The pressure for cost optimization is keenly felt by companies today. Yet, amidst these challenges, winners of the Factory of the Year award showcase how digitalization and automation can significantly mitigate these pressures.
This year’s event highlighted an increased adoption of Artificial Intelligence (AI) in several of the winning factories. Daniel Stengel, Director & Project Manager Factory of the Year at Kearney, notes that this trend is not surprising, stating, "Companies are
developing rapidly. Companies themselves are driving use cases… as part of citizen development,"
Indeed, this is evident in the “Outstanding Small Series Production” category. Notably, Festool’s plants in Weilheim/Neidlingen, Germany, are rapidly developing Agile software tools to digitize production processes.
These tools are enabling them to introduce AI and VR applications in assembly demonstrably. “These are use cases where companies see significant added value, such as increasing output, improving quality, reducing efforts or increasing productivity,” explains his colleague Philipp Yoldasis, Principal at Kearny.
AI solutions are now integrated into areas such as planning, maintenance, and quality control.
Rather than being rendition of previous models should not be merely copied, Philip explains. "The primary aim isn’t simply to use them – they are a tool to realize potential for improvement."
The Factory of the Year takes center stage
The Factory of the Year Award is one of Europe’s most prestigious industrial competitions. Each year, winners are recognized at a dedicated congress. The 2025 event will take place on March 18th and 19th.
More information about the competition can be found on the
<a rel="nofollow" target="_blank" rel="noopener" href="https://www.fabrik-des-jahres.de/" target="_blank">Factory of the Year website.
Click here!</a> ```
You can also read this year’s winning works here:
[Link to this years winning works]
Not to be missed is the Factory of the Year podcast. In a special episode, Johann Kraus of Rohde & Schwarz explains how any company can achieve success. Listen here:
[Podcast Link]
##### **Digitalization for faster responsiveness**
The extent to which AI is becoming integral is clearly shown by this year's overall winner, Wilo, with its Dortmund plant.
Taken on by this. It distinguished itself last year by winning the "Outstanding Transformation: Digitalization" category. This year, it continues to expand its capabilities, now boasting enhanced responsiveness due to effectively utilizing digitalization tools, leading to reduced downtime despite high variant diversity and vertical integration.
At the Mercedes-Benz plant in Rastatt, digitalization also plays a central role in achieving its goal of increasing productivity, agility, and speed.
Reaching its goal of increasing production, agility, and speed.
##### **Technology shifts the business case**
“Of course, these steps are often linked to not enough people wanting to carry out certain tasks," says Stengel highlighting one reason for the continued level of automation. However, there's also the fact that a few years ago, for certain tasks". Back then, carrying them out manually was simply more cost-effective because of low numbers or high variance,” describes Stengel the scenario.
However, technological advancements, particularly with cobots, are changing that business case.
Now, the calculation is done against lost sales, rather than personnel saving. Also, automating certain tasks opens the door to increased employee value.
This in turn leads to operational improvements at The GEO Award winner,
What are some specific examples of how AI is being used to improve efficiency and productivity in manufacturing processes?
## Interview with Daniel Stengel on the Rise of AI in Factories
**Interviewer:** Welcome, Daniel. Today we’re discussing the Factory of the Year award and the growing trend of AI integration in manufacturing.
**Daniel Stengel:** Thank you for having me. It’s exciting to see the innovative ways companies are leveraging technology to overcome challenges and optimize their operations.
**Interviewer:** This year’s award highlighted a significant increase in AI adoption among the winners. What are your thoughts on this trend?
**Daniel Stengel:** It’s not surprising, really. We’re seeing companies rapidly developing their own AI use cases, often through citizen development initiatives. Companies are taking ownership and leading the charge in this digital transformation.
**Interviewer:** Can you elaborate on some specific examples?
**Daniel Stengel:** Absolutely. Festool’s plants in Germany, for example, are using Agile software tools to digitize their production processes and introduce AI and VR applications in assembly.
**Interviewer:** What kind of benefits are these companies experiencing?
**Daniel Stengel:** The potential benefits are immense. Companies are seeing increases in output, improvements in quality, reduced effort, and boosted productivity. They’re realizing tangible value by applying AI to areas like planning, maintenance, and quality control.
**Interviewer:** You mentioned the importance of companies not simply copying existing models but rather using AI as a tool for improvement. Can you explain that further?
**Daniel Stengel:** Absolutely. Philipp Yoldasis, my colleague at Kearney, perfectly encapsulated this idea. AI shouldn’t just be implemented for the sake of it. The
true value comes from truly understanding the potential of AI and leveraging it to unlock new levels of efficiency and innovation within their specific contexts.
**Interviewer:** Thank you for sharing your insights, Daniel. It’s clear that AI is playing a transformative role in the future of manufacturing.
