By Eric Whitley, L2L
The food manufacturing industry has become much more sophisticated, organized, and well-planned, and it has found ways to reduce scrap over the past few years. This has become possible partly due to Industry 4.0 and the technological upgrades it brings for food manufacturers.
Connected devices, smart factories, and automation for food and beverages manufacturing have enhanced operational efficiencies across the industry. According to GM Insights, the market size of smart factories crossed $75 billion in 2018 and will grow at a CAGR of over 10% from 2019 to 2025.
Impact of smart manufacturing in the food industry
As data connectivity increases, more smart factories emerge. In 2019, F&N Foods unveiled a plan to develop a 375,000 square foot facility in Tuas to have a “future-ready smart factory.” The company will invest $80 million and was supposed to complete the plant by late 2021. It will have automated storage and retrieval systems to achieve greater operational efficiency and address food industry challenges.
Likewise, other food manufacturers also leverage IoT to their advantage. When shifting to smart factories, disruptions and upgrade demands of regular processes and machines are very likely. The subsequent risks might discourage manufacturers. However, if we analyze them, they are merely myths that should be debunked.
Risks (myths) associated with smart factories
- Humongous datasets: Connecting every machine and process generates numerous data touchpoints. These large datasets, in the long run, are difficult to cleanse and analyze.
- Privacy and data security: Smart factories invite threats of malware and increase data vulnerability. Machines can be hacked into and formulas can be stolen.
- Meeting changing supply chain demands: Customer demands are highly unpredictable. For instance, online grocery sales peaked like never before during the pandemic, and e-commerce must have faster customer deliveries.
- Higher costs: Replacing traditional machines with new, sophisticated ones that can adapt to sensor fittings and data connectivity requires huge monetary investments.
- Loss of jobs: As more robots and automated vehicle systems come into the picture, they could reduce the need for human labor.
These challenges appear as risks in adopting smart manufacturing across the food industry. However, they are nothing more than myths due to preconceived notions. By leveraging the right tools and technologies that smart factories offer, the risks can easily be tackled.
Debunking the myths of smart manufacturing in the food industry
1. More data means more visibility
In the food industry, CIP (cleaning-In-place) is an important aspect to meet the criteria for hygiene and cleanliness. Similarly, there are other regulatory standards that a food factory must meet to reduce waste and downtime. They can be achieved when you have clarity into the machine’s performance, its yield against the raw material, etc. You need data generated through machine-to-machine (M2M) connectivity and digitalization in a smart factory.
You can then leverage these datasets along with advanced techniques of data analytics like machine learning, deep learning, and artificial intelligence for informed decision-making. It is a complete misconception that large datasets can be difficult to manage and derive insights. For instance, Wooden Bakery, a Lebanese baker, maximized profitability with a new enterprise resource planning (ERP) platform and more visibility. They could control their functions better with visibility and had material planning requirements (MRP) just a click away.
2. Firewall security ensures data privacy
Where there is data, there is a threat. However, the risks cannot (and should not) keep you from reaping the benefits of smart factories. Many manufacturers know this and are adopting it in large numbers. The loss of intellectual property can impact future innovations and profitability, and 75% of consumers have reported that they will not do business with companies they don’t trust to protect their data. But, there are technological provisions to keep your data from being leaked or hacked into.
The solution is safeguarding your smart factory with the right kind of firewalls. There are devices and security software platforms that allow you to acquire contextual user data. This means that data quantity and style are presented based on the user profile. It ensures that only relevant information is disclosed to every stakeholder and that regulatory compliances are met.
3. Have real-time visibility into the supply chain
Market demand keeps fluctuating and no one can control it. What might help are valuable insights and the ability to predict it to a fairly good level of accuracy. Datasets from various machines give you real-time insights into every operation, track products, efficiently schedule processes, and predict dispatch orders at regular intervals. Furthermore, data from inventory software, ERP software, and sales software gives you demand insights. This data – when combined with market intelligence – helps you predict demand and know the supply chain better.
Recently, Mariani Packing Company, the world’s largest dried fruit production company, was able to achieve improved visibility and thereby stakeholder collaboration. With this, they automated time-sensitive tasks and reminders.
4. Higher initial costs – but good ROI
It may seem that the extensive disruption needed across the shop floor is heavy on investment. In reality, you need to prioritize your goals and identify the areas that need upgrades. This will help you make judicious and planned investments. On top of that, the operational efficiency, insights gained, and quality benchmarks met with smart factories are far higher than with manual tasks. Together, it provides good ROI.
5. Restructuring job roles and functions
Contrary to popular belief, automation gives higher yield and efficiency, and frees up your employees’ time. It also reduces risks and increases worker safety. Take the example of a factory with no automated systems for product storage and retrieval. As a result, the project engineer spends time coordinating with the storage facility manager for material acquisition. With an automated storage and retrieval system, they would just need to log a request in the software. It will then prompt the robots to deliver the material to a specific station on the shop floor. This same principle is applicable for automated guided vehicles (AGVs) as well. You can dedicate the time saved to research and innovation.
Final thoughts: What lies ahead
What we have discussed so far is a part of digitization and automation of factories. With a fully effective and functional smart factory, one gets a digital twin of the factory. According to McKinsey, “Digital warehouse design lets companies test-and-learn using a digital twin, which can improve efficiency by 20% to 25%.” Now is the time to gear up for this future in automation.
In the food manufacturing industry, automation is in the gray area with several myths. The catch is to analyze your shop floor needs and then deploy automation in phases. A connected shop floor not only helps you stay efficient but also helps you see into the future. It empowers you to react and stay prepared for the future.
Eric Whitley has 30 years of experience in manufacturing, holding positions such as Total Productive Maintenance Champion for Autoliv ASP, an automotive safety system supplier that specializes in airbags and restraint systems. He is also an expert in lean and smart manufacturing practices and technologies. Currently, he’s a part of the L2L team.
