IT in Manufacturing


Next-gen technologies pave the way for future manufacturing

March 2016 IT in Manufacturing

Following the 2008 financial crisis (and prior to the shale oil and gas boom in the US), we experienced a period of declining industry GDP. In response, the European Union started issuing manufacturing competitiveness reports to guide policymakers to stimulate the economy. The studies found that manufacturing contributes over-proportionally to exports, providing a way to bring liquidity to the region, speed recovery, and increase resilience to future crises. Benchmarking against countries such as Germany with a higher-than-average industry GDP demonstrated that the average level of industry GDP could be increased. Finally, the fact that innovation is a proven way to stimulate manufacturing growth made manufacturing the focus of the EU’s Horizon 2020 innovation programmes. Both the programmes for the discrete and the process industries are set up as private-public partnerships to increase ownership by industry and multiply the public investment. Europe’s strategy inspired the member countries to set up their own programmes in line with national needs.

Germany’s Industrie 4.0 programme is by far the best known of these, but the UK’s (High Value Manufacturing) Catapult programme and France’s Industrie du Futur are also likely to create economic impacts.

For the so-called innovation-driven economies as labelled by the World Economic Forum, initiatives that impact product value are most effective at boosting growth. However, cost-related improvements in process and productivity innovation are also useful.

Government initiatives such as Horizon 2020, Industrie 4.0, and to a lesser extent the US-based Smart Manufacturing Leadership Coalition (SMLC), are concerned with reducing manufacturing’s environmental footprint. The European initiatives also have social sustainability goals, such as well-being at work, job creation, quality of life, etc. In general, these initiatives all represent smart strategies for growth, environmental conservation and well-being.

Smart Manufacturing or Industrial IoT?

So what’s the difference between the terms “Smart Manufacturing,” and “Industrial IoT?” Smart Manufacturing is more encompassing and includes all methodologies, processes, and technologies needed to improve the outcome of manufacturing, be it in the form of product value, quantity or quality; productivity; or reduced environmental footprint. There are two main sources of improvement:

• Advanced manufacturing - this involves improvements in fundamental science or engineering, for example scientific advances such as photonics or chemical nanostructures or engineering improvements, such as modular production technology, additive manufacturing, or advanced forming.

• Smart manufacturing – this includes information, communication, or automation technologies applied to production processes and assembled into smart manufacturing systems.

Among these technologies we not only find the connected devices, systems, applications, and diagnostics that we refer to as Industrial IoT, but also established technologies that have potential in new domains and industrial sectors. For example, autonomous production optimisation applied in the process industries could make its way into discrete manufac­turing, and lean or pull manufacturing could be introduced into the process industries.

Application examples

Current manufacturing processes and technologies can be augmented with smart manufacturing or Industrial IoT to create incremental value. In Europe, one of the integrated steel companies consistently implements Industrie 4.0 across domains and operations. The company was able to increase the throughput of a plant producing intermediate products (transforming steel slabs into rolled steel) by applying pull manufacturing and coordinating manufacturing and logistics with real-time information. While pull manufacturing is not new, there is great opportunity to apply it in new industry sectors. Industrie 4.0 creates momentum to do this.

In seven demonstration projects running for more than five years at several major chemical, polymer, and life sciences companies, the EU-sponsored F3 Factory project demonstrated its ability to reduce both capex and opex significantly, that is, in the 20 to 40% range; by simplifying and accelerating plant construction, skipping upscaling, and improving sustainability dramatically. The solution was to create smaller, modular units with proportionally high production capacity. These miniaturised, highly efficient chemical, pharmaceutical, or polymer plants in a container will make supply chains much more agile. But planning and optimising them is a complex procedure. With these modular production units, manufacturing capacity can be quickly scaled up or down to increase flexibility. Production units can also be shipped to sites close to raw material production or consumers. Early examples today are on-site production of liquefied air and dangerous gases as feedstock for downstream production. A very recent development in methane cracking that produces hydrogen and carbon without producing carbon dioxide is planned to be industrialised using modular production technologies. This would provide carbon dioxide-free energy from fossil fuel at industrial scale for a competitive price.

In one example, a large food and beverage company created highly standardised, modularised packaging lines. The company employed the ISA 88-based PackML standard to dramatically reduce engineering and integration effort when implementing new machines. Other companies are looking to this example to learn on how to set up modularised automation to realise modular, skid-mounted “plug-and-produce” production units.

In another example, the new Singapore plant of a large pharmaceutical company, decreased the time to produce the active ingredient from 12 months to just six hours, by transforming a batch process into a continuous process, thereby providing another excellent example of applying advanced manufacturing.

Engineering humans into the system

Humans, of course, are the key element in any manufacturing strategy. At their best, advanced manufacturing technologies, applications, and approaches can free plant personnel at all levels from repetitive tasks and provide appropriate tools; timely, in-context information; and easily-interpreted analytics to help solve problems and entirely avoid or minimise the impact of issues.

Valentijn de Leeuw is vice president of consulting at ARC Advisory Group’s European organisation. His experience includes knowledge of unit processes, simulation and modelling, and business practices utilising application software designed for manufacturing operations.

For more information contact Paul Miller, ARC Advisory Group, +1 781 471 1141, [email protected], www.arcweb.com





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Data centre design powers up for AI, digital twins and adaptive liquid cooling
IT in Manufacturing
The Vertiv Frontiers report, which draws on expertise from across the organisation, details the technology trends driving current and future data centre innovation, from powering up for AI, to digital twins, to adaptive liquid cooling.

Read more...
How digital infrastructure design choices will decide who wins in AI
Schneider Electric South Africa IT in Manufacturing
As AI drives continues to disrupt industries across the world, the race is no longer just about smarter models or better data. It’s about building infrastructure powerful enough to support innovation at scale.

Read more...
How quantum computing and AI are driving the next wave of cyber defence innovation
IT in Manufacturing
We are standing at the edge of a new cybersecurity frontier, shaped by quantum computing, AI and the ever-expanding IIoT. To stay ahead of increasingly sophisticated threats, organisations must embrace a new paradigm that is proactive, integrated and rooted in zero-trust architectures.

Read more...
2026: The Year of AI execution for South African businesses
IT in Manufacturing
As we start 2026, artificial intelligence in South Africa is entering a new era defined not by experimentation, but by execution. Across the region, the conversation is shifting from “how do we build AI?” to “how do we power, govern and scale it responsibly?”

Read more...
AIoT drives transformation in manufacturing and energy industries
IT in Manufacturing
AIoT, the convergence of artificial intelligence and the Internet of Things, is enhancing efficiency, security and decision making at manufacturing, industrial and energy companies worldwide

Read more...
Today’s advanced safety system is but the beginning
Schneider Electric South Africa IT in Manufacturing
Industrial safety systems have come a long way since the days of hardwired emergency shutdowns. Today, safety systems are not just barriers against risk; they are enablers of safer operations.

Read more...
Siemens brings the industrial metaverse to life
Siemens South Africa IT in Manufacturing
Siemens has announced a new software solution that builds Industrial metaverse environments at scale, empowering organisations to apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale.

Read more...
Five key insights we gained about AI in 2025
IT in Manufacturing
As 2025 draws to a close, African businesses can look back on one of the most pivotal years in AI adoption to date as organisations tested, deployed and learned from AI at pace. Some thrived and others stumbled. But the lessons that emerged are clear.

Read more...
South Africa’s AI development ranks 63rd in the world
IT in Manufacturing
The seventh edition of the Digital Quality of Life Index by cybersecurity company, Surfshark ranks South Africa 75th globally.

Read more...
Optimising MRO operations through artificial intelligence
RS South Africa IT in Manufacturing
AI is reshaping industrial operations at every level in the maintenance, repair and operations supply chain, where it is driving efficiency, predictive insight and smarter decision making.

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