Making the transition to Industry 4.0 (and the role MES can play)
Put the phrase ‘Industry 4.0’ in a headline, and you could risk losing half your audience. Indeed, for some it’s a topic similar to colonising Mars: “great idea, but we have more immediate concerns to worry about!”
What doesn’t help, is the fact that Industry 4.0 means different things to different people:
- There are those that adopt a grandiose view, fuelled by talk of the Fourth Industrial Revolution (complete with robotics, AI, and XR etc.)
- Then there are those that take a more pragmatic approach, with the concept blending into their on-going continuous improvement activities
Both of these perspectives hold merit, but for different reasons. The first is arguably the strategic view, and presents a future vision for where manufacturing is heading. The second is the tactical view, where the emphasis is on enabling more connected, digitally-enabled operations to improve productivity and profitability.
Yet whatever your preferred definition, arguably the most pressing questions are: what progress is being made, and what are the main obstacles blocking this advance?
A smart assessment
A good source for measuring progress across different industry segments is the WEF’s (World Economic Forum) Smart Industry Readiness Index (SIRI). What this offers, is an assessment of the progress being achieved against the 3 ‘fundamental building blocks’ of Industry 4.0 (process, technology, and organisation) – which are then split by 8 pillars and 16 dimensions.
It’s basically a rich source of insight for companies to benchmark where they are in comparison to those firms in the ‘rainforest’ (their classification, not ours!) and ahead of the pack. As for charting the transition to Industry 4.0, the report’s high-level findings are:
- Process – the ‘broad middle’ of organisations are still busy digitising processes, while the ‘best-in-class’ are now seeking to integrate their already digitised processes
- Technology – front runners are now focused on connectivity to enable greater integration and ‘insight generation’
- Organisation – here the report deviates by actually offering explicit guidance: “Manufacturers should put more emphasis on refreshing and broadening their strategies for digitalisation and workforce retraining”
Forces of resistance
Such findings also point neatly to the forces of resistance in play. Of these, investment levels – or lack of – will always grab the headlines. But outside of cost, other hurdles also exist including:
The constant speed of change – which makes people nervous to invest in technology today, that could be outdated by tomorrow. An issue influenced by memories of previous experiences, and year-long projects featuring many highly paid consultants that inevitably fall short of initial ambitions. As an example, many Manufacturing Execution Systems (MES), demand extensive customisation before they offer any real value. In addition, extensive customisation makes it difficult for any system to be adapted in line with changing operational realities – and soon becomes a serious burden for IT to maintain.
The skills issue – it’s interesting to note that about a third of the SIRI report is focused on people. In effect, Industry 4.0 demands a new kind of skill set that combines the practical mindset of traditional engineers, with extensive digital awareness. That’s because while talk of digital transformation inevitably focuses on data, manufacturers still need people to interpret and act on this information. For larger firms, able to rely on large graduate intakes of ‘Generation Z digital natives’, the issue is less pronounced. But for smaller firms, a noticeable skills gap is evident – and growing ever larger.
Knowing what to do and when – technology obviously has an important role in manufacturing, but it has to remain relevant to the realities of the shop floor. For many firms, big gains can be achieved by focusing first on getting their key systems talking to each other, and replacing paper-based information with real-time insight into what’s happening across the factory. Only then can they fully identify existing constraints and opportunities for automation – alongside the business case for future investment.
The role of MES
A final point to emphasise is MESTEC’s role in helping clients transition to Industry 4.0. As a MES solution, our technology’s primary focus is on labour productivity, and helping inspire more efficient and responsive operations. In effect, MESTEC enables manufacturers to make real-time decisions based on real-time data – and in so doing to build up a solid digital platform for future innovation.
We also help directly address the 3 resistance forces listed above:
- For speed of change, we offer a cloud-based offering that champions configurability over customisation. That means that users only need a web browser for access, with the integration side of any project typically completed inside a few months at most
- For the skills issue, the system makes it easy to share best practice (experienced insight on performing specific tasks), while also presenting a more dynamic view of overall operations. The data is therefore always on hand to inform more digitally integrated approaches
- For knowing what to do, MESTEC helps managers model constraints and identify common issues with machines and processes etc. It also supports ‘what if’ analysis for introducing new technologies – allowing you to better understand where to invest and why
Summing it all up
With MESTEC, manufacturers can augment their continuous improvement activities (or embrace Industry 4.0 if you’d like to call it that) with real-time data. A capability that also enables them to drive further productivity and profitability benefits along the way.
To find out more about the value on offer from MESTEC, get in touch.
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