June 14, 2024 Smart Manufacturing Solution to Emissions Regulations

Federal announcement signals increased sustainability-related regulations targeting the manufacturing industry.

by Anthony Murphy

Earlier this year, the White House announced the first trade task force aimed at reducing carbon emissions resulting from global commerce and manufacturing. This initiative reportedly aims to address “carbon leakage, carbon dumping and other emissions associated with upstream manufacturing and production.” For the manufacturing industry, this accelerated pace of change signifies the first formal initiative, besides the Inflation Reduction Act, targeting the industry’s emissions output. From automotive manufacturing to food and beverage processing to pharmaceutical production, many industries are in for a significant adjustment regarding curbing emissions and decreasing waste.

Regulatory Pressure on Manufacturing Sustainability

Regulators are increasing pressure across the value chain for manufacturing organizations to address sustainability. Manufacturers are responding and most organizations have begun to incorporate formal sustainability processes. However, these policies and programs, formal and informal, will require greater operational rigor, digital technology, advanced analytics and infrastructure to accurately and effectively ensure that these enterprises are meeting sustainability metrics. For example, experts predict that by 2026, sustainability regulations will drive manufacturers to adopt product carbon footprint as a key metric to operationalize sustainability. Ensuring manufacturing operations are within these metrics will require robust, enterprise-wide technology, capable of providing timely, accurate information on climate emissions and carbon usage.

Although several manufacturers do prioritize waste reduction and record metrics related to carbon and climate emissions, the latest announcement paves the way for more permanent regulations and compliance guidelines. Adhering to new expectations will require comprehensive technology to monitor and analyze information across the enterprise, such as energy usage, waste reduction and carbon emission. Legacy manufacturing systems and software may not include the appropriate breadth of capabilities to monitor operations across the enterprise. Providing your organization with scalable and affordable technology that also allows for advanced automation and tracking capabilities is a critical component of meeting environmental, social and governance (ESG) policies.

Smart Manufacturing Solutions for Sustainability

Smart manufacturing solutions are one way organizations can accommodate various emissions and climate related mandates, by prioritizing energy efficiency, upcycling and recycling of materials, and track and trace capabilities to ensure adherence. Increasing data collection and visibility across manufacturing processes allows for the monitoring of energy consumption from machines, materials usage at each stage of product lifecycle, and thorough evaluation of waste across the enterprise. Similarly, through real-time monitoring, organizations can identify inefficiencies and bottlenecks. Alleviating these inefficiencies ensures that resources are optimally used, and sustainability requirements are met.

Through advanced analytics and reporting, various data sources are collected and transformed into actionable insights. This involves identifying areas within manufacturing operations responsible for high energy consumption or excessive waste generation. In addition, implementing proactive measures identifies potential areas for waste reduction earlier. Similarly, the use of track and trace technology allows organizations to follow the product through the production process, allowing manufacturers to identify opportunities for upcycling additional materials back into production.

Specific technology that can be leveraged to mitigate climate emissions and manufacturing waste are included below:

• Industrial IoT Sensors: Sensors embedded in machinery gather data on equipment performance, providing valuable insights into machine health and overall production efficiency. Some sensors go even further, tracking resource consumption or emissions generated during the manufacturing process.
• Manufacturing Execution Systems (MES): Monitor manufacturing activity in real-time by pinpointing areas of waste, such as idling equipment or excessive material usage. This technology can also predict potential equipment problems and recommend proactive maintenance to avoid downtime. Early detection of equipment malfunctions is crucial for sustainability, as it helps curb materials and energy waste.
• Quality Management Systems (QMS): By continuously analyzing production processes, with prescriptive quality, and preemptively evaluating where issues might occur, QMS identifies areas of improvement, ensures consistent quality, eliminates waste and identifies defects throughout manufacturing.
• Supply Chain Planning (SCP): Predict demand and inventory needs, optimize transportation routes, identify potential sourcing partners, and facilitate the creation of closed-loop systems for product recycling. Accurate forecasts and optimized transportation lead to more efficient use of materials and route planning, resulting in lower resource consumption and reduced emissions.
• Enterprise Resource Planning (ERP): Centralized data repositories can be used to create customized dashboards and reports that track key performance indicators (KPIs) related to sustainability goals. By monitoring these KPIs, manufacturers can assess their progress and align multiple business processes and organizations to get a full view of sustainability.

The Business Case for Sustainability in Manufacturing

Beyond compliance and regulatory incentives, many organizations are coming to realize that sustainability is also linked to performance. In fact, recent surveys show that most organizations are adopting these policies to improve efficiency and increase competitive differentiation. At the same time, organizations report that their efforts in pursuing sustainability improve quality and delivery on partner and customer standards.

Consumer preferences are also shifting significantly, as reports show that a significant majority of consumers have reported they would pay more for a product made with sustainable packaging. The results are also clear for manufacturers, as products with ESG claims have greater cumulative growth over the past few years, as opposed to products with no such claims. The general trend is clear, that products with climate and sustainability related claims are poised to perform much better with consumers than products without such distinctions.

The evolving regulatory landscape and growing consumer pressures for sustainability require a paradigm shift within the manufacturing sector. While many organizations have taken initial steps, successfully navigating this new landscape necessitates robust technological solutions. By implementing smart manufacturing systems that prioritize energy efficiency, waste reduction and comprehensive data tracking, manufacturers can ensure compliance while also unlocking opportunities for performance improvement, cost reduction and enhanced brand reputation. Embracing sustainability presents a win-win-win scenario for manufacturers, the environment and society at large.

Anthony is Vice President and head of Product Management at Plex is responsible for Plex’s core customer facing products such as ERP, MES, and QMS. Prior to Plex, Anthony worked in manufacturing, holding a variety of roles across functions such as IT and software development, logistics, operations, and general management. He has a deep passion for manufacturing and Plex’s customers and engaging with them to solve key problems and deliver competitive advantages.

Subscribe to Industry Today