The move to digital supply networks can be daunting, especially when organizations consider how exactly to implement these solutions into their existing supply chain. With so much information and hype about digital, it can be hard for organizations to know what works for them and what might be a hidden roadblock. However, when the digital transformation is implemented correctly, it can also seamlessly enable an organization’s digital operations.
Smart Predictive Maintenance accelerates the maintenance journey and has potential to increase machine availability and visibility across an entire asset network.
New techniques can improve plant throughput
Maintenance professionals today can face a number of issues, often including outsourcing, cost cutting, scarcity of experienced labor and increasing complexity of equipment. Whatever the challenge, maintenance and reliability professionals share a common goal – to maximize machine availability. Yet traditional maintenance programs can only take you so far. In fact, machine failures go well beyond statistical time-based failure. Recent studies show that only 20 percent of machine failures are time-based, while the other 80 percent of failures occur either in the infant mortality startup phase or most often due to random or unknown failure.1 But truly, no failure is random, only that the root causes have gone unidentified. Modern maintenance techniques can help detect impending failures before they happen with typically more accuracy than time-based approaches. For manufacturers, exceptional asset maintenance can be a strategic differentiator in improving a plant’s throughput, efficiency, quality and safety.
In the first two posts in this series, we looked at some of the surprising ways the extended global automotive industry is transforming into a new mobility ecosystem and offered a glimpse at one way we might use that ecosystem for faster, safer, cleaner, and more efficient travel.
It’s been 15 years since the term “Internet of things” was coined by Kevin Ashton, a technologist specializing in sensors and RFID.1 Since then, various applications of IoT have evolved in industries such as automotive, healthcare and consumer goods, among others. The various technological developments in the IoT space can be explained through the information value loop (IVL), which serves as a linchpin for evaluating these advancements, and linking them in order to create value for companies as well as customers. Refer to the paper, “The more things change: Value creation, value capture, and the Internet of Things” for detailed discussion of the value loop.
In our last post, my colleague Scott Corwin highlighted some of the most noteworthy and, frankly, surprising developments we’ve witnessed in the mobility arena in the last few months.
Are you aware of the number of times you use the sensors embedded in your smartphone without even knowing it? Be it to tilt your smartphone to view an image in the landscape position, or to automatically deactivate the touchscreen while on a call, the sensors in your smartphone are always in action. These examples are barely the tip of the iceberg. Sensors have been a part of smartphone design since their inception. The current generation of smartphones are embedded with as many as 16 sensors, and each sensor is always active, receiving and sending signals, for use by apps or directly by users.
Manufacturing history is a study in evolution, as industry has quickly adopted and adapted to new technologies, from power generation and electrification to automation and the digital age. That’s why the way that cars and other products are manufactured today looks very different than it did when Eli Whitney first developed a simple production line based on interchangeable parts used in the manufacturing of muskets.
Posted by Michelle Drew Rodriguez
In the first two blog posts about the 2016 Global Manufacturing Competitiveness Index, I discussed country rankings and global competitiveness drivers uncovered in the Index which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness. The study follows earlier versions released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world.
As a follow up to the posts on rankings and competitiveness drivers identified in the study, I also wanted to take a deeper look at how global manufacturing companies can succeed, which you can learn more about in the full study.
Five tips for global manufacturing success
Here are five key insights from the report that manufacturing executives should consider to position their companies for future competitiveness:
- Ensure talent is “the” top priority: A focus on creating differentiated talent acquisition, development and retention strategies to be regarded as “employers of choice,” as well as identifying and nurturing new models of collaboration that leverage key sources of talent outside of the organization will be key. As talent is ranked as the most important driver of competitiveness by executives around the world, the competition among nations and companies is expected to be fierce.
- Embrace advanced technologies to drive competitive advantage: Advanced technologies are increasingly underpinning global manufacturing competitiveness. Leading 21st century manufacturers have fully converged the digital and physical worlds where advanced hardware combined with advanced software, sensors, and massive amounts of data and analytics is expected to result in smarter products, processes, and more closely connected customers, suppliers, and manufacturing. Predictive analytics, the Internet-of-Things (IoT), both smart products and smart factories via Industry 4.0, as well as the development and use of advanced materials will be critical to future competitiveness.
- Leverage strengths of ecosystem partnerships beyond traditional boundaries: Adoption of innovation strategies aimed at embracing a broader ecosystem approach, developing and taking advantage of integrated manufacturing and technology clusters and partners, will be a growing imperative going forward. Competitiveness will be directly correlated to the strength and robustness of an organization’s collaborative networks and eco-systems.
- Develop a balanced approach across the global enterprise: Increasingly sophisticated tools and strategies will be required to optimize the global manufacturing enterprise from a talent, technology, operational, financial, tax and regulatory perspective. The core of this approach is achieving a successful balance across a variety of drivers, including talent management, innovation portfolio, cost competitiveness, manufacturing footprint and supply chain in challenging and rapidly evolving new markets. Indeed, both leading companies and countries are taking a more balanced approach by building a foundation for growth across multiple drivers of global competitiveness.
- Cultivate smart, strategic public private partnerships: Governments are becoming increasingly aware of the significant benefits a manufacturing industry provides to national economic prosperity. Likewise, manufacturing companies are keenly aware of the role government policy can play in their success. Therefore, many nations with unfavorable or overly bureaucratic manufacturing policies are working to improve and reform those, invest in greater economic development, and strengthen overall manufacturing infrastructure, while seeking to partner in more productive ways with businesses. Leading companies, in turn, are targeting new, smart and strategic public/private partnership models to help drive improvements not possible alone, resulting in non-traditional business-public sector alignments as the global competitive playing field undergoes a significant transformation at both the company and country level.
In summary, our full study offers a critical and timely jumping-off point for companies and economies as they make strategic investments in advanced manufacturing technologies and enact public policies designed to spur post-industrial era manufacturing growth. We hope, both government heads and company CEOs adopt key takeaways from this study to reshape the future of manufacturing.
Be sure to visit our GMCI Interactive Website to drill down into additional findings.
If you didn’t have an opportunity to view the first two post in the three part series, please be sure click the following links to read about additional findings from the Global Manufacturing Competitiveness Index study: competitiveness rankings and drivers of manufacturing competitiveness.
Join the conversation on @DeloitteMFG #GMCI16
Posted by Michelle Drew Rodriguez
In the first blog post I recently wrote about the 2016 Global Manufacturing Competitiveness Index, which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, I primarily discussed country rankings revealed in the Index. The study is modeled from earlier versions we released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world. A number of interesting findings arose this year.
Posted by Michelle Drew Rodriguez
In a study I recently coauthored with several colleagues (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, executives indicated the United States is expected to be the most competitive manufacturing nation, moving China into the number two position by 2020. The study-2016 Global Manufacturing Competitiveness Index-by Deloitte Touche Tohmatsu Limited (Deloitte Global) and the Council on Competitiveness (Council)-follows earlier studies we released in 2010 and 2013. This year’s rankings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world, and a number of interesting findings arose.