From cobots to data collection and analysis, Industry 4.0 is changing the way small and mid-size manufactures think about and grow their businesses.
Manufacturers are increasingly turning to automation and other Industry 4.0 technologies as accessible and affordable strategies to help navigate talent shortages, supply chain constraints, and other challenges – all while improving operational performance and quality. A 2021 McKinsey survey of 400 manufacturers across the globe found that 94 percent of respondents said Industry 4.0 helped keep their doors open during the COVID-19 pandemic. Similarly, 56 percent of the respondents indicated the technology was key to their pandemic response.
Yet with so many options for Industry 4.0 on the market, knowing where or how to begin this journey can prove challenging for companies who are busy focusing on the complexity of daily operations.
That’s the case for SoZo Coffee Roasting. The Ionia-based coffee roaster and retailer is in the process of bringing on a new customer that would significantly increase the amount of coffee the 15-year-old company would process and sell. However, SoZo’s production is currently limited by the coffee the company can bag, box, and ship. Rodney Hensley, who owns SoZo, considered automation to free up this bottleneck, but wasn’t sure where to begin or how to incorporate the available technology in a cost-effective manner.
To find a solution, Hensley turned to the free Industry 4.0 Assessment Tool offered by the Michigan Manufacturing Technology Center - West (Center West). The assessments are administered by seasoned professionals who visit each manufacturing site and conduct a thorough review of procedures, processes, and equipment related to Industry 4.0. The information is then analyzed and developed into a report, customized for each manufacturer, laying out the most cost-effective methods of implementing Industry 4.0 technology. For Hensley of SoZo, the results of the assessment demonstrated the breadth of technology available and accessible for smaller manufacturers
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Contact the Center West for a free Industry 4.0 Assessment here. Steven Lopez’s Email: [email protected] Other Center success stories about the Industry 4.0 Assessment: |
“I’ve seen other, larger roasting facilities and the automation there, but now, as that little guy seeing that possibility, I do think I can potentially roast for these new clients and give them the product that they want,” Hensley said. “Sometimes when you're the little guy, you look at these big guys and wonder how they got there. For me, this assessment was a resource I wasn’t aware of.”
Specifically, Hensley is considering adding automated bagging equipment which would increase the rate of bagging more than 10x, he said. Hensley is also looking into adding a system of vacuum tubes and conveyors to transport the roasted coffee around the facility more efficiently to contend with space constraints. By adding this technology, Hensley hopes to free up a worker to be more engaged in the post-roasting process.
“For me, that one person who was bagging now has the opportunity to have a little more flexibility,” Hensley said. “Bagging is a monotonous, boring task. For someone to have to do that eight hours, five days a week would be horrible. At least with this system, they’re moving around and making sure everything is in place. I think that would help in terms of employee retention.”
A FLEXIBLE SOLUTION
The Center West approaches its Industry 4.0 Assessment process by zeroing in on the technologies and systems that will make the most immediate, value-added improvements to the business. The assessors take time to hear each manufacturer’s story and make recommendations based on that information.
“What we try to do is focus on what brings everything together and how we can align all the elements in a business in terms of strategy, infrastructure, information systems and operations,” said Steven Lopez, a business development specialist at the Center West and lead assessor on the Industry 4.0 tool. “Then we look at you as the company. I always hear everyone’s story and pain points.”
The Center West assessors understand that Industry 4.0 cannot be universally applied. Every manufacturer has a different process, products, and procedures requiring different applications of the technology. For SoZo, that expertise came into play when it was evaluating the specific bagging equipment to implement.
Originally, Hensley was considering an automated bagging unit from an overseas manufacturer, which was less expensive than other alternatives. However, after speaking with Lopez and the Center West, he learned the cheaper alternative would provide far less flexibility and cost more long term.
“What Steven (Lopez) did was make sure we had the tools to allow our business to grow,” Hensley said. “If we have access to someone who can code, now we can make changes to our equipment rather than being stuck. That's the flexibility that Steven and the Center West team offer.”
ELIMINATING MISCONCEPTIONS
Through the assessment process, Lopez and the rest of the Center West team work with manufacturers to eliminate some of the preconceived notions around Industry 4.0. One of the most common comes down to cost, Lopez says. While there are plenty of technologies out there with price tags pushing millions of dollars, there are also numerous options available to fit the budgets of small and medium size manufacturers. Lopez notes the importance of thinking about that cost over the long term as Industry 4.0 technology allows companies to free up labor in areas, such as, packaging and shipping, and redirect that talent into value-add processes.
Other times, manufacturers think they lack the sophistication or talent to properly code and manage certain technologies, such as robots. However, the Center West team often points companies toward cobots and other technologies with intuitive user interfaces and controls that eliminate the need for complex coding.
Ultimately, starting off with Industry 4.0 really comes down to awareness.
“It’s about eliminating those preconceived notions and providing education,” Lopez said. “You don't have to be a top-tier manufacturer to adopt technology. You just need to get those people who are curious and provide them with the materials to learn.”
For Hensley of SoZo, the Industry 4.0 Assessment and ensuing education made all the difference when considering investing in technology.
“I would highly recommend the assessments to any small business that is thinking about making that step,” he said. “Why not? What’s it going to cost you? At this point, I have the tools in front of me to make the decision of whether I’m moving forward or not.”
