Race Towards Digital Manufacturing
Published on : Thursday 08-12-2022
It is often challenging to get an off-the-shelf solution, as each company has different needs, says Gopinath PS.
Manufacturing industries globally are becoming smarter every day. What people want from their purchase has changed for good. There are new expectations. In a world of dynamically changing markets, shorter product life cycles, higher product complexity and global supply chains, companies are pursuing their digital transformation journey to adapt, be more flexible and responsive to keep up with the expectations of the market.
The digital revolution is not in the future, but it is the present. The fourth industrial revolution has the power to drive outcome-based changes in the manufacturing space. The common problems prevalent are the legacy systems, labour shortages, silos of information, material shortages, sequencing, disconnected IT systems and unseen wastes.
So, how to transform a typical manufacturing unit into a digital factory? There are three steps:
1. Digitisation is transitioning from analog or physical format to digital.
2. Digitalisation is the process of utilising digitisation to enhance business operations. Means making digitised content work for you.
3. Digital transformation is taking advantages from digitalisation to create new business concepts.
You should not simply adopt digital processes out of desperation to keep up with others in the industry. The key to becoming a successful digital business resides in how a manufacturer answers its own challenges.
Implemented successfully, these solutions deliver irresistible returns.
What does a successful implementation look like?
1. Everything and everyone are plugged into the network.
2. Unified manufacturing process. The layers of the business (ERP to Factory Floor) are integrated and operate based on data and information from all the other layers in real-time.
3. Stakeholders know the 'state' of the business in real-time.
4. Stakeholders know the future 'state' of the business in real-time.
5. Leveraging technology (ML/AI) to collect and analyse data/information. ML predicts future outcomes based on past patterns and current state.
6. AI recommends operational adjustments to improve future outcomes.
7. Stakeholders execute (or not execute) AI recommended operational adjustments.
The immediate bottom-line production benefits are evident: optimised inventory, fewer machine failures, improved quality, less scrap and downtime issues, faster changeovers, reduced energy and improved efficiency and yield – ‘The profit from within’.
Digital transformation is not all about implementing new software, and processes that are more efficient and automated than traditional business practices and processes. It is an entirely new, innovative way of doing something that is core to your business.
That means organisations must consider everything when taking on a digital transformation initiative – from how people will react to the change, how it will impact customer relations, the cost, how it will align to business goals, and so forth. Digital transformations empower organisations to take their business into the future, and position companies to withstand competition and grow into new areas.
But all of that is easier said than done – according to digital transformation statistics, 70% of all digital transformation programs fail due to employee resistance and lack of support from management (McKinsey) and only 16% of employees said that their company’s digital transformation efforts improve their performance or are sustainable.
So why are the success stories so far and few between? To get the digital transformation right requires the following 5 things: the right strategy, a dedicated team, the right technology, adequate budget and importantly, the right partners. It requires professionals who are experienced in every layer of the Automation Stack, from Control Systems on the shop floor to the ERP and Business Systems on the technical side and people from finance, supply chain, planning, technology, production, quality, maintenance to come together towards a common goal.
The new winners will be of 2 categories: One – those who transform their manufacturing. They will become the market leaders, and Two – new entrants. Implementing digital strategies is easier in a Greenfield plant than a brownfield plant. Entrepreneurs, who understand the future of digitalisation and see incumbents lagging in its adoption, will build their digital factories from scratch and leave the incumbents behind.
The importance of AI for manufacturing cannot be understated. No matter where you are on the digitalisation spectrum, you as a manufacturer are constantly creating lots of data that should be managed and analysed properly to achieve any level of process improvement. The volume of data being created will only grow exponentially. Human minds are limited to processing fewer dimensions, while the AI can look at more than 200 different dimensions, learn from the past and contextualise the data into actionable insights. This comes in very handy in root cause analysis, predictions on possible failures and quality control analytics there by alerting in advance and a projection into future accounting the current state.
Data security is a concern for most visionaries as cybersecurity is complex, dynamic, and fast-changing. The latest reports from industry research experts like Forrester and Gartner are pointing towards the same concerns. Follow a security-first approach. Security must be embedded into all applications as the first line of defense.
So where do I start?
Start with a DTMA (Digital Transformation Maturity Assessment) of your plant, process, and people. Identify use cases with a justified RoI. Begin with a proof of concept (PoC), then a pilot, scale up into different phases and slowly reach the full deployment into a smart factory.
Final thoughts
The value proposition is king. Successful digitalisation requires complex interactions between technology, processes, people, and business models both within the company and externally in the ecosystem.
It is often challenging to get an off-the-shelf solution, as each company has different needs. Choosing the right technology partners is the key. These partners must understand the domain function and process, company’s existing operations, technology, and data. As complexity differs for each company, the imperative is to co-create solutions that fit their needs, requirements, and budgets. Digital transformation is more like a marathon than a 100-metre race. Just ensure that you know where the finish line is (near-/mid-/long-term) and continue at a consistent pace. Investors, employees, and your customers will thank you.
Gopinath PS is the Deputy Managing Director of BASE Automation Technologies Pvt Ltd, Chennai. He is a TUV certified DTMA assessor. Are you a manufacturer concerned about your digital maturity? Connect with him on email: [email protected]
