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.
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.
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.
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.
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.
Article | December 23, 2021
Sustainable business strategiesare bringing significant financial and environmental benefits to manufacturers. Sustainable manufacturingcreates goods while minimizing environmental consequences and preserving energy and natural resources. In addition, sustainable production improves the safety of workers, the community, and the products they produce.
Allied Market Research projects that the worldwide renewable energy market will reach $1,977.6 billion by 2030, increasing at an 8.4% CAGR. As a result, we can conclude that many businesses are transitioning from traditional manufacturing to sustainable manufacturing.
It’s a good time to be a part of the renewable energy industry. New technologies are coming to market every day, and we work in an industry that is trying to solve an enormous challenge.
– Susan Stone, Chief Executive Officer at Ubiquitous Energy, Inc., in conversationwith Media 7
Though many organizations are pioneering the sustainable manufacturing approach, we have selected five of the most well-known companies making serious attempts to be sustainable manufacturing companiesby all means.
In addition to the list of sustainable manufacturing businesses, this article will discuss the advantages of sustainabilityand how organizations may become carbon neutral. So let's get started.
Top 5 Companies with a Sustainable Business Model
The following are five manufacturing businessesthat are investing in sustainable manufacturingmethodsacross their production processes to become more responsive to our mother earth.
The company is reducing its environmental effect by engaging with suppliers, taking climate action, and driving the shift to a circular economy. Climate change is a key concern for Philips. So they are rethinking their business strategies and decoupling economic development from environmental and social impacts.
They met their aim of becoming 100% carbon-neutral in their operations and procuring 100% of their power from renewable sources by 2020. They intend to obtain over 75% of their total energy usage from renewable sources by 2025 and to reduce CO2 emissions across their whole value chain to meet the 1.5°C global warming state.
Sustainability is profoundly embedded in SCHOTT's DNA. It derives from their distinctive business concept, which dates back to 1896. Their sustainability plan includes responsible governance, workers, society, environment, and climate.
“Regarding climate change, it is high time to act. Everyone must take responsibility – politicians, companies and society. We are ready to play our part. We want to become climate neutral by 2030.”
- Dr. Jens Schulte, Member of the Board of Management with responsibility for the “Zero Carbon” strategy program
Long-term thought and responsible behavior are guiding principles of SCHOTT, which is why they care about the environment and climate. They are entering a new era of sustainable management with their “Zero Carbon” strategic program.
Long term, they seek to eliminate fossil fuels as soon as technologyallows it. They are focused on the most energy-intensive stage of glass melting to create new solutions.
IKEA's low-cost furniture utilizes a lot of wood. But because the company employs sustainable forestry practices, your new minimalist nightstand didn't cost the globe a rainforest. The business is also investing heavily in solar and wind energy. This year, the corporation intends to increase its already significant expenditures in renewable energy, to reach 100% clean energy by 2020. It also leads in offering cleaner, greener products.
In addition to encouraging people to walk, this footwear manufacturer uses recycled aluminum frames in its headquarters in the Netherlands, and underground energy storage to reduce its carbon footprint. Moreover, it has implemented stringent emission regulations at all of its manufacturingfacilities and has cut its overall carbon footprint by around 80 % since the late 1990s. The company also sells the most environmentally-friendly soccer sneakers on the market.
Johnson & Johnson
According to the company, Johnson & Johnson has just begun transitioning a significant portion of its energy reliance to solar power in an effort to become the world's most socially responsible organization. Currently, it is the second-largest user of solar energy in the United States, with more than half of its power coming from environmentally friendly sources.
Rewards of Adopting Sustainable Manufacturing Practices
Many businesses are seeking sustainabilityfor many reasons, including:
Reducesoperating expenses and waste
Respondsto new consumers and get a competitive edge
Buildspublic trust and protect brand and reputation
Createslong-term business viability
Recognizesand address regulatory constraints
What Can We Do to Make Sustainable Manufacturing a Reality?
Every business must support green energy projects. Here are some fundamental actions that every business should take to transform itself into a sustainable manufacturing organization.
Maximize the Efficacy of Fossil Fuels
In today's society, energy conservation is a win-win situation. Approximately half of the world's known oil reserves have been exhausted, which means we are near to the point of diminishing returns in terms of supply. As far as we know, there hasn't been a shortage of supplies. Shutting down unwanted equipment might help you save money immediately. Replace a single-speed motor with a variable speed or servo drive. Use a hydraulic pump with variable speed. Wind, solar, and hydropower can also be used to conserve energy.
Reduce or Eliminate Waste
Don't overindulge; merely take in what you need to get the task done. At this point, we may all agree that it's easy, but in the past, our primary focus was on reducing productioncosts or time to market. Whether we were wasting resources was unknown or irrelevant to anyone. Metal, paper, and packaging are all examples of industries where this is true. The potential for waste reduction may justify the purchase of highly accurate production equipment.
As a byproduct of manufacturing, metals may be easily recycled and used for new products. In addition, recycling metal saves money and energy since it uses less energy in the manufacturing process, allowing for a 60 % or more reduction in the energy needed to make new products.
Sustainable manufacturing practicesare making manufacturing industries more socially responsible and carbon neutral. This new manufacturing method is necessary for today's period because we must consider future generations while improving today's. Natural resources must be conserved before depleting, and we have nothing left to offer future generations. Responsible organizations have already used this sustainable approachin their manufacturing processes, and we anticipate that every company should consider this method to be more sustainableand environmentally responsible.
What is the difference between green and sustainable manufacturing?
The main difference between green and sustainable is that green addresses a single aspect i.e., environmental health, but sustainability addresses the entire system, including economic, social, and environmental aspects.
Which business is more environmentally friendly?
According to Corporate Knights, Alphabet, Tesla, and AstraZeneca were among the world's most sustainable companies in the Global 100 Index for 2021.
What are the four sustainability factors?
The word sustainability refers to programs, activities, and actions to preserve a resource. But it relates to four unique key areas. Human, social, economic, and environmental are the four pillars or factors of sustainability.
Article | January 12, 2022
Real-time manufacturing analytics enables the manufacturing base to increase its efficiency and overall productivity in a variety of ways. Production data is an effective means of determining the factory's efficiency and identifying areas where it might be more productive.
“Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”
– Geoffrey Moore, an American Management Consultant and Author
Creating a product-specific data collection may assist you in determining and visualizing what needs to be improved and what is doing well. In this article, we'll look at why manufacturing data collection is vital for your organization and how it may help you improve your operations.
Why is Manufacturing Data Collection so Critical?
Visibility is the key benefit that every manufacturer gets from manufacturing data collection. By collecting real-time data, or what we refer to as "shop floor data," manufacturers better understand how to assess, comprehend, and improve their plant operations. Manufacturers can make informed decisions based on detailed shop floor data. This is why having precise, real-time production data is critical.
“According to Allied Market Research, the worldwide manufacturing analytics market was worth $5,950 million in 2018 and is expected to reach $28,443.7 million by 2026, rising at a 16.5% compound annual growth rate between 2019 and 2026.”
For modern manufacturers, the advantages of data collection in manufacturing are numerous. The manufacturing industry benefits from production data and data-driven strategy in the following ways.
Substantial reduction in downtime by identifying and addressing the root causes of downtime.
It increases manufacturing efficiency and productivity by minimizing production bottlenecks.
A more robust maintenance routine that is based on real-time alerts and machine circumstances.
Improvements in demand forecasting, supplier scoring, waste reduction, and warehouse optimization reduce supply chain costs.
Higher-quality goods that are more in line with customers' wishes and demands depending on how they are utilized in the current world.
So, after looking at some of the significant benefits of real-time manufacturing analytics, let’s see what type of data is collected from production data tracking.
What Sorts of Data May Be Collected for Production Tracking?
Downtime: Operators can record or track downtime for jams, cleaning, minor slowdowns, and stoppages, among other causes, with production tracking software. In the latter scenario, downtime accuracy is optimized by removing rounding, human error, and forgotten downtime occurrences. The software also lets you categorize different types of stops.
Changeovers: Changeovers can also be manually recorded. However, changeovers tracked by monitoring software provide valuable data points for analysis, considerably reducing the time required for new configurations.
Maintenance Failures: Similar to downtime classification, the program assists in tracking the types of maintenance breakdowns and service orders and their possible causes. This may result in cost savings and enable businesses to implement predictive or prescriptive maintenance strategies based on reliable real-time data.
Items of Good Quality: This is a fundamental component of production management. Companies can't fulfill requests for delivery on schedule unless they know what's created first quality. Real-time data collection guarantees that these numbers are accurate and orders are filled efficiently.
Scrap: For manufacturers, waste is a significant challenge. However, conventional techniques are prone to overlooking scrap parts or documenting them wrong. The production tracking system can record the number and type of errors, allowing for analysis and improvement. Additionally, it can capture rework, rework time, and associated activities.
WIP Inventory: Accurate inventory management is critical in production, yet a significant quantity of material may become "invisible" once it is distributed to the floor. Collecting data on the movement and state of work in progress is critical for determining overall efficiency.
Production Schedule: Accurate data collection is essential to managing manufacturing orders and assessing operational progress. Customers' requests may not be fulfilled within the specified lead time if out of stock. Shop floor data gathering provides accurate production histories and helps managers fulfill delivery deadlines.
Which Real-time Data Collection Techniques Do Manufacturers Employ?
Manufacturers frequently employ a wide range of data collection techniques due to the abundance of data sources. Manual data collection and automated data collection are two of the most common data collection methods. Here are a few examples from both methods:
IoT: To provide the appropriate information to the right people at the right time with the correct shop floor insight, IoT (Internet of Things) sensor integration is employed.
PLC: The integration of PLC (Programmable Logic Controller) is used to measure and regulate manufacturing operations.
HMI: It can provide human context to data by integrating line HMI (Human Machine Interface) systems (such as individual shop terminals like touch screens located on factory floor equipment).
SCADA: Overarching management of activities with SCADA (Supervisory Control and Data Acquisition) systems.
CNC and Other Machines: Integrating CNC and other machines (both new and older types) to keep tabs on production efficiency and machine well-being is a must these days.
One of the most challenging aspects of shop floor management is determining what to measure and what to overlook. The National Institute of Standards and Technology recently conducted a study on assisting manufacturing operations in determining which data to collect from the shop floor.Additionally, you may utilize the manufacturing data set described above to obtain information from your manufacturing facility and use it strategically to improve operations, productivity, efficiency, and total business revenue in the long term.
What is manufacturing analytics?
Manufacturing analytics uses operations and event data and technology in the manufacturing business to assure quality, improve performance and yield, lower costs, and optimize supply chains.
How is data collected in manufacturing?
Data collection from a manufacturing process can be done through manual methods, paperwork, or a production/process management software system.
Article | January 20, 2022
COVID drove many supply chain disruptions in 2021. This was particularly true for companies using Asia to source product. Sadly, the bottleneck continues in 2022, but there are new channels now available to serve the North American material handling market. System integrators, dealers, and distributors in the space cannot work with vendors who offer slow delivery timetables. Customers want shelving, racking, conveyors, and robotics no later than Q3 2022.
MODEX 2022 provides answers to solve the supply chain disruption
MODEX 2022 (March 28-31, 2022) in Atlanta, will once again bring many global manufacturers to the event. Nearly 800 exhibitors and 40,000 attendees will respect COVID health and safety protocols while learning about much needed solutions from a variety of global manufacturers. For the first time there is an African company exhibiting at MODEX: LinkMisr International.