A “factory of the future” must be built off of a lean and efficient foundation to achieve true value. Kearney believes five tenets will guide clients to build the “factory of the future” that the DMF embodies:

Invest now … in the right places

First movers will lead disruption and find themselves in the best position to beat back competition. The long-term benefits of i4.0 investments outweigh short-term costs. Manufacturers that focus on investing in technology that will drive business results will fare better than those that don’t.

Build capability

Manufacturers need to develop robust processes and employee skills so they are ready to implement and reap the benefits of technology. Technology by itself cannot replace poor processes or lack of vital skills.

One size fits one

There is no one i4.0 tech stack that fits every manufacturer’s needs. Organizations shouldn’t try to mimic what competitors are doing. The adoption of i4.0 technology must be uniquely tailored to that manufacturer’s value proposition, strengths, and weaknesses.

Maintain agility

If implemented incorrectly, technology can leave manufacturers locked into one product or production process. Organizations should seek i4.0 technologies that can be flexibly adapted to changing business environments.

Plan holistically

Manufacturers should consider the upstream and downstream benefits of any technology they adopt. A point solution might fix one problem, but a comprehensive approach to creating end-to-end processes will help organizations meet future requirements better.

What makes the Digital Model Factory unique?

The Digital Model Factory and Kearney’s strategic ops teams have built a comprehensive i4.0 transformation toolkit for our clients. The DMF offers immersive i4.0 demos and hands-on learning. Clients who use the DMF have an opportunity to:

Experience i4.0 solutions, firsthand, on a demo production line of an electric scooter
Workshop challenges, brainstorm solutions with Kearney i4.0 experts, and develop an implementation road map
Collaborate with Kearney’s ecosystem partners to find customized solutions for specific challenges

DMF participants take part in a bespoke workshop to garner insights that can be applied to their business.

What capabilities does the Digital Model Factory showcase?

The DMF demonstrates how i4.0 technologies can produce:

Modular production lines
Advanced quality control
Material tracking and automated fulfillment
Dynamic process updates and training
Safety and ergonomics

Why partner with LIFT Manufacturing Institute?

LIFT is part of a national network of research institutions and industrial companies geared toward advancing America’s leadership in manufacturing technology. The Institute has partnered with many well-recognized manufacturers, including Siemens, Hewlett-Packard, and Comau, and can:

Conduct diagnostics at client factories
Help with strategic planning and road map development
Define ROI goals and help with business planning

The Digital Model Factory line gives organizations a chance to better imagine how they can incorporate i4.0 tech into their operations.

Crafting an i4.0 strategy that builds digital DNA

Capitalizing on the opportunities of i4.0 requires rethinking many of the assumptions that have been best practices in manufacturing for years—this time from new, more dynamic perspectives.

(Re)localize. Organizations can achieve customer or R&D proximity to reduce lead times, deliver on short cycles, and create intimacy with customers.
Embrace new perspectives on make-versus-buy. The traditional make-versus-buy framework focuses on cost advantages and core versus non-core capabilities, but organizations can also capture value from speed, market presence, innovation, responsiveness, and cost and capex benefits. Manufacturers can experiment with new cost–scale curves, digitally enabled collaborations, and creative partnerships with competitors or external investors.
Decouple processes. Organizations can use postponement to maximize the return on capex and capabilities on upstream core steps. Manufacturers can outsource or downstream processes to consolidate platforms, increase responsiveness, develop late differentiation, and enable localization for a limited cost.
Create a flexible operating model. The linear model where all functions and capabilities are in-house under the authority of the site lead can be transformed into a circular model where several players inside and outside the plant contribute to delivery in coordination with site leadership.
Focus on capabilities, discipline, pride, and retaining the best talent. Organizations can accelerate discipline with cost and quality and develop long-term people capabilities by installing transparency along the value chain. This means developing end-to-end processes for rewards and incentives, creating an entrepreneurship culture and technology-savvy teams.
Build a comprehensive vision and strategy. This is the biggest challenge for organizations. It requires a strategy to adopt new technologies across the full spectrum of manufacturing, and it means making complex decisions about modernizing legacy manufacturing assets while implementing new concepts.

Closing the gap

Forward-thinking executives are already revisiting and shaping their manufacturing capabilities. For those who want to keep up, adopting new technologies will not be enough. Success requires being able to sense business requirements and opportunities and pivot manufacturing capabilities.