Digital Solutions Drive Sustainability in Manufacturing

By David McKnight, Director of Digital Manufacturing Solutions, Hitachi Vantara, and
Shamik Mehta, Director of Industry Solutions Marketing, Hitachi Vantara

It’s an interesting parallel: The global drive toward sustainability may directly improve carbon emissions and help slow climate change to the benefit of all. And correspondingly, manufacturing companies that successfully transform to positively contribute to global sustainability will enhance their own ability to thrive.

The reverse, of course, is also true — manufacturing companies that fail to meet global environmental, social and governance (ESG) benchmarks will likely find themselves falling behind competitors, being shunned by consumers and, ultimately, facing irrelevance.

It’s a stark reality, and a daunting task. Manufacturers must successfully digitally transform in ways that enhance sustainability. But the potential benefits of that success are virtually unlimited.

A couple of decades ago, a discussion about digital transformation and sustainability in manufacturing might have involved a number of participants advocating both for and against the need for change — or at least how much things would really need to change. But now, driven by tightening regulations, pressures from global markets, the increased focus on ESG metrics and shifting customer preferences, digital innovation is no longer optional — and manufacturers know it.

Manufacturers are also beginning to recognize that the benefits of success in this transformation extend beyond the primary goals of operational efficiency, increased profitability, and productivity and safety improvements. Respondents to the survey also noted the potential for significant improvements in:

• Market share
• Influence on industry and society
• Ability to attract new talent
• Brand recognition and reputation
• Employee retention and morale

But knowing you need to transform and knowing how to do it are two different things. Most manufacturing companies are aware of the need to digitally transform, and they know that the changes involved will be substantial. These top three areas of focus emerged in the survey as the most important for meeting sustainability goals:

• Production processes. Streamlined processes that save energy, reduce waste and increase visibility all contribute to making factories more sustainable.
• Workforce training. Manufacturers can maintain and improve sustainability-based work practices and smart-work behaviors by using digital information-sharing tools to reduce the knowledge drain as skilled workers retire.
• Supply chain. More efficient supply chains can save energy, reduce warehouse storage needs and streamline logistics to reduce truck rolls — all of which help lower carbon footprints.

For enhanced sustainability, manufacturers must pursue ways to improve efficiency, lower their energy usage, integrate alternative sources and energy management systems, and lower their carbon footprint from end to end.

And it all starts with knowing where you are today.

Manufacturers that are exploring digital transformation initiatives know that data will form a large part of the answer to the sustainability challenge. In fact, the survey respondents consider data analytics the most important technology for managing sustainability, with a primary focus on machine learning and artificial intelligence (AI).

Unprecedented quantities of data are now available to organizations, but deriving insights from that data quickly and efficiently requires digitalization. Digital technologies that leverage that data into operational benefits and enhanced efficiencies are the key to enabling quantum improvements in manufacturing sustainability.

Hitachi is a leader in providing sustainable solutions for manufacturing, having developed and operationalized many of the cutting-edge digital technologies that companies use to meet their ESG goals itself. For example, Lumada Manufacturing Insights helps manufacturers such as Logan Aluminum develop data-driven operations, increase supply chain visibility, run predictive models and enable smart factory solutions that use data to drive productivity, lower asset downtime, extend remaining useful life, and promote sustainability in manufacturing processes.

Hitachi is also one of the largest manufacturing companies on the planet. Our global presence in both manufacturing and technology uniquely positions us as a leader in sustainability solutions. Many technology companies offer recommendations for bolstering your manufacturing sustainability, but Hitachi offers advisory services, hands-on guidance, domain and business process expertise, and more — all delivered and backed up with hundreds of use cases and successful delivery examples. Hitachi’s Omika Works factory, for example, was recognized by the World Economic Forum in 2020 as an advanced Fourth Industrial Revolution Lighthouse, an honor given to factories that are world leaders in the adoption and integration of groundbreaking technologies.

Hitachi stands ready to help manufacturing companies achieve their sustainability goals. Recent sustainability-enhancing successes achieved by Hitachi manufacturing customers include:

• Improved operating rates achieved by consolidating multiple factories for an automobile parts manufacturing company
• Improvements in equipment operation rates and reduced manufacturing lead times for an agricultural machinery manufacturer
• Reduced productivity losses from equipment stoppages and improved preventative maintenance processes for a printed circuit board manufacturer

Learn more about how Hitachi can help you can more effectively leverage your data and achieve your sustainable future.