Gerdau's Smart Manufacturing Success: Lessons for ASEAN Factories

Unlocking Efficiency and Quality: Gerdau's Journey with Plex Process Flows \\[n]In an era where operational efficiency and quality control are paramount, leading global steel producer Gerdau has set a new benchmark. By leveraging Rockwell Automation's Plex Process Flows, Gerdau not only saved an estimated $30,000 in development costs but also significantly reduced the need for manual quality-control work. This success story offers valuable insights for factories in Thailand, Vietnam, Indonesia, and Malaysia, where the adoption of smart manufacturing technologies is on the rise. \\[n]### The Challenge of Legacy Systems \\[n]Before implementing the Plex Smart Manufacturing Platform, Gerdau's North American special steel division faced significant challenges. Managing production across multiple disconnected legacy systems made it difficult to maintain real-time visibility into orders and inventory. This lack of integration also hindered the consolidation of key performance indicators (KPIs) across plants and the creation of a scalable technology roadmap. \\[n]### The Solution: Plex Process Flows \\[n]To address these issues, Gerdau turned to the Plex Smart Manufacturing Platform. One of the most transformative features was Plex Process Flows, a low-code automation capability that allows teams to build sophisticated workflows without extensive software development expertise. Joseph DelPup, a business analyst at Gerdau Special Steel, noted, "We can create these automation processes and scripts without having to develop or write any code. It creates more opportunities for non-developers to get into automation creation." \\[n]Using Process Flows, Gerdau implemented a scheduled automation that scans newly completed bundles every 15 minutes and automatically places overweight containers on hold before shipment. This step alone significantly reduced customer complaints and costly rework. Additionally, the team automated quality workflows, such as updating container statuses for 10 to 30 bundles at a time, which greatly reduced manual effort during each review cycle. \\[n]### The Impact on ASEAN Factories \\[n]For factories in Thailand, Vietnam, Indonesia, and Malaysia, Gerdau's experience highlights the potential benefits of adopting smart manufacturing solutions. In Thailand, where the automotive and electronics industries are booming, the ability to streamline production processes and reduce manual errors can lead to significant cost savings and improved product quality. Similarly, in Vietnam, where the mold and die industry is rapidly growing, the use of low-code automation can help manufacturers stay competitive by quickly adapting to new technologies. \\[n]In Indonesia, where the food packaging and medical device sectors are expanding, the implementation of smart manufacturing platforms can enhance traceability and compliance, ensuring that products meet stringent quality standards. For Malaysian factories, particularly those in the semiconductor industry, the reduction in manual work and the improvement in real-time visibility can drive greater efficiency and innovation. \\[n]### Concrete Takeaways for Factory Buyers \\[n]The success of Gerdau's implementation of Plex Process Flows underscores the importance of investing in smart manufacturing technologies. For factory buyers in ASEAN, the key takeaways include: \\[n]1. **Cost Savings**: Automating processes can lead to significant reductions in development and operational costs. \\[n]2. **Quality Improvement**: Reducing manual work and automating quality checks can minimize errors and improve product quality. \\[n]3. **Scalability**: Low-code automation tools allow for the creation of scalable solutions that can evolve with new technologies. \\[n]4. **Empowerment of Non-Developers**: With user-friendly automation tools, non-technical staff can contribute to process improvements, fostering a culture of continuous improvement. \\[n]By embracing these lessons, ASEAN factories can unlock meaningful efficiency gains and strengthen their competitive edge in the global market.