4 minute read
Going from good to smart
from AMT APR/MAY 2023
by AMTIL
Where are you on the journey? Digital transformation in manufacturing is certainly not new but remains a hot topic.
Maybe you started the digitisation journey way back with the installation of a PLC or CNC machine (with CAD/CAM) but have not gone any further. Perhaps you installed an MRP or ERP, and it feels like you ended up with silos of data. Maybe you have integrated an IIoT solution but are disappointed in the results. Do you see value in data and analytics and machine learning (ML) but struggle to justify and deliver a satisfactory return on investment? The digital transformation process can seem complex and confusing, yet it is extremely beneficial when done well. To help you understand and navigate the process, we have outlined a high-level three-stage approach to digital transformation.
1. Create a great factory
To have a ‘smart factory’, you need a ‘really good’ factory. As a baseline, you need to measure and understand your processes, business KPIs and the challenges you face, then analyse these to identify solutions that will maximise your ROI and business benefit.
If you rely heavily on manual resources, consider ways to ease this burden. Repetitive, mundane, and high-risk tasks can often be automated to reduce the need for additional labour or allow a reallocation of existing labour resources for better outcomes. Using visualisation (SCADA) will improve process management with fewer resources than if done manually.
Implement simple OEE/MES solutions to address the challenges experienced with productivity, performance, quality, production costs and compliance. If you haven’t done so, consider using Smart Andon for real-time feedback on production issues; Energy Management for monitoring and managing energy consumption; and Digital LEAN for digitalising your preferred LEAN methodology.
2. Vertical Integration – more advanced MES
If you have most of this in place, you are certainly in a good position to capitalise further on digital transformation. At this point in the journey, it is worth considering more advanced uses of MES and vertical integration. If you have systems such as an ERP, MRP, PLM, or similar, there is a chance they operate as silos. Integrating these systems with MES creates the ‘backbone’ for transformation and provides high-quality data for analytics, leading to significant
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business value. The key is to have as much interoperability as possible. When combined with machine learning (ML) and artificial intelligence (AI) solutions for process improvement, you have a powerhouse for effective change.
3. Horizontal integration
A business at this stage of the journey has done well in improving internal processes. It is now ready to look outside the four walls of its manufacturing operations to claim a competitive advantage using a connected supply chain. The aim is to differentiate yourself in a few significant areas including reducing the costs of raw materials through quality compliance, improving the efficiency of asset and material supply via automated inventory management, and achieving greater speed to market based on demand and customer trend feedback. The key to success will lie in the two-way exchange of information between you and your supply chain using a collaborative approach. Your ‘view’ of the supply chain should be both backwards and forwards, from suppliers to distribution centers to storefronts.
It is important to remember that digital transformation is not simply an engineering project; it is a journey. At Mescon, our goal is to help you be an excellent manufacturer and empower you to move from Good to Smart. If you are not sure where on the digital journey the business is, or you are keen to make a difference but are unsure how to get the best from your current environment, why not have a conversation with us?
Mescon Stand MA425 mescon.com.au
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