The industrial sector is always seeking to optimise its production and performance. To achieve this goal, it uses new organisation methods, such as agile project management methods (PERT, OPT or Kanban) and new technologies that regularly emerge. Following the arrival of electronics, wire-guided vehicles and robots, it is now time for digital technology in all its forms to make its presence known in factories and workshops. Connected objects, 3D printing, big data, data analysis, the cloud, virtual reality and artificial intelligence (AI) are transforming manufacturing processes in all sectors and contribute to improving both productivity and operator working conditions.
The concept of Industry 4.0 first appeared on the industrial scene in the early 2010s, bringing together all these technologies. It is considered to be the fourth major revolution in production, following the introduction of the steam engine at the end of the 18th century, electrification at the end of the 19th century and automation, which began in the 1960s. This is the industrial sector’s equivalent of the ‘digital transformation’ that has been applied to all service and commercial activity since the early 2000s.
Applied to industry, the concept aims to integrate physical and digital systems into a single production value chain, by doubling the design and production chain with its digital twin, a type of virtual ‘double’. The main challenge of Industry 4.0 is still anticipating consumer demand by interconnecting all stakeholders in this value chain, moving beyond isolated industrial facilities. Whether its brands, suppliers, subcontractors or distributors – all players need to communicate automatically and transparently to provide the product that meets the consumer’s need.
TANGIBLE BENEFITS
We see a number of benefits of Industry 4.0. Firstly, the availability and analysis of large volumes of data provide a high level of production visibility, help identify areas for improvement and facilitate component and product traceability. Then there is process digitisation, which enables systems to be interconnected not only in all stages of the product lifecycle, but also in marketing activities and points of sale.
Thanks to shorter lead times, time-to-market is reduced by between 20% and 50%, depending on the products and sectors. Furthermore, the company, being more reactive, can adapt or modify production very quickly, or even move toward on-demand manufacturing. As a result, this scenario helps reduce inventories of raw materials and finished products, and cuts warehousing and transport costs. By reducing the break-even point for products, the company can achieve economies of scale on smaller volumes. The final two benefits of Industry 4.0 we see are predictive maintenance – enabled by the availability of data and the digital twin of processes, which reduces machine downtime – and digital design and simulation, which prevents design errors and opens the door to the creation of new products and services.
After adopting an on-demand production solution, outdoor pool furniture manufacturer Leisure Creations saw improvements on several fronts. For example, it increased fabric-cutting productivity by 20%, while reducing fabric waste by 20%, equating to savings of around $12 a metre. Greater precision in cutting and sewing reduced the number of errors and remakes. A total of 200 man-hours were saved, allowing teams to manage tasks with higher added value. Not insignificant with a 15% average annual growth and ongoing recruitment difficulties.
The variety of available and mature technologies, process documentation, interface standardisation and the growing number of players (publishers, integrators, consultants) are encouraging more and more companies to implement Industry 4.0 solutions.
“With just a few clicks, the cloud provides access to technologies for working on digital twins, performing predictive or big data analysis, printing in 3D or using augmented reality,” says Fabrice Nisol, a consulting expert who is assisting Tesca – a textile and seat component manufacturer for the automotive industry – with its digital transformation. “The arrival of artificial intelligence, coupled with existing digital offerings and the robotisation capabilities of the industry, opens up huge development prospects. We just have to learn to select them, combine them and master them!”
UNLOCK THE INDUSTRY 4.0 POTENTIAL
Data, its quantity and its availability throughout processes, are undoubtedly what characterise the Industry 4.0 model. And this is also one of the main challenges the digital transformation of the industrial sector will face in the coming years.
“Data is the lifeblood of a company. We will succeed in managing the digital transformation of the industry if, and only if, we have data that we know and understand,” says Miguel Angelo, head of innovation and industrial engineering at Valerius Texteis, a Portuguese group specialising in garment manufacturing. “In other words, you need KPIs and data for everything, for each step of the process, for all partners and suppliers, to know what to expect and what can be done. Our ability to progress depends on what I call our “collaborative attitude”, because no one grows alone!” The project Angelo currently leads for Valerius consists of creating a cluster to share the group’s vision with all the entities collaborating within its ecosystem. The aim is nothing less than to create a smart factory that will give each entity instant access to available data in digital form, rather than by exchanging hard-copy tables or information over the phone.
Data integration is strategic for streamlining all processes, from order entry to delivery and customer invoicing, from digital design to production line and manufacturing management and from raw materials inventory and supply management to logistics and transport.
This capacity for integration has played an essential role in Leisure Creations’ decision to get onboard with an on demand manufacturing solution. “We wanted a smooth end-to-end process, from order entry to delivery of the product to the customer,” says the company’s engineering manager, Brent Collum. “To achieve this, the solution had to interface with our Salesforce cloud ordering system and the data had to be automatically transferred to the cutting machine. We have all the planning information in a condensed dashboard.”
In its Smart Factory, Porsche has prioritised automated information processing. In the plant, production is organised in cells and cars are moved from one station to another, based on the operations to be performed on them, from bodywork to painting and assembly. Each station has screens on which operators can view schedule data and operations to be carried out. Porsche has installed at least 1,000 screens on its production lines so that everyone has access to all necessary information at all times.
CIRCULAR ECONOMY OPPORTUNITIES
Because it makes processes more efficient, because it provides accurate data at each stage of production and because it helps reduce errors, rejects and waste, Industry 4.0 prides itself on being sustainable. For companies, faced with the injunction to be more energy-efficient, more respectful of the environment and to reduce their carbon footprint, this organisation of production promises to be virtuous.
Leisure Creations reduced its fabric offcuts by 20% using its on-demand manufacturing solution, while Tesca – which relies on the deployment of its solution to solve quality problems, control energy consumption and reduce its environmental footprint – aims to do better than previous generations. “We expect Industry 4.0 to enable us to quickly collect the data we need and to reliably calculate our emissions at the group and factory level,” says Nisol. Sustainability and respect for the environment are major concerns for the younger generation entering the job and consumer market. With this generation, a new axis is also appearing, the circular economy.
AGILITY IS KEY
One of the assets of digital technology is the flexibility it provides. Thus, with an Industry 4.0 model, processes are adaptable, modular and reconfigurable, according to the requirements of the business. This asset is invaluable in the economic climate where rising interest rates, inflation, price hikes and, therefore, higher costs can turn markets upside down in no time. The Industry 4.0 model strengthens the resiliency of companies, gives them back their agility and makes them more resistant to market hazards. It enables them to react to a sudden slowdown or resumption of orders, modulate their supplies, make their supply chain as agile as possible, manufacture on demand and integrate their partners and suppliers into their ecosystem. This modularity and adaptability are also driving change in business model development. And this applies not only to large industrial groups, but also to SMEs.
CONCLUSION
The transitions that are underway in all economic activities – digital, ecological, energy, as well as the rapid evolution of consumer needs and demands – require the industrial sector to optimise all its processes. And, in particular, to thoroughly reorganise its production methods. This is what the Industry 4.0 model offers.
Successful implementation depends on companies being able to integrate all players in their value chain into an extended, digitised ecosystem. This ecosystem must include product designers, brands and creators, as well as suppliers, partners and customers in a virtuous continuum in order to manufacture the right products for consumers at the right time with the right quality and at the right price.
Manufacturers who succeed in this integration will not only be able to produce more and better, but also with optimised lead times and costs. The companies who have shared their experiences in this white paper are proof of that!
To read the full Lectra white paper, go to: https://tinyurl.com/3cxh4bpf