12 MiMfg Magazine April 2018
one day wake up and begin making electrical components . These competencies are very different than what would be found in machining today ’ s mechanical components . However , the shift we see here is an indicator of things to come — the auto industry is a precursor to what shifts you ’ ll find throughout manufacturing and that can ’ t be ignored .”
Whether you see your business as a car company , a plastics manufacturer , a furniture maker or something else altogether , what Industry 4.0 is really doing is turning your business into a technology company .
“ Every company is a technology company now and the more successful companies will be the ones to integrate informational technology into all aspects of their business ,” projected David Behen , the leading tech expert at La-Z-Boy , former Director of the Department of Technology , Management and Budget ( DTMB ) and Chief Information Officer for the State of Michigan , and the 2018 MFG Forum closing keynote speaker . “ 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 ?’”
The influence of this technological disruption , noticeable or not , is beginning to show throughout manufacturing . Today ’ s production is all about efficiency . Faster processes , quicker communication and more effective interactions between workers , across the supply chain and with consumers . By embracing a new role as a software , technology and information-focused business , manufacturers are rewarded with reduced costs , reduced risk , improved quality , less risk , less error and overall improved customer satisfaction .
“ There ’ s a noticeable increase in technology firms being acquired by manufacturers ,” said Eichenberg . “ Those investments are happening — manufacturers are investing in what the future looks like . More automation means more software integration , more sensors , more quick communication between parts . These are significant transformations and they are already happening .”
According to UHY LLP , a leading provider of
Get More ! Learn about Industry 4.0 from Paul Eichenburg and La-Z-Boy ’ s David Behen at the 2018 MFG Forum in Novi on 5 / 9 / 18 . See page 16 for details and register online today at mimfg . org .
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business consulting services , this shift has immediate benefits like the creation of jobs , technological progress , potentially better wages , education expansion and reduced costs on goods and services as well long-term benefits such as improved living and working conditions and an overall greater standard of living . While the benefits to embracing Industry 4.0 exist , like all innovation , challenges are still present .
Potential Hazards to Industry 4.0 Success
The greatest challenge to manufacturing ’ s full acceptance of Industry 4.0 is it presents a clear disruption to what manufacturing is today . It requires a wholesale shift in how manufacturers think about what they do and how they do it . Again , look to the auto industry ’ s consistent pursuit of autonomous vehicle technology .
“ If you are a company that does machining of any type connected to the auto industry , there is a simple fact that makes a shift to electrical components incredibly complex — 80 percent of the machining components in a car are tied to the internal combustion engine ,” explained Eichenberg . “ If a shift is coming that replaces that mechanism with something else , 80 percent of what a car is will have to change and 80 percent or more of that supply chain has to change . This is a snowball effect which cannot be ignored .”
This snowball effect is another example why those companies who pursue changes to their future strategy — including an embrace of Industry 4.0 technology — will be the greatest beneficiaries of manufacturing ’ s next boom period . As technologies become obsolete in certain sectors , those business assets will become available , new talent will be available , and the entire look of existing markets will change . And yes , some businesses will lose .
“ It ’ s true that ill-prepared companies will be at a strategic disadvantage ,” said Eichenberg . “ When I talk with small-to-midsized manufacturers about strategy , the dilemma they have is that this disruption is significant and is going to have a significant impact on the business , not just through changing technology but increased requirements , additional quality