'LS 3rd Generation' Koo Dong-hwi Flies to Germany to Partner with MS on 'AI' Smart Factory Project

Cheongju Plant Selected as Korea's Second World Economic Forum Lighthouse Factory
This Time in Collaboration with MS... Former Vice President Signs MOU at Hannover Messe
"Utilizing AI and Machine Learning... Expecting Comprehensive Cooperation Including DX New Business"

LS ELECTRIC, which operates a world-class innovation factory, announced on the 20th that it will collaborate with Microsoft to develop an artificial intelligence (AI) smart factory solution. Koo Dong-hwi, Vice President and third-generation group owner, flew to Hanover, Germany, to personally sign a memorandum of understanding (MOU) with Microsoft.

On the 19th (local time), LS ELECTRIC announced that it signed an MOU for "joint development and technology verification of smart factory and energy-based new business" at the Microsoft exhibition hall at the Hanover Industrial Fair. The signing ceremony was attended by Vice President Koo Dong-hwi and Dominic Wee, Corporate Vice President of Microsoft’s Manufacturing and Mobility division, where they discussed detailed cooperation plans.

The two companies will develop intelligent and autonomous factory solutions that diagnose process issues and all production-related areas using AI and machine learning technologies. They plan to implement an "intelligent factory" that connects and analyzes factory equipment data and solves problems using AI and machine learning technologies. They also aim to develop an "autonomous factory" solution that diagnoses logistics networks, production planning, and purchasing areas, enabling machines to make optimal decisions independently.

Vice President Koo Dong-hwi of LS Electric and Vice President Dominique Wie of Microsoft’s Manufacturing and Mobility Division signed a memorandum of understanding and posed for a commemorative photo on the 19th (local time) at the Hannover Messe in Germany.
The two companies signed an MOU for "joint development and technology verification of new energy-based businesses and smart factories" and agreed to promote the advancement of smart factories.
[Photo by LS Electric]

They will collaborate extensively in areas such as verifying data connectivity for representative scenarios, obtaining data insights related to production equipment issues, and analyzing power efficiency on production lines. They will check whether MES (Manufacturing Execution System), QMS (Quality Management System), and WMS (Warehouse Management System) provide accurate data related to defective products and stockouts. They will analyze the causes of equipment downtime and gain insights to determine the priorities in the problem-solving process.

They will measure the power consumption data of each production line equipment to analyze actual production efficiency. For processes with high power consumption, they plan to build an automated process that concentrates production during off-peak hours with lower electricity rates to use energy efficiently.

They agreed to discover new business models related to smart energy and power data by utilizing Microsoft’s cloud platform Azure. They plan to enhance the manufacturing environment through Azure Synthetic Analytics services and Azure Machine Learning services. They aim to establish a comprehensive cooperative relationship covering not only smart factories but also DX (digital transformation) new businesses.

Previously, LS ELECTRIC’s Cheongju plant in Chungbuk was selected as the second Lighthouse Factory in Korea by the World Economic Forum (WEF) in September 2021. A Lighthouse Factory refers to an innovative factory leading the future of global manufacturing by actively adopting AI, Internet of Things (IoT), big data technologies, and more, just as a lighthouse guides the way by shining light in the night sky. LS ELECTRIC carried out advanced tasks for inspection and noise analysis on the production line at the Cheongju plant. Using deep learning technology based on the Microsoft Azure platform, they achieved results that lowered defect rates and increased productivity.

Jo Wook-dong, Executive Director of LS ELECTRIC, said, "The success of the 'K-Smart Factory' depends on securing technological competitiveness," adding, "We plan to secure the capability to continuously raise the level of smart factory solutions that can compete in the global market through cooperation with Microsoft."

This content was produced with the assistance of AI translation services.