Data – The Raw Material for Industry 4.0
Published on : Saturday 04-09-2021
Data is the new oil, but what matters is how companies use this data to improve operations and reduce wastage.
Industry 4.0 is here, and it’s revolutionising how manufacturing companies build.
Companies have moved to a digitised method of building products. It’s been a long haul from using manual processes to PLC-driven machinery to advanced digital technologies enabling connected machines, automated lines, and automated processes.
In many ways, Independent Software Vendors (ISVs) are enabling Industry 4.0 by building products to automate processes, improve efficiency in operations, and increase RoI for companies.
In Industry 4.0, interaction is not restricted to humans-to-humans or humans–to-machines. Interactions can happen at a machine-to-machine level, i.e., manufacturing machines send data to other devices, and technologies like AI help complete the tasks. Devices and machines are connected through smart technologies like the Industrial Internet of Things (IIoT) that continuously exchange data.
That’s why data could rightly be called the raw material for industries. Data may not be a tangible thing such as steel, plastic, or other materials, but it is crucial for companies to build products and meet customer demands in the age of smart manufacturing.
Let’s look at how this raw material can help companies to grow and thrive in Industry 4.0.
Role of Data in Industry 4.0
1. Prevent downtime
A company can lose millions of dollars and lose 5% to 20%1 of its productivity due to downtime. No wonder downtime is a nightmare for every company. Downtime can happen for several reasons – wear and tear, external conditions, and unpredictable changes. Data can help companies prevent such downtimes and ensure business continuity. Take Bosch2, for instance. They have connected over 250 plants worldwide using RFID, wireless connections, sensors, tablets, and smartphones. The sensors in the connected devices exchange data related to processing times, machine wear and tear, etc. This helps them to predict issues and take pre-emptive measures to ensure continuous operations. ISVs can support companies with predictive maintenance solutions that analyse the data available on different assets, identify issues, and resolve them before it leads to unplanned downtime.
2. Respond to market demands
Whether it’s Starbucks or Netflix, every company is trying to retain its customers through hyper-personalisation. This is driving exciting changes in manufacturing too.
Typically, a company would manufacture a one-size-fits-all product. For example, imagine buying a shoe. Shoes would normally be available in limited colours and sizes. There was little scope for customising a pair of shoes. However, Adidas3 introduced extreme customisation in shoes. They started a pilot factory in Germany called Speed Factory. In this factory, the company used simulation software to create a digital twin of the shoe. They analysed the data and tested the shoe before taking it for production. This approach helps the customer have a greater say in the production process and receive exactly what they desire. Customer demands keep evolving. What worked yesterday will become obsolete today. ISVs can develop manufacturing companies to create customised products in response to the evolving customer needs and general market trends with intelligent products that enable flexible manufacturing.
3. Improve production efficiency
Let’s go back to the Adidas example. They used digital twin technology to shorten the time taken between designing and commercialising the shoe by 30%. They were able to respond to the market demands quickly, and also produce 300 million more shoes! Similarly, Bosch studied the testing data of their 30,000 hydraulic valves and realised that out of the 90 separate testing steps they performed, 21 could be eliminated. This helped them to reduce their inspection time by 17.4%. As these examples demonstrate, data can improve efficiency at every stage of production – from ideation to prototyping, testing, and production. ISVs are increasing their focus on building innovative and quality products to enable just that. What matters is how they leverage the data optimally.
4. Improve supply chain
The supply chain is the fuel of a successful manufacturing company. To stay on track, companies need real-time information on their inventory so they can meet the customer’s demands on time. Technologies such as big data, cloud, IIoT, augmented reality (AR) help companies gather data about the supply chain from different systems and locations. Take BJC Healthcare4, for instance. They have 15 hospitals in Missouri and Illinois. They shifted from manually managing the inventory to using RFID to gather real-time data about the medical supplies and manage the supplies efficiently. The real-time data also enabled the hospital to stop losses due to storing expired drugs. Such examples translate extremely well to the manufacturing paradigm too. As companies go global, ISVs can help companies further optimise the supply chain management process and meet customer demands on time by using real-time data.
5. Reduce costs
Earlier, cost savings meant offshoring the manufacturing process to other countries. However, as we saw in the case of BJC healthcare, costs can also be reduced if the supply chain is managed efficiently or when unplanned downtime is prevented through preventive maintenance. With the help of data, ISVs can design predictive maintenance strategies and also help them save as much as $5 million on storing rarely used stock of material.
Conclusion
Companies will generate more data as they move towards using connected devices and machines. Data is the new oil, and it will remain a mainstay in the future. What matters is how companies use this data to improve operations and reduce wastage and how ISVs build products based on these insights.
References
https://www.bevywise.com/blog/impact-of-downtime-in-manufacturing
https://blog.bosch-si.com/industry40/data-key-raw-material-for-industry-40/
https://www.linkedin.com/pulse/industry-40-when-data-new-raw-material-alisa-coffey/
https://amfg.ai/2019/03/28/industry-4-0-7-real-world-examples-of-digital-manufacturing-in-action/
Article Courtesy: NASSCOM Community – an open knowledge sharing platform for the Indian technology industry:
https://community.nasscom.in/communities/data-science-ai-community/data-raw-material-industry-40