adapt is the key criterion in making manufacturing fit for the future...Our cooperation with Munich Re and MHP brings the business models of the future a great deal closer.” Dr Ralf Hofmann, CEO at MHP, said: “Acceleration can no longer be confined to the shop floor. We need a self-contained ‘engineering value chain’ – which means consistent data, processes and organisations. This end-to-end workflow facilitates the optimisation of highly individualised manufacturing – mass customisation using series production tools.”

Munich Re partners with digital duo to ‘revolutionise’ smart factory offering

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