Collaborative and eco-efficient manufacturing is an approach to industrial production that prioritises collaboration and sustainability. This paradigm shift is a response to the challenges posed by the traditional manufacturing industry that relied on a hierarchical, closed system of production. It also tended to be inflexible and focused on short-term gains rather than long-term value creation. The traditional approach was characterised by:
- A linear, take-make-waste approach that generated significant environmental impacts, including greenhouse gas emissions, pollution, and resource depletion
- A lack of transparency, with manufacturers operating in isolation from their suppliers and customers.
Collaborative and eco-efficient manufacturing is different from conventional manufacturing in several ways. Collaborative manufacturing is about bringing together different stakeholders in the value chain, such as manufacturers, suppliers, customers, and even competitors, to work together towards common goals, such as reducing costs, improving quality, and minimising waste. This approach involves sharing knowledge, resources, and risks, and it often leads to the creation of new, innovative solutions that benefit all parties involved.
Eco-efficient manufacturing, on the other hand, is about minimising the environmental impact of manufacturing activities by optimising resource use, reducing waste, and minimising energy consumption. This approach recognizes that traditional manufacturing practices are often inefficient, and it seeks to identify opportunities to reduce environmental impacts while also improving economic performance. It is also more sustainable and creates long-term value for all stakeholders.
The need for collaborative and eco-efficient manufacturing arises from the recognition that traditional manufacturing practices are no longer sustainable or efficient. This new approach to manufacturing prioritises collaboration, transparency, flexibility, and sustainability, and it represents a significant departure from the traditional manufacturing model. By embracing this new paradigm, manufacturers can create value for their stakeholders while also contributing to a more sustainable and equitable future.
Among the many innovative solutions that are emerging to address the challenges of conventional manufacturing, cloud manufacturing is increasingly recognized as a game-changing technology that has the potential to transform the way we produce and consume goods. Cloud manufacturing combines the power of cloud computing with advanced manufacturing technologies such as additive manufacturing, robotics, and artificial intelligence to create a more collaborative, efficient, and sustainable manufacturing industry.
By leveraging the power of the cloud, manufacturers can access shared resources and expertise, optimise production processes, and minimise waste and environmental impact. As a result, cloud manufacturing is emerging as one of the most important innovations in the business, with the potential to drive significant economic and environmental benefits in the years to come.
What is Cloud Manufacturing?
Cloud manufacturing is based on the principles of cloud computing, which is a technology that allows users to access computing resources, such as storage, processing power, and software applications, over the internet. Cloud computing is typically provided by third-party service providers, such as Amazon Web Services, Microsoft Azure, or Google Cloud, who own and operate the infrastructure and provide the services to users on a subscription or pay-per-use basis.
In a cloud manufacturing system, manufacturers can access a range of cloud-based services, such as computer-aided design (CAD) software, simulation tools, and manufacturing execution systems (MES), to design, simulate, and execute production processes. This approach allows manufacturers to be more flexible and responsive to changing market demands, as they can quickly and easily adjust their production processes to meet new requirements.
Cloud manufacturing also enables collaboration between manufacturers, suppliers, and customers, as they can share data and resources via the cloud. This collaboration can lead to new business models, such as service-oriented manufacturing, where manufacturers offer customised services based on customer needs, rather than just selling products.
Let’s explore how cloud manufacturing is a paradigm shift towards a collaborative and eco-efficient manufacturing industry (MAAS).
- Streamlining of Production Processes
Cloud manufacturing enables manufacturers to optimise their production processes by leveraging the power of cloud-based technologies such as data analytics, artificial intelligence, and machine learning. This can lead to increased efficiency, reduced waste, and improved quality
- Building Efficient Manufacturing Setup
Cloud manufacturing allows manufacturers to set up an efficient manufacturing system that can scale their production up or down as needed, depending on demand. It can also help them identify and address inefficiencies in the production process quickly, resulting in a significant waste reduction.
For example, in a case study published by a multinational conglomerate, Honeywell, the company describes how its cloud-based SaaS solution (Software as a Service) has helped its customers increase their energy savings by 10–20 per cent by identifying inefficiencies, optimising the production process, and reducing the waste. This self-learning system that incorporates machine learning and automated control helps its consumers fine-tune their HVAC settings several times a day to better meet present needs and conditions.
- Impacting People in the Manufacturing Industry
With cloud manufacturing technology, organisations can reduce manual labour and increase automation. This reduces the risk of accidents and injuries associated with operating heavy machinery and equipment and increases safety. In addition, cloud-based monitoring systems can detect safety issues in real-time, allowing for prompt corrective action.
The multinational aerospace corporation Airbus is a good example that has implemented cloud manufacturing technology to improve safety. Airbus uses a cloud-based system to monitor the performance of its aircraft engines in real time, allowing for early detection of potential safety issues. This has improved safety for passengers and reduced the risk of catastrophic engine failures.
- Impacting Businesses’ Top and Bottom Lines Positively
Cloud manufacturing technology can have a positive impact on businesses’ top and bottom lines by increasing efficiency, reducing costs, enhancing agility, and improving decision-making. For example, General Electric (GE), a multinational conglomerate that operates in several industries, including aviation, power, and healthcare, has implemented cloud manufacturing technology to optimise its production processes and reduce costs. GE Digital, an integral part of GE Vernova’s portfolio of energy businesses, recently announced new enhancements to its cloud-based Manufacturing Execution Systems (MES) software in the Proficy Smart Factory portfolio. This software helps mixed-environment manufacturers of any size to reduce the total cost of ownership (TCO) by up to 30 per cent, decrease maintenance, and improve security.
- Creating Positive Impact on Sustainability
Cloud manufacturing technology can help organisations reduce their carbon footprint and create sustainable manufacturing practices across industries by:
- Reducing energy consumption and waste
- Improving resource utilisation
- Increasing recycling and reuse
- Enhancing supply chain sustainability
- Improving product sustainability
Adidas, a global sportswear manufacturer, is a good example that has implemented a cloud-based manufacturing platform, SPEEDFACTORY that enables it to produce shoes using recycled ocean plastic. The platform uses 4D printing and robotics to manufacture shoes quickly and efficiently. By using recycled ocean plastic to manufacture shoes, Adidas is reducing the amount of plastic waste that ends up in the ocean, while also creating a sustainable manufacturing process.
In addition, the SPEEDFACTORY platform allows Adidas to manufacture shoes closer to the point of sale, which reduces transportation emissions and associated environmental impact.
In a Nutshell
The impact of cloud manufacturing technology on the manufacturing industry is evident, as businesses can achieve significant improvements in efficiency and sustainability, resulting in better bottom lines and a more positive impact on the environment. As per a research report, the global-cloud-manufacturing market is estimated to garner a revenue of US$206 billion by the end of 2031 by growing at a CAGR of 16 per cent over the forecast period, i.e., 2022–2031.
As more and more businesses adopt cloud manufacturing technology, we can expect to see continued innovation and growth in the industry, leading to greater efficiency and sustainability across the manufacturing sector.
About the author
Mohit Gulyani is the Vice President at Moglix, a leading technology company revolutionizing supply chain solutions. With over a decade of experience in e-commerce and B2B procurement, Mohit has played a pivotal role in Moglix’s growth and success. His expertise lies in driving strategic partnerships, managing key accounts, and spearheading business development initiatives. Mohit’s strong leadership skills and deep industry knowledge have enabled him to navigate complex challenges and deliver innovative solutions to clients. He is passionate about leveraging technology to streamline supply chains, enhance operational efficiency, and drive sustainable growth in the manufacturing sector.