THE BIG IDEA
04
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THE IT SOCIETY / Issue 04/2019
Digitalisation –
The Key to Scoring at the Manufacturing Game Industry 4.0 is no longer an emerging force – it is here. Through automation, machine learning, advanced business-intelligence solutions and greater connectivity, Industry 4.0 has empowered manufacturers around the world to achieve significant productivity gains, better returns on investments through longer equipment lifetime, and reduced downtime.
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2018 McKinsey & Company report1 forecasted that the impact of Industry 4.0 on member economies of the Association of Southeast Asian Nations (ASEAN) will be between $216 billion to $637 billion a year by 2025. Many global multinational corporations and manufacturing conglomerates have also identified digitalisation as a top strategic priority. Notably, early adopters of digital innovation are already seeing significant gains in bottom line.
https://www.mckinsey.com/business-functions/ operations/our-insights/industry-4-0reinvigorating-asean-manufacturing-for-thefuture
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THE NUMBERS SPEAK FOR THEMSELVES One such manufacturer is SATS BRF (now known as Country Foods). Within a few months of adopting Internet of Things (IoT) across their three processing plants and over 70 meat-processing machines, the company saw a 30% increase in equipment output and a 25% reduction in labour-hours. Through optimising Overall Equipment Effectiveness (OEE) performance real-time, they were able to
SAMUEL TAN Member, SCS-SMF Manufacturing Tech Interest Group Chief Executive Officer & Co-founder, Auk Industries
JOSEPH LUM Member, SCS-SMF Manufacturing Tech Interest Group Chief Technology Officer & Co-founder, Auk Industries
level-load their machines and schedule manpower more efficiently. In addition, IoT replaced the previously labour-intensive and imprecise manual tracking to empower 24/7 real-time data collection and decisionmaking based on a “single-source-oftruth”. In the case of another regional beverage company, the implementation of an industrial IoT system saw its bottling plant’s throughput productivity increase 80%.
