The benefits of digitisation for manufacturers are significant, so what’s holding so many back?

Posted on 5 Nov 2024 by James Devonshire

In June 2024, Zebra Technologies released the findings of its 2024 Manufacturing Vision Study. Among the headlines was the revelation that just 15% of European manufacturers have real-time production visibility.

To dig a little deeper into the study and uncover some of the reasons behind why European manufacturing organisations are seemingly lagging behind when it comes to digital adoption, The Manufacturer sat down with Tom Bianculli, Chief Technology Officer, Zebra Technologies.

The adoption of real-time visibility in manufacturing

In the face of a growing number of challenges, whether it be geopolitical strains, skills gaps and/or ongoing supply chain disruption, it is fundamental for manufacturers to work smarter and take advantage of the digitalisation opportunities that are available.

Yet just 15% of European manufacturers, including the UK, have real-time monitoring across their manufacturing process. Furthermore, 79% of factory workers still rely on paper-based documentation, which does not lend itself to the fluid manufacturing production lines of today.

As Tom emphasised, this is particularly concerning given the complexities of modern manufacturing and the need for real-time visibility across increasingly diverse and fragmented supply chains.

“Visibility is fundamental to solving the challenges manufacturers face,” said Tom, stressing the importance of optimising operations through knowing precisely where materials are at any given time.

It’s a situation that is exacerbated by customers increasingly wanting greater product customisation. This impacts manufacturers’ ability to forecast and predict, potentially leaving them unable to meet demand.

“The only way manufacturing organisations can optimise their operations and take control of their supply chain is through real-time visibility,” Tom added.

Europe’s digital adoption barriers

So why are European manufacturers behind the curve when it comes to digital adoption? Tom attributes the gap to several factors.

He explained that Asia, particularly China, has benefited from strong government support and policies promoting technological adoption. “There’s a built-in cultural focus on continuous improvement,” he noted, adding that this has allowed Asian manufacturers to quickly implement innovations defined by Industry 4.0, many of which originated in Europe but have been capitalised upon more effectively in Asia. As Tom pointed out, “Europe led the way in Industry 4.0,” referencing the continent’s early role in integrating the Internet of Things (IoT) and creating interconnected manufacturing systems.

Tom also addressed the perceived barriers manufacturers face when adopting digital technologies. He highlighted that 84% of European manufacturing leaders, by their own admission, struggle with the rapid pace of technological innovation. “It’s not just about the pace but also about the change management required,” he said. Many manufacturers hesitate because they worry about the risks associated with transitioning from familiar, functional systems to newer, more efficient technologies. There’s often resistance due to fear of the unknown and the risks to individual careers if digital transformation projects don’t yield the desired results.

Collaboration and joint roadmap planning between IT and OT teams are also crucial for successful digital transformation.

As Tom explained, “IT and OT teams often have different priorities, budgets and resources, which presents challenges when it comes to implementing digital technologies.

“The best solution is to get IT and OT teams together early and aligned on joint roadmap planning to drive greater transparency and better outcomes,” Tom said.



The benefits of digitisation

Despite these barriers, the benefits of digitisation are clear. Tom outlined Zebra’s “Connected Factory” framework, which focuses on three value drivers: actionable visibility, optimised quality, and workforce augmentation. He highlighted the impact of these technologies, sharing that they have “improved cycle time by up to 50%” and boosted production capacity by three times in some cases.

Tom outlined how machine vision has automated inspection processes, improving testing speeds and accuracy.

“By using cameras that take advantage of artificial intelligence and machine learning to automate the inspection process, testing speeds can be substantially increased,” Tom said.

“Moreover, we’ve managed to achieve 99.95% accuracy for some clients, something that would be virtually impossible to achieve using conventional mechanisms,” Tom said, showcasing the potential for digital technologies to transform manufacturing efficiency.

Manufacturing visibility in action

Leading global supplier of technology and services, The Bosch Group (Bosch), wanted to improve its process quality and traceability of products by further automating its inspection process. One specific goal was to reduce the number of machined parts requiring post-production manual inspection.

In just one month, Zebra had implemented a new vision system, a tremendous achievements for a solution of such complexity.

As a result, Bosch has been able to reduce its false reject rate to just 5% for a production volume of 7,000 parts per day, a significant improvement over previous solutions.

Find out more by downloading the full Bosch case study.

The data dilemma

Tom Bianculli, Chief Technology Officer, Zebra Technologies
Tom Bianculli, Chief Technology Officer, Zebra Technologies

One of the sticking points for manufacturers is the massive amount of data generated by these technologies. Tom acknowledged the challenges of data storage, security, and cost, especially under strict European regulations, which stipulate that personally identifiable information cannot be stored.

The big question surrounding data is value. After all, regardless of where it is kept, there is an associated cost with storing data, one that increase exponentially as it grows. “If I’m not going to extract value from that data, then why am I storing it?” Tom asked, underscoring the importance of a strategic approach to data management.

Tom suggested that the key to successful data utilisation lies, once again, in improved collaboration between IT and operational teams. “The best implementations start from the use case and work backward to identify the necessary data,” he said, advocating for an integrated approach to technology deployment.

Addressing legacy equipment and skill shortages

Tom mentioned that legacy equipment isn’t always as big a barrier as people think; it’s often more about the mindset of “if it’s not broken, don’t fix it.” While legacy equipment can be functional, the need for modern skill sets, such as those required for machine vision and AI-based inspection, becomes crucial for scalability.

To overcome these barriers, manufacturers need a comprehensive strategy involving technology, skills development, and partnerships, according to Tom. “Legacy thinking, skill sets, and infrastructure combine to hamstring manufacturers,” he explained, emphasising that a shift in mindset and collaboration with technology partners is essential for progress.

He also highlighted the importance of building a talent pipeline in manufacturing. “Every company, in some regard, has become a tech company,” he said, stressing that attracting tech talent is crucial. Zebra’s approach includes leveraging partnerships, such as with Google Cloud, to upskill teams and bring new capabilities into their operations.

Tom emphasised the importance of a holistic approach, stating, “I think that we’re going to definitely continue to see that shift in technology capability, particularly in the AI machine learning, the automation space, into manufacturing.”

As Tom concluded, “you can only drive so much change so fast, but you definitely need to lean on partners like Zebra, and take advantage of our entire partner ecosystem to go and make those changes happen.”

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For more insights, download the full 2024 Manufacturing Vision Study.

For more articles like this, visit our Digital Transformation channel