Information technologies make our lives easy by injecting new vitality into traditional industries and creating new business models and new types of business.

Amidst the digital trend, Shanghai Electric has leveraged new technologies for industrial transformation and upgrade across the board, thereby driving the next-round economic development. New technologies represented by AI are exerting great influence on our production process, models, and supply chains. With digital technologies, Shanghai Electric will launch a cloud-to-terminal manufacturing migration.

Digital Technologies as New Drivers

"We used to focus on product design, process improvement, strict whole-process quality management, and the addition of field service personnel. The rapid emerging digital technologies represented by big data, cloud computing, and the Internet of Things have brought us into an era of 'Internet Plus' and digital economy. A digital wave is taking shape. We must commit ourselves to digital excellence in a bid to realize continuous growth and share the benefits brought by digital technologies." Wu Huanqi, Executive Vice President of Shanghai Electric Power Generation Group, said so to foreign media. Digital technologies allow us to provide more efficient and reliable products, to deliver more convenient and professional services, and to make our equipment smarter, factory management easier, and operation more efficient.

Guided by the idea, our Wind Power Group has built the capacity of big data analysis and developed the "FENGYUN" system which is installed at 98 wind farms to monitor over 2,900 turbines. By offering such solutions as wind resource assessment, remote monitoring, and predictive maintenance, the system improves product life-cycle management and services. As a result, we can develop a smart control strategy, build smart wind farms, and deliver Internet-based smart energy solutions. For Shanghai Electric, the newly-launched Iwind will become another important platform to deliver the best total solutions and life-cycle services.

Jin Xiaolong, President of Wind Power Group, believes that big data is essential to intelligent transformation. Data analysis and iteration will help make equipment smarter. "In the trend of intelligent development, we must first promote fine management at wind farms. Next we will shift from field control to centralized control for optimal control of a single unit. Given poor accessibility, offshore wind farms, in particular, require remote trouble shooting in their operation and maintenance. At the same time, data collection and analysis will enhance wind turbines in auto tuning, thereby improving wind farm control. All these rely on Iwind which will collect accurate data to shorten debugging period and realize efficient remote support. It works not only in post-market operation and maintenance. In early development, the full application of big data and smart technologies will greatly shorten the development cycle of new models and make customized design possible for every farm.

"We work to build our algorithm platform and put AI technologies into use in industrial, commercial, financial, and medical activities so that we can make our products, production, and services smart," said Yang Jiarong, Director of AI Research and Application Lab of Shanghai Electric Central Academe. "With a complete set of basic algorithms and diverse industrial models, our smart industrial module works in different scenarios, for example, turbine health management and elevator safety control."

Shanghai Mitsubishi Elevator Service Center in Changhua Road, Jing'an District features a 10-meter-long screen which shows, through the map of China and cities like Shanghai, its service network nationwide and in key regions. Shanghai Mitsubishi Elevator equips all its elevators with a remote monitoring and diagnosing device which provides the information of elevator operation through 3G network. Thanks to the IoT, the elevator industry has combined manufacturing with services. With 60,000 elevators connected to the IoT ecosystem, we can realize real-time monitoring and remote diagnose, and shorten emergency response time to 18 minutes. The share of elevator services has quickly grown to one third of the elevator industry.

The IoT makes our elevators smarter. The device not only allows immediate troubleshooting but provides the status information of elevators for the service center through automatic examination. The device can also obtain the data of elevator operation including, the number of times that the elevator starts, stops and moves, the number of opening/closing times at each floor, the registered data of each floor call, and the number of times that steel wires bend. A comprehensive analysis of the data will provide the basis for timely part replacement.

As its development comes to a new stage, AI will see a change from point-type growth to surface-type one in vertical sectors. With respect to manufacturing, an AI-based industrial Internet will transform the fundamentals of the intelligent manufacturing sector, according to Yang Jiarong. The industrial Internet is, in general, a product of deep integration between the manufacturing industry and new-generation information technologies such as big data and AI. It can create a new network infrastructure featuring complete interconnection of people, machines and materials. That will enable new business and application mode capable of smart development. Combining intelligent manufacturing and AI is a key direction for developing the industrial Internet, which has grown into the most important carrier for applying AI technologies to the industrial sector.

A Shift Towards Intelligent Manufacturing

Li Hui, product manager of Shanghai Electric Central Academe, states that traditional industrial data is decentralized, i.e. no data communication between equipment and between production lines. Offline manual inspection is needed for monitoring and maintaining lots of equipment. The big data platform with AI algorithms today can enable data connectivity, which not only improves the efficiency of operation management but also facilitates fault prediction.

The production model will also change from "production by forecast" to "make-to-order". The process of idea to market accelerates, and consumers can inform producers of their demand easier. As technologies evolve, traditional manufacturing needs to embrace the future and reforms itself. What the digital economy brings is more than growth. The production process has been optimized. Manufacturing plants are turned into "smart" plants.

Lingang Works is an example. The plant has introduced world-leading stacking robots, automated logistics storage equipment, automatic transmission line, and laser navigation AGV. They allow seamless connection among four modules of the system, which powers a big step forward in building a large smart plant of turbine generators. When exploring how intelligent manufacturing affects the production, the plant has collected and analyzed real-time CNC operation data to independently develop MCIS digital centralized control system of machines. It allows linkage analysis of machine data and plan execution, to maximize the equipment utilization rate.

The Lingang Works has committed to building a digital plant since 2008. After the ERP system was implemented, the plant has been making full use of information technology and systems to build new manufacturing technologies and systems based on its own characteristics, and carrying out targeted and phased construction of digital systems for each stage of plant manufacturing.

Making new products is an iterative process in terms of both design and production. Fine tuning is part of the process. AI can significantly shorten this process and scale up the manufacturing efficiency. As the manufacturing process of many products involves a series of steps, it is sometimes a challenge to locate the source of the problem when the final product fails in the test. AI, data science, and data analysis enable automatic identification of wrong steps in production.

At Highly Group, each product model in its digital form is present throughout the life cycle from raw materials to parts production and assembly, and package and delivery of finished products. Parametric design allows rapid product customization for our customers. The production-supply-marketing integration plan enables precise control over the entire value chain involving "customer demand", "sales order", "procurement", "manufacturing" and "shipping". Supply chain management supports real-time collaboration of globally-procured resources and cross-regional coordination among five Highly manufacturing bases in four cities. AVG unmanned trolleys and three-dimensional warehouses ensure efficient logistics scheduling and resource allocation of production materials. Real-time monitoring of process quality based on the association of quality big data allows active error prevention. Automated production lines were established, in which a skilled worker can manage seven robots which can replace 21 skilled assembly line operators, driving up the efficiency of industrial manufacturing.

In the future, plants may use smart automatic forklifts and conveyor belts to carry materials and finished products. Machine vision can be used for not only micro-level quality inspection, but also training robots to perceive the surrounding environment to avoid interruption or danger in the future. Being a big idea, a smart plant is actually a network with many individual plants. At Shanghai Electric, the network includes not only Highly and Lingang Works, but many others. Together, they form a large "spider web" that covers the entire production cycle of the enterprise.

That marks a successful transition from "Made in China" to "Intelligent Manufacturing in China" at Shanghai Electric, which is recognized as a player with digital plants and the intelligent manufacturing system built on the integration of informatization and industrialization. Smart plants feature the digital product, smart equipment, automatic logistics, and information-based integrated end-to-end process that is networked. Customers' personalized needs are transformed into mass customization orders. Value is created by delivering high-quality products, ensuring fast response and offering precise services.

Build a Smart City with Smart Rails

As land becomes scarce in cities, urban traffic becomes dense and busy. It is, therefore, a pressing need for urban transportation solutions that are simpler and more intensive with higher efficiency. The technological trends of vehicles are safe and reliable, green and energy-saving, and intelligent and advanced.

"If the big data platform with AI algorithms is applied to high-speed rail or subway bearings, maintenance technicians can fully understand the unit status in the monitoring room. This, on the one hand, can minimize the maintenance cost, and on the other hand, avoid major accidents from happening," said Li Hui.

At the beginning of this year, Shanghai Electric held the "Intelligent Electronic Rail Transit System" conference at the Lingang Heavy Machinery Equipment Manufacturing Base, to announce China's first intelligent electronic rail transit (IERT) system test line. A key feature is using advanced in-vehicle sensing and control technologies to enable road informatization and vehicle intelligence. That allows accurate driving guidance and deployment, which can support an upgraded traffic control with high efficiency and low investment.

A new large-capacity efficient and automated artery transportation system, the test line features magnetic nail sensing technology and a "road-car-people-station-signal" integrated management system which can normally function even in extreme conditions such as low temperature, rain, and snow. Electronic hooks, virtual electronic rails, and other technologies are used to accurately coordinate and flexibly allocate the vehicles. It supports grouping of vehicles with adjustable traffic and automatic driving of vehicles along set tracks as sensors mounted in the vehicle bottom or other locations can identify magnetic nails embedded in the road. In addition, it can control a track deviation within 15cm. Tramway must have a width of 4m and BRT lane of at least 3.5m. In comparison, IERT only requires a width of 3m thanks to precise guidance by electronic virtual tracks. The deviation from set tracks is extremely small when the vehicle is taking a turn, moving straight, stopping, or even operating at night. Fast and safe running is guaranteed even on narrow, dedicated lanes.

IERT combines a number of disciplines such as AI, information technology, and advanced rail transit equipment. It is not only a key trend stated in the "Made in China 2025", but also an overall solution to satisfy medium-volume transportation in smart cities. Shanghai Electric is launching a new round of development, and intelligent manufacturing and smart city will be major trends of automation. Release of the system evidences the strong confidence of Shanghai Electric to expand its presence in intelligent transportation. As IERT combines the advantages of both intelligent electronic rail and ground transportation, the system boasts huge potential. When technologies become ripe, it will replace part of the rail transit, tram, and BRT system. Its actual operational results upon completion will decide on its promotion in Shanghai and across China.

In-depth Application of AI to Traditional Manufacturing

Imagine what the future manufacturing industry will be like: clusters of technologies including AI, big data, cloud computing, 5G communication, Internet of Things, and many others will catalyze fundamental changes in the manufacturing industry in terms of the value chain, production mode, business model, and product design.

"AI, a core driver of the new round of scientific and technological revolution and industrial transformation, has grown to be a national development strategy of China," said He Renlong, Director of East China Branch of CAICT, who stated that China has a good policy environment for developing AI.

It can not only upgrade the competitiveness of traditional manufacturing, but also form new sources of growth. The wave of intelligent manufacturing and the integration of information technology and manufacturing industry mean more requirements for independent innovation in core technologies for various industries.

Some commented that data is growing as per Moore's law supported by the Internet, Internet of Things, cloud computing, smart city, and smart planet. In the new digital world, data, as the oil of the future, has become the most valuable production factor. Whoever can seize the trend will take charge of the revolution.

Shanghai Electric has established its medium- and long-term strategy for developing its own digital technologies as early as 2010. Modern information technologies will be combined with traditional manufacturing equipment, and efforts will be focused on developing digital technologies to expand Shanghai Electric's presence in the digital economy.

At the end of last year, Shanghai Electric identified its digital development strategy: it will enable "digital empowerment" according to the advantages and characteristics of the equipment manufacturing industry. By driving the upgrade of industrial forms, business forms, and value forms, it will gain strong support for its total transformation to high-end manufacturing. It aims to be a pioneer in the industrial segment and become a new growth engine for the group.

Along with a rapid-growing digital economy, cloud computing, big data, and AI are powering social changes at a rapid pace. The trend of the manufacturing industry is to offer personalized products and services that customers need at a lower cost, faster speed and of higher quality.

Next, the Digital and Information Technology Department will focus on executing the group's digital strategy. While maintaining existing advantages and foundation of the equipment manufacturing industry, it will accelerate the digitalization process themed "empowering the industry and cultivating the digital capabilities of the group". In addition, Shanghai Electric will also establish Shanghai Electric Digital Company, which, as a carrier for the group's digital capabilities, will offer platforms and solutions internally and provide services for outsiders. With the company as the carrier, digital technicians sharing the same attributes within the group will be gathered together to gain an edge in resource sharing.

In the face of opportunities and challenges presented by the existing digital transformation, the Digital and Information Technology Department will remain committed to forming strong digital driving forces to power a new round of development at Shanghai Electric under the principles of openness, cooperation for win-win, collaboration for progress, and active attitude. It is already a fact that AI is already on its way from the cloud to the terminal. For traditional manufacturers like Shanghai Electric, it is a great opportunity to transform and upgrade themselves with the help of the Internet of Things, big data and AI.