This is usually defined by industry commenters as an intelligent factory utilising robotics, AI, and internet of things (IoT) technologies. Actual implementation focuses on installing sensors to collect data of products and equipment at each phase of the production process.

Meanwhile, robots should work autonomously and collaboratively to achieve often complex actions. Each processing station and production can work independently or in collaboration and self-adjust procedures in synch with the intended process.

Summarised in a Deloitte report¹, connectivity and convergence are the underlying themes in Industry 4.0 as applied to manufacturing systems. Ideally, 'it is a leap forward from more traditional automation to a fully connected and flexible system,' the key features of such a manufacturing system can be summarised as: responsive, adaptive, and connected.

An April 2022 release by market research firm Vantage of Smart Manufacturing Market Growth and Trends² report expects the smart manufacturing market to reach a valuation of US$237.4 billion by 2028, driven largely by demand in the retail sector, however.

Interestingly, Asia Pacific has been singled out by the report as the fastest regional to adopt smart manufacturing. Examples include India's 'Make in India' initiative, which has zeroed in on automating in-house manufacturing facilities.

Reality check

In Malaysia, the country's digital economy focus, which includes developing smart communities among many other components, is anchored to the same transformational trajectory as the rest of the world

As smart manufacturing is another important component of the nation's thrust, a recent industry forum set out to³ probe the current state of smart manufacturing in Malaysia.

Moderated by Karamjit Singh, CEO of Digital News Asia, the discussion featured industry speakers: Rejab Sulaiman, Vice President, Products & Innovation of TM One; Barry Leung, General Manager of SmartMore; and Prof Dr Yeong Che Fai, Chairman of DF Automation & Robotics.

As part of the introductory round, the panellists were asked for their opinion on where Malaysia was today as a nation on the road to Industry 4.0 maturation. On a rough scale of 0-5, the consensus was deemed to be average - 2.5. This could be related to 98% of businesses in the country being small and medium enterprises (SMEs), which could barely rate 1+, while those larger companies, already on the transformational road, were pushing 4+.

Both SmartMore's Leung Prof Dr Yeong opined that resistance to adoption could be attributed to many factors: low minimum wage rates in the country preclude the need to adopt digital (such as robotics) on a large scale; no pressure on profit margins, and also low awareness of digitalisation, especially among smaller companies.

On the positive front however, all three speakers pointed to more digital projects and a steady increase in awareness of the benefits of digitalisation in the sector.

• Deeply experienced with solutions across the entire range of areas such as cybersecurity, smart services, business analytics, data centre, cloud and the internet, TM One's Rejab outlined the company's proven track record to unlock the potential of smart services for businesses.
• Serial entrepreneur and advocate for smart industrial automation solutions, Barry Leung said the Shenzhen-based AI unicorn business, SmartMore, set up in Singapore as part of its regional expansion, helped by a recent US$200 million investment round from Chinese venture capital companies. Slightly more than two years old, the company focuses on smart manufacturing solutions and has rapidly expanded with more than 100 smart manufacturing projects on board so far.
• Also an associate professor at Universiti Teknologi Malaysia, Prof Dr Yeong said DF Automation & Robotics was founded in 2012 to develop automated guided vehicles, food delivery robots and so on.

Rejab also pointed out that due to the pandemic, manufacturing companies today said their top three (3) priorities are to build resilience for their business and operating models; to enhance operational excellence; and to automate routine human tasks.

Although digital adoption is still low; the sector is starting to actively explore these solutions.

Bringing new realities

Some of the insights from the panel were recently confirmed by reports from various analysts and commenters.

SmartMore's Leung pointed out that the technologies underlying smart manufacturing were pretty mature.

Many commenters generally agree on the key trends arising from these technologies in manufacturing. For example, a Forbes commentary cited⁴ together StarUs Insights⁵, a platform scouting startups, has put pointed to some current contributors to Industry 4.0, a few or which are quickly noted here:

1. IIoT, the industrial internet of things I the use of interconnected devices to collect data.
2. 5G and edge computing, will enhance reliable, low latency connectivity; the use of private 5G networks on premises will eschew much of the need for cables and also enhance data security.
3. Predictive maintenance, which in a manufacturing is the use of IIoT device data and artificial intelligence to monitor patterns in components and machinery and calculate which is part is likely to fail.
4. Digital twin technology can help simulate the supply chain to see how machinery operates. According to Deloitte, 70% of manufacturers⁶ may be using this technology to carry out evaluations.
5. Extended reality technologies such as augmented and virtual reality (AR/VR) is expected to support enhanced product design, humans on assembly lines, training and planning, and is part of a gradual move into the metaverse. One example of this an extension of which is scenario planning for both short and long term disaster responses.
6. Automation, driven by AI, is linked to better accuracy, productivity and reduced costs. Fully automated factories, dark factories do not need humans to be on site.
7. Robots and cobots are another aspect of automation. Cobots are those that work alongside or assist humans - such as exoskeletons to safely help manoeuvre heavy parts.
8. 3D printing has become more efficient, scalable and cost-efficient. Also called additive printing (AM), some commenters see this as a game-changer, which could enable a shift from a centralised to a distributed model for production across different locations.
9. Blockchain technology and distributed computing technologies such as non-fungible tokens (NFTs) will help manufacturers monitor supply chains.

These all underpin the importance of manufacturing as the core building engine of our society.

In his introductory remarks, Rejab stressed that, "Today's TM One is not just about offering digital connectivity, it's not just about fibre, it is also about wireless - both 4G and 5G: we are building the digital infrastructure foundation that we can offer all of our enterprise and government customers. These sectors range across healthcare, banking, energy, education, and others."

TM One has built a strong foundation to help industries revolutionise and reshape businesses and cities, he said, when outlining an array of technologies, expertise and relevant skills readily available to drive transformation in Malaysia's manufacturing sector from TM One.

"Digital transformation (DX) is a process of moving to a technology-enabled platform to positively change a business model while providing new revenue streams and after-sales opportunities."

With smart manufacturing, the end objective of any initiative is to bring in automation by digitalising very aspect of the touchpoints from digital supply chains, connected and highly informed customers: convergence or linking of the business imperatives with operational data.

The journey comprises connecting machines to systems, monitoring and tracking, analysing the data, applying intelligent devices towards semi-automation - which is all part of a process towards full automation of production and the digitalisation of the ecosystem: one which is aiming for 100% work efficiency.

Smart skills needed

Rejab pointed out that advanced manufacturing capabilities in Malaysia will find fresh impetus with the roll out of 5G's speed, low latency and other advantages. "Initial 5G rollouts will start with KL, Cyberjaya, Penang and so on. In terms of smart manufacturing, is expected to experience immediate impact for larger manufacturers in the beginning, especially with the use of the massive number of sensors [as in massive machine-type communications or mMTC]; time critical responses, which needs 5G specs, [as in ultra-reliable low latency communications or uRLLC]; and high capacity services [as in enhanced mobile broadband or eMBB]."

As manufacturers in some sectors are already using IoT and 5G enhanced connectivity to build more agile production - such as with automated guided vehicles (AGVs), and autonomous mobile robots (AMRs) - understanding what a smart factory is important, said Prof Dr Yeong.

UK based independent research and technology organisation, TWI Ltd (formerly the British Welding Research Association⁷), defines a smart factory as 'a digitised manufacturing facility that uses connected devices, machinery and production systems to continuously collect and share data. This data is then used to inform decisions to improve processes as well as address any issues that may arise.'

Since the technologies used include AI, big data analytics cloud computing and IIoT, more technical skills are needed and today's manufacturing workers need to be hired for their brains as well, traditionally - their hands.

These skills span coding to handling AI pored robots, which can all be learned by employees and students ready to develop these competences.

Initiatives from government are of course welcome to promote the skill sets needed for smart manufacturing, said Prof Dr Yeong. "From the university perspective, we can help prepare our students, encouraging them to work on projects in smart manufacturing; government encouraging projects - universities face the challenge of providing a foundation as the scope demanded by industry is too vast."

Pushing forward

Around the world, commenters have⁸ noted increasing government support for smart computing, which includes investing in IoT and industrial 3D printing research and development for IoT.

Malaysia too is rolling out initiatives such as the country’s Industry4WRD policy⁹.

Furthermore, although low adoption has been linked to smaller concerns, Rejab in response to a question about using smart manufacturing solutions in kampung or rural based businesses (sometimes called cottage industries in some western parts ) pointed out that: "Smart manufacturing is not just about robotics; it is about putting together solutions that are appropriate to your factory. Businesses can install IoT sensors into your plant operations, and collect insights for dashboard reporting. There are many uses for these solutions because the core lies in the use of sensors throughout your chain and the use of data from it."

The encroaching reality is that more and more companies are facing the problems of costs, and will realise it is time to adopt smart solutions, said Prof Dr Yeong, adding that adoption levels are also aligned to raising the level of awareness, and further government encouragement will help accelerate digital adoption.

Echoing two themes noted by industry watchers, the panel agreed that trust and confidence will be needed to build awareness and dispel much of the uncertainties arising from the pandemic era

Another is to refresh scenario planning to offset future disruptions in the industry, a process explored by TM One during one of its leadership events, LEAP 2020¹⁰.

Coupled with selecting the right solutions, building deeper partnerships between manufacturers and customers are important parts of transformation, affirmed TM One's Rejab, who later added: "The next few years will indeed the most important ones for Malaysia's manufacturing, warehousing and associated industries to build for sustainable growth and generate value in the digital arena."

This article first appeared in Disruptive News Asia¹¹

1 The Smart Factory - Deloitte Report —
https://www2.deloitte.com/content/dam/insights/us/articles/4051_The-smart-factory/DUP_The-smart-factory.pdf
2 Global Smart Manufacturing Market | Vantage Market Research — https://www.vantagemarketresearch.com/press-release/smart-manufacturing-market-149600
3 Top In Tech Series - EP23: Smart Manufacturing in Malaysia - Reality Check - YouTube — https://www.youtube.com/watch?v=HhYWOgKD-BA
4 The 10 Biggest Future Trends In Manufacturing — https://www.forbes.com/sites/bernardmarr/2022/01/25/the-10-biggest-future-trends-in-manufacturing/?sh=4eb91ffd4d56
5 Top 10 Manufacturing Trends & Innovations for 2022 | StartUs Insights — https://www.startus-insights.com/innovators-guide/manufacturing-trends-innovation/
6 7 Amazing Examples of Digital Twin Technology In Practice | Bernard Marr — https://bernardmarr.com/7-amazing-examples-of-digital-twin-technology-in-practice/
7 What is a Smart Factory? (A Complete Guide) - TWI — https://www.twi-global.com/technical-knowledge/faqs/what-is-a-smart-factory
8 Top 10 Smart Manufacturing Trends for 2022 | ATS — https://www.advancedtech.com/blog/smart-manufacturing-trends/
9 Industry4WRD Readiness Assessment | Official Website of Malaysia Productivity Corporation — https://www.mpc.gov.my/industry4wrd/
10 Jumpstarting Malaysia's digital economy with scenario planning — https://disruptive.asia/jumpstarting-malaysias-digital-economy-with-scenario-planning/
11 Making Smart Manufacturing Real in Malaysia - https://disruptive.asia/making-smart-manufacturing-real-in-malaysia/

The post Making Smart Manufacturing Real in Malaysia appeared first on TM One.

The post Smoothing the Transition to Smart Manufacturing appeared first on TM One.

Pos Malaysia Group (“the Group”) started as a traditional postal service and has since expanded to provide financial services and supply chain solutions.  As reinvention became necessary, Pos Malaysia embarked on a digital transformation plan to redefine its business model.

“The rapid adoption of technology has brought about new challenges to our business. Pos Malaysia knew it must adapt to digitalisation to remain relevant in the industry and to support the changing trend in customer behaviour, from physically going to retail stores to buying goods online,” said Group Chief Executive Officer, Syed Md Najib.

When faced with digital disruption, Pos Malaysia encountered difficulties due to its outdated systems, traditional business model, and a weakening outlook for selected business segments. Legacy systems posed a challenge for the Group when competing with digital-native entrants. Amidst this environment, the company has engaged in notable initiatives to provide consumers with fast and secure delivery, as well as a seamless customer experience. This transformation is crucial for the company to build a sustainable business, one that is relevant in the digital era.

Simplifying the customer journey through digitalisation

In 2019, Pos Malaysia committed to a new mission – to build a truly customer-centric organisation. The Group set out a three-year modernisation and transformation plan to remain relevant, competitive and profitable.

A major transformation area was in the digitalisation of customer-facing functions. Recognising the growth of the digitally-driven consumer, Pos Malaysia revamped its website and enhanced its mobile application to improve customer experience. With over 1.3 million downloads of the mobile app, there was an average of 200,000 monthly users with app-related transactions from January to July 2020.

Handwritten consignment notes have been replaced by the e-consignment note which can be generated via the website or the mobile app. Customers can print the e-consignment note at Pos Laju outlets, kiosks and selected Pos Laju EziDrive-Thru. As of September 2020, there have been 1.5 million e-consignment notes generated - thus reducing errors and enhancing efficiency.

Pos Malaysia’s customers can track their parcel via the Track and Trace system that is available on Pos Malaysia’s website and mobile app. The system allows customers to monitor their parcels via the tracking number or by scanning the bar code. 

Pos Laju SendParcel, an online shipping platform, is also integrated into the mobile app and allows customers to post their parcels without having to leave their home or office. Customers only need to schedule for pick-up at their own convenience and Pos Laju will come to collect the parcels.  The platform has expanded its service by offering international deliveries to over 200 countries, connecting local SMEs and e-commerce businesses to the overseas market. As at the end of January 2021, over 7 million parcels have been shipped via SendParcel.

Additionally, the implementation of the AskPos chatbot and live chat channels gives customers a self-service option to resolve simple issues. Customers are met through real-time conversations and can obtain personalised help online. Since its inception, over 2.9 million conversations were initiated on AskPos, or about 40,000 to 60,000 customer conversations per week – reducing contact centre operation costs.

E-insurance service is Pos Malaysia’s most recent initiative in providing its customers a better service experience. With e-insurance, motor vehicle insurance renewal is made easy, convenient, and available at any time. Pos Malaysia is planning to add more insurance providers and more insurance products soon, to offer its customers multiple options to suit their requirements.

Moving forward, customers can look forward to more services in Pos Malaysia mobile app which include financing, wasiat, will, remittance and others.

Streamlining and securing processes with digitalisation

While the implementation of e-consignment notes has improved customer experience by reducing over-the-counter wait times and human errors, the self-service parcel lockers (i.e Pos Laju EziBox) has been added to give convenience for customers to collect and drop-off Pos Laju items at their own time.

Pos Malaysia’s customers also have an option to pay their utility bills via the Pos Automated Machines that is available at selected post office. Launched last year, customers can pay their utility bills via cashless methods, at their own convenience and reduces over-the-counter congestion.

Pos Malaysia is also giving solutions to their business customers through Pos Digicert, a subsidiary which is responsible for the creation of digital identities through the use of digital certificates. The Pos Digicert Digital Signing feature is another solution that incorporates digital signatures for the company’s BizClient Ivest server and digital certification services. The option safeguards organisations from data fraud, data tempering, and authenticates documents simultaneously, thus enhancing the trustworthiness of the documents in hand. Organisations can now move from a physical certification environment to one that is digital, validated and secure.

As part of Pos Malaysia’s transition into entering Industrial Revolution 4.0 (IR4.0), the company integrated Robotic Process Automation (RPA) into existing Standard Operating Procedures (SOP) for both front-end and back-end processes of our cargo operations at the Kuala Lumpur International Airport (KLIA).

Pos Aviation, a subsidiary of Pos Malaysia that handles in-flight catering and cargo has implemented Robotic Process Automation (RPA) to assist the cargo handling operations team. These robots act as a digital workforce to streamline operations and expedite key business activities thus ensuring efficiency. The human workforce can focus on more valuable work as the system automates repetitive mundane task and increase productivity that are compounded across thousands of transactions.

Pos Malaysia is also improving its procurement process efficiency as it switches from manual processing to an online procurement system. The end-to-end procurement system, from purchase requests, orders to payments, have benefited from the upgrade. Advantages include an overview of the entire process, reduced leakages, improved documentation storage and better budget monitoring.

Promising speed and digital trust with cloud CDN technology

The benchmark for successful digital transformation lies in the ability to provide swift and reliable service. Digital native entrants, in particular, could press on these attributes with its integrated and flexible platforms compared to larger organisations with multiple, siloed systems. As such, Pos Malaysia had a daunting task in hand – to transform its IT infrastructure and mitigate the disadvantages.

Pos Malaysia integrated cloud CDNs (Content Delivery Networks) to provide swifter service delivery for its websites and applications. These technologies reduce information travel distance and server workloads, resulting in lower latency and faster content delivery. The existing Wide Area Network (WAN) services also support cloud CDNs, providing added protection in the information transformation process.

Moreover, to ensure stability and scalability of its software solutions, the Group has introduced Performance Testing Services in 2019. This step helps Pos Malaysia evaluate its system’s performance under normal and anticipated peak conditions. Consequently, it ensures that end-users do not encounter any performance issues when using the applications. Pos Malaysia customers can now enjoy fast, stable, and secure experiences on digital platforms.

Creating a secure infrastructure enforces digital trust in customers, especially when it concerns sensitive personal customer information. A malware attack in 2019 made the Group take a proactive stance in cybersecurity defence. Pos Malaysia has complemented its cloud adoption with intelligent threat detection systems. These systems safeguard end-users and networks from malware and confidential data breach attacks. The digital transformation plan remains secure due to this vital step, and the company now boasts zero complaints from data breaches.

Hitting ideal processing capacity with automation

Pos Malaysia continues to ensure that it is capable to handle the surge in demand driven by e-commerce growth. As such, the Group continues its pursuit in optimising operational efficiency. With parcel volume reaching 800,000 a day during peak seasons, Pos Malaysia commits to leverage on automation for its distribution and fulfilment centres.

To date, Pos Malaysia has equipped 35 distribution centres with semi-automated sorting systems. These upgrades were crucial in easing the strain on manpower, resulting in greater capabilities and lowered costs. The improved sorting systems were especially beneficial during peak seasons, where deliveries can go up to over 8 million parcels per month, as experienced in the 11.11 online mega-sale. As such, the Group plans to continue this initiative by deploying semi-automated systems across 20 distribution centres this year.

To further supplement the vision of an ideal processing capacity, the Group is also investing in fully-automated and integrated fulfilment centres. Pos Malaysia aims to launch its first regional Mini-Integrated Parcel Centre (IPC) in Senai, Johor, to cater for volume growth, with a target to process a total of 1 million parcels daily.

Driving growth by forging strategic partnerships

To remain competitive in the industry, Pos Malaysia forged strategic partnerships to diversify its revenue stream. The Group’s most recent partnership with Allianz Life Insurance aims to improve life insurance accessibility for all Malaysians. Together, they have launched PosLifeCare, an affordable life insurance plan with a premium from as low as RM0.14 a day.

The Group formed a partnership with CollectCo, a leading parcel delivery and collection network. Through this collaboration, Pos Malaysia secured an additional 1,255 partner outlets. The Group was able to expand its customer reach while achieving financial sustainability through agent and partner-operated outlets.

The main focus for Pos Malaysia at this juncture is to win market share in the fast-growing e-commerce driven courier delivery segment. The investments made by the Group in technology augurs well for the future. Pos Malaysia is well-placed to address the shift in consumer demand for digital services.  

The post CELEBRATING SUCCESS: Pos Malaysia Redefining Business with Digital Strategies and Partnerships appeared first on TM One.

With an eye on the manufacturing sector, a recent online industry debate — the Smart Manufacturing Circuit (SMC) held mid-December 2020 — conducted a reality check of technology-induced benefits and values.

Moderated by Maznan Deraman, head of Innovation Solutions at TM One, the enterprise solutions arm of Telekom Malaysia, the leadership panel comprised Eng Chew Hian, Business Development director of Huawei Cloud, and Sudev Bangah, managing director of IDC ASEAN.

Given the rapidly shifting global economic ecosystem, manufacturers are earnestly looking for the right matrix of technologies, people and process changes that will enhance competitiveness and get ahead of the pack, agreed the speakers.

To extrapolate best practices from current industry case studies, the panel distilled several short to long term strategic priorities. The discussion included a deep dive into the challenges faced by the manufacturing business, which largely reflect the overall industry scenario, i.e. keeping abreast of the competition in a fragile and fast-changing environment.

According to IDC's Asia Pacific Insights Annual Survey 2019, 78% of the region's manufacturing businesses saw declining sales, while 74% reported demand variability, and 37% pointed to increased competition, and lack of innovation (27.8%), as well as rising internal costs (20.4%).

In addition, 24% of manufacturing costs were attributed to downtime, 90% of maintenance work was categorised as 'crisis work' to fix breakdowns, and the amount by which total downtime cost was usually underestimated by 300%

Bracing up for the Next Normal

Addressing these business challenges demands transformative strategies to deliver results, declared all three panellists. These include improved supply chain performance, enhanced operational excellence and operational risks, stronger focus on product innovation and tapping new markets and customer segmentations.

However, the road that must be travelled has to be built on digital frameworks, the panel continued. On 1st January 2021, Malaysia's government said its 12th Malaysia Plan (12MP) will increase focus on new economic drivers such as the digital economy in tandem with the green economy. In line with this, a national digital policy is expected in Q1 of 2021.

Sudev Bangah cited IDC's studies of organisational recovery, which highlighted an increased prioritisation of business resiliency. "Organisations need to look forward, and it is important for strategic priorities. Moving towards targeted investments — AI, IoT, robotics, cloud, machine learning — are typical areas for investment."

IDC's APAC studies confirmed that when building a digital transformation use case, clarifying strategic priorities will better build resiliency, and enhance yield from digital implementations, Sudev explained.

Speaking of four value chains of manufacturing, he said: “Across the board, manufacturers are looking towards technology adoption to drive strategic priorities: engineering oriented; technology oriented; asset oriented and brand oriented.”

A major component of digitalisation is cloud computing, Huawei's Eng pointed out. Earlier in 2020, TM One announced an agreement with Huawei as another step in its aim to aggregate partners and solutions to become the country’s first locally owned end-to-end comprehensive cloud AI infrastructure provider.

He outlined several cross-industry use cases which included Alpha Edge implementations such as one that uses drone and AI image processing applications to perform aircraft surface inspections “(This solution’s) emphasis on security, trust, speed and robust scalability,

TM One’s Maznan said, “Some of the benefits that cloud delivers to companies include bringing products to market faster; enhancing performance and productivity more efficiently; heightening competitiveness; simplifying and speeding up modernisation plans; as well as more effective collaboration with ecosystem partners.”

“Using digital solutions to achieve enhanced, connected production, real-time manufacturing and predictive analytics is part of the process of the transformation of the ecosystem, which includes people and existing processes.”

As an example, Maznan detailed the company’s Overall Equipment Effectiveness (OEE) — a tool for manufacturers to tackle efficiency and productivity gaps without human intervention. “OEE helps to reduce common causes of equipment failure, maximise workforce effectiveness, and gives the capacity to visualise overall performance more easily.”

Transition to Industry 4.0

Tackling the bigger picture, the panel agreed that, to varying degrees, pandemic-related lockdowns procedures have indeed accelerated digital disruption. “People and businesses have had little choice: to take control of their transformation or bow out of the arena.”

Government initiatives to encourage smart manufacturing include the international trade and industry ministry’s (MITI’s) Industry4wrd policy. This framework includes three core elements and eight core thrusts designed to create a pathway for enhanced productivity, job creation, and growing a high-skilled talent pool in the manufacturing sector.

Atillea Razali from SME Bank Malaysia presented another example, in a separate session, on technology grants such as SME Technology Transformation Fund (STTF), which offers financing up to RM3 million to help in various transformation projects.

Sourcing intelligence

In the concluding sequence, the panel emphasised that, "Understanding and optimising operations is interlinked with the use of data and analytics."

Bangah commented: “The acceleration of digital transformation is causing a rethink among manufacturers. This may call for a tweak to the 2021 playbook for many manufacturers: as an example, digitalising your supply chain will be one of the most critical areas.”

Bangah concluded by citing one of IDC's key takeaways for 2021: “Technology is one complementing element, to enable your business to reach a new level on your journey. It is critical to find a partner on this journey who can offer all the support to enable a smoother journey."

Maznan's concluding summary included TM One Alpha Edge offerings to manufacturers to smooth the transition to smart manufacturing In tandem with the uphill recovery this year. “This is coupled with an ongoing partnership, as well as industry-specific solutions that offer a more holistic collaborative path to manage the transformation effectively.”

This article was first published on Disruptive.Asia (https://disruptive.asia/2021-smoothing-transition-smart-manufacturing-malaysia/)

The post 2021: Smoothing the Transition to Smart Manufacturing in Malaysia appeared first on TM One.

Digital technologies form a key component of generating recovery and building resiliency for the industry, a fact well-recognised by manufacturers across Malaysia and the Asia Pacific, said Sudev Bangah, Managing Director of IDC ASEAN, at the recent Smart Manufacturing Circuit 2020 virtual event organised by TM ONE. IDC analysis has also found that many companies are shifting towards targeted investments in machine learning, cloud, robotics, and internet of things (IoT) to drive a path through future crises as well as to secure growth.

Meanwhile, Maznan Deraman, Head of Innovative Solutions at TM ONE, the enterprise and public sector business arm of Telekom Malaysia Berhad (TM) believes, “Digital adoption brings great potential for improving product quality, increasing productivity and creating more high-skilled jobs.” He shared how TM ONE will support the manufacturing industry’s digitalisation journey.

Data-driven Efficiency

Data is deemed to be crucial for building a resilient manufacturing company. Understanding how well each part of the production line works will help managers minimise wastage, speed up production, and produce better products. Manufacturers need to think about what data they need and what tech they can use to collect it, shared Sudev.

Another crucial aspect is data analytics. Most manufacturers currently record data on paper and transfer it manually to a software for analysis, explained Nazman Fariz Mohd Noh from TM ONE’s Smart Manufacturing Solutions. “This is labour intensive and prone to human error.”

TM ONE has an analytics tool that helps companies gain deep visibility to their production processes. The Overall Equipment Effectiveness (OEE) platform delivers an overview of all the processes within a factory using data collected from IoT devices. Supervisors can use this to optimise production hours, identify faulty machines, redistribute production, and monitor products for defects.

The platform consolidates real-time data for each machine, including its schedule, availability, and effectiveness. Managers can chart this on a graph to monitor individual performance over time, or zoom out to see how the overall production line is faring.

The OEE shares all data via online through TM ONE’s Cloud Alpha platform. Staff can monitor the status of each machine anytime and anywhere, said Nazman Faris.

Minimising Costs through Predictive Maintenance

Predictive maintenance is a key feature of the OEE. This will help cut time and costs substantially. Manufacturing companies report that more than a fifth of its costs are due to downtime, and that 90 per cent of maintenance work is eaten up by having to fix breakdowns, Maznan shared.

The OEE platform monitors levels of concern for each machine: low means it’s doing well; middle to high means it might need immediate attention. It also automatically compiles a list of machines with higher attention scores, arranged according to severity.

Once a machine has been identified for maintenance, the technician will take a look at its timeline, alerts, and any notes on the OEE to carry out the repair work more efficiently. Machine experts can also study this information to analyse causes and develop better fixes.

Other Must Have Solutions for Your Digital Operations

In addition to the OEE analytics platform, TM ONE also offers cloud and cybersecurity tools to protect companies’ data. “Nowadays, we can’t have all information or systems on premise, because we know for a fact that on premise solutions carry a certain level of risk,” Maznan said. For instance, businesses may not have the proper disaster recovery services to react to potential cyber-attacks, he explained.

TM ONE is collaborating with technology companies such as Huawei to develop new tools for Malaysia’s manufacturing sector. Eng Chew Hian, Business Development Director at HUAWEI CLOUD Malaysia, shared details of how artificial intelligence (AI) can be used to improve manufacturing processes.

Huawei’s drone inspection tool uses high definition (HD) cameras, 5G connectivity and AI image processing to study the surfaces of planes. Aircraft technicians run on a tight schedule when conducting safety checks between flights, and manual inspections are time- and labour-intensive.

The drone flies through the plane to search for scratches, corrosions, and loose screws. It also cross-checks the model of the plane to ensure each part meets specific safety standards.

Huawei has also developed an AI image analysis tool for safer aircraft manufacturing. It uses thermal sensors to find gaps when wings are welded onto a plane. Planes have to withstand tremendous vibrations and wind speeds, and any gaps could be disastrous, Eng explained.

“Although the movement control order was gradually lifted, the overall impact on the whole supply chain has been dramatic!” said Maznan. Digital technologies such as IoT and data analytics are helping Malaysia’s manufacturing plants navigate the uncertainties in a recovering economy.

The post Forging A New Future for Malaysia’s Manufacturers appeared first on TM One.

But, as with many other countries before it, it needs to avoid the middle income trap and prepare for unprecedented disruption to global industries, including manufacturing. “Malaysia’s forte is in manufacturing-related angles,” noted Jeyasigan Nair, Director of Advanced Technology, Research and Development, Malaysian Investment Development Authority. “Manufacturing is one of the pillars to push for us to attain the status of a developed country,” he said at the TM ONE Smart Industry Showcase in Kuala Lumpur recently.

Enter Industry4WRD, Malaysia’s iteration of Industry 4.0. This is the country’s first step in embracing the digital revolution that has transformed public and private sectors across the world, and it will focus on driving growth in manufacturing and related industries. TM ONE, leading digital solutions provider and Telekom Malaysia’s enterprise and public sector business arm, has recently launched 10 Transformative Smart Solutions to support Industry4WRD during the Smart Industry Showcase. These solutions use big data, IoT sensors and smart technology to create smart systems across multiple industries.

TM ONE recently spoke to GovInsider on the practical ways to achieve Industry4WRD.

What Industry4WRD looks like

At the Smart Industry Showcase, Ir Ts Azizi A. Hadi, former EVP and CEO of TM ONE and currently Telekom Malaysia’s Chief Network Officer, shared some ways that TM ONE supports the development of Industry4WRD.

1. Smart buildings

TM ONE’s Smart Building Management Solution optimises energy usage with a three-pronged approach: integrated third party sensors, smart analytics and advanced visualization tools. Building managers can collect data and control devices within the building through a centralised monitoring platform. The data can provide insights on footfall, traffic and asset’s usage. It can also tell maintenance teams when would be the best time to carry out maintenance work, ensuring a safe and comfortable experience for tenants.

“Data from energy usage can provide insights on bigger things,” said Azizi. For example, when the electricity bill is higher than projected, it could be a sign of a mismanaged air conditioning system. Building managers can then choose to install a centralised and automated control system based on demand.

“Without these data systems, we cannot identify where the waste is coming from. And when you introduce energy savings equipment, we can easily measure the KPIs with these data,” he added.

This energy monitoring system is currently in trial in several government buildings across Malaysia.

2. Smart farming

The agriculture industry, in particular hydroponics, can benefit greatly from Industry 4.0 technologies. Sensors can detect the pH level and temperature of the plants’ environments using electrolytes in the water. This data can then be transmitted onto a central system accessible through mobile phone. Farmers can also control the plants’ environment in real time if anything is out of place. For example, they can turn on the air-conditioning if it becomes too warm or they can engage the system to automatically dispense fertiliser if fertiliser concentration is too low. Farmers can also glean insights on crop data and patterns from the data collected to optimise their yield all year round.

Smart systems like these can also be used beyond hydroponics on any type of farming - it can be used to check on soil acidity and water level, for instance. One of the premises in the Malaysian Agricultural Research and Development Institute has installed and started running this system.

3. Smart traffic

In cities like Kuala Lumpur, people spend almost a whole hour being stuck in traffic in their daily commute, according to the TomTom Traffic Index. This may be set to change, however, with the introduction of smart traffic lights from TM ONE.

These traffic lights reduce waiting time at junctions, effectively reducing both traffic congestion and carbon emissions. They can also monitor traffic in real-time and collect data about road usage. This data can then help in future road-building and town-planning.

Sensors installed beneath roads, together with smart devices such as cameras, collect real time information which enable traffic lights to adapt their timings according to the volume of passing traffic. If the sensors identify that there are no cars, it will send data to the traffic light controllers, which will increase the amount of time for pedestrians to cross the road. The controllers will also adjust the time according to the demand of each lane - the longer the queue, the more time will be given to that particular lane. When a part of the system fails, it will automatically send a Telegram notification to maintenance teams. This smart system can also be upgraded to cater to other demands in the future, such as clearing road lanes for emergency vehicles.

TM ONE focuses on customer centricity in the implementation of these 10 solutions. “We find customers and work with them to test our solutions. That way, we can have two to three iterations of the product before it even hits the market,” said Azizi. The traditional business models required customers to mass purchase a smart device or a piece of infrastructure, which is costly. Now, customers can start with buying just one traffic light, or a hundred, making the barrier for upgrading to emerging technologies a lot lower for organisations.

In Malaysia’s journey to adopting Industry 4.0 technologies, people have to develop the appropriate skillsets to keep up with the advancement of emerging technologies. Jeyasigan and Hj Ghazali Juhari, Head of Business Development at UMW Equipments shared their thoughts on how this can be done.

“Industries and departments have been working separately, but the needs of industries are different today,” Jeyasigan said. “It’s not just about studying IT or mechanical engineering,” added Hj Ghazali. “People need to have an interdisciplinary skillset.” Some universities have already introduced modules about data and information technology for students of all degrees and disciplines.

Future steps

Governments around the world have implemented various emerging technologies - and Malaysia will not be left behind. This is why the Malaysian government has budgeted RM 210 million (USD 5 million) from 2019 to 2021 to support the country’s shift to Industry 4.0 technologies.

The Malaysian government is armed and ready to make changes with a collaborative mindset. “As a global economy, Malaysia is a nation that heavily depends on trade, investment and services,” noted Jeyasigan. “We will never survive alone.” Internationalisation is one focus for Malaysia in their Industry4WRD plans.

Digitalisation is another priority. “Industry 4.0 is all about digitalisation,” according to Ahmad Fairuz Bin Mohamed Noor, Principal Assistant Director from the National Cyber Security Agency (NACSA). The organisation has come on board to facilitate cybercrime awareness and protection in the country. Cyber technology is now the main enabler for every sector, according to Ahmad Fairuz. “It’s not limited to communication or information technology per se. Many services are highly dependent on digital technology,” he added. On top of cybersecurity boosts, 5G trials have already begun in several states in Malaysia beginning October 1, reports The Star.

TM ONE recently joined hands with Malaysia’s Ministry of International Trade and Industry to support the Readiness Assessment (RA) initiative for Industry4WRD. This initiative, which started in July 2019, helps manufacturing companies understand how eligible they are for adopting emerging technologies. Assessors will also recommend strategies and areas of improvement for adopting Industry 4.0.

Malaysia is taking bold steps to propel its economy forward with the deployment of emerging technologies through Industry4WRD. Internationalisation and digitalisation are the country’s key focuses for building a resilient economy and future.

The post Malaysia is ready for Industry 4.0 appeared first on TM One.

Malaysia’s economy is poised to embrace AI as a tool for enhancing productivity, improving accuracy, and delivering new digital products and services. According to a recent poll by MIT Technology Review Insights, half of business leaders in Malaysia consider AI to have positive value and are investing on a case-by-case basis. Some 62% consider AI to be one of the top three technologies that will transform their business over the next five years.

But young Malaysians are worried. A YouGov survey of over 1,000 Malaysians showed that a third believe their jobs are at risk of automation. Levels of concern were greater among respondents in lower income brackets.

Recently published data developed by MIT Technology Review and Faethm, a software-as-a-service analytics company that models the future of work, which models hundreds of job roles and tasks against 16 different classes of emerging technologies and taking country and industry tech-readiness into consideration, finds that job roles will be disappear.

In Malaysia, some 14% of current jobs are likely to be automated by technology within the next five years. The sectors that will be most greatly affected are manufacturing, with 21% of jobs at risk, followed by transportation (20%), administration services, utilities, and wholesale and retail (17% at risk in each sector).

Yet the other side of the AI story is the about the number jobs that will be supported and enhanced, or ‘augmented’, by AI. “There’s been some very alarming predictions,” says Michael Priddis, chief executive officer at Faethm, and “as a result of this, most people think that technology equals or will result in large scale large-scale automation.”

“In some cases, that’s true,” he says, “but at the same time technology will also augment work, so jobs will be retained but materially changed, and it will add jobs.”

In Malaysia, 10% of current jobs are likely to be augmented by AI within five years. The industries where the most roles will be augmented by AI are information and communication technologies and public administration (both 14% of roles), and healthcare (13%).

Figure 1: Automation and augmentation of jobs in Malaysia within five years

Source: Compiled by MIT Technology Review Insights using data provided by Faethm, 2019

In the face of this disruptive wave of technology, Malaysians are being proactive and taking the opportunity to learn new skills. According to the YouGov poll, over half of respondents are learning additional technological skills and this jumps to three-quarters amongst those who believe their roles are “very likely” to be replaced by technology.

This article was originally published on MIT Insights

The post One in six Malaysians could be automated appeared first on TM One.

No industry is spared by the disruptions wrought by the digital era. Businesses that do not keep up with the current digital trends and do not take pre-emptive measures to apply digitalisation as part of their business’s competitive edge will not survive the market.

According to a survey by TM ONE, 75% of 40 CXO key manufacturing players in the market believed that digitalisation will drive organisations within the next 3 years. Half of the respondents (50%) from the IT professional field said that their organisations are in the midst of implementing cloud computing, system integration, addictive manufacturing and internet of things (IoT) as part of their readiness for Industrial Revolution 4.0, or IR4.0.

Certainly, Malaysia is gaining a huge awareness here, as exemplified by its efforts in adopting digital transformation in various industries, resulting in rapid transformations in the manufacturing and/or automotive sectors.

Many Malaysian-based businesses are predicted to position themselves in adopting IR4.0 in the next few years. Manufacturing accounts for over 80% of all exports and 23% of GDP, according to the Malaysia External Trade Development Corporation (MATRADE) and Department of Statistics Malaysia (DOSM). The Electrical and Electronics (E&E) industry, with its products and services related directly to IR4.0, was expected to lead Malaysian exports in 2018.

What do you need to know about IR4.0

IR4.0, also known as “smart factory”, is the cutting-edge development in the digitisation and automation of manufacturing processes. It incorporates the most advanced and innovative technologies such as advanced sensors, big data analytics, intelligent robotics, 3D-Printing, machine learning and cloud computing, not forgetting cybersecurity and Internet of Things (IoT).

This cyber-ecosystem enables businesses to monitor the physical processes of the factory, which in turn enables them to make intelligent decisions. Physical systems make up part of the sensory mechanism of the Internet of Things - communicating, analysing, cooperating and interacting with each other, and with humans in real time via wireless web-platforms.

IR4.0 covers the entire end-to-end value chain – from suppliers, procurement, production, design, logistics to sales in order to achieve higher productivity and output flexibility.

In a nutshell, businesses can reduce operational cost as IR4.0 emphasises on streamlining overall business operations by minimising wastage or storage, enhancing supervisory processes and maintenance of machinery, at the same time instilling streamlined security and safety efficiencies.

Even though Malaysia is slow in embracing digital transformation as compared to other APAC countries such as Vietnam, Thailand or Singapore, the digitalisation and automation journey will soon push businesses to the forefront of our industrialised world, and set to fast-track business transformation in today’s digital economy - allowing us to work smarter, optimising work streams and enabling growth.

In the next few years, the manufacturing sector in Malaysia will continue to embrace and adopt new technologies in order to help increase visibility in both of their raw production lines and to streamline operational processes.

“IR4.0 covers the entire end-to-end value chain - from suppliers, procurement, production, design, logistics to sales in order to achieve higher productivity and output flexibility.”

Overcoming Barriers to adopt IR4.0

In general, Malaysia is still struggling to adopt IR4.0, and many businesses are stuck at Industry 3.0, in terms of manufacturing technology. The common challenges faced by many manufacturing businesses in implementing IR4.0 are:

1. Uncertainty and hesitation to modernise infrastructure and their legacy system
2. Lack of capabilities in converting huge amounts of data collected into useful business insights and using these insights to improve operational efficiencies.
3. Lack of data security and skillsets needed in digitising their processes.

Because of these challenges, many manufacturers still rely on low cost labour i.e. foreign workers and are hesitant to invest in innovative automation technologies.

Manufacturers need to move with the market, but movement will only happen when it is justified by a viable business case. The Malaysian government, industry leaders, private sectors and the local academia need to work together to prove, with practical and pragmatic business cases, that digital transformation is fundamental for an organisation to enhance customer service and experience.

The Ministry of Commerce and Industry (MITI) is already in the process of formulating a national policy or framework on IR4.0. MITI and its agencies, in collaboration with other relevant Ministries and Agencies, are undertaking various outreach programs to increase public, industry, academia and training institute’s awareness on IR4.0. Targeted incentives and funding are provided to promote the adoption of IR4.0 under the Technical Working Groups (TWG) for Incentives and Funding.

The private sector industry is also being urged to invest in their own digitalisation efforts. Many are already putting in effort in implementing IR4.0, however, more concerted efforts from industry leaders need to be seen. There are organisations from the Electrical & Electronics (E&E), aerospace and the automotive sectors who are more advanced in terms of IR4.0 adoption. These success stories by industry captains can then be set as a benchmark for others to emulate moving forward.

Realising IR4.0

Pacing automation and robotics into the seams of a manufacturing foundation is crucial in the elimination of human errors, and enables businesses to refocus their effort in areas which drives revenue for the company.

It drives and encourages greater enhancements in manufacturing processes and sets local market benchmarks in attaining quality production output, efficient practice and better profit-gaining opportunities for businesses.

With AI riding alongside IR4.0, smart factories will mushroom in high industrial areas fully equipped with smart solutions. It consists of technology enablers such as robotics arm, machine learning, augmented reality, autonomous vehicles and 3D printing that will enable lean, accurate, and real time production, creating business performance efficiencies throughout the manufacturing process.

With an efficient supply chain in place, it will allow businesses to adjust itself to constant shifts in market demand and mitigate risks of unforeseen incidents that will directly impact production and the business.

The post Industry 4.0 is here. Where are the Manufacturers? appeared first on TM One.