A talk from the Inspire Track at AWE Europe 2017 - the largest conference for AR+VR in Munich, Germany October 19-20, 2017 Bernd Wacker & Christopher Bouveret (iTiZZiMO AG & Siemens): The Digital Factory - Targeted Use of AR Technologies to Create Added Value in Production How do we manage the development of products and technologies for realizing digital industrial production? In September 2016, Siemens, in cooperation with iTiZZiMO, Fraunhofer IIS, SCS and Kinexon, launched the Road2Digital Production (R2D) research project funded by the Federal State of Bavaria in the "Bayern Digital" platform. The results of the project demonstrate that digitization can increase efficiency and optimize quality assurance. This enables the development of new technologies for "cyberphysical production systems (CPPS)" as well as the definition of principles and methods for manufacturing and assembling a product with batch size 1. The core of the project is to identify how the produced drive components need to be connected to each other and to the production machines in order to aim an economical production. How does that work? We will illustrate a variance analysis. You will see how to combine a virtual electric motor with an real electric motor with the help of Augmented Reality. Deviations in the final product can be immediately detected and corrected by variance analysis. The example illustrates how vertical digitization can be successfully implemented. Using information from the IT systems for order processing and engineering, a real-time paperless and intelligent production can be realized.