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Industry leaders of the future will be experts at balancing technology integration, risk mitigation and workforce management.¹
Manufacturers are in a race against time amid today’s labor and supply chain shortages. Yet, opportunities exist to maximize operational efficiency through digital transformation.
A Roadmap For The Future: Manufacturing
Advanced manufacturing: managing the digital transformation journey
Optimizing People, Process and Technology to Remain Competitive.
¹sloanreview.mit.edu
Explore the key advantages and challenges of technological progress.
RISK ADVISOR SERIES
CLOSE
²business.com
¹automationworld.com
Using smart glasses, smartphones and other AR devices, workers can access training and job-specific information – such as product assembly instructions, dashboards and equipment maintenance histories – when and where they need it.¹ VR offers similar benefits. With the aid of a headset, an employee is immersed in a virtual training world, reducing the risks posed by real-life scenarios.²
¹travelers.com
3D printing, also known as additive manufacturing, builds three-dimensional products one superfine layer at a time directly from computer-aided design (CAD) diagrams. 4D printing is poised to augment 3D printing with new materials that can transform into different shapes using external factors like light, hot water or heat.¹
¹cio.com
Connected machines and embedded sensors can gather vast quantities of valuable data enabling broad visibility into plant operations. Data analysis software can uncover this data to identify patterns among process steps and inputs, even at a granular level, and reveal important insights.¹
¹manufacturingdigital.com
Industrial robots present the prospect of increased productivity, precision and efficiency in the manufacturing environment. They can also take on repetitive and risky tasks and help free up workers for other activities. Collaborative robots, or cobots, work alongside humans to streamline production processes and improve safety.¹
¹iberdrola.com
The IIoT brings smart sensors and devices directly onto the manufacturing floor. Local or cloud-based analytic platforms can mine data from these devices for insights that can help drive better business decisions and improve plant efficiency, reliability and safety.¹
Integrating Industry 4.0 technology in manufacturing can lead to greater connectivity and production efficiency.
Cloud-Based Software
¹ ²2021 Travelers data; Total number of manufacturers surveyed: 2, 536; small (0-20 employees): 299; mid-size (50-999 employees): 1254; large (1,000-9,999 employees): 983
,
²
¹
2021 Travelers data; Total number of manufacturers surveyed: 2,536; small (0-20 employees): 299; midsize (50-999 employees): 1,254; large (1,000-9,999 employees): 983
12%
All Manufacturers Combined:
11%
Large:
14%
Midsized:
8%
Small:
42%
51%
37%
27%
3D and 4D Printing
10%
19%
24%
17%
Advanced Robotics
23%
21%
26%
13%
49%
60%
45%
28%
Emerging Technology
¹ ²2021 Travelers data; Total number of manufacturers surveyed: 2, 536; small (0-20 employees): 299; mid-size (50-999 employees): 1254; large (1,000-9,999 employees): 983 *Includes Industrial Internet of Things (IIoT), employee wearable sensors and sensors to monitor building and equipment status.
*Includes Industrial Internet of Things (IIoT), employee wearable sensors and sensors to monitor building and equipment status.
48%
31%
72%
82%
2021 Travelers data; Total number of manufacturers surveyed: 2,536; small (0-20 employees): 299; midsize (50-999 employees): 1,254; large (1,000-9,999 employees): 983 *Includes Industrial Internet of Things (IIoT), employee wearable sensors and sensors to monitor building and equipment status.
Security personnel can leverage data from smart sensors, security devices and other information sources to help them monitor a plant for potential security incidents. For manufacturers with multiple sites, remote access technology can be an indispensable tool for loss prevention by triggering alarms, turning off equipment and locking doors.
²robotsdoneright.com
¹forbes.com
Sensors and data analytics provide the potential for manufacturers to evaluate operations from a sustainability standpoint. Armed with data, more informed actions can be taken to diminish energy loads and minimize waste.¹ Some manufacturers employ lights-out manufacturing, which allows robots to work without interference, lowering the need for climate control and lighting, and improving energy efficiency.²
¹sas.com
Customer data may provide the insights manufacturers need to inform product updates and drive new product development. Insights can be culled from diverse sources: maintenance and repair claims, returns, safety and warranty issues, market and customer research, and even social media.¹
²ncbi.nlm.nih.gov
¹ecorobotics.com
Robots can blend into operations with employees to better manage repetitive and hazardous tasks. They can pick products that are placed high on shelves, lift heavy objects and take over other jobs that pose a greater risk.¹ Sensors can set safety boundaries on the factory floor, and help to sound alerts or stop machines when a person or object comes within the sensing field.²
²sciencedirect.com
¹atriainnovation.com
Sensors can help to monitor much of what’s going on throughout the production line. They can identify opportunities to increase productivity and provide early warning of conditions that are detrimental to it.¹ Robots can perform a range of tasks with speed and precision, with the potential to remove the risk of human error and produce more consistent results.²
¹mdpi.com
Sensors and location-aware technologies, such as radio frequency identification (RFID) tags, can help to enable supply chain visibility both within and outside of the plant. They can be attached to parts, storage containers, products and raw materials to trace real-time status, location, environmental conditions and inventory.¹
¹world-class-manufacturing.com
Smart sensors embedded in industrial machines can monitor performance and test various data points like temperature, speed, vibration and lubrication. This vital information can help maintenance crews with real-time insights into equipment health, red flags and lead times for scheduling service.¹
Here are seven key areas where manufacturers can integrate technology into their operations.
Every point along the manufacturing process can be a candidate for technology adoption.
7 Areas of Advanced Technology Adoption
Workplace Safety
• Exposure to moving machinery and robotic parts. • Equipment and devices that perform unexpectedly due to programming errors. • Data errors that create safety-related hazards. • Lack of training or understanding of machinery safeguards. • Changes in ergonomics and employee engagement.
The factory floor has traditionally been labor-intensive, exposing workers to a higher risk of accidents and injuries. As technology changes the way workers engage with the process, hazards are often reduced. Yet, technology also presents new risks, including:
Cyber
IIoT and other internet-connected sensors and devices that manufacturers bring into their operations can pose a cyber risk. Each gives criminals a potential entry point to exploit, expanding the organization’s potential “attack surface.” Successful attacks can sabotage production, corrupt data, damage equipment and cause significant financial and reputational damage. Intellectual property may also be stolen.
Business Interruption
Manufacturers can suffer significant downtime if the technology or data they rely on becomes unavailable, whether due to a system problem, cyberattack, natural disaster or other widespread events such as a fire or storm. For manufacturers that have become digitally dependent, returning to manual processes to keep the business going may no longer be an option, leaving them at a loss until digital operations are restored.
Manufacturing Defects
The introduction of new technology and manufacturing methods can result in unintended product defects. The products could then fail to meet customer expectations, cause property damage, injury or financial loss, which in turn can lead to lawsuits and potentially impact a manufacturer’s brand and reputation.
Property Damage
Manufacturing technology can come with unique risks due to the convergence of automated and physical work. If a digital device is incorrectly integrated into plant operations – due to problems in planning or programming, for example – it could damage the facility, raw materials or finished goods. Control systems for machinery, pressurized processes or temperature-controlled environments might cause overheating, an explosion or product spoilage.
Technology has the potential to impact nearly all aspects of manufacturing operations.
• Changes in ergonomics and employee engagement.
• Lack of training or understanding of machinery safeguards.
• Data errors that create safety-related hazards.
• Equipment and devices that perform unexpectedly due to programming errors.
• Exposure to moving machinery and robotic parts.
In spite of stringent safeguards and quality controls, defective products may be released into the marketplace. If the defective product results in a claim or legal action, exposure may be mitigated if well-thought-out contract practices, guided by legal counsel, have been established.
Review, revise and continually improve safety programs.
•
Get everyone involved in understanding and participating in safety best practices.
Communicate safety plans clearly and make them available to all employees.
Demonstrate management involvement in a safety culture.
Create emergency response and employee communication protocols.
Conduct a business impact analysis to help prioritize critical functions.
Identify risks that leave employees, machinery and operations vulnerable.
Develop, test and regularly update a business continuity plan.
Promote security awareness.
Change default passwords.
Monitor network vulnerability 24/7.
Back up data daily.
Limit access to sensitive data.
Conduct a cyber risk assessment.
Maintain an inventory of network assets.
cited acquiring talent was nearly 40% harder in 2021 vs. 2018.³
77%
OF MANUFACTURERS
are expected by 2028.²
2.4M
UNFILLED JOBS
are expected to retire in less than 10 years.¹
2.7M
BABY BOOMERS
“Partnering with area schools and colleges for acquiring talent and retraining skilled employees as technologies change are key to a manufacturer’s longevity.”
Reese Cann, CSP, ARM Technical Director Risk Control
¹ ² ³deloitte.com
deloitte.com
³
Employee Injury Trends
were sustained by first-year employees.
OF ALL MFG. WORKPLACE INJURIES
is the average number of workdays missed due to an injury.
64
DAYS
Top 6 Most Frequent Causes of Injury
34% Overexertion
16% Slips, trips and falls
15% Other
10% Struck by an object
8% Repetitive motion
7% Caught-in or -between hazards
Travelers is an insurance carrier that regularly analyzes workers compensation claims¹ to detect loss trends. Insights like these can be shared with manufacturers to help them identify where additional training programs and safety best practices might help employees learn how to avoid common workplace injuries.
is there a Stat we can place here?
¹All data included is Travelers Indemnity claim data, in accident years 2015-19. Zero-dollar claims excluded. Valued Dec. 31, 2020. Losses are unlimited and undeveloped. Unless otherwise noted, data points represent claims across all employees in the manufacturing industry.
in the average cost of an injury.
INCREASE
“Many injuries sustained by employees of any tenure can often be prevented if the proper safety programs are in place.”
Chris Hayes Assistant Vice President Risk Control
As manufacturers adopt new technologies, they face special challenges that may present unanticipated risks. Wherever you are in your digitization journey, Travelers can help protect your business from new and emerging technological risks.
For more information, contact your independent Travelers insurance agent or visit us online.
How manufacturers can navigate the opportunities and challenges of adopting digital technologies.
Advanced Manufacturing: Managing the Digital Transformation Journey
