In the past few years, companies have weathered a seemingly constant array of challenges. Organisations have faced everything from a global pandemic to component shortages, geopolitical turmoil and an ongoing battle to attract talent.
To effectively respond to disruption, decision-makers need to learn to manage the various company dials in their control.
In addressing this, decision-makers first need to fully understand how their their companies work. Then, they can focus on how to manipulate different dials in the supply chain and manufacturing ecosystems. Once they do this, they can optimise their product lifecycle and respond effectively to disruptions.
These dials — and the degree to which they are turned up and down — will vary from company to company. However, organisations must take decisive steps to adopt advanced technologies, streamline processes, and secure a dependable, well-trained workforce.
Embracing Industry 4.0 technologies and solutions
In 2022, MIT Machine Intelligence for Manufacturing and Operations (MIMO) and McKinsey partnered to survey 100 high-performing companies across sectors. Their goal was to learn how they deploy machine intelligence (MI) and data analytics for manufacturing and operations.
The study found that ‘overall, those who extracted the biggest gains from digital technologies had strong governance, deployment, partnerships, MI-trained employees, and data availability. They also spent up to 60% more on machine learning than their competitors.’
Deploying advanced manufacturing technologies enables resiliency and competitiveness in an increasingly digital world. However, to gain the greatest advantage from these Industry 4.0 improvements, companies must fully commit to the process. This involves investing in areas like ongoing workforce training and development.
Companies must weigh the initial cost of implementing advanced manufacturing technologies with the potential benefits. These can include optimised production lines, less waste, and higher visibility into the product lifecycle. Therefore, the best forward strategy looks different for each company. Manufacturers of complex, higher cost, and longer lifecycle products — such as automotive and medical devices — may choose to invest in highly specialised automation solutions to optimise their product lines.
In contrast, a manufacturer who produces a high mix of consumer lifestyle products may find that it is more cost-effective to implement ‘vanilla automation’. This refers to automation processes that can be used in many different projects to carry out common steps. These steps include simple tasks like fastening screws, applying labels, and packaging products.
Streamlining and optimising processes
Fully realising the promise of Industry 4.0 goes beyond the acquisition of advanced technologies. Organisations need a firm grasp on process management, incluing the application of Six Sigma and lean manufacturing principles during implementation. Without them, companies may still be left with idle machines, underutilised software platforms, or poor-quality products.
For example, a manufacturer may automate a manual inspection process while not clearly defining pass/fail criteria. This can lead to too many rejects and a higher cost per unit. Either that, or low-quality products that damage the brand reputation.
Digital technologies predicting and responding to supply chain disruptions
When deployed intelligently, Industry 4.0 technologies can also provide unprecedented insight into the entire product lifecycle. Digital technologies — including AI, analytics, blockchain, and IOT — can be used to design and operate the kind of revamped ‘Just in Time’ network we’ve described. Analytics, for example, can help members of the supply chain identify common parts across product lines and design optimal buffers. Digital twins — digital models of the supply chain — can alert downstream plants about any upstream disruptions faster so they can avail themselves of the buffers more quickly.
Investing in the right technologies and solutions can provide manufacturers with better insights for planning and data-driven action in both their production lines and supply chains. In fact, the factories of the future and the manufacturing sector as a whole have potential to utilise data architecture to connect every part of the product lifecycle — from planning to production to warehousing to delivery and aftermarket.
This will empower those on the ground to make real-time decisions that help to absorb setbacks while identifying growth opportunities and ways to be more competitive.
Hiring, retention, and securing capacity in manufacturing
In the global search for talent, the manufacturing industry’s long-term success depends on its talent pool.
This means ensuring that the industry continues to hire and retain purpose-driven innovators, problem-solvers, and makers who can help mould the next era of manufacturing. In day-to-day production, securing capacity must also be considered so that staff can increase to full production after a disruption. For example, in the face of component shortages, manufacturers sometimes make the mistake of reducing workforce because they currently have fewer or less optimised factory lines running.
Often, the smarter option is to retain workers until full production returns. People are important in the manufacturing process, especially today when many countries are faced with staffing challenges. Workers can be deployed to support different factory lines or support other areas of the production ecosystem temporarily when needed.
This allows manufacturers to be more agile while remaining in control when components are restocked or demand increases. Keeping workers employed even during downtime can work as a strategic resiliency play, one that considers the high cost and time commitment of rehiring and training new employees.
Resiliency looks different for everyone
Ultimately, the building blocks of resiliency will look slightly different for every company. Nevertheless, the’s a common thread. Fudamentally, you need to understand the data and variables behind your own business operations while embracing innovation and change.
- Risk & Resilience
