Factory of the future

Cloud computing offers companies the agility and flexibility to gravitate towards this global shift, writes Balqis Lim

The paradigm shift will see more automation and robotics being used in factories.

NEW technologies are changing the industrial production, giving rise to the term “factory of the future” where information technology and operational technology (OT) converge. This transformation, which is also called the Fourth Industrial Revolution (Industry 4.0) is happening across the global manufacturing landscape where companies are finding ways, if they haven’t started already, to have smarter integrations between their digital proficiencies and their physical production system.

Leveraging on the Internet of Things (IoT) allows manufacturers to better capture critical data that can help them improve their value chain.

US-based company Infor is offering business applications for organisations via cloud computing as a service.

Its Industry and Solution Strategy director Andrew Dalziel says the company has over 90,000 customers using its services, ranging from customer relationship management to enterprise asset management, human capital management product lifecycle management and supply chain management, including business specific inventory management, transportation logistics and warehouse management software.

“In the last few years, we can see our customers increasing, where more and more people are embracing digitalisation and moving into cloud services,” says Dalziel.

Dalziel (left) and Nazeroll.

WHY CLOUD

Companies are inevitably being transformed by the Industry 4.0 and cloud computing. Dalziel says this is part of the revolution, besides big data analytics, artificial intelligence and 3D printing.

The paradigm shift will see more automation and robotics being used in factories in tasks that are normally done by humans.

Dalziel says as time goes by, the cost of robots will also go down and they are going to be more sophisticated and will do much more complex stuff (like making decisions).

Cloud computing will impact virtually every aspect of modern manufacturing companies — how companies manage their operations, from enterprise resource planning (ERP) and financial management to data analytics and workforce training. From the data obtained, companies will transform how the products are researched, designed and developed, to how they are fabricated and manufactured, and how they are used by customers in the field.

Smart factory will benefits companies in terms of asset utilisation by reducing general administrative expenses and improve business process execution. Efficiencies in terms of employee productivity create fewer work hours, and eliminate waste in the supply chain and logistics. At the end of the day, Dalziel says that companies will become more competitive and create better customer experiences to grow their market. “The competition will drive manufacturers to become more flexible and agile. The determination makes for continuous evaluation of changing demands and new opportunities.”

MALAYSIAN SCENE

The adoption rate in the country is very high and fast evolving, says Nazeroll Kasim, country director of Infor (Malaysia).

He says the local players are seeing the competition from overseas companies. Embracing the factories of the future is not considered an option but a must.

“Companies here making plans to move forward with the transformation, otherwise they will be left behind and can’t compete with the foreign market,” says Nazeroll.

“Some can afford to go big when they start the business, but those already in the industry who used the traditional system are transforming in stages, by improving their shipments and inventory,” he says, adding that Infor currently has more than 750 customers in the country, and nine channel partners.

GETTING STARTED

How will the factory of the future be like with respect to its structure, technologies, and processes?

Depending on each industry, there are many areas that the companies can start but most importantly, Dalziel says they should go after information.

“With the right data, a lot of areas can be addressed. That is the fastest way to go into digital transformation,” he says. “Insights derived from data analysis help manufacturers focus on markets, buying trends, customer attributes, cost, labour, and consumer opinions, creating a clear roadmap for your next meaningful actions.

“Most importantly, companies need to start now and reap its rewards in order to remain competitive in the new manufacturing paradigm,” he adds.