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How Manufacturing Industry Uses Cloud Technology: Three Case Studies

Bhagyashri Kambale | February 22, 2022 | 1175 views
HOW MANUFACTURING INDUSTRY USES CLOUD
The integration of cutting-edge technologies into the manufacturing industry has transformed the whole economy and accelerated the pace of all operations. Cloud computing for manufacturing is a type of technology that enables businesses to gain visibility, scalability, mobility, security, and improved collaboration, among other benefits. Seeing the benefits, many small and large players in the manufacturing business have embraced cloud computing.

“Cloud computing is not only the future of computing, but the present and the entire past of computing.”

– Larry Ellison, co-founder, executive chairman, CTO, and former CEO of Oracle Corporation.

According to IDC research, the manufacturing industry is the biggest player in cloud computing solutions, with an estimated spending of $19 billion. Additionally, Market Research Future projects that the cloud manufacturing market will reach a value of USD 121.72 billion by 2026. As a result, we may predict that manufacturing cloud computing has a long way to go in the industry. 

In this article, we will look at some of the key cloud manufacturing applications and case studies of three US-based manufacturing businesses that used manufacturing cloud software ERP.

Applications for Manufacturing Cloud Computing


Effective Marketing

Cloud technology's comprehensive nature makes it an ideal solution for the challenges of marketing campaigns. Manufacturers leverage cloud-based applications to help them plan, execute, and manage marketing initiatives. Manufacturers can also look at production and sales data to see how well their campaign is working.

Product Planning and Development

Product planning and development are closely linked in manufacturing. Manufacturers can get their businesses ready for full production by integrating product planning and development information with supply chain data and communications. Comprehensive integration enables products to move a lot faster from notion to engineering, from prototype to small-scale production, and eventually to full-scale production and shipping.

Production and Stock Tracking

Once production begins, cloud technology may assist in the manufacturing and stock management of products. Businesses can use enterprise resource planning (ERP) software to match production levels to available inventory and sales. Pricing quotations, order intake, and client requests can all be managed using the ERP software. Using a standard product to keep an eye on these things reduces the time it takes to get an order.

Productivity Management

Manufacturers rarely maintain the same level of production throughout the year for all products. They can use cloud-based tools to keep track of when to modify production to meet changing market demands. These software solutions ensure that manufacturers have the necessary raw materials on hand by making communication easier across the supply chain. This helps them easily adjust their orders to accommodate future productivity levels.

Three Case Studies of Cloud Computing in Manufacturing


Ralco Industries Leveraged Cloud to Cut Its Inventory by 15%

Ralco Industries is a producer and supplier of automotive components that specializes in precision-welded assembly and prototypes. To overcome the challenges of their business growth, the industrialists moved to manufacturing software cloud ERP and saved some money in the process. There was a lot of inefficiency, quality issues, excessive expediting prices, and wasted time due to inaccurate inventory and many unconnected systems in the past. Moving to a single integrated cloud ERP software system helped Ralco cut inventory on hand by 15%, scrap by more than 60%. It helped Ralco save money on premium freight by more than 20% and save almost $100 on each purchase order that was processed.

Avon Gear Improved Inventory Accuracy and Grew by 20% Yearly

Avon Gear Company, a maker of precision-machined components and subassemblies for heavy industrial equipment, was looking for an ERP system that would integrate data across the organization. The company chose a cloud-based manufacturing ERP to manage and record production activity, inventory status changes, receiving, shipping, and other plant-floor data. Consequently, Avon Gear's inventory accuracy has increased, and the company's growth rate has gone up by an average of 20% each year.

Wolverine Improved First-pass Quality by 15-20% Using Cloud

An automobile brake system technology firm, Wolverine Advanced Materials, found that its manual methods were not sustainable, especially when it came to supporting fast development. To grow and embrace lean manufacturing, the firm chose cloud ERP, which enabled it to properly assess cost and profitability by part. Using manufacturing cloud software, ERP, the company's factory floor workers can see all client orders and conveniently categorize them by material so that they can better manage their schedules. This has resulted in increased production and cost savings for Wolverine. Also, overtime was cut by 60%, while first-pass quality increased by 15% to 20%.


Final Word

For manufacturers, cloud computing is a game changer. Manufacturing companies must deal with a lot of different sites and supply chains, which requires the use of large, complex database applications.

The Cloud computing for manufacturing is expediting industrial operations and overall business decisions in the manufacturing industry. Cloud computing enables industrial organizations to improve visibility across large fleets of facilities. It also contributes to standardization by synchronizing and supplying data for new forms of analytics. Supply chain management becomes more effective and product development gets easier with cloud computing. So, instead of debating whether to use cloud computing, take action and use cloud computing in your business.

FAQ


What is cloud computing in manufacturing industry?

Cloud computing refers to the on-demand provision of IT resources over the internet. Instead of buying, running, and maintaining physical data centers and servers, you can use a cloud service. This approach would help you get computing power, storage, and databases when you need them, rather than buying and running your own.

How does cloud computing help the manufacturing industry?

Cloud-based solutions are more rapidly deployed than traditional systems, which enables firms to stay current with new innovations. Also, they are easier to change and grow, and they have the potential to make resellers more likely to use them.

Why cloud computing vital to modern manufacturing?

Cloud computing impacts all aspects of manufacturing. It enables manufacturers to see and control all manufacturing data and take informed production decisions. This is the reason why it is vital to modern manufacturing.

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