Ericsson: A guide to Industry 4.0 transformation using dedicated cellular technology

Data released by the World Bank shows that manufacturing accounts for about 16% of global GDP and is an important part of the global economy.

To stay ahead of the competition, Ericsson's latest report, "Connected Manufacturing: A Guide to Industry 4.0 Transformation Using Private Cellular Technologies," explains how manufacturers can benefit from high-performance, secure and reliable private cellular networks to accelerate smart manufacturing. As the COVID-19 pandemic has severely impacted manufacturing operations and supply logistics, preparing for Industry 4.0 is more relevant than ever.

We worked with Hexagon, our Industry 4.0 partner, to identify and research the most relevant and proven smart manufacturing use cases. We derived five use cases based on real-world standards and expert insights to illustrate how companies can address challenges, increase efficiency, improve productivity, reduce maintenance, and realize return on investment. Use cases for deploying private cellular networks to enable smart manufacturing include:

• Autonomous Mobile Robots (AMRs) for real-time production chain automation
• Collaborative robots (cobots) that improve operational efficiency
• Augmented Reality (AR) technology for efficient quality inspection
• Asset Condition Monitoring for Increased Uptime
• Digital Twin Technology for Optimized Operations

In analyzing these use cases, we used the concept of a benchmark factory: a mid-sized automotive supplier in Western Europe with annual revenue of $100 million, approximately 500 employees, and a gross margin of 10%. The report estimates that the annual steady-state net value of the benchmark factory will reach $6 million in the fifth year. All five use cases will pay for themselves within three to five years, and if deployed simultaneously, they will fully pay for themselves in just two years.

The report also describes the main challenges that manufacturers must overcome to remain competitive. The main obstacles facing manufacturers include declining productivity and growth, supply chain disruptions, talent shortages, and the burden of traditional machines and assets. Similarly, the cost of maintaining and reconfiguring wired fixed assets is also very high. As manufacturers upgrade their infrastructure, ensuring data security and preventing cyber attacks have become top priorities. To quickly meet customers' customized needs, factories must be extremely flexible so that they can quickly adapt to production.

Manufacturers are increasingly recognizing the value of private cellular networks as it enables their businesses to become more agile and competitive. Ericsson's Private Network System can help manufacturers by providing fit-for-purpose, high-performance and flexible private networks that deliver the connectivity and security they need.

Sachin Mathur, Head of Partnerships, Manufacturing Intelligence at Hexagon, says: “We worked with Ericsson to develop this report that reveals how connecting devices and people in a modern factory environment can improve productivity and increase agility. The insights presented in the report demonstrate the value of deploying private cellular networks and how low-latency connectivity can help manufacturers overcome challenges and support their transformation to Industry 4.0 by connecting operational and quality-related data.”

Thomas Norén, Head of Private Networks at Ericsson, says: “This guide and use cases demonstrate the leap forward in smart manufacturing, bringing numerous opportunities and increased efficiency. Ericsson is a solutions partner that manufacturers can trust, and only 5G-ready private cellular networks can deliver the fast, reliable and secure connectivity that only 5G-ready private cellular networks can provide.”

You can read the report and view the Smart Manufacturing Value Calculator to understand the cost and ROI of your application.

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