The Importance of Manufacturing in Every Country

MARK WILSON| July 26, 2019
THE IMPORTANCE OF MANUFACTURING IN EVERY COUNTRY
Manufacturing remains a critical force for both developed and developing countries, however, its role is changing and could play an even greater role in stimulating economies through the adoption of innovative technology. But the reality is that many manufacturing processes are still transitioning from traditional to modern practices that largely incorporate automation.

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Polypack, Inc.

For over 58 years Polypack has been a leader in the packaging industry, manufacturing premium quality shrink wrap and end-of-line machinery. Polypack's world class machine lines encompass everything from clear film bundling to print-registered retail packs; including total closure, form-fill-seal machines, tray loader/formers and case packers.

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Did You Read about the Manufacturing Challenges for 2022?

Article | December 8, 2021

The new manufacturing industry outlook for 2022 is what businesses desire. Due to COVID-19, the sector has seen several ups and downs in recent years. But the industry overcame the most difficult situation by adopting innovations as their working hands. But all this upgrading and digitalization in manufacturing isn't for everyone. Some manufacturers may struggle with this change, while others may not. So, taking into account all industry segments, we have compiled a list of potential manufacturing challenges for 2022. “Many companies simply are not willing to change or think they are done once they make a change. But the truth is that technology, consumer demands; the way we work, human needs and much more are constantly changing.” – Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft The summary of manufacturing industry challenges and industry outlook for 2022 are presented in the stats below. According to the National Association of Manufacturers (NAM), four million manufacturing jobs will likely be needed over the next decade, and 2.1 million will likely go unfulfilled unless we motivate more people to pursue modern manufacturing occupations. According to PTC, 70% of companies have or are working on a digital transformation plan. According to Adobe, 60% of marketers feel technology has increased competitiveness. The statistics show that while digitalization facilitates the process, it also poses several challenges that must be addressed in the coming years. Let's explore what obstacles manufacturers may face in 2022. The Manufacturing Industry Challenges in 2022 The manufacturing business has had a difficult few years as a result of the current economic downturn, and 2022 may not be even that smooth. Thought, technology, and current trends make the operations of upscale manufacturers easier, but not everyone is on the same page. Let's look at some of the manufacturing challenges that businesses will face in the next year. Skilled Labor Shortage The manufacturing industry is facing a workforce shortfall as a skilled generation prepares to retire. Industry experts say that by 2025, there will be between 2 and 3.5 million unfilled manufacturing jobs. As a result of the advancement of new technologies, manufacturing organisations are finding themselves with fewer personnel. They do, however, require individuals with a diverse range of abilities, such as mathematicians and analytic thinkers, to accomplish the tasks with precision. Specific manufacturing tasks have been automated to save time and money. Industry has adopted machine sensors to capture large amounts of data. With this kind of innovation, the industry's job structure is changing and the desire to hire an untrained or trainable workforce is slowly fading in the industry. However, using augmented reality and virtual reality, manufacturers can easily train personnel for the job and save money. Lack of Ability to Mine Data Manufacturing is progressively using IoT. The majority of businesses have already installed or are planning to install Internet of Things machines. These smart machines let businesses collect data to improve production and conduct predictive maintenance. But getting data is a simple task. The difficult aspect is analyzing and aggregating data. Despite possessing the machines, most companies lack the systems to analyze and retrieve the data recorded by the systems. In this way, the industries are missing a vital opportunity. The industry must improve data mining capabilities to make better decisions in real-time. Using IoT for analytics and predictive maintenance is critical. Monitoring technologies can help the sector examine data quickly. It can also help predict an asset's maintenance period. As a result, the industry will move from replacement to predict and fix. Self-service Web Portals That Is Extremely Detailed and Precise Manufacturing businesses usually strive for on-time order delivery and optimum revenue. However, consumer self-service, which has been in the industry for a long time, has never proven to be a simple walk for clients. Clients are frequently required to pick up the phone and contact manufacturers in order to track their orders and receive delivery estimates. This is hardly the service one would expect from a manufacturer, even more so in today's digital era. The term customers in manufacturing include partners, end-users, and subcontractors. These three clients have distinct requirements and concerns about collaborating with the manufacturer. Companies can better serve their customers if their partner and end-customer portals are linked to a central hub which we can mention as self-service web portals. All of the information and updates they need about their orders will be available to them through this new system. They can track, accept and amend their tasks. They'll also use the self–service portal to contact the manufacturer. In this way, manufacturers can better serve their customers. A system like this will ensure that all parties have access to timely information in a digital format. Meeting the Deadline for the Project Product launch timelines are extremely demanding, tight, and stringent. Every project in the assembly line is about cost, time, and quality. Ultimately, these projects are rigorous and well-controlled. Manufacturers who fail to meet deadlines risk losing millions in potential revenues and sales. Due to rigidity and stringent control, companies are less able to change project scopes or make adjustments as projects develop. The majority of initiatives begin with a design commitment. As new facts or change criteria emerge, adjustment flexibility decreases. This can be aggravating for a team that expects high-quality results. Deadlines are always a constraint. Effective Business Digital Marketing Strategy An industry's key digital transformation challenges are driving leads, sales, and MRR through digital channels. Many manufacturing organizations struggle to efficiently use marketing channels like paid media, enterprise SEO, local SEO, content strategy, and social media. In our opinion, one of the most significant issues these organizations have is their digital experience, website design, and overall brand presentation. They can't ignore them if they want to keep enjoying the manufacturing revival. Visibility of the Supply Chain Manufacturers must respond to the growing demand from customers for greater transparency. In order to meet customer demand across the customer experience and product lifecycle, they must first understand that precise and real-time visibility throughout the supply chain is essential. All details must be taken into consideration by the manufacturers. They must be aware of any delays in the arrival of products on the market. Keeping abreast of such developments would give them a leg up in terms of adjusting or rectifying the situation. Final Words Manufacturing industry challenges have long been a part of the industry. However, industry leaders and professionals have always confronted and overcome any challenges that have come their way. The year 2022 will also be a year of achievements, setting new records, and growth for the manufacturing industry, since it will be a year in which it will develop solutions to all of the aforementioned challenges. FAQ What is the future of manufacturing? Manufacturers should start using AI, block chains, and robotics today. The combination of these new technologies will reshape manufacturing. A new workforce capable of augmenting these technologies is developing and will become the future of manufacturing. How will automation affect manufacturing in 2022? When applied properly, automation can greatly assist manufacturing. These benefits include shorter production times, faster and more efficient work than human labor, and lower production costs. How is the manufacturing industry’s market likely to upsurge in the future? According to BCC Research, the global manufacturing and process control market is expected to grow at a CAGR of 6.3 percent from $86.7 billion in 2020 to $117.7 billion in 2025. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is the future of manufacturing?", "acceptedAnswer": { "@type": "Answer", "text": "Manufacturers should start using AI, block chains, and robotics today. The combination of these new technologies will reshape manufacturing. A new workforce capable of augmenting these technologies is developing and will become the future of manufacturing." } },{ "@type": "Question", "name": "How will automation affect manufacturing in 2022?", "acceptedAnswer": { "@type": "Answer", "text": "When applied properly, automation can greatly assist manufacturing. These benefits include shorter production times, faster and more efficient work than human labor, and lower production costs." } },{ "@type": "Question", "name": "How is the manufacturing industry’s market likely to upsurge in the future?", "acceptedAnswer": { "@type": "Answer", "text": "According to BCC Research, the global manufacturing and process control market is expected to grow at a CAGR of 6.3 percent from $86.7 billion in 2020 to $117.7 billion in 2025." } }] }

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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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Business Models for Sustainable Manufacturing

Article | December 23, 2021

Sustainable business strategiesare bringing significant financial and environmental benefits to manufacturers. Sustainable manufacturingcreates goods while minimizing environmental consequences and preserving energy and natural resources. In addition, sustainable production improves the safety of workers, the community, and the products they produce. Allied Market Research projects that the worldwide renewable energy market will reach $1,977.6 billion by 2030, increasing at an 8.4% CAGR. As a result, we can conclude that many businesses are transitioning from traditional manufacturing to sustainable manufacturing. It’s a good time to be a part of the renewable energy industry. New technologies are coming to market every day, and we work in an industry that is trying to solve an enormous challenge. – Susan Stone, Chief Executive Officer at Ubiquitous Energy, Inc., in conversationwith Media 7 Though many organizations are pioneering the sustainable manufacturing approach, we have selected five of the most well-known companies making serious attempts to be sustainable manufacturing companiesby all means. In addition to the list of sustainable manufacturing businesses, this article will discuss the advantages of sustainabilityand how organizations may become carbon neutral. So let's get started. Top 5 Companies with a Sustainable Business Model The following are five manufacturing businessesthat are investing in sustainable manufacturingmethodsacross their production processes to become more responsive to our mother earth. Philips Electronics The company is reducing its environmental effect by engaging with suppliers, taking climate action, and driving the shift to a circular economy. Climate change is a key concern for Philips. So they are rethinking their business strategies and decoupling economic development from environmental and social impacts. They met their aim of becoming 100% carbon-neutral in their operations and procuring 100% of their power from renewable sources by 2020. They intend to obtain over 75% of their total energy usage from renewable sources by 2025 and to reduce CO2 emissions across their whole value chain to meet the 1.5°C global warming state. Schott Sustainability is profoundly embedded in SCHOTT's DNA. It derives from their distinctive business concept, which dates back to 1896. Their sustainability plan includes responsible governance, workers, society, environment, and climate. “Regarding climate change, it is high time to act. Everyone must take responsibility – politicians, companies and society. We are ready to play our part. We want to become climate neutral by 2030.” - Dr. Jens Schulte, Member of the Board of Management with responsibility for the “Zero Carbon” strategy program Long-term thought and responsible behavior are guiding principles of SCHOTT, which is why they care about the environment and climate. They are entering a new era of sustainable management with their “Zero Carbon” strategic program. Long term, they seek to eliminate fossil fuels as soon as technologyallows it. They are focused on the most energy-intensive stage of glass melting to create new solutions. IKEA IKEA's low-cost furniture utilizes a lot of wood. But because the company employs sustainable forestry practices, your new minimalist nightstand didn't cost the globe a rainforest. The business is also investing heavily in solar and wind energy. This year, the corporation intends to increase its already significant expenditures in renewable energy, to reach 100% clean energy by 2020. It also leads in offering cleaner, greener products. Nike In addition to encouraging people to walk, this footwear manufacturer uses recycled aluminum frames in its headquarters in the Netherlands, and underground energy storage to reduce its carbon footprint. Moreover, it has implemented stringent emission regulations at all of its manufacturingfacilities and has cut its overall carbon footprint by around 80 % since the late 1990s. The company also sells the most environmentally-friendly soccer sneakers on the market. Johnson & Johnson According to the company, Johnson & Johnson has just begun transitioning a significant portion of its energy reliance to solar power in an effort to become the world's most socially responsible organization. Currently, it is the second-largest user of solar energy in the United States, with more than half of its power coming from environmentally friendly sources. Rewards of Adopting Sustainable Manufacturing Practices Many businesses are seeking sustainabilityfor many reasons, including: Reducesoperating expenses and waste Respondsto new consumers and get a competitive edge Buildspublic trust and protect brand and reputation Createslong-term business viability Recognizesand address regulatory constraints What Can We Do to Make Sustainable Manufacturing a Reality? Every business must support green energy projects. Here are some fundamental actions that every business should take to transform itself into a sustainable manufacturing organization. Maximize the Efficacy of Fossil Fuels In today's society, energy conservation is a win-win situation. Approximately half of the world's known oil reserves have been exhausted, which means we are near to the point of diminishing returns in terms of supply. As far as we know, there hasn't been a shortage of supplies. Shutting down unwanted equipment might help you save money immediately. Replace a single-speed motor with a variable speed or servo drive. Use a hydraulic pump with variable speed. Wind, solar, and hydropower can also be used to conserve energy. Reduce or Eliminate Waste Don't overindulge; merely take in what you need to get the task done. At this point, we may all agree that it's easy, but in the past, our primary focus was on reducing productioncosts or time to market. Whether we were wasting resources was unknown or irrelevant to anyone. Metal, paper, and packaging are all examples of industries where this is true. The potential for waste reduction may justify the purchase of highly accurate production equipment. Recycle As a byproduct of manufacturing, metals may be easily recycled and used for new products. In addition, recycling metal saves money and energy since it uses less energy in the manufacturing process, allowing for a 60 % or more reduction in the energy needed to make new products. Final Words Sustainable manufacturing practicesare making manufacturing industries more socially responsible and carbon neutral. This new manufacturing method is necessary for today's period because we must consider future generations while improving today's. Natural resources must be conserved before depleting, and we have nothing left to offer future generations. Responsible organizations have already used this sustainable approachin their manufacturing processes, and we anticipate that every company should consider this method to be more sustainableand environmentally responsible. FAQ What is the difference between green and sustainable manufacturing? The main difference between green and sustainable is that green addresses a single aspect i.e., environmental health, but sustainability addresses the entire system, including economic, social, and environmental aspects. Which business is more environmentally friendly? According to Corporate Knights, Alphabet, Tesla, and AstraZeneca were among the world's most sustainable companies in the Global 100 Index for 2021. What are the four sustainability factors? The word sustainability refers to programs, activities, and actions to preserve a resource. But it relates to four unique key areas. Human, social, economic, and environmental are the four pillars or factors of sustainability.

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Three Business Examples That Effectively Practice Lean Manufacturing

Article | December 13, 2021

Lean manufacturing principles enable manufacturing businesses to achieve spectacular results and overhaul their conventional operations. A wide range of industries have adopted lean manufacturing because of its enormous advantages, and they have seen excellent results as a result. The 2010 Compensation Data Manufacturing survey indicated that 69.7% of manufacturing organizations employ lean manufacturing principles. By consuming this data, we can understand how far organizations have progressed toward incorporating lean principles into their operations. “Many companies 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, Manufacturing Industry Executive at Microsoft Let's look at some examples of lean manufacturing from some well-known companies. These leading-edge examples of lean manufacturing will shed light on how lean principles positively affect. Leading Companies Using Lean Manufacturing Effectively Successful manufacturing businesses like Toyota, Nike, and Caterpillar are currently employing lean manufacturing ideas in their production processes. In addition, Intel, Parker Hannifin, and John Deere embrace these techniques. From them, we've described three different organizations in various sectors that are successfully adopting lean manufacturing. JOHN DEERE John Deere has also implemented a lean manufacturing strategy. As a result, many of their quality control procedures are automated, which means that more components can be checked for flaws in less time. This means that more supply can be released each day, and the product can be supplied at a lower price to the consumer. Additionally, these controls monitor the manufacturing process for each component of their products, ensuring that they never manufacture more than is required and waste essential materials in the process. INTEL Intel, known for its computer processors, has used lean manufacturing techniques to provide a higher quality product for an industry that requires zero defects. In the past, it took more than three months to get a microprocessor to the manufacturer, but this principle has helped shorten that time to less than ten days. Intel rapidly learned that creating more but worse quality was not the way to raise revenues and increase consumer satisfaction with its products, which were extremely precise and technical. Instead, both parties gain from quality control and waste reduction initiatives. This is even true in the tech industry, where goods are constantly changed and upgraded. TOYOTA Toyota, the world's largest automaker, was the first to implement lean manufacturing in its manufacturing operations. But, even more importantly, they've learned how to limit products that don't match customer expectations by eliminating waste. To achieve these goals, Toyota employs two essential procedures. The first is a method known as Jidoka, which loosely translates as "automation with the assistance of humans." This implies that, although some of the work is automated, humans always ensure that the result is of the highest quality. When something goes wrong, the machines have built-in programs that allow them to shut themselves down. Known as the Just In Time (JIT) model, this is the second stage. Once the last part of a process has been finished, the next phase can begin. No unnecessary work will be done if there is a problem with the assembly line. This lean manufacturing technique has inspired thousands of other businesses. Final Words Lean manufacturing principles and their execution require discipline and patience to get the results out of them. When we see the successful lean manufacturing examples, it is not a fraction of a second success. They have devoted their time, energy, and efforts to modifying every single operational process in order to become a part of lean manufacturing. Lean manufacturing is not a method; it is a way of life that transforms your business practices and takes your firm to a new level of operations. Gain insights from renowned organizations' lean manufacturing success stories to help you become a part of the lean companies of 2022. FAQ What is the effect of lean manufacturing? Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results. Is it possible for lean manufacturing to fail? It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively. Why do certain businesses struggle with lean manufacturing? Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is the effect of lean manufacturing?", "acceptedAnswer": { "@type": "Answer", "text": "Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results." } },{ "@type": "Question", "name": "Is it possible for lean manufacturing to fail?", "acceptedAnswer": { "@type": "Answer", "text": "It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively." } },{ "@type": "Question", "name": "Why do certain businesses struggle with lean manufacturing?", "acceptedAnswer": { "@type": "Answer", "text": "Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing." } }] }

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Spotlight

Polypack, Inc.

For over 58 years Polypack has been a leader in the packaging industry, manufacturing premium quality shrink wrap and end-of-line machinery. Polypack's world class machine lines encompass everything from clear film bundling to print-registered retail packs; including total closure, form-fill-seal machines, tray loader/formers and case packers.

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