Why don’t small and medium-sized manufacturers (SMMs) adopt new technologies more quickly? Studies have uncovered many reasons, but most boil down to a very simple barrier: the lack of time.
Resources are tight and immediate business needs take precedence. You have orders to fill, employees to hire and train, payroll, supply chain disruptions, maintenance and more. Your smaller shop doesn’t have the budget of an original equipment manufacturer. You can’t hire and train more employees as easily as a large operation.
On the flip side, SMMs have fewer layers. You can get input, develop a business case and make decisions faster than a large shop. Smaller manufacturers also don’t have as many information technology layers to deal with when implementing new technology.
This guide is for SMMs that don’t have time to sort through overwhelming amounts of information about Industry 4.0 technologies. We hope to provide answers to some of your questions and concerns, so you can begin adopting technologies that make sense for your company.
This guide includes unbiased information about technologies that are helping other SMMs. You’ll learn how to assess technologies so you can determine if they’re a good fit for your business. Will the technologies you’re considering work in terms of cost and what they can do to help you meet your business needs? This guide will help you decide.
With these, you can dip your toe into the world of Industry 4.0 and experience some of the benefits without major risks.
Achieve Meaningful Business Results with Industry 4.0 Technologies
The World Economic Forum’s report “Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing” (WEF report, link opens PDF) cites truly meaningful business results that manufacturers achieve with new technologies. These include:
- 30% increase in labor productivity with flexible automation assembly lines
- 25% increased in labor efficiency with collaborative robotics
- 60% decreased cycle time with additive manufacturing
- 80% reduced deviations with advanced analytics
- 60% reduced customer complaints with artificial intelligence quality management systems
- 40% reduced lighting costs with intel
- 30% reduced energy consumption with a building energy management system
Using Technology to Combat Employee Shortages
Employee recruitment and retention is nearly every manufacturer’s top challenge. There just aren’t enough people to meet current needs between resignations, retirements and fewer young people interested in manufacturing careers. Workforce challenges impact your company’s bottom line.
Recognizing this, some manufacturers are stepping up their workforce development programs to implement targeted, scalable solutions. Industry 4.0 technologies can be part of those scalable solutions. In addition to increased productivity, efficient operations, sustainability, and product innovation, Industry 4.0 technologies can lead to beneficial changes for the existing and future workforce.
In fact, adding more technology to the production floor often leads to these two workforce improvements:
- Upskilling current employees: Current employees will need additional training to fully maximize the potential and return on investment (ROI) of the new technology. Employers must first know existing proficiencies of their current workforce in order to develop the new competencies required.
- Attracting new talent: New and emerging technology in the manufacturing industry will help attract the next-generation workforce that is very comfortable with using technology and data. Technology can be the key to reinvigorating the manufacturing workforce, attracting and nurturing a younger talent pool that previously may not have considered a career in manufacturing.
How to Approach Industry 4.0
Before investing in a technology, you should consider how it will solve a relevant business problem and support your company’s goals. This will help you achieve long-term, positive results. To begin, you must understand the current state of your business systems. In this context, a system refers to all the actions and processes involved in running your plant, from data acquisition to operational efficiencies. The success of any technology adoption largely depends on the strength of the systems. If all moving parts communicate effectively and clearly, it will be much easier to integrate new technology into the overall system.
Even if your company is not ready to take a full plunge into Industry 4.0, you can test the waters. SMMs can take many actions to begin capitalizing on the processes and capabilities available. Here’s where you can start:
1. Assess the current state of your operations.
Before you dive into a particular technology you should take time to examine the challenges that currently exist in your operations. Focus on your ongoing pain points. Do you have a lot of rework? Too much unscheduled downtime? Or perhaps you are struggling to predict future demand? By identifying your toughest challenges and prioritizing their importance, you can begin to develop objectives and a plan to adopt technologies that are right for your business.
2. Understand and prioritize your business needs.
No company of any size should invest until they are sure that the investment will align with their business needs. Your company’s various departments should also agree on priorities. It’s critical that you understand your company’s key performance indicators (KPIs) and that you tie performance to financial results to track their ROI. For example, will the increased capacity from reducing downtime pay for sensors or condition-based maintenance? Figuring this out could help identify the funding required for further improvements.
3. Learn about and try out available opportunities.
Once you identify opportunity areas, you will want to identify which technologies are available. There are many groups building Industry 4.0 environments where you can get hands-on experience. Conferences and networking groups also bring technology suppliers and customers together. This way you can learn what’s available, while providing valuable information to suppliers on gaps and what still needs to be developed.
4. Set goals.
Simply acquiring a new technology isn’t enough – it has to be implemented intentionally. This means using it to achieve a desired outcome. It means attending to all of the implications of implementing the technology – from process modifications to changes in company culture.
The truth is, most Industry 4.0 technologies align with business goals that you may already have, such as:
- Optimizing processes
- Shortening cycle times
- Improving quality
- Reducing energy losses
- Shortening downtimes
- Improving overall equipment effectiveness
Build the blueprint.
Creating an implementation roadmap to achieve the future state is next. The order of technology implementation should be driven by your business needs matched with the ROI. In that context, the suitability of the available products and the processes required to implement them should be considered. Before implementing new technologies, you might need to take preparatory steps. For example, you might wish to use cloud-based data storage to connect with your suppliers and customers. To prepare, you’ll need to consider cybersecurity needs before moving to the cloud.
Use your current equipment.
Not every Industry 4.0 technology requires you to ditch your existing equipment. Some older equipment can be integrated into an Industry 4.0 environment. For example, you can outfit your current equipment with affordable, after-market smart sensors to improve processes. Then you can reap some benefits of Industry 4.0 technology without purchasing entirely new systems.
Start small.
Starting small can be a matter of collecting and interpreting data that is already available. This often proves its value immediately and can eliminate much of the employee apprehension and skepticism. Also, choosing to implement Industry 4.0 technologies in stages makes perfect sense for SMMs. The savings from your early efforts can fund the next ones. As each success adds to your bottom line, the struggle to identify resources for the next opportunity is simplified. As with any continuous improvement effort, an important benefit of this approach is building momentum.
Build on success and gain buy in
Nothing succeeds like success! Give yourself a chance by starting small and focusing on one business need at a time. Identifying and implementing process improvements to drive better business results is hardly a new idea. Of course, a bit of cynicism that each new initiative is simply the flavor of the month isn’t new either. If you want your team to embrace change, you’ll need to demonstrate the benefits and mitigate the fear of the unknown. Incremental changes help with this, as they’re easier to measure, control – and communicate.
Impact Washington Can Help You Implement Industry 4.0 Technologies
Impact Washington, alongside our Industry 4.0 resource partners, provide unbiased recommendations for applying advanced manufacturing technology to improve your operation. We will work with you to understand your unique needs, identify opportunities where technology will have an impact, and propose solutions that are right for your business.
Our experts:
- Start by assessing your company’s current situation
- Identify opportunities and help you prioritize processes where technology solves problems or generates the best result
- Help you develop a business case
- Implement solutions
- Rigorously measure results
Contact us to apply advanced manufacturing technology to improve your operation today!