There is no doubt the Fourth Industrial Revolution is rapidly gaining traction and there is a critical requirement for manufacturers to evolve to remain competitive. Organizations also face the daily challenge of responding to the different analytical requirements from the executives tasked with ensuring peak operational performance.
The CEO wants to gain a competitive advantage in the global marketplace, while the CFO wants to increase output and profitability. The COO’s focus is on increasing operating efficiencies to deliver more product, more quickly, and the CIO wants to ensure that latest technology is exploited to deliver maximum value through accurate information. Finding a manufacturing operations management solution that can address all these requirements is not always easy.
In early 2017, Boston Consulting Group’s market analysis, Winning In IoT, It’s All About The Business Processes, predicted that by 2020, $267 billion will be spent on Internet of Things (IoT) technologies, products, and services. There is a clear need, across all sectors, for a complete manufacturing lifecycle management system that enables planning, scheduling, and publishing, collecting, tracking and analyzing, to optimize and improve end-to-end manufacturing operations.
As Industry 4.0 unfolds and more manufacturers look to effectively manage their processes, greater value will be placed in allocating budget to ERP systems, and not just to machines on the factory floor.
“Our manufacturing customers are working in a landscape dominated by a rapid evolution of information requirements and it’s no longer acceptable to hunt for information or wade through reams of hardcopy reports, trying to spot a pattern that can improve operations,” says Paulo De Matos, Chief Product Officer at SYSPRO.
“We recognize that the next generation of manufacturers are here, harnessing the information of intelligent sensors (IoIS) making sense of this data through artificial intelligence and machine learning and ultimately having the flexibility to engage with this information or systems via familiar social media methods, but within their own ERP system.”
Assessing the risks
Global manufacturing outlooks released in 2017 by a number of leading business consulting firms, show that some of the biggest risks for manufacturers include, supply chain risk due to lack of visibility of supply and capacity information; supplier, vendor or distributor disruption; impact of local and international trade and environmental regulations, labour costs, general economic conditions, and operational infrastructure chokepoints.
As events over the past year have shown, however, it is not only breakdowns on the factory floor that pose a risk to manufacturers. In 2016, IBM’s study X-Force Research 2016 Cyber Security Intelligence Index, found that the manufacturing sector was second only to healthcare as the most attacked industry in 2016.
Enhanced functionality a key factor in successful systems’ management
So how do manufacturers reduce supply chain risk and gain deeper levels of visibility in their organization? A strong ERP system, with enhanced functionality, is a good start. It will enable manufacturers to better measure and benchmark their performance; increase productivity by minimizing loss; improve their operating efficiencies through better systems; and digitize their factories via machine and device integration.
Being able to schedule quickly and accurately will reduce downtime, and enable manufacturers to maximize order fulfillment and resource utilization, collect data from the shop floor and track employees, equipment and orders in real-time. This will lead to a reduction in loss and will drive continuous improvement.
Enhanced ERP systems which allow you to automatically connect your machines to read data, without manual inputs, will also help manufacturers to digitize their factories, and provide insights from the in-depth analysis of the performance data.
These insights will clarify, amongst others, why actual run rates differ from planned run rates, where performance loss is occurring in relation to operator inefficiencies, and how equipment wear and tear, and minor stops from component jams are affecting the business’s bottom line.
ERP systems with enhanced functionality should offer a unique level of delivery, with cost and quality control of manufacturing operations for job shop, batch production, production line and mixed mode environments. The ideal end-result of implementing such systems is the ability to be able to easily, and accurately measure performance to drive toward world-class standards of operation for overall equipment effectiveness (OEE), total effective equipment performance (TEEP) and overall labor effectiveness (OLE).
SYSPRO is a global, independent provider of industry-built ERP software designed to simplify business complexity for manufacturers and distributors. Focused on delivering optimized performance and complete business visibility, the SYSPRO solution is highly scalable, and can be deployed on-premise, in the cloud, or accessed via a mobile device. SYSPRO’s strengths lie in a simplified approach to technology, expertise in a range of industries, and a commitment to future-proofing customer and partner success.
SYSPRO has more than 15,000 licensed companies in over 60 countries across six continents. For more information, visit www.syspro.com