Technology providing Impetus to the Growth of Manufacturing

Magazine

By: Industry Outlook Team

In an interaction with Industry Outlook, Deepak Sood, Secretary General, ASSOCHAM shared his views on how current technologies are finding their application in the manufacturing sector, and what are the challenges and opportunities involved.

How do you see the adoption of digital and automation technologies in the manufacturing industry in India? What are the major factors driving its growth?

Digital and automation technologies are the next big thing in the manufacturing industry's evolution juggernaut worldwide. Several factors are pushing the envelope for the industry, such as the government's 'Make in India' mission, which is touted as a game-changer for India's economic growth. It would also push the adoption of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI) and Big Data. Our vision of an Atmanirbhar India makes it crucial to adopt technologies which will play a significant role in accelerating the growth of the manufacturing industry and be a backbone for the economy.

What are the major challenges impeding the growth of this industry? What are the constraints dissuading manufacturers from full scale digitization and automation?

Indian manufacturers are waking up to the global trends in automation technologies. There are a few challenges that one can foresee at this juncture; the manufacturing sector is a fragmented one with 90 per cent of the businesses falling under the small and medium definition. As these firms' operational model is high–volume and wafer-thin profit margins, the entire segment may not find it cost-effective and have trepidation towards adopting newer technologies.

Secondly, the integration of various technologies for maximizing benefits poses a challenge. Lack of alignment of various technologies like operations technology and information technology can be a significant hurdle in implementing a successful digital transformation.

Thirdly, the lack of high- skilled labor force to meet the requirement of an automated work environment that involves smarter machines and even smarter operating systems.

However, the recent push towards self-reliance will encourage players to leverage technology for operational efficiency and value-add, which will allow them to compete globally.

What are the major expectations of manufacturers from digital solution providers? How are those expectations changing in the current times?

Digital solution providers have been playing a role of an interface between enterprises and the new changing world of technology. What a manufacturer expects from its solution provider is advice on transforming their businesses by leveraging technology to benefit and create values. The newer advanced technologies such as AI, Data Analytics can be converging to contribute unparalleled solutions as per the manufacturer's expectations.

In the past, there was a certain disparity in an enterprise's expectations and what the solution providers delivered. Now, the enterprises have clear-cut guidelines to reshape, redirect and focus on the successful implementation of technological innovations.

How do you see the adoption of IIoT in the Indian manufacturing industry? How is it empowering the manufacturers in the age of Industry 4.0?

Industrial Internet of Things (IIoT) is set to transform the Indian manufacturing industry. It will give the industry the competitive edge globally that would enable them to evaluate and decide based on clear and precise data to step up production. The system would also reduce certain follies that could cause strain on the environment, in lines with international protocols of green and sustainable manufacturing processes.

Industry 4.0 technologies have promises of widespread benefits in terms of new business models for higher revenue generation, new application opportunity and services. Manufacturers can look forward to giving their customers more value-added services. Specific business models to adapt to the requirement of the manufacturer to increase productivity and customer satisfaction can be done with the automation enabled technologies as IIoT.

How do you see the scope of AR/VR in transforming manufacturing? What are some of the most important use cases that are driving the adoption of AR/VR in manufacturing?

The most significant advantage of Augmented Reality (AR) and Virtual Reality (VR) is the capability of innovating products and services in a completely new way in an enabling environment. The technologies can transform the education, healthcare and manufacturing industries digitally. The 3D experience will augment the learning experiences of students, doctors and employees.

The 3D AR/ VR platforms have various applications in several fields for creating real-time simulations, which has opened immense possibilities for OEMs to reestablish the way businesses are done. Such platforms also support innovations, product design, human-machine interfaces for a better future; the possibilities are innumerable.

The unfolding pandemic has brought forth the importance of technology across various facets of life and business. Our lives are now irreversibly intertwined with technology as we study, work, shop, manufacture, promote, or deliver goods. The next phase of evolution will be based on the AR/VR transformations. From what you eat, to what you breathe, these technologies can augment every experience.

How do you think is 3D Printing going to change the manufacturing industry? Will additive manufacturing completely replace subtractive manufacturing?

Yes! 3D Printing is poised to change the manufacturing industry. Though relatively new, it has become the standard for many manufacturing businesses as it promotes faster production time at reduced operational costs. 3D Printing will make it easier for companies to take advantage of the Lean manufacturing process that has benefited businesses in terms of increased productivity and overall efficiency.

Well, as far as additive manufacturing completely replacing subtractive manufacturing is concerned, I don't think that it will happen as both processes have their places under the sun. Though the majority of manufacturing may adopt AM in due course due to the high quotient of productivity and efficiency in cost and wastage management, there would still be some manufacturers who would be comfortable going on with a subtractive manufacturing process.

Which technologies do you think have massive potential for the manufacturing industry but are yet to be implemented in the industry?

It has to be 'convergence of multiple technologies' that has massive potential for the manufacturing industry in the future. The IoT enabled smart factories coupled with cognitive computing and interconnected via cloud servers will be the future of manufacturing. The synergy of human minds with superlative machines working together to improve the way we do businesses is the key. Of course! Who can deny the growing need for 5G bandwidth to support all the Industrial Internet of Things and Data Creation crucial for all the modern applications? With speeds of up to100 gigabytes per second, the possibilities are immense.

Where do you see the manufacturing industry post pandemic from a technology adoption standpoint?

The Government of India has been launching various initiatives like 'Make in India' and 'Digital India' to steadily increase its global manufacturing market share with other countries across the globe. In the post-COVID-19 pandemic scenario, this will have a positive impact on the Indian economy.

The initiative can be of crucial importance if run successfully by incentivizing the manufacturer for modernization. Identifying manufacturing clusters for automation and facilitating the process can go a long way. Moreover, during the lockdown, the industry came out with solutions to sustain with the help of the technology providing impetus to the future growth of the sector by adopting digital technology in a better way.

Government is expecting that with the 'Make in India' initiative, the GDP contribution of the Indian manufacturing industry will be 25 per cent in 2025 from 16 per cent in 2019.