Ma Yunxin manufactures Hualuo Tao Factory to help upgrade 1688 industry

Abstract At the recent Ali Yunqi Conference, Ma Yun, Chairman of Alibaba Board of Directors, highlighted the new manufacturing in his speech. For a time, the public had a heated discussion about "madeinInternet." Manufacturing intelligence is no stranger to China, "Made in China 2025"...

At the recent Ali Yunqi Conference, Ma Yun, Chairman of Alibaba's Board of Directors, highlighted the new manufacturing in his speech. For a time, the public had a heated discussion about "made in the Internet." Manufacturing intelligence is no stranger to China. The policies such as "Made in China 2025" and "Guiding Opinions on Deepening the Internet + Advanced Manufacturing Industry Internet Development" have been vigorously supported by the manufacturing industry, including artificial intelligence, Internet of Things, and big data. The landing also makes Zhizhi become the real performance of the landing.

From the perspective of the development of large manufacturers such as Foxconn, Haier and Gree, intelligent hardware (industrial robots, sensors, cameras, etc.) and software (visual data analysis software, ERP, MES system, collaborative efficiency software) are invested on a large scale, from a production perspective. It saves enterprise costs and improves industrial production efficiency.

The degree of informationization in China's factories is highly polarized, and the technology and service capabilities of a large number of small and medium-sized manufacturing plants are weak. Therefore, in response to this problem, Alibaba provides digital transformation solutions and empowerment for small and medium-sized factories with synergy efficiency as the core. The Amoy factory "Digital Factory" project was seen at this time as the first step in Alibaba's new manufacturing.

Amoy factory: digital factory transformation, synergy priority, empowering the supply chain

According to Yiou, the main value of the Amoy factory is to provide software and hardware services for small and medium-sized factories and carry out digital upgrades. According to official data, the main service garment manufacturing plants have completed the renovation of 20 factories (mainly in Zhejiang and Jiangsu) and plan to renovate 200 digital factories in the current fiscal year. Wang Hai, vice president of Alibaba Group and general manager of China Domestic Trade Department, mentioned the B2S2b2C model of Amoy Factory. At present, the “S” supply chain transformation is the positioning of Amoy Factory, and is committed to open up the manufacturing and consumption end. “Not all factories can Consumers have a sensitive perception that can see the needs of end users, and this is a key factor in the future without being eliminated."

In the direction of C2B, Amoy Factory provides a series of services. Specifically, the provision of hardware equipment, the use of camera equipment, from the "end, edge, cloud" three aspects can achieve real-time monitoring and recording of factory staff production progress, each factory after transformation, will turn more than 100 million scans per day into Quantify the data on the cloud and create a digital hygiene factory online. In software, Nail has developed a nail order coordination tool for Amoy Factory. The system automatically matches the factory and the buyer into groups. The order collaboration virtual robot is online for production planning management to automatically track the production plan, issue tasks, and daily shipments. Automatic update, order status abnormal warning and production line video on demand, convenient for project team members to view at any time.

From the above description, we see that the Internet of Things plays a key role in it. On the scene of the Alibaba Amoy Factory Strategy Conference held on September 28th, 1688 announced that it would join the Alibaba Cloud IoT team to enter the workshop and digitally transform the garment factory by deploying IoT equipment. Li Wei, general manager of Alibaba Cloud IoT, mentioned that “the method of visually analyzing the data collected by the Amoy factory to install the camera is a low implementation cost and low intrusive road. Establishing a production monitoring system is the basis of the digital factory.”

In addition, Yiou found that the Amoy factory is relying on Alibaba Group's experience in the consumer side and is expanding its deeper supply chain services. For example, retail big data applications, which can help factories to make sales forecasts and market forecasts; the addition of AI scheduling engines can help factories set up dynamic pricing models, provide more advantageous prices, and dispatch orders will be more reasonable. Through the development of smart and flexible supply chain management, we help customers grow, order growth and enhance customer experience. It is reported that there will be hundreds of digital factories in the double 18 period in 2018, and will be prepared as a reserve for rescue capacity.

New manufacturing: without data and interconnection, business will not be able to continue

The intelligent transformation of the traditional industry is still in the early stage. According to SAP, the current application of AI technology in China is less than 0.9%. The underlying motivation for promoting AI development is data. Ma Yun believes that the core of new manufacturing is data, connecting and opening the data stream of supply chain and production and sales. Production information will be directly delivered to the manufacturing enterprise to complete production, in order to truly achieve flexible customization. So, helping factories and sellers know who the consumer is, where they are, and how to serve is the key to new manufacturing. Solutions such as hardware and software described above will have a direct impact.

What is the most direct help for the transformation of the digital factory?

On the production side of the factory, the prediction of online data enables the factory to prepare for each type of order in advance. The operation of the factory becomes data reflected in the mobile phone, and the problem in the process can be solved in the first time. As the representative factory of the first batch of Amoy's transformation, “Dianshi Technology” mentioned that the traditional factory will encounter many embarrassing situations, orders are there, but no workers. There are workers, no orders. Moreover, the general return period is 8-15 days. How to schedule and mobilize the maximum human effect becomes the key.

On the demand side of the brand/seller, the Taobao store 13C said in an interview with the media such as Yiou that the industry has been passive in selecting the factory. Generally, it will be considered in terms of quality, timeliness and cost performance. Under the same circumstances, aging is even more important. When experiencing an urgent return order, how to ensure the completion within the specified time is the key, otherwise it will cause a refund loss. “Tao Xin Store” mentioned that the digital transformation of the factory will help each other to improve their trust. The previously selected small workshops have plagiarized design behavior, which is very harmful to their own brand.

According to the data of the Amoy factory, the cost of a factory with a scale of 100 people like a stone is only about 50,000 yuan. Through computer vision algorithms to optimize the production process, the production can be increased by 6% and the delivery cycle can be shortened by 10%.

Through the above observations, we can understand that the Amoy factory project consists of three aspects of capabilities, based on synergy efficiency, deepening with IoT, big data, and AI technology, focusing on serving small and medium-sized manufacturing plants. It is said that only small and medium-sized enterprises are strong, and that Chinese manufacturing can be strong. The upgrading of traditional industries has a long way to go. It is a short-term goal of the Amoy factory to cut through the small and medium-sized market. It is believed that this is also the beginning of China's manufacturing intelligence together with the effect.

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