48%

42%

10%

48% 50%

“

“

The Emergence of Digital Manufacturing

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The Emergence of Digital Manufacturing 

What Digital Means The Potential of Digital 

for the Future of Manufacturing Manufacturing Implementation 1 

The factory of the future relies on a digital thread that links the manufacturer, Resource/process productivity increase 3-5% 

machines, suppliers, shippers, distributers and end users. 

Labor productivity increase in engineering 45-55% 

Machine downtime reduction 30-50% Manufacturers get customer feedback in 

the form of data that can be acted upon, 

diverting supplier streams or material Inventory carrying costs reduction 20-50% 

purchases. 

Quality costs reduction 10-20% 

Reduction in maintenance costs 10-40% 

Modeling, simulation and analysis 

tools allow for troubleshooting in 

advance and automated in Reduction in time to market 20-50% 

process adjustments. 

“ On the factory floor, 

equipment linked by sensors 

can measure operating conditions 

and make adjustments when Approach the opportunity

parameters are suboptimal; supply bottom-line value backwards 

information on maintenance rather than technology forward. needed and timing; adjust and 

adapt production to coded 

materials coming 

through the 

system. 

– McKinsey Digital, 2018 

“ Humans working alongside 

collaborative robots are 

freed from repetitive or 

labor-intensive tasks. 

Challenges for Manufacturers 2 

Production can be done close 

to the customer, and in smaller, What platform to choose

customized batches, via 

additive manufacturing. Lack of digital training/culture 

Initial investment 

Cybersecurity to protect proprietary 

Shippers send alerts regarding information and processes 

capacity and scheduling and work is 

automatically readjusted or rerouted. Intellectual property; defining ownership 

in a collaborative product development 

environment 

Data analytics integration — being able to 

complete and fully utilize the feedback loop 

Customers receive goods that can 

accept and send information about Lack of coordination among departments 

usage and maintenance requirements. and divisions 

Robotics: 

e.g. Robots at a guitar 

company are used to apply 

polyester & urethane Simulation: 

coatings to guitars.4 

e.g. Running simulation tests Big Data and Analytics: during the design phase helps 

e.g. Data from sensors on a large tool manufacturer 

machinery like gas turbines gauge the static & dynamic 

is collected and analyzed to loads for its construction & 

develop tools and improve mining earth-moving 

efficiency.11 equipment.5 

Horizontal and Vertical 

Augmented Reality: System Integration: 

e.g. Wearable “AR” e.g. Using a common 

glasses can deliver repair set of processes & data 

instructions to a technician transactions, a group of 

on the factory floor, who Nine Technologies automotive OEMs & 

can look at diagrams while suppliers more effectively 

fixing equipment.10 That Are Transforming manages its packaging & 

parts supply chains.6

Industrial Production 3 

The Industrial 

Internet of Things: Additive Manufacturing: 

e.g. A car transmission 

e.g. A tool manufacturer facility uses Bluetooth- uses 3D printing of molds enabled devices in the for casting of metal parts at production environment to radically reduced lead time easily capture data & drive and cost.9 

it back to the operator to 

ensure accuracy in 

production.7 

The Cloud:

Cybersecurity: e.g. A cloud-based analytics 

solution enables a paper company e.g. Protocols & procedures 

to analyze paper making and are established to prevent 

converting processes. Real-time unauthorized access to IT 

feedback allows the operator to systems that leads to 

minimize risk of web breaks and intellectual property theft. 

optimize quality.8 

The MEP National NetworkTM Brings Digital Manufacturing to Its Clients 

Additive Manufacturing Cybersecurity Robotics 

Kreg, producing tools for the Caliente, providing Applied Engineering, Manufacturer woodworking industry innovative heating solutions machine shop 

Center for Industrial Purdue MEP (IN MEP Center) South Dakota Manufacturing MEP Center Research and Service & Technology Solutions (SD 

(CIRAS, IA MEP Center) MEP Center) 

Speed up the injection molding Automate information systems Increase production without Challenges process to save costs/improve quality; adding labor (critical labor 

protect these systems to shortage) 

achieve DFARS compliance 

CIRAS engineers and Purdue MEP and company South Dakota Manufacturing & Solutions company team designed a team enabled automation of Technology Solutions and 

mold insert solution using 3D data logging on factory floor company team identified the 

metal printing. This improved and improved part-tracking. need and the right technology, 

water cooling which enabled a Purdue MEP did a and calculated the ROI. 

faster molding cycle and cybersecurity gap analysis and Designed, integrated and 

eliminated unnecessary developed a gap response tested a cobot that loaded and 

handling of the jigs as they plan. unloaded parts into fixtures. 

cooled. 

$20K annual production cost Streamlined operations, Increased machine utilization Results savings and increased improved quality control, and by approximately 23%, created 

throughput. increased sales by $150K. The a process that is 100% 

DFARS gap analysis protected consistent and repeatable and 

the 25% of company revenue supported business growth 

derived from DoD work and without adding labor. 

averted data breach risks. 

When Does Your Company Plan to Implement? 

(Survey of small and medium-sized manufacturing leaders in Michigan) 

Artificial Intelligence Big Data Internet of Things Cloud Computing 

2% 10% 12% 

23% 

34% 30% 

42% 

48% 50% 

48% 

54% 

46% 

Source: Automation Alley, 2019 Already Implemented Plan to Implement Over the Next 5 Years No Plans to Implement Technology in Industry Report 

Visit: https://www.nist.gov/mep/mep-national-network Call: 1-800-MEP-4MFG

(1) Industry 4.0: How to Navigate Digitization of the Manufacturing Sector, McKinsey Digital, 2015 (2) Industry 4.0: Building Your Digital 

Enterprise, pwc.com, April 2016 (3) 9 Technologies Identified by Boston Consulting Group, The Future of Productivity and Growth in 

Manufacturing Industries, April 2015 (4) Meet the New Generation of Robots for Manufacturing, The Wall Street Journal, 6/2/15 (5) Four 

Companies that Use Simulation Software to Speed Design, PTC, 5/30/18 (6) Share to Gain: Unlocking Data Value in Manufacturing, World 

Economic Forum and Boston Consulting Group, January 2020 and Surgere.com/autosphere (7) 7 Ways a Japanese Smart Factory in the 

South Represents the Future of Manufacturing, IoT World Today, 7/19/17 (8) Manufacturing Transformation: Journey to the Cloud, A White 

Paper by AWS and Frost & Sullivan, 12/5/19 (9) Kreg Case Study (10) Industry 4.0: 7 Real World Examples of Digital Manufacturing in Action, 

Autonomous Manufacturing (AMFG), 3/28/19 (11) 10 Companies That Are Using Big Data, ICAS, 9/23/16