If there’s one thing today’s planners and managers wish they had to ensure their planning and production strategies, it would be a crystal ball. A magical ability to glimpse into the future in order to cut the complexity and uncertainty of modern manufacturing and provide a path of stability and certainty in a variant-rich value stream. While a crystal ball is obviously an impossibility, planners and managers do have a critical tool to help predict future planning and production needs while at the same time managing inventory levels and job allocation strategies for maximum efficiency and productivity.
We discuss in great detail on this blog how integrated processes and optimized models result in enhanced operations, increased productivity, and more effective strategic vision. While these are certainly critical and worthy elements of discussion, they are part and parcel to a much larger concern we devote little conversation to: How these various planning and production techniques actually result in a more innovative way of doing business. Because, at the end of the day, a manufacturing company is a business, and a software solution or platform is only as valuable insofar as it helps a business develop and grow.
For example, take the idea of integrated production planning. Such a planning method is a core driver in helping today’s manufacturing companies (especially those in variant-rich industries such as automotive or packaging) not only reduce costs, but also create inroads for revenue generation and growth across the value stream.
It’s undeniable: the visibility and proliferation of Industry 4.0 in today’s modern manufacturing landscape is quickly reaching its apex. More and more planners and managers have not only embraced Industry 4.0 as a critical driver of manufacturing and logistics efficiency, but successful companies have implemented Industry 4.0 as a holistic reinvention of planning and production processes, especially given the push for end-to-end digitization.
This is particularly true for variant-rich industries with complex partner networks and value chains where supplier and customer relations often engage in highly individualized, specified productions and delivery methods. Industry 4.0 provides companies the ability to respond to customer demands, supplier fluctuations, and constantly changing restraints and rules in complex planning and production programs. This also results in enhanced levels of end-to-end (E2E) visibility, which is a critical driver for companies in understanding their overall supply situation and leveraging lean manufacturing principles - both of which are key in reducing operational and production costs and increasing revenue.
Topics: Industry 4.0
As the year draws to a close, we at flexis look forward to a new year's worth of innovation and insight as we renew our commitment to keeping readers informed on the new challenges and solutions that define the ever-changing world of supply chain management. 2018 promises to be even more exciting than its predecessor and we promise to help our readers stay up to date on the arising trends that may impact their businesses.
It’s safe to say Big Data is here to stay. Since its introduction in the manufacturing landscape in the early 1990’s, Big Data has demonstrated its value proposition in the capacity for grouping, sorting, and analyzing large and complex data sets into executable actions, provides planners and managers the capability to apply predictive analytics and other forward-looking logistic strategies to increase the efficacy, efficiency, and cost-effectiveness of planning and production programs.
Big Data has since found a home working in tandem with other supply and manufacturing movements such as Industry 4.0, Advanced Analytics, and The Internet of Things (IoT). Alongside these technological developments and platforms, Big Data has helped companies gain increased insight and visibility into a number of critical planning and production functions such as forecasting, modeling, data analysis, and the implementation of integrated sales and manufacturing principles for a more streamlined production cycle.
Intelligent production programs begin well before materials hit the production room floor. Even with an optimized production sequence with the latest in production technology platforms, today’s manufacturing companies cannot fully realize an efficient manufacturing cycle without a transparent, agile intelligent planning architecture.
What comes to mind when you think about transport logistics? Streamlined product movement? Enhanced inventory management and monitoring? Better procurement processes? Or perhaps increased customer satisfaction or customer relations platform? While all these are certainly true, what less frequently comes to mind (perhaps incorrectly so) is enhanced business value. Though increasing business value usually comes into play earlier in the production lifecycle, increasing the efficacy of moving products from the production floor to the customer’s door has ripple effects across the entire value stream.
Because transportation relies on so many varying factors each with their own level of uncertainty or constantly shifting constraints (fuel economy, routing, obstacles in transport routes, and others), the capability to mitigate and respond to these moving targets is a crucial driver in helping manufacturing companies maintain delivery timelines, enhance the accuracy of their delivery dates and windows, and drive enhanced customer service. In addition, because transport networks can be varied and include a number of partners across a wide range of regions or locales, they can lead to even more complexity and nuance in facilitating a transport logistics strategy that drives business value.
The title of this blog says it all. Planning silos, even in today’s fairly integrated, optimized supply stream, are still a major challenge for manufacturing companies, especially in variant-rich industries with complex partner-networks. The prospect of cross-organizational communication and data-sharing in the planning stage of the production cycle remains for too many companies simply that: A prospect, a goal, rather than a standard mode of operation.
But for manufacturing companies who understand and realize its value, digitization can be a critical (or perhaps the critical) tool in eliminating these planning silos and fostering an atmosphere of communication and collaboration during the production planning process. Whether it’s constructing a more efficient, streamlined planning and production scheme or creating enhanced methods of procurement, inventory management, job allocation, and transport logistics, digitization is a supply chain management platform whereby companies can leverage greater efficacy to grow their business, create stronger partner networks, and leverage competitive advantages in an increasingly crowded marketplace.
Consider the idea of a hybrid car. A platform that combines elements of power via electricity and those of traditional gasoline. Each side of the coin provides its own set of benefits and liabilities for motorists, but when combined hybrid vehicles leverage the best of each fuel type to enhance both the driving experience and the benefits of green energy and technology.
Digitization. If there’s one major buzzword in today’s global supply logistics, it may be digitization. But the movement toward an end-to-end (E2E) digitally-driven supply stream is more than simply the flavor of the day; rather, it represents a fundamental shift in the way planners and managers oversee and deploy their planning and production processes.