Oxagon: The Five Key Manufacturing Principles of the Future

Launched in 2017 by Crown Prince Mohammad Bin Salman, NEOM is a futuristic area being built in Tabuk Province in Saudi Arabia that seeks to reimagine urban spaces, creating a new model for sustainable living.

 As one of the regions that define Saudi Arabia’s NEOM project – an initiative under the Kingdom’s Public Investment Fund (PIF) to advance the Kingdom’s goals of Vision 2030 – Oxagon, the reimagined industrial city within NEOM is setting a new standard for advanced and clean industry.

 Established in 2021, this industrial greenfield development along the Red Sea in northwest Saudi Arabia reimagines the future of manufacturing by seamlessly integrating Industry 4.0 technologies and circular economy principles from the ground up.

 At the helm of Oxagon is CEO Vishal Wanchoo, who has a vision for both the city and for the future of manufacturing.

An introduction to Vishal Wanchoo, Chief Executive Officer of Oxagon and NEOM’s Head of Manufacturing

As Chief Executive Officer of Oxagon and NEOM’s Head of Manufacturing, Vishal Wanchoo and his team are building a reimagined industrial city where technology, sustainability and livability will converge to change industry for the better.  

In his role as Oxagon’s CEO, Vishal is at the helm of an extensive delivery program spanning multiple business units including industrial manufacturing, innovation, port development and operations.

Additionally, Vishal is overseeing the construction and infrastructure delivery of the greenfield development to enable manufacturers in Oxagon to commence production from 2026 onwards.  

Over the course of a career spanning more than four decades, Vishal has delivered a range of hugely successful growth and transformation projects in the energy, healthcare and aviation sectors.  

Prior to joining NEOM, he spent over 20 years at General Electric (GE) where he held the position of President and CEO of GE South Asia, responsible for 17,000 employees and 20 manufacturing plants and research and development centers.

Vishal has also served as President and CEO of GE Healthcare IT in the United States, where he expanded the company’s global presence, nearly tripling business volumes from $US500m to US$145bn

A seasoned board member, he has served as Chairman of the Board of two listed publicly listed companies in India in the power generation and power transmission and distribution business from 2018 to 2020.  

Vishal holds a Master of Science in Computer Engineering from the University of Southern California, as well as a Bachelor of Technology in Electrical Engineering from the Indian Institute of Technology. 

With the continuing evolution of manufacturing, defining standards, expectations and principles for the future is essential. 

With his extensive experience in the manufacturing industry, Vishal has a unique perspective on the future of manufacturing.

Below he outlines the five key strategic design principles which he believes will guide it.

How have you seen manufacturing evolve?

Manufacturing has evolved significantly over the decades, driven by advancements in technology.

From the steam-powered innovations of the First Industrial Revolution to the cyber-physical systems and advanced technologies defining the Fourth Industrial Revolution, each era has challenged conventional practices in ways once thought unimaginable.

Today, we face a similar imperative for change. 

As automation and data-driven technologies reshape our world, manufacturers must embrace a revolutionary approach to realize the future that we need for manufacturing – for business continuity, performance and environmental sustainability.

Oxagon, the reimagined industrial city of NEOM, recently published a whitepaper in collaboration with Bain & Company, titled The Future of Manufacturing, which outlines this new direction.

It emphasizes a systemic approach that combines lean manufacturing, digitalisation and circularity. 

By integrating connectivity, circular workflows, lean thinking and Industry 4.0 into one system, we can create advanced and clean manufacturing processes that align goals around products, the planet and profit. 

What is the best approach for manufacturers to meet the challenges of today? 

Recent events like the COVID-19 pandemic, geopolitical conflicts and economic uncertainties have exposed the limitations of our current “lean” manufacturing approach. 

Originally developed to standardise production and optimise efficiency, lean manufacturing worked well in the past. 

However, today’s environment — marked by changing customer demands, volatile supply chains and rapidly evolving technology — demands greater flexibility, transparency and synchronisation in manufacturing processes. 

To overcome these limitations and achieve optimal efficiency, manufacturers must embrace Industry 4.0 technologies, such as cloud, machine learning, IoT, blockchain and robotics and integrate them holistically into their production systems.

Furthermore, the substantial environmental footprint of the manufacturing sector, coupled with rising demands from consumers and regulators for environmental responsibility, calls for the adoption of circular economy practices - focusing on reusing, recycling and remanufacturing materials. 

When implemented at scale, circular economies not only enhance environmental sustainability but also generate economic value.

What are the five design principles you believe will guide the future of manufacturing?

To realise advanced and clean manufacturing, companies must radically apply Industry 4.0 tools, which they have only minimally explored or practiced in silos.

This necessitates adopting a new, organisation-wide approach – one already being implemented by Oxagon – guided by five key operating principles:

1. Self-Learning organisation

At the heart of everything we do are, our people, and enabling them to be proactive and drive continuous improvement across the entire system which is crucial for staying competitive. By leveraging real-time performance data, both machines and employees engage in self-learning that boosts productivity and quality. Our Manufacturing Talent Academy reinforces this with workforce development initiatives like upskilling, guided learning, and certifications, fostering growth and adaptability to changing needs.

2. Resilient processes

Standardising the entire operation is key to increasing adaptability and building stability. By implementing resilient processes, companies can respond effectively to supply chain fluctuations and changing customer demands. Across Oxagon, for example, we implement standardized work, quality, maintenance and safety processes and protocols to ensure a robust and consistent manufacturing environment, reducing variability and enhancing overall reliability.

3. Connected and transparent flows

A fully connected manufacturing ecosystem is essential for modern production. This means integrating material and information flows within the four walls of a factory and across the supply chain. For instance, Port of NEOM, in Oxagon, is deploying advanced automation in logistics, offering scalable and smart warehouse solutions that enhance material flow and line operations for manufacturers. This connectivity and transparency enable more informed decision-making and quicker adaptation to market demands.

4. End-to-end synchronisation

Orchestration, planning and adaptation of the manufacturing value chain all rely on data-driven end-to-end synchronisation. The ability to optimise, plan and steer in response to change as well as continuously improve across the entire value chain are vital. This synchronisation must be in tune with customer demands, supply chain partners and societal needs. An end-to-end approach ensures that every part of the manufacturing process works harmoniously, from raw materials to finished products. By collaborating with key technology vendors, for example, Oxagon aims to create a technology backbone that supports seamless end-to-end integration and synchronisation across our ecosystem.

5. Circularity

Redesigning business models and manufacturing around circular principles is essential for reducing waste, extending product life cycles and creating value through recycling and reuse. Industrial symbiosis allows manufacturers to capture value from materials otherwise considered waste. Our materials exchange platform within our manufacturing ecosystem, as well as NEOM’s own recycling facilities, play a key role in promoting circularity across the region. Meanwhile, NEOM's ENOWA is developing NEOM’s sustainable energy and water systems powered by 100% green energy and an energy-flexible grid, crucial for powering sustainable industries.

How does Oxagon model these design principles?

Oxagon is a prime example of how these five design principles can be put into practice to shape the future of manufacturing.

As a greenfield development site, Oxagon offers a competitive advantage through a build-to-suit approach, providing tenants with a unique infrastructure that supports Industry 4.0 tools and circular economy practices. This ensures flexibility and adaptability for optimal business outcomes.

These business outcomes – sustainability, productivity, agility, time to market and customisation – will be realised through the global reference industrial operation system we are developing in collaboration with the World Economic Forum.

Alongside our whitepaper, this framework urges manufacturers to address challenges holistically, paving the way for new business opportunities, including rapid product introduction, new circular business models and flexible, on-demand supply.

As we stand at the threshold of a new industrial era, we must learn from past transformations and adapt to future innovations.

Just as the introduction of steam power reshaped manufacturing during the Industrial Revolution, the integration of advanced technologies today offers a similar opportunity to drive profound change in the industry.

When applied system-wide, our five design principles can revolutionise manufacturing, making it more resilient to environmental changes and better prepared for the future.

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