Manufacturers Get Smarter for Industry 4.0

Sponsored Content

manufacturers

Imagine a factory floor with no operators in sight, machines receiving orders, automated guided vehicles (AGVs) moving products from one machine to the next, machines performing self-diagnosis and predicting failures and finally delivering a unique, customized product based on the customer’s specifications.  This is the future of manufacturing!

The world of manufacturing is making a quantum leap with robots, self-organizing production, augmented reality and 3D printing. At the heart of this change is data – data from all these machines to drive outcomes – mass customization, predictive maintenance, products-to-services.

In smart factories where processes are fully digitized and connected, manufacturers can build and deliver orders more quickly. Customers are also able to personalize their purchases from a manufacturer with smart factory capabilities. This type of connected manufacturer, often referred to as Industry 4.0 or the fourth industrial revolution, is underway – and will be central to the debate at the plenary Forum session “The digital economy: driving industry 4.0” at ITU Telecom World 2016 in Bangkok this November.

The Connected Smart Factory

Audi, Harley Davidson, and Siemens are among the smart factory leaders that are changing the business of manufacturing. A smart factory is defined by its level of connectedness.

Five levels of Connectedness

The first level is intra-company vertical integration where a company’s business systems connect to the shop floor systems. A large number of automobile makers have been producing cars with this level of connectedness for years. Instead of having separated systems for manufacturing planning, execution, tracking, and tracing, these processes are connected and integrated with corporate business systems to improve key metrics such as customer delivery, quality and costs.

The second level is machine-to-machine connectedness where intelligent machines self-diagnose and self-correct. In these smart factories, machines have built-in sensors or RFID chips that allow them to ‘talk’ to each other and adjust workflows.

eCommerce integration, or direct integration of online configurations, is the third level of connectedness. This type of smart factory caters to the consumer, providing personalized, highly configurable products that are managed from order entry to the shop floor.

The fourth level of connectedness is manufacturing collaboration, which supports collaboration with suppliers, contract manufacturing, design partners, OEMs and customers. Design partners can work on prototypes and test designs with real time integration to shop floor systems. With the advent of 3D printing, this gives design partners the ability to do rapid prototyping.

The final level of connectedness is when machines on the factory floor are connected to a machine cloud that enables remote monitoring, predictive maintenance and quality management. Operators and manufacturers of machines can manage their assets at remote sites, while having visibility into performance and usage. Predictive maintenance and service solutions allow equipment manufacturers and operators of machinery to monitor machine health remotely, predict failures and proactively maintain assets.

Harley Davidson Regroups with Digitized Operations

A Smart Factory is not limited to automation of a single production facility. It incorporates integration across core functions – from production, materials sourcing, supply chain and warehousing to sale of the final product.

Visionary companies like Harley-Davidson Inc. are at the forefront of Industry 4.0 innovation with its use of end-to-end digital engineering. In Harley-Davidson’s new manufacturing facility, every machine is a connected device and every variable is continuously measured and analyzed. Equipment provides performance data that the manufacturing system uses to anticipate maintenance issues before machines break, minimizing workflow interruptions.

eCommerce integration lets customers personalize their bikes by choosing paint colors, frame designs and gas tank sizes. Dealers connect online to the Harley-Davidson manufacturing process and customers place their customized orders immediately at purchase.

Harley-Davidson has experienced incredible improvements since moving to a smart factory. The company reduced its operating costs by $200 million at one plant alone and saw an efficiency in its production line.

The single biggest change is the speed of order fulfillment. Harley-Davidson moved from a fixed 21-day production schedule for new orders down to only six hours.

Make Way for Industry 4.0

The number of companies that have adopted Smart Factory technology is growing but manufacturers are still hesitant. Some claim they have invested too much in existing machinery that will still work for many years. They have also raised fears of security breaches and are pushing for more standardization.

For manufacturers who are dragging their feet, they are only delaying the inevitable. Smart factories are coming and will be prevalent in the future. A Mckinsey Report reveals that companies expect Industry 4.0 to increase revenues by 23% and productivity by 26% and many are preparing for changes to their business model. Those who don’t believe in the force of Smart Factories, will be left behind as new, smarter, more agile competitors enter the marketplace.

Posted by Saj Kumar, Vice President – Digital Transformation & Internet of Things, SAP

As Vice President of Digital Transformation and Internet of Things (IoT), Saj Kumar is responsible for delivering sustained value to SAP’s Customers by bringing together SAP’s IoT technologies, innovations, solutions and services. The APJ IoT office drives key initiatives that deliver SAP’s innovations around Internet of Things to our customers. Saj has been with SAP for over 9 years in several roles and was previously Head of Strategic Customers for SAP Asia Pacific & Japan. Saj Kumar is an Industry veteran, starting his career over 28 years ago working with simulation systems. He has many years of direct experience designing and implementing supply chain solutions in the manufacturing industry and has a keen interest in applying constraint-based planning techniques to solve complex manufacturing problems. He has worked with many High-Tech, CPG and Industrial Machinery companies in Supply Chain, Manufacturing and Procurement projects.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

On International Youth Day the European Youth Forum calls for true youth participation

How bad could British healthcare get for its citizens abroad post-Brexit?

A Sting Exclusive: “Delivering on the Environmental Dimension of the new Sustainable Development Agenda”, Ulf Björnholm underscores from UNEP Brussels

Migration crisis update: The “Habsburg Empire” comes back to life while EU loses control

EU seems to fail its moderate migration promises postponing them for end 2015

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

G20 World Exclusive Interview: “The world, especially emerging economies and developing countries, require a more sustainable and quality development”, the Spokesperson of Japan underscores live from Antalya Turkey

The EU Parliament sidesteps the real issues about banks, while the US target the Eurozone lenders

It’s Trump’s anti-globalization and inward-looking rhetoric that perturbs GOP and US

An FTA between EU-US to hurt South Korea

EU prepares for the worst case scenario as Turkey seems to be withdrawing from the migration deal

A neo-liberal toll free Paradise for the super rich and tax hell for wage earners

New VAT rules in the EU: how a digital sea could have become an ocean

Bank resolutions and recapitalisations by the ESM may end up politically swayed

Can the national and age groups pockets of unemployment cause irreparable damages to Eurozone?

Eurostat: Real unemployment double than the official rate

MWC 2016 LIVE: GTI shifts to phase two – 5G – after hitting milestones

Recession: the best argument for growth

The Eurogroup has set Cyprus on fire

EU, Brazil to hold high level Summit in Brasilia

Migration has set EU’s political clock ticking; the stagnating economy cannot help it and Turkey doesn’t cooperate

The four top Americans who flew to Europe perplexed things about Trump’s intentions

A Sting Exclusive: “Our ambition is by 2020 Indonesia to become an emerging power of World’s Maritime Access”, reveals the Chargé d’Affaires at the Embassy of Indonesia in Brussels, treating WEF, ASEAN and EU-Indonesia relations on the eve of the World Economic Forum East Asia 2015 in Jakarta

Draghi drafts a plan to donate more money to bankers, the era of ‘money for nothin’ is flourishing

Any doubt?

The European Sting at the Retail Forum for Sustainability live from Barcelona

Five years down the drain

Who is to pay the dearest price in a global slowdown?

Memoirs from a unique trip to China: “my new old dragon” (Part II)

Draghi: printing a full extra trillion non negotiable to help all borrow cheaply

Campaign kicks off with High-level Event on #FairInternships

Do academia and banks favour a new Middle Ages period?

Google strongly rejects EU antitrust charges and now gets ready for the worst to come

The Eurogroup+ is born to govern the EU Banking Union

Varna (Bulgaria) awarded European Youth Capital 2017

At the edge of humanity: refugee healthcare in Greece and the EU

IMF v Germany: Eurogroup keeps the fight under control

EU seeks foreign support on 5G from Mobile World Congress 2015 as the “digital gold rush” begins

Eurostat confirms a dangerously fast falling inflation in Eurozone

Is the EU’s enlargement over-stretched?

G20 LIVE: “International communities and leaders have great expectations for 2016 G20 summit in Hangzhou China”, Mr Wang Xiaolong, the Chinese Foreign Ministry’s special envoy stresses live from G20 in Antalya Turkey

Will Turkey abandon the refugee deal and risk losing a bonanza of money?

Snowden is the “EU nomination” for this year’s Oscars

Young students envision turning Europe into an Entrepreneurial Society

Dangerous Trumpism in the Middle East with an anti-European edge

Grexit no longer a threat but how to manage a “tutti frutti” government if not with fear?

The Sting’s Mission

Desires for national independence in Europe bound by economic realities

Germany fears that Americans and Russians want to partition Europe again

UK economy in dire straits: leading banks now officially plan to Brexit too

European Business Summit 15th year: Controversy and Constructive Ideas

Eurozone set to abandon monetary and incomes austerity and adopt growth friendly policies

The 13th round of TTIP negotiations hits a wall of intense protests and growing concerns

China’s stock markets show recovery signs while EU is closely watching in anticipation of the €10bn investment

Who really cares about the 26.2 million of EU jobless?

MWC 2016 LIVE: T-Mobile US reveals 5G trial plans

CDU-SPD agree the terms for EU’s Banking Union

Pharmaceuticals spend millions to push TTIP while consumer groups spend peanuts

Light at the end of the Eurozone tunnel

More Stings?

Trackbacks

  1. […] Day 2016 A Look at American Mfg and Ingenuity for MFG Day MFG Month Activities Engage New Audiences Manufacturers Get Smarter for Industry 4.0 No Court Delay of Overtime Rule, Labor Solicitor Predicts Workers Missed Fewer Days at Work Because […]

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s