Digital Factory
The first wave of digital transformation was built upon leveraging cloud, mobile and big data, to create a platform for organisations to achieve greater operational efficiencies, better business insights, and deeper customer engagements. These efforts helped provide competitive advantages for organisations as they started to work smarter and more efficiently.
The commitment to digital transformation is as strong as ever. According to IDC, global enterprises will spend $1.7 trillion on digital transformation in 2019. As manufacturers continue digital transformation journeys they are now looking to enter the transformation 2.0 phase, in which they will use new technologies to create even more opportunities and address new challenges on the factory floor. Digital transformation 2.0 takes the benefits of infrastructural changes even further to create new efficiencies. Technologies including IIoT (Industrial Internet of Things), artificial intelligence (AI) and blockchain will serve as the pillars to support this second wave of transformation.
IIoT
IIoT in 2019 will be less about connecting devices and more about gathering intelligent insight. Manufacturers have connected machines to be able to manage them more efficiently and now it’s time to take a holistic look at the data they are generating. Manufacturing equipment on the shop floor can now provide critical insight on operational output and machine downtime.
These real-time insights allow production optimisation and streamlined workflow processes. What’s more, these data points can also be connected to manufacturers’ enterprise resource planning (ERP) systems to provide a deeper look at business operations and pinpoint any inefficiencies in the product development cycle. This allows senior leaders to also have a preview of operations and the impact on the bottom line.
As manufacturers implement IIoT, they may realise that the skill set of their labour force also needs to evolve with IIoT. Today’s manufacturing technician must possess new digital skills that allow them to easily decipher real-time analytics. When it comes to AI, for manufacturers to truly tap the vast potential of this technology, they need to employ data scientists in 2019. Data scientists can collate the vast amounts of data provided by IIoT and execute an organisation’s AI strategy.
Artificial Intelligence
There is a massive amount of data being generated from a factory floor when all equipment is IIoT-enabled. While human insights cannot be replaced, AI is needed to quickly identify patterns and anomalies within the collected data. From the design process and production floor, to the supply chain and administration, AI is changing the way we manufacture products and process materials.
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When it comes to manufacturing equipment, unplanned downtime costs industrial manufacturers an estimated $50 billion annually, and equipment failure is the cause of 42% of this unplanned downtime according to an IndustryWeek report. As such, predictive maintenance powered by AI helps manufacturers to better service equipment to avoid malfunctions and machine downtime that impact production. This is just one example of how AI can be applied to a factory floor to predict outcomes and create a more agile organisation. Manufacturers will continue to personalise AI solutions to meet their specific business needs and address issues they face in day-to-day operations.
Blockchain
While blockchain is typically associated more with cryptocurrency and records-keeping, it provides a new checks and balances system in supply chain management. The manufacturing supply chain is a sophisticated, complex network with several nuances that can make accountability challenging, especially when it comes to logistics and ownership. Blockchain offers a level of transparency and security along the entire manufacturing supply chain. Blockchain can refine the supply chain and improve identity and data management. With blockchain, customers are able to see the full product life cycle, which not only ensures the high quality of the final product, but also certifies the integrity of raw materials from trusted suppliers.
This year will be another digital-centric year in manufacturing where the groundwork laid in 2018 will run at full capacity. As transformation 2.0 continues, organisations will be able to improve business operations by upgrading the skill sets of employees and utilising new types of workers such as data scientists. This will also have a tremendous impact on the entire customer journey and allow manufacturers to provide enhanced levels of service and shorter delivery timeframes for products and parts. 2019 is surely setting up to be another exciting one for manufacturers; time to watch it unfold.
David Hunter was appointed CEO of Star Rapid in July 2018 to help the company implement a smart factory in accordance with the principles of lean manufacturing. Prior to his joining Star Rapid, he served as the VP of Operations and Quality at Multek, and before then as VP and General Manager of Wuxi.
