The impact of digital transformation on the manufacturing industry

by Advance Real Estate 18 de July, 2023 583 Views

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Emerging digital transformations have reshaped many industries with newly incorporated technologies. The manufacturing industry, in particular, has seen many changes thanks to new advanced processes.

Digital transformation in the manufacturing industry

There are four key technologies that, from the moment they were launched, have revamped the way a single industrial building operates as entire industrial corridors:

1. Internet of Things (IoT)

The IoT empowers the interconnectivity¹ of the manufacturing industry’s core equipment.

Production can be tracked in real time through sensors monitoring machine systems and smart devices communicating with each other. With this, assessing performance and fixing errors can happen on the spot.

The IoT is fundamental for decision-making², providing data to backup and understand machine performance, helping to identify failures and adjust accordingly. This technology assists with scheduling maintenance, replacing parts, and preventing production downtime.

2. Cloud Computing

IoT platforms synchronized with cloud computing can produce large volumes of data to be processed, uploaded, and stored automatically to an online platform.

Because of that, you can access crucial metrics such as energy consumption, work schedules, inventories, and scheduled maintenance. Your workers can also securely access those data remotely with passwords or privacy encryption.

Cloud computing also saves costs because you no longer have to invest in hardware maintenance; databases can be hosted in the cloud.

3. Artificial intelligence (AI)

This technology takes huge amounts of data (Big Data), processes them, and takes precautions to amend errors without any human instruction.

AI stands out in the manufacturing industry³ since it can detect hidden patterns in workflows or production processes, increasing the accuracy of forecasting demand.

4. Machine learning

In the past, human analysis was required to detect failures in newly manufactured products. Now, machine learning trains algorithms to pinpoint anomalies in many products (using images and other databases), which optimizes the quality inspection process.

Additionally, machine learning programs robots⁴ to carry out key manufacturing tasks, such as welding or casting parts. This reduces the workload on human personnel by streamlining specific production processes.

Another feature is optimizing equipment parameters from information collected at the moment. According to Danone⁵, it reduces waste and energy consumption by up to 40% in a plant’s production.

How Industrial parks in Mexico have been transformed

Digital transformation has reached industrial parks in Mexico. For instance, AI is employed as a security measure at the entrance to identify vehicle license plates, and each phase of the production process is monitored in real time; this way, the customer knows when they will receive their product (traceability powered by IoT and cloud computing).

Manufacturing companies have realized the potential of these technologies that keep evolving. In the case of Danone, after adopting them in their operations in 2021, one of their plants decreased manufacturing costs by up to 19%.

Over time, multiple companies have settled in industrial parks that leverage these technologies to boost their operations.

If your company wants to digitally transform, with Advance Real Estate, you can find ways to improve your activities with an industrial building and boost the growth of your business.

INFORMATION SOURCE:

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Advance Real Estate

Advance is a leading company in the acquisition, leasing and operation of industrial and logistics assets, with presence in 12 cities within Mexico and a portfolio of 11.5 million sf of industrial space.

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