Many commentators have previously hailed the relentless adoption of automation, machine learning and artificial intelligence as the answer to keeping UK manufacturing competitive, but with little obvious consideration of the elephant in the room – regulatory compliance. If only embracing the latest industrial revolution was that simple.
Non-compliance can have severe implications. It can result in legal penalties, operational disruptions, and reputational damage. The financial penalties can be substantial, impacting profitability. Non-compliant automation systems can also cause downtime, production delays, and consequential revenue loss.
What is the UK regulatory framework for manufacturing automation?
The Health & Safety Executive (HSE)
The HSE provides comprehensive guidelines and regulations. These are intended to protect the health and safety of workers in industrial settings. Among other aspects, these guidelines cover risk assessment, system integrity and compliance requirements. They ensure that automation systems meet exacting standards for safety.
ISO standards
ISO standards applicable in the UK include the widely-known ISO 9001, which applies to quality management systems. ISO 45001 is concerned with occupational health and safety. These provide internationally recognised frameworks for organisations to follow. Compliance with these standards demonstrates a business’s commitment to quality and safety. It facilitates access to global markets.
UK-specific regulations
Following Brexit, UK-specific regulations governing automation have changed. As a result, businesses have to keep up with evolving regulatory requirements. Compliance officers must monitor adherence to regulatory mandates, while senior management ensures that internal standards fully align with them. Managing compliance with these ever-changing challenges requires a proactive approach and demands a commitment to continuous improvement.
The impact of Brexit on regulatory compliance in automated environments
Leaving the European Union has meant significant changes in regulatory compliance for UK businesses, especially in manufacturing automation. Since 31 January 2020, businesses have had to adapt to a new regulatory landscape with standards and considerations which differ from what had applied before.
UK businesses with automated systems have been forced to review compliance needs and adjust to new regulatory frameworks. While some regulations may remain aligned with EU standards, others may diverge. The outcome has been a need to develop and maintain a detailed understanding of compliance requirements and their impacts on automation systems, not just initially but as they are developing and changing.
A major impact of Brexit has been on HSE guidelines and ISO standards. Businesses need to stay informed about any changes or updates to regulations. They must make sure that their automation solutions meet the latest standards at all times.
In addition, Brexit has implications for compliance officers and senior management, who play a significant role in overseeing adherence to regulatory requirements and internal standards. Many UK businesses are struggling to manage compliance challenges post-Brexit, especially smaller companies with more limited financial and management resources. Ironically, one solution is to use automation to address automation compliance issues. Deploying AI and machine learning for regulatory compliance management is becoming ever more important.
What are the regulatory compliance challenges for UK manufacturers?
Monitoring and adaptation
There is a constant need for businesses to monitor their compliance and react to changes in regulatory requirements. Changes in HSE guidelines or ISO standards may prompt businesses to update their automation systems and processes. This can lead to increased operational complexity and potential disruptions.
Divergence from EU standards
As the UK moves away from the initial impact point of Brexit, businesses are having to deal with ever-increasing differences in regulatory frameworks between UK and EU standards. This ongoing transition period is a time for great care. Proactivity needs to be the approach to ensuring ongoing compliance with regulatory requirements. Playing catch-up is a dangerous and potentially expensive game.
Internal standards
Compliance officers and senior management are key stakeholders in avoiding compliance risks and upholding system integrity. They should supervise adherence to internal standards and regulatory mandates. They need to conduct regular risk assessments and put compliance measures in place as appropriate.
Reputational risk
In addition to financial and operational consequences, non-compliance can also have wider commercial implications for a company’s reputation. It can damage customer trust, affect credibility in its market, and deter investors and other stakeholders. In the worst-case scenario, the issues can become the subject of negative public opinion. Countering this aspect can be an insurmountable problem.
Using automation to enhance compliance
Efficiency
Automated systems can streamline compliance processes by reducing manual effort and increasing productivity. Areas such as data collection, analysis and reporting allow companies to allocate their resources more efficiently, leaving the capacity to devise, plan and implement strategic initiatives.
Accuracy
Automation minimises the risk of human error by following pre-defined rules and procedures. This delivers both consistency and reliability of compliance processes. It should reduce the incidence of compliance issues and either eliminate or mitigate penalties for non-compliance.
Proactive risk management
Automation provides real-time insights into compliance status and potential risks, facilitating proactive risk management rather than being behind the non-compliance curve. Automated systems can deploy AI and machine learning algorithms to analyse huge data volumes, allowing them to identify patterns, trends, and anomalies that are warning signs of compliance risks. Acting on compliance issues before they escalate lowers the risk of incurring financial penalties and experiencing reputational damage.
How do emerging technologies impact regulatory compliance?
In the ultimate irony, the use of AI, machine learning, and the Internet of Things (IoT) is hugely improving UK manufacturers’ regulatory compliance with automation. It enables predictive analytics and risk assessment, creating more effective compliance strategies which are proactive rather than reactive.
IoT is key in compliance management because it can undertake real-time monitoring and data collection. IoT-enabled sensors and devices can gather valuable compliance-related data from manufacturing automation systems. This enables businesses to track metrics, detect anomalies, and ensure real-time compliance with regulations.
If you are seeking professional advice for your business, Opus is here to help. You can speak to one of our Partners who can discuss options with you. We have offices nationwide and by contacting us on 020 3326 6454, you will be able to get immediate assistance from our Partner-led team.