Focus on increasing efficiency: How to digitize your production

7. May 2024

Efficient quality management: How you can reduce your error rate

The challenge of digitalization in production lies not only in the ‘if’, but above all in the ‘how’. How do you transform traditional processes into digital processes effectively and cost-efficiently, and how do you ensure that these contribute to competitiveness in the long term?

In our article, we navigate you through the basics that you can use to develop a solid digital strategy for your production processes – including practical tips and tried-and-tested solutions. After all, digitalized production is not only helpful for the long-term success of your company, it is unavoidable.

The most important facts at a glance

The advantages of digitalization in production

The concept of Industry 4.0 represents nothing less than the fourth industrial revolution. It introduces a new level of digital integration that makes production systems more agile and flexible. Networking and real-time communication are the cornerstones of this development, made possible by advanced IoT technologies.

These allow unprecedented networking of machines and devices so that efficient communication takes place between the individual components of a production system.

The resulting transparency and the generation of critical information save time, create clarity and thus ensure optimized work processes.

Production employees use digital systems to optimize processes and reduce errors

Artificial intelligence and automation

The introduction of artificial intelligence (AI) and automation in production processes is leading to an unprecedented increase in productivity. AI systems learn independently and adapt; they can perform and automate increasingly complex tasks. This increases the efficiency of certain production stages enormously. In this way, product quality can be improved and maintenance processes can be faster, shorter and more precise.

In maintenance, for example, AI helps with digital twins: Companies such as Caterpillar use them to predict maintenance requirements – precise predictions make improved service possible, which in turn strengthens customer loyalty.

Not just in maintenance, but in all areas of production: the introduction of AI into everyday working life means a profound change in the manufacturing landscape. It brings challenges with it, but above all creates compelling new opportunities for innovation and for improving existing production.

Challenges in the implementation of digital production

The digital landscape is always on the move and changes rapidly – if you want to adapt, you need to be able to implement innovations quickly and keep an eye on current developments. Where this willingness to innovate is lacking, not only is optimization potential lost – a company may also lose touch with its more progressive competitors.

Although the digitalization of production opens up numerous opportunities, it also brings challenges. For example, when switching to a new system: the integration of older systems into modern technologies requires in-depth expertise: existing data records have to be integrated into the new system, which can be time-consuming. This may tie up staff, at least temporarily, and make retraining necessary.

When switching to digitalized production – or expanding it – internal resistance must also be considered. Cultural resistance to change can hinder the digital transformation. The importance of a willingness to innovate and learn cannot be emphasized enough here.

Last but not least, cost management and ROI considerations are of great importance, as the upfront costs for the digital switchover can be considerable. The cost factor can appear to be a major hurdle, especially in companies that still have major conversions ahead of them.

Networked machines in Industry 4.0 enable efficient communication and flexible manufacturing processes

Practical steps towards the digitalization of production

The path to digitalization begins with a thorough inventory of existing processes: Where is there untapped potential, where will digitalization bring improvements? Once the “construction sites” have been identified, the processes are prioritized. Various tools are available for this purpose: For example, there are digitization quick checks that help to select processes in need of optimization.

In the next step, prototypes are developed to test the feasibility of digital solutions in practice and to define the requirements for a minimum viable product (MVP, a usable product that is created with as little effort as possible). The project plan is repeatedly adapted and suitable technologies are selected. Design thinking can help to develop a deep understanding of the problem and create a roadmap with clear goals.

This is followed by the realization phase: the prototype developed in this way is transferred to live operation.

Success factors for digital transformation in production

Various success factors are crucial for a successful digital transformation.

The adaptability of an organization, i.e. the ability to undergo structural and systemic change, is a key aspect. Innovation capacity, which requires creativity and a vision for new paths in the digital transformation, is also of great importance.

To make the transition a success, you need a high level of data expertise: this is required to identify, analyze and interpret relevant data sources.

If you want to keep up with the rapid changes in the digital landscape, you need to continuously develop your skills – this applies to all levels of the company. Technical and methodological skills are becoming increasingly important.

The company also needs the ability to collaborate: those who network with other companies and experts can significantly strengthen their own competitiveness.

Would you like to find out more about increasing efficiency in production?

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