Changes are Coming to Heat Treatment Operations.

“The Fourth Industrial Revolution is driven by the convergence of computing, data, artificial intelligence and universal connectivity. This revolution is reshaping operations in every industry, including heat treatment. There is no aspect of the economy that is shielded from the transformative effect of this change. Some industries will be altered faster than others: all will eventually be changed.” This mean that with 5G internet speed and new analytical logarithms, heat treaters will be able faster and with higher precision to recognize heat treatment patterns for specific material and parts.  Those patterns combine with furnace heat treatment characteristic will set up heat treatment cycle specific to particular part/material. New sensors and softwares will control technical performance of the furnace and improve furnaces maintainability.   

“But change is challenging. Technology is not always your friend. The Fourth Industrial Revolution offers heat treaters huge opportunities for efficiencies and for insight — but it also creates new competitors, threatens old established modes of operation, and creates new risks to security and reputation." There would be winner and sour losers after the transition is finished. The question is: how this transition will effect heat treatment, how to prepare for the transition and how the new future will look like for heat treatment. Most US heat treating are located in the Midwest and the Northeast, where most of heavy manufacturers were located. Now, some of the heavy industries and car assembly plants are moving to Southern locations. We can expect a new heat treaters start-ups to be located in the Southern states. Globally, we should expect more heat treating companies pop-up in Turkey, China and India. We should expect not only new heat treating companies but also an innovation coming from these regions.   

“The first is the evolving needs and expectations of the customer. Customers have more knowledge, more data and more choices. Heat treaters should redesign operating processes and platforms to meet changing customer expectations regarding service and cost. Heat treaters should optimize, digitize and modernize core processes to achieve operational excellence, whilst always putting the customer first.” Customer service orientation was always important but now with isntant connectivity between the customer and heat treaters chain of supply can reach new level. Phone calls to check status of the shipment will not be sufficient in the new economy. For example an Australian heat treater provide their customer ability to instantly check parts status.     

“The second is the unstoppable force of automation, which is reshaping the world of human work. It is no longer just repetitive processes that can be automated, cognitive technologies are now automating heat treaters decision making such setting process parameters.” Example of this automation of cognitive process is a low pressure carburizing and computer control nitriding parameters. The Carburizing, Titanium Nitride or Nitriding softwares provide with the furnace are setting up the time, temperature, and process gas flow rate according to material type and shape of the parts. The software provides end result in graph and data forms. Heat treaters should identify opportunities for a furnace operation automation and look for companies able to provide this type of softwares and automation. 

“The third is alliances and partnerships. Fourth Revolution technologies enable more collaboration, and the opportunity for businesses to optimize their global footprint and networks.” Heat treaters should identify opportunities for collaboration, both internally and externally, building alliances and partnerships with research institutes and developers of new and better heat treatment processes.  

“The fourth is the need to build a new, leaner cost structure that will keep heat treating operation competitive in the Fourth Industrial Revolution. Heat treaters must redefine their cost structure to enable them to reinvest for growth, reinvest for customer experience, and reinvest for the better and more efficient furnaces.” Several years ago a heat treater told me two important pillars in the heat treatment. He said first is the cost and second is the service. Reduction of the overall cost is starting from reducing investment, operation and SG&A costs.  Who ever is able to better control and minimize cost will prosper.