Article | October 13, 2021
The electronics manufacturing business is adopting new technologies to create smart electronics manufacturing products for its consumer base. Next-generation technologies are shaping the future of the manufacturing industry by enabling it to create technologically advanced and user-friendly products. Matt Mong, one of the manufacturing industry's leading professionals, stated in an interview with Media7,
“Be Different. Don’t position your product in an existing category. Instead, create your category and make the competition irrelevant and obsolete.” – Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca.
The year 2022 will be a year of advancement and development for the electronics manufacturing industry.
So, manufacturers are eager to embrace new technologies and produce more innovative, more user-friendly goods that become part of consumers' daily lives and meet their needs. To make the manufacturing process manageable and deliver advanced products, we will look at the top five trends flourishing in the electronics manufacturing industry.
Top Five Electronics Manufacturing Industry Trends
Future manufacturing technologies are transforming the electronics manufacturing industry's processes and products. Let's look at the top electronics manufacturing industry trends for 2022, which will propel the sector to new heights of technological advancement.
Utilizing the Benefits of the Internet of Things
The Internet of Things is being used in both the manufacturing process and the products themselves. It enables electronic manufacturing products and processes to become more intelligent and performance-driven to fulfill business and customer needs.
In electronics manufacturing, the Internet of Things (IoT) enables businesses to solve common production challenges such as product quality issues, changing demands, and a complex global supply chain. As a result, it increases productivity and efficiency while reducing human effort.
Industrial units may gather and analyze real-time data and processes using IoT-based sensor systems. Additionally, it assists organizations in managing data and transforms traditional manufacturing into an intelligent manufacturing unit.
Using an ERP System to Maintain the Company's Competitive Edge
ERP (Enterprise Resource Planning) is a centralized management system for all operational and business activities. The software automates all manufacturing processes and enables the electronics manufacturing sector to achieve higher precision throughout the manufacturing process and product delivery.
ERP has the potential to boost productivity, improve efficiency, decrease expenses, and increase profitability. ERP enables electronics manufacturers to forecast, plan, modify, and respond to changing market demands. By using an ERP system in your manufacturing unit, you may expand your business and increase revenue.
Making Use of Big Data
The electronics manufacturing industry benefits from the use of big data to make critical business decisions. It aids in the integration of previously isolated systems to provide a comprehensive view of industrial processes. It also automates data gathering and processing, allowing for more excellent knowledge of each system individually and collectively.
Big data also assists manufacturers in discovering new information and identifying trends, allowing them to optimize operations, improve supply chain efficiency, and find variables that impact manufacturing quality, volume, or consistency. In addition, big data assists the electronics manufacturing industry in keeping up with the rapidly changing digital world.
Using AR and VR to Create Consumer-friendly Goods
AR and VR are future manufacturing technologies that are changing electronics manufacturing products and driving growth. Robotics is a crucial usage of virtual reality in electronics production. Manufacturers may use powerful virtual reality software to design goods. This implementation of virtual reality software reduces production errors and saves time and money.
AR in electronics manufacturing allows product developers to generate interactive 3D views of new products before production. AR and VR are part of Industry 4.0, the digital revolution of conventional electronics production units.
Adoption of 3D Printing on a Wide Scale
One of the essential advantages of today's electronics 3D printing is that companies can quickly prototype PCBs and other electrical devices in-house. In addition, 3D printing has simplified the electronics manufacturing process, and it is currently being utilized to manufacture multilayer printed circuit boards. It uses material jetting technology to spray conductive and insulating inks onto the printing surface.
Let's look at an example of an analogy that worked for Jinzhenyuan - The Electronic Technology Co. Ltd., managed by Mr. Huang Runyuan, Jinzhenyuan's General Manager, and based on the concept of Industry 4.0. (Reference: Forbes)
Jinzhenyuan - The Electronic Technology Co. Ltd. Takes a Significant Step Forward with Industry 4.0
Jinzhenyuan - The Electronic Technology Co. Ltd., formed in 2012, sells its products globally. In addition, it manufactures cellphones, computers, cars, and a variety of other consumer electronics. Due to changing market needs, the firm planned to upgrade its production facility to industry 4.0 by the end of 2017 to participate in smart manufacturing.
The company increased production efficiency, shortened production cycles, and cut costs due to the digital revolution. Today, Jinzhenyuan is regarded as a model of digital transformation in the community in which it works. Let’s observe the statistics for Jinzhenyuan following the deployment of Industry 4.0.
32% improvement in total production efficiency
33% cost reduction
41% decrease in R&D to production cycles
51% reduction in substandard parts rate – from 3,000 to 1,500 per million
The electronics manufacturing sector is on the verge of a digital revolution that will improve the production process efficiency and cost-effectiveness. Many of the world's biggest firms, like Apple, Microsoft, Hitachi, and Saline lectronics, are developing future agile factories to keep up with the world's digital transformation. Future manufacturing technology will help your manufacturing company make the manufacturing process more efficient and boost the business revenue.
What are the future electronics technologies?
Smart grid solutions, wearable technology devices, prefabricated goods, the Internet of Things, and robots are some of the future electronics innovations that will propel the business forward.
Is the supply chain benefiting from new technology trends?
Yes, supply chain management benefits from smart technology as well. Trucks equipped with cutting-edge technologies can get real-time data on the weather and road conditions ahead of time. It contributes to the supply chain process's reduction of possible risks.
Which manufacturers are implementing the industry 4.0 concept in their factories?
Whirlpool, Siemens, Hirotec, Tesla, Bosch, and Ocado, among others, have turned their traditional factories into digitally smart ones that incorporate all of the cutting-edge technology necessary to improve and optimize the production process.
"name": "What are the future electronics technologies?",
"text": "Smart grid solutions, wearable technology devices, prefabricated goods, the Internet of Things, and robots are some of the future electronics innovations that will propel the business forward."
"name": "Is the supply chain benefiting from new technology trends?",
"text": "Yes, supply chain management benefits from smart technology as well. Trucks equipped with cutting-edge technologies can get real-time data on the weather and road conditions ahead of time. It contributes to the supply chain process's reduction of possible risks."
"name": "Which manufacturers are implementing the industry 4.0 concept in their factories?",
"text": "Whirlpool, Siemens, Hirotec, Tesla, Bosch, and Ocado, among others, have turned their traditional factories into digitally smart ones that incorporate all of the cutting-edge technology necessary to improve and optimize the production process."
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.
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.
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.
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.
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.
Article | April 6, 2021
As the pandemic upended plans for marketing and sales in 2020, it forced marketers in the manufacturing industry to adopt the tactics of the remote world. Many of them are still wondering how they can focus on driving business growth in 2021. Intent data has undoubtedly added some spice to the season of online marketing.
Research conducted by B2BecNews on 110 businesses found that 59.5% of business buyers research two to three websites before buying while 29.7% research up to seven websites.
The “How” of Intent Data
Intent data allows businesses to channel their expenditure to the leads that matter the most. It boosts sales and encourages marketers to be smarter by doing more in less time.
Moreover, b2b buyers now tend to look for an immersive digital experience and are likely to conduct more and more searches before engaging with a brand. Such digital activity will tell you what a visitor’s intentions are called the intent data.
To drive your business, here are some tried-and-true and unexpectedly productive ways to scale up your marketing and sales game using intent data.
Improve your Sales Pitches/Pipelines
When you are expanding or redefining your business because you want to target a new market or audience, third-party intent data is a decent place to start. Through intent data, your sales team can build a year’s pipeline by reaching target audiences.
To get the value of your sales, you can use intent data categorizing with a professional group, seniority, functional area, business size, and more for targeted prospects. And if your data provides contact information, your sales team will have an even deeper understanding of the dynamics of prospects’ buying activities.
Moreover, learning about the fact if a CEO or a random visitor visits your website creates a difference between a quality lead and a generic one. There are times when organizations don’t vigorously look for a product. But with the right content force, you can direct them towards a purchase decision. This way, you can get a chance to pitch and improve sales.
So, how can content pitch sales?
The next point explains the importance of nurturing content on your website.
Nurture with Personalized Content
Once you target new prospects, you can nurture them with excellent and informational marketing content. These can be in various forms like articles, blogs, advertisements, social media, infographics, and more.
Personalization results better in the sea of marketing (digitally or manually). Since the pandemic has pushed the digital world extensively, personalization is on a hike. Companies that personalize their marketing strategies to communicate are improved by 86% in customer relations, have higher conversation rates, and observed improvement in businesses.
To personalize your content, you have to look at intent data and search for the prospect’s interests. After your research, you can create content for them. Paying attention to contextual information will improve the prospect’s experience, causing them to turn into your client.
After you create personalized content, what will happen next? Find out ahead.
Generate High-Quality Leads
Intent data tells you how far each prospect has progressed. A combination of intent and context data helps with lead scoring, which shows you the quality of leads.
A visit to your website by an intern is somewhat different from a CEO’s visit.
Consuming content on general industry information differs in value from product-specific content that provides information on websites.
When a visitor compares prices, it intends to buy, opposite to a visitor who bookmarks pages.
Besides, intent data for manufacturers also tells:
Channels to target your prospects actively.
Content to encourage
Offers to serve
The timing of each lead nurturing action
Improve Account-Based Marketing Campaigns
Account-based marketing and intent data go hand-in-hand. So, it would be best if you worked through every possible path to collect more information about your prospects. This way, it will help you take a focused approach. Once you identify the interested prospects, you can focus your time and energy on those accounts and expand your reach.
Intent data helps you to find more in-market customers. They can score leads with better precision and re-shape your marketing campaigns by showing up with the right message at the right time.
Include Marketing Automation Operations
Implementing marketing automation technologies with intent data will save your team's time. As they usually spent analyzing data entry by automatically setting alerts when buyers intend to show their interest.
Why is Intent Data for Manufacturing Becoming Crucial for Future?
With marketers, or say, manufacturing marketers, it's always vital to drive revenue for business and get ahead with trending marketing paths. For this, knowing intent of prospects is a must to gain success.
Knowing a prospector’s behavior can help your marketing team target a specific profile and create personalized content on demand to increase their purchase decision. After all the information is collected, prospects become more knowledgeable and informed of the decision they make. More information attracts more potential buyers when they are informed conveniently at the right time and manner. In this entire process, you gain an increased ROI.
These aspects are incomplete without intent data for manufacturers, which targets numerous data and creates an easy baseline so that marketers can learn precisely about potential prospects’ behaviors. Intent data can be used for the future through a particular pattern. Generic marketing campaigns delivered to a random audience will simply shut down your business. Because now, the users expect to see content that’s valuable to them.
Therefore, intent data for manufacturers is the key to providing better answers and solutions and allowing better marketing budgets. Both of these lead to more conversions which results in more revenue.
Frequently Asked Questions
How is intent data collected?
The collection of intent data is not new to marketers. It has gained prominence only after the pandemic. The data is gathered through the website. Its analysis is done by tracking visitors to the website, clicks, chatbots, duration of stay, and information search.
How can manufacturers leverage intent data?
The steps to leverage are:
1. identify the prospect and what it wants to search or trying to search. It could be keywords, trending words or phrases, and more.
2. Create quality yet informational content following the prospects’ interest.
3. Now, it’s time to promote content with the right on different channels to attract prospects.
What are the intent data tools for manufacturers?
Some good intent data tools manufacturers can use are:
What is buyer intent data for manufacturers?
Through buyer intent data, your sales team easily reaches out and gets engaged with the right prospect at the right time. Manufacturing marketers use it to plan can create effective campaigns to target potential ones and convince them to buy.
"name": "HOW IS INTENT DATA COLLECTED?",
"text": "The collection of intent data is not new to marketers. It has gained prominence only after the pandemic. The data is gathered through the website. Its analysis is done by tracking visitors to the website, clicks, chatbots, duration of stay, and information search."
"name": "HOW CAN MANUFACTURERS LEVERAGE INTENT DATA?",
"text": "The steps to leverage are:
1. identify the prospect and what it wants to search or trying to search. It could be keywords, trending words or phrases, and more.
2. Create quality yet informational content following the prospects’ interest.
3. Now, it’s time to promote content with the right on different channels to attract prospects."
"name": "WHAT ARE THE INTENT DATA TOOLS FOR MANUFACTURERS?",
"text": "Some good intent data tools manufacturers can use are:
"name": "WHAT IS BUYER INTENT DATA FOR MANUFACTURERS?",
"text": "Through buyer intent data, your sales team easily reaches out and gets engaged with the right prospect at the right time. Manufacturing marketers use it to plan can create effective campaigns to target potential ones and convince them to buy."
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:
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.
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.
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.