In 2015, Volkswagen was caught in the “Dieselgate” scandal, a massive fraud that had no paper trail. The consequences were severe, with the car manufacturer facing hefty fines, a damaged reputation, consumer trust loss, declining sales, and a lasting impact on its brand image.
Unfortunately, this is a common occurrence for manufacturing companies.
Within the manufacturing industry, fraudulent activities such as inventory fraud alone have cost manufacturers approximately $177,000 in total and have been estimated to be $150,000 for manufacturers with fewer than 100 employees.
However, a new technology may be able to combat fraud and production failures in the manufacturing industry. Enter generative AI.
Generative AI’s real magic for manufacturers lies in its predictive capabilities. It can foresee potential fraudulent activities by identifying unusual inventory patterns or financial trails that may elude human scrutiny. By doing so, it offers manufacturers the means to not only detect but also prevent fraud in real time.
Moreover, generative AI in manufacturing extends its influence beyond the factory floor to the organizational chart level. It aids decision-makers in crafting strategic plans based on data-driven insights, ultimately leading to more informed and effective business choices.
Some of the primary generative AI applications in manufacturing today are optimized resource allocation, enhanced production workflows, and streamlined supply chain management.
In this article, we’ll delve deep into the pivotal use cases and benefits of generative AI in aiding manufacturers, shedding light on its potential to reshape the industry.
Table of Content
- What is Generative AI?
- How is Generative AI Reshaping the Manufacturing Industry?
- Top 5 Generative AI Use Cases in the Manufacturing Industry
- Key Benefits of Generative AI in Manufacturing for Businesses
- Case Studies of Successful Generative AI Implementations
- Kanerika – Powering Tomorrow’s Manufacturers with Generative AI
Generative AI, a cutting-edge subset of artificial intelligence, leads the charge in the digital transformation by creating unique content in various forms like text, images, audio, and video.
It works through machine learning principles, where it learns from a dataset of human-made content to understand patterns and structures. Once trained, it can generate new content using the knowledge it gains.
The rapid advancement of generative AI has revolutionized problem-solving, data analysis, and decision-making at large. In 2021, the global AI market was worth $62 billion, and it’s expected to grow to $733 billion by 2027. With ongoing AI research and improved computing power, generative AI models have become more sophisticated.
Today, generative AI algorithms can do more than just mimic human text and images. They can perform tasks that were once considered uniquely human, showcasing the incredible progress in artificial intelligence.
But how well has it affected the manufacturing industry?
In the pre-generative AI era, manufacturers struggled with manual processes that were repetitive and time-consuming.
While these traditional methods were once accepted as the industry standard, they frequently gave rise to inefficiencies, delays, and costly errors for manufacturing companies.
However, with the seamless infusion of generative AI into production, manufacturing operations are undergoing a truly remarkable evolution.
Generative AI’s role in the manufacturing industry is felt in several critical areas. It streamlines processes with unmatched precision, optimizing workflows and reducing the occurrence of downtime.
The metrics from generative AI implementation in manufacturing are promising.
Automating tasks, streamlining processes, and making the best use of resources can increase operational efficiency by 25%. Further, generative AI’s ability to predict and analyze allows manufacturers to run maintenance checks beforehand, cutting downtime by up to 30%.
Real-time quality checks effectively mitigate defects by 15%, while optimizing supply chain logistics results in a 20% reduction in delay times.
These impressive numbers show that generative AI in manufacturing can change the way things are made, cutting costs, improving quality, and giving companies a bigger edge in the market.
Use Case 1 – AI-Driven Product Design and Development
Generative AI, a key player among the top use cases in the manufacturing industry, leverages machine learning algorithms to revolutionize product design and development. By dissecting a vast array of design solutions for specific challenges, it generates a spectrum of innovative design alternatives.
These solutions take into account crucial elements like operational effectiveness, weight reduction, structural integrity, and material usage optimization in order to precisely meet the goals set by engineers.
One such example is the aerospace sector, where generative AI has been employed to design lightweight yet robust aircraft components. NASA has already announced the creation of new mission hardware that has been built using generative AI.
By analyzing various design alternatives, it has enabled the creation of highly efficient components that significantly reduce fuel consumption and enhance overall performance.
Use Case 2 – Machine Automation and Optimization
Generative AI takes center stage when it comes to automating and optimizing manufacturing processes. This transformative journey begins with the diligent collection of data through sensors and IoT devices meticulously placed on the factory floor.
These devices gather a treasure trove of operational and performance data, shedding light on various facets of manufacturing, from the health of equipment to the efficiency of the supply chain. This data then forms the raw material for training generative AI models.
One remarkable feat of these AI models is their ability to calculate the Overall Equipment Effectiveness (OEE), a crucial indicator of how efficiently manufacturing operations are humming along.
OEE is a product of three distinct factors: availability, performance, and quality, each stemming from a variety of foundational metrics such as run times, downtime, speed, output, and quality.
In a modern automotive assembly line, generative AI analyzes data from sensors on robotic arms and conveyor belts, fine tuning every movement. It optimizes the robots’ movements, reducing cycle times and minimizing errors in assembly, resulting in faster production and higher quality vehicles.
Use Case 3 – Better Quality Control
One of the most promising generative AI in manufacturing use cases is the improvement of quality control for manufacturers.
It can quickly identify even the smallest equipment defects, which, in turn, saves costs and increases operational efficiency.
Faulty manufactured products not only present a substantial safety hazard to the general public but can also result in substantial financial losses and harm to the reputation of the affected companies.
According to AGCS, over the last five years, defective product incidents have led to insured losses exceeding $2 billion, establishing them as the primary source of liability-related losses.
This proactive approach prevents issues from escalating, reduces downtime, and saves on sudden equipment failures. It can detect even the smallest flaws in circuit boards, stopping the process and preventing faulty products from reaching customers.
Use Case 4 – Generative AI for Accelerated Prototyping
The integration of generative AI in the manufacturing industry, particularly for accelerated prototyping, is revolutionizing the way products are conceptualized, developed, and produced.
Traditional prototyping in manufacturing is often time-consuming and involves many iterations. Generative AI can propose ideas and quickly generate prototypes, significantly reducing the time from design to production.
It achieves this by streamlining the design processes by employing generative design, a method where algorithms explore numerous design permutations based on specified parameters.
This rapid prototyping not only speeds up the development cycle but also reduces human labor and prototype iteration costs. Additionally, AI’s ability to optimize materials and structures can lead to considerable savings in production costs.
Use Case 5 – Predictive Maintenance: Keeping Machines Running on Time
Ever-present in the hum of a large industrial facility lies a hidden enemy: machine failure. According to a report by Senseye, major plants lose on average 323 production hours annually, translating to $172 million in losses per plant.
The True Cost of Downtime, based on a study of 72 multinationals, exposes the insidious nature of unplanned downtime. Each hour of lost production costs an average of $532,000, encompassing not just lost revenue but also financial penalties, idle staff time, and the headache of restarting production lines.
The figures become staggering when scaled up: the Fortune Global 500 manufacturing and industrial sector loses an estimated 3.3 million hours to unplanned downtime annually, draining $864 billion from their coffers, a staggering 8% of their total revenue.
This is where one of generative AI’s most crucial applications in manufacturing saves the day. Using machine learning, AI searches through past data and creates forecasts for when the device might fail. This helps factories arrange maintenance visits during a period of low production.
The end result? No unforeseen glitches, and a significant decrease in machine downtime. A massive win for manufacturing companies.
Generative AI in manufacturing also improves asset longevity and reliability by scheduling regular maintenance based on past histories and AI recommendations.
For example, an AI model can monitor the efficiency of a machine over a period of time and detect when the machine isn’t working as efficiently as before. The AI model can schedule a maintenance checkup for that machine, ensuring the longevity and reliability of manufacturing assets.
There are numerous benefits to adopting generative AI in production lines and manufacturing hubs. Here are some of the key benefits of generative AI in the manufacturing industry:
Streamlined Production Processes and Cost Savings
AI-powered predictive maintenance can identify equipment faults before they occur. This enables manufacturers to undertake critical repairs during scheduled downtime, avoiding unexpected breakdowns and financial losses.
Generative AI applications in manufacturing optimize workflows, cut downtime, and boost operational efficiency by spotting bottlenecks and suggesting real-time improvements.
Improved Decision-Making with Generative AI in Manufacturing
Generative AI in manufacturing can swiftly and accurately evaluate large chunks of data. It can then share insights for strategic decision-making in areas such as production planning, handling inventory, and supply chain optimization.
With AI-powered foresight, manufacturers can anticipate market trends, identify potential bottlenecks, and proactively address operational challenges before they impact the bottom line.
Enhanced Innovation with Generative Design
AI can use generative design to investigate a wide range of design options based on predefined criteria and limitations. This can lead to more innovative ideas and products.
This has the potential to drive breakthroughs and revolutionize industries. Imagine crafting biocompatible implants tailored to individual patients or ultra-efficient aircraft wings optimized for fuel conservation—the possibilities are truly limitless.
By utilizing generative AI in the manufacturing industry, manufacturers can achieve significant energy savings and reduce greenhouse gas emissions.
This technology analyzes data from production processes and identifies opportunities for energy efficiency improvements. An example would be optimizing equipment usage or implementing smart energy management systems.
Implementing these recommendations not only helps companies reduce their carbon footprint but also leads to cost savings in the long run.
Generative AI is revolutionizing manufacturing, enabling the mass production of personalized goods.
By analyzing market trends and individual preferences, AI can guide factories to create unique products that resonate with diverse customers.
This data-driven approach minimizes waste, increases customer satisfaction, and boosts profitability. Imagine 3D-printed shoes customized to your foot scan or nutritional supplements formulated for your DNA.
At Kanerika, we have been at the forefront of generative AI implementations for various industries. Here are two case studies with their success metrics:
A leading Enterprise Resource Planning (ERP) provider found itself grappling with the complexities of sales data management and KPI identification.
Traditional methods proved inadequate, hindering their ability to gain actionable insights and optimize performance. Kanerika’s team built a custom solution: a generative AI-powered CRM dashboard designed to empower data-driven decision-making.
This innovative dashboard leveraged the power of AI to transform vast amounts of sales data into actionable intelligence. The intuitive interface provided users with a clear and concise view of key metrics, enabling them to accurately identify KPIs with a remarkable 22% improvement.
This, in turn, fueled data-driven decision-making, leading to a 10% increase in customer retention and a 14% surge in sales and revenue.
In another case, a global insurance company was facing operational inefficiencies and increasing data complexity.
Kanerika’s team leveraged Kafka, Talend,TensorFlow, and PyTorch to build a generative AI solution. It automated data extraction, standardized formats, and streamlined alignment.
The impact? 22% happier customers, 29% less fraud, and 37% faster claim processing.
Embracing cutting-edge technologies like generative AI can revolutionize your manufacturing operations today.
However, with stringent regulations and the complex web of AI implementation, navigating this transformation can be a difficult journey. A trusted implementation partner is required to effectively implement generative AI in organizations.
Kanerika’s team has been a trusted AI/ML and data management partner for over two decades, helping manufacturers like you safely and effectively leverage the power of generative AI.
Our expertise ensures you:
Compliance-First Approach: We guide you through the compliance jungle, selecting algorithms and implementing controls that adhere to your industry’s strict protocols.
Bias-Free Innovation: We understand the importance of responsible AI. We’ll help you curate training data and embed ethical practices into your solution, building trust and transparency.
End-to-End Support: Kanerika goes beyond algorithms. We offer comprehensive, tailor-made solutions, from conceptualizing use cases to seamlessly integrating AI into your workflow.
Proven Track Record: We’ve helped numerous manufacturers optimize production lines, predict equipment failures, and create innovative materials with generative AI. Don’t just take our word for it; let our proven successes speak for themselves.
Book a meeting today and embrace the efficiency of generative AI in manufacturing!