AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

AI and It’s Application in Indian

Manufacturing
Transforming Indian Manufacturing
Through AI Integration
 Introduction
The global manufacturing landscape is undergoing a
profound transformation driven by Artificial Intelligence
(AI). Predictive maintenance, automated quality control, and
supply chain optimization are key AI applications
revolutionizing the industry. With the potential to contribute
$15.7 trillion to the global GDP by 2030, AI offers substantial
economic benefits.

India's manufacturing sector, contributing 17% to the GDP,

presents both opportunities and challenges for AI adoption.
While a growing domestic market and a skilled workforce
provide advantages, infrastructure limitations and skills gaps
need addressing. Strategic interventions are necessary for
India to emerge as a global leader in intelligent
manufacturing.

AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

The Indian manufacturing sector faces challenges amidst global

competition and technological advancements. AI offers solutions for
enhanced efficiency and productivity. Studies by Jardine et al. (2006)
emphasize early fault detection, Dolgui et al. (2019) show AI's role in
Literature Review production planning, and Acharya et al. (2020) highlight productivity
gains from lean manufacturing. Sohail et al. (2018) and Soni & Jain
(2018) underscore cost savings with lean practices. Singh et al. (2020)
demonstrate lean's impact on quality control, while Kumar et al. (2020)
showcase lean's benefits in the supply chain. Deloitte (2020) predicts
AI's potential in reducing defect rates. Addressing the skills gap and
investing in data infrastructure are crucial for harnessing the combined
power of lean manufacturing and AI in Indian manufacturing's future.
 Findings

Lean Manufacturing can

Implementing Lean principles Lean methodologies result in
potentially increase production
leads to a notable 10-15% higher product quality and a
output by 35% through practices
decrease in inventory holding 15% reduction in lead times,
like Waste Reduction and Value
costs and a significant 20% enabling quicker responses to
Stream Mapping.
reduction in rework rates. market demands.

AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

 01 Implementing lean principles boosts
productivity by up to 35% and slashes costs
significantly—inventory holding by 10-15%,
rework rates by 20%. Quality surges with defect
rates dropping by 10-15%.

02 Artificial intelligence turbocharges these gains:

predictive maintenance cuts downtime by 30-
50%, supply chain optimization reduces costs by

Results 20%. AI-driven quality control slashes defect

rates by 20-30%.

03 By integrating lean and AI, Indian

manufacturers lead globally. This strategic
alignment not only maximizes efficiency but
also fosters agility, positioning Indian
manufacturers as pioneers shaping the industry's
future.

AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

AMITY INTERNATIONAL BUSINESS SCHOOL MAY 2024

The synergistic integration of lean manufacturing and artificial

intelligence (AI) holds transformative promise for Indian
manufacturers. Through our exploration, we've uncovered tangible
benefits, including increased productivity, reduced costs, and

Conclusion improved quality. To fully capitalize on these advancements, a

comprehensive strategy is essential, encompassing government
support, industry collaboration, and a cultural shift towards
continuous improvement. By embracing this transformative journey,
Indian manufacturers can pave the way for sustainable growth,
enhanced competitiveness, and global leadership in the
manufacturing arena.