[0:00]Welcome to the AI and manufacturing podcast. I'm your host, David R. Bozos, and in this episode we're going to be talking with Bill Salib, a principal at Deloitte, about the factory of the future. So Bill, thank you for joining us. I think this is a really important conversation to be having at this point in time in manufacturing. We hear so much about the factory of the future. I guess to kick us off, what is it? What does the factory of the future entail? Thanks David for having me. Great to be here. You know, it's a great question. Factory of the future is used a lot. And it's one of those things that means a lot of different things to a lot of different people. But really, if you think about it, at its core, it is the coming together of advanced digital technologies to drive value in new ways. And that is whether it is enhancing operations that already exist or creating net new business models and services and value for for customers and manufacturers. So I think, you know, for us and for the people we work with, we really think about it as this journey to adopt these advanced digital technologies. So I'm really glad you use the word journey because I think so many manufacturers get caught up in the idea of this aspirational factory of the future and how do I get there. And so many of them think that it's a wholesale change that I have to make, but it's really not, is it? It's really, as you just described, a journey. Yes, absolutely. It is a journey. And what it is not is a wholesale rip and replace. You know, manufacturing has existed for a very long time. There's a lot of embedded, you know, assets, equipment, people, processes. And what we're talking about with the factory of the future is layering in or enabling digital capabilities that help you get more out of what you already have. I think that's a key message that we should probably double-click on a little bit for our listeners, because as you just described, so many manufacturers are concerned about having to make a wholesale change and they don't have the capital to do that. So they think, well, this is just not for me. This is for the big guys, the GMs of the world or something like that, which I think is a mistake in thinking because it really is for everybody, isn't it? It is absolutely for everybody. And I think part of that misconception, or at least one of the reasons that misconception exists, is because a lot of people think about the factory of the future as a thing. It's a destination, right? And I think as we've talked about, it's really not. It's it's a continuous journey of transformation. And what's really compelling about it, I think, for the broader set of manufacturers, not just the big global, you know, hundred billion dollar manufacturers, is that you can start small, you can start focused. And there's significant value to be gained without having to completely, you know, overhaul your entire operational footprint. I want to drill down on that a little bit, because I think you make a really compelling point. So give us an example of how a small to mid-sized manufacturer can start small and then realize some of these benefits relatively quickly. Sure. So I mean, if you think about any any manufacturer, right, there's always going to be a number of operational challenges. It can be anything from quality issues on the line to maintenance issues to worker safety issues to planning and scheduling issues. And really, the name of the game is to identify a few of those challenges. And then really, you know, with a few of these technologies, apply them to address that specific challenge. So, for example, if you have if you're dealing with quality issues on the line and you have, you know, a line worker that's assembling some component or inspecting some component, you can install a camera, apply some computer vision models to it. And immediately, that camera and the computer vision model becomes your tireless, you know, quality inspector that can tell you whether the product is good or bad or if it needs to be reworked or if there's issues that need to be addressed. And that's a small, very focused application of a factory of the future technology, computer vision, that can yield very immediate and tangible benefits around improved quality, reduced waste, improved throughput. And so you start small and then you build upon it. Yeah, and I like that example a lot, because it's something that can be retrofitted. It's not something that's only available to a greenfield site, for example. Exactly. So can you talk a little bit about what these digital technologies are that constitute the factory of the future? Sure So you know, a lot of these technologies we've talked about already in terms of computer vision with that example, but then you have a lot of other different kinds of capabilities that can be enabled by technology, starting with, you know, basic connectivity, right? Having the ability to connect different assets and machines on your line to each other and to some centralized database is actually a huge unlock for a lot of manufacturers. And from that, you can derive a lot of insights and then you can layer in other technologies like AI and machine learning to do predictive analytics on those insights to derive even more value. You can have robotics and automation to, you know, help automate certain tasks and processes in the factory. You can have advanced human machine interfaces like augmented and virtual reality to help, you know, workers on the line and enable them to do their jobs better. You can use simulation and digital twins to simulate different scenarios and understand how the factory would react. So there's a whole host of different kinds of technologies that can all, you know, come together to deliver different kinds of value in different ways. I mean, it really is a fascinating time to be in manufacturing, because all these technologies are converging at once, aren't they? And the cost of these technologies is also coming down fairly quickly, which then makes it more accessible to more manufacturers. Absolutely. I think that's one of the biggest drivers of the factory of the future today, as opposed to in the past. I mean, if you think about, you know, what are the different enablers of this convergence of technologies, you're right. The cost is coming down. The capabilities are improving and the accessibility to these technologies is increasing at an exponential rate. I mean, if you just think about, you know, cloud computing, right, and what it's done for enterprise software, it's doing the same thing for operational technology today, where, you know, instead of having to invest in an entire server farm to run your analytics or to store your data, you can do it all in the cloud. And it makes it much more accessible and much more flexible and scalable. I think it's important to differentiate between greenfield sites and brownfield sites, because a lot of manufacturers have brownfield sites. Can you talk a little bit about the differences between the two and what's available for each? Sure. So I mean, for greenfield sites, it's pretty straightforward, right? You're building something from scratch, so you can think about how you integrate a lot of these advanced digital technologies into the design of the factory from day one. And that obviously has a tremendous amount of benefits because you're baking in a lot of these advanced capabilities from the get go. For brownfield sites, which I would argue are actually more interesting and have a bigger opportunity for impact and value today, it's it's all about retrofitting. It's all about saying, hey, I've got this factory that's been in existence for 50 plus years and it's got a lot of analog, you know, machines and assets and it's got a lot of manual processes. How do I enable this factory to take advantage of these digital capabilities without again having to completely rip and replace? And there's a huge opportunity there because of the scale of brownfield factories and manufacturing operations across the globe. So, you know, when you think about it, it's about, for example, if you have old analog machines, how do you put sensors on them to derive digital data from them and then feed them into, you know, a centralized data store and then run analytics on them to derive value? So it's all about, again, retrofitting, enabling, you know, these older capabilities to take advantage of modern digital technology. Yeah, and the sensors, again, are also coming down in price and also the ease of installation is much better than it used to be. I want to talk a little bit about what are the biggest challenges in implementing a factory of the future strategy. You know, it's a great question. And it's one of those things that again, depends on the type of manufacturer you are, the scale of the manufacturer, the industry they're in, but there's a couple of common threads that we see across the board. And for me, I think the biggest challenge is actually around people and process and the change management aspect of the journey. A lot of manufacturers get, you know, caught up in the technology and trying to apply a specific technology to a specific problem without thinking about how do I enable my people to take advantage of this new technology? And how do I redesign my processes to really unlock the full potential of these technologies? You know, the example that I always use is, if you install a really fancy, you know, AI-enabled predictive maintenance solution, but your maintenance crew doesn't know how to use it, or they're not incentivized to use it, then you've really installed a really fancy paperweight in your factory. And that's why people and process and change management are really at the forefront of the challenges. Yeah, and I'm really glad you brought that up, because so many manufacturers focus on the technology and the ROI from the technology. But it's as you just described, it's a lot more than that, isn't it? Absolutely. It is a lot more than that. And it's also about, you know, how do you organize for success? How do you, you know, have an operating model that allows you to bring these technologies to scale across your enterprise, across your entire operational footprint? And there are significant challenges in that as well that we see. You know, how do you go from one pilot in one factory to deploying these technologies across hundreds of factories globally? How do you create the right kind of central capabilities that allow for that kind of scale? How do you create the right kind of governance model that allow for that kind of scale? And those are all people and process and organizational challenges. And then the final thing is really around strategy, right? What is your overall enterprise strategy around the factory of the future? Is it to improve existing operations? Is it to create net new business models? Is it to drive, you know, enhanced customer value? All of these things have to be taken into consideration as you embark on that journey. Yeah, it's not a one size fits all, is it? It's really customized for each individual manufacturer. Absolutely. I think that's one of the other biggest misconceptions is that, you know, there's a blueprint for the factory of the future. And if I follow it, I'm going to get there. It's really not. It's a continuous journey of understanding what your specific challenges are, what your specific opportunities are, and then applying the right kind of technologies to solve those problems. And there's a huge opportunity there for, you know, for all kinds of manufacturers to really embark on that journey in a customized, you know, and bespoke way. So is the factory of the future only for manufacturers that make physical products, or can it be applied to things like food processing, for example? No, I mean, absolutely not. I think, you know, it can be applied to all kinds of different, you know, industrial settings, whether it is, you know, manufacturing of discrete products or process industries, like you mentioned, food and beverage, or even mining and oil and gas. There's an applicability of these technologies in those settings as well. You know, if you think about, for example, food and beverage, you know, how do you track and trace your product from, you know, farm to fork? How do you ensure that you've got the right kind of quality and food safety standards applied at every step of that process? How do you, you know, make sure that you're minimizing waste and maximizing throughput? There's a lot of applicability of these technologies across all of those settings that can derive significant value. I think we've covered a lot of ground today, Bill. Are there any final thoughts you want to share with our audience regarding the factory of the future? Yeah. I mean, I think my final thought is really around thinking big, starting small and scaling fast. And that is, you know, don't be intimidated by the factory of the future. Don't be intimidated by the aspirational future state. Think big about what your overall enterprise strategy is and how you can take advantage of these technologies to deliver against that strategy. But then start small, identify one or two problems in your operational footprint that are really compelling, that are causing significant pain, and apply one or two of these technologies to solve that pain point. And then demonstrate the value very quickly, and then scale fast. Take the learnings from those one or two problem statements and that one or two technologies and scale it across your enterprise. I think that's excellent advice. Bill, thank you for joining us today. Thanks for having me, David. It was a pleasure. This has been another episode of the AI and Manufacturing podcast. I'm your host, David R. Bozos, and we'll see you next time.

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[0:00]Bozos, and in this episode we're going to be talking with Bill Salib, a principal at Deloitte, about the factory of the future.
[0:00]I think this is a really important conversation to be having at this point in time in manufacturing.
[0:00]And it's one of those things that means a lot of different things to a lot of different people.
[0:00]But really, if you think about it, at its core, it is the coming together of advanced digital technologies to drive value in new ways.
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