Hanoch Magid, CEO
Although the manufacturing sector is a major driver of GDP worldwide, there is relatively minor investment in manufacturing R&D. As a result, many manufacturers lag in adopting modern technologies, blocking them from the kind of cost, operational and quality improvements that are accessible to other sectors such as high-tech and medical.
High raw material costs coupled with intense competition mean that manufacturers in many industries walk a tightrope of high manufacturing costs and low profit margins, struggling to move forward as they are buffeted by fluctuating prices and demand. Especially now, with COVID-19 affecting the global economy, it is imperative for manufacturers to continuously improve their production processes by incorporating cutting-edge tools and technology. But the ongoing lack of R&D investment makes it extremely challenging to achieve meaningful advances. Some challenges are considered very hard to address; some people even say it’s impossible.
Hanoch Magid is not one of those people. As the CEO of Smartech, Magid and his team have developed a novel approach that has already brought transformational technology solutions to numerous manufacturers.
Smartech’sapproach targets three major manufacturing vectors:
• Costs– focusing on raw materials and technological processes
• Productivity– addressing line speed or throughput
• Product quality and features.
“We believe that reducing manufacturing costs by 10 percent and significantly improving profit margin, has greater financial impact than increasing the same percentage of sales,” says Magid. “We have embarked on a mission to help clients achieve both those feats with game-changing technologies.”
Smartech’s innovative approach comprises three layers. The first is a smart manufacturing solution called Smartech Autonomous Manufacturing, which enables manufacturers to better leverage their existing production equipment. Production floors often incorporate many different machines from different vendors, with varied sensors and operating systems. Orchestrating streamlined operations on an everyday basis can be cumbersome for control room operators.
“Instead of replacing the control system that traditional manufacturing facilities have, we are providing game-changing technology solutions that operators can utilize to make it run the best way, as planned,” says Magid. “A couple of decades ago, an autonomous electric car driving alongside an industrial manufacturing line, guided by a navigation system, and with every parameter monitored by sensors, would have been a dream. Today, autonomous operations are part of our daily lives, but they’re still mostly absent from manufacturing. We’re out to change that.”
The second layer of the Smartech approach focuses on providing new game-changing technology solutions that expand and enhance the production envelope and capabilities. The goal is to reduce production costs, increase production line speed, and enhance the quality of the final product, ultimately enabling higher margins and improved competitiveness.
We believe that reducing manufacturing costs by 10 percent and significantly improving profit margin, has greater financial impact than increasing the same percentage of sales,” says Magid. “We have embarked on a mission to help clients achieve both those feats with game-changing technologies
The third layer is the Smartech X-Force multi- and cross-disciplinary research arm, which enables Smartech to systematically provide smart technology solutions that address the major challenges facing a given industry. Sometimes, manufacturing facilities come across certain unique problems that would typically take years to solve or require a lot of resources. With its unique R&D capabilities, Smartech can quickly bring effective, out-of-the-box solutions to the table.
For example, Smartech has developed a proprietary wax suspension system—SmartWaxSys—that both increases ROI by significantly reducing the cost of wax used in engineered wood manufacturing and ensures improved quality of the end product. The solution has already been adopted by more than 25% of large OSB factories in North America, as well as by several particle board and MDF plants in Asia and Europe. Truly, this state-of-the-art SmartWaxSys has transformed wax raw material usage across the engineered wood manufacturing industry, and Magid believes that innovations like SmartWaxSys can improve other manufacturing sub-verticals as well.
Smartech offers the following solutions:
• Smart Manufacturing Solutions (Autonomous Manufacturing) to optimize manufacturing effectiveness using proprietary AI technology and algorithms.
• SmartCost Wax, SmartCost Resin and SmartCost Wood to reduce raw material costs.
• Smart Quality and SmartPredictive Quality to provide quality control and final product features.
• Smart Productivity Solutions to overcome production bottlenecks.
In addition, Smartech offers a unique opportunity to manufacturers to work with Smartech to define their major technology challenges. Smartech then assumes all risk for financing and developing the transformational technologies, and the customer commits to adopting the effective new technologies.
As Magid points out: “This unique cooperative approach gives companies the opportunity to effectively address their most-critical technology challenges and gain significant advantages.”
Smartech’s workforce—including experts from both within and outside of the manufacturing industry—is key to their value proposition. This multi-disciplinary team always places the company in the winning position and enables it to identify a challenge and solve it within 6-12 months. “As many of our clients say, we can ‘make the impossible possible’,” Magid says proudly.
Magid goes on to mention that Smartech’s unique offering, coupled with the team’s expertise, is “the right thing at the right time” to mitigate multiple challenges the manufacturing industry faces.
“With COVID-19, the world is going through trying times, and it is essential to adapt to the new norms and effectively move much faster on the technology path. With our unique R&D capabilities and track record in delivering game-changing technology solutions, Smartech is propelling clients to success.”