Considering ERP in Manufacturing? Determine ROI

Bhagyashri Kambale | April 21, 2022 | 205 views
CONSIDERING ERP IN MANUFACTURING?
Manufacturing ERP (enterprise resource planning) benefits organizations in multiple ways, as it simplifies decision-making for top management by utilizing data from smart dashboards and consolidated data. The requirements of manufacturing companies are extremely precise. These include elements like planning and management. Manufacturing ERP systems are designed to meet these requirements.

In other words, manufacturing ERP is a specialized form of an ERP system designed to streamline and automate all manufacturing processes. It applies the same ERP principles to manufacturing organizations to increase efficiency.

Numerous businesses have implemented or are planning to implement ERP systems in their manufacturing organizations. They are, however, constantly on the lookout for the best return on investment when it comes to manufacturing ERP software. In this article, we'll look at how to calculate the return on investment for manufacturing ERP solutions to help you get a better grasp of the investment viewpoint for manufacturing ERP.


How to Determine Manufacturing ERP ROI?


Organize Data for ROI

ERP evaluation, selection, and implementation require collecting a large amount of business data. Putting all of this information together can be a daunting task. Therefore, individuals from each department should provide objective feedback to help mitigate bias and ensure consistency.


Focus on People and Processes Rather than Technology

You can increase your ROI by mitigating the technical aspects of an ERP system. Get an understanding of how it will improve your processes and how much money you will save over time due to those improvements. Your return on investment will depend on how well you effectively manage business process reengineering and organizational change.


Invest Time and Effort in Your ERP Deployment

It is critical to set realistic expectations and forecast the ROI benefits. Estimate the project's time, cost, and effort by consulting an expert, preferably not the ERP vendor, as their estimates may not be entirely accurate for their benefit.


Predicting ERP Cost

Costs associated with ERP, such as licenses and hardware, are easily quantifiable. Apart from these fees, additional expenses must be addressed and evaluated. They include subscription fees for SaaS, consulting, maintenance, and user fees.

Consider the following questions:
  • How you will implement your solution: Cloud or On-Premise?
  • How many users are required?
  • What equipment do you require to operate your business?
  • What implementation and training requirements do you have?

Calculating these expenditures may take considerable time. Mentioned below is the list of costs that can be estimated prior to investing:


Out-of-the-box System Price

Many business owners believe that this ERP cost is straightforward to determine because it is based on the vendor's quote. That, however, depends upon the modules and deployment options required in your business.

License Fees – on Premise Vs. SAAS
On-premise ERP software runs on your company's servers. This incurs a one-time license charge. On-premise deployments need organizations to maintain their servers to assure software functionality both in the present and future. It is therefore important to factor in these costs. Licenses are “repurchased” every five years, which is another cost to consider.

Cloud ERP SaaS is hosted remotely on a third-party server and is accessible online. You must pay a monthly subscription fee until you stop using the system. Updates to the ERP system are free.


Consultancy Costs and Vendor Implementation Fees

A consultant's price must be considered if you hire one. To minimize future troubles and costs, it is vital to identify the actions and timeframes they will accomplish.

ERP consultants provide implementation services such as data migration, project management, and system customization. Some consultants charge extra for these services, so be careful to ask how their pricing operates.


Maintenance Cost

Your servers and machines should meet the vendor's minimal requirements. You may need to update your equipment to support the ERP deployment, which will affect your ROI calculations.

Maintenance expenses should include IT labor, extra server expenditures, and other departmental charges. Also, the ERP vendor may charge an annual maintenance fee to upgrade to new technology.


User Cost

Training your employees on the new ERP system is critical to its efficiency. Training takes time and money. It will depend on how many employees need to be trained, how difficult the processes are to learn, and whether you need to engage extra trainers or managers to help speed up new production processes.

The budget should never be exceeded; otherwise, the ROI will suffer.


Final Word

A manufacturing ERP system is an integral part of any modern manufacturing organization. It helps your business in multiple ways to accelerate operations and business processes. Always conduct a thorough analysis of why you are looking out for ERP solutions and how they will help your businesses in becoming more productive than it is now.

The ROI for manufacturing ERP is calculated by comparing the anticipated cost of ERP to the expected benefits (direct and indirect cost savings) of installing the ERP system. ROI is computed by adding the predicted ERP returns and dividing by the ERP TCO (Total Cost of Ownership); the resulting quotient is the ERP ROI.


FAQ


What is ERP used for in production?

Manufacturing ERP is a centralized approach to managing production and payroll activities. ERP improves operational efficiency by providing unprecedented visibility, coordination, and management across a company's many activities.


What are the types of ERP?

There are three main types of ERP systems, each with varying deployment models. ERP systems can be cloud-based, on-premises, or hybrid.


How long does it take for an ERP investment to pay off?

A typical project can take between 12 and 24 months to complete, depending on the scope and complexity of the work.

Spotlight

Stratus Technologies

If "always-on" is a requirement, Stratus Technologies has a solution that fits. In today’s always-on world, applications run under increasingly demanding circumstances. With these escalating demands comes greater pressure to prevent even the smallest amount of application downtime. Companies are responding to this need for always-on solutions by searching for technologies that either conform to or enhance their current IT infrastructures.

OTHER ARTICLES

How Manufacturing Digitalization Benefits Businesses in 2022

Article | December 14, 2021

The manufacturing industry has evolved to new heights of innovation, productivity, and excellence with digital transformation. Manufacturing digitalization has made operational procedures more skilled, accurate, and time-savvy. “Many companies simply are not willing to change or think they are done once they make a change. But the truth is technology; consumer demands, the way we work, human needs and much more are constantly changing.” Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft With a CAGR of 19.48 percent between 2021 and 2026, the digital transformation in the manufacturing market is expected to reach USD 263.93 billion by 2026. Manufacturing plants adopt digital technology to improve, automate, and modernize processes as part of Industry 4.0. So, what are the key benefits of digitalization for manufacturers? This article will elaborate on the top five benefits of digital manufacturing transformation. How to Define Digital Manufacturing? Manufacturing digital transformation involves integrating digital technologies into processes and products to improve manufacturing efficiency and quality. Manufacturing's digital transformation aims to increase operational efficiency and reduce expenses. The digital transformation techniques ensure product quality. It also makes work more efficient, safe, and stress-free. What Is Included in Manufacturing Digitization (Industry 4.0)? Industry 4.0 is the digitalization of manufacturing. Cyber-physical systems, IoT, and cloud computing are current trends in manufacturing automation and data exchange. Connected devices, cloud computing power, and the modern emphasis of lean, efficient operations enable Industry 4.0 to construct advanced and innovative smart factories. Industry 4.0 includes design, sales, inventories, scheduling, quality, engineering, customer and field service. Five Benefits of Digital Transformation in Manufacturing Manufacturing organizations can benefit from digitalization in a variety of ways. It can help make the work more efficient, decentralized, and secure. It further creates new business opportunities and attracts new talent to the industry. Additionally, integrating products into a digital ecosystem increases their value and appeal. Let’s dig deeper into each of the five key benefits. Reduces Costs Technology is an invaluable companion in reducing the manufacturing company's expenses in the future. The incorporation of digital technology results in the transformation of procedures and the digitization of documents, resulting in overall process optimization. Therefore, a reduction in labor costs might be expected as a result of the elimination of unnecessary expenditures. Additionally, digitization enables businesses to assess and estimate expenses considerably more precisely, ensuring that budgets stay on track. Additionally, it eliminates andsubstitutes inefficient jobs within processes, significantly increasing their efficiency. This efficiency is translated into time savings, which results in a substantially more cost-effective manufacturing process. Decentralized Production Manufacturing digital transformation allows organizations to supervise manufacturing remotely, allowing production to continue uninterrupted. In rare cases like Covid-19, digitalized businesses have not had to cease or even slow down production. These systems can work without interruptions for much longer than any worker. Digitalization also boosts methodology flexibility and reactivity. For example, if a production plant has a problem, an automatic alert is generated, and the issue is resolved regardless of the day, time, or presence. Improved Operational Efficiency Smart product connectivity allows devices to connect and communicate with each other (M2M). This connectivity enables decentralized decision-making. Many duties no longer require an employee to be physically present. New manufacturing and production models minimize boring, risky activities while increasing accuracy, efficiency, and responsiveness. Transforming businesses through digital means making better decisions based on real-time data. Training, changes, and repairs are no longer issues due to reduced frequency and automation. New Business Opportunities New digital technologies enable the manufacture of previously unviable products and services, generating new revenue streams. Also, new services (innovation or reorientation) are launched considerably faster. Companies may utilize big data and AI to experiment, anticipate trends, and predict about new advancements. These technologies can help organizations become more eco-friendly and create products that are less detrimental to our environment. Attracts New Talent Professionals with fundamental talents in this complicated and disruptive environment are drawn to digitalizedorganizations that are up-to-date with trends and processes. Also, if the change is managed well, it will lead to higher profitability, increasing employee satisfaction. Human motivation, along with excellent digital technologies, will reflect in the company's production and profitability. Dusseldorf@Germany: The Deloitte Digital Factory The digital factory in Dusseldorf provides a flexible setting for innovative workshops and training, bringing together the old and new worlds of supply chain and industrial operations to provide a seamless experience. Specific use case examples, as well as the digital solutions sector, will motivate and encourage businesses to get on their digital transformation journeys, making use of the most up-to-date technologies in the process. Final Words Manufacturing digitalization has a lot to offer the industry, and many manufacturers are capitalizing on this new phase of the industrial revolution by incorporating cutting-edge technologies into manufacturing and business operations. As said previously, the benefits of digital transformation in the manufacturing business are increasing the importance of digitalization in the industry. Transform your traditional manufacturing operating processes with these new manufacturing trends and observe the results that other benefitting manufacturing businesses have achieved. FAQ Why is digitalization vital in manufacturing? Manufacturing process digitization improves overall business performance. But the results are seen across the factory. Digital transformation improves working conditions for employees and streamlines daily operations. How are digitization and digitalization different? Digitalization is a transformation of data and processes. Digitalization is the use of digital technologies to collect data, identify patterns, and make better business decisions. How digital technologies are applied in manufacturing? Digital manufacturing technologies enable the integration of systems and processes across all stages of production, from design to production and beyond.

Read More

Microfinancing in Uganda Works with Lean Manufacturing Precision

Article | November 23, 2021

Having recently returned from Uganda, had the pleasure of being introduced by Bernard Munyanziza of Nziza Hospitality to Gilbert Atuhire. He is the Managing Director at Value Addition Microfinance Ltd. which provides micro loans to producers and manufacturers. Atuhire is an attorney by training, however his ability to articulate the core values of Lean Six Sigma and continuous process improvement were abundantly clear. The Kampala, Uganda offices are located on Parliamentary Avenue and Dewinton Rise. This central location allows direct access to industrial projects.

Read More

Advanced Manufacturing: Be Competitive in 2022

Article | November 1, 2021

Manufacturing processes will undergo significant transformation in 2022 as a result of advanced manufacturing technology. The changing manufacturing industry is full of digitization to improve processes, products, productivity, and business revenue. Manufacturers must realize the advantages of advanced manufacturing and learn to enhance their production processes to increase their manufacturing plant's productivity. Once you understand the heart of your business and where to integrate technology, you're halfway to success. The manufacturing industry's top professionals have also recognized the technology shift and are supporting upskilling in the manufacturing business. Mr. Matt Mong has said in his interview with Media7, “Once you start to look at yourself in the right way and realize that projects are at the core of your business, it is easy to see how you should use technology to support your business.” – Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca Importance of Advanced Manufacturing Adopting innovative manufacturing technologies has several advantages that grow its acceptance and relevance among manufacturers across industries. The following are the most significant advantages of advanced manufacturing. Amplifying the product and process quality Improvement in productivity Encourages new ways to innovation Decreases production time Considering the factors above that contribute to the production process becoming more efficient, productive, and revenue-generating, advanced manufacturing will continue to dominate the manufacturing business in 2022. Top Five Technologies That Are Advancing Manufacturing in 2022 To better understand the current trends in manufacturing technology, let us comprehend the technologies that are advancing the manufacturing industry. Additionally, discover how these technologies help manufacturers to advance their manufacturing processes. Cloud Computing Cloud computing in manufacturing is used for marketing, product development, inventory management, and productivity management. It stores software and commercial data via internet connections. Cloud computing is becoming a prevalent technology because it enables manufacturers to improve communication and manage the entire production cycle effectively. According to MarketsandMarkets' study, the global cloud computing market will also increase to 832.1 billion dollars by 2025, growing at a 17.5 percent annual rate in the following years. Benefits of Cloud Computing Fewer technical issues when compared to traditional software use Cost savings because no in-house servers are required Cloud computing enables easy scalability for your developing firm Cloud computing provides centralized control and access from any device How did McDonald's use AWS cloud computing services to transform their customer service? Additive Manufacturing Additive manufacturing enables the fabrication of lighter, more sophisticated designs that would be impossible or prohibitively expensive to fabricate using conventional dies, molds, milling, and machining techniques. Rapid prototyping is another area where additive manufacturing thrives. As a result, it is gaining a grip in the manufacturing business. According to Statista's market research, the additive manufacturing industry is worth approximately 12.6 billion US dollars in 2020 and is predicted to increase at a compound annual growth rate of 17% until 2023. Benefits of Additive Manufacturing Reduces material waste Simplifies manufacturing processes Additive manufacturing enables on-demand production Increases supply chain flexibility The finished product can be made close to the end customer Robotics Robots are used in manufacturing to automate repetitive tasks, resulting in a more efficient assembly line. Humans and robots work together on a variety of things as well during the production of various products. Many jobs are hazardous or necessitate many supplies, which could be harmful to the human workers themselves. So, in such instances, robots play a significant role in executing manufacturing operations. Robotics' increasing application in production is transforming it into a necessary component of industrial processes in the future. According to Mordorintelligence's study, the robots industry was worth USD 27.73 billion in 2020 and is predicted to reach USD 74.1 billion by 2026, growing at a CAGR of 17.45 percent between 2021 and 2026. Benefits of Robotics Increased productivity when compared to traditional manufacturing Consistent speed and quality during goods production Increased workplace safety for all employees at the manufacturing plant Aids in more efficient use of floor space Internet of Things The Internet of Things allows devices to interconnect with one another and exchange data. The IoT connects assets to processes, systems, and people in manufacturing. This enables improved process integration, increased efficiency, and the advancement of manufacturing to the next transformation phase, Industry 4.0. According to Mordorintelligence's market research, the global IoT market is estimated to reach USD 1,386.06 billion in 2026, up from USD 761.4 billion in 2020, a CAGR of 10.53 percent over the forecast period of 2021 to 2026. Benefits of Internet of Things It contributes to increased energy efficiency by identifying and optimizing underperforming devices It monitors all processes and parameters to determine when to replace specific components It improves product quality by analyzing and correcting issues at any stage of the manufacturing process It reduces downtime by detecting and alerting production line personnel to problems It enables more informed decision-making by unlocking Virtual Reality Virtual reality enables plant managers to mimic manufacturing processes and assembly line layouts to discover potentially harmful scenarios. Additionally, virtual reality can immerse an employee in a future workstation and then capture their movement to assess task feasibility and proficiency. As a result, the usage of virtual reality in manufacturing is increasing daily and is widely seen as the industry's future. According to market research firm markets and markets, the worldwide virtual reality industry is estimated to rise by USD 20.9 billion by 2025, expanding at a 27.9 percent compound annual growth rate from 2020 to 2025. Benefits of Virtual Reality Enables a more thorough examination of the product's design Enables the gathering of feedback on future items before they are launched in the real world Final Words In recent years, advanced manufacturing technology has helped the manufacturing industry become more efficient, precise, and goal-oriented. As a result, manufacturers are eager to upgrade their current manufacturing facilities to state-of-the-art facilities. As a result, manufacturing companies would become more competitive and an integral industry component if they implement cutting-edge technologies. FAQs How do you define advanced manufacturing? Product and process improvement through inventive use of new technology is called advanced manufacturing. Which sectors are utilizing cutting-edge technology? Aerospace, Medical, Electronics, Transportation, Energy, and Consumer Product Production Companies are the top businesses or sectors that use cutting-edge technologies with sophisticated manufacturing. What is the difference between conventional manufacturing and advanced manufacturing? Traditional manufacturing adds value to attain the goal. Traditional manufacturing adds value to attain the goal. But, on the other hand, advanced manufacturing covers production methods in specific industries like aerospace, medical, pharmaceutical, etc.

Read More

Technologies to Adopt Now to Enable the Smart Warehouse Concept

Article | December 8, 2021

Why should warehouses be left behind as everything gets smarter in the manufacturing world? The future warehouse will be smarter and more innovative to speed up supply chain management procedures and assist businesses in intelligently segregating their raw materials and manufactured goods. So, what does it mean to have "a smart warehouse"? A smart warehouse is a big infrastructure that stores raw materials and manufactured goods and employs machines and computers to handle routine warehouse tasks that humans previously performed. Smart warehouses are inspired by smart factories and operate in a data-driven environment. It is the ability of the system in the warehouse to make it more efficient and productive by utilizing networked, automated technology. “I advocate business leaders get to know more about what AI can do and then leverage AI in proofs of concept.” – Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft According to EASYECOM, nine out of ten businesses intend to include commercial service robots into their operations in some form. By 2025, it is projected that there will be roughly 23,000 robotic warehouses in the United States alone, up from only 2,500 in 2018. Furthermore, the global smart warehousing market is expected to grow at a CAGR of 11.5 percent from USD 14.8 billion in 2021 to USD 25.4 billion in 2026, according to GlobeNewswire. As can be seen, the current warehouse automation trends are scaling up the worldwide market for smart warehouses, and the value of the smart warehouse business has a long way to go in the future. So, what are the technologies that are changing traditional warehouses into intelligent warehouses? Continue reading this article to get a better understanding of this. Top 5 Warehouse Technologies to Take On Numerous manufacturing and non-manufacturing organizations, including IKEA, NIKE, and WALMART, utilize smart warehouses to streamline their overall operations. The technologies listed below assist many of them in implementing the modern warehousing idea. A Warehouse Management System Warehouse Management Systems, or WMSs, are comprehensive software systems that consolidate all of your critical data onto a single platform that can be easily accessed by team members and selected supply chain partners. This data compartmentalization allows for lightning-fast reporting, which allows for super-efficient planning, even for unexpected events. Overall, the use of warehouse management systems complements the use of other automated aspects perfectly. Automated Picking Tools The days of error-prone picking are long gone; now, when picking automation elements are integrated into the flow, warehouses can profit from near-perfect picking rates. In addition, picking procedures can be aided by various techniques, including voice-automated order picking, pick-to-light, and robotic order picking. These technologies also use cutting-edge barcoding choices that easily interface with your selected management software to provide the quickest and most accurate automated reporting experiences. Automated Guided Vehicles (AGVs) AGVs, or automatic guided vehicles, are the best approach to speeding up storage and retrieval processes. AGVs are becoming more robust as technology advances, but older models have proven safer and more cost-effective than manual labor. Their functions include pallet, rack, and other container storage and controlling and automating the entire receiving process. Platforms for Automated Inventory Control Automated inventory control platforms, when combined with a few other technological cornerstones, such as asset and inventory tags, may eliminate labor, guesswork, and unnecessary time from traditional inventory control. In addition, there are several advantages to using these platforms, including their ability to automatically count inventories and synthesize data for real-time reporting that can be viewed remotely. IoT Implementation The Internet of Things (IoT) is used by some of the world's most efficient smart warehouses, such as Amazon, as an entire concept rather than a specific technology. All of your automated and manual operations may be optimized when IoT is used to control all of your moving parts, both automated and manual. This innovative technology helps optimize a warehouse's inventory control systems, workforce planning, and, of course, the overall customer experience. While implementing technology improves the notion of a smart warehouse, it isn't always possible for every warehouse to do so instantly, especially since implementing technology takes significant financial and infrastructure changes. That's why warehouses are adopting the concept of collaborative robots (cobots). These are the autonomous elements that work with existing human workers. Cobots allow warehouses to preserve many of their existing procedures and infrastructure while gaining the benefits of fully autonomous elements. Amazon's Smart Warehouses Integrates Humans and Robots Amazon acquired Kiva Systems for $775 million in 2012, highlighting its interest in warehouse robotics. Kiva Systems was the sole known producer of warehouse robots, serving many different logistics organizations. Amazon bought Kiva Systems' machines, constructed and used them all. Amazon Robotics is a new business unit that the company has developed. Amazon recently established a semi-automated warehouse with human workers and robots. As a result, simple chores like moving parcels and scanning barcodes are automated. However, organizing goods and carrying complex objects (like bottles) is still part of human work. Amazon's automated warehouse employs over 400 robots and hundreds of human employees. Amazon's rise in two crucial areas – online shopping and logistics – has been accelerated by warehouse robots. Final Words Modern warehousing is a new trend in the manufacturing industry that automates numerous procedures required for keeping manufacturing materials and products organized. Technology trends in warehousing are making manufacturers' jobs easier and promoting the future warehouse model in 2022. Implement the cutting-edge technology outlined above to stay current with warehousing trends and boost productivity, efficiency, accuracy, and flexibility for your personnel and their operations. FAQ What are the key benefits of a smart warehouse? A smart warehouse improves the warehouse's productivity, efficiency, and accuracy. It also allows personnel and procedures to be flexible. What exactly is WMS? A warehouse management system (WMS) is a software solution that handles the supply chain from the distribution center to the retail shelf. What is COBOT? Cobots are designed to work with people rather than replace them. Cobots are also known as people-focused robots. They can help humans simplify and improve their work. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are the key benefits of a smart warehouse?", "acceptedAnswer": { "@type": "Answer", "text": "A smart warehouse improves the warehouse's productivity, efficiency, and accuracy. It also allows personnel and procedures to be flexible." } },{ "@type": "Question", "name": "What exactly is WMS?", "acceptedAnswer": { "@type": "Answer", "text": "A warehouse management system (WMS) is a software solution that handles the supply chain from the distribution center to the retail shelf." } },{ "@type": "Question", "name": "What is COBOT?", "acceptedAnswer": { "@type": "Answer", "text": "Cobots are designed to work with people rather than replace them. Cobots are also known as people-focused robots. They can help humans simplify and improve their work." } }] }

Read More

Spotlight

Stratus Technologies

If "always-on" is a requirement, Stratus Technologies has a solution that fits. In today’s always-on world, applications run under increasingly demanding circumstances. With these escalating demands comes greater pressure to prevent even the smallest amount of application downtime. Companies are responding to this need for always-on solutions by searching for technologies that either conform to or enhance their current IT infrastructures.

Related News

MANUFACTURING TECHNOLOGY

HWAFUNE Breaks Through Textile Difficulties with Porlite by Creating New Trends in Functional Fabrics

HWAFUNE | June 28, 2022

When mentioning Taiwan's traditional manufacturing, what pops into your head may be the textile industry. As a global hub for textile manufacturing, Taiwan has undergone significant changes over the past 30 years. Two of the most important changes are the relocation of industries to China and the government's New Southbound Policy. While Taiwanese textile manufacturers' decision to relocate is mainly driven by the need to reduce costs using cheap overseas labor, the rising labor costs in Southeast Asia have forced the manufacturers to constantly move their production to other regions, turning them into textile industry nomads. Despite these two relocation trends, HWAFUNE Textile which specializes in manufacturing functional fabrics has insisted on keeping production in Taiwan to provide reliable, high-quality products for esteemed customers. Instead of blindly pursing low costs and low prices through contract manufacturing and ending up in the red ocean, HWAFUNE Textile has strengthened the foothold of the Taiwanese textile industry in the global luxury market. One of the hot topics in the functional apparel market in recent years is the European Union's ban on fabrics containing PTFE. Currently, membranes made of PU, TPU, and PTFE account for the majority of functional apparels. With superior moisture permeability and breathability, PTFE has been adopted more widely than the other two materials. However, when heated to high temperatures during the manufacturing process, PTFE will generate PFOA which is classified as a possible human carcinogen. In addition, greenhouse gas is produced when fabrics containing this material are incinerated. Even if the fabrics are buried in landfills, PFOA will not decompose and will be washed into the ocean by rain. It then gets into the atmosphere via evaporation and is transported to everywhere by airflow or rain. PFOA has even been found in polar bears' livers. Considering the potential impact of the EU's ban on the clothing market and consumers' fear of toxic substances, upmarket brands have been looking for alternative functional fabrics. Therefore, HWAFUNE has joined hands with Phoenix Innovative Materials to develop the functional fabric brand Porlite, which has rapidly won the heart of high-end functional apparel brands. "In Light of Future Trends, HWAFUNE Develops Porlite Fabrics with Phoenix Innovative Materialsto take interest in PP membranes five years ago. Although HWAFUNE has the ability to mass produce fabrics featuring PTFE, PU, and TPU membranes, he believes PP membranes will become a trend in the functional apparel industry since the lifecycle of the material, from the production of the membrane and the manufacturing of the fabrics to the disposal of the clothing, is more in line with increased environmental awareness, I can guarantee that Porlite is capable of replacing existing functional fabrics and can fully address high-end brands' product development requirements" -Jackson Chang,ChairmanHWAFUNE. Turning the ambitious vision into reality is not easy. In the past three years, these two companies worked closely on the manufacturing, testing, and modification of the membrane. Besides functionality, HWAFUNE also considered the needs of consumers during testing, such as waterproof, moisture permeability, and even the appearances of the fabrics after washing. The reason that Chairman Chang is so committed is because he has put himself in consumers' shoes in the first place. He thinks environmental protection, safety, non-toxicity, and practicability should be combined perfectly. Product developers should not need to choose between them, nor should they force consumers to compromise on environmental protection, price, or quality. Dr. Chang, who is responsible for technology development at Phoenix Innovative Materials, explains the three major advantages of Porlite which is produced through non-toxic manufacturing processes in Taiwan. Firstly, there are 10 billion pores arranged in an orderly manner on the membrane. As the pores are smaller than water molecules and bigger than air molecules, the fabric can resist water penetration, even under pressure, while maintaining breathability. Moreover, since most outdoor exercises are relatively intense and will create a lot of sweat during the process, Porlite can also transport moisture from the clothing to the atmosphere by diffusion through the membrane, thus providing moisture permeability and breathability that no other functional apparel on market can achieve. Porlite Captures Top Brands' Heart with Non-Toxic Manufacturing, Sustainability, Fastness to Washing, and Moisture Permeability In line with the HWAFUNE's commitment to sustainability, the Durable Water Repellent (DWR) for Porlite can endure at least 30 laundering cycles and rain-resistant for period of time, thus providing a longer life span. Manufacturing in Taiwan is one of the main reasons that Porlite has won favor with Europe-based tier-one sportswear brands. The high quality enables Porlite to stand out from other competitors and meet customers' needs for upscale and reliable products. Both the PP membrane developed by Phoenix Innovative Materials and the Porlite fabric created by HWAFUNE are manufactured in Taiwan. Thanks to their insistence on domestic production, the companies have established a high-tech brand image for Taiwanese textile companies widely recognized by overseas esteemed customers. These are valuable experiences for both Phoenix Innovative Materials and HWAFUNE. Instead of pursuing short-term profits through contract manufacturing services, Chairman Chang and Dr. Chang spent five years developing the Porlite fabric whose overwhelming advantages for environmental protection and functionality have spoken for itself. The goal is to establish bio-based manufacturing processes by using natural materials such as weeds as raw materials and to provide biodegradable products in 10 years.

Read More

MANUFACTURING TECHNOLOGY

Time Manufacturing Company Acquires France Elévateur

France Elévateur | June 28, 2022

H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with over $49 billion of equity capital under management, is pleased to announce that its portfolio company, Time Manufacturing Holdings, LLC (“Time Manufacturing” or the “Company”), a leading, global provider of vehicle-mounted aerial lifts, has acquired France Elévateur (“FE Group”). The pairing of the two companies, who share a mutual dedication to quality and safety, strengthens the combined platform’s global manufacturing capabilities while enhancing value to customers through a broader portfolio of complementary products and services. Founded in 1984 and headquartered in Flavigny, France, France Elévateur is a leading manufacturer of vehicle-mounted aerial platforms for customers in various trades including public lighting, electric utility, roofing, telecommunications, rail networks, and other fields requiring access solutions. Through its two manufacturing sites in France and Spain and its footprint of 15 service facilities, France Elévateur provides quality machinery and comprehensive after-market services across Europe. “The France Elévateur acquisition represents a meaningful step forward in our global growth plan by adding more than 450 experienced professionals, a world-class regional product line, and over a dozen facilities across France, Belgium, and Spain. Leveraging our existing reach in Austria, Denmark, France, Germany, Italy, Sweden, and Switzerland, The FE Group improves our reach in the important national markets of Belgium, Netherlands, Luxembourg, Ireland, Eastern France and Spain.” -Curt Howell, Chief Executive Officer of Time Manufacturing Company. “Together, Time Manufacturing and France Elévateur can leverage their combined portfolio of vehicle-mounted access products to bring additional solutions to all customers.” -Charles Goffin, Chief Executive Officer of France Elévateur. France Elévateur is a highly complementary addition that brings further diversification to Time Manufacturing’s suite of aerial lifts, and strengthens the Company’s global leadership position, said Tenno Tsai, Head of North American Industrials at H.I.G. Klaas Reineke, Managing Director at H.I.G., added, We are thrilled to continue supporting management and the Company in their efforts to enhance our European operations, particularly in the utility and telecommunications end markets. About Time Manufacturing Company- Time Manufacturing Company is a global manufacturer of bucket trucks, digger derricks, cable placers, truck bodies, buckets, and other specialty equipment for electric utility, telecommunications infrastructure, bridge inspection, tree care, and other fleet-supported industries. Selling via the Versalift, BrandFX, Aspen Aerials, Ruthmann, Steiger, Ecoline and Bluelift brands, the Company employs more than 2,000 associates worldwide. For more information, visit https://timemfg.com. About France Elévateur- France Elévateur is a leading manufacturer of vehicle-mounted aerial platforms for customers in various trades including public lighting, electric utility lines, roofing, telecommunications networks, rail networks, equipment rental, and other fields requiring access solutions. Through its two manufacturing sites in France and Spain and its footprint of 15 service facilities, France Elévateur provides quality machinery and after-sales services across Europe. For more information, visit https://france-elevateur.fr. About H.I.G. Capital- H.I.G. is a leading global alternative assets investment firm with over $49 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach: H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion.

Read More

MANUFACTURING TECHNOLOGY

Akoustis Signs New DARPA Contract to Advance XBAW Technology

Akoustis Technologies | June 27, 2022

Akoustis Technologies, Inc. (NASDAQ: AKTS) (“Akoustis” or the “Company”), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today that it has entered into a new multi-year, multi-million dollar contract from the Defense Advanced Research Projects Agency (DARPA) to pursue new materials and device manufacturing methods. As a result of the expected advances, the program could extend the Company’s patented and proprietary XBAW® technology to 18 GHz, opening up significant new commercial and defense applications to Akoustis. Traditional scaling of BAW resonators to X and Ku bands typically results in unacceptably low Q (quality) factors, degraded electromechanical coupling and much lower power capability driven by leaked energy from much smaller resonators. One approach to BAW frequency scaling is simple overtone mode operation which severely degrades electromechanical coupling. In this DARPA program, XBAW® technology utilizes a novel approach to circumvent trade-offs inherent in traditional BAW frequency scaling approaches. Akoustis plans to introduce, at the completion of the program, XBAW® filters and resonators that fully exploit the entire kt2 of the underlying piezoelectric material. “A different frequency scaling approach is required for BAW resonators to operate at higher frequencies above 10GHz, such as X and Ku bands.In this DARPA-funded effort, we intend to introduce a new method of BAW overtone operation that can maintain high Q factor while mitigating the decrease in coupling. Combining our existing, patented XBAW® technology along with the successful mode overtone operation which we plan to develop under this program, we expect to advance the state-of the-art in BAW RF filter technology at lower frequencies for 5G and Wi-Fi—specifically in terms of power handling, Q factor and frequency operation relative to incumbent BAW technologies in the market today.” -Jeff Shealy, founder and CEO of Akoustis Akoustis is actively delivering volume production of its Wi-Fi 6 tandem filter solutions, shipping multiple 5G small cell XBAW® filter solutions, delivering initial designs of its new 5G mobile filter solutions to multiple customers and has entered the market with its new Wi-Fi 6E coexistence XBAW® filter solutions. Given the rapidly growing sales funnel activity as well as ongoing interaction with customers regarding expected ramps in 5G mobile, Wi-Fi 6 and Wi-Fi 6E in calendar 2022, the Company is increasing the annual production capacity at its New York fab to approximately 500 million filters per year. About Akoustis Technologies, Inc- Akoustis® is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters - targeting higher bandwidth, higher operating frequencies and higher output power compared to incumbent polycrystalline BAW technology deployed today. The Company utilizes its proprietary and patented XBAW® manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, high-purity and single-crystal piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. Akoustis plans to service the fast growing multi-billion-dollar RF filter market using its integrated device manufacturer (IDM) business model. The Company owns and operates a 120,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility - tooled for 150-mm diameter wafers - for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis Technologies, Inc. is headquartered in the Piedmont technology corridor near Charlotte, North Carolina.

Read More

MANUFACTURING TECHNOLOGY

HWAFUNE Breaks Through Textile Difficulties with Porlite by Creating New Trends in Functional Fabrics

HWAFUNE | June 28, 2022

When mentioning Taiwan's traditional manufacturing, what pops into your head may be the textile industry. As a global hub for textile manufacturing, Taiwan has undergone significant changes over the past 30 years. Two of the most important changes are the relocation of industries to China and the government's New Southbound Policy. While Taiwanese textile manufacturers' decision to relocate is mainly driven by the need to reduce costs using cheap overseas labor, the rising labor costs in Southeast Asia have forced the manufacturers to constantly move their production to other regions, turning them into textile industry nomads. Despite these two relocation trends, HWAFUNE Textile which specializes in manufacturing functional fabrics has insisted on keeping production in Taiwan to provide reliable, high-quality products for esteemed customers. Instead of blindly pursing low costs and low prices through contract manufacturing and ending up in the red ocean, HWAFUNE Textile has strengthened the foothold of the Taiwanese textile industry in the global luxury market. One of the hot topics in the functional apparel market in recent years is the European Union's ban on fabrics containing PTFE. Currently, membranes made of PU, TPU, and PTFE account for the majority of functional apparels. With superior moisture permeability and breathability, PTFE has been adopted more widely than the other two materials. However, when heated to high temperatures during the manufacturing process, PTFE will generate PFOA which is classified as a possible human carcinogen. In addition, greenhouse gas is produced when fabrics containing this material are incinerated. Even if the fabrics are buried in landfills, PFOA will not decompose and will be washed into the ocean by rain. It then gets into the atmosphere via evaporation and is transported to everywhere by airflow or rain. PFOA has even been found in polar bears' livers. Considering the potential impact of the EU's ban on the clothing market and consumers' fear of toxic substances, upmarket brands have been looking for alternative functional fabrics. Therefore, HWAFUNE has joined hands with Phoenix Innovative Materials to develop the functional fabric brand Porlite, which has rapidly won the heart of high-end functional apparel brands. "In Light of Future Trends, HWAFUNE Develops Porlite Fabrics with Phoenix Innovative Materialsto take interest in PP membranes five years ago. Although HWAFUNE has the ability to mass produce fabrics featuring PTFE, PU, and TPU membranes, he believes PP membranes will become a trend in the functional apparel industry since the lifecycle of the material, from the production of the membrane and the manufacturing of the fabrics to the disposal of the clothing, is more in line with increased environmental awareness, I can guarantee that Porlite is capable of replacing existing functional fabrics and can fully address high-end brands' product development requirements" -Jackson Chang,ChairmanHWAFUNE. Turning the ambitious vision into reality is not easy. In the past three years, these two companies worked closely on the manufacturing, testing, and modification of the membrane. Besides functionality, HWAFUNE also considered the needs of consumers during testing, such as waterproof, moisture permeability, and even the appearances of the fabrics after washing. The reason that Chairman Chang is so committed is because he has put himself in consumers' shoes in the first place. He thinks environmental protection, safety, non-toxicity, and practicability should be combined perfectly. Product developers should not need to choose between them, nor should they force consumers to compromise on environmental protection, price, or quality. Dr. Chang, who is responsible for technology development at Phoenix Innovative Materials, explains the three major advantages of Porlite which is produced through non-toxic manufacturing processes in Taiwan. Firstly, there are 10 billion pores arranged in an orderly manner on the membrane. As the pores are smaller than water molecules and bigger than air molecules, the fabric can resist water penetration, even under pressure, while maintaining breathability. Moreover, since most outdoor exercises are relatively intense and will create a lot of sweat during the process, Porlite can also transport moisture from the clothing to the atmosphere by diffusion through the membrane, thus providing moisture permeability and breathability that no other functional apparel on market can achieve. Porlite Captures Top Brands' Heart with Non-Toxic Manufacturing, Sustainability, Fastness to Washing, and Moisture Permeability In line with the HWAFUNE's commitment to sustainability, the Durable Water Repellent (DWR) for Porlite can endure at least 30 laundering cycles and rain-resistant for period of time, thus providing a longer life span. Manufacturing in Taiwan is one of the main reasons that Porlite has won favor with Europe-based tier-one sportswear brands. The high quality enables Porlite to stand out from other competitors and meet customers' needs for upscale and reliable products. Both the PP membrane developed by Phoenix Innovative Materials and the Porlite fabric created by HWAFUNE are manufactured in Taiwan. Thanks to their insistence on domestic production, the companies have established a high-tech brand image for Taiwanese textile companies widely recognized by overseas esteemed customers. These are valuable experiences for both Phoenix Innovative Materials and HWAFUNE. Instead of pursuing short-term profits through contract manufacturing services, Chairman Chang and Dr. Chang spent five years developing the Porlite fabric whose overwhelming advantages for environmental protection and functionality have spoken for itself. The goal is to establish bio-based manufacturing processes by using natural materials such as weeds as raw materials and to provide biodegradable products in 10 years.

Read More

MANUFACTURING TECHNOLOGY

Time Manufacturing Company Acquires France Elévateur

France Elévateur | June 28, 2022

H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with over $49 billion of equity capital under management, is pleased to announce that its portfolio company, Time Manufacturing Holdings, LLC (“Time Manufacturing” or the “Company”), a leading, global provider of vehicle-mounted aerial lifts, has acquired France Elévateur (“FE Group”). The pairing of the two companies, who share a mutual dedication to quality and safety, strengthens the combined platform’s global manufacturing capabilities while enhancing value to customers through a broader portfolio of complementary products and services. Founded in 1984 and headquartered in Flavigny, France, France Elévateur is a leading manufacturer of vehicle-mounted aerial platforms for customers in various trades including public lighting, electric utility, roofing, telecommunications, rail networks, and other fields requiring access solutions. Through its two manufacturing sites in France and Spain and its footprint of 15 service facilities, France Elévateur provides quality machinery and comprehensive after-market services across Europe. “The France Elévateur acquisition represents a meaningful step forward in our global growth plan by adding more than 450 experienced professionals, a world-class regional product line, and over a dozen facilities across France, Belgium, and Spain. Leveraging our existing reach in Austria, Denmark, France, Germany, Italy, Sweden, and Switzerland, The FE Group improves our reach in the important national markets of Belgium, Netherlands, Luxembourg, Ireland, Eastern France and Spain.” -Curt Howell, Chief Executive Officer of Time Manufacturing Company. “Together, Time Manufacturing and France Elévateur can leverage their combined portfolio of vehicle-mounted access products to bring additional solutions to all customers.” -Charles Goffin, Chief Executive Officer of France Elévateur. France Elévateur is a highly complementary addition that brings further diversification to Time Manufacturing’s suite of aerial lifts, and strengthens the Company’s global leadership position, said Tenno Tsai, Head of North American Industrials at H.I.G. Klaas Reineke, Managing Director at H.I.G., added, We are thrilled to continue supporting management and the Company in their efforts to enhance our European operations, particularly in the utility and telecommunications end markets. About Time Manufacturing Company- Time Manufacturing Company is a global manufacturer of bucket trucks, digger derricks, cable placers, truck bodies, buckets, and other specialty equipment for electric utility, telecommunications infrastructure, bridge inspection, tree care, and other fleet-supported industries. Selling via the Versalift, BrandFX, Aspen Aerials, Ruthmann, Steiger, Ecoline and Bluelift brands, the Company employs more than 2,000 associates worldwide. For more information, visit https://timemfg.com. About France Elévateur- France Elévateur is a leading manufacturer of vehicle-mounted aerial platforms for customers in various trades including public lighting, electric utility lines, roofing, telecommunications networks, rail networks, equipment rental, and other fields requiring access solutions. Through its two manufacturing sites in France and Spain and its footprint of 15 service facilities, France Elévateur provides quality machinery and after-sales services across Europe. For more information, visit https://france-elevateur.fr. About H.I.G. Capital- H.I.G. is a leading global alternative assets investment firm with over $49 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach: H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion.

Read More

MANUFACTURING TECHNOLOGY

Akoustis Signs New DARPA Contract to Advance XBAW Technology

Akoustis Technologies | June 27, 2022

Akoustis Technologies, Inc. (NASDAQ: AKTS) (“Akoustis” or the “Company”), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today that it has entered into a new multi-year, multi-million dollar contract from the Defense Advanced Research Projects Agency (DARPA) to pursue new materials and device manufacturing methods. As a result of the expected advances, the program could extend the Company’s patented and proprietary XBAW® technology to 18 GHz, opening up significant new commercial and defense applications to Akoustis. Traditional scaling of BAW resonators to X and Ku bands typically results in unacceptably low Q (quality) factors, degraded electromechanical coupling and much lower power capability driven by leaked energy from much smaller resonators. One approach to BAW frequency scaling is simple overtone mode operation which severely degrades electromechanical coupling. In this DARPA program, XBAW® technology utilizes a novel approach to circumvent trade-offs inherent in traditional BAW frequency scaling approaches. Akoustis plans to introduce, at the completion of the program, XBAW® filters and resonators that fully exploit the entire kt2 of the underlying piezoelectric material. “A different frequency scaling approach is required for BAW resonators to operate at higher frequencies above 10GHz, such as X and Ku bands.In this DARPA-funded effort, we intend to introduce a new method of BAW overtone operation that can maintain high Q factor while mitigating the decrease in coupling. Combining our existing, patented XBAW® technology along with the successful mode overtone operation which we plan to develop under this program, we expect to advance the state-of the-art in BAW RF filter technology at lower frequencies for 5G and Wi-Fi—specifically in terms of power handling, Q factor and frequency operation relative to incumbent BAW technologies in the market today.” -Jeff Shealy, founder and CEO of Akoustis Akoustis is actively delivering volume production of its Wi-Fi 6 tandem filter solutions, shipping multiple 5G small cell XBAW® filter solutions, delivering initial designs of its new 5G mobile filter solutions to multiple customers and has entered the market with its new Wi-Fi 6E coexistence XBAW® filter solutions. Given the rapidly growing sales funnel activity as well as ongoing interaction with customers regarding expected ramps in 5G mobile, Wi-Fi 6 and Wi-Fi 6E in calendar 2022, the Company is increasing the annual production capacity at its New York fab to approximately 500 million filters per year. About Akoustis Technologies, Inc- Akoustis® is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters - targeting higher bandwidth, higher operating frequencies and higher output power compared to incumbent polycrystalline BAW technology deployed today. The Company utilizes its proprietary and patented XBAW® manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, high-purity and single-crystal piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. Akoustis plans to service the fast growing multi-billion-dollar RF filter market using its integrated device manufacturer (IDM) business model. The Company owns and operates a 120,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility - tooled for 150-mm diameter wafers - for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis Technologies, Inc. is headquartered in the Piedmont technology corridor near Charlotte, North Carolina.

Read More

Events