Industrial 4.0
Article | September 21, 2023
Navigating the path to success by unveiling the best practices for thriving in Industry 4.0 through successful digital transformation. Embrace the data-driven decision-making and customer-centricity.
The pursuit of successful digital transformation has evolved from a business strategy to a business necessity. It is a vital imperative for organizations striving to survive and thrive in an ever-competitive market. Within this paradigm shift, a journey unfolds that transcends the commonplace and ventures into the realms of strategic innovation. This best practices article is not just a standard guide but a roadmap to excellence.
Explore the best practices that propel businesses into the forefront of Industry 4.0. Beyond the surface of technology adoption lies a deeper narrative, one of cultural transformation, stakeholder collaboration, and visionary leadership. Delve into the intricacies of data-driven decision-making, the agility that fuels progress, the relentless pursuit of knowledge, and the unwavering commitment to the customer experience. Each of these elements forms a crucial thread in the tapestry of successful digital transformation. Through compelling case studies and real-world examples, draw inspiration from industry leaders who have not merely embraced change but have harnessed it to redefine their future.
1. Make confident decisions with Digital Twin
Combining the physical and digital realms enables seamless integration of the entire value chain, from design to production, while optimizing with continuous data flow. A digital enterprise can harness the limitless power of data by obtaining valuable insights to make quick and confident decisions and to produce best-in-class products through efficient production. The Digital Twin approach integrates the entire product lifecycle with the factory and plant lifecycles and performance data. The end result is a continuous, open cycle of product and production optimization.
The digital twin is a comprehensive digital representation of a product or process throughout its entire lifecycle. By creating a digital twin, companies can achieve significant value, such as faster time-to-market for new products, improved operational efficiency, reduced defects, and exploring new business models to drive revenue growth. With the digital twin, companies solve physical issues more efficiently by detecting them early on and accurately predicting outcomes. It empowers them to design and build superior products and ultimately enhance customer satisfaction by better serving their needs. By adopting smart architecture design, companies can continuously realize iterative value and benefits at an accelerated pace.
Manufacturing, automotive, aviation, and other industries have adopted digital twins to boost productivity and efficiency. By 2025, the manufacturing industry is predicted to reach a market size worth over six billion U.S. dollars.
2. Vertically Network Various Units in Enterprise
Vertical integration in a Digital Enterprise involves the convergence of IT and OT (Information Technology and Operational Technology) to enable seamless data flow from the shop floor to the top floor. The vast amount of data generated by field devices and control units on the shop floor is vital in the context of Industry 4.0, where intelligent data utilization and communication are paramount. Vertical integration generates a comprehensive solution by integrating IT systems at various hierarchical manufacturing and production levels. These hierarchical levels include the field level (interface with the production process via sensors), the control level (machine and system regulation), the production process level (to be monitored and controlled), the operations level (production planning and quality management), and the enterprise planning level.
Vertical integration allows for improved communication and collaboration across different departments within the organization. This leads to better coordination, streamlined operations, and increased efficiency across the entire manufacturing ecosystem.
A study by the Boston Consulting Group found that companies with a high level of vertical integration were 16% more productive than those with a low level of vertical integration.
3. Horizontally Integrate the Processes in Lifecycle
The concept of horizontal integration in a Digital Enterprise ensures smooth data flow throughout the entire value chain. This integrated approach enables the digitalization of the complete value chain, spanning from design and production to service and recycling. By establishing seamless horizontal integration, it eliminates information silos and creates connections that encompass all aspects, from product innovation and manufacturing to product usage and beyond.
Horizontally integrated companies focus on their core strengths and partner to support the value chain. Horizontal integration helps information flow between plant-level Manufacturing Execution Systems (MESs) when a company's manufacturing sites are spread out. This allows production sites to quickly share manufacturing data, such as unexpected delays, breakdowns, and inventory levels. Automated cooperation is crucial to supply chain integration in both the upstream (production processes and downstream (the process of bringing the finished products to market) supply and logistics chains. The integration lets a corporation automatically switch production duties between locations.
A study byMcKinseyfound that companies that engaged in horizontal integration in the digital age saw their market share increase by an average of 10%.
4. Upgrade Digitalization using Automation
Automation catalyzes growth by streamlining operations, breaking down silos, and promoting cross-functional collaboration. With reduced errors and increased efficiency, businesses can scale their operations with fewer resources, fostering a climate of innovation. This increased productivity allows employees to focus on more creative and challenging tasks, leading to higher motivation and engagement. Furthermore, automation provides a better customer experience, essential in today's digital-savvy market. By automating processes, businesses ensure quick access to customer information, leading to increased satisfaction.
Lowering costs and expenditures is another significance enabling businesses to eliminate waste, save time, and conserve resources by automating data entry, approval workflows, and financial procedures. Additionally, automation enables efficient management of decentralized global teams from a central hub, further contributing to cost savings. Automation aids in enhancing security measures and simplifying compliance procedures. Businesses proactively identify vulnerabilities and ensure compliance with ever-changing regulations by automating data-intensive tasks.
97% of IT managers feel process automation is necessary for digital transformation.
5. Implement Additive Manufacturing
The adoption of Additive Manufacturing (AM)technologies has prompted the evolution of innovative business models that emphasize environmental perspectives. AM has emerged as a transformative solution within the smart manufacturing industry, offering numerous advantages, such as improved labor, energy, and material optimization, enabling companies to respond to changing market demands effectively. AM is particularly time-saving and cost-effective for small-batch complex geometries products, allowing for non-traditional mass customization and shortening the product development cycle. It encourages changes in sustainable business models, including integrating recycled materials, increasing component attributes, and enhancing product lifecycle.
AM’s sustainable benefits have garnered significant attention, focusing on reducing waste, optimizing material consumption, and shortening supply chains. Using layer-by-layer production, AM is considered less wasteful than traditional subtractive methods. It also facilitates the creation of products with extended lifecycles through repair, refurbishment, and remanufacturing, promoting sustainability and environmental responsibility.
Study data estimates that the cost savings that can be achieved with Industry 4.0 transformations is 50%.
6. Choose the Appropriate Technology
The success of digital transformation endeavors hinges on the careful selection of technologies to invest in. Avoid investing in the latest technology just for the sake of digitization, and refrain from rushing into numerous significant changes simultaneously, which may overwhelm employees. Instead, opt to gradually replace legacy systems and synchronize technology with business objectives through the implementation of new procedures.
Here’s what Airbus did.
Case Study: Airbus
Airbus is the market leader in aeronautics and aerospace products and services worldwide. The organization needed a user-centric digital transformation solution to optimize its data analytics, technology, and machine learning tools, but this proved difficult. Later, it embraced open-source technology and consolidated its 15 tools onto a user-friendly platform. In ten months, this helped produce 290,000 visits and 2,200,000 page views. Additionally, the company's service center is now managing 30% fewer incidents.
7. Adapt Company for a Change
Digital transformation does not demand extensive technical expertise from management and employees; rather, it necessitates a shift in mindset. By embracing this new mindset and leveraging technology solutions to automate processes for both customers and employees, rapid growth can be achieved within the organization as well as in the external market. To facilitate this transformation, it is essential to identify areas that require change, enhance transparency, and foster a culture of collaboration within the organization. By taking these steps, an organization can effectively prepare for the changes brought about by digital transformation.
Case Study: Honeywell
The Fortune 100 manufacturer operates in industries such as aerospace and building technology. To improve product quality and make it easier to apply digital strategies, it cut its operations from eight markets to six. Early in its transformation journey, it established a digital transformation group in the company that led digital innovations like data-driven product offerings, IoT-connected devices, and advanced industrial process control. Honeywell Intelligent Wearables eliminated the need for expert site visits, empowered workers to continue learning, improved their performance, and effectively shared their knowledge with peers by connecting field workers with remote advice. In 2018, Honeywell's share price grew from $95 to $174, and revenue went from $40 billion to $43 billion.
8. Integrate Digital Transformation into Business Goals
Establish a strong connection between the digital transformation journey and the company's goals. Define the specific achievements to accomplish through digitization efforts. By aligning digital transformation initiatives with business objectives, a company can enhance its effectiveness in completing tasks, retaining existing employees, attracting new talent, and successfully overhauling company culture.
Case Study: Cummins
Cummins, a manufacturer of diesel and alternative fuel engines and generators is an example of a company that has capitalized on the increased demand for environmentally friendly products. Microsoft cloud compliance opportunities boost data security and IP protection. Microsoft has been one of the world's foremost technology companies for decades. Satya Nadella shifted the company's revenue model away from desktops and accelerated the transition to cloud computing. Cummins now uses Microsoft 365 for information management and collaboration to create a new workplace culture. Cummins' 58000 employees work cross-functionally and globally to stay ahead. Cummins relies on Microsoft 365 for strict security, data management and delivery, and compliance.
Final Thoughts
Successful digital transformation in Industry 4.0 requires a strategic and holistic approach beyond technology adoption. It demands a cultural shift, stakeholder collaboration, and a clear vision of the desired outcomes. To achieve successful digital transformation in Industry 4.0, organizations must adopt best practices that encompass technological, cultural, and strategic dimensions. Data-driven decision-making, agility, continuous learning, and a customer-centric approach are key elements in this transformative journey. By prioritizing these practices, businesses can navigate the complexities of digital transformation, drive innovation, and stay competitive in the dynamic landscape of Industry 4.0.
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Innovation
Article | February 22, 2022
The integration of cutting-edge technologies into the manufacturing industry has transformed the whole economy and accelerated the pace of all operations. Cloud computing for manufacturing is a type of technology that enables businesses to gain visibility, scalability, mobility, security, and improved collaboration, among other benefits. Seeing the benefits, many small and large players in the manufacturing business have embraced cloud computing.
“Cloud computing is not only the future of computing, but the present and the entire past of computing.”
– Larry Ellison, co-founder, executive chairman, CTO, and former CEO of Oracle Corporation.
According to IDC research, the manufacturing industry is the biggest player in cloud computing solutions, with an estimated spending of $19 billion. Additionally, Market Research Future projects that the cloud manufacturing market will reach a value of USD 121.72 billion by 2026. As a result, we may predict that manufacturing cloud computing has a long way to go in the industry.
In this article, we will look at some of the key cloud manufacturing applications and case studies of three US-based manufacturing businesses that used manufacturing cloud software ERP.
Applications for Manufacturing Cloud Computing
Effective Marketing
Cloud technology's comprehensive nature makes it an ideal solution for the challenges of marketing campaigns. Manufacturers leverage cloud-based applications to help them plan, execute, and manage marketing initiatives. Manufacturers can also look at production and sales data to see how well their campaign is working.
Product Planning and Development
Product planning and development are closely linked in manufacturing. Manufacturers can get their businesses ready for full production by integrating product planning and development information with supply chain data and communications. Comprehensive integration enables products to move a lot faster from notion to engineering, from prototype to small-scale production, and eventually to full-scale production and shipping.
Production and Stock Tracking
Once production begins, cloud technology may assist in the manufacturing and stock management of products. Businesses can use enterprise resource planning (ERP) software to match production levels to available inventory and sales. Pricing quotations, order intake, and client requests can all be managed using the ERP software. Using a standard product to keep an eye on these things reduces the time it takes to get an order.
Productivity Management
Manufacturers rarely maintain the same level of production throughout the year for all products. They can use cloud-based tools to keep track of when to modify production to meet changing market demands. These software solutions ensure that manufacturers have the necessary raw materials on hand by making communication easier across the supply chain. This helps them easily adjust their orders to accommodate future productivity levels.
Three Case Studies of Cloud Computing in Manufacturing
Ralco Industries Leveraged Cloud to Cut Its Inventory by 15%
Ralco Industries is a producer and supplier of automotive components that specializes in precision-welded assembly and prototypes. To overcome the challenges of their business growth, the industrialists moved to manufacturing software cloud ERP and saved some money in the process. There was a lot of inefficiency, quality issues, excessive expediting prices, and wasted time due to inaccurate inventory and many unconnected systems in the past. Moving to a single integrated cloud ERP software system helped Ralco cut inventory on hand by 15%, scrap by more than 60%. It helped Ralco save money on premium freight by more than 20% and save almost $100 on each purchase order that was processed.
Avon Gear Improved Inventory Accuracy and Grew by 20% Yearly
Avon Gear Company, a maker of precision-machined components and subassemblies for heavy industrial equipment, was looking for an ERP system that would integrate data across the organization. The company chose a cloud-based manufacturing ERP to manage and record production activity, inventory status changes, receiving, shipping, and other plant-floor data. Consequently, Avon Gear's inventory accuracy has increased, and the company's growth rate has gone up by an average of 20% each year.
Wolverine Improved First-pass Quality by 15-20% Using Cloud
An automobile brake system technology firm, Wolverine Advanced Materials, found that its manual methods were not sustainable, especially when it came to supporting fast development. To grow and embrace lean manufacturing, the firm chose cloud ERP, which enabled it to properly assess cost and profitability by part. Using manufacturing cloud software, ERP, the company's factory floor workers can see all client orders and conveniently categorize them by material so that they can better manage their schedules. This has resulted in increased production and cost savings for Wolverine. Also, overtime was cut by 60%, while first-pass quality increased by 15% to 20%.
Final Word
For manufacturers, cloud computing is a game changer. Manufacturing companies must deal with a lot of different sites and supply chains, which requires the use of large, complex database applications.
The Cloud computing for manufacturing is expediting industrial operations and overall business decisions in the manufacturing industry. Cloud computing enables industrial organizations to improve visibility across large fleets of facilities. It also contributes to standardization by synchronizing and supplying data for new forms of analytics. Supply chain management becomes more effective and product development gets easier with cloud computing. So, instead of debating whether to use cloud computing, take action and use cloud computing in your business.
FAQ
What is cloud computing in manufacturing industry?
Cloud computing refers to the on-demand provision of IT resources over the internet. Instead of buying, running, and maintaining physical data centers and servers, you can use a cloud service. This approach would help you get computing power, storage, and databases when you need them, rather than buying and running your own.
How does cloud computing help the manufacturing industry?
Cloud-based solutions are more rapidly deployed than traditional systems, which enables firms to stay current with new innovations. Also, they are easier to change and grow, and they have the potential to make resellers more likely to use them.
Why cloud computing vital to modern manufacturing?
Cloud computing impacts all aspects of manufacturing. It enables manufacturers to see and control all manufacturing data and take informed production decisions. This is the reason why it is vital to modern manufacturing.
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Manufacturing Technology, Additive Manufacturing
Article | September 30, 2022
Stand out with long-term scalability with AM by fuelling innovation in the design process. Staying relevant has now become critical when it comes to additive manufacturing. It is, therefore, essential to make decisions by deep diving into the right people, processes, and technologies at the right moment to keep up the momentum when using AM processes.
Better Product Designs with Design Innovation Framework for Additive Manufacturing
Additive manufacturers have started using the product design innovation (DI) framework. It serves additive manufacturing part designs with increased -
Proof of value (POV) - Helps your business stand out in the market with superior quality design.
Proof of concept (POC) – Ensures that the design will function as intended.
Proof of market (POM) – Defines the level of success of a design at scale for mass market production.
Proof of impact (POI) – Using simulation to mitigate design failures and ensure that your designs last longer.
As a result of the design innovation framework, additive manufacturing parts are manufactured faster and with better quality while lowering material costs. Furthermore, with more and more additive manufacturing companies implementing design innovation frameworks for their production, it is possible to tap into the opportunities of innovative product design at an early stage to give your production a competitive edge. Therefore, in the quest to grab an early market share in additive manufacturing for new, small and medium enterprises, the design innovation framework will play a pivotal role. Your product design, product research and development teams will implement the DI framework for the scalability of your additive manufacturing units.
Fuel innovation and design thinking to produce innovative product design ideas with the goals and practices in the DI framework, as mentioned below. They infuse your designs with the design innovation framework to get quality manufactured products.
Strategic Business Growth with AM Design to Fuel Innovation for Small and Medium Enterprises
Fuel innovation in how you design additive manufacturing parts with strategic business growth. By keeping three goals in mind during the design process, you can use cutting-edge research in additive manufacturing design to help your business grow.
Increase Speed:
Create highly detailed intermediate manufacturing goods. As additive manufacturing is still in the transition phase, creating highly complex designs on a small scale is easy. But for large-scale AM production, intermediate goods like molds make it easy and quick to make intricate details.
Build upon the existing DI (Design Innovation) process.
Make use of designs from the design repositories and similar component geometry.
Choose an orientation that does not need additional support.
Save resources by preferring cellular structure over solid volumes.
Make use of internal volumes to add more functionality.
Print functional joints to save assembly steps and time.
Standardize the assembly process to save production time.
Use high-resolution STL files to reach your maximum design potential.
Improve printability by scaling the artifacts and considering the resolution of the process.
Manage Quality:
Reduce residual stress to keep the parts from warping.
Materials must be qualified and characterized to be micro-structured.
Adhere to industry standards to get consistent, reliable, and repeatable outputs.
While successful designs with strategic AM innovation can be beneficial to
Create new products with AM.
Create new business models with AM,
AM helps to advance product design processes.
Create new classes of AM technologies.
Save Costs:
Save costs by creating multifunctional parts.
Choose a cheaper alternative material that satisfies the same constraints.
Go for an economical assembly by manufacturing high-performing parts.
Implement a cellular structure to reduce the quantity of material used.
Innovate designs that bring down costs through accurate simulation of manufacturing constraints.
Use composite material that satisfies the applied constraints.
Risk Factors to Consider and Mitigate When Investing in AM
The Risk of Data Leakage
Cyber security is a critical component when storing design file data on the cloud and sharing it over the network. Getting a design file copied, stolen, altered, infected, or deleted causes a loss of time and sometimes money. Attackers ask for a ransom by putting a worm in your design file or blocking access.
A highly private network with encrypted personal cloud connectivity and highly secure access control are the answers to mitigating the risk of cyber-attacks. Mitigating the risk is done with several measures. These include doing regular risk assessments, using a single design with no mistakes as a base for other design models, using advanced RFID tags to make products with AM, and practicing individual vigilance through awareness.
The Risk of Poor Quality
When outsourcing your manufacturing to an AM unit, the risk of low quality of the manufactured products is high. You cannot offer a warranty or guarantee when outsourcing production. Also, there is a risk that companies facing losses due to faulty products might want to claim for their losses.
Quality improves when you give much attention to post-processing the manufactured parts.
Leading Industries Using the DI Framework in AM:
Aerospace
Automotive
Consumer products
Energy
Infrastructure
Medical and pharmaceutical
Food
Sports Accessories
Final Thoughts:
Gearing up with innovation in additive manufacturing starts with three design goals. These include increasing speed, managing quality, and saving costs, which can help you achieve strategic business growth to scale for the long-term for business resilience. In addition, the DI framework for AM helps your large enterprise use progressive design thinking. So, now is the best time to invest into new ways to design products using design and management software for additive manufacturing.
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Article | August 5, 2020
As a researcher who studies the intersection of people and technology at work, Ben Eubanks examines each side of a two-faced coin. On one side is tech—“how we use technology to hire, train and engage the workforce; the other is human—“the trends side of how employers are performing these activities.” Eubanks, principal analyst at Lighthouse Research & Advisory and author of 2019’s Artificial Intelligence of HR, has a background in human resources and now works as a researcher, speaker and writer.
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