Manufacturing is a complex business that operates in a world that is only going to get more complex. In today’s fast-paced global business environment, it can be tempting to rely on traditional operating models that have worked in the past. However, many of the environmental distractions and challenges of the past few years have made it clear that companies can’t just “go back to the old ways.” Manufacturing ecosystems must be able to adapt to environmental changes to survive and thrive. If companies want to be part of the next manufacturing era, they need to prioritize business continuity and resilience.

Hooi Tan, Flextronics’ president of Global operations and Supply chain, said: “While it is impossible to predict everything in the future, we can mitigate risk by building a robust Arsenal of tools that allow us to respond, adjust and recover quickly and effectively when faced with new challenges. Companies should start prioritising resilience to better withstand risks and remain competitive by adopting advanced technology, optimizing processes and workflows, and focusing on the development of their employee base.”

PM866K01 3BSE050198R1

PM866K01 3BSE050198R1

PM866K01 3BSE050198R1

Retrofit the factory with advanced technology

In an increasingly digital world, manufacturers must be proactive in promoting Industry 4.0 technologies and solutions such as automation, simulation technology and Machine Intelligence (MI). A recent survey of 100 high-performing companies by MIT’s Manufacturing and Operations Machine Intelligence (MIT MIMO) Program and McKinsey & Company found that the companies that benefit the most from digital technologies typically have strong governance and deployment capabilities, partnerships, a workforce trained in MI, and a wealth of data available. These companies spend 60% more on machine learning than their competitors, and that can translate into optimized product lines, less waste, and better product lifecycle visibility. In order to get the most out of these industry 4.0 deployments, companies will necessarily need to invest in technology and staff development training. While each business has a different path forward, each can use technology to increase productivity, competitiveness and resilience.

Industry 4.0 technologies can provide manufacturers with a competitive advantage and enable them to determine the most effective solutions based on their business. For example, manufacturers of products such as automobiles and medical equipment that are complex to produce, high cost, and long life cycle may choose to invest in highly specialized automation solutions to optimize their production lines; Manufacturers with a high proportion of consumer products may benefit from “common automation” or automated processes for performing common steps such as fastening screws, applying labels, and packaging products.

In addition, manufacturers can gain the advantage of better insight into line and supply chain planning by investing in IT infrastructure that enables data collection and sharing throughout the product lifecycle. Every part of the product lifecycle, from planning and production to warehousing, delivery and aftermarket, is connected through a data architecture that allows factories to better respond to possible future disruptive events, with the flexibility and confidence to act to recover from setbacks. The initiative will also help companies identify growth opportunities and new ways to become more competitive and “sticky” to consumers.

A recent Harvard Business Review article supports this view: “Analytics can help members of a supply chain identify common components across product lines and design optimal buffers. Digital twining, which is a digital model of the supply chain, can alert downstream plants to upstream outages faster, allowing them to take advantage of buffer zones faster.”