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 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: Excellent 1. Kudos on achieving what few companies can claim - closing the loop from data to action in the manufacturing operation. Keep up the great work and consider how you can best leverage this crucial capability.
Question: Does your company use a digital twin of the plant to support and accelerate decision-making?
Your answer: Yes, consistently 2. You're ahead of most manfacturers with your digital twin of the factory efforts. Keeping it updated and the data flowing between virtual and actual results will be ongoing work, but you now have a great way to adapt to change and begin to address keeping pace with change, and gaining insights.
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 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: Many initiatives underway 1. Great news that you are working on several fronts. Given your need to adapt to change and your challenges in keeping pace with change, and gaining insights, focus on projects to deliver those.
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 adapt to change, and which integrations would most help alleviate, , gaining insights,. 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 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 adapt to change. 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: True
It's great that your MES approach can keep up with the pace of change in your business and facilities! As unpredictable as your environment can be, this is a crucial capability for managing manufacturing operations and to adapt to change.
Provides data fast enough to impact performance:
Your answer: False
Start the process to buy an MES that provides data to your operators, supervisors, and technicians fast enough to impact performance. It may help you overcome keeping pace with change, and gaining insights. Improving MES could also be essential to adapt to change.
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: Good 1. Feel good that you have make progress on managing the varied plant data consistently. Now it's time to correct the issues that keep you from being excellent at this. Line up issues in order of impact on your ability to adapt to change. Or choose something to tackle keeping pace with change, and gaining insights.
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, keeping pace with change,. 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: Good 3. Good job bringing IT and OT data into useful context for your decision-making and improvement capabilities. Examine where you could still bring more context to your data that might also help with keeping pace with change, and gaining insights or to adapt to change, and keep your momentum.
Question: Where are the gaps in your data flow that typically need manual effort, handoffs, or intervention?
Your answer: Analyzing multi-source data, Making decisions4. Good work! You've been eliminating manual handoffs and have only a few left. Identify which handoff steps or workflows to fully automate for the best impact on keeping pace with change, and gaining insights, or to adapt to change.
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: Poor 1. Your team needs to know what works well, particularly as new employees join. Sharing best practices can start as simply as having team members from different shifts, plants, and/or related disciplines meet around a path to adapt to change or reducing keeping pace with change, and gaining insights to focus their conversation. Once you have started this, seek 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: Poor 2. We recommend you ask a few questions: What is keeping you from being in the top tiers for collaboration? 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: False
We recommend you create a project to empower your frontline operations workers with the data they need. Start by identifying one process or data set that might help you alleviate the challenge(s) of keeping pace with change, and gaining insights.
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 keeping pace with change, and gaining insights, or specific challenges for those groups.
Office Personnel (i.e., procurement, planning, finance, product engineering, sales, marketing):
Your answer: True
It's fantastic that your office staff have the information they need accessible from the operation. This can help you to adapt to change, and improve overall outcomes.
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 MES or MOM
- Met their cost reduction targets
- Significantly improved performance on OEE, Yield, Throughput, Capacity Utilization, On-time Shipments, Time to Market and Quality (more than 2X as likely).
Follow the recommendations in this report to increase your company's Manufacturing Operations Digital maturity and achieve the operational and business benefits.