Balance In A Push Towards Advanced Manufacturing

With a renewed focus on manufacturing in North America in the past few years, many companies are looking for opportunities to improve manufacturing operations and efficiency. This is especially important given the dearth of manufacturing talent that companies are experiencing across a wide range of industries.

To state the obvious, advanced manufacturing is not simply new, state-ofthe-art equipment. Advanced manufacturing should be thought of as a suite of tools aimed at improving the overall efficiency and effectiveness of the entire manufacturing operation. i.e., equipment, quality, information/data, capital deployment, profitability, costs, personnel, and such.

While manufacturing is often quite advanced in the automotive sector, many other market segments struggle with the journey to advanced, efficient, and flexible manufacturing operations. Additionally, volumes in many industries are lower, potentially requiring a different approach to advanced manufacturing. Advanced manufacturing and a process-driven culture promise significant improvements but must be approached in a pragmatic and prioritized manner that fits the organization.

Differentiation

In many industry segments, we are at an inflection point where manufacturing investments will further differentiate the competitiveness of companies in the marketplace. Maximizing profits today may result in compromising competitiveness in the future. Not only do these investments have the potential to pivot into more profitable ventures, but they can also result in a significant market differentiation for customers.

An example of this exists in the US Recreational Vehicle industry. In an industry that traditionally grows with very slow evolutionary changes, leaders are investing in new manufacturing technologies and processes that will see significant benefits in the near future. The end result wit I materialize into a wide chasm between the “haves and the have-nots.”

The goal/objective

The objective in the journey towards advanced manufacturing should be to find the right solution that fits the organization. A manufacturing operation with a limited number of SKUs may be better served by a simple but process-driven system rather than a Carpe ERP implementation. To state it another way, it’s not about the systems but rather about the underlying processes. How mature and robust are the underlying processes? What are the critical gaps? Can today’s solution prow with the organization’s vision of growth and maturation?

The Challenge

Investment resources are almost always a constraint in any manufacturing environment. Additionally, people and internal resources to implement solutions are often scarce. What approach fits the company best? Which investments and initiatives will bring the most benefit? What should the plan look like? Can the plan grow with my growth goals? How should the plan be executed? What are the expected benefits? It’s difficult and complicated!

The Journey

The journey to an advanced and optimal manufacturing operation should be a continual pursuit and never end. The first question is often, “Where do I start”?

Many companies start out with very limited and focused operations and then grow into a more complex businesses. Systems, processes, equipment, and such must evolve and mature as the business grows. Unfortunately, by the time the business realizes that it needs to evolve, these solutions are often quite expensive. Rather than just looking at our feet as we walk, we need to lift our heads up to prepare for potential obstacles on the road ahead.

Fit and Balance

Solutions that fit large multinational corporations are quite often not the right solution for a small to mid-sized company. It’s important to appreciate different approaches across industries and companies to better understand the best-individualized approach for your company.

Disparate systems that work well can be more effective than a large integrated ERP system implementation. Establishing good and robust fundamental processes and procedures early on, has a substantial impact on the smooth transition to more efficient and effective operations in the future.

What’s the right balance between investment and benefit for a particular organization? Are today’s investments positioned to grow with the company? Ultimately, the advanced manufacturing journey is an investment. As with all investments, you’re looking to balance the investment amount, risk, and reward, manage your resources effectively, and mature into a leader in your industry. What does your path look like?