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MANUFACTURING INDUSTRY
Technology Applications for Business
Manufacturing Industry has currently been among the high growth sectors in India. The
current Covid Scenario, global Intentions of moving the manufacturing capacities out of China
and various government backed schemes like Make in India, Atmanirbhar Campaign and others
have the potential to place India as a global manufacturing hub of the world. The main reasons
driving these are the varied range of material and human resources availability all throughout
the country. However, it must also be noted that the industry needs to be revolutionized through
the use of technology to be able to cater to the ever-increasing demands.
The Indian Manufacturing Industry has become one of the most lucrative investment
options for global investors as it is expected to reach $1 trillion by 2025. The implementation of
GST has made India a common market with GDP of $2.5 trillion and a population of 1.32 billion
making it a huge potential draw for investors. With majority of the sectors showing positive
growth (pre Covid) strong growth was recorded in the production of basic metals (10.8 per cent),
intermediate goods (8.8 per cent), food products (2.7 per cent) and tobacco products (2.9 percent)
(Other sectors in Annexure 2). India’s Index of major core industries stood at 131.9 in FY20.
Manufacturing industry is not what it used to be years ago, now it's been using digital
technologies to improve manufacturing processes, enhance customer experiences and also
leverage technology to adapt to fluctuating market dynamics and also do it as quickly as possible
to get the first movers advantage. Companies have begun using technologies like Artificial
Intelligence, machine learning, IOT, Process automations, Image processing etc. to take these
processes to the next level. The concept of Industry 4.0 which is defined as automation of
traditional manufacturing and industrial practices, using modern smart technology (Cyber
physical systems) and having machine to machine communication enabled is also beginning to
gain momentum in the industry.
b) Process optimization: If the manufacturing processes are not analyzed and optimized on a
periodic basis it can lead to overuse of resources like energy, fuel, and raw materials. The
process of optimization is a fairly complex one for humans and achieving 100%
optimization is not possible.
c) Efficiency Calculation: Machine run time and efficiency calculation has to be done
manually in the current scenario. Monitoring and analyzing parameters that are critical to
machine health is a tedious activity when done mechanically. Optimizing machine
downtime by predicting failure before it occurs is not possible in most current scenarios.
e) Real time insights related to process were not possible as no technology existed to trace
machine data in real time.
This section is broadly divided into two parts. In the first part we shall be discussing digital
transformation implemented in the main manufacturing processes while in the second part we
shall discuss some details about digital technologies used in subsidiary activities of
manufacturing like office works, report generation data entry etc.
This study uses three case studies to explore possible applications of technologies like IOT,
Image processing, cloud computing, data analytics, RPA and of course AI/ML. The study
explores the application by explaining how these technologies helped Siemens, L&T and other
manufacturing companies in digitally transforming their processes.
Case 1:
Product: Mindsphere -A smart cloud for industries
Company used: Siemens
Application: Process tracking
Cost Involved: Siemens claims cost as $10 billion (includes cost of acquisition of partner firms)
Technology used: IOT, Data Analytics and AI, cloud services
Description:
MindSphere is the cloud-based, open IoT operating system from Siemens that connects real
things to the digital world using sensors, and enables powerful industry applications and digital
services to drive business processes. In addition, today’s company’s transactions and processes
are loaded with data. It has become one of the most important resources essential in the age of
the Internet of Things and Data Analytics. To unleash full potential and get maximum benefit
from the data we must transform this flood of data into useful knowledge and actionable insights.
However, capturing and analyzing data from countless sources is a staggering challenge that's
why Siemens developed Mindsphere, the cloud-based open IOT operating system, so that
companies of every type and size can unlock the real full potential of their data assets and put
them to profitable use. It rapidly connects existing assets and systems of various manufacturers
and makes it possible to gather data from a multitude of sources and links it to advanced
analytics and other ERP applications. This system then transforms this data into valuable
knowledge, knowledge that helps increase availability quality and efficiency across the value
chain knowledge that solves problems before they occur knowledge that will speed up processes,
open up new avenues, improve processes and simplify decision-making knowledge, which
ultimately makes companies better. Mindsphere transforms data into knowledge and knowledge
into actionable insights and these insights transform into business success.
Siemens' latest gas turbines have over 500 sensors connected to the internet that continuously
monitors and sends data of critical parameters like temperature, pressure, stress, and other
variables. All this information is fed to their AI enabled data analytics system which uses neural
networks. Siemens claims their system is learning how to continuously adjust fuel valves to
create the optimal conditions for combustion based on specific weather conditions and the
current state of the equipment. More combustion results in few unwanted by-products and thus
use of these technologies ultimately helps make the system less waste generating and efficient.
By companies having a full understanding of all resources available and with actionable insights
obtained using data generated from them, the goal is to eventually make manufacturing
providing mass customization possible. The objective is to achieve rapid turnaround from design
to delivery with optimal use of machines and other resources.
Benefits:
Industries used in: Primarily in Automobile industry, Bottle making plants, Gear Manufacturing
Company
Description: Visual inspection can get extremely difficult for human eyes in case of continuous
production scenarios. These defective goods getting passed in the inspection and reaching the
end customers can have a variety of consequences, to avoid these and to ensure 100 % accurate
inspection of defects Nano nets came up with this solution. It involves the analysis of products
on the production line and comparing them to standard or desirable product parameters. Visual
inspection can also be used for other purposes like assessment of the various equipment in a
production facility such as storage tanks, pressure vessels, piping, and other equipment. In some
of the cases the conditions are not favorable for humans to work because of the noise, waste
gases etc. so in such cases automated visual inspection can be a boon.
1. Training the Machine learning model: Machine learning model is fed with training data
and it generates a reference model. The training model will use hundreds of product
images to learn about the characteristics of the product, and use this knowledge to detect
defective products in the later stages.
2. Image Capture: This stage consists of a camera to capture the image of product line or
levels to be monitored. In this stage it is to be ensured that there are proper photographic
conditions exists for the image of the object to be captured. The photographs taken are
not limited to the visible spectrum, but can also make use of infrared, ultraviolet, and
other wavelengths to bring out the necessary details of the product.
3. Image cleaning, processing and comparison with training data: In this step the image
captured are initially worked upon by image processing tools to slightly improve the
image and generate an input for the testing.
Benefits:
1) The machine vision has a wider spectrum of visual perception Compared to human sight, it
can also work in the Ultraviolet, X-ray and Infrared regions of the spectrum as well which the
human eye isn't capable of. This can help in detecting defects not just on the surface but also in
the internal structure of a product. For example, internal cracks in steel rods.
2) Faster observations: These system based visual inspections are faster and more accurate as
compared with human vision. The errors of human vision like parallax error and optical illusion
etc. are completely eliminated in this process.
3) Enhanced capability as compared to humans: The human eye is incapable of making precise
measurements, especially on a very tiny scale. Even while comparing two similar objects, the
eye might not notice that the two objects are of the same size or not.
Section 2:
This section will cover the digital transformations in the subsidiary activities of manufacturing
processes
Application: Automatic Generation of Monthly Stock Report and Budget variability with
respect to planned budget
Description:
a) Process followed Prior RPA: Initially the operators from various data used to download
the data of stock and inventory changes for the month thru the ERP system. This data is
then brought into excel files as this data needs to be segregated into product types using
fixed rules (E.g. All products beginning with CAT no 012 belong to product X). Once the
data is segregated into product types, another set of costs data is downloaded for the same
set of products from the ERP system using a different transaction. These data are then
combined in excel using vlook up and other functions. At the end of this step we obtain a
stock level in terms of quantity and price for each product. This data is then compared
with the budgeted values of cost for the products and a consolidated report consisting of
products lists its quantity, budget actually used and planned budget. This report is used by
the senior management to monitor the quantities available and the budget used in
comparison with the planned budget.
b) With RPA: There are pre coded task bots which are set to get triggered at specific
schedules. These bots will perform all the tasks that previously required humans to
perform in the exact same way. The biggest advantage is these bots can handle the
mundane works quickly correctly and efficiently and the time of humans can actually be
used for more value-added activities.
Benefits:
Based on our study and experience we suggest the following process for implementation of
digital transformation:
a) As-Is study: In this step the processes involved need to be studied and mapped out on a
flowchart or process map chart, post which the teams should identify the pain areas and
areas of improvement in the process.
b) Technology study: In this step the team should study the technologies or solutions
available in the market and try to find the one which can reduce the inefficiencies or
issues or can improve the process.
c) Feasibility study: The technology selected should be analyzed for feasibility in terms of
applicability to the company’s process, cost analysis and a go/No-Go decision should be
made.
The year 2020 has been a booster for application of digital technology in manufacturing with the
Covid 19 scenario making even the most hardwired companies to adapt these technologies.
These companies will be the pioneer to use and also motivate others to move towards these
technologies in the near future. In the wake of rising production demand and the limited
turnaround time available, most companies will implement digital transformations in their
strategies for the future. In the corporate world, the paradigm shift from boosting production
quantities to promoting innovation and enhancing efficiency, is visible and is the major driver for
success of digital transformations. However proper care must be taken in terms of data security
and encryption while progressing towards these technologies as data security will be a very
important aspect in the times to come. Adherence to security standards like ISO 27001 must be
mandatory for organizations moving towards digital transformation. These standards help to
manage the security of assets such as financial information, intellectual property, employee
details or information entrusted by third parties and sets up rules and regulations to be followed
and adhered to in the implementation of transformations.
Thus, in short the current scenario and industry mindset predicts the rapid rise in the
implementation of digital technologies in the manufacturing industry with an eye on security
guidelines and policies to enhance data security.
References:
1. https://www.ibef.org/industry/manufacturing-sector-india.aspx
2. https://www.manufacturingtodayindia.com/sectors/6398-future-of-manufacturing-in-a-
digitally-changing-world
3. https://www.ibef.org/uploads/industry/Infrographics/large/Manufacturing-Infographic-
June-2020.pdf
4. https://www.wfeo.org/wp-content/uploads/stc-information/TIP_Magazine.pdf
5. https://www.ijsr.net/archive/v5i6/NOV164730.pdf
6. https://emerj.com/ai-sector-overviews/machine-learning-in-manufacturing/
7. https://siemens.mindsphere.io/en/solutions/machinesense-use-case-machine-health-
monitoring
8. https://siemens.mindsphere.io/content/dam/cloudcraze-mindsphere-assets/03-catalog-
section/03-applications/Siemens-MindSphere-MindApps-and-Applications-fs-68079-
A10_tcm76-20915.pdf
9. https://www.thebrief.co.in/artificial-intelligence-in-manufacturing-sector-india-need-
scope-challenges/
10. https://nanonets.com/blog/ai-visual-inspection/
Annexure:
Annexure 1
Annexure 2
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