6 AI Transforming Manufacturing and Life Sciences

Manufacturing Industry

Manufacturing as we understand it today—of products for diverse segments such as industry, consumer, health and materials for construction, to name a few—has evolved substantially over several generations. Thanks to automation, not only has manufacturing scaled meteorically over time, scaling of production and global access have been feasible on account of innovation, demand and science and technological advancements aligning with one another. Beginning with design of products to their production, their supply chain to distribution and logistics, all of these functions have been disrupted several times with the advancements in science and technology. While automation has made the manufacturing industry more productive and efficient, the advent of AI has been yet another important milestone in the evolution of the manufacturing sector to achieve benefits from hitherto unexplored contours. In this chapter, we shall examine some of the key milestones in the evolution of the manufacturing sector leading up to the AI era and how leaders have had the vision and foresight to drive innovation causing these disruptions or have built successful businesses arising out of the opportunities they seized upon from time to time.

Prior to the industrialisation phase right until the late 18th century, goods were produced in homes in what was known as a cottage industry. Manufacturing was predominantly labour-intensive and decentralised but catered to the needs of immediate localities where the cottage industry existed. Most of the products were handcrafted and dependent upon locally available natural raw materials such as agricultural produce. The skills of the artisans played an important role, and some of them used some basic tools to produce the items, which were usually in small quantities. At times, they were custom-made and sold. Mostly, the artisans or artisan guilds passed on their hereditary knowledge to others in the family, and at times, different processes or manufacturing of parts of the product were distributed across different members of the family. Mostly, the quantities produced were in small batches due to the high labour component, and hence it was not a scalable proposition. Therefore, the products were expensive and accessible only to a few. As the products were expensive and it involved a long wait time for them to be readied, products once bought were preserved for long periods of time.1

First Industrial Revolution (1760–1840)

The invention of the steam engine dramatically changed the manufacturing process as it transitioned from dependence on water mills and manual labour. Steam power made it feasible to envisage centralised large-scale production with the advantages of lesser time and lower costs. Goods could be made available across multiple locations, and thus, mechanisation, initially through looms and later on through other manufacturing processes, brought about quantum jumps in efficiency.

Second Industrial Revolution (1870–1914)

The feasibility of the mechanical production of electric power provided an impetus to the Second Industrial Revolution. Production of electric power on a large scale for distribution was first conceived in the late 19th century. The first central power station was established in New York. The contributions of Thomas Alva Edison and Nikola Tesla made it possible to power machines reliably with electricity. This breakthrough enabled manufacturers to reduce dependence on water or steam, making it feasible to plan for mass production and, hence, higher volumes of output with higher levels of efficiency and lower costs. The automobile industry picked up momentum through the pioneering efforts of Henry Ford, who introduced assembly lines for manufacturing with workers acquiring specialised skills in different tasks. This was the turning point for lowering the cost of production and laying the foundation for consumer goods industries.2

The Second Industrial Revolution was also witness to advancements in telecommunications thanks to the contributions of Alexander Graham Bell and Guglielmo Marconi through telegraphy, telephone and wireless telegraphy, which enabled enhanced international communication and, hence, boosted productivity and personal relationships.3 These breakthroughs laid the foundation for the later-day developments related to internet, mobile networks, satellite communication and fibre optics.

Third Industrial Revolution

During the period between 1969 and 2010, automation enabled by computers and digital technologies started playing a major role, leading to higher levels of accuracy and control over manufacturing processes. With the advent of microprocessors, there was a phenomenal change in the computing world. Desktop computers and personal computing for a wide range of users became feasible as a result. Human errors could be reduced, and increased productivity became feasible because of automation.4 The World Wide Web was invented in 1991,5 and mobile phones and GPS became widely accessible. This phase also saw the beginnings of e-commerce, AI and IoT. With the help of computer-aided design and computer-aided manufacturing, it became easier for the industry to create a variety of designs and production facilities.