LG Accelerates Smart Factory Solution Business by Integrating 66 Years of Manufacturing Expertise with AI

The company will use the expertise of Lighthouse Factory to develop future-oriented business models

Seoul, South Korea, July 18, 2024 LG Electronics (LG) is advancing its smart factory solutions business by integrating its 66 years of manufacturing and production expertise with artificial intelligence (AI) and digital transformation (DX).

The ultimate combination of AI and manufacturing capabilities

LG officially entered the smart factory solutions market earlier this year. The Production Engineering Research Institute (PRI), which has been strengthening the production and manufacturing competitiveness of the LG Group, is now extending its expertise to external clients. Services offered include production consulting, development of equipment and operation systems, and training of engineers.

Despite being in its first year, the business has already achieved significant milestones. PRI has approximately 200 billion won External client demand for smart factory solutions.

Its main customers include secondary battery manufacturers, auto parts manufacturers, and logistics companies. LG plans to aggressively advance into industries where factory demand is rapidly increasing, such as semiconductors, pharmaceuticals, biotechnology, and food and beverages. It aims to develop its smart factory solutions business into a multi-trillion won company by 2030, excluding the LG Group's internal profits.

According to market research firm Precedence Research, the global smart factory market is US$155.61 billion this year US$268.46 billion By 2030.

770TB of manufacturing data and over 1,000 patents

LG has accumulated vast amounts of manufacturing data and know-how through 66 years of factory design, construction, and operation. In the past decade alone, the company has accumulated 770 terabytes (TB) of manufacturing and production data, equivalent to storing approximately 197,000 high-definition movies (assuming 4GB per movie). The company's competitive edge also lies in various core production technologies that are essential for smart factory configuration, and PRI has applied for more than 1,000 patents related to smart factory solutions. LG aims to differentiate its smart factory solutions by leveraging world-class production technologies and integrating vast amounts of manufacturing data and expertise with AI and DX. These smart factory solutions include designing, monitoring, and operating production systems with digital twin technology, quality based on big data and generative AI, industrial safety, facility management, and the provision of various industrial robots.

Production efficiency is directly linked to business profits

Smart factory solutions focus on minimizing slight delays and errors between processes. Increasing efficiency is crucial as production efficiency is directly related to the overall profitability of the business. For example, in LG's refrigerator production line in Changwon, a refrigerator is produced every 13 seconds. A 10-minute delay in the production line results in a production shortfall of 50 refrigerators. The price of one refrigerator is 2 million wonA 10 minute delay 100 million won.

This impact is even more pronounced for products with fast production speeds.* That's why solutions that minimize delays throughout the entire process, from the seamless supply of multiple parts to assembly, packaging and inspection, are essential.

Comprehensive production solutions for the entire journey

LG views its smart factory business not as a single solution in a specific field, but as a comprehensive solution that covers the entire process for customers, from factory planning to design, construction and operation. Taking into account the customer's environment and industry characteristics, we diagnose existing factories, identify areas for improvement, and establish a step-by-step roadmap in terms of automation, information and intelligence to maximize the return on investment.

Digital Twin Solutions for the Entire Value Chain

Our production system design and operation solutions utilize real-time simulations that utilize digital twin technology. Before building a factory, we can create a virtual replica of the actual factory and check the production and logistics flow in advance, which improves the efficiency of factory design.

During the operations phase, real-time data is analyzed to detect bottlenecks, defects, and breakdowns on the production line in advance, contributing to improved productivity.

Autonomous mobile robots and collaborative robots

LG's range of industrial robot solutions for factory automation offers significant advantages: Autonomous Mobile Robots (AMRs) are equipped with cameras, radar and LiDAR sensors to sense their surroundings and deliver parts and materials, and their autonomous driving allows them to navigate efficiently while avoiding workers and obstacles.

Combining an articulated robot arm and an AMR, the Mobile Manipulator (MM) can seamlessly automate a variety of tasks. It can perform a variety of movements, including assembly, defect inspection, and transporting parts and materials. It can also replace a nearby AMR when its battery runs out.

Generative AI solutions that make anomaly diagnosis easier

Solutions that help manage yields and keep equipment running smoothly are also highly beneficial. Sensors installed throughout the factory pick up abnormal signals, such as vibrations and noise caused by aging equipment or lack of lubrication. Big data is used to identify the cause and recommend corrective actions.

Generative AI based on large-scale language models can be easily used with voice commands. For example, “There is an abnormal vibration in equipment A. 2 pm” logs abnormal signals on the server. Commands such as “show recent abnormal vibrations and corrective actions” provide a list of defect types and previous corrective actions in order of likelihood.

Additionally, LG has developed a real-time detection system powered by Vision AI that learns a factory's normal operating conditions and detects abnormalities such as temperature fluctuations and defects, and enhances factory safety management by identifying workers who are not properly wearing safety helmets or work vests.

Accelerating the development of future-oriented business models with Lighthouse Factory expertise

LG Intelligent Autonomous Factory in Changwon, South Koreaand Tennessee, USAhas been certified as a Lighthouse Factory by the World Economic Forum. After implementing smart factory solutions, Changwon Factory's productivity increased by 17%, energy efficiency improved by 30%, and quality costs due to defects were reduced by 70%. Within the LG Group, PRI's solutions are applied in more than 60 production sites in 40 regions around the world.

Leveraging its internally and externally proven smart factory expertise for business ventures makes a lot of sense in terms of commercializing intangible assets. By integrating software and solutions into a future-oriented structure, LG is driving the transformation of its business portfolio, which has traditionally been focused on hardware manufacturing. This approach is expected to contribute significantly to the rapid growth of the company's B2B sector, one of the three main growth drivers in LG's 2030 future vision, which targets a large number of external corporate customers in particular.

“We are the ideal partner to support our customers throughout the entire production process, providing optimal smart factory solutions at every stage, from planning and design to construction and operation.” Jeon Dae– Mr. Hwa, head of LG PRI.

* Production rates are measured in parts per million (PPM).

About LG Electronics Corporation

LG Electronics is a global leader in technology and consumer electronics, with a presence in nearly every country and more than 74,000 employees. Combined, LG's four businesses – Home Appliances & Air Solutions, Home Entertainment, Vehicle Component Solutions and Business Solutions – generate global revenues of more than $10 billion. 84 trillion won LG is a leading manufacturer of consumer and commercial products, including televisions, home appliances, air conditioning solutions, monitors and automotive parts and solutions, and is well known worldwide for its premium brands, LG SIGNATURE and the intelligent LG ThinQ. LG Newsroom the latest news.

SOURCE LG Electronics