Manufacturing Digitalization That Works

TIMOTHY S. MATHENY| November 11, 2019
MANUFACTURING DIGITALIZATION THAT WORKS
Industry 4.0, Industrial Internet of Things, connected enterprise, and smart manufacturing, among others, are all descriptive of applying digital technologies to manufacturing. Often, digitalization is presented as so powerfully good that it just needs to be done, but most are generally skeptical, asking, Exactly how is this going to help me perform better?

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Skeleton Technologies is the global leader in ultracapacitor-based energy storage. We deliver reliable solutions across industry for customers with needs for high power, high energy, and long lifetime energy storage. Through the use of patented ‘curved graphene’ we have achieved global breakthroughs in ultracapacitor performance.

OTHER ARTICLES

AGV ROI Starts with a Delivery Commitment

Article | January 4, 2022

So much emphasis has been placed on features, advantages, and benefits; too little attention has been paid to delivery dates. The best automation solution on paper means nothing if it cannot be delivered in 2022. Selling the sexy sizzle of new, clever, even remarkable AGVs means nothing if manufacturers and distribution centers cannot take delivery of the product until 2023. Throughout industrial manufacturing and distribution the lead time from many AGV manufacturers is more than a year. That means product ordered in Q1 2022 will not be delivered until the following year. That is an absurd lead time and reflects poor planning and unnecessary supply chain constraints.

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Five Lean Manufacturing Principles to Empower Your Manufacturing Business

Article | December 16, 2021

Lean manufacturing is an operational approach used to create value. Businesses adopt lean manufacturing to improve productivity, reduce waste, increase customer value, and employee satisfaction. Many businesses are accelerating their adoption of lean principles and practices due to the emergence of the industry 4.0 transformation. As a result, companies such as Caterpillar, Intel, Textron, Parker Hannifin, and John Deere are all reaping the benefits of lean manufacturing. So, where did the idea of "lean manufacturing" first originate? In this article, you'll learn about the origins of lean manufacturing and its key principles. The Origins of Lean Manufacturing The principles of lean manufacturing were developed in Japan in the mid-20th century. Toyota, a famous Japanese automaker, experienced major delivery issues at the time. Its production chains were excessively long; thus it couldn't supply enough products on time. As a result, Toyota needed a new Performance measurement system. The company's managers identified a solution. They created a new project management method called the Toyota production system. Its basic idea was to improve product distribution by reducing waste. It was a good concept. It helped the company shorten manufacturing chains and deliver products faster. Toyota's production method created a simple and effective waste definition. Any step that did not improve the end product's functionality was called a waste. Later, other manufacturing industries adopted the system. It was renamed as lean manufacturing. It's now a global phenomenon and is used by large and small businesses worldwide. When should you implement the Lean Manufacturing Method in your business? Lean is a waste-reduction methodology, approach, and a lifestyle. While it is commonly used in manufacturing, lean techniques are applied to reduce waste while keeping high quality in any business. Waste reduction of 80% plus Reduced production expenses by 50% Decreased inventories by 80-90% Producing quality items is 90% less expensive. Workforce productivity improved by 50% If you want your business to get the above benefits, you need to adopt lean manufacturing principles. Five lean Manufacturing Principles Lean manufacturing benefits businesses in multiple ways, and this lean lifestyle has the potential to empower any organization and increase its market competitiveness. So, let us observe the five fundamental principles of lean manufacturing. Value For the first principle of defining customer value, it is vital to understand what value is. For customers, value comes from what they're willing to pay for. The customer's actual or hidden demands must be discovered. Customers are not aware of what they want or cannot express it. When it comes to new items or technologies, this is a regular occurrence. Assume nothing; ask about the pain points being experienced and then craft a unique value proposition. Never force a solution into a problem that does not exist.” – Thomas R. Cutler, President & CEO at TR Cutler, Inc. For example, you can use various methods to find out what customers value, such as surveys and demographic information. With these qualitative and quantitative methodologies, you may learn more about your clients' needs, their expectations, and their budgets. Value-Stream Identifying and mapping the value stream is the second lean principle. By starting with the consumer’s perceived value, all activities that contribute to that value may be identified. Waste is anything that does not benefit the client in any way. It can be divided into two categories: non-value-added and unnecessary waste. The unnecessary waste should be removed, while the non-value-added should be minimized. You can ensure that clients get exactly what they want while minimizing the cost of creating that product or service by removing unnecessary processes or steps. Flow The next operations must proceed smoothly and without interruption or delays after removing wastes from the value stream. Value-adding activities can be improved by breaking down tasks, reorganizing the manufacturing process, distributing the workload, and educating personnel to be flexible and multi-skilled. Pull The fourth lean principle requires a pull-based manufacturing system. Traditional production systems use a push system, which starts with purchasing supplies and continues manufacturing even when no orders are placed. While push systems are simple to set up, they can result in vast inventories of work-in-progress (WIP). On the other hand, a pull method pulls a customer's order from delivery, causing new items to be made and additional materials to be acquired. Kanban, one of the lean manufacturing tools, can help organizations develop a pull system to control material flow in a production system. An efficient pull system maximizes available space, reduces inventory, eliminates over-and under-production, and eliminates errors caused by too much WIP. Perfection While completing Steps 1-4 is a great start, the fifth and possibly most critical step is incorporating lean thinking and process improvement into your organizational culture. As benefits accumulate, it is vital to remember that lean is not a static system that requires continuous effort and awareness to perfect. Each employee should get included in the lean implementation process. Lean experts sometimes state that a process is not truly lean until it has undergone at least a half-dozen value-stream mapping cycles. How Nike Demonstrated the Benefits of Lean Principles Nike, the world-famous shoe and clothing powerhouse, has embraced lean manufacturing principles and practices. Nike experienced less waste and increased consumer value, as did other businesses. It also shared some unexpected benefits. It is proven that lean manufacturing can minimize terrible labor practices at a company's overseas manufacturing unit by up to 15%. This result was mostly due to implementing the lean manufacturing practice of valuing the workers more than earlier routine labor practices. It provided greater significance to an employee and, as a result, greater significance to the organization as a whole. Final Words Implementing lean manufacturing principles is a good way to run any organization. Businesses that build their operations on the two pillars of lean manufacturing, constant improvement, and personnel respect, are well on their way to becoming a successful and productive organizations in the modern era. To become a lean company, an organization must fully grasp the benefits and added value that it may get by adopting lean manufacturing principles. FAQ What is Five S's of lean manufacturing? The 5S of lean manufacturing are Sort, Set in Order, Shine, Standardize, and Sustain, and they give a framework for organizing, cleaning, developing, and maintaining a productive work environment. What are the two pillars of lean manufacturing? Lean, as modeled on the Toyota Way values, has two pillars, first is ‘Continuous Improvement’ and second is ‘Respect for People’. Why are lean principles beneficial for any business? Lean manufacturing is a business strategy that has proven to be highly successful since it can help you decrease costs, remove waste, enhance production, maintain excellent quality, and thus increase business profit significantly.

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Egyptian Warehouse Automation Leader Solves North American Supply Chain Disruption Challenges

Article | January 20, 2022

COVID drove many supply chain disruptions in 2021. This was particularly true for companies using Asia to source product. Sadly, the bottleneck continues in 2022, but there are new channels now available to serve the North American material handling market. System integrators, dealers, and distributors in the space cannot work with vendors who offer slow delivery timetables. Customers want shelving, racking, conveyors, and robotics no later than Q3 2022. MODEX 2022 provides answers to solve the supply chain disruption MODEX 2022 (March 28-31, 2022) in Atlanta, will once again bring many global manufacturers to the event. Nearly 800 exhibitors and 40,000 attendees will respect COVID health and safety protocols while learning about much needed solutions from a variety of global manufacturers. For the first time there is an African company exhibiting at MODEX: LinkMisr International. Booth #C5475

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Why Manufacturing Companies Must Consider Business Intelligence

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. Final Words 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. FAQ 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

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Spotlight

Skeleton Technologies

Skeleton Technologies is the global leader in ultracapacitor-based energy storage. We deliver reliable solutions across industry for customers with needs for high power, high energy, and long lifetime energy storage. Through the use of patented ‘curved graphene’ we have achieved global breakthroughs in ultracapacitor performance.

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