Smart Manufacturing

Adoption in Industries

Mr Jacob Lee Chor KokChairman, FMM Industry 4.0 CommitteeFederation of Malaysian Manufacturers

FMM-MIER Business Conditions Survey

1H2016

Measures taken to cope with the eventual implementation of

raise in minimum wage in July 2016 and the Government’s freeze on the recruitment of foreign workers

adjusted their wage structure

stepped up their automation

hired locals from other states

passing through costs

sub-contracted their production

considering relocation out of Malaysia

41%

37%

17%

15%

13%

6%

FMM-MIER Business Conditions Survey

2H2016

Automation Level of Key Areas of Operation

12.3

25.8

24.7

24.1

20.3

23.7

14.1

17.9

28.0

12.9

14.2

11.8

13.4

13.7

12.8

16.1

13.4

11.5

11.3

18.7

14.1

15.0

13.2

14.4

9.6

13.1

13.4

10.0

10.7

11.8

9.1

12.8

12.5

11.6

11.0

11.5

13.3

14.7

12.5

12.3

11.5

15.6

13.7

12.8

15.3

15.9

7.6

9.0

14.2

13.7

12.8

15.7

14.5

11.5

19.7

6.7

12.5

9.5

11.5

6.2

15.7

14.1

7.0

4.5

1.8

3.5

2.4

3.5

1.9

3.6

3.1

1.9

0 10 20 30 40 50 60 70 80 90 100

Information management

Warehousing

Packaging

Inspection & Testing

Assembly

Material handling

Machining

Process control

Mould/die change-over

1-10% 11-20% 21-30% 31-40% 41-50% 51-70% 71-90% 91-100%

Percentage of Respondents

(42.4% automated)

(78.4% automated)

(67.3% automated)

(69.5% automated)

(61.4% automated)

(68.4% automated)

(68.9% automated)

(60.8% automated)

(83.5% automated)

FMM-MIER Business Conditions Survey

2H2017

i

AUTONOMOUS

ROBOTS

CLOUD

COMPUTINGCYBERSECURITY SIMULATIONBIG DATA

43 (10.5%)

229 (56.1%)

101(24.8%)

35 (8.6%)

143 (35.0%)

158 (38.6%)

76 (18.6%)

32 (7.8%)

68 (16.7%)

251 (61.5%)

58 (14.2%)

31 (7.6%)

30 (7.4%)

270 (66.7%)

78 (19.3%)

27 (6.7%)

110 (27.0%)

173 (42.4%)

114 (27.9%)

11 (2.7%)

Using

Not Using

Intend to Use

Unaware

Adoption of Industry 4.0 technology among manufacturers

FMM-MIER Business Conditions Survey

2H2017

i

17 (4.2%)

258 (70.2%)

55 (13.5%)

49 (12.1%)

29 (7.1%)

292 (71.7%)

51 (12.5%)

35 (8.6%)

68 (16.7%)

226 (55.7%)

75 (18.5%)

37 (9.1%)

97 (23.8%)

185 (45.5%)

100 (24.6%)

25 (6.1%)

Using

Not Using

Intend to Use

Unaware

AUGMENTED

REALITY

ADDITIVE

MANUFACTURIN

G

SYSTEM

INTEGRATIONINERNET OF

THINGS (IOT)

Adoption of Industry 4.0 technology among manufacturers (cont.)

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

8 Industry 4.0 Transformational Needs

Traditional Manufacturing Disruptive Manufacturing

Resource Focused Knowledge Intensive

Labour Intensive High Skill Talent

Requires Control Requires Collaboration

Vertical Horizontal Trust Collaboration

Mass Production Mass Collaboration

Proximity is important Location less significant

Rigid Flexible

Source: NST August 16, 2017 Riding the Industry 4.0 wave

FMM Digital Manufacturing Hub

FMM - MDEC Partnership: Future Proof Malaysian Manufacturers Via Digital Transformation

Hands-on

experience

on digital

transformation and

Industry 4.0

Reskilled talent

in new skill areas

and emerging

technologies

Catalysed by Ecosystem Players

Solution Providers & SIs And many more…

FMM Digital Manufacturing Hub

Structured

approach

to embark on digital

transformation

FMM and MDEC Signing the MOU on the Digital Manufacturing Hub at the FMM Industry 4.0 Conference 2019, witnessed by Datuk Y.B. Datuk Ignatius Darell Leiking, Minister of International Trade and Industry Malaysia

FMM and MDEC Signing the MOU on the Digital Manufacturing Hub

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