Digital transformation in automotive manufacturing isn’t
new. At GE, we’ve been working with automotive OEMs and tier suppliers for 30+ years
to digitize their processes.
But that doesn’t mean that all – or even a majority – of automotive manufacturers are on the bleeding edge of digitization. I’ve toured plants of major automotive OEMS that still:
- Have paper-based processes in place
- Work as islands of operations. For example, the different shops – Stamping, Body, Trim/Chassis, General Assembly – act more like their own entity rather than having a holistic solution for the plant
- Don’t focus on pulling all of
their data into one place to facilitate optimization
Digital transformation always was and still is a journey
with greater gains in each step change in maturity.
Trends Toward Increased Digitization
According to a recent Frost and Sullivan survey, IT spending
is increasing from $38B in 2015 to $168B in 2025 – a significant growth. We
will see further initiatives around digitization within the plants.
Furthermore, the COVID pandemic has pushed manufacturers to
look more closely at their systems to see how they can better operate in such
extenuating circumstances. Challenges like the chip shortages in the industry
are having an impact on production. Support for remote monitoring and control
as well as reporting has been in higher demand. And, fortunately for
automotive manufacturers, the pandemic is starting to subside which has
increased revenues for OEMs: more people are driving than flying, which
requires a ramp back up in throughput.
According to some reports, automotive manufacturers plan to
increase their digital investment by up to 24% in the next few years, as they
face unprecedented competitive challenges, new product requirements such as
electrification, and more.
However, I have also seen firsthand that manufacturers can
be hesitant to adopt the latest digitization innovation. In this industry where
uptime is the critical metric, many companies are satisfied with just patching
their applications to ensure they can continue to build cars – but without
taking advantage of new technology that could move them to the next level.
Improving Automotive Manufacturing Operations
Some of the challenges faced by the industry includes:
- Maintaining high uptime of manufacturing
- Improving cycle time
- Increasing resource efficiency
- Ensuring cybersecurity
- Supporting the agility required for new models, EV, autonomous, etc.
- Retiring workforce and a new
generation of digital workers
How can automotive manufacturers best utilize the capacity
they have in place and be flexible as more models are introduced?
Certainly, more exciting technologies are coming from the
automotive sector including autonomous and EVs. The push for EV vehicles will
have an impact on the process as many steps will be skipped – for example,
adding a gas tank won’t be needed. This is a big push for the industry, and
flexible manufacturing processes to handle gas-powered vs electric vehicles
will be an even greater requirement.
Another challenge for manufacturing (in many industries, not
just automotive) is new employees coming in to replace retiring workers. This
is a new generation that has grown up on computers and advanced technology.
Manufacturers need to address the best way for these new workers to come up to
speed and stay engaged.
Continuing the Digital Transformation Journey
Recently, we’ve worked with some customers closely to help
push their digital transformation agenda. Some great examples we’ve seen from
some of our automotive customers recently are:
Digitization of Weld - By taking a paper-based process that relied on human interaction to determine weld quality and moving
it to a process that reads data directly from laser welders, this major
automotive OEM was not only able to improve their quality but also reduce their
cycle time of the welding process.
Taking advantage of this digitized data allowed them to
visualize any weld issues in real-time. No longer would they need to transcribe
data, sample vehicles, and deal with paper. They achieved better quality and
reduced cycle time – which translates to better reputation and more revenue.
Automated Storage/Retrieval System – When vehicles
come out of the Paint shop, they are placed in a large storage bin to wait
their turn for general assembly. Which vehicle is selected next will rely on
order schedule, vehicle features, etc. so that the general assembly process
can run as efficiently as possible. For instance, there may be rules that you
can only run two sunroof cars in a row, or it could impact takt time.
Using real-time data on available vehicles, our automotive
software system can select the best vehicle to put on the general assembly line
next. By doing this, we are ensuring the general assembly has the most efficient
plan to deliver the needed vehicles for the plan. This can help reduce cycle time
and improve throughout.
Analytics around Paint Quality – Dealing with data coming
from the plant floor, we can run analytics to determine the quality of the body
paint. For example, looking for imperfections and Orange Peel, we can
understand, based on a myriad of variables, whether a vehicle will have paint
quality issues. Using this system will help improve quality and customer
satisfaction, leading to improved brand equity and revenue.
All of these examples are possible by taking advantage of a
large amount of data available in the automotive manufacturing and automotive
operations processes.
It doesn’t stop there. More exciting technologies are making
their way to the plant floor. Augmented Reality is allowing automotive
customers to error-proof their assembly process by showing operators what parts
to install and where. Mobility also continues to make inroads at the plant,
allowing visibility into data and alerts. And, the cloud is being seen more and
more as manufacturers feel better about making their data available for
applications.
Conclusion
Digital Transformation will forever change the automotive
industry
The automotive industry is going through exciting times with
new technologies within the plant and innovative products for consumers.
Digital transformation is a means for OEMs and tier
suppliers to evaluate their processes to determine how they need to change to
get these new products to customers.
As a “car guy,” it is exciting to watch. And, I’m looking
forward to COVID restrictions easing, so I can get back in the plants in
person!
Ref:
https://www.ge.com/digital/blog/what-digital-transformation-automotive-manufacturing