Digitalization stimulates the potential of the industrial chain

MVME117A Digital technology is a typical general purpose technology, which is widely used in various industries of national economy and has a profound impact, and becomes an important force to reconstruct the competitive advantage of manufacturing industry. Manufacturing activities include not only the value chain system such as machinery and equipment, factories, logistics and operation management within enterprises, but also the whole life cycle of products from research and development design to processing and manufacturing to marketing, customer service and product recycling, as well as the business ecology formed by manufacturing enterprises and upstream and downstream suppliers and partners. Therefore, the digitalization of manufacturing industry involves the internal production chain of enterprises, the whole life cycle of products and the business ecology. The digital transformation of manufacturing industry can effectively stimulate the potential of the industrial chain.

MVME117A First, it helps to maintain comprehensive cost advantages. The comprehensive cost of manufacturing is the result of the combined action of wages, energy, land, logistics and other costs, but also affected by labor productivity, which can be measured by unit labor cost. The rise of wages is the main reason for the weakening of the cost advantage of China’s manufacturing industry, but if the labor productivity increases significantly, it can offset the impact of the rise in wages, so that the comprehensive production cost advantage of the manufacturing industry can be maintained. Although the digital and intelligent manufacturing equipment and systems have a large one-time investment, they can work continuously without stopping, which can inhibit the rise of unit labor costs from many aspects. At present, digital production equipment such as robots and machine tools are applied in more and more industrial fields and production links. Significantly improving manufacturing production efficiency through “machine replacement” has become an important means for Chinese enterprises to cope with rising labor costs. At the same time, with the breakthrough of digital technology such as big data and artificial intelligence, artificial intelligence technology such as machine vision has been widely used in the composition, specification and performance testing of intermediate products in the production process, as well as the quality testing of final products, which has improved the detection efficiency and product quality while replacing labor and reducing wage expenses.

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MVME117A Second, it will help promote the upgrading of the industry to the high-end. The manufacturing industry needs to continue to upgrade to a higher technical level, higher added value, more green and low-carbon direction, and the deep integration of digital technology and industry is an important driving force for the upgrading of the manufacturing industry. With the application of simulation software, digital twin, artificial intelligence, 3D printing and other technologies in product development, prototyping, simulation, performance testing, optimization and improvement of products in the digital virtual environment can accelerate product development speed, shorten development cycle, and reduce research and development costs. The intelligent machine and intelligent manufacturing system are more accurate and stable, which can effectively improve the stability and reliability of product quality, and optimize the process parameters of the production line, improve the yield and reduce the loss by analyzing the massive data generated during the operation of each link of the production line and each equipment. Based on the analysis of massive data in the production process, supply chain, product operation, and user use, the intelligent production system can automatically provide customized value-added services, meet the diversified service needs of users, and promote the transformation of the manufacturing industry from production-oriented manufacturing to service-oriented manufacturing.

MVME117A Third, it will help strengthen the resilience of supply chains. In the face of the rising trend of anti-globalization and the impact of the COVID-19 epidemic, the importance of improving the resilience of the supply chain and strengthening the security of the industrial chain has been highlighted. The resilience of the supply chain is reflected in adapting to diversified needs, responding quickly to market changes, and responding to external shocks. Manufacturing companies can significantly enhance supply chain resilience by promoting digitalization and intelligentization of the entire supply chain, from raw materials to final product delivery, from research and development to brand marketing. First, the application of advanced digital technologies such as intelligent robots and artificial intelligence can improve the flexibility of the production line. Product development, processing and manufacturing, and supply chain management systems can quickly design products, mobilize material supply, and arrange production lines according to the order situation. When needed, the configuration and process parameters of the production line can also be adjusted in a short time according to the order situation. Promote the transformation of production mode from mass production to mass customization. Second, through the digital and intelligent transformation of the supply chain connecting suppliers at all levels and manufacturing enterprises and sales enterprises, manufacturing enterprises can immediately understand the market demand, predict the market trend, and coordinate the production activities of the entire supply chain according to user orders or forecast data, improve the response speed to market changes, and realize the high efficiency and low cost operation of enterprises in the supply chain. Third, leading enterprises in the global value chain can grasp production, logistics, and sales data in a timely manner through ubiquitous connected networks, real-time data collection, and intelligent decision-making systems, and strengthen control over factories and suppliers distributed around the world. The fourth is the coding and software of manufacturing experience and knowledge, which can enable manufacturing enterprises to master the constantly updated technology and knowledge in the process of processing and manufacturing, and expand production or restore production capacity according to needs when natural disasters and other impacts occur.