Assembly Lines
Smart Manufacturing Needs Focused Implementation
Manufacturers that have invested in smart factories have achieved a 20 percent increase in productivity.
Photo courtesy Audi AG
NEW YORK—During the past decade, manufacturers have invested in smart factories to improve efficiency and remain competitive. According to a recent study by Deloitte Consulting LLP, companies have achieved a 20 percent improvement in production output and a 20 percent increase in employee productivity. However, many firms still face significant challenges as they contend with operational risks, talent shortfalls and cybersecurity preparedness.
“The smart manufacturing journey is still emerging, but its value is undeniable,” says Tim Gaus, smart manufacturing business leader and principal at Deloitte. “Our survey shows that most responding manufacturers agree with the need to invest in smart manufacturing but require help navigating operational complexities to see meaningful results.
“Smart manufacturing prepares enterprises to be ready for increased demands and, in an era where increased capacity can set companies apart, organizations that have already invested in smart manufacturing will likely have an advantage,” claims Gaus. “Those who haven’t, may not be able to defer much longer.
“As organizations continue to invest in smart manufacturing, their focus is on establishing a foundation to connect and optimize technologies, which can enable automation and the next generation of capabilities,” explains Gaus.
Looking at the next two years, 46 percent of respondents ranked process automation as a priority investment, followed by physical automation (37 percent) and factory synchronization (24 percent). Investment priorities include advanced production scheduling (35 percent), execution systems (33 percent) and quality management (28 percent).
“Investment in automation may be seen as an important element in alleviating skilled labor shortages and maximizing productivity, while factory synchronization may mitigate the impact of labor, asset and materials constraints,” says Gaus.
“As the nature of work fundamentally changes and people are now working alongside AI, more than a third (35 percent) of those surveyed are concerned about upskilling their employees to work with advanced technology to realize the full potential of smart manufacturing and operations,” notes Gaus.
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Priorities over the next two years will be data focused, with 40 percent investing in data analytics, 29 percent in cloud computing, 29 percent in AI and 27 percent in the Industrial Internet of Things.
“There is an opportunity for organizations to drive home the benefits of smart manufacturing through well-executed implementation that is tied to business strategy,” claims Gaus. “It will be especially important for manufacturers to commit to building dedicated teams to manage the widespread changes to processes and operations.”
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