McKinsey & Company (McKinsey)

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We help organizations across the private, public, and social sectors create the Change that Matters most to them. From the C-suite to the front line, we partner with our clients to transform their organizations, embed technology into everything they do, and build enduring capabilities. With exceptional people in 65 countries, we combine global expertise and local insight to help you turn your ambitious goals into reality.

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What are Industry 4.0, the Fourth Industrial Revolution, and 4IR?

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Topics: Digital Transformation

Organizations: McKinsey

To get there, six core enablers can boost the odds of success for your company’s 4IR transformation:

  • An agile approach that incorporates quick iterations, fast fails, and continuous learning, with teams transforming bundled use cases in waves to drive innovation and ongoing refinements.
  • Agile digital studios can help people collaborate effectively, providing designated space where team members from different functions are in proximity for co-creation.
  • The IIoT stack allows for seamless integration of IIoT infrastructure (both legacy and new) to build a stable, flexible tech backbone. Costs can by limited by leveraging existing systems with efficient investment in a new technology stack.
  • An IIoT academy uses adult-learning best practices to upskill the workforce, offering customized learning programs based on the unique individual needs.
  • Tech ecosystems partner with vendors, suppliers, customers, and related industries to source the latest capabilities, offering access to extensive data sets and creating opportunities for innovating together.
  • Transformation offices can form a governance hub to support the launch and scale-up of a lighthouse, making progress and priorities transparent, ensuring value continues to be captured, and accelerating change.

Read more at McKinsey Insights

Toward smart production: Machine intelligence in business operations

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Authors: Duane S. Boning, Vijay D'Silva, Pete Kimball, Bruce Lawler, Retsef Levi, Ingrid Millan

Topics: Manufacturing Analytics, Machine Intelligence

Organizations: McKinsey, Vistra, MIT

Our research looked at five different ways that companies are using data and analytics to improve the speed, agility, and performance of operational decision making. This evolution of digital maturity begins with simple tools, such as dashboards to aid human decision making, and ends with true MI, machines that can adjust their own performance autonomously based on historical and real-time data.

Read more at McKinsey Insights

Global Lighthouse Network: Unlocking Sustainability through Fourth Industrial Revolution Technologies

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Topics: sustainability, IIoT

Organizations: World Economic Forum, McKinsey, Ericsson, Henkel, Schneider Electric, Flex, Johnson & Johnson, Protolabs, Foxconn, Innolux, Western Digital

The Global Lighthouse Network is a community of production sites and other facilities that are world leaders in the adoption and integration of the cutting-edge technologies of the Fourth Industrial Revolution (4IR). Lighthouses apply 4IR technologies such as artificial intelligence, 3D-printing and big data analytics to maximize efficiency and competitiveness at scale, transform business models and drive economic growth, while augmenting the workforce, protecting the environment and contributing to a learning journey for all-sized manufacturers across all geographies and industries.

Read more at World Economic Forum News Releases

Transforming quality and warranty through advanced analytics

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Topics: manufacturing analytics, quality assurance

Organizations: McKinsey

For companies seeking to improve financial performance and customer satisfaction, the quickest route to success is often a product-quality transformation that focuses on reducing warranty costs. Quality problems can be found across all industries, and even the best companies can have weak spots in their quality systems. These problems can lead to accidents, failures, or product recalls that harm the company’s reputation. They also create the need for prevention measures that increase the total cost of quality. The ultimate outcomes are often poor customer satisfaction that decreases top-line growth, and additional costs that damage bottom-line profitability.

To transform quality and warranty, leading industrial companies are combining traditional tools with the latest in artificial-intelligence (AI) and machine-learning (ML) techniques. The combined approach allows these manufacturers to reduce the total cost of quality, ensure that their products perform, and improve customer expectations. The impact of a well-designed and rigorously executed transformation thus extends beyond cost reduction to include higher profits and revenues as well.

Read more at McKinsey

Smart quality in advanced industries

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Authors: Álvaro Carpintero, Ulrich Huber, Evgeniya Makarova, and Heiko Nick

Topics: quality assurance

Organizations: McKinsey

Technological advancements have enabled a fundamentally new way of delivering quality. Under this approach, companies view the quality function as a partner and coach that delivers value, not just a business cost. This perspective helps them integrate quality and compliance into regular operations while enabling speed and effectiveness.

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A manufacturer's guide to scaling Industrial IoT

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Authors: Andreas Behrendt, Enno de Boer, Tarek Kasah, Bodo Koerber, Niko Mohr, Gérard Richter

Topics: IIoT

Organizations: McKinsey

Despite tailwinds from declining compute power costs and improvements in IIoT integration, connectivity, and platform usability and management, few manufacturers have successfully scaled up their IIoT-enabled use cases in a way that achieves significant operational or financial benefits.

To understand the key enablers behind IIoT-based value capture at scale, we drew on our field work and extensive research of those companies successfully scaling IIoT to offer manufacturers ready-to-use guidance on strategically orienting their business, organization, and technology toward IIoT success.

Read more at McKinsey

Industry 4.0: Reimagining manufacturing operations after COVID-19

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Authors: Mayank Agrawal, Karel Eloot, Matteo Mancini, Alpesh Patel

Topics: COVID-19

Organizations: McKinsey

Industry 4.0 technologies were already transforming manufacturers’ operations before the pandemic. Now adoption is diverging between technology haves and have-nots.

Read more at McKinsey