The challenge for electronics manufacturers: Transforming to the factory of the future

On paper, the "factory of the future" offers streamlined operations, enhanced productivity and data-driven decision-making, all of which is aimed at more energy and cost-efficient manufacturing. Whilst sounding straightforward, the reality is that, for most manufacturers, moving from production that’s based on legacy manual clutch-based tooling to fully connected, digital smart tools presents some challenges.

Legacy production lines, often built on earlier generation equipment and processes, are deeply embedded in UK manufacturing operations. Transitioning to interconnected systems is not simply a matter of swapping out equipment. It requires a fundamental transformation of infrastructure, processes and corporate culture. 

This article explores the challenges, potential solutions, and long-term benefits of this transition.

Legacy manufacturing refers to older generation machinery, equipment and processes that are used by many manufacturers. The assembly line has limited or no digital connectivity with a rigid footprint, making it difficult to reconfigure for new production requirements. Operations are dependent on manual oversight and intervention, meaning that they are prone to inefficiencies due to lack of real-time monitoring and predictive maintenance capabilities.

Whilst such legacy systems may still be functional, they fall short in terms of flexibility, efficiency, and adaptability. In contrast, a ‘Smart Integrated’ approach offers many advantages, including:

• Fully connected digital tooling that’s linked to an MES (Manufacturing Execution System)
• Real-time data capture and analysis for traceability and audit management
• Predictive maintenance through machine learning algorithms
• Automated decision-making and self-optimising production processes
• Remote monitoring and cloud-based control capabilities
• Operator guidance to improve quality and productivity
• Minimises rework
• Maximises assembly line uptime

Despite the clear advantages, the transition from legacy to smart systems is complex, with several key challenges. 

One of the biggest barriers to upgrading production is the capital expenditure involved.  Manufacturers must invest in equipment, machinery and associated systems, including:

• Smart connected tools and optional controllers
• Edge computing devices and cloud infrastructure
• Advanced software for analytics and monitoring

The return on investment (ROI) is not always immediately clear. Manufacturers must evaluate whether the long-term gains in efficiency, quality and uptime justify the initial costs. This is where the experts at Atlas Copco can assist with a bespoke approach, as every customer will have different expectations and limitations, both practically and financially.

Not only that, but there is a ‘human’ consideration. Where production processes require significant manual input, factory productivity may be at risk due to workforce absenteeism,  illness or even industrial action, for example. Through the process of full or semi-automation of selective production phases, issues related to personnel are minimised.

Manufacturers must choose whether to gradually retrofit existing equipment or upgrade it completely. Many production lines operate on proprietary control systems (e.g. PLCs, SCADA systems) that were never designed for interoperability. Integrating legacy systems with smart connected tools poses challenges with compatibility, which may necessitate a complete replacement approach on both cost and practicality grounds. It may not be cost-effective to retrofit new systems into older infrastructure and data extraction from legacy machines may not even be possible.

Upgrading production lines involves downtime for installation, testing and optimisation. Manufacturers often operate on tight production schedules, and any disruption can lead to missed deadlines and revenue losses.

Manufacturers must first evaluate existing machinery, IT systems and workflows. A phased approach, prioritising high-impact areas like predictive maintenance or energy efficiency, ensures manageable investments and measurable ROI. For example, Atlas Copco often undertakes pilot projects with customers to test new systems on a single production line before expanding plant-wide. This may involve creating a hybrid operation, whereby traditional and smart systems run in parallel during the transition, in order to reduce risk, provide a gradual learning curve and manage cost control.

By introducing smart tool solutions that are modular and scalable, capital investments can grow with evolving business needs, which can include upgrading network connectivity to 5G and cloud infrastructure for increased data volume.

Despite the challenges, transitioning to a smart connected ecosystem within electronics manufacturing with the support of Atlas Copco will deliver compelling long-term benefits, which include:

• Bespoke assembly solutions for the electronics sector, such as MicroTorque
• Enhanced productivity: Real-time monitoring reduces downtime and optimizes machine performance. See ‘Flexible automation’ below.
• Cost savings: Predictive maintenance cuts unexpected repair costs and prolongs equipment life. End to end service support.
• Greater flexibility: Smart factories can quickly adapt to new product lines and customer demands.
• Data-driven decision-making: Improved data analytics enhances production planning and quality control. Real-time monitoring via ALTURE enables quick and proactive decision-making.
• Sustainability: Smart systems reduce energy consumption and waste through efficiency improvements.
• Full traceability: Advanced error-proofing, real-time data tracking, and process automation provide full production oversight, reducing defects, improving consistency, and ensuring standards compliance.
• Maximising uptime and minimising waste: Eliminate downtime and keep your supply chain flowing with smart manufacturing predictive maintenance and real-time monitoring to reduce costly delays.

There are many reasons why an electronics manufacturer may decide to move towards automation. Depending on the application, automation can make a huge difference to a business.

One particular Atlas Copco customer decided to automate one of its applications with the implementation of an advanced automated tightening cell, equipped with MicroTorque to dispense and fasten screws automatically. Featuring a standardised Automation Control Platform, the cell requires a single interface to the machine tool builder, which simplifies integration into the customer environment.

Industry leading MicroTorque tools that are linked to a state-of-the-art machine vision inspection system, provide advanced tightening strategies to detect floating bolt, thread stripping and cross-threading incidents, so that accuracy and consistency of tightening is maintained continuously.

By integrating this Smart Integrated Assembly technology into its manufacturing process, which features a modular design so it can be used across other production lines, the customer has increased productivity and quality significantly and reduced labour costs.

Similarly, by harnessing artificial intelligence, Atlas Copco’s smart tooling solutions have the capability to undertake actions such as reading component scans and colour recognition to select specific components and fastener locations. In addition, data logged into the MES enables manufacturers to ensure full traceability and identify and resolve issues to increase productivity, whilst minimising costly reworking.

To remain competitive, UK manufacturers within the electronics sector must innovate towards smart manufacturing, automation and next-generation technologies, in order to benefit from greater efficiency and flexibility. Smart connected manufacturing and adaptable production processes are no longer optional, they are essential to meet evolving industry demands.

As a strategic partner, Atlas Copco provides scalable solutions and customer support that enables OEMs to stay ahead of the curve. Transitioning from legacy tooling to the factory of the future is a complex but necessary evolution for manufacturers aiming to stay competitive. While challenges such as high costs, integration and workforce up-skilling exist, the long-term gains in efficiency, flexibility and profitability make the transformation journey worthwhile. By adopting phased implementation, manufacturers can embrace the factory of the future and position themselves for sustained growth.