Michael UngarCEO of the Industry 4.0 Club

Unlock Strategic ROI with Industry 4.0: Transform Your Manufacturing

31 Dec 2024 · 1 min

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1:13

In this presentation, the speaker outlines three dimensions of return on investment (ROI) that Industry 4.0 can deliver—measurable ROI, capability ROI, and strategic ROI. He emphasizes that strategic ROI can increase a company's overall value, enabling actions such as acquiring slower‑moving competitors and rapidly integrating advanced architectures to boost acquisition value. The speaker warns small‑to‑mid‑size manufacturers against the common mistake of waiting for perfect data before adopting Industry 4.0 solutions, arguing that even partial data can be leveraged to improve operations today. He illustrates this with a case study of Precision Global in Greenville, which operates 50‑70 machines of varying ages. The company previously collected machine data manually, exporting it to spreadsheets for time‑consuming OEE reporting. The speaker suggests that modern Industry 4.0 tools can automate this process, turning raw data into actionable insights without the need for exhaustive data collection first.

Chapters

This is Industry 4.0, right? You've got a measurable ROI, you've got a capability ROI, you've got a strategic ROI. I've got customers that look at this from a strategic standpoint that say, hey, how much more valuable does my business become with this capability? Can I go and acquire a competitor that's moving slow on this, bring them into this, drop my architecture on them, and increase the value of that acquisition exponentially, right? There's a strategic component to this, right? Exactly. So we're seeing that. Yeah, so when you say, okay, let's think about the mistakes that they make. So if you're a small to mid-sized manufacturer and you're saying, hey, I'm not ready for this, I need to keep on collecting more data, I need to keep on working towards perfection before I make this jump, that's a huge mistake. Listen, if you've got anything coming in, there are ways to use this capability to make your life easier today. So a good example, again, going back to Precision Global down in Greenville, they have a number of machines of tons of different ages. They have 50, 60, 70 machines. that are ranging in age from 1 or 2 years old to 15, 20 years old. All right. So they have data that's being spun off. And so what they were doing is they were taking this data and dropping it into spreadsheets, big-time manual process for putting all these reports together and understanding OEE, extremely time-consuming, extremely manual.