Smart factory programs accelerate business value creation. Businesses report as much as 10 to 12 percent gains in sections such as manufacturing output, labor productivity, and factory utilization after they invested in smart factory projects.
FREMONT, CA: Enter the fourth industrial revolution—the latest division in industrial development that ensures to ignite stalled labor productivity in manufacturing through connected machines, data, people, and value chains. In that regard, the smart factory could potentially kindle the hindered labor productivity and unlock the key to productivity for manufacturers.
Qualitative and quantitative analysis reveals five significant findings:
• Every manufacturer, whether yet to invest or already running in smart factory technologies, can harvest company value from intelligent factory initiatives.
• Smart factory programs accelerate business value creation. Businesses report as much as 10 to 12 percent gains in sections such as manufacturing output, labor productivity, and factory utilization after they invested in smart factory projects.
• There is a direct and established connection, mainly through investment and use cases between smart factory programs and the business value realized. Moreover, any manufacturer can use the connection.
• While there are risks—financial and operational, they are outnumbered by the smart factory’s valuable contribution. Besides, most risks can be toned down through rational stakeholder selection, a competent change management strategy, incremental investments, and measurable proofs-of-concept.
What does the Potential Mean for Manufacturers?
The promise of better labor productivity is enticing for manufacturing, as the industry sits amid a labor shortage that is on the brink of becoming a drag on productivity. Technology can drive new levels of productivity throughout the factory as businesses combine technologies like harmonic sensors, vision systems, and cobots with cognitive computing, autonomous capabilities, and machine learning.
Whether manufacturers are starting on their smart factory journey or well along the pathway, there is no apprehension that smart factory initiatives can have a significant impact on manufacturing productivity. Naturally, there are caveats, but there is also a need to launch the ambitions to set a team up for success. When and how smart factory use cases are commenced can determine their success.