The fusion of automotive engineering and digital technology has been ushering in a new paradigm of not only in mobility but also in the way the vehicles and their parts are produced. Besides, driven by end customers, the vehicle makers are offering several features, which calls for shorter lead times and more variants. Therefore, the automotive suppliers are swiftly switching to digitalisation as agility and being dynamic are key for success. “The core technology that we have in our factories, combined with new technologies like digitalization, will enhance our production system to react faster, to communicate faster, and to produce with a higher efficiency and in a better quality,” said, Klaus Mueller COO Schaeffler Asia Pacific.
The critical question is how to effectively leverage digitalization to enhance production systems, making them more agile and robust. One of the primary advantages of digitalization is its potential to mitigate risks, particularly in addressing supply chain challenges experienced over the past several years. By integrating digital solutions, businesses can improve their response to supply chain disruptions, ensuring better customer service and more efficient information exchange.
Opportunities
Digitalization offers a myriad of opportunities across all facets of an organization. In factories, it can streamline operations, enhance communication, and improve service delivery. Mueller take an analogy to explain by saying that just as people use mobile phones for ordering food and making purchases in their personal lives, similar technologies can be employed in factories for material procurement and customer interaction, he said.
Furthermore, he sees digitalization as a means to not just about business processes; it also has the potential to enrich the workforce. By embracing new technologies, employees can develop new skills and adapt to changing technological landscapes, much like they do in their personal lives. This symbiotic relationship between people and technology can create significant value for organizations.
From Analogue Precision To Digital Excellence
Schaeffler has long been renowned for its manufacturing prowess, particularly in producing high-precision components for vehicles and industrial applications. Bearings, a key product in their lineup, epitomise the company's commitment to precision and quality. Historically, Schaeffler's strengths lay in its meticulous focus on technology, material selection, and the skill of its workforce. This focus ensured that products were competitively priced, of superior quality, and highly durable. Achieving this required extensive research, knowledge, and a keen eye for detail, traits that defined its analog era.
The transition to the digital world, however, has not only retained but enhanced these strengths. Digitalization at the company involves a comprehensive transformation of processes. It starts with understanding every facet of the production workflow and identifying what kind of data is generated. By leveraging advanced software, technology, and algorithms, Schaeffler can now extract deeper insights from these details than ever before.
For instance, in the past, measurements of metals and products were taken in micrometres, requiring significant effort. Today, these measurements are captured digitally, allowing for greater accuracy and efficiency. The integration of big data analytics into production processes means that the Tier-1 company can produce components with even higher precision and quality.
Digitalization empowers the company to analyse vast amounts of data quickly, enabling continuous improvement and optimization. This digital transformation is driven by a hunger for technological understanding and the pursuit of leveraging these advancements to achieve the best outcomes for both customers and products. The same meticulous attention to detail that defined the company’s analogue successes now propels its digital innovations, ensuring that the company remains at the forefront of manufacturing excellence in the digital age, Mueller elaborated.
Benefits
Digitalization offers Schaeffler both tangible and intangible benefits. “Visitors to our modern factories, especially in Vietnam, will immediately notice state-of-the-art facilities, signalling our commitment to future-ready operations. This investment demonstrates our dedication to staying current, benefiting customers, employees, and suppliers alike,” he said.
Tangible benefits include easier work processes and increased transparency, reducing time spent on data collection and visualisation. Automation streamlines these tasks, enabling quicker decision-making. Employees can immediately act on transparent data, enhancing efficiency.
Intangible benefits involve fostering a culture of continuous learning and skill development. Employees are motivated to embrace new technologies and build on their strengths, preparing for future roles that emphasise skills beyond automation. Tasks like loading and unloading machines will be automated, allowing human labour to focus on more complex, irreplaceable functions, thereby improving overall work scope and job satisfaction.
Addressing Emerging Needs
The shift from mass production to mass customisation, driven by customer demands, presents challenges in manufacturing hardware. As per Mueller, Digitalization addresses these issues by enhancing forecasting and planning. Firstly, demand management with algorithms is crucial for understanding variations in customer needs and quantities. This predictive capability allows for better planning and faster reactions to supply chain and inventory changes.
Secondly, digitalization helps in modifying and setting up machines to be more flexible. By utilizing data to understand customer requirements, manufacturers can mechanically adjust or rework machines to accommodate individual customization needs, thus meeting the challenge of individualized production efficiently.
Sustainability Goals
Digitalization is a key factor in achieving sustainability goals for organizations. It starts with precise measurement capabilities, akin to managing a smart home where you can track energy consumption, air pressure, temperature, gas flow, and water usage. By monitoring these metrics, organizations can identify energy consumption patterns and optimize usage accordingly. For instance, reducing air conditioning overnight when fewer people are in the factory or adjusting cooling based on weather forecasts can significantly cut energy usage and reduce the carbon footprint.
Moreover, digitalization enhances material tracking and management. It allows organizations to monitor the types and quantities of materials used, along with scrap rates. For industries like steel, which is a major CO2 emitter, minimizing material waste and optimizing production processes can have a substantial impact. Utilizing digital twin simulations for forming processes, for example, can help in optimizing tooling to minimize scrap rates.
In terms of supply chain management, digitalization offers significant potential to optimize logistics and reduce CO2 emissions. Historically, manufacturing in regions like China and shipping raw materials and finished goods back and forth has been common. However, smart supply chain strategies now consider the carbon footprint, emphasizing local production and efficient logistics. Digital tools can help plan and bundle supply chains, locate factories strategically, and determine whether to localize suppliers based on factors like weight and frequency of shipments.
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