Technologies enable smart factories to self-adapt
By Jarrod Kinchington, Infor ANZ vice president and managing director Judging by the headlines, continuous logistics issues, continued pandemic restrictions, and rising prices for raw materials will mean that manufacturers have their work cut out for 2022. In addition, the drive towards sustainability is adding pressure to readjust the manufacturing footprint. Most manufacturers are still stuck with a geographic footprint, which was driven by labour arbitrage around the globe, rather than by factors such as closeness to customers or ecological concerns. To increase efficiency, many producers have started to implement Industry 4.0 technologies. Industry 4.0 came with the promise of a smart factory being profitable at the production lot size of one unit. The concept was introduced at the brink of the millennium change with the introduction of cyber-physical systems to share, analyse and guide intelligent actions for various processes in the industry to make the machines smarter and to lower downtime. Analytics can also be used for other aspects like logistics, demand forecasts, production scheduling and quality control, capacity utilisation and efficiency boosting. But we still stand at the beginning for leveraging the true potential of Industry 4.0. Smart technologies offer no less than the possibility to redesign the global manufacturing footprint, to position factories closer to markets, reduce logistics nightmares and increase visibility of the ecosystem partners, including suppliers and customers. There are six important ingredients for a strategy to create the future-proof smart factory: Customers increasingly demand highly personalised products as well as an enhanced customer experience. Manufacturing companies adopt highly agile cloud-based solutions to gain the ability to increase individualisation, service additions, and serve higher flexibility requirements. The need to reduce delays and transport costs, as well as the drive toward a more sustainable production and the imperative to reduce the distance to the physical end-consumer […]