Innovation in products and processes is constantly transforming the manufacturing sector driven by the convergence of advanced technologies such as the IoT, AI/ML and advanced networking. This has enabled the rise of what has come to be known as Industry 4.0, striving towards greater productivity, quality, and efficiency across the industry. With the global adoption of smart factories, manufacturers are increasingly adopting these technologies to stay competitive in a rapidly evolving market. This article explores how these innovations are impacting the evolution in manufacturing, the strategic challenges and opportunities they present, and the future trends in connected manufacturing.
Integrated digital transformation: The backbone of connected manufacturing
The manufacturing environments have been exploring the adoption and convergence of IoT, AI, and networking technologies to build more connected and integrated environments. Automation led by digital transformation have been the building blocks of this shift towards embracing industry 4.0, which is increasingly gaining higher acceptance in the global markets.
Industry 4.0 encompasses various technologies, including IoT, AI, robotics, system integration, additive printing, augmented reality, big data, cloud computing, cybersecurity, and simulation. The integration of these technologies and the move towards a connected factory is slated to foster manufacturing optimization gains. Right from improved productivity, quality, and efficiency, to reduced lead times and enhanced flexibility, technology convergence is revolutionizing the factory floor. Some of the key use cases include:
- Error reduction, reduced downtime and predictive maintenance with IoT, leading to resource optimization and improved quality
- Increase in labor productivity with the adoption of AI and robotics, especially for countries with high labor cost, including Japan, Korea, Middle East (Signaling higher adoption)
In addition, certain sectors like automotive, electronics, and oil & gas are expected to take a lead in embracing Industry 4.0 compared to others like textiles.
Furthermore, the adoption of future tech and advanced wireless networking is bound to transform connected manufacturing. For instance, Wi-Fi 6 and Wi-Fi 7 will play a pivotal role in enhancing manufacturing efficiency and agility. Put simply, with an increase in the adoption of IoT and subsequent generation of vast amounts of data, companies are likely to find themselves conflicted with the accuracy and reliability of their decision making. Hence the need for high-speed, reliable networks will continue to become more critical. Adoption of advanced wireless technology will thus facilitate efficient big data analytics, network readiness and cybersecurity, ensuring quick and accurate decision-making.
Overcoming barriers to connected manufacturing
While connected manufacturing has immense potential, a scale up focus, especially, across diverse operational environments presents several strategic challenges. These include the lack of skilled workforce, financial constraints, stringent environmental policies, and ineffective change management. Additionally, the fear of rising unemployment with the belief that automation might displace jobs that do not require specialized skills, further creates a culture of resistance. To create a positive spin, manufacturing businesses need to focus on extensive reskilling and upskilling to create a workforce which has the necessary skills to capitalize on the emerging technologies, while addressing the fear of unemployment.
At the same time, cost pressures and concerns regarding return on investment, act as additional deterrents to connected manufacturing. However, adopting phased deployments of digitization strategies can help address this concern. Prioritizing cost-effective components such as IoT, system integration, and simulation can help companies enhance efficiency without significant upfront investment. Invariably, smaller wins can lead to the creation of a business case for greater investment with a proof for higher ROI.
The new order of connected manufacturing: Looking ahead
As we move into a future with rapidly evolving geopolitical landscape and climate change, organizations must maintain competitiveness and efficiency amidst rising costs. Embracing digitization, sustainability, and energy transition will be the building blocks for organizations to stay ahead in the new world order.
“As a leader in the space, Eaton has been one of the early beneficiaries of Industry 4.0 and is ahead in its adoption curve. With a large manufacturing base, spread across geographies, Eaton has been on the forefront of adopting and sharing best practices. In addition, the company’s Digital Accelerator Program is being implemented at factory floors across continents, based on the need and maturity. Furthermore, its commitment has been accompanied by sizable investments in Robotics, IoT, AI, Simulation, Additive printing, augmented reality, digital work instructions, OEE, Statistical Process Control (SPC), Cybersecurity and Big Data in preparation for Industry 4.0.”- Shailendra Shukla, MD, Eaton
Smart manufacturing, facilitated by IoT, AI, simulation, robotics, system integration, and cybersecurity, will continue to remain at the forefront of connected factories. Sectors requiring high customization will increasingly leverage additive printing. The automotive, aerospace, oil & gas, and electronics industries are already advancing their pace of digitization to achieve their organizational goals.
To stay ahead, companies must focus on overall equipment efficiency (OEE), cost efficiency, productivity, flexibility, and quality while maintaining sustainability. This will invariably accelerate the adoption of Industry 4.0 and the necessary automation to achieve high efficiency and performance optimization.
As the manufacturing industry continues to evolve, the integration of IoT, AI, and other advanced technologies will be crucial in driving the next era of innovation and efficiency. Industry 4.0 is not just a technological upgrade but a comprehensive transformation that will help manufacturing companies tide through the wave of rising costs, geopolitical uncertainty, and climate crisis. By focusing on smart manufacturing and leveraging cutting-edge technologies, the manufacturing companies can accelerate their way to gain a competitive edge in the global market.
