The World Financial Discussion board introduced at present the addition of 15 new websites to its Global Lighthouse Network, a group of world-leading producers utilizing Fourth Industrial Revolution applied sciences to allow bottom-line development. Regardless of the COVID-19 pandemic’s unprecedented disruption, 93% achieved a rise in product output and located new income streams.
Notably, these main innovators created new income streams whereas driving environmental sustainability – 53% are seeing measurable and marked environmental sustainability advantages. Some have seen virtually a complete discount in CO2 emissions, double-digit will increase in effectivity and discount in materials use. The brand new report, Reimagining Operations for Growth, outlines how producers completed these outcomes. Their CEOs will present extra insights on the Lighthouses Reside occasion, that includes keynote speaker Satya Nadella, CEO of Microsoft and Alex Gorsky, chairman and CEO of Johnson & Johnson on 17 March at 14.00 CET. See beneath for a full checklist of the brand new Lighthouses and their achievements.
The Lighthouse Community and its 69 websites are a platform to develop, replicate and scale improvements, creating alternatives for cross-company studying and collaboration, whereas setting new benchmarks for the worldwide manufacturing group.
Whereas 74% of firms remained caught in pilot purgatory in 2020, analysis based mostly on learnings from the community reveals that scalable Fourth Industrial Revolution applied sciences are key to long-term development. By absolutely embracing agile methods of working, these producers have been in a position to answer disruption and ongoing shifts in provide and demand alongside their manufacturing community and worth chains. Additionally they prioritized workforce improvement – reskilling and upskilling workers for superior manufacturing jobs – on the identical tempo and scale.
The brand new Lighthouses:
Bosch (Suzhou, China):As a task mannequin of producing excellence throughout the group, Bosch Suzhou deployed a digital transformation technique in manufacturing and logistics, lowering manufacturing prices by 15% whereas bettering high quality by 10%.
Foxconn (Chengdu, China): Confronted with fast-growing demand and labour ability shortage, Foxconn Chengdu adopted blended actuality, synthetic intelligence (AI) and web of issues (IoT) applied sciences to extend labour effectivity by 200% and enhance general gear effectiveness by 17%.
HP Inc. (Singapore): Dealing with a rise in product complexity and labour shortages resulting in high quality and price challenges, together with a transfer on the nation degree to concentrate on higher-value manufacturing, HP Singapore launched into its Fourth Industrial Revolution journey to remodel its manufacturing unit from being guide, labour intensive and reactive to being extremely digitized, automated and pushed by AI, bettering its manufacturing prices by 20%, and its productiveness and high quality by 70%.
Midea (Shunde, China): To increase its e-commerce presence and abroad market share, Midea invested in digital procurement, versatile automation, digital high quality, sensible logistics and digital gross sales to enhance product price by 6%, order lead instances by 56% and CO2 emissions by 9.6%.
ReNew Energy (Hubli, India): Dealing with exponential asset development and rising competitiveness from new entrants, ReNew Energy, India’s largest renewables firm, developed Fourth Industrial Revolution applied sciences, reminiscent of proprietary superior analytics and machine studying options, to extend the yield of its wind and photo voltaic property by 2.2%, cut back downtime by 31% with out incurring any extra capital expenditure, and enhance worker productiveness by 31%.
Tata Metal (Jamshedpur, India): Dealing with operational KPI stagnation and an impending lack of captive uncooked materials benefit, Tata Metal Jamshedpur’s 110-year-old plant with deeply rooted cultural and know-how legacies deployed a number of Fourth Industrial Revolution applied sciences, reminiscent of machine studying and superior analytics in procurement to avoid wasting 4% on uncooked materials prices, and prescriptive analytics in manufacturing and logistics planning to scale back the price of serving clients by 21%.
Tsingtao Brewery (Qingdao, China): Dealing with rising shopper expectations for customized, differentiated and various beers, Tsingtao Brewery rethought its use of sensible digital applied sciences alongside its worth chain to allow its 118-year-old manufacturing unit to fulfill shopper wants, lowering personalized order and new product improvement lead instances by 50%. Consequently, it elevated its share of personalized beers to 33% and income by 14%.
Wistron (Kunshan, China): In response to high-mix and low-volume enterprise challenges, Wistron leveraged AI, IoT and versatile automation applied sciences to enhance labour, asset and vitality productiveness, not solely in manufacturing and logistics but additionally in provider administration, bettering manufacturing prices by 26% whereas lowering vitality consumption by 49%.
Henkel (Montornès, Spain): To drive additional enhancements in productiveness and increase the corporate’s sustainability, Henkel constructed on its digital spine to scale Fourth Industrial Revolution applied sciences linking its cyber and bodily techniques throughout the Montornès plant, lowering prices by 15% and accelerating its time to market by 30% whereas bettering its carbon footprint by 10%.
Johnson & Johnson Shopper Well being (Helsingborg, Sweden): In a extremely regulated healthcare and fast-moving shopper items surroundings, J&J Shopper Well being addressed buyer wants via elevated agility utilizing digital twins, robotics and high-tech monitoring and tracing to allow 7% product quantity development, with 25% accelerated time to market and 20% price of products bought discount. It made additional investments in connecting inexperienced tech via Fourth Industrial Revolution applied sciences to turn out to be Johnson & Johnson’s first ever CO2-neutral facility.
Procter & Gamble (Amiens, France): P&G Amiens, a plant with a gradual historical past of remodeling operations to fabricate new merchandise, embraced Fourth Industrial Revolution applied sciences to accommodate a constant quantity improve of 30% over three years via digital twin know-how in addition to digital operations administration and warehouse optimization. This led to six% decrease stock ranges, a ten% enchancment in general gear effectiveness and a 40% discount in scrap waste.
Siemens (Amberg, Germany): To realize its productiveness targets, this website applied a structured lean digital manufacturing unit strategy, deploying sensible robotics, AI-powered course of controls and predictive upkeep algorithms to realize 140% manufacturing unit output at double product complexity with out a rise in electrical energy or a change in assets.
STAR Refinery (Izmir, Turkey): To take care of a aggressive edge throughout the European refinery business, Izmir STAR Refinery was designed and constructed to be “the technologically most superior refinery on the planet”. Leveraging greater than $70 million investments in superior applied sciences (e.g., asset digital efficiency administration, digital twin, machine studying) and organizational capabilities, STAR was capable of improve diesel and jet yield by 10% whereas lowering upkeep prices by 20%.
Ericsson (Lewisville, USA):Confronted with growing demand for 5G radios, Ericsson constructed a US-based, 5G-enabled digital native manufacturing unit to remain near its clients. Leveraging agile methods of working and a strong IIoT structure, the staff was capable of deploy 25 use instances in 12 months. Consequently, it elevated output per worker by 120%, decreased lead time by 75% and decreased stock by 50%.
Procter & Gamble (Lima, USA): A shift in shopper tendencies meant extra complicated packaging and an elevated variety of merchandise that needed to be outsourced. To reverse the tide, P&G Lima invested in provide chain flexibility, leveraging digital twins, superior analytics and robotic automation. This resulted in an acceleration of velocity to marketplace for new merchandise by an element of 10, a rise in labour productiveness by 5% 12 months on 12 months, and plant efficiency that was two instances higher than opponents in avoiding stock-outs in the course of the 12 months.
“This can be a time of unparalleled business transformation. The longer term belongs to these firms keen to embrace disruption and seize new alternatives. As we speak’s disruptions, regardless of their challenges, are a robust invitation to re-envision development. The lighthouses are illuminating the way forward for manufacturing and the way forward for the business,” mentioned Francisco Betti, Head of Shaping the Way forward for Superior Manufacturing and Manufacturing, World Financial Discussion board.
Enno de Boer, Companion, McKinsey & Firm, and International Lead, Manufacturing, mentioned: “The 69 Lighthouse producers open a window into the way forward for operations. Although no business is immune from digital transformation, 4 sectors are resetting benchmarks – Superior Industries, Shopper Packaged Items, Pharmaceutical and Medical merchandise, and Heavy Industries. We’re seeing a paradigm shift emerge, from lowering price to extra concentrate on enabling development and environmental sustainability. The Lighthouses are proving that unlocking sensible capability via digital applied sciences is simpler than spending on capital infrastructure.”
The objective of the International Lighthouse Community is to share and be taught from finest practices, assist new partnerships and assist different producers deploy know-how, undertake sustainable options and rework their workforces at tempo and scale. The prolonged community of “Manufacturing Lighthouses” can be formally acknowledged at Lighthouse Live: Reimagining Operations for Growth at 14.00 CET/09.00 EST 17 March.
Along with a various group of consultants and innovators, the assembly goals to provoke, speed up and scale-up entrepreneurial options to deal with local weather change and advance sustainable improvement.