Productivity improvement is in the DNA of all manufacturers here in the UK. Yet, despite all the investment over the past ten years, UK productivity levels have only increased by seven per cent according to research published by PwC. This clearly underscores the persistent struggles the sector faces in driving substantial productivity gains. Andrew Kinder, Senior Vice President Industry Strategy, Infor, explains.
Throughout recent manufacturing history, strategies for improving productivity have been driven primarily by investment in physical automation – typically equipment, robotics and 3D printing – all designed to replace manual activities to drive increased efficiency and quality. While physical automation has undoubtedly served manufacturers well, the high cost of new facilities and equipment pose a significant barrier, especially for SMEs that may not have the necessary capital. This financial constraint can place them at a competitive disadvantage and limit their ability to scale and innovate.
However, there is hope. The manufacturing sector is on the cusp of a transformative era, driven by advancements in digital automation technologies. Manufacturers that embrace digital technologies such as the Internet of Things (IoT), robotic process automation (RPA), artificial intelligence (AI), machine learning (ML) and process intelligence (PI), and integrate these into their operations will not only dominate their industries but also lead the way in a new era of productivity.
Even better, the fusion of digital and physical automation, will unlock even more opportunities for growth, efficiency and competitiveness in the global market.
The evolution and challenges of physical automation
The journey of physical automation in the UK took a significant leap forward in the 1980s with the introduction of automated manufacturing systems at Nissan’s plant in Sunderland. Established in 1986, this plant quickly became one of the most advanced automotive manufacturing sites in Europe. Nissan integrated state of the art robotic systems and automated processes, enabling the efficient production of models like the Nissan Bluebird.
This advanced automation not only boosted production capacity but also set new benchmarks for quality and efficiency in the UK automotive industry, demonstrating the profound impact of automation on enhancing competitiveness and meeting consumer demands.
As manufacturing technologies continue to advance, new developments offer both exciting opportunities and unique challenges. Physical automation systems, in particular, have revolutionised the industry by delivering substantial benefits such as increased efficiency, higher productivity, and enhanced precision. These systems have enabled companies to streamline operations, reduce costs and meet high-quality standards. However, as companies seek to integrate these advanced systems into their operations, they must also navigate the complexities of ensuring flexibility and adaptability to evolving production needs.
Investing in new plants and equipment for full automation can be prohibitively expensive. These systems also require regular maintenance and expert operators which adds an additional layer of cost. And for some manufacturers, despite their often revolutionary impact, advanced physical automation systems are simply too expensive.
Boosting productivity with data and digital automation
Today, while much has evolved, the core manufacturing approach has mostly remained the same, with physical automation continuing to play a pivotal role. However, it is now increasingly underpinned by Industry 4.0 – the fusion of digital and physical automation. For example, digital technologies like IoT and AI boost automation and unlock new value in modern manufacturing.
Alongside computer-controlled high-speed lines, manufacturers are now heavily investing in robotics for automated assembly. For example, Computer Numerical Control (CNC) systems, 3D printers, conveyors, sorting systems, and smart sensors with IoT integration. These remain the first port of call when manufacturers look to invest and grow.
Another way to boost productivity is to use the one resource that manufacturers already have access to in abundance – data. Much of this data is already readily available from existing enterprise applications while additional data can be gathered from connected equipment within physical automation. Digital automation technologies, including robotic process automation (RPA), process intelligence, and artificial intelligence (AI), provide a comprehensive set of tools to drive productivity and efficiency. These technologies help reduce costs, improve quality, and automate decision-making processes, leading to substantial operational improvements.
RPA, for example, is a key technology in the digital automation toolbox and plays a crucial role in enhancing efficiency by automating repetitive tasks with speed and accuracy. By implementing RPA, manufacturers can streamline a wide range of processes across various functions, including finance, supply chain, customer service and production. Which, in turn, frees up employee’s valuable time, allowing them to focus on more strategic activities that drive forward business growth, as well as personal development and value.
Process Intelligence (PI), involves using data and analytics to monitor and analyse business processes and highlight the bottlenecks that contribute to inefficiency. Benchmarking processes such as order fulfilment across different sites or against industry standards helps pinpoint areas for improvement. All of this enables manufacturers to optimise business processes and enhance overall performance. For instance, identifying delays in order processing can lead to interventions that reduce lead times and improve customer satisfaction.
Artificial Intelligence – which continues to transform almost every industry – leverages technology to mimic human intelligence, enabling tasks such as data analysis, decision-making, and process automation. These applications have led to reduced downtime, higher product quality, and more efficient resource management. By anticipating equipment failures, minimising defects, and streamlining supply chains, AI has driven cost savings, enhanced operational efficiency, and increased overall productivity.
More recently, Generative AI (GenAI) has opened up new exciting possibilities in manufacturing. These models excel at concisely summarising vast amounts of data from different systems. This allows for faster decision-making and improved efficiency, helping businesses stay competitive. For instance, manufacturers can quickly identify non-profitable customer projects and be directed towards remedial measures, such as expediting supplier deliveries, deploying different sourcing strategies, or the use of different transport modes to reduce costs.
As a result of integrating these digital technologies, 63% of businesses have reported increased productivity. Digital automation isn’t always the first thought for manufacturers, yet it should be, especially for smaller businesses that may not have the capital to invest in physical automation. They can boost productivity by leveraging the data that they already collect. By implementing technologies like AI, ML, RPA, and PI, smaller businesses can automate repetitive tasks, analyse data for insight, and make smarter decisions.
Keys to Successful Automation
As with the deployment of any new technologies, there are hurdles to navigate. Earlier adopters point to the need to address data quality early on and putting data clean-up practices in parallel with digital projects. Others make reference to the need to integrate employees into the change management process and invest comprehensively in education and training. This should include establishing the vision and purpose of digitalisation efforts, offering programs that help employees upskill their digital skills, addressing any concerns or fears for job security, and promoting a culture of experimentation and innovation.
As we look ahead, advancements in automation technologies hold the potential for even greater efficiency and innovation, with the integration of human operators. Both physical and digital automation offer the most significant opportunities. Together, they hold the potential to transform productivity and operational agility.
The takeaway
For decades, investments in physical automation technologies have been the sole port of call for UK manufacturers looking to boost productivity. Those who are looking to take their businesses to the next level, must now leverage the data from their ‘smart factories’ to incorporate digital automation technologies including AI, ML, RPA, and PI to drive better and faster decision-making.
The combination of physical and digital automation technologies with human operators creates the perfect environment where technology enhances human capabilities and vice versa. This leads to a more efficient, productive, and innovative workplace that drives overall productivity, competitiveness and profitability. As manufacturers navigate the challenges and opportunities of this new era, those who successfully integrate these elements will not only dominate their industries but will also lead the charge into a new era of manufacturing.
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