The Fourth Industrial Revolution Industry 4.0

November 12, 2018

by

A recent IndustryWeek survey (Nov. 6, 2018) found that manufacturers are having trouble joining the Fourth Industrial Revolution, called Industry 4.0. And the World Economic Forum (WEF) found that 7 out of 10 manufacturers fail in pushing initiatives in big data analytics, A.I., and additive manufacturing.

But there is hope, the Forum asserts. They scoured the planet and after vetting 1,000 manufacturers, selected 9 “lighthouses” (listed below) with a solid Industry 4.0 strategy. “These pioneers have created factories that have 20-50% higher performance and create a competitive edge,” says a McKinsey exec. “They have agile teams with analytics, IoT and software development expertise that are rapidly innovating.” Industry 4.0 is expected to deliver productivity gains over $3.7 trillion.

Bayer Biopharmaceutical: Italy. Most companies use less than 1% of the data they generate. Bayer makes the most of its data, leading to a 25% drop in maintenance costs and while gaining 30-40% in operational efficiency.

Bosch Automotive: China. Bosch uses data analytics to deeply understand and eliminate output losses, simulate and optimize process settings, and predict machine interruptions before they occur.

Haier: China. Use of AI facilitates a “user-centric mass customization model” with electronic products made on-demand. Maintenance needs are predicted before incurring downtime via AI.

Johnson & Johnson: Ireland. This hip and knee joint factory implements IoT, leading to a 10% reduction in operating costs and 5% drop in machine downtime.

Phoenix Contact: Germany. The electronics manufacturer relies heavily on customer-specific clones to cut production time for repairs or replacements by 30%.

P&G: Czech Republic. Production lines, in a plant built in 1875, seamlessly change the product being manufactured with a push of a button, an innovation that reduced costs by 20% and upped output by 160%!

Schneider Electric: France. Sharing of best practices across its multinational force allows each site to reap the benefits of the others, saving 10% on energy and 30% on maintenance.

Siemens: China. Leveraging augmented reality to create 3D simulations, Siemens has optimized its production lines with reduced cycle time and 300% jump in output.

Fast Radius: U.S. The lone U.S. company uses real-time analytics and globally positioned distribution 3D printing farms to maintain rapid turnaround times to deliver prototypes and custom parts.

This post provided courtesy of Jay and Barry’s OM Blog at www.heizerrenderom.wordpress.com. Professors Jay Heizer and Barry Render are authors of Operations Management , the world’s top selling textbook in its field, published by Pearson.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s