What is industry 4.0?

Four core principles sit at the heart of industry 4.0, which should be kept in mind when beginning the journey into choosing and harnessing new technologies.

 

1. Connectivity

Systems and software should be interconnected and be able to seamlessly communicate with each other. This is also commonly referred to as the Internet of Things (IOT).

2. Transparency

It’s essential that systems do not just collect data, but that this is easily accessible and understandable for the end user. Transparency of information means that business decisions can become smarter, and businesses can react proactively with useful data rather than assumptions. The ideal being a single, centralised data hub that supplies various elements of your business systems as required, so there is only ever one version of the truth.

3. Value-adding

Industry 4.0 is not about making people obsolete, it’s about helping everyone work in a more efficient way. In smaller companies, who may currently spend too much time on practical work like packing or driving forklift trucks, will find that technology allows them to instead concentrate on running the factory and taking control of the supply chain. As a result, productivity goes up and so too do revenue and profits.

4. Automated decisions

Lastly, software should be intuitive. Small, everyday tasks such as checking stock levels and sending purchase orders to suppliers can strip out valuable time from employee weeks – time that could be better utilised elsewhere. These systems can take care of these non-value-added tasks for you, without you having to tell the system.

 

What is holding SMEs back?

Whether smaller manufacturers are actively against digitalisation, or simply don’t see it as a priority, standing still is not an option. It doesn’t matter where they are in the supply chain – global companies demand full transparency, and this can only be achieved with standardised systems. There are too many production leaders who believe digital transformation is still a long way off. Some are reluctant to invest their limited budgets in new technology if they do not believe it will bring tangible benefits, and many are also concerned that their in-house teams do not have the skills or expertise to implement these systems effectively.

 

SMEs are also dismissing Industry 4.0 out of the belief it does not concern a business of their size. We need to dispel the myth that digital systems are out of reach for smaller companies. Products such as Access FactoryMaster MRP are scalable in line with operational need. In production lines of all sizes, industry 4.0 increases productivity and creates more efficient and profitable workplaces, allowing production leaders to grow their technical expertise and play a vital role in future-proofing the business.

 

What issues SMEs are facing that Industry 4.0 solves?

All manufacturers should have the confidence to explore Industry 4.0. But data can seem overwhelming, and many manufacturing companies are struggling to access the information they need to make fast decisions and run their businesses at optimum efficiency.

 

Outdated Shop Floor Information

A common issue is timing – when what is happening on the factory floor is not instantly communicated or visible to management. These barriers creates a problem when operational decisions need to be made instantly. Waiting to clarify the facts costs time and money, delays production schedules and causes unnecessary issues for the business and for customers.

Closing this gap is not as difficult as you might expect, thanks to the advent of excellent and reasonably priced data collation and management solutions. Effective technologies such as barcode readers, handheld devices and tablets linked into a centralised dashboard makes keeping on top of data collation a cinch – and they’re designed for hard-working operational environments too.

 

Too Much Data

Ensuring that the right people get access to the information they need (and those that don’t, can’t) needs to be dealt with correctly, not only from an operational efficiency perspective but also from a data management and control perspective. That means an integrated solution with built-in access controls, not just on site but remotely too.

The latest manufacturing technology solutions can handle all this as standard, which not only helps your business run smoothly, it also means meeting data compliance obligations is far easier too.

 

Lack of business insights

Making decisions based on the full picture, (not just part of it plus a hefty dose of ‘gut feeling’) is so much more effective. It’s also a more confident way to operate and is easier for everyone to be supportive of. Remove the ambiguity and see exactly what you need to know using customised views, manufacturing oriented dashboards and reporting. Now that sector specific software has evolved, and the cost of technology continues to fall, there simply hasn’t been a better time for manufacturers to invest. 

 

Time for change

Information is power - but only if you can get to what you need quickly and have complete confidence that it’s correct.  And that’s the problem for so many manufacturing companies. Despite having invested in software and systems to collate and manage data, it can still be far too difficult to gain access to what is needed quickly and confidently. Separate and unconnected systems are the root cause of data problems with duplication, inconsistent update protocols and lack of formalised data cleansing.  It’s easy to see why the mountain of information just gets bigger – and the ability to use the data effectively becomes ever more difficult 

 

Industry 4.0’s impact on business

SME businesses, still in the early stages of considering what it means to them, will need to think about where to start with the fourth industrial revolution. After all, Industry 4.0 incorporates a huge range of technologies, from the Internet of Things (IoT) to Big Data analytics and EDI up and down the supply chain.

Instead of focusing on the bigger picture of Industry 4.0, it can be simpler to start with your business priorities – and then see how the technology can help you achieve those goals. Here are five key areas where businesses are already enhancing their operations with Industry 4.0 technology.

 

Better resource planning

Improving your ability to manage your resources comes top of the list. Greater visibility across the business ensures the right volume of materials are in stock or on order at any given time. Accurate oversight also prevents over-ordering, ‘just in case’ and saves cash flow. You instil confidence in your customers as they can be certain your business can fulfil orders. This makes enterprise resource planning (ERP) systems or a scaled back material requirements planning (MRP) system an obvious place for many companies to start.

 

Streamlined operations

When you are passionate about perfecting your product or service, it can be difficult to get excited about back-office functions. However, digital systems automate time-consuming admin tasks, such as timesheets or expenses, that prevent key personnel concentrating on what should be the main focus of your business. These systems also strip out old paper-based processes, allowing growing companies to expand without investing in extra back-office staff.

 

Stronger customer relationships

Integrating a customer relationship management (CRM) system with an ERP, allows manufacturers to recognise sales trends, anticipate orders, liaise with clients and ensure forecast demand is fulfilled. Organisations use these digital systems to collaborate on projects online and automatically notify customers on the progress of orders. More accurate and open communications will help businesses build and maintain trusting relationships with their clients.

 

Compliance

Manufacturers face increasing pressure to prove components and materials they produce meet a range of quality standards and are ethically sourced. For example, aerospace demands evidence of tolerances and QA levels, whereas food manufacturers are required to prove provenance. Digital systems are helping firms track and trace materials and fulfil compliance requests automatically.

 

Optimised processes

When data is collected from all areas of an organisation, managers must make sense of all that information. Business intelligence dashboards combine the data and provide greater oversight – helping identify areas of improvement, such as removing production bottlenecks. They can also process orders more efficiently, using scheduling and planning systems to see the impact of schedule changes and planning different scenarios; answering the ‘what if’ questions, or ‘can we take on this rush order?’

 

By rolling out these systems, companies are starting to adopt Industry 4.0 and creating a digital platform to grow their business. This will be the foundation that helps companies thrive through the Fourth Industrial Revolution.

 

Cyber-security in Industry 4.0

 

Legacy software is vulnerable

Those that don’t use the latest software, or who rely on legacy, bespoke software, forfeit many commercial benefits, while leaving themselves vulnerable to attacks too.

Unlike newer systems, which are continually updated and tested, legacy software poses a big security threat . If you’re using such a system and your email account is hacked, you could be in serious trouble. Add to that the nightmare of what would happen if your production servers are also hacked, and everything grinds to a halt.

 

Cyber-security helps traceability

Aside from hackers, we shouldn’t forget that poor manual processes pose another risk to security. Physical paper documents can easily go astray, either accidentally or maliciously, leaving production managers frantically trying to find the information they need. Worse still, customers are likely to take a very dim view of suppliers who misplace contracts or component certifications and may well take their business elsewhere.

A lax attitude to cyber-security can threaten operations in any factory, whether it has embraced digitalisation or not – but it’s now virtually impossible to enforce the highest standards without up-to-date software, with fully backed-up data.

 

Consider the cloud

The sheer unpredictability of cyber-security threats means businesses should prepare for when it happens, not if. This means ensuring your software is backed-up, secured and readily available to prevent the loss of mission-critical data and maintaining business continuity in the event of an attack or natural disaster.

When it comes to investing in this technology, it’s important to consider the cost against the commercial damage if your systems were compromised. You can back up a secondary copy of your business data in the cloud and restore files and virtual disks back to your local environment as needed – starting from the daily price of a coffee.

 

What next with your industry 4.0 journey?

 

One size does not fit all

Adoption of Industry 4.0 does not mean the same thing for every company. Industry 4.0 doesn’t come in a box and one size doesn’t fit all. Instead, different solutions will suit different companies at different stages in their journey. Big companies might benefit from smart factories, where all operations are connected via a digital system, but smaller businesses see better returns from a scalable solution that offers real-time visibility, automatically generated reports and traceability.

Any investment in technology or changes to work flows can be daunting, so hopefully the above facts give you a clearer understanding of why Industry 4.0 is important. The next step is to start thinking about how it can work for you.

 

Help is available

The Access Group has been helping manufacturers make the best use of evolving technology for years – so we’re familiar with the unique challenges you are facing. Our modular solutions and centralised data management means that you get the right fit for your business - real-time data, tailored to the user with tabbed browsing, analytics, and KPI dashboards straight to your desktop or tablet. This way the data you need finds you, so you don’t go looking for it.

 

Next steps

It’s important to remember that efficiencies are designed to ensure the long-term survival, and success, of the business. Technology is key to boosting productivity, enabling firms to secure more contracts and take on high value work. Companies who fail to keep pace with the latest developments and modernise will be left behind, as the supply chain becomes smarter and more competitive.