PLT - October 2024

OCTOBER 2024

PLANT.CA

REPORT

Results from the 2025 Advanced Manufacturing Outlook survey p.12

CYBER SECURITY

Advice for enhancing cyber resilience p.18

SAFETY

Empower employees to stay engaged in workplace safety p.8

AI REVOLUTION From data to dollars, exploring AI’s potential to transform asset management p.14

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INSIDE OCTOBER 2024

October features

9 12 14 18

MEASURING PERFORMANCE FOR SUCCESS How monitoring results can help businesses make informed decisions.

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EMBRACING CHANGE AND INNOVATION The 2025 Advanced Manufacturing Outlook report says Canadian manufacturers are investing in advanced technologies. But is it enough?

AI IN ASSET MANAGEMENT A close look at the current uptake rates, the latest developments and the future of AM.

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SECURING THE FUTURE Advice for how companies can navigate and mitigate growing cybersecurity risks.

In every issue

Cover photo: sadewotito / Adobe Stock

4 EDITORIAL 6 NEWS 8 SAFETY 10 COLUMN 21 TECH CENTRE 22 POSTSCRIPT

@PLANT_Magazine

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October 2024 / Plant

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EDITORIAL

BY KIRSTYN BROWN

CANADA’S MANUFACTURING VOICE OCTOBER 2024 • Volume 83, Number 2 READER SERVICE

H

ello, and welcome to my first issue of Plant! My name is Kirstyn, and I’m the newly appointed editor of what has come to be known as “Canada’s manufacturing voice.”

I’m honoured to be here and proud to present the October issue, the theme of which (if you hadn’t already guessed), is advanced manufacturing.

Manufacturing is at a pivotal moment, propelled by innovation, opportunity and the relentless pursuit of efficiency. There’s no denying we’re at the brink of a transformation—a digital revolution—where emerging technologies promise to change the industry forever.

We’re both embarking on a journey of growth and adaptation, always asking the question, what does the future hold?

Frankly, it can be difficult to wrap one’s brain around. But while change is overwhelming at times, even intimidating, it’s also pretty exciting.

As the new editor of Plant, I find myself relating to this on a personal level. Just as I’m stepping into this role with enthusiasm and readiness to embrace change, the industry is evolving to meet new challenges and seize opportunities. We’re both embarking on a journey of growth and adaptation, always asking the question, what does the future hold?

Anyway, enough about me—let’s get to the issue.

This issue coincides with our 2025 Advanced Manufacturing Outlook report, an examination of results from an annual survey focused on the adoption of Industry 4.0 across the sector. The feature on page 12, “Embracing Change and Innovation,” provides an overview of the survey’s key findings, highlighting trends and the ways in which advanced technology is being used

to alleviate marketplace challenges. I highly recommend reading the full report for yourself. (It’s polybagged with your print edition or you can find a digital copy at plant.ca.)

In our cover story, “AI in Asset Management,” page 14, writer Treena Hein examines the growing role of artificial intelligence in asset management. While many people perceive AI as a hot-button topic, this feature is further proof that AI is not just a buzzword or clickbait; it’s reshaping how companies make decisions and optimize resources, with the potential to pave the way for a more efficient future.

Lastly, in “Securing the Future,” page 18, I confront a growing threat facing manufacturers today: cybersecurity. In researching this article, I learned how as plant operations become more connected, the need to protect data and assets has never been more critical. Fortunately, the two esteemed experts I interviewed provided valuable insights into best practices for protecting your operations and ensuring your organization is resilient against future threats.

Speaking of the future, you may be wondering about the future of Plant. As editor, my hope is that it will remain a trusted source for trends, insights, news and best practices, but also become a hub for dialogue and discovery as we all navigate the complexities of the industry. With that in mind, I encourage you to reach out to me to share your ideas, experiences and concerns. What would you like to see in future issues? Which challenges would you want Plant to tackle? Who would you want to see spotlighted or celebrated? Because after all, Canada’s manufacturing voice is a collective one, and it includes yours.

I hope you enjoy the issue and thank you for joining me on this journey. Here’s to embracing the future, both in our industry and in our personal endeavors.

KIRSTYN BROWN, EDITOR Comments? E-mail kbrown@annexbusinessmedia.com

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Plant / October 2024

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NEWS INDUSTRY

ONTARIO AND NEW JERSEY SIGN AGREEMENT TO BOOST TRADE AND INVESTMENT

PAPERLESS PARTS EXPANDS INTO CANADIAN MANUFACTURING MARKET

On Sept. 10 at the International Manufacturing Technology Show (IMTS) in Chicago, Paperless Parts, a quoting and collaboration software company for custom part manufacturers, announced its official entry into the Canadian and Mexican manufacturing markets.

Paperless Parts has roughly 600 precision manufacturing and sheet metal fabricators customers across the United States, and have already secured initial contracts with several leading Canadian and Mexican manufacturers.

“We’ve recognized for a long time that there’s an opportunity to radically transform our quoting process, eliminate many of the time-consuming, 6

Plant / October 2024

manual steps, and really focus on growing our business,” said Reuben Martin, President of Tubeway Inc. in Proton Station, Ontario.

“Paperless Parts is the premier partner for American manufacturers, and we are excited for the opportunity to partner with them as one of their first Canadian shops.”

SUPPLY CHAIN

NULOGY AND KINAXIS PARTNER TO ENHANCE MANUFACTURING SUPPLY CHAINS The Nulogy and Kinaxis partnership aims to catalyze FMCG and their supplier networks to work together more effectively through digital transformation solutions.

Nulogy, a provider in supply chain collaboration solutions, and Kinaxis, a company involved in supply chain orchestration, have announced a partnership to develop solutions for brand global manufacturing supply chain networks.

The partnership aims to accelerate fast-moving consumer goods (FMCG) and life science brands and their supplier networks to work together more effectively through digital transformation solutions, thereby mutually improving costs, service and revenue.

Combining the supply chain orchestration capabilities of Kinaxis with the collaborative external manufacturing specialization of Nulogy is expected to enable customers to share forecasts and order information with suppliers and receive inventory capacity information faster.

Nulogy’s platform will support greater responsiveness in the supply networks of leading FMCG and life science brands, including L’Oréal, Colgate-Palmolive, and Church & Dwight, as well as their extended suppliers and hundreds of sites around the world.

Top photo: John McAdorey / Adobe Stock; Bottom photo: Summit Art Creations / Adobe Stock

Ontario and New Jersey finalized a new Memorandum of Understanding (MOU) aimed at boosting cross-border trade and investment, promoting greater economic collaboration and creating good-paying jobs on both sides of the border. The MOU was signed by Premier Doug Ford and Phil Murphy, Governor of New Jersey, following a meeting in Toronto in Sept.

Building on decades of economic partnership between Ontario and New Jersey, the agreement is promoting collaboration to reduce trade and investment barriers while identifying new opportunities for strategic partnerships in the life sciences, advanced manufacturing and agriculture sectors. The parties have also agreed to pursue opportunities for cooperation in energy and energy infrastructure, leveraging Ontario’s expertise in nuclear operations and its clean energy supply chain.

The agreement is part of Ontario’s strategy for trade with the United States. As part of the strategy, the province is pursuing additional agreements with state-level trading partners to create jobs, streamline trade opportunities for Ontario businesses and grow its economies.

Visit plant.ca for the latest new products, news and industry events.

PLANT.CA

TECHNOLOGY/IIOT

BELL ANNOUNCES TECHNOLOGY COLLABORATION WITH MACLEAN

On Sept. 17, Bell Canada and MacLean, a Canadian underground mining equipment manufacturer, announced a technology collaboration on aimed at enhancing mining operations. This partnership will focus on improving equipment interoperability to boost worker safety, promote sustainability and reduce vehicle emissions.

Bell will install a Private Mobile Network (PMN) at MacLean’s Research & Training Facility in Sudbury, Ont., transforming it into a Centre of Excellence. This facility will utilize Bell’s secure 5G/ LTE network for dedicated bandwidth, enabling reliable remote control and real-time monitoring of mining vehicles, which supports the potential for semi or fully autonomous operations.

THE

The collaboration underscores Bell’s commitment to sustainable mining, as they have also equipped MacLean’s Electric Vehicle refurbishment plant with PMN coverage.

This setup enhances quality assurance and manufacturing efficiencies while facilitating the deployment of electric vehicles that utilize advanced battery technologies to reduce fuel use and CO2 emissions.

AVANCED MANUFACTURING

NORBEC OPENS FIRST PLANT IN ONTARIO

Norbec, a North American manufacturer of insulated metal panels, walk-in coolers and freezers, opened a new $45-million manufacturing plant in Strathroy, Ontario in Sept.

It’s Norbec’s first plant in Ontario and the third in Canada, alongside its facilities in Boucherville and Saint-Hyacinthe, Quebec.

The 156,000-square foot facility took 14 months to complete. Once fully operational, the new plant

PROBLEM

THE

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The new Norbec plant in Strathroy will create 70 new jobs for local workers once fully operational.

CONCEPT

PALLETIZED PAYLOAD LIMITATIONS THE

will create 70 new jobs for local workers, from plant managers to production operators, engineers, and maintenance staff.

“Norbec is committed to being an employer of choice, offering our employees a modern and comfortable workplace that embodies our commitment to quality and innovation, and we are immensely proud to be opening our first plant in Ontario today,” said Jan Lembregts, President of Norbec. “With its proximity to London and Sarnia, this new plant will establish Norbec as a go-to local supplier in Ontario and help establish Middlesex County as a leader in specialized architectural manufacturing. This facility represents a significant step in our growth strategy, allowing us to better serve our customers in Ontario and the booming Midwest U.S. markets.”

The company says the expansion is a step in Norbec’s growth strategy, aimed at better serving customers with an innovative and broader product range.

THE IDEATION

SMART

MOVE

THE PROGRESS REPORT ANOTHER PROJECT BY:

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s e w c a n . c a · s e w - e u ro d r i v e . c a @PLANT_Magazine PLT_SEWEurodrive_Fall24.indd 1

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SAFETY

FEATURE

Creating a culture of safety Tips for keeping employees engaged in health and safety.

BY CANADIAN CENTRE FOR OCCUPATIONAL HEALTH AND SAFETY (CCOHS)

1. Provide workplace safety training to everyone:

Ideally, the first step in increasing employee involvement in safety is to effectively train staff and promote a strong safety culture when new hires are onboarded. Studies have shown that the level of employee engagement in training is a key factor in an organization’s safety program effectiveness.

Training that uses spoken, written or multimedia presentations but requires little or no active participation by the employee has little impact on reducing workplace incidents. On the other hand, interactive training that involves hands-on practice in a realistic setting results in higher retention. It only makes sense that your training programs and courses actively involve your employees and include their participation.

Some topics to include in safety training are: the proper use of personal protective equipment; what to do in case of injury and emergencies; the locations and contents of first aid kits; and the names of personnel who are trained in first aid. Training must also include task-specific information such as the safe operation of tools and machinery used on the plant floor.

Communicating safe work practices doesn’t start and stop with a new hire.While it is a crucial element during the orientation 8

Plant / October 2024

process, it’s equally important to provide ongoing safety and refresher training to existing employees. Applying these strategies to training and re-training on an on-going basis will help everyone develop and maintain a safety-first attitude.

2. Safety from the top down:

Encourage your management team to reference the health and safety program often, and make sure the program is easily accessible to all employees.This can help set the tone that safety and the well-being of employees are top priority.

Organize regular re-training sessions for managers and supervisors on conducting safety audits, workplace inspections and incident investigations.Wherever possible, involve them in the health and safety program—have them participate in new hire safety orientations and lead safety toolbox talks, for example. By taking the lead, management shows through its actions that they are supportive and committed to protecting workers and creating the safest workplace possible.

3. Make safety a routine:

Routinely check-in with your employees and ask how safety procedures are going and what is or is not working for them.When developing new safety procedures, make sure to focus on safety practices as well as the safety culture.

Include your employees in these discussions and efforts. Encourage staff to speak up when they see unsafe work or risky behaviour and report any health and safety concerns. Get

their feedback and use it to improve your safety practices. This reinforces the internal responsibility system where everyone has a responsibility for health and safety as part of their job and for working together to prevent injuries and illnesses.

Communication and involvement are key to successful employee engagement.

Focus groups, surveys and interviews are useful in gathering input, ideas and insights on how to provide training, and the values that motivate employees on a day-to-day basis. Be sure to always follow up and acknowledge their feedback.

While you may not be able to implement a change immediately, letting people know their voice is heard and stating your organization’s intentions to improve health and safety will help foster an environment of worker engagement and involvement.

Remember, there is no one-size-fits-all solution when it comes to workplace safety.

Each workplace is unique in terms of tasks, needs, values, and culture.Taking the time to keep employees engaged in program development, interested in ongoing training, and involved with continuous improvement, will help everyone keep safety top of mind.

The Canadian Centre for Occupational Health and Safety (CCOHS) promotes the total well-being of workers in Canada by providing information, advice, education and management systems and solutions that support the prevention of injury and illness.Visit www.ccohs.ca for more safety tips.

PLANT.CA

Photo: Montri / Adobe stock

Health and safety are important in any situation, especially in the workplace. But how do you keep your employees engaged, interested and involved in keeping safe work practices top of mind?

A good practice to keep your employees safe at work is to have a comprehensive, integrated health and safety program for your organization. This program should include a series of strategies, policies and related activities and initiatives developed by the employer, with involvement from the employees, health and safety committee and the union.

The program must be fully communicated to the employees, implemented throughout the organization integrated into business practices and evaluated on an ongoing basis.

Here are some tips for maintaining an engaging and effective health and safety program within your organization:

BUSINESS

FEATURE

Measuring performance for success How monitoring your results can help you make informed decisions for your manufacturing business.

buying behaviour to save costs and reduce the strain on your cash flow. These metrics help you identify and control the areas where your business is losing profitability, make informed decisions to improve its performance and support your success in challenging market conditions.

Invest in digitization

BY NAKUL GUPTA You may have taken the first steps to improve the performance of your manufacturing business and overcome challenges in today’s marketplace.This could have included prioritizing customers with high profit margins, increasing the production of high-demand products and divesting, downsizing or temporarily closing machinery or product lines that do not break even.

Each of these solutions can help reduce the strain on your operating cash flow and meet your debt service coverage ratios. But how can you measure your results and take the right steps to ensure your business remains profitable both now and in the future?

Monitoring your cash flow and performance management metrics can help you determine whether the solutions you implemented are working effectively. It is critical to use these tools on an ongoing basis to identify the impact of changes in the marketplace, overcome emerging challenges and achieve the results you need to remain successful.

Photo: Nuthawut / Adobe Stock

How to measure the performance of your business

The right tools and processes can help you understand how the challenges in today’s marketplace are affecting your business.

Taking the steps to establish a monthly cash flow process, forecast your cash flow and monitor your performance management metrics can help you identify areas for improvement and adjust course to weather adverse market conditions.

Investing in digitization, scenario planning and financial modeling can help your business respond quickly to new challenges in the marketplace and set goalposts to measure its performance. Each of these tools will help you make informed decisions, measure your results, and support the future of your business in today’s turbulent economic environment: @PLANT_Magazine

Establish a monthly cash flow process

Establishing a monthly cash flow process can help you determine whether the solutions you implemented are enabling your business to run on a positive operating cash flow. It can also help pinpoint areas where your business is losing money—such as on high-interest loans for machinery or other debt financing activities. This allows you to take the steps to reduce these costs, such as by negotiating with lenders.

Establishing a monthly cash flow process also helps provide a baseline to support cash flow forecasting for your business. Forecasting 13 weeks ahead will help you anticipate potential fluctuations in your cash flow and take the steps to mitigate risks—such as adjusting your spending strategies or securing additional financing.

Monitor performance management metrics

Performance management metrics are crucial to help you understand factors such as how many units your business is producing, how much inventory it is storing and how much raw material it is consuming.

This knowledge can help you identify challenges and make changes to improve your financial health.

For example, you may identify excess inventory in your system and change your

Digitizing areas of your business such as your production floor can help you optimize your operations, streamline production processes and identify areas to reduce costs. You may find that you are using several machines at full capacity—and increase maintenance on those machines to prevent potential breakdowns.

Supply chain digitization can also help your business respond quickly to changes in the marketplace to overcome many of the most pressing challenges today. It can help you anticipate when materials are running low so that you can buy more resources on time, reducing production delays. Digitization also increases supply chain visibility, allowing you to predict disruptions and take preventative measures such as purchasing materials from another supplier.

Plan for different scenarios

Financial modeling and scenario planning can help you predict the financial impact of running your manufacturing business with fewer resources. However, these tools can also be used on an ongoing basis to help you measure your results and make informed decisions for the future.

Scenario planning can help you develop an operational budget for various situations—such as a supply chain disruption or slowdown in market demand. Communicating the results of these plans to your bank and investors will show how your business will get ahead of these scenarios, increasing their confidence.

Additionally, financial modeling can set tangible goalposts to compare against your real-world results. This helps you understand whether your business is performing as predicted in various situations—or whether you need to adjust course to improve its performance.

Nakul Gupta is Senior Manager, Consulting – Performance Improvement & Operational Excellence at MNP, one of the largest full-service chartered professional accountancy and business advisory firms in Canada.

October 2024 / Plant

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TECHNOLOGY

COLUMN

From Yokoten to AI

Unlocking ChatGPT’s potential to revolutionize problem solving.

BY RICHARD KUNST

10 Plant / October 2024

Can ChatGPT change how organizations effectively solve and share solutions to recurring problems?

all trained in how to solve problems. That’s a huge amount of brain power.

Toyota aptly named this database methodology “Yokoten,” a Japanese word that roughly translates to best practice sharing across an organization. Sharing can be successes, learnings, concepts, ideas, policies and experiences that may be useful for others. This is also referred to as horizontal deployment.

The Yokoten database concept has enormous potential to be powerful and effective, however, implementing it can be very difficult. Across Toyota, the principle is implemented with discipline and rigor, but many companies fail to have the cultural discipline to implement such a powerful tool. For instance, the database can quickly become too big and searching within it can be challenging, particularly if there isn’t any consistency in the way solutions are being named or if a naming convention doesn’t exist for data entry.

So, what’s the solution? Potentially, ChatGPT. In July 2023, Mercedes Benz

introduced ChatGPT’s voicebased interface technology into both its factories and vehicles. In the factories, the AI technology allowed employees who aren’t programming experts to make the most of data analysis tools and review production process data within the company’s digital system. The setup also connects the company’s 30 global passenger car plants through a cloud-based network, giving them real-time insights into operations and speeding up the decision-making process.

With the Yokoten database model, every time a problem is found, the team not only finds a solution to the problem, but also looks for other areas where that problem could repeat itself in the future. Even though it requires a significant amount of time and resources to identify other potential areas where the problem could surface, it will be more efficient in the long run by avoiding these issues. That’s all well and good, but searching through a huge data base takes time and lots of resources. This is likely the biggest challenge that needs to be overcome to see Yokoten

accepted and adopted by other companies around the world.

But the dialogue output coming from ChatGPT is the real game changer. Instead of various links from a search either in YouTube or Google, the user gets a solid summary of potential solutions. And, they can continue to refine their inquiry until it provides the best potential problem-solving solution.

I am a fan ofYokoten and have used the database frequently either as an author or a user, but it still can come shy of providing some specific hints. On the other hand, ChatGPT has provided some very solid logic and solutions that can be implemented quickly. The power of ChatGPT is that it automatically organizes various sources of potential solutions into one dialogue.

Plus, users can dialogue with ChatGPT verbally using a smart phone from wherever the problem is occurring.

Personally, I have ChatGPT integrated in my Mercedes MBUX entertainment system and love it. It has likely saved me hours that would have been spent researching my owner’s manual to solve an issue or to figure out how to use a specific feature.

It’s safe to say that ChatGPT will be a significant contributor to formal problem solving.

Toyota’s Yokoten database was a good attempt and early pre-cursor of a ChatGPT wannabe, but now we have something more powerful and that can be extremely effective.

Richard Kunst is an author, speaker and seasoned lean practitioner based in Toronto, who leads a holistic practice to coach, mentor and provide management solutions to help companies implement or accelerate their excellence journeys.

Find him at www.kunstsolutions.com.

PLANT.CA

Photo: Somchai / Adobe stock

A

ll types of problems require quick resolution.

However, certain tools and skills are more effective than others at solving specific types of problems.

These days, people have come to rely on sourcing problem solving information through leveraging someone else’s job skill and experience or the use of YouTube or Google: You have a problem, engage in a deep analysis to define the root cause, instigate corrective action harvested from YouTube and Google, and boom! Problem solved.

But what about when the problem returns? Did you really solve the problem? Using Google or YouTube to find a solution will get you several answers but perhaps not specific enough to address your unique problem or environment.

These same challenges exist in manufacturing. Most, if not all, multi-site manufacturing organizations are challenged with how to share problems solved solutions.

Toyota decided to address this challenge by creating an open database where any plant could post their solutions for a particular problem. Here, team members were asked to log the results of their problem-solving activities so others facing a similar problem could implement the same solutions or use that knowledge to build their own problem resolution.

With the creation of this database, any plant could see what others have attempted that either worked or failed simply by entering a key word or phrase.

It makes a lot of sense when you have 16 plants across 13 countries assembling Corollas, especially when you consider each plant has between 1000 to 1500 hundred team members

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REPORT FEATURE

As Canada’s manufacturing sector faces economic pressures and supply chain issues, the adoption of advanced technologies like IIoT, robotics and AI offers new opportunities for efficiency and growth. BY KIRSTYN BROWN As our country navigated the complexities of 2024, the manufacturing sector found itself at a crossroads, influenced by both economic pressures and transformative opportunities. Early in the year, economic slowdown impacted growth prospects, with many manufacturers scaling back expenses and capital investments amid fears of a potential recession. High interest rates compounded these challenges, creating a cautious investment climate.

At the same time, persistent supply chain disruptions continued to plague 12

Plant / October 2024

the industry, particularly affecting sea freight and critical maritime routes, leading to rising input costs that manufacturers struggled to absorb.

Compounding these operational hurdles was a growing labor shortage, making it difficult for manufacturers to fill skilled trades positions, further straining their ability to meet production demands.

However, certain areas of investment continue to look promising. Plant and Canadian Manufacturing’s 2025 Advanced Manufacturing Outlook survey found that many manufacturers increased their investments in

89% Amount of Survey respondents who reported experiencing benefits from technological upgrades.

Key Takeaways:

The survey results reveal a steady engagement with advanced IIoT capabilities, with a quarter of respondents currently applying these technologies (the same level as the previous year).

Investment intentions ticked upwards, with 18 per cent planning to invest in IIoT technologies over the next year, up from 10 per cent last year. However, a consistent 20 per cent of respondents remain unfamiliar with IIoT capabilities.

Among those utilizing IIoT, a significant 82 per cent are focused on enhancing efficiency and productivity. Key applications include tracking materials and assets (60 per cent), improving visibility from the manufacturing floor to business management (62 per cent) and gaining insight into production processes (68 per cent).

Additionally, the adoption of IIoT for PLANT.CA

Photo: FutureFocus / Adobe Stock

Embracing change and innovation

automation, robotics, artificial intelligence and the Industrial Internet of Things (IIoT), striving to enhance efficiency and transition towards “smart factories” and Industry 4.0 practices.

Of the 203 respondents—manufacturing executives, owners and leaders—89 per cent reported experiencing a benefit from technological upgrades.

There’s also been a noticeable decline in those who say that are not currently applying IIoT: -14 per cent compared to 2024, to be precise.

This duality of economic struggle and the need for innovation creates an opportunity for a more in-depth look at how these elements have influenced Canada’s manufacturing landscape over the past year. The Advanced Manufacturing Outlook survey focused on Industry 4.0 technology adoption, how it’s used, its perceived limitations and some of the aforementioned challenges that advanced manufacturing technologies are trying to help mitigate.

The research for the report was led

by Bramm Research Inc. in Oakville, Ont., and conducted during lateMay to mid-July. The research was in partnership with sponsors MNP and FedEx, as well as EMC and Alps Welding Ltd. For this survey, advanced manufacturing is defined as “manufacturers focused on interconnectivity, machine learning, automation and the analysis of real time data that involves the IIoT, the cloud, advanced computing and artificial intelligence.”

developing smart products has increased, with 67 per cent of respondents reporting involvement in this area—an increase of 14 per cent since last year.

The benefits of technology upgrades are evident, with 89 per cent of respondents noting positive outcomes. Specifically, 47 per cent reported increased product quality, a rise from 29 per cent in 2024, and 43 per cent experienced greater throughput compared to 32 per cent last year. While reductions in downtime and operational costs remain stable, there has been a noticeable improvement in staff efficiency, with 29 per cent reporting reduced staffing needs versus 19 per cent previously.

Looking to the future, 81 per cent of respondents anticipate that AI will positively impact various processes, including production, supply chain efficiency, and sales automation. When it comes to spending, investments in robotics and automation, as well as ERP systems, dominate the landscape. Those actively using IIoT have invested an average of $91,100, significantly higher than the overall average of $40,500.

Despite a general increase in technology spending intentions over the past three to five years (58 per cent), there have been

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declines in specific areas such as data capturing machines and advanced analytics.

Familiarity with IIoT appears to correlate with consistent spending trends, as 63 per cent of knowledgeable respondents reported increased expenditures.

Data collection methods among IIoT-savvy respondents show that 72 per cent still rely on spreadsheets, while 58 per cent use integrated ERP systems. There has been an uptick in spreadsheet usage (up 8 per cent since 2024) and MRP adoption (up 6 per cent), although reliance on big data sensors has declined by 8 per cent.

In terms of monetization, operational efficiency remains the primary method (65 per cent of respondents), but its popularity has decreased by 5 per cent. Increased monetization efforts through supply chain engagement and analytics for external sales are noteworthy, both rising by 11 per cent since 2024.

Lastly, over half of the respondents familiar with IIoT (54 per cent) are now utilizing machine learning or artificial intelligence within their organizations, up from 45 per cent last year. There has been an 8 per cent increase in the use of these technologies across multiple areas, reflecting an ongoing trend toward digital transformation.

However, the report also highlighted several key challenges and among manufacturers familiar with IIoT. The most significant obstacle to developing and implementing technology strategies remains funding challenges, with 51 per cent of respondents citing this issue, an increase from 35 per cent in 2024.

Although integration with legacy technology and resistance were cited as significant hurdles in last year’s report, these concerns have diminished, dropping from 47 per cent to 38 per cent and from 43 per cent to 35 per cent, respectively.The shortage of skilled talent continues to be a pressing issue, affecting 45 per cent of respondents, although this is a slight decrease from 49 per cent in 2024.

Additionally, uncertainty about accessing available resources and fear of failure were identified as further challenges.

As for cybersecurity,. Those risks remain a serious concern among IIoT respondents, with 79 per cent expressing high levels of concern in 2025, up from 76 per cent in 2024. However, there has been a reduction in the percentage of respondents who reported experiencing a cyber-attack or breach, dropping to 68 per cent in 2025 from 74 per cent in the previous year.

October 2024 / Plant

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COVER STORY

AI in asset management AI isn’t just enhancing efficiency — it’s redefining the way companies manage assets. Here, Plant takes a close look at the current uptake rates, the latest developments and the future of AM.

BY TREENA HEIN The goals of plant asset management—among them improved efficiency, resource allocation and strategic planning—have not changed over time, but with the application of artificial intelligence (AI), these goals are much easier to reach.

And with this technology, unprecedented new goals are possible. It’s no exaggeration to say that AI is currently transforming how companies manage their assets (and entire plants), providing unsurpassed efficiency improvements in predictive maintenance, asset lifespan 14

Plant / October 2024

decision-making, automated optimization of asset operation and more.

Indeed, industry experts agree that companies that do not implement AI to harness their asset-generated data will eventually either be put out of business by competitors or acquired. Some companies have taken the plunge already, the socalled early adopters.

While Ray Morcos, CEO at Australia-based enterprise asset management firm Mainpac, describes the use of AI-level plant asset management (AM) as “still emerging” globally and “in the early stages,” he

<10% Estimated amount of industrial companies adopting AIassisted asset management, globally.

characterizes it has having “a growth rate that’s significant.” Morcos puts the estimated adoption rate among large industrial plants at 10-20 per cent globally at this point, but adds, “in North America and Europe, the penetration might be slightly higher.”

For her part, Stacey Jones, ABB’s global asset performance management portfolio lead, puts the percentage of AI-assisted AM globally at less than 10. Looking back, Jones observes that it was only a decade ago that in asset management, all plant operators and heads of maintenance could do was track data from asset sensors in a spreadsheet.

“They couldn’t scale that,” she explains, “and a team could only look at a limited number of critical assets to try and detect issues. Maintenance was mainly done according to manufacturer recommendations. With AI, we can scale asset management across a plant, and investigate mechanical or process issues much more efficiently.” She considers the release of user-friendly platforms such as ChatGTP and Microsoft Copilot to be significant drivers in AI adoption in manufacturing.

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Photo: PNG City / Adobe stock

AI

Managing asset lifespans, she adds, is another area where plant managers in the past have been only able to use their experience and simple calculations, but now is an area where AI can take analysis to new depths. The use of AI in asset management, Jones says, is all about AI lending its powerful and rapid mathematical strengths to support the human ability to make decisions.

AI’s real-time analysis and predictive capabilities “can save plants millions of dollars annually,” through things like “preventing costly failures and optimizing resource allocation,” says Ray Morcos.

Moving to the next level

Due to those strengths, Morcos characterizes AI-level AM as “a substantial leap” in comparison to the standard AM monitoring/ reporting/recommendation software that’s been in place for years.

He says the key difference between the two lies in AI’s ability to analyze vast amounts of both historical and real-time data, which significantly enhances predictive maintenance and decision-making.

In other words, “traditional software is often rule-based, reactive and dependent on static reports,” Morcos explains, “while AI can dynamically interpret patterns, make proactive recommendations and adapt to new information as it becomes available.”

Morcos further notes that the pattern recognition capabilities of AI-level AM systems are superior to traditional AM software, offering an entirely new level of insight. Both the accuracy of the analysis and its depth are more advanced, with AI capable of identifying subtle trends that may be missed by traditional AM software systems (although some of these systems can highlight trends based on historical data).

Overall, Morcos asserts that these deeper insights that AI’s real-time analysis and predictive capabilities “can save plants millions of dollars annually,” through things like “preventing costly failures and optimizing resource allocation.”

In an AM context, AI can also be used to provide more accurate and reliable asset parts inventories, ensuring the need for urgent parts is better met, identifying obsolete inventory and so on. AI can also design automation systems for a facility, says Clinton Schneider, VP, innovation and technology for Emerson’s final control business, producing various asset configuration layouts and interconnections. Plant-wide, AI can also detect ambient temperature changes and as appropriate, adjust asset operation levels accordingly.

Schmidt. “Analysis of data from the production process and the assets, the history of the plant and many other sources of data give an understanding of abnormal or unforeseen operations and countermeasures.”

That is, the system also enables comparison of the current plant state to the past, identifying, for example, that an exceptional situation currently occurring also happened 30 times in the last year, five times in the previous year and never before that. “Then you can narrow in on the operation and the equipment that’s causing the issue,” says Schmidt. “This helps the plant staff in making good decisions. It’s often hard to understand how something is building up, where in the process something is going wrong, so we work on sensing that early. And we can connect that to the knowledge bases of the plant to see how people in the past dealt with a similar situation, to better support current staff.”

To help deal with asset issues, Augmented Operator also offers a ‘What if ’ function where you can ask, for example, what will happen if a certain valve is closed, and the AI will very quickly list the consequences.

Schneider also notes the capability of AI ‘copilots’ to allow all plant personnel to access even the most complex value-add capabilities and operate as subject matter experts, with “the ability to interact using natural language.”

He explains that five years ago, Emerson (using augmented reality/virtual reality) enabled users of its AMS Optics system to be guided to a location and assisted them in pulling up manuals and instructions to maintain plant assets. “Now with generative AI,” he says, “you have the copilot model that you can use to access those same manuals or instructions, but you can do it in natural

Integrating AI in AM

ABB, a global technology company that specializes in electrification and automation solutions, has had projects exploring AI use in AM and plant management since about 2014. Benedikt Schmidt, leader of ABB’s digital applications process control platform, is currently working with colleagues in Germany on what they call Augmented Operator plant-assistance systems.

Schmidt explains that among the many benefits of these systems in asset and overall plant management is the significant benefit of continuity. “When plant managers retire or leave—and these people are really experts on their plants, they have been completely in tune with their plants for many years—you have a gap,” he notes. “There are a number of areas that AI can be useful to bridge that gap, given the complexity AM and plant management.”

He and his colleagues are currently piloting an Augmented Operator-related ABB AI system called Knowledge Extractor. “It is capable of analysing hundreds of millions of data points related to the production process in terms of all relevant elements,” says @PLANT_Magazine

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2024-09-20 7:22 AM

AI

COVER STORY

Five years ago, Emerson’s AMS Optics and augmented/virtual reality guided users to locations and provided manuals for plant asset maintenance. Now, with generative AI, the copilot model offers the same information, but users can interact in natural language, asking questions and receiving responses.

language, asking questions and getting responses versus searching or reading manuals.”

Schneider believes that these new abilities of AI to work in natural language will be “transformative” in driving AM productivity.

“AI can ingest all the documentation, support interactions, logbooks and application notes to create a product chatbot [with] vast knowledge to answer questions about the product,” he says. He adds that “using AI to analyze engineering specifications including product guides and user manuals, Emerson has developed automated responses for customer inquiries that historically would have required engaging with an engineer.”

According to Morcos, the rollout of AI-driven chatbots and virtual assistants is already happening in many industries to assist maintenance teams to quickly access information, troubleshoot issues and make decisions on the fly. He says this trend is likely to accelerate in the next few years as AI assistants become more sophisticated and integrated into existing AM platforms.

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Assets managing assets

Are we headed into a future where AI systems make autonomous decisions regarding asset and plant management instead of supporting human decision making? Or for that matter, a future where there are AI-powered robot assets that can do their own asset inspections and diagnostics (and even repairs) without human intervention?

Schmidt and Jones note that some of these systems are already in development. For example, there are mobile data-gathering units that can take video of the level of corrosion on assets, with software that will be able to carry out reliable analysis of the images and determine the best course of action.

There is already a robot asset that has successfully detected gas leaks. In 2023, Boston Dynamics’ robot dog Spot conducted an autonomous inspection of a 40-acre midstream gas plant. Equipped with visual and thermal cameras, a MUVE C360 gas-detection sensor and more, Spot was able to “sniff out” a potentially hazardous gas

leak at a midstream gas plant during an autonomous inspection.

However, everyone in the industry agrees that if autonomous asset management—and autonomous assets such as Spot—are to become widespread, they not only have to be safe and as efficient (or more efficient) than human workers, but also cost-effective.

In addition, Schneider notes that future extension of AI in asset management poses challenges “including the right format and context for data quality, storage, usage, privacy, interactivity and access.” AI-level asset management systems must also be carefully assessed for potentially poor, incorrect, biased or harmful outputs, he says, and must be securely and effectively integrated with existing processes and systems.

Like any technology in development, AI has its share of potential challenges on the road ahead. But with the significant benefits that AI provides in managing assets and given that early adopters are seemingly enjoying solid success (not to mention AI is now engaged in improving its own capabilities through writing code itself), the industry can expect that these hurdles will be overcome, especially as AI continues to grow in power.

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FEATURE

Securing the future Navigating cyber risks in the digital era of manufacturing. BY KIRSTYN BROWN As the manufacturing industry becomes increasingly digital it also faces growing cyber risks.

The integration of IoT devices, automation and sophisticated data analytics has made manufacturing facilities attractive targets for cyber criminals. Add to that the fact that many facilities rely on legacy systems, plus the industry’s low tolerance for downtime, and manufacturing has a big target on its back.

“I would use the analogy of a ‘perfect storm’,” says Kenrick Bagnall, founder and senior cybercrime investigator at Koncyber. “You have today all these elements that are coming together… in an industry that has been built on automation and interconnected systems, and unfortunately, a lot of legacy systems. All these things are combining in 2024 to make the industry quite vulnerable.”

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Plant / October 2024

And the numbers don’t lie. According to IBM’s X-Force Threat Intelligence Index 2024, manufacturing was the most targeted sector of cyberattacks globally for the third year in a row, accounting for 25.7 per cent of attacks. Of those incidents, 71 per cent of them involved ransomware.

These trends highlight the urgent need for enhanced cybersecurity in manufacturing—the IBM report also found that in nearly 85 per cent of attacks on critical sectors, compromise could have been mitigated with basic security practices, such as patching, multi-factor authentication, or least-privilege principles.

Who’s most at risk?

While all areas of manufacturing are vulnerable to cyberattacks, some, such as automotive, are more susceptible than others.

“Auto is a primary target because the automobile industry works on just-in-time type movements,” says Robert W. Beggs, CEO of Digital Defence.

Just-in-time (JIT) systems depend heavily on real-time data and communication, meaning that a cyberattack could quickly cascade through operations, halting production and causing financial losses.

“If I can stop your production for a day and a half, the penalties that you pay are significant. Therefore, it makes it much more reasonable to pay a cyber attacker a ransom so that you can get back to work and avoid penalties as well as losing business,” says Beggs.

Percentage of Other types of high-risk industries cyberattacks in the are those that have to do with military manufacturing sector that involved defense. Not only do the sensitive nature of their information and ransomware. reliance on complex supply chains and interconnected systems create vulnerabilities, but the potential impact of a breach—ranging from national security threats to the theft of intellectual property—makes them prime targets.

“For example, if you make speakers or devices that have a military

71

%

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Photo: TenorSpark / Adobe stock

CYBERSECURITY

application, though you don’t consider it, you become an automatic target for theft of intellectual property,” says Beggs. “So, it’s not just money that is driving the cyber insurance threats, it’s the fact that various national organizations want to obtain intellectual property rather than working to produce it themselves.”

Third (and fourth) party risks

Manufacturing is an ecosystem with facilities spread worldwide yet are interconnected via vendors and supply chain.

That means if one company gets hit by a cyberattack, it can set off a chain reaction across the whole industry.

“There’s a lot of statistical data out there showing that a number of cyberattacks against organizations, including manufacturing, are not necessarily attacks on the organization itself. It’s by way of a third party,” explains Bagnall.

In fact, a 2023 report published by cyber intelligence agencies SecurityScorecard and The Cynthia institute found that third-party breaches accounted for 29 per cent of all cyberattacks.

“A manufacturer could say, ‘Well, we

have our house in order. We have a mature cybersecurity program.’ But what’s happening with all of your third parties?,” says Bagnall. “And from a cybersecurity leadership perspective, have they really taken a look at the language in the paperwork that defines the terms of work and operation between these third parties?”

Statistics also suggest that the third-party risk is largely underestimated. The 2023 SecurityScorecard report showed that 98 per cent of organizations have a relationship with a third party that has been breached, and 50 percent of organizations have indirect relationships with at least 200 breached fourth-party vendors.

A recent example of a third-party breach is the 2023 ransomware attack on a business partner of U.S. semiconductor giant, Applied Materials, which reportedly cost $250 million in the following quarter.

The year prior, Toyota halted production at 14 of its manufacturing plants in Japan following a cyberattack on Kojima Industries, a supplier of plastic parts. As a result, Toyota suspended operations across all 28 production lines at these 14 domestic facilities. This disruption

reportedly affected roughly one-third of Toyota’s global production.

The trouble with legacy systems

Legacy systems in manufacturing pose serious cybersecurity challenges thanks to outdated technology and obsolete software, often leaving companies vulnerable to emerging threats.

“This is incredibly common in plants, a lot of them use numerical controllers, older devices that continue to produce whatever is being manufactured, but they’re no longer supported,” explains Beggs. “And it’s very hard to replace some of the codes, some of the operating systems for these industrial devices.”

What’s more, integrating legacy systems with newer technology can create additional vulnerabilities, as the older systems may not be designed to handle modern security threats or compliance requirements.

“For example, if you have a robot on an assembly line, is the robot completely secure?” says Beggs, who adds that there have been instances reported where hackers have caused robotic systems to work in unexpected ways.

“Interacting with it in an unexpected way

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October 2024 / Plant

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CYBERSECURITY

FEATURE

could cause a robotic arm to move out of a designated safe area and can result in potential injury to humans or worse.”

Bagnall advises that if legacy systems are causing operational issues, to take them off the network immediately; do not connect them to the internet. Secondly, use more old-fashioned methods to move data between computers, like secure removable drives. Lastly, add extra layers of security by heavily segmenting the network with multiple firewalls and intrusion detection systems.

According to Bagnall, legacy systems are an issue manufactures will have to deal with indefinitely. “I don’t think we’ll ever get rid of this legacy system issue. Let’s face it, as soon as you buy the new piece of tech, it becomes obsolete because the newer version is in the truck on the way to the store. So, there will always be a measure of legacy out there,” he says.

Employee training is key

Another way companies can mitigate cybersecurity risks is by training employees in cybersecurity awareness through education sessions and breach simulations. When staff are educated about potential threats and how to spot them—like phishing or ransomware—they’re better equipped to protect the company.

Regular training keeps everyone up to date on the latest dangers and best practices, helping to create a culture of vigilance. This not only lowers the chances of a security breach but also boosts the overall strength of the manufacturing operations against new cyber threats.

“There’s a sort of colloquialism in the industry about human beings being the weakest link in the chain of cybersecurity,” says Bagnall, adding that effective cybersecurity awareness must start with leadership.

20 Plant / October 2024 PLT_Alps_Fall24.indd 1

The role of leadership

In today’s manufacturing sector, cybersecurity should be a primary business priority rather than an afterthought. Bagnall says its crucial for leadership to integrate cybersecurity into their core functions, stressing the need for specialized professionals who understand the risks and know how to implement a cyber resilience program.

As Bagnall explains, “If I’m chairman of the board of this manufacturing company or if I’m the CEO…Cybersecurity has to be part of my core business function and not just an add-on. So how do you do that?

You do that by bringing in a professional, bring in an expert.”

Bagnall also emphasizes the importance of cultivating a culture of cybersecurity awareness and responsibility throughout the organization. This involves making cybersecurity engaging and rewarding for employees, who are a vital asset in safeguarding the company. “Employees are the greatest asset. So, you just leverage that now from a cybersecurity perspective.”

Moreover, he says, leadership must recognize that cybersecurity is an ongoing process rather than a one-time fix.

With technology evolving rapidly, regular assessments, updates, and simulations are essential to maintain a robust security system.

But while preventative measures are key, Beggs advises companies also have a solid recovery plan. “What I like to tell people is, assume you’re going to get attacked at some point. How can you gracefully? Recover. Do you have backups? Do you have cyber insurance? Do you have IT support to call on in the event that you need assistance in responding to an attack?” he says.

“Doesn’t matter how big or small you are, assume there’s going to be that failure and ask yourself how you’re going to manage the recovery.”

KENRICK BAGNALL’S FIVE-STEP APPROACH TO CYBER SECURITY

To strengthen cyber resilience, Bagnall recommends a five-step plan for leadership, summarized below.

1. Understand the Data: Identify where data is stored, ensure it’s secure and determine if it needs encryption, both at rest and in transit. Cybercriminals are constantly researching and targeting your data, so having a comprehensive understanding of it is crucial.

2. Conduct Vulnerability Assessments: Regularly test your infrastructure for weaknesses and learn where you’re most vulnerable through penetration testing and breach simulations. The controlled environment lets you document the responses and prepare for real-world incidents.

3. Focus on Education and Awareness: Train your staff to be the first line of defense against cyber threats. Involve HR in your cybersecurity program, as they can provide valuable insights about staff and potential insider threats.

4. Run Breach Simulations: Practice responding to breaches to improve your team’s reaction under stress. This ensures that when a real incident occurs, your team’s response will be effective, instinctive and informed.

5. Plan for Response and Recovery: After a breach, work with law enforcement, forensic experts and breach counselors to address and resolve the incident. Ensure robust backup systems are in place and regularly tested to facilitate quick recovery.

PLANT.CA 2024-09-13 11:45 AM

TECH CENTRE

NEW PRODUCTS BLACKBERRY QNX UPGRADES AUTOMOTIVE SOFTWARE PORTFOLIO TO SUPPORT MANUFACTURERS

BLACKLINE SAFETY LAUNCHES NEXT-GEN SAFETY MONITOR EXO 8

Blackline Safety recently launched a next generation connected area monitor that advances gas detection and early hazard identification for companies and first-responders, providing organizations and communities with unprecedented protection.

EXO 8 helps teams rapidly respond to incidents involving hazardous substances and ensure the safety of workers, first responders, the public and the environment during these events. Real-time connectivity provides situational awareness that can be shared amongst all responders. Automated analytics provide insights into incidents after the event, enabling teams to understand what happened and take proactive measures to improve safety.

EXO 8 comes with a full warranty and flexible purchase options that include the ability to own or lease to maximize CAPEX or OPEX budgets.

First product shipments are scheduled for November 2024. www.blacklinesafety.com

EATON INTRODUCES XH300 WEB PANEL M

Eaton recently unveiled the XH300 web panel, offering flexible HTML 5 visualization in a diverse range of applications.

From classic machine and system control to building automation, IoT, smart home and harsh industrial environments, the XH300 promises maximum flexibility, robust design, high-quality display and powerful performance.

Combining capacitive touch technology with an IP65-rated hardened glass screen, the XH300 ensures durability in industrial applications. The device offers the ease of use of a smartphone screen for robust industrial needs.

Equipped with a high-performance CPU and powerful RAM, the XH300 supports complex web @PLANT_Magazine

content and ensures fast image changes.

Ideal for displaying operating data or web visualizations from PLCs, control relays or other Eaton devices. The XH300 offers various options to connect Eaton (or third-party) automation products, facilitating seamless data collection. www.eaton.com

ABB UNVEILS NEXT GENERATION OF ELECTROMAGNETIC FLOWMETERS

ABB has launched its latest generation of electromagnetic flowmeters, streamlining its product portfolio, converging on two highly versatile and advanced products: ProcessMaster and AquaMaster.

The new ProcessMaster is intended for applications inside industrial and utility plants, while an updated line of AquaMaster models is designed for outside applications, offering exceptional measurement accuracy in water transportation, distribution and billing.

These advanced models feature high performance, modularity, and embedded IoT connectivity, allowing for customizable communication options and easy upgrades without pre-pairing configurations. This modularity enhances adaptability to changing needs, lowers total cost of ownership, and extends product lifecycle.

The new ProcessMaster and AquaMaster lines also benefit from smart new manufacturing methods that allow ABB to shorten lead times. www.abb.com

BlackBerry has upgraded its QNX® OS for Safety with the addition of a POSIX-compliant, ISO 26262 certified, integrity checking filesystem to provide OEMs and other embedded software suppliers an additional layer of validation when building safety-critical systems.

Certified to ISO 26262 ASIL B, the automotive industry’s functional safety standard, QNX® Filesystem for Safety (QFS) verifies the integrity of all filesystem contents at runtime, enabling embedded software developers to detect if any corruption has taken place and to take all necessary actions to maintain the safety of the system.

If a file essential for safety functions like collision avoidance becomes corrupted or misconfigured, it may go unnoticed until a critical moment, risking dangerous outcomes. The QNX Filesystem for Safety mitigates this risk by validating all data and performance parameters for safety-critical systems. www.blackberry.qnx.com

ANCA DEBUTS NEXT GENERATION TECHNOLOGIES AT IMTS

ANCA, an Australian-based global supplier of CNC tool and cutter grinders, revealed new technologies at IMTS in September.

The North American debut of the EPX-SF, ANCA’s advanced stream finishing machine, offers consistent micro-cutting-edge preparation, controllable nano-smooth surface finishing, and seamless automation. It’s key features include its ability to increase tool life, precision, workpiece quality and cost-effectiveness.

ANCA also revealed to the American market for the first time AIMS Connect, which is the production control of the ANCA Integrated Manufacturing System (AIMS) and enables the integration of different machines, offering full control over all processes and workflows. AIMS Connect’s smart job management and production control solves common challenges to increase productivity, reduce errors, and tackle labor challenges while increasing machine utilization and reducing the cost per tool.

ANCA revealed it is also formulating solutions for reducing the air consumption of machines which not only has a significant impact on machine running costs but also contributes to more sustainable manufacturing processes. www.machines.anca.com For more products, visit: www.plant.ca/products October 2024 / Plant

21

POSTSCRIPT

BY JAYSON MYERS

Looking beyond Industry 4.0

T

he IT world is already calling it Industry X.0.

It’s an easy way to capture the idea that leading-edge technology applications have taken us way beyond the world of connectivity and the integration of information systems through the Industrial Internet of Things (IIoT). That was what Industry 4.0 promised only 10 short years ago. Now, it’s almost standard operating practice for manufacturers in Canada and right around the globe.

This year’s Advanced Manufacturing Outlook survey tells us that over two-thirds of Canadian manufacturers are now using IIoT for a variety of purposes— from improving productivity and operating efficiencies, to gaining greater visibility of production processes, factory flow and business management processes. More manufacturers are intending to invest more money in IIoT and other digital technologies. Meanwhile, the number of manufacturers reporting that they are not applying IIoT has fallen dramatically.

The benefits of investing in digital technologies are now becoming more apparent in practice. Improved quality control, increased throughput, reductions in downtime, lower operating costs and relief in staffing requirements are only some of the benefits that companies are reporting.

There are real learning curve effects in evidence too. More manufacturers are reporting more benefits this year as more technologies are being applied and used as standard tools in operating processes.

But it does take time. Fewer than half of the manufacturers that have invested in advanced technologies are realizing quality improvements as a result. Only 43 per cent are seeing increases

22 Plant / October 2024

in throughput and 37 per cent reductions in operating costs.

While, on the whole, these results are significantly better than last year, they are a good reminder that investments in technology are no guarantee by themselves of short-term improvements or long-term success in advanced manufacturing.

It’s a common phenomenon.

A recent survey undertaken by Statistics Canada observed that over 65 per cent of Canadian manufacturers fail to meet their business objectives when they invest in new technologies. According to some of the world’s leading consulting firms, 75 to

maintenance. How should data be collected and structured to ensure high quality input? What skills need to be in place to run digital systems efficiently and effectively? How should processes be structured to optimize the use of digital tools? What other technologies need to be in place and integrated in application?

What privacy and cybersecurity checks need to be deployed to guarantee data protection?

A third challenge is to look beyond current ways of doing things. The adoption of any new technology will require processes to change.The risks and costs involved need to be well considered

“That is why innovation is so important.

The future will be one of zero-or-lowemission vehicles and buildings, energy efficient processes in industry, and less carbon intensive and recyclable products for consumers.”

80 per cent of digital transformation projects fail. The failure rate for ERP implementations varies from 60 to 80 per cent, according to whom you ask. My bet is that the success rate of digital applications installed on time and on budget, and that actually meet the business objectives for which they are intended, could probably be measured by the fingers on one hand.

A part of the challenge is identifying the purpose for making technology investments in the first place. What value will they create for customers?

Are they necessary to improve operating processes? Where in those processes should they be located in order to improve flow or enable better decision-making and control?

A second challenge is to understand the business requirements for successful implementation and then for profitable use and

good case in point. It’s no longer a question of machines replacing labour in undertaking repetitive tasks, but now of enabling machines to do complex, and sometimes spontaneous, tasks that labour simply cannot perform. With both AI and robotics, however, it takes time for both people and machines to learn— one and a half to two years on average—before the benefits of either type of implementation can be expected to materialize.

All this is to say that companies will make mistakes—and usually very costly ones—if they rush into technology without well thought-out, far-sighted but flexible business plans and data strategies, process improvement and technology implementation plans, and skills development and training programs. Canadian manufacturers are moving well beyond the first-adopter stage when it comes to digital technology—whether it’s IIoT and Industry 4.0, or more recently, AI and Industry X.0.

So, there’s a lot that can be learned from others, both in terms of what has worked and, more often than not, what hasn’t. In that sense, it’s not really a technology race at all.

It’s a race to learn; a race to gain knowledge about managing innovations. Once it begins it never ends. In a world of Industry X.0, the winners will ultimately be the ones able to transition successfully from technology adoption for process improvement to technology deployment for value creation.

It all begins by asking the right questions. And doing the right homework. This year’s Advanced Manufacturing Outlook report is a good place to start! The intelligence it contains can help you make sure you avoid many of the mistakes your competitors have made and build on the successes that many companies are already experiencing in their journey to Industry X.0.

before implementation begins.

The additional capabilities that digital technologies can deliver need to be understood as well, to maximize their true benefits in use. Technology implementations rarely deliver adequate cost savings or operational improvements to justify the investments required in implementation and maintenance if they are treated simply as a quick fix or as replacements for labour or existing ways of doing things.

Today, the unprecedented capabilities heralded by Artificial Intelligence in analysis, prediction and autonomy provide manufacturers with a virtually new playing field for product and process innovation and revenue generation. Welcome to Industry X.0.

Advanced robotics is one AI application currently in use by almost nine per cent of manufac- Jayson Myers, CEO, Next Generation turers across Canada—that is a Manufacturing Canada.

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Embedded Web Server

Intelligent Code Execution

With BRX’s embedded Web server, you can instantly access system status, diagnostic information, and monitor memory usage from any Internet-ready device.

With robust task management and a variety of interrupt styles for task prioritization.

Rest API The integrated Rest API and secure HTTPS protocol allow BRX to work with flow control tools like Node-RED® in order to supply high-level IT systems with the plant-floor data they need.

Must-have IIoT Protocols With the growing number of IIoT platforms and cloud computing services, BRX controllers utilize the industry-standard MQTT(S) and FTP protocols to seamlessly integrate with asset management/IIoT platforms including: • Microsoft Azure®

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• IBM Watson®

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Discrete, process, and multi-axis motion control instructions to support even complex applications, executed with familiar ladder logic programming.

Powerful Math Functions Enabling scripted math and algebra, to support rich data pre-processing right at the edge.

Research, price, buy at:

www.BRXPLC.com

Orders over $49 get FAST FREE SHIPPING Our shipping policies make it easier than ever to order direct from the U.S.!

See Web site for details and restrictions at: www.automationdirect.com/canada

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Fast free standard shipping* is available for most orders over $49 U.S., and that includes the brokerage fees (when using an AutomationDirect nominated broker). Using our choice of carrier, we can reach most Canadian destinations within 2 to 3 days. *Free shipping does not apply to items requiring LTL transport, but those shipments can take advantage of our negotiated super-low flat rates (based on weight) that include brokerage fees.

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