The Causes of Unmet Expectations in Smart Manufacturing Initiatives

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Today, every manufacturing leader’s focus lies in swiftly establishing smart factories driven by data. The advantages of a smart factory are indisputable; benefits such as enhanced efficiency, reduced costs, scalable operations, and improved risk management are just a few of the rewards in store. Consequently, numerous manufacturers have embarked on their journey of digital transformation. Despite this, studies¹ reveal that even after years of implementing smart factory measures, over 85% of companies fail to achieve successful implementations. A significant impediment holding them back is the convergence of IT/OT.

Historically, IT (Information Technology) and OT (Operational Technology) units have operated independently. In the day-to-day running of factories, the IT division oversees a range of business applications supporting the order-to-shipment process. On the flip side, the OT division ensures smooth backend operations, spanning from material acquisition and production to warehousing. These two units seldom collaborate, only doing so when addressing specific issues like network downtimes, data losses, or security breaches. Handling these challenges in isolation can leave them thoroughly drained.

In modern times, smart manufacturing has dismantled the barriers between information and production. These two units that operated separately must now amalgamate to cultivate fresh capabilities for the organization. They now share common objectives and aspirations, such as constructing adaptable supply chains, optimizing capacity usage, and lessening downtime through predictive maintenance. These innovative strategies will only yield results through the fusion of IT and OT prowess. Drawing from our experiences as pioneers in IT/OT convergence and empowering clients to excel in their digital transformation, we have pinpointed the primary three obstacles to achieving IT/OT synergy in smart manufacturing endeavors.

1. Differing emphasis on data

The initial move towards smart manufacturing involves data aggregation. Nevertheless, the IT team, in charge of data scrutiny, may be uncertain about the necessary data due to a lack of insight into factory operations. Conversely, the OT team, prioritizing seamless production, may struggle to gather adequate data for IT’s analysis. Complicating matters further, OT tools often employ proprietary protocols from their respective vendors. In a medium-sized factory, the variety of protocols used could easily exceed ten, further complicating data aggregation. This is why commencing the journey towards smart manufacturing is frequently the toughest phase.

A seasoned project leader must ensure that both IT and OT teams partake in early discussions to align on data acquisition and analytical needs. An alternative and assertive approach is to establish a new division from the ground up (e.g., a novel information unit under the manufacturing division), ensuring that both IT and OT units share the same objectives and function as a single cohesive unit.

2. Differing methodologies for system development

For IT specialists, meticulous system architecture planning is essential. They craft and devise bespoke systems based on user requisites, which must be explicitly outlined in advance. Iterative modifications and adjustments during the design phase are met with resistance. Conversely, to assure the interoperability and dependability of concurrent systems, OT specialists are accustomed to embracing modular design methodologies, conducting test runs, and fine-tuning modules based on results. Consequently, the trial-and-adapt approach might hike up user demands. This prompts the IT team to repeatedly alter the system design to cater to the new demands, often triggering friction between the two divisions. The impromptu development approach poses a fresh challenge for IT professionals. If OT specialists keep their IT counterparts informed of the testing procedures and potential modifications before initiating development tasks, they can prime the IT team to handle the evolving alterations during the developmental phase, fostering project triumph.

3. Divergent system maintenance requisites

Following the grueling deployment of the system, mutual collaboration on system management and upkeep poses another hurdle. To a proficient IT expert, every glitch demands prompt resolution since a minor issue could snowball over time. Conversely, the manufacturing sector mandates continuous, undisrupted production to stay competitive. Instead of addressing minor glitches immediately, OT specialists opt to rectify them only when the production line is idle. Before incorporating any alterations or upgrades, they meticulously validate every aspect to prevent disrupting production adversely. In the absence of extensive testing, they might prefer to continue with the existing processes, albeit with some flaws.

One can draw a parallel by likening IT personnel to smartphone users. They anticipate (and even welcome) regular software upgrades, including novel system features, improvements, and bug fixes. Conversely, OT-focused professionals mirror train operators; they exhibit extreme caution towards system alterations or procedure modifications. They are risk-averse due to the potential mishaps small adjustments might trigger without thorough testing, escalating into a severe crisis. Hence, from the project’s outset during system conception, IT and OT units should communicate clearly and closely to harmonize their expectations on system maintenance.

To unlock the genuine potential of digital manufacturing extends beyond merely transforming production data into appealing reports accessible on mobile gadgets or procuring robotic arms or swifter automation systems. Authentic collaboration is crucial to fulfill the pledge of the smart factory and actualize its benefits. To achieve this, manufacturers must embark on the right foot by nurturing mutual comprehension amongst IT and OT professionals. By establishing teams comprising merged IT/OT capabilities and expertise, manufacturers can lay the groundwork needed to flourish in their digital transformation.

References:
1.    “Smart factories @ scale”, Capgemini, 2019.