Optimising operations has always been key to manufacturing. As an advanced system of processes and ideas, Manufacturing 4.0 has the unique ability to deliver some highly prized outcomes all closely related to this central objective including grater agility, automation and intelligence in operations.
This is because Manufacturing 4.0 has the power to integrate large-scale, machine-to-machine communication (M2M) and IoT for improved communication and aid in the production of smart machines that can analyse and diagnose issues with minimal human intervention.
In the current post-pandemic environment where manufacturers are being driven to rethink competitive advantage Manufacturing 4.0 looks even more promising.
In this context, the findings from a recent McKinsey survey of global manufacturing companies are relevant. The survey found that up to 94 per cent of respondents from more than 400 companies worldwide found Industry 4.0 helpful in ‘keeping their operations running’ through the crisis.
Additionally, another 56 per cent said these technologies had been ‘critical’ to their crisis response.
If manufacturing 4.0 as a system is ripe for widescale adoption, data is its unrivalled centre. There is no doubt the structured collection, analysis and utilisation of data are all key to boosting Manufacturing 4.0.
Let us take a closer look to see why this is so.
Performance monitoring
Ongoing, real-time monitoring of assets and operations is of great value to smart manufacturing. Knowing what precise condition a manufacturing company’s assets are in or what challenges its supply chain may be facing is pivotal to efficient, responsive, and iterative manufacturing. Studies indicate that about 81 per cent of manufacturing facilities depend on detailed data analytics to improve productivity.
When real-time data is used in customisable formats it helps manufacturing companies deal effectively with common challenges around planning for downtime, assessing equipment efficiency and surveying logistics management. Real-time monitoring built on this kind of data provides companies with accurate business insights and actionable intelligence for manufacturing operations.
Anomaly prediction and detection
Another way data expands the advantages of Manufacturing 4.0 is by helping predict potential opportunities, crises, and malfunctions. Also known as outlier analysis, anomaly prediction helps identify datasets or observations that deviate from a perceived norm. According to a recent report, the Anomaly Detection Market is expected to register a CAGR of 15 per cent and surpass USD 5 billion by the end of 2021 – 2027.
In the manufacturing space operators have a constant need to know if their equipment is working the way it should. Real time anomaly detection enabled by IoT sensors can for example be used to identify abnormalities in equipment vibration patterns to help detect microscopic faults or cracks in material otherwise hard to notice during visual inspections. Further, the data thus collected can also serve as a foundation for the manufacturing company to add predictive maintenance algorithms to their system so that future wear and tear issues can be foreseen and addressed.
Decision support
A third way data plays a key role in supporting and extending Manufacturing 4.0 is by helping organisations make better business decisions. Although business knowledge is of incomparable value, when combined with the power of data, it helps manufacturing companies make better, more strategic decisions. Consider for example the inherent variability of inputs across the 4M dimensions that have an impact on Quality, Cost and Delivery. The possibility of making real-time insights available to the operator to tweak process parameters basis variability can go a long way in minimizing a negative impact on quality cost and delivery while optimizing efficiency.
Harnessing data improves efficiency and accurately tackles the issues identified in a company’s problem statement. It is estimated that while 91 per cent of companies say data-driven decision-making is important to the growth of their business, only 57 per cent of companies base their business decisions on their data. This figure needs to grow, including in the manufacturing space.
As a system and approach, Manufacturing 4.0 is relatively new in the country. Although many leading manufacturers have primed themselves for its adoption, it is clear that effective implementation will need a collaborative approach along with intuitive execution. In this context, effective utilisation of data will be key to help companies scale up their business and embrace the era of Manufacturing 4.0. What will also be equally important is a focus on building a unified skillset where Consulting, IT and OT functions are brought together in one team.
Dev Ramchandani is the Senior Director, Smart Manufacturing at Hitachi Vantara.