According to a study, the implementation of artificial intelligence and other digital tools in mechanical engineering often does not yet follow a concerted strategy. If you want to increase your productivity, you should change that.
Mechanical engineering companies need a concerted strategy to increase productivity through artificial intelligence.
j-mel / stock.adobe.com
Mechanical engineering companies worldwide can increase their productivity by 30 to 50% through artificial intelligence (AI), digitalization and sustainability. These are the findings of the second edition of the "Global Machinery & Equipment Report" by Bain & Company.
According to the management consultancy, companies in the industry are facing a variety of challenges. These include problems in the supply chains, increasing customer requirements and rapidly growing competition in changing markets. This is why managers are increasingly focusing on the implementation of new digital tools and technologies, such as AI, robotics and additive manufacturing.
Three Main Tasks
"Machine and plant manufacturers often still rely on conventional lean production approaches," explains Michael Staebe, co-author of the study. "Although many companies are examining which digital tools and Industry 4.0 technologies they can use and how they can best benefit from sustainability measures, they usually do this in organizationally separate silo structures without an overall strategy."
According to Staebe, in order to achieve productivity gains, mechanical engineering companies must face up to three main tasks: the integration of new Industry of Things technologies into existing production processes, the integration of operational technology and information technology, and finally the alignment of production processes and corporate goals with sustainability and the circular economy.
AI has Priority
In a global survey of industry executives conducted by Bain, 75% stated that the introduction of new technologies such as AI into research and development was their top priority. Meanwhile, there are differences between companies that have been using AI for some time and those that are new to the technology. For first-time users, AI is used particularly in the areas of procurement, assembly, maintenance, quality control and warehouse logistics. AI-experienced companies, on the other hand, are more likely to use the technology to make supply chains more resilient and sustainable.
In the manufacturing sector, for example, generative AI can gain insights from unstructured data that enable improvements in productivity, customer service and financial performance. In mechanical and plant engineering, AI reduces assembly errors, improves quality control, increases productivity and streamlines warehouse management, according to the study.
From Products to Digital Solutions
The manufacturing industry now uses more chips and components for the Internet of Things than any other sector. This indicates that the industry is rapidly adapting digital tools. The advantage of this: Companies leading in implementation can sometimes double their total shareholder return compared to the industry average, according to Bain.
In light of this, many mechanical engineering companies are adapting their strategies - moving away from the production of standardized products for a global market towards tailor-made solutions for specific industries. Specifically, the pioneers are concentrating on a smaller number of customers, but at the same time expanding their product range for these customers. This leads to a less fragmented supply chain.
More than Recycling and Waste Reduction
In addition to digital tools, the topic of the circular economy has become increasingly important. According to a cross-industry Bain survey of around 400 companies worldwide, 47% of large mechanical engineering companies have already made corresponding commitments. However, the majority of initiatives remain narrowly focused and concentrate on recycling and waste reduction.
"Many companies see the circular economy merely as a regulatory necessity," says Staebe. "Some, on the other hand, have already seen it as an opportunity to create value." Those who already have circular supply chains, for example, benefit from up to 28% less material consumption. In addition, two thirds of companies with circular supply chains did not suffer any restrictions during the pandemic - compared to just 2% of those with a conventional supply chain approach.
Realizing a Competitive Advantage
Data from the Internet of Things also helps to extend the service life of machines and production facilities for as long as possible, improve energy efficiency and reduce resource consumption. In any case, circular business models rely on networked machines.
Staebe sums it up as follows: "This new era is about creating holistic solution packages consisting of machines, digital offerings and associated services. This will ultimately enable machine manufacturers to realize a competitive advantage that is difficult to catch up on."
This is a partly automated translation of this german article.