The Age of Smart Manufacturing
We are in a new era for manufacturing, one that is widely referred to as smart manufacturing. Defined by its integration of connected technologies and increased production and usage of data, smart manufacturing is becoming the norm for today’s operators, especially those looking to keep up with supply chain, consumer, and product demands. McKinsey & Company has estimated that smart manufacturing offerings can boost productivity by 15% to 30% and forecasting accuracy by 85%.
Rate of Adoption
In its Smart Factories and Digital Production survey, the National Association of Manufacturers (NAM) Manufacturing Leadership Council concluded that the sector at large is steadily interested in integrating smart manufacturing elements and practices. According to NAM, “Nearly 69% of survey respondents said their M4.0 investments this year would continue unchanged from last year.”
However, adoption doesn’t quite meet expectations yet. “Only about 7% of manufacturers say they have digitized their factory operations extensively,” NAM reports in that same study. Meanwhile, 49% of respondents project that factories will be at least partially autonomous in the future.
AI and Smart Manufacturing
A large influence behind that consensus is likely the rise of AI. In combining AI with IoT and other emerging technologies, industries such as the automotive industry have already experienced a change in operations. For instance, Piaggio Fast Forward (PFF) incorporated a hands-free robotic flatbed into its facility, enhancing the efficiency of load capacity. BMW has also introduced robots into its manufacturing settings.
With the AI trend, we are also seeing the growing impact of Large Language Models (LLMs) in manufacturing. A piece written for the World Economic Forum highlighted that LLMs can help make AI integration more approachable for teams less familiar with its intricacies. They are also able to foster a collaborative relationship between human employees and AI features. The key moving forward, though, will be creating LLMs that are more customized to varying manufacturing and industrial environments and needs.
Sources:
● “How to unlock the secret to manufacturing success with a smart, connected data ecosystem” - Business Insider
https://www.businessinsider.com/sc/how-a-smart-data-ecosystem-can-unlock-the-secret-to-manufacturing
● “How Close Is the Smart Factory of the Future?” - Business Operations, National Association of Manufacturers
https://nam.org/how-close-is-the-smart-factory-of-the-future-30397/
● “AI and Robotics Power Auto Sector’s Smart Manufacturing Drive” - PYMNTS
● “Why Large Language Models are the future of manufacturing” - Andre S. Soon & Kyoung Yeon Kim, World Economic Forum