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Technology is changing manufacturing, and smart manufacturing is not just about bringing in smart devices but it has a deeper driving force -- re-division of labor based on specialization. This re-division focuses on data technologies and is likely to become the most important driving force in the development of smart manufacturing.

To explore the logic and growing trend behind this, Shell（China）Limited and Yicai jointly released the LubeMaster report. The report reveals how technology will change the division of labor in manufacturing, redefine the industry and improve efficiency while helping readers find the right solutions for themselves by studying the trends and case analysis via Shell’s innovative LubeMaster platform.

Smart manufacturing has brought refreshing change to the division of labor based on specialization in production, and companies’ procedures for decision-making and execution have changed accordingly, the report said.

Technological advance has divided manufacturing into ‘manufacturing services’ (decision-making) and ‘manufacturing’ (execution). Firms are handing over the manufacturing services part to external suppliers, while external suppliers providing such value-added services have integrated resources in manufacturing and other industries via digital technologies to improve their service capabilities and productivity. In the smart manufacturing era, ‘externalization of internal management processes’ and ‘platform-based external services’ have become the major features of division of labor based on specialization in the field.

The report offers suggestions to manufacturers to choose a method more suited to them to access the intelligent ‘manufacturing services’ system based on their own features. Hence, it is more practical.

Digitalization has become a strategic focus of Shell’s global business operations. Shell unveiled the LubeMaster·Intelligent Lubrication Butler 1.0 in 2018, upgraded LubeMaster’s online platform and offline services in 2019 and last year released LubeMaster 2.0 -- LubeMaster Industrial Internet of Things Intelligent Solutions.

LubeMaster 2.0 is a cloud-based Internet-of-Things intelligent service system that helps customers achieve remote intelligent monitoring and predictive maintenance of equipment to improve the gear’s efficiency and production capacity. This has become an important basis for cooperation between Shell and its customers.

“Conventional industrial product manufacturers and suppliers are looking for more value-added services in the smart manufacturing era,” said Dr. Xuan Xiaoping, general manager of industrial lubricant sales with Shell China. “These services can provide better after-sales support for the products they sell and improve customers’ application experience and production efficiency.

“Whole business digitalization will effectively support manufacturers to optimize the manufacturing process and business management decisions based on a closed loop of collecting and analyzing manufacturing system data,” Xuan said. They will thereby “develop themselves into smart firms and create great incremental value for consumers, users and companies themselves.”

“The new-generation information technology has not only optimized production and manufacturing process of the manufacturing industry but more importantly changed the division of labor and cooperation in the industry, dividing the manufacturing industry into manufacturing services and manufacturing itself, which will be the most significant feature of smart manufacturing,” noted Yang Yudong, editor-in-chief of Yicai.

“The report aims to provide a reference for Chinese manufacturing firms in their intelligent transformation relying on an in-depth analysis of the new business model LubeMaster and advice on how to form a smart manufacturing service-oriented corporate cooperation model,” Yang added.