Car tech: A fully automated car door assembly line with virtualisation capabilities in the Siemens factory.
Although cars were flying off the shelf in Malaysia during the last few weeks of 2015, this year is shaping up to be a new ballgame altogether.
A research firm recently revealed that the outlook for Malaysia’s auto industry in the months ahead is on the cautious side, with living costs on the rise and the ringgit continuing to slide.
The impact of these factors is being felt across the automotive manufacturing sector in the form of higher component costs and overall lowering margins.
On the flipside, e-commerce has seen a growing global market for auto parts, with America comprising the majority of the consumer base.
According to a survey published in the Borneo Post and conducted by a top e-commerce platform provider, online demand for auto parts and accessories among vehicle owners is set to continue increasing over the next few years.
It is inevitable that competition will grow stiffer, as we begin to see more automotive distributors and vendors in Malaysia as well as other countries turning to these online channels to access foreign markets.
According to Aseanbriefing.com, Malaysia is one of the top automobile producers in the Asia Pacific region, with an annual production of around 0.65 million cars and a combined total of over 600 plants for finished cars and part makers.
To sustain this industry amid the current ringgit situation and the increase in cross-border trading, automotive manufacturers will have to be one step ahead in its technology and processes.
Leveraging technology
The progression of technology has always been integral to each industrial revolution wave since the 1700s. Today, digitalisation is revolutionising manufacturing processes across industries, enabling businesses to gain a competitive edge over other companies.
In a nutshell, digital solutions work to link up automation components such as controllers and motor management, including other hardware and software interfaces, with a host of sensors and actuators.
This way, plant operators gain enhanced visibility of the factory’s processes as manufacturing data is centrally consolidated and updated in real-time. This data trove also signifies the transformation of the entire product and production lifecycle, equipping manufacturers with greater control over their product quality, factory efficiency and time-to-market targets.
Improving production processes
Product design and product planning, for example, are two key processes in automotive production, with the potential to determine factory performance and overall product quality.
Typically, it takes months for a particular car model design to be fully developed. A significant amount of time goes into creating and recreating physical prototypes, which undergo time-consuming tests to determine its vehicle performance and suitability for a range of applications. With digital technologies, engineers will be able to leverage on its simulation capabilities to create and test these virtualised prototypes.
Overall, expenses and time spent are reduced, as fewer physical models have to be built and assessed during the design process.
Production planning is also optimised with digital solutions that allow manufacturers to simulate the placement of new production lines to determine the best plant layout and equipment locations.
Being able to perform feasibility analysis on digital models of assembly manufacturing processes also increases the likelihood of achieving time-to-market targets as potential issues are eliminated from the get-go.
Furthermore, with proper alignment of manufacturing processes with product designs, there is greater quality control and wastage in the form of scraps and rework is reduced.
Change is the new constant
In this world of ever-changing market demands and stiffening global competition, businesses need to be nimble and adjust quickly – whether by adopting new
technologies or reassessing their company strategy.
Considering the challenges faced by Malaysian auto manufacturers, it is important for them to leverage digital solutions as a way to elevate their production processes to the next level.
With thorough planning and the enhancement of efficiencies, manufacturers can lower overall costs and ensure quality output.
This way, Malaysia’s automotive sector will be able to secure not just a local but global competitive advantage as well.
Adam Yee is the senior vice president of division lead digital factory and process industry and drives, Siemens Malaysia.
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