Plex Systems announced the results of its fifth annual study, the State of Manufacturing Technology.
Smart manufacturing, also referred to as Industry 4.0, encompasses the convergence of physical and digital systems, leading to the rise of smart factories.
The changes have helped the company achieve double-digit growth, with plans to reach $100 million in revenues in the coming years.
Plex Systems announced the results of its fifth annual study, the State of Manufacturing Technology. The study, which was developed with the support of the research and analyst firm LNS Research, found that among global manufacturers only 24% have currently implemented a smart manufacturing initiative. Another 22% are in the pilot stages. Smart manufacturing, which is also referred to as Industry 4.0, encompasses the convergence of physical and digital systems, leading to the rise of smart factories.
Smart manufacturers have better control and visibility across their operations than their peers, allowing them to more quickly and accurately adjust to changing market conditions, including crises such as COVID-19.
- Jerry Foster, chief technology officer, Plex Systems
“While most companies surveyed do not identify as smart manufacturers today, what is encouraging is that we are seeing a growing appetite to adopt smart manufacturing practices. This appetite, combined with an increasingly reliable blueprint for success as demonstrated by industry leaders, indicates that the smart manufacturing movement will only increase from here.”
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In addition to tracking the adoption of smart manufacturing practices, the survey also found that companies that have realized the benefits of smart manufacturing pilot programs achieve this success by:
• Clearly defining desired business outcomes.
• Identifying the processes, technology and training necessary to achieve business outcomes.
• Successfully implementing the technology and driving adoption to fully realize the expected value.
Our new research shows that companies successfully transforming into smart manufacturers are building on robust yet flexible business and operational systems. Without an integrated approach to manufacturing software that can deliver a single source of truth, manufacturers will likely find themselves losing the competitive battle for agility and making sub-optimal decisions in siloes.
- Matt Littlefield, president and principal analyst at LNS Research
For Sanders and Morley Candy, a fine chocolatier, investing in new hardware and software through new production lines, automating packaging processes, and adopting a cloud-based ERP system have given the company greater visibility and control over its operations. This has empowered sales, enabled faster product testing and development, and allowed the company to redeploy its staff to complete higher-value tasks throughout the organization. These changes have helped the company achieve double-digit growth, with plans to reach $100 million in revenues in the coming years.
The survey additionally found:
• Manufacturers believe future growth will rely on operational improvements, such as cost reductions (37%), increased capacity (24%), and new production initiatives (40%).
• In the next 12-18 months, manufacturers plan to fund new production technology (44%) followed by operational systems, such as industrial automation, Manufacturing Operations Management (MOM)/Manufacturing Execution System (MES), and Enterprise Manufacturing Intelligence (EMI) (34%). However, given the widespread impact of COVID-19 since this survey was conducted, we can expect that the pandemic could shift future investments toward supply chain planning technologies. According to a survey conducted by the National Association of Manufacturers from Feb. 28–March 9, 2020, 35.5% of its member companies were facing supply chain disruption.
• The three most-hyped technologies are 3D printing/additive manufacturing (28%), followed by machine learning tied with industrial-hardened devices (24%), and blockchain (23%). These findings indicates that while specific applications are seeing success, there is not yet a clear path to their application within manufacturing environment.
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About Plex Systems:
Plex Systems, Inc. delivers the first smart manufacturing platform that empowers the world’s leading innovators to make awesome products. Plex gives process and discrete manufacturers the ability to connect, automate, track and analyze every aspect of their business-from the shop floor to the top floor-to drive business transformation. Built in the cloud, the Plex Smart Manufacturing Platform includes MES, ERP, supply chain management, Industrial IoT, and analytics to connect people, systems, machines, and supply chains, enabling them to lead with precision, efficiency and agility in an ever-changing market.