Gaining digitalization benefits without digitalization risks (Part 1)

Use case: In-process inspection of wind turbine blades

Part 1 of a 2-part series

In a perfect world, adopting new digital technology would be an exciting milestone for any manufacturer. Digitalization in manufacturing promises huge savings in operational costs and significant improvements in product quality. Take, for example, in-process inspection with LASERVISION-AI, which delivers better than six sigma reliability while cutting inspection times by up to 95%.

But in the real world, the thought of a digitalization project might make you a bit uneasy – and with good reason. Market experts say that 70% of digital transformation efforts in manufacturing fail to meet their goals. The good news? LASERVISION-AI installations are among the successful 30%.

If you’re hesitant because of digitalization risks and possibly disrupting your current operations, but you’re eager to gain the competitive advantage of automatic in-process inspection, this blog series is for you!

At Aligned Vision we understand how to minimize digitalization risks and disruptions for in-process inspection. We’ve been applying this expertise to wind turbine blade manufacturing, collaborating with the academic community and a leading wind blade manufacturer to replace manual inspection with LASERVISION-AI – with impressive results. Here are some key lessons we’ve learned along the way.

Balancing digitalization risks against the risks of staying the same

One reason it feels risky to implement a new system is that we tend to contrast unknowns with the familiarity and comfort of current operations. Though it’s not possible to predict the exact return on investment (ROI) for a new system, it is possible with proven systems like LASERVISION-AI to turn many of the unknowns into “knowns.” For example, you can estimate a comprehensive list of expenses and savings by determining:

  • The initial cost of the digital system tailored to your needs
  • Recurring costs, like annual fees for each seat of software
  • Savings from reductions in rework, scrap and quality escapes
  • Savings from shorter cycle time, less machine downtime, and reduced operator idle time
  • Savings from a lower demand for skilled labor

Calculating the operational savings in this list requires some investigation, since the reductions come from sources that typically are not line-item expenses. Instead, they fall under the umbrella of “overhead.” Still, you can develop some fairly reliable estimates.

Consider, for example, the savings from reduced machine and operator downtime. If the average visual inspection of a large WIP surface takes 30 minutes, LASERVISION-AI typically cuts that to less than 90 seconds. That means you would gain 28.5 minutes of productive value-added activities for both personnel and equipment. By factoring in the pay rate of your personnel and an estimate for the hourly cost of machinery, you can easily calculate savings. Then, multiply that by the number of inspections performed per product, per shift, per week, or another appropriate interval.

One savings factor that has gained a lot of attention lately is quality escapes. For wind turbine blades, if a missed defect causes a catastrophic failure, the replacement costs can be staggering – around $200,000 for the new blade, $350,000 per week for a crane and about $1,000 each day in lost income.[1] Such a failure is rare but will still happen as long as wind blade manufacturers rely on manual in-process inspection.

Wind Turbines

Investing wisely

By running the numbers, you will get a clearer picture of the financial risk of implementing a digital system versus sticking with the status quo – how much you’ll need to invest versus how much more you’re likely to spend on each component or assembly without the savings the digital system offers.

Of course, these operational costs are only part of a full risk assessment. In part 2 of this blog, we’ll dive into two other critical questions to consider as you evaluate a digital initiative: 1) Will the digital system actually work for your specific applications on your manufacturing floor? (2) What will it take to get the new system up and running?

Ready to transform your manufacturing process?

Don’t let the fear of digitalization risks hold you back. Discover how LASERVISION-AI can deliver faster, more reliable inspections while cutting operational costs without disrupting your current workflow. Contact us today to schedule a consultation and get the full picture on how you can reduce downtime, improve quality, and stay ahead of the competition!  

[1] Wind Energy 2020, 23, 2247-2255.