How Canadian manufacturers are leveraging technology to future-proof their business

With increasing pressure to produce quality products for lower costs, manufacturing companies must find ways to do more for less. New technologies such as robotics, data analytics, and embedded sensors can eliminate time-wasting procedures and improve efficiencies.

As the manufacturing sector comes to terms with a lack of skilled labour, hiring difficulties, and an aging workforce, advanced technologies can be critical in keeping operations thriving. By automating routine tasks, enhancing workforce skills, improving efficiencies, and even being a force to attract young talent, Industry 4.0 enables manufacturers to achieve higher levels of productivity and competitiveness, even in the face of a diminished labour pool.
 

The cost of doing business in Canada is high, due to wages, energy costs, the chip shortage, rising inflation, regulatory compliance, and other factors. Canadian manufacturers who have difficulty competing on price need to differentiate themselves through innovative products and services.

Industry 4.0 opens up new pathways to doing business, such as enabling the development of smart logistics solutions, leveraging predictive analytics to anticipate supply chain disruptions, and receiving real-time visibility into supply chain management. These advancements all help manufacturers diversify their supply chains and build greater resilience.

Over the next five to 10 years, a large percentage of Canadian companies will come under new ownership, either through business succession or sale. Initiatives such as scheduling algorithms, simulation tools, and predictive maintenance can increase innovation and product quality, which in turn raises the intrinsic value of the company. As today’s business owners begin to look to the future, implementing the right digital tools now can help preserve their legacy.

Traditional manufacturing has struggled with issues related to a lack of centralized management, operational silos, and fragmented data. As cloud computing, edge computing, and plant and corporate systems become more sophisticated, digital factory strategies are more accessible and affordable. Managers and plant operators are able to collaborate across multiple locations, consolidate and interpret data, and share information directly from their workstations.
 

Organizations in all industries are under increasing pressure to measure, address, and report on their ESG impacts. As automated processes gain momentum throughout factories and supply chains, they can, if used effectively, facilitate the benchmarking and reporting of corporate sustainability practices.

• Conduct a holistic assessment of your company's resources, information systems, organizational structure, and culture to determine where you stand on the Industry 4.0 maturity model.
• Examine your organization's readiness across its main functions: development, production, logistics, services, and marketing/sales.
• Identify any gaps, such as cybersecurity and IT systems, the availability of a data analytics program, or a workplace culture that supports flexibility and adaptation. Some areas of your business may be higher or lower on the maturity model index than others.

Achieving Levels 4 and 5 on the digital maturity model represents an advanced stage of digital transformation, and many manufacturers are still in the early stages of this journey. For small and medium-sized manufacturers especially, reaching Level 3 of the model is a more practical and achievable target for the near future.

• Your company’s unique Industry 4.0 vision should include the organization’s present state and desired outcomes. Set priorities based on strong, tangible returns.
• Formalize benchmarks and key performance indicators (KPIs). According to the CME, approximately 90% of manufacturing companies do not engage in benchmarking their operations against industry leaders. Measuring your progress against the current state of your competition or the industry as a whole will provide valuable insights and improvement opportunities.

• Be proactive about creating a funding blueprint. Companies that are the most successful adopt a forward-looking approach and present a strong business case.
• Government are available to Canadian companies based on a project’s technology readiness level.

• Engage internal and external stakeholders who will work collaboratively to drive initiatives forward. Assign clearly defined roles.
• Internal stakeholders should include a cross-section of employees from multiple levels and functions: executives and senior leadership, HR, production, logistics, finance, sales, etc.
• External stakeholders may include suppliers and customers who will be impacted by your projects, and third-party experts who can assist with planning and implementation.

• Focus on solving a concrete business problem or operational bottleneck. Digitalization often begins by taking small steps and building to a larger goal over time.
• Follow the three “i’s” of Industry 4.0: make your project incremental, iterative, and integrated. Leave room for flexibility and adaptation, and work to minimize organizational barriers.

• Map your initiatives to existing processes and relationships (both internal and external), incorporating the effect on various departments, possible roadblocks, and test plans into your project.
• Design a strong change management strategy. Engage your employees in the process, communicate clear expectations, and provide resources for training and development.