Singaporean manufacturers are increasingly worried about the future of their businesses due to economic instability and demand volatility. Even after the lifting of COVID-19 restrictions, there is no guarantee that production levels will stabilise.
The Economic Development Board (EDB) for the manufacturing industry and the Department of Statistics (SingStat) for the services industry both conducted surveys revealing the respondents’ sentiments.
The reports indicate that Singapore’s manufacturing sector is highly competitive due to the nation’s limited domestic market and scarce natural resources. To overcome these challenges, many businesses in Singapore proactively engage with the global ecosystem by seeking out suppliers, forming alliances and exploring opportunities to expand their markets.
The integration of local producers into the global value chain has been facilitated by automation and new technological advancements. This has led to a strong reliance on the supply chain, which has in turn helped to streamline operations, increase production efficiency and improve delivery timelines.
In the aftermath of the pandemic, local manufacturers have rapidly embraced digitalisation, spurred on by the Singaporean government’s efforts to promote transformation and a smart economy. Technology is being used internally to improve speed and transparency during the ordering, assembly and delivery processes.
While digitalisation has brought significant benefits to local manufacturers, it is not without risks. Consider purchasing systems, which allow product, component, and service suppliers to connect directly to a manufacturer’s system.
If the network is compromised, devastating consequences could cascade out of the manufacturer’s system and into the systems of other players in the ecosystem. The storage and exchange of so much sensitive data between parties may result in, among other things, a breach of confidentiality or privacy.
Accelerating Digital Manufacturing Transformation for an Industrial Edge on 13 April 2023 at Sheraton Towers Singapore, an OpenGov Events session, aimed to equip attendees with the latest insights into developments in the manufacturing sector. The session focussed on identifying the key factors that will enable organisations to recalibrate their digital transformation strategies, with a view towards achieving sustainability and cost savings.
Opening Remarks
To begin the discussion, Mohit Sagar, CEO and Editor-in-Chief of OpenGov Asia, acknowledges that boosting manufacturing speed and transparency involves a combination of process optimisation, technology, and communication.
Mohit emphasises that modernising IT-based digital manufacturing solutions necessitates a complete approach that considers the entire production process as well as the business’s needs.
“Before making any changes, it’s critical to understand the current IT infrastructure and identify opportunities for improvement. This may entail assessing existing systems, workflows, and processes, as well as soliciting employee feedback.”
He suggests introducing lean manufacturing, using real-time data monitoring, embracing automation, enhancing communication, utilising digital technologies, and implementing continuous improvement.
Prioritise activities that will have the greatest influence on the business based on the assessment. Identifying areas where new technology might improve productivity, reduce costs, or improve quality is one example.
When compared to traditional on-premises systems, cloud-based solutions can enable more scalability, flexibility, and cost savings. Manufacturers can take advantage of the latest technology and trends by shifting some or all of their production IT systems to the cloud.
Industry 4.0 technologies, including the Internet of Things (IoT), Artificial Intelligence (AI) and robotics, can enhance the productivity and quality of manufacturing. By integrating these technologies into their IT systems, manufacturers can reduce downtime, enhance product quality and boost productivity.
According to Mohit, as manufacturing becomes increasingly information-driven, it is crucial to have a solid data management strategy in place. This may include the implementation of data analytics tools, data governance policies and security measures to safeguard sensitive data.
Accelerating digital transformation in the manufacturing industry necessitates a holistic strategy that considers the entire manufacturing process and the business’s requirements, Mohit notes.
Some effective strategies are:
- Create a digital transformation roadmap
- Embrace Industry 4.0 technologies
- Implement a cloud-based infrastructure
- Adopt a data-driven approach
- Provide employee training
- Foster a culture of innovation
Adopting manufacturing practices that meet the requirements of the present without compromising the ability of future generations to meet their own needs constitutes sustainable manufacturing. It involves harmonising economic, environmental, and social factors in manufacturing processes to ensure that resources are used efficiently, waste is reduced, and environmental and social impacts are minimised.
Utilising advanced technology and automation systems to create a more efficient and self-sufficient manufacturing process is autonomous manufacturing. Autonomous manufacturing systems are capable of a variety of duties, such as assembly, material handling and quality control.
These systems can operate around the clock and adapt to altering conditions, enabling manufacturers to increase output, enhance quality and reduce expenses.
Depending on the requirements and objectives of each manufacturer, the essential technologies for manufacturing today vary, but there are a few technologies that are gaining importance across the industry.
Among the most important technologies for manufacturing are:
- Internet of Things (IoT) and Industrial Internet of Things (IIoT)
- Robotics and Automation
- Additive Manufacturing
- Artificial Intelligence (AI) and Machine Learning (ML)
- Augmented Reality (AR) and Virtual Reality (VR)
- Cloud Computing
- Cybersecurity
Technology Insight: Realising Sustainable Manufacturing
According to Tong Ker Yang, Head of Uvance Offerings, ASEAN Chief Technology Officer, Fujitsu Asia Pte Ltd, “Traditional manufacturing is enhanced and transformed by two fundamental services solutions. Sustainable manufacturing addresses issues in the manufacturing sector through two main key areas – Digital Manufacturing (DM) and Sustainability Transformation (SX).”
Digital Manufacturing, which offers enterprise data visualisation, data-driven solutions and people enablement, enables firms to progress towards closed-loop operations. This supports the use of digital technology to optimise and improve business operations and quality.
Ker Yang explains that sustainable manufacturing is the process of producing goods in an environmentally and socially responsible manner while maintaining economic viability. It involves reducing the negative impact on the environment, conserving resources, minimising pollution and providing safe and healthy working conditions for employees.
Sustainability Transformation works to increase corporate or social responsibility over the long run by bolstering the supply chain, value chain and carbon neutrality.
To achieve sustainable production, a comprehensive strategy must be implemented that takes into account a variety of factors including resource utilisation, manufacturing processes, energy efficiency, waste reduction, and social accountability.
Moreover, there is an urgent need to address various societal concerns by 2030, given the increasingly intricate and interrelated nature of the modern world, Ker Yang emphasises.
“Social issues and human activities across the world have a significant impact on our lives. To achieve a sustainable future, we must address a multitude of pressing challenges.”
“Uncertainty is an unavoidable component of the business landscape, and businesses must be prepared to resist and adapt to an uncertain future to secure long-term viability,” says Ker Yang. “We have to make decisions to keep up with the rapid changes.”
Driven by a commitment to creating a more sustainable world, Fujitsu has launched a new business focus called Fujitsu Uvance. This initiative is aimed at helping enterprises achieve their sustainability goals and fostering customer success.
“Fujitsu will contribute to the realisation of a world where people can live in luxury and peace of mind through Uvance,” Ker Yang stresses.
Fujitsu Uvance has identified seven key areas of focus, with four cross-industry business domains that include sustainable manufacturing, consumer experience, healthy living, and trustworthy society.
These areas of focus are designed to address both present and future social concerns, as well as to help build a more ideal world. Three areas support these verticals – Digital Shift, Business Applications and Hybrid IT.
Within DM, there are two products: Enterprise Visualisation and Optimisation, which provides a platform for integrating and visualising corporate activities and People Enablement, which addresses issues related to talent transfer and labour imbalance.
The Sustainability Transformation solutions include Value Chain Optimisation, which supports the streamlining of cross-industry ecosystems; Resilient Supply Chain, which promotes supply chain resilience in the face of various risks and Carbon Neutrality which focuses on achieving net-zero carbon emissions.
Uvance offers cross-industry solutions to social problems, both for its customers and their customers. It collaborates with clients to facilitate their long-term transformation and deliver services to their customers. Additionally, Uvance plans to collaborate with leading sustainability transformation firms and utilise agile development with global knowledge and Uvance Horizontal services
Ker Yang explains that the term “Uvance” represents the notion of propelling all (Universal) things forward (Advance) in a sustainable manner, emphasising universality and advancement.
“It exemplifies Fujitsu’s commitment to creating a more sustainable world where anyone can advance their dreams by connecting people, technology, and ideas,” Ker Yang concludes.
Technology Insight: Accelerating Digital Transformation for Manufacturing Industry
Tariq Shallwani, Sales Director of Manufacturing and Distribution Industry (MDI) at Hewlett Packard Enterprise, believes that to navigate the intricate challenges presented by supply chain disruptions, changing customer expectations, intense competition and regulatory requirements, manufacturers must prioritise robustness and accurate forecasting in their supply chain operations.
“It is essential to have a resilient supply chain to satisfy customer demands, navigate regulatory requirements and keep up with industry regulations and sustainability priorities,” Tariq opines.
The COVID-19 pandemic has magnified the significance of supply chain resilience, as lockdowns and shipping disruptions have led to shortages and delays on a global scale. To optimise their production processes and obtain a competitive advantage, manufacturers must comprehend how their customers use their products, how their products perform and how their customers rate their products.
According to Tariq Shallwani, digital transformation is now essential for manufacturers, with agility being the key to success. To enhance their operations, manufacturers must modernise their remote work capabilities, incorporate remote monitoring and asset diagnostics, leverage process automation and enable remote product services.
HPE’s primary manufacturing focus areas are expediting new product development, optimising factory operations and accelerating insights for data-driven decision-making. HPE uses digital technology to streamline the product development process to accomplish faster product design and simulation for safer, better performing, and higher quality products.
The Industrial Internet of Things (IIoT) and Industry 4.0-based use cases are being deployed in manufacturing operations to boost productivity, Overall Equipment Effectiveness (OEE) and uptime. To enable smart decision-making and scalable use cases, real-time factory, supply chain, and business data are linked and connected via an edge-to-cloud digital platform.
This integration is critical for driving more autonomous production, which analyses data from many aspects such as product design, production systems, and business cycles to make informed decisions.
Tariq agrees that a robust data platform capable of artificial intelligence/machine learning (AI/ML) and analytics workloads are required to support such autonomous operations. “Because of its dedication to sustainability, HPE stands out as a preferred option.”
HPE recognises that most of the impact of technological equipment happens during its use phase and, as a result, focuses on efficiency and sustainability throughout the whole IT lifespan.
The company provides continuous transformation services that identify efficiency and optimisation opportunities across a customer’s hybrid IT environment, from data centres to workloads.
The HPE Edge-to-Cloud Adoption Framework establishes an optimised cloud operating model that aligns IT sustainability strategy with business continuity objectives while addressing global sustainability objectives such as reducing emissions, energy consumption, and costs.
HPE also provides Energy and Sustainability Services for data centre facilities, which enhance resource efficiency via sustainable design and operational management of energy, water, emissions, costs and operations. Using their experience assisting governments in defining data centre sustainability policies, HPE’s specialists collaborate with clients to develop strategic plans that align data centres with sustainability strategies.
Its sustainability efforts place a strong emphasis on operational efficacy and visibility. Even though public clouds offer some sustainability advantages, most applications and data still reside in data centres, colocations, and peripheral locations for a variety of reasons.
Tariq Shallwani draws attention to HPE GreenLake’s edge-to-cloud platform, which offers cloud experiences and operating models with self-service, pay-per-use, scale-up and scale-down, and managed services. This platform enables customers to achieve cost savings, enhanced efficiency, reduced footprint and increased utilisation.
HPE GreenLake enables clients to optimise their on-premises or colocation data centre IT equipment by addressing issues such as low usage, over-provisioning, and obsolete equipment, resulting in enhanced energy cost savings and a smaller carbon footprint.
Traditional data centres have a significant impact on global electricity demand and carbon emissions; thus, combining HPE GreenLake cloud services with a colocation strategy can increase sustainability benefits.
“Customers can achieve their sustainability objectives, reduce their environmental footprint and realise cost reductions through efficient and optimised IT operations by partnering with HPE,” Tariq assures delegates.
Knowledge Insight: Driving the Next Manufacturing Paradigm Change Towards Autonomous Manufacturing
Dr Tan Puay Siew, Research Division Director, SIMTech & ARTC, A*STAR, recognises that high demand fluctuations and disruptions, as well as the growing need for customisation and sustainability, are significant challenges that the manufacturing industry faces today. “To remain competitive, manufacturers must be robust and responsive to these changes.”
Fluctuating demand patterns and supply chain interruptions can cause production schedules to be disrupted and customer satisfaction to suffer. To overcome this, producers must implement agile and flexible production processes, invest in predictive analytics and demand forecasting technologies, and form strong partnerships with suppliers to assure a continuous supply of materials and goods.
Likewise, customisation has become a major client expectation, necessitating the provision of personalised products and services by producers. To handle shifting client requirements, agile production methods like additive manufacturing and flexible assembly lines are required.
Finally, as environmental concerns and restrictions rise, manufacturers have prioritised sustainability. To fit with sustainability goals, manufacturers must employ eco-friendly processes, optimise resource utilisation, minimise waste, and adopt circular economy principles.
Manufacturers who prioritise resilience, responsiveness to customised requirements, and sustainability will be better positioned to satisfy changing client demands and drive long-term success in the manufacturing industry.
As complex manufacturing processes, autonomous technologies, resilient value chains, and net zero manufacturing practices gain importance, the future of manufacturing will be smarter, greener, and more connected, Dr Puay Siew is convinced.
Manufacturers are embracing Industry 4.0 technologies such as AI/ML and automation to optimise production processes, minimise downtime and improve product quality.
“Autonomous processes, such as autonomous robots and vehicles, are transforming manufacturing operations, resulting in enhanced efficiency and production,” Dr Puay Siew points out.
Additionally, manufacturers are prioritising sustainability and environmental responsibility in addition to sophisticated technologies. Green manufacturing methods, such as the utilisation of renewable energy sources, the implementation of energy-efficient processes, and the reduction of carbon emissions, are gaining acceptance as the industry focuses on lowering its environmental effect.
Net zero manufacturing, which seeks to reduce or eliminate carbon emissions from industrial processes, is quickly becoming a top priority for forward-thinking enterprises.
Further, resilient value chains are essential for ensuring continuous supply and manufacturing operations in the face of disruptions such as natural catastrophes, geopolitical uncertainty and global pandemics.
Dr Puay Siew reiterates that to develop resilience and maintain business continuity, manufacturers must invest in robust supply chain management practices such as supplier diversification, real-time monitoring and predictive analytics and agile procurement strategies.
“The convergence of modern manufacturing processes, self-driving technology, resilient value chains, and net zero manufacturing practices is driving the manufacturing industry’s change.”
Manufacturers who embrace these trends and implement new strategies will be better positioned to succeed in the future, offering sustainable, high-quality products while optimising operations and addressing evolving customer and societal expectations.
Manufacturing 2.0 (MF2) is the next generation of manufacturing, defined by the combination of sophisticated technology, data-driven decision-making, and environmentally responsible practices to drive efficiency, productivity, and environmental responsibility.
The theme’s Smart component is realised through Production-as-a-Connected Service, which provides immersive digital twin capabilities to enable dispersed or multi-site smart production.
The Sustainable component of the subject is presented in the primary directions of circular manufacturing and industrial symbiosis, on which we collaborate closely with SLED and MPD.
Key technologies and solutions are supported by high connectivity and availability across numerous manufacturing sites.
The combination of smart and sustainable manufacturing practices in MF2 is projected to benefit both enterprises and the environment. It can lead to increased efficiency, lower costs, higher product quality, and increased competitiveness for manufacturers, while also helping to preserve the environment, conserve resources, and promote social responsibility.
Dr Puay Siew recognises that it will be vital for manufacturers to embrace smart and sustainable manufacturing concepts to remain competitive, meet customer needs for environmentally responsible products and contribute to a more sustainable future.
Power Talk: The Changing Dynamics of Manufacturing: Must-Have Technologies!
Jagathesh Rajavasagam, Risk & Cyber Security Officer, Abbott, Singapore highlights the differences between the manufacturing industry and the IT industry, including the longevity of machines in manufacturing compared to easily replaceable devices in IT.
He emphasises the need for visibility and cybersecurity in the manufacturing industry, as well as the challenges of transforming company culture and addressing specific device or function dependencies. “Emerging regulations, such as sustainability and data-driven approaches, pose additional challenges,” Jagathesh opines. “Moreover, the availability of manufacturing operations 24/7 adds complexity to decision-making and risk management.”
For Jagathesh, the key challenges faced in the manufacturing industry include lack of visibility, transformational culture, funding and emerging regulations, along with the unique considerations of downtime and revenue loss during operational disruptions.
Reflecting on how the COVID-19 pandemic has transformed the office space landscape with remote work, Jagathesh notes that homes were being used as offices. This has necessitated the enhancement of data visibility and protection, particularly for connected devices and air gap systems.
The company is leveraging data to improve visibility and make risk-based decisions. They prioritise areas of focus based on availability, contextualising them within manufacturing settings. Additionally, they consider usage patterns and user behaviour, including productivity-related concerns.
Emerging regulations demand the reporting of cyber incidents, Jagathesh acknowledges. For compliance and safety, rapidly detecting and responding to attacks, especially in supply chain and manufacturing settings with numerous vendors is vital.
Data plays a critical role in comprehending patterns and behaviours, informing risk-based decisions and ensuring compliance with regulatory requirements. In addition, data-driven approaches in IoT adoption and Industry 4.0 to automate manual tasks have tremendous potential.
Lim Xiang Hua, APAC IT Director, Gates Corporation, Singapore outlines three categories of business challenges in the context of an increasingly digital landscape.
The first category is macroeconomic challenges, including supply chain disruptions, geopolitical risks, international tensions, industry trends and labour shortages.
The second category is industry-level challenges, such as considerations related to input manufacturing, compliance, legal, and financial aspects; and the third category is company-level challenges, which involve disruptions due to new technologies and key performance indicators (KPIs) such as inventory turns, reduction in manufacturing costs and lead time improvement.
Overcoming resistance to change is a common challenge, and underscores the need to maintain close relationships with business heads, partners and functional leaders who possess the expertise and experience to navigate the business environment.
“As a business partner, one needs to be aware of these trends and challenges as an employer,” Xiang Hua believes.
Staying informed about current trends and engaging in conversations with industry leaders are crucial steps towards leveraging business opportunities. To achieve this, it’s essential to stay up-to-date with industry-related news and manufacturing trends.
Additionally, improving visibility and observability within the business by providing relevant data, status updates, and dashboards can enable better decision-making. Anticipating business questions and considering strategic moves such as office relocation, closing operations, or improving infrastructure like factory or warehouse space is also crucial.
The key to navigating prioritisation in business and IT collaboration is to focus on key areas such as revenue generation, risk mitigation and process improvement. Moreover, it is essential to quantify the benefits and risks associated with each area.
- Revenue generation: This involves identifying opportunities to improve revenue, growth strategy, and other revenue-related areas that can benefit the business. Quantifying the potential benefits and justifying the business case for investment in these areas is crucial.
- Risk mitigation: This involves identifying and addressing various risks such as cybersecurity, compliance, and cross-border legal requirements. Risks can be avoided, eliminated, reduced, or mitigated through appropriate measures.
- Process improvement: This involves identifying opportunities to improve productivity, labour efficiency, and time savings. Quantifying the potential improvements and justifying the business case for investment in process improvement initiatives is important.
“Collaboration with internal partners, as well as industry leaders with domain knowledge, is crucial for successful execution,” Xiang Hua says. “Leveraging their expertise and experience can help in executing initiatives effectively.”
Disclaimer: Xiang Hua’s viewpoints are unconnected to her present organisation.
Tong Ker Yang, Head of Uvance Offerings, ASEAN Chief Technology Officer, Fujitsu Asia Pte Ltd acknowledges the impact of the COVID-19 pandemic on the manufacturing industry, noting that some companies have accelerated their digital transformation efforts due to the challenges posed by the pandemic.
He highlights the increasing demand for data availability and sharing across different departments and business units within organisations, with a focus on central data management for consistency. He recognises the adoption of remote working solutions such as digital twin and remote factory operations management as part of automation.
Ker Yang notes that different countries have varying government regulations and responses to the pandemic, with Singapore being proactive in supporting remote working. The nation emphasises the importance of leveraging data and technology, including AI and automation, for more efficient manufacturing processes in the future.
As a large global company, Fujitsu has success cases from around the world that can be shared with HP and other partners. Fujitsu can provide support with reference cases and collaborate on research and development (R&D) to integrate advanced technologies into solutions for the manufacturing industry.
In addition, Fujitsu benefits from the government’s investment in data and support for the manufacturing community in Singapore, which adds value to its offerings. The global architecture and scale of operations of Fujitsu contribute to their ability to bring value to the table in the manufacturing industry.
Tariq Shallwani, Sales Director, Manufacturing & Distribution Industry (MDI), Hewlett Packard Enterprise highlights the global perspective on the cost of labour and the importance of digital transformation in manufacturing.
He remarks on the phenomenon of nearshoring, where manufacturers are moving their facilities to countries like Arizona and Ohio in the US, and how these manufacturers are prioritising digital transformation, including the production of iPhones in India.
“At HPE, the focus is on building an ecosystem of partners to leverage technology and be at the forefront of innovation in the manufacturing industry. This includes partnering with IoT, security, and MES or Manufacturing Execution System partners, as well as technology partners for container platforms, among others,” Tariq explains.
They aim to create a resilient framework for operations that ensures 24/7 uptime and addresses cybersecurity threats. Building a collaborative ecosystem that encourages partners to innovate on HPE’s platform is a key strategy for success in the manufacturing industry.
Closing Remarks
“Manufacturing and digital sustainability are critical for organisations to thrive in today’s business environment,” Ker Yang acknowledges.
By leveraging technology for sustainable manufacturing practices, organisations can not only drive operational efficiency and competitiveness but also contribute to a more sustainable future by reducing their environmental impact and promoting responsible business practices.
In this, data plays a pivotal role as a critical driver in digital transformation. Data is the raw material that fuels digital transformation initiatives, enabling organisations to make informed decisions, optimise processes and create value.
“There are a lot of opportunities in different industries and manufacturing is speaking up. With this, Fujutsi and HPE have much experience and expertise they bring to the table,” Ker Yang says.
Mohit discussed the opportunities and challenges involved in navigating the current business landscape, with a particular focus on manufacturing and technology. He understands that COVID-19 has hastened the adoption of technology in the manufacturing sector, but also highlighted the difficulties of acquiring the necessary skills and making informed decisions based on data.
In the current VUCA landscape, digital partnerships are significant, especially given the rapidly evolving nature of technology and digital transformation. Such partnerships enable organisations to leverage expertise, resources, innovation, customer reach, risk sharing and competitiveness in the digital era.
“Collaborating with external partners can provide organisations with strategic advantages and enable them to accelerate their digital transformation efforts, drive innovation and succeed in an ever-changing business environment,” Mohit concludes.
