Look for ways to streamline processes and production lines

In the future, factories should place great emphasis on process skills and a culture of continuous improvement. Mastering Industry 4.0 technology is only the first step. Manufacturers should apply Six Sigma management methods and lean manufacturing principles in line with execution strategies to achieve efficient operations. Flextronics plants apply these principles to foster a culture of continuous improvement. In 2022, Flextronics’ factories in Tecev, Poland and Tanjong Pelaipas, Malaysia were awarded the Lean Innovation Manufacturing Excellence Award by the Manufacturing Excellence Association.

If a manufacturer neglects process techniques and improvement practices, it can end up paying a high price. When technology is deployed hastily or carelessly, a manufacturer’s machine and software platform may not be fully utilized and the quality of the product may not be guaranteed. If a manufacturer automates the manual inspection process without clear compliance criteria, it is likely that the manufacturer will end up with too many nonconforming products and higher unit costs, or with low-quality products that damage brand reputation and customer loyalty.

Value of talents

Industry 4.0 technology will help transform the factory of the future, but the talent that makes manufacturing great is also a factor to be reckoned with. Talent’s innovation, creativity and problem solving ability may determine whether the manufacturing industry can develop and be resilient in the long term, while leading manufacturers into the next manufacturing era.

This means we need to build an inclusive, collaborative and purposeful culture. We also need to provide development opportunities for our employees so that they can continue to learn, grow and manage advanced technologies. This is a key area for manufacturers to remain resilient and competitive in the future. Research by McKinsey & Company shows that about 45 percent of companies are expected to have a technology gap in the next five years. Without investment in skills development and training, manufacturers risk becoming laggards.

Flextronics, for example, is implementing the Capability Acceleration Program, which provides Industry 4.0 related training to employees around the world. Courses cover topics such as automation, future stage modeling and simulation, and extended reality. Since 2007, more than 18,000 Flextronics employees have been trained through the program.

In daily production, manufacturers must also ensure capacity so that they can reach full capacity after an outage. Faced with a component shortage, for example, manufacturers sometimes make the wrong decision to lay off workers because they are currently running fewer or less efficient production lines. It is often wiser to pay workers to stay when they are producing at full capacity. Talent is very important in the manufacturing process, especially today, when many countries are faced with the challenge of personnel shortage. At the same time, these workers can also be transferred to support different factory production lines, or temporarily support other areas of the production ecosystem.

This allows manufacturers to adjust and remain flexible when parts supply is normal or demand increases. In this case, keeping workers employed even during downtime is a strategic flexibility strategy, as it takes into account the high cost and time commitment of rehiring and training new employees.

Elasticity is still the primary consideration

There are many uncertainties ahead, but manufacturers can prepare by investing in the right technology, processes and people to achieve true corporate resilience. Manufacturers all need to chart their own path and determine the strategies and solutions that best meet their needs. By adopting a forward-looking, people-centred approach, companies will be better able to respond to the changing environment and embrace all the innovation and opportunities that a new era of manufacturing brings.