The approach to smart manufacturing of some typical countries

Many studies show that developing countries use industrialization as a tool for growth by boosting domestic production, favoring the production of goods with great added value and applying policies that promote innovation. The article introduces the smart production approach of the world’s top three economies: China with management method, Germany with coordination method, and the United States with market orientation.

China

In the early years of the 21st century, China surpassed the United States to become the leading producer of total value added, although the value added per capita only increased by 1/10 due to its large population. In terms of research and development (R&D) spending, China leads the world. To avoid the “middle-income trap”, which other developing economies soon got bogged down, the Chinese government set a target to quickly lead in the production of high value-added products through export smart. Tap Can Binh President noted that the fourth industrial revolution are taking place exponentially rather than linearly. Accordingly, the basic properties of China’s smart production management method include: top-down approach, the government sets long-term goals and intervenes when necessary to achieve those goals; policies and practices that ensure Chinese enterprises are world leaders; Personal rights are tools for national goals. These characteristics are most evident in the nation’s long-term production plan in developing new technical standards, cybersecurity laws, and in the direction of the development of artificial intelligence (AI).

Made in China plan: in 2015, China announced the made in China 2015 strategy (MIC2015) inspired by Germany’s industrial strategy 4.0. The plan includes both macro goals, specific issues and is primarily aimed at public support.

Technical standards: The government actively participates in agencies that establish global standards of strategic importance, actively rewriting new technology standards to benefit domestic companies. The Belt and Road Initiative is seen as a way to “export” Chinese standards to the world.

Cyber security: The Cyber Security Law, which came into effect in June 2017, has laid the premise of national cybersecurity sovereignty and focused on free information security and freedom of speech. This law applies to all businesses that manage data networks (including email) and with key industries including energy, transportation, water, financial services and public services. The law requires organizations to store selective data within Chinese territory (localize data), ban information and transfer data about Chinese citizens abroad without permission from the Government. , in particular Chinese authorities are allowed to conduct on-site inspections of network activities of any organization, including the source code provider.

AI: China not only aims to lead the world in the field of AI by 2030, but has ambitions to govern AI through developing standards, including related ethical and social standards. In 2018, China created an AI map that lists 23 important short-term standards and another 200 standards issued or in development.

Germany

Germany has led the global manufacturing industry for a long time. The country has the highest per capita value in the world and ranks fourth in R&D spending. Production market share is among the highest in the world and remains stable for decades, while other industrialized countries have weakened. With a strong and positive trade balance in goods production, German manufacturing prioritizes export orientation. The branded products are made in Germany, especially the machine details that are admired globally. Factors that make Germany’s reputation in production include: its high-tech workforce; An extensive network of policies and institutions (for example, Fraunhofer institutes located throughout the country) allows companies to maintain high productivity; high entrepreneurial spirit, reflected clearly in small and medium enterprises (called Mittelstand, which is the backbone of the economy); and local strategic management (or Standortpolitik: every state, region and city is responsible for fulfilling and maintaining economic prosperity)

In Germany, the local community works closely with the state and the federal government to implement many important policies, such as the apprenticeship system, technical universities, the translation knowledge institute and support from Mittelstand. All of these are reflected in the German smart production approach that was officially launched in 2013 under the name Industrie 4.0 (this initiative aims to maintain the global leadership in German production via digitization). The initiative is led by the Government, including manufacturing companies, trade associations, research organizations, labor organizations and academia.

Technical standards: this European country is at the forefront of developing intelligent manufacturing technical standards. Industry 4.0 Initiative develops the “Reference Architecture Model for Industry 4.0” (RAMI) which guides the standards and interoperability to be evaluated as rigorous and comprehensive. In terms of privacy and digital commerce, this is the first European country to adopt a general data protection regulation, which came into effect in May 2018.

Cyber security: Germany’s influence on 28 European Union members is not the same, and this is evident in cyber security. The recently issued EU Network Information Security (NIS) directive is primarily based on the German Cyber Security Law enacted in 2015. NIS came into effect in May 2018, affecting the operation of Non-European businesses prefer to follow only one standard. Applying NIS’s definition of minimum satisfactory standards of care, companies can avoid lawsuits alleging mishandling of personal information. The German approach, however, still has the weakness of not being able to compete with global leaders like the United States in the field of high technology.

American

It is the second largest country in the world in terms of production value added, R&D spending and the fourth in terms of per capita value added. The United States’ smart manufacturing approach is characterized by a major dependence on markets and the private sector. Compared to Germany and China, this method has the advantage of not committing too early to any approach that could cause failure. This factor is most evident in the U.S. manufacturing program, setting standards, creating voluntary frameworks for cybersecurity and privacy, digital commerce and AI.

US Manufacturing: The US Manufacturing Initiative and Initiative (RAMI) has ratified the establishment of the US Manufacturing Program, a federal program that supports collaboration between the Government, industry and gender Academic to focus on developing some advanced technologies. The purpose of the program is to avoid death traps in cryptocurrency production technologies and to help domestic manufacturers benefit from government-funded R&D activities. Inspired by the famous Fraunhofer institutes of Germany, the program established 14 institutes scattered throughout the country. Each institution has a federal donor and is managed by a third party, usually a non-profit organization established by a university. Each institute focuses on specific technology areas. For example, smart manufacturing is at the heart of the Digital Design and Design Innovation Institute (DMDII) funded by the Department of Defense (DoD); meanwhile, the Institute for Innovative Production of Smart Energy (CESMII) is funded by the Ministry of Energy and Energy … Each institute is approved to sponsor from 70 to 110 million USD in 5 years. Funds provided by the Federal Fund for personal funding sources with at least 1: 1 ratio. Up to the present time, this ratio does not exceed 1: 2.

Technical standards: The United States does not have an official national strategy for smart manufacturing standards other than creating creative conditions and welcoming the best solutions. Positive initiatives come from many groups and organizations, including government organizations such as the National Institute of Standards and Technology (NIST), standards development organizations such as Underwriters Laboratories, research institutes such as DMDII and CESMII from US manufacturing programs and private companies. In general, the United States encourages a consensus-based approach

Network security and privacy: Currently, the United States does not impose network security requirements on domestic manufacturers. Companies wishing to conduct due diligence can refer to NIST’s cybersecurity framework from the guidelines of the Federal Trade Commission (FTC) and the DoD’s No Compromise Initiative. The NIST framework arises from the private sector’s resistance to mandatory laws or regulations. The US government allows NIST to work with the industry to develop a security framework to limit risks based on best practices applicable to companies of all types not limited to manufacturing. Since its first development in 2014 and the latest revision in April 2018, this is considered the best framework for network security. FTC has the authority to create rules to prevent unfair or deceptive behavior of business companies within the United States.

E-commerce: President Trump’s government has pushed for U.S. production-enhancing trade deals based on the argument that “careless and unfair trade agreements” are somewhat responsible for the situation. US production decline today. The clear effort of the Trump administration is to replace the North American Free Trade Agreement (NAFTA) with a proposal (not yet formally approved) called the U.S., Mexico and Canada Agreement (USMCA). The agreement includes all parties’ commitment to ensuring the free flow of information, publicization of large government datasets, protection of source code and algorithms, and the fight for technical standard based on consensus.

AI: The Trump administration sees leadership in the AI industry as the number one priority. The President of the United States established the AI Committee of the National Council of Science and Technology and at the White House Spring Summit in 2018, emphasizing the actions of the government, including: prioritizing funding for R&D, remove legal barriers to future innovation, train the U.S. workforce, accelerate the application of AI to Government services, and lead international AI negotiations.

The conclusion

The fourth industrial revolution (Industry 4.0) is creating a manufacturing technology reform in many countries around the world. In which, smart manufacturing has become an indispensable trend with the application of digital technology in production activities, helping businesses improve product quality, services and labor productivity, saving significantly including costs (especially labor costs), protect the environment as well as enhance the competitiveness and efficiency of business.

For Vietnam, smart production is a relatively new direction and there should be mechanisms and policies to support and encourage development. Therefore, Vietnam needs to analyze and evaluate the potential advantages of Industry 4.0 and new technology trends; analyze and share experiences of enterprises in deploying industry 4.0 to operate smart factories, digital factories, apply smart technologies to production and business; discussing risk management issues when most stages of the production process are automated, etc; Institutional and policy issues also need to be removed to promote the application of high technology and smart technology to production in order to increase labor productivity, increase competitiveness of enterprises and our country’ economy. More importantly, businesses themselves need to change their minds to access new technologies in management, business and production, and at the same time improve the quality of human resources themselves by promoting resource training high quality manpower?

Productivity and Quality Office