Exploring The Journey Of Digital Transformation In Manufacturing
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Exploring The Journey Of Digital Transformation In Manufacturing
By Marsya Destiana
Digital transformation in manufacturing is a complex endeavor. Despite the existence of Industry 4.0 for several decades, McKinsey reports that many manufacturers continue to face challenges in achieving large-scale transformation.
A connected factory can significantly enhance efficiency and agility, essential qualities in today’s post-pandemic and uncertain landscape. This raises intriguing questions about the state of digital transformation among manufacturers in 2024. While comprehensive answers may be elusive, several insights have emerged.
Recently, Zebra’s organization conducted a survey of global manufacturing leaders across various sectors regarding their journey towards fully connected factories. The findings, challenges, and technological implementation strategies are detailed in Zebra’s new global manufacturing study titled “The Rise of the Connected Factory: Charting Manufacturing’s Digital Transformation.”
The study indicates that digital transformation is a strategic priority for 92% of manufacturers. However, despite increasing investments in technology solutions, meaningful progress remains a challenge. The journey to digital transformation is not linear, but by concentrating on key areas—improving visibility, enhancing workforce skills, and optimizing quality—manufacturers can move forward. Let’s explore three essential steps.
Visibility: The Foundation for Transformation
Real-time visibility allows manufacturers to observe, track, and monitor operations as they occur, driving efficiency, productivity, and quality. According to Zebra’s study, only 16% of manufacturers have implemented real-time work-in-progress (WIP) monitoring throughout their entire manufacturing process.
Consider the difficulty of manually monitoring hundreds of machines and employees in a large, complex factory. Without technological assistance, tracking the status of equipment, raw materials, and personnel in the production process becomes nearly impossible. This highlights the urgent need for technologies that facilitate visibility, real-time monitoring, and product tracking to enhance quality and operational efficiency.
Visibility serves as the cornerstone of digital transformation. It provides a real-time view and ideally a detailed data archive, enabling manufacturers to identify, analyze, and make informed operational decisions. A recent study by the National Association of Manufacturers (NAM) reports that 44% of manufacturers have seen their data collection double over the past two years and expect it to triple by 2030. However, many manufacturers express only moderate confidence in their analytical capabilities.
Manufacturers can begin their journey towards full visibility by assessing current pain points and identifying areas lacking visibility. Even in plants with fully adopted identification systems, there is still potential to digitize inspections, which can be tedious, prone to human error, and crucial to the manufacturing process. AI-powered machine vision systems can conduct inspections more quickly and accurately than human workers.
Manufacturers are also turning to AI to optimize data usage. Zebra’s study revealed that 61% of manufacturers anticipate AI will drive growth by 2029, reflecting a 41% increase from 2024. Successful implementation requires careful planning, training, and a phased approach to prevent overwhelming the workforce.
To initiate their digital transformation, manufacturers should establish a strong foundation with visibility solutions. These are critical to successfully transitioning into agile, resilient connected factories.
Upskill Labor: Augment Workers with Technology
According to the NAM Outlook Survey, over 65% of manufacturers report that attracting and retaining skilled workers remains a significant challenge. There exists a gap between the latest manufacturing technologies and the workers trained to utilize them. The World Economic Forum indicates that 60% of the global workforce requires substantial training to bridge this gap.
Manufacturers are enhancing their workforce by integrating AI and technological tools to ensure that employees possess skills that match the technologies they operate. By 2029, Zebra predicts that 73% of manufacturers will reskill their workforce with data and technology to streamline workflows, while 70% intend to enhance employee capabilities with mobile devices and tech tools. Half of the manufacturers are already implementing tablets, mobile computers, and workforce management software, while over 60% plan to utilize wearables and computer vision technology.
Flexibility in the workplace, meaningful work, and a secure (both safe and respectful) work environment were identified as the top factors motivating Gen Z workers to remain in their jobs, according to McKinsey. Manufacturers can better engage this emerging workforce by leveraging technology to enhance the employee experience, providing continuous training and development, and offering clear paths for career advancement.
Merely increasing wages is not enough to attract and retain Gen Z employees. This generation is accustomed to technology in their daily lives and is thus more comfortable integrating technological enhancements in their work.
By optimizing workflows and empowering employees, manufacturers can enable their workforce to focus on high-value, customer-centric tasks and cultivate the relationships and career paths they desire. This strategy not only boosts productivity and efficiency but also opens new avenues for attracting future talent.
Visibility + Augmentation + Automation = Quality
Quality in manufacturing relies on both real-time visibility and skilled labor. In Zebra’s study, leaders pointed out that real-time visibility, timely issue identification and resolution, compliance with new standards and regulations, maintaining traceability, and integrating data are their most significant quality management challenges.
But what if a manufacturer lacks the budget, resources, or time to invest in advanced digital transformation at this moment? They can still take meaningful steps toward progress. Starting with basic data collection and analytical tools can lay the groundwork. Utilizing visibility solutions such as barcode scanning, wearables, or basic Internet of Things (IoT) devices can assist in monitoring machines and providing actionable insights for improvement.
Quality is the final element of the equation. Once manufacturers progress in their transformation journey, implementing visibility solutions, alongside augmenting and upskilling workers with technology, can enhance quality. To further improve quality, integrating advanced automation solutions becomes essential. Manufacturers don’t need to undertake their digital transformation all at once—progressing step by step from their current starting point is key.
An Ongoing Journey
According to Zebra’s study, 87% of manufacturers acknowledge that piloting new technologies or advancing beyond the pilot phase presents challenges. Nevertheless, they aim to enhance their digital maturity by 2029. With the right technological tools and solutions to improve visibility, augment labor, and optimize quality, manufacturers can successfully navigate this ongoing journey.
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