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

Advertising

Advertising

Featured Stings

Germany tries to save Europe from war between Ukraine and Russia

After Brexit and Grexit, Brussels to deal with Poloust

UN chief condemns suspected Boko Haram attacks targeting Eid al-Fitr celebrations in Nigeria

Let your fingers do the walking

Work Together to Build a New Type of International Relations and a Community with a Shared Future for Humanity

EU presses India for a free trade agreement

To my Chinese friend

Advocate General ‘outlaws’ Data Retention Directive

MEPs Anti-fraud votes for more votes?

Iran nuclear talks’ deadline extended: the match is still open for many

Fisherwomen of Lake Chad show optimism in face of multiple challenges

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

How the EU sees its own and Russia’s role in Ukraine

EU’s new environmental policy on biofuels impacts both the environment and the European citizen

Changing the EU copyright law won’t bring us much closer to Digital Single Market

EU readies for eventual annulment of the Turkish agreement on immigrants-refugees

From inconvenience to opportunity: the importance of international medical exchanges

Juncker Investment Plan for Europe welcomed by European Youth Forum

Eurozone: A Sluggish economy offers no extra jobs

Global Citizen-Volunteer Internships

The developing countries keep the world going

EU Parliament: A catastrophic crisis management by European leaders

Vulnerable young people must not be blamed & stigmatised for violent radicalisation

Commission presents far-reaching anti-tax evasion measures

Trump goes ahead with plan to undo globalization; targets China and EU

Young people meet in Malta to shape the future of Europe

EU/Africa, Caribbean and Pacific: towards which partnership?

“None of our member states has the dimension to compete with China and the US, not even Germany!”, Head of EUREKA Pedro Nunes on another Sting Exclusive

Why medicine is relevant to the battle against climate change

UN chief welcomes resolution to 27-year-old disagreement over renaming the former Yugoslav Republic of Macedonia

Will GDPR block Blockchain?

Hostilities in Syria’s southwest, mean cuts in vital aid across Jordanian border: Senior UN official

Politics needs to “Youth UP” in order the ensure the future of our democracies

‘Free state aid’ for imprudent banks

EU prolongs economic sanctions on Russia by six months

Unemployment and exclusion brings EU cities to boiling point

EU Commission: Germany can make Eurozone grow again just by helping itself

Greece did it again

European Investment Bank to borrow €70 billion in 2013

EU summit: Are the London Tories planning an exit from the EU?

Have central banks missed the exit train?

Syria: Civilians caught in crossfire, UN refugee chief urges Jordan to open its border

Is Eurozone heading for disinflation?

EU elections: The louder the threats and the doomsaying the heavier the weight of the vote

Nicaragua: MEPs condemn brutal repression and demand elections

Latest leaked TTIP document confirms EU sovereignty may be under threat

Eurozone stuck in a high risk deflation area; Draghi expects further price plunge

Τhe EU Refugee Crisis: a day in the life of a Refugee in Greece

ECB reaches the boundaries of its mandate to revive the entirety of Eurozone

Easing funding woes for UN agency assisting Palestine refugees a ‘wise investment for today and the future’

European financial values on the rise

The European Sting @ European Business Summit 2014 – the preview

How young entrepreneurs should be supported: what assistance should governments provide?

‘Agile’, multilateral response vital to combat terrorism – UN chief Guterres

Global Citizen-Volunteer Internships

Migration crisis will keep deteriorating as common EU political will is simply not there

JADE visits Lithuanian Junior Initiatives

Eurozone to enter the winter…

EU Court of Justice invalidates Safe Harbour and the game for thousands US businesses suddenly changes

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 )

Google+ photo

You are commenting using your Google+ 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 )

w

Connecting to %s