MANUFACTURING
NEW DIRECTION FOR THE MANUFACTURING INDUSTRY
Digital transformation projects are
By Mike Russell, chief operating officer, Central Innovation
changing the way manufacturers operate
in today’s increasingly competitive
market. For instance, Industry 4.0,
characterised by automation and the internet of
things (IOT), is becoming the new trend in the
industry. A recent report released by the Ministry
of Business, Innovation and Employment (MBIE)
- ‘Beyond commodities: Manufacturing into the
future’ - which outlined the importance for New
Zealand manufacturers to embrace Industry 4.0,
has shed light on the competitiveness in the
country.
In addition to adopting new technologies,
moving beyond commodities towards valueadding
services will be the new direction of New
Zealand’s manufacturing industry. In light of
this, smart factories with increased productivity
and accelerated on-time delivery of products
will be the prime investments within digitisation
efforts as it is expected to reduce costs by
3.6%. Therefore the onus is on the businesses
to embrace the required technological
advancements in order to become more efficient
and build a competitive advantage.
INDUSTRY 4.0: CHANGES AHEAD
Retrieving actionable insights will prove to
be a growing source of economic value for
businesses no matter their size. What we see
here is big data as an emerging player in the
manufacturing industry. Businesses will be able
to successfully streamline their information by
collecting, storing and analysing data using
cloud and analytics. Consequently, better
services and products can be delivered with
increased efficiency and accuracy.
For manufacturers competing to stay relevant in
the technology revolution, benefits from predictive
maintenance such as decreased malfunctions,
improved safety and increased efficiency will prove
to be a game changer. That’s where the use of IoT
will play a crucial role as it enables organisations
to leverage predictive maintenance which
accurately detects failure and reduces downtime
for maintenance. In addition, using machine
learning analysis, quick product enhancements
and changes can be made to preserve high-priced
industrial infrastructure.
JOINING THE TRANSFORMATION MODE
According to the MBIE report, Industry 4.0 is
seen both as a threat and an opportunity for New
Zealand manufacturers. The ministry believes that
Industry 4.0 technologies have the potential
to make a type of short run, customised
production that will enable more
specialisation to become efficient
and profitable. This would be
especially important for the
manufacturing industry where it
currently accounts for 12% of
New Zealand’s GDP value.
Within the manufacturing industry,
skill proficiency in the likes of CAD
and BIM is critical to ensure businesses
are responding to the changing demands
in the industry by allowing complex products to
be designed and manufactured faster than ever
before. Customer experience needs to be revisited
in a highly digitalised world and by embracing
next generation manufacturing, businesses can
leverage from efficiencies of new processes to
allow for mass customisation
PREPARING THE WORKFORCE
Currently, 5% of graduates and 53% of the
certificate level students in 2015 studied a
field closely related to manufacturing in New
Zealand. Traditional skills like machining and
tooling will remain valuable, but manufacturers
will require employees with proficiency in fields
like augmented reality, big data and robotics
to get the most out of the new technology.
To keep up with digitisation, businesses must
invest in up-skilling the faculty to be able to
leverage the new technology and adapt to its
implications.
Collaboration platforms and tools will allow
employees to access data remotely and
will also enable organisations to attract
potential global talent in the future.
As Industry 4.0 continues
to emerge as the key
digitalisation trend and
make a major paradigm
shift in the manufacturing
industry, it also offers
opportunities for
companies to optimise the
production cycle and be
efficient.
For manufacturers, keeping up
with the pace of digital transformation
is critical for success. Encompassing a range
of concepts like IoT, big data and humanmachine
interaction through augmented reality,
Industry 4.0 will continue to create changes
and manufacturers must ensure that both their
processes and workforce are evolving to meet
growing demands.
INDUSTRY 4.0
26 September 2018