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Fostering growth through promotion of AI in manufacturing


By Nitish Pandey

Artificial Intelligence (AI) has become the buzzword today. While AI is poised to radically revolutionise the foundation of every industry, the manufacturing industry also stands to gain significantly from this technological disruption. So, why is AI being increasingly considered path-breaking for the manufacturing sector? This is because of the implausible potential that AI exemplifies, both, on and off the factory floor.

From real-time maintenance of equipment to pre-empting imperfections during production (for both – product & machinery), and from streamlining the process of designing which enables improved and customised products to creating a smart supply chain, AI showcases the best of Industry 4.0.

In India, AI has just started to establish its foothold in this sector with manufacturing SMEs still trying to decode the implication and overall economics of adopting this new-age technology. Organisations are fast realising the relevance of Industrial Internet of things (IIoT) that aims to transform businesses by enabling collection and sharing of pertinent data. However, as the technology develops, costs drop and it becomes all pervasive, the existing gap between an SME’s aspiration of adopting AI and the real implementation of this technology on the shop floor will be successfully bridged.

From imperfections to perfections

AI enabled systems are equipped with the ability of detecting microscopic aberrations during production using complex algorithms, a feature which even the most keen-sighted human fails to achieve. Moreover, these systems are capable of making real time informed decisions. For instance, if the system predicts any defect in the production line, the data is instantly processed and escalated as an immediate alert to both human supervisors and the machine.

Therefore, there are streams of data that can be collected and analysed to pre-empt defects. In some cases, the defect is automatically rectified within record time, thereby; saving both capital and manpower that is otherwise lost in recalls, repairs and replacements. In a similar vein in manufacturing, AI is also deployed for predictive maintenance of equipment with multiple sensors pre-empting machinery breakdowns and automatically taking required actions to remedy the expected malfunctions.

Supply Chain

a) Demand forecasting

Supply Chain Management is equally being made more efficient and streamlined by AI enabled analytics. Predictive analytics powered by machine learning and Big Data identifies trends and patterns from historical data as well as critical demand drivers, thereby, successfully enabling both real-time adaption to change in demand and strategic decision-making.

b) Numeric method for transport equation
In the coming years, AI and Big Data will be increasingly deployed in all areas of supply chain management from weather forecast for the shipping of raw materials to inventory optimisation to predictive maintenance of the final product. AI can help beyond the linear transport model (numeric method).

Industrial Internet of Things (IIoT)

IIoT is poised to revolutionise industrial automation by introducing seamless and efficient manufacturing processes. The deployment of IIoT comes with a promise of minimal human involvement that ensures faster decision making, availability of real time data and limited risks that have a positive impact on a the entire manufacturing chain. This not only drives up efficiency by several notches but also curbs costs.

The existing reality of the Indian manufacturing SMEs

There will certainly be a paradigm shift from manual procedures in manufacturing gradually assisted by AI and then transitioning all the way to absolute autonomy to the AI engine. However, this reality is still some time away in India. While opportunities are limitless, SMEs in India are still a long way from completely embracing and adopting to artificial intelligence. Contributing 45% of the total manufacturing output of the country, SMEs are still behind the curve when it comes to technology up-gradation. The major reasons are paucity of funds as well as lack of awareness of the importance of this technology.

Under the Make in India initiative, the government aims to increase the share of GDP from the manufacturing sector to 25% by 2022. This will only be possible if timely and effective interventions by the government are implemented to foster growth of the manufacturing industry through promotion of technology.

To bridge the existing knowledge gap, the government needs to promote provisions for intensive trainings to industrial workers on using smart machine and AI powered tools on the shop floor. A move in the right direction is the recent announcement made by the Government wherein Rs 6,000 crore will be allotted towards the development of Tool Rooms across the country aimed at providing support for designing, quality and timely consultation to the small manufacturing players. Along with other initiatives aimed at technology up-gradation of manufacturing SMEs, like the Credit Linked Capital Subsidy Scheme and The National Manufacturing Competitiveness Programme, the government is striving to develop a sustainable and robust ecosystem for the manufacturing sector.

What the future of the manufacturing industry holds

Artificial Intelligence will be the key determining factor that will decide the survival of manufacturing SMEs in an increasingly competitive scenario. Not adopting this futuristic technology will keep costs elevated, inefficiencies in production and ultimately make operations unviable via-a-vis competition. The future is likely to lead to a sharp divide between the AI-enabled and the not AI-enabled manufacturing SMEs. Needless to say, SMEs patronising such technologies will hold an advantage over those using conventional means.

In line with its endeavour to give thrust to research, Internet of Things (IoT) and AI, amongst others, the government has doubled the allocation for the Digital India programme to Rs 3,073 crore. The manufacturing industry, therefore, needs to prioritise budget allocation for AI adoption since AI driven-manufacturing will change the process of production that will represent an innovative leap towards achieving greater productivity, lesser or no operational inefficiencies and uncharted opportunities for the manufacturing sector in India.

(The writer is SVP, Product and Tech, Power2SME)





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