Digitalization of Production – Smart Factory Glossary

The digitalization of production describes the integration of digital technologies into manufacturing processes to improve the efficiency, quality, flexibility, and transparency of product manufacturing. The aim is to increase productivity as well as adaptability to changing market requirements. At the same time, machines, systems, and people are to be closely networked.

Digitalization of production is therefore one of the key components of Industry 4.0, which involves the use of important technologies such as the Internet of Things (IoT), artificial intelligence (AI), data analytics, and cloud computing. Companies network and automate their production processes to create intelligent factories that are capable of organizing and optimizing themselves in the future.

 

Five key benefits of digitalizing production

• Increased transparency: Digitalized production processes provide greater transparency in workflows, inventory, and supply chains. Employees can use real-time data to make more effective decisions.
• Increased efficiency and productivity: Automated processes and real-time data analysis increase production efficiency, as companies can optimize their processes, reduce downtime, and increase overall productivity.
• Greater flexibility: Digital technologies help companies to react quickly to market changes, customer wishes, and individual requirements by enabling them to modify production processes faster.
• Improved product quality: Advanced control, monitoring, and inspection systems in production processes detect and fix errors and quality defects at an early stage, which leads to a higher quality of end products.
• Cost reduction: While the initial investment in innovative digital solutions can be significant, they help to reduce material and energy consumption and lower operating costs in the long term.

 

Digital manufacturing promotes sustainability

Digitalization of production plays a crucial role in increasing sustainability in industry. Companies can thus significantly improve their resource efficiency, reduce emission, and cut waste.

Intelligent systems make it possible to precisely control production processes that can drastically reduce energy consumption and keep material usage to a minimum. For example, by analyzing production data a more accurate prediction of required material quantities and precise material management is achieved, which in turn reduces overproduction and waste. Efficient production processes also mean a reduction in CO2 emissions and therefore, digitalization also supports the ecological goals of companies. A further aspect is that digitalization contributes to a more environmentally friendly and socially responsible way of doing business.

MPDV's applications support a production that is not only efficient, but also saves resources and energy. MPDV uses a "Promotes sustainability" label to specifically identify those applications that particularly promote the principles of sustainability in the Smart Factory. Given that sustainability in modern manufacturing is not a trend, but a standard, MPDV provides its users with practical information and tools for more sustainable production. By using advanced production IT, manufacturing companies can contribute to environmental protection, be economically successful and at the same time continuously improve their processes.

 

Key challenges of the digital transformation

Despite its numerous advantages, the implementation of digital technologies in production poses considerable challenges. Companies worry about the financial investment, data security, and how to realize a good change management. 

• High initial investment: The introduction of modern technologies often requires substantial financial outlay – not only for the technology itself, but also for employee training. 
• Complexity of integration: Linking older and newer systems and machines and safeguarding their interoperability can be complex and costly.
• Data security: The risk of data security breaches increases with the growth of digitally networked systems. Companies need to invest in robust security systems to prevent data leaks and theft. 
• Skills shortage: The fields of software development, data analysis, and cyber security often suffer from a lack of qualified personnel who can implement and maintain digital production systems. 
• Reluctance to change: The switch to digitalized manufacturing processes usually entails a cultural change within the company. Employees can be skeptical about the digital transformation, which makes implementation more challenging. Overcoming these challenges is decisive for a successful digitalization of production.

 

The Four-Stage Model enables the digitalization of production

To support companies with the digitalization of their production, The Four-Stage Model by MPDV can be used to serve as a guide. This model structures the digitalization process into four clear stages that companies can go through step by step to digitalize their production processes efficiently and effectively.

 

Stage 1 |Transparent factory: creating clarity

The first step towards digitalizing production is to create transparency for current production processes. Companies should start collecting and analyzing data to get a clear picture of their processes, bottlenecks, and inefficiencies. They can achieve this by implementing simple but basic MES functions, such as machine data collection (MDC) and production data collection (PDC). The aim of this first stage is to create a solid database that enables well-founded decisions and identifies potential for improvement.

 

Stage 2 | Reactive factory: increasing efficiency

Stage 2 focuses on making production processes more robust and responsive, thereby increasing their efficiency. Based on the data collected in stage 1, companies can begin to implement targeted measures for process optimization. This means automating recurring processes, improving production planning, as well as controlling and minimizing downtime and waste. We speak of real-time capability as the reaction should be direct without delay so that no time is lost, or machines continue to produce faulty products. Tools for detailed planning and detailed scheduling from MPDV's product portfolio can be used in this phase. An advanced planning and scheduling system is used to achieve more efficient resource utilization and greater production flexibility. The final objective of all measures is to boost efficiency and reduce production costs. 

 

Stage 3 | Self-regulating factory: ensuring quality

Once efficiency has been increased, the third stage focuses on ensuring product quality and further improving production. In this phase, other processes can also be automated and mapped as control loops. Measured values are monitored, and automatic countermeasures are initiated as soon as values deviate from the target range. These countermeasures are conducted either as individual instructions for employees or as automatic actions. In the self-regulating factory, people take on the role of augmented operators and use extensive information to intervene where the system is unable to find a suitable solution. Data and planning results from the previous stages help employees to gain a better overview of production and support processes. Preventive quality measures and continuous monitoring can reduce potential sources of error and ensure that product specifications are consistently met.

 

Stage 4 | Smart Factory: increasing flexibility

The fourth and final stage of the Four-Stage Model aims to increase the agility and flexibility of processes by comprehensively networking existing systems, correlating data, and unlocking optimization potential. Production and the supply chain are interlinked to enable a faster response to process requirements. Important collaboration partners for production IT are the ERP system, product lifecycle management (PLM), warehouse management system (WMS), and facility management. One of the benefits of this networking is the traceability of products and their components along the entire value chain. Networking applications along the value stream is also crucial in order to keep an eye on all aspects influencing production.

MPDV's Four-Stage Model offers a structured method to digitalize production. Industrial companies can make initial progress while laying the foundations for future innovations and modifications. 

The key to success is a balanced interaction of these four aspects:

• Careful planning
• Willingness to invest in technology and training
• Continuous evaluation and adaptation of the strategy to meet changing market requirements
• Adoption and integration of modern technologies

Companies should design their production processes in such a way that they are modular, scalable, and adaptable. This can be achieved, for example, by promoting a culture of continuous improvement and innovation.

 

Software by MPDV transforms factories to Smart Factories

An example from MPDV's product portfolio that supports the digitalization of production, is the Manufacturing Execution System (MES) HYDRA. The software enables companies to monitor and control their production processes in real time. The software offers functions such as detailed data collection, performance analysis, and quality management. The Advanced Planning and Scheduling System (APS) FEDRA takes on all tasks relating to planning and detailed planning of production. It integrates primary and secondary resources into planning tasks.

By using professional manufacturing IT, companies can boost the efficiency of their production processes, improve their product quality, and reduce machine downtime and waste. In the end, digital transformation will strengthen the competitiveness of companies in an increasingly digitalized industrial landscape.