Digitalization is the Key to Sustainable Manufacturing

Dr. Demet Karaali, Head of IT - Product Development & Production, Daimler Trucks Asia

Through this article, Dr. Demet Karaali explores how digitalization drives sustainability in manufacturing, highlighting technologies like IoT, AI, blockchain and digital twins that enhance efficiency and reduce waste. She addresses implementation challenges such as high costs and data security, emphasizing the need for collaboration among industry leaders, policymakers, and researchers to achieve sustainable manufacturing goals.

Introduction

In an era of unprecedented technological advancement and an impending threat of the environmental crisis, the convergence of digitalization to advance sustainability has emerged as a transformative force, particularly in the manufacturing sector. Industries across the globe are grappling with the imperative to reduce their environmental footprint and enhance their operational efficiency. Digitalization will be the cornerstone of sustainable and efficient manufacturing processes.

Why? The current shift towards sustainable manufacturing

During the industrial revolution of 1760, technological innovations enabled humanity to increase its production of goods. This led to urbanization and improved quality of life. However, it also had a significant environmental impact due to resource-intensive processes, energy consumption and waste generation.

When the manufacturing industry started to mature, new thinking ideas, such as lean manufacturing, enabled processes to reduce waste. This reduces manufacturers' costs since fewer resources are needed to produce the same item. This also reduced the manufacturing facilities’ environmental impact despite it not always being the primary objective of the time.

Today, manufacturing companies are pressured to become as sustainable as possible because consumers are concerned about global warming, scarce resources, and government regulations. Fortunately, increasing sustainability often also increases a company's net revenue and brand reputation. Therefore, for manufacturers, integrating sustainable practices supported by technology is not merely a corporate responsibility but a strategic advantage. By utilizing new and emerging digital technology, the industry can unlock new potential within manufacturing that will drive sustainability and efficiency.

Collaboration

Key stakeholders such as industry leaders, policymakers and academic researchers must collaborate to enable manufacturing to achieve sustainability through digitalization. Support and government initiatives are essential to implementing high-investment projects significantly reducing manufacturers' carbon footprints.

Research and findings from academia and other research-oriented institutions are needed to find even better technological solutions for issues found in manufacturing companies.

What kind of waste is generated in manufacturing

To understand sustainability within manufacturing, we must first examine what kind of waste is generated during manufacturing activities. One apparent type of waste is physical waste such as paper, packaging material, defective products that cannot be reworked, old machinery and other single-use products. Paper is still a large part of manufacturing waste today, where processes are in place to easily exchange information throughout the assembly line using physical paper. For example, in the manufacturing of vehicles, paper is used to note down the part number, vehicle number and other essential information that travels with the car as it is assembled. Another large waste is the over-use of resources such as electricity and water.

How digitalization contributes to sustainability and some examples of technology

With sustainability in mind, digitalization in manufacturing involves adopting several emerging technologies to enhance productivity and efficiency. IoT sensors are deployed on equipment to monitor real-time conditions, detect potential breakdowns, and track energy consumption for efficiency improvements. Advanced analytics, powered by machine learning algorithms, optimize supply chain management, demand forecasting, and maintenance schedules, while AI automates decision-making to reduce waste and improve production quality.

Blockchain technology ensures secure, transparent tracking of transactions and goods, enhancing supply chain traceability and promoting ethical sourcing. Cloud computing facilitates remote monitoring, data sharing, and collaboration, contributing to lower carbon footprints and streamlined operations. Digital twin technology creates virtual replicas of facilities to monitor resource usage, simulate scenarios, and refine processes to reduce emissions. Robotics and automation improve production precision, reduce human error, and enhance safety, optimizing workflows and minimizing waste.

Challenges faced with implementation

Implementing digital technology within manufacturing comes with its own set of challenges. The initial investment for a project in digitalization can be huge, considering the need for specialists in the field during implementation, infrastructure upgrades and technology implementation. Moreover, data security and local policies on privacy and security need to be considered, which might cause delays, custom solutions or block some implementations entirely. Interoperability issues and compatibility with existing systems are other significant problems and some legacy systems might need to be migrated before new technology can be implemented.

Digitalization in manufacturing isn't just about efficiency; it's a strategic advantage in the fight for a sustainable future.

Despite the challenges, many examples of excellent projects from the industry can be used as a benchmark to move towards digital, sustainable manufacturing facilities. Within the Daimler Truck group, many projects and initiatives are driven by the need to become more sustainable. Some vital projects are focused explicitly on digitalization within the manufacturing plants.

In summary, utilizing new enhancements in digital technologies is the key to achieving sustainability goals in manufacturing. Together with the government and researchers, the manufacturing industry can minimize its environmental impact, optimize resource utilization and build resilience against future challenges in the hope of a better tomorrow.