INDUSTRY 4.0/IIoT


LOOK TO THE LIGHTHOUSE


What makes a Lighthouse factory and what can other manufacturers learn from them? Dieter Heimerdinger, vice president of supply, Sandvik Coromant enlightens us...


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ighthouses have been the key to maritime navigation for centuries, emitting light to guide sailors across


treacherous seas. Recognised by the World Economic Forum (WEF), Lighthouse facilities can also act as a guiding light for the manufacturing industry, as it navigates the technologies of Industry 4.0. A study by WEF in 2018 found that over 70


per cent of businesses are investing in technologies such as big data analytics, artificial intelligence and 3D printing, but are not able to take these projects beyond the pilot phase. But it seems that tides have changed. 2020 has been a difficult year for many manufacturers to navigate, but its impact on digitalisation is clear. In May 2020, a Fortune survey found that 77 per cent of chief executive officers believed the crisis would force their companies to speed up their digital transformations. But how can they get it right? Certainly before 2020, the manufacturing


industry was sometimes slow to adopt digital technologies. IIoT solutions have been implemented at a sluggish pace, and are yet to scale across industry. It’s been typical for manufacturers across many sectors to rely on legacy systems to collect and analyse data, preventing them from realising the main benefits of digitalisation: data-driven insights to run equipment more efficiently, to react automatically and to boost operational speed. There are many reasons why digital


12 MAY 2021 | PROCESS & CONTROL


progression has been stalled. Stagnation may come from a lack of skills in the workplace, with new technologies requiring a different set of competencies. The investment in reskilling, training and


hiring new specialists can leave many manufacturers questioning whether digital transformation is really worth it. But it is. Having 70 per cent of manufacturers struggling to get new projects off the ground teaches us that — while many want to implement digital technologies — it’s difficult to find ways to prove their continuous benefits. It’s those manufacturers that are in need of a guiding light.


A beacon of hope To date, the WEF has identified 69 “Lighthouse Facilities” across the globe. The network has been selected from a survey of over 1,000 manufacturing sites, based on their success in adopting Industry 4.0 technologies. They represent a range of industries, such as automotive, additive manufacturing and consumer goods. Described by WEF as “the world’s most


advanced factories, which are leading the way in the adoption of Fourth Industrial Revolution technologies”, the recognition demonstrates a clear motive. For WEF, showcasing the 69 facilities means they can show the way for the 70 per cent of companies stuck in “pilot purgatory”. Lighthouse facilities are here to dispel the myths that make digitalisation seem


hazardous. Contrary to concerns about skills gaps, the Lighthouse factories are not deploying IIoT technology to replace operators. A McKinsey report suggests that less than


five per cent of occupations consist of activities that are completely automatable, while over 60 per cent of occupations have at least one third of automatable tasks. Consequently, employees in production enjoy a working routine that’s less repetitive, and more interesting, diversified, and productive. An evaluation of the facilities has


uncovered several other findings that demonstrate the value of implementing Industry 4.0. The facilities are more agile and showcase greater customer centricity across end-to-end manufacturing, and are quicker to recognise shifts in customer preferences. Increased automation and upskilling and


reskilling efforts also means these facilities operate at speed, giving them a greater advantage over competitors. This speed and efficiency is also leveraged to make processes more eco-efficient, reducing waste and using fewer finite resources.


Gimo: factory of the future In 2019, Sandvik Coromant’s production facility in Gimo, Sweden was awarded Lighthouse facility status. At the factory, Sandvik Coromant manufactures machine tools and metal cutting inserts, which customers use to produce anything from small machining parts to aircraft engines. Activities are divided


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