What Is Digital Manufacturing? Types & Applications

Digital manufacturing is part of a so-called “Fourth Industrial Revolution” (4IR), also known as “Industry 4.0.” Digital manufacturing platforms have emerged as a response to competitive pressures and the need to incorporate new technologies, applications and services into the industrial world. The promise for manufacturers? The opportunity to increase revenue and profitability through streamlined and automated processes; the ability to apply data-driven insights that improve supply chains, minimize downtime and maximize resource utilization; and the potential for growth and expansion into new markets, along with new, innovative products.

What Is Digital Manufacturing?

Discussions about digital transformation have been de rigueur for more than a decade, ever since Capgemini and MIT coined and defined the term as “the use of technology to radically improve performance or the reach of businesses.” That’s precisely what digital manufacturing is all about. Simply stated, digital manufacturing is the combination of digital technology and physical operations to enhance manufacturing processes in terms of quality, agility, productivity and efficiency. It also helps manufacturers quickly react to market shifts, break down data silos and generate better forecasting and maintenance schedules — all while promoting factory-floor safety.

Key Takeaways

• Digital manufacturing is the process of using computer systems to support and improve manufacturing operations.
• Digital manufacturing comes in a variety of shapes, sizes and forms, including 3D printing, computer-aided design/manufacturing, industrial internet of things, robotics and artificial intelligence.
• Some of the major industries putting digital manufacturing to work are automotive, consumer, aerospace/defense and construction.

Digital Manufacturing Explained

Digital manufacturing relies on advanced technologies — such as the Industrial Internet of Things (IIoT), artificial intelligence (AI) and data analytics — to optimize, integrate and automate production processes and gather insights faster from manufacturing data. It links different data silos and procedures in the manufacturing life cycle, including product design, production, distribution and maintenance, to enable better business decisions that improve business operations, cut process costs, speed time to market and drive financial growth. And with growing customer expectations for more product variety and better quality, digital manufacturing improves business agility in responding to these and other changing needs, as well as keeping ahead of the competition.

Digital manufacturing also provides a comprehensive view of product and process design. At its essence, digital manufacturing can be applied to three main areas: product life cycle, the smart factory and value-chain management.

• The product life cycle begins with engineering design, before moving on to sourcing, production and service life. Each step taps into data to inform design revisions during manufacturing. The real manufacturing world is converging with the digital manufacturing world so that organizations can digitally plan and project the life cycles of products and production facilities.
• The smart factory — what some call “the factory of the future” — uses smart machines, sensors and tooling to integrate production systems, providing real-time feedback about manufacturing processes and allowing greater visibility into factory processes and controls. With this often cloud-based approach, digital manufacturing also underpins the development of smart factories through the use of software for 3D visualization, collaboration, analytics, simulation and more.
• Value-chain management focuses on paring resources to create processes that reduce inventories while maintaining product quality and customer satisfaction.

 

Another important enabler of digital manufacturing is the use of enterprise manufacturing intelligence (EMI) software. This type of software collects and analyzes real-time data and other key performance indicators (KPIs) from across an organization’s business systems, providing not only cross-silo visibility into the complex supply chain but also access to operational data and factory conditions.

Types of Digital Manufacturing

From 3D printing and robotics to AI/machine learning (ML) and IIoT, the digital manufacturing landscape comprises many different technologies with distinct capabilities. Here’s a look at some of the foundational tools that are available for use when embracing digital manufacturing.

• 3D Printing and Additive Manufacturing

  3D printing and additive manufacturing are the processes for creating three-dimensional objects from a digital file. The actual printing medium can vary from common plastics, powders and resins to metals and carbon fiber. The physical object is built by layering down a chosen material until it creates the design contained in the original digital file.

  While related, 3D printing and additive manufacturing differ by scale and complexity. One can 3D print at home, but large-scale digital manufacturing makes use of more than just 3D printers. Multistep workflows, advanced modeling, quality and inspection systems, and post-processing and finishing steps are all part of what’s called the “additive manufacturing process.” Together they allow for the specialized production of custom products at scale. Additive manufacturing can also make use of a broader range of materials and techniques — such as laser sintering (a 3D printing technique that uses a laser to fuse powdered material into a solid structure) and electron beam melting. What’s more, this doesn’t necessarily have to follow the traditional layer-by-layer process.

• Computer-Aided Design and Computer-Aided Manufacturing

  Computer-aided design (CAD) is a technology that uses computer systems to assist in the creation, modification and analysis of a design. This software allows architects, engineers and manufacturers, among others, to create precise and detailed 2D or 3D models of physical objects that accurately represent dimensions, materials and other design specifications.

  CAD is often integrated with other digital manufacturing technologies, such as computer-aided manufacturing (CAM), which controls manufacturing operations and physical machinery by automating the planning, analysis and manufacturing processes. This ensures a seamless transition from design to manufacturing by generating paths for machining, optimizing the manufacturing processes and reducing human errors. It further allows manufacturers to visualize and verify the entire manufacturing process before physically producing the product.

• Robotics and Automated Machinery

  Robotics and automated machinery play a significant role in digital manufacturing by enhancing efficiency, precision and flexibility in the production processes. The integration of such technologies into manufacturing systems is a key component of Industry 4.0. Autonomous mobile robots are now able to independently navigate factories, optimize workflows and cut down on the need for manual labor. “Cobots,” or collaborative robots, increase productivity and safety by working in tandem with humans. Furthermore, industrial drones can be used for surveillance, inspection, inventory management and warehouse efficiency, to name a few examples. These technologies contribute to the evolution of smart, connected and automated manufacturing systems, improving overall productivity and competitiveness.

• Industrial Internet of Things (IIoT)

  IIoT refers to the lattice of interconnected physical devices, appliances and other technologies embedded with sensors, software and network connectivity. The goal of IIoT is to create a seamless and intelligent network in which devices communicate, share information and perform various functions without direct human intervention.

  In digital manufacturing, IIoT transforms traditional industrial processes into integrated, intelligent systems that serve as a foundational technology that facilitates real-time connectivity and data exchange, while enabling a range of capabilities that enhance efficiency, visibility and decision-making throughout the manufacturing life cycle. The outcome of this also seeps into supply chain logistics. Additionally, IIoT holds the promise of minimizing inefficiencies stemming from inventory oversights, thereby saving time and costs.

• Artificial Intelligence and Machine-Learning Applications

  AI and ML are terms that are sometimes used interchangeably. However, AI is a field of computer science focused on creating systems that can perform tasks requiring humanlike intelligence, such as problem solving, learning and decision-making, while ML is a subset of AI that involves developing algorithms to help computers learn from large amounts of data and improve performance related to a specific task over time. The latter emphasizes the use of patterns and statistical models to make predictions or decisions.

  That said, both technologies play a transformative role in digital manufacturing by introducing advanced capabilities that enhance efficiency, decision-making and innovation. They are most often used in predictive maintenance, quality control and process optimization. AI and ML algorithms analyze data from sensors on machinery, predicting potential equipment failures and paving the way for proactive maintenance to minimize downtime. They can also contribute to improved product quality through automated defect detection (using high-speed cameras to find errors in products, for instance) and enhance overall process efficiency by optimizing manufacturing parameters to build better products faster, with the goal of being more competitive. Additionally, AI aids in supply chain management by forecasting demand and optimizing logistics.

Digital Manufacturing Applications

Digital manufacturing is redefining a diverse number of industries by altering how products are designed, created and produced. Whether it’s CAD/CAM in the automotive industry, robotics in healthcare or AI/ML in aerospace, here are some of the likeliest major applications for digital manufacturing.

• Automotive Industry

  In the automotive industry, digital manufacturing plays a crucial role across various phases of the product-development and -production cycle. CAD and CAM tools enable designers and engineers to visualize, test and analyze components and systems with digital models before the actual vehicles are built. This, in tandem with the additive manufacturing process, allows for faster prototyping and production of complex components, contributing to a speedier design life cycle.

  One aspect of digital manufacturing positively affected by digital manufacturing is low-volume production. Last-generation manufacturing processes can’t cost-effectively produce low volumes of parts. This is especially important in the automotive industry, where 3D printers and the like can now produce parts at the same cost, whether it be 1,000 identical parts or 1,000 unique parts. In addition, digital manufacturing increases the speed of just about everything, which is essential for automotive engineers focused on developing innovative new vehicles.

• Aerospace and Defense

  The aerospace and defense industry uses digital manufacturing in much the same way as the automotive industry does. Just as with earthbound vehicles but turned up a notch, modeling, analyzing and testing simulations enhance the evaluation of aerodynamics, structural integrity and system performance, all while minimizing the need for costly physical prototypes. The 3D printing of lightweight, yet complex parts, along with the integration of IIoT into facilities, all upgrade assembly line efficiency. In addition, robotics and AI/ML automation are used for precision tasks, assembly and inspections. Supply chain management benefits in similar ways.

  Perhaps the most important is cost reduction. A signal rocket or aircraft could be in research and development for more than a decade, far longer than even the most tricked-out Ford F150. Reducing that span through digital manufacturing can literally save billions of dollars on large-scale operations.

• Healthcare

  As with most of the industries discussed here, healthcare uses digital manufacturing to streamline supply chains and employs CAD and CAM to increase efficiency in the creation of various medical devices. But its connection doesn’t stop there. Additive manufacturing and 3D printing enable the production of customized implants and prosthetics and allow for the creation of patient-specific devices that improve functionality and fit. This trend toward personalized medicine is at the forefront of the healthcare industry. It is most specifically apparent in the integration of connected devices in healthcare equipment, such as medical devices, monitoring systems and wearables (think Fitbit and Apple Watch). The technology facilitates real-time data collection for the continuous monitoring of patient health, resulting in timely interventions, personalized healthcare and higher rates of patients maintaining rehabilitation assignments.

  Robotics and automation find applications in surgery and logistics, as well. Surgical robots, including cobots, assist surgeons in performing minimally invasive procedures with precision, while automated systems streamline repetitive tasks in laboratories and pharmacies. Pharmaceuticals also benefit from digital manufacturing because 3D printing can be used to customize drug formulations for an individual patient.

• Consumer Goods

  Digital manufacturing is used throughout the consumer goods industry, from design to purchase. As is the case in most industries, CAD tools enable precise digital modeling and additive manufacturing, while 3D printing leads to faster prototyping and designing, reducing a product’s time to market. Automation and robotics play vital roles in the manufacturing processes, improving efficiency and ensuring consistency in product quality. Meanwhile, the integration of connected devices into the factory floor allows real-time monitoring of production lines, predictive maintenance and data-driven decision-making.

  Collected data can be leveraged to analyze consumer feedback, market trends and social media comments, aiding informed decision-making in product development, marketing strategies and supply chain optimization. It is also crucial for there to be harmony among these systems for accurate inventory management and logistics coordination.

  On the consumer side, technologies based on augmented reality and virtual reality find applications in product design, marketing and retail experiences. Companies use digital manufacturing for customization and personalization to match individual preferences and enhance customer satisfaction. All in all, digital manufacturing technologies advance product innovation, responsiveness to market trends and overall competitiveness.

• Construction

  Digital manufacturing is advancing traditional building processes. Building information modeling software creates digital representations of building projects; it integrates 3D models from CAD software with data on materials, costs and schedules to improve planning and coordination. Virtual prototyping helps identify potential issues and streamline the design process. And IIoT allows for devices, sensors and drones to be integrated into construction equipment and structures to monitor real-time data for predictive maintenance, mapping and to enhance safety and supply chain reliability. Much of this data can be used in data analytics and project management software to zero in on cost reduction, risk management and energy loss/consumption modeling.

  Advanced robotics can automate tasks, such as bricklaying and concrete pouring, while large-scale 3D printing robots and additive manufacturing techniques are put to work to build components and even entire structures. This allows for innovative designs and reduced material waste. These processes can work in conjunction with prefabrication and modular building methods, in which components are digitally designed and manufactured off-site and then assembled on-site.

Benefits of Digital Manufacturing

The long-term benefits of product life cycle management cannot be achieved without some kind of in-depth digital manufacturing strategy. This creates what some call a “digital thread” that connects and simplifies processes across the production cycle to integrate manufacturing operations. The exchange of product-related information between design and manufacturing groups is crucial, and digital manufacturing enables manufacturers to achieve time-to-market and volume goals, as well as to cut costs.

Since its scope is broad, here is a concise look at some of the key digital manufacturing benefits that have emerged thus far:

• Integrated information management: Digital manufacturing seamlessly integrates data across the entire production process, which enables real-time insights and informed decision-making.
• Optimized parts manufacturing: By incorporating advanced technologies, such as 3D printing, digital manufacturing can improve production precision and efficiency.
• Reduced commissioning costs: Virtual prototyping and simulation tools allow digital manufacturing to minimize the need for physical prototypes and cut the time and expense associated with typical commissioning processes.
• Efficient factory layout and operation: By taking advantage of digital twin technology, manufacturers can simulate and optimize factory-floor layouts to determine the most efficient use of space.
• Support for Six Sigma and lean initiatives: Digital manufacturing provides the framework for facilitating these process-improvement initiatives that promise continuous refinement and waste reduction throughout the production cycle.
• Improved quality data sharing: With interconnected systems and IIoT-enabled devices, digital manufacturing promises the seamless sharing of high-quality data across supply chains, which can result in better collaboration and, ultimately, better product quality.
• Real-time life cycle data access: Digital manufacturing allows for immediate access to comprehensive life cycle data, empowering informed decision-making at every stage of manufacturing.
• Increased level of agility: Digital manufacturing allows design changes to be made in real time, without having to shut down the production line and lose revenue.
• Creation of virtual manufacturing environments and complex designs: Designers are able to test a simulated process before spending time and money on physical implementation.
• Preventative maintenance programs: Manufacturers can take advantage of sensors and advanced data collection to monitor equipment, thereby keeping maintenance costs low.
• Incorporation of blockchain technology: Many manufacturers create goods by assembling hundreds or thousands of parts from different suppliers. Blockchain can help manufacturers track these assets during all phases of the manufacturing life cycle. It also streamlines business operations and improves supply chain visibility.

Also worth noting, digital manufacturing technology offers significant environmental benefits by optimizing resource utilization and reducing waste generation. Precise monitoring of production processes can minimize material usage and energy consumption, leading to lower carbon emissions and decreased environmental impact. And, as previously mentioned, digital manufacturing is based on sustainable practices, such as additive manufacturing, which enable the creation of complex designs with minimal material waste. Another environmental benefit: production of goods closer to their consumption point, which reduces the need for long-distance transportation and, in turn, can help cut greenhouse gas emissions.

Manage Your Digital Manufacturing Processes With NetSuite

Industry 4.0 touches just about every aspect of manufacturing, including inventory management. To that end, the NetSuite Inventory Management solution provides a real-time, unified, multichannel and multilocation view of inventory so manufacturers can keep tight control of inventory production and replenishment. This goes a long way toward optimizing inventory levels — avoiding the cash flow perils of under- or overstocking — and increasing profitability by lowering inventory costs, including through the elimination of unnecessary handling that increases the cost of goods sold. From the supplier to the end customer, NetSuite’s cloud-based software tracks inventory along every touchpoint, handles cycle counting, and monitors and reports on KPIs that drive better business decisions.

The pressure for manufacturers to succeed is intense. Shorter manufacturing lead times, first-time launch management and improved customer service and complexity management are all results of digital manufacturing. Add to this the important and timely advantages associated with reduced environmental impact — which are made possible through lower emissions, reduced waste and more efficient raw material consumption — and it’s clear to see that digital manufacturing isn’t just smoke. It’s a real-life, real-time business revolution.

Digital Manufacturing FAQs

What are the components of digital manufacturing?

Digital manufacturing includes three components:

• Integration: Digital technology integration enables the seamless incorporation of digital systems into manufacturing processes.
• Physical operations: Digital manufacturing allows for optimization that focuses on maximizing the efficiency and effectiveness of machinery, equipment and labor on the shop floor.
• Analytics: Data analytics and simulation tools provide insights into production processes, allowing for better decision-making and performance prediction.

What are the benefits of digital manufacturing?

Among the many benefits of digital manufacturing are:

• Efficiency and agility: Enhanced efficiency and agility are among the many results from streamlined workflows and the ability to be agile and adapt quickly to changing markets and other demands.
• Quality and forecasting: Improved quality control and forecasting are achieved by real-time monitoring, the analysis of production data and predictive maintenance.
• Optimized operations: Digital manufacturing can optimize operations and maintenance to reduce downtime, extend equipment life spans and enhance overall productivity and profitability.

What is a digital manufacturing platform?

A digital manufacturing platform is a technology infrastructure that integrates digital tools and systems, such as 3D visualization, analytics and simulation, to enable smart factories and enhance manufacturing processes.

What do you mean by digital manufacturing?

Digital manufacturing is, in essence, a paradigm shift toward smarter, more interconnected factories that can agilely and rapidly adapt to evolving market changes and drive sustainable industrial growth. It is based on the integration of advanced digital technologies that are tapped throughout the entire manufacturing process, enhancing efficiency, flexibility and productivity. The industrial internet of things, artificial intelligence, robotics, 3D, printing, data analytics and the like are creating interconnected, intelligent systems within the manufacturing environment. By digitizing and optimizing key processes, digital manufacturing enables manufacturers to achieve higher levels of automation, precision and customization while reducing costs and time to market.