Industries around the globe are leveraging the transformative potential and far-reaching benefits of artificial intelligence and smart manufacturing to streamline processes, overcome operational challenges, and increase profits. And though manufacturers are working to leverage AI as well, they face a unique set of challenges on their journey to smart manufacturing.
Fluke Reliability surveyed hundreds of manufacturers to find out how organizations are using AI to meet their technology goals and improve operations. In the process, the survey also revealed the key obstacles companies face in reaching their smart manufacturing goals.
The survey showed some startling trends in the manufacturing industry. For example, an astounding 93% of respondents confirmed that the adoption of AI technologies represents a top organizational priority for the future. And it isn’t just a priority on paper. On average, manufacturers plan to invest 44% of their budget on AI technologies in the next 12 months, and almost all respondents (95%) said they see AI as a major investment for their technology budget in 2024 and beyond.
Despite companies’ agreement that smart manufacturing is important for their futures, Fluke’s survey indicated there are several major barriers organizations must overcome to implement this approach. And while these challenges are daunting, they aren’t insurmountable. Producers committed to moving forward with technological advancements have already found ways to overcome them.
1. Security and Privacy Concerns
Security concerns topped the list of barriers in Fluke’s survey. 36% of respondents cited security and privacy and 34% reported cybersecurity as the major concerns that keep them from achieving their smart manufacturing goals.
Manufacturers are right to be concerned. They collect a lot of sensitive data about customers, processes, trade secrets, and other information that can have disastrous consequences in the wrong hands. Greater connections between assets, processes, and people could expose this data in problematic ways, but manufacturers can take steps to actively prevent security and privacy breaches.
Manufacturers can thoroughly vet any software provider, ensuring they have achieved compliance with international cybersecurity standards such as ISO 27001. Even after receiving the certification, providers are subject to regular audits to ensure continued compliance so manufacturers can ensure their data remains safe.
Users can also ensure additional safeguards on their ends, such as using encrypted software, limiting sensitive data to only need-to-know personnel, and enforcing strict access protocols.
2. Supply Chain Disruptions
Supply chain instability and disruptions have become even more common over the past few years, leaving manufacturers scrambling when a hard-to-get spare part becomes obsolete or a supply partner closes its doors unexpectedly. But while supply chain disruptions are a major concern for 34% of manufacturers surveyed, smart manufacturing tools can help stabilize supply chains and improve critical spare part management.
Using computerized maintenance management software (CMMS) can help manufacturers manage spare parts inventory, providing clarity and insight into which spare parts are already available in storerooms, even across multi-site organizations, and giving insight about when parts should be re-ordered. Manufacturers can also use AI to optimize supply chain management by implementing predictive maintenance to ensure needed replacement parts are on hand before corresponding asset failure.
While supply chain disruptions are a significant barrier, implementing smart manufacturing tools can be the key to overcoming these challenges.
3. Skilled Labor Shortages
As skilled laborers retire in droves, manufacturers are struggling to fill the knowledge gaps they leave behind. Nearly one-third (29%) of manufacturers surveyed cited a skilled labor shortage as a top barrier to adopting smart manufacturing. The lack of skilled applicants often means delayed repairs and more unplanned downtime as pressure increases on the technicians who possess these in-demand skills to do even more with their limited time.
Unfortunately, the skilled labor shortage is here to stay, at least for the foreseeable future. As manufacturers work to cross-train employees and add training to increase their knowledge base, AI and smart manufacturing tools are also available to help plug the skills gap on the manufacturing floor and recruit new talent.
Tools like handheld acoustic imaging cameras can turn sounds into a picture, providing a precise location for a difficult-to-find compressed air leak and simplifying repair. Instead of needing years of training and experience to locate a leak, a new employee can simply pick up the device and find leaks immediately. Acoustic imagers can also help identify areas of mechanical wear by visualizing sounds.
Similarly, Industrial Internet of Things tools such as vibration and temperature sensors can help predict when a component is nearing failure, reducing the need for regular inspections by humans and allowing skilled technicians to schedule their time and address issues before they become emergencies, resulting in downtime.
Fluke’s survey also revealed that 85% of maintenance managers are already using AI to attract and recruit new talent to their organization.
4. Regulatory and Compliance Challenges
Manufacturers in industries like food and beverage, pharmaceutical, and others are subject to scrutiny from regulatory bodies such as the Bundesamt für Verbraucherschutz und Lebensmittelsicherheit (BVL). They may be subject to audits and need to show documentation like maintenance records, technician certifications, or other proof of compliance.
25% of manufacturers cited regulatory and compliance challenges as barriers to smart manufacturing. Manufacturers may have tools in place, such as spreadsheets or paper documentation trails, which employees are used to utilizing for documentation and audit compliance. But human errors such as incorrectly completed forms or lost paperwork can lead to failed audits or, even worse, penalties or fines.
While shifting away from a known system can be daunting, smart manufacturing tools minimize the chance for human error and provide foolproof audit trails. They eliminate the need for paper or manual documentation and enhance compliance by requiring digital signatures, automated workflows, and other actions that lead to improved accountability and enhanced accuracy.
5. Integration and Change Management Challenges
A sweeping change such as shifting to smart manufacturing understandably leads to implementation concerns. In Fluke’s survey, 25% of respondents cited this type of concern as a major barrier to implementation.
However, manufacturers are already taking steps to smooth the integration process. Nearly half (40%) of manufacturers are investing in training programs for their staff, and 74% are working with specialist implementation partners to ease the transition. Consulting on post-implementation (38%) and outsourcing to service providers (36%) are other ways manufacturers have selected to move forward to meet their smart manufacturing goals.
Smart Manufacturing is Here To Stay
Over one-third of manufacturers already have smart manufacturing projects underway, and most predict it will take just ten months to achieve their technology goals. In Germany specifically, 65% of maintenance managers believe AI will enable positive transformation that will contribute to the growth of their company.
Though the barriers above present challenges to implementation, manufacturers have tools in place to overcome them and continue making progress on smart technology initiatives. They don’t have to wait long to see benefits, either: many manufacturers that integrate AI and smart manufacturing technologies see tangible results in as few as three months. Despite the challenges of implementing smart technologies, these initiatives represent a way forward for many of the challenges manufacturers are facing in their day-to-day operations.
