HAWASSA UNIVERSITY

INSTITUTE OF TECHNOLOGY

FACULITY OF MANUFACTURING

DEPARTIMENT: ELECTROMECHANICAL ENGINEERING

Assignment-1: current application of AI in manufacturing
industry
Course: computer integrated manufacturing
Name ID
Yonatan Yohanes Tech/1880/10
Sub to: Mebratu. T
Sub date: Apr 7/2023
Hawassa
AI applications in manufacturing industry
Advances of applied artificial intelligence associated to the smart manufacturing concept Data
analytics together with AI technology is a combination, which can improve efficiency, product
quality and can increase safety in the production process. The manufacturing sector is thus one of
the main driving factors pushing the development of applied AI technology. In these section four
areas, which are undergoing a rapid digitalization and optimization and highly influenced from
AI algorithms are considered.

1. Quality assurance inspections

Using advanced imaging comparison technology, organizations such as BMW and
Canon have utilized artificial intelligence solutions, which can distinguish
inconsistencies and anomalies from product design standards and catch defects that
would not be undetectable to the human eye. Bosch was able to embed AI into their
manufacturing process, which improved the cycle time and automated defect type
detection, visual inspection success rate and the quality inspection performance. They
also claim to have reduced their CO2 emissions from their manufacturing plants by more
than 10% over the past two years and the testing time of their products was reduced by
45% saving them $1.3 million. With the new AI systems in place the reported escape rate
of components with defects is at 0% and a false alarm rate of less than 0.5%, whereas
with the old systems with mainly human inspectors, the error rate was ranging from 20%
to 30%, due to various reasons like optical illusions and imprecisions of eyesight. With
such systems the quality stays constant, which benefits business by increasing their
customer satisfaction, while the production time and costs involved for a product or a
service decrease. Several approaches in machine learning are available for such methods.
Supervised learning can be used to differentiate between certain characteristics for
products that have only a limited number of features. With sufficient data available, it is
therefore possible to perform a classification task and thus find quality defects more
quickly. These classifications can be optimized by neural networks and trained to near
 perfection. The problem with classification and supervised learning arises when states
occur that cannot be clearly foreseen. In order to make an accurate prediction,
appropriate algorithms with desired input and output data must be trained. But if the
output data is not available, a switch must be made to other methods. In such cases, the
clustering methods of unsupervised learning can be used. Clustering is used to find
patterns and groupings in data. No predefined output data is needed to find a subdivision.
2. Preventative maintenance
One of the main reasons why preventative maintenance could be useful is the capability
for predicting when a mechanical part may require replacing. Combined with historical
evidence, machine learning produces an algorithm that detects possible problems when
they emerge, helping organizational specialists to take the steps required to eliminate
problems that can delay or even interrupt development. In preventive and predictive
maintenance, statistical methods have been used for some time in making decisions. In
areas with many variables, machine learning methods such as neural networks can be
used for classification. Angius et al. (2016) have shown, however, that the policies in
such systems can only be poorly implemented and may sometimes affect the completion
and the delivery dates of customer orders. Therefore, not only the condition of the
machines needs to be taken into consideration, but also the impact of these system
policies on the service level of the system, before choosing them Usage of AI for
intelligent maintenance in manufacturing.
3. Predictive forecasting
To stay competitive in today’s ever-changing economic climate, businesses must stay
vigilant even to slight changes in market patterns, which can suggest substantial
variations in demand in the future, since this can cause severe upstream production
problems. All elements of the purchasing and supply management systems may be
handled by AI algorithms to brace organizations for demand changes that could
otherwise affect production and delivery. As Mahya et al. (2020) show, in typical supply
chain management problems, it is assumed that demand, cost and capacity are known
factors. This, however, very often appears to be wrong, as there are various risks arising
from fluctuations in demand from consumers, distribution of products and operational
risks. Anticipating the changing market conditions allows businesses to become highly
 resilient and focus time and resources on the most critical points, adopting a proactive
versus reactive strategy. As seen in the work of Tarallo et al. (2019), a strategic
consideration for suppliers and retailers is a more detailed predictor of the market for
fast-moving consumer products. In sales forecasting for short shelf-life and highly
perishable goods, the advantages of applied AI methods exceed the precision level of
conventional statistical techniques and as a consequence, boost inventory balance across
the chain, minimize stock-out rates, enhance supply and increase profitability.
Reinforcement learning algorithms are best suited for such market predictions. In areas
such as the stock market or crypto exchanges, trading bots that use deep reinforcement
learning have been successful. Reinforcement learning algorithms, in contrast to the
other machine learning methods mentioned earlier, do not need as much data to achieve
promising results. This approach is much more oriented towards human learning
behavior of learning optimal ways through trial and error. The agent, i.e. the learner,
needs an environment that the learner can influence with own actions. The environment
sends him rewards for his actions. The goal of the agent is to maximize these rewards to
find the best way for the environment. Adapted to the market, the required parts for a
reinforcement learning approach would be clear. The agent would be the bot, the
environment would be the market, and the reward would be the profit or loss generated
4. Real-time monitoring
One of the most valuable advantages of AI in manufacturing is real-time monitoring, as
it gives a more accurate description of where and if any inefficiencies exist in the
production chain and what causes the bottleneck. The potential to identify the exact
process that needs adjusting, helps organizations to solve the problem rapidly, resulting
in time and cost savings. The benefits illustrated in the work of Kumar et al. (2018),
show that cloud manufacturing, a real-time monitoring method, may lead to increased
efficiency of resources by recognizing the current machine state, minimizing system
downtime with the help of condition-based real-time tracking through analysis of the
obtained sensor data. This information can then be reused by machine-to-machine
communication protocols and cloud service data retrieval methods. Moreover, this
concept can help small and medium-sized companies (SMEs) registered in the network,
 which can benefit from this cooperation and provide cost-effective production services
with short lead times.

5. Supply chain management

Machine learning (ML) systems and neural networks can also be extremely useful in
supply chain management. In this context, algorithms such as linear regression can be
used to predict the impact of the bull-whip effect. Decision trees and random forest can
be utilized to perform lead scoring for supply chain managers to allocate resources.
Neural networks may be put to use in supply chain management to analyze customer-
seller audio and video communications and to plan and adjust lead time. Machine
learning is in general important to optimize the decision making process in the flow of
goods and services alongside supply chain management. Properly applied, these methods
can lead to time and resource savings. In particular, the planning process can benefit
from well-known statistical methods that have long been used and extended by ML.
Especially for non-linear problems, ML has a fundamental advantage over more
traditional methods. Despite the clear benefits, a study shows that ML with one or more
supply chain functions, was applied in only 15% of companies. The lack of data or
ignorance about the subject could be reasons why such methods are not yet much more
widespread. These technological developments influence the purchasing and supply
management function and the personnel deployment and will improve those systems in
the future.
6. Purchasing
The purchasing departments of companies generate huge quantities of data, but
unfortunately the great potential behind data volumes on this scale is often not fully
exploited. Whether due to lack of resources or understanding, this data is often not fully
analyzed and processed. Furthermore, purchasing areas are continuing to develop.
Markets are becoming larger, more complex, and more competitive. This is where AI
and ML come into play. In decision-making in general, methods that have been used for
a long time can be improved through neural networks. A key tool of supervised learning
is the so-called decision tree. Decision trees look at as many outcomes as possible and
try to find the best solution for each decision. One of the most widely used methods for
 incorporating AI in purchasing departments, is to automate and optimize processes.
These improvements can be achieved with similar techniques, which are used in supply
chain management. Globalization has also increased the number of markets. The large
range of products makes it difficult for people to keep an overview. This is where neural
networks, which classify the offers according to certain features, can be used again to
make the purchase decision autonomously or to make it immensely easier. Through this
application, companies could develop a non-negligible advantage over competitors who
do not use such methods.

AI examples in manufacturing

1. Artificial intelligence enables predictive maintenance

Predictive maintenance is one of the most funded applications of AI in the manufacturing
industry. Equipment fault can cause significant disruptions, delays on production lines, and
increase production costs. One minute of downtime at large factories can cost as much as
$20,000. Additionally, regular diagnostics by human experts are relatively expensive. AI-
powered solutions analyze equipment’s historical performance data to spot anomalies and predict
when it will need maintenance before it malfunctions or comes to a halt. This allows employees
to choose a suitable time for fixing the device instead of stopping everything in the middle of the
production process when this machine is out of service. General Motors gives one example of AI
implementation in manufacturing. The company mounted cameras on its assembly robots and
trained AI algorithms to analyze the data streaming from these cameras to identify signs of
component malfunctioning. In a pilot test of this solution, it worked on 7,000 robots and
identified 72 instances of component damage before they resulted in an unplanned outage.

2. AI forecasts demand and raw material prices

Forecasting prices of raw material Raw materials costs are volatile in nature. When
manufacturers have this information in advance, they can adapt their operations to minimize
expenses. A UK-based startup ChAI uses machine learning to forecast price fluctuation of raw
materials, such as aluminum, oil, and copper, among others. The company was founded in 2017,
and it secured €1.5 million in seed financing in 2020. ChAI targets Fortune 100 companies,
including manufacturers, who rely on these materials as a part of their supply chain. Predicting
demand AI analyzes behavioral patterns, socioeconomic data, location, and weather forecast to
determine which products will be in demand, allowing manufacturers to focus on what matters
and cease producing items that no one would purchase. AI can even predict which product will
be a hit before they go to the market. Danone deploys machine learning in manufacturing to
foresee variability in demand and adjust its production plan accordingly. Thanks to this
approach, the company decreased its lost sales by 30%.

3. AI supports generative design

Generative design is a program that relies on AI technologies to mimic a human engineer’s

approach to designing products. Engineers feed different design parameters, such as size,
materials, and cost constraints, into generative design algorithms, which generate different
design options for one product. This method allows manufacturers to create hundreds of
alternative designs for one item and experiment with how adjusting parameters reflects on the
outcome. A human designer would not be able to come up with so many ways of building one
item. The resulting designs can be further tested using machine learning to determine which
options work best. Considering AI’s recommendations, a specialized workforce will select the
design they want to pass to the development stage. For example, Nissan experimented with
letting AI propose car designs hoping it will come up with something different. According to the
company, their algorithms put forward a design that no one has ever seen before. It was not
perfect, but it’s a good start. AI and ML in manufacturing can also assist designers with user
experience. Typically, designers try to imagine possible ways the user might use a particular
product. With its learning potential, AI can analyze data on how people utilize such products
historically to come up with optimal designs.

4. AI helps build digital twins

Products IBM defines a digital twin as a virtual representation of an object or system that spans
its lifecycle, is updated from real-time data, and uses simulation, machine learning, and
reasoning to help decision-making. To set up a digital twin, you need to collect data from sensors
attached to the physical item and project this data onto the digital twin. This way, when you look
at the virtual item, you can see what is happening to its real-world counterpart. For example, if
you create a plane engine’s digital twin, it will receive data from the real engine upon landing
and takeoff. You will be able to evaluate the condition of the actual engine by examining the
digital twin. Researchers can use this technology to conduct simulations and anticipate
malfunctioning. Manufacturers can also use digital twins to make design modifications tailoring
to customer preferences. Manufacturing processes Digital twin technology is not limited to
products. You can create a digital twin of the whole production line to optimize the
manufacturing process. You will need to position sensors along the production line and use the
generated data to analyze performance indicators. Unilever partnered with the Marsden Group
and used Microsoft Azure to set up eight digital twins of its factories. Algorithms embedded into
the digital twins can suggest production improvements based on the data they receive. For
instance, one of the digital twins analyzed the shampoo production process data and could
predict the correct order of processes to get the best batch time. Also, using this technology,
Unilever reduced the number of production-related alerts by 90%, freeing up operators’ time.

5. AI inspects product quality

To make sure that products are up to par with quality standards, manufacturers use in-line visual
inspection. However, it is time consuming for human employees to examine all products
manually. Cameras, computer vision, and other AI technologies for manufacturing can perform a
fast inspection in real time, detecting flaws at the earlier manufacturing stages allowing
engineers to make adjustments before the product can cause further delays. Audi installed an
image recognition system at its Ingolstadt press shop to capture and evaluate the quality of
pressed sheets. This AI-powered system was trained on millions of test images and can identify
even the finest cracks that could easily escape the human eye. Another example of AI in
production comes from a large food processing organization, which produces over 200,000 eggs
per hour. Human operators used to inspect these eggs employing the sampling method, but it was
prone to errors as inspectors couldn’t spot every damaged egg. Realizing this problem, the
company switched to an AI-enabled quality control system. It was trained to identify several
defects, including holes, leakage, and cracking in eggshells. This innovative solution can scan
one egg in less than 40 milliseconds and spot any of the classified defects.

Conclusion The manufacturing sector and purchasing and supply management have the
perfect fit for artificial intelligence implementation. While the revolution of Industry 4.0 is
still in its early stages, we are already seeing major benefits from AI. This technology is
intended to transform forever the way in which we produce goods and manage materials,
from the design process and manufacturing shop floor, through to the supply chain and
administration. it is essential to state clearly that the broad topic of AI in manufacturing and
purchasing and supply management must be a core element in the curriculum of higher
education institutions for all technical fields of study to be future-oriented and to become
even more so