Successfully embracing Industry 4.0: don’t forget the people aspects!

18 Jan, 2025

    Introducing Industry 4.0

    The term “Industry 4.0” refers to the many ways in which manufacturing companies (both OEM players and their suppliers) can improve productivity, quality, cost-efficiency and flexibility of their production facilities on the basis of actionable insights harvested from analysis of real-time data. “Smart factories” with cyber-physical systems and high levels of “intelligent automation” are a key element of Industry 4.0; adoption is expected to transform industrial value chains worldwide.

    Another key premise of Industry 4.0 is that actions must be triggered by real-time data, relying less on predictive models or human judgment. Put differently, supervisors and factory managers will need to rely more on data points gathered from machines instead of relying on an experienced shop floor worker saying “It’s time to replace this tool because it looks worn out” or “The toolhead has run for X hours, which is when the manufacturer recommends replacement”.

    Addressing people aspects is crucial to realizing the benefits of Industry 4.0

    A manufacturing enterprise adopting Industry 4.0 well will derive substantial benefits. But as in the case of most transformation programs, a lot of attention is paid to the “hard” aspects- investments in shop floor automation, process redesign, information technology etc. But what will be crucial is how well companies handle the “soft aspects”. Technology can give your business data and insights. But what you do with those insights is what will make a real difference- and that ultimately depends on your people. This is an important point to keep in mind for companies in the manufacturing sector on journeys to adopt “Industry 4.0” ways of thinking and doing.

    If the mindset of workers, supervisors and factory managers is not changed, they will continue to work in old ways- and that will lead to sub-optimal results. Imagine printing out e-mails, dictating responses and having a secretary type it back as an e-mail! (Yes, we all know people who actually did this 25 years ago, but it is unthinkable in today’s context).

    How successful your enterprise will be in harnessing achieving the transformative potential of Industry 4.0 will depend significantly on how well you implement these “people actions” in your shop floor or factory:

    • Starting the process of mindset change before implementation begins; explaining why and how this is a better way of working and is not meant to cut down staff.
    • Train operators on the new ways of working; explain that the way they operate the tool or machine will not change, but that they will need to pay attention to alerts triggered by the solution.
    • Explain that the data will supplement their own judgment- rather than mistrust hard data, encourage them to “compete” and see if their judgment and experience are supported by the data. Get them to act on the basis of data-driven alerts and not assume false positives because they don’t “feel” that the alert is reliable.
    • Manage fears of job losses due to higher levels of automation by highlighting how superior quality and productivity has the potential to open up revenue opportunities, in turn creating demand for more workers.
    • Build trust not just with operators but also with others in the ecosystem (e.g., suppliers), so they too understand how much more important it is for them to supply quality materials or components on time.
    • In the new landscape where a lot more data is generated, captured and stored by cyber-physical systems, employees must be trained to be extra vigilant about use of unauthorized pen drives etc.
    • This kind of transformation is not just about shop floor staff; HR must sensitize managers and leaders on how governance, goals and even their roles will change in the new environment. They may need to be trained on emotional intelligence, communication, goal-setting, giving feedback etc.
    • Policies relating to performance management, rewards etc. will need to be redefined.

    Here are three specific tips to help your organization reap the benefits of embracing Industry 4.0:

    • Implement a process to gather stakeholder concerns even after the initial training. Use this feedback to tweak the relevant dimensions of the solution.
    • In every team, designate change agents who address questions/concerns, encourage mindset change and come up with new use cases.
    • Institute a system to reward fast learners as well as employees who suggest new use cases, so that incremental gains can be made.

    Not managing people aspects proactively can derail realization of your ROI targets

    As part of the shift to Industry 4.0, the entire culture of the organization will undergo a change. Employee resistance to the new ways of working can delay the time it takes to realize productivity gains and/or cost reductions. Opportunities for higher revenue may be lost due to production delays caused by longer setup times, higher defect rates, or inefficient inventory management. To minimize the risk of the expected ROI not being realized, leaders must consciously pay attention to the people and culture aspects of the transformation.

    Choosing the right IoT solution for your factory need not be a struggle

    18 Jan, 2025

      Selecting software solutions for a business enterprise has always been a difficult decision for many reasons, including the following:

      • Stakeholders may not understand the technology aspects, or appreciate how the solution will tangibly improve competitive advantage (i.e., reduce costs or time to market, improve collaboration, decision-making or operational excellence, get closer to customers etc.).
      • The existing technology landscape may impose certain constraints, which, if not considered before the decision is made, may lead to additional costs and/or delays in implementation.
      • In-house teams may be unfamiliar with newer technologies, and hence end up relying on the vendor’s assertions and assurances to a much higher degree than desirable.
      • The solution may not possess all the functionalities the enterprise needs.
      • Users may resist using the software because it represents a major shift from their zones of comfort. Inadequate training of users before roll-out may increase resistance.
      • In the absence of clear business goals that the software is expected to deliver, assessing ROI and project success becomes much harder and more subjective.

      The above apply just as much to large companies as to MSMEs. And they are as relevant for selecting factory-level IoT solutions to drive your company’s Industry 4.0 strategy as they are to selecting other functional solutions.

      Based on our experience of working with manufacturing companies, here are some tips for you, as a decision-maker or influencer in selecting IoT solutions for your factory, to ensure that you do, in fact, select the best available solution.

      • Do not fear IoT because it is a new concept or captures data from non-computers. Remember that CNC machines today probably have as much processing power inside them as computers did at the turn of the century.
      • Start with a clear overall vision of where you want your business to be in say, 5 years, including what role your manufacturing facilities and “Industry 4.0” will play in getting there. Articulate how far you want to go on the “Industry 4.0” journey in the next 3 years or so. This vision must be clearly-articulated and must be signed-off by the C-suite.
      • Identify specific outcomes you seek and map them to available solutions before selecting one. Working with use cases can give you a more realistic basis to assess “fit” of a solution with your objectives and vision.
      • IoT adoption need not be long-drawn, expensive projects. Start small, and scale up gradually.
      • All else being equal, select solutions that are more intuitive to understand and easier to use; this will enhance adoption by various stakeholders. But make sure that the architecture is flexible and the solution is built using modern technology.
      • Right from the start, assess the solution for scalability, ease of implementation (including likely disruption to operations)and data security (including where data will be stored).
      • Based on agreed priorities within the company and factory, implement solution pilots for one or two specific use cases. Use these pilots to iron out wrinkles such as enhancing buy-in (especially amongst supervisors and workers), refining performance metrics and what data points will objectively help in measurement, and setting up protocols to use the alerts that the pilot solution will throw up.
      • Based on how well the solution is able to deliver on the promised outcomes, assess its scalability across your other assembly lines and factories. Implementing multiple IoT solutions will only complicate matters.
      • Share the results with all the stakeholders, including workers. If the outcomes are not as expected, work with the solution provider to analyse root causes and work with the relevant stakeholders to ensure that they are fixed. Identify “champions of change” in every line and shift, who are jointly accountable for improving outcomes.
      • The pricing aspect of solutions is important too. Be willing to try innovative pricing models such as pay per piece or outcome based- e.g., a lower fixed price combined with a % of the money saved.
      • Plan for user training in collaboration with the vendor. Involve experts from the vendor organization for the actual training so that changes to the implementation can be made if necessary to simplify things for users.

      Successfully implementing IoT solutions depends on more than just the right technology investments. Realizing the targeted benefits depends on the human element- creating a conducive workplace culture, promoting buy-in amongst all stakeholders and frequent, open communication.

      We’d love to hear about your IoT adoption journeys, so do share them via comments or write to us.

      Improving your Machine Uptime with sfHawk

      17 Jan, 2025

        Enhancing Machine Uptime with sfHawk: A Smart Factory Solution.

        In the fast-paced world of manufacturing, machine uptime is a critical factor that directly impacts productivity and profitability. Every minute a machine is down, your production schedule, efficiency, where sfHawk comes in—a smart factory solution that not only enhances machine uptime but also optimizes overall equipment effectiveness (OEE), production quality control, and machine productivity.

        The Importance of Machine Uptime

        Machine uptime refers to the amount of time that a machine is operational and capable of performing its tasks without interruptions. High uptime is synonymous with high productivity, as machines are kept running smoothly and efficiently, reducing the need for costly repairs and minimizing delays in production. However, achieving consistent machine uptime requires a sophisticated approach to machine monitoring and maintenance.

        How have Smart Factories helped in the US?

        Over the past decade, the manufacturing landscape in the United States has undergone a significant transformation, largely due to the adoption of smart factory solutions. These technological advancements have led to remarkable improvements in machine uptime across various industries.

        A notable 2021 report by Deloitte shed light on this trend, revealing that manufacturers who implemented Industrial Internet of Things (IIoT) solutions experienced substantial benefits. These solutions, which include real-time monitoring and predictive maintenance capabilities, resulted in an impressive reduction in downtime – up to 25% in some cases.

        The impact has been particularly pronounced in sectors where machine uptime is crucial, such as automotive and aerospace. In these industries, companies leveraging smart factory technologies observed a 15% increase in overall equipment effectiveness (OEE). This metric is a key indicator of production efficiency and reliability.

        What’s driving these improvements? The answer lies in the integration of cutting-edge technologies. Advanced sensors, artificial intelligence-powered analytics, and cloud platforms work in tandem to provide real-time insights into machine performance. This allows for proactive interventions, effectively minimizing unplanned failures and optimizing production processes.

        In essence, these smart factory solutions are revolutionizing the way manufacturers approach machine maintenance and productivity. By enabling data-driven decision-making and predictive capabilities, they’re helping industries stay ahead of potential issues and maintain peak operational efficiency.

        How sfHawk Boosts Machine Uptime

        sfHawk’s cutting-edge machine monitoring system offers real-time insights into your machines’ performance. By continuously tracking and analyzing critical parameters such as machine health, operator efficiency, and tool conditions, sfHawk helps prevent unexpected downtimes and enhances productivity.

          1. Predictive Maintenance: With sfHawk’s smart sensors and data analytics, you can implement predictive maintenance strategies that forecast potential machine failures before they occur. This proactive approach significantly reduces unplanned downtime, ensuring that your machines stay operational longer.
          1. Real-Time Monitoring: sfHawk provides live updates on machine status, allowing you to address issues as they arise. This real-time visibility into your shop-floor operations means you can take immediate action to resolve any potential problems, ensuring maximum uptime.
          1. OEE Optimization: Our platform is designed to optimize OEE by balancing machine availability, performance, and quality. By improving uptime and reducing cycle times, sfHawk enables your factory to achieve higher OEE, translating into more efficient production and better quality control.
          1. Improved Production Quality Control: Uptime isn’t just about keeping machines running—it’s also about maintaining consistent production quality. sfHawk’s intelligent monitoring ensures that machines are operating within optimal parameters, minimizing the risk of defects and ensuring that your products meet the highest standards.

        Predictive maintenance with sfHawk

        sfHawk offers a comprehensive preventive maintenance solution designed to optimize machine performance and reduce downtime in manufacturing environments. This system integrates several key features to provide a holistic approach to equipment maintenance and monitoring.

        At the heart of sfHawk’s solution is a central dashboard that offers both overview and detailed insights into maintenance tasks across all machines. This dashboard provides real-time visibility into completed and pending maintenance activities, allowing managers to quickly assess the maintenance status of their entire fleet. Users can easily track how many maintenance tasks have been performed on each machine and identify any overdue or upcoming tasks, ensuring that no critical maintenance is overlooked.

        The system also incorporates advanced sensor and temperature monitoring capabilities. By continuously tracking various parameters, sfHawk can detect anomalies or trends that might indicate potential issues before they escalate into major problems. This proactive approach helps prevent unexpected breakdowns and extends the lifespan of equipment.

        Another crucial feature is spindle load monitoring. This functionality is particularly valuable for CNC machines and other equipment where spindle performance is critical. By monitoring spindle load in real-time, sfHawk can alert operators to potential overloading or underperformance, helping to maintain optimal cutting conditions and prevent premature wear or damage.

        Key pointers:

          1. Central Dashboard:
            1. Provides overview and detailed views of maintenance tasks
            2. Shows completed and pending tasks for each machine
            3. Enables quick assessment of fleet-wide maintenance status
          2. Sensor and Temperature Monitoring:
            1. Continuous tracking of various machine parameters
            2. Early detection of anomalies and concerning trends
            3. Helps prevent unexpected breakdowns
          3. Spindle Load Monitoring:
            1. Real-time monitoring of spindle performance
            2. Alerts for potential overloading or underperformance
            3. Maintains optimal cutting conditions and prevents premature wear

        These features work together to create a robust preventive maintenance system, helping manufacturers minimize downtime, optimize machine performance, and extend equipment lifespan.

        Why Choose sfHawk?

        sfHawk isn’t just a machine monitoring system—it’s a comprehensive smart factory solution that empowers you to take full control of your production floor. By enhancing machine uptime, optimizing OEE, and improving production quality control, sfHawk helps you unlock new levels of efficiency and productivity.

        In a competitive manufacturing environment, every second counts. With sfHawk, you can ensure that your machines are performing at their best, your production processes are streamlined, and your business is always ahead of the curve.

        Conclusion

        In today’s fast-paced manufacturing environment, every second of machine uptime counts. With sfHawk’s advanced smart factory solutions, you can minimize downtime, improve productivity, and stay ahead of the competition. Whether you’re aiming to boost your Overall Equipment Effectiveness (OEE) or enhance production quality, sfHawk gives you the tools to take full control of your operations.

        Don’t wait until the next unexpected breakdown costs you time and money. Get in touch with our team today to schedule a demo and see how sfHawk can revolutionize your factory’s performance. Let’s work together to ensure your machines are always operating at their peak.

        References:

        https://www2.deloitte.com/content/dam/Deloitte/de/Documents/deloitte-analytics/Deloitte_Predictive-Maintenance_PositionPaper.pdf https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/a-manufacturers-guide-to-generating-value-at-scale-with-industrial-iot

        State of adoption of Industry 4.0 in India

        17 Jan, 2025

          Time flies! It’s ten years since the term “Industry 4.0” was first used by the German government to articulate its strategy to enhance the competitiveness of the country’s manufacturing industry. The concept gathered momentum after it became a key theme at the World Economic Forum in 2016. Adoption in India has been slow thus far, but that will change soon.

          The rise of Industry 4.0

          The last decade also witnessed the emergence and maturing of a wide range of digital technologies, computing capabilities and application areas. These include AI and Machine Learning, Robotics, 3D Printing, Data Sciences and Analytics, Cloud, IOT, Augmented Reality etc. While data processing and computing capabilities have grown exponentially, unit costs have decreased just as rapidly.

          It is the confluence of the above-mentioned trends that has led to the thinking behind Industry 4.0 and its cousins, “digitalization” and “4th Industrial Revolution”, make its way into the C-suite and documented strategies of many companies worldwide. In India too, I4.0 has started gathering momentum in the last couple of years, although the rate of adoption is still relatively slow.

          Indian companies too will increase the pace of I4.0 adoption in the next year or two as a result of both internal and external imperatives. For instance, in the automotive industry, as global players embrace I4.0, India-based suppliers will need to ensure that they keep pace with rising expectations around traceability requirements and quality norms. In addition to improving asset utilization, IoT solutions can also help companies address the challenge of shrinking supplies of skilled human resources for shop floors and assembly lines.

          As companies face a squeeze on margins (something that the ongoing pandemic has further compounded), the competitive pressure to reduce costs sustainably will only increase. In industries such as manufacturing, logistics and construction, adopting Industry 4.0 paradigms will help cut down waste, improve productivity and reduce carbon footprint.

          Adoption in India remains limited

          There is reasonable awareness amongst Indian manufacturing companies around how Industry 4.0 will be a game-changer for early adopters as well as adoption intent.

          The government of India too has taken steps to encourage adoption of I4.0. In addition to an enabling framework, the Department of Heavy Industries has set up Samarth Udyog Bharat 4.0 (Smart Advanced Manufacturing and Rapid Transformation Hubs) to create awareness and propagate an ecosystem of technology solutions. The rollout of 5G communication protocols in the next year or two is further expected to accelerate the shift, as it will make the use of IIOT more viable and more efficient. However, actual activity towards adoption remains constrained by many factors such as these:

          • Limited understanding of Industry 4.0 and its value as an important step towards long-term transformation of the entire business (and not just from an operations angle);
          •  Inadequate clarity around the expected business value and prioritization (based on what problems need to be solved);
          • Appreciation of dependencies caused by existing systems, architectures, and availability of good quality data of the desired granularity;
          •  Concerns around data security;
          •  Lack of a detailed plan and a well thought out long-term roadmap; and perhaps above all,
          • The perception that adoption of Industry 4.0 solutions is necessarily a large and complex program that requires massive investments (with unclear RoI). This reinforces the belief that I4.0 is only for the larger companies or those that have deep pockets- something that is erroneous.

          In recent days, we at sfHawk are seeing a perceptible shift in gears. Large players as well as SMEs are engaging more willingly and with higher levels of seriousness than before, to understand how Industry 4.0 solutions can help them. The scope of our conversations with automotive OEMs and auto component suppliers has expanded from production monitoring or OEE improvement to enabling traceability, tool cost optimization and predictive maintenance.

          Manufacturing companies may not always possess the required levels of technical expertise to efficiently integrate Industry 4.0 solutions. That is why we at sfHawk encourage companies to articulate their problem statements in the form of easily-understood use cases. We then work with them to provide solutions for those use cases. The value is demonstrated using pilots that can then be scaled up. We believe that companies must look for solutions that, in addition to addressing their immediate needs, are scalable to address future needs as well.

          We know that large-scale shifts such as adoption of Industry 4.0 paradigms are disruptive to the culture of the organization. This is especially true for manufacturing businesses in India, where there has been long-standing distrust between owner-managers and workers. Adopting the right Industry 4.0 solutions will lead to a reduced dependence on human judgement. This reduces the risk of human errors of omission or commission that, in turn, increase setup time or material wastage. However, if the buy-in of workers is not gained by explaining the rationale for embracing I4.0 and benefits to all stakeholders, adoption will only become more difficult. This is an important aspect that business leaders must factor into their plans to embrace I4.0.

          If you have additional insights to share based on your I4.0 experience, we’d love to know: please post a comment or write to us.