Digital Manufacturing: Definition and Examples

As digital technologies have become increasingly vital in industries worldwide, the use of computer-based tools and systems to enhance manufacturing operations also grows. These technologies, which use real-time analytics, can reduce bottlenecks, decrease inventory, shorten manufacturing times, and more.

Often referred to as manufacturing’s fourth revolution, or Industry 4.0, the digital transformation enables companies to streamline production processes and increase competition in the global marketplace.

Read on to explore the realm of digital manufacturing, including what it is, benefits, examples, and careers in digital manufacturing.

What is digital manufacturing?

Digital manufacturing is an integrated approach that uses computer technologies to improve manufacturing operations. As manufacturing facilities increase the number of automated tools on the ground, companies need digitised systems on the business end to monitor, analyse, and model all the machines to optimise the process. The goals of digital manufacturing include efficiency (“lean-ness”), flexibility, design, and integration.

According to Deloitte, digital manufacturing investments have led to an average increase of 10 percent in production output, 11 percent in factory capacity use, and 12 percent in labour productivity [1]. McKinsey reports even higher numbers: 30 to 50 percent reductions in machine downtown and 15 to 30 percent improvements in labour productivity [2].

Types of digital manufacturing

The three main types of digital manufacturing include product life cycle, smart factories, and value chain management. Each corresponds to a different part of the manufacturing process, from product design to production to resource management to customer satisfaction:

• Product life cycle: The product life cycle begins with engineering design and moves on to sourcing, production, and customer service management. At each step, data analytics can account for revisions and monitoring that can impact the entire life cycle.

• Smart factory: Workers receive real-time data about their functions with smart machines and sensors. This feedback forms the connection between the operations teams that monitor the machines and the information technology (IT) teams that deal with back-end systems like SAP. Both use business intelligence (BI) tools to analyse, track, and improve performance.

• Value chain management: The point of value chain management is to minimise resources and continuously assess value at every stage so that companies can integrate processes, inventories can stay Lean, and meet customer demands.

Benefits of digital manufacturing

From improving efficiencies to supporting creativity and innovation, digital manufacturing offers multiple advantages. Some of the primary benefits it provides the manufacturing industry as it streamlines and evolves processes to suit the 21st century include the following:

• Increased efficiency: An integrated, digitised manufacturing process eliminates errors that may arise due to incorrect data, common with manual or paper-based systems. 

• Faster innovation: Advanced technologies, including updated machinery and IT systems connected to provide data analytics and visibility, speed up innovation.

• Customer satisfaction: Digital manufacturing increases brand awareness and loyalty because businesses can remain in tune with customer needs and wants.

• Cost reduction: With more detailed control and insight over the supply chain, manufacturers can optimise inventory levels and delivery statuses to reduce costs at all levels of the manufacturing value chain.

Examples in the real world

The concept of “digital manufacturing” can be challenging without examples. Below, explore how real-world manufacturing businesses use big data analytics and cloud computing, two critical tools in digital manufacturing.  

Big data and analytics tools

Data analytics tools like AI and machine learning can help break down the manufacturing value chain into actionable insights for demand forecasting. For example, a car manufacturer used these supply-network management tools to visualise the flow of raw materials and manufactured parts through the network to ensure operational efficiency and reduce energy consumption. Engineers can then mine the data to understand why certain equipment modes fail and use predictive analytics to adjust maintenance schedules continuously.

Cloud computing

The aerospace industry is using cloud computing to integrate its complex supply network. To manufacture a jet turbine engine requires hundreds of individual parts, some of which companies produce in-house and others outsourced from different vendors. Cloud computing tools enable suppliers to collaborate efficiently: Engine makers can share 3-D models of their design and solicit pricing, delivery, and quality information from each supplier. This transparency reduces risk and labour. Boeing’s recent all-virtual design reduced time to market by over 50 percent [3].

Jobs within digital manufacturing

If you’re interested in digital manufacturing, you can explore various career paths that cover the spectrum of business operations, supply chain, engineering, and cybersecurity roles. Check out some jobs that play an essential role in digital manufacturing with the below list:

• Digital manufacturing manager (or specialist): These individuals are skilled at creating and implementing a multi-year manufacturing strategy and plan.

• AI or machine learning engineer: Engineers create predictive analytics and program robotics to assist in the manufacturing process.

• Supply chain analyst: Analysts use data to conduct demand forecasting and planning, eliminating errors, boosting efficiency, and decreasing time and costs.

• Cybersecurity analyst: Cybersecurity professionals (who can also be managers or leads) protect computer networks from cyberattacks and unauthorised access.

• Business intelligence analyst: Business intelligence (BI) analysts help make sense of the data and provide companies with actionable insights. Management consultants are similar in that they take on projects to create leaner, more digitised processes in manufacturing, production, or supply chain outcomes.

• Cloud architect: A cloud architect is responsible for an organisation’s cloud computing system, developing the application design and systems for managing and monitoring the cloud system.

• IT technician: IT technicians typically install, troubleshoot, and fix computer hardware and software.

Learn digital manufacturing and design technology

Digital manufacturing is poised to transform the manufacturing industry with the potential to enhance productivity, reduce costs, and create new opportunities. Start your career in digital manufacturing with an online course on Coursera. For example, the Digital Manufacturing & Design Technology Specialisation from SUNY-Buffalo provides the knowledge and skills needed to succeed. Another option, the Digital Technologies and the Future of Manufacturing Specialisation from the University of Michigan, explores the breakthrough technologies in the field.