Uncovering Schneider Electric's Insight into Whether a Factory Can Efficiently Embrace Digital Transformation
In the ever-evolving world of manufacturing, digital transformation has become a necessity for plants to thrive. Schneider Electric, a global leader in the energy management and automation sector, has successfully navigated this digital transformation journey, particularly at its Lexington plant.
The Lexington plant, recognised as a 4th Industrial Revolution Advanced Lighthouse and Sustainability Lighthouse by the World Economic Forum, has achieved significant successes with digitization. This transformation has resulted in a 20% decrease in mean repair time, a 26% energy reduction, a 30% reduction in water use, and a 5% reduction in downtime in the paint room.
To shepherd this transition, Schneider Electric appointed a 'smart factory champion' at the Lexington plant. This individual was responsible for guiding the facility through the adoption of new digital tools, following a digitization roadmap tailored to the plant's specific needs.
This roadmap was based on factors such as network infrastructure, ease of IoT system installation, process and people, and the existence of a Lean program. The decision to digitize specific plants was not taken lightly, as plants that resist adopting standard toolsets may do so out of concern that new systems might provide lesser results.
Schneider Electric developed a standardized set of plant digitization tools in 2017. Eleven of its plants adopted these new digital tools immediately, while half of North American plants were skeptical and 10% were uninterested.
The first goals for any new plant-wide IoT system focus on capturing and analyzing data on overall labor efficiency (OLE) and overall equipment efficiency (OEE). These metrics provide valuable insights into the plant's performance, paving the way for continuous improvement.
When choosing plants for implementing an IoT-based monitoring system, considerations include sustainability integration, energy consumption visibility, and centralized monitoring. Schneider Electric emphasizes embedding sustainability into IT and operational architectures through digital energy data platforms that provide real-time visibility into power usage and consolidate energy and carbon metrics into a single data source.
Plants chosen for IoT monitoring system implementation should also have reliable network infrastructure to enable continuous, secure data collection and device communication. Compatibility with embedded security technologies to protect industrial control systems and remote assets is another crucial factor.
Moreover, plants should offer environments where digital transformation can improve visibility into operations, predictive maintenance, and automated decision-making.
Manufacturing engineers and a technically oriented maintenance department are often key resources for the smart factory champion in installing IoT sensors and improving the manufacturing shop floor or lines. Casares, the smart factory champion at Schneider Electric's Lexington plant, also emphasizes the importance of starting with the basics of digitization before moving into more complex systems.
However, Casares warns that underperforming factories, plants requiring changes in software code before adopting the tools, and plants with superior homegrown tools may present challenges for digitization. He suggests assigning tasks related to smart factory programs to a performance leader or someone who leads continuous improvement programs.
In conclusion, Schneider Electric's journey towards digital transformation serves as an inspiring example for the manufacturing industry. By adopting a holistic approach that prioritizes sustainability, security, and compatibility, plants can successfully navigate the digital transformation landscape and reap the benefits of improved efficiency, reduced energy consumption, and enhanced overall performance.
The smart factory champion at Schneider Electric's Lexington plant, Casares, emphasizes the crucial role of manufacturing engineers and a technically oriented maintenance department in the installation of IoT sensors and improving the manufacturing shop floor or lines as part of the data-and-cloud-computing driven digitization process. Finance plays a part in assessing the potential return on investment from the adoption of these digital tools, as the digitization roadmap was tailored to the plant's specific needs based on factors such as network infrastructure, ease of IoT system installation, process and people, and the existence of a Lean program.
