Capital Allocation, part 2
We stuck our toes in the water last month bringing up "Industry 3.0" with a hint that "Industry 4.0' is arriving rapidly. In just a month, it seems, there are indications that Industry 4.0 is going to be one of those technological phenomenon which arrives even faster than the generation before.
New sensors seem to be going wireless with abandon. This reduces the direct physical installation costs but seems to be increasing the IT programming component significantly. As for schedule, if you have had any experience with IT, you know predicting the schedule can be challenging.
I deliberately stated "the direct physical installation costs" above. The new wireless components, especially in an older mill, may require significant shielding of existing electrical devices, both instrument and power sides, in order to protect the new items from interferences. The smart project engineer will do a guassian survey before they submit their capital budget in order to ascertain what problems may already exist which will need mitigation.
It is a new world and it is coming on fast. The prudent capital projects engineer will do their homework and be up to speed on all the rapidly arriving ramifications of Industry 4.0. The time to start your new education is now.