Thailand i4.0 Index Unlock Thai Industry with 4.0 Index

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By salika -July 28, 2021 

Industry 4.0  or the 4th Industrial Revolution that plays a global role to deal with such changes especially with Thailand that has applied this concept to the policy “Thailand 4.0” to drive the country through innovation.

Industry 4.0 will result in changes that will have broad influence. Not just young factory workers, managers or industrial factory executives but including the business sector transport and logistics sector Both large and small entrepreneurs. All of them are able to integrate their own business and production processes efficiently and in accordance with the needs of the rapidly volatile global market. The demand for mass production goods has decreased, consumers want products that can be customized unique and must order immediately. Fast to the changing trends.

If Thai industry can step into Industry 4.0, it will drive economic growth. Infrastructure to support the Industry 4.0 ecosystem and the development of skilled labor more capabilities in the country . As a result, the creation of a career causes the unemployment rate to decrease. Like a professional who thinks solutions for factories with technology to change the factory to 4.0 (System Integrator) or shortly called   System Contractor (SI), it is one of the occupations that arises to support the stepping into Thailand’s Industry 4.0.

 However, moving towards Industry 4.0 requires many factors. Therefore, knowing the readiness status of the industry at present will make the transition to Industry 4.0 a standard in order that is truly appropriate to the context of the industry by Digital Economy and Society Development Fund, Federation of Thai Industries and the National Science and Technology Development Agency (NSTDA) has invented the Thailand Industry Readiness Index (Thailand i4.0 Index).

What is Thailand i4.0 Index: Why does Thailand have its own Index?

Industry Readiness Index There are many countries around the world, such as Singapore’s Smart Industry Readiness Index (SIRI) or Germany’s Industrie 4.0 Readiness Index. Many of you may be wondering why Thailand does not directly use the indicators of the world’s leading countries.

For the reason that Thailand needs to have its own indicator of the readiness of the industry. Because the social context of each country is different. Thailand’s use of indicators of other countries will not be suitable for working in the system of Thai industry.  Therefore, we have to create our own  indicator. In order to be most appropriate to the context of the country and Thai society. To reduce dependence on foreign assessment systems And there is no need to hire a foreign system contractor to help manage. Reduces the risk of data leaks, The circulation of the domestic economy, increasing the domestic employment rate by creating a career as a system contractor to occur in Thai society.

Industry 4.0 Readiness Index for Thailand (Thailand i4.0 Index)

The Industry Readiness Index 4.0 for Thailand is a process of assessing the readiness of operators, factories and companies by sequencing various aspects of factory improvements, enabling them to find system contractors (SIs) that address their problems and needs  of that factory fully, including using the Industry 4.0 Readiness Index to assess the potential and suitability of system contractors To enable factories to develop their potential towards Industry 4.0

Therefore, the Industry 4.0 Readiness Index has a huge impact on driving the economy and Gross Domestic Product (GDP) and raising the standards of Thai industry. It will help make industrial factories and entrepreneurs have a body of knowledge about improving the organization to be more standardized. Know what areas need to improve their organization. And to what level must be improved to be considered to enter the organization of the Industry 4.0 era.

It’s divided into 6 dimensions , which are:

 1. Technology

Applying technology in automated production processes from production control, location and organization management, and connect all sectors together

 2. Smart Operation

Intelligent data processing and analysis for production management, corporate operations equipment and production sites that operate in the same way smoothly.

3. IT System & Data Transaction

Integration of internal structures by connecting processes vertical or pyramidal (automatic pyramid in industry It is divided into 5 tiers, where the first tier is the top where the organization is planned. Level up to level 5, which is at the bottom of the pyramid)

 4. Market & Customers

Collecting and managing behavioral data of target consumers and market conditions for business strategy formulation, product lifecycle design and planning.

 5. Strategy & Organization

Work process and organization lead from executive to employee. Planning and development of the organization towards Industry 4.0 through management’s vision and cooperation with external partners.

 6. Human Capital

Developing the competence and scope of employees through training in line with the direction of the organization. Including education and welfare that are suitable for life and well-being.

Situations that Thai factories and entrepreneurs have to face

As Thailand is about to enter the 4.0 era, the country has shifted to an era where technology and digital trends are used to process and facilitate easier decision making. Therefore, today’s customer groups are in demand  that has changed. It has begun to change which has been influenced by the 3.0 era, the era in which internet access and internet are more important to daily life. As we enter the 4.0 era, the influence from the 3.0 era is even more influential. In the 4.0 era, consumers focus on speed and meet their needs as much as possible. Emotional use  and the feeling of choosing to buy and choose products and services than before.

Therefore, the factories and operators will be able to meet the needs of customers and consumers will require the introduction of technology in the digital era to process, Penetrate the needs of customers via the Internet as quickly as possible. In order to provide products and services that satisfy customers.

Including applying digital technology to the machinery in the factory To increase the efficiency of the machine in the production process is more intelligent. Increased efficiency, lower costs, and help to see useful information for operations, such as the adoption of the IDA platform, which can link data from Internet of Things (IoT) devices by detecting various signals. From the machine to know the condition of the machine leading to data analysis and integration that helps to manage production more efficiently. It can reduce the cost and increase the efficiency of the maintenance of the machines in the factory. Timely maintenance planning because the parameter data is linked of the machine to analyze the possibility of the machine causing damage in the future.

The adaptation of SMEs in the manufacturing sector is urgently needed. Including to accommodate all the changes after COVID-19, but at present, most factories and entrepreneurs still don’t know what level their factory is. And how should it be developed and improved? Because at present, Thailand does not have an Industrial Readiness Index used in the country.  It’s need to rely on foreign assessment systems which has a high cost ,Including the adoption of technology, it will cost money. This may not be cost-effective for some industries that require careful consideration for investment worthiness.

Therefore, the Industry 4.0 Readiness Index will be an important force enabling Thailand to develop into Industry 4.0 in an appropriate order. Help to solve problems that the industrial sector is facing. Including the government sector will be an important force that helps support and raise awareness about the Industry 4.0 Readiness Index for Thailand for further adoption.

( Information : National Electronics and Computer Technology Center : NECTEC)

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