The survey by Deloitte in 2019 had reported that 86 percent of respondents believed that smart factory initiatives will be the key driver to manufacturing competitiveness in the next five years, as manufacturing businesses start recovering from the devastating COVID-19 pandemic. Experts have revealed that about 40% of the manufacturing jobs can be automated. It is also expected that automation, which was urgent till yesterday is now very urgent, would grow exponentially in the post COVID-19 era due to the social distancing trends and decreasing price of automation systems. The visionary industry leaders are taking advantage of the current pandemic pressures only to accelerate the journey to smart factories for sustainability.
What is the journey to smart factories going to look like? Is the human intervention going to vanish? Is autonomous operation going to replace automation? These are a few questions to ponder upon.
There is a thin line between the understanding of automated and autonomous manufacturing operations. Automated manufacturing systems operate under predefined parameters for carrying out restrictive tasks with human interventions, only before and after the task. However, autonomous manufacturing systems collect real time data, filter and synthesize the data, analyze the output, learn quickly and adapt smartly to the dynamic operating environment to deliver. They also evolve as the environment around it changes. Here the determinants of Industry-4.0 adjust the operating variables, based on in-built algorithms, to optimize operation and even enable customization.
The transitioning from automation to autonomous systems is a logical continuum journey. Automated manufacturing systems, using technology become smarter with time and are currently graduating into the industrial autonomous world with healthy speed.  Â
High-volume, repetitive, ergonomically difficult, non-value adding and routine, uninteresting and hazardous work in manufacturing industries have generally attracted automation with limited human intervention in the past decades. This has provided improved manpower productivity, reliable processes, more consistent output quality, safer human working-environment, reduced throughput time, improved utilization of costly capital assets, and finally provided an edge on unit product cost reduction. The burgeoning informal labour in Indian industries in the last two decades has also triggered the need for a great degree of automation in the country. The rising labour cost and the Industrial relationship issues have hastened this process. However, dynamic real time data capturing and using human-like intelligence in machines for decision making has now entered the manufacturing arena.Â
The one most prominent, undeniable and far reaching impact of the COVID-19 pandemic has been the quick embracing and accepting of the digital transformation across the industry. It has forced the industry leaders to revisit the manufacturing ecosystem completely. Manufacturing operations have picked up after the creaking halt in 2020 but there is still high caution and care. Human safety continues to be the key focus, keeping business effectiveness and efficiency in the radar. Social distancing, remote working, minimal manual handling (fewer touches) and fear of physical human interventions are compelling the industry to move towards automation with the final destination of industrial autonomous processing in the futuristic smart factories. The manufacturing industry leaders seem to be accelerating the pace of investment in autonomous or self-reliant manufacturing factories.     Â
The new goal is to utilize the workers for more value-added contribution in the value chain. This means moving towards unmanned remote manufacturing processes. Technology is facilitating and accelerating this big transition from labor-intensive to automation to autonomous manufacturing operation. Industry 4.0 is driving the improvement in the capabilities of machines, digitalization of manufacturing operations and value flow processes in terms of collecting and funneling useful data, connecting machines, using algorithms, taking intelligent decisions and finally providing smart deliveries to customers. The less value-added human interventions are shrinking in the current environment by the unprecedented industrial autonomy wave likely to be experienced.     Â
The success of the autonomous manufacturing factories will rest on four key enabling pillars – People processes, Strategies, Economics and Technology.
People processes
Technology driven talent, risk-loving & decisive leadership, breakthrough improvement culture, sound people-engaging processes and a fast learning-embracing ecosystem are the key drivers to provide strength to this pillar. Dominance by the specialists to develop new products and services is likely to be witnessed more. Â
Strategies
Understanding futuristic customer expectations, Industry4.0 implementation strategy, Design thinking and technology application to stay ahead in competition driven strategies are likely to ensure sustainability of business.  Â
Economics
Being market leaders in the product, consistently gaining market share, strong R&D for speedy new product development, modular (phase-wise) investment strategy and robust risk analysis are the key drivers to provide strength to the economics of the business.
Technology
Digitalized processes, skilled and competent process engineers, data handling setup, strong AI and clouding computing foundation are the few Industry-4.0 key drivers to provide the strength to this Technology pillar.
Nestlé, the food processing giant in Germany is fast galloping from conventional automation to technology driven autonomous operation by creating competitive gap advantage through data capturing, AI and predictive analytics. It is creating high agility, generating near-perfect efficiencies, delivering six-sigma quality, moving towards negligible wastes and providing new platforms for growth.
Research from academia indicate the huge work going towards this direction of smart factories. Warehouses are become smarter and so also the food processing plants. The industry observers acknowledge the swift transitioning towards smart factories is taking place but also indicate that there are miles to travel before the factories truly become smart and start operating mostly under autonomous systems.
Dr Ravindra Ojha is a Professor – Operations at Great Lakes Institute of Management, Gurgaon.