Manufacturers’ first step towards Industry 4.0 success
Could fear of failure be preventing Industry 4.0 technology from reaching the factory floor? James Wood, Director of Business Development, EMEA & APAC at Aptean, outlines why manufacturers have to view digital transformation as a journey, rather than a destination.
Have you ever joined a gym, certain that this time round you’ll definitely get fit? Chances are you or someone you know has done this. You’ll also know just how quickly the self-doubt kicks in. Why is everyone else so far ahead of you? Is your workout routine the right one? Should you change your diet to support your gym efforts?
You thought going to the gym would be easy, but you soon realise you’re not prepared to make all the changes needed. Sound familiar? While this article isn’t about fitness, I see plenty of parallels between the way manufacturers approach the discussion around Industry 4.0 and the average person’s struggle to stay fit and healthy.
Digital transformation doesn’t have to be daunting
I’m sure you’ve seen the headlines. Articles like ‘here’s everything you need to know about Industry 4.0’ and ‘how to transform your business with new Industry 4.0 technology’ are everywhere. While many of them have fascinating insights to share, I get the feeling that they’re more than a little intimidating to the average reader.
Sure, it’s exciting to find out about the possibilities of automation, AI and data; however, you can’t become excited about an end goal when you’re not sure how or if you can reach it. Rome wasn’t built in a day. In the same way getting that six pack overnight is impossible, so too is transforming your business.
Why Industry 4.0 is a journey, not a destination
‘Making the most of Industry 4.0’ is realising that creating a smarter manufacturing business is a journey, not a destination. Let’s be honest; you’ll never reach a moment in time where you believe your business no longer needs to change, upgrade and adapt.
When the first industrial revolution took place, no one thought the processes coming in would last forever – and it’s the same with the fourth iteration. Even if you reach your end goal, by the time it happens, you’ll have set new targets based on even newer technology.
I’m not saying that there’s no point in trying because the goalposts will shift. If anything, it’s more reason to take your first step, then the next and the one after that. Each foot forward will improve your manufacturing processes as you stride towards a more efficient, Industry 4.0 ready factory floor.
Manufacturing needs to be more open to new technology
The sooner manufacturers adopt a ‘journey over destination’ mindset the better. As an industry, manufacturing is already behind the curve when it comes to digital transformation and Industry 4.0 - especially in the Food & Beverage space. It can’t afford to fall behind any further.
There’s so much to be gained by engaging with the technologies enabling Industry 4.0. As well as driving efficiency on the factory floor, manufacturers can use integrated and automated data processes to dramatically improve regulatory compliance. For Food & Beverage businesses, this is a huge opportunity to increase customer trust.
That’s why viewing Industry 4.0 as a journey is vital for manufacturers. You have to focus on each step – applying new technology to your business in a structured way that would make sense even if you never reached your end goal.
You also have to avoid overwhelming those on the factory floor. The idea is to blend people and systems – creating a smarter workforce that achieves more. One of the challenges involved in this is making sure teams have the skills needed to work alongside the machines. Training is often overlooked, making the Industry 4.0 journey more difficult than it needs to be.
Just imagine the scenario: you introduce new systems, but fail to make sure your workforce has the skills to make the most of them. Nothing works as efficiently as it should and, eventually, everyone goes back to the manual processes they were used to with a negative perception of Industry 4.0 technology. If anything, this is a step backwards, but one you can avoid by ‘upgrading’ your workers alongside your systems.
The first step all manufacturers need to take towards Industry 4.0
Every journey begins with a first step, but what does that mean for manufacturers? To my mind, your first step is to implement a Manufacturing Execution System (MES) that meets the needs of your factory floor.
An MES provides you with all the data you need to continue your journey towards Industry 4.0. It does this in real-time, giving you complete visibility of your business and its processes – as well as the insight you need to identify areas for improvement. With this in place, it almost doesn’t matter what you think your next step is – the data will tell you. You’ll have a clear path ahead of you; one that sees you constantly improving processes as you work towards your end goal.
Implementing an MES can also kick start your business’ digital transformation, which – coupled with the right implementation approach – will start to win over your teams on the factory floor. Engaging the operators, giving them a voice, and empowering them with information that makes action unavoidable clearly demonstrates that people and technology are a winning combination that can dramatically improve performance.
What you need is a simple and structured program that will start you on your journey, and make the implementation of further useful technology (such as wearable tech, smart energy monitoring or the use of drones to perform inventory turns) much easier. By integrating new systems with your MES, you can ensure the improvements keep coming. This is the basis of a smart factory run by a smart workforce.
The first step is the hardest – the rest is simple
While Industry 4.0 might seem unsettling to manufacturers, it doesn’t have to be. Even if your factory floor is behind the times in terms of technology, there’s nothing to stop you catching up – and quickly – if you approach the challenge with the right mindset.
By viewing Industry 4.0 as a journey, rather than a destination to be reached and settled in, you will discover a variety of ways to improve your business. You’ll also free yourself up to focus on driving performance on your factory floor without the fear of failing to meet unrealistic expectations.
Now’s the time to start out on the path towards Industry 4.0 success. There might be plenty of work to do before you reach your end goal, but you’ll never get there if you put off making the required changes. Just as you can’t achieve fitness without going to the gym, you can’t take the last step towards creating a smarter factory if you don’t take the first. Ready to shape up?
James Wood is a Director of Business Development, EMEA & APAC at Aptean.
IMF: Variants Can Still Hurt Manufacturing Recovery
After a year of on-and-off manufacturing in the US, UK, and the eurozone, demand for goods surged early last week. Factories set growth records in April and May, suppliers started to recover, and US crude hit its highest price point since pre-COVID. As vaccination efforts immunise much of the US and UK populations, manufacturers are now able to fully ramp up their supply chains. In fact, GDP growth could approach double-digits by 2022.
Now, the ISM productivity measure has surpassed the 50-point mark that separates industry expansion from contraction. Since U.S. president Biden passed his US$1.9tn stimulus package and the UK purchasing managers index (PMI) increased to 65.6, both sides of the Atlantic are facing a much-welcomed manufacturing recovery.
Lingering Concerns Over COVID
Even as Spain, France, Italy, and Germany race to catch up, and mining companies pushed the FTSE 100 index of list shares to a monthly high of 7,129, some say that UK and US markets still suffer from a lack of confidence in raw material supplies. Yes, the Dow Jones has made up its 19,173-point crash of March 2020, and MSCI’s global stock index is at an all-time high.
Yet manufacturers around the world realise that these wins will be short-lived until pandemic supply chain bottlenecks are solved. If we keep the status quo, consumers will pay the price. In April, inflation in Germany reached 2.4%, and across the EU’s 19 member countries, overall prices have increased at an unusual pace. Some ask: Is this true recovery?
IMF: Current Boom Could Falter
Even as Elon Musk tweeted about chip shortages forcing Tesla to raise its prices, UK mining demand skyrocketed; housing markets lifted; and the pound sterling gained value. The International Monetary Fund (IMF), however, cautioned that manufacturing recovery won’t last long if COVID mutates into forms our vaccinations can’t touch. Kristalina Georgieva, Washington’s IMF director, noted that fewer than 1% of African citizens have been vaccinated: “Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery”.
Across the globe, manufacturing companies are keeping a watchful eye on new developments in the spread of COVID. Though US FDA officials don’t think we’ll have to “start at square one” with new vaccines, the March 2021 World Economic Outlook states that “high uncertainty” surrounds the projected 6% global growth. Continued manufacturing success will in large part depend on “the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions”.
Mathias Cormann, secretary-general of the Organisation for Economic Co-Operation and Development (OECD) concurred—without global immunisation, the estimated economic boom expected by 2025 could go kaput. “We need to...pursue an all-out effort to reach the entire world population”, Australia’s finance minister added. US$50bn to end COVID across the world, they imply, is a small investment to restart our economies.