The world is on a Industry 4.0 race to embrace the next industrial revolution. It is turning into a battle of shape up or ship out for economies to remain competitive.
Industry 4.0 and Malaysia: Where we stand?
The World Economy Forum categorized countries into four archetypes to examine their future outlook of productions.
The countries are examined based on:
Structure of production: Influenced by economic complexity and scale of production that impacts how a country can achieve economic objectives
Drivers of production: Mixture of factors that affects the ability of the country to harness potency of technologies and opportunities. They comprised of Technology & Innovation, Human Capital, Global Trade & Investment, Institutional Framework, Sustainable Resources, and Demand Environment.
Malaysia is in the Top 25 Leading countries. In contrast, Singapore was ranked higher with better scores in structure and drivers of production at 7.28 and 7.96 respectively.
To put things into perspective, Japan and United States attained highest scores in structure and drivers of production at 8.99 and 8.16 respectively.
Malaysia scored 6.81 and 6.51 in structure and drivers of production which are on the lower spectrum of readiness.
Accelerating Industry 4.0 in Malaysia
It’s no coincidence that Malaysia launched national policy on Industry 4.0 to transform the sector digitally. Manufacturing sector is cited to contributed to RM1.4 trillion of Malaysia’s GDP last year.
At present, Malaysia’s manufacturing sector is between Industry 2.0 (
mass production) and Industry 3.0 (automation). It is estimated that only 15-20% Malaysian companies are migrating to Industry 4.0.
Why Migrate To Industry 4.0?
Lower cost of business
A study by Accenture found that implementation of Industry 4.0 technologies such as big data and machine learning can help a US company lower the cost of business up to USD85,000.
Cost of labour is also reduced thanks to smart automation technology. A research supports this by projecting savings up to USD15 trillion worldwide by 2030.
New job opportunities
In a separate study by World Economic Forum, it is estimated more job opportunities with emerging sectors like blockchain and AI. Other non-tech vacancies in sales, marketing, and others will also increase.
Reduction of foreign workers
It is estimated that there is more than 2 million foreign workers in Malaysia. Industry 4.0 in full swing will reduce these numbers drastically as employers shift to newer technologies. The AI could take over routine jobs in the supply chain and remove manual labour. Rippling effect upon implementation of better technology in Industry 4.0 will likely extend to all layers of jobs in a corporation.
Industry 4.0 Game Changers
Accelerating Industry 4.0 requires more than a national policy. Migration from existing mechanisms to newer means of production cannot take place without these Big Nine.
Big data: In-depth collection and analysis of data in multiple points of business operations – from production to customer relationship management is further simplified. Business owners can make crucial decisions backed by evidence.
Simulation: Unexpected machines downtime can be reduced with machine testing in a virtual model. Business owners may mimic physical real world in a virtual reality to test elements such as human and machine. This will help to avoid unexpected circumstances.
Horizontal and vertical system integration: Universal data integration in an ideal Industrial 4.0 environment would permit data to be optimized for a true value chain.
Internet of Things: Field devices are equipped to communicate with each other with more centralized controllers. Real-time decisions can be made and determined in an instance.
Cybersecurity: Prevention of cyberattacks is instrumental to avoid PR disaster and financial loss. Enforcement of good IT security protocols safeguard businesses and keep everything in order.
Cloud: Cloud storage enables data sharing beyond physical boundaries. Reaction time is greatly reduced.
Addictive manufacturing: Construction advantages are to be expected in producing products with better quality and marketability.
Augmented reality: Augmented reality allow virtual information to be overlaid in real world. It allows workers to conceptualize how certain tasks can be completed for greater productivity.
Make A Smooth Migration To Industry 4.0
|Industry 4.0: Transforming Your Factory into Smart Factory||Private|