INDUSTRY 4.0/IIOT
PRIORITISATION LEADS TO TRANSFORMATION
Lee Ray, operations manager for Industrial Products (UK) at TÜV SÜD, outlines how a new Prioritisation Matrix will help companies implement Industry 4.0 transformation
I
ndustry 4.0 is a major paradigm shift for industry, with the convergence of enterprise IT and operational technology
seeing systems and devices exchanging and interpreting shared data. Advanced sensors are already finding their way into modern manufacturing lines, facilitating informed decision-making, but this is just the beginning. While Industry 4.0 is a growing reality,
much of it still remains a concept as the shift to this new method of working requires significant investment. Many brownfield factories do not have the necessary infrastructure to support i4.0 in the UK. As companies become more aware of Industry 4.0, the realisation will become apparent that it is a route that must be taken for their business to thrive and survive. In 2017, Singapore launched the Smart
Industry Readiness Index (SIRI) to help companies (large or small) evaluate the Industry 4.0 readiness of their facilities. Its accompanying Assessment Matrix was the world’s first self-diagnostic Industry 4.0 tool aimed at helping companies worldwide identify their Industry 4.0 maturity level. In a recent study carried out by Accenture, 70% of manufacturer’s in Singapore will have deployed i4.0 solutions by the end of last year. The UK seems to be lagging behind other countries and to date, there is no certified SIRI assessor within the UK. While manufacturers’ understanding of Industry 4.0 and its value has grown steadily, many have not been able to translate that into workable transformation plans.
22 MARCH 2021 | PROCESS & CONTROL Realising that companies now need more
help to better design and execute their transformation roadmaps, a new Prioritisation Matrix has been launched. This was developed by a partnership of the Singapore Economic Development Board, McKinsey & Company, SAP, Siemens and TÜV SÜD.
Prioritisation Matrix is to guide manufacturers to identify areas that will yield the most benefits
“ The Prioritisation Matrix partnership The aim of the
identified that the gap between awareness and implementation is often due to a company not having an effective Industry 4.0 roadmap, and that prioritisation was critical to achieving this. Identifying focus areas that generate the greatest value drives both informed decision making and effective resource allocation. The aim of the Prioritisation Matrix is to
”
guide manufacturers to identify the areas of focus that will yield the greatest benefit to them. The aim is to alleviate uncertainties and help to accelerate the pace of Industry 4.0 transformation. The Prioritisation Matrix should be used after companies have used the Assessment Matrix to determine the Industry 4.0 maturity of their manufacturing facilities.
Let us first take a step back to the TIER
framework, which provides a conceptual structure with four key principles that must be considered for a holistic prioritisation: • Today’s state - an in-depth
understanding of the company’s current Industry 4.0 maturity level. • Impact to the bottom line - identify the
distinct Industry 4.0 areas that can generate the greatest financial return. • Essential business objectives – the most
critical business objectives should guide the selection of Industry 4.0 areas. • Reference to the broader community -
emulate successes and learn from the mistakes of the manufacturing community. To translate the four TIER principles into
practice, the Prioritisation Matrix helps to quantitatively identify high-priority Index Dimensions where improvements will bring the most benefit. The idea is to offer an approach to help companies move in the right direction as they forge ahead with their Industry 4.0 transformations roadmaps. The Prioritisation Matrix formula brings
together four inputs, each reflecting a key principle of prioritisation represented in the TIER framework: 1. Assessment Matrix Score – provides a
baseline for companies to measure the impact of potential changes and track the progress of their transformation. 2. The Revenue-Cost Profile - breakdown
of profit and loss categories as a percentage of overall revenue. This allows more emphasis to be placed on Index Dimensions that have greater influence over
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
