Is Your Factory Ready To Take On Industry 4.0? Things To Think About Before Implementing Your 4.0 Strategy
The fourth industrial revolution is already upon us. As creatures of habit, we humans instinctively fear change. If you are a manufacturer who has operated a successful business for decades or more, you might not be rushing to “fix what ain’t broke.” But the reality is, however resistant you might be to change, the potential benefits to be gained from embracing industry 4.0 are not to be overlooked.
Think of it this way. Back in 1913, several manufacturers likely resisted the “new and improved” assembly-line method of manufacturing spearheaded by Henry Ford. Where are those manufacturers today? Certainly NOT still in business (unless they eventually caved and adopted the trends of the time). Like it or not, the same can be said for those who fail to embrace industry 4.0 today. The leaps and bounds in technology we have witnessed in recent years will allow any factory that invests in these technologies to better connect up their people, systems, and machines. Not to mention, make their businesses more efficient, adaptable and collaborative than in the past. In practice, all this innovation translates to an estimated efficiency increase of approximately 18%. As well as a 13.8% drop in costs over a five year period, according to a PWC study. Inevitably, those who chose not to innovate, will eventually be blown out of the water by their technologized competitors.
So, what do you need to consider before leaping into an industry 4.0 implementation?
1. What is your budget?
Implementing i4.0 will, in all likelihood, save you money by boosting your productivity and lowering overall costs. It could take time to see results though and the initial outlay might be quite steep. Replacing old machinery and upgrading computer systems is unlikely to be a “budget” enterprise! You might be able to save money by upgrading existing machinery rather than replacing them entirely (see below) and this must be considered from the outset. There is no point leaping into a costly i4.0 endeavor if the funds are simply not available.
2. What is the state of your existing infrastructure?
Can your current machines be upgraded to make them compatible with new i4.0 technology or will they have to be replaced entirely? Check out whether it’s possible to upgrade some of your computers. For example, much of IoT technology relies on sensors attached to machinery, which gather and transmit data. It might be possible to attach such sensors to some of your existing machinery thus updating them. You will also have to look at compatibility with your communication systems (that transmit the data) as well as your data storage systems, databases, servers and more. Some small upgrades and changes could mean that you won’t have to replace absolutely everything. Seek professional advice from IIoT experts when evaluating the state of your current machinery.
3. Have you got the right people for the job?
Machines, technology, and processes are only one aspect of industry 4.0. The other side of the story is the people. To be in the best position to reap the benefits of i4.0, you need to have properly trained staff who are equipped to operate new machinery as well as to gather and interpret data as well as decide on an appropriate course of action based on data collected. Before embarking on a factory upgrade, evaluate whether your current staff are suitably equipped. Ask questions like: will we need to employ new workers with different skills? Will we need to invest in a training program for existing staff? How long will the training take and what will the cost be? All this should be factored into your financial planning.
4. Will an off-the-shelf solution do the trick?
This will probably be the most lengthy phase of consideration. You will need to look into some of the solutions already available on the market and see if they meet your needs as they are, or do the solutions need to be customized to the demands of your specific factory or industry. If an off-the-shelf solution offers everything you need, this will be a much less costly endeavor than bringing in a team of IT professionals to customize the solution. Also, be realistic about what changes are absolutely essential and what can wait. Would an off-the-shelf solution suffice for the first few years, after which you may decide to upgrade further or customize what you have further? Having a long term, a step-by-step implementation plan can help you keep your costs lower and take this massive transformation in a more palatable way.
5. How will you Measure the Benefits?
Anyone who invests considerable effort and resources into an upgrade will rightfully be anxious. Before embarking on this transformation, make sure you have data systems in place to capture and quantify the benefits of your investment. How will you measure ROI, any increases in efficiency or reduction in wastage? Having a suitable means to collect this data will put everyone’s minds at rest and reassure you when getting ready for a possible phase two.
Should you leap?
Industry 4.0 technology is undoubtedly where the future of manufacturing is at. Fully connected, highly flexible factories that integrate data from various sources is the way of the future. Industry 4.0 data gathering systems help factories predict and eliminate efficiency issues, better plan inventory and offer a better service to their customers. The potential benefits to your business are staggering but if you are daunted by the scale of the changes needed, relax and take it step-by-step. There is no reason to leap in headfirst and try and change everything at once. Look at one aspect of your production that could do with improvement and introduce a small innovation there. Allow the rest to follow when you are ready.