A utonomous vehicle technology . The Cloud . Big Data . The Internet of Things . Industry 4.0 .
If you ’ ve been around manufacturing for longer than the last decade , you can remember a time when these terms had no meaning . And if you ’ re of the opinion they still mean nothing , your business is already falling behind . While today ’ s manufacturer can still walk the line between yesterday and tomorrow , the future of the industry will be won by those companies who understand these terms , capitalize on the very real rewards they can offer and avoid the potential pitfalls along the way .
“ Most every manufacturer I speak with has a story of how technology is transforming how they do business ,” said Chuck Hadden , MMA president & CEO . “ It can be a change in how they communicate with customers , a way for machines along the
“ supply chain to communicate with each other , or new advances allowing companies to access new markets and realize new possibilities . Industry 4.0 is changing what it means to be a manufacturer .”
Industry 4.0 is a small term carrying big meaning . It essentially refers to the 4th Industrial Revolution or the fourth major shift in modern manufacturing . The late 1700s saw the development of mechanization and steam power . The late 1800s introduced electrical energy , mass production and the assembly line — processes to quite literally drive Michigan into the role of a global manufacturing leader . Finally , the last half of the 20th century was defined by computer , electronics and the potential of automation . Each era propelled manufacturing forward and Industry 4.0 contains the ingredients for another surge of innovation .
“ The technologies that are driving Industry 4.0 include simulation , big data and analytics , autonomous
... the more successful companies will be the ones to integrate informational technology into all aspects of their business . The question manufacturers need to be asking is ‘ how do we integrate IT into marketing , into sales , into supply chain and customer service
”
— how does it all come together ?’
— David Behen , La-Z-Boy
April 2018 MiMfg Magazine 11
robotics , artificial intelligence , additive manufacturing , cybersecurity and the industrial internet of things ,” explained Rebecca Taylor , senior vice president for the National Center for Manufacturing Sciences , the nation ’ s largest cross-industry technology development organization . “ Manufacturers need to understand and be prepared to incorporate these new approaches in their own production environments to remain competitive .”
As described by Taylor , these technical advances have the ability to challenge manufacturing ’ s existing business models and the future fortunes of established industry leaders . Does this mean you have to drop everything and change your business strategy overnight ? No . But manufacturers who choose to ignore the technologies popping up all around them could very quickly find themselves running to catch up or falling too far behind and ending up out of business .
Industry 4.0 : Determining Tomorrow ’ s Manufacturing Success Stories
Manufacturing never stands still . Visionary leaders are always moving forward , advancing new ideas and introducing new technologies . Those who choose to cling to the past and to what has always worked before usually get run over and forgotten . The technologies surrounding Industry 4.0 are no different and , like so much in Michigan , their potential value can most easily be seen by studying the automotive sector .
“ What we see happening in Detroit and with car manufacturers around the world is something that will continue to impact other industries ; it ’ s a shift from the mechanical to the electrical ,” said Paul Eichenberg , a strategic automotive consultant and the opening keynote for the MFG Forum on 5 / 9 / 18 in Novi . “ It ’ s true that you can ’ t just
Industry 4.0 Transition Tips
• Determine your appetite to put in the time and effort . Changing who and what you are isn ’ t easy and won ’ t happen overnight . Embracing a new direction is a months-long , years-long and decades-long process .
• New technologies bring with them new standards and requirements . Consult financial and business risk experts to ensure you are asking the right questions .
• Don ’ t do too much too soon . Develop your new direction the same way you ’ d eat an elephant — one bite at a time .
• Recognize the need to hire new types of skilled workers . ( See page 13 for skills worth investing in )
• Make your company culture a top priority . A great culture will attract great talent every time .