Leading manufacturers are leveraging a variety of digital approaches to support Manufacturing Operations Digital excellence. This enables them to handle higher mix, support a changing workforce, gain visibility, and more. This is a path to improve both operating costs and performance and move the needle on crucial business metrics such as profitability, ability to innovate, and resilience.
Recommendations by Priority
Note that Pillars appear in order from most relevant to your challenges to least, not necessarily numerical.
We hope these recommendations spark useful thought and conversation to help prioritize next actions for your company.
Pillar 1Industry 4.0 Progress
Pillar Description: Industry 4.0 is a strategy to use decentralized information to manage operations proactively across an enterprise and value chain. The objective is to optimize resources, processes and outcomes for profitable, quick response. We use this term to cover a range of visions such as Smart Manufacturing, Digital Transformation, and others. Industry 4.0 creates the "Smart Connected Factory" with supporting technologies such as automation, IoT, cloud computing, and MES.
Industry 4.0 Status
Question: Which of the following best describes your status in the Industry 4.0 journey?
Your answer: Planning, not yet executing 1. Does your Industry 4.0 plan align with your strategic objectives to handle mix, and innovate to disrupt and your challenges with errors, manual handoffs, and data prep? We recommend starting where you will gain the most.
Question: Which of the following best describes how complete your data integration is from equipment, plant, and enterprise systems?
Your answer: Mostly incomplete 2. Examine whether data disconnects are preventing your ability to handle mix, and innovate to disrupt, and which integrations would most help alleviate, manual handoffs, or data prep. If there are many, consider projects that might improve more than one integration deficit.
Best Practices: Leaders have been investing in Industry 4.0 and digitalizing their operations for some time. As a result, they are more likely to have many relevant projects already delivering benefits and streamlining manufacturing. These efforts have helped support continuous improvement efforts and make the company more agile to manufacture effectively and efficiently in today’s ever-changing environment.
Pillar 4Decision Making
Pillar Description: Making decisions is at the heart of every operation. Since manufacturing operations move and change rapidly, making decisions quickly using all of the appropriate data is crucial to success, but not easy. Companies must use their data management capabilities to convert data into information and insights to drive decisions and action. With the workforce skills shortage, experienced people cannot be the primary resource for sound best-practice decisions.
Use a Visual Digital Twin of the Plant
Question: How well does your company do at transforming data to information to insight to decision to action?
Your answer: Fair 1. Closing the loop from data to actionable decision can be daunting, but you are on the path. Identify one end-to-end workflow or business process that will handle mix, and innovate to disrupt or help with errors, manual handoffs, and data prep. If needed, focus on the stage where you have a success to copy or that slows the decisions the most.
Question: Does your company use a digital twin of the plant to support and accelerate decision-making?
Your answer: No 2. While a factory digital twin may sound daunting, there are more paths to get to this today than you might know. Start to explore what your MES and other operations software providers have available, and start reading up on the benefits of having a system where the virtual and actual manufacturing operation can reinforce your improvement efforts.
Best Practices: Leaders are focusing on ensuring that they can quickly collect data, enrich it with context, and turn it into information. With information in hand, people and systems can analyze for insights and make confident decisions. Ideally, this information is available in a visual digital twin of the facility to show where issues are at any given moment. Top Performers are more likely than Others to use a digital twin of the plant
Pillar 2Manufacturing Execution System (MES) Effectiveness
Pillar Description: Manufacturing Execution System (MES) deliver information to optimize production activities from order launch to finished goods. MES guides, initiates, responds to, and reports on plant activities as they occur. To do so, MES puts into context a wide array of current and accurate data from both operations technology (OT) and information technology (IT). MES can deliver mission-critical information about production activities across the product lifecycle, enterprise, and supply chain via bi-directional communications.
Strongly Agree MES Is Perceived Well
Question: Which of the following statements do you agree with for your company's current MES or Manufacturing Operations Digital System?
1. Streamlines work for frontline workers:
Your answer: False
Seek a new MES that will streamline work for your frontline worker. Until that is implemented, you may struggle to handle mix, and innovate to disrupt. That may also be the cause of errors,. Seek out an MES that your operators, technicians, and supervisors love because it makes their jobs easier.
Keeps up with changes in products, processes, and materials:
Your answer: False
If your manufacturing operations needs are changing faster than your MES can accommodate those changes, you will struggle to handle mix, and innovate to disrupt. Upgrading to a more agile MES could help address your challenges with, errors.
Provides data fast enough to impact performance:
Your answer: True
Excellent news that your MES provides data fast enough to impact performance. You are in the minority there, and it will help you to handle mix, and innovate to disrupt.
Creates high value for resources expended:
Your answer: False
It seems your MES is not delivering giving you the return you could get. We recommend you seek out a new MES that meets your needs with less effort and input.
Best Practices: At the center of Industry 4.0 and Manufacturing Operations Digital is MES. Every company has a system to manage manufacturing execution. Some are modern and sophisticated, others have been in place for a decade or more. Not every company has executive support or has invested the resources such a system needs to thrive and deliver full benefits over the long term. Top Performers are more likely to have made that commitment in both human and financial resources.
Pillar 3Data Capabilities
Pillar Description: Data management and governance are the foundation of manufacturing Operations Digital as well as analytics and AI. Smooth flowing, clean and reliable data is crucial for a complete understanding of an operation. Industrial dataOps is complex, however, with the variety of real-time and time-series data from equipment, automation, unstructured data from cameras and sensors, in-plant software, as well as transactional and event-based data.
Excellent Capabilities
Question: Consistent management of all plant data
Your answer: Fair 1. How can you manage your data more consistently? Start where it might impact your performance and help you to handle mix, and innovate to disrupt. Focus on what you can do now, not on, data prep. Don't expect perfection, but improvement.
Question: Agree on a single source of truth
Your answer: Fair 2. Agreeing on a single source of truth can be challenging, but it is crucial for you to solve errors. We recommend you explore setting up technology systems used by multiple disciplines (manufacturing, quality, maintenance, etc.) with agreed-on processes to build trust.
Question: Put IT and OT data into a common context for analysis
Your answer: Fair 3. If you have some areas where IT and OT data gets put into context, use that positive experience to build out. You may seek next projects to tackle errors, manual handoffs, and data prep issues. Seeing the full picture is crucial to manufacturing Operations Digital success, so keep improving.
Question: Where are the gaps in your data flow that typically need manual effort, handoffs, or intervention?
Your answer: Enriching or putting data in context, Analyzing multi-source data, Making decisions, Taking appropriate action4. Manual handoffs are a barrier to solving errors, manual handoffs, and data prep and to handle mix, and innovate to disrupt. Start a project to digitalize one of the steps or processes that has manual handoffs. Decide whether to eliminate handoffs in one critical end-to-end workflow or solve it at one stage of the data-to-decision, but move to improve.
Best Practices: Investing in technology to ensure data flows seamlessly delivers value to improve and accelerate processes. Smooth and automated data flows across equipment, automation, MES, and enterprise systems bolsters a company's agility. Top Performers have better processes and capabilities across a wide array of data management and governance within the manufacturing operation and beyond. Top Performers are about three times as likely to have excellent data capabilities as others.
Pillar 5Empowered Workforce
Pillar Description: Manufacturers are faced with a skills shortage, so it’s imperative that the workforce is empowered with the tools and information they need to do their jobs efficiently and effectively. This applies to the operators, technicians, and supervisors working in the facility. Digital empowerment can also support operations support personnel doing scheduling, maintenance, and continuous improvement as well as others in the offices in supply chain, engineering, development, sales, marketing, and finance.
Excellent Capabilities
Question: How well does your company perform at sharing best practices?
Your answer: Fair 1. You have had some success in sharing best practices, and in today's skills-short environment, you need to expand that capability. We recommend you convene team members from different shifts, plants, and/or related disciplines meet around one topic from among the need to handle mix, and innovate to disrupt or tackle errors, manual handoffs, and data prep. Be sure to improve the process, replicate it, and store the best practices in your digital systems.
Question: How well does your company perform at collaborating among teams?
Your answer: Fair 2. We recommend you ask a few questions: How might you improve your collaboration? What is keeping you from being in the top tiers for this crucial element for improving operations? Are there issues with mindsets, incentives, processes, or software that prevent world-class collaboration? Identify and resource a project that would help you address one or more of those issues.
Question: Which of the following groups typically have easy access to the plant data they need to do their jobs?
3. Plant Personnel (i.e., operators, technicians, supervisors):
Your answer: True
Excellent that your operators, supervisors, and technicians have what they need to do their jobs readily available. This can help you to handle mix, and innovate to disrupt.
Operations Support personnel (i.e., schedulers, maintenance leads, manufacturing engineers, quality, continuous improvement):
Your answer: False
We recommend you create a project to ensure your support personnel in maintenance, quality, and scheduling get the operations data they need. Start by identifying one process or data set that might help you alleviate the challenge(s) of errors, manual handoffs, and data prep, or specific challenges for those groups.
Office Personnel (i.e., procurement, planning, finance, product engineering, sales, marketing):
Your answer: False
Isn't it time to create a project to ensure your office-based workforce has the operations data they need? Start by identifying one process or data set that might help you alleviate the challenge(s) of errors, manual handoffs, and data prep.
Best Practices: No matter how sophisticated or automated a manufacturer becomes, the employees are crucial to success with manufacturing operations. Employees from the shop floor to the top floor should be empowered to do what is best for the company at any time. Top Performers are over three times as likely to be excellent at sharing best practices and collaborating easily across disciplines or teams.
Next Steps
Improve Manufacturing Operations Digital Maturity
Leaders have made more progress in Manufacturing Operations Digital excellence, have better experiences with MES, have better data capabilities, are better at decision-making, and have empowered the workforce.
Specifically, Leaders are:
- Far more likely to have gained benefits from Manufacturing Operations Management
- Meeting their cost reduction target
- More than 2X as likely to have significantly improved performance on OEE, Yield, Throughput, Capacity Utilization, On-time Shipments, Time to Market and Quality.
Follow the recommendations in this report to increase your company's Manufacturing Operations Digital maturity and achieve the operational and business benefits.
