Manufacturers are Facing Investment Challenges with Smart Factory Application
Published on : Thursday 23-07-2020
In manufacturing, smart funds for transformation will come from specialist financiers, in which the funder comprehends the technologies, the software, markets, and pressures. Utilizing this knowledge, funding structures are created and aligned which identified business outcomes for the manufacturer, through access to solutions, the technologies, and advisory and are focused on achieving recognizable.
At present, only 10% of the global manufacturers are classified as "digital winners", with almost two-thirds in the early stages of their digital travel. Several types of research have highlighted digitalization's Advantages:
• Increased revenues Total productivity benefit from decreased costs &: 6% of revenues
• Predictive Maintenance: Maintenance cost decreased by 12 percent
• Energy optimization: The from consumption and manufacturing energy generation is 25 percent
• Process optimization and production productivity: 5% cost reduction in production volume
• Product quality improvements: 50% fewer products and 10-20% reduction in quality failure costs
• Reduction of 20-30 percent in inventory holding costs
A new research paper entitled "Industry 4.0: Rising to the Challenge" has been published by Siemens Financial Services (SFS). It is the first of a series about the investment challenges faced by producers changing their businesses to market 4.0 technologies. It is crucial to understand how machines' operations are determined by making your mill smarter, with technological progress and strides propelling the manufacturing industry to innovations. Besides the progress in automation and artificial intelligence, the growth of digital technologies is enabling a new wave of innovation. The "Smart factories" will influence industrial gear that interacts with consumers and with other machines, mechanics, automated procedures, to facilitate real-time communication between the mill and the market to support dynamic adaptation and optimize efficiency. With factories, there is a range of advantages such as safety, product quality, increased process efficiency, and decreased costs. But enormous challenges are faced by companies in implementing factories, provided the transfer requires the systemic transformation.
As per the research, the firms who continue to invest during uncertain economic times thrive in the longer term and find a measurable competitive edge. In addition, the global investment challenge for clever mill transformation is estimated to be only short of $400 billion over the next five decades. The digital transformation to Business 4.0 platforms supplies producers with a chance to gain a long-term competitive edge but requires a considerable investment. To provide sustainable ways of paying for transformation funding models are emerging from financiers. These are often aligned to integrate financing together with the rate of return-on-investment delivered through digitalized technologies' advantages.