Manufacturing industry in India has gone through various phases of development over the period of time and promises to be one of the high growth sectors in the coming years. The Make in India initiative aims to boost the contribution of the manufacturing sector from 15% to 25% of GDP, in the near future. In order to support this growth, India will need an ecosystem comprising tier 1, tier 2, as well as tier 3 suppliers, with a high level of efficiency, flexibility, and quality focus. The next decade of manufacturing will focus on cognitive solutions that infuse intelligence into all processes—from a factory’s floor to the finished product. We have to adopt and adapt new technologies in our manufacturing right through our supply chains. Digitalization will play a big role in this entire transition to make sure we create world-class products.
Digitalization promises lower costs, improved production quality, flexibility and efficiency, shorter response time to customer requests and market demands, and also opens up new and innovative business opportunities.
The integration and interplay of product lifecycle management (PLM), factory automation and digitalization which forms the basis of Industry 4.0 will be the key to the sustainable progress of the manufacturing sector, equated as the future of manufacturing (FOM).
Industry 4.0 will result in new ways of creating value and novel business models. It will transform the design, manufacturing, operation, and service of products and production systems. Connectivity and interaction among parts, machines, and humans will make production systems as much as 30 percent faster and 25 percent more efficient and elevate customization to new levels. Digitalization will majorly impact and redefine the ‘productivity’ criteria and measure owing to digital real-time supply chain, digital product definition and digitally crafted and run production lines.
Indian manufacturers have the unique opportunity to blend the availability of advanced manufacturing technologies with low cost of labour to create extraordinary competitive advantage. The need of the hour is for SMEs to take the lead in adopting new technologies and make it an integral part of their business strategies. Those that are successful in understanding the power of digitalization and harnessing it across their businesses will lead this new wave of growth.