Smart Factory and Industry 4.0

The manufacturing world is rapidly undergoing dramatic changes. Technologies like big data, robotics, and additive manufacturing are driving the convergence of digital and physical in every industrial sector. Referred to by many as “Industry 4.0”, this transformation is not only redefining the industry but has simultaneously presented seemingly insurmountable challenges to the c-suite. According to a McKinsey 2020 article, Industry 4.0 includes connectivity, advanced analytics, automation, and advanced manufacturing technologies. Successful companies transform everything from production efficiency to product customization while improving speed to market, enhancing service effectiveness, and creating brand new business models.

Recognizing the importance of these changes to the global economy, the World Economic Forum has taken a leadership role in shaping the future of global manufacturing. A vital component of this initiative is the Smart Industry Readiness Index (SIRI) . Created in partnership with a network of leading technology companies, consultancy firms, and industry and academic experts, SIRI is a suite of frameworks and tools that help manufacturers start, scale, and sustain their manufacturing transformation journeys. Over 350 companies from more than 15 different countries have completed the Official SIRI Assessment (OSA).?

The SIRI suite covers the three core elements of Industry 4.0 transition; Technology, Process, and Organization. Underpinning the three building blocks are eight key pillars, representing critical areas that companies must focus on to become future-ready organizations.

The first building block, Technology, requires the broad use of automation to monitor, control, and execute the production and delivery of products and services under the Industry 4.0 reference model. Technology also provides connectivity between equipment, machines, and computer-based systems that enable communication and data exchange across all of the company’s assets. The data captured by autonomous sensors and flowing through the connecting network is processed and analyzed to uncover critical smart factory insights.

The second building block addresses the Process. This step revamps operational planning and goods and services production. It also encompasses supply chain matters associated with the planning and managing of raw materials and inventory from the point of origin to the end of consumption. This block also handles product Lifecycle

The third building block, Organization, covers the ability of the workforce to drive and deliver Industry 4.0 initiatives (Talent Readiness) and the company’s structure and management. During this phase, explicit and implicit rules and policies outline how roles and responsibilities are assigned, controlled, and coordinated. This block also addresses any needed management modifications to get people working together towards a well-defined common goal.

As Fujitsu recognized the importance of the Industry 4.0 vision, their internal manufacturing industry support team focused on what it would take to transform the concept into a reality. In doing so, they also recognized that the vision needed to extend beyond the manufacturing process itself to encompass the entire value chain – especially how customers consume the final product. This epiphany showed that digital capabilities could enrich the manufacturing factory by maximizing throughput, utilization, and quality. Conceptualized as the “Smart Factory,” it would know which resources are available from which supplier and could automatically order them at the most appropriate time to meet customers’ changing demands. Automated data-driven services could quickly enhance manufactured products by creating new and profitable data consumption models. This work was the genesis for the Fujitsu Smart Factory Framework and Journey .

Created five years before SIRI, the Smart Factory Framework eerily paralleled SIRI by defining three critical attributes at its center:

• Connected - the enterprise is fully integrated (horizontally and vertically) to facilitate the real-time flow of intelligent data between people, processes, technologies, physical assets (factory), and virtual assets
• Real-time - actual time during which a process or event occurs. Within the Connected System, the input data and intelligent data is processed near-real-time (milliseconds), so it is available for immediate use; and
• Intelligent - capable of analyzing, in real-time, states or actions, in response to varying situations, requirements, and past experiences.

These three attributes link the seven Smart Factory Capabilities that transform performance and outcomes by embracing:

• Smart Manufacturing Operations;
• Smart Quality Management;
• Smart Plant Maintenance;
• Smart Engineering;
• Smart Supply Chain Collaboration;
• Smart Green Manufacturing; and
• Smart People.

Given their practical bent, however, the team went further by also defining The Smart Factory Journey, which represented a roadmap for actually attaining all of the Smart Factory goals. Today, following this path is the core of how industry-leading companies digitally transform themselves.

The journey starts with Stage 1 ideation which involves defining the organization’s future state by mapping out a Smart Factory vision and strategy. The team then creates a unique maturity model and evaluation criteria that reflect the desired future business case. Developing an Industry 4.0 roadmap will define the capabilities needed to complete an outcomes-based path that can capture properly scoped pilot opportunities. Stage 2 follows with the deployment of a business-relevant pilot to discover what works instead of chasing wishful dreams. Stage 3 is where the team expands and scales out success based on the lessons learned in the previous stage.

As highlighted by the World Economic Forum’s adoption of a similar model, this “crawl, walk, run” process represents a broadly accepted and proven model. Fujitsu’s professional service team has delivered multiple successful engagements using this model. One, completed for the world’s leading inkjet print heads, improved the company’s product production planning and scheduling process by integrating top and shop floor management. A second successful project quickly implemented a quality management system that led to a faster production process for one of Earth’s most significant building material companies.

To learn more about how your company can successfully navigate its Smart Manufacturing Journey, visit Fujitsu - Smart Factory to request an assessment.