Options for a National Plan for Smart Manufacturing (2024) / Chapter Skim
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5 Challenges and Opportunities in Realizing Broader Impacts of a Smart Manufacturing Sector in the United States
5 Challenges and Opportunities in Realizing Broader Impacts of a Smart Manufacturing Sector in the United States
Pages 85-104
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From page 85... ...
To put this in quantitative perspective, several studies have examined the potential return on investment (ROI) of implementing smart manufacturing processes.
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From page 86... ...
For supply chains, industry projections of 12–15 percent in economic benefits from supply chain effects were the result of increased productivity, better demand-dynamic manage ment, better consumer product delivery, and greater visibility. Sustainability im pacts are projected in terms of energy use reduction and reduced GHG emissions when all manufacturers for an industry sector adopt similar solutions for similar operations (i.e., the materials and product are held constant)
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From page 87... ...
CESMII and CyManII have independently estimated the market penetration of smart manufacturing to average around 9–10 percent over the next 10 years. While the potential for economic benefit is significant for individual manufacturers and supply chains, accelerated adoption of smart manu facturing industry-wide is key to significant environmental impacts.
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From page 88... ...
There is great opportunity in focusing attention on these industries at the factory level because they account for greater than 80 percent of the energy usage and the GHG emissions, and they tend to be concentrated at large manufacturing facilities.7 However, the greatest economic benefit and the greatest long-term sus tainability impacts occur when smart manufacturing solutions are scaled industry wide and environmental sustainability is quantitively measured, monitored, and driven in individual factories and across supply chains and ecosystems. This entails marrying the direct impacts within the four walls of the manufacturing plants with supply chain impacts and with sector-wide impacts.
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From page 89... ...
would need to be included in life-cycle assessments of the participating smart manufacturing industries. Finding: The economic benefits and sustainability impacts occur when smart manufacturing solutions are scaled industry-wide and environmental sustain ability is quantitively measured, monitored, and driven in individual factories and across associated supply chains networks.
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From page 90... ...
2. Smart manufacturing defines the advanced sensor, controls, platform, and modeling technologies needed to control and manage manufacturing opera tions involved in the strategies above within factories and across end-to-end enterprises, supply chains, and ecosystems (raw and recycled material to consumed product)
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From page 91... ...
These materials can be used in product design, packaging, and transportation, among other areas. Additionally, AI is beginning to be used to assist product life-cycle management to help with decision-making.12 Monitoring and measuring carbon emissions throughout the product life cycle can help manufacturers identify areas of inefficiency and implement measures to reduce GHG emissions.
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From page 92... ...
Finding: Smart manufacturing requires a framework that allows for the quan tification of the broader environmental and social sustainability benefits of implementing secure smart manufacturing. This framework must define the advanced sensors, controls, platforms for data harmonization, and modeling needed to control and manage the energy and emissions created by manufac turing operations within factories and across end-to-end enterprises, supply chains, and ecosystems.
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From page 93... ...
Key Recommendation: Funded by the Department of Energy, in consulta tion with other relevant federal departments and agencies, a framework should be developed to quantify the broader sustainability benefits of im plementing secure smart manufacturing (considering three pillars: environ ment, economy, and society) as well as industry-wide sustainability metrics.
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From page 94... ...
It is understood that original equipment manufacturers (OEMs) with legacy equipment serving long-standing, active production lines have little incentive to stop active production to retrofit and add sensors or automation to enable smart manufacturing.
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From page 95... ...
, environmental sustainability (e.g., electri fication, alternative energy sources) , and U.S.-based manufacturing and jobs.
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From page 96... ...
Many SMMs have concerns about implement ing smart manufacturing because they are not aware of training resources and best practices; however, they are keenly aware of the dearth of available resources for capital improvements and are already facing lost capabilities resulting from the offshoring of manufacturing by the United States over the past decade. Continu ous investment by SMMs to keep up with the multitude of IT and data analytics improvements and different platforms that are continuously becoming available requires significant financial resources.19 Case studies have shown that when large companies assist with costs and pro cesses in developing their suppliers, success can be achieved.
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From page 97... ...
Conclusion: Typical legacy equipment does not have the right sensors and con trollers to implement smart manufacturing concepts. Upgrading legacy equipment is challenging due to capital requirements.
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From page 98... ...
Participating consortia and supply chains would need to implement collaborative solutions in multiple sites, and return contextualized data and proven ways to orchestrate and use data and models into wider industry use. In doing so, industry business models about intellectual property, trade secrets, data, and know-how that are preventing the industry from taking advantage of data sharing can be addressed.
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From page 99... ...
Conclusion: Deploying smart manufacturing practices in a scalable manner would require solutions at multiple levels across multiple organizations. Repre sentative focus areas could include the following: • Plantwide optimization as well as agile, demand-driven supply chains and sustainable production to form smart factories, smart supply chains, and smart ecosystems.
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From page 100... ...
It is particularly important to enable how supply chains will or should form in the future by being market-driven for global market share with better end-to-end productivity, precision, and performance; onshoring; intersecting supply chains; new technologies; and new kinds of supply chains. Also, combining factory market drivers with those that are industry-wide is important and requires avoiding rec ommendations that select "how" or "what" but still encourage old supply chains to change and new supply chains to form.
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From page 101... ...
Scaled effects occur when measuring, monitoring, and driving sustainability not only in individual factories but also across supply chains and ecosystems. Smart manufacturing is extensively horizontal, cross-industry, crosscutting, and disruptive in business, workforce, and technical changes that involve factory, industry, and government strategies.
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From page 102... ...
• Open data industry and academic coalitions to build application algorithms as an SMM industry strategy. • Factory and industry incentives for resilience, national security, and global sustainability.
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From page 103... ...
Recommendation: Industry associations and consortia should fund pilot programs that create case studies for data sharing and intellectual property retention and protection to be used by small and medium-sized enterprises with nascent efforts in smart manufacturing. Recommendation: Agencies, such as the Department of Energy, with interests in smart manufacturing should support new programs to provide funding and resources for small-to-medium manufacturers to update and secure their current operations and equipment by deploying smart manu facturing technologies.
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From page 104... ...
developing shared smart manufacturing facilities at universities, national laboratories, and manufacturing institutes; and (2) creating new outreach programs at the Manufacturing Extension Partnership to provide access to smart manufacturing expertise.
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