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How to move from lean production to smart manufacturing?
Xinyiwei 6S Consulting 5S Consulting_6S Consulting_TPM Training_Lean Production Training_Equipment Management Training-Xinyiwei Enterprise Management Consulting Co., Ltd. Expert Overview: Enterprises in "Industry 4.0, Intelligent Manufacturing, and the Internet "In an environment where concepts are flying all over the place, you lose your way, don't know where to start, and blindly follow the trend.
You see, many companies have lost their way in the environment where concepts such as "Industry 4.0, intelligent manufacturing, and the Internet" are flying all over the world. They don't know where to start, blindly follow the trend, watch others invest in automation, and then follow suit themselves. If you watch others adopt informatization and follow suit yourself, you may very well be tormented to death by yourself before you see the implementation of smart manufacturing.
In fact, both smart manufacturing and smart factories have their own implementation conditions and paths. There is no shortcut. Different industries and different companies will have different paths. Generally speaking, the following ten paths are the only way for Chinese industry to move from manufacturing to intelligent manufacturing. However, for different industries and different enterprises, due to different market demand patterns, different product processes, and different management foundations Etc., the focus is just different, but you can always find several feasible paths to smart manufacturing.
1. Lean
Lean production was originally designed to meet the personalized needs of multiple varieties and small batches. Its two pillars are "just in time" and "intelligent automation" .
So far, lean has evolved into a lean management concept and method involving the entire value chain of marketing, R&D, supply chain, production, process and even entrepreneurship, driving the transformation of global industries, from manufacturing to In the service industry, the ideas, methods and tools it pursues to "create value and eliminate waste" promote the optimal allocation of production resources and achieve rapid improvements in quality, efficiency and response speed.
According to our experience in coaching companies, as long as companies persist in doing so, most of them can gain 50% or more room for improvement. Unfortunately, lean has not been effectively implemented in most enterprises in China. Most of them only pay lip service to it. Because of their eagerness for quick success and lack of introduction of experience and methods, they cannot persist and give up halfway. Walking into these enterprises, you will find that waste abounds, such as high inventory, repeated transportation, high-intensity manual work, discontinuous production mode, shoddy quality, long delivery cycles, etc. In the electronics industry, the average inventory turnover time of Chinese companies is 51 days, compared with 8 days in the United States; in the textile and apparel industry, the average inventory turnover time of Chinese companies is 120 days. In other words, even if the profit margin is the same, the return on investment will be low.
Intelligent manufacturing cannot be based on this inefficient production model. Lean is the first step that must be taken, and it is the path with the highest return on investment. Because lean requires almost no additional investment by the company, just by re-allocating production resources on the existing basis, returns beyond imagination can be obtained.
The successful implementation of Lean is not difficult. The key lies in the determination of the leadership and the change of management concepts.
2. Standardization
Standardization is the foundation of automation and the prerequisite for intelligent manufacturing.
Domestic companies lament the high degree of automation in the automobile industry. Why can complex products such as automobiles work, but simple products such as home appliances cannot? One important reason is standardization.
Strategies such as exclusive platforms and common parts commonly adopted by the automotive industry have greatly reduced product costs. By changing the original production of parts based on complete vehicles to the method of producing complete vehicles based on parts, that is to say, standardized parts can be mass-produced and costs have been successfully reduced.
Domestic enterprises do not pay attention to or are not aware of the importance of standardization. For example, simple screws and packaging cartons come in dozens or hundreds of specifications, and the cost of inventory and parts is high. There is no control at all from the beginning of R&D and design. When developing a new product or changing people, new parts can be added at will. There is a lack of a standardized process and product database.
Of course, standardization also includes standardized operating procedures and operating methods. With standardization, automation can be developed accordingly, such as automatic welding and automatic assembly. Assuming that the parts and components are ever-changing and the operating methods are not fixed, automation It would be very difficult to implement, and even very expensive to implement.
3. Modularization
Automobiles and computers are the first industries to realize modularization. From modular design, modular procurement to modular production, modularization is also the key to whether intelligent manufacturing can be realized. Low cost is the key to satisfying personalized consumption. If once realized, truly personalized products will become possible, such as mobile phones. Everyone's mobile phone can be unique, and people can assemble the mobile phone they like like building blocks.
Modularization reduces the complexity from design, procurement to production. Standardized interfaces and connection methods increase versatility, reduce manufacturing costs and cycles, and make automated production, logistics and information communication easier to implement. For example, in the past, each mobile phone brand had different chargers. Once the mobile phones were replaced, they would all be thrown away, resulting in a lot of waste. Now there has been an improvement.
Modularization is relatively difficult to implement. It involves industry and corporate standards and requires the participation of upstream and downstream enterprises. This is a long-term work, so we must build a lean strategic partnership with each other. Especially important.
4. Automation
Automation is the most talked about in intelligent manufacturing. Many local governments and enterprises vividly call it "machine replacement", and they have also made continuous efforts to Try, there will be success and failure.
Through independent innovation, enterprises can integrate the original discrete processing methods of raw material processing, connect the original independent processes through automated production lines, implement lean continuous production, and eliminate the up and down of intermediate links. Materials, storage and handling, production speed and production efficiency will be improved.
However, some found that after putting into production, the cost not only did not decrease but increased significantly. Although the number of operators decreased, the number of equipment maintenance personnel increased. Due to the economic downturn, the market declined, and insufficient production capacity led to significant depreciation and energy consumption costs. rise, it is difficult to recoup investment and face pressure to lose money.
Automation and informatization are the largest investment in smart manufacturing. Enterprises must be cautious before undertaking automation transformation. Why should they upgrade automation? What is the return on investment (a reasonable return on investment period should be controlled within 5 years)? How reliable is the automation equipment? What are the risks? Can it adapt to product upgrades? You must think clearly, otherwise costs will rise instead of falling. Many companies only discover after investing that the equipment is immature and malfunctions frequently, or that the equipment that is launched is not easy to use and is not as flexible and convenient as manual operation. As a result, hundreds of thousands or millions of investment in equipment are willfully shelved. This ineffective investment may even lead to Bring down the business.
With the advancement of technology and the increase in labor costs, automation is an irreversible trend. For different enterprises in different industries, some have mature automation solutions and some do not. Enterprises need to plan the direction of automation based on their own conditions. Start with the part that has the greatest return on investment and is easiest to implement. Of course, we must also combine the standardization and modularization mentioned above, and meet the requirements of lean production, optimize the corresponding production process, and proceed step by step. Do not act too hastily or blindly follow the trend. .
5. Servitization
China currently has more than 600 million Internet users and 700 million smart terminals. The booming development of the mobile Internet has accelerated the transformation from manufacturing to services. The "Industrial Internet" advocated by the United States connects people, data and machines to form an open and global industrial network. Its connotation has transcended the manufacturing process and manufacturing itself, spanning the entire value chain of the product life cycle, covering aviation, energy, Transportation, medical and other industrial fields.
In addition, manufacturing companies can also monitor, analyze and improve the design and manufacturing of equipment through the networked data of equipment to improve product reliability and efficiency.
Of course, different industries have different products and serviceable content. Under the Internet model, traditional enterprises need to constantly innovate business models and find a service method that suits them to impress customers.
6. Personalization
In the past 30 years, the types of goods on the market have expanded dramatically by dozens or hundreds of times. This is an era of personalized consumption, where everyone can have their own Use blogs, Weibo, WeChat, etc. to spread your voice.
Personalization itself is not a new word. As early as a hundred years ago, people were making personalized products through handicraft workshops. The difficulty in realizing personalization lies in the need to achieve the low cost and high quality of mass production. .
Consumers place orders directly online or over the phone and choose the style they like, and the company produces and delivers the goods according to the customized order. It will effectively reduce inventory and reduce operating costs by more than half.
The realization of high-quality, low-cost personalization first depends on your lean production level, which is the "value comes from real customer needs" advocated by lean. Personalized implementation depends secondly on your standardization and modular design. The rapid development of information technology such as the Internet provides support for it, making it easier to achieve personalization.
At this stage, personalization is still personalization with limited conditions, and complete personalization cannot be achieved. Whether it is products such as cars, computers, mobile phones, or clothing, personalization is within a certain range. choose.
Each enterprise needs to decide its own personalized model based on its own level of leanness, standardization/modularization and informatization level. The more personalized the better, it is based on certain implementation conditions. on top of the basics. Perhaps the development of 3D printing and artificial intelligence will provide a possibility for complete personalization in the future.
7. Ecologicalization
Competition among enterprises is gradually changing from competition between individual enterprises to competition between supply chains and even between ecosystems. Kevin. Kelly wrote in "Out of Control": "The tide of alliances between large enterprises, especially in the information and network industries, is another aspect of the growing coevolution of the world economy. Instead of eating up or competing with opponents, , it is better to form an alliance - *Biological*habitat... The future of control is: partnership, collaborative control, human-machine hybrid control, where humans and our creations share control together." p>
8. Globalization
In today's interconnected world, when your company reaches a certain scale, you need to consider globalization to allocate resources to improve efficiency and reduce costs. Global resources include market resources, design resources, procurement resources and production resources.
my country’s “One Belt, One Road” strategy is to seek global market resources and export our excess production capacity, including high-speed rail technology. Design resources are to set up R&D technology centers abroad to develop local products or make up for the lack of domestic design capabilities. They can also form global 24-hour uninterrupted product development to shorten the R&D cycle. Companies such as Huawei, Haier, and Lenovo are all doing so. R&D institutions have been established abroad.
Purchasing and production resources are looking for global supplies of better quality and lower costs. In addition to considering the unit price of procurement and manufacturing, they also need to consider increased transportation costs, supply chain complexity, supply chain visibility, Issues such as longer delivery times, higher inventory, environmental carbon emissions, quality stability, local labor policies, and exchange rate fluctuations.
9. Digitalization
Digitalization is closely related to informatization. Like automation, this is the largest investment in the transformation of intelligent manufacturing. With the rapid development of information technology, everything can be digitized, and everything from people, products to equipment can be connected.
People can be identified through face recognition technology. In the past, it had to be static, but now you can be identified while walking.
Products can be digitized through PLM/ERP software, from product development and design, material procurement to production delivery. Every product drawing, every material information, and every production process are digitally connected. Together.
The equipment can transmit operating data to MES, the Internet and other networks through PLC, sensors, etc., so GE can analyze the data returned by the aircraft engine and optimize its operating parameters to reduce fuel costs, and Google can realize autonomous driving of cars. People drive.
This means that in the "Industry 4.0" era, it is possible for the first time to interconnect resources, information, items and people through digitalization! This communication includes the exchange of information between people, people and products, people and machines, products and machines, and machines and machines.
Imagine that in the future you place a personalized product order through the APP, the manufacturer receives the order information through CRM/ERP, the order information is transferred to the PLM system, the product simulation model is designed, and the product Enter the ERP and MES systems with material information, and pull the suppliers to start producing materials. After the materials are produced, they are sent to the factory through the Internet of Things and enter the automated production line. The equipment is processed according to the instructions of the MES system. After the finished products are offline, they are sent to the factory through the Internet of Things. in your hands.
"Industry 4.0" is the digitization and networking of manufacturing. Through the combination of IT technology and manufacturing technology, smart factories are created, making production highly flexible and personalized, and improving production efficiency and resource utilization efficiency. . The Germans claim that "the true arrival of Industry 4.0 may take about 20 years." For China, this time is estimated to be longer. We still have many companies that are still in the 2.0 and 3.0 stages. I think it will take at least 30 years.
Whether it is digitalization or "Industry 4.0", this is a major trend. Although only communication between people is currently achieved, other communication requires many conditions, such as data transmission protocols and Standardization of measurement standards, strong infrastructure, security of data transmission, legal protection, talent pool, etc., but the emergence of self-driving cars gives us hope.
Each industry has different characteristics and enterprise foundations, and the sequence of digitalization is also different. I think those process-based manufacturing industries such as food and beverage, papermaking, chemical industry, electric power, etc. can be ahead of the curve because most of the processes in their manufacturing models are already connected and have a high degree of automation. Some equipment data can be automatically collected. Digitization is relatively easy.
For discrete manufacturing industries such as machinery and equipment, textiles and clothing, electronic appliances, household products, etc., since the manufacturing processes and parts are scattered and the quantities are huge, it is indeed difficult to achieve connection. Even if it is achieved The cost will also be very high. The feasible approach for these industries is not to achieve it in one step but gradually. First, apply lean continuous production technology to connect the main processes and materials. For example, highways and high-speed rail must first connect first- and second-tier cities, followed by third- and fourth-tier cities. You can set up digital access points first between factories, then between workshops, between key processes, between key materials, and finally between each process and each material.
Due to the immaturity of the technology and the huge investment, each enterprise needs to weigh the timing of introduction. Like automation, it must comprehensively consider issues such as return on investment, system reliability, information security risks, and talent reserves.
10. Intelligence
Intelligence contains two meanings, one is the intelligence of products, and the other is the intelligence of the manufacturing process.
First, let’s talk about the intelligence of products. According to statistics from Credit Suisse's "2015 Global Wealth Report", China's total household wealth reached US$22.8 trillion in 2015, an increase of US$1.5 trillion from last year, surpassing Japan and ranking second in the world, second only to the United States and China. The middle class (those with a wealth of US$100,000) reaches 109 million people, surpassing the 92 million in the United States and ranking first in the world. These data show that China will usher in a major explosion in consumption upgrading. The recent rush to Japan for toilet seats and rice cookers is a typical example. Intelligence provides a direction for the upgrading of these industrial and consumer goods. Moreover, our country has become the world's largest Internet country, and the government continues to promote network speeds and fee reductions, providing a network environment for hardware intelligence.
Everything is ready, except for the “intelligentization of traditional products”. From smartphones, smart TVs, wearable products, smart water cups to smart cars, smart robots, etc., companies need to continue to innovate in technology and invest in Product intelligence. For example, Haier, Gree, and Midea are all investing in smart appliances.
Compared with the intelligence of consumer products, the intelligence of industrial products is actually more urgent. All equipment needs to be added with intelligent control modules for automatic collection, analysis and control of processing data. It is equipped with standard data interfaces and can be connected to enterprise MES systems or other information systems. These industrial big data will help improve Operational efficiency, fewer failures, and lower energy consumption.
The intelligence of the manufacturing process is more complex. You need to complete the transformations to leanness, standardization, modularization, automation and digitalization mentioned above, and the investment in automation and digitalization will also be huge.
Intelligent manufacturing is a complex system. Every industry and every enterprise must find a model that suits them. You don’t have to get it right in one step. You can gradually improve lean, standardization, modularization, automation and digitalization. level, it’s important to figure out why you’re doing this and what the appropriate return on investment is.
Made in China has experienced 30 years of rapid development and has become the world's largest manufacturing country, but we have yet to produce a truly world-class product. In the next 30 years, China's manufacturing needs to change from emphasizing speed over quality to emphasizing quality over speed. It needs to continue to innovate in the above ten major areas and realize the transformation to China's intelligent manufacturing in terms of business model, technology and management.
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