Exploring Our Industrial Heritage: Oklahoma City, OK (Part II)
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The Model-T & Industry 4.0 (Part II)
As a career manufacturing leader, I love the integrated systems approach that Industry 4.0 provides, but I have legitimate concerns that come from 35 years of manufacturing experience too.
Industry 4.0’s smart factories are changing the way manufacturing plants operate. These smart factories link all of the factory’s data systems together, thus providing leaders with more real time visibility and tools to make better decisions. In smart factories; machine process data, ERP systems, quality systems, maintenance systems, customer service data, warehouse inventory, logistic software and every other application can be integrated together, creating powerful data control.
As we all know, integrated systems are better than siloed systems. This is why we all love e-banking and Venmo. The integrated banking that we all do now is far better and more efficient than it was when every bank was on its own software island. Additionally, as artificial intelligence (AI) continues to make advances, our factories will definitely benefit by leveraging it. Every factory KPI can improve via these more powerful data systems.
Through my years of manufacturing leadership, I always wondered if manufacturing leadership positions could ever be staffed remotely. Throughout my career, remote work was a far-fetched dream. But who knows, someday it may be a reality. But regardless of whether or not plants can be managed remotely, I love the idea of integrated data systems and comprehensive manufacturing dashboards! These systems will quicken resource response times and improve management decision making.
For 13 years I worked for a large private label diaper manufacturer. Making diapers sounds simple enough but complexity came into play because of the large number of SKU’s - especially on the packaging side of things because every retailer ordered custom package designs. Now with Industry 4.0, I can visualize how a retail customer will scan a bar code at a store which will lead to a chain of data connections.
In a flash, at the factory level, finished good inventory would be evaluated, raw material levels considered and then production could be scheduled based on a master production schedule that considers machine performance, preventative maintenance dates and changeover times. Based on EOQ’s, lead times and inventory levels, shipments would be planned, and trucks scheduled. In my my vision for Industry 4.0, one trigger event, such as a bar code scan, would create an immediate daisy chain of automated events from order entry, through production, logistics and then to the customer’s dock. All the supply chain stakeholders would have access to real time dashboards to track the orders and monitor the business conditions.
Currently in most businesses, the steps described above take days, weeks and sometimes months. Human error and gaps in the systems frequently create flawed plans that result in customer orders shipping late. I’m not sure if there are any factories that have yet to realize the full potential of Industry 4.0 and all that it has to offer, but a few manufacturers - some with deep pockets - are well on their way. I think we need to look no further than the Amazon distribution system to see the potential that exists.
How can we apply what we learned from the Model-T case study in our manufacturing businesses today considering the direction that Industry 4.0 is taking us? Read our T4T Article: Exploring Our Industrial Heritage: OKC - The Model-T & Industry 4.0 (Part III).
Read about my other industrial explorations: Whiskey Country, The Illinois River Valley and the Introduction to this series.
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