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Digitalization Industry 4.0 : How Does Smart Production Succeed in the Company?

Hardly any other term is used as often as "smart" these days. Everyone and everything wants to be smart. After all, the term stands for "good-looking", "enterprising" or "clever". It is therefore not surprising that factories are also given the adjective "smart". This is done with the perspective that these characteristics can be transferred to production, as it were. So how can production be made "smart"?

To answer this question, the term itself must be described in more detail. There is an "industrial" definition of smart, which is particularly well known in the field of project management.

Here S.M.A.R.T. stands for: Specific, Measurable, Accepted, Realistic and Timed. And isn't increasing the "smartness" of a factory a project?

What is the SMART formula?

The better the objectives are defined in concrete and measurable terms, the easier it is to assess whether the project objectives have been achieved.

A clear objective defines the specific difference from the initial situation (actual situation) that is to be achieved in the future (target situation). The focus here is on the result and not on the process running in the background.

This is where the SMART formula comes into play. Based on five criteria, it makes it possible to get to the heart of clear objectives:

  • Specific (not generally formulated, but precise)
  • Measurable (target achievement must be verifiable)
  • Accepted (the project team stands behind the achievement of objectives)
  • Realistic (it must be possible to achieve the goals)
  • Time-bound (have a fixed time for achievement)

An example of the application of the SMART formula:

Before: We want to improve the usability of our application.
After applying the SMART formula: More than 70% of our users should be able to speed up their work processes by a factor of 2 within three months.

So what are the issues that give production the attributes of "good-looking", "business-minded" and "smart" and how does a company get there? To do this, the elements of a production system must be examined and starting points for improving smartness must be found.So what are the issues that give production the attributes of "good-looking", "business-minded" and "smart" and how does a company get there? To do this, the elements of a production system must be examined and starting points for improving smartness must be found.

The key elements today are people, machines and, for a long time now, the software used for planning and controlling production as well as for the machines and systems themselves. It is precisely these elements that the initiatives must address.

People: Human intelligence is still an important factor

It is undisputed that people will continue to have control over production in the future. Even in times of emerging artificial intelligence, human intelligence is the measure of all things. So the human factor in production is still important - even if this is often disputed by concerned gurus of human friendliness. Users must therefore be given ever better support, be it in directly influencing processes or in decision-making:

  • Specific
    People's needs must be evaluated precisely. Every company is different - be it the products, processes or available resources. As a result, the participation of employees in all activities must be ensured.
  • Measurable
    This involves, for example, the degree to which work is made easier or the speed of processing is increased. People should be relieved of routine tasks and be more enthusiastic about real creative work.
  • Accepted
    This makes work more attractive for people in production and potentially increases the quality of results.
  • Realistic
    Of course, the boundary conditions must be considered and the appropriate prerequisites created. Realistic and achievable goals provide additional motivation and increase the commitment of everyone involved.
  • Time-bound
    The production processes for the core products and/or products with the highest margins should be given priority and short-term targets should be set and monitored.

Machines: Getting fit for digitalization

The machines and systems are designed for long service lives and high reliability. As a result, the service life of some production technology is extremely long - 30 years and longer are not uncommon. As a result, it will be particularly important to make this technology fit for today's requirements in the era of digitalization. Modern systems are often prepared for future requirements in terms of their communication capabilities, flexibility and upgrade options:

  • Specific
    The suitability of machinery and equipment for digitalization and networking must be examined. Fast results can be achieved by retrofitting older but still reliable technology. The possibilities of modern systems should be fully exploited.
  • Measurable
    There are a large number of well-defined key figures for evaluating the efficiency and effectiveness of production. Associations and standardization institutions have published regulations such as ISO 22400 or VDMA 66412 for this purpose. In conjunction with suitable software, deviations or faults can be identified and evaluated very quickly and measures can be initiated.
  • Accepted
    The increase in production efficiency makes an improvement in the operating result likely. Increased profits can be used for re-investments in technology or personnel and increase the company's competitiveness in the medium and long term.
  • Realistic
    Of course, a production system cannot be completely modernized all at once. This is not even possible for cost reasons and therefore in terms of profitability. But it is also not necessary. By focusing on core processes and utilizing all available options, it becomes much more realistic to achieve the target.
  • Time-bound
    The production processes for the core products and/or products with the highest margins should be considered first and foremost and short-term targets should be set and monitored.

Software: The heart of smart production

Software is playing an increasingly important role in manufacturing. Be it the direct control systems of machines and systems (PLC) or the operational application systems such as ERP and MES. Many tasks cannot be accomplished without these systems. This includes, for example, horizontal inter-company networking with business partners or the vertical integration of planning systems with the production process. This massively improves the efficiency of order processing, from customer and supplier communication to production monitoring:

  • Specific
    The application systems must be examined for their horizontal and vertical networkability. Vertical networking then also affects the machines and systems (PLC or post-automation). Clear objectives must be defined here and business partners must also be increasingly involved. Value creation is increasingly taking place in networks. The participants in these networks must therefore be appropriately empowered and use suitable systems (ERP). The networking of production technology with higher-level application systems is critical to the achievement of quality and delivery targets (MES).
  • Measurable
    The speed of order processing from inquiry to quotation or key figures such as cash-to-cash cycle time can make measures taken or successes measurable by using appropriate systems. Vertically integrated systems enable the monitoring of key figures such as OEE and provide information on potential improvements in the production processes. The use of standardized KPI systems enables benchmarking, e.g. in industry comparisons.
  • Accepted
    The trend towards mobile application of business and production-related software solutions is unbroken. It's about increasing usability and increasing the processing speed of tasks in a network of people, machines and software. The focus is on the support and acceptance of users in managing the processes in the factory.
  • Realistic
    On the basis of the identified core processes, obstacles to processing must be gradually eliminated. The solution approaches can be diverse. Training, software solutions, networking or even the purchase and addition of equipment come into play here. Experience has shown that “big litters” are not helpful. They take too long and successes only become visible late. Step-by-step procedural models should be preferred here.
  • Time-bound
    Defining clear target horizons in software projects is actually self-evident. Agile approaches and short cycles ensure that requirements and expectations are constantly compared with reality and thus ensure the practical suitability of the resulting solutions.

Smart production methods can give your production a decisive competitive advantage. However, the requirements for the software are becoming increasingly complex. Ultimately, flexibility and changeability of production should be supported and a wide variety of processes should be implemented easily.

In the area of ​​production, integrated production and detailed planning plays a major role. PSIpenta ERP and MES solutions meet the requirements of complex manufacturing and company processes and are therefore the ideal basis for smart production.

Your contact

Karl Tröger Business Development Manager, PSI Software SE

Seit mehr als 20 Jahren ist Karl Tröger bei der PSI Automotive & Industry. In dieser Zeit hat er sich mit allen Aspekten von ERP-Software befasst und war in führenden Positionen in Entwicklung, Beratung und Marketing tätig. Heute versteht er sich als Bindeglied zwischen Kunden, Markt, Wissenschaft sowie Software-Entwicklung und Marketing. Der Diplom-Ingenieur der Elektronik und Nachrichtentechnik ist an der von der Bundesregierung initiierten Plattform Industrie 4.0 beteiligt und veröffentlicht regelmäßig vielbeachtete Publikationen über die Zukunft von fertigungsnaher Software.

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