Ministry of SMEs and Startups Supports Smartization Costs
Utilizing AI, IoT, Big Data, etc.
Improving Manual Processes to Enhance Productivity
[Asia Economy Reporter Kim Daeseop] Company A manufactures kongguk (soybean milk) used in soy milk and kongguksu (soybean noodle soup). As a small-scale business with fewer than 10 employees, it produces products through manual processes such as washing soybeans, soaking soybeans, grinding, and packaging. Without an automated system, the factory environment relies on manual manufacturing processes, leading to decreased productivity and difficulties in systematic production management. However, this year, by applying for and being selected in the government's pilot project 'Small Manufacturer-type Smart Factory (Smart Workshop),' the company can receive financial support necessary to introduce smart technology into its existing manual processes. This will enable automatic production according to customer orders, increasing production volume, reducing product costs, and improving quality competitiveness.
The Ministry of SMEs and Startups announced on the 3rd that it will conduct a pilot project called 'Smart Workshop' targeting small manufacturers operating manufacturing businesses with fewer than 10 employees. The project supports the introduction of smart systems such as the Internet of Things (IoT), big data, and artificial intelligence (AI) to improve production processes at small-scale manufacturing sites that operate equipment manually.
This project was prepared as a follow-up measure to the Smart Korea plan announced by the Ministry of SMEs and Startups in the government work report last February. The name of the process improvement item in the Ministry’s existing 'Product and Technology Value Enhancement Support Project' was changed to Smart Workshop.
The main budget for this year's Smart Workshop pilot project is 3.9 billion KRW. Additionally, a third supplementary budget of 3 billion KRW has been allocated. A total of 6.9 billion KRW will be invested this year to support smartification at 80 small manufacturer sites.
Before the full-scale implementation of the Smart Workshop pilot project, the Ministry of SMEs and Startups, together with the Small Enterprise and Market Service, has selected 20 small manufacturers from various industries such as metal processing, food, textiles, and printing.
Company B, a manufacturer of air cushioning packaging material 'Aircell,' was also selected by applying for this Smart Workshop project. Currently, raw material inventory is managed manually, making it difficult to monitor usage in real time and impossible to manage production based on data and real-time production information, which hampers production efficiency improvement.
This company plans to build a production management system by introducing a barcode system and managing fabric usage, as well as using tablet PCs for real-time dashboards, supported by Smart Workshop funding. This will shorten production preparation time after order receipt and is expected to increase sales through improved productivity.
After pre-consultation by smart factory experts and document and on-site evaluations, the selected small manufacturers will receive support for smart technology introduction costs up to 50 million KRW per company over six months. The Ministry plans to expand Smart Workshop to about 140 companies next year.
Noh Gisu, Director of Regional Commercial Districts at the Ministry of SMEs and Startups, stated, "From this year, the Ministry will actively promote digitalization and onlineization of small business owners in preparation for the post-COVID-19 era. Through the Small Manufacturer Smart Workshop pilot project, we will establish a customized smart support plan for small manufacturers and fully support the introduction of smart technology in small manufacturing companies starting next year." Reporter Kim Daeseop joas11@
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