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Schneider Electric adopts Smart Factory Program to PH Plant

Schneider Electric, a digital transformation of energy management and automation company, transformed its plant in the province of Cavite, south of Manila, into a Smart Factory with the aim of improving production efficiency and profitability.

The plant’s four sites in the province now have its respective VR-equipped (virtual reality) rooms where employees will undergo training and mentoring as new technologies arrive. The company hopes that this would motivate its people to collaborate using the technology-enabled training stations.

Schneider Electric Philippines currently produces different varieties of uninterruptible power systems (UPS) units for home and industrial use. The Cavite Plant joins Schneider Electric’s other Smart Factory showcase sites around the world such as China, France, India, and Indonesia.


“Our transition to a Smart Factory is another step for Schneider Electric toward transforming cities, reshaping industries, and enriching lives,” said Alexandre Vermot, country president, Schneider Electric Philippines. “Our Cavite Plant has now become an Innovation Hub where existing and potential customers, partners, the government and the academe can experience operational excellence as we harness the power of technology using our EcoStruxure TM architecture. We hope that our adoption will serve as a testament of what embracing digital transformation really means and how it can positively impact business operations and the environment. As we move forward with our Smart Factory progress, we will continue providing Innovation at Every Level to ensure overall efficiency, reliability, and safety.”

Through the Smart Factory Program, Schneider Electric leveraged its own EcoStruxure TM architecture as it implemented the Industrial Internet of Things (IIoT) across its global supply chain, and digitally transforming facilities to thrive in today’s digital economy.

In 2017, Schneider Electric started transforming its Cavite Plant into a Smart Factory. By integrating EcoStruxure TM for Industry, local processes are continuously optimized while energy and production costs are minimized. This innovation also improves the lifespan, usage, and maintenance of the different equipment used across its sites, allowing Schneider Electric to deliver end-to-end operational efficiency with more dynamic control for better business results.

Production growth

This adoption will bring 14 percent in production growth and 13 percent in energy savings in its Philippine operations. The company said that electricity demand will grow by 200 percent in 2040. Energy has become an increasing part of the total costs of running a factory and reducing its environmental footprint is also a growing concern.

Having these digital solutions, Schneider Electric hopes to address challenges by streamlining processes, identifying faults and risks, and ensuring business continuity. The company also believes that upskilling the workforce to do higher value jobs and digital transformation is the key to helping them change their mindsets and learn how to operate new technologies.

With the transformation of the Cavite Plant into a Smart Factory, Schneider Electric provided more than 2,200 employees in Cavite with training, upskilling and reskilling opportunities to help them take on higher-value jobs. This enabled them to become empowered operators capable of making effective decisions on the factory floor pertaining to product assembly errors, electrical and temperature irregularities, production delays, and even equipment malfunctions.

Story by Marlet D. Salazar