Schneider Electric’s Batam Smart Factory’s Digital Transformation Journey In Industry 4.0

French company Schneider Electric has a sizeable footprint all over the world with presence in Indonesia, China, France, Philippines, North America and India. The company’s smart factory in Batam is a Industrial Internet of Things (IIoT) showcase for companies in Asia, showing customers and partners how easy to get started on their digitisation journey. More than 150 customers and partners from Indonesia, China, Singapore, Vietnam, Malaysia, Myanmar and Middle East have visited the factory since its digital transformation as a smart factory in 2017.

Schneider Electric utilises Schneider Electric’s IoT-enabled, plug-and-play, open, interoperable architecture and platform, named EcoStruxure™ solutions. These solutions include EcoStruxure™ Machine, EcoStruxure™ Power and EcoStruxure™ Building. EcoStruxure™ provides more value in terms of security, reliability, efficiency, durability and connectivity. EcoStruxure™ leverages advancements in IoT, mobility, sensing, cloud, analytics and cybersecurity technologies to deliver ‘Innovation At Every Level’, from connected products to analytics and application services, through edge controls.
Batam’s implementation of the EcoStruxure™ solutions has led to between 5% and 7% energy efficiency, reduction of production scrap by 46% and increased productivity by about 17%.

Through this technology there is real-time tracking of the performance of its operations and better visibility of machine performance and preventive maintenance needs. Using the Manufacturing Control Tower dashboards, plant managers can make better decisions and shorten reaction times to issue to the manufacturing shop floor.

“We strongly believe in the value of smart factories and ensure our own factories are equipped with the latest IIoT technologies to spearhead the new Industry 4.0 era. Our smart factory in Batam is a test bed for machine learning, AI, predictive and digital maintenance, connected machines and processes. The integration of big data, cloud, and IIoT technology will pave the way for organisations in Asia to work towards their smart factory vision, becoming more energy efficient and sustainable in the long term,” said Xavier Denoly, Country President Schneider Electric Indonesia.

The Schneider Electric Manufacturing factory in Batam is located in Batamindo Industrial Park which is part of PT Schneider Electric Indonesia. Established in August 1991, it has an area of 10,450 m2 and 242 employees. There are three plants in Batam producing Electromechanic, Electronic and Sensor products for the local market, Europe and Asia Pacific. The plants are certified with international standards ISO 9001, ISO 14001, OHSAS 18001 and ISO 50001. Schneider’s Product Electromechanic Plant has an area of 10,300m2 and more than 1,000 employees. It produces about 4,000 types of electromechanical equipment such as Contactor, MCB, Push Button, Light Pilot, Tower Light Rotation light, Voice Alarm, and Relay. As for the Product Electronic Plant, it has an area of 11,000m2, about 800 employees and produces about 2,500 types of electronic equipment such as Variable Speed Drives, HMI panels, and Electronic relays. Last but not least is the Sensors Plant with an area of 10,300m2, about 700 employees and produces about 3,000 types of Sensor equipment such as Inductive sensors, Photoelectric Sensors and limit switches.

“Empowering local competencies and nurturing talents are also key success factors in Batam factory’s digital transformation. Schneider Electric team in Batam has successfully designed, developed, tested and deployed several digital solutions across the company’s global manufacturing network. Moreover since 2017, Schneider Electric has provided vocational students and Batam Polytechnic students opportunities to participate in developing Batam’s Smart Factory applications through its Digital Internship Program,” said Xavier.

The company has been a working partner of the Ministry of Industry of the Republic of Indonesia for the development and implementation of industry 4.0 since last November 2018 and Batam Smart Factory has just received an award from Ministry of Industry of Republic Indonesia as “A National Lighthouse for Indonesia.”

Fadli Hamsani, Digital Transformation Senior Manager, Schneider Electric Manufacturing Batam shared about the digital transformation journey in Industry 4.0. With digitisation, companies can go from reactive to proactive, from onsite to mobile and remote, from site by site to enterprise and from limited to a new scale of computing and artificial intelligence. Through digitisation there is maximum energy efficiency and sustainability, optimised asset availability and performance, smart productive profitable operations and mobile insight and proactive risk mitigation.

The 2020 mission is to have 100 over smart factories. In 2018, Schneider Electric launched 40 smart factories with five that are showcase factories. In Batam, over 2,900 people are employed across its network of plants. Sirichai Chongchintaraksa, VP Supply Chain Performance East Asia Japan Pacific Schneider Electric said, “We understand that it is not easy for organisations to take the first step towards IIoT. However, our Batam smart factory can serve as best practice and example of the benefits of digitising energy management and automation in manufacturing industry and help organisations to get started on their digitization journey”.

According to Sirichai:

• Digital transformation empowers real-time tracking of operations performance from shop floor to top floor — gaining visibility on machine performance, preventive maintenance needs, process quality control compliance, process drifts, energy management and most activities you can find in a manufacturing shop floor.
• All employees in our factories benefit from this digitalisation as they have more time to focus towards the strategic tasks that support the company’s growth, increase productivity and better decision making based on real-time data analysts and improve working conditions.
• The return on investment of such technologies vary from less than 6 months up to 2 years; to give one specific example the Return On Investment of the deployment of EcoStruxure™ for one of our electromechanical production line was less than 6 months thanks to 46% wasted material reduction and maintenance manhours decreased up to 17% and it took us less than a month to implement it.

Here are some of the customer feedback:

Tin Oo @ Richard, Managing Director I.E.M Company Limited:
“It is amazing to see in person on how digital transformation can really have a great impact to the operations and business, and how EcoStruxure™ platform scale each customer’s digital transformation journey quickly and securely. We will definitely share this knowledge to our customers in Myanmar.”

Urmila Prakash, Digital Transformation Lead Nestle R&D Center (Pte) Ltd:
“My impression is very inspiring. We learnt how Schneider implementing the digital transformation not only one plant but to other plants as well. It is interesting to see on how you own the solution and how you scale the solution from the plant and the people.”

Looi Chin Kin, Senior Principal Architect CPG Singapore:
“I really appreciate the way Schneider emphasized on how digital transformation can optimize not only from economy side but also human welfare. Digital transformation is not putting aside people but actually give an opportunity for people to expand the skills.”



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