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Sustainability at Scale: 18 New Factories of the Future Drive Impact in the 4IR

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The World Economic Forumwelcomes 18 new factories to its Global Lighthouse Network of advanced manufacturers that are showing leadership in applying the technologies of the Fourth Industrial Revolution to drive operational and environmental impact.

Now with 44 factories, the network, established in 2018, serves as a platform to develop, replicate and scale up innovations, creating opportunities for cross-company learning and collaboration and for setting new benchmarks for the global manufacturing community. The goal of this community is to share and learn from best practices, support new partnerships and help other manufacturers deploy technology, adopt sustainable practices and transform their workforces. A new white paper, “Global Lighthouse Network: Insights from the Forefront of the Fourth Industrial Revolution,” published today, outlines some of the main findings and impacts.

The 18 new factories bring increased diversity to the network, with new countries, including Brazil, Japan and Singapore, as well as new industries, including semiconductors and agricultural equipment. Almost one-half of the new lighthouses are end-to-end factories, driving value outside the four walls of the factory to effect change throughout their value chains.

The new lighthouses are:

Asia

Baoshan Iron & Steel (Shanghai, China): This 40-year-old factory adopted digitization early. Its extensive implementation of artificial intelligence and advanced analytics has allowed it to maintain its industrial competitiveness in the digital era, creating value of $50 million.

Foton Cummins (Beijing, China): Foton Cummins has self-deployed internet of things and artificial intelligence throughout its end-to-end product life cycle in its design, production and after service. By doing so, it has improved product quality and customer satisfaction by 40%.

GE Healthcare (Hino, Japan): This GE factory, with more than 30 years’ experience of lean manufacturing, used Fourth Industrial Revolution technologies to transform into digital lean manufacturing. This has resulted in achieving the next level of performance, for example, cutting costs by 30% and reducing cycle times by 46%.

Haier (Shenyang, China): The Haier Shenyang refrigerator factory is an example of a user-centric mass customization model. Achieved by deploying a scalable digital platform that connects end-to-end with suppliers and users, it has improved direct labour productivity by 28%.

Hitachi (Hitachi, Japan): By leveraging a range of industrial internet of things technologies and data analytics in engineering, production and maintenance operations, Hitachi Omika Works has reduced the lead time of core products by 50% without undermining quality.

Infineon (Singapore): Enabled by a digital backbone and people development, Infineon has used data, advanced analytics and automation in its manufacturing plant and supply chain network to reduce direct labour costs by 30% and improve capital efficiency by 15%.

Johnson & Johnson DePuy Synthes (Suzhou, China): This site has scaled up standardized digital solutions developed in other Johnson & Johnson sites to drive performance improvements, including increasing productivity by 15%.

Micron (Singapore): This semiconductor fabrication facility has integrated big data infrastructure and industrial internet of things to implement artificial intelligence and data science solutions, raising product quality standards and doubling the speed at which new products are ramped.

Procter & Gamble (Taicang, China): This young site leveraged Fourth Industrial Revolution technologies to build the first lights-off operation in P&G Asia and connect its E2E supply chain. It increased productivity by 2.5x, boosted its production agility enabling e-commerce growth and improved employee satisfaction.

Weichai (Weifang, China): Weichai digitally transformed its entire end-to-end value chain to accurately understand customer needs and reduce costs. Powered by artificial intelligence and internet of vehicles, it shortened its R&D cycle by 20% and improved operating costs by 35%.

Europe

AGCO (Marktoberdorf, Germany): By combining digital solutions with intelligent line design, AGCO/Fendt can manufacture nine series of tractors – ranging from 72 to 500 horsepower – on a single assembly line with a batch size of one. This has increased productivity by 24% and reduced cycle time by 60%.

GSK (Ware, UK): This pharmaceutical site has applied Fourth Industrial Revolution technologies throughout its manufacturing operation, exploiting advanced analytics and neural networks to use existing datasets. It has improved line speed by 21%, reduced downtime and increased yield, delivering an overall equipment effectiveness improvement of 10%.

Henkel (Düsseldorf, Germany): Henkel has developed a cloud-based data platform that connects more than 30 sites and more than 10 distribution centres in real time. This helps meet growing customer and consumer expectations on service and sustainability, while achieving double-digit cost and inventory reductions.

Latin America

Groupe Renault (Curitiba, Brazil): Renault Curitiba approached Fourth Industrial Revolution technologies with a focus on improving employee accountability and E2E connectivity, engaging its workforce and developing a connected ecosystem throughout value-chain players including dealers, customers and workers. Results include improving its productivity by 18%, without major capital deployment.

MODEC (Rio de Janeiro, Brazil): Leveraging advanced analytics for predictive maintenance, a digital twin of its process plant, and a proprietary data platform to accelerate development and enable the exponential scale-up of new algorithms across oil production vessels, this offshore facility has reduced downtime by 65%.

Middle East

Petkim (Izmir, Turkey): This 35-year-old petrochemical facility embarked on a digital journey to drive value creation. Self-developed artificial intelligence algorithms optimize process and product pricing by analysing billions of production scenarios, resulting in an earnings before interest and taxes improvement of more than 20%.

Unilever (Dubai, UAE): In a drive to improve cost competitiveness, a local entrepreneurial team established a factory data lake and developed and deployed at scale Fourth Industrial Revolution use cases. With limited investment and in a short period of time it achieved a cost reduction of more than 25%.

North America

Johnson & Johnson Vision Care (Jacksonville, USA): Vision Care has digitally connected its value chain end-to-end from suppliers to consumers, as well as implementing reconfigurable manufacturing, to achieve double-digit cost reduction and sales growth.

Shared Learning Journey

“Not only does the Global Lighthouse Network celebrate leaders and best practices in effective technological deployment, but more important, it also creates a shared learning journey for the industry to accelerate the transition to the future of manufacturing,” said Francisco Betti, Head of Shaping the Future of Advanced Manufacturing and Production, World Economic Forum. “This transition must focus on sustainability and efforts dedicated to reskilling and empowering people.”

The Global Lighthouse Network is managed in collaboration with McKinsey & Company.

“The 44 lighthouses are trailblazers in the Fourth Industrial Revolution. Manufacturing is often the starting point for innovating a new, company-wide operating system powered by the latest technology to achieve new levels of sustainability, agility, speed-to-market, and productivity. The value doesn’t stop at the factory door: instead, lighthouses find impact across the entire end-to-end value chain, from suppliers through to customers. This year, we believe the Global Lighthouse Network has found the secret sauce to overcome pilot purgatory and generate impact at scale. Moreover, by now the frontrunners have two to three years’ head start compared to their peers. That should set off alarm bells for all manufacturers that are still busy trying to prove technology’s value instead of using technology to change the way they work,” said Enno de Boer, Partner and Head of McKinsey & Company’s Global Manufacturing Practice.

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First-of-Its-Kind Blueprint for Data Policy Adopted by City of Helsinki

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The World Economic Forum today released Empowered Data Societies: A Human-centric Approach to Data Relationships. The framework put forth in the white paper ensures that data is used in responsible and innovative ways to create progress while respecting, valuing and empowering people and communities.

As part of a year-long partnership with the City of Helsinki, the World Economic Forum convened a global community of technologists, anthropologists and policy and data experts to develop a new way to create data policy oriented around the values, needs and expectations of people.

By leading with the interests of those generating data or most impacted by resulting insights, this approach mitigates the trade-offs between innovation and privacy.

The Forum worked with a dedicated team of data practitioners and policy-makers with the City of Helsinki to apply this new methodology to develop a dedicated anonymization pipeline for complex personal data that will allow for maximal data utilisation anchored in respect for individuals and their privacy. New pathways, processes and tools were also created to document a best practice blueprint for human-centric proactive services, which Helsinki will open-source for future expanded use and improvement.

“Throughout this year-long partnership we were motivated by the principle that human-centricity is neither a ‘nice to have’ nor a ‘deluxe’ approach to data. Human-centricity can and should be the foundation upon which to build empowered data societies. With the release of this paper, we aim to share frameworks, insights and best practices so policy-makers around the world can adopt and build systems that use data in responsible and innovative ways to create progress that legitimately serves people and communities,” said Sheila Warren, Deputy Head of the Centre for the Fourth Industrial Revolution Network, World Economic Forum.

The City of Helsinki created several tools to enable efficient utilization of extremely sensitive data. The main principle behind the blueprint is that the storage, anonymization and processing of data are separated and that different individuals perform each task.

Forging a way to create entirely new data analytics capabilities for Helsinki has resulted in a new technical environment for treating sensitive personal data with the highest ethical, data protection and cybersecurity standards. This environment will be used as the city continues accelerating its use of data to provide more personalized and timely services for its residents and visitors.

“Helsinki’s commitment to serving its citizens requires going beyond traditional service provision and tapping into the full potential of data to deliver the best quality services in the most efficient way possible. Using data responsibly requires the development and implementation of new practices that are human-centric – those that assure citizens’ interests are respected and prioritized at all times, empower citizens to improve their own lives through data, and increase participation in the overall ecosystem by building trustworthy data relationships,” said Jan Vapaavuori, Urban Activist and Mayor of Helsinki (2017-2021).

Much of the data needed to tackle the world’s most pressing challenges is siloed in public and private sources. Even for social good, the various regulatory, commercial and social risks prevent data sharing. The Shaping the Future of Technology Governance: Data Policy Platform works with partners from all sectors, regions and industries to develop agile and innovative approaches to accelerate the responsible use of data and empower stakeholders across the entire data ecosystem.

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Digital billboards bring real-time air pollution data to Nairobi

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Image source: UN Environment

Digital billboards around the Kenyan capital today started to live stream Nairobi’s real-time air pollution in an effort to increase air quality awareness among the city’s 4.7 million inhabitants.

The initiative – by the UN Environment Programme (UNEP), in collaboration with IQAir, a Swiss air quality technology company, Safaricom, a telecommunications provider in Kenya, Alpha and Jam Ltd and Metropolitan Star Lite Ltd,  Out Of Home (OOH) media – provides real-time air quality information for some of the most harmful type of air pollution, fine airborne particles, known as PM2.5. The pilot aims to engage the public by streaming real-time air pollution information to digital billboards at 4 critical locations in the city: Moi Avenue, University Way, Mbagathi Way and Jomo Kenyatta International Airport.

PM2.5causes serious health issues, including asthma, lung cancer, and heart disease. Exposure to PM2.5has also been associated with low birth weight, increased acute respiratory infections, and stroke.

“Real time air quality monitoring will help us with the issuance of health advisories as well as for formulation of smart traffic controls that minimize congestion,” said Lawrence Mwangi, Assistant Director of Environment in charge of pollution control at the Nairobi County Government. “Dynamic advisories demonstrated through this collaboration will help people limit their exposure to harmful pollutants.”

Around 3 billion people cook and heat their homes using open fires and simple stoves burning biomass (wood, animal dung and crop waste) and coal. More than 50% of premature deaths due to pneumonia among children under 5 are caused by the particulate matter (soot) inhaled from household air pollution.  Outdoor air pollution in both cities and rural areas was estimated to cause 3 million premature deaths worldwide in 2012 with 88% of those premature deaths occurring in low- and middle-income countries.

Policies and investments supporting cleaner transport, energy-efficient housing, power generation, industry and better municipal waste management would reduce key sources of urban outdoor air pollution.  Most residents of the city do not have access to real-time air quality data and consequently, are often unaware of the harmful levels of air they breathe.

“Action on air pollution, which is responsible for millions of premature deaths a year, is critical – efforts should focus on high-risk communities, such as people living in informal urban settlements,” said Inger Andersen, Executive Director of UNEP. “Innovations to reach and engage the local community and decision-makers alike, can only elevate the understanding of the impacts of air quality and help create an enabling environment improve human and ecosystem health.”

“We recognize that some of the world’s most vulnerable communities are disproportionately affected by poor air quality,” said IQAir CEO Frank Hammes.  “Through our partnership with UNEP, we are able to leverage real-time air quality monitoring data, machine learning and data visualization to help identify those that are most affected by global air pollution. The real-time visibility of the impact of air pollution on mankind, combined with the outreach and support that the UNEP offers, can help governments and communities around the world take actions that lead to cleaner, healthier air.”

The Nairobi air quality awareness demonstration project is the result of a unique collaboration between the UN, the private sector, academia, non-governmental and local governmental organizations and is expected to accelerate efforts to change how transport, waste management and other services are managed in cities so that air pollution from these activities is significantly reduced, if not eliminated.

“This partnership lies very much at the heart of our sustainability agenda that seeks to address environmental issues such as air pollution which remains a major challenge especially in urban centres. We intend to use our digital platforms and expansive network infrastructure to support the air quality monitoring project to expand across more urban areas in Kenya. We will also foster partnerships with other stakeholders including regulators, relevant ministries and private organizations to help build a compressive and sustainable air quality monitoring system in the long run”, said Peter Ndegwa, CEO, Safaricom.

The demonstration project comes as the world celebrates the 2nd International Day for Clean Air and blue skies on 7 September, this year held under the theme, Healthy Air, Healthy Planet. The Day calls for increased international cooperation at the global, regional and sub-regional levels. It provides a platform for strengthening global solidarity as well as political momentum for action against air pollution and climate change, including the increased collection of air quality data, carrying out joint research, developing new technologies and sharing best practices.

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Artel to strengthen position as a leading innovator in Central Asia

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Artel Electronics LLC (Artel), Central Asia’s leading home appliance and electronics manufacturer and one of Uzbekistan’s largest companies, continues to strengthen its Research and Development (R&D) position to bring new, innovative products to its customers.

Artel’s custom R&D center in Tashkent is one of the most extensive manufacturing research facilities in Central Asia. The center’s designers, engineers and technicians develop new technologies to advance the next generation of contemporary products for the modern home.

The expansion of Artel’s R&D center is at the heart of the company’s forward-looking strategy. In the near future, the company will strengthen its in-house expertise through employing over 100 additional specialists and by attracting leading international talent. The center will also establish a number of departments dedicated to research priorities, including in automation and robotics. Moreover, to capitalize on international trends, Artel is exploring establishing branches of the R&D center overseas, including in Turkey and China, and partnership opportunities with technical universities worldwide.

The R&D center also plays a central role in the identification and training of the next generation of Uzbek technicians, designers and engineers. The R&D center has had long lasting cooperation with the Department of Mechatronics and Robotics at the Islam Karimov Tashkent State Technical University, and a branch of the center focusing on automation and robotization of production operates on site. Since establishment, the Center has provided state-of-the-art training to over 250 young specialists who now work throughout Artel’s operations. By investing in and nurturing homegrown talent, Artel channels expertise, ideas and creativity into its operations.

Rustem Lenurovich, Director of the R&D Center, said: “At Artel, we know that the constant development of new, sophisticated products and processes is fundamental to our business and growth. Through our hard work and innovation, and by investing in energetic young talent, we will continue to deliver the most advanced appliances and electronics to our customers. We look forward to strengthening our R&D position even further in the coming years.”

Artel’s R&D facility was established in 2016, and the main center was opened in 2017. The center’s team of specialists develop technologies to continuously refresh the company’s product portfolio and optimize production processes. The onsite VR laboratory and pilot production facilities are used to create and test prototypes. In the first half of 2021 alone, the center initiated over 30 projects. The center has also recently partnered with Gree company on the development of washing machine and air conditioner technologies.

Artel Electronics LLC manufactures a wide range of household appliances and electronics, and operates in all regions of Uzbekistan. The company currently exports its products to over 20 countries throughout the CIS and the Middle East, and is also the regional partner of Samsung and Viessmann.

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