SIP Produktion2030 Call for proposals Number 7, 2017

1 (14) SIP Produktion2030 Call for proposals Number 7, 2017 Testbed projects for digitalisation of Swedish manufacturing industry A call for proposals within the Strategic Innovation Programme Produktion2030. The Strategic Innovation Programme Produktion2030 is part of Vinnovas, the Energy Agency s and Formas joint venture in strategic innovation areas. The aim of the initiative on strategic innovation areas is to create opportunities for international competitiveness and sustainable solutions to global societal challenges. For more information on the programme: www.produktion2030.se

2 (14) Table of contents 1 The offer... 3 2 What does Produktion2030 want to achieve with the funding?... 5 3 Who is this call addressing?... 6 4 What do we fund?... 6 Activities that can be financed... 6 4.1.1 Strength area 1 Resource-efficient production... 7 4.1.2 Strength area 12 Flexible production... 7 4.1.3 Strength area 13 Virtual production... 7 4.1.4 Strength area 14 People in the Production System... 8 4.1.5 Strength area 15 Circular production systems and maintenance... 8 4.1.6 Strength area 16 Integrated product and production development... 8 Eligible costs... 9 5 How much funding can be given?... 9 6 Formal requirements for proposal evaluation... 9 7 Evaluation of submitted proposals... 10 What do we evaluate in the proposals?... 10 How do we evaluate proposals?... 11 8 Prerequisites for Financing... 12 About our decisions... 12 Terms for state aid grants... 12 9 This is how you submit your proposal... 14 10 Who will be able to read the proposal?... 14 Revisions Date Change 20170616 Call release 20170622 A maximum of 20% of the contribution total project budget can be used for any technical completion of the existing test bed

3 (14) 1 The offer The Swedish government focuses on Testbed Sweden, a national initiative to strengthen Swedish industry's competitiveness, as well as to distribute knowledge and development resources across the country. Produktion2030 strengthens Testbed Sweden by announcing SEK 50 million for test bed projects. The expected effect goals are to: increase the competitiveness of Swedish industry; increase the Swedish manufacturing industry's use of test beds for testing new production methods, production systems and production technologies; utilize already existing test bed environments, laboratories or advanced test equipment at Swedish industry, academy and institute; establish a network of openly available test beds in Sweden; and increase the digitalisation of Swedish manufacturing industry. Project proposals for this Testbed Project Call should (all criteria must be met): clearly describe what to test, i.e. which functionality, production methods, production systems, production techniques etc.; clearly describe why this test(s) is important for Swedish industry; clearly describe where and how the tests are to be carried out. The project should include (all criteria must be met): close collaboration between industry, academia and research institutes; utilization of an existing (a) test bed environment (s); creation of a digital/virtual model of the test bed environment The model should allow the test bed environment (and its functionality) to be visible and accessible to others outside the consortium, via the Internet; a clear focus on one or two of the produktion2030's six strength areas; and wide dissemination of results from the project (outside project consortium) In addition, the project should try to create connection of test bed functionality (sensors, cameras, etc.) to externally available Internet, in order for project members and other actors outside the consortium to interact with the project. The call 's total budget is SEK 50 million. Projects can be funded with a maximum of SEK 8 million. Vinnova's contribution can amount to a maximum of 40 percent of the project's total eligible cost. The remaining part of the project's cost will be financed through the efforts of companies or other non-public actors. Produktion2030's six strength areas describe important challenges for Swedish industry (Figure 1 and www.produktion2030.se). Digitalisation and sustainability are two key and transversal challenges for Produktion2030. This call is primarily focused on digitalisation.

4 (14) Figure 1. Produktion2030 focuses on six strength areas and two transverse challenges. Information about Produktion2030, strengths and challenges can be found at www.produktion2030.se. This call for proposals refers to project consortia with at least three companies from manufacturing industry; at least one university/huskily; and at least one research institute. Most of the funding provided should be used by research partners from academia and the institute sector. Schedule of this call for proposals: The call opens 8 June 2017 Deadline for proposals 28 September 2017 Date of decision 25 October Project start, no later than 10 November 2017 Project end, no later than 31 July 2021 Contact persons regarding the background, purpose and desired effects of the call: Cecilia Warrol, Produktion2030 Programme Director 08-782 08 28 cecilia.warrol@produktion2030.se Johan Stahre, Produktion2030 Programme Codirector 031-772 12 88 johan.stahre@produktion2030.se Contact person regarding the assessment process, legal questions and other questions about the content of the call for proposals: Tero Stjernstoft, Responsible for this call at Vinnova 08-473 30 00 tero.stjernstoft@vinnova.se

5 (14) Administrative questions: Bengt Larsson, Vinnova 08-473 31 14 bengt.larsson@vinnova.se Contact person regarding Vinnova s web-based proposal service: Vinnova IT support Tel: 08-473 32 99 helpdesk@vinnova.se Current information about the offer and link to our proposal service (Intressentportalen) is available at www.vinnova.se. 2 What does Produktion2030 want to achieve with the funding? Produktion2030 strengthens the national effort Testbed Sweden by announcing SEK 50 million for test bed projects, with the effect goals to: - increase the competitiveness of Swedish industry; - increase the Swedish manufacturing industry's use of test beds for testing new production methods, production systems and production technologies; - utilize already available test bed environments, laboratories or advanced test equipment at Swedish industry, academy and institute; - establish a network of openly available test beds in Sweden; and - increase the digitalisation of Swedish manufacturing industry. Produktion2030 wants to increase the effects of the ongoing digitalisation of the Swedish manufacturing industry. Digitalisation has enormous potential to greatly impact efficiency, productivity and business models through new and improved processes and offers. The overall impact of the funded projects will contribute to Produktion2030's overall goals: sustainable and competitive production in Sweden. An important goal for this call is to increase Swedish manufacturing industry's use of test beds in connection with testing of new production methods, production systems, production technologies, etc. The projects should also increase the utilization of the large number of test beds, laboratories and advanced equipment already available among Swedish industry, academia, and institutes.

6 (14) EXAMPLE An example of a physical test bed can be an industrial or industrial laboratory in industry, academy or at an institute. In the test bed, new industrial technology can be tested in a series of tests to ensure function, shape, etc. There may be production methods and techniques for manufacturing, processing, assembly, or measurement, but also tests of production systems. The possibility of controlled repetition of tests is crucial if the lab or facility can be called a test bed. An example of a virtual or digital test bed can be a simulation environment where you can test, simulate and visualize dynamic behaviors of virtual models of machines, people, robots and products. The possibility of controlled repetition of tests is crucial if the simulation environment can be called a test bed. 3 Who is this call addressing? The call invites project consortia consisting of at least three manufacturing companies, at least one university, and at least one research institute. Close collaboration between companies, academia and research institutes is a key criterion in the assessment of project proposals. Test bed projects in this call should not build new test beds. Instead, the projects should utilize existing test environments in industry, academia, and institutes that can be used for testing with minor additions. The composition of the project consortium should take into account diversity in gender, age and position. 4 What do we fund? Activities that can be financed The theme of the call is digitalisation in industrial production. Development and implementation of technology for digitalisation production part of a large part of the completed projects within Produktion2030. In production, digitalisation can mean how products, machinery, infrastructure and people are described in digital form e.g. through modelling, simulation and scanning. Digitalisation enables analysis and optimization of e.g. productivity, quality, or flexibility, without need for physical products or production systems. Digitalisation in industrial production also means connectivity through the Internet for components of a production system. Advanced communication technology and new forms of data and telecommunications are crucial.

7 (14) Decisions are facilitated by analysis of large amounts of data, machine learning; Cloud-based analysis services and forms of specialized artificial intelligence. This call can fund test bed projects conducted in test beds or test environments. This means that the projects will either test new technologies or new combinations of known technology in an existing test environment. The test environment should be in a company, at a university or at a research institute. For maximum openness and accessibility for project results, the funding should primarily be used for the Academy s or Institutes work with testing in the test bed environments. The call does not finance major investments in machinery and equipment. Instead, tests in existing test beds is financed. Projects should also provide a digital model / digital twin of the test bed. New communication technologies, such as 5G, enable powerful bandwidth improvement, communication speed, data security, and data integrity. These opportunities should be able to be utilized by the manufacturing industry and enable business customers and suppliers to be integrated into digital value chains. The proposal for a test bed project should focus on one or two of the produktion2030's six strength areas: 4.1.1 Strength area 1 Resource-efficient production Resource-efficient production is a prerequisite in order to maintain cost-effective manufacturing in a high cost country like Sweden. Resources and time must be used efficiently for production to be competitive. Research and innovation aimed at resource-efficient production needs to have a holistic perspective. 4.1.2 Strength area 12 Flexible production Flexibility is fundamental for customized products and one-of-a-kind production. Flexible production has an impact in flexible volume changes, variations, new materials, and new material combinations, which demands innovative manufacturing methods, automation solutions, and knowledge. Automation, digitalisation, and advanced simulation models create possibilities for flexibility through the integration of systems to achieve decentralised management and monitoring of production processes. 4.1.3 Strength area 13 Virtual production Virtual tools and digital models are fundamental to develop the next generation of complex products and production systems. In tomorrow s factories, a large number of the production resources and machines will be connected to the Internet. Data collection, analysis and the communication and handling of large quantities of data will enable the creation of digital twins of production systems.

8 (14) Virtual factory gives the company the ability to make correct decision by using complex data to achieve optimisation and by the development of smart production strategies. Although many Swedish companies have introduced virtual technologies the technology is still used as isolated islands in production and preparation processes. The main challenge is to optimise the whole digital value chain and implement data collection, data management, visualisation, and strategy 4.1.4 Strength area 14 People in the Production System People have a key role in the digitalised industry and future production systems. The complexity of production demands that competent people can collaborate with advanced, automated production systems, robots, and manufacturing processes. Employees must handle production processes and systems in virtual, digital, global networks. Digitalisation, sensors, and large quantities of data create new demands on security, advanced communication, interfaces, and the distribution of tasks between people and production systems. Advanced technical solutions enable the development of work stations, production and assembly methods, ergonomics as well as access to information independent of language. 4.1.5 Strength area 15 Circular production systems and maintenance Circular systems for products and production systems are essential to realise remanufacturing. Products, components, materials, and data can be re-used and remanufactured in several cycles through smart maintenance and reconditioning. The production system is the back-bone of a manufacturing company and smart maintenance, sensor technology, and data analytics play a big role in predictive and smart maintenance. The transition to a circular economy will require a new type of design thinking at product and production level to enable services like on-demand production capacity. 4.1.6 Strength area 16 Integrated product and production development Products must create value for all companies in a supply-chain. The development of products and production systems needs to be done in parallel, in an integrated way, involving all suppliers simultaneously. This di cult challenge of concurrent engineering is vital in order to generate customer based products and services, flexibility and short time to market. Integration of product and production development requires digital product models and information from each part of the development stage. With the help of large quantities of data ( big data ), digital models of new materials, and simulation of advance product and production systems, increased integration can be achieved and the sped of development and output can increase manifold.

9 (14) Eligible costs Our funding is through contributions. Contributions to organizations engaged in economic activity are subject to state aid rules. The rules govern, among other things, the types of costs and the percentage of those who may be covered by contributions. Eligible costs are stated in the document "Guide to Vinnova's eligibility criteria". 1 5 How much funding can be given? The total budget for this call is 50 MSEK. The maximum amount that can requested for a test bed project is 8 MSEK In total, all industrial project partners in the consortium are eligible for a maximum of 20% of Vinnova's total contribution to the project. Vinnova's contribution can amount to a maximum of 40% of the total eligible costs. Contribution to universities and university and research Institutions are funded up to 100%. 6 Formal requirements for proposal evaluation Vinnova will only evaluate proposals for funding that meet the following formal requirements: The project cannot have been started before the proposal is submitted. The project consortium must consist of at least three manufacturing companies; at least one university/university college; and at least one research institute. Project partners should be legal entities. The coordinating partner of the project can be a company, university or research institute. The project should start no later than November 10, 2017. Projects must be completed by 31 July 2021. The proposal must be complete according to the instructions in Chapter 9. Deviating proposals will not be assessed. A project summary should be sent to the Produktion2030 programme management, before 28 September at info@produktion2030.se Vinnova's contribution can amount to a maximum of 40 percent of eligible costs for test bed projects. 1 See https://www.vinnova.se/globalassets/dokument/guide-till-vinnovas-villkor-omstodberattigande-kostnader-2016-04-11.pdf

10 (14) The project budget should specify costs for implementing test bed projects and costs for adapting the test environment. Contribution to universities, colleges, or research institutes can be financed up to 100 percent The project budget reported should only include eligible costs, see section 4.2. Project costs that are not eligible shall be stated in the project description as they may be relevant in the assessment. A maximum of 20% of the total project budget can be used for any technical completion of the existing test bed, as well as for the creation of virtual model of physical test bed. This will be specifically stated and described on the project description. If the formal requirements are not met, the proposal will not be assessed and will be rejected on formal grounds without further justification. When the proposal deadline has expired, proposal completion can only be made at Vinnova's request. 7 Evaluation of submitted proposals What do we evaluate in the proposals? Each proposal is assessed in competition with other submitted proposals and the assessment is made by the electronic proposal submitted to Vinnova via the Interest Portal. An expert group consisting primarily of independent international and experts conducts the assessment. In addition, Swedish experts with industrial background will evaluate the proposals. Schematically, the proposal and decision-making process is as follows: 1. The proposal is submitted via the Intressentportal at Vinnova 2. Project summary will be sent to Programming Management for Produktion2030: info@produktion2030.se 3. The proposals that meet the formal requirements will be assessed against the following assessment criteria by external independent experts who recommend which projects should be granted and rejected. 4. Vinnova decides on which projects are to be financed 5. Decisions are communicated to the applicant and the management of the Strategic Innovation Programme is informed of the outcome

11 (14) How do we evaluate proposals? A test and demonstration project should have a clear focus on one or two of the six strength areas, which should be stated in the project application. Furthermore, the project should clearly aim to increase utilization of digitization in the Swedish manufacturing industry. All the criteria below will be used by our international evaluators to evaluate and compare all submitted proposals. By checking off all criteria s before submitting your proposal you ensure your best chances of approval. Applications are assessed based on three main criteria: 1) Potential 2) Actor Constellation 3) Feasibility Criteria Description 1.1 Effect goals To what extent does the project contribute to the call s stated effect goals and Produktion2030 s effect goals? 1 Potential 1.2 State-of-the-art How well is the relevant state-of-the-art described? 1.3 What (will be tested) What will be tested, how well is that described? 1.4 Industrial need How well addressed is the industrial need for planned tests? 2.1 Who (will test) How well are project goals matched by consortium competence, management, roles and requested resources? 2 Actors 2.2 Collaboration How well shown is closely involved collaboration between industry, academia, and institutes? 2.3 Equality How well does the proposal address equality in the project? 2.4 Where (will the tests be performed ) How well fulfilled is the strong requirement for use of existing test bed environments/facilities/equipment? 3.1 How (will the tests be performed) How well described are the methods used for testing in the testbed environment? 3 Feasibility 3.2 Digital model 3.3 Risk management 3.4 Impact and dissemination How well described is the digital model ( digital twin ) that will allow visualization and external access to the test bed environment outside the consortium? How well have risks been identified and how well are risk management activities described? How well described is impact and broad dissemination of project results outside the consortium?

12 (14) 8 Prerequisites for Financing About our decisions Applications that meet the formal requirements and proceed to assessment will receive a decision with a shorter description of how the application was assessed given the three criteria Potential, Actors and Feasibility. Applications that do not meet the formal requirements will be rejected with reference to which formal requirement was not met. Applicants will not receive any further feedback or decision-making. Vinnova decides which projects are to be financed, taking into account the assessors' recommendations and notifying decisions to applicants. How much each part in the project is granted state aid is stated in the decision. Grants from Vinnova to companies and other organisations that conduct commercial activities are awarded in accordance with the Regulation on State Aid for Research and Development and Innovation (SFS 2015:208). Our decision to grant or decline an application can not be appealed. If contributions have been made incorrectly or in excess of amounts, the recipient may be liable for repayment. Terms for state aid grants For state aid grants, Vinnova's general terms and conditions for grants apply 2. The terms include rules on project agreements, conditions for payment, follow-up, reporting and utilization of results. The call takes place within the framework of the Strategic Innovation Programme Produktion2030 and the following special conditions apply: 1. The project shall be represented by at least one project party at conferences and other activities organized within the Strategic Innovation Programme Produktion2030. 2. The project shall invite the Produktion2030 programme management for steering group meetings and larger project meetings. 3. For information about the project and for each publication of project results, it shall be stated that: "The work has been carried out within the Strategic Innovation Programme Produktion2030, a joint venture of Vinnova, Formas and Energy Agency." 2 Current terms and conditions can be found on our website, together with help to understand and fulfil the terms: https://www.vinnova.se/sok-finansiering/regler-for-finansiering/allmanna-villkor/

13 (14) Publication refers to e.g. oral presentations or publications, regardless of medium. 4. Research institutions within the RISE Group may, when participating in their non-economic activities, charge indirect costs under the full cost principle that they apply and which is approved by Vinnova. 5. The following conditions replace 6.2 paragraph 1 and 2 they in general terms. A copy of all Participant Approval shall be submitted to first position reporting. Prerequisite for continued payment is that the Start Report is received in due time and approved by Vinnova. If funds can not be paid during the calendar year to which they are allocated for reasons attributable to Project Participant, Beneficiaries will be entitled to these funds. However, Vinnova may decide to reallocate the funds for the coming calendar year. 6. The coordinator shall provide information on project summary, project manager and actor constellation for publication at www.kunskapsformedlingen.se. Instructions and templates are communicated in close proximity to the decision. 7. Instead of condition 1.6, paragraph 5 and section 6.2, first paragraph, is that: Prerequisite for the first payment of contributions is that the Start Report and copy of Participant Approval for the Coordinator have been received in due time and that Vinnova approved the Start Report. The coordinator may not transfer funds to Beneficiaries until all Participant Approvals have been submitted to Vinnova. The coordinator's obligation to transfer funds to Beneficiaries will commence when all Participant Approvals has been submitted to Vinnova. In the event that all approvals have not been received by Vinnova at the time stipulated in the decision, Vinnova will decide to terminate the right to contributions and the Coordinator will be liable for repayment of the amount paid up to now. Additional special conditions can be decided for individual projects. If you do not comply with our terms of service, you may be liable for repayment. This also applies if you have been granted a contribution wrongly or with an excessive amount. Our recommendation is that the coordinator prepares the form for the Participant Approval in good time before project launch 3. 3 Guides and forms can be found on our website: https://www.vinnova.se/sok-finansiering/reglerfor-finansiering/allmanna-villkor/

14 (14) 9 This is how you submit your proposal To apply for a grant, you can fill in a web-based form in our application service (Intressentportalen, portal.vinnova.se), which is accessed through our website. There you also upload the following attachments: Project description Project summary (publik) CV-appendix Budget Appendices should be in pdf-format. The maximum length of a project proposal is 10 vertical A4 pages with single-column 12-point black text. Links to web-based information will not be taken into account during evaluation. The maximum length of project summary is two pages. Please note that it may be published publicly. It must therefore not contain confidential or otherwise sensitive data. Immediately after the application is submitted to Vinnova, the Annex Project Summary should also be sent to the Produktion2030 programme office by email to: info@produktion2030.se. This is mandatory for proposals to be considered for evaluation. The CV attachment must contain relevant CV for the project manager and all key personnel in the project team, including industry. Each resume can include max 1 A4 page with 12-point text. The Budget should show how Vinnova's contribution is distributed between wages, services, indirect costs, etc. The budget should also describe the co-financing from industry, which will amount to at least 60% of the project's total budget. A maximum of 20% of the total project budget can be used for complementing existing test beds and investing in virtual modelling of physical test bed. In total, the industrial project partners can receive a maximum of 20% of Vinnova's total contribution to the project. NOTE! The proposal will be evaluated by an international expert group, so our strong recommendation is that the application is written in English. All of the above appendices are mandatory and will use templates provided by the call. Different applications will not be assessed. When the application deadline has expired, application completion can only be made at Vinnova's request. 10 Who will be able to read the proposal? Proposals submitted to us will become public documents, but we will not disclose information about the business or operating conditions, inventions, and research results of an individual if it is assumed that any individual may suffer damage if the data is corrected. Documents sent to the organization responsible for the Strategic Innovation Programme are not covered by our Privacy Policy.