Platform for Shaping the Future of Advanced Manufacturing and Value Chains

Keynote Address - Platform for Shaping the Future of Advanced Manufacturing and Value Chains

This keynote address was in a discussion format between Francisco Betti, Head of Advanced Manufacturing and Production for the World Economic Forum, and Andreas Helget, President and CEO, Yokogawa Europe B.V.

The Advanced Manufacturing Intelligence Platform is one of 17 global initiatives that the World Economic Forum is operating. The forum is working closely with leaders from business, government, academia, and civil society to accelerate the transition to Industry 4.0 and, most importantly, make sure it works for industry, society, and the environment.

Industry 4.0 and advanced manufacturing provide manufacturers unique opportunities to transform operations and business models by adopting what they refer to as Fourth Industrial Revolution Technologies. Examples of such technologies include artificial intelligence, advanced analytics, industrial IoT, augmented reality, and 3D printing.

As they engage in use cases, participants find that they have developed digital threads, which provide significantly more control over their entire value chains and can drive efficiency, boost productivity, and contribute to the company’s growth. It is important because it allows manufacturers to maintain their competitive edge—or establish a new competitive edge.

It also enables resilience across operations and value chains that allows them to sustain through market volatility. New levels of adaptability, agility, and flexibility will be required to navigate in the new context. By digitizing operations, companies will future-proof their facilities and value chains and set the foundations that enable new business models. Furthermore, they can enable the transition to more sustainable manufacturing systems and a Net Zero world.

Advanced Manufacturing and Digitization Priorities

Although advanced manufacturing is an engine for sustainable growth, how exactly do companies go about digitalization to attain it? What is the first step? Subsequent steps?

Most successful companies are taking an integrated approach to digital transformation. They also share their top six priorities:

• Technology adoption
• Workforce engagement
• Shared value creation
• Resilient value chains
• Sustainable production
• Harnessing the power of data

 
Advanced Manufacturing Priorities and Benchmarking Initiatives

It all starts with technology adoption—but technology adoption is not enough. It also requires rethinking business processes and workforce engagement, including reskilling and training. For each of the six priorities, the accompanying diagram lists impact initiatives and insight initiatives. For example, for technology adoption, the World Economic Forum has initiated the Global Lighthouse Network and the Global Smart Industry Readiness Index.

Francisco went on to describe the Global Lighthouse Network, which consists of companies adopting the Fourth Industrial Revolution Technologies. Thus far, the World Economic Forum has identified 90 so-called “lighthouses” globally across various industry sectors. They have all joined a unique, cross-company learning journey to share insights and experience with the broader manufacturing community and incubate new partnerships.

The Global Lighthouse Network

While they are leveraging digital technologies, they are setting new benchmarks for the global manufacturing community. They are evaluating KPI improvements in five key areas: sustainability, productivity, agility, speed-to-market, and customization. For example, manufacturers are under tremendous pressure from consumers to produce products more quickly in a customized way.
 

Impact Ranges for New KPIs in Five Key Improvement Areas

For manufacturers pursuing initiatives such as digital transformations, advanced manufacturing, and Industry 4.0, the KPIs listed reflect the performance range of the industry-leading companies. Using the six priorities, the KPI ranges listed in the five key areas, and other resources that the World Economic Forum has made available, a company can begin such an initiative with a solid business case and proceed with a well-structured but adaptable and flexible program plan.