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Scaling Intelligent Manufacturing: 10 Factories Leading the Way in Innovation

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The World Economic Forum announces the addition of 10 new factories to its global Lighthouse Network, a community of manufacturers that are showing leadership in applying Fourth Industrial Revolution technologies to drive financial and operational impact.

The factories join a network of 16 existing lighthouses across multiple geographies and industries. They serve as beacons to guide others to overcome challenges in upgrading systems and applying cutting-edge technologies such as artificial intelligence, big data analytics and 3D printing. The factories were selected based on their success in integrating these technologies to increase efficiency and drive innovation.

“The global Lighthouse Network offers an unrivalled opportunity not only to highlight the transformational efforts of the world’s most advanced manufacturers but also, more importantly, to create a shared learning journey that will help manufacturers around the world, across value chains and of all sizes to access and capitalize on the positive potential of the Fourth Industrial Revolution,” said Francisco Betti, Head of Advanced Manufacturing Industry, World Economic Forum.

The new lighthouses are:

Arçelik (Ulmi, Romania): This greenfield factory is a product of the Arçelik use-case laboratory, where it was designed twice as fast as previous-generation factories. Since coming into existence, automation of low-value tasks has reduced operational costs by 11%.

Ford Otosan (Kocaeli, Turkey): This site leverages digital manufacturing and advanced automation to move beyond lean, increasing its output by 6% and employee engagement by 45% without additional capital expenditure investment.

Nokia (Oulu, Finland): Nokia’s fully digitalized 5G factory focuses on bringing together design and production to introduce new products. Implementing a range of 4IR solutions, connected by a private wireless network, this site improved productivity by 30%, and now brings products to market 50% faster than before.

Petrosea (Tabang, Indonesia): Challenged by its remote location, this mining service provider deployed multiple Fourth Industrial Revolution use cases (e.g. optimized truck dispatch, real-time monitoring, drone surveys) that transformed the mine from a loss-making entity into a profitable one in just six months.

Posco (Pohang, Republic of Korea): This plant leverages artificial intelligence to drive productivity and quality improvements in the steel industry. It is building its own smart-factory platform through a collaboration with a local ecosystem of academia, SMEs and start-ups.

Groupe Renault (Cléon, France): This Renault site uses a wide range of Fourth Industrial Revolution technologies (e.g. cobots, virtual reality) to support operators, eliminate waste, reduce energy consumption and automate repetitive tasks.

SAIC Maxus (Nanjing, China): A challenging market environment drove this site to implement a new model for mass customization. Digitalizing the value chain end-to-end, from customers to suppliers, through an integrated digital thread resulted in improved sales and reduced costs.

Schneider Electric (Batam, Indonesia): One of Schneider Electric’s nine smart factories, this location developed a full spectrum of Fourth Industrial Revolution solutions (e.g., IIoT platform) that were then shared with the wider Schneider Electric community, including customers and partners, thereby improving the operations of the entire ecosystem.

Tata Steel (Kalinganagar, India): This greenfield steel plant is helping to set a new standard for the speed at which a factory can achieve full capacity from complete nascency. It also improved time-to-market by 50% thanks to significant investments in digital and analytics solutions, as well as capability-building to develop the digital skills of a relatively junior and inexperienced team.

Zymergen (Emeryville, USA): A digital native, this bio-engineering site is using robotics and artificial intelligence on processes that have traditionally been highly manual, resulting in the doubling of its innovation rate.

“The 10 new lighthouses confirm that frontrunners in the Fourth Industrial Revolution draw a competitive advantage from either innovating their production system or by innovating their entire value chains and offering new products and services that were not possible before,” said Enno de Boer, Partner and Head of McKinsey & Company’s Global Manufacturing Practice, which collaborated with the Forum on the project. “For example, Zymergen brought robotics and AI to their bio-engineering labs, doubling innovation rates and allowing product innovations that were previously unthinkable.”

One of the key elements of the Lighthouse Network is its commitment to discovering and elevating solutions that can be scaled up in cost-effective ways across companies and industries.

“What all frontrunners have in common is that they work hard to find ways to scale,” Enno de Boer said. “For example, Tata not only cracked the code on how to bring predictive maintenance to 50,000 different machines, but they also mastered the challenge of rolling out best practices to a site with a relatively inexperienced site team, supporting them with world-class data insights. Not imaginable before, the site is a benchmark in their network for productivity and time-to-market.”

The lighthouses have also agreed to share their knowledge with other manufacturing businesses, helping them successfully adopt the technologies of the future.

“The World Economic Forum’s Fourth Industrial Revolution lighthouse programme promotes collaboration, benchmarking and new ideas for the digital transformation of industries in a practical way that generates faster adoption of digital technologies and increases the efficiency of manufacturing,” said Peter Herweck, Executive Vice-President, Industrial Automation, Schneider Electric. “Our smart factory in Batam, Indonesia, has benefited enormously from the Forum programme and we are delighted to continue to be a part of this programme and share our learning and solutions with the wider industrial ecosystem.”

“Our Oulu 5G facility is an example for our enterprise customers to realize the vision of industrial automation in the era of Industry 4.0,” said Kathrin Buvac, President of Nokia Enterprise and Chief Strategy Officer.“Leveraging our own technology, including private wireless networks, edge cloud and IoT analytics, resulted in significant productivity gains of 30% for our factory as of today already.”

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EU’s satellite navigation system Galileo reaches 1 billion smartphone users

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Tomorrow, Galileo, Europe’s satellite navigation system, will reach 1 billion smartphone users worldwide. This milestone coincides with the 15th anniversary of the European Global Navigation Satellite Systems Agency (GSA), the Commission’s key partner in operating Galileo.

Ahead of a special event at the GSA’s headquarters in Prague, Elżbieta Bieńkowska, Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, said: “Galileo is now providing high quality timing and navigation services to 1 billion smartphone users globally. This has been made possible by a truly European effort to build the most accurate navigation system in the world, with the support and dedication of the GSA. I am confident that our space industry will continue to thrive with more work, ideas and investment under the new EU Space Programme.”

Since December 2016, Galileo provides so-called “initial services” which already improve everyday life for citizens and businesses with accurate positioning, navigation and timing signals.

Today 95% of companies that produce smartphone chips for satellite navigation make chips that enable Galileo. The ‘1 billion users’ milestone is based on the number of smartphones using Galileo sold across the world. The actual number of Galileo users is larger. In Europe, all new car models approved for the market are equipped with the eCall system, which uses Galileo to communicate the vehicle’s location to emergency services. Since this year, Galileo is integrated  in  the digital  tachographs  of  lorries – a speed and distance recording device – to  ensure  the  respect of driving time rules and improve road safety.

Galileo has also been providing crucial Search and Rescue (SAR) Service, reducing the time it takes to detect a person equipped with adistress beacon to less than 10 minutes at sea, in mountains or deserts. With Galileo, the accuracy of localisation has improved from 10 km to less than 2 km.In the future, the system will also confirm to the person that help is on the way.

Finally, Galileo supports public authorities with its Public Regulated Service, for sensitive security use. It offers a robust and fully encrypted service for government users during national emergencies or crisis, such as terrorist attacks, to ensure continuity of services.

The European space industry, the second largest in value in the world, is strong and competitive. To help maintain and further enhance the EU’s leadership in space, the Commission has proposed a €16 billion Space Programme for the next long-term EU budget 2021-2027.

BACKGROUND

Galileo is the EU’s own global satellite navigation system. It is a civilian system under civilian control, which provides accurate positioning and timing information. Galileo aims to ensure Europe’s independence from other satellite navigation systems and its strategic autonomy in satellite navigation. Europe’s autonomy in this sector will boost the European job market, help the EU step up its role as a security and defence provider, and support emerging technologies such as Artificial Intelligence, drones, automated mobility and the Internet of the Things.

Galileo provides ‘initial services’ since December 2016. During this initial ‘pilot’ phase preceding the ‘full operational services’ phase, Galileo signals are used in combination with other satellite navigation systems. In the full operational phase, users will be able to use Galileo signals independently of other satellite navigation systems.  

Other EU space activities include Copernicus (free and open Earth observation data of land, atmosphere, sea, climate change and for emergency management and security), EGNOS (regional satellite navigation system) and Space Surveillance and Tracking (SST). 

The new Space Programme will bring all existing and new EU space activities under the umbrella of a single programme. It will maintain existing infrastructure and services and introduce a number of new features to foster a strong and innovative space industry and preserve the EU’s autonomous, reliable and cost-effective access to space.

The new programme also introduces a unified and simplified system of governance. The EU will ensure that the increase in financial investment is supported by efficient decision-making so that all EU space activities are rolled out on time and on budget. The Commission will continue to be responsible for managing the overall programme. The intergovernmental European Space Agency (ESA), given its unmatched expertise, will remain a major partner in the deployment of the system and in the technical support to the operational tasks of the EU space programme. The GSA, to be renamed the ‘EU Agency for the Space Programme’, will increasingly support the operation and market uptake of EU space activities and play an increased role in ensuring the security of all the components of the programme.

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More Drones in the Sky and More Benefits on the Ground

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The World Bank, World Economic Forum and the Government of Rwanda with support from UK’s Department for International Development (DFID) have come together to announce the African Drone Forum: Symposium, Expo and Flying Competitions, an international drone and unmanned traffic management event, which will be hosted in Rwanda in February 2020. The event will include a regulatory summit that brings together leading figures in drone technology from the private sector and airspace regulators to highlight and discuss what is possible for the future of drones in Africa.

Africa is already a leader in the drone revolution with the first national scale deployments of drone delivery in countries such as Rwanda and Ghana and smaller scale tests in Malawi and Zambia. Africa also faces unique challenges that drones can help address, such as limited ground infrastructure, reflecting the fact that just one-third of Africans live within 2km of an all-weather road, and that there is a more than $50 billion investment gap in infrastructure throughout the continent. The African Union highlighted drones as a priority technology for the continent in 2018. Many African countries, however, don’t allow for robust drone use, in some cases barring most civilian groups’ access to airspace.

“Increasing drone use in Africa does not only bring great benefits to business, agriculture and the health sector but quite literally save lives by taking deliveries off the roads and into the sky,” said Timothy Reuter, Head of Aerospace and Drones at the World Economic Forum, “To unleash this potential, new policies need to be put in place that safely open the skies to drones as most African countries do not yet permit the most beneficial applications.”

“The African Drone Forum will open and test the minds of engineers, regulators, entrepreneurs and investors. The flying competitions will promote new industries and services, harness data for delivery and resilience, create activity hubs and opportunities to leapfrog technologies, and develop skill sets for 21st century jobs in the region and beyond,” said Riccardo Puliti, Global Director, Energy and Extractive Industries and Regional Director, Africa, Infrastructure at the World Bank. “This will promote the skies above Africa as a valuable resource and technologies to help build sustainable infrastructure.”

Rwanda’s groundbreaking use of medical delivery drones supported by an open regulatory approach, developed with support from the World Economic Forum, has shown exactly what a forward-thinking government can accomplish. Rwanda was selected as host for the event because it is currently one of the only countries that has policies in place that allow for the types of applications being demonstrated in the competition. By hosting the African Drone Forum in Rwanda in February 2020, the World Bank, World Economic Forum and the Government of Rwanda hope to highlight the benefits Rwanda has created by expanding drone use in the country while encouraging other countries in the region to take a similar approach.

“We are excited to host the Africa Drone Forum, a platform that will bring together policy makers, drones enthusiasts, experts and industry leaders to explore potential use case applications for UAV technology on the African continent.” says Honourable Paula Ingabire, Minister of ICT and Innovation, Rwanda. “It’s an opportunity for Rwanda to share our experience in pioneering the use of Beyond Visual Line Of Sight (BVLOS) UAV operations, and our development of drone regulations.”

In this year’s flying competitions, global experts will invite companies that are leading the way in drone technology to compete. During the challenge, the World Economic Forum will curate discussions with regulators throughout Africa on how to create policies that enable the safe deployment of drone technologies in their own countries.

This year’s competitions are also supported by the Danish International Development Agency (DANIDA), the Republic of Korea and a number of development partners.

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ADB Launches New Partnerships to Support Innovative Solutions

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The Asian Development Bank (ADB) will partner with three winning teams from a hackathon hosted by ADB in partnership with the Asian Institute of Management (AIM) from 31 August to 2 September.

ADB and AIM held the competition as part of Digital Week 2019 taking place from 2 to 5 September. More than 700 youth and startups from around the world presented innovative solutions to three challenges. ADB and AIM defined the three challenges based on current organizational and development needs. 

The winning teams are “Eskwelabs” from the Philippines and “Gnowbe” from Singapore for the “Building the Digital Skills of Employees” category; “FlexM” from Singapore for the “Developing Digital Payment Solutions” category; and “Agua Wireless Systems” from India for the “Future Proofing for the Water Crisis” category. The solutions leveraged emerging technologies such as the internet of things, artificial intelligence, and digital payments.  

ADB has also entered into non-exclusive cooperation arrangements with Microsoft Operations Pte Ltd. and Oracle Corporation Singapore Pte Ltd. to collaborate on the adoption and use of emerging technologies in ADB’s work. Under the cooperation arrangements, ADB and the companies will exchange information on emerging technologies, train people to apply these technologies, and organize joint events and meetings. Both companies will also provide advisory and knowledge support for ADB’s digital transformation.  

“ADB recognizes that partnerships with top IT companies as well as small startups will help support our digital innovation program through knowledge exchange, capacity building, and co-creation of digital solutions designed for ADB’s business needs,” said ADB Vice-President for Administration and Corporate Management Ms. Deborah Stokes.

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