IT in Manufacturing


IT in manufacturing – the CIO’s new challenge

November 2015 IT in Manufacturing

The computerisation of manufacturing as encapsulated in “Industrie 4.0”, or the so-called “fourth industrial revolution” is attracting attention by manufacturing decision makers who find their companies increasingly part of the global supply chain.

Gavin Halse.
Gavin Halse.

Industrie 4.0 fact or fiction?

Industrie 4.0 describes an industry where customisation of products and flexible mass production are enabled by information technology, advances in virtualisation, mobility, data processing and internet enabled service architectures. Some companies have been proactively preparing for this new benchmark in manufacturing flexibility, while others have predicted that Industrie 4.0 will eventually die a natural death, much in the same way that other IT led innovations climbed Gartner’s famous hype-cycle only to fall spectacularly again.

The requirements of Industrie 4.0 are ambitious and many companies will fail to meet the new benchmark. Does this mean that they will go out of business? Probably not, at least for now.

Industrie 4.0 is placing new demands on the manufacturing CIO who is tasked with building the necessary capabilities within the IT organisation to future proof the systems.

In the past it might have been possible for the CIO simply to focus on business process optimisation, running the ERP systems and providing a secure stable IT infrastructure for the enterprise. This remains necessary but is no longer sufficient.

The convergence of IT and operations

Those CIOs that in the past avoided MES as being the realm of “highly specialised scada programmers and control engineers” are no longer able to ignore the reality of the convergence of IT and sensors on the physical plant. In turn, the specialists who preferred to work on their isolated proprietary PLC, scada or DCS systems cannot avoid these systems becoming part of a much broader ecosystem.

Integrated MES level applications such as laboratory management, plant maintenance and supply chain systems also need to be extended beyond the enterprise boundaries to connect with external real-time information. Several of these systems might have served the business well in the past but they are not designed for the future open architecture and will need to be upgraded or replaced.

As the Internet of Things (IoT) evolves and more and more physical sensors are coupled into the plant, IT is also increasingly being asked to process, store and analyse the resulting data. This requires a new set of skills and capabilities, and many are finding it hard to keep up to date.

As systems become more connected, integrated and automated, so the skills required to implement, maintain and operate the systems also become more specialised. New skills will be required across the board that can leverage these new services and technologies in ways that enhance business performance. Many individuals will find themselves poorly prepared in this regard and will have to seek out new skills in order to stay relevant.

The influence of human behaviour

I was involved in a project some years back that calculated the optimum production schedule to meet forecast demand in a beverage company. The system involved a very complex interrelated system such as raw materials, batch processing, blending, packaging, warehousing and distribution. The problem was so complex it could only be optimised using advanced software. Yet, as it turned out, the people involved in executing the resulting plan were often unwilling to accept the calculated optimum because they could not understand how the computer had come up with it. When the solution was not consistent with their own instincts, the system was deemed to be wrong. In the new world of Industrie 4.0 such behaviour would severely inhibit the organisation’s capability to respond correctly in response to complex external stimuli.

It should be clear that implementing the principles of the fourth industrial revolution is more than wiring sensors to the Internet and analysing the resulting big data. It will involve a fundamental change in the way people make decisions at work using new technologies; and will require a new level of skill in operations, engineering, process control/MES and IT. A new generation of informed information worker is required to make Industrie 4.0 a reality for most.

The manufacturing CIO clearly needs to be comfortable with the concepts of Industrie 4.0. Established IT processes that in the past focused on preparing month-end reports from an ERP system might not be adequately prepared for real-time analytics driven manufacturing decisions.

My advice to a manufacturing CIO is to get familiar with Industrie 4.0, even if it is not yet clear on how it will impact on your organisation. Deep organisational transformation takes time; and the sooner there is a clear vision of what the future holds and an understanding of what is required, the sooner the process can start.

As CIO you should proactively build the new required competencies in your teams. Most of the Industrie 4.0 concepts will be familiar to IT people who are presently getting comfortable with cloud, mobility, SAAS and big data. Align the IT organisation closer to the engineering and manufacturing execution teams and seek common ground for collaborative projects. This is one area in manufacturing where the CIO can certainly lead business transformation.

For more information contact Gavin Halse, Absolute Perspectives, +27 (0)83 274 7180, [email protected], www.absoluteperspectives.com





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

How data and AI are unlocking South Africa’s next mineral frontier
IT in Manufacturing
Data, AI and blockchain are reshaping how mining companies explore, extract and prove the provenance of resources, opening a new frontier for South Africa’s mining sector.

Read more...
Luna Rossa partners with Siemens for 38th America’s Cup
Siemens South Africa IT in Manufacturing
Siemens details how Luna Rossa is using digital engineering and simulation tools, from CAD to structural optimisation, to design a faster yacht for the 38th America’s Cup.

Read more...
AI is raising South Africa’s cybersecurity stakes
IT in Manufacturing
As AI accelerates both the sophistication and scale of cyber threats, South African organisations face significant gaps in cloud security, data governance and identity management that need to be addressed before AI capabilities are further embedded into business operations.

Read more...
How modern EAM is becoming the driver of productivity, resilience and sustainability in mines
Schneider Electric South Africa IT in Manufacturing
Modern enterprise asset management is turning maintenance from a routine function into a strategic priority, helping mines extend the life of ageing infrastructure while improving productivity and safety.

Read more...
Physical AI solution with potential to transform South African manufacturing
IT in Manufacturing
NTT DATA and Hyster-Yale Materials Handling have deployed physical AI in an industrial assembly environment, embedding intelligence into production workflows to improve quality assurance and cut deployment timelines significantly.

Read more...
AI has an energy problem but Africa has an opportunity
IT in Manufacturing
Africa’s abundant renewable energy resources and largely unbuilt infrastructure put it in a unique position to power the growth of AI data centres sustainably, provided energy solutions are designed to match the scale and flexibility that AI demands.

Read more...
Decoupling software from hardware for future-proofed process automation
Schneider Electric South Africa IT in Manufacturing
Schneider Electric explains why decoupling software from control hardware helps industrial operations modernise without disrupting production or replacing existing infrastructure.

Read more...
Advancing high-performance motorsport design
Siemens South Africa IT in Manufacturing
Siemens explains how its simulation software is helping motorsport engineering group ORECA speed up vehicle design and optimise composite structures for its Le Mans hypercar programme.

Read more...
AI could help relieve pressure on electrical design engineers
IT in Manufacturing
A global survey of 1267 electrical CAD users across 40 countries reveals widespread concerns about workforce shortages, knowledge retention and productivity, as organisations increasingly explore AI-assisted tools to improve engineering efficiency.

Read more...
Next-gen infrared imaging software?
IT in Manufacturing
Optris has launched Optris Connect, a software platform for PI and Xi thermal cameras that combines an intuitive interface with multi-camera connectivity, simplified configuration and integrated error reporting, available free of charge without a licence or subscription.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved