May 16, 2020

McKinsey: five principles for scaling digital manufacturing

Technology
Smart Manufacturing
Digital Transformation
Georgia Wilson
3 min
Amidst the outbreak of COVID-19, McKinsey reports that achieving digital at scale can make European manufacturers resilient and flexible for recovery at...

Amidst the outbreak of COVID-19, McKinsey reports that achieving digital at scale can make European manufacturers resilient and flexible for recovery at speed.

The Coronavirus (COVID-19), a pandemic that is changing the ways in which organisations operate all over the world, like never before. During this pandemic Enno de Boer, Søren Fritzen and Rehana Khanam (partners at McKinsey) have witnessed organisations and leaders striving to not only ensure the health and safety of their people, but to react to shifting supply chains impacting sourcing and distribution logistics. As a result supplier resilience is being brought into focus with labour shortages bringing production lines to a halt. 

However the partners at McKinsey, stress that when the pandemic resolves, production facilities will need to move quickly to respond to new sources of supply, as well as shifting customer demand. As a result digital capabilities are going to be critical to providing flexibility and resilience for manufacturers to operate in unfamiliar environments.

“Yet most companies that have attempted enterprise-wide “digital transformation” have failed to capture the full business opportunities available from new technologies,” says McKinsey. 

In its recent research, the company has uncovered new insights into the challenges and success factors for implementing digital manufacturing at scale, highlighting that only 17 out of the 44 members of the Global Lighthouse Network are in Europe, with only three using fourth industrial revolution (Industry 4.0) tools across end-to-end value chains. 

“This lagging behind could be a result of many European manufacturers operating on brownfield sites,” says McKinsey. As a result the task of enhancing legacy processes, systems, and machinery with Industry 4.0 tools can seem more daunting than building a digital production facility from the ground up.

However, McKinsey stresses that it is time for organisations to adopt these digital technologies revealing five fundamental principles for scaling and sustaining digital technologies, regardless of how digital they are. 

Unlocking value with industry 4.0

Currently, McKinsey has identified a select group of industry leading manufacturers using digital transformation to develop new ways of conducting business operations by using: sensors, Internet of Things, cloud technology, blockchain, Big data, advanced analytics, artificial intelligence, virtual reality, augmented reality additive manufacturing, renewable energy, robotics automation and robotic process automation (RPA).

The reported benefits:

  • Between 30% and 50% reduction in machine downtime

  • Between 15% and 30% improvements in productivity

  • Between 10% and 30% increase in throughput

  • Between 10% and 20% decrease in quality cost

The result of these benefits impact the entire value chain which McKinsey says could be even more important, by increasing flexibility to meet customer demand, providing a faster speed to market and better integrated within the supply chain.

The challenges

Although McKinsey reports that manufacturers are transitioning to digital manufacturing, it is not being deployed at the same rate, with most finding themselves stuck in a ‘pilot purgatory’ and no clear approach for quick scale.

Latest research conducted by the organisation confirmed that at least 70% of manufacturers are in ‘pilot purgatory’, with culture being considered among the most significant challenges. 

Other challenges include the absence of:

  • Strategic direction - where and how digital manufacturing will bring real business value, and the incentives for people to make it happen

  • technical, managerial, and transformational capability to truly understand and execute the changes

  • Robust data and IT infrastructure

The five principles for scaling digital manufacturing 

Finally in McKinsey’s latest research the organisation outlined five key principles for an organisation to base its scaling approach on:

To read the full report by McKinsey, click here!

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For more information on manufacturing topics - please take a look at the latest edition of Manufacturing Global.

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Jun 17, 2021

Siemens: Providing the First Industrial 5G Router

Siemens
5G
IIoT
Data
3 min
Siemens’ first industrial 5G router, the Scalancer MUM856-1, is now available and will revolutionise the concept of remote control in industry

Across a number of industry sectors, there’s a growing need for both local wireless connectivity and remote access to machines and plants. In both of these cases, communication is, more often than not, over a long distance. Public wireless data networks can be used to enable this connectivity, both nationally and internationally, which makes the new 5G network mainframe an absolutely vital element of remote access and remote servicing solutions as we move into the interconnected age. 

 

Siemens Enables 5G IIoT

The eagerly awaited Scalance MUM856-1, Siemens’ very first industrial 5G router, is officially available to organisations. The device has the ability to connect all local industrial applications to the public 5G, 4G (LTE), and 3G (UMTS) mobile wireless networks ─ allowing companies to embrace the long-awaited Industrial Internet of Things (IIoT). 

Siemens presents its first industrial 5G router.
Siemens presents the Scalance MUM856-1.

The router can be used to remotely monitor and service plants, machines, as well as control elements and other industrial devices via a public 5G network ─ flexibly and with high data rates. Something that has been in incredibly high demand after being teased by the leading network providers for years.

 

Scalance MUM856-1 at a Glance

 

  • Scalance MUM856-1 connects local industrial applications to public 5G, 4G, and 3G mobile wireless networks
  • The router supports future-oriented applications such as remote access via public 5G networks or the connection of mobile devices such as automated guided vehicles in industry
  • A robust version in IP65 housing for use outside the control cabinet
  • Prototypes of Siemens 5G infrastructure for private networks already in use at several sites

 

5G Now

“To ensure the powerful connection of Ethernet-based subnetworks and automation devices, the Scalance MUM856-1 supports Release 15 of the 5G standard. The device offers high bandwidths of up to 1000 Mbps for the downlink and up to 500 Mbps for the uplink – providing high data rates for data-intensive applications such as the remote implementation of firmware updates. Thanks to IPv6 support, the devices can also be implemented in modern communication networks.

 

Various security functions are included to monitor data traffic and protect against unauthorised access: for example, an integrated firewall and authentication of communication devices and encryption of data transmission via VPN. If there is no available 5G network, the device switches automatically to 4G or 3G networks. The first release version of the router has an EU radio license; other versions with different licenses are in preparation. With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and autoconfiguration of the devices,” Siemens said. 

 

Preparing for a 5G-oriented Future

Siemens has announced that the new router can also be integrated into private 5G networks. This means that the Scalance MUM856-1 is, essentially, future-proofed when it comes to 5G adaptability; it supports future-oriented applications, including ‘mobile robots in manufacturing, autonomous vehicles in logistics or augmented reality applications for service technicians.’ 

 

And, for use on sites where conditions are a little harsher, Siemens has given the router robust IP65 housing ─ it’s “dust tight”, waterproof, and immersion-proofed.

 

The first release version of the router has an EU radio license; other versions with different licenses are in preparation. “With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and auto-configuration of the devices,” Siemens added.

 

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