Introduction
“Manufacturers in industries such as automotive and electronics, nearing the tipping point of digital adoption, are achieving even faster and more sustainable change through Industry 4.0.”
Digital Disruption: The route to Automotive Digital Transformation
Digital disruption has been a key to transformation for the future in various industries. The automotive industry has been quick to learn that it must adopt the changing market dynamics, customer demands, and trends transforming the industry. The industry is experiencing a massive transformation, primarily driven by the continuous digitalization of its value chain and Industry 4.0. We’ll be talking about the disruption, shift, and transformation of automotive manufacturing by digital means.
Digital Transformation with Advanced Technologies
By leveraging advanced digital technologies, including but not limited to additive manufacturing, Internet of Things (IoT), robotics, cloud computing, artificial intelligence (AI), and more, automotive companies are able to develop a more flexible, efficient, and profitable value chain that enhances customer experience (CX), better engagement, and improved after-sell services.
In a study by Precedence Research, it has been found that the global market for Generative AI in the automotive market will grow by more than $2 billion by 2032. So, what does that indicate? Well, it shows the integration of digital technologies in more aspects of automotive operations to enhance the development process, efficiency, and profitability.
BMW Group is the perfect example here to help you understand the digital transformation journey of their automotive production plants. With SAP, BMW Group created systems and processes to transform parts logistics, finance controlling, and customs by worldwide standardization of logistics processes, mutual plant support, flexible workforce allocation, latest technology innovations, and synergy in support and training. The adoption of cloud architecture enables BMW to have faster access to new innovations and quickly introduce new solutions to their production network.
“The Oxford plant is the first plant that will follow a global rollout within the BMW Group,” said Alexander Buresch, Chief Information Officer and senior vice president, BMW Group IT. “From now on, more plants from the worldwide production network will be added every year until they all speak the same language. As part of our digitization and harmonization strategy, this new solution allows us to link relevant product, process, quality, and cost data, which enables data consistency and transparency across the production chain.”
Digital Transformation with Industry 4.0 for Production
Industry 4.0 has been instrumental in the digital transformation of the automotive industry. It expanded and increased the importance of digital transformation for Original Equipment Manufacturers (OEMs), production management, suppliers, dealers, service networks, and more in the mobility world. Automotive manufacturing goes digital with Industry 4.0, but how will these industry leaders like Ford, Porsche, Volkswagen, Faurecia, etc., get the robust technologies and technical expertise?
You will be surprised to know that Israel is in the driving seat to facilitate these robust technical capabilities with over 240 Industry 4.0 startups (as published in a Deloitte study) to accelerate the transformation. Israel innovation hubs have a wide range of technical capabilities such as operation optimization, additive manufacturing, supply chain, cybersecurity, maintenance, sensing and imaging, inspection and testing, and more for the automotive world. In short, the collaborative efforts of Industry 4.0 and these tech startups fuel automotive digital transformation.
Streamline Product Designing with Additive Manufacturing (AM)
We remember the revolutionary introduction of 3D printing technology for economic modeling and other designs; similarly, Additive Manufacturing has a more productive role in automotive manufacturing. It turned out to be a unique opportunity for manufacturers to differentiate with unique designs and economy of production to shift gears for digital transformation. It enables automotive product designers and engineers to quickly create prototypes of products, components, and spare parts to easily test and manufacture in an economical way.
These designers use 3D printing to produce component or part prototypes before going for a complete mainstream production line. In a survey, it has been found that 69% of respondents agreed that they use 3D printing to produce complex parts. Air intakes, exhaust system parts, ducting, brackets, spacers, and grommets are commonly printed components and spare parts. A great example of this is GM Motors’ Cadillac CELESTIQ rear spoiler production at their Additive Industrialization Center (AIC).
“CELESTIQ is driving innovation across GM’s supplier community with what’s expected to be the highest volume of 3D printed components — more than 100 — of any GM production vehicle. This will include both structural and cosmetic parts, as well as polymer and metal pieces. Additionally, the CELESTIQ production facility itself will leverage additive manufacturing for tooling, fixtures, and gauges in the assembly process,” as stated by GM’s official newsroom. So, the next time you drive your CELESTIQ, you must know that the innovation has been developed by any of these Additive Manufacturing (AM) units.
Additive Manufacturing enables OEMs, suppliers, automakers, and Tier 1s the opportunity to open their doors for innovation at their designated centers. It gives them limitless possibilities to innovate and compete in the market. Additionally, AMs have led to the concept of micro-factories producing vehicles locally. Additive Manufacturing has a profitable impact on the complete product lifecycle of automotive development.
Virtual Reality (VR) Powered Assembly Unit for Faster Product Development
Beyond gaming, Virtual Reality (VR) is a revolutionary technology for modernizing automotive manufacturing processes. It transforms the way engineers design products, new cars, and components by keeping the development cost minimal, preventing delayed detection of design errors, saving time, and reducing the need for physical testing during the development process.
Let me tell you how Mercedes-Benz and Audi use Virtual Reality (VR) to transform their assembly and production lines, respectively. Mercedes-Benz introduced a virtual assembly station that empowers designers and engineers with motion control functionality to perform virtual assembly of parts and test them in different situations.
Similarly, Audi also embraced VR to introduce their “Virtual Reality Holodeck,” which creates 3D (three-dimensional) impressions of new models to assess them in the initial stages of conception. Adopted from the science-fiction series Star Trek, the “holodeck” is a virtual environment that showcases realistic and correct proportions of future models. It also saves their time, costs, and physical testing efforts.
Digital Twin for Process Optimization in Production Line
The automotive industry has been highly benefited by the introduction of ‘Digital Twin’ technology in the manufacturing process as a data-driven manufacturing process. The digital twin is a digital virtual replica of an object, component, or system designed to represent the realistic object in an accurate way. In the automotive manufacturing process, they use machine learning (ML), artificial intelligence (AI), manufacturing solutions, IoT (Internet of Things) sensors, and real-time advanced automotive analytics to create and test models.
Digital Twin for automotive production is available in two distinct characteristics: low-fidelity and high-fidelity digital twin. A low-fidelity digital twin gives a holistic view of the production process and physical performance of parts for real-time operational status and performance analysis. It helps in quality control, predictive maintenance, supply chain optimization, and stock-keeping units (SKUs) for the automotive industry. GM Motors has introduced a digital twin-based Virtual Factory Testbed that mimics plant-floor behavior to support the concept of build-to-order manufacturing. Volkswagen has been successfully cutting its production costs by up to 97% by using 3D printing to produce a certain automotive part at one of its manufacturing plants. According to McKinsey & Company, the use of digital twins has significantly cut product development time by 20 to 50 percent.
Final Words
According to a report from the Capgemini Research Institute, automotive firms can realize annual productivity gains of 2.8%–4.4% from smart factory initiatives, which signifies the profitable and productive role of digital transformation in the automotive manufacturing landscape.
Similarly, MarkNtel Advisors suggests that the Global Virtual Reality in Automotive Industry is going to reach around 41.32% CAGR during 2022-27 to minimize testing, design, and, R&D and manufacturing costs. Overall, automotive manufacturing is undergoing a major transformation with advanced technologies and is taking the digital lane for the future.
The digital push by technologies like industrial cloud, digital twins, intelligent robotics, artificial intelligence (AI), virtual reality (VR), and more to drive automotive manufacturing units for enhanced performance, operational excellence, and innovation (like digital automotive store) that ultimately enhances customer experiences (CX). The automotive world is embracing digital transformation in its design, production, and operational spheres to transform the overall production process.
Digital transformation is designing a new experience for auto-mobility.
Table of Content
- Introduction
- Digital Disruption: The route to Automotive Digital Transformation
- Digital Transformation with Advanced Technologies
- Digital Transformation with Industry 4.0 for Production
- Streamline Product Designing with Additive Manufacturing (AM)
- Virtual Reality (VR) Powered Assembly Unit for Faster Product Development
- Digital Twin for Process Optimization in Production Line
- Final Words
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Digital transformation expert and trusted advisor to global brands. With a career dedicated to navigating tech's evolution, she's led successful initiatives, driving businesses into the ecommerce future. Beyond the boardroom, she finds solace in mountain retreats, cherishing moments of inspiration with a bowl of Maggi. Whether crafting strategies or exploring new heights, Shruti's journey exemplifies innovation, resilience, and a zest for life's adventures.
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