Six steps to Smarter Factories

1. Define your terms
It’s important that all stakeholders understand precisely what they are seeking to achieve from the outset. Smart factory and digitalisation are commonly used terms, but they can mean different things to different people. Indeed, there is a whole lexicon of terminology associated with digitalisation and Industry 4.0 and it can vary by country. In the UK, for example, the Made Smarter government-backed review coined the phrase Fourth Industrial Revolution. Therefore, having a common understanding of precisely what is meant by each term is needed to ensure all stakeholders are working to the same objective.

2. Don’t take on too much at once
It’s important to start your smart factory journey with easily-understood projects that can be scaled up into larger projects when ready. Taking a step-by-step approach ensures factors such as networking, machine-to-machine communications and integration with legacy systems can all be considered and addressed in a timely and cost-effective way. Digitalisation is a journey that can best be achieved when the organisation has acquired the necessary knowledge, confidence and experience – so ensure all elements are in place before over-committing resources.

3. Have a clear goal
Connecting devices and machines to each other and integrating them with business process software is nothing new, but unless there’s a clear vision and strategy for implementation, it can soon become a money drain. Are you trying to solve a problem, or make the most of new opportunities? And who is driving the project – is it a bottom-up or a top-down process? One of the best ways to prepare for implementation is to appoint an internal Industry 4.0 ‘champion’ – someone who manages the cross-functional strategy and team, bringing together the relevant technical and business skills.

4. Team buy-in
Business transformation means change, which makes employees nervous. Reasons include fear of the unknown; belief that there is no personal reward; an existing climate of distrust; fear of failure; and worries about job security. The challenge for leadership is to make sure these concerns are addressed and that appropriate support and training is available so that all employees are equipped for the journey ahead. Everyone should understand and accept the need for the change, and know how they are contributing to it. A clear communication strategy and inclusion of all stakeholders (including IT, human resources, production etc.) is imperative to achieve buy-in from the start.
 
5. Establish the business model
Industry 4.0 not only means a change in technologies, it also means creating new business models. A clear business model acts as a primary means of analysis, and provides clear gateways for progress.  For stakeholders including employees, customers, suppliers, etc. the use of a business model helps to drive understanding of the process, what is important and why.

6. Are you ready?
Digital infrastructure can underpin a wide range of products and manufacturing activities, with distinct levels of maturity and it is important to know your starting point. For example, machine-to-machine communication can vary from fieldbus interfaces, to machines that access the internet, and web services with M2M software. In relation to products, the assessment may include integrating sensors, connectivity, functionalities for data storage and exchange, and monitoring for performance assessment. Assessment tools and consultancy services are available to understand current levels and help set readiness and maturity targets for the future.

Evolution, not a revolution
Increased industrial digitalisation will undoubtedly have a positive impact on UK manufacturing productivity, but will our international competitors move faster and further? The roadmap for Industry 4.0 implementation is over 20 years, so this is a marathon not a sprint – but we must enter what will inevitably be a race to achieve our goals and deliver smarter factories. Engagement with the technology and skills development are clear business priorities for future competitiveness.

For further steps on putting Industry 4.0 into practice please download Festo’s whitepaper Practical Tips for Industry 4.0 implementation from: www.festo.co.uk/I4practicaltips.