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Writer's picturePablo Tellaeche

DIGITAL TRANSFORMATION IN MANUFACTURING

Updated: Mar 22

Digital transformation in manufacturing
Digital transformation in manufacturing
 
Extract

The Digital Transformation in Manufacturing, known as Manufacturing 4.0, is essential to improve efficiency, quality and flexibility in production and delivery of value to customers. By adopting technologies such as the Industrial Internet of Things (IoT), data analytics, advanced automation and others, the administrative-managerial and commercial-operational areas are adapting their processes to remain competitive and drive innovation and growth in the manufacturing industry.


Contents

 

A Paradigm Change

The Digital Transformation in Companies and Organizations more than an option,It is a necessity for business success in today's digital age, requiring the adoption and integration of digital technologies in all areas of the business to improve efficiency and productivity;and implies a comprehensive organizational change, with a well-defined transformation strategy, a evolution of processes towards best practices and one high performance culture with transformational leadership.


In all industries,the integration of physical and digital work systemsIt is a continuous and multidimensional process that demands an approach focused on continuous improvement. The case of manufacturing, an industry that covers a wide range of products and services, from prospecting to marketing, to satisfy a specific need in the market, faces the need to adapt and adopt new tools to remain competitive.


This integration of Technology and Human Talent applies to all stages of the manufacturing process, from the commercial, through the administrative and productive, to the logistics. Thus facilitating communication and collaboration between different actors for faster and more accurate decision making that optimizes the use of resources, mitigates variation and improves workflow.



Manufacturing 4.0: Technology in All Aspects of Business

In the Digital Transformation in Manufacturing, also known as Manufacturing 4.0, technologies play a central role in improving operational efficiency, product quality and flexibility in production; while reducing costs and allowing companies to quickly adapt processes and products according to market demands. These technologies have varied applications and place a strong emphasis on connectivity between machines, systems and processes to collect data in real time and optimize the delivery of value to the customer..


Each company requires its own package of solutions based on its individual conditions and realities derived from the variety of combinations between products and services that they can cover, since the specific application of each technology and its effective integration in different contexts will not be the same for everyone..


Key Technologies in the Digital Transformation of Manufacturing

The Administrative-directive areas, they have to connect different sources of information For focused and informed decision making about their areas and processes, they require solutions with a focus on analytics and operations management:

  • Operations Data Mining and Data Science that allows you to discover hidden patterns, trends and opportunities that can drive relevant and informed business strategies and decisions.

  • Digital Productivity Tracking to monitor the progress of its processes and provide security and certainty to investment partners through digital control panels with key performance indicators (KPIs).

  • Early Warning Dashboards that display notifications when inventory levels of materials, tools and machinery are near their limits to adequately manage replenishment and preventive and/or corrective maintenance, as well as other specific demands of the operation.


The Commercial-operational areas, who mainly seeks to maximize their profitability, as well as making the most of their resources and achieving greater productivity in a highly competitive business environment, require solutions with a focus on productivity, and the use and exploitation of spaces and information:

  • Comprehensive Technological Architecture in which documentary processes are systematized, optimized and automated to free teams from administrative burden and allow them to concentrate on delivering value to the client. This architecture must contemplate and connect the tools that companies in the industry use such as:

  • PMSs (Project Management Software) that improve coordination between different work teams.

  • ERPs (Enterprise Resource Planning) that optimize workflows and process efficiency.

  • SCMs (Supply Chain Management) that allow more precise monitoring of the supply.

  • CRMs (Customer Relationship Management) that facilitates lead tracking and sales generation.

  • O&Ms (Operations and Maintenance) that facilitate preventive maintenance and optimize the use of resources.

  • Commercial-operational integration that connects your tools and commercial advantages provided by a CRM with your tools and competitive advantages provided by an ERP to simplify and achieve a continuous flow between your operations

  • Distribution and facility requirements in which areas of opportunity between operations are addressed through the identification of patterns of behavior and movement of materials, labor and tools/equipment with the use of intelligent IoT sensors to achieve optimizations that reduce operating times and costs, and ensure the safety of personnel and the quality of the product.

  • Implementation of Lean Manufacturing to achieve a cultural and thinking change that allows you to truly improve efficiency and reduce waste in your operations, covering all areas of knowledge of the PMI plus its annex corresponding to the sector, regulations and applicable international standards such as ISO.


Challenges and Obstacles in the Digital Transformation of Manufacturing

To make the most of these opportunities, it is necessary to overcome the challenges and obstacles associated with the adoption of new technologies and foster a culture of innovation and continuous learning in the organization. Among the most important are:

  • Resistance to change: Many companies and professionals are accustomed to traditional work methods and may show fear and/or resistance to adopting new tools and processes.

  • Lack of Standards and Interoperability Protocols: The diversity of system providers and the multitude of individual ways to configure them, each with their own standards and data formats, make collaboration and integration between different technological applications difficult.

  • Cybersecurity: Digital connectivity carries the risk of cyberattacks and security breaches that must be addressed and prevented by implementing appropriate computer security measures.

  • Implementation Cost: Investments in software, equipment and training may be excessive for the financial capacity of smaller companies, limiting their ability to adopt advanced digital technologies.


Companies mustCarefully evaluate return on investment of digital transformation and explore funding options and grants available at a local, regional or national level to support the adoption of digital technologies in your sector. At the same time,Technologies and projects that offer the greatest added value should be prioritized.


With this, you can provide appropriate training and support to help employees become familiar with new technologies and understand how they can improve their work. In turn, the interconnection of supply chains through digital platforms and the proliferation of technology-based business models will offer new opportunities for collaboration and value creation across the industry.



Conclusion: Achieving Digital Transformation in Manufacturing Requires Good Discernment

Technological needs will vary depending on the variety of combinations between products and services that each company covers. However, there is already a wide range of previously developed applications that address several of the technological needs of organizations, and can be adopted as long as they can be easily integrated with the technological architecture of the company to operate efficiently, fluidly and effectively.


As more companies and software developers create and implement their own solutions and make them available to the market, the role of internal IT departments and external IT consultants in piecing together application and systems puzzles will become more important in years to come.


The benefits of this transformation are driving a new era of manufacturing, in which innovation and efficiency are driven by the integration of digital technologies into all facets of production. The adoption of technology in offices and work spaces is and will continue to be a key differentiator to stand out in an increasingly competitive and globalized market.


 

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About Pablo Tellaeche (Author):

Owner and main consultant of TACs Consultores, Speaker and University Professor; seeks to bring a true and positive Lean Culture and Digital Transformation to every company with which he has the pleasure of collaborating.

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