Enterprises in the manufacturing sector are turning to new-age technologies to streamline their operations and make them more efficient. Manufacturing companies can scale up faster by closing the gap between the physical world and the cyber world. As such, disruptive technologies such as big data analytics, artificial intelligence (AI)/machine learning (ML), internet of things (IoT), cloud computing, 3D printing and augmented reality (AR) are making inroads into the sector. The outbreak of the Covid-19 pandemic further pushed the pedal on the uptake of these technologies. The pandemic has ushered in a new normal, wherein the deployment of these technologies is no longer just a choice but rather a norm for these enterprises.
A look at the key technology trends that are transforming the manufacturing industry…
Technology uptake
Multiple technologies have emerged in recent years that have proven to be instrumental in driving the advancement of smart manufacturing. The following is a brief overview of some of these technologies and their role in the manufacturing domain.
- AI/ML: Of late, enterprises in the manufacturing sector are increasingly deploying AI/ML solutions in their factory operations in an effort to enhance their production capabilities. For instance, Mitsubishi Electric India is working towards embedding MAISART AI technology in its products and solutions such as collaborative robots and Edgecross, which will help in elevating the manufacturing experience. AI/ML enables innovative processing of data to translate the information into valuable insight. Further, deploying AI/ML solutions helps in reducing labour costs and increasing operational efficiency. AI coupled with data analytics has been a game changer for industry leaders. The quality of data and intelligence provided by the combination of both these technologies has empowered manufacturers to take better and quick decisions and identify potential improvement areas in the overall operations of the company. As per recent market estimates, manufacturing companies in India have been rapidly adopting AI solutions, with 93 per cent of business leaders claiming that AI is at least moderately functional in their organisation.
- Robotics: Robotic processing automation provides an opportunity to manufacturers to improve productivity and accelerate transformation. Companies are rapidly moving towards this technology by integrating robots with their human workforce to speed up their processes and double the output. This will help them realise higher returns on their investment. Further, robots will be able to direct their human resources to tasks that are best suited for their aptitude, and thus save time on repetitive tasks.
- AR/VR: In the manufacturing space, AR and virtual reality (VR) can not only support training and field services, but can also facilitate the efficient sale of products through virtual screening. For instance, IKEA launched an AR app, IKEA Place, which allows its users to visualise how the furniture will look by virtually placing it in their home. Meanwhile, Lenskart recently introduced the virtual trial room feature, which allows buyers to try on spectacles before they purchase them. Using 3D technology, buyers can click a selfie through their webcam, and pick out glasses that best suit their face. Similarly, Godrej plans to launch AR/VR technologies that enable customers to do a virtual walkthrough of the entire showroom. This technology is also being leveraged for training teams for various operations such as site installation work. Further, Gabler has integrated VR into its manufacturing processes to inspect production lines for potential hazards to ensure safety and quality.
- Additive manufacturing: Additive manufacturing is another key trend that is making waves in the manufacturing sector. The technology has the potential to transform the manufacturing processes with 3D printing. 3D printing can allow manufacturers to shift from mass production to full customisation and from centralised production to distributed production.
While the adoption of 3D printing was prevalent earlier also, it gained momentum in India after the disruption of industries due to Covid-19. In India, additive manufacturing techniques have helped manufacturers produce locally and invent new products on demand. Some manufacturing enterprises have already started using 3D printing to create product prototypes, reduce design-to-manufacturing cycle time and alter the economics of production. They are using 3D printing to streamline their mass customisation and build-to-order product strategies, and offer customised products and services. 3D printing is also being used to enhance production flexibility, thereby increasing sales and driving revenue growth. As 3D printing technology is additive, manufacturers are able to create a product with minimum material use.
- IoT: The manufacturing process is increasingly getting smarter, and IoT is playing a key role in this journey. IoT enables faster and more efficient supply chain operations, thus reducing the product cycle time; providing thoughtful forecasting, timely scheduling and routing; and ensuring mass customisation for products while maintaining sustainability. IoT also enables predictive maintenance, detecting irregularities and understanding their root cause, to prevent machine failure and production delays. For instance, JK Tyre has deployed the solution at its various manufacturing units for the identification of bottlenecks in the manufacturing line. The technology gives comparative insights into the performance of the manufacturing units. The IoT market is forecasted to grow at the rate of 13.81 per cent to reach $11.57 billion by financial year 2027, according to a report.
- Cloud computing: Cloud computing as a trend seems to have gathered steam during the pandemic when companies had to work remotely and operations had to be carried out while adopting safe distancing norms. Working in isolation was an alien concept that manufacturers had to get used to during the pandemic. Investing in cloud computing helped manufacturers build the infrastructure to scale operations and process information while working remotely. Industry experts have opined that cloud computing will remain a crucial technology in the industry even in the post-pandemic world. The technology will play a key role in integrating digital transformation and modern technologies for the sector with a predicted annual growth rate of 15 per cent, according to a report.
Regulatory landscape
Various initiatives by the government such as Vocal for Local, Atmanirbhar Bharat, Digital India and the production linked incentive (PLI) scheme are playing an instrumental role in expanding the manufacturing sector of the country. Make in India aims to promote investment, encourage innovation, enhance skill development, protect intellectual property and create best-in-class manufacturing infrastructure in the country. Further, the programme aims to raise the contribution of manufacturing in India’s GDP to 25 per cent by 2025. Meanwhile, the PLI scheme is aimed at providing incentives to companies on incremental sales of products manufactured in domestic units. With more companies expressing interest in the PLI scheme, India is on the road to becoming self-reliant in the manufacturing of goods for local and global markets. Collectively, these programmes are expected to provide a significant impetus to the Indian manufacturing sector and promote the use of new-age technologies as rapid growth of the sector can only be sustained by tech innovation.
Challenges and the way forward
While the adoption of new-age technologies is picking up pace in the manufacturing sector, enterprises are facing challenges when it comes to taking their digitalisation initiatives to the next level. For instance, the deployment of new technologies often entails the adoption of new business models and new strategies. Companies also have to rethink their processes to maximise new outcomes. In addition, the deployment of new-age technologies always has to be preceded with successful pilots, which not only require resources but also entail significant time investment. Talent scouting is yet another challenge faced by companies while deploying new-age technology solutions. The unavailability of a skilled workforce to create and implement new technology solutions is a key challenge facing these enterprises. In order to succeed and reap the full benefits of tech deployment, organisations have to recruit and train the right type of talent to effectively and efficiently run, manage and operate these solutions.
There is a need to address these challenges in order to facilitate the transition to connected factories. Smart factories will deploy cutting-edge technology tools to build integrated global manufacturing supply chains. Going forward, both the immediate and long-term future of the manufacturing industry will be defined by the development of cutting-edge technologies.
