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Schneider Electric's Batam Smart Factory recognised by the World Economic Forum as a Fourth Industrial Revolution Lighthouse

Published: 3 July 2019 - Sarah Mead

Schneider Electric, a leader in digital transformation of energy management and automation, has had its Smart Factory in Batam, Indonesia, designated as an Advanced 4th Industrial Revolution (4IR) Lighthouse by the World Economic Forum at its 13th Annual Meeting of the New Champions (AMNC).

The Batam site is the third of the company’s factories to receive this recognition, joining its Le Vaudreuil site in France and its Wuhan site in China which were designated as Lighthouse and Developing Lighthouse sites respectively in 2018.

Batam Smart Factory paving the way for digital transformation in Asia

The factory in Batam has comprehensively deployed a wide range of Industrial Internet of Things (IIoT) technologies including smart sensors, alarm prediction management, site benchmarking, and augmented reality to create an empowered workforce that has visibility into operations, maintenance, and energy use. With the goal to reduce maintenance costs while increasing overall equipment efficiency, the factory is so far reporting a 44% reduction in machine downtime in one year.

In addition, the factory leverages IT/OT convergence by implementing digital tools like planning and scheduling management that provide an end-to-end view of demand, aligns all partners, and engages all workers, resulting in a 40% improvement in on-time delivery.

It is also a testbed for machine learning, AI, predictive and digital maintenance, and connected machines and processes. With the integration of big data, cloud, and IIoT technologies, the Batam factory is paving the way for organisations in Asia to work towards their own digital transformation to become more energy efficient and sustainable in the long term.

Yin Zheng, China President, and EVP, Schneider Electric, joined a dedicated session at the AMNC to discuss the benefits of the forum’s global Lighthouse network in this era of global cooperation. According to the forum, Schneider Electric’s Batam Smart Factory reflects Schneider Electric’s success in adopting 4IR technologies at scale and the impact the company has achieved to date. Being part of the global Lighthouse network means Schneider Electric will be able to share knowledge and best practices with peers and engage in new forms of collaboration, something it already does with its own Smart Factory Program.

Tailored Sustainable Connected 4.0 supply chain digital transformation

To date, Schneider Electric has launched nine Smart Factories in the US, Mexico, China, France, India, Indonesia, and the Philippines. These factories are core to the company’s Tailored Sustainable Connected 4.0 supply chain digital transformation, where Schneider Electric leverages digitisation through its EcoStruxure platform and architecture across its supply chain operations to deliver end-to-end integration and visibility to enhance performance.

“We understand the value of the IIoT and the positive business impact that innovation and digitisation can have on our operations – particularly in our global supply chain. As a living example of how our EcoStruxure solutions deliver benefits to our customers, we are gaining those same benefits in our operation and sharing that knowledge,” said Mourad Tamoud, Executive Vice President, Global Supply Chain, Schneider Electric. “Through all of our Smart Factory showcases, we are able to demonstrate this value in real time, show the solutions at work, and share the tangible benefits that we, ourselves, are seeing from our own IIoT investment as we accelerate our Tailored Sustainable Connected 4.0 supply chain digital transformation.”

Schneider Electric was recently ranked 11th in the Gartner Supply Chain Top 25 for 2019 and won the 2019 Industrial Manufacturing Supply Chainnovator Award in Gartner’s 2019 Supply Chainnovator Awards, which “recognises unconventional, innovative and high-impact supply chain initiatives in the industrial manufacturing sector.”

EcoStruxure, the foundation for success

Schneider Electric’s Smart Factory Program is built on its EcoStruxure platform, which comprises connected products, edge control, and applications, analytics and digital services to help decision-makers and managers digitise operations quickly, cost-effectively, and with fast return on investment.

“Taking the first step towards digital transformation can seem daunting, but our EcoStruxure for Industry architecture and platform makes it easy to get started, digitising your machines and processes while maximising returns in this rapidly evolving environment,” said Peter Herweck, Executive Vice President, Industrial Automation, Schneider Electric.

For more information about the EcoStruxure architecture and IIoT-enabled solutions from Schneider Electric, please visit: https://www.schneider-electric.com/en/work/campaign/innovation/overview.jsp.

Industry Connections: Schneider Electric Ltd UK


 
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