For any business, the process of implementing any new technology can often seem like a costly and time-consuming task. Industry 4.0 and machine monitoring is no exception.
Emerging technologies and existing technological advancements are paving the way for a revolution in the manufacturing industry; but how much does being a part of this revolution cost? Well, that depends on the technology.
Why Bolt-on Solutions Are Less Expensive
Unlike robotics, AI and fully automated factories, machine monitoring is relatively inexpensive. Instead of the intensive and often costly installation of AI and robotics, machine monitoring can be installed with minimal cost and disruption to machine operations. Rather than having to alter or rebuild existing infrastructures, bolt-on monitoring solutions like our ShiftWorx Platform are bolt-on, making them extremely simple to incorporate on the shop-floor.
By installing our hardware without disrupting machine production, we can provide a cost-efficient solution that saves you money and never contributes to machine downtime. By maintaining a low overhead cost, our solutions also experience impressively quick ROI. In fact, one of our clients managed to achieve an additional +160 hours of machine output per month—both saving and making them a lot more money in the process.
When manufacturers are asked what their plant utilization rate is, most plant managers give an answer anywhere between 65-75%. In most cases after machine monitoring is implemented, the actual percentage is revealed to be closer to 25-32%. That massive variance illustrates how quickly machine monitoring solutions can help manufacturers save on production costs, helping payoff the system in days rather than months and years. Once switched on, machine monitoring solutions instantly start paying themselves off.
Overall, transitioning to IIoT doesn’t have to break the bank. By piggy-backing off existing infrastructures as opposed to rebuilding them, machine monitoring can be an attainable and inexpensive means of innovating your production process and enhancing your plant’s productivity.
Get a free quote today and find out for yourself how attainable IIoT can be for your organization.
On a recent trip to Mexico, I found myself assessing the new United States Mexico Canada Agreement (USCMA), and how it will affect the manufacturing industry—particularly automotive. I wanted to illustrate what changes USMCA brings to the table by examining the agreement objectively and independent of political notions about the leaders or the parties it belongs to.
Replacing the North American Free Trade Agreement (NAFTA) which was established in 1994, USMCA’s two biggest changes are to the country of origin rules and labour provisions. Under USMCA, 75% of automobile parts must be manufactured in Mexico, the U.S., or Canada to qualify for zero tariffs – a 12.5% increase from NAFTA. Further, 40-45% of the parts must be made by employees earning at least $16/hour by 2023.
Over the past 100 or so years, the auto industry has created and sustained a healthy middle class in many countries. In Canada and the US for example, the average auto factory employee’s annual income is roughly 2x the cost of the product they produce – a 2:1 ratio. To this point, this has not been the case in Mexico, but the new USMCA is a move in the right direction.
As Asian and European automakers are scrambling to open plants in North America, the higher costs of manufacturing in Canada due to the new carbon tax and the already-high cost of energy could pose significant challenges to opening these plants in Canada.
It is apparent that the Queretaro region of Mexico has been rewarded with significant investments from major automobile producers from every part of the world due in part to its attractive economic conditions and consistently responsible government administrations over recent decades. Depending on the region, the impacts of USMCA may differ. For Canada, the best outcome may be just to maintain our current manufacturing industry.
From a global environment perspective however, I believe the USMCA is a net positive. Keeping plants open in the U.S. and Canada is better for the global environment, as environmental regulations are tougher and more enforceable in those countries. Improving wages, worker’s rights and protecting human rights is also net positive globally.
As investments continue to flow into the manufacturing sector because of the USMCA, we can expect a greater push for innovation and technological adoption. With manufacturers witnessing the powerful benefits made possible through IIoT, more and more companies will be looking to make the transition to industry 4.0. Though some will approach the transition with a level of uncertainty, we at FreePoint are optimistic and ready to help organizations navigate the changing industrial landscape.
Reach out to us today if you are interested in learning more about Industry 4.0, or you are ready to make the transition. It can start today, in the plants, with the equipment and the people you already have.
It is with great pride that we announce FreePoint Technologies has officially saved our clients more than forty million dollars (See the live counter). Providing our clients with better insight into their production processes has enabled them to increase efficiency as well as profitability, resulting in immense cost savings. To commemorate such a massive milestone, we wanted to look back on what got us to this point.
We started FreePoint with a simple idea: to connect people to machines, regardless of age—in order to help manufacturers prosper. In this pursuit, we have pioneered a method of non-invasively installing equipment that gives manufacturers more control over their process. By helping better connect people to their machines, we have done more than just save our clients money. In addition, we have also helped them recover more than eleven million minutes of valuable production time.
We have always been about building connections— between people, as well as machines. As we surpass forty million dollars saved, we want to thank everybody who has connected with us along the way. We could not have reached this milestone without your continued support and commitment.
Fifty million, here we come!
FreePoint is excited to be taking part in this year’s Best Manufacturing Apps Conference (BMAC). Hosted by Microsoft Canada partner, VOX ISM, BMAC unites Canadian manufacturers and industry experts, educating them on the latest in digital transformation technologies.
In addition, our President, Paul Hogendoorn is taking part in a panel of technology suppliers addressing industry leaders and manufacturing professionals. As always, FreePoint is excited to be displaying our non-invasive machine monitoring software and hardware solutions.
According to Vox ISM, there are 3 main reasons you should be attending the 2019 BMAC conference:
- Interact with BMAC exhibitors showcasing their latest technologies.
- The BMAC is recognized as the best platform for Canadian Manufacturers to interactions with the latest trends in the manufacturing industry.
- Experience and envision the business relationships being made and developed with prospective exhibitors of your interest.
If you would like to attend this years conference, you can register here.
Using ShiftWorx, Intellacor brings Industry 4.0 to existing factory equipment across the United States
Manufacturers and industrialists in every sector are on the threshold of significant change. Industry 4.0 is the newest industrial revolution. It represents the use of Industrial Internet of Things (IIoT), automation, sensor technology, and other innovative solutions to streamline the production and distribution process.
IIoT solutions not only monitor but also automate many of the complex processes involved in manufacturing. While systems have been created in the past that track production progress, IIoT technology focuses on providing in-depth details to managers and staff. Here are seven compelling ways IIoT is transforming the industry today.
The business of manufacturing is rapidly evolving. Being coined the Fourth Industrial Revolution, or Industry 4.0, it’s all about retrieving big data that couldn’t be accessed before. By bringing the Industrial Internet of Things (IIoT) into factories across the globe manufacturers can streamline production and push products to market faster. Are you ready to gain a competitive edge?
The political landscape of 2017 has been a portrait of peaks and troughs. Brexit in the UK presents potential possibilities for trade deals with the US and beyond, and (love him or hate him) President Trump’s tempestuous first year in office was preceded with promises to rebuild North America’s industrial sector. Whether his ambitious promises yield fruit is yet to be seen, and it’s rather too easy to get lost in the crowd hysteria that big change conjures. However, significant transformation brings significant opportunities, and in the manufacturing sector particularly, we’ve seen increased adoption of digital technologies, harboring a new dawn in manufacturing processes.
In the same way that the Industrial Revolution had a major impact on manufacturing and society, digital transformation within manufacturing houses is set to change the way we produce and cater to our customers. Not since Henry Ford developed mass-production manufacturing have we seen changes like those that 2017 has exposed us to; but “digital” represents a move away from mass-production, toward a leaner, less wasteful, bespoke, and customized production approach.
However, only 5% of manufacturing executives are satisfied with their existing digital strategies, or even recognize the importance of this digital revolution. Digitization helps to overcome the “Seven Wastes” of lean manufacturing by making more affordable the bespoke production approach; as opposed to over-producing, under-engaging employees and keeping customers waiting while we produce against demand.
Internet of Things (IoT)
At the heart of the change in manufacturing processes in 2017 was the implementation of IoT processes, providing live reporting of incremental production data, defect and damage.
By effectively connecting our analog (and digital) machines to monitoring networks, companies have found an essential, competitive edge in consistency, efficiency, employee engagement, and instant visualization of project progress; yielding benefits to the manufacturing process and to the customer, as the price of wastage drops as a result of digital monitoring.
Industry 4.0 and mass customization
Scary as it sounds, Industry 4.0 presents a reverie of the interconnected factory, and this has developed exponentially in 2017. Machines are online and capable of making decisions.
Now, don’t run for the hills, here – this is good! Industry 4.0 presents a hybrid approach of actual and virtual content-producing warehouses, freeing up workforce to focus on mass customization which can directly react to consumer demand.
IoT and Industry 4.0 are developing the way we interact with our customers post-sale, by providing immediate and consistent support online.
AI is nothing new – IBM’s supercomputer defeated the world’s best chess player over ten years ago, after all. Advanced algorithms are collecting data on the factory floor, performing skilled labor, and predicting consumer behavior, so that we, the manufacturer, can better cater to their needs. Smart factories can increase production capacity by 20% by gleaning live information from integrated IT systems. And FreePoint Technologies can help!
Quality becomes more consistent as machine learning determines the factors affecting service and quality of product.
Manufacturing continues to be an essential contributor to Canada’s GDP; providing 1.7 million quality, well-paid jobs, and contributing over 10% of Canada’s overall GDP (around $174 billion).
The manufacturing industry, therefore, has massive potential for strengthening Canada’s economic future. We have the skills, innovation and exports of more that $354 billion each year, which represents 68% of Canada’s entire merchandise exports. Competition is healthy and success breeds success: where our industry grows, we attract new investment.
Growth is dependent upon continued innovation, and the more we adopt new technologies, the more our healthy manufacturing sector continues to grow.