Professor Tim Baines, Director of the Advanced Services Group, Aston University and Dr. Ali Zia Bigdeli, Senior Lecturer in Industrial Services Innovation at Aston University argue manufacturing should embrace services as part of its post-COVID-19 strategy.

Change, a 1985 paper argued, can be characterised as a “punctuated equilibrium”: long periods of relative calm and small incremental alterations that are interrupted by brief, but radical, seismic shifts. COVID-19 means that we are now living through one of those revolutionary moments.

Advanced Services and Positive Business

But that also means that there is an opportunity to look at things in a new way. For the past 20 years, we’ve been conducting research and advising manufacturers to compete through services – activities aimed at solving customers’ problems – rather than simply just pushing boxes out of the factory.

And our reasons are simple: services are good for business, good for the economy and environment, and good for society. Now accounting for 80% of the UK’s economic output, services have grown by 30% over the past 20 years. By comparison, gross domestic product (GDP) generated from selling products has contracted – a trend that is being replicated in every developed economy across the world.

But it has been a slow and sometimes painful journey – “What is this thing called servitization,” we are asked. “And how do you spell it?!” Up until now, change in this field, like in so many others, has been evolutionary, somewhat incremental and exploratory. But then arrives a global pandemic that shatters the equilibrium and stimulates radical innovation.

These are challenging times, and it’s important not to make light of the struggles facing the global economy. Business activity is currently polarised around sector and geography. On the one hand are manufacturers who support the food and health sectors and have never been busier. On the other are those businesses linked to the aerospace, automotive, and oil and gas industries which are being forced to mothball facilities and lay off staff in their tens of thousands.

For some, the implications are so severe that they may not survive. Even those that are doing well are having to deal with a reduced workforce, social distancing in the workplace, and the economic fallout of customers being unable to pay their bills.

Disrupting the old norms

How appealing the old norms may now seem. Until just a few months ago, most executives within manufacturing organisations had a rather passive, established view of services. For us, it was frustrating, but comfortingly familiar.

We could work with these manufacturers to help them better understand the value of services, influence key decision-makers and then hopefully get a chance to support their innovation of new business models, technologies and organisational structures. But we often experienced an equilibrium – the harder we helped manufacturing executives to push for more services, the harder the system pushed back.

Now, however, that equilibrium is being disrupted.Take performance advisory services. These are services that allow manufacturers to use digital technologies to gain insight into how customers use their products, and then offer data and/or intelligence back to that customer on how to gain more value from those products.

"The end of this period of disruption will bring a new set of norms, and it’s beyond belief that we will return to the days of simply shifting boxes..."

An example of this type of service is Siemens’ monitoring of the condition of airport baggage carts. The company gathers acoustic and vibration data from rail-mounted luggage carts around the airport and uses this data to assess the likelihood of breakdowns before they happen.

Breakdowns cost time and money. So spotting potential breakdowns in advance saves airport operators the penalties that must be paid when luggage isn’t loaded onto flights on time, and improves the passenger experience through the punctual delivery of baggage.We have seen a wealth of technically excellent digital systems like this. Most, however, have so far failed to be commercially viable and manufacturers have been reluctant to invest in and push them to customers. But in the current climate, that may change.

As well as opening up a huge new market opportunity, these services could be far more profitable than simply selling the products themselves. Such services can also develop enviable intimacy with and loyalty from customers as the provider is able to address their customers’ demands and problems much more quickly and effectively.

And now times are changing, the economic potential of services is becoming more visible. Indeed, remote support and performance advisory services – helpdesks, remote support for breakdowns, digital installations – provide obvious solutions in an age of social distancing, remote working and lockdowns.

Customers either want remote advice on how to fix problems themselves, or they want the manufacturer to remotely fix and upgrade their equipment. It’s not all about technology, of course – customers still value speaking to a person, just not face to face. But manufacturers no longer need to gamble as much on selling these new systems; customers actively are seeking them. Both parties are starting to look at the bigger picture, and services are proving vitally important to both.

Accelerated change

For some time yet, change will be accelerated and hastened. The end of this period of disruption will bring a new set of norms, and it’s beyond belief that we will return to the days of simply shifting boxes. At the very least, business plans will need to include how to deal with disruption – whether it’s related to health, the economy or the environment.

The opportunities that this creates for services are potentially dramatic. Services are in the midst of radical change and, of course, we all look forward to returning to those long periods of relative calm. However, in so many ways, things will never be the same. Business models for manufacturers will have been disrupted, and there will be new and different conversations about the value of services. These business models have the potential to deliver huge value, and a level of resilience that we may never see again for production-based ways of competing.

Further Reading:

• Read more articles by Tim Baines @ https://www.fieldservicenews.com/tim+baines
• Read more articles by Ali Zia Bigdeli @ https://www.fieldservicenews.com/AliZiaBigdeli
• Find out more about the World Servitization Conference @ https://www.advancedservicesgroup.co.uk/wsc2020
• Read more articles about servitization @ https://www.fieldservicenews.com/servitization
• This article first appeared The Conversation.com here
• Follow the work of the Advanced Services Group @ www.advancedservicesgroup.co.uk/
• Follow the Advanced Services Group @ twitter.com/theasgroup

Additive Manufacturing (AM) is on the front line of the unfolding industrial revolution. This string of rapid prototyping technologies is replacing conventional production, and consequently, it is poised to generate substantial economic revenue by 2035—$196.8 billion. Adrian Cirlig and Teodora Gaici explain more...

The future is certainly bright, but so is the present. On any given day, manufacturers can turn to AM technology to facilitate the production of individually customized products at relatively low costs, reshape the design process, and consolidate their supply chains. 

AM will remain a particularly active architect of customer-driven design, virtual inventory, and rapid iterationsfor new product development. Yet it’s not all roses; the lack of quality consistency may slow production runs to a trickle. 

In consequence, is AM both the cure and the culprit of innovation volatility? Industry experts seem undecided in the matter as this paper from the Rand Corporation outlines. 

Additive Manufacturing: A Magic Bullet for Field Service Logistics? 

AM is, after all, a disruptive technology—one that comes with a learning curve. Many top-tier leaders have justifiably gauged the trajectory of additive technology, and when they sensed it had promise, they gingerly lunged for it. 

Through the use of AM technologies,anyone can manufacture products without any required tooling for production. That’s right—traditional molding techniques or large machines that have yet to be deftly transported will no longer impede manufacturing performance. Simply put, this set of powerful AM machines has the ability to fabricate a product from a digital geometry representation. Once they accurately replicate computer-aided design drawings, AM tools directly transform three-dimensional structures into functional physical prototypes and, more recently, ready-for-use products—all that in just a matter of minutes. The physical parts are built out of plastics, polymers, metals, ceramics, stainless steel, or other types of material by using a layer-by-layer printing process. A vast majority of modern AM machines print with multiple materials simultaneously and allow the development of mixed-material products.

"Manufacturers must have a plan for everything—how, when, and where they design and manufacture products rank top of the list..."

Organisations with a strong innovative culture recognize the need to facilitate on-demand production, and as it turns out, they’re growing faster and increasingly outpace their competitors.

Innovation, however, is rarely linear. In most cases, it’s a progressive affair that disrupts practically every aspect of the business

Manufacturers must have a plan for everything—how, when, and where they design and manufacture products rank top of the list. AM is already distorting modern-day manufacturers’ long-planned reality by encouraging them to rethink every design-to-fabrication procedure and go well beyond traditional manufacturing methods. Those who are up to the challenge will become the leading innovators in their market.

Additive Opportunities for the Taking 

The revolutionary AM technology is becoming commonplace one layer at a time. 

This significant surge in popularity may be due to the proposed benefits that are in visible contrast with those provided by conventional manufacturing operations. 

Milling, for example, can produce a large amount of unnecessary material waste. Distinct in nature, additive processes have become a statement of sustainability—both economically and environmentally. It is touted that AM technology reduces energy consumption, facilitates dematerialisation, and improves resource efficiency by using waste as an input to construct equitably personalised products in a cost-effective manner.

This type of manufacturing process also attempts to minimise the need for packaging, transportation, and storage. More than that, prototyping and building a high-value product from geometrically complex data in-house can also significantly reduce shipping costs and shorten supply chains.

Since AM machines offer complete (and highly flexible) design freedom, they allow early customer involvement in the product development process. This customer-driven design procedure helps manufacturers respond to individually customised demand wherever needed, revise and conduct timely design changes, and reduce time-to-market. Above all, manufacturers are empowered to forge direct-to-consumer relationships and prolong the lifetime value of a specific object.

"With large-scale printers being well underway, Additive Manufacturing technology will steadily extend its capabilities..."

It’s impressive, but that’s just barely scratching the surface. AM is an advocate of product differentiation—at scale!—and industry experts can take full advantage of this technology to mass-produce custom-fit objects without paying a steep price for additional workers or tooling. Manufacturing in large volumes will, in fact, reduce the cost per unit, minimise the total cost of ownership, and drive greater growth.

At the moment, AM machines can mainly print tiny (yet rather complex) items; they can briskly produce fully-functional parts in just a single production step and without the need for assembly lines. With large-scale printers being well underway, AM technology will steadily extend its capabilities to open up innovative business models across the industry.

Additive Manufacturing Technology Is Ripe for Investment, But the Caveats Remain 

It’s in the cards: AM tools will offer unlimited design-to-fabrication opportunities for modern-day manufacturers. The vast majority of these professionals may inevitably face certain drawbacks that can’t (and most probably won’t!) go unnoticed.

Quality consistency is one of the main stumbling blocks.

Every manufacturer aims to develop consistent parts and ensure repeatable quality levels throughout their production lines. Yet no two items are exactly the same. Given that AM machines can produce parts as small as 500 nanometers, the differences may be slim or less obvious; but they exist, and a single inconsistent subset that is left unaddressed could put the brakes on the production line.

All the materials used for crafting AM-produced components should also be processed within the required quality standards and specifications, or else they might prevent objects from being recycled

"Many manufacturing and field service professionals haven’t gained an in-depth understanding of Additive Manufacturing techniques yet, let alone hands-on experience.."

The knowledge gap is another considerable barrier to the adoption of AM technology. As this study warns “[the] knowledge of AM in the industry exists in pockets.” Many manufacturing and field service professionals haven’t gained an in-depth understanding of AM techniques yet, let alone hands-on experience.

Amid global economic unrest, the lack of know-how may drive economic insecurity and hamper technology adoption.

Route Around the Gaps and Fortify Additive Manufacturing Innovation 

An AM-produced component may be a sure bet for unprecedented manufacturing gains. That is, of course, if manufacturers do not band-aid the inevitable caveats that eagerly come with every disruptive technology. /p>

As AM technology advances, the trick is to promptly address each limitation or potential risk and transform every temporary hiccup into an opportunity for modernisng manufacturing lines.

Capturing AM’s transformative potential is crucial for manufacturers who want to advance customer-led product development and freely reach all their revenue growth targets. 

Further Reading: 

Adrian is the Editor for a series of key industry events with Swedish Conference Producer, Copperberg. 

• Find out more about his forthcoming event the Field Service Forum @ https://www.copperberg.com/fieldserviceforum/

Manufacturing Services and Software Provider offers free-use of data monitoring tool Enact® to firms throughout pandemic.

InfinityQS has joined the growing list of companies offering free use of their products during the Covid-19 pandemic by giving manufacturers access to its Enact Quality Intelligence platform.

REMOTE WORKERS

Manufacturers can utilise the platform for three months, at no charge and with no commitment, but must enrol by June 30, 2020.

Enact operates real-time insights on processes, across individual plants and entire enterprises, the firm says. Importantly, during this time of social-distancing the software can support remote workers through its cloud-based monitoring feature.

Michael Lyle, President and CEO at InfinityQS said the solution can contribute to staff safety. "The Covid-19 pandemic is having a profound effect on each of us, on our families and friends, and on how we work and socialise," he explained. "Enact is a tool that can ensure the quality of the products you produce while also helping you protect your most valuable resource - your people."

Click here to see Field Service News' full list of industry solution providers offering support to the field service and manufacturing sectors during Covid-19.

UK-based CAE firm will form part of Hexagon's Manufacturing Intelligence Division.

Precision measuring specialists Hexagon AB has acquired CAEFatigue, a provider of mechanical fatigue simulation solutions.

Consolidate

CAEFatigue, founded in 2012 and based in the United Kingdom, will be consolidated into MSC Software, Hexagon’s own Computer-aided Engineering (CAE) simulation software arm, part of Hexagon’s Manufacturing Intelligence Division.

The implementation of CAE simulation during the design phase of manufacturing can replicate and identify potential stresses and fatigue issues of a product. CAEfatigue Vibration, a component of CAEfatigue’s software suite uses frequency-domain response rather than a time-domain alternative which increases accuracy during the simulation. At the moment It is being used in a range of sectors including the automotive and aerospace industries, both key demographics for Hexagon. Currently, MSC provide simulation software for NASA, Boeing and Genera Motors and with the addition of CAEFatigue, Hexagon expect to bring an enhanced CAE offering to existing and new customers.

Hexagon President and CEO Ola Rollén said Hexagon's portfolio of smart factory and smart industrial facility solutions will feel the benefit of the acquisition beyond its manufacturing processes. "CAEFatigue offers solutions for validating design and manufacturing methods - from choice of material to fabrication - enabling decisions during the design phase that improve quality and product life, while saving time, reducing costs and eliminating waste." 

Ericsson's smart factory in Lewisville, Texas, has produced its first 5G base station. Announced last year, the factory will be one of the most advanced manufacturing facilities in the industry when it is fully operational later this year.

The first product manufactured at the factory is the millimeter-wave Street Macro solution, which is key to Ericsson’s 5G portfolio for its North American customers. All radio access components are housed in one lightweight enclosure, allowing service providers to rapidly grow 5G coverage in complex city environments.

The Street Macro solution, part of the Ericsson Radio System portfolio, is also helping to provide Ericsson’s 5G-enabled connectivity in the smart factory.

Erik Simonsson, Head of the USA 5G Smart Factory, Ericsson, says: “We’re excited to produce advanced 5G radio products for our U.S. customers, to meet the demand for next-generation 5G networks across the country. It’s also exciting to use our own 5G products in the factory for wireless connectivity to increase production efficiency. With the first 5G base stations now rolling off the production line, we are on target this year to have the most fully automated, sustainable 5G smart factory in the U.S.”

Ericsson’s fast and secure 5G connectivity will enable the smart factory with agile operations and flexible production, utilizing industrial solutions such as automated warehouses, connected logistics, automated assembly, packing, product handling and autonomous carts. Ericsson will initially employ approximately 100 people at the facility.

The new USA 5G Smart Factory complements Ericsson’s global supply strategy, which ensures the company is working close to its customers through its American, European and Asian operations, securing fast and agile deliveries to meet customer requirements.

AI to support automation, support labour shortage and drive upskilling as Industry 4.0 accelerates, study shows.

Tech support company Mavenoid discovered users of tech hardware have to wait on average eight days to have a problem fixed.
Downtime is known to be one of the largest expenses for manufacturing companies. Swedish tech support company Mavenoid studied a variety of industries, from heavy machinery to consumer appliances, and measured the time users had to wait for a repair technician to fix their broken products. The results show surprisingly long downtimes for all product categories, even when the product’s function is critical for a business’ operation or a consumer’s daily life.

“Eight days of downtime is shockingly long considering how much productivity and goodwill is lost every day a product is not working,” says Mavenoid co-founder and CEO Shahan Lilja. “We see how customers become increasingly frustrated waiting for repairs, while companies’ support teams are held up fixing repetitive problems.”

In the study, Mavenoid compiled data from support requests across social media, online forums and manufacturers’ helpdesk channels like email and chatbots. The requests were managed by human support staff, sometimes remotely and sometimes including physical visits from a service technician. Utilizing cluster analysis on the support cases, and a statistic model to predict the alternative solutions to each request, Mavenoid was able to estimate the average waiting time and how much time could have been saved with better self-service capabilities.

“In half of the troubleshooting cases we looked at, the end-users could have easily fixed their machines themselves, without any wait,” says Mr Lilja. “Time-to-solution is key to satisfied customers, so it’s clear manufacturers underestimate the negative consequences of support waiting times and haven’t yet fully realized the potential of self-service.”

In November this year top-tier after-sales service solution provider Syncron will be hosting the inaugural edition of a new two day forum Innovate2019. Designed to be a first-of-its kind global leadership summit focused on facilitating conversations and providing insights for manufacturers exploring the inevitable shift to servitization: selling products-as-a-service.

To find out more Kris Oldland , Caught up with Syncron CMO Gary Brooks...