Factories of Future Find Growth and Sustainability Through Digitalization

Geneva, Switzerland, 15 March 2021 – The World Financial Discussion board introduced right now the addition of 15 new websites to its Global Lighthouse Network, a neighborhood of world-leading producers utilizing Fourth Industrial Revolution applied sciences to allow bottom-line progress. Regardless of the COVID-19 pandemic’s unprecedented disruption, 93% achieved a rise in product output and located new income streams.

Notably, these main innovators created new income streams whereas driving environmental sustainability – 53% are seeing measurable and marked environmental sustainability advantages. Some have seen virtually a complete discount in CO2 emissions, double-digit will increase in effectivity and discount in materials use. The brand new report, Reimagining Operations for Growth, outlines how producers completed these outcomes. Their CEOs will present extra insights on the Lighthouses Stay occasion, that includes keynote speaker Satya Nadella, CEO of Microsoft and Alex Gorsky, chairman and CEO of Johnson & Johnson on 17 March at 14.00 CET. See beneath for a full record of the brand new Lighthouses and their achievements.

The Lighthouse Community and its 69 websites are a platform to develop, replicate and scale improvements, creating alternatives for cross-company studying and collaboration, whereas setting new benchmarks for the worldwide manufacturing neighborhood.

Whereas 74% of firms remained caught in pilot purgatory in 2020, analysis primarily based on learnings from the community reveals that scalable Fourth Industrial Revolution applied sciences are key to long-term progress. By absolutely embracing agile methods of working, these producers have been in a position to reply to disruption and ongoing shifts in provide and demand alongside their manufacturing community and worth chains. In addition they prioritized workforce growth – reskilling and upskilling workers for superior manufacturing jobs – on the similar tempo and scale.

Bosch (Suzhou, China): As a task mannequin of producing excellence throughout the group, Bosch Suzhou deployed a digital transformation technique in manufacturing and logistics, lowering manufacturing prices by 15% whereas enhancing high quality by 10%.

Foxconn (Chengdu, China): Confronted with fast-growing demand and labour talent shortage, Foxconn Chengdu adopted combined actuality, synthetic intelligence (AI) and web of issues (IoT) applied sciences to extend labour effectivity by 200% and enhance total tools effectiveness by 17%.

HP Inc. (Singapore): Going through a rise in product complexity and labour shortages resulting in high quality and value challenges, together with a transfer on the nation stage to concentrate on higher-value manufacturing, HP Singapore launched into its Fourth Industrial Revolution journey to remodel its manufacturing unit from being handbook, labour intensive and reactive to being extremely digitized, automated and pushed by AI, enhancing its manufacturing prices by 20%, and its productiveness and high quality by 70%.

Midea (Shunde, China): To increase its e-commerce presence and abroad market share, Midea invested in digital procurement, versatile automation, digital high quality, good logistics and digital gross sales to enhance product price by 6%, order lead occasions by 56% and CO2 emissions by 9.6%.

ReNew Energy (Hubli, India): Going through exponential asset progress and rising competitiveness from new entrants, ReNew Energy, India’s largest renewables firm, developed Fourth Industrial Revolution applied sciences, corresponding to proprietary superior analytics and machine studying options, to extend the yield of its wind and photo voltaic property by 2.2%, scale back downtime by 31% with out incurring any further capital expenditure, and enhance worker productiveness by 31%.

Tata Metal (Jamshedpur, India): Going through operational KPI stagnation and an impending lack of captive uncooked materials benefit, Tata Metal Jamshedpur’s 110-year-old plant with deeply rooted cultural and expertise legacies deployed a number of Fourth Industrial Revolution applied sciences, corresponding to machine studying and superior analytics in procurement to save lots of 4% on uncooked materials prices, and prescriptive analytics in manufacturing and logistics planning to cut back the price of serving clients by 21%.

Tsingtao Brewery (Qingdao, China): Going through rising client expectations for customized, differentiated and various beers, Tsingtao Brewery rethought its use of good digital applied sciences alongside its worth chain to allow its 118-year-old manufacturing unit to fulfill client wants, lowering custom-made order and new product growth lead occasions by 50%. In consequence, it elevated its share of custom-made beers to 33% and income by 14%.

Wistron (Kunshan, China): In response to high-mix and low-volume enterprise challenges, Wistron leveraged AI, IoT and versatile automation applied sciences to enhance labour, asset and vitality productiveness, not solely in manufacturing and logistics but in addition in provider administration, enhancing manufacturing prices by 26% whereas lowering vitality consumption by 49%.

Henkel (Montornès, Spain): To drive additional enhancements in productiveness and enhance the corporate’s sustainability, Henkel constructed on its digital spine to scale Fourth Industrial Revolution applied sciences linking its cyber and bodily methods throughout the Montornès plant, lowering prices by 15% and accelerating its time to market by 30% whereas enhancing its carbon footprint by 10%.

Johnson & Johnson Client Well being (Helsingborg, Sweden): In a extremely regulated healthcare and fast-moving client items setting, J&J Client Well being addressed buyer wants by way of elevated agility utilizing digital twins, robotics and high-tech monitoring and tracing to allow 7% product quantity progress, with 25% accelerated time to market and 20% price of products bought discount. It made additional investments in connecting inexperienced tech by way of Fourth Industrial Revolution applied sciences to turn out to be Johnson & Johnson’s first ever CO2-neutral facility.

Procter & Gamble (Amiens, France): P&G Amiens, a plant with a gradual historical past of remodeling operations to fabricate new merchandise, embraced Fourth Industrial Revolution applied sciences to accommodate a constant quantity enhance of 30% over three years by way of digital twin expertise in addition to digital operations administration and warehouse optimization. This led to six% decrease stock ranges, a ten% enchancment in total tools effectiveness and a 40% discount in scrap waste.

STAR Refinery (Izmir, Turkey): To keep up a aggressive edge throughout the European refinery trade, Izmir STAR Refinery was designed and constructed to be “the technologically most superior refinery on this planet”. Leveraging greater than $70 million investments in superior applied sciences (e.g., asset digital efficiency administration, digital twin, machine studying) and organizational capabilities, STAR was in a position to enhance diesel and jet yield by 10% whereas lowering upkeep prices by 20%.

Procter & Gamble (Lima, USA): A shift in client developments meant extra advanced packaging and an elevated variety of merchandise that needed to be outsourced. To reverse the tide, P&G Lima invested in provide chain flexibility, leveraging digital twins, superior analytics and robotic automation. This resulted in an acceleration of velocity to marketplace for new merchandise by an element of 10, a rise in labour productiveness by 5% yr on yr, and plant efficiency that was two occasions higher than opponents in avoiding stock-outs throughout the yr.

“This can be a time of unparalleled trade transformation. The longer term belongs to these firms keen to embrace disruption and seize new alternatives. Immediately’s disruptions, regardless of their challenges, are a strong invitation to re-envision progress. The lighthouses are illuminating the way forward for manufacturing and the way forward for the trade,” mentioned Francisco Betti, Head of Shaping the Way forward for Superior Manufacturing and Manufacturing, World Financial Discussion board.

Enno de Boer, Companion, McKinsey & Firm, and World Lead, Manufacturing, mentioned: “The 69 Lighthouse producers open a window into the way forward for operations. Although no trade is immune from digital transformation, 4 sectors are resetting benchmarks – Superior Industries, Client Packaged Items, Pharmaceutical and Medical merchandise, and Heavy Industries. We’re seeing a paradigm shift emerge, from lowering price to extra concentrate on enabling progress and environmental sustainability. The Lighthouses are proving that unlocking good capability by way of digital applied sciences is more practical than spending on capital infrastructure.”

The objective of the World Lighthouse Community is to share and be taught from finest practices, assist new partnerships and assist different producers deploy expertise, undertake sustainable options and rework their workforces at tempo and scale. The prolonged community of “Manufacturing Lighthouses” shall be formally acknowledged at Lighthouse Live: Reimagining Operations for Growth at 14.00 CET/09.00 EST 17 March.

Along with a various group of consultants and innovators, the assembly goals to provoke, speed up and scale-up entrepreneurial options to sort out local weather change and advance sustainable growth. Click on here to comply with the assembly.