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 | March 22, 2022
Manufacturing analytics, or real-time manufacturing analytics, is the process of collecting, cleansing, and analyzing data from machines to forecast their future use, prevent failures, forecast maintenance requirements, and identify areas for improvement.
“The goal is to turn the data into information and information into insight.”
- Carly Fiorina, ex CEO of Hewlett-Packard
Manufacturing data incorporates all structured and unstructured information collected manually or through software from machines and humans throughout the manufacturing process, up to the point at which a product is launched to the market.
In this article, we will look at the use cases of data analysis in manufacturing and some of the start-ups from the U.S. that are helping manufacturers gather their real-time manufacturing analytics.
Data Analysis in Manufacturing: Use Case Analytics
Forecasting demand is highly dependent on historical data on supply levels, material costs, purchase trends, and customer behavior. Manufacturers can use analytics to accomplish the following:
Define the products to be manufactured in a time frame
Define products that are no longer in stock
Determine the quantity of products to be manufactured
Forecast sales prospects
Forecasting demand enables manufacturers to manage inventory, purchase materials, and optimize storage capacity based on data. Additionally, manufacturing industry data analysis provides insight into:
The sales-to-inventory ratio indicates the average inventory value over net sales.
Days in inventory refers to the time a manufacturer retains before selling a product.
Gross margin return on inventory (GMROI) is a term that refers to the amount of gross margin a manufacturer receives for each dollar invested in inventory.
Data collected from various manufacturing machines, tools, and devices, as well as information about operations and the gears required for the machines, can be analyzed to:
Predict when a machine will require maintenance based on the amount of time and the operations in which it has been used.
Identify and resolve operational anomalies caused by or will result in machine failure.
Prevent downtime by scheduling machine breakdowns, repairs, and replacements in advance.
Utilizing analytics can assist manufacturers in determining the actual cost of a product based on the costs of materials, labor, machines, and tools used or purchased during the manufacturing process. Additionally, manufacturers can optimize prices based on data about competitors, market trends, consumer behavior, and purchase history. Additionally, analytics can assist in setting dynamic prices that are determined by demand, supply, competition, and subsidiary product prices.
Analytics for Manufacturing as a Service: Three U.S.-based Startups
Uptake offers predictive analytics solutions powered by artificial intelligence for various industries. It provides a compass, which allows organizations to optimize work orders and scout. This allows users to analyze data and custom alerts and radar to get failure and anomaly detection solutions. Failure prediction, noise filtering, situational analytics, and detecting changes in operational behavior are just a few of the features that these systems offer to their customers today. The product, by Uptake, is intended for use in various industries like mining, construction, fleet management, manufacturing, aviation, government, and oil and gas.
Seeq is a leading provider of industrial data analytics solutions. Its big data analysis solutions help in the analysis and comprehension of industrial process data (IPD) more effectively and quickly than typical alternatives. Reduced analysis time, quicker relationship discovery, ERP and other system connectivity, support for business intelligence (BI) tools such as Excel, Tableau, SAS, and MATLAB, and collaboration support are some of the features.
Sight Machine provides a platform for manufacturing applications that utilize digital twins. It provides solutions for continually analyzing images captured by industrial cameras, sensor data, and data from manufacturing systems to improve product quality and operations. It provides real-time visibility and actionable data for every part, machine, line, and plant manufacturing process. Its clientele includes Nike, Sony, Nissan, and Google, to name a few.
Big data analytics in manufacturing assists businesses in identifying the parameters that have a direct effect on production. Additionally, modifying the target process helped businesses increase productivity by 50%.
McKinsey estimates that when analytics are used in design-to-value workflows and projects, manufacturers' gross margins can increase by as much as 40%. Manufacturing analytics can help with design-to-value, supply chain management, and after-sales support. Real-time manufacturing analytics enables manufacturers to optimize their overall production.
Why is data critical in manufacturing?
Big data helps manufacturers understand their customers' needs and wants better. To launch a new product or upgrade an old one, data is required to make it appealing to customers and assess the risks of competition.
What is production analysis?
Production analysis visualizes production output and helps assess production losses and associated costs.
What is predictive manufacturing?
Predictive manufacturing uses descriptive analytics and data visualization to provide a real-time perspective of asset health and reliability performance.
Article | March 2, 2022
Rise in security and privacy concerns and the growing trend of IoT and automation drive the growth of smart surveillance and home security systems. The development of smart locks has enhanced locking systems with improved security. With the emergence of new connected technologies in the market, the demand for advancements in smart locks also increases. Due to this, market players are investing in continual R&D for developing top-notch smart locks, thus meeting the consumers' rising demand and securing their footprint in the industry.
Demand for the smart lock is high in residential, commercial, and government sectors
Smart locks are convenient to use and provide improved security to the user. From the residential to the commercial sector, the acceptance of smart locks is increasing gradually. Increase in standard of living in urban areas and disposable incomes drives the demand for smart locks in emerging nations. In addition, the easy availability of the internet and improved use of smartphones aid the acceptance of smart locks in residential sectors.
The integration of smart locks with larger security systems provides improved protection. Due to this, the demand for smart locks is high commercial sector to provide reliable authentication and security procedures. The smart lock technology is widely used in hospitals, office buildings, banks, and other sectors for a variety of purposes such as network access, workstation access, and physical access.
Smart locks are ideal for bolstering the physical security of the building and space. Technology plays a vital role in the government sector. Increase in security and safety concerns of personal and information assets has enhanced the adoption and implementation of smart lock technology in the government sector. Smart locks are used by multiple government agencies and forensics departments, specifically at sensitive information stations, for staff authentication and other security purposes.
The market has a range of smart locks with hundreds of features. Technology in smart locks has come a long way. Presently, the market has smart locks with various operational modes such as WiFi, bluetooth, fingerprint, voice assistants and commands, and biometrics. However, there is still a long way to go, and market players are working on new technologies in smart locks. The latest and unique technology in smart locks provides lucrative opportunities for market growth. In addition, increased government investments in smart city projects in developing nations assist the market growth. According to Allied Market Research, the global smart lock market is anticipated to grow at a significant CAGR of 16.4% from 2017 to 2023.
New launches and the latest technology in smart locks
Market players are adopting strategic collaboration to innovate advanced lock systems with emerging technologies and market expansion. Kaadas, a leading provider of digital smart locks joined hands with Lamborghini to develop smart facial-recognition door locks. Kaadas recently introduced its high-tech and exclusive collection of smart facial-recognition door locks, which uses 3D structured light technology. The advanced 3D recognition technology offers infinitesimal accuracy for face recognition for biometric authentication and door unlocking.
The novel Kaadas- Lamborghini facial recognition lock provides improved security for home and office buildings. The 3D recognition technology extracts exact facial features and bone structure for developing the 3D model and doesn’t support door unlocking with videos or photographs. Along with a 3D facial recognition system, the smart digital lock also provides advanced features including PIN code, mechanical override key, fingerprint biometrics, and encrypted CPU card for door unlocking. The facial recognition lock also supports automatic locking of the doors once closed. This high-tech lock can be a game-changer in the smart locks market.
Smartphones have become an integral part of today’s lifestyle. With the growing technological advancements in IoT and remote control devices, operating smart devices and systems with smartphones has become easy. Market players are developing advanced and efficient smart locks to meet the growing customer demands. Schlage’s latest Encode Plus Smart WiFi Deadbolt is the first smart lock that works with Apple home keys.
Encode Plus Smart lock works with Apple wallet and can be accessed with Apple Watch, iPhone, and home kit. It also offers other features to the customers such as remote controlling with applications, emergency alerts, activity details, and other advanced features which a user expects in a smart lock. The smart lock is also well-suited to Google Assistants and Alexa, and it will be available in the market later this spring.
The outbreak of covid-19 impacted the global smart lock market as consumer spending on nonessential products decreased during the pandemic. However, the world is getting back to normalcy. Also, the inclination towards digitalization and automation has increased among people. The market is expected to witness significant growth in the coming years with the latest advancements in smart lock technologies. The market will recoup soon.
Article | December 10, 2021
The benefits of contract manufacturing are triggering manufacturers to utilize it as a strategy to speed up production and increase revenue. According to BCC Research, the worldwide contract manufacturing industry should increase from $2.0 trillion in 2018 to $2.7 trillion in 2023, a 6.7% CAGR.
Given the growing demand, contract manufacturing has a long way to go in innovating new solutions for manufacturers.
As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity.
– Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca
Let us look at the benefits and concept of contract manufacturing, often known as manufacturing partners in some circles.
Contract Manufacturing: Concept and Benefits
Contract manufacturing is a business model in which a company agreeswith a contract manufacturer to make components or finished goods based on the hiring company's design. In short, it is a business model in which one company hires another company to manufacture components or goods for them or their products.
The following are some of the primary advantages of contract manufacturing that attract manufacturers to adopt this concept and find a trusted supplier to manufacture any product or part of their product without much difficulty.
Cost Efficiency: In contract manufacturing, companies do not have to pay for the facility, equipment, or labor needed.
Resource Allocations: The money and resources saved through contract manufacturing can be redirected towards other company operations.
Faster Lead Times: Hiring a contract manufacturer reduces manufacturing time. This improves market speed, delivery time, and customer service.
Quality Control: Contract manufacturers are likely to have their own quality control processes in place, which allow them to spot counterfeit or damaged products early on.
Advanced Skill Sets: Companies can benefit from the skills they may not possess, but the contract manufacturer does.
Contract Manufacturing Examples
Here are some examples of contract manufacturing companies that offer manufacturing services to other businesses and work on full-service outside manufacturing projects.
Example 1: Kimball Electronics Group
Kimball Electronics Group provides a comprehensive range of electronics manufacturing services, including engineering, prototyping, testing, electronic data interchange (EDI), new product introduction, and repair depot services. Soldering, assembly, reflow, de-paneling, flux application, inspection, screen printing, testing, and rework are all processes used in their manufacturing.
Example 2: Scapa Healthcare
Scapa Healthcare, headquartered in Knoxville, Tennessee, provides contract manufacturing services for medical and cosmetic products. Their portfolio of products includes sunscreen, silicone medical adhesives, and innovative materials. Additionally, the organization provides development, packaging, and logistics services.
Things to Consider While Selecting a Contract Manufacturing (CM) Partner
You need to know how to identify the ideal contract manufacturer for your business to accelerate production and produce high-quality items. Below, we've listed some of the most important things to keep in mind while looking for an outsourced manufacturing partner for your company.
Understanding a contract manufacturer's (CM) capabilities in terms of logistics and fulfillment is critical. Is your potential CM able to meet shifting product demands? How to use the CM's services? You may need one or more services from CM for your product, so always examine their capabilities or develop a list of their services and see which ones are valuable for you.
Knowledge or Prerequisite
A qualified, experienced, subject matter expert CM always correctly understands the requirements and delivers the services as per expectations and within the time frame specified in your production schedule. Always inquire about their qualifications or certificates in the places where your product will be manufactured.
Any contract manufacturing plan must have an agreement or compliance clause. Always inquire about the compliance procedure and thoroughly understand the terms and claws to avoid future issues.
Verify your possible contract manufacturer's personnel count. Is it easy to talk to them? Is labor skilled enough to meet the product's goals? It is critical for large-scale production and production, requiring swift responses. Any work force shortage might cause production delays.
Gear & Expertise
Check for machines and equipment as well as human labor in your possible CM. Many CM lease equipment to complete a project. So always check how the CM will organize the essential equipment for your project. Expertise in using the equipment is also necessary. Verify which machines were used and whether or not professionals were involved.
The CM's location is the main factor to check. Because the CM may have numerous plants, knowing which plant is assigned to your product is essential to knowing every aspect of its production. Also, the assembly location must allow you to visit and inspect the manufacturing between cycles.
Finding a reliable contract manufacturer with solid financial backing and market roots is essential to avoid market scams. However, you must also analyze and solve risk factors like equipment failure, supplier capacity, and unreasonable expectations.
Selection Myths of Contract Manufacturing Partner
Once you've produced a list of shortlisted contract manufacturing partners who meet all of the criteria described in the preceding heading, you can proceed by following the steps below to select the best contract manufacturing partner.
Look for Who is Willing to Invest in Your Business
Incorrect. The objective is to find a vendor prepared to manufacture at a loss. A contract manufacturer's strength is that they can stay competitive and make a profit for both parties.
Focus on Tier 1 CM Partners from the Market
This one is indeed not acceptable. Tier 1 is a financial phrase used to separate large corporations from smaller ones. You want a contract manufacturer who understands your business and your needs. Don't worry about the manufacturing partner's size.
Go Ahead with the One Who Offers the Best Services at the Lowest Price
Trying to get the cheapest quote isn't always the best idea. You should get a quote from your contract manufacturing partner, but the quote may not always reveal the complete story. Cost per unit frequently captures approximately 75% of total supply chain cost. Some contract manufacturers charge the OEM the remaining 25%. Consider the complete picture while selecting a CM partner.
Manufacturers use contract manufacturing to meet their commercial goals. Therefore, contract manufacturing is a win-win situation for both industrialists and contract manufacturers. Finding the proper contract manufacturing partner for your company is not straightforward, but our brief guide can help you identify the right manufacturing partner.
What makes a good contract manufacturer?
The most significant contract manufacturing firms are more than just supply chain partners. They recognize and treat your items as if they were their own, are meticulous in their operations, and are concerned with quality and capital.
What differentiates contract manufacturing from outsourcing?
A contract is a legally binding arrangement. It involves two or more parties. For example, outsourcing is outsourcing some tasks to an outside organization under a contract agreed upon by both parties.
What's the difference between contract manufacturing and licensing?
Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises.
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"name": "What differentiates contract manufacturing from outsourcing?",
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"name": "What's the difference between contract manufacturing and licensing?",
"text": "Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises."