🚀 Shaping the Future - Issue 38

We're inviting knowledgeable members to join hosts Mike Ungar and Tim Stuart in our latest series titled "Lean Industry 4.0: Operational Excellence meets Technology" and share their experiences.

📣 Be a guest in our “Lean Industry 4.0: Operational Excellence meets Technology” Series

We're inviting knowledgeable members to join hosts Mike Ungar and Tim Stuart in our latest series titled "Lean Industry 4.0: Operational Excellence meets Technology" and share the experience and expertise on various topics including:
- Scratching the Surface: Using Data to Drive Business Results
- Enhance Lean with Digital Tools
- The IT/OT Embrace: Bridging the Divide
- Changing Standard Work with a Digital Twist: Adapting Manufacturing Practices
- Prepare Your Workforce for Success in the Digital Era
- Empowering your Workforce with Technology

To participate, just fill out this form and our team will be in touch!

🧠The Importance of Leadership in Industry 4.0 Deployment

The first episode of the "Lean Industry 4.0 - Operational Excellence meets Technology" hosted by Tim Stuart and Mike Ungar featured Justin Brennan from Medical Products Laboratories. The conversation features insights on the importance of leadership in the deployment of Industry 4.0.

You can watch the conversation below.

📚What we’ve read this week

State of Smart Manufacturing Report [Rockwell]

Some Key Takeaways:

• 94% of respondents expect to maintain or grow their workforce as a result of smart manufacturing technology adoption.

• 85% of manufacturers said they would use AI and ML in operations this year, and 83% said they would use generative AI.

• 95% are currently using or evaluating smart manufacturing technology, up from 84% in 2023.

• 98% have a sustainability or ESG policy in place, with almost half of those being formal, company-wide policies.

• “I think the number one takeaway is manufacturers admitting and understanding that cybersecurity is a thing,” says Abbey, adding that for a very long time, manufacturers considered cybersecurity to be someone else’s problem. “We've had more and more published reports over the last couple of years, and they're starting to see them. And this report reflected that change, that mental awareness, that cybersecurity is a serious external risk,”

39,000 Lost Jobs Undercut Biden’s Manufacturing Wins [Bloomberg]

Biden's focus on bringing back middle-class factory jobs and reshoring strategic industries has seen mixed success. Despite some economic gains, the closure of iconic factories like Master Lock raises questions about the long-term transformation of urban industrial areas and the political implications for the Biden administration. A decade ago, workers at the Master Lock factory could earn $100,000 annually, but the shutdown represents a shift in manufacturing jobs and the political implications of industrial policy. Some interesting takeaways from the analysis include:

• Since the 1979 manufacturing peak, total private employment increased by 84.7%, while manufacturing employment decreased by 33.1%.

• In the past five years, the US added 146,000 manufacturing jobs.

• In Michigan, Pennsylvania, and Wisconsin, manufacturing employment decreased by 0.8%, 1.8%, and 3.9%, respectively, compared to 2019 levels.

• In contrast, Southern and Western states like North Carolina, Georgia, Arizona, and Nevada saw manufacturing job increases ranging from 10.1% to 16.8%.

• Manufacturing jobs in Milwaukee's surrounding counties increased by 6.9% from 2010 to 2021, while they decreased by 15.3% in Milwaukee itself.

Inside Boeing’s Quality Control Process for 737 Max Planes [WSJ]

How Boeing Favored Speed Over Quality [NY Times]

In the past year, several incidents involving Boeing 737 Max planes have raised concerns about the quality of Boeing's production. These incidents, including an automated system malfunction, a fire detection system problem, and an engine failure at high altitude, have not been widely reported but highlight ongoing issues with Boeing’s manufacturing. Key Factors in Boeing's struggles to maintain quality standards include reduced experience levels among Boeing’s workforce post-pandemic, weakened inspection processes, and supplier challenges in meeting quality standards under production pressure. A recent FAA audit revealed lapses in Boeing’s quality-control practices. The audit followed an incident where a panel blew off a 737 Max 9 midair, traced back to a Boeing factory in Renton, Washington. Current and former employees reported a culture shift starting around 2017, with increased production pressures leading to compromised quality and safety. The loss of experienced employees due to pandemic-related job cuts and retirements has exacerbated these challenges. The need for more training for new employees and the increased use of less experienced workers have been identified as contributing factors to the decline in manufacturing quality.

US Pledges Up To $1B For Two ​‘Green Steel’ Projects [Canary Media]

The Biden administration's recent announcement of up to $6 billion for projects aimed at reducing greenhouse gas emissions in heavy industries, including the iron and steel sector. This funding includes up to $500 million each for Cleveland-Cliffs and SSAB to develop "green steel" projects that would utilize clean hydrogen, rather than coal or fossil gas, in ironmaking. These initiatives are significant as currently, no large-scale, low-emissions ironmaking facilities exist in the country, with the only significant operation being the Hybrit project in Sweden. Cleveland-Cliffs' plan involves installing a hydrogen-ready ironmaking plant in Ohio, while SSAB intends to construct a new facility in Mississippi exclusively using hydrogen. The direct reduced iron (DRI) process, which both Cleveland-Cliffs and SSAB plan to employ, utilizes hydrogen gas to remove oxygen from iron ore, potentially reducing carbon emissions significantly. Cleveland-Cliffs expects to invest around $1.3 billion over five years in its Ohio project, which could reduce emissions by 1 million metric tons annually. SSAB's Mississippi project, employing Hybrit technology, aims to use only clean hydrogen, potentially reducing carbon intensity by over 90%.

🎤 Upcoming Events

Returning to Greenville, SC, for the third year, the MX.0 Southeast event brings regional manufacturers together, equipping them with the necessary lessons and network to take the steps from Industry 3.0 to 4.0, and beyond. The M(anufacturing) X.0 agenda hosts national and regional manufacturers on stage who share practical, tried, and tested examples of ‘how to do’ digital transformation.

2024’s agenda brings case studies in change management, applying AI and Mixed Reality, rolling out Digital Twins, planning and scaling systems and processes, Cobots and Robots, tackling workforce problems, real-time data analytics, and much more.

👋 Get Involved

Join the Industry 4.0 Club and be part of our vibrant community, dedicated to shaping the future of manufacturing. By actively participating, you can make a meaningful impact in advancing Industry 4.0 and contribute to reshaping the manufacturing landscape.

We’re always looking for new contributors to share their expertise, experience and spread the word. You can contact us directly at info@industry40club.com with subject like “Getting Involved” and follow us on all social media (LinkedIn & Twitter) or donate to help fund the club’s activities.

💬 About Shaping the Future

Shaping the Future is Industry 4.0 Club’s official newsletter. We’ll be experiencing different formats over the coming weeks until we find the one that resonates the most with our members. You can help us improve by sharing feedback and suggestions. The newsletter will land in your inbox every Sunday morning; please subscribe to not miss anything and forward the email to someone you think would benefit from this.

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