AI maturity in manufacturing: lessons from the most successful firms – I by IMD

AI maturity in manufacturing: lessons from the most successful firms – I by IMD

 

AI Integration in Manufacturing: A Driver for Sustainable Development Goals

Introduction

Leading manufacturing firms are strategically embedding Artificial Intelligence (AI) into their core operational frameworks. This integration extends beyond isolated pilot projects to a comprehensive transformation of manufacturing processes, quality assurance, and business operations. These advancements are not only enhancing corporate efficiency but are also making substantial contributions to the United Nations Sustainable Development Goals (SDGs), particularly in fostering innovation, ensuring responsible production, and promoting well-being.

Case Studies in Sustainable Industrial Innovation

The following cases illustrate how AI deployment in manufacturing aligns with key SDGs:

  1. Lockheed Martin: Advancing Sustainable Infrastructure and Climate Action

    Lockheed Martin’s operationalization of AI demonstrates a strong alignment with several SDGs through its HercFusion platform.

    • SDG 9 (Industry, Innovation, and Infrastructure): The platform represents a significant innovation in industrial infrastructure, analyzing data from nearly three million flight hours of C-130J aircraft to enhance operational resilience.
    • SDG 12 (Responsible Consumption and Production): By enabling predictive maintenance, the system reduces waste and the consumption of spare parts, promoting more sustainable production and maintenance cycles. Mission capability is increased by 3%.
    • SDG 7 (Affordable and Clean Energy) & SDG 13 (Climate Action): The platform has achieved a 15% reduction in fuel usage, directly contributing to energy efficiency and mitigating climate impact by lowering emissions.
  2. GE Healthcare: Enhancing Good Health and Well-being

    GE Healthcare’s integration of AI into clinical workflows directly supports health-related sustainability targets.

    • SDG 3 (Good Health and Well-being): The CareIntellect platform aggregates patient data to assist clinicians, leading to improved patient outcomes and more effective healthcare delivery.
    • SDG 9 (Industry, Innovation, and Infrastructure): This AI-driven tool enhances the efficiency and effectiveness of healthcare infrastructure, showcasing innovation in a critical service industry.
  3. CATL: Promoting Responsible Production Patterns

    CATL has deployed AI across its value chain to foster sustainable industrial practices.

    • SDG 12 (Responsible Consumption and Production): AI is utilized for supply chain optimization and automated quality inspection, minimizing waste and ensuring resources are used efficiently.
    • SDG 9 (Industry, Innovation, and Infrastructure): The comprehensive use of AI, from predictive maintenance to customer service, exemplifies the drive towards sustainable industrialization and innovation.
  4. AVEVA (Schneider Electric): Fostering Energy Efficiency and Sustainable Production

    AVEVA’s AI-infused hybrid Manufacturing Execution System (MES) provides a clear pathway to achieving sustainability goals.

    • SDG 9 (Industry, Innovation, and Infrastructure): The 2024 MES solution combines edge and cloud capabilities, fostering innovation in industrial processes.
    • SDG 12 (Responsible Consumption and Production): The system provides recommendations and anomaly notifications that improve yield and quality, thereby reducing waste. A case study with Maple Leaf Foods showed a 10–12% gross profit increase through analytics that optimize production.
    • SDG 7 (Affordable and Clean Energy): A primary benefit of the MES is improved energy efficiency within manufacturing facilities.
  5. Siemens: Innovating for Quality and Resource Efficiency

    Siemens utilizes AI in its Digital Lighthouse factories to optimize production and align with sustainability principles.

    • SDG 9 (Industry, Innovation, and Infrastructure): The deployment of AI for producing automation systems showcases innovation in the industrial sector. The enhanced Senseye solution, with its generative AI interface, makes advanced technology more accessible.
    • SDG 12 (Responsible Consumption and Production): AI-driven failure detection and quality optimization directly reduce defects and material waste, contributing to more responsible production patterns.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 3: Good Health and Well-being

  • The article connects to this goal through the example of GE Healthcare, which has integrated AI into clinical workflows. The use of the CareIntellect platform to aggregate and summarize patient data aims to directly improve patient outcomes, a core component of good health.

SDG 7: Affordable and Clean Energy

  • This goal is addressed by the article’s focus on efficiency gains. Specifically, Lockheed Martin’s use of the HercFusion platform led to a “15% reduction in fuel usage,” which contributes to energy efficiency and reduced reliance on fossil fuels. AVEVA’s system also explicitly aims to improve “energy efficiency.”

SDG 8: Decent Work and Economic Growth

  • The article highlights how technological upgrading leads to higher levels of economic productivity. The example of Maple Leaf Foods reporting a “10–12% gross profit increase” by applying advanced analytics directly demonstrates the link between technological innovation and economic growth.

SDG 9: Industry, Innovation, and Infrastructure

  • This is the most central SDG in the article. The entire text focuses on how leading manufacturers like Lockheed Martin, GE Healthcare, CATL, AVEVA, and Siemens are integrating advanced technologies like AI to upgrade their industrial processes and infrastructure. This involves enhancing technological capabilities, retrofitting industries for sustainability, and fostering innovation.

SDG 12: Responsible Consumption and Production

  • The goal is relevant through the article’s emphasis on resource efficiency and waste reduction. The “15% reduction in fuel usage” by Lockheed Martin is an example of more efficient use of natural resources. Furthermore, the implementation of predictive maintenance by companies like Lockheed Martin and Siemens helps to reduce waste by preventing equipment failures and optimizing the use of parts and materials.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 3: Good Health and Well-being

  • Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all. The article’s mention of GE Healthcare’s platform improving “patient outcomes and operational efficiency” directly relates to enhancing the quality of essential health-care services.

SDG 7: Affordable and Clean Energy

  • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The article provides concrete examples of progress towards this target, such as Lockheed Martin’s “15% reduction in fuel usage” and AVEVA’s system designed to “improve… energy efficiency.”

SDG 8: Decent Work and Economic Growth

  • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors. The article is a showcase of this target, with companies using AI for “technological upgrading” to improve efficiency and profitability, as seen with Maple Leaf Foods’ “10–12% gross profit increase.”

SDG 9: Industry, Innovation, and Infrastructure

  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The integration of AI for predictive maintenance, fuel reduction, and energy efficiency improvements by the mentioned companies directly supports this target.
  • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries… encouraging innovation. The article’s core theme is the deployment of advanced AI solutions like the “HercFusion platform” and “AI-infused hybrid Manufacturing Execution System (MES)” to upgrade the technological capabilities of these industries.

SDG 12: Responsible Consumption and Production

  • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. Lockheed Martin’s success in achieving a “15% reduction in fuel usage” is a direct contribution to this target.
  • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The use of AI for “predictive maintenance” and “failure detection” by companies like Lockheed Martin and Siemens helps prevent equipment breakdowns, thereby reducing the waste generated from repairs and replacements.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several specific quantitative and qualitative indicators that can be used to measure progress.

  1. Percentage reduction in fuel usage: The article explicitly states a “15% reduction in fuel usage” for the C-130J Super Hercules fleet, serving as a direct indicator for Target 7.3 (Energy efficiency) and Target 12.2 (Efficient use of natural resources).
  2. Increase in gross profit: The “10–12% gross profit increase” reported by Maple Leaf Foods is a clear indicator of increased economic productivity, relevant to Target 8.2.
  3. Increase in mission capability rate: The “3% increase in mission capability rate” for Lockheed Martin’s aircraft is a specific metric for operational efficiency and productivity, relevant to Target 8.2 and Target 9.4.
  4. Improvement in patient outcomes: While not quantified, the stated goal of GE Healthcare’s platform to “improving patient outcomes” is a qualitative indicator for Target 3.8.
  5. Improvement in energy efficiency, yield, and quality: AVEVA’s solution delivering benefits to “improve yield, quality, and energy efficiency” serves as a set of qualitative indicators for Target 9.4 and Target 7.3.
  6. Adoption of advanced technology: The implementation of specific AI platforms like “HercFusion,” “CareIntellect,” “AI-infused hybrid MES,” and “enhanced Senseye solution” is itself an indicator of technological upgrading and innovation under Target 9.5.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

SDGs Targets Indicators
SDG 3: Good Health and Well-being 3.8: Access to quality essential health-care services. Improvement in patient outcomes and clinical operational efficiency (GE Healthcare).
SDG 7: Affordable and Clean Energy 7.3: Double the global rate of improvement in energy efficiency. 15% reduction in fuel usage (Lockheed Martin); Improvement in energy efficiency (AVEVA).
SDG 8: Decent Work and Economic Growth 8.2: Achieve higher levels of economic productivity through technological upgrading and innovation. 10–12% gross profit increase (Maple Leaf Foods); 3% increase in mission capability rate (Lockheed Martin).
SDG 9: Industry, Innovation, and Infrastructure 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency. Implementation of predictive maintenance for failure detection; Improvement in yield, quality, and energy efficiency.
9.5: Upgrade the technological capabilities of industrial sectors. Operational integration of AI platforms (HercFusion, CareIntellect, AI-infused MES, Senseye).
SDG 12: Responsible Consumption and Production 12.2: Achieve the sustainable management and efficient use of natural resources. 15% reduction in fuel usage (Lockheed Martin).
12.5: Substantially reduce waste generation through prevention. Use of AI for predictive maintenance and failure detection to prevent equipment breakdowns.

Source: imd.org