Boosting productivity

“The factory of the future could boost productivity by 30% or more – the key is integrating lean, digital, artificial intelligence (AI), and sustainability measures,” according to a recent article from Bain & Company. Authored by Thomas Frost, Jörg Gnamm, Stefan Silberstein, Mike Duvall, and Lisa Kabus, the article is part of “Bain’s Global Machinery & Equipment Report 2024,” which dives into how adoption of emerging technologies is a must as the machinery industry moves toward a digital future.

One aspect is many factories are operating in organizational silos, even as new technologies are incorporated on the path to becoming the factory of the future. Bain’s research shows many are leaving up to 50% productivity value untouched. This differs, the authors note, from the top performers using an integrated approach with digital technologies to enable upgrades across the factory that find and address true pain points.

Another is the top performers excel at standards and interfaces that work across company information technology (IT) and operational technology (OT) infrastructures. With this approach companies “can extend scaled impact beyond pilot projects and create a factory of the future roadmap for their existing and future plants that clearly identifies the short-term and long-term steps they need to take to mature and unlock value.”

Recommendations are to take a four-step approach toward turning today’s factory into a factory of the future, and these steps are:

• Manufacturing strategy – Integrate in the overarching business strategy
• Production system of the future – Redefine the ways of working and standards needed for progress
• Technological enablers – IT/OT needs to support the production system; also must interface throughout the supply chain
• People and operating model – Place employees at the center and upskill them

Also detailed in the report is the 6-level maturity scale so companies can review and establish a starting point on this path of change:

Level 1: Traditional – Emerging lean manufacturing

Level 2: Standardized – Lean manufacturing mostly established

Level 3: Lean flow – Excellent lean manufacturing standard established

Level 4: Digitized – Systems assist human decision making, optimization

Level 5: Smart – Systems automatically make decisions in processes

Level 6: Autonomous – Autonomous systems optimize efficiency

The urgency is to move from your present silo to begin advancing through these levels. It’s not going to happen overnight, but manufacturers need to start now to be on the path of having a factory of the future. Where is your company on this path to boosting productivity, being agile and prepared for change, and being a factory of the future?