Are UAE industries paying full attention to blockchain opportunities?
The aim of lean manufacturing is to eliminate waste – the non-value-adding factors in any process. Unless a process has gone through lean several times, it contains some element of waste. When done right, lean can create huge improvements in efficiency, cycle time, productivity, material costs and scrap, leading to lower costs and improved competitiveness.
Industry 4.0
Some trends repeat themselves for a reason: they represent a powerful vision of the future. In production, Industry 4.0 is still the “It” term in the industry. It is the important piece of the smart manufacturing puzzle. Using sensors, machine logs, quality information, digital twins and much more, AI-enabled manufacturing companies can operate with greater efficiency and agility at all stages of the manufacturing lifecycle. The first and second industrial revolutions were linked to mechanization powered by steam and the rise of the assembly line. The third saw the adoption of computers in manufacturing.
Industry 4.0 continues the drive towards automation, using technologies such as IIoT (Industrial Internet of Things), big data, machine learning, artificial intelligence (AI) and advanced analytics.
Diversification
There are several reasons for businesses to diversify. It minimizes the chances of a downturn in the sector, increases returns and provides a wider range of choices in terms of products and service offerings. Being a diversified manufacturer means offering a wide range of new services and products to customers in a new market.
By expanding their reach, companies can explore new opportunities for sales – and potentially increase profits and return on investment.
In addition to increasing profitability, companies choose to diversify for these reasons:
- Diversification can help reduce the likelihood of an industry collapse.
- It can improve a company’s image and profitability.
- It has the potential to put you ahead of the competition.
- Businesses can fluctuate during economic uncertainty.
- Diversification enables the organization to utilize excess cash flows.
Blockchain technology
The use of blockchain technology is expected to grow 73.6 percent through 2026 to a market size of $778 billion as more companies create decentralized products and services. From an operational standpoint, the use of blockchain will enable manufacturers to gain greater visibility into supply chains and track assets with extraordinary accuracy.
Implementing blockchain technology to track factory audits can significantly improve the lifetime of factory machinery as audits and service can be logged, tracked and analyzed for improvements which in turn will reduce financial losses and improve overall operating costs.
Switch to green energy
All industries should switch to renewable energy where possible. Not only will this reduce our emissions and bring us closer to the net zero goal, but it will also provide energy independence as we become less dependent on the global gas market.
For 2023, manufacturers should keep an eye on the innovations around green hydrogen, a newer, cleaner energy source that produces zero greenhouse gas emissions. Energy companies such as Shell and RWE have begun to pave the way in this development sector, creating the first major green pipeline from wind farms in the North Sea.
