Smart Manufacturing for Digital Value Creation

That is because digitization makes production smarter and more connected. New processes like additive manufacturing make it possible to manufacture one-offs and small runs inexpensively. Additive manufacturing is also known as 3D printing, and unlike processes such as plastic injection molding, 3D printing can produce one-offs or small runs.

A further advantage of 3D printing is component geometries that cannot be achieved by means of injection molding or milling. Aerospace technology companies were the first industrial users of metal printers. SpaceX is a case in point. SpaceX uses metal printers to make the domes of its attitude thrusters while Rolls-Royce uses metal printers to manufacture parts such as turbine blades on-site at many airports.

The advantage of this procedure is that spare parts no longer need to be expensively packaged and shipped. They also don’t take up space at the airport – and it would be plenty of space because engines are made up of thousands of components large and small. That has repercussions for both production (fewer small parts are manufactured) and logistics (there is less shipping), and costs are reduced accordingly.

So modern manufacturing processes are parting company with mass production. Increasingly often small runs are manufactured on demand instead – up to and including one-offs. In Industry 4.0 this is frequently referred to as batch size one. The difference between this and previous one-off manufacturing, as in special machine construction, is that products are no longer made by (human) hand but, say, by robots, using digital technology.

Progress achieved by digital transformation also relates to maintenance and repairs. The coronavirus crisis poses problems for many engineering and automation technology businesses. Technicians can no longer be sent out to solve them on-site, and global travel seems likely to be difficult for quite a while. That is why augmented reality offers an alternative.

In remote maintenance the manufacturer’s specialists help on-site personnel to solve the problem. They can display assembly steps for spare parts or users can work interactively, downloading documentation as required. By wearing and using the data glasses they will always have both hands free with which to work.

Eventually – and in the medium term – digital technologies will change the business models of midrange enterprises by reducing logistics and personnel costs. That will free up additional resources, enabling them to respond with innovations to changes in demand and market trends.