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Hitachi

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Transforming Manufacturing & Strategic Planning Transforming Manufacturing & Strategic Planning

Predictive

lean operating systems will become the most effective means of dealing with manufacturing issues

Predictive Lean Operating Systems will become the norm. It’s clear Lean Operating Systems drive productivity at all levels of the business through continuous improvement. The problem with traditional Lean Operating Systems is the root cause analysis and continuous improvement happens after an unplanned variance occurs e.g. a missed delivery, unplanned machine downtime, poor quality, and losses in earned hours. With connected enterprise data and AI supported predictive analytics Lean Operating Systems can and will predict variances before they happen.

As an example, take a Hitachi customer who converts large steel products. The company historically loss a large portion of their capacity to setups due to wrong raw material being fed into the process. Now with connected data from the enterprise scheduling system and operational data from the process PLCs, predictive analytics are applied predicting wrong raw material. With predictive lean operating systems, these three hours of frustration become a quick and painless few seconds of predictive data analysis with an alert sent to the operator predicting the problem and preventing the productivity loss.

Connectivity will have significant

impacts on revenue and service models

The key to driving new revenue streams will be how companies leverage value chain connectivity to impact various functions of their business. Connected supply chains and improved product quality through connected innovation will be crucial factors in completely overhauling how manufacturing companies do business, allowing them to generate all kinds of new models to benefit their bottom line.

Hitachi has made the connectivity leap with many of their products to provide field monitoring services to predict asset performance and maintenance needs. For example, instead of selling high speed trains Hitachi now leases them and ensures 100% uptime creating value to the life cycle of the asset. At other customers Hitachi will sensor their products, connect the data and build the predictive analytics to monitor the field performance to increase product uptime and reduce overall cost of maintenance to the end customer. These new revenue streams can be a complete game changer for allowing new growth.

Exploring 5 Megatrends

in Manufacturing

Connected Enterprise

Connected
Enterprise

Upskilled Workforce

Upskilled
Workforce

New Service Models

New Service
Models

Regional Localized Production

Regional Localized
Production

Predictive Lean Operating Systems

Predictive Lean
Operating
Systems

SO

What?

Recognizing these trends and building them into strategic planning is critical in the digital age. As evidenced by the HBR research, companies who embrace connected data and predictive analytics are already seeing better overall performance relative to their competition. As this new technology and data integration is applied to regional manufacturing and Lean Operating Systems, performance will continue to improve along with new service and revenue models becoming a shifting reality.

*1
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014-millennial-survey-report.pdf