Integration trend in 4.0
“We are looking for strong partners, not weak partners. We’ re looking for strong neighbors, not weak neighbors. On top of that, we’re seeking friendship and we do not dream of domination.” US President Donald Trump’s speech at the APEC CEO Summit conference on November 10, 2017, with the candid statement, highlighted the viewpoint of a mutually beneficial business relationship nowadays.
Vietnam, the host country of APEC 2017, is also stepping through the “gate” of integration and becoming more and more involved in the global economy. 2017 is considered as a successful year of the Vietnamese economy. 13 out of 13 the government’s socio-economic targets are fulfilled or exceeded. GDP growth reached 6.81%, the highest level in nearly 10 years. The national competitiveness ranking (according to WEF) increased 5 levels (up 55/137) compared to the previous year
However, besides the satisfactory results, there are outstanding challenges such as low average productivity (equivalent to 7% Singapore, 17.6% Malaysia and lower than Laos). GDP growth is still largely based on a small number of FDI enterprises. The number of enterprises is increasingly established, but the rate of application of high technology in production and management is too low. The industrial revolution 4.0 (CMCN 4.0) is taking place and puts great pressure on businesses. Failure to keep up with the 4.0 revolution means fogginess.
According to forecasts by IDC (Worldwide Digital Transformation 2018 Predictions), until 2019, spending on digital Transformation around the world will reach $1.7 trillion. This figure is almost double the total GDP of Vietnam, Thailand, and Philippines. 35% of the world’s major manufacturers will implement the intelligent manufacturing solution initiatives to maximize operational efficiency and response time. By 2019, 75% of major manufacturers will rely on IoT (Internet of Things) and data analysis applications to update operations, minimize risks, and accelerate product launches.
Major manufacturing companies in the world are increasingly presenting in Vietnam through the development of a network of branches, factories, and mergers. With the high level of management and application of high technology, they put many challenges on domestic enterprises. If not catch up the industrial revolution, Vietnamese enterprises will lose at home before going to the “big sea”.
What is intelligent production?
Smart manufacturing involves the application of IT to all aspects of modern manufacturing processes to improve production efficiency, shorten the time and protect the environment. In the trend of 4.0 industrial revolution, smart manufacturing is the combination of information technology and production technology to optimize processes to meet the dynamic change of the market. In smart manufacturing, everything is connected through devices such as sensors or RFID. Products, processes, machines, tools … are organized and communicated to improve the productivity and efficiency of the production process in one or even many factories and companies.
The industrial revolution is increasingly being used and benefiting businesses around the globe. Digitizing product design has helped Goodyear, the world’s leading tire manufacturer, reduce the total product designing time from three years to one year and reduce development – tire testing cost from 40% to 15% budget for R & D. The design process is digitized in combination with the calculation of durability and material in aircraft production that allows the Airbus A320 to cut about 500kg/aircraft. As a result, each aircraft will reduce emissions of 166 tons of CO2 per year.
In production management, General Motors uses sensors to monitor moisture when painting vehicles. If the environmental conditions are not favorable, the vehicle may be moved to another location or the ventilation system adjusted to the required level. Similarly, the smart manufacturing system of Harley Davidson allows for controlling of the fan speed in the paint area and is controlled by an algorithm based on environmental variation. The McKinsey Global Institute (MGI) estimates that digitalizing of maintenance management will help manufacturers reduce maintenance costs by up to 40 percent, reduce downtime by 50 percent and reduce investment costs (for replacing the broken equipment) to 5%.
Toyota enhances the efficiency of supply chain management through smart manufacturing. This company can know exactly which machine produced parts on each vehicle. This allows Toyota to track and localize defective parts (and its manufacturing equipment), thereby greatly reducing the cost and time of product recall. Smart manufacturing brings benefits to the service delivery as follows. Each Boeing 737 engine produces 20 terabytes per hour. Thus, an 8-hour flight from New Your to London with two planes can generate 320 terabytes of data. GE Aviation Engines can accurately track conditions – temperature, humidity, altitude, dust – for every mile of their engine. Thanks to that, GE can provide accurate and optimized maintenance services for airlines. Similarly, the Rolls Royce applies IoT to collect real-time data on aircraft engines, thereby minimize operational costs and extend their product life.
The Process of Smart Manufacturing?
Smart Manufacturing includes the intelligent development of digitized management and operating systems based on three levels: product lifecycle management (PLM), manufacturing operation management (MOM) and automation (Automation).
Product Lifecycle Management (PLM) integrates information across the entire manufacturing value chain from the conceptual stage – product development (ideation), through the implementation of the product (realization) to the life cycle (utilization) includes support services for products and machinery – workshops.
PLM enables the production value chain on the digital system:
- Planning: Ensure the products meet the needs of customers and regulators.
- Styling: Create high-quality products with aesthetics.
- Design: Design better products, more cost-effective and quickly launch to market.
- Simulation: Check the capacity and operating performance of the product, ensuring that it meets the design requirements.
- Tooling: Design the tools needed to produce fast and effectively.
- Machining: Numerical controlling programs for machine and tools to achieve the highest productivity.
- Assembly: Managing the assembly process.
- Robotics: Implement manufacturing processes by robot
- Plant: Design the factory with optimal space and material flow.
- Quality: Ensure product quality is appropriate.
- Production: Performs production on schedule and continuously improves quality.
- Supply: Synchronize production activities, procurement, and suppliers to reduce costs and delivery time.
- Support: Management and quality assurance services for the product.
Production Operations Management (MOM) digitizes production processes from production data acquisition, optimizes production planning and schedules, ensures quality of production and delivers transparent information for management.
How do businesses use Industrial revolution 4.0 for Intelligent Manufacturing?
Industrial revolution 4.0 facilitates smart manufacturing’s development with the following main technologies:
Sensor technology: Sensors attached to equipment, machines, products… to measure output, consumption or operating conditions… Sensors create input streams for production techniques. In the past 10 years, the cost of sensors has dropped by up to 100 times, increasing the use of this technology globally.
Wireless: The smart manufacturing needs to connect sensors, machines, and robots with control, management, and analysis systems. Wireless networking technology is becoming more and more popular. The combination of sensor and network connectivity promotes IoT development. Industrial IoT (IoT) – IoT application in the industry – is one of the important technology of smart manufacturing.
Data Analysis: The flow of information from sensors, production lines, factories, supply chains… and IoT create huge data blocks. Data analysis enables enterprises to exploit the value of the asset block, which helps to detect problems, optimize opportunities and make accurate decisions.
Computer-aided design (CAD) and generative design: CAD enables the application of information technology to create, edit, analyze and optimize the design of products, components, even both the production system and the whole plant. The design provides a technique for simulating natural variation, taking into account design factors, material parameters, production methods, and costs. Every possible ability to identify suitable designs.
Advanced robots: Industrial robots are getting cheaper, more programmable, more work done and more flexible. Robots are indispensable in production, especially in the production of precision control or in harsh environments.
Smart manufacturing is changing the way we manufacture, utilize, operate and maintain our products globally. This change is reducing the competitive advantage of places that have been based on cheap labor and natural resources. In Vietnam, the development of the digital economy and smart industry is considered by the Government as a key task to restructure the economy and transform the growth model towards productivity, efficiency and competitiveness.
Every business needs to realize the risk of fogginess and at the same time identifying the need for change. Making smart manufacturing is a long process, but it should start now. Industrial revolution 4.0 brings favorable conditions for enterprises to grasp. “Industrial revolution 4.0 is an opportunity to fulfill the aspirations of the prosperity of the nation so we cannot miss” – as Prime Minister, Nguyen Xuan Phuc – “Let’s work together to take the country prosperous, ethnicity into concrete action.”
Source: ERP & Enterprise – No. 2