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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

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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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Grüße aus Silicon Valley
(and the Republic of California) 3

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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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About Your Speaker Today

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Stanford University | Silicon Valley

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European Entrepreneurship & Innovation (ME421)
Stanford Engineering School
Year Nine || 2018
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@Europreneurs
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Jan 2018 Speakers
Estonia : Urban Delivery Robot Startups & eGovt Innovation
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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

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

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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

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

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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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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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CASE STUDIES
in Applied Artificial Intelligence
in Industry Today

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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??

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

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2006

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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

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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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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