In Manufacturing, What's The Name of the Game?

| March 09, 2018
IN MANUFACTURING, WHAT'S THE NAME OF THE GAME?
And just like the mismatched verses above, Olympics primary tools of the trade is a systematic amalgamation of variegated parts which makes all the difference not undermining the determined talent of the representatives. Be it bobsleigh or figure skating or Alpine Skiing, countries worldwide naturally want to equip their representatives with the best.

Spotlight

Yanfeng Automotive Interiors

Yanfeng Automotive Interiors (YFAI) is the global leader in automotive interiors. YFAI is redefining how people relax, work and play in their vehicle interiors today and decades from now. Headquartered in Shanghai, the company has 114 manufacturing plants and technical centers in 20 countries and more than 33,000 employees globally. They design, develop and manufacture interior components for all automakers.

OTHER ARTICLES

Wireless AGVs May Prove Most Important ProMatDX Innovation

Article | April 1, 2021

April 12 -15 ProMatDX, the largest material handling event, will take place virtually. It will feature dozens of AGV vendors. Sadly, some of these highly innovating products still need to be plugged-in to capture power. No more. Wiferion in process charging eliminates the plug-in charging making AGVs truly autonomous. In process charging eliminates the waste of AGV downtime – the fleet is always working AND charging. In process charging is safe ensuring the OSHA, ergonomics, and danger to workers significantly reduced. In process charging is cost-efficient because full vehicle deployment means a reduced fleet count ensuring a rapid ROI. For OEMs of AGVs and industrial trucks implementing inductive charging technology solves the wear and tear issues caused by conventional charging methods as well as making vehicles fully autonomous. For end-users of AGVs and industrial trucks, inductive charging in combination with lithium batteries can improve fleet availability by more than 30%. Whether driverless transport systems (AGVs), electric forklifts, or mobile robots (AMRs), the efficient use of industrial trucks is a decisive factor for competitiveness during ever- increasing cost pressures. The energy systems are being scrutinized and lithium-ion batteries are the preferred technology. The advantages versus lead-acid batteries (including the ability to recharge faster and more often) are obvious. Until now the full potential of storage technology has not been fully realized.

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This Is How You Can Lower Your Manufacturing Overhead

Article | December 21, 2021

When it comes to developing a budget for the following financial year of your manufacturing business, many operations managers start with direct labor and material expenditures. But, what about manufacturing overhead costs? Manufacturing overhead is any expense not directly tied to a factory's production. Therefore, the indirect costs in manufacturing overhead can also be called factory overhead or production overhead. Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower-cost goods and services, and causes economic expansion that reduces unemployment and increases productivity and job creation. – Larry Elder So, this article focuses on some highly effective overhead cost reduction methods that would help you build a healthy budget for the following year. Manufacturing Overhead Costs: What Is Included? Everything or everyone within the factory that isn't actively producing items should be considered overhead. The following are some of the variables that are considered overhead costs: Depreciation of equipment and productionfacilities Taxes, insurance, and utilities Supervisors, maintenance, quality control, and other on-site personnel who aren't producing signs Indirect supply from light bulbs to toilet paper is also included in the overhead cost. Manufacturing Overhead Costs: What Is Excluded? Everything or everyone within or outside the factory that is actively producing items should be excluded from the overhead costs. Factory overhead does not include the following: Product materials Employee costs for those making the goods daily External administrative overhead, such as a satellite office or human resources Costs associated with C-suite employees Expenses associated with sales and marketing - include pay, travel, and advertising How to Calculate Overhead Costs in Manufacturing To know the manufacturing overhead requires calculating the manufacturing overhead rate. The formula to calculate the manufacturing overhead rate i.e. MOR is basic yet vital. To begin, determine your overall manufacturing overhead expenses. Then, add up all the monthly indirect expenditures that keep manufacturing running smoothly. Then you can calculate the Manufacturing Overhead Rate (MOR). This statistic shows you your monthly overhead costs as a percentage. To find this value, divide Total Manufacturing Overhead Cost (TMOC) by Total Monthly Sales (TMS) and multiply it by 100. The final formula will be: Assume your manufacturing overhead expensesare $50,000 and your monthly sales are $300,000. You get.167 when you divide $50,000 by $300,000. Then increase that by 100 to get your monthly overhead rate of 16.7%. This means your monthly overhead expenditures will be 16.7% of your monthly income. Being able to forecast and develop better solutions to decrease production overhead. Five Ways to Reduce Manufacturing Overhead Costs A variety of strategies may be used by manufacturing organizations to reduce their overhead costs. Here is a summary of some of the most important methods for reducing your manufacturing overhead costs. Value Stream Mapping – A Production Plant Process Layout A value stream map depicts the entire manufacturing process of your plant. Everything from raw material purchase through client delivery is detailed here. The value stream map provides you with a complete picture of the profit-making process. This overhead cost-cuttingmethod is listed first for a reason because every effort to reduce manufacturing overhead costsstarts with a value stream map. Lean manufacturingis also one of the techniques of eliminating unnecessary time, staff, and work that is not necessary for profit and has gained undue favor in the manufacturing process. You must first create a value stream map of the whole manufacturing process for this technique to work. Once the lean manufacturing precept is established, the following strategies for decreasingmanufacturing overhead expenses can be examined. Do Not Forget Your Back Office Management Before focusing on factory floor cost reduction techniques, remember that your back offices, where payment processing and customer contacts occur, may also be simplified and increase profitability. Fortunately, automation can achieve this profitability at a cheap cost. Manufacturers increasingly use robotic process automation (RPA) to sell directly to customers rather than rely on complex supply networks. This automation eliminates costly human mistakes in data input and payment processing by automatically filling forms with consumer data. Moreover, the time saved from manual data input (and rectifying inevitable human errors) equates to decreased labor expenses and downtime. Automating Your Manufacturing Plant For a long time, manufacturers saw factory automation as a game-changer. As a result, several plant owners make radical changes in their operations using cutting-edge technologydespite knowing it realistically. Over-investing in technologies unfamiliar to present industrial personnel might be deemed a technology blunder. Investing in new technology that doesn't generate value or is too hard for current staff to use might be a mistake. It's usually best to start small when implementing newtechnology in manufacturing. Using collaborative robots in production is one way to get started with automation. They are inexpensive, need little software and hardware, and may help employees with mundane, repeated chores that gobble up bandwidth. It is a low-cost entry point into automation that saves labor expenses and opens the door for further automation investments when opportunities are available. Reuse Other Factory Equipment and Supplies Check with other factories to see if they have any unused equipment or supplies that may be "redeployed" to your manufacturing plant. Redeployment would save you time and money by eliminating the need to look for and install new equipment while lowering your overhead costs. Outsourcing a fully equipped factory, equipment, or even staff can also assist in lowering overhead costssince you will only pay for what you utilize. As such, it is a viable method to incorporate into your production process. Employ an In-house Maintenance Expert An in-house repair technician can service your equipment for routine inspections, preventive maintenance, and minor repairs. This hiring decision might save money on unforeseen repair expenses or work fees for an outside repair provider. Having someone on-site who can do emergency repairs may save you money if your equipment breaks after business hours. Final Words Manufacturing overhead costis an essential aspect of every manufacturing company's budget to consider. Smart manufacturingis intended to be productive, efficient, and cost-effective while effectively managing production expenditures. Calculating the manufacturing overheadcan provide you with a better understanding of your company's costs and how to minimize them. Depending on the conditions or geographical needs, each manufacturing plant's overhead expensesmay vary. As a result, identify your production overhead costsand concentrate on reducing and improving them. FAQ What are manufacturing overheads? Manufacturing overhead cost is a sum of all indirect expenses incurred during production. Manufacturing overhead expenses usually include depreciation of equipment, employee salaries, and power utilized to run the equipment. What is a decent overhead percentage? When a business is functioning successfully, an overhead ratio of less than 35 % is considered favorable. How can I calculate the cost of manufacturing per unit? The overall manufacturing cost per unit is determined by dividing the total production expenses by the total number of units produced for a particular time.

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How to Find a Suitable Contract Manufacturing Partner?

Article | December 10, 2021

The benefits of contract manufacturing are triggering manufacturers to utilize it as a strategy to speed up production and increase revenue. According to BCC Research, the worldwide contract manufacturing industry should increase from $2.0 trillion in 2018 to $2.7 trillion in 2023, a 6.7% CAGR. Given the growing demand, contract manufacturing has a long way to go in innovating new solutions for manufacturers. As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity. – Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca Let us look at the benefits and concept of contract manufacturing, often known as manufacturing partners in some circles. Contract Manufacturing: Concept and Benefits Concept Contract manufacturing is a business model in which a company agreeswith a contract manufacturer to make components or finished goods based on the hiring company's design. In short, it is a business model in which one company hires another company to manufacture components or goods for them or their products. Benefits The following are some of the primary advantages of contract manufacturing that attract manufacturers to adopt this concept and find a trusted supplier to manufacture any product or part of their product without much difficulty. Cost Efficiency: In contract manufacturing, companies do not have to pay for the facility, equipment, or labor needed. Resource Allocations: The money and resources saved through contract manufacturing can be redirected towards other company operations. Faster Lead Times: Hiring a contract manufacturer reduces manufacturing time. This improves market speed, delivery time, and customer service. Quality Control: Contract manufacturers are likely to have their own quality control processes in place, which allow them to spot counterfeit or damaged products early on. Advanced Skill Sets: Companies can benefit from the skills they may not possess, but the contract manufacturer does. Contract Manufacturing Examples Here are some examples of contract manufacturing companies that offer manufacturing services to other businesses and work on full-service outside manufacturing projects. Example 1: Kimball Electronics Group Kimball Electronics Group provides a comprehensive range of electronics manufacturing services, including engineering, prototyping, testing, electronic data interchange (EDI), new product introduction, and repair depot services. Soldering, assembly, reflow, de-paneling, flux application, inspection, screen printing, testing, and rework are all processes used in their manufacturing. Example 2: Scapa Healthcare Scapa Healthcare, headquartered in Knoxville, Tennessee, provides contract manufacturing services for medical and cosmetic products. Their portfolio of products includes sunscreen, silicone medical adhesives, and innovative materials. Additionally, the organization provides development, packaging, and logistics services. Things to Consider While Selecting a Contract Manufacturing (CM) Partner You need to know how to identify the ideal contract manufacturer for your business to accelerate production and produce high-quality items. Below, we've listed some of the most important things to keep in mind while looking for an outsourced manufacturing partner for your company. Competency Understanding a contract manufacturer's (CM) capabilities in terms of logistics and fulfillment is critical. Is your potential CM able to meet shifting product demands? How to use the CM's services? You may need one or more services from CM for your product, so always examine their capabilities or develop a list of their services and see which ones are valuable for you. Knowledge or Prerequisite A qualified, experienced, subject matter expert CM always correctly understands the requirements and delivers the services as per expectations and within the time frame specified in your production schedule. Always inquire about their qualifications or certificates in the places where your product will be manufactured. Compliance Any contract manufacturing plan must have an agreement or compliance clause. Always inquire about the compliance procedure and thoroughly understand the terms and claws to avoid future issues. Workforces Verify your possible contract manufacturer's personnel count. Is it easy to talk to them? Is labor skilled enough to meet the product's goals? It is critical for large-scale production and production, requiring swift responses. Any work force shortage might cause production delays. Gear & Expertise Check for machines and equipment as well as human labor in your possible CM. Many CM lease equipment to complete a project. So always check how the CM will organize the essential equipment for your project. Expertise in using the equipment is also necessary. Verify which machines were used and whether or not professionals were involved. Whereabouts The CM's location is the main factor to check. Because the CM may have numerous plants, knowing which plant is assigned to your product is essential to knowing every aspect of its production. Also, the assembly location must allow you to visit and inspect the manufacturing between cycles. Business Stability Finding a reliable contract manufacturer with solid financial backing and market roots is essential to avoid market scams. However, you must also analyze and solve risk factors like equipment failure, supplier capacity, and unreasonable expectations. Selection Myths of Contract Manufacturing Partner Once you've produced a list of shortlisted contract manufacturing partners who meet all of the criteria described in the preceding heading, you can proceed by following the steps below to select the best contract manufacturing partner. Look for Who is Willing to Invest in Your Business Incorrect. The objective is to find a vendor prepared to manufacture at a loss. A contract manufacturer's strength is that they can stay competitive and make a profit for both parties. Focus on Tier 1 CM Partners from the Market This one is indeed not acceptable. Tier 1 is a financial phrase used to separate large corporations from smaller ones. You want a contract manufacturer who understands your business and your needs. Don't worry about the manufacturing partner's size. Go Ahead with the One Who Offers the Best Services at the Lowest Price Trying to get the cheapest quote isn't always the best idea. You should get a quote from your contract manufacturing partner, but the quote may not always reveal the complete story. Cost per unit frequently captures approximately 75% of total supply chain cost. Some contract manufacturers charge the OEM the remaining 25%. Consider the complete picture while selecting a CM partner. Final Words Manufacturers use contract manufacturing to meet their commercial goals. Therefore, contract manufacturing is a win-win situation for both industrialists and contract manufacturers. Finding the proper contract manufacturing partner for your company is not straightforward, but our brief guide can help you identify the right manufacturing partner. FAQ What makes a good contract manufacturer? The most significant contract manufacturing firms are more than just supply chain partners. They recognize and treat your items as if they were their own, are meticulous in their operations, and are concerned with quality and capital. What differentiates contract manufacturing from outsourcing? A contract is a legally binding arrangement. It involves two or more parties. For example, outsourcing is outsourcing some tasks to an outside organization under a contract agreed upon by both parties. What's the difference between contract manufacturing and licensing? Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What makes a good contract manufacturer?", "acceptedAnswer": { "@type": "Answer", "text": "The most significant contract manufacturing firms are more than just supply chain partners. They recognize and treat your items as if they were their own, are meticulous in their operations, and are concerned with quality and capital." } },{ "@type": "Question", "name": "What differentiates contract manufacturing from outsourcing?", "acceptedAnswer": { "@type": "Answer", "text": "A contract is a legally binding arrangement. It involves two or more parties. For example, outsourcing is outsourcing some tasks to an outside organization under a contract agreed upon by both parties." } },{ "@type": "Question", "name": "What's the difference between contract manufacturing and licensing?", "acceptedAnswer": { "@type": "Answer", "text": "Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises." } }] }

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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." } }] }

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Spotlight

Yanfeng Automotive Interiors

Yanfeng Automotive Interiors (YFAI) is the global leader in automotive interiors. YFAI is redefining how people relax, work and play in their vehicle interiors today and decades from now. Headquartered in Shanghai, the company has 114 manufacturing plants and technical centers in 20 countries and more than 33,000 employees globally. They design, develop and manufacture interior components for all automakers.

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