Smart manufacturing strategies are still nascent. To capture the benefits, manufacturing operations leaders can start with key actions.
FREMONT, CA: Few organisations have yet turned smart manufacturing's potential into sustained action. It's past time, especially with the pandemic catalyzing accelerating and reprioritizing smart manufacturing initiatives. Smart manufacturing integrates technology, data, processes, and human interactions to disrupt and transform the role of production in a digital business, laying the groundwork for dependable output from smart factories. What is required is a rigorous end-to-end approach, from knowledge gathering and strategy development to piloting and testing, and finally to a fully deployed strategy. And success necessitates an honest assessment of both the advantages and disadvantages.
1. Execution of smart manufacturing lags: According to the Gartner Smart Manufacturing Strategy and Implementation Trends Survey, less than half of manufacturing leaders are implementing or have a fully deployed smart manufacturing strategy, although many tout its importance. Smart manufacturing is an important part of their digital supply chain strategy, according to 86 per cent of respondents. 84 per cent believe smart manufacturing will boost their competitiveness. To develop successful smart manufacturing strategies, corporate leaders must first understand the potential benefits as well as the challenges. Otherwise, they risk celebrating tactical victories at locations that may result in costs and constraints that limit competitive advantage elsewhere.
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2. Smart manufacturing enables reliable output from smart factories: Manufacturing executives see smart manufacturing as providing a variety of actual or anticipated benefits, such as agility, flexibility, and optimization. The common denominator is operational excellence, which ensures consistent supply from intelligent factories. Cost and quality improvements are simple ways to measure operational excellence at specific sites. Indeed, use cases that combine workflow, data management, and enabling technologies for real-time equipment or process monitoring to provide a high ROI. However, such tactical gains at the site should be coordinated with initiatives to align new capabilities that make factories smarter with delivering end-to-end supply chain advantage. Too much site-centricity can inadvertently create excess constraints and complexity elsewhere, undermining long-term business performance improvement. Extending the benefits of smart manufacturing beyond the factory walls allows the supply chain to focus on its primary mission: effective demand fulfilment. This emphasises the significance of understanding which smart manufacturing benefits are desirable and realistically achievable at each stage of the strategy. It also forces organisations to identify and address their challenges.
3. Change management is holding back smart manufacturing: Technology or solution immaturity is a lot less of a problem than many people think. The most common barriers to implementing smart manufacturing initiatives are organisational complexity, integration, and process reengineering. These issues represent the most significant change management challenges. Notably, leadership commitment is not regarded as a problem: according to 83 per cent of manufacturing leaders, their organization's leadership understands and accepts the need to invest in smart manufacturing.
People's jobs should be improved and enhanced by smart manufacturing. Organizational changes will bring together stakeholders from information technology (IT), operational technology (OT), engineering technology (ET), and supply chain. This convergence and alignment represent a paradigm shift that prioritises culture, decision making, and governance over technology in many cases. The goal of synchronising initiatives is to improve the core operations of today's processes while also preparing for future innovation and process capabilities. This aids in the management of change and the avoidance of resource constraints.
Improving operational excellence is the burning platform for smart manufacturing, not the destination/endpoint. Focusing on speed will improve order cycle times and service levels while identifying digitalization and automation opportunities.
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