Opinions expressed by Digital Journal contributors are their own.
Manufacturing is undergoing a significant transformation, propelled by the continuous rise of modern technologies such as Artificial Intelligence (AI), hyperscalers, and Industry 4.0 principles. These transformative forces are revolutionizing the way products are designed, produced, and delivered, leading to unparalleled opportunities and redefining what is achievable.
According to a recent report by Forbes, the AI market size is expected to reach $407 billion by 2027 and have an estimated 21% net increase in the United States GDP by 2030. This huge number testifies to the undeniable influence of AI and presents limitless possibilities and a bright future ahead for the manufacturing industry.
Rajarshi Ghose Dastidar is one of the top AI and analytics experts in the management consulting industry, and he emphasizes the transformative impact that AI is having specifically in the manufacturing sector.
He explains why the need arises in the first place. “Globally, manufacturing organizations are facing increased challenges, including market volatility, increased competition, supply chain complexity, rising costs, shortage of skilled workers, evolving customer demands, and cybersecurity risks. Addressing these challenges requires strategic planning, agility, and an increased emphasis on leveraging technological advancements, including automation, Artificial Intelligence, and Internet of Things. Organizations that are ‘early adopters’ of these technologies are more likely going to be successful and face lesser disruptions.”
Optimizing Supply Chain and Operations
The transformative potential of AI in manufacturing extends beyond the factory floor. AI algorithms are alerting maintenance teams to take preventive action by detecting early warning signs of equipment failure or performance degradation even before a breakdown occurs. This proactive approach minimizes production disruptions, optimizes uptime, and enhances overall supply chain efficiency. It effectively manages a company’s flow of goods, information, and finances, from sourcing the raw materials to delivering finished products to end-users.
Rajarshi emphasizes that AI has expanded its applications across the spectrum of supply chains, including predictive maintenance, quality control, defect detection, supply chain optimization, energy efficiency, and sustainability. According to a report by the International Energy Agency (IEA), AI-enabled energy management systems can reduce industrial energy consumption by up to 10%.
He adds, “AI is used in operations to create digital twins and virtual simulations of manufacturing processes. These simulations allow manufacturers to test and optimize their operations in a virtual environment, reducing the need for physical prototypes and expensive experimentation. AI can also analyze the simulation data to identify potential process improvements and improve various parameters. For supply chain optimization, AI can crunch vast amounts of data and generate insights to predict demand patterns, optimize inventory levels, suggest efficient transportation routes, and identify potential bottlenecks or disruptions in the supply chain.”
Enhancing Customer Experience
Manufacturers are leveraging AI to offer customized products at scale by analyzing customer preferences and market trends, leading to improved customer satisfaction and sales. In addition, customers are also able to interactively design and visualize products they are interested in using AI-driven product configurators that offer real-time customization and recommendation.
Rajarshi mentions, “In this age of digital, each customer cares about hyper-personalized marketing messaging and personalized experience. Each customer generates data which is a goldmine of information, helping organizations provide them with tailored content, customized offers, and curated products based on their individual preference, purchase history, and behavior. Also, AI is now providing enhanced product support through proactive troubleshooting guidance.”
Digitizing Finance
The synergy between AI and finance is particularly evident in manufacturing. Rajarshi shares his vast experience and explains, “AI solutions are increasingly implemented to automate financial reporting processes by FP&A that drastically reduces the manual efforts related to month-end closure reporting and data reconciliations. Manufacturers are able to make informed decisions regarding working capital management, inventory optimization, and cash flow forecasting by identifying potential cash flow gaps.”
Rajarshi is at the forefront of the AI revolution
Rajarshi has ten years of experience designing and implementing large-scale digital transformation and analytics modernization programs for manufacturing, consumer products, and retail organizations. He has a Bachelor’s Degree in Electrical & Electronics Engineering from the Manipal Institute of Technology in India and a Master’s in Supply Chain Management (STEM program) from The University of Texas at Dallas. His exemplary technological knowledge was evident as he had received the Dean’s Excellence Scholarship and graduated from his Master’s program with Honors with Highest Distinction, being part of the top 1% of the graduate program.
Rajarshi continues to apply his learnings, now working in a top consulting firm as a Strategy & Analytics Leader, helping improve supply chain, operations, finance, and customer insights capabilities. With a track record of successfully delivering complex, global programs, Rajarshi has established himself as a trusted advisor in the manufacturing sector.
He shares, “AI empowers us to see beyond the limits of human cognition, unlocking new realms of knowledge, creativity, and problem-solving that will shape the future of humanity. It is the bridge between human ingenuity and machine capabilities, amplifying our collective intelligence and propelling us towards a future of boundless possibilities.”
This enthusiasm for the potential of AI and data-driven insights has driven him to continuously upskill himself and stay at the cutting edge of industry trends.
