Home > Resources > Articles > What are the Risks that Manufacturing Face in the Current Times?

What are the Risks that Manufacturing Face in the Current Times?

Bhagyashri Kambale | December 30, 2021 | 501 views
WHAT ARE THE RISKS THAT
Risk management in manufacturing has always been a top priority for manufacturers to avoid any unfortunate incidents. As a result, it is possible to create a more secure work environment for employees by conducting risk assessments and implementing remedies.

“If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business.”

– Gary Cohn, an American Business Leader.

As of 2019, the worldwide risk management market was valued at $7.39 billion, and it is expected to rise at a CAGR of 18.7% from 2020 to 2027, according to allied market research.

Why is Risk Assessment Critical in Manufacturing?

The manufacturing industry must have a credible risk assessment and management plan to defend itself from any breaches. Risk assessment helps firms understand the dangers they face and their implications if their systems are compromised. Hence, risk assessment is very critical in the manufacturing industry.

Five Risk Assessment Principles

Identify hazards/risks - Employers must examine their workers' health and safety risks. Therefore, an organization must regularly inspect its employee’s physical, mental, chemical, and biological threats.

Identify who may be hurt and in what way – Identifying the personnel both full-time and part-time at-risk. Employers must also examine threats to agency and contract personnel, visitors, clients, and other visitors.

Assess the risks and act accordingly - Employers must assess the likelihood of each danger causing injury. This will evaluate and lower the chance at the working space. Even with all safeguards, there is always some danger. Therefore, employers must assess if danger is still high, medium, or low risk.

Get the Risks Documented - Employers with five or more employees must record the critical findings of the risk assessment in writing. In addition, register any risks identified in the risk assessment and actions to minimize or eliminate risk.
This document confirms the evaluation and is used to examine working practices afterward. The risk assessment is a draft. It should be readable. It shouldn't be hidden away. The risk assessment must account for changes in working techniques, new machinery, or higher work objectives.

5 Manufacturing Risks to Consider in 2022


Accidents at Work

Even if official safety policies and programs are designed, followed, and enhanced, manufacturers may endure workplace accidents and injuries. Risk assessment for workplace accidents assists in mitigating the negative impact on both employees and the organization.

Environmental Mishaps

Manufacturers have distinct issues regarding fuel handling and hazardous waste disposal in facilities. Sudden leaks or spills may be extremely costly to clean up and result in fines from state and federal agencies. Risk assessments for such plant accidents assist businesses in mitigating financial losses.

Equipment Breakdowns

Essential machinery throughout the production process might fail at any time, incurring significant repair or replacement costs. Therefore, it's critical to recognize that business property insurance may not cover mechanical issues.
Risk assessment and prepayment solutions protect against equipment failures without interfering with typical company operations.

Supply Chain Disruption

Dependence on your supply chain may result in unintended consequences that are beyond your control. For example, if you experience downtime on the manufacturing line due to a supplier's failure to supply materials or parts, you risk losing revenue and profitability. If a disturbance to your supply chain poses a hazard, risk management can assist you in managing it more effectively by quickly identifying the risk and providing a suitable response.

Operation Temporarily Suspended

Depending on the severity of the weather event, a factory might be severely damaged or perhaps utterly wrecked. While major repairs or rebuilding are being undertaken, recouping lost income might be vital to the business's future profitability.

Risk assessment in this area enables your organization to budget for overhead expenditures such as rent, payroll, and tax responsibilities during the period of suspension of operations.

Final Words

Risk management is critical in manufacturing because it enables manufacturers to comprehend and anticipate scenarios and create a well-planned response that avoids unnecessary overhead costs or delays in delivering the production cycle's final result. Manufacturing risks are undoubtedly not limited to the risks listed above and may vary according to the nature of the business and regional environmental conditions. Therefore, create a well-defined strategy to overcome threats in your business and be productive at all times.

FAQ


How are manufacturing business risks classified?

In most cases, the business risk may be categorized into four types: strategic risk, regulatory compliance risks, operational compliance risks, and reputational risks.

Why should a manufacturer conduct a risk assessment?

Every manufacturing employment has risks for injury or illness. But risk evaluations can significantly minimize workplace injuries and illnesses. In addition, they assist companies in discovering strategies to reduce health and safety risks and enhance knowledge about dangers.

Spotlight

PAL Robotics

PAL Robotics is a worldwide leading company in biped humanoid robots based in Barcelona. Our mission is to develop service robots that enhance people’s quality of life. The team is composed of passionate engineers that design, craft and customize humanoid robots to help you to push your organization to the next level.

OTHER ARTICLES

Achieving Interoperability in an Industry 4.0 Factory

Article | February 11, 2020

As a part of the Industry 4.0 movement, factory engineers are increasingly adopting some form of industrial Ethernet to interconnect the machines and other equipment implementing their production processes. Ethernet has been around in multiple forms for over 40 years. Most of it serves the IT community by interconnecting PCs and other equipment to a company LAN. Because of its flexibility, Ethernet has been adapted to many industrial uses.

Read More

The Impact of Coronavirus on Electronic Manufacturing

Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

Digitalizing Your Manufacturing Ecosystem

Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

Read More

4 Food and Beverage Manufacturing Trends on Tap for 2020

Article | February 10, 2020

It’s the food and beverage industry’s job to appeal to consumer tastes by keeping tabs on what’s hot and what’s not. In the 1990s, for instance, fat free or reduced fat was all the rage, evidenced by the variety of products with such descriptions featured in bold typeface on cartons, cardboard and boxes. Fast forward to today, thanks in part to advancements in nutrition science, fat is back and is recommended in low-carb diets such as Atkins and Keto.

Read More

Achieving Interoperability in an Industry 4.0 Factory

Article | February 11, 2020

As a part of the Industry 4.0 movement, factory engineers are increasingly adopting some form of industrial Ethernet to interconnect the machines and other equipment implementing their production processes. Ethernet has been around in multiple forms for over 40 years. Most of it serves the IT community by interconnecting PCs and other equipment to a company LAN. Because of its flexibility, Ethernet has been adapted to many industrial uses.

Read More

The Impact of Coronavirus on Electronic Manufacturing

Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

Digitalizing Your Manufacturing Ecosystem

Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

Read More

4 Food and Beverage Manufacturing Trends on Tap for 2020

Article | February 10, 2020

It’s the food and beverage industry’s job to appeal to consumer tastes by keeping tabs on what’s hot and what’s not. In the 1990s, for instance, fat free or reduced fat was all the rage, evidenced by the variety of products with such descriptions featured in bold typeface on cartons, cardboard and boxes. Fast forward to today, thanks in part to advancements in nutrition science, fat is back and is recommended in low-carb diets such as Atkins and Keto.

Read More
MORE ARTICLE

Spotlight

PAL Robotics

PAL Robotics is a worldwide leading company in biped humanoid robots based in Barcelona. Our mission is to develop service robots that enhance people’s quality of life. The team is composed of passionate engineers that design, craft and customize humanoid robots to help you to push your organization to the next level.

Related News

MANUFACTURING TECHNOLOGY, DIGITAL TRANSFORMATION

Rootstock Software Named Most Promising Salesforce Service Provider for its Manufacturing ERP Solution

Rootstock Software | January 27, 2023

Rootstock Software has been awarded "Most Promising Salesforce Service Provider" by CIOReview for its manufacturing ERP on the Salesforce Platform. The platform offers precise control over operational areas such as engineering, production, supply chain, and inventory and helps manufacturers adapt to challenges in the post-pandemic era. This award shows that Rootstock Software is serious about giving manufacturers solutions that help them become more flexible and quick. Rootstock's ERP is native to Salesforce, allowing organizations to benefit from its ability to plug-and-play with other enterprise and point solutions. The platform offers features such as Salesforce Lightning, Einstein AI, and natural language processing and is specifically designed for manufacturers, distributors, and supply chain organizations. Rootstock Software has shown with this award that it is committed to giving manufacturers modern enterprise solutions that are made to fit their needs. David Stephans, CEO of Rootstock Software, said, “By using Salesforce at the frontend and Rootstock at the backend, manufacturers can truly transform their operations for the post-pandemic era.” (Source - Businesswire) Rootstock's team brings decades of manufacturing and ERP experience to help customers succeed. Rootstock Software is a leader in the Gartner 2020 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises because of how hard it works. About Rootstock Software Rootstock Software is a company that makes and uses cloud enterprise resource planning (ERP) software to help manufacturers and distributors build operations that can grow, offer personalized, 360-degree customer experiences, and provide better service than their competitors. Their cloud ERP solution, Rootstock, is natively built on the Salesforce Platform and offers a suite of modules including order management, manufacturing operations, supply chain management, and financial management. Rootstock is ranked as a leader in the ERP Value Matrix by industry analysts and has vertical expertise in discrete manufacturing, medical devices, and high-tech verticals. The people who work for the company work with customers as trusted advisors to bring about change and transformation. Rootstock continues to grow and expand its offerings.

Read More

INDUSTRIAL DATA

Datanomix and Vallen Partner to Bring Real-Time Factory Analytics to Industrial Manufacturers

Vallen | December 08, 2022

Datanomix, maker of the industry's only Automated Production Intelligence™ software platform, announced a partnership with Vallen to offer the Datanomix software solution to its wide range of manufacturing customers. Datanomix is well known for its No Operator Input™ approach to production monitoring. The partnership enables Vallen to offer the Datanomix solution to industrial customers seeking improvements as part of Industry 4.0 and industrial automation initiatives. "We are excited to welcome Vallen into the Datanomix Partners Program, It's clear that selling new technology to manufacturing customers requires a deep and successful history of selling value-added solutions. Vallen is a respected brand in the industrial market. They can now have conversations about adding a new layer of value by introducing our LIVE production intelligence software to the portfolio of solutions." -John Joseph, CEO of Datanomix. As part of the reseller program, Datanomix will train Vallen's Metalworking customer-facing team on selling, installing, and supporting its customers, with comprehensive information on the Datanomix platform and its benefits for precision manufacturers. "Several machine monitoring companies are selling basic utilization services to manufacturers today. We carefully evaluated the contenders and selected Datanomix for its true real-time job insights and ability to translate job performance to business impact. This aligns with Vallen's mission of creating value for our customers, The information presented by Datanomix accelerates time to information, shortens corrective action cycles, and directly impacts decision-making at exactly the right time. As Vallen focuses on innovation and our leadership position in metalworking solutions, we are truly excited to be offering Datanomix to our customers." -Chuck Delph, CEO of Vallen. The Datanomix solution automates the collection and analysis of manufacturing data and delivers deep insights into production performance, both in real-time and over time. Designed for growth-oriented precision manufacturers, the Datanomix platform delivers industry-leading innovation of manufacturing productivity with No Operator Input™ without burdening the end user with cumbersome analysis or data crunching. About Datanomix: Datanomix delivers Automated Production Intelligence for discrete manufacturers with No Operator Input™ required. Its core product set includes its flagship Production Monitoring system, along with Digital GEMBA Boards, and Condition Monitoring systems. Based in New Hampshire, Datanomix exists to provide manufacturers with out-of-the-box reports and workflows that align with the way manufacturing people already work without the need for manual data crunching or workflow disruption. About Vallen: Vallen is an industry leader in delivering flexible supply chain solutions and services along with a comprehensive range of maintenance, repair, operating, production, safety and electrical products to meet the growing supply needs of customers in facilities across North America and Europe.

Read More

DIGITAL TRANSFORMATION

Viridi Parente Chooses Bright Machines to Digitize Manufacturing Facility

Bright Machines | January 25, 2023

On January 24, 2023, Bright Machines, a leader in intelligent, software-defined manufacturing, and Viridi Parente, Inc., a leading developer of safe, resilient, point-of-use battery storage technology, announced that Viridi has chosen Bright Machines to transform the company's U.S. electric battery manufacturing facility digitally. Bright Machines Microfactories, the company's full-stack assembly automation solution, modernizes production by integrating data and AI. This gives Viridi new capability to fulfill the growing demand for its zero-carbon emission energy battery solutions. Viridi manufactures battery energy storage systems in Buffalo, New York. Bright Machines will play a key role in the assembly of Viridi's stationary lithium-ion battery pack system modules, which are developed and tested to be fail-safe for installation in industrial, commercial, and residential settings. Companies like Viridi and Bright Machines are fueling the United States' re-emergence as a global manufacturing powerhouse. Bright Machines will assist Viridi in automating the assembly of its clean, sustainable power sources, which will replace century-old distributed energy platforms, including fossil fuel, lead-acid batteries, and other outmoded technologies. Additionally, Viridi will implement more sustainable practices by utilizing Bright Machines' intelligent automation solution, which evaluates production areas to determine the appropriate material requirements to reduce fault rates. Viridi will also be able to decrease overproduction and instead produce-to-order depending on local market demand as its facility is near the end consumer. This will result in reduced landfill and an overall reduction in Viridi's carbon footprint. The only option to reduce costs, emissions, and geopolitical risks while satisfying U.S. battery and electrification demand is to localize the production of crucial battery components. Intelligent assembly automation from Bright Machines enables rapid product evolution at a low cost while minimizing time to market. In addition, the trend toward closer-to-home production promotes jobs in the United States and allows businesses to progress their sustainability efforts through local and regional supply chains. About Bright Machines Founded in 2018, Bright Machines is a leading technology firm that offers an innovative approach to software-defined, intelligent manufacturing. It uses machine learning, computer vision, 3D simulation, and adaptive robotics to alter production's flexibility, scalability, and economics fundamentally. Bright Machines runs R&D facilities in the United States and Israel, with additional field operations in the United States, Mexico, China, and Poland, and it employs more than 500 people globally. It has been recognized as a "Technology Pioneer" by the World Economic Forum and one of "America's Most Promising Artificial Intelligence Companies" by Forbes in 2019.

Read More

MANUFACTURING TECHNOLOGY, DIGITAL TRANSFORMATION

Rootstock Software Named Most Promising Salesforce Service Provider for its Manufacturing ERP Solution

Rootstock Software | January 27, 2023

Rootstock Software has been awarded "Most Promising Salesforce Service Provider" by CIOReview for its manufacturing ERP on the Salesforce Platform. The platform offers precise control over operational areas such as engineering, production, supply chain, and inventory and helps manufacturers adapt to challenges in the post-pandemic era. This award shows that Rootstock Software is serious about giving manufacturers solutions that help them become more flexible and quick. Rootstock's ERP is native to Salesforce, allowing organizations to benefit from its ability to plug-and-play with other enterprise and point solutions. The platform offers features such as Salesforce Lightning, Einstein AI, and natural language processing and is specifically designed for manufacturers, distributors, and supply chain organizations. Rootstock Software has shown with this award that it is committed to giving manufacturers modern enterprise solutions that are made to fit their needs. David Stephans, CEO of Rootstock Software, said, “By using Salesforce at the frontend and Rootstock at the backend, manufacturers can truly transform their operations for the post-pandemic era.” (Source - Businesswire) Rootstock's team brings decades of manufacturing and ERP experience to help customers succeed. Rootstock Software is a leader in the Gartner 2020 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises because of how hard it works. About Rootstock Software Rootstock Software is a company that makes and uses cloud enterprise resource planning (ERP) software to help manufacturers and distributors build operations that can grow, offer personalized, 360-degree customer experiences, and provide better service than their competitors. Their cloud ERP solution, Rootstock, is natively built on the Salesforce Platform and offers a suite of modules including order management, manufacturing operations, supply chain management, and financial management. Rootstock is ranked as a leader in the ERP Value Matrix by industry analysts and has vertical expertise in discrete manufacturing, medical devices, and high-tech verticals. The people who work for the company work with customers as trusted advisors to bring about change and transformation. Rootstock continues to grow and expand its offerings.

Read More

INDUSTRIAL DATA

Datanomix and Vallen Partner to Bring Real-Time Factory Analytics to Industrial Manufacturers

Vallen | December 08, 2022

Datanomix, maker of the industry's only Automated Production Intelligence™ software platform, announced a partnership with Vallen to offer the Datanomix software solution to its wide range of manufacturing customers. Datanomix is well known for its No Operator Input™ approach to production monitoring. The partnership enables Vallen to offer the Datanomix solution to industrial customers seeking improvements as part of Industry 4.0 and industrial automation initiatives. "We are excited to welcome Vallen into the Datanomix Partners Program, It's clear that selling new technology to manufacturing customers requires a deep and successful history of selling value-added solutions. Vallen is a respected brand in the industrial market. They can now have conversations about adding a new layer of value by introducing our LIVE production intelligence software to the portfolio of solutions." -John Joseph, CEO of Datanomix. As part of the reseller program, Datanomix will train Vallen's Metalworking customer-facing team on selling, installing, and supporting its customers, with comprehensive information on the Datanomix platform and its benefits for precision manufacturers. "Several machine monitoring companies are selling basic utilization services to manufacturers today. We carefully evaluated the contenders and selected Datanomix for its true real-time job insights and ability to translate job performance to business impact. This aligns with Vallen's mission of creating value for our customers, The information presented by Datanomix accelerates time to information, shortens corrective action cycles, and directly impacts decision-making at exactly the right time. As Vallen focuses on innovation and our leadership position in metalworking solutions, we are truly excited to be offering Datanomix to our customers." -Chuck Delph, CEO of Vallen. The Datanomix solution automates the collection and analysis of manufacturing data and delivers deep insights into production performance, both in real-time and over time. Designed for growth-oriented precision manufacturers, the Datanomix platform delivers industry-leading innovation of manufacturing productivity with No Operator Input™ without burdening the end user with cumbersome analysis or data crunching. About Datanomix: Datanomix delivers Automated Production Intelligence for discrete manufacturers with No Operator Input™ required. Its core product set includes its flagship Production Monitoring system, along with Digital GEMBA Boards, and Condition Monitoring systems. Based in New Hampshire, Datanomix exists to provide manufacturers with out-of-the-box reports and workflows that align with the way manufacturing people already work without the need for manual data crunching or workflow disruption. About Vallen: Vallen is an industry leader in delivering flexible supply chain solutions and services along with a comprehensive range of maintenance, repair, operating, production, safety and electrical products to meet the growing supply needs of customers in facilities across North America and Europe.

Read More

DIGITAL TRANSFORMATION

Viridi Parente Chooses Bright Machines to Digitize Manufacturing Facility

Bright Machines | January 25, 2023

On January 24, 2023, Bright Machines, a leader in intelligent, software-defined manufacturing, and Viridi Parente, Inc., a leading developer of safe, resilient, point-of-use battery storage technology, announced that Viridi has chosen Bright Machines to transform the company's U.S. electric battery manufacturing facility digitally. Bright Machines Microfactories, the company's full-stack assembly automation solution, modernizes production by integrating data and AI. This gives Viridi new capability to fulfill the growing demand for its zero-carbon emission energy battery solutions. Viridi manufactures battery energy storage systems in Buffalo, New York. Bright Machines will play a key role in the assembly of Viridi's stationary lithium-ion battery pack system modules, which are developed and tested to be fail-safe for installation in industrial, commercial, and residential settings. Companies like Viridi and Bright Machines are fueling the United States' re-emergence as a global manufacturing powerhouse. Bright Machines will assist Viridi in automating the assembly of its clean, sustainable power sources, which will replace century-old distributed energy platforms, including fossil fuel, lead-acid batteries, and other outmoded technologies. Additionally, Viridi will implement more sustainable practices by utilizing Bright Machines' intelligent automation solution, which evaluates production areas to determine the appropriate material requirements to reduce fault rates. Viridi will also be able to decrease overproduction and instead produce-to-order depending on local market demand as its facility is near the end consumer. This will result in reduced landfill and an overall reduction in Viridi's carbon footprint. The only option to reduce costs, emissions, and geopolitical risks while satisfying U.S. battery and electrification demand is to localize the production of crucial battery components. Intelligent assembly automation from Bright Machines enables rapid product evolution at a low cost while minimizing time to market. In addition, the trend toward closer-to-home production promotes jobs in the United States and allows businesses to progress their sustainability efforts through local and regional supply chains. About Bright Machines Founded in 2018, Bright Machines is a leading technology firm that offers an innovative approach to software-defined, intelligent manufacturing. It uses machine learning, computer vision, 3D simulation, and adaptive robotics to alter production's flexibility, scalability, and economics fundamentally. Bright Machines runs R&D facilities in the United States and Israel, with additional field operations in the United States, Mexico, China, and Poland, and it employs more than 500 people globally. It has been recognized as a "Technology Pioneer" by the World Economic Forum and one of "America's Most Promising Artificial Intelligence Companies" by Forbes in 2019.

Read More

Events