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Industry 4.0 case studies

Industry 4.0 case studies

Lamborghini shifts gears into smart manufacturing's fast lane

Legendary exotic car maker Lamborghini decided to shift gears on production and build a new smart factory from the ground up for its new Urus — the world's first 'super sport utility vehicle.

The famous auto manufacturer turned to KPMG's experts for their guidance and collaboration as it set out to build what would be its first factory of the future. The i4.0 journey began with a targeted customer market in mind for the new model. And with a clear understanding of the needs and preferences of the targeted market segment, the client and KPMG collaborated on a comprehensive i4.0 strategy that defined how the factory, its technology and its processes should work.

With a strategic i4.0 roadmap and its precise objectives in hand, KPMG developed and implemented the complex IT platform that manages manufacturing operation in the entire assembly and finishing halls. The factory features an unprecedented modular design, using digital sensors and robots in a collaborative environment.

Boasting the most-advanced Industry 4.0 standards, the futuristic facility merges virtual worlds and live production by integrating robotics and machine-to-machine collaboration with Lamborghini's skilled production workers. Each vehicle moves along the production floor via automatic guided vehicles (AGVs) that autonomously transport each car to the appropriate work island.

Electronic monitoring, data collection and reporting from every corner of the shop floor are available instantly and workers can control every aspect of production on site — or remotely from any location — using tablets that fully eliminate reliance on paper documents.

Our ground-breaking Lamborghini project proved again the critical importance of considering value before technology on the i4.0 journey, says KPMG's Italy-based project leader Carmelo Mariano.

“Elements of the value chain were incorporated into their overall strategy. And that's how companies should be thinking today as they pursue i4.0 transformation. Understand the value and performance factors of the business and then pursue the appropriate technology and related capabilities.” Carmelo Mariano Partner, Advisory and i4.0 Project and Country Leader KPMG in Italy

From technological scouting to the executive phase, KPMG in Italy accompanied Lamborghini on the path to the industry 4.0! Watch the video of the i4.0 Lamborghini factory.

Transforming a pharmaceutical giant - one step at a time

A multinational pharmaceutical set out on an ambitious i4.0 transformation journey that began with the initial goal of enhancing performance within its manufacturing processes and supply chain. But the organisation's original business plan for digital transformation — one year in the making — was deemed to provide inadequate return on investment and was therefore postponed by the management board pending revisions.

The business turned to KPMG's digital experts for insights and guidance on how best to quickly strengthen its plan and position it for immediate implementation. The joint team worked to streamline the existing substantial plan. They took its diverse technology initiatives and realigned them within a structured i4.0 roadmap, prioritised and sequenced for performance and value.

The KPMG team's revised approach revealed to company leaders the critical importance of putting performance ahead of technology — and not jumping too soon to solutions. Instead, processes and decision making were mapped at an enterprise-wide level. Prioritising of activities then determined where digital would most help achieve the company's business strategy. Crucially, these select initiatives were deliberately sequenced in a way that optimised returns for the company.

The result? The revised transformation plan has created a precise new path promising significantly improved returns — a fourfold ROI increase from original forecasting. And a shorter timeframe than initially anticipated now exists. The company's i4.0 journey is underway with full board approval and much anticipation of the exciting changes ahead.

Smart farming blooms in South Korea

One of the world's largest mushroom-farming operations — a South Korean company producing more than 23 million kilograms of mushrooms annually — recognised the need to dramatically transform its sprawling organisation amid rising labor costs and fierce competition in the global market.

To drive new levels of value and competitiveness in the digital economy, a bold transformation toward 'smart farming' was deemed inevitable. The company embarked on an i4.0 journey in partnership with KPMG's proven team of digital experts.

With value and performance parameters established and a comprehensive i4.0 roadmap in place, the client collaborated closely with the KPMG team to drive its ambitious transformation journey forward.

Real-time production data was collected and analysed using IoT technology, digital sensors and a state-of-the-art data analytics platform. Manual tasks across the farming, sorting and packing ecosystem were largely mechanised using modern automation equipment and robots. The company moved from a heavy reliance on manual labor to a mechanised digital enterprise.

The result? Data analysis has revealed a new production approach that significantly improves crop yields by optimising the fertiliser-to-soil ratios used in mushroom cultivation — generating a remarkable 30-percent increase in output.

In addition, the deployment of automation equipment and robots — combined with analysis of workers' movements in the production process — revealed new business insights. The company has therefore reorganised its factory layout, further optimising productivity and lowering labor costs.

The company's holistic approach has dramatically improved its value, performance and competitiveness in terms of productivity, efficiency and quality — and its future prospects for success in the digital economy.

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