How Artificial Intelligence is Enhancing Productivity In The Manufacturing Sector.
For over a decade, Artificial Intelligence has brought a blue ocean shift to most industries, and the manufacturing sector isn’t left out. The pandemic has been the technology’s main highlight as most people in different sectors were in the plight of automation.
We live in a world where the importance of data is being unraveled by the day. And yes, the best way to make data work for us is by employing technologies such as AI. According to this research, about 34% of executives believe AI is the solution to their issues. Contrary to expectation, the manufacturing industry generates about 1,812 petabytes (PB) of data each year — one of the highest compared with other sectors. Here, decision-making and coordinating processes are strongly affected by data. Thankfully, AI can help increase efficiency and productivity in the manufacturing industry.
In a study done by Deloitte, up to 93% of manufacturing industries believe AI will help them achieve innovation and growth. China is rated as one of the biggest countries focused on industrialization has discovered AI secrets and integrated it to increase efficiency and performance. The market size of AI in the manufacturing sector is expected to go beyond USD2 billion by 2025.
Here are some of the ways AI can help enhance productivity in the manufacturing industry include:
Demand forecasting
One of the worst things a manufacturing company can do is to produce what is not needed or desired by its target consumers. Aside from the fact that this can lead to huge losses, it can ruin the company’s target ROI as well.
While many mathematical production models to predict possible outcomes and accurate data are feasible when artificial intelligence combines with machine learning, the resultant effect of this combination can help manufacturing companies to know what and what not to produce. More so, AI models can easily conceptualize information that can affect production, such as supply chain disruption or change in the market demand, while still ensuring what is needed is produced. Definitely, this will lead to reduced wastage and projected profits.
Filling the skill gap
Long ago, the manufacturing sector had to rely on human labor to get the job done. Sometimes it would take a long time to find the right human personnel for the job. This is no longer the case with AI. Already, artificial intelligence is bringing in automation to some major industrial areas — to minimize human efforts. This has led to an uproar where people are scared of losing their jobs to technology. Meanwhile, those who would have been involved in areas where AI is in charge can focus on other crucial areas of production to boost productivity.
Workplace safety
There is an increasing number of companies that are using AI for workplace screening and safety. The pandemic mainly brought about this due to the COVID-19 restrictions and safety requirements. With AI, a company can do employee screening when they get to work, check their thermal readings, or even monitor any interactions and contact within the company. This will help the companys’ executives save the long-interviewing time and the stress of being physically present. AI can also be used to predict and prevent workplace accidents before they happen. This helps to ensure the safety of employees and a healthy workplace environment which positively affects workplace productivity.
Machine maintenance
This is one of the most expensive activities in a factory. Machines have to be maintained for them to operate optimally. A manufacturing company can integrate AI into their modern maintenance management system such that you can predict on time or prescribe on time. This can help in reducing the time, cost, and parts needed for maintenance.
Interestingly, managers can combine machine data and sensors with artificial intelligence to predict failures before they happen and prescribe the maintenance required in advance. This can help to optimize the maintenance management lifecycle. Together with other data in the organization, you can get accurate information on when to do maintenance, how often to do it, and when to replace parts. Instead of servicing the different pieces of equipment at scheduled service times, companies will service it only when they need to. This can help to reduce both the labor costs and spare parts. In addition, budgeting will be much easier, which can help you balance your expenses.
Increased security
Although many companies have their security systems and building management in place, sometimes it may be hard to get the details on the ground especially when all these are being carried out 24/7 by human efforts. On the other hand, a company can integrate AI into the following systems: cameras, alarm systems, etc., to ensure maximum security with little or no need for human efforts. All you need is to set a trigger and monitor the whole ecosystem in a flash. A secured system and building promotes internal peace within the firm and thereby boosts productivity.
Customized manufacturing
With AI, it is easy to address the needs of your niche market by producing only what is relevant to them. Those who have been in business for a long time understand that personalization sells — as it is an easy way to make your customer feel special by filling their need. Brands are optimizing personalization to build themselves. According to research done by Deloitte, 36% of consumers expressed a preferable interest in personalized products. According to Accenture, consumers are willing to pay 20% more to get custom products. Even though data is critical, up to 83% of customers in the UK and US are willing to compromise their data to get custom products. This shows that customized manufacturing can help a company increase its profits and attain a competitive advantage.
