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Using AI to Redefine Productivity
May 15, 2024 | Nolan Johnson, SMT007 MagazineEstimated reading time: 2 minutes
Plato Systems, a machine perception company spun out of Stanford University, employs AI and video data to analyze and optimize the human component in manufacturing. Initially focused on semiconductors, Plato Systems has expanded into EMS manufacturing. Co-founder and CEO Amin Arbabian, along with product advisor Anders Holden and head of growth Luis Vidal, discuss their approach to changeover optimization and its impact on productivity in the industry. They’ve also included customer Raj Vora in the conversation.
Nolan Johnson: Amin, I want to discuss AI on the manufacturing floor, and I’m particularly intrigued by Plato's focus on changeover. Why don't we start with an overview of your company?
Amin Arbabian: We're fundamentally a machine perception company. If you look at your current changeover process, ask yourself, “What is the changeover? How do you qualify it?” A changeover is a step in the process where the level of interaction between the operator and the machine is critical. It's also a big piece of your total productivity, especially if you have a significant number of changeovers in your operations. It’s where you have multiple steps and sequences that must be done.
Much like a pit stop in a Formula One race, you have to optimize your process. If you want to codify changeovers, start by considering that they're a manifestation of the operator-machine interaction. We’re bringing operator and factory behavior to the table through specific AI detection.
If you think about physical industries worldwide, they're about 30–40% of our global GDP in regards to more than manufacturing and logistics. In the U.S., manufacturing is about $2 trillion—about 10–20% and 2–3% of global GDP. We have this huge part of our economy with 12–13 million employees, yet the productivity levels have been stagnant or declining in the past few years, by 2–3% year-over-year in some sectors. Why is that the case?
We've had digital transformation, Industry 4.0, and so forth, but we haven't increased productivity. In parallel, labor trends show there are huge problems with hiring and turnover in the sector. We have about 13 million employees and more than a half-million openings in manufacturing. It’s a huge gap; this problem will not go away. We need better leverage.
To read the entire article, which appeared in the May 2024 issue of SMT007 Magazine, click here.
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