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:

Five data centre trends to watch in 2025
IT in Manufacturing
Any innovation that comes out in 2025 – whether it’s flying cars, highly advanced AI or a breakthrough medical treatment – will be built on the back of an equally innovative IT foundation driven by data. Data that needs to be stored, managed and made accessible in the data centre, in the cloud or at the edge. Is it too much of a stretch to say the future of humankind is dependent on data storage? We don’t think so.

Read more...
Recovering from a cyberattack
IT in Manufacturing
While many organisations have invested heavily in frontline defence tools to try to keep out bad actors, they have spent far less time and money preparing for what happens when the criminals eventually get in. And they will get in.

Read more...
The value of proactive maintenance management
Schneider Electric South Africa IT in Manufacturing
Maintenance has come a long way from the days when we waited for things to break, and thanks to the ever-increasing capabilities of technology, predictive maintenance has become a viable solution for keeping equipment running smoothly and efficiently around the world.

Read more...
Significant decarbonisation can be achieved in the mining industry
ABB South Africa IT in Manufacturing
ABB has released a global report titled ‘Mining’s Moment’, which highlights the progress being made by the mining industry to make operations more sustainable.

Read more...
Pinpointing pipeline occurrences in seconds, not hours
Schneider Electric South Africa IT in Manufacturing
At any given moment, thousands of kilometres of critical assets flow through pipelines that cross veld, mountainous areas, dense forests, and even busy streets. Surprisingly, many of these pipelines operate either unmonitored or with scant oversight, leading to missed opportunities for operational continuity and efficiency.

Read more...
Next-generation AI-enhanced electronic systems design software
Siemens South Africa IT in Manufacturing
Siemens Digital Industries Software has launched the latest advancement in its electronic systems design portfolio. The next-generation release takes an integrated and multidisciplinary approach, bringing a unified user experience that delivers cloud connectivity and AI capabilities to push the boundaries of innovation in electronic systems design.

Read more...
Spatial computing and AI – where no man has sustainably gone before
Schneider Electric South Africa IT in Manufacturing
Some will argue that we now live in a sci-fi world where we dream of electric sheep, and today’s technology – unlike HAL – can provide us with the answers we seek. To the realist it might seem a bit implausible, but when you start using terms like ‘spatial computing realises sustainable AI’ it doesn’t seem that far-fetched.

Read more...
Safeguarding DCS today and tomorrow
Schneider Electric South Africa IT in Manufacturing
Today’s distributed control systems (DCS) are highly intelligent, converging OT and IT in a centralised manner that allows for simplified management and coordination of operations. It is technology evolution at its finest, but with a caveat, cybersecurity challenges.

Read more...
Quantum computing is not as futuristic as it sounds
IT in Manufacturing
The first quantum computer was created almost three decades ago. While its applications are still unknown to many, this advanced field combines computer science, physics and mathematics to deliver solutions the world has been trying to find for aeons – and those it doesn’t yet know it needs.

Read more...
Transform field data into actionable business data
IT in Manufacturing
As part of its ongoing commitment to enhancing industry connectivity, Teledyne Gas & Flame Detection is making its new and proprietary Teledyne GDCloud available with the company´s GS700, GS500 and Shipsurveyor portable gas leak detectors, and also its PS200 portable four-gas monitor for personal safety and confined-space applications.

Read more...