Asia-Pacific to Truly Implement Smart Manufacturing
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Asia-Pacific to Truly Implement Smart Manufacturing

Manufacturing Technology Insights | Wednesday, March 29, 2023

Manufacturers must prioritise experimentation and adaptation to keep up with the rapidly evolving technological landscape and work together to integrate technologies, data, processes, and human interactions to optimise operations and drive innovation.

FREMONT, CA: The Asia Pacific region has experienced significant growth in its manufacturing sector in recent decades, driven by advantages such as cheaper labour, favourable economic conditions, and supportive regulations. However, this manufacturing powerhouse is now at a crucial turning point.

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Manufacturers in the region are facing difficulties meeting customers' ever-changing expectations and their demand for quick product delivery. Additionally, they are dealing with rising inflation, disruptions in supply chains, and production delays. These challenges are not only making it difficult to keep up with demand but also creating pressure to evolve as new manufacturers enter the market with advanced equipment and technologies.

To gain a competitive edge, numerous manufacturers in the Asia-Pacific region are aiming to benefit from smart manufacturing, which involves the integration of technologies, data, processes, and human interactions to enhance production outcomes.

Firstly, a lot of manufacturers mistakenly believed that they have implemented smart manufacturing simply by adding technologies like AI or data analytics in a fragmented way, which only provides benefits to the production process rather than connecting them to the broader business value chain. Secondly, many manufacturers are reluctant to embrace new technologies because they are worried about issues like interoperability between different systems, high capital investments, and the inability to expand the technology effectively.

The main obstacle that leads to these difficulties is the handling and combination of data and processes. It is not sufficient to simply introduce new technologies, businesses must understand the complete convergence of their operational technology and information technology, operate factories using software-defined approaches, and consider operations, workflows, and human interactions in a comprehensive manner, taking into account the larger business context.

Machines and equipment in factories, also known as operational technology (OT), are typically not connected or integrated with each other. They are usually specialised, closed systems that operate independently. Due to a lack of standardisation across machines, human operators are often needed to oversee and manage the programming and physical operations of each piece of equipment. This can be compared to a car factory, where the assembly line does not have any knowledge of the welding station that comes before it. These machines do not have a common language to communicate with each other.

With the development of the Internet of Things (IoT), machine-to-machine communication, and data analytics, the previously separate worlds of operational technology (OT) and information technology (IT) are starting to merge. IT from the enterprise point of view is breaking down the information barriers in OT by sharing and analyzing data exchanges throughout the manufacturing floors. This integration is leading to improved productivity, automation, and more efficient workflows.

While some manufacturers are taking steps to enhance their factory productivity through the adoption of new technologies, many are failing to fully utilise the potential benefits of integrating operational technology (OT) and information technology (IT). They are missing out on the broader impact that this convergence can have on their business's profit and loss (P&L) beyond just the manufacturing floor. They are overlooking the ultimate impact on business use cases such as return on assets (ROA), quality or yield optimisation, and production optimisation.

To accomplish complete OT-IT convergence, it is necessary to integrate the manufacturing data obtained from these technologies with business intelligence tools like enterprise resource planning (ERP) or supply chain management systems. This integration will have a significant impact on decision-making outside of the factory, such as in supplier management, accounting, or compliance. The adoption of new technologies and the interoperability of machinery are just the beginning of the smart manufacturing journey. The subsequent steps are what will set businesses apart by connecting factories to the larger business in a unified way and creating a genuine competitive advantage.

Hardware has long been the defining element of traditional production, where each piece of machinery is created to do a single, monotonous task. The plant may need to be upgraded with significant amounts of money while making improvements. Software-defined manufacturing can help in this situation.

Software-defined manufacturing enables manufacturers to utilise software to set up, oversee and control machines and their operations throughout the manufacturing facility. This approach enables manufacturers to maximise their current hardware's capabilities, allowing a single machine to serve multiple functions or adjust for other uses. Similar to how smartphones have replaced separate devices like phones, cameras, and GPS systems, software-defined manufacturing allows factories to function like an IT system.

The adoption of software-defined manufacturing provides several benefits, including enhanced flexibility and faster programming for both individual machines and the entire production process via a single interface. Manufacturers can also create digital replicas of physical machines in either an on-premise or cloud-based environment to simulate the impact of upgrades on a production line. By leveraging AI and machine learning across the manufacturing edge, data can be analyzed in close proximity to where it's collected, and real-time adjustments can be made to optimise operations.

Manufacturers often fail to recognise that software-defined manufacturing allows for continuous updates and improvements. As a result, they should not halt their search for new technologies, workflows, and processes after an upgrade is completed. By constantly experimenting and adapting their facilities, manufacturers can enhance their business operations in the long term.

Creating a future where smart manufacturing is possible requires the establishment of an underlying architecture that facilitates the convergence of operational technology and information technology, and enables software-defined manufacturing. To accomplish this, manufacturers require a foundation that allows for the design, expansion, and execution of distinct functions on a unified platform that resembles the cloud.

Establishing such a foundation necessitates the assembly of hardware and software building blocks to integrate distinct functions such as process control, data acquisition, and visualisation. This involves utilising appropriate silicon technology, which is optimised for demanding industrial applications and can integrate different applications that would typically necessitate the use of multiple CPUs, GPUs, and accelerators.

For the future of smart manufacturing to be successful, it is crucial that the entire manufacturing ecosystem, from original equipment manufacturers (OEMs) to factories to system integrators and beyond, is capable of integrating technologies, data, processes, and human interactions. This necessitates every aspect of the manufacturing ecosystem to adopt an open, fully programmable, and standards-based unified system. Such a system provides manufacturers with the freedom, flexibility, and interoperability to optimise operations and stimulate innovation, regardless of the vendors or suppliers they employ.

Achieving smart manufacturing in the Asia Pacific region requires a holistic approach that involves the integration of hardware and software building blocks, the convergence of OT and IT, and the implementation of open, fully programmable, and standards-based unified systems. To achieve this, manufacturers must prioritise continuous experimentation and adaptation to keep up with the rapidly evolving technological landscape. Additionally, it is crucial that the entire manufacturing ecosystem, including OEMs, factories, and system integrators, work together to integrate technologies, data, processes, and human interactions. By adopting these strategies, manufacturers in the Asia Pacific region can optimize operations, drive innovation, and position themselves for long-term success in the smart manufacturing era.

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