Reinvented: Digital Transformation for Manufacturing

In many cases, processes and assets like paper- and spreadsheet-based management systems, legacy networking solutions, and legacy machines have become obsolete. This leaves manufacturing businesses unsure on how to transition into this new digital era. Confusion leads to wasted money, missed opportunities, and failure to compete.

We’re here to help make digital transformation easier.

In this eBook, we’ll explain everything you need to get your manufacturing company on the path to successful digital transformation. Keep in mind, though, that digital transformation is a journey, not a destination. But if you stick with it, you'll gain a leaner and more agile business — and one that’s more profitable.

Summary

The manufacturing industry is experiencing a massive digital overhaul as companies everywhere modernize and automate systems and processes. These big changes increase output, eliminate waste, lower production costs, and reduce risk.

It’s estimated that 75 percent of large manufacturers have updated operations with Internet of Things (IoT) technology and analytics-based situational awareness technologies. A waterfall effect is occurring, too, as smaller manufacturing companies follow suit and embrace digitalization.

These activities fall under the definition of digital transformation, which involves using digital technologies to solve everyday business challenges. Digital transformation impacts every vertical market and may become the defining technological trend of our era.

This transformation poses challenges for manufacturing companies, which now must rethink just about every aspect of their operatations.

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Digital Transformation: A Harbinger of Growth

50 years. If we continue like this, we need to learn how to live in a world with no growth in the next decade. This is scary because when the economy doesn’t grow, our children don’t get better lives. What’s even scarier is that when the pie does not grow, each of us get a smaller piece. We’re then ready to fight for a bigger one. This creates tensions and serious conflicts. Growth matters a lot.”

Of course, there have been many attempts to revitalize manufacturing since the first wave of automation swept the industry. First, off-shoring became popular. Then, companies tried making factories larger and more specialized. But as Scalabare explains, factories today still operate much as they did 50 years ago. Even with the advent and proliferation of the Internet, the global manufacturing industry has become stagnant.

Here’s some good news: We’re moving out of this period of prolonged stagnation in manufacturing and into a new era, also know as the Fourth Industrial Revolution.

In order to understand digital transformation, we first need to appreciate its role in the manufacturing industry.

Digital transformation has the potential to reignite the global manufacturing industry. Olivier Scalabre, head of BCG Operations Practice in western Europe, illuminates the promise in a groundbreaking manufacturing TED talk.

“If we look at the history of growth, times of big growth have always been fueled by big manufacturing revolutions,” Scalabre says. “It happened three times — every 50, 60 years. The steam engine in the middle of the 19th century, the mass-production model in the beginning of the 20th century — thanks, Mr. Ford — and the first automation wave in the 1970s.”

According to Scalabre, though, growth is declining — and that’s a big deal.

“Our global economy has stopped growing and it’s not new,” Scalabre continues. “Growth has actually declined for the last

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The Fourth Industrial Revolution

For the last 50 years, manufacturing companies have relied on computers and low-level automation sequences to manage operations and production.

While these advancements were transformative in their own right and launched us into the digital age, the gears of progress never stop moving. Yesterday’s technologies are no longer capable of sustaining much-needed growth.

Thanks to digital transformation, however, we're entering the Forth Industrial Revolution. This new era will involve the widespread proliferation of connected systems and digital technologies.

The Fourth Industrial Revolution is already underway — especially in manufacturing — where companies are increasingly experimenting with digital technologies.

Read on to learn some of the ways that digital transformation impacts manufacturing.

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5 How Digital Transformation Is Reshaping Manufacturing

Manufacturing Automation Systems Early industrial automation systems, first deployed in the 1970’s, used integrated circuits — or microchips — to power miniature active and passive devices like transistors and capacitors.

Today, most manufacturing companies use automated manufacturing systems that integrate software and machinery, enabling computers to automatically control production.

Industrial Internet of Things (IIoT)For the better part of the last decade, the IoT, a global network of connected, IP-enabled devices, has been steadily growing and advancing. In the manufacturing sector, there’s the IIoT, which specifically refers to intelligent devices and sensors that collect data from the manufacturing floor for use in AI, machine learning, and predictive analytics systems.

Expect huge changes. The IIoT market is projected to reach $124 billion by 2021. And by 2030, IIoT could add $14.2 trillion to the global economy.

Artificial intelligence (AI)The next wave of manufacturing automation will involve AI, which refers to the ability for machines to perform complex tasks and become smarter over time. AI involves combining different methodologies, including deep learning, machine learning, neural networks, natural language processing, and more.

While AI is still in its early stages, it’s already used in many manufacturing facilities to boost production and safety.

Open process automationUp until this point, the manufacturing industry has been using programmable logic controllers (PLCs) and distributed control systems (DCSs) for process automation. A PLC is a ruggedized digital computer used for controlling processes like assembly lines and robotic devices. DCSs, which typically interface with PLCs, are used to control operations of large plants using GUI screens.

These systems have big downsides. They are usually proprietary and, as a result, are difficult to maintain and update. Now, the manufacturing industry is starting to migrate to open process automation solutions, which are easier to use and more cost-effective to manage.

Additive manufacturingCommonly referred to as 3D printing, additive manufacturing involves using computer-aided design (CAD) and object scanners to layer material and form geometric parts. 3D printing removes many costly and time-consuming elements of manufacturing, such as carving and shaping. As a result, companies can design products faster and more affordably than before.

One of the most exciting aspects of additive manufacturing is its potential to transform the space industry. Thanks to additive

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manufacturing, astronauts can print objects and assemble units in space without having to transport materials from earth.

Additive manufacturing also helps companies with workers in remote, hard-to-reach areas. Additive manufacturing can reduce expensive shipping costs and expedite construction projects.

Asset performance management (APM)A manufacturing company depends entirely on the quality and availability of its operational resources. In the past, these assets were managed manually using staff members, paper, and spreadsheets. Manual systems opened the door for error, abuse, safety hazards, system errors, and other pitfalls.

Asset performance management (APM) will help change things. According to Gartner, APM “encompasses the capabilities of data capture, integration, visualization, and analytics tied together for the explicit purpose of improving the reliability and availability of physical assets.”

In short, APM involves automating asset control, providing a streamlined way to manage and control everything from fleets to assembly lines to forklifts, and everything in between.

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Edge computingAs manufacturing environments become more connected and cloud-based, companies need new ways to move data. Transferring large amounts of data over long distances to a centralized server can lead to data bottlenecks, latency, and other dire problems.

Now, manufacturing environments are moving data towards the “edge” of the network. An edge computing framework leverages distributed, open architectures to process select data locally, a practice which vastly improves performance. Through edge computing, manufacturing companies can reduce resource-intensive long-haul data transfers and latency.

For example, imagine a sensor recording anomalies on a milk bottle assembly line. Instead of taking photographs of every single milk bottle, a sensor can instead identify broken or deformed items, transporting less information and reducing data bottlenecks along the way.

Software-defined wide area networking (SD-WAN)The influx of connected systems and devices in manufacturing has increased the need for fast, scalable, and reliable networks. Many manufacturing facilities are integrating SD-WAN as a way to augment or replace their expiring multiprotocol packet layer switching (MPLS) networks.

SD-WAN involves separating the networking hardware from the control plane, enabling multi-site manufacturing facilities to create a centralized virtual network that can be deployed and managed from a single location. In doing so, it’s possible to allocate network resources, control costs, improve security, and reduce downtime across a global private network.

2. Improved accountability

Manufacturing facilities are fast-paced environments where hundreds of workers may collaborate on a single project. Aerospace engineering, for instance, requires impeccable communication and strong accountability. Tasks must be sequentially completed in order to ensure safety and compliance. Paper and spreadsheet management systems fail to deliver in complex manufacturing environments.

Many companies now use digital apps to accelerate approvals, improve accountability, and ensure regulatory compliance.

Example: During automobile assembly, certain processes need to be checked at various stages of production. Manufacturers need to make sure lights and horns are installed correctly, for example. By the time a car gets to the final inspection process, all systems should be signed off on by an authorized technicians. By using an app or other software, a team can see who inspected a certain process, when it was approved, and by who.

Three Benefits of Digital Transformation in Manufacturing

Manufacturers must modernize their operations in order to keep up with the competition. Automation, data, agile management, and cutting-edge technologies are all critical for success.

Let's take a closer look at the benefits behind digital transformation in manufacturing:

1. Cost reductions

Digital transformation can help companies identify wasteful processes and curb costs. Often, companies will discover new areas of waste.

This work leads to leaner and tighter manufacturing environment.

Example: A manufacturing company may implement statistical process control to identify faulty products on an assembly line. Using sensors and cameras, it’s possible to disseminate individual anomalies from large-scale errors that could lead to recalls once products are shipped to distributors.

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Now is the time to form a sound digital transformation plan and become an early adopter of next-generation technologies. There is a massive digital divide emerging. We expect this will get even larger in the years to come. It’s better to act than to fall behind as competitors continue to move digital transformation initiatives forward.

So, what does it take to turn your company into a digital-first organization? Hard work.

Planning, communication, and teamwork are all necessary to advance digital transformation projects beyond their pilot phase. Businesses often underestimate the process and wind up abandoning their digital transformation projects before they reach maturity.

To help you avoid that fate, next we'll offer some advice to help ensure a successful transition for your company in the next section.

Three Benefits (continued)

3. Increased visibility

Productivity can be difficult to track in a manufacturing facility. Managers might have reduced visibility into what happens on a production floor, on the road, or in a warehouse.

New technologies — like wearables, apps, cameras, and sensors — give managers a centralized view across facilities and teams. These technologies enable autonomy while informing managers on progress. They also keep workers engaged and focused on their jobs.

Remember that digital transformation is about much more than just getting ahead and improving output. Digital transformation is about survival. Failure to embrace digital transformation could have catastrophic consequences for a manufacturing company over the long run.

Consider this: According to IDC, about 40 percent of technology spend across all industries will be put toward digital transformation this year.

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Tips for Inspiring Digital Change in Manufacturing

Don’t Rush in to Digital Transformation

Sometimes, good intentioned companies start investing in technologies without fully understanding their needs. As a result, they wind up spending money on technologies that don’t improve anything.

Prior to launching an initiative, administrators should form a digital transformation task force to study various parts of the organization and investigate using digital solutions to improve workflows.

Build Your Own Software

You may not be impressed with existing industry software solutions. Manufacturing software is notoriously expensive and not generally customizable. Companies often purchase software only to wind up with buyer’s remorse when they realize that they can’t modify it to meet their needs.

By using a no-code app platform, you can build apps that meet your exact specifications using your own data. In other words, you can build the perfect tool for the job.

With AppSheet, you can either create apps from scratch using a simple no-code approach — which is easy enough for non-technical employees to master.

Tips (continued)

Focus on solving problems

Digital transformation isn’t about buying technology just for the sake of it. It’s about making your business leaner and more agile, identifying areas of waste and working to change them.

We encourage digital transformation teams to spend time consulting with division leaders, conducting workshops, and trying to understand the challenges workers face. Together, the team should explore various technologies and figure out which solutions are worth deploying as an experiment.

If a project proves to be successful, that technology could then be deployed in other areas of the organization. This type of experiment is called a “lighthouse” project. Organizations from all industries rely on lighthouse projects as they undergo digital transformation to be examples of what works.

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12 How Digital Transformation Is Reshaping Manufacturing

Check the AppSheet sample apps which you can copy and customize for your own uses:

Work Orders App - An app for requesting equipment repairs.

Try the Work Orders app.

Loss Report App - An app that floor supervisors can use to ensure all equipment is in proper working order.

Try the Loss Report app.

Activity Based Costing App - An app for tracking production line activities.

Try the Activity Based Costing app.

Employee Training App - For providing medical training materials to employees.

Try the Employee Training app.

You can also start designing your own app for free.

AppSheet is a unique no-code platform that your business can use to automate many of its backend manufacturing processes. You can start by capturing new data or build one using your existing data sources.

Whether you’re looking to create simple apps for communicating project updates or advanced apps to track scheduling, production, and supply chain management, AppSheet can help you get started. AppSheet can work with any manufacturing company, so rest assured we can help you regardless of where you organization is in your digital transformation journey.

Visit our website for more information about how you can transform your operations and accelerate digital transformation with AppSheet.

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