TIMTOS x TMTS 2022 E-newsletter / 2nd issue
TIMTOSxTMTS 2022

Powering Smart Manufacturing in Machine Tool Business and Development

Powering Smart Manufacturing in Machine Tool Business and Development

With increased globalization of supply chains and focus on zero defect, high throughput, and sustainability, it has become critical for businesses to accelerate their smart manufacturing focus. The Global Smart Manufacturing Market Development – Machine Tool Business Sharing seminar held on the first day of TIMTOS x TMTS 2022 focuses on: Advanced Manufacturing, Smart Manufacturing, and Securing Systems and Processes. Experts from American Institute in Taiwan, German Trade Office Taipei (AHK Taiwan) and Chung Hua Institution of Economics Research share their insights on Industry 4.0, Autonomous Production, and Advanced Manufacturing Ecosystem through keynotes.

Advanced manufacturing

Brent Omdahl, Commercial Section Chief from American Institute in Taiwan (AIT) discussed the U.S. Advanced Manufacturing Industry. According to him, it is hard to define advanced manufacturing. But in short, it helps on automation, supply chain management and data flow.

“Smart manufacturing revolutionizes the automotive industry, and there is a huge number of investments here. We see the highest penetration rate of robots in the automotive, which causes the price of cars in the U.S. more affordable than other regions. Many U.S. companies are either already invested or planning to invest in advanced manufacturing. In this process, educational and financial institutions, local and federal government, traditional and start-up companies all have crucial roles,” he said.

Brent mentioned that the U.S, unlike East Asian countries have those clear policies for industries, they develop well on interfaces of private and public sectors. The strengths of the U.S. industrial eco system are: first, innovation in the universities and private equities; second, big data and cloud integration.

The United States is an ideal business partner, Brent stressed. “Taiwan authorities are supportive of Smart Machinery promotion, and AIT promotes U.S. companies to do business with Taiwan companies, “he added.

Smart manufacturing

Industry 4.0 or Smart manufacturing or the 4th industrial revolution is an ongoing process from automated production to autonomous production, explained Axel Limberg, Chief Representative & Executive Director German Trade Office Taipei (AHK Taiwan). Every company regardless of size, must be part of this or they will be left by the market. However, there is no single solution that could fit all the needs.

Axel cited some of the most-talked 4.0 trends are: 1) OT (operation technology) – IT (information technology) integration: like predictive maintenance is the beginning of the autonomous production. 2) Autonomous production: agile, flexible. It makes customers and the production closer. From automated production to autonomous production, there are machine-learning and self-optimization, it reduces intervention from human. Less personnel in the factory will change the layout design and production efficiency. Like Siemens, their factories are very ambitious and it downs the defect rate. 3) Digital Twin: operate and troubleshoot systems from remote locations, use facilities efficiently and avoid wasting energy, and testing different scenarios and assess performance.

He justified, “German and Taiwanese companies are ideal cooperation partners for Industry 4.0 not only for big enterprises but for any company size. Hundreds of German companies are already using Industry 4.0 for manufacturing processes; more than 200 examples demonstrating innovative processes for linking plant equipment, IT systems and business models. Germany’s manufacturing industry is excellent in terms of energy, mechanical equipment, as well as virtual and physical integration. Meanwhile, Taiwan’s Productivity 4.0 Initiative that aims to integrate strengths in ICT with sensors and human-robot collaboration. It is the world leading manufacturer of information and communication products, with several information and communication products occupying the first place in the global market.”

Securing systems and processes

Dr. Lee of Chung Hua Institution of Economics Research rationalized the need to move towards smart manufacturing. “Smart manufacturing solves the problem of labor shortage: machinery, metals, textiles, electronics, etc. are the most expensive; cuts manpower process by 60% manpower, 40% time, 65% cost; increases competitiveness and replace experience with data change; improves production and supply chain management; reduces time to market; improves customer experience and receives experience with data.

However, Dr. Lee detailed that securing IT systems and processes becomes more important in smart manufacturing than in traditional manufacturing. “Super power nations now realize that this is a national security problem (supply-chain issues), they wanted to reduce their reliance on import and they started from the high-end technologies. So, we see the competitions rise and the environment is no longer like before. Taiwan, however, may become a solutionprovider due to its profound experience and resource in manufacturing fields, and further join the lead in smart manufacturing. With the intensification of competition, Taiwan can become a solution-provider, turning know-how into a business.



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