Digitalization in Production

Definition

Digitalization – Definition and related terms

In the narrower, technical sense, digitalization refers to the conversion of analog values (signals) into digital formats that can be processed by computers.

In everyday language, however, the term often refers to the possibilities that arise from developments in the area of digital technologies. These include e.g. the processing of large amounts of data, the creation of digital goods and business models, as well as networking via digital media. In this article, we will also use the term digitalization to describe the use of modern digital technologies in production.

The multitude of opportunities and changes that arise from the use of digital technologies are also described using terms such as “Digital Transformation” or “Digital Revolution”. In industry, the trend of advancing digitalization is also referred to as “Industry 4.0”.

Potentials

Potentials of digitalization in production

A key element of digitalization lies in the ability to process increasingly large amounts of data.
In production, digitalization not only ensures that more and more relevant data can be provided by sensors, controllers and other systems, but also allows these data volumes to be processed by specialized software applications. With the help of suitable interfaces and protocols, production-related data can be transferred across different levels within a company.

This opens up many new possibilities for monitoring, controlling and automating production processes, which we will discuss in more detail below.

Another important aspect are the opportunities for improved communication and collaboration in production – between individuals, teams and departments, and even between different companies. Optimized communication structures are increasingly becoming a prerequisite for managing complex coordination tasks (global supply chains and locations, more individualized customer orders, etc.).

Digitalization is one of the most important drivers in production optimization. By using advanced technologies, manufacturing companies are trying to make their processes more efficient, productive, qualitative, flexible and sustainable. On the one hand, the aim is to reduce or replace inefficient processes, whilst also utilizing new technologies in innovative ways.

How do manufacturing companies benefit from digitalization efforts?

In production, a wide range of areas and processes can benefit from digitalization initiatives. To make progress measurable, it is important that companies define clear objectives and regularly evaluate their implementation (e.g. using suitable production metrics).

Below, we list some specific optimization opportunities that can be achieved as a result of digitalization projects:

• Cost and time savings through the automation of manual tasks and steps
• Increased flexibility and adaptability of production processes, giving manufacturers the ability to respond to changing market conditions and customer needs
• Reduced costs and time associated with production losses, downtime and other problems
• Optimization and assurance of product quality, but also possibilities for manufacturing more individualized products
• More effective coordination within and between teams and departments
• Closer collaboration with suppliers and partners
• More effective and comprehensive knowledge management
• Reducing the cost of commissioning and maintaining production equipment (e.g. through predictive maintenance)
• Optimized and more sustainable energy management
• Faster time to market for products
• Traceability of products and processes (both in and out of production)
• New business models (e.g. through digital services in connection with existing products)

Implementation

Digitalization strategies in production

The successful digitalization of a production environment requires a carefully planned strategy that takes into account both technological and organizational aspects.

More often than not, the integration of new technologies and solutions brings about fundamental changes to existing processes. Therefore, employee acceptance is also an important criterion for the success of digitalization projects.

At the heart of modern digitalization strategies in production is the intelligent networking of devices, software, people and processes.

To exploit the full potential of modern software solutions and processing capacities, it is important that machines and devices in production are made accessible as data sources. The targeted exchange of data within and between the shop floor (production hall, workshop) and the top floor (management and administration level) not only opens up potential for comprehensive monitoring of systems, resources and workflows, but also new possibilities for more effective production planning and production control.

Interfaces

Interfaces and protocols are needed to connect machines and devices on the factory floor with each other and with local and higher-level software applications.

Data not only has to be collected and transmitted (often in real time and at regular intervals), but may also have to be converted into suitable formats and brought together in a central location. The quality of the data also plays a crucial role – for example, when monitoring production plants based on selected parameters.

One of the biggest challenges in production digitization is to integrate a large number of different machines and devices as data sources while keeping the effort for developing and managing integration solutions to a minimum. Another key task in the planning and implementation of digitization strategies is the prevention of security vulnerabilities.

In order to address the challenges described above, standardized interfaces have been developed for use in industry. One of the most important ones is OPC UA, a communication standard that standardizes the exchange of data between different machines, devices and software applications. Today, numerous machine manufacturers as well as software development implement OPC UA interfaces by default. At the same time, solutions exist to make older equipment capable of providing data through OPC UA.

Some of the most used communication protocols in production are MQTT and Modbus.

Implementation of digitalization projects

Larger digitalization projects usually start with an assessment that evaluates existing systems, machines and workflows in terms of weak points and potential for optimization.

In order to measure progress and to create a clear guideline for all further actions, the next step is to define objectives. These could be time savings for manual activities, a reduction in downtime or more efficient communication channels.

Suitable technologies are then selected based on the previously defined objectives. These are often initially tested in pilot projects and, if successful, expanded to other areas or locations.

Training and raising awareness among employees is also an important step in implementing digitalization projects and can have a significant impact on their success.

Furthermore, digitalization is not a one-time project, but an ongoing process. Existing solutions should be regularly evaluated and optimized. Companies that embrace new technologies early on have the opportunity to gain competitive advantages.

Brownfield and greenfield approaches to digitalization

When considering digitalization strategies, a distinction can be made between so-called “brownfield” and “greenfield” approaches.

The greenfield approach describes the creation of a digitalized production environment from scratch. In contrast to the brownfield approach, no existing structures need to be taken into account. In practice, the greenfield approach therefore most closely describes the planning and construction of a new factory.

In contrast, the brownfield approach refers to the integration of modern digital technologies into an existing production environment. The latter often includes older equipment that was built before digital networking in production became a requirement.

For most companies, the brownfield approach reflects reality. Digitalization projects have to be aligned with existing facilities and structures, which in practice are often gradually upgraded and modernized. One of the biggest challenges is to keep the complexity low and still achieve the highest possible level of interoperability and flexibility.

The actual measures taken often depend on the degree of digitization already achieved by a company. For example, the implementation of a “paperless production” is often one of the first digitalization-related objectives, followed by initiatives for more extensive networking, data processing and process automation.

Technologies

Key technologies in production digitalization

Many digitalization strategies and solutions in production are based on a range of key technologies and technology concepts, which we will discuss in this section.

Cloud Computing

Cloud computing refers to the provision of computer resources over the internet, including storage space and computing power.

In production, cloud platforms and cloud software offer the possibility of managing data from different production sites in a central location, allowing for collaborating independently of location and reducing IT administration.

A wide range of software solutions for production are now offered in the cloud as part of a “Software-as-a-Service” model – from classic MES and ERP applications to specialized platforms for digital production management such as our product manubes.

The major advantage over classic on-premise software is that the entire infrastructure, including necessary maintenance and updates, can be outsourced.

Edge Computing

Edge computing refers to the collection and processing of data at or near the data source. The word “edge” refers to the “edge of the network”.

In production, edge technology can be used in various areas. Local preprocessing of data may be performed to extract relevant information from large amounts of data, structure it and make it available via suitable interfaces.

One example applicaton are Edge gateways that collect local sensor and device data and then transmit it to central systems such as cloud-based IoT platforms.

Our cloud platform manubes uses Edge Nodes to establish secure and bidirectional connections to local machines, devices and databases.

Augmented and Virtual Reality

Augmented Reality (AR) and Virtual Reality (VR) offer a range of applications in modern production environments.

Examples are supporting maintenance staff by (virtually) displaying additional information, planning and simulating new machines and entire production lines before they are built, as well as providing training in virtual environments.

Artificial Intelligence

Artificial intelligence (AI) is also increasingly being used in production. Suitable algorithms enable the analysis of large amounts of production data.

A common application is predictive maintenance, where data is evaluated to predict equipment failures and determine the ideal time for maintenance.

AI solutions also offer great potential in data preparation. Decision-makers in production planning depend on the right data being available at the right time. The AI-based Chat Assistant integrated into our manubes platform analyzes existing data structures and provides answers to production-related questions within seconds.