Slides presented by Dr. Burton Lee in Munich, 21 September 2018, at the AI Applications conference of the IHK Munich and Oberbayern Chamber of Commerce. Target audience: Bavarian Mittelstand companies in the manufacturing and logistics sectors.

1. Beyond Autonomous Driving:
Remote Equipment Diagnostics and Other Successful
Applications of AI Technologies in Global Industry
Dr. Burton H. Lee PhD MBA
European Entrepreneurship & Innovation | Mechanical Engineering | Stanford University
Burton.Lee@innovarium.net | www.StanfordEuropreneurs.org
175. Jubiläum – IHK für München und Oberbayern
21. September 2018 | München, Bayern DE

2. Copyright Burton H. Lee 2018
All Rights Reserved.
May Not Be Used by IHK München or Other IHK Bezirke
For Use in Courses or Other Company Executive Education & Training Activities
without Prior Written Authorization from Author.
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3. Grüße aus Silicon Valley
(and the Republic of California) 3

4. Key Topics
• Definitions of Artificial Intelligence
– Germany vs US and World
• Remote Equipment Diagnostics (Fern Diagnose)
– Equipment Diagnostic Modelling as Important Branch of AI
– Industries, Markets, Business Rationale, Customer Demand and
Business Models for Remote Diagnostics Services in
Manufacturing Sector
– Overview of Example Technical Architectures
– General Electric, Siemens, Rolls Royce, other manufacturing
companies
– Critical Importance of Remote Access for Machine Data
• Beyond Machine Learning (ML) and Deep Learning (DL)
– Other AI Approaches: Use of Bayesian Causal Probabilistic
Networks to Model and Predict Manufacturing Equipment Failure
– Example: Semiconductor Manufacturing Equipment
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5. About Your Speaker Today

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Stanford University | Silicon Valley

7. European Entrepreneurship & Innovation (ME421)
Stanford Engineering School
Year Nine || 2018
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@Europreneurs
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8. Jan 2018 Speakers
Estonia : Urban Delivery Robot Startups & eGovt Innovation
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9. Feb 26 2018 Speakers @ Stanford
New EU Data Privacy Rules (GDPR) : Lessons for Silicon Valley Companies & Startups
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Visiting Siemens Rail Carriage Factory
Graz, Austria | June 2016

11. DoktorArbeit @ Stanford ::
Remote Diagnostics of Complex Mechatronic Equipment
Engineering
Design
Artificial
Intelligence
Internet
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12. DoktorArbeit @ Stanford ::
Remote Diagnostics of Complex Mechatronic Equipment
FMEA1
Bayesian
Network
Diagnostics
Internet
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1) Failure Modes and Effects Analysis

13. Industrial Experience | Academic Training
• Hewlett Packard, Solutions Services Division, Silicon Valley
• Daimler ForschungsLabor, Esslingen DE
• General Electric Global Research, Niskayuna NY
• Ph.D., Mechanical & Electrical Engineering, Center for
Design Research, Stanford University (with focus on
Artificial Intelligence, Diagnostics, Engineering Design)
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Creating an AI Strategy & Roadmap for Oberösterreich – Workshop Leaders
Dr. Burton Lee, Deputy Governor OÖ Michael Strugl, Prof. Sepp Hochreiter, JKU Rektor Prof. Meinhard Lukas
Linz, Austria | July 2017

15. What is Artificial Intelligence?
Differing Definitions and Problem Spaces
in USA and Germany

16. A few examples of what
various industry & academic communities
around the world
consider to be part of the
‘Artificial Intelligence’ domain
today, and historically …
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20. In the USA, UK, Canada, Israel and China,
AI is viewed as a much larger field than
Machine Learning (ML) & Deep Learning (DL),
which dominate discussions today in much of
Germany & Continental Europe
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Case-Based Reasoning | Ontologies & Knowledge Engineering | Bayesian (Probabilistic) Networks | Distributed AI
Artificial General Intelligence (AGI)

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Artificial General Intelligence
(AGI)
Main Generations of Artificial Intelligence (simplified)

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33. CASE STUDIES
in Applied Artificial Intelligence
in Industry Today

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39. Remote Diagnostics Services
Overview of Global Industry

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Remote Diagnostics Market Revenues:
USA : $4.3 Bn (2017)

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When Is Investment in Remote Diagnostic Technology Justified??

45. Other Key Players in Remote Diagnostics
• Xerox : office equipment
• Caterpillar : large-scale construction equipment operating
in remote sites (dams, etc)
• Rolls Royce : turbines and engines
• IBM : computers
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46. CASE STUDIES
Siemens
Rolls Royce
General Electric
Caterpillar

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2014 Data

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Remote Diagnostics Services Are Key Elements
of New Business Models Driving Industrial Enterprises Today

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Remote Diagnostics Tasks and Services

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Effective Remote Maintenance
Made Possible by Big Data

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66. CASE STUDY
Remote Diagnostics & Monitoring of
Semiconductor Manufacturing Equipment
(USA, Taiwan, Japan)

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2006

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79. CASE STUDY
Diagnostic Modeling of
Semiconductor Manufacturing
Equipment Failure Modes
Bayesian Networks
(Probabilistic Causal Networks)

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Reactive Ion Etching (RIE) Equipment

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Modeling Equipment Failure Modes
via Probabilistic Causal Bayesian Networks

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Fishbone Diagram for Faults in RIE Device

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Proposed Three-Layer Design of Bayesian Network Failure Model
RIE Etch Equipment Failure Diagnosis

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Full Bayesian Network Model for the Fault Diagnosis in RIE Etch Equipment
Root Causes
Modules
Data
Parameters
RIE Etch Equipment Failure Diagnosis

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Implemented (Reduced) Bayesian Causal Network – RIE Etcher Failure Diagnosis

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Other Examples of Bayesian Network Models
of Manufacturing Equipment Failure Diagnosis

87. VIELEN DANK !!
Dr. Burton H. Lee PhD MBA
Mechanical Engineering Dept
Center for Design Research
Stanford University
Burton.Lee@innovarium.net
Silicon Valley, CA
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88. Working in Silicon Valley, Europe, Latin America and Washington DC
• Senior financial, technical and strategy advisory services for global technology companies
• Professional Services
– Technology growth companies and startups
• Artificial Intelligence strategy, products/services, business models and technical architectures
• Digitalisation culture change, management, business processes, business model creation, new services
• Interim CXO and Advisory Board roles
• Expert guidance & decision-making at the interface between market/customers, technology and finance
• Business plan preparation/research/review;
• Executive training, coaching and mentoring of CEOs, board members and other CXO-level managers
– Angel, venture capital and private equity Investors
• Fund strategy, team selection and market positioning
• Due diligence: technical, financial, strategy and business models
– Public and non-profit R&D laboratories
• Technology transfer & partnerships; venturing and spin-out of companies; strategy and business development; grant applications
– Research universities
• Innovation-related models, policies and practices
• Technology transfer and licensing; industry partnerships and relations; development and strategy; grant applications
– National and regional government agencies
• Innovation policy formulation, analysis and review; cluster development strategy; economic impact studies
• Science & technology policy formulation, analysis & review: space, aviation, nanotechnology, software/AI/robotics, manufacturing
• Selected recent clients
– German family-owned Mittelstand enterprises – automotive supplier industry
– US/European technology startup companies – alternative energy, robotics/AI, software, Internet, nanotech
– Venture and private equity funds – aerospace, nanotechnology, ICT, computing, advanced materials, clean tech
– Office of the Prime Minister, Ireland; European Commission; National Science Foundation; NASA, National Academies
• Dr. Burton Lee PhD MBA, Managing Director
– Contact: Burton.Lee@innovarium.net Based in Palo Alto, CA near Stanford University
– Bio/References: LinkedIn Profile
– Adjunct Professor, European Entrepreneurship & Innovation, Mechanical Engineering, Stanford University 88