The Smart Factera: The rise of the Connected Enterprise in India

By OEM Update Editorial June 10, 2020 2:05 pm IST

As the world realises that digitalisation and automation are the new normal, more so in light of the current coronavirus pandemic, companies are increasingly adopting smart factory technologies to survive and sustain the crisis and remain agile and profitable in the long run.

The smart factory represents a leap forward from traditional automation to a fully connected and flexible system. Smart factory technology is designed to iron out inefficiencies in manufacturing processes. This can help companies, including MSMEs, to be more consistent and efficient, meaning that there is always greater scope to use smart factory solutions to improve operational processes. We take a look at how the smart factory environment is shaping up in India and how manufacturers can move closer towards a fully, truly Connected Enterprise.

Adoption of smart factory solutions in India
We asked companies about their journey in the adoption of smart factories, and this is what they had to tell us. Rajesh Nath, Managing Director, German Engineering Federation (VDMA), shared, “In order to carry forward this transformational journey, VDMA established the Industry 4.0 Forum. Together with members, this forum coordinates with industry, research bodies, and policymakers in Germany and Europe on various aspects of implementation of Industry 4.0. VDMA together with Fraunhofer Institute has established guidelines based on the IEC Standard Open Platform Communications, Unified Architecture (OPC UA) for Industry 4.0. These guidelines show action steps that help to implement the Industry 4.0 communication in the organisation and are based on standardised and consistent exchange of information across all layers of automation systems. Further, it developed guidelines for Industry 4.0, sensors, data protection, and security to help Small and Medium Enterprises (SMEs) in digital transformation.”

John Young, APAC Director, EU Automation states, “As our customers dip their toes into data-driven automation as the fundamental enabler of smart factories, we’ve had to ensure our global supply network is equipped to supply all the parts required for such projects. The increase in demand for automation parts, such as programmable logic controllers (PLCs), robots and variable speed drives (VSDs), all reflect our customers’ growing need to boost production with smart automation.”

Venkatesh Ponnambalam, Strategic Marketing Manager – Inovance Technology India, discusses, “As an industrial automation supplier, Inovance has engineered a deep integration of automation hardware and software technology into the core of its offering. We supply end-to-end smart factory solutions covering the sending, transmission, support, and application layers.”

Steps to take for adoption of smart factories.

According to Rockwell Automation, smart manufacturing offers nearly unlimited potential, and it all begins with establishing what Rockwell Automation calls The Connected Enterprise as the foundation for achieving greater connectivity and information sharing. These and other programmes frame the industrial evolution of smart manufacturing — knowledge-enabled enterprises in which devices and processes are optimised to enhance productivity, safety, security, sustainability, and performance. Smart manufacturing offers new ways to create value and requires action now.

Early adopters have embraced smart manufacturing by investing in technology that drives efficiency. Yet many leaders struggle to define exactly what smart manufacturing means and the benefits they can generate for their organisations, customers, and suppliers. To get started, these executives need to review their operations objectives — and the advantages that smart manufacturing can offer for each. Smart manufacturing represents the integration of three key productivity factors: automation, operations information, and advanced analytics. These factors link machines and equipment through open platforms and enable them to “think”, creating systems that are able to interact with one another, analyse data to predict failure, configure themselves and adapt to changes within the manufacturing process itself. The goal is to improve productivity within an operation and ultimately across the entire value chain by increasing visibility and access to contextual information connected to processes and products, to get the right information to the right people at the right time.

Rockwell Automation has successfully operated its own Connected Enterprise to support smart manufacturing strategies for years. Through first-hand experience and close collaboration with other companies, the company is actively engaged with industry consortia and standards groups and continue to demonstrate the true value of interoperability.

Sameer Gandhi, MD, OMRON Automation, India, states, “There is a step-by-step approach that should be followed while climbing the ladder of automation. It is not required to make a big one-time investment. However, what is required is to have a vision and a proper design in place before embarking on this step-by-step approach. The technology is evolving rapidly and is hence also turning out to be a great leveller that can actually help the MSMEs leapfrog and take on the larger and more established manufacturing set-ups with minimal investments. Automation can also allow the MSMEs to produce in small batches but with high productivity, allowing them to develop local niches for themselves. Possibilities are immense.”

Nath explains, “Bringing together manufacturing automation and smart factories will bring unprecedented levels of efficiency and speed to a business. The steps required to ensure a successful transformation of manufacturers towards smart factories are to check the readiness level of the manufacturer followed by transparency in responsibility, right technology selection, robust process integration, and effective change management.”

Young elaborates, “It is important to start by asking the right questions. Many companies are aware of the potential benefits of smart factories and Industry 4.0, but far fewer have clear strategies in place to benefit from their adoption. Whatever the hype is surrounding a particular technological innovation, it is always useful to ask yourself how it will benefit your enterprise. Will it allow you to make key savings in time and costs? Talk of technology should not detract from the importance of people in any organisation. A transition to smart factories requires effective leadership. Leaders need to embrace technology and lead by example. Most importantly though, leaders need to communicate effectively to their workforces how any changes will be implemented and what the benefits will be. The adoption of smart factories will not happen in a smooth way without these ingredients.”

Phanindra Karody, Head, Bangalore Plant, Continental Automotive India shares, “Transitioning into smart factories means using modern technologies to enhance industrial processes to improve efficiency, productivity, costs, value to customers, and so on. This requires planning specific to each industry and company. Automation will be the norm going ahead, across various processes and levels. Starting from non-critical processes is advisable since this also gives employees a chance to learn and adapt. Reskilling and training should also be undertaken simultaneously to ensure a smooth transition.”

Sharadhi Babu, CEO, AXISCADES discusses, “To achieve true value in a smart factory, companies should actively work with a core engineering solutions company who have domain expertise. For this to happen, Information Technology (IT) and Operations Technology (OT) need to converge. Manufacturing is the core and it is important not only to understand the manufacturing process but also the upstream and downstream processes for a true seamless integration. MSMEs being smaller in size will find it easy to adopt smart factory technologies in line with their OEMs. OEMs should issue guidelines in line with national policies like ‘Digital India’ and ‘Make in India’.”

New technologies for a Connected Enterprise
Latest technologies and solutions such as machine learning (ML), artificial intelligence (AI), robotics, automation, and big data are being implemented by OEMs to enable a smooth transition towards the Connected Enterprise. Ninad Deshpande, Head – Marketing & Corporate Communication, B&R Industrial Automation told us, “Today, Indian OEMs catering to various industries are technologically driven and not cost-oriented. India is no longer a low-cost manufacturing hub and OEMs are focusing on various technology adoptions for competing globally. Robotics has become an integral part of machine building and adoption of robotics is expected to double in coming years.”

Sameer Mudhalwadkar, Sales Director – SAARC & Middle East, Red Lion Controls explained, “Nowadays, OEMs are building machines using open protocol control and automation devices which can connect to cloud, making data available for all type of analytics and provide the user with access to features like machine learning, artificial intelligence, etc.”

Gandhi stated, “OEMs are adopting these technologies and applications because they are keen to evolve and achieve significant values by becoming a Connected Enterprise, such as abilities to match global standards and create an advanced ecosystem where they score really high on timeliness, accuracy, reliability, and productivity. An AI- and Machine Learning-led shop floor is much more intelligent than a conventional shop floor and hence it is more productive and efficient.”

Hurdles in adopting smart factories
Mudhalwadkar states, “Today’s factory floor communication protocols should be able to transmit data in a cloud environment, even when network connections are constantly dropped. They should also offer consistent, robust security, and easy scalability. Single device with multiple protocol support is required in smart factory application to connect legacy devices.”

Gandhi adds to the discussion by saying, “Cost is something which continues to be one of the biggest deterrents and challenges followed by availability of skilled manpower. Looking at the whole picture created post COVID-19 and the way the dynamics are changing, they have to move towards the ‘Glocal’ phenomenon swiftly. So, it becomes imperative for them to give serious thought towards adopting and embracing the right elements of digital manufacturing if they wish to stay relevant in the industry in the long run.”

Vineet Seth, Managing Director – South Asia & Middle East, Mastercam APAC explains, “Scale is the main challenge. Designing smart factory processes, technologies, equipment, training, and implementation are some of the major areas where even the most successful OEMs will be put to the test. However, OEMs that are process-oriented and practise a culture of man-machine balance are likely to be more successful in the long run. Data security and handling, as well as the correct interpretation of data will be the next biggest challenge, when enough data is generated.”

According to Deshpande, OEMs have been building machines using conventional machine design techniques. He says, “No doubt, over the years they have been successful and built a great reputation. With new technologies, the machine design and the way in which machines are built are undergoing a rapid change. OEMs need to look at these technologies not as disruptions, but as a way to further increase their equipment efficiency and reduce waste and time to market. The mindset needs a paradigm shift to adopt these technologies and make it a part of the design mechanisms. The biggest hurdle might be a change in mindset towards transitioning towards smart machines and factories.”

Dynamic changes to be seen in smart manufacturing in coming years

Smart manufacturing will keep evolving with the times to suit the future needs of manufacturers. In this light, Seth predicts, “With the current COVID-19 pandemic, I can only envision a larger push to smart manufacturing than we may have imagined in the past. To safeguard potential future disruptions to manufacturing, a number of organisations will be looking at remote connectivity, automatic material and part handling, smart stores, automated tool dispensers, smart work holding devices, etc. Especially for global OEMs, a push towards total automation in manufacturing will not be unusual in the immediate future.”

Young adds, “As robots and machines are able to take on more of the basic but physically demanding tasks that humans or less sophisticated machinery performed in the past, this will free up human time for more creative tasks. However, I would expect to see a potential change in how this technology is adopted. Rather than buying robots outright, it might be that many companies, at least initially, begin with the robots-as-a-service model. This will lower the upfront capital costs and save money and hassle on maintenance. This business model will be especially attractive to MSMEs who would otherwise be put off by the higher start-up costs and the risks of being stuck with a robot that is obsolete and difficult to source parts for.”

Babu concludes, “In the coming years, the merger of physical, cyber and human world will have great impact on socio-economic, technical and economic landscapes. Technological advancements like smart factory, Industry 4.0, etc. will make companies very attractive and create a huge potential for export business, increasing the manufacturing GDP and also increasing India’s contribution to the global GDP. Technological innovations will give rise to new business models with responsiveness, sharing economy, enterprising models, and flexible on-demand models to meet dynamic new customer experience.”

A transition to smart factories requires effective leadership.
John Young, APAC Director, EU Automation

As an industrial automation supplier, Inovance has engineered a deep integration of automation hardware and software technology into the core of its offering.
Venkatesh Ponnambalam, Strategic Marketing Manager – Inovance Technology India

With the current COVID-19 pandemic, I can only envision a larger push to smart manufacturing than we may have imagined in the past.
Vineet Seth, Managing Director – South Asia & Middle East, Mastercam APAC

Bringing together manufacturing automation and smart factories will bring unprecedented levels of efficiency and speed to a business.
Rajesh Nath, Managing Director, German Engineering Federation (VDMA)

The biggest hurdle might be a change in mindset towards transitioning towards smart machines and factories.
Ninad Deshpande, Head – Marketing & Corporate Communication, B&R Industrial Automation

Automation can also allow the MSMEs to produce in small batches but with high productivity, allowing them to develop local niches for themselves.
Sameer Gandhi, MD, OMRON Automation, India

Transitioning into smart factories means using modern technologies to enhance industrial processes to improve efficiency, productivity, costs, value to customers, and so on.
Phanindra Karody, Head, Bangalore Plant, Continental Automotive India

Technological advancements like smart factory, Industry 4.0, etc. will make companies very attractive and create a huge potential for export business, increasing the manufacturing GDP and also increasing India’s contribution to the global GDP.
Sharadhi Babu, CEO, AXISCADES

Today’s factory floor communication protocols should be able to transmit data in a cloud environment, even when network connections are constantly dropped.
Sameer Mudhalwadkar, Sales Director – SAARC & Middle East, Red Lion Controls