speed of light into uncharted territory. I can imagine it must feel that way. No sooner have they embraced the internet
Manufacturing 2020
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Manufacturing 2020
Disrupt or die… but start with the fundamentals Understanding the customer and how your products are used is a vital part of any digital strategy
Thomas Honoré
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often wonder if manufacturing organisations feel like they are trapped in a Tardis, racing at the speed of light into uncharted territory. I can imagine it must feel that way. No sooner have they embraced the internet of things (IoT) than the next big thing comes along. After getting ready for Industry 4.0 suddenly it is last year’s news and they are being told to prepare for Industry X.0. The trends are important, no doubt, because each market trend creates opportunities for disruption, and disruption is a business changer. This disruption is not something that happens in Silicon Valley or Shanghai; it is happening right now just outside your door. Car-sharing schemes have disrupted car rental businesses, free newspapers have challenged print publishing, and online-only estate agents
Do you know where your product adds value—and where it falls short?
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are taking market share from high street players. Almost every business is under siege from innovative rivals with better digital skills. Some studies estimate that up to half of all jobs will be threatened by automation over the next ten years, from pilot to auditor, accountant to estate agent. Accenture reports that 95 per cent of chief executives expect major strategic challenges regarding disruption and the fourth indutrial revolution – and yet only 20 per cent of their organisations are prepared for this. But in the rush to disrupt we risk overlooking the fundamentals. It all starts with the customer. Do you really know what your customers want? Do you know where your product adds value – and where it falls short? We see too many companies still struggling to understand how their products are used. Making clever use of IoT presents a huge opportunity for manufacturers to get closer to the customer, but it only works if you have the organisation, processes and systems to make sense of that extra data.
THOMAS HONORÉ Chief executive of Columbus. He has more than 20 years leadership experience at tech firms including IBM and Oracle. He regularly writes and gives speeches on digitalisation.
With products becoming more digital, there is a greater need for skills and technology. For most manufacturers, though, it is not an option to develop all of these in-house. Careful selection of (technology) partners is crucial because they will have a big impact on the ability to grow. So how do manufacturers of all shapes and sizes travel through the minefield created by external market forces, an increasingly demanding and connected customer, competitive pressure and digitalisation expectations? The key is to start with the fundamentals: people, process excellence, digital leadership and customer success. These values will future-proof any organisation along with the peer benchmarking, industry expertise and insight compiled in this report. Hopefully if you do feel like you are travelling in the Tardis then this report will help you navigate the way and make the adventure more pleasant for you.
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Manufacturing 2020
Inside
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The fourth industrial revolution is coming – here's how to thrive
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Andrew Churchill, Executive Chairman, JJ Churchill
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Digitalisation and servitisation: the competitive advantage?
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To grow their business, in which technologies should manufacturers invest?
What advice would you give to a manufacturing company to help them grow? How are you transforming your business?
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Professor Tim Baines, Aston Business School
Q&A
Q&A
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Close that skills gap Kris Oldland, Field Service News. Editor-in-chief
Turning data into action Darren Duke, Business Analyst, Zotefoams
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The slow journey to the paperless factory Kevin Bull, Product Strategy Director, Columbus UK
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The customer must be at the centre of the digital strategy Colin Masson, Global Industry Director of Manufacturing Solutions, Microsoft
The debate over whether to invest is over. It's now time to think about next steps
Henry Anson
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What does digital transformation look like in the manufacturing industry?
Infographic: Manufacturing 2020
Future-proofing in a digital age
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Welcome to your future... success at your fingertips Mary Hunter, Managing Director, Columbus UK
ver the next few years manufacturers will be hit by a near-perfect storm. Only the companies that seize the opportunities, and harness the technologies creating this typhoon, will succeed. To help the sector get ready we have collected in this report a brains trust that includes some of the most innovative companies in the UK. Their responses to digital transformation reflect the specific challenges they face, but taken together important themes emerge. First, adoption is imperative, not an option. I am delighted to report that working on The Manufacturer’s annual manufacturing report, a parallel project, showed me that this argument has been won. What is now important is how companies take the next step – and when. Our experts in this report offer very clear guidance to manufacturers thinking about how to take that next vital step.
Another recurring theme is that these technologies enable manufacturers to not only say they put the customer at the heart of everything they do, but make it reality. By connecting data flowing from the manufacturing plant with data flowing from customer activities, all then mediated through connected technologies, crunched in the cloud and fed back into manufacturers’ systems, a virtuous data loop is formed
HENRY ANSON Managing director of Hennik Group, publisher of The Manufacturer magazine.
that enables manufacturers to achieve unprecedented customer service. The insight this technology delivers is a powerful tool to ensure the smoothest possible delivery of products and services. It is also important to recognise that technological advances allow for the constant evolution of manufacturing systems. To what extent will artificial intelligence begin to inform manufacturers’ decision-making? It is obvious that the power being developed by programmers, and woven into existing products through upgrades, will create intriguing new opportunities. Software that breaks down data silos means that we are getting closer to that Holy Grail in any business – a single version of the truth. While it is tremendously exciting to consider how these technologies will affect operations in the years covered by Manufacturing 2020, it is important to remember that no technology will ever replace the fundamentals of management. It is as true today as it ever was: the only way to ensure success is to have a strategic plan and stick to it. It is a timely reminder that there is no substitute for wisdom in business, but equally it is a reminder that, amid the storm, that for leaders with vision these technologies are the key to a bright, prosperous future for UK manufacturers.
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Manufacturing 2020
The fourth industrial revolution is coming – here’s how to thrive Develop a strategic plan to improve processes, drive down costs and make the most of your data
Andrew Churchill, executive chairman, JJ Churchill
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or manufacturers, technology is moving fast. We welcome it. As a business we are about driving change. New technology is what makes us successful. But there are risks. The fourth industrial revolution brought by data and connectivity creates a great need to compete with big disruptive technologies otherwise we will fail, with terrible consequences for the next generation. Yet it is also the next generation who are best equipped to thrive in this environment. We find that the staff who have the right mentality and skills to work in this world have often gone through the apprenticeship process. If you’re planning to be in business in five or
ten years’ time, and you’re not taking on apprentices who are digital natives, then you’re short-sighted. It’s vital to employ the best people you can afford and invest in the next generation through apprenticeship. Don’t just invest in software and hardware – invest in people. It’s also vital to develop and stresstest a five to seven-year strategic plan; invest against this, rather than shorterterm tactical imperatives. The big themes in the plan should be to invest to draw value from your data, improve processes and drive global costcompetitiveness. There are many technologies to embrace. Manufacturers need to understand additive manufacture such as 3D printing, robotics and autonomous production, artificial intelligence, virtual reality, analytics, advances in materials science and much more.
Data can predict product deterioration before anything happens to disrupt your supply chain
One theme that draws many of these together is data. Increasingly, manufacturers have an ability to collect data and are learning that it can do so much more than telling you whether your machine is working. Data can predict maintenance and product deterioration before anything happens to disrupt your supply chain. Data analytics is here whether we like it or not. We, like many smaller manufacturers, are excellent at collecting data, but it’s what you do with it that counts. By using data analytics, we have been able to cut our cycle time for one of our products by 40 per cent. The immediate benefits of
Being small is not an excuse for being a lateadopter. Small should mean agile, not slow
this include reducing cost per part and increasing capacity and this adds up to higher productivity. To better compete on the world stage, this is essential. We are also investing in a fully robotic, closed-loop manufacturing cell in 2018 to improve productivity in the supply chain. We are also planning for a completely new enterprise resource planning platform for deployment in 2019. Our current ERP system was implemented 16 years ago, and it is ideal for small and mid-sized firms, but as we continue our rapid growth it doesn’t give us what we need. We have to develop our in-house data analytics capability, and to do that we need a system that gives realtime, accurate data that can be manipulated and help us make better decisions. These technologies all drive value from data, helping to improve productivity and capability. Being small is not an excuse for being a late-adopter. Small should mean agile, not slow.
Digital transformation in manufacturing is driving process capability and productivity in existing systems. It’s reducing time to market through faster prototyping and product optimisation. It’s facilitating the global supply of product and services, irrespective of geographic location. It’s the future. Andrew Churchill is executive chairman of JJ Churchill, a family-owned aerospace precision engineering business based in the Midlands. He sits on the board of EEF: The Manufacturers’ Organisation, and his many industry roles include being an advisory panel member of the All Party Parliamentary Group for Trade and Investment. Share this article online via raconteur.net
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The key to success is choosing the right moment to invest and ensuring successful implementation
Digitalisation and servitisation: the competitive advantage? Broaden the horizons of your digital transformation to capture more value from your products Professor Tim Baines Aston Business School
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t Aston Business School, our relationships with over 100 manufacturing firms give us insight into the industry’s journey to digital maturity, transformation, and servitisation, adding value by reshaping products into services. When these businesses ask how to balance growth, competition, rising customer expectations and market forces, we recommend a methodical approach: reflect, analyse and then act. First, understand how your business competes. Does it win customers because of its product leadership? Price? Or because of service packages that support the customer and improve the value they get from your products? Then, think how this may change in the future. To get a clearer insight into your competitive strategy, take a look at unlockyourinsight.co.uk. Here you will find a simple tool that analyses your competitive strategy. Don’t be surprised if your reflections suggest that services are of growing importance to your customers, and so represent the strongest potential for growth.
This is very typical across industrial sectors in developed economies. The challenge is to develop the appropriate business model, adopt the right technologies, and bring about the organisational change to realise this opportunity. After performing your analyses, it is time for action, which most often leads to an investment in technology. This should reflect the competitive strategy of the business. Manufacturers are tech-based businesses, they are rich in technology and often led by managers with backgrounds in engineering, science and technology. The key to success is therefore not only choosing the right technology but picking the appropriate moment to invest, and ensuring successful implementation. There are a number of scientific frameworks that can guide decisions; it’s just a case of being aware of them and using their principles to guide your conclusions. Manufacturers need to master key technology trends that are most relevant to their overarching competitive strategy – those that help them perform better against their chosen business model. And those key tech-
Future-proofing your business is a never-ending process of analysis, development and improvement
nologies need to be prioritised based on those that fit well with their existing competencies; these will be easier, faster and less risky to adopt. It is too simplistic to identify one technology trend over others, it requires deeper thought. Digital transformation in the manufacturing industry looks advanced yet narrow. Most manufacturers are, as mentioned above, comfortable with technology and digital technologies have been embedded within manufacturing for decades (digital simulations evolved in the steel and automotive industries in the late 1970s).
Yet, few manufacturers are looking beyond the factory gate. Instead, they are narrowly focused on initiatives to improve cost, quality and speed of delivery. They are therefore in danger of missing opportunities to create and capture more value, opportunities that can be revealed using digital technologies to provide insights into how, when, and where customers use the products they produce. And, of course, some manufacturing organisations are missing out on existing technological opportunities. I believe systems such as customer relationship management and enterprise resource planning are, for most businesses, essential for efficient operations. So much so that they can be considered as hygiene factors for many. Manufacturers that start by optimising these fundamental technologies have better leverage to adopt new technologies. Internet of things is different: it elevates thinking beyond the factory gate, and so can help provide the customer insights that can lead to growth. We are transforming businesses through servitisation. The international research community has come together to define pathways for the successful adoption of a services strategy within a manufacturing organisation. We have rationalised this into a roadmap of the transformation process, and are using this roadmap to guide the actions of manufacturers. As manufacturing organisations look to add new revenue streams and hedge competition with a more service-focused offering, innovation will continue to rise, transforming the complete customer experience and manufacturing as a whole. Professor Tim Baines is director of Aston Business School’s Advanced Services Group and an international authority on servitisation.
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Q&A 72% of manufacturers say conditions are good for growth
67% say Brexit is making planning difficult
Statistics from The Manufacturer Annual Manufacturing Report 2018
Meet our experts Darren Crisp Group ERP Manager, Sofa Brands International
To grow their business, in which technologies should manufacturers invest? How will this investment ensure their success?
Web presence. An example of this is a customer portal, which provides real-time, accurate data to the client. Improving communication improves satisfaction. Darren Crisp The internet of things and the connected cloud would be on the top of my list. Some 85 per cent of production assets are still unconnected according to AT Kearney and the World Economic Forum. It is also predicted that 80 billion IoT devices will be enabled by 2025. There is a huge potential for improvements in efficiency and visibility by getting more realtime information from production to planning. Artificial intelligence goes hand-in-hand with the above, almost like a “1a”. As the volumes of data coming from connected devices explodes, AI will make it easier for organisations to automate repetitive or mundane processes and help them focus their efforts on high-value and strategic tasks. Chandru Shankar
They should invest in the technology that answers the problem they are currently trying to answer; there can be no one-size-fits-all-answer. The key is that any technology should solve a problem in the simplest, easiestto-operate way, so that their people can get on with adding value to the organisation as effectively as possible. Ben Salder It’s all about increasing visibility and reducing manual processes – any investment towards these areas will contribute to success. Wireless data collection is a great example; it allows employees to continue on their day-to-day, collecting valuable data in real time, as they go. From this you can easily determine where to improve overall supply chain productivity. Emma Holland
Emma Holland Regional IT Manager EMEA & Asia Pacific, Progress Rail, A Caterpillar Company
Ben Salder Change management and organisational development consultant
What does digital transformation look like in the manufacturing industry?
Chandru Shankar Industry director and EMEA business solutions lead for the manufacturing and resources sector, Microsoft
87% of manufacturers are ready to invest in productivity-enhancing digital technologies
It looks like it does at home – our digital information connects seamlessly, making our lives easier. In the manufacturing environment, this means having a “single source of truth” that everyone uses and updates. As it does at home, technology in manufacturing should allow information to be accessed and shared quickly and with ease; it should allow us to make more effective decisions, more quickly than ever before. It should also enable us all to add value to the organisation more effectively than ever before. Ben Salder Digital transformation in manufacturing is simply embracing technology. It’s taking the paper drawings from the shop floor and designing/showing them on mobile devices. It’s using robotics to reduce the number of manual processes in production, saving time and cutting costs. It’s ensuring that data can be reported in real time and be visible to everyone who needs it, improving product development and servitising solutions. Emma Holland
Digital transformation in manufacturing is all about capturing more accurate data, then analysing and using that data to inform decisions and developments. Do not be scared of technology; it is an essential part of any modern business. If there is part of your business where in the past technology may have been seen as a risk, it should now be seen as an enabler. Darren Crisp Digital transformation can enhance organisational performance in many areas. It means re-envisioning how organisations engage with their customers, optimise their operations, transform their products and empower their employees to do all of the above in a much better fashion. Chandru Shankar
61% that say they can selffinance investment
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Manufacturing 2020
Manufacturing 2020 Manufacturing is undergoing a revolution as advanced connectivity and big data unleashes a new wave of innovation. The upheaval is not confined to the factory floor – business models are also in flux as manufacturers get new insights into how their products are used and repackage products into services WHAT BENEFITS DO COMPANIES EXPERIENCE FROM INDUSTRY 4.0 PROJECTS? 0%
10%
20%
30%
40%
50%
WHAT BENEFITS DO COMPANIES EXPERIENCE/EXPECT FROM FACTORY CONNECTIVITY?
Flexibility of production
Reduced staff costs
631 303 189 132 71
Faster sales cycle
Improved quality
Better working environment
SOUTH KOREA
Increase in renewals efficiency
Energy savings
JAPAN
Increase in customer satisfaction
Higher gross margins
UNITED STATES
Reduced quote to order cycle time
FRANCE
Increase in revenue, sales per customer deal conversion
Increase cross and up-sell opportunities
UK
68
Reduced staffing needs
CHINA
International Federation of Robotics
WHAT IS THE 4TH INDUSTRIAL REVOLUTION?
Increased production
WHERE ARE THE ROBOTS? (MACHINES PER 10,000 MANUFACTURING JOBS)
60%
PwC 2017
Reduced overall cost of production
1760s
1890s
First industrial revolution Human muscle was replaced with iron machines, initially powered by water and then by steam engines
Second industrial revolution Railroads, the telegraph and electricity opened the way to modern-style mass production
Improved accuracy
New orders won through improved competitiveness
Reduced production cycle time
Improved health and safety
Columbus/ The Manufacturer survey
WHAT ARE THE CONCERNS REGARDING IMPLEMENTING OR CONTINUING TO USE FORMS OF CONNECTIVITY?
38% Payback period is too long or too uncertain
64%
50%
38%
Initial development costs are too high
Lack of expertise
Cybersecurity concerns
12% Difficult defining business case
Columbus/ The Manufacturer survey
1980s Third industrial revolution Analog and mechanical devices are replaced by digital controls
2010s Fourth industrial revolution Robots and sensors connect via the internet of things to flexibly serve connected customers
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IoT, AI and big data provide the insights that line workers and decision-makers need
The customer must be at the centre of the digital strategy Break down internal barriers to deliver highly tailored products and services
Colin Masson, global industry director of manufacturing solutions, Microsoft
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t’s easy to get obsessed with technology – it is the key enabler of today’s revolution – but the harder part of the transformation is cultural. It’s about putting the customer experience and their business outcomes at the centre of everything. That means realigning engineering, manufacturing and the supply chain around delivering a world-class sales and service experience. It means new thinking about optimising customer satisfaction and loyalty metrics such as Customer Satisfaction Scores or Net Promoter Scores rather than production efficiency. The list of technologies that can help this realignment is endless. Manufacturers should be investing in, or at least exploring, the internet of things (IoT) and industrial automation, cloud, big data, artificial intelligence (AI), robotics, 3D printing and more. But at the heart the revolution is data. We are putting telemetry on everything, creating a data-driven culture with a single version of the truth. Fundamentally
the fourth industrial revolution is being powered by the ubiquity of IoT data coming from sensors in the factory combining with data pouring in from the outside world, such as the wealth of information being generated by smart cities, smart buildings, smart offices and even connected cars. Choosing an IoT platform is a big decision; start by identifying one that can match the scale of your ambitions. There is another convergence that is driving business transformation. Inside the firm, the digital technologies used by IT, operations and engineering are converging. By embracing the digital transformation, manufacturers are empowering employees to be more productive in
Inside the firm, the digital technologies used by IT, operations and engineering are converging
modern workplaces with apps and intelligent working methods such as the use of cobots, where employees and robots co-operate shoulder to “shoulder”. It’s also about optimising operations through smart factories and supply chain solutions powered by intelligent edge and cloud. It means the transformation of products and business models, using insights from smart connected products, advances in modelling such as “digital twins”, and more agile end-to-end business solutions. We see manufacturers, and individual businesses within manufacturing organisations, at various stages in their journey to servitisation, transforming products into services. Some are driving more customer engagement through traditional call centres or differentiating their product through (sometimes IoT-connected) field service. Increasingly, though, we are also seeing the transition to full “product-as-a-service”, where they sell flying hours instead of jet engines; car coatings rather than paint; water savings rather
than treatment plants; and cleaning services rather than cleaning chemicals. This journey requires that they break down the silos between internal systems such as ERP, CRM, PLM, and SCM. Instead, they need to connect “things” – people, data and processes – with more agile systems of intelligence that can keep pace with the new speed of business inherent in delivering highly tailored products and services. Manufacturers need smart factories that can make their smart products and be at the core of much more agile supply chains. They also need intelligent shop floor solutions and business apps that augment people, and address the growing skills gap in manufacturing. IoT platforms are a key enabler, yes. But we also need big data and AI on top to provide the insights that line workers and business decision-makers need. We need both intelligent cloud and intelligent edge technologies to power robots and cobots in the factory of the future. Big data also needs big compute to accelerate the product innovation unleashed by enhanced insights into customers, enabled by the ability to iterate through digital twins of devices, product designs, supply chains, and customer usage in digital cities. Can your legacy ERP, CRM, PLM and SCM systems keep up with the new speed of business? At the heart of this digital world, however, lies the simplicity of customer insight. Whether you’ve got a smart product that can beam back data on customer use, or you use traditional client engagement channels, it’s those insights that will differentiate your future products and services –and decide the success or failure of your digital transformation. Colin Masson is global industry director of manufacturing solutions at Microsoft. He has been a strategic advisor to major automation vendors such as Invensys and Rockwell Automation.
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We are transforming our business by harnessing big data to act in a more predictive way...
Meet our experts Neil Clarke Head of business unit, Weetabix Gunther Boehner Director, assembly, BMW Oxford John Forkin Managing Director, Marketing Derby Carl Haycock UK printer operations director, Domino Printing Sciences Stuart Wood Operations director, Applied Photophysics
Manufacturing 2020
What advice would you give to a manufacturing company to help them grow?
How are you transforming your business?
Engage, equip and empower your employees – they’re your best asset. Stuart Wood
We are using live data in the manufacturing process to drive improvements in yield through automated test equipment. It removes subjective human assessment and poke-yokes the product [prevents errors] at each stage rather than fixing at the end of the process. Carl Haycock
Do what your customers want and need. Better still, tell them what they need and be that provider. The business model is now a relationship one. You can be niche or mass, but the key part is that you provide fantastic service and quality, consistently. Neil Clarke Manufacturers need to have a strong focus on their core processes, which directly relate to customers’ needs and pain points. Flexibility in manufacturing is also key. Gunther Boehner Growing the business needs to be led by the customer. You need to decide where your business best offers value over and above the competition. Think about what your customer really wants rather than what you’re currently offering. Carl Haycock 1. Plan for post-Brexit protection. 2. Invest now in your people and skills. 3. Invest in research, development and infrastructure. 4. Consider new global markets. John Forkin
Q&A
We are transforming our business by harnessing big data to act in a more predictive way – whether that is for maintenance practices, improved techniques or looking at how to improve the satisfaction and motivation of our workforce. Gunther Boehner We need to focus on mastering the stability (and repeatability) that comes with lean manufacturing. You can't just jump from the second manufacturing revolution to the fourth, and sadly very few UK manufacturers truly understand what this means. On the whole, I don’t believe that the UK is on top of transforming to true lean manufacturing. As an industry, we don’t have the foundations in place for lean manufacturing, everyone is still working with traditional procedures. There’s a lot of focus on tomorrow, rather than resolving these basics. Stuart Wood We are constantly growing our data visibility, through hardware and software. We are also using new machinery technologies to continually automate for consistency and lower costs. Live data gives realtime feedback to the operator on what they need to correct. Neil Clarke
Close that skills gap For success, the skills of the traditional workforce need to be integrated with new, digital-savvy recruits
Kris Oldland
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anufacturers need to develop a new generation of digitally savvy talent. But at the same time, our ageing workforce means tens of thousands of skilled technicians and professional engineers will retire over the next decade. Taken together, these two problems underline how closing the skills gap is vital to making manufacturing future-proof. Yet many organisations are not yet taking action. If we all know that the industry is subject to these disruptive changes, why aren’t more manufacturing businesses ensuring that their “traditional” workforce is equipped and ready to excel in their new environment? After all, when it comes to growth, it is the people within the business – not the machines – that will identify new revenue opportunities and then drive the programmes that will deliver success. It is also people who will inspire and develop the next generation of manufacturing excellence. This is where training and retraining your employees becomes key. During this transition to the smart, connected factory it is quite likely that some of your more traditional employees will have a difficult time adapting to your new processes, technologies and expectations – making training all the more necessary. It is crucial to balance the investment in acquiring new talent with the investment in your current workforce. Untrained employees become unhappy employees, inhibiting growth and business success. The best businesses will have high-quality training facilities that are not only suitable for onboarding new employees but also for continuous development programmes and regular training courses. Processes and systems
within human resources must also be robust and actively tracking the goals and development aims of individuals. Employees who feel they are inadequate, underachieving or unsupported will not be satisfied in their work and will be less likely to want to contribute to driving your business forward. Truth is, you will need the skills of your 'traditional' workforce to integrate with the 'digitally savvy' talent you may bring from outside. This is key to closing the skills gap. In addition to looking after your existing workforce, manufacturing organisations must make greater efforts to engage with schools and universities to generate more enthusiasm for advanced manufacturing among young people. By making manufacturing businesses more visible within communities, locally, regionally or nationally, we will be able to show young people how careers in manufacturing are a tremendous opportunity.
Adoption of apprenticeships can play a key role Additionally, adoption of apprenticeships can play a key role in creating a more prepared and qualified workforce. Any manufacturer of any size is now paying the Apprenticeship Levy – it makes no sense to waste this opportunity. It is clear that manufacturers have their work cut out surviving through these turbulent times. However by ensuring that they invest in their people – existing and new talent – as well as the latest technologies, they will be well on their way to success. Kris Oldland is publisher and editor-in-chief for Field Service News, which is read by field service professionals across the UK, mainland Europe and in the United States.
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Turning data into action Darren Duke, business analyst, Zotefoams
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hat advice would you give a manufacturing company today to help them grow? Ensure you identify the real value-drivers for your customers and the internal measures you use to maintain this value. Also, run a regular portfolio management exercise and see how changes in the next year could move products around the Boston Matrix, which analyses businesses based on their growth and market share. Consider what opportunities or problems will arise and prepare for them. To grow their business, in which technologies should manufacturers invest? How will this investment ensure their success? There is no magic technology, only a magic attitude – embracing and reviewing all technology options. The right investment will power your business ahead of your competitors if you are open and creative. Investing in good analytic and reporting software can help you spot trends or outliers early, allowing you to respond in an agile way. Used right, this will help you react faster to market and customer needs. What are the key technology trends that manufacturers must master? The drive towards fast data analysis, interaction through social networks and a move towards a light, app-based suite of systems.
66% of UK manufacturers said digital technologies will be a massive growth driver for the industry
38% remain confused by proliferation of solutions in market
79% think digital technology will broaden their customer base via servitisation
We are interested in providing real time or near-real time automated analysis using artificial intelligence (AI) to highlight trends that a human may miss and to respond more efficiently. AI should help us be more proactive in quality, product and customer service areas. We also really like the way the technology is changing to allow us to pick up social media trends and industry conversations, giving market insights such as untapped customer needs. Younger business system users are used to an app-based ecosystem. We particularly like systems like the ERP Dynamics 365 where we can design our own apps to increase productivity or streamline business processes. What does digital transformation look like in manufacturing? Traditionally, the manufacturer has been far-removed from the customer. Transforming to get insights into market direction or financial movements will move the manufacturer closer to the customer and their needs. This will accelerate the movement from risk averse, capital intensive industries to a smarter, faster, analytical and results-driven business with predictive process controls and improvements. How are you transforming your business? We are looking at new technology around sensors and predictive product quality as well as the more established predictive maintenance areas. Using AI we will try to pick up machine problems based on real time monitoring before the business reports any issues with the plant equipment.
The aim is to have large screens in the maintenance workshop so each morning the team can review what’s going on and any likely problems and provide mitigating actions prior to a machine stop. We hope being proactive can keep the machines running, increasing overall equipment effectiveness. A lot of our product inspection is manual and visual. We particularly like the machine learning capabilities of the Microsoft cloud that could help us find issues further back in the production process, before inspection teams receive the products. This is on top of better monitoring of plant equipment running conditions, allowing us to deal with any non-conforming product sooner and prevent it being shipped to customers. How do you see technologies such as ERP, CRM, data analytics, cloud and the internet of things helping manufacturers? These technologies truly help manufacturers respond faster to changes in the market as well as helping to understand the value of their products from a customer or end user perspective. They also allow businesses to reduce the time spent gathering data from a range of ad hoc systems and spend more time on the decision. Darren Duke is a business analyst and IT consultant at Zotefoams plc, a leading global manufacturer of lightweight, high-performance foam products based in London. Zotefoams is shortlisted for the Innovation in Technology Award at the 2017 PLC Awards.
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Future of Manufacturing 2020
The slow journey to the paperless factory Sure, a sheet of A4 is convenient. But your data won't be exact or real time
Kevin Bull
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ore than a decade after we started talking about the paperless factory, it has yet to arrive. While the internet has revolutionised how we operate, with connectivity transforming how information moves around the enterprise, it is common to see a lot of paper moving around too – and this is especially true on the shop floor. In my role, I am fortunate to have the opportunity to visit many manufacturing businesses every year. Each one of them is unique and at a different stage of their digital transformation journey. Yet even on the most digitised factory floor, I still see a lot of paper. Why is this? Do practical problems connecting systems mean that they only have faith in paper documents? Are the physical properties of paper, which can be stuffed into a pocket or quickly pinned up on the wall of a break room, somehow more convenient? Is the widespread use of paper in itself a problem? Or is it potentially the symptom of a problem? I believe that the production of these documents alone must be considered a form of waste that requires elimination – and that’s without considering the regulatory and quality management consequences when paperwork goes missing. The capabilities that come under the term 'digital transformation' can address this problem, introducing large-screen displays, electronic data collection methods and automated data analytics tools into day-to-day shop floor activities.
I’ve seen tremendous success in a number of manufacturing organisations who have made the 'untraditional' leap to move to go paperless. In one case a manufacturer improved their production efficiency ratings by over 35 per cent. They also improved timeliness of deliveries, boosting customer satisfaction levels and competitive edge, not to mention the cost savings and (paper) waste reduction. In a paper environment, your data may be close but it won’t be exact, and it’s certainly not real time. Only live, accurate, connected data gives you the tools you need for deep analysis, highlighting inefficiencies in your supply chain at any point of your choosing, which you can then improve.
In one case a manufacturer improved their production efficiency ratings by over 35 per cent The many success stories of paperless factories makes adoption seem like a no-brainer to me. Yet I am sure that on my next factory visit, I will still be digging through piles of paper to find the latest productivity report…
Welcome to your future… success at your fingertips Preparation is the key to success. It brings business opportunities – and warning of incoming threats
Kevin Bull is product strategy director at Columbus UK.
Mary Hunter
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anufacturers are beginning to embrace technologies and innovation, but many are missing the mark. What does this mean? When it comes to innovation, many people find inspiration in a remark often attributed to Henry Ford: “If I had asked people what they wanted, they would have said faster horses.” Your customer does not know what possibilities are out there, but you do. It is one thing for manufacturers to explore technologies and follow 'the right trends', it is another to put those innovations into practice and to evolve fast enough to meet the demands of the end consumer. Your customer needs you to come up with the right solution, and
they don’t just want answers to today’s problems, they need you to predict the problems of tomorrow and solve them before they arise. Yet companies continue to fall from grace, failing to see the importance of addressing the future customer and instead focusing on business as usual.
MARY HUNTER Managing director, Columbus UK
This is not an effective strategy. What got you here, will not take you there. You must be able to look to 2020 – and beyond – to deliver an effective and future-proofed business. Consumer demands are pushing towards higher productivity, efficiency and flexibility, placing immense pressure on manufacturing as an industry. The only path to survival is through a difficult journey of adaptation, differentiation and digitalisation. Everyone has heard of digital transformation but many are still unsure of its meaning and the benefits it brings. Think of it this way: while predicting the future isn’t possible, we can get close and embracing digital is how you can get there. Enhance your understanding of your customers’ future goals, analyse the changing context and trends around you and ask yourself what capabilities,
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Raconteur
63% of manufacturers believe they can maintain or improve profitability
75% of manufacturers have an export-based growth strategy
84% say the UK has drive to succeed as an industrial nation
skills or technologies do you need and where can you acquire them? You must learn how to anticipate future requirements and be agile while taking the actions needed to put your business firmly ahead of the competition. As technology continues to advance at an alarming rate, leaving many businesses behind, remaining aware of your changing surroundings has never been more valuable. By keeping ahead of the trends transforming manufacturing you will not only realise more potential business opportunities, but you will get advance warning of incoming threats. Preparation is the key to success. Future-proofing your business isn’t something that can be achieved after your next board meeting, it’s a never-ending process of analysis, development and continuous improvement, fuelled by an appetite for innovation and learning. This might mean adopting new and improved technologies such as the internet of things, data analytics and machine-learning. It may also mean shifting your business model to 'product-as-a-service', and it could mean you need to increase investment in training. The result should be a manufacturing organisation that can stand the test of time. Welcome to the manufacturers of 2020, 2030 and beyond. Find out more about Columbus here: www.columbusglobal.com
You must be able to look to 2020 – and beyond – to deliver an effective and future-proofed business
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