Samsung SDI Sustainability Report 2023

SAMSUNG SDI SUSTAINABILITY REPORT 2023 15 □ CE SUSTAINABILITY MANAGEMENT SUSTAINABILITY MAIN THEMES APPENDIX Business Overview OVERVIEW CEO's Message Company Overview 2030 Company Vision Business Overview Advancing the smart factory initiative Samsung SDI has consistently advanced the smart factory initiative to leverage auto- mation systems in boosting our manufacturing competitiveness by improving our pro- duction efficiency and product quality. The Manufacturing Execution System (MES) brings dramatic improvements for large, high-speed data processing. We developed the next-generation MES optimized for EV battery production, and have rolled out this system across our entire global operations starting with new locations in 2022. We also expanded factory logistics throughout the entire process ranging from the raw material warehouse to shopfloor and the finished goods warehouse and are advanc- ing ATS (Automated Transfer System) functionality to improve transfer efficiency. We ultimately aim for unmanned plant operations. With this goal in mind, we equipped all our locations with a system to monitor production operations in real time to au- tomatically control equipment so that worker-induced variation in the manufacturing process does not affect product quality. Work is also underway to render our system functionality more intelligent to detect the operational status of equipment to predict their failure and take preventive maintenance measures. Going forward, Samsung SDI is implementing our intelligent smart factory strategy to improve the accuracy and speed of equipment control and quality analyses through Al-enabled big data analytics and to leverage digital twin technology for factory logistics forecasting and production optimiza- tion simulation throughout the entire lifecycle from raw materials to finished products. In line with the addition of new overseas locations to our global network, we provide immer- sive job training enabled by the application of VR/AR and work to establish a real-time re- mote collaboration system to help our shopfloor staff with capacity building. In so doing, we aim to establish smart factories optimized for battery production and continuously boost our manufacturing competitiveness in the process. Partners Development/Design Parts(materials)' quality information Product simulation Development/Design Production simulation Battery manufacturing plant Facility Quality Digital Twin (Virtual factory) Facility Parts/materials information Design/spec Information Data Lake, Al analysis, Digital Twin analysis Quality Logistics simulation Domestic and overseas production facilities Plant logistics Parts (battery)' quality information Operation Optimization Plant logistics Manufacturing/Quality Information Customers Customers' design information

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