Smart Manufacturing Drives Efficiency Gains

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Recent statistics from the National Bureau of Statistics indicate a significant ongoing transformation in China's manufacturing sector, characterized by the integration of intelligent technologiesThe figures from July show that the added value of high-tech manufacturing industries, with a significant scale, grew by an impressive 10% year-on-yearThis growth rate consistently outpaces that of all large-scale industries throughout this yearNotably, in terms of intelligent products, the production of civilian drones, virtual reality devices, service robots, integrated circuits, and industrial robots has experienced double-digit growth, with year-on-year increases of 84.7%, 55.7%, 41.6%, 26.9%, and 19.7% respectively.

Experts believe that this transformation towards intelligence significantly enhances the quality and efficiency of manufacturing development, providing crucial support for advancing a new phase of industrialization

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As a result, the ongoing improvements in transformation quality reflect an expansive scope of smart manufacturing, showcasing deeper integration and elevated quality levels within the industry.

At the national level, there has been a concerted effort to guide and provide support for the digital transformation of manufacturingMore than 20 provinces have unveiled development plans, action initiatives, and implementation schemes to reinforce this transitionThe policy framework surrounding smart manufacturing is continuously evolving, establishing a more robust supportive environment for growth.

The underlying digital infrastructure has been remarkably strengthenedAccording to Jia Zijun, Deputy Director of the Information and Software Industry Research Institute at CCID Consulting, China has constructed the world’s most extensive fiber optic and mobile broadband networkBy the end of 2023, the total computing power of the nation reached approximately 230 exaFLOPS, ranking second globally

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Additionally, the industrial internet has made significant strides, establishing five foundational systems encompassing networking, identification, platforms, data, and security.

The evolution of digital technologies and industry supply levels has seen substantial advancementsChina's capabilities in cloud computing, big data, and blockchain technology innovation have continued to position the country among the world’s leadersThe core artificial intelligence (AI) industry has rapidly expanded, with more than 4,400 enterprises entering the market and yielding continuous innovations in smart chips, development frameworks, and universal modelsA comprehensive digital technology and industrial system is beginning to take shape.

Moreover, the effects of digital transformation within small and medium-sized enterprises (SMEs) are noteworthyStatistics reveal that 46% of SMEs have enhanced their competitiveness in products and services through digital transformation, while 42.1% reported significant improvements in operational efficiency

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Zhao Gang, Director of the Industrial Research Institute, emphasized these transformative effects on efficiency.

The rise of artificial intelligence, particularly in large model technologies, has been remarkable this yearThis advancement is facilitating a faster integration of AI into various manufacturing processes such as research and design as well as productionZhao Gang further explained that the deployment of industrial large models is accelerating in enterprises, with humanoid robots beginning trials on production lines for automotive and equipment manufacturing, effectively elevating the capabilities of smart manufacturing.

For instance, Lenovo Group has partnered with an automotive battery company to pioneer an industry-leading discriminatory AI small sample lifelong learning technologyThis collaboration has resulted in the development of end-to-end AI quality inspection equipment for factory production lines, which has successfully reduced costs by 50% to 80% while increasing efficiency by 15% to 40%.

Additionally, Tencent Cloud has assisted a manufacturer of electrical cabinets, WanControl Intelligent Manufacturing, in developing the “WanZhiCloud” industrial internet platform

During the design process, Tencent Cloud's OCR large model transforms electrical cabinet design schematics into high-quality model training data through extensive annotation and trainingWith the input of related design parameters, the “WanZhiCloud” platform can automatically generate initial draft layouts, reducing a task that previously took three to four days to complete to just three minutes today.

According to Zhu Keli, Executive Director of the China Information Association and Founder of the New Economic Research Institute, the shift towards intelligent manufacturing not only enhances productivity but also decreases the need for manual operations via automation and intelligent technologies, thus shortening production cyclesMoreover, it optimizes supply chain management, achieves transparency, and allows for real-time monitoring, all while lowering inventory and logistics costs

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The approach encourages innovative growth in manufacturing through data analysis and forecasting, assisting companies in keeping pace with market dynamics and consumer demand.

Jia Zijun analyzed that the intelligent transformation of the manufacturing sector fundamentally overhauls resource allocation, process optimization, and workflow reorganization by creating a new model of smart, collaborative, and networked industriesThis shift breaks traditional spatial and temporal limits, broadening the scope and depth of industrial division of labor, and erasing barriers between supply and demand while reshaping production paradigms.

China, as a manufacturing giant, possesses a complete industrial system and a massive market advantage, holding the top position globally in overall manufacturing scale for 14 consecutive yearsCoupled with the digital economy, which has been robustly placed second worldwide for several ongoing years, China boasts comprehensive information infrastructure, extensive data resources, and diverse application scenarios

The nation is currently undergoing a pivotal transition from being a major manufacturing and network country to becoming a strong manufacturing and network powerhouseThis dual advantage lays a solid foundation for the intelligent transformation of its manufacturing sector.

However, the digital transformation of SMEs is both a focal point and a challengeJia Zijun recommends tailored policies for individual enterprises to deep dive into practical strategies for intelligent manufacturing transformationHe suggests supporting leading companies in focusing on a comprehensive, process-wide, and ecosystem-wide digital transformation while strengthening the application of new technologies and nurturing innovative models to establish a variety of "digital-leading" companiesMeanwhile, it's essential to assist SMEs in enhancing their connections with leading enterprise digital platforms, promoting a "chain-like" transformation that compensates for the resource and capability deficits of individual companies.

Furthermore, Zhao Gang argues for decreasing the transformation costs for SMEs, encouraging manufacturers to provide inclusive products and services to support smaller manufacturing enterprises

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