Unlocking Industry 4.0: Insights from Bizsphere’s Shanghai Factory Visit
The nominations for the Malaysia Smart Manufacturing Awards 2023
showcased numerous impressive smart manufacturing initiatives that Bizsphere
observed within the local context. However, Bizsphere recognizes that
complacency cannot be afforded by merely comparing manufacturing performance on
a local scale. Consequently, Bizsphere seized the opportunity to conduct a
visit to several smart factories in Shanghai the previous week.
The visit to Shanghai revealed several critical insights that
underscore the potential of smart manufacturing:
1) IT IS ALL ABOUT BUSINESS POTENTIAL
– The company’s adoption motive is driven by how Industry 4.0
creates new opportunities for business expansion.
– Production efficiency might be seen as a direct benefit, but the
outcomes it brings to the business are the real driving forces.
2) IT IS ABOUT APPLICATION OF TECHNOLOGY OVER WHAT THE TECHNOLOGY IS
– Whether it is ERP, MES, IoT, autonomous robots, or ASRS, the key
success factor is how it can be applied to production and business to
streamline/optimize operations and processes.
– There are multiple names for the same systems/solutions with
similar capabilities. One can only reap the real business benefits by spending
enough time on system requirement studies, exploring ways to solve pain points,
and creating new opportunities.
3)PEOPLE DON’T RESIST CHANGE. THEY JUST DONT UNDERSTAND WHY THEY
NEED TO CHANGE
– One key reason for failure in smart manufacturing initiatives is
that people do not have buy-in. Management does all the planning, appoints
specialists, changes processes and standard practices, and then suddenly just
announces that we have a new system you need to learn, operate, and perform
with.
– An example of good practice is to have “transformation
evangelists” go down to the production floor, ask about their working
challenges, what leads to errors, and most importantly, how management can
help. Communicate & demonstrate to the team that the digitalized process
actually reduces workload and errors, making them feel they are more
intelligent working with digital systems and gadgets. For example, “You
are no longer just a warehouse stock data entry clerk. You are now a warehouse
data analyst. You use data to decide what to do instead of just recording
data.”
4) SMART FACTORY IS NOT ONLY FOR LOW MIX HIGH VOLUME. HIGH MIX LOW
VOLUME PRODUCTION CAN BENEFIT GREATLY FROM INDUSTRY 4.0 TOO
– There are no doubts that smart manufacturing will bring a high and
fast return on investment to low mix high volume production. It is just the
concept of economies of scale.
– High Mix Low Volume production can also benefit greatly,
especially in capturing more market opportunities. One of the reasons for low
profit margins in this production type is that we are unable to optimize our
materials, components, and machines to produce with the lowest COGS (cost of
goods sold). By studying data trends, reviewing availability from ERP/MES/WMS,
or other systems, management has great visibility on whether to accept a job
order or whether we can still lower our selling price on our quote to capture
new market opportunities, all in real time.
Are you prepared to revolutionize your manufacturing operations?
Embrace the future of industry with us as your guide through the transformative
world of Industry 4.0. Discover how smart technologies can elevate your
production efficiency, open new markets, and drastically enhance your
operational capabilities. Start your journey towards groundbreaking innovation
and industry leadership today. For expert insights and a strategic pathway
forward, reach out to us at marketing@bizsphere.com.my
Step into the future of manufacturing with confidence—let’s innovate, optimize,
and excel together.
Yap Keng Teck
Managing Director Bizsphere
Programme Director, Smart4wrd