Reducing the risks of CNC manufacturing innovation

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Smart factories. Unmanned production. Remote monitoring software that gives live oversight of machine performance. Networked machines which alert in advance the need for maintenance, allowing for unprecedented uptime. It’s the sort of innovation that is a dream of many in the CNC manufacturing industry. And the efficiency it offers has the potential to revolutionise productivity and revenue at the same time.

In fact a recent PWC study into manufacturing innovation showed that “The most innovative manufacturing companies managed a 38% increase in revenues over the past three years.” That’s nearly four times the rate of growth of the least innovative companies in the sector.

But with the excitement and promise of innovation comes some uncertainty. While some in the CNC manufacturing industry are embracing new technology and its potential to help them innovate, others remain conscious of the challenges.

Key to managing the risks is understanding the risk/reward balance of your industry. It’s true that by moving first you may experience some failures along with your successes, but it’s also true that those who learn from their failures, embrace agility and improve the speed of delivery, will lead their field.

The benefits of innovation in CNC manufacturing are significant

• Efficiency and increased productivity, including the capability to produce a wider range of tools of higher quality
• Reduction in the cost of production
• Faster speed to market
• More intuitive software reducing the time and cost of training
• Minimised environmental impact through reduction of power and waste

So what are the risks that you might encounter? And how can you reduce the impact?

The risk: You can’t afford to fail

With companies like Tesla pushing boundaries and making money while doing it, other manufacturers are sure to follow. Their demands are going to be challenging to meet, and yet if you don’t, others will be waiting who can.

Managing the risk

It’s important to understand your failure tolerance, but it’s also important to remember that by removing the risk of failure altogether, you will remove your ability to be innovative.

In CNC manufacturing, you can reduce the risk by experimenting with 3D design simulation technologies that can simulate results, or by adopting agile practices, that utilise continuous reviews and cycles of improvements.

Furthermore, making your factory 'smart' doesn’t necessarily need to cost the earth. You can retrofit your existing equipment with new control systems rather than buying an entire factory of new machines. We have been moving into Industry 4.0 for some time now, and know that much of the required infrastructure is already there. All that’s require is the understanding of how to ensure it is all connected effectively.

It’s also important to make sure you keep your people abreast of the market by sharing information about technology trends from online articles, following social media accounts, and attending trade fairs and technology seminars. Make time to review the online content and training options offered by your technology provider so that your people are ready to come on the cloud journey with you.

The risk: Human error

We can be our own worst enemy. Deloitte suggests that 4 of the top 10 threats to the manufacturing industry involve employees. These include phishing (32%), errors and omissions (26%) as well as abuse of IT systems and information. And then there are those times that the wrong button is pushed or the manual back up is forgotten.

Managing the risk

Thankfully, new technology is managing the humans as much as the machines. Process automation reduces the chances of human error, real time reporting gives a real time view of any anomalies, and cloud-based technology adds security measures such as encryption and levelled security access, as well as automating essential data backups.

The risk: Innovation tools are developing faster than security measures.

The Internet of Things (IoT) is the future of manufacturing innovation. Connected technology that improves productivity, provides real time reporting and limits downtime through predictive maintenance.

There is an often-cited concern, however, that the more connected our technology becomes the larger our footprint for cyber security breaches becomes.

Managing the risk

In reality hacking vulnerabilities are more likely to occur when existing control systems have simply been retrofitted with connectivity capability over an unsecured network, without proper protection such as encryption.

A proper cloud management suite can actually provide more security than your original setup, offering access to a data centre grade level of security that would be impractical or costly to replicate on site.

Innovation is risky. Fact. But the cost of not innovating can be riskier. The CNC manufacturers who embrace IoT and cloud, embrace agility, collaboration and out of the box thinking. These are the innovators that will lead the game.

Considering shifting your manufacturing into the cloud? Read our whitepaper ‘How the cloud can give tool manufacturers the competitive edge’ first, for risks, rewards and practical steps for making the most of the move.

20 June 2019