Manufacturing under Industry 4.0 has access to digital technologies such as the Internet-of-Things, Big Data Analytics, Artificial Intelligence, Advanced Robotics, 3D printing, and Cloud Computing that have opened the door to incredible gains for early adopters.
The current and expected benefits of these developments are significant. Manufacturers expect on-time-delivery of the finished products to accelerate by 13 times, while quality indicators to improve at more than 12 times the rate of improvement since 1990. They predict the cost items such as Capex & Inventory to be rationalized at 12 times and material, logistics & transportation cost to be rationalized at 11 times the rate of improvement since 1990. At the same time, overall productivity and labor cost improvements are reported to accelerate at 7 times and 9 times the rate of growth since 1990, respectively.
Manufacturers across segments are harnessing the potential of smart factories, with industrial manufacturing seeing the biggest gains in productivity and quality of output.
Key Geographies: Our research shows that the US and Western Europe in particular have made an early head start. Nearly half of manufacturers in the US, France, Germany, and the UK have an ongoing smart factory initiative.
Source: Capgemini Digital Transformation Institute, smart factory survey, February-March 2017