42 | AutoPartsAsia | OCTOBER 2017COVER STORY
M
eeting customer
expectations for cost
competitive products
without compromising
on features is a big challenge for
manufacturers anywhere in the
world. A more evolved manufacturing
ecosystem leading to Internet of
Things (IoT) or Industry 4.0 at various
levels is the latest way to face this
challenge. This is more applicable
to the automotive sector which is the
prime mover for many technological
advances.
Industry 4.0 is a new phase in
manufacturing which has several
facets including automation and data
exchanges, cyber-physical systems,
and cloud computing. This evolved
form of manufacturing creates `smart
or digital factories’.
In smart factories, machinery, storage
systems and production are capable
of exchanging information and
giving instructions to one another,
without human intervention. This
helps to carry out complex tasks with
minimum supervision and errors.Advantages
The Roland Berger’s `Digital
Factories – ‘The Renaissance of the
US Automotive Industry’ lists the
advantages of having digital or smart
factories. They include reduction
in manufacturing cost; improved
logistics efficiency; better visibility and
control over inventories; predictive
quality control; less complexity
in production; and cost effective
maintenance.
Digital factories are expected to
reduce manufacturing costs by
10-20 percent from the pre-digital
levels mainly owing to the use of
advanced robotics and machinery,
the development of self-optimizing
systems and the use of virtual
plants and products. Increased staff
flexibility as job functions adapt
to new requirements is another
advantage. These will result in
increased operational equipment
efficiency (OEE), reduced machine
idle time,quicker production ramp-
up, shorter changeover time and
improved process control loops.Logistics-integrated supply chain and
highly automated intra-plant logistics
are expected to improve efficiency
of the digital factories through smart
storage and demand-driven supply
of goods. This will cut logistics costs
of the manufacturers by 10-20%.
The customers also will benefit from
the digital factory. Manufacturers
can customise more easily when
the customers configure their car
online. The luxury car makers offer
customisation now, but it takes
months to deliver the end-product.
The digital factory of the future will
give manufacturers better visibility
and control over their current
inventory levels and future inventory
needs along with access to the
inventory levels of their vendors.
About 30-50 percent reduction in
inventory costs is estimated.Smart factory technology will allow
manufacturers to monitor and even
predict where and when quality
issues may occur. In addition to
this predictive quality control, real-
time quality testing (if needed, at