Manufacturing in the time of the Fourth Industrial Revolution

Over the course of its long history, manufacturing has periodically been transformed by landmark changes that completely alter the way we as humans live and work. A sequence of developments that range from the revolutionary impact of steam power to the invention of the world wide web have made what previously seemed impossible a dazzling reality – completely altering the fabric of our society in the process.

The Fourth Industrial Revolution – otherwise known as Industry 4.0 – is the label we’ve chosen to give to the latest of these paradigm shifts, and it can be defined as the blending of technologies that are now causing our physical, biological and digital worlds to blur. This unmistakeable socioeconomic shift has arisen as a result of significant advances to a host of manufacturing technologies and processes, with examples including cyber-physical systems, cloud computing, artificial intelligence, blockchain and 3D printing.

At a glance: the value of digital transformation in manufacturing

• Improved efficiency and productivity
• A higher quality product or output
• Reduced costs and increased margins
• More eco-friendly practices
• Scalability, provided it’s done right

Automating the production of materials is by no means new – the technological advances of the 20^th century transformed our approach to manufacturing, the effects of which are still being felt socially, politically and economically. It is, however, clear that the wave of change being instigated by Industry 4.0 holds vast potential for the future of operations, provided organisations possess both the knowledge and the skills needed to make use of it. Acquiring the technology is just one piece of the puzzle – upskilling, reskilling, and hiring new people where necessary will be essential for companies looking to thrive in this new age.

So what value does future digital transformation in manufacturing promise, and how can organisations, professionals, and indeed the world at large benefit from it?

1. Improved efficiency and productivity

Advances in data and analytics, artificial intelligence and machine learning have the potential to increase labour productivity by 15-30% if deployed correctly, according to McKinsey. There are a number of reasons for this, with a reduction in manual tasks, emphasis on higher value work, increased use of automation and augmentation tools, and more accurate data insights into labour performance all making an impact.

With software models such as digital twins revolutionising testing environments and providing highly-accurate simulations of real world scenarios for manufacturers, it’s only a matter of time before risk becomes negligible and progress towards autonomous operations is virtually unimpeded.

2. A higher quality product or output

With the right systems and technologies, issues with quality in manufacturing can be seen live, allowing for in-moment adjustments and monitoring that reduce the likelihood of producing a faulty product. Historic, cloud-based data is also incredibly useful for teams when it comes to tracing the root cause of issues, making it much less likely that mistakes will be repeated.

Automated testing and quality control throughout the manufacturing process can have a very clear and tangible impact on the empirical calibre of a product, but the real merit of your output can largely be measured in the benefits it provides to the customer. Reduced manufacturing lead times, a successful product launch straight off the bat, and an overall improvement to the quality of the service they receive are all indicators of successful digital transformation.

3. Reduced costs and increased margins

The economic benefits of Industry 4.0 are expected to be significant for early adopters of new technologies in manufacturing, and this forecast has been in place for some time. McKinsey research from as far back as 2018 indicated that organisations well on their way to adopting AI and other new technologies by 2025 could expect a 122 percent positive cash flow change.

Though something of an investment to begin with, the overall cost efficiencies of digital transformation in manufacturing can be seen in many ways. Real-time performance visibility enables organisations to prevent problems before they occur, whilst cloud technology can save on maintenance and overheads, as well as reduce time and resources spent on equipment procurement and setup.

4. More eco-friendly practices

Consumer demand for eco-friendly processes across the entire manufacturing supply chain continues to escalate, and it’s essential that any new or evolving technologies are designed to accommodate this.

Ultimately, efficiency and sustainability are inextricably linked, and whilst it might seem incongruous to equate greater productivity with environmental responsibility, there are actually many green benefits to reap from the increased digitisation of manufacturing. Access to real-time data can allow improvements to be realised in areas such as cost, agility and quality, reducing both our energy and material consumption.

5. Scalability, provided it’s done right

Many organisations make the mistake of seeing the automation of manufacturing processes as a single project – long in the planning – with an instant payoff. In reality, many applications are smaller, with greater flexibility, meaning it’s better to view digital transformation as an ongoing process that adds increasing value over time.

If this agile approach is taken, it needs to be bolstered by a well-delivered change management programme. It’s likely that many frontline jobs will change, and staff will need training and support to bring them through the transition. While it’s not guaranteed that one digital transformation win will lead automatically to others, doing a good job the first time will make it a lot easier for you to replicate your success.

Looking to secure the skilled manufacturing talent capable of delivering your digital transformation agenda? Submit an enquiry with us today. Manufacturing professional looking for a new, more rewarding role? Check out our latest vacancies – we add new ones daily.