How Manufacturing Industry is Leveraging Gen AI

The manufacturing sector has long been at the forefront when it comes to leveraging technologies like AI, data analytics, and robotics. In the present day, this industry is experiencing major change due to the growing implementation of artificial intelligence across all stages, from product design to engineering to testing and assembly. According to the World Economic Forum, 89% of executives view it as an essential tool to achieve their growth objectives. McKinsey further highlights that its application can reduce machine downtime by 30-50% and quality-related costs by 10-20%, among other benefits. The key applications are mainly categorised into smart production, supply chain, products and services, business operation and management, & business model decision-making.

The market size for AI in manufacturing is expected to jump from $3.2 billion in 2023 to $64.63 billion by 2031, reflecting a CAGR rate of 45.6%. If you’re wondering what may be fuelling this remarkable growth, a possible indication would be its ability to enhance accuracy, efficiency, and productivity. Let’s take a closer look at how it’s redefining this age-old industry.

Revolutionary Role of AI

• AI Enhances Simulation Technology:

  Manufacturing industries extensively uses technologies to optimise process, predict outcome, and enhance productivity. AI enhanced simulation technology boosts efficiency throughout the process as it can be used to test different layout. It’ll gather precise data and identify potential issues, misalignment, and flaws, helping make a more informed decision and reducing errors.

• Predictive Maintenance to Identify Inefficiencies:

  Manufacturers rely heavily on equipment as it is the heart of production. To keep it running smoothly and reduce downtime and maintenance costs, AI uses condition-based monitoring to collect data on the machinery's health and performance to detect potential issues. AI-based predictive maintenance is trained on historical datasets and fed with real-time sensors to predict failures days or weeks in advance.

• Streamlines Supply Chain Management:

  Manufacturing industries are revolutionising their supply chain operations and improving efficiency and decision-making with AI. Machine Learning (ML) uses historical data it identifies patterns, anticipate trends, and streamline logistics in real-time. Several automotive, aerospace, pharmaceuticals, and technology manufacturers use AI-driven supply chain analytics to predict demand which allows them to manage inventory and ensure that they are meeting demands.

• Ensures Quality:

  This is of utmost importance to manufacturers, and the advanced tool takes it to the next level. AI is precise when it comes to catching defects and inconsistencies in the quality that might have otherwise slipped through the human eyes. This ability helps prevent the mass production of defective items, which ultimately minimises cost and material wastage.

• Impact on Workforce:

  Across the world manufacturers are struggling with the growing labour shortage with many job positions going unfilled. As of late 2023, employers in Europe were struggling to fill about 1 million job openings. While the manufacturing industry requires skilled workers, AI can bridge this gap and empower the workforce by making it easier to learn the complex technologies used. This opens to a larger pool that can learn quickly to use the tools effectively.

Pain Points to Consider

• Prone to Hallucination:

  AI technologies show promise, but they are also prone to hallucination, which can lead to poor decision-making. These technologies are still maturing and will always require human input and expertise to operate to their full potential.

• Skill Gap:

  Implementing these rapidly developing technologies requires experienced workers who can manage it in the desired setting. It can be difficult to find employees with the right skillset. Additionally, the current workforce may not possess the expertise, thereby requiring upskilling programs.

• Data Security & Privacy:

  This is a major concern for many using this revolutionary tool as it uses far-reaching data. Sensitive information requires stringent safeguards to prevent it from getting into the wrong hands and to maintain regulatory compliance.

Collaboration Enhances Efficiency

Henry Ford set the stage for humans and AI to work together in the manufacturing industry in 1913 when he first introduced the assembly line. Since then, it has come a long way, driving innovation and efficiency at an unprecedented pace. The collaboration unlocks new levels of efficiency and productivity in this sector. For instance, AI can detect anomalies or failures and alert operators who’ll take corrective actions.  A powerful example of such partnership occurred when the largest collector and re-manufacturer of printer cartridges in the world used artificial intelligence to empower warehousing employees with cognitive disabilities through conversational AI and mixed-reality problems. When man and machine work together, it opens a world of new opportunities.

Leveraging it for Supply Chain Operations

At the heart of every manufacturing industry lies the supply chain, and failure to manage this aspect can have a devastating impact on revenue. AI-driven value chains can predict the next big trend and help reduce the production of low-demand products.

A report by a global management consulting firm suggested that AI can improve forecasting accuracy in production by 10-20%. Additionally, it can also reduce transportation costs, time, and carbon footprint by using real-time data for route optimization.

As AI continues to evolve, it is enabling improved use cases across the manufacturing lifecycle. To reap the full potential of AI in the production supply chain, consider 3SC’s AI/ML-powered end-to-end supply chain platform, SCAI. Our tool guarantees up to 40% increase in planner productivity, 90% improved end-to-end visibility, 80% drop in supply chain risks, 80% improved data quality & health, and beyond. Ready to take your manufacturing supply chain to the next level?

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