Though Industry 4.0 is at the nascent phase in India, government’s Make in India program and Smart City Mission has created ample opportunities and incentives to develop Smart Manufacturing ecosystem in India. Smart Manufacturing is a powerful disruptive force with the potential to restructure the current competitive landscape and produce a new set of market leaders, says Ashish P Dhakan. 

 

The manufacturing technologies and processes have gone through a big change since the time of industrial revolution. The manufacturing plants have evolved from Industry 1.0 to Industry 4.0 as new technologies and power sources emerged over the period of time. The key differentiating factors among Industry 1.0, Industry 2.0, Industry 3.0 and Industry 4.0 are adoption of innovative technologies, new processes and alternate power resources in that period.

 

In essence, Industry 4.0 describes the trend towards automation and data exchange in manufacturing technologies and processes which include cyber-physical systems (CPS), the Internet of Things (IoT), Industrial Internet of Things (IIoT), cloud computing, cognitive computing and artificial intelligence, etc.

 

The new manufacturing concepts include, Smart Manufacturing, Smart Factory, Lights Out (manufacturing) also known as dark factories and IIoT.As they say, necessity is the mother of invention, reason for the changes can be attributed to innovations that have helped to overcome the challenges faced by the each phase of manufacturing evolution. The key reasons behind these changes are, growing need for smart technologies, innovations in process evolution, sustainability best practices, social and economic factors. 

 

On a smart path

India is at the nascent phase as far as Smart Manufacturing is concerned, but government’s Make in India program and Smart City Mission has created ample opportunities and incentives to develop Smart Manufacturing ecosystem in India.

 

According to a study by Deloitte, India is expected to jump six ranks to No. 5 in the 2020 Predicted Manufacturing Competitiveness. Interestingly, India’s manufacturing labour cost in 2015 stood at $1.72/hour compared to $37.96/hour for US. Even China’s cost is almost double that of India. The Indian government has set an aggressive target of increasing the manufacturing share to 25 per cent of GDP by 2025. 

 

For India, this could also be a start of Industrial Revolution 4.0. The convergence has already started between digital and manufacturing. If we see some industries, it is already visible in Internet of Things, sensors, robotics, predictive analytics, etc. The cost of production can come down heavily with the help of 3D printing and automated real-time processes in manufacturing. 

 

The new opportunities are abound in the Industry 4.0 and SMEs need to seize them. This comes as the pace of technological change is happening at an unprecedented rate in human history, where breakthroughs such as big data analytics, artificial intelligence and the Internet of Things come together to disrupt traditional business models and to create new ones.

 

The advantages offered by Industry 4.0 are as follows:

However, there are also challenges: 

Smart Manufacturing is a powerful disruptive force with the potential to restructure the current competitive landscape and produce a new set of market leaders. Companies that are slow to adopt new technologies and processes could be left behind.

 

Understanding the concept 

Smart Manufacturing is a broad concept; it is not something that can be implemented in a production process directly. It is a combination of various technologies and solutions, which collectively, if implemented in a manufacturing ecosystem, is termed smart manufacturing. We call these technologies and solutions “enablers”, which help in optimising the entire manufacturing process and thus increase overall profits. Some of the prominent enablers in the current market scenario include, artificial intelligence, Blockchain, IoT, IIoT, robotics, condition monitoring and cyber security.

 

The new age technologies are enabling solutions that are adding value to the process in terms of production time, cost, energy savings and wastage. The IoT and IIoT solutions are providing mission critical security and safety to the enterprises.

 

The concept of artificial intelligence is old, but it is now finding applications in manufacturing ecosystems. In the last 5-6 years, there has been a tremendous increase in interest and investment regarding AI in manufacturing. These have collectively made it possible for AI to be implemented in manufacturing shop floors. Earlier manufacturing was being done by low-cost countries where it is very difficult to justify the high cost of implementation of AI in their manufacturing ecosystems. The artificial intelligence (AI) in manufacturing market size is expected to grow to $ 4,882.9 million by 2023, at a CAGR of 52.42 per cent during the forecast period. 

 

The manufacturing process can be time-consuming and expensive for companies that don’t have the right tools in place to develop their products. In recent years, machine learning (ML) has become more prevalent in building and assembling items, using advanced technology to reduce the length and cost of manufacturing. Using ML in the assembly process helps to create what is known as smart manufacturing where robots put items together with surgical precision, while the technology adjusts any errors in real time in order to reduce spillage.

The use of ML algorithms, applications and platforms can completely revolutionize business models by monitoring the quality of its assembly process, while also optimizing operations. TrendForce estimates that smart manufacturing is slated to grow at a rapid rate in three to give years. The firm predicts that the smart manufacturing market will be worth over $ 200 billion before the end of the year and grow to $ 320 billion by 2020, marking a projected compound annual growth rate of 12.5 per cent. 

 

Security in connected, automated factory

The Connected Enterprise (Connected Automated Factory) begins with the convergence of enterprise-level information technology (IT) and plant level operations technology (OT) systems. Merging these historically separate systems into a single, secure network architecture provides a seamless foundation for real-time connectivity and information sharing. 

 

The way in which factories operate is changing fast in the face of powerful economic and technological forces. The most agile factory equipment manufacturers will thrive in this fast-changing environment, developing increasingly connected and intelligent systems which help factories become more flexible and safer, and maintaining security while extending connectivity. 

 

Robotics: The productive arm of manufacturing

Robots are valued in the manufacturing industry for a number of attributes: reliability, predictability, precision, repeatability, and imperviousness to hazardous environments. Robots come with certain limitations when we compare them with humans. Unlike humans, robots lack the ability to respond to unexpected circumstances and improve performance based on previous experience. 

 

Existing uses of industrial automated devices involve repetitive programmable tasks including material handling, metal fabrication, spot welding, spray painting, and palletizing. The application of robots in standard industrial tasks can bring about dramatic results for manufacturers. In addition to becoming less expensive and complicated, next generation of robots would be able to perform a great number of tasks under less structured environment. 

 

Sustainability: A key aspect of Smart Manufacturing facility

Smart Manufacturing has introduced alternative energies that are cheaper and easier to monitor than ever. Along with the cost-saving benefits, the source added that making efforts to go green is great for public perceptions of the company. While many businesses are adapting sustainable practice in their factories for the production improvements, manufacturers also need to be aware of the way laws and regulations are impacting changes to the industry. Practices like the carbon tax are becoming more common as government agencies try to make more sustainable manufacturing processes mandatory.

 

With adoption of Industry 4.0, India has an opportunity to turn the tide in its favour as Industry 4.0 will help India in evolving as a hub for manufacturing quality products at low cost when compared to other countries. In this context Skill India program is very important. The advanced automation will not necessarily lead to job losses, but experts are divided on the issue.

 

A number of experts believe that adoption of Industry 4.0 will result in increased use of automation and robots in the shop floor. Given that these robots will be capable of performing tasks multiple times with high levels of accuracy and within shorter time duration than humans, robots will act as an efficient replacement for labour. The quantum of job loss, however, is expected to vary with country, industry and employed levels of automation. 

 

The experts on the other end of the spectrum believe that the use of Industry 4.0 technologies will not result in job loss, if not an increase in employment. The basis behind such a statement is the fact that Industry 4.0 will result in an increase in labour productivity and in the quality of the products manufactured. As a result, the demand for quality products manufactured will increase, rendering companies with no option, but to increase capacity to meet the demand. Employees who were rendered jobless due to elimination of low-skilled jobs need to be re-skilled or up-skilled to make them ready for the new requirements. 

 

Importance of Smart Manufacturing for Make in India

In its pursuit to foster Smart Manufacturing infrastructure in India, the Make in India initiative is spearheading wider adoption of ‘Industry 4.0’ with Industrial Internet of Things (IIoT) technology. One can hope that ‘Smart Manufacturing’ proliferation in the industries will give a global competitive edge to the ‘Make in India’ program. Banking on India’s strength in information technology and a large workforce of IT professionals, the transformative journey of manufacturing through Industry 4.0 has already begun in the country. 

 

Smart Manufacturing will definitely give a boost to the Make in India program by offering high return on capital employed (ROCE) along with other environmental and technology advantages. The National Skill Development Council (NSDC) and NASSCOM can contribute to the cause of Smart Manufacturing by conducting various training and skill development programs.

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Blurb

The concept of artificial intelligence is old, but it is now finding applications in manufacturing ecosystems. In the last 5-6 years, there has been a tremendous increase in interest and investment regarding AI in manufacturing. 

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With adoption of Industry 4.0, India has an opportunity to turn the tide in its favour as Industry 4.0 will help India in evolving as a hub for manufacturing quality products at low cost when compared to other countries.

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About the Author:

Ashish P Dhakan is the Managing Director & Chief Executive Officer of Prama Hikvision India Pvt Ltd. A first-generation entrepreneur and having built Prama Hikvision from a humble start since its inception in 2005, Ashish Dhakan is today a leader of the Indian security and surveillance industry and is credited for setting gold standards now acknowledged the world over.

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