1  Foreword

        Do we really need Ethernet in the production of tomorrow? I think, the answer is YES. The production technology of today has to meet the challenge to develop new strategies for a highly flexible, highly available and cost-effective automation technology.

        Through the gradual increase of Ethernet technology in the automation field industrial communication could be standardized considerably to deal with all the requirements of future automation and production strategies. Industrial Ethernet will provide a basis for a decentralized control structure, a standardized real-time and non-real-time communication and a standardized web-based HMI technology and backup/restore mechanism. By using standardized plug&play mechanism and network diagnostics it will be easy to configure and maintain even complex production networks with approx. 10.000 network nodes.

        For modular, heterogeneous control concepts, the performance and openness of the system are determined by the communication technology used. The distribution of control functions can only be managed within a single homogeneous communi-cation network on all levels of production data transfer. An industrial version of Ethernet with a three-level hierarchy will replace conventional field bus technology as the standardized communication technology, from sensors through to the ERP level.

        By using an “open” production network with several communication associations to the “outside world” the customer will have to deal with new and up to now unknown hazards and risks. The interaction of web-based communication, of PC-based controllers and components and of Microsoft operating systems makes the network vulnerable to attacks by viruses, worms or trojans.

        We will need industrial Ethernet to meet the requirements of future production strategies but we have to be very careful in using the network in a secure way. Contents of the presentation:

        •  Challenges for future market and production strategies in the automotive industry

        •  Consequences for production

        •  Consequences for communication

        •  Hazards and risks

2  Market Developments Within the Global Automotive Industry

        What are the challenges for future market and production strategies of the global Automotive Industries (OEMs):

        •  Shortened model life cycles of car models

        •  Micro-segmentation:

           ?  Increased diversity of variants

           ?  Niche and cross-over vehicles

        •  Shorter delivery times

        •  Production to order

        •  Reduced life-cycle costs

        •  Improved product quality

        •  Integration of e-business strategies

        2.1  Shortened Model Cycles

        The model cycles of the global Automotive Industries become shorter and shorter. If in 1990 a car model was designed for a life span of nine years it’s now just a life span of six years. In the future the OEM’s expect even shorter life cycles for a car.

Fig.1  Shortened model cycles of European OEM’s

        2.2  Micro-Segmentation of the Market

        The diversity of variants within an automotive compony will increases dramatically because of differentiated customer’s expectations and internal brand policy.

        The automotive industry wants to be present even in niche markets to gain market share and market awareness. This includes new segments, (including ones based on high-volume models), to secure market segments and to aid image development.