Knowledge Base

Manufacturing Trend: Agile and Adaptive Operations

2/01/2011 by Jack Burnett

SMB manufacturers tell us that in order to be successful they have to meet their customers' desire for shorter and unpredictable lead times at competitive prices - with quality being a given.  The uncertainty in the US economy and global market means they must quickly respond to changes in customer demand.  To meet customer and market demands, the trend for manufacturers is to improve operations to be more adaptive and agile, and thus avoiding increases in finished goods inventory.

Agile and adaptive manufacturing means that manufacturers have visibility of their production capabilities and their manufacturing value chain, and have the ability to quickly react to changes in customer demand, supply, and conditions on the shop floor.

Manufacturers are more agile, flexible and adaptive to the changing marketplace when they have an automated management solution enabling real-time coordination, showing key performance indicator data in dashboards, and allowing employees to manage by exception with alerts. The trend is to give the decision makers one place to go to easily view raw materials availability, see customer demand and know the constraints on the shop floor - all in real-time.

Automated management solutions supporting agile and adaptive manufacturing provide a centralized, synchronized, real-time view of the enterprise - across the front office and shop floor to value chain partners.  ERP systems help, but unique gaps exist between ERP, the shop floor and SMB manufacturing partners.  Implementing manufacturing visibility solutions bridge these gaps, consolidating shop floor and enterprise data that enables efficient decision-making necessary for agile manufacturing operations.

Manufacturing operations visibility systems push data from engineering and operations into ERP systems and pull data out from ERP to the shop floor and the web, creating a unified view of orders, schedules, quality control and inventory.  They provide real-time visibility of the shop floor, event management and analytics that enhance problem solving, accountability and predictive operations.  As a result of implementing a manufacturing visibility solution supporting agile manufacturing operations, SMB manufacturers see that product quality improves and variability is reduced.  Another key result is that custom jobs and rush orders become just part of the standard process, opening up new opportunities.

Agile and adaptive manufacturing is rarely achieved at SMB manufacturers using disparate spreadsheets and standalone proprietary systems that do not share critical business data.  When different, unconnected IT systems are used to collect and maintain business data, the information is often not useful to employees for day-to-day operations due to the cumbersome nature of finding the information and pulling it all together.  SMB manufacturers end up with silos of information in each department resulting in redundant, wasteful management and usage.

It is important that the manufacturing visibility solution integrates the front-office to the shop floor and with vendors and partners.  In a recent global study by the Aberdeen Group, manufacturing companies that automate and harmonize workflows throughout their company and with suppliers and partners produced 66% greater improvement in reducing the total time to delivery. The study found that these companies gained more than 10% in market share.

Manufacturers wanting to be more agile and adaptive can start by studying their operations processes and how they respond to changing customer demand and marketplace.  An assessment is performed of the current visibility of the shop floor, value chain partners, and decision making processes.   People, business processes, information systems and technology infrastructure are noted.  Typically the first application created is automating production scheduling, implementing as an extension to ERP or as a cornerstone application of the new manufacturing visibility system.

TwinEngines' custom manufacturing operations and web portal solutions are one option for SMB manufacturers.  Our experience and solutions cover the spectrum of manufacturers using spreadsheets and Microsoft Access and no visibility of the shop floor to those that need to evaluate and extend their ERP to the shop floor and partners on the web.  SMB manufacturers find us most valuable in assessing the current ERP/MRP/financial systems in place and creating the strategic technology roadmap showing the right mix of legacy systems, third-party products and custom systems on top of the technology infrastructure needed to support agile and adaptive manufacturing now and in the future.

To continue the discussion on agile and adaptive manufacturing or to discuss your manufacturing operations management capabilities, please contact us at 404-522-4262 x606.

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