Steve Bieszczat, DELMIAWorks CMO12.21.23
Advances in artificial intelligence are enabling new levels of automation and data-driven decision-making. At the same time, the ready availability of cloud-based manufacturing solutions, with their scalability and compute power, are helping to level the playing field for small to medium manufacturers.
In 2024, we’ll see a continued move toward greater adoption of smart manufacturing across medical device companies of all sizes.
While manufacturing automation/tools/robots are inherently on-premises systems, we’ll see these systems connect to cloud-based solutions that offer new types of augmented automation or intelligence.
The following are the top technology trends to watch out for in the upcoming year.
AI is Increasingly Supplementing Worker Knowledge
Medical device manufacturers will increasingly use artificial intelligence to supplement the knowledge of workers in their organizations. This is being driven by two factors.
One is the graying workforce where manufacturers need to capture the insights of their in-house experts before they retire. Early projects among large medical device manufacturers are not only capturing what an expert has done in the past; they’re also using AI to replicate what that expert would have done in a new situation based on their previous approach to the job.
The other factor is the continuing industry consolidation where manufacturers going mergers and acquisitions end up losing some experts while building more complex businesses. Many times, the person in charge of scheduling or forecasting doesn’t really understand how that process was handled by the acquired company. This is leading more medical device manufacturers to rely on intelligence-driven forecasting and scheduling software to automate processes and apply consistent best practices across the organization.
AI Helps Extract Greater Value from Machines
More medical device manufacturers will rely on artificial intelligence to get even greater value out of the machine vision systems they’ve been running for years. Now it’s possible to upload pictures of what good and bad parts look like to an AI engine in Cloud to train the machine vision system.
Then, live camera feeds from the system to the cloud can automate the process of identifying bad parts instead of relying on manual inspectors. This introduces a level of efficiency while reducing costs and minimizing the risk of manual errors.
AI Translates Conversations in Near Real Time
One of the persistent challenges for medical device manufacturers with global markets and supply chains is the natural language barrier. Even if all parties agree to communicate in a common language, most often English, minor translation errors can lead to misunderstandings. In 2024, we will see web conference services start to provide AI-driven, automated translations of conversations in near real time.
Robots as a Service Becomes a Practical Business Model
The rapid, AI-driven learning of robots is making robots as a service a practical business model. The way a robot learns is being advanced all the time by just putting it through the motions and giving it recovery routines. However, the previous pace of learning meant it wasn’t practical to use a robot unless a medical device manufacturer was using it to do the same thing for a year or more.
Now, with the rapid pace of learning, a robot can be trained to do half a dozen different jobs in just a few days. And since the software running the robot is in the cloud, the person programming it doesn’t need to physically be there; they can be anywhere in the world. This makes robotics as a service a viable alternative to purchases or long-term leases.
Sustainability Becomes Indispensable
Sustainability will become a part of day-to-day manufacturing. Some sectors, particularly packaging producers for medical products, are starting to make fundamental changes to their products by embracing compostable materials. However, the greater awareness of environmental impact by consumers and businesses, alike, will lead more medical product manufacturers overall to reconsider the impact of their production processes, handling of scrap, and energy use.
Additionally, as many large, global businesses establish goals to become carbon-neutral, they are placing demands on manufacturers to report their carbon emissions. The good news is that an enterprise resource planning system with functionality for managing a bill of manufacture, or BOM, can be used to automate the calculation and reporting of these emissions.
Supply Chain Challenges Continue
Supply chain challenges will continue to be bifurcated in 2024. Resins, steel, and other raw materials are now generally available, again making just-in-time procurement a practical strategy for many companies. At the same time, manufacturers of medical devices that rely on electronic components are continuing to see delays of nine months or more due to the continuing chip shortage.
With incentives from the government, we’re seeing new semiconductor plants being built here in the United States, but it will be another one or two years before they come online. For manufacturers that require chips and other highly engineered components, it's not just about paying a premium. It’s also important to build and maintain strong relationships with vendors of these components to stay at the front of the line in accessing them.
The Nature of Mergers & Acquisitions is Changing
The rise of interest rates is changing the nature of mergers and acquisitions. Economic buyers’ activity is down while strategic buyers are continuing to execute.
Perhaps the biggest strategic trend is the move to vertical integration where companies are buying and integrating manufacturers with different areas of expertise, from plastics processing to metal fabrication, assembly, and packaging to name just a few. These vertically integrated companies are then offering medical device companies one-stop-manufacturing or manufacturing as a service.”
Another factor that will drive vertical integration through mergers and acquisitions is customers’ increasing desire to replace their open-loop supply chain with a more closed-loop supply chain—buying more from fewer vendors.
In a similar vein, customers are demanding to know the genealogy of parts, where they came from and how they were made. Even customers not working with consolidated supply chains are seeking to closely monitor their supply chains by requiring suppliers and contract manufacturers in the medical device industry to document the parts and products they are delivering.
Manufacturers are Moving to Near Lights-Out Production Shifts
More medical product manufacturers will move to near lights-out production shifts, supported by the use of robots.
Running a full lights-out operation can require a significant upfront investment and is best-suited for large production runs of the same products or components. But even small batch operations can gain the benefits of near-lights-out operations where flexible robots handle increasing percentages of the pick and place operations.
Steve Bieszczat is the chief marketing officer at DELMIAWorks, responsible for DELMIAWorks’ brand management, demand generation, and product marketing. Prior to DELMIAWorks, Bieszczat held senior marketing roles at ERP companies IQMS, Epicor, and Activant Solutions. His focus is on aligning products with industry requirements as well as positioning DELMIAWorks with the strategic direction and requirements of the brand’s manufacturing customers and prospects. Bieszczat holds an engineering degree from the University of Kansas and an MBA from Rockhurst.
In 2024, we’ll see a continued move toward greater adoption of smart manufacturing across medical device companies of all sizes.
While manufacturing automation/tools/robots are inherently on-premises systems, we’ll see these systems connect to cloud-based solutions that offer new types of augmented automation or intelligence.
The following are the top technology trends to watch out for in the upcoming year.
AI is Increasingly Supplementing Worker Knowledge
Medical device manufacturers will increasingly use artificial intelligence to supplement the knowledge of workers in their organizations. This is being driven by two factors.
One is the graying workforce where manufacturers need to capture the insights of their in-house experts before they retire. Early projects among large medical device manufacturers are not only capturing what an expert has done in the past; they’re also using AI to replicate what that expert would have done in a new situation based on their previous approach to the job.
The other factor is the continuing industry consolidation where manufacturers going mergers and acquisitions end up losing some experts while building more complex businesses. Many times, the person in charge of scheduling or forecasting doesn’t really understand how that process was handled by the acquired company. This is leading more medical device manufacturers to rely on intelligence-driven forecasting and scheduling software to automate processes and apply consistent best practices across the organization.
AI Helps Extract Greater Value from Machines
More medical device manufacturers will rely on artificial intelligence to get even greater value out of the machine vision systems they’ve been running for years. Now it’s possible to upload pictures of what good and bad parts look like to an AI engine in Cloud to train the machine vision system.
Then, live camera feeds from the system to the cloud can automate the process of identifying bad parts instead of relying on manual inspectors. This introduces a level of efficiency while reducing costs and minimizing the risk of manual errors.
AI Translates Conversations in Near Real Time
One of the persistent challenges for medical device manufacturers with global markets and supply chains is the natural language barrier. Even if all parties agree to communicate in a common language, most often English, minor translation errors can lead to misunderstandings. In 2024, we will see web conference services start to provide AI-driven, automated translations of conversations in near real time.
Robots as a Service Becomes a Practical Business Model
The rapid, AI-driven learning of robots is making robots as a service a practical business model. The way a robot learns is being advanced all the time by just putting it through the motions and giving it recovery routines. However, the previous pace of learning meant it wasn’t practical to use a robot unless a medical device manufacturer was using it to do the same thing for a year or more.
Now, with the rapid pace of learning, a robot can be trained to do half a dozen different jobs in just a few days. And since the software running the robot is in the cloud, the person programming it doesn’t need to physically be there; they can be anywhere in the world. This makes robotics as a service a viable alternative to purchases or long-term leases.
2024 Business Trends
Not all medical device manufacturing developments are being driven by technology. Market factors are also shaping a number of trends we’ll see in 2024.Sustainability Becomes Indispensable
Sustainability will become a part of day-to-day manufacturing. Some sectors, particularly packaging producers for medical products, are starting to make fundamental changes to their products by embracing compostable materials. However, the greater awareness of environmental impact by consumers and businesses, alike, will lead more medical product manufacturers overall to reconsider the impact of their production processes, handling of scrap, and energy use.
Additionally, as many large, global businesses establish goals to become carbon-neutral, they are placing demands on manufacturers to report their carbon emissions. The good news is that an enterprise resource planning system with functionality for managing a bill of manufacture, or BOM, can be used to automate the calculation and reporting of these emissions.
Supply Chain Challenges Continue
Supply chain challenges will continue to be bifurcated in 2024. Resins, steel, and other raw materials are now generally available, again making just-in-time procurement a practical strategy for many companies. At the same time, manufacturers of medical devices that rely on electronic components are continuing to see delays of nine months or more due to the continuing chip shortage.
With incentives from the government, we’re seeing new semiconductor plants being built here in the United States, but it will be another one or two years before they come online. For manufacturers that require chips and other highly engineered components, it's not just about paying a premium. It’s also important to build and maintain strong relationships with vendors of these components to stay at the front of the line in accessing them.
The Nature of Mergers & Acquisitions is Changing
The rise of interest rates is changing the nature of mergers and acquisitions. Economic buyers’ activity is down while strategic buyers are continuing to execute.
Perhaps the biggest strategic trend is the move to vertical integration where companies are buying and integrating manufacturers with different areas of expertise, from plastics processing to metal fabrication, assembly, and packaging to name just a few. These vertically integrated companies are then offering medical device companies one-stop-manufacturing or manufacturing as a service.”
Another factor that will drive vertical integration through mergers and acquisitions is customers’ increasing desire to replace their open-loop supply chain with a more closed-loop supply chain—buying more from fewer vendors.
In a similar vein, customers are demanding to know the genealogy of parts, where they came from and how they were made. Even customers not working with consolidated supply chains are seeking to closely monitor their supply chains by requiring suppliers and contract manufacturers in the medical device industry to document the parts and products they are delivering.
Manufacturers are Moving to Near Lights-Out Production Shifts
More medical product manufacturers will move to near lights-out production shifts, supported by the use of robots.
Running a full lights-out operation can require a significant upfront investment and is best-suited for large production runs of the same products or components. But even small batch operations can gain the benefits of near-lights-out operations where flexible robots handle increasing percentages of the pick and place operations.
Steve Bieszczat is the chief marketing officer at DELMIAWorks, responsible for DELMIAWorks’ brand management, demand generation, and product marketing. Prior to DELMIAWorks, Bieszczat held senior marketing roles at ERP companies IQMS, Epicor, and Activant Solutions. His focus is on aligning products with industry requirements as well as positioning DELMIAWorks with the strategic direction and requirements of the brand’s manufacturing customers and prospects. Bieszczat holds an engineering degree from the University of Kansas and an MBA from Rockhurst.