
Introduction
Globally, around 22% of the Aluminium usage per annum undergoes Heat Treatment and Casting[i], equivalent to around 32% of the annual primary aluminium production of the world[ii] Globally, there are a few thousand companies related to aluminium heat treatment. The number of companies will significantly increase considering the support industries like technology, equipment manufacturers, consulting companies, logistics firms, legal services, training companies, etc. Globally, the aluminium casting industry employs more than 100,000[iii] people. Hence, heat treatment is a significant part of the Global Aluminium industry. Like any other part of the aluminium value chain, digital transformation can benefit heat treatment. In this issue of AL Circle's e-magazine, let us find out how this can happen.
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Digital transformation opportunities for aluminium heat treatment companies
Heat treatment companies can leverage Digital transformation in myriad ways. A few such areas are mentioned here:
Leveraging Industry 4.0 solutions and AI built on the various sensor data, ERP data and historical maintenance logs, one can build predictive analytics models to predict the failures in the equipment, furnace moulds and the like. Hence, corrective or preventive action may be taken before the failure occurs.
Using deep learning and applying the same to the products' images, the products' inherent errors may be identified without manual intervention or human errors. This also ensures a smooth flow of the products and reduces both the Type 1 and Type 2 errors in the long run.
Process data can be used for modelling AI-based optimization in the Heat Treatment industry, reducing manual effort and optimizing processes to a significant degree. This results in higher profitability and better performance. Digital Twin is possible with proper leverage of Industry 4.0, resulting in substantial value addition to the aluminium heat treatment companies.
Industry 4.0 solutions may also address aluminium heat treatment companies' energy reduction use case. The optimum usage of the heating units may be achieved based on product availability and inflow. This can reduce energy consumption significantly and reduce GHG emissions for the Heat Treatment companies as well.
Several universities and R&D divisions of casting and heat treatment companies are leveraging AI to design alloys based on specific industrial applications. The various simulation models can support the process of R&D to ascertain whether the right properties will be possible.
The casting companies may leverage blockchain technology to ensure end-to-end material traceability during the Heat treatment process in order to comply with the customer specifications, failure inspection or regulatory compliances.
Knowledge management and training can benefit significantly through VR-AR automated training modules. AI can also support the various use cases with training need identification, imparting training, and measuring the effectiveness and impact of the training programs.
Descriptive analytics tools can support creating regulatory dashboards highlighting and tracking the major KPIs. RPA may support populating such a dashboard without any human intervention and maintain the referential integrity of the data. More details of RPA have been highlighted in AL Circle's recent report on Digital transformation in the Aluminium Industry 2023.
Mould creation for aluminium casting is an important of aluminium heat treatment. 3D printing is getting used a lot in mould creation these days. The practice is gaining more traction due to the ease of creating complex moulds with shorter lead times and reduced material wastage.
Aluminium casting companies are increasingly going global. According to the research of the AL circle team, post-COVID, the global traction has increased 3-4 times among the Aluminium industry, and the casting segment is no exception. AI is increasingly getting leveraged to work on global data and identify the same patterns to build better market intelligence.
Conclusion
Aluminium casting has a strong potential for growth and betterment in various aspects, technology being one strong driver. This segment of the aluminium value chain is already attracting much attention from various stakeholders and collaborators like technology companies, system integrators, consultants and the like. Several developments are already taking place, and AL Circle's research report named 'Future of the Global Aluminium Castings Industry: Market analysis and industry forecast to 2027' covers a number of such case studies and future trends. AL Circle's internal research reveals that the same will only increase in the short to medium term, and aluminium heat treatment companies will embrace technology even more in the coming days.
[i] AL Circle's internal research [ii] AL Circle's report on Global Aluminium Outlook 2023 [iii] AL Circle's internal research
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