Five orders of productivity for Product and Manufacturing
Product and Manufacturing
Activities in product and manufacturing are manually performed and paper-based.
Technology use is focused on communications and record keeping.
Pakistan is known for high-quality garment production but is reliant on manual
processes.
The garment industry is the second largest sector in Pakistan and companies rely on
labor-driven processes fulfilled by factory workers, contract laborers, and
homeworkers,
who are usually paid on a per-piece basis. Because of electricity supply issues,
machines are manually operated to increase productivity. Order management and cost
sheets are usually handled manually or with limited computer support (e.g., using a
spreadsheet to create invoices).
Data is gathered to manage inventory and identify problems and fundamental quality
issues at product or line level. Improvement of quality and better consistency
across batches
will result in manufacturers being able to secure better and more lucrative
contracts.
There will be fewer errors with invoicing, which results in manufacturers being paid
faster and with fewer disputes.
Analytics and the use of KPIs allows for further increases in quality and output, as
well as improved consistency of production. Manufacturers will be able to monitor
production equipment and implement programs for maintenance and repairs,
allowing for scheduling of downtime and reductions in breakdowns which cost them
tens to hundreds of thousands of dollars per hour in lost productivity.
Fourth order:
Organization
The emphasis on measurable performance, visibility, and automation extends to
suppliers
and customers. Disruptions to supply or demand shocks will result in early alerts to
more advanced organizations. This will allow them to find alternate supply sources
or
schedule resources to accommodate surges or constraints. Automation in the
manufacturing
industry results in reduced lead times, allowing producers to win contracts against
those who are not able to produce as quickly. Robotics can allow greater loads or
speeds
than may be humanly possible, which means manufacturers can increase throughput.
Asset issues on the shop floor can be addressed before they become critical, and
within minutes instead of when equipment fails. Production loads can be switched to
alternative lines or sites to ensure throughput is only minimally affected, and
maintenance
can be performed at the initial stage instead of waiting for a catastrophic
breakdown.
Germany is the creator of the Industry 4.0 concept and has sophisticated
manufacturing
capabilities.
There are plenty of examples of manufacturing autonomy and predictive
capabilities in the automotive and aerospace industries in Germany. For instance,
BMW
is using machine learning/AI in its smart manufacturing facility to assist in the
quality
inspection process. BMW has multiple models being produced on the same production
lines, producing 9,000 vehicles per day and supporting up to 1 billion feature
combinations (for the BMW 3 series). Platform-driven smart analytics capabilities
support innovative automation and assistance systems, visual inspection for quality,
process
control, and asset maintenance for anomaly detection.
Manufacturers will be deeply integrated with their supply chains and able to
automatically
adapt to changing ecosystem opportunities in real-time. Constraints in component or
raw
materials supply or disruptions to shipping routes can be addressed through the use
of
marketplaces or pre-negotiated contracts. Decision automation through a connected
ecosystem will allow for redirection of shipments or placing orders with alternate
suppliers. In the case of demand spikes, production capacity can be scaled up
through marketplace arrangements where additional factory capacity is purchased and
brought online. Under-utilized factories are able to develop alternate revenue
stream
by making their capacity available to other producers. Products will incorporate
embedded information capabilities that will extend product offerings through
services,
creating new business models. Examples include connected products that can predict
component failure, location-enabled chipsets to track lost electronics.