Managing Production Batches in the Era of Industry 5.0: A Strategic Approach to Digital Transformation in Manufacturing

The digital transformation of manufacturing requires a strategic approach to managing production batches. The use of Manufacturing Execution Systems (MES) combined with Industry 5.0 technologies can reduce downtime by 50% and cut maintenance costs by 40%, according to the latest Deloitte research.

Market Context and Economic Significance
The Industry 5.0 technology market reached USD 114.3 billion in 2023 and is expected to grow at a CAGR exceeding 20% by 2032. The manufacturing sector, responsible for 20% of this market, lies at the center of this transformation.

Global manufacturing value-added reached a record USD 8.6 trillion in 2024, underscoring the sector’s key role in the global economy. In this context, effective batch management becomes not just an operational issue but a strategic business imperative.

Foundations of Batch Management in Industry 5.0

• Definition and Scope: A production batch is the fundamental organizational unit of manufacturing processes, controlling material, time, and cost flows. In Industry 5.0, batch management is evolving from paper-based methods to integrated digital systems that leverage real-time analytics and artificial intelligence.

• Key Challenges in Modern Manufacturing (Gartner research):

  • Supply chain complexity: 78% of manufacturers use AI/ML for optimization.

  • Sustainability pressure: 70% prioritize sustainability in outsourcing decisions.

  • Skills gap: 2.1 million unfilled manufacturing jobs projected by 2030.

  • Cybersecurity: Manufacturing was the most targeted industry in 2021 (23% of ransomware attacks).

Enabling Technologies for Batch Management

• MES as the Core of Digital Transformation (ISA-95, MESA-11 model): resource allocation, detailed operations planning, dispatching, execution, and real-time data collection.

• IoT and Predictive Analytics: predictive maintenance (-50% downtime, -40% maintenance costs), real-time monitoring, automation with robotics (+25% productivity).

• AI in Manufacturing: cycle time reduction (-20%), adaptive planning (genetic algorithms, simulated annealing), real-time quality analytics (SPC).

Case Study: Food Industry Transformation

• Challenge: 15% downtime, rising costs.

• Solution: MES with advanced scheduling, real-time analytics, predictive maintenance, and SPC-based quality management.

• Results: -35% downtime, +28% OEE, -18% production costs, +98.5% on-time delivery, ROI in 14 months.

ROI and Economic Benefits

• Cost reduction: 12–18% in materials, 20–30% in quality costs.

• Productivity: 15–25% line efficiency improvement.

• Time-to-market: -25%.

• Strategic gains: agility, compliance, competitiveness.

Trends and Outlook

• Digital Twins: 70% adoption by 2030.

• 5G in Smart Factories: +40% IoT efficiency.

• Edge Computing: lower latency, higher autonomy.

• Sustainable Manufacturing: -20% operating costs, circular economy adoption.

Strategic Recommendations

• Digital readiness assessment, process mapping, technology selection, pilot implementation, scaling.

• Success factors: management engagement, skills investment (+50% demand for technical skills), system integration, and change management.

Conclusion
Optimizing batch management in Industry 5.0 requires a holistic approach combining advanced technologies with business processes. Companies that proactively invest in digital transformation gain competitive advantages through:

• +20–30% operational efficiency,

• 25–40% defect reduction,

• higher business agility,

• sustainable growth.

Discover more about Omnimes by Multiprojekt – a system designed to harness Industry 5.0 and Sparkplug B for smart manufacturing