Manufacturing Technology
Article | December 14, 2021
The manufacturing industry has evolved to new heights of innovation, productivity, and excellence with digital transformation. Manufacturing digitalization has made operational procedures more skilled, accurate, and time-savvy.
“Many companies simply are not willing to change or think they are done once they make a change. But the truth is technology; consumer demands, the way we work, human needs and much more are constantly changing.”
Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft
With a CAGR of 19.48 percent between 2021 and 2026, the digital transformation in the manufacturing market is expected to reach USD 263.93 billion by 2026. Manufacturing plants adopt digital technology to improve, automate, and modernize processes as part of Industry 4.0.
So, what are the key benefits of digitalization for manufacturers? This article will elaborate on the top five benefits of digital manufacturing transformation.
How to Define Digital Manufacturing?
Manufacturing digital transformation involves integrating digital technologies into processes and products to improve manufacturing efficiency and quality. Manufacturing's digital transformation aims to increase operational efficiency and reduce expenses. The digital transformation techniques ensure product quality. It also makes work more efficient, safe, and stress-free.
What Is Included in Manufacturing Digitization (Industry 4.0)?
Industry 4.0 is the digitalization of manufacturing. Cyber-physical systems, IoT, and cloud computing are current trends in manufacturing automation and data exchange. Connected devices, cloud computing power, and the modern emphasis of lean, efficient operations enable Industry 4.0 to construct advanced and innovative smart factories.
Industry 4.0 includes design, sales, inventories, scheduling, quality, engineering, customer and field service.
Five Benefits of Digital Transformation in Manufacturing
Manufacturing organizations can benefit from digitalization in a variety of ways. It can help make the work more efficient, decentralized, and secure. It further creates new business opportunities and attracts new talent to the industry. Additionally, integrating products into a digital ecosystem increases their value and appeal. Let’s dig deeper into each of the five key benefits.
Reduces Costs
Technology is an invaluable companion in reducing the manufacturing company's expenses in the future. The incorporation of digital technology results in the transformation of procedures and the digitization of documents, resulting in overall process optimization. Therefore, a reduction in labor costs might be expected as a result of the elimination of unnecessary expenditures.
Additionally, digitization enables businesses to assess and estimate expenses considerably more precisely, ensuring that budgets stay on track. Additionally, it eliminates andsubstitutes inefficient jobs within processes, significantly increasing their efficiency. This efficiency is translated into time savings, which results in a substantially more cost-effective manufacturing process.
Decentralized Production
Manufacturing digital transformation allows organizations to supervise manufacturing remotely, allowing production to continue uninterrupted. In rare cases like Covid-19, digitalized businesses have not had to cease or even slow down production. These systems can work without interruptions for much longer than any worker.
Digitalization also boosts methodology flexibility and reactivity. For example, if a production plant has a problem, an automatic alert is generated, and the issue is resolved regardless of the day, time, or presence.
Improved Operational Efficiency
Smart product connectivity allows devices to connect and communicate with each other (M2M). This connectivity enables decentralized decision-making. Many duties no longer require an employee to be physically present. New manufacturing and production models minimize boring, risky activities while increasing accuracy, efficiency, and responsiveness.
Transforming businesses through digital means making better decisions based on real-time data. Training, changes, and repairs are no longer issues due to reduced frequency and automation.
New Business Opportunities
New digital technologies enable the manufacture of previously unviable products and services, generating new revenue streams. Also, new services (innovation or reorientation) are launched considerably faster. Companies may utilize big data and AI to experiment, anticipate trends, and predict about new advancements. These technologies can help organizations become more eco-friendly and create products that are less detrimental to our environment.
Attracts New Talent
Professionals with fundamental talents in this complicated and disruptive environment are drawn to digitalizedorganizations that are up-to-date with trends and processes. Also, if the change is managed well, it will lead to higher profitability, increasing employee satisfaction. Human motivation, along with excellent digital technologies, will reflect in the company's production and profitability.
Dusseldorf@Germany: The Deloitte Digital Factory
The digital factory in Dusseldorf provides a flexible setting for innovative workshops and training, bringing together the old and new worlds of supply chain and industrial operations to provide a seamless experience. Specific use case examples, as well as the digital solutions sector, will motivate and encourage businesses to get on their digital transformation journeys, making use of the most up-to-date technologies in the process.
Final Words
Manufacturing digitalization has a lot to offer the industry, and many manufacturers are capitalizing on this new phase of the industrial revolution by incorporating cutting-edge technologies into manufacturing and business operations. As said previously, the benefits of digital transformation in the manufacturing business are increasing the importance of digitalization in the industry. Transform your traditional manufacturing operating processes with these new manufacturing trends and observe the results that other benefitting manufacturing businesses have achieved.
FAQ
Why is digitalization vital in manufacturing?
Manufacturing process digitization improves overall business performance. But the results are seen across the factory. Digital transformation improves working conditions for employees and streamlines daily operations.
How are digitization and digitalization different?
Digitalization is a transformation of data and processes. Digitalization is the use of digital technologies to collect data, identify patterns, and make better business decisions.
How digital technologies are applied in manufacturing?
Digital manufacturing technologies enable the integration of systems and processes across all stages of production, from design to production and beyond.
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Manufacturing Technology
Article | January 19, 2021
These days, smart can be added to the front of just about everything. And unsurprisingly, packaging is no different.
Being influenced by digital transformation, smart packaging is a way for brands to connect their online and offline offerings. And as ecommerce sales continue to rise, Robert Lockyer, CEO and founder of Delta Global, a packaging solutions provider for luxury retailers such as Coach and Tom Ford, believes the smart trend in packaging will too.
In this piece, Robert shares his predictions on how the new era of smart packaging and consequently, products, will connect, improve and transform industries and shape new consumer expectations.
Smart packaging refers to a container or outer shell of a product that has extended functions. Now, the concept is nothing new as these functions are often the reason specific materials are chosen for use in the packaging of certain products.
For instance, in the food market, it’s common to find fresh produce wrapped in film with ethylene absorbers in order to lengthen shelf life. Or, for bottles to be fitted with oxygen absorbing caps to keep drinks fresher for longer.
But typically, in other FMCG markets, packaging has largely remained disconnected from the product it is containing. Packaging is merely seen as a means for transportation or a protective outer layer.
However, we are seeing a shift in perception. Increasingly, brands are investing in the smart functions of their packaging in order to add value to their products. And consumers are beginning to expect such things from brands as a result.
Consumer benefits of smart packaging
As the trend prevails, there are a number of reasons why brands should consider introducing smart packaging to their product offering. The most significant of these being the ability to improve the overall customer experience of shopping from your brand and encouraging greater customer engagement.
Although in traditional retail customers are presented with various physical touchpoints before making a purchasing decision, ecommerce is different. Unless a customer has visited a store first, which is unlikely at present due to COVID-19 restrictions, the package is often the first physical point of contact a customer has with a brand.
Therefore, from the moment the package is delivered, before it is even opened, it needs to make an impression on your customer. An impression that reflects your brand and the intended customer experience. This way, consumers will already have positive perceptions of your business, encouraging a better reception of your products, greater overall engagement and a higher likelihood of a repeat purchase in order to go through the whole experience again.
And smart packaging is a way for brands to do exactly that. Packages can offer customers additional benefits and an improved customer experience by integrating within them various technologies and features.
Face value features may include illuminations, sounds, and aromas, enticing customers by appealing to their sensory needs. But other smart technology integration can be much less obvious, yet equally as advantageous.
For instance, through use of connectivity and augmentation features, whether that be scannable QR codes, sensors or microchips, this can be used to improve communication with customers and the functionality and use of the product.
By scanning a QR placed on the outside of a box or bag with a smartphone for example, customers can be provided with more information on the product inside, including details of ingredients, origins and production. QR’s can also provide other marketing content such as competitions, product recommendations through digital discovery channels and the offering of virtual brand experiences.
Or, if the package itself is not “smart” in function, perhaps brands can look at using customer data and insights to inform designs and even tailor the outer materials to the needs of individual customers or groups, making them smart in design instead.
Either way, smart packaging is becoming a way for brands to differentiate themselves from competitors by improving customer interactions and supplementing their product offering with additional features and benefits and overall, creating a more favourable customer experience.
Commercial value of smart packaging
However, smart packaging isn’t just about giving your customers more. Rather, there are many benefits for the business, too.
Ultimately, there are advantages for connectivity and transparency in the supply chain as well as on the customer facing front. And of course, this is exactly what is offered with smart packaging.
Through the inclusion of chips and systems, such as radio frequency identification (RFID) which identify packages wirelessly, tedious processes involved with scanning at various logistic points can be removed, making the entire process from order to delivery much more efficient.
Naturally, this would reduce administrative tasks as well as costs for the business due to a much more streamlined chain.
For more sensitive items, particularly in food or even in the health and beauty industry, temperature can also be both managed and monitored through smart packaging. Readings can then easily be displayed on packages, giving both the brand and customer assurance that the items inside have not been breached and remain compliant and safe to use.
Consequently, smart packaging is on track to transform industries by offering both brands and consumers new ways to deliver and use products. Although barriers do exist at present, namely the costs related to manufacturing, it will be interesting to see how more and more brands begin to innovate and integrate smart technologies to more than just their products.
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Procurement & Supply Chain
Article | February 1, 2022
A strong supply chain in manufacturing reduces interruptions, which may cost delivery businesses substantial time and money, as well as degrade their brand.
Maintaining consistency is important in any form of business. However, the important question that remains to be answered here is how to achieve consistency when the driving factors seem to be out of the company’s direct reach.
“The future of manufacturing is a critical enabler of economies.”
– Kathryn Wengel
In this article, we'll highlight the five ways to create a strong supply chain that helps any business reduce the risk of disruption and, finally, cost. Furthermore, we will discuss the supply chain leader, Cisco Systems, and how it ranked first in the Gartner supply chain top 25 for 2021.
How Supply Chain in Manufacturing Is Different
A well-functioning organization requires an effective supply chain. However, supply chain management in manufacturing is even more vital.
Below are the three reasons why supply chain management is different and vital in manufacturing.
Products are more complex than they have ever been
Brand owners no longer manufacture their own products
Manufacturing is becoming more technologically advanced
5 Ways to Build a Strong Supply Chain
Strengthen Your Relationships
Strong relationships require both parties to be transparent and to continually aim for mutual benefit. Manufacturers in supply chain management must recognize the significance of building strong associations with vendors and should act likewise.The primary benefit of a great, healthy vendor relationship is that it enables you to maximize the value of your business. The more familiar you are with your suppliers, and the more familiar they are with you, the more likely you will receive personalized service, preferred pricing, and exclusive terms.
Effective supplier connections assist your business in the following ways.
Delivery of high-quality materials on time
Production goes off without a hitch
Take advantage of incredible deals
Excellent service
Saving your business time and money
Expand Your Supply Chain
Maintain good working relationships with multiple vendors to ensure the efficient operation of your supply chain. This encourages healthy competition, which might lead to reduced prices and better service. A diversified supply chain enables you to look outside the confines of your organization while also fostering innovation and more creative approaches.
Diversification of your supply chain provides flexibility, allowing you to adapt to changing market trends and consumer expectations. By diversifying your regional supply base, you may be able to provide more competitive rates on a local level.
Maintain Accurate Data
Both you and your supplier will inevitably suffer losses if your numbers are incorrect. Make sure your estimates are based on correct data or numbers and that you've taken into account all possible demand scenarios before drawing them. Collaborate with suppliers in the formulation of projections using your strong supplier ties. Under-and over-delivery and over-stocking can be avoided, and the likelihood of higher freight charges for urgent orders can be decreased.
Organize Integrated Systems
To make informed decisions at all levels of your business, you need a system that collects, integrates, and analyzes data. Supply chain integration is the process of establishing coordination and expanding connectivity across the whole supply chain, from procurement to production planning to logistics.
Advanced technological solutions have made supply chains more efficient and simplified than ever before. Software automation in supply chain management also helps in decreasing the stress on employees, minimizing errors, and improving resource utilization by utilizing high-quality software.
Always Have a Plan B
The risks associated with your supply chain can be reduced significantly, if not eliminated. An effective disaster recovery strategy is a contingency plan that must be prepared keeping in mind all the worst possibilities. There are numerous approaches to mitigating supply chain interruption, including regionalization, segmentation, and supply chain diversity.
Cisco Systems Tops the Gartner Supply Chain Top 25
For the second consecutive year, Cisco Systems is ranked first in Gartner's supply chain top 25. In addition, Gartner reports that the IT company's agility and competency in environmental, social, and governance (ESG) efforts prioritized critical infrastructure for hospitals and vaccine research. Cisco's sustainability standards are integrated into its supply chain business processes to ensure continual improvement and the generation of significant change necessary to manage ESG.
Cisco established two new targets for greenhouse gas emissions (GHG) reductions after reaching specific, ambitious targets one year ahead of schedule: A 30% reduction in supply chain GHG emissions, and by 2025, 80% of Cisco's component, manufacturing, and logistics suppliers will have a public GHG emissions reduction objective.
Final Words
A supply chain is a vital component of nearly all forms of business. If you are facing difficulty in effectively controlling your business's supply chain, consider the techniques suggested. The manufacturing supply chain process flow must be well-designed and well-executed to successfully complete the production cycle. Today's technology enables you to transform a complex supply chain into a simpler one that aids in risk anticipation and reduction. However, utilize this technology wisely and keep in mind that interpersonal relationships remain a critical component of supply chain success.
FAQ
How to build a strong supply chain?
When developing a robust supply chain, flexibility, data, future thinking, integration, and innovation are some of the most significant factors to be kept in mind. Moreover, keeping a backup of everything is critical.
What factors characterize a strong supply chain?
Visibility, optimization, achieving the lowest feasible cost, punctuality, and consistency are key factors of a successful supply chain.
What is supply chain manufacturing?
In the manufacturing industry, the supply chain is responsible for facilitating the transfer and transportation of raw materials into finished products.
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Digital Transformation
Article | December 8, 2021
A digital twin is a virtual model of an object or system that comprises its lifecycle. It is updated with real-time data and aids decision-making through simulation, machine learning, and reasoning for the production system.
IoT sensor data from the original object is used to create a digital twin of the system. This cloud-connected data allows engineers to monitor systems and model system dynamics in real-time.
Modifications can be tested on the digital twin before making changes to the original system.
Considering that digital twins are supposed to replicate a product's complete lifecycle and are used throughout the production process, it's not unexpected that digital twins have become prevalent in all stages of manufacturing.
“More than a blueprint or schematic, a digital twin combines a real-time simulation of system dynamics with a set of executive controls,”
– Dr. Daniel Araya, consultant and advisor with a special interest in artificial intelligence, technology policy, and governance
Companies will increasingly embrace digital twins to boost productivity and decrease expenses. As per recent research by Research and Markets, nearly 36% of executives across industries recognize the benefits of digital twinning, with half planning to implement it by 2028.So how does this digital twin technology benefit modern manufacturing? Let's have a look.
How the Digital Twin Drives Smart Manufacturing
Digital twins in manufacturing are used to replicate production systems. Manufacturers can develop virtual representations of real-world products, equipment, processes, or systems using data from sensors connected to machines, tools, and other devices.
In manufacturing, such simulations assist in monitoring and adapting equipment performance in real-time. With machine learning techniques, digital twins can predict future events and anticipate potential difficulties.
For maintenance, digital twins allow for quick detection of any problems. They collect real-time system data, prior failure data, and relevant maintenance data. The technique employs machine learning and artificial intelligence to predict maintenance requirements. Using this data, companies can avoid production downtime.
Digital Twin and Artificial Intelligence (AI) in manufacturing
Using digital twins and AI in production can enhance uptime by predicting potential failures and keeping equipment working smoothly. In addition, there are significant cost savings in the planning and design process as digital twins and AI can be used to replicate a specific scenario.
Maintenance is another area that has seen significant progress with the use of digital twin manufacturing. A Digital Twin powered by AI can predict when a piece of equipment will fail, allowing you to arrange predictive maintenance that is not simply taking information from OEM manuals but can significantly cut maintenance expenses along with reducing downtime.
Using the digital twin, it is feasible to train virtual workers in high-risk functions, similar to how pilots are trained using flight simulators. It also frees up highly skilled workers to upgrade the plant and streamline operations.
General Electric Created the Most Advanced Digital Twin
General Electric Company (GE) is a multinational business based in Boston that was founded in 1892. It has developed the world's most advanced digital twin, which blends analytic models for power plant components that monitor asset health, wear, and performance with KPIs (Key Performance Indicators) determined by the customer and the organization's objectives. The Digital Twin is powered by PredixTM, an industrial platform built to manage huge amounts of data and run analytic algorithms. General Electric Company provides extra "control knobs" or "dimensionality" that can be utilized to improve the operation of the system or asset modeled with GE Digital Twin.
Final Words
Given the numerous advantages of digital twin manufacturing, the potential for digital twins to be used in manufacturing is virtually endless in the near future. There will be a slew of new advancements in the field of digital twin manufacturing. As a result, digital twins are continually acquiring new skills and capabilities. The ultimate goal of all of these enhancements is to create the insights necessary to improve products and streamline processes in the future.
FAQ
What is a digital twin in manufacturing?
The digital twins could be used to monitor and enhance a production line or perhaps the whole manufacturing process, from product design to production.
How digital twin benefit manufacturers?
Using digital twins to represent products and manufacturing processes, manufacturers can save assembly, installation, and validation time and costs.
What is a digital thread?
A digital twin is a realistic version of a product or system that replicates a company's equipment, controls, workflows, and systems. The digital thread, on the other hand, records a product's life cycle from creation to dissolution.
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