Foreword |
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xix | |
Preface |
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xxiii | |
List of Contributors |
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xxvii | |
List of Figures |
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xxxi | |
List of Tables |
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xxxvii | |
List of Abbreviations |
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xxxix | |
1 Introduction to Industry 4.0 and the Digital Shopfloor Vision |
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1 | (26) |
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1 | (3) |
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1.2 Drivers and Main Use Cases |
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4 | (5) |
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1.3 The Digital Technologies Behind Industry 4.0 |
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9 | (5) |
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1.4 Digital Automation Platforms and the Vision of the Digital Shopfloor |
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14 | (7) |
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1.4.1 Overview of Digital Automation Platforms |
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14 | (2) |
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1.4.2 Outlook Towards a Fully Digital Shopfloor |
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16 | (5) |
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21 | (1) |
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22 | (5) |
Part I |
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2 Open Automation Framework for Cognitive Manufacturing |
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27 | (44) |
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28 | (2) |
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2.2 State of the Play: Digital Manufacturing Platforms |
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30 | (11) |
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2.2.1 RAMI 4.0 (Reference Architecture Model Industry 4.0) |
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32 | (2) |
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2.2.2 Data-driven Digital Manufacturing Platforms for Industry 4.0 |
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34 | (3) |
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2.2.3 International Data Spaces |
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37 | (4) |
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2.3 Autoware Framework for Digital Shopfloor Automation |
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41 | (16) |
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2.3.1 Digital Shopfloor Evolution: Trends & Challenges |
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41 | (1) |
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2.3.1.1 Pillar 1: AUTOWARE open reference architecture for autonomous digital shopfloor |
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46 | (1) |
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2.3.1.2 Pillar 2: AUTOWARE digital abilities for automatic awareness in the autonomous digital shopfloor |
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48 | (1) |
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2.3.1.3 Pillar 3: AUTOWARE business value |
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51 | (2) |
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2.3.2 AUTOWARE Software-Defined Autonomous Service Platform |
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53 | (1) |
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2.3.2.1 Cloud & Fog computing services enablers and context management |
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53 | (4) |
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2.3.3 AUTOWARE Framework and RAMI 4.0 Compliance |
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57 | (1) |
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2.4 Autoware Framework for Predictive Maintenance Platform Implementation |
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57 | (11) |
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2.4.1 Z-BRE4K: Zero-Unexpected-Breakdowns and Increased Operating Life of Factories |
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59 | (1) |
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2.4.2 Z-Bre4k Architecture Methodology |
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60 | (1) |
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2.4.3 Z-BRE4K General Architecture Structure |
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61 | (1) |
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2.4.4 Z-BRE4K General Architecture Information Workflow |
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61 | (3) |
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2.4.5 Z-BRE4K General Architecture Component Distribution |
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64 | (4) |
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68 | (1) |
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69 | (2) |
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3 Reference Architecture for Factory Automation using Edge Computing and Blockchain Technologies |
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71 | (32) |
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3.1 FAR-EDGE Project Background |
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71 | (2) |
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3.2 FAR-EDGE Vision and Positioning |
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73 | (1) |
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3.3 State of the Art in Reference Architectures |
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74 | (7) |
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3.3.1 Generic Reference Architectures |
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74 | (1) |
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75 | (1) |
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76 | (3) |
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79 | (2) |
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3.4 FAR-EDGE Reference Architecture |
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81 | (10) |
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3.4.1 Functional Viewpoint |
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81 | (1) |
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3.4.1.1 Automation domain |
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83 | (1) |
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83 | (1) |
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3.4.1.3 Simulation domain |
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84 | (1) |
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3.4.1.4 Crosscutting functions |
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84 | (1) |
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3.4.2 Structural Viewpoint |
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85 | (1) |
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86 | (1) |
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87 | (1) |
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88 | (1) |
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90 | (1) |
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3.5 Key Enabling Technologies for Decentralization |
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91 | (9) |
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92 | (2) |
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3.5.2 Permissioned Blockchains |
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94 | (1) |
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3.5.3 The FAR-EDGE Ledger Tier |
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94 | (1) |
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3.5.4 Validation use Cases |
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95 | (5) |
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100 | (1) |
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101 | (2) |
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4 IEC-61499 Distributed Automation for the Next Generation of Manufacturing Systems |
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103 | (26) |
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104 | (2) |
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4.2 Transition towards the Digital Manufacturing Paradigm: A Need of the Market |
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106 | (3) |
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4.3 Reasons for a New Engineering Paradigm in Automation |
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109 | (9) |
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4.3.1 Distribution of Intelligence is Useless without Appropriate Orchestration Mechanisms |
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113 | (3) |
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4.3.2 Defiance of Rigid Hierarchical Levels towards the Full Virtualization of the Automation Pyramid |
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116 | (2) |
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4.4 IEC-61499 Approach to Cyber-Physical Systems |
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118 | (5) |
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118 | (2) |
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4.4.2 Functional Interfaces |
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120 | (1) |
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4.4.2.1 IEC-61499 interface |
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120 | (1) |
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4.4.2.2 Wireless interface |
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121 | (1) |
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4.4.2.3 Wrapping interface |
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121 | (1) |
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4.4.2.4 Service-oriented interface |
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122 | (1) |
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4.4.2.5 Fieldbus interface(s) |
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123 | (1) |
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4.4.2.6 Local I/O interface |
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123 | (1) |
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4.5 The "CPS-izer", a Transitional Path towards Full Adoption of IEC-61499 |
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123 | (3) |
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126 | (1) |
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127 | (2) |
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5 Communication and Data Management in Industry 4.0 |
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129 | (40) |
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Maria del Carmen Lucas-Estan |
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130 | (4) |
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5.2 Industry 4.0 Communication and Data Requirements |
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134 | (4) |
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5.3 Industrial Wireless Network Architectures |
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138 | (6) |
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5.4 Data Management in Industrial Environments |
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144 | (1) |
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5.5 Hierarchical Communication and Data Management Architecture for Industry 4.0 |
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144 | (11) |
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5.5.1 Heterogeneous Industrial Wireless Network |
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145 | (1) |
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5.5.2 Hierarchical Management |
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146 | (1) |
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5.5.2.1 Hierarchical communications |
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147 | (1) |
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149 | (1) |
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5.5.3 Multi-tier Organization |
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150 | (1) |
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5.5.4 Architectural Enablers: Virtualization and Softwarization |
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151 | (1) |
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151 | (1) |
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5.5.4.2 Cloudification of the RAN |
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153 | (2) |
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5.6 Hybrid Communication Management |
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155 | (3) |
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5.7 Decentralized Data Distribution |
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158 | (2) |
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5.7.1 Average Data Access Latency Guarantees |
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159 | (1) |
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5.7.2 Maximum Data Access Latency Guarantees |
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159 | (1) |
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5.7.3 Dynamic Path Reconfigurations |
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160 | (1) |
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5.8 Communications and Data Management within the AUTOWARE Framework |
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160 | (2) |
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162 | (1) |
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163 | (6) |
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6 A Framework for Flexible and Programmable Data Analytics in Industrial Environments |
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169 | (30) |
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169 | (3) |
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6.2 Requirements for Industrial-scale Data Analytics |
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172 | (3) |
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6.3 Distributed Data Analytics Architecture |
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175 | (3) |
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6.3.1 Data Routing and Preprocessing |
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175 | (1) |
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6.3.2 Edge Analytics Engine |
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176 | (1) |
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177 | (1) |
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6.3.4 Distributed Analytics Engine (DA-Engine) |
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177 | (1) |
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6.3.5 Open API for Analytics |
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177 | (1) |
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6.4 Edge Analytics Engine |
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178 | (8) |
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6.4.1 EA-Engine Processors and Programmability |
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178 | (1) |
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6.4.2 EA-Engine Operation |
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179 | (2) |
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6.4.3 Configuring Analytics Workflows |
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181 | (1) |
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6.4.4 Extending the Processing Capabilities of the EA-Engine |
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182 | (1) |
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6.4.5 EA-Engine Configuration and Runtime Example |
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182 | (4) |
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6.5 Distributed Ledger and Data Analytics Engine |
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186 | (5) |
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6.5.1 Global Factory-wide Analytics and the DA-Engine |
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186 | (1) |
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6.5.2 Distributed Ledger Services in the FAR-EDGE Platform |
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187 | (3) |
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6.5.3 Distributed Ledger Services and DA-Engine |
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190 | (1) |
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6.6 Practical Validation and Implementation |
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191 | (4) |
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6.6.1 Open-source Implementation |
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191 | (1) |
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6.6.2 Practical Validation |
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192 | (1) |
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6.6.2.1 Validation environment |
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192 | (1) |
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6.6.2.2 Edge analytics validation scenarios |
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193 | (1) |
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6.6.2.3 (Global) distributed analytics validation scenarios |
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194 | (1) |
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195 | (1) |
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196 | (3) |
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7 Model Predictive Control in Discrete Manufacturing Shopfloors |
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199 | (44) |
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200 | (8) |
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7.1.1 Hybrid Model Predictive Control SDK |
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202 | (1) |
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202 | (2) |
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204 | (1) |
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7.1.4 Model Predictive Control |
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205 | (3) |
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7.2 Hybrid System Representation |
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208 | (5) |
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7.2.1 Piece-Wise Affine (PWA) System |
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210 | (1) |
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7.2.2 Mixed Logical Dynamical (MLD) System |
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211 | (2) |
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7.2.3 Equivalence of Hybrid Dynamical Models |
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213 | (1) |
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7.3 Hybrid Model Predictive Control |
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213 | (3) |
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213 | (2) |
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215 | (1) |
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216 | (1) |
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7.4 Identification of Hybrid Systems |
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216 | (10) |
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219 | (2) |
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7.4.2 State-of-the-Art Analysis |
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221 | (1) |
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7.4.3 Recursive Two-Stage Clustering Approach |
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222 | (1) |
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7.4.4 Computation of the State Partition |
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223 | (3) |
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7.5 Integration of Additional Functionalities to the IEC 61499 Platform |
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226 | (11) |
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7.5.1 A Brief Introduction to the Basic Function Block |
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226 | (3) |
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7.5.2 A Brief Introduction to the Composite Function Block |
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229 | (1) |
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7.5.3 A Brief Introduction to the Service Interface Function Block |
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230 | (1) |
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7.5.4 The Generic DLL Function Block of nxtControl |
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231 | (2) |
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7.5.5 Exploiting the FB_DLL Function Block as Interfacing Mechanism between IEC 61499 and External Custom Code |
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233 | (4) |
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237 | (2) |
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239 | (4) |
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8 Modular Human-Robot Applications in the Digital Shopfloor Based on IEC-61499 |
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243 | (24) |
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243 | (2) |
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8.2 Human and Robots in Manufacturing: Shifting the Paradigm from Co-Existence to Mutualism |
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245 | (2) |
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8.3 The "Mutualism Framework" Based on IEC-61499 |
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247 | (4) |
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8.3.1 "Orchestrated Lean Automation": Merging IEC-61499 with the Toyota Philosophy |
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248 | (1) |
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8.3.2 A Hybrid Team of Symbionts for Bidirectional Mutualistic Compensation |
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249 | (1) |
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8.3.3 Three-Dimensional Characterization of Symbionts' Capabilities |
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250 | (1) |
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8.3.4 Machine Learning Applied to Guarantee Dynamic Adherence of Models to Reality |
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251 | (1) |
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8.4 Technological Approach to the Implementation of Mutualism |
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251 | (6) |
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8.4.1 "Mutualism Framework" to Sustain Implementation of Symbionts-Enhanced Manufacturing Processes |
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252 | (1) |
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8.4.2 IEC-61499 Engineering Tool-Chain for the Design and Deployment of Real-Time Orchestrated Symbionts |
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253 | (1) |
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8.4.3 AI-Based Semantic Planning and Scheduling of Orchestrated Symbionts' Tasks |
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254 | (2) |
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8.4.4 Modular Platform for Perceptual Learning and Augmentation of Human Symbionts |
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256 | (1) |
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8.4.5 Training Gymnasium for Progressive Adaptation and Performance Improvement of Symbionts' Mutualistic Behaviours |
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257 | (1) |
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8.5 The Potential to Improve Productivity and the Impact |
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257 | (4) |
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261 | (1) |
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262 | (5) |
Part II |
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9 Digital Models for Industrial Automation Platforms |
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267 | (18) |
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267 | (3) |
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9.2 Scope and Use of Digital Models for Automation |
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270 | (3) |
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9.2.1 Scope of Digital Models |
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270 | (1) |
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9.2.2 Factory and Plant Information Modelling |
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270 | (1) |
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9.2.3 Automation and Analytics Processes Modelling |
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271 | (1) |
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9.2.4 Automation and Analytics Platforms Configuration |
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271 | (1) |
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9.2.5 Cyber and Physical Worlds Synchronization |
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271 | (1) |
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9.2.6 Dynamic Access to Plant Information |
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272 | (1) |
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9.3 Review of Standards Based Digital Models |
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273 | (4) |
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273 | (1) |
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273 | (1) |
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274 | (1) |
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274 | (1) |
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9.3.5 IEC 61512 (Batch Control) |
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274 | (1) |
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275 | (1) |
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9.3.7 Business to Manufacturing Markup Language (B2MML) |
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275 | (1) |
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276 | (1) |
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9.4 FAR-EDGE Digital Models Outline |
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277 | (4) |
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9.4.1 Scope of Digital Modelling in FAR-EDGE |
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277 | (1) |
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9.4.2 Main Entities of Digital Models for Data Analytics |
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278 | (2) |
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9.4.3 Hierarchical Structure |
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280 | (1) |
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9.4.4 Model Repository Open Source Implementation |
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281 | (1) |
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9.5 Simulation and Analytics Models Linking and Interoperability |
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281 | (2) |
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283 | (1) |
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284 | (1) |
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10 Open Semantic Meta-model as a Cornerstone for the Design and Simulation of CPS-based Factories |
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285 | (32) |
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286 | (1) |
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10.2 Adoption of AutomationML Standard |
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287 | (1) |
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10.3 Meta Data Model Reference |
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288 | (26) |
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289 | (1) |
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289 | (1) |
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10.3.1.2 CompositeProperty |
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289 | (1) |
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10.3.2 Assets and Behaviours |
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289 | (1) |
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10.3.2.1 ExternalReference |
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290 | (1) |
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291 | (1) |
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291 | (1) |
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292 | (1) |
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10.3.3.1 Prototypes and instances |
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292 | (1) |
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10.3.3.2 Prototypes and instances aggregation patterns |
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293 | (1) |
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10.3.3.3 AbstractResourcePrototype |
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295 | (1) |
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10.3.3.4 ResourcePrototype |
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296 | (1) |
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296 | (1) |
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296 | (1) |
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10.3.4.1 AbstractResource |
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297 | (1) |
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299 | (1) |
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299 | (1) |
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300 | (1) |
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301 | (1) |
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302 | (1) |
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302 | (1) |
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303 | (1) |
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10.3.6.3 SimulationScenario |
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303 | (1) |
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303 | (1) |
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10.3.7 Product Routing Model |
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304 | (1) |
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10.3.7.1 Relationship between product routing model and ISO 14649-10 standard |
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305 | (1) |
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306 | (1) |
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10.3.7.3 ProgramStructure |
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306 | (1) |
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10.3.7.4 ProgramStructureType |
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307 | (1) |
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10.3.7.5 MachiningExecutable |
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307 | (1) |
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10.3.7.6 AssemblyExecutable |
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308 | (1) |
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10.3.7.7 DisassemblyExecutable |
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308 | (1) |
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10.3.7.8 MachiningNcFunction |
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308 | (1) |
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10.3.7.9 MachiningWorkingStep |
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308 | (1) |
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10.3.7.10 MachiningWorkpieceSetup |
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310 | (1) |
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10.3.7.11 MachiningSetupInstructions |
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310 | (1) |
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10.3.7.12 ManufacturingFeature |
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310 | (1) |
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10.3.7.13 MachiningOperation |
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310 | (1) |
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10.3.7.14 MachiningTechnology |
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310 | (1) |
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310 | (1) |
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10.3.7.16 Assembly and disassembly |
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311 | (1) |
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312 | (2) |
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314 | (1) |
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315 | (2) |
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11 A Centralized Support Infrastructure (CSI) to Manage CPS Digital Twin, towards the Synchronization between CPS Deployed on the Shopfloor and Their Digital Representation |
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317 | (22) |
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318 | (1) |
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318 | (1) |
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319 | (8) |
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11.3.1 Microservice Platform |
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319 | (1) |
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11.3.1.1 Front-end services |
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320 | (1) |
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11.3.1.2 Security and privacy |
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321 | (1) |
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11.3.1.3 SOA enabling services |
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321 | (1) |
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11.3.1.4 Backend services |
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322 | (1) |
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11.3.2 Big Data Sub-Architecture |
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323 | (1) |
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324 | (1) |
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11.3.2.2 Stream processing engine |
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325 | (1) |
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325 | (1) |
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11.3.2.4 Message queueing system |
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325 | (1) |
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326 | (1) |
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11.3.3 Integration Services |
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326 | (1) |
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11.4 Real-to-Digital Synchronization Scenario |
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327 | (3) |
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11.5 Enabling Technologies |
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330 | (3) |
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330 | (1) |
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11.5.2 Cloud Ready Architecture: The Choice of Docker |
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331 | (1) |
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11.5.3 Lambda Architecture |
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332 | (1) |
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11.5.4 Security and Privacy |
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333 | (1) |
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333 | (1) |
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334 | (5) |
Part III |
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12 Building an Automation Software Ecosystem on the Top of IEC 61499 |
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339 | (26) |
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340 | (1) |
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12.2 An Outlook of the Automation Value Network |
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341 | (7) |
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12.2.1 Characteristics of the Automation Ecosystem Stakeholders |
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342 | (1) |
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12.2.1.1 Automation solution providers |
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343 | (1) |
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12.2.1.2 Components suppliers |
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344 | (1) |
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12.2.1.3 Equipment and machines builders |
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345 | (1) |
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12.2.1.4 System integrators |
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346 | (1) |
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12.2.2 Beyond Business Interactions: Limitations and Complexities of the Existing Automation Market |
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347 | (1) |
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12.3 A Digital Marketplace to Support Value Networks Reconfiguration in the Automation Domain |
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348 | (13) |
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12.3.1 Architectural Characteristics of the Digital Marketplace |
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350 | (4) |
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12.3.2 Value Exchange between the Digital Platform and Its Complementors |
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354 | (1) |
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355 | (1) |
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12.3.2.2 Hardware developers |
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357 | (1) |
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12.3.2.3 Application developers |
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357 | (1) |
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12.3.2.4 Service providers |
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358 | (1) |
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12.3.3 Opportunities of Exploitation of an Automation Platform |
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358 | (1) |
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12.3.3.1 Opportunities for system integrators |
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358 | (1) |
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12.3.3.2 Opportunities for equipment and machines builders |
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360 | (1) |
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12.3.3.3 Opportunities for components suppliers |
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360 | (1) |
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12.3.3.4 Opportunities for automation solutions providers |
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360 | (1) |
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12.3.3.5 Opportunities for new players |
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361 | (1) |
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12.3.3.6 Service providers |
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361 | (1) |
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361 | (2) |
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363 | (2) |
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13 Migration Strategies towards the Digital Manufacturing Automation |
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365 | (28) |
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366 | (2) |
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13.2 Review of the State-of-the Art Approaches |
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368 | (6) |
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13.2.1 Migration Processes to Distributed Architectures |
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368 | (1) |
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13.2.2 Organizational Change Management |
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369 | (2) |
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371 | (3) |
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13.3 The FAR-EDGE Approach |
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374 | (4) |
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378 | (1) |
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13.5 Application of the Migration Approach |
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379 | (8) |
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379 | (2) |
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381 | (1) |
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13.5.2.1 Technical aspects |
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381 | (1) |
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13.5.2.2 Operational aspects |
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382 | (1) |
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383 | (1) |
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13.5.3 Migration Path Alternatives |
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384 | (3) |
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387 | (1) |
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388 | (5) |
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14 Tools and Techniques for Digital Automation Solutions Certification |
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393 | (32) |
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394 | (1) |
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14.2 Digital Automation Safety Challenges |
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395 | (5) |
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14.2.1 Workplace Safety and Certification According to the DGUV |
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398 | (1) |
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14.2.2 Industrial Robots Safety According to ISO 10218-1:2011 & ISO 10218-2:2011 |
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398 | (1) |
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14.2.3 Collaborative Robots Safety According to ISO/TS 15066:2016 |
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399 | (1) |
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14.3 DSA Ecosystem Vision |
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400 | (5) |
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14.4 DSA Reference Architecture |
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405 | (2) |
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14.5 AUTOWARE Certification Usability Enabler |
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407 | (8) |
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14.5.1 AUTOWARE Certification Techniques |
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410 | (3) |
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14.5.2 N-axis Certification Schema |
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413 | (1) |
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413 | (1) |
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414 | (1) |
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414 | (1) |
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14.5.2.4 Analysis & reports |
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414 | (1) |
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14.6 DSA Certification Framework |
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415 | (4) |
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14.7 DSA Certification Methodology |
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419 | (3) |
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422 | (1) |
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423 | (2) |
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15 Ecosystems for Digital Automation Solutions an Overview and the Edge4lndustry Approach |
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|
425 | |
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425 | (2) |
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15.2 Ecosystem Platforms and Services for Industry 4.0 and the Industrial Internet-of-Things |
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427 | (11) |
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15.2.1 ThingWorx Foundation (Platform and Ecosystem) |
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427 | (2) |
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15.2.2 Commercial Cloud-Based HOT Platforms |
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429 | (1) |
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15.2.3 Testbeds of the Industrial Internet Consortium |
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430 | (1) |
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15.2.4 Factory Automation Testbed and Technical Aspects |
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431 | (1) |
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15.2.5 Industry 4.0 Testbeds |
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432 | (1) |
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15.2.5.1 SmartFactory pilot production lines - testbeds |
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432 | (1) |
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15.2.5.2 Industry 4.0 production line |
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433 | (1) |
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15.2.5.3 SkaLa (scalable automation with Industry 4.0 technologies) |
|
|
433 | (1) |
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15.2.5.4 Key finder (The keyfinder production line from SmartFactoryKL) |
|
|
434 | (1) |
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15.2.5.5 SME 4.0 competence center kaiserslautern |
|
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435 | (1) |
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15.2.6 EFFRA Innovation Portal |
|
|
435 | (1) |
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15.2.7 FIWARE Project and Foundation |
|
|
435 | (2) |
|
15.2.8 ARROWHEAD ARTEMIS JU Project and ARROWHEAD Community |
|
|
437 | (1) |
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15.3 Consolidated Analysis of Ecosystems - Multi-sided Platforms Specifications |
|
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438 | (2) |
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15.3.1 Consolidated Analysis |
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438 | (1) |
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15.3.2 Multi-sided Platforms |
|
|
439 | (1) |
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15.4 The Edge4lndustry Ecosystem Portal |
|
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440 | (5) |
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442 | (1) |
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443 | (2) |
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445 | (1) |
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|
445 | (1) |
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15.4.5 Sign-in and Registration |
|
|
445 | (1) |
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|
445 | (1) |
|
|
446 | (1) |
16 Epilogue |
|
447 | (4) |
Index |
|
451 | (2) |
About the Editors |
|
453 | |
9781634258944 |
|
Foreword |
|
xiii | |
|
Preface |
|
xv | |
|
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Acknowledgments |
|
xxiii | |
About the Authors |
|
xxv | |
About the Editors |
|
xxxi | |
Part I. Introduction |
|
|
|
3 | (6) |
|
|
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Chapter 2 The Importance of Cybersecurity Due Diligence for an M&A Deal |
|
|
9 | (34) |
|
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1 Cybersecurity Challenges |
|
|
9 | (6) |
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2 Vulnerability of Target's Digital Assets |
|
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15 | (1) |
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3 Vulnerability of Target's Operations and Businesses |
|
|
16 | (2) |
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4 Vulnerability of Target's Dependency on Critical Infrastructure |
|
|
18 | (1) |
|
5 Contamination of the Acquirer's Networks and Data |
|
|
19 | (1) |
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6 Lessons from Recent Cyber Incidents |
|
|
20 | (23) |
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22 | (3) |
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25 | (9) |
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34 | (1) |
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35 | (1) |
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|
36 | (7) |
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Chapter 3 Cybersecurity Risks to an M&A Deal's Objectives |
|
|
43 | (12) |
|
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1 Key Cybersecurity Risks to an M&A Transaction |
|
|
43 | (9) |
|
2 Premises for Planning Cybersecurity Due Diligence |
|
|
52 | (3) |
|
Chapter 4 Basic Cybersecurity Concepts |
|
|
55 | (18) |
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|
|
55 | (3) |
|
2 Digital Assets to Be Protected |
|
|
58 | (1) |
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58 | (4) |
|
|
59 | (1) |
|
|
60 | (1) |
|
|
61 | (1) |
|
|
61 | (1) |
|
|
62 | (1) |
|
4 Threats Addressed by Cybersecurity |
|
|
62 | (5) |
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4.1 Physical and Environmental Threats |
|
|
63 | (1) |
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63 | (1) |
|
|
64 | (1) |
|
|
64 | (3) |
|
|
67 | (6) |
|
5.1 Categorization Based on Timing of Security Controls |
|
|
68 | (1) |
|
5.2 Categorization Based on Nature of Security Controls |
|
|
68 | (5) |
Part II. Due Diligence: What The Acquirer Should Know |
|
|
Chapter 5 Identification of Target's High-Value Digital Assets |
|
|
73 | (16) |
|
|
|
|
73 | (2) |
|
1.1 Subject Matter and Goals |
|
|
73 | (2) |
|
|
75 | (1) |
|
|
75 | (13) |
|
2.1 Identify Digital Assets |
|
|
76 | (1) |
|
2.2 Identify Storage Used |
|
|
76 | (1) |
|
2.3 Identify Control of Digital Assets |
|
|
77 | (1) |
|
2.4 Have Vulnerabilities Been Identified and Addressed? |
|
|
78 | (1) |
|
2.5 Separation of Business Versus Operational Digital Assets |
|
|
79 | (1) |
|
2.6 Reliance on Internet for Communication |
|
|
80 | (1) |
|
2.7 Risk Profile of Target Business Sector |
|
|
80 | (1) |
|
2.8 Supply Chain Dependencies |
|
|
81 | (1) |
|
2.9 Information Sharing Activities |
|
|
82 | (1) |
|
2.9.1 Receipt of Intelligence-Sharing Reports |
|
|
82 | (1) |
|
2.9.2 Receipt of Classified Cyberintelligence Information |
|
|
83 | (1) |
|
2.9.3 Recipient of Industrial Control Systems Cyber Emergency Response Team Alerts |
|
|
84 | (1) |
|
2.9.4 Recipient of DHS Notices |
|
|
85 | (1) |
|
2.9.5 Participation in an ISAC |
|
|
85 | (1) |
|
2.9.6 ISAC Information Coordination |
|
|
86 | (1) |
|
2.9.7 DHS Technical Assistance Agreements |
|
|
87 | (1) |
|
2.9.8 Information Sharing Agreements |
|
|
88 | (1) |
|
3 Assessment and Analysis of Results |
|
|
88 | (1) |
|
Chapter 6 Evaluation of Internal Cybersecurity Program |
|
|
89 | (18) |
|
|
|
89 | (2) |
|
1.1 Subject Matter and Goals |
|
|
89 | (1) |
|
|
89 | (2) |
|
|
91 | (13) |
|
2.1 Senior Management and Board Involvement |
|
|
91 | (2) |
|
2.2 Reviewing Security Programs |
|
|
93 | (1) |
|
2.2.1 Identifying the Program That Is in Place |
|
|
94 | (1) |
|
2.2.2 Program Responsibility |
|
|
95 | (1) |
|
2.2.3 Program Compliance with Legal Requirements |
|
|
95 | (1) |
|
2.2.4 Is the Program Risk-Based and Tailored to the Target's Business? |
|
|
96 | (1) |
|
2.2.5 Cybersecurity Program Resilience |
|
|
96 | (1) |
|
2.2.6 Cybersecurity Program Implementation |
|
|
97 | (1) |
|
2.2.7 Cybersecurity Program Updates |
|
|
97 | (1) |
|
2.2.8 Third-Party Cybersecurity Assessments |
|
|
98 | (1) |
|
2.2.9 Cybersecurity Statements |
|
|
99 | (1) |
|
|
100 | (1) |
|
2.2.11 Incident Response Plan |
|
|
101 | (1) |
|
2.2.12 Impact of Acquisitions |
|
|
103 | (1) |
|
|
103 | (1) |
|
2.4 Budget for Cybersecurity |
|
|
103 | (1) |
|
3 Assessment's Impact on the Proposed Transaction |
|
|
104 | (3) |
|
Chapter 7 Assessment of External Dependency Cybersecurity Program |
|
|
107 | (18) |
|
|
|
107 | (3) |
|
1.1 Subject Matter and Goals |
|
|
107 | (2) |
|
|
109 | (1) |
|
|
110 | (13) |
|
2.1 Inventory Third-Party Relationships |
|
|
110 | (2) |
|
2.2 Vendor Governance and Management Program |
|
|
112 | (1) |
|
2.3 Integration of Cyber Risk into the Vendor Governance and Management Program |
|
|
113 | (2) |
|
2.4 Vendor Cybersecurity Assessments |
|
|
115 | (2) |
|
2.5 Onboarding and Offboarding |
|
|
117 | (1) |
|
2.6 Vulnerability and Acceptance Testing |
|
|
118 | (1) |
|
2.7 Continuous Monitoring of Vendor Relationships |
|
|
118 | (1) |
|
2.8 Cyber-Risk Monitoring Should Account for Risk Inherited from Vendors |
|
|
119 | (1) |
|
2.9 Incident Response Procedures |
|
|
120 | (1) |
|
2.10 Target's Obligations as Vendor-Flowdown Requirements |
|
|
121 | (1) |
|
2.11 Separating the Target from Its Affiliates |
|
|
121 | (1) |
|
|
122 | (1) |
|
3 Assessment and Analysis of Results |
|
|
123 | (2) |
|
Chapter 8 Identifying Breaches and Assessing Incident Response Capabilities |
|
|
125 | (8) |
|
|
|
|
125 | (1) |
|
1.1 Subject Matter and Goals |
|
|
125 | (1) |
|
|
125 | (1) |
|
|
126 | (7) |
|
|
126 | (1) |
|
|
126 | (1) |
|
|
127 | (1) |
|
2.1.3 Ongoing and Collateral Issues |
|
|
128 | (1) |
|
2.2 Preparedness for Future Breaches |
|
|
128 | (1) |
|
2.2.1 Existence of an Incident Response Plan |
|
|
129 | (1) |
|
2.2.2 Verification and Testing of the Plan |
|
|
129 | (1) |
|
2.2.3 Expertise of Personnel |
|
|
130 | (1) |
|
2.2.4 Training and Education |
|
|
131 | (1) |
|
|
131 | (2) |
|
Chapter 9 Evaluation of Cybersecurity Regulatory Compliance |
|
|
133 | (18) |
|
|
|
133 | (3) |
|
1.1 Subject Matter and Goals |
|
|
133 | (1) |
|
|
133 | (3) |
|
2 Identifying Legal Obligations |
|
|
136 | (5) |
|
2.1 Statutes and Regulations |
|
|
137 | (1) |
|
2.2 Common Law Obligations |
|
|
138 | (1) |
|
2.3 Contractual Obligations |
|
|
138 | (1) |
|
|
139 | (1) |
|
2.5 Self-Imposed Obligations |
|
|
139 | (1) |
|
|
140 | (1) |
|
|
140 | (1) |
|
3 Identifying Status of Compliance |
|
|
141 | (11) |
|
3.1 Assessing Compliance with Laws Requiring Process- Oriented Approach |
|
|
141 | (1) |
|
3.1.1 Written Security Program |
|
|
142 | (1) |
|
3.1.2 Identification of High-Value Digital Assets |
|
|
143 | (1) |
|
3.1.3 Periodic Risk Assessment |
|
|
143 | (1) |
|
3.1.4 Implementation of Security Controls Responsive to Risks |
|
|
144 | (1) |
|
3.1.4.A Are the Security Controls Responsive to the Risks the Target Faces? |
|
|
144 | (1) |
|
3.1.4.B Do the Security Measures Address the Required Security Controls? |
|
|
144 | (3) |
|
3.1.5 Regular Monitoring and Testing of Target's Security Controls |
|
|
147 | (1) |
|
3.1.6 Regular Review and Adjustment of Target's Security Program |
|
|
147 | (1) |
|
3.1.7 Oversight of Third-Party Service Provider Arrangements |
|
|
148 | (1) |
|
3.2 Assessing Compliance with Laws Requiring Specific Security Controls |
|
|
149 | (1) |
|
|
150 | (1) |
|
Chapter 10 Special Issues in Cybersecurity Due Diligence: Resilience and Reviews by CFIUS |
|
|
151 | (26) |
|
|
|
152 | (15) |
|
1.1 Subject Matter and Background |
|
|
152 | (1) |
|
1.1.1 Example: Resilience of Bulk Power System Enterprises |
|
|
155 | (1) |
|
1.1.2 Example: Resilience of Financial Services Enterprises |
|
|
157 | (4) |
|
|
161 | (6) |
|
2 Reviews of "Covered Transactions" by CFIUS |
|
|
167 | (10) |
|
2.1 Subject Matter and Background |
|
|
167 | (3) |
|
|
170 | (7) |
Part III. Impact Of Due Diligence On The Proposed Transaction |
|
|
Chapter 11 Addressing Risks Identified in Due Diligence |
|
|
177 | (24) |
|
|
|
1 Subject Matter and Goals |
|
|
177 | (1) |
|
2 Problems That Could Emerge in Diligence |
|
|
178 | (13) |
|
2.1 Insufficient Ability to Assess Cybersecurity Risk |
|
|
178 | (1) |
|
2.1.1 Desired Documentation or Information Is Missing |
|
|
179 | (1) |
|
2.1.2 Desired Documentation Does Not Exist |
|
|
180 | (1) |
|
2.1.3 Shifting Regulatory and Legal Environments |
|
|
181 | (1) |
|
2.2 Serious Shortcomings in Target's Practices or Legal Risks |
|
|
181 | (1) |
|
2.2.1 Poor Practices or Weak Policies on Information Security |
|
|
182 | (1) |
|
2.2.2 Compliance Failures |
|
|
182 | (1) |
|
2.2.3 Contractual Breaches |
|
|
183 | (1) |
|
2.2.4 Data Breaches and Cyber Attacks |
|
|
184 | (1) |
|
2.2.5 Government Investigations |
|
|
186 | (1) |
|
2.2.6 Litigation and Prelitigation Activity |
|
|
187 | (1) |
|
2.3 "What You See Versus What You Hear": Discrepancies between Documentation and Target Narratives |
|
|
188 | (1) |
|
2.4 Assessing Target's Resilience to Cyber Threats and Attacks |
|
|
188 | (2) |
|
2.5 Review and Assessment of Findings and Report by Cybersecurity Specialist |
|
|
190 | (1) |
|
3 Recourse Available to Acquirer |
|
|
191 | (11) |
|
3.1 Limiting Exposure in the Underlying Agreement |
|
|
191 | (1) |
|
|
192 | (1) |
|
|
193 | (1) |
|
|
194 | (1) |
|
3.1.4 Purchase-Price Adjustment |
|
|
195 | (1) |
|
3.2 Limiting Exposure in the Disclosure Schedules |
|
|
196 | (5) |
|
Chapter 12 Representations and Warranties in M&A Agreements |
|
|
201 | (12) |
|
|
1 Goals of Cybersecurity Representations and Warranties |
|
|
202 | (1) |
|
2 Representation and Warranty Issues |
|
|
202 | (2) |
|
3 Common Cybersecurity Representations and Warranties |
|
|
204 | (5) |
|
3.1 Compliance with Data Security Policies |
|
|
204 | (1) |
|
3.2 Compliance with Laws and Regulations |
|
|
204 | (1) |
|
3.3 Compliance with Contractual Obligations Regarding Data Security |
|
|
205 | (1) |
|
3.4 Contractual Restrictions on Third Parties to Protect Data |
|
|
206 | (1) |
|
3.5 Absence of Unauthorized Use or Access |
|
|
207 | (1) |
|
3.6 Security Measures to Protect Systems and Information |
|
|
208 | (1) |
|
3.7 Absence of Data Security Incidents |
|
|
208 | (1) |
|
4 Less Common Cybersecurity Representations and Warranties |
|
|
209 | (2) |
|
4.1 Disclosure of Data Security Plans to Acquirer |
|
|
209 | (1) |
|
4.2 Compliance with Self-Regulatory Principles |
|
|
210 | (1) |
|
4.3 Disclosure of Agreements |
|
|
210 | (1) |
|
4.4 Disclosure of Types of Proprietary Data Collected |
|
|
210 | (1) |
|
4.5 Limits on Cross-Border Processing and Transfers |
|
|
211 | (1) |
|
5 Coordination with Other Parts of Agreement |
|
|
211 | (2) |
|
Chapter 13 Concluding Observations: Emerging Challenges to Cybersecurity Due Diligence |
|
|
213 | (8) |
|
Appendix: List of Common U.S. Data Security Laws and Regulations |
|
221 | (12) |
Index |
|
233 | |