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③ Manufacturing ICT

Attempting to Re-Grow Up With Crisis Manufacturing's 'ICT Engine'
South Gyeongsang Province's main industry facing growth limitations such as machinery, shipbuilding, marine, aviation, and auto parts

Samhyun Co., Ltd., an automotive parts company located in Uichang-gu, Changwon City, is pursuing productivity improvement through the installation of automated sensors on its assembly line for data collection and analysis. - Sung Seung-gun, a reporter

The company is changing the design, production, and installation methods of its products through the integration of software and hardware. By installing sensors on machines and collecting and analyzing data, they aim to gain insights and ultimately improve productivity. It can be described as a "thinking factory." Philippe Cochet, the Chief Productivity Officer at GE, introduced in the GE report that they horizontally integrate the capabilities of digital technologies into GE facilities and vertically integrate them into the value chain, made possible by the industrial cloud-based platform, Predix.

The key industries in Gyeongnam, such as machinery and shipbuilding, are facing the challenge of upgrading their competitiveness. Gyeongnam Province is seeking solutions in the convergence of manufacturing and ICT (Information and Communication Technology).

◆Limitations of Gyeongnam's manufacturing industry: Industries that have contributed to economic development for over 40 years as national strategic industries, including machinery and shipbuilding, have faced growth limitations since the financial crisis. In 2015, Gyeongnam's exports decreased by 8.1% compared to 2014. High-tech products decreased from 38.4% to 11.6%, while medium and low-tech products increased from 32.9% to 62.1%. The average operating rate of the manufacturing industry decreased from 76.5% in 2013 to 73.9% in 2015.

The production value share of Gyeongnam's key industries, including shipbuilding, machinery, and aviation, accounts for 50.5%, and the value-added share is 69.3%. Enhancing the competitiveness of the manufacturing industry is an urgent necessity.

◆ICT in Gyeongnam's manufacturing industry: The transformation of the manufacturing industry is not unique to Gyeongnam. Companies worldwide are pondering how to maximize productivity by integrating digital capabilities into their businesses.

Gyeongnam Province has announced plans to lead the Fourth Industrial Revolution by investing KRW 937.9 billion in 16 projects by 2025 to enhance and advance competitiveness through the convergence of manufacturing and ICT. Shin Jong-woo, Director of the Future Industries Division, said, "The convergence of Gyeongnam's key industries, manufacturing, and ICT will create a new growth engine industry that leads Gyeongnam for the next 50 years, driving technological innovation and the Fourth Industrial Revolution."

The province aims to achieve the intelligence, advanced technology, and sophistication of the manufacturing industry through the utilization of ICT. In the machinery industry, they will establish an analysis support center for the digitalization of equipment and process data and support autonomous intelligent (AI) smart production systems. For example, Siemens in Germany connects 1,000 factories through the internet and produces 100 different products on a single line.

In the shipbuilding industry, they will develop a management system that allows tracking of material status and movement through a system applying Smart ICBM (IoT, Cloud, Big Data, Mobile). To secure the competitiveness of small and medium-sized shipyards, an integrated solution that can manage the entire shipyard production system is necessary. In the aviation industry, they will promote the localization of aviation electronic module production and the clusterization of aviation ICT convergence through the development of middleware for smart aircraft factories. In the automotive parts industry, they plan to develop application systems for autonomous driving smart cars and develop smart sensors and content to create a future-oriented automotive parts production base.

◆ Securing Government Funding and Developing Specialized Personnel are Key Factors: The key factor is not just budgetary allocation but also securing the budget. Out of the total project cost, the government's funding amounts to KRW 588.8 billion. The province plans to actively participate in government public projects and feasibility studies to secure the budget. A provincial official stated, "We will persuade the Ministry of Trade, Industry and Energy, Ministry of Science and ICT, and other relevant departments to reflect the budget, and seek cooperation from local members of the National Assembly."

Experts believe that the machinery, aviation, and automotive industries, which are already competitive, are at a point where they need to enhance their competitiveness through the convergence and advancement of ICT. The shipbuilding industry, which is under intense competition, requires the fostering of competitive small and medium-sized enterprises through the convergence of ICT, including system packages and production management systems.

Dr. Kim Dong-hoon from the Korea Institute of Machinery and Materials stated, "ICT in the manufacturing industry should be closely related to the infrastructure of key industries to maximize its effects. It is necessary to categorize the technological levels of companies and develop standard models tailored to each situation to increase compatibility."

Song Bu-yong, Senior Researcher at the Gyeongnam Development Institute, pointed out, "The Fourth Industrial Revolution hinges on the supply of specialized personnel. The development of ICT in Gyeongnam's manufacturing industry also relies on securing technical talent." Song emphasized, "For the Fourth Industrial Revolution, IT professionals need to possess the ability to apply their skills to the industrial field. To cultivate specialized personnel, collaboration between the province, universities, and Gyeongnam Techno Park is needed. Universities should produce talent, followed by practical training focused on field experience at Gyeongnam ICT Centers, and lastly, companies should enhance practical skills." Reporter Lee Hak-soo

Source: Gyeongnam Newspaper  (http://www.knnews.co.kr/news/articleView.php?idxno=1204066)