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How Small and Medium-sized Enterprises Can Embrace Industry 4.0
Rather than how traditional industries embrace Industry 4.0, it is more about how traditional manufacturing enterprises transform and upgrade.
Rather than how traditional industries embrace Industry 4.0, it is more about how traditional manufacturing enterprises transform and upgrade.
Currently, most traditional domestic enterprises are between Industry 2.0 and Industry 3.0. Only a few large manufacturing enterprises like Haier and Foxconn have achieved Industry 4.0 processes, such as Haier's connected factories, Foxconn's robot workshop renovations, and robot design, production, and export. The premise is that these two companies had opportunities to realize Industry 4.0. Haier's achievement relates to its global integrated production and sales realized over a decade ago, allowing timely introduction of many advanced foreign production technologies; Foxconn has been producing for well-known foreign companies like Apple for over a decade, where some precise component assembly requires the latest technology, which can be seen as a forced upgrade of production equipment through cooperation with foreign enterprises.
From the product perspective, apart from highly integrated circuit boards and other electronic devices, the domestic market currently does not have a large demand for Industry 4.0 standard production. However, facing the rapidly increasing costs in labor, management, warehousing, logistics, and other areas, many enterprises have a significant need for transformation and upgrading. For example, Wahaha, although a food production company, has implemented robotic operations in most of its production processes. Besides large enterprises having sufficient capital to match Industry 4.0 production lines, it is difficult for small and medium-sized enterprises to achieve this currently. This requires enterprises to be highly informatized and data-driven, and also demands that workshop workers have sufficient knowledge and operational skills. Many domestic manufacturers have introduced automated production equipment from abroad but have converted it into semi-automated equipment for various reasons.
However, these traditional enterprises will sooner or later realize Industry 4.0, or they will be eliminated by the new industrial era due to low production efficiency and heavy pollution. How should this be achieved?
First, you should clearly understand your development situation. If you are indeed facing elimination due to pollution, low efficiency, and other reasons, you need to find ways to renovate production facilities, discard the original polluting and inefficient parts, and consider Industry 4.0 standards. If full implementation is not possible, partial implementation can be done step by step.
Second, if your production workshop cannot be upgraded, you can outsource production to manufacturing enterprises that meet Industry 4.0 standards. This will move your enterprise downstream in the industrial chain, becoming an operator rather than a manufacturer.
Third, disrupt by completely breaking the original production model. This includes innovating production equipment and redesigning a production model fully compliant with Industry 4.0, such as smart hardware.
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