A CTO’s perspective on a clearer path to automation

Our recent report, Automation Trends in Component Manufacturing, based on extensive customer interviews and a survey of component manufacturers across North America and Europe, reveals that while the promise of automation is universal, the journey toward true digital transformation is far from one-size-fits-all.

The report introduces a six-level automation framework inspired by the levels of autonomous driving, a model that replaces the vagueness of traditional Industry 4.0 with a clear, actionable transition. This framework captures the evolution from humans in full control to humans serving as optimizers and validators, ultimately unleashing a new wave of creativity. From manual operations to “lights-out” production, it allows us to assess where manufacturers stand today and envision the next steps in their digital evolution. As outlined in our whitepaper, these six levels are:

• Level 1 – Manual Processes: Relying almost entirely on human effort with minimal support systems.
• Level 2 – Assisted Systems: Introducing limited unmanned production at the cell level through basic software support.
• Level 3 – Semi-Automated: Achieving unmanned, time-based cell-level production while keeping humans in control for when issues arise.
• Level 4 – Highly Automated: Automating key processes with integrated digital threads and simulation capabilities that enable continuous, incremental improvements.
• Level 5 – Automated with Robotics (including humanoid systems): Utilizing robotics for changeovers and real-time system integration, letting humans focus on strategic creativity.
• Level 6 – “Lights-Out” Production: Realizing fully autonomous processes where a continuous digital thread supports predictive maintenance and optimization without human intervention.

As the smart factory evolves, the need for a digital thread to enable seamless manufacturing, from raw material inventory to finished goods and shipping, has never been more critical. A connected digital thread not only assures a reliable process but also provides the flexibility and feedback loop necessary for continuous optimization.

While a few companies are advancing rapidly on this journey, the level of integration and automation is not yet uniform across operations. Many manufacturers are automating certain areas of their shop floors while other parts of the production process remain largely manual. The push for higher automation is driven primarily by two factors:

• Increasing component complexity: Advanced manufacturing demands more intricate, precise, and adaptable production processes.
• Shortage of skilled labor: Manufacturers are seeking software solutions that not only automate tasks but also simplify operations and reduce dependence on highly specialized skills, while also ensuring flexible support with 24/7 technical expertise.

What truly excites me is how this framework underscores that automation is not just about technology, it’s about strategic integration and human change management. The digital thread, which connects raw materials to finished goods, is central to this vision. By creating seamless connectivity across processes, digital twins and real-time data collection enable not only greater efficiency but also a continuous feedback loop that refines operations. This is where advanced shop floor equipment, comprehensive training programs, and robust data integration come into play, ensuring that every leap forward in automation is sustainable and scalable.

Human in the loop

Crucially, the ability to progress along these automation levels requires the infusion of AI. AI is the catalyst that transforms raw data into actionable insights, driving predictive maintenance, process optimization, and the intelligent orchestration of interconnected systems. By embedding AI into our manufacturing processes, we enable a robust “human in the loop” approach where manufacturing engineers, operators, and vertical experts collaborate to train and validate AI models. This synergy between human knowledge and cutting-edge technology not only boosts productivity but also liberates human creativity, ensuring that every step on the automation ladder is both data-driven and human-centric.

Our report shows that 80% of component manufacturers are planning to enhance their automation maturity, with most aiming to advance at least one level by 2030. This underscores the need for a clear, measurable framework that can guide investments and track progress - a need that our six-level model meets head on.

In a landscape where many still cling to the broad strokes of Industry 4.0, our framework offers a refreshing alternative. It provides actionable insights and tangible benchmarks that empower companies to identify their current state and chart a pragmatic course for the future. By shifting the focus from an abstract vision to a structured maturity ladder, we are not only setting the stage for operational excellence but also paving the way for a future where technology amplifies human ingenuity, keeping humans at the core of innovation.

At Sandvik, in partnership with industry leaders like EY and technology innovators such as Microsoft, we are committed to driving this transformation. Our work is a testament to the power of aligning cutting-edge technology with clear strategic objectives, a recipe for success in today’s competitive manufacturing landscape.

As we look ahead, the journey toward full automation may be incremental, but each step brings us closer to unlocking unprecedented efficiency and innovation. And as a CTO, I can confidently say that the infusion of AI, combined with human expertise, is the future of manufacturing, one where technology and human ingenuity work in harmony to amplify productivity and unleash creativity.

For further insights, make sure to download our whitepaper and read more about our AI initiatives in manufacturing here.