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INDUSTRY 4.0/IIOT A SMART MOVE


Kevin Bull, Product Strategy Director at Columbus UK, demonstrates the advantages of a smart factory setup that’s powered by a combination of smart manufacturing technologies and a refreshed customer experience mindset


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igital empowerment is the new success gauge across the manufacturing sector. It requires integrating digital and physical


systems, advanced visibility, and more flexibility, all of which bring improved efficiency and decreased costs. To enhance each element of manufacturing operations requires organisations to be able to leverage data from the factory floor to the client call centre and to the C-suite. Enter the smart factory, and its adoption is on the rise, predicted to be growing at a CAGR of 9.52% from 2023 to 2032. Gartner describes the smart factory as a


‘concept used to describe the application of different combinations of modern digital technologies to create a hyperflexible, self- adapting manufacturing capability. Smart factories are an opportunity to create new forms of efficiency and flexibility by connecting different processes, information streams, and stakeholders (frontline workers, planners, etc.) in a streamlined fashion.’ So, are manufacturers ready to make the


smart move? Digital transformation is an integral part of the


smart factory setup as Industry 4.0 technologies unlock new manufacturing efficiencies. A recent report found 63% of manufacturers are focusing on increasing manufacturing agility over the next 12-24 months – and this is where the smart factory comes in. Smart factories are more adaptable than their


predecessors because they embrace contemporary technology, which allows them to change in real-time. The end-result? A smart factory ensures that every link in the value chain is connected to inform manufacturing decisions with no delays and zero defects. The critical components to creating a smart


factory are: data-driven insights, automated demand forecasting, and an effective customer experience and engagement strategy – all underpinned by cutting-edge technologies. 1. The data building blocks – integrating smart


systems with smart systems delivers the right information to the right people at the right time. A manufacturer’s journey relies on trusted data- driven insights but data management remains


one of the biggest time sinks in any organisation, especially when manufacturers rely on legacy systems that can’t effectively integrate with other businesses systems to share data. The accurate and automatic flow of data


between systems is crucial to increasing efficiency and production. This means it’s essential to have a seamless horizontal integration between operational systems and vertical integration through connected manufacturing systems, as well as end-to-end, holistic integration through the value chain. The first step is to analyse the business


processes that are causing the most pain, and then to analyse the data that flows through them to identify areas of inaccuracy, duplication, and incompleteness. From here, manufacturers can begin to build a data strategy that reduces waste and optimises the data value stream with smart manufacturing technologies. Modern data collecting and analytics tools


that integrate with each other can be effective in maximising productivity. Take the example of integrating a CRM and ERP system – together these smart systems can eliminate data siloes, minimise manual work, and provide manufacturers with a 360-degree view of customer buying habits, order history, and preferences. 2. Demand forecasting goes proactive and


predictive, and opens the door to production optimisation. The most effective way manufacturers can


operate more efficiently is to shift from a reactive operating model to a proactive, predictive one that leverages collective data. Actionable insights from AI, machine learning, and IoT outputs provide a connected digital feedback loop which enables real-time operational optimisation. This ensures organisations have the ability to proactively leverage this new-found knowledge across the entire value chain. Demand forecasting is used to anticipate


demand with enough time to manufacture the right amount, but often the problem is capacity,


demand, and cost aren’t always known parameters. Variations in demand, supplies, transportation, and lead times create uncertainties which can effect production scheduling, inventory planning, and transportation – and this is where machine learning tools can help manufacturers produce the exact amount of product to meet demand. No more. No less. Accurate demand forecasting with


machine learning tools tries to predict future demand for a product or service in a supply chain by relying on economic and consumer conditions in the marketplace. It looks at historical data, market trends, missed sales, economic conditions, competitors’ actions, and other factors to anticipate future customer behaviour. It’s the first step in production planning and a key requirement to addressing uncertainties in supply chains. 3. The CX value add – it’s an organisation-


wide effort. A connected supply chain is not truly effective if the connectivity ends with the product. Digital customers are now more


connected and empowered than ever before, and won’t hesitate to take their business elsewhere if they feel their needs aren’t being met. Unsurprisingly, research found that 63.73% of manufacturers placed creating a seamless customer experience as a top business priority. It’s up to manufacturers to rethink


customer experience and engagement (CXE) approaches – so what smart manufacturing tools can help meet this pressure? Digital technologies such as a customer


relationship management (CRM) system can help manufacturers not only deliver high quality products but also provide exceptional customer experience to meet the higher expectations of the new age customer. Although the buyer’s journey has moved


online, manufacturers don’t need to digitise the whole customer experience – simply digitising product catalogues can be a step towards improving customer experience. Essentially, it’s about giving customers more autonomy such as allowing them to view accurate stock levels, configure product functionalities, and customise pricing.


Columbus www.columbusglobal.com/en-gb/


NOVEMBER 2023 | PROCESS & CONTROL 33


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