Unlocking ROI with automation and AI

Food firms could unlock major ROI with the Smart Factory - but only if they start the right way.

The advent of technology has given way to once unimaginable opportunities within food production. Tasks which would have otherwise taken hours or even days have been whittled down to minutes, while physically demanding roles have been transformed by the likes of automated wrapping machines, sensor technology and robotic arms.

Yet we’re only on the very cusp of what’s possible – there are still so many untapped opportunities for the sector, with the Food and Drink Federation estimating as much as £14 billion worth of growth could be unlocked over the next 10 years through tech adoption.

For individual businesses, the opportunities are vast, as Amanda Johnston, director of innovation at Sheffield Hallam University’s Advanced Food Innovation Centre (AFIC) and board member of Made Smarter Yorkshire, outlined in our most recent webinar - Investing in the Smart Factory.

Her suggestions ranged from addressing predictive maintenance challenges to improved policy control, compliance, traceability and resource management; and even AI-driven forecasting for quicker market responsiveness.

The Smart Factory: Where to start?

Despite this, adoption for technology in the sector remains slow, with many worried about the cost of implementation versus return on investment, alongside concerns over a lack of technical skills, and the challenges of legacy systems.

But the main one, according to Johnston is they simply “don’t know where to start”.

Johnston’s advice is to start small: “It’s about making a really successful business case and focusing on the tangible business outcomes.”

She also noted how helpful engagement with other business leaders and universities can be, with the latter also potentially offering the added benefit of a future talent pipeline.

Liz Salter, industrial associate at Cambridge University IfM Engage, agreed.

As she explained during the webinar, people can usually fit into one of two categories – those who are apprehensive about technology and those who ‘want a shiny robot now’.

This usually results in either paralysis, where people don’t do anything; or people jumping on a project which has been suggested by the most articulate person in the room.

“But actually stepping back from the problem and looking at it in a more structured way is really what’s needed,” Salter reasoned.

Whether you are a company just starting out on your automation journey or well into it “the question is where do we start and how do we prioritise?

“And that really comes down to these two dimensions, which of the projects which are going to have the most impact in your business; and then which are the projects that are most likely to succeed.”

These are the questions you need to ask yourself before carrying out an ROI assessment.

In her presentation, Slater set out a priority grid, showcasing how to establish which ideas to focus on. But she also raised the importance of speaking to employees throughout the process.

“Have a conversation about why your wants to automate, why the business needs it and what the challenges might be. It’s an opportunity to share the hopes and aspirations of automation, but also for the more negative conversations to be had as well. And conversations about things that haven’t worked in the past and why didn’t it work and what can we learn from that so we don’t make those mistakes again, or what have people learnt in other companies?”

Smart factories in action

Ornua Foods UK has recently invested in co-bots and has seen some great benefits after their installation. As Richard Harvey, operations controller for the dairy business, told viewers: Since 2020, it has witnessed a 72% reduction in accidents, a 7.5% OEE uplift, and a 39% reduction in complaints.

But the addition of these robots wasn’t a knee jerk response, the business took the time to ask the right questions and understand the ROI.

Talking on this process further, Harvey said it’s important manufacturers recognise that not everything can be automated or warrants automation.

He continued: “One of the key steps that we take when reviewing our five-year CapEx plan is ensuring that we get constant feedback from the category team to ensure that we are making large financial decisions that we are building in line with the category drivers.

“This also allows us to make automation more flexible and agile, which supports us in future proofing automation and ensuring that we can meet the changing demands of our customers at pace.”

Having a firm grasp on the ROI payback has helped the business to “make confident data-driven decisions” and enabled the “operations team to prioritise projects that deliver the greatest strategic benefit”.

The Compleat Food Group is another business which has reaped the benefits of technology, using AI to enhance its health and safety culture.

The business has implemented a small change, placing a small device onto of its CCTV system which can identify certain prohibited/dangerous actions based on a set of rules.

“In the olden days you used to have a health and safety employee looking through CCTV cameras and responding and being very reactive [...] Addressing those issues after they’ve already happened. However, today, with the help of AI, we want to prevent these events happening,” she told viewers.

“It’s always on [and] it can learn from past accidents. So if you’ve seen one accident before you can make sure it can track it again for you in the future.”

With its new AI-powered CCTV, on average, Compleat expects to be able to achieve up to 60% reduction in safety events.

Whilst it can feel like there are many fighting priorities and easier to ignore the lure of robots and AI; or equally tempting to jump blindly into a shiny deal full of promises, it’s worth taking the time to consider how, what and where tech could help you.

If this article has garnered your interest, check out the aforementioned webinar – Investing in the Smart Factory – here.


Thanks to Aveva, Coperion, Handtmann, and HSO for partnering with us for this session!