Article | December 14, 2021
Do manufacturing businesses require Business Intelligence (BI)? The answer is YES. Manufacturing is one of the most data-intensive businesses, producing massive amounts of data ranging from supply chain management to shop floor scheduling, accounting to shipping and delivery, and more.
All of this information would go to waste if not properly categorized and utilized. Scrutinizing and analyzing your data with business intelligence will help you become a more efficientand productive organization. Your organized data can show you where the gaps or inefficiencies are in your manufacturing process and help you fix it.
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 at Microsoft
BI has the potential to improve the operations of an organization and transform it into an organized one. According to Finances Online research, more than 46% of organizations are already employing a BI tool as a significant part of their company strategy, and according to Dresner Advisory Services research, 8 in 10 manufacturers who use BI for analytics have seen it function successfully.
How Manufacturing Operations Are Improving with Business Intelligence?
As revealed by the BI statistics above, we can see that business intelligence is critical in manufacturing. To further illustrate how business intelligence supports the manufacturing industry, let's look at some of the business intelligence benefits that are making a difference in the manufacturing industry.
Advances Operational Efficacy
While modern enterprises create massive amounts of data, not all of this data is relevant. Today's business intelligence solutions take all of the data from your organization and transform it into an easily comprehensible and actionable format. It enables you to minimize or fix errors in real-time. Additionally, it helps you to forecast raw material demand and assess procedures along the supply chain to ensure maximum efficiency.
Allows for the Analysis and Monitoring of Financial Operations
Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis, BI enables you to manage production costs, monitor processes, and improve value chain management.
Assists in the Management of Your Supply Chain
Manufacturing companies engage with various carriers, handling these multiple processes can be complicated. BI enables manufacturing companies to have more accurate control over shipments, costs, and carrier performance by providing visibility into deliveries, freight expenditures, and general supplies.
Contributes to the Reduction of Inventory Expenses and Errors
Overstocks and out-of-stocks are substantial barriers to profitability. Business intelligence can assist you in tracking records over time and location while identifying issues such as product faults, inventory turnover, and margins for particular distributors.
Determines the Efficiency of Equipment
Several factors can cause inefficient production. For example, errors with equipment due to improper installation, maintenance, or frequent downtime can reduce production. So, to keep industrial operations running well, one must monitor these factors.
Manufacturers can maintain their machines' health using data analytics and business intelligence. It provides real-time information about your production lines' status and streamlines production procedures.
How Business Intelligence Helped SKF (SvenskaKullagerfabriken) to Efficiently Plan Their Future Manufacturing
SKF is a key supplier of bearings, seals, mechatronics, and lubrication systems globally. The company posses its headquarter in Sweden and has distributors in over 130 countries.
Due to SKF's extensive worldwide reach and product diversity, they constantly need to forecast market size and demand for their products to modify their future manufacturing. Generally, SKF experts developed and kept their forecasts in traditional and intricate excel files. However, the efforts of maintaining and reconciling disparate studies were excessively high. As a result, SKF used require days to generate a simple demand prediction.
Later, SKF integrated its business data assets into a single system by utilizing business intelligence in production. Following that, they could swiftly begin sharing their data and insights across multiple divisions within their firm. They are now able to aggregate demand estimation fast and does not face cross-departmental issues about data integrity for the vast number of product varieties they manufacture.
This intelligent data management enabled SKF to plan their future production operations efficiently.
Business intelligence in manufacturing makes a big difference in the organization's entire operations. Given the benefits of business intelligence in manufacturing, a growing number of manufacturers are implementing it in their operations.
According to Mordor Intelligence, Business Intelligence (BI) Market was worth USD 20.516 billion in 2020 and is anticipated to reach USD 40.50 billion by 2026, growing at a 12% compound annual growth rate throughout the forecast period (2021-2026).
Hence, we may say that the business intelligence is crucial for manufacturing and is booming, thanks to its enormous potential and the numerous benefits it provides to various businesses.
Why is business intelligence so important in manufacturing?
Organization intelligence may assist businesses in making better decisions by presenting current and past data within the context of their business. Analysts can use business intelligence to give performance and competitive benchmarking data to help the firm run more smoothly and efficiently.
What value does BI add to manufacturing?
Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis enables you to manage production costs, monitor processes, and improve value chain management.
What is business intelligence's key objective?
Business intelligence is helpful to assist corporate leaders, business managers, and other operational employees in making more informed business
Article | July 27, 2021
Filmmaking is manufacturing. To date, no one has made the direct correlation between the two. As many entertainment professionals know, the budget gap between indie productions and big studio blockbusters continues to grow. The day of mid-budget, independent (indie) movies is disappearing as fast as the middle class in the American economy. According to newbiefilmschool, the average budget is barely at $2 million for these pictures and producers have been forced to adapt by discovering creative ways to decrease costs, while maintaining a high production values for a sophisticated audience with high expectations.
Though there are many ways to cut costs, any business professional will agree to go with the options that bring down the budget the most. Just as dog is man’s best friend, here are three reasons why manufacturers have become the same for a filmmaker by saving money and time for every type of production.
Film equipment manufacturers
No long may a film lack quality in picture, sound, and bad acting. Once acceptable, these older movies were produced with the technology and film equipment constraints and from limited funding. Film equipment manufacturers from cameras, sound equipment, and computers cost less to achieve high production values. Film equipment companies face increasing competition, which has driven down the purchase price. Better equipment with significant technology improvements has reframed the indie film industry with high-level sound and image capture quality.
The transition of cameras from film to digital was a notable shift for manufacturers. Many industry-insiders believe that digital is free, and film is expensive, but there is more the manufacturing construct. Digital cameras, when compared to film cameras in the same market price bracket, are much more expensive than analog counterparts. It is true that film costs money and is single-use. Digital memory cards are relatively expensive and can be reused. Film also needs to be developed and there is a cost associated with that production cost. There are other ways in which digital modalities save filmmakers.
Across all industries, efficiency always wins. Innovative manufacturers have developed machines to make numerous jobs easier for everyone. Machines have been assisting filmmakers since the invention of the camera. AI (artificial intelligence) is poised to change film even more and continues to augment human creativity. Storytellers work with computers during every process of creating a motion picture which has sped up the time it takes to complete each-step in film making.
Automating pre-production processes, such as creating a budget and writing a script, is analogous to an ERP (enterprise resource planning) software for a traditional manufacturing operation. The Movie Magic budgeting software by Entertainment Partners has made creating a budget more efficient and accurate. Screenwriter programs vary from the downloadable Final Draft, and the purely cloud based, Celtx, are the reasons automated scriptwriting is the norm. These programs also automatically format writing to industry standards, facilitating the creative process.
Automation in post-production is equally advanced through editing software for video, sound, effects, and colors all the way to distribution and promotional content. Editing footage from digital rather than film saves time and money. Industry favorites include Adobe Premiere Pro and Apple’s exclusive Final Cut Pro and are used on almost all well-known movies and TV shows.
The impacts of COVID-19 on entertainment manufacturers
Without question, the pandemic has affected every industry by creating an unanticipated production standstill. Entertainment manufacturers have sacrificed countless productions, lost billions of dollars, and major talent agencies have furloughed hundreds of employees. This negative impact is not just difficult for indie filmmakers, big studios are suffering just as much with production delays and cancellations still happening as this article goes to press.
Any way back to the set is better than no set at all. A new necessity for productions to safely reopen includes epidemiologists and other public health specialists; they provide detailed strategies dealing with large crews who work in cramped spaces, makeup artists who get face-to-face with actors who kiss, hug, and fight on set. These COVID-19 consultants rely on the manufacturing industry for PPE supplies and carry out regular PCR tests. Face coverings and hand sanitizing stations have also become the norm, just like most other manufacturing operations.
Article | July 13, 2021
The start of the new year is a great time to critically take a look at your processes and see how you can improve. Here at FANUC, we have identified four key strategies manufacturers can use to boost their efficiency!
Automation can increase production and efficiency no matter the type or complexity of the manufactured products. With space at a premium in most production facilities, many job shops look for machine tending robots that are easy to integrate and have a small footprint. FANUC's robots and software make it easy to connect the equipment and improve throughput as well as overall equipment effectiveness. Quick and Simple Startup of Robotization (QSSR) allows up to four machine tools to be connected with a robot using just one Ethernet cable.
Use the Latest and Greatest Machining Practices and Technology
Many manufacturers leave performance on the table due to outdated processes and programming. Are you getting the most out of your machining? Now’s the time to look at the advantages in new CNC technology. Because new controls have greater processing speed and can implement advanced algorithms, they can do a lot more for your operations. Moreover, the interfaces have become simpler and more intuitive, so they are easier to use than ever before.
Digitize Your Process
New digital tools are breathing innovation and life into increasingly more areas of manufacturing, including the application of digital twins in the machining industry. Digital twins provide virtualization of the machine, control and manufacturing process. Digitalizing traditional manufacturing processes have the potential to make operations more efficient by proving out production processes in the virtual world. That means less waste, more efficiency and a more equipped workforce.
Upgrade Your Shop with a CNC Retrofit
Do you have legacy equipment? Running older machinery can have hidden costs, such as taking the time to source and find older replacement controls leading to significantly longer total downtime and production losses. However, scrapping old equipment and starting new, might be too expensive, especially when factoring in tooling, fixturing, rigging and foundation. Plus, new machines may require more training for staff. A CNC retrofit, with new FANUC CNCs, industrial PCs, servos and cabling, can speed up processing and reduce cycle time by as much as 50 percent.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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"name": "What differentiates contract manufacturing from outsourcing?",
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