Over
time we have seen how mechanisation, mass production, computers and automation
have greatly impacted manufacturing industries – proving time and again that
nothing is more powerful than an idea whose time has come.
Now,
as we teeter ever closer to Industry 4.0 – the fourth global industrial
evolution that is set to be as pivotal if not more than its three predecessors
put together — the most important question for South African manufacturers is
whether we are ready to meet global competitors at the forefront of technology
innovation.
Although
its output has remained in a contractionary state, the manufacturing sector
continues to be one of the country's biggest contributors to GDP growth; improving
by 1.7% in November 2017 from the same month in 2016, and beating the economists'
consensus of a 0.45% year-on-year growth.
This
boost came largely from food and beverages, which grew 6% and contributed 1.5
percentage points of the total. Basic iron and steel, non-ferrous metal products,
metal products and machinery grew 4.6% and contributed 0.8 of a percentage
point.
The
Ministry of Finance has touched on these advancements briefly during the 2018
budget speech, in which the need for SA “to be bold and coordinated in building
sectors where we have comparative advantage and can be truly world class” was
outlined.
According
to the National Development Plan, South Africa hopes to double its GDP growth
to 2.1% by 2020 - and to do so, we would need to maximise efforts in several key
sectors including mining, agriculture, tourism, as well as manufacturing and service
exports to the rest of Africa and globally.
Paying
attention to Industry 4.0 The impending Industry 4.0 revolution will bring
manufacturing, automation, and data exchange together with a strong emphasis on
data analytics, cybersecurity and the Internet of Things to create a new world
standard of Smart Factories that offer even higher production output at better quality,
minimum time, and less cost.
The
cumulative force of Industry 4.0 will result in increased levels of automation and
digitization within the factories of the future, where machines will use self-optimisation,
self-configuration and even artificial intelligence to complete complex tasks
and deliver at maximum efficiency. Already some of SA’s global contenders, including
its long-standing trade partner China, have expedited plans to align their manufacturing
industries with innovative technologies over the next few years in order to
solidify their smart factories.
According
to Derick Cluley, country-head of operations for prescriptive analytics company,
FICO South Africa – manufacturing in the region is currently at the cusp of
marked success. “This (fourth industrial revolution) is really a perfect
opportunity for South Africa to begin to level the playing field with its most important
global contenders. “We have seen plenty of room for growth in this area, and believe
that optimizing factory models will go a long way in reforming processes to
ensure that SA not only gets more yield out of its manufacturing but is well
poised to beat the technology curve,” said Cluley.
Prescriptive
analytics will be key. Optimization solutions that make use of prescriptive
analytics can help manufacturers in solving complex business challenges across
the manufacturing lifecycle, from inventory optimization, production planning
and scheduling through to shipment and distribution planning.
The
challenge is that processes often involve a large number of interwoven machines,
processes, and resources. Determining the best production schedule for a range
of products is challenging. Paired with ever growing competitive pressure,
complex supply chains, and evolving customer and compliance demands,
manufacturers are under extreme pressure to plan effectively and make the ‘best’
decisions within an ever evolving list of requirements.
This
is where advanced analytical optimization comes in. It allows you to accommodate
unlimited amounts of data to achieve the ideal set of decisions to meet
specified objectives.
Cluley
explains that optimization software can crunch massive amounts of data in very
short timeframes, solving for specific objectives while accounting for conflicting
constraints allowing the business to make optimal decisions. Optimization tools
leverage the flexible workflows needed to maintain consistently optimal operations
in a constantly changing environment while driving stronger collaboration and
engagement across the enterprise.
“More than ever, today’s manufacturers are seeking
ways to apply advanced analytics through the entire planning and production lifecycle
to effect change at a foundational level,” Cluley said.
“Advanced mathematical algorithms do the heavy lifting of calculating complex load building specifications or supplies needed for production planning, while business experts can apply their expertise in comparing various scenarios to minimize waste and maximize profit. It is definitely a way for South Africa to catapult its productivity to desirable levels.”
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