Factory of the future will reduce conversion costs up to 40%: BCG

A study by The Boston Consulting Group finds manufacturers who invest in the factory of the future now can look forward to saving 40% of their conversion costs in 10 years. But they’ll have to adopt modular production concepts and new technologies, as well as optimize their processes.

According to the survey of 750 production managers, 74% of respondents have implemented elements of the factory of the future or plan to do so within the next five years, but 25% reached their related targets last year.  The factory of the future requires an investment of 13% to 19% of one year’s revenue over 10 years.

The growing complexity is the central challenge of production. The factory of the future will have to handle a much larger number of product variations, while at the same time increasing productivity

Technologies viewed to be highly relevant include smart robots, big data and analytics, augmented reality, digital plant logistics, and 3D production simulations.

>>Read more by Plant, December 6, 2016; or Download the BCG study.