Uncertainty and decision flow

Smart SCADA is a framework for achieving digitization at the factory level. Digitization leads to increased costs, which can be translated into internal transaction costs and coordination costs, these influence choices. Adoption of digitization in processes can have an impact in the business processes themselves, for example leading to changes in internal workflows or leading to changes in inter-process relationships. For this reason, some of the company's processes may need to be redesigned. The effects of adopting a data-centric philosophy also fall on human resources. Indeed, in the face of simplifications in the execution of some activities, specific tasks and duties may need to be heavily modified. New skills are often required, and this may change the values of individuals. Considering I4.0, actions can also affect coordination rules, can change the way each individual agent (person or software) communicates. This chain of changes if well planned leads to noticeable improvements, otherwise it becomes a dangerous burden.

Understanding the nature of the costs is critical, these can be influenced by the unique context of the specific industry, thus a 'benefit estimate' is needed, which must be comprehensive and go through a 'risk analysis' to assess the full complexity of the project.

Every process is governed by uncertainty. In a manufacturing context, it is essential to reduce as much as possible the degree of uncertainty associated with the quantities affecting the efficiency of the production system to ensure optimal management of all resources. For this reason, it is important to structure the decision flow in a way that also considers uncertainty: the state of limited knowledge. Knowing about uncertainty allows one to understand potential risks: the eventual occurrences of unfavorable states, in essence the chances that an action will not lead to benefit.

The following illustration shows the flow of decisions and how uncertainty fits into each tier.





Some rules to keep in mind to avoid falling into pitfalls.


Think value first, technology is a means

The digital, physical and virtual worlds combined together allow opportunities for growth and productivity, enable reformulation of the competitive landscape with smart products and new models including service. The benefits of intelligent automation, connectivity and operational alignment transform design and manufacturing. The end point is connected and cooperative ecosystems.


Think people first, tools are a support

Adopt philosophy must prioritize value created not technology, value must consider people. Manufacturing must put humans at the center, because in addition to being central in the value chain they are also responsible for the implementation and condition of the process with any changes. This is a strategic organizational effort. People are the key to managing the environment and evolution through strategic choice and the use of digital tools that enable the fusion of the digital, physical and virtual worlds into cyber-physical systems.


Understand the context and build on it with goals

Digital is disruptive, which is why its growth is exponential and needs proper compression and strategic line, cannot be interspersed in a single solution, but must go through small steps that gradually involve people through sharing clear and above all achievable goals.

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