5 Key Areas of Manufacturing Industry Strengthening with IT Solutions

The manufacturing industry is changing with leaps and bounds and technology is a big part of this disruptive and constructive change. Many manufacturers have already jumped onto the bandwagon of technological integration and are taking advantage of IT solutions like industrial robotics, cloud-ERP, 3D printing, predictive analysis and Internet of Things (IoT). But not all technologies lead to desired results.

In order to see the desired outcomes, the implementation of technologies isn’t enough. Though every manufacturing industry knows that digital innovation resides at the centre of success, its real motive is to cater to the core requirements of the various manufacturing aspects. Right from having a modernized asset management system to a resilient supply chain, digital innovations are driving the growth of the manufacturing industry.

But for many manufacturers, it’s easier said than done. While the initial stage looks lucrative, its maintenance demands effort and requires improvement. The good news is that thriving with an abundance of technical ecosystems is very much possible. But the catch is that one needs to know the areas to apply and execute the ecosystems.

By focusing on the right regions, it becomes easy to drive digital transformation and get a hold of the competition. Here, we concentrate our discussion on five critical areas of the manufacturing industry which are being nurtured by IT solutions and are guiding manufacturers towards sustainable achievements.

1. Centralized Management Systems

Every industry strives to have simplified and structured management. Compared to other sectors, the manufacturing sector consists of a few extra management areas including management of physical and digital assets, inventory management, data storage and order management and staff management. This necessitates the need for a centralized management system with controlled, role-based and fully-secured authentication.

Cloud-based ERPs are proving extremely effective in resolving these issues. With cloud-based ERPs managers at every level can have access to modify and update data of their niche areas, but the top management can have the authority to view, modify, update and lock the changes. A digitally centralized management system helps industries to eliminate superfluous actions and reduce ambiguity.

2. Warehouse Operations

Warehouse operations are crucial to any manufacturing industry. Warehouse management combines various processes like storing and keeping goods in mint condition, tracking stock, and meeting customer demands. It requires constant and meticulous planning along with optimum utilization of equipment, space, resources and workforce. Certainly, it takes more than money and manual management to handle warehousing requirements.

IT modernization has done a wonderful job in managing and handling warehouse operations skillfully and efficiently. Organizations are already employing top-notch warehouse management systems (WMS) like NetSuite WMS, Fishbowl Inventory and 3PL Warehouse Manager for making workflow capabilities smart and accurate. Whether it’s tracking the status of purchased and returned goods or monitoring multiple warehouses, a competent WMS can streamline the complex processes and can help in minimizing overall costs and improving services.

3. Supply Chain

Supply chain is often considered the backbone of the manufacturing industry. Right from procuring raw materials to distributing finished goods to retailers and consumers, the supply chain involves everything including people and resources to activities and services. It acts as the connecting channel of several processes starting right from procurement to purchasing.

Management of the supply chain involves supervising all the processes and ensuring that they are all in sync with each other. Smart IT solutions not only sharpen the supply chain but also help in the development of sustainable and resilient systems. By engaging in multiple ecosystems like SAP solutions, blockchain technology and WMS, one can efficiently and easily manage a complex yet innovative network of supply chains which include an intricate web of manufacturers, vendors, logistics and consumers.

4. Machine and Production Monitoring

Machines make up the core of the manufacturing industry. Prior to the integration of technologies, the performance of the machines was a concerning factor for owners as they are prone to technical faults and malfunctioning. A Britannica article enlists one of the worst nuclear accidents of the U.S. that took place on Three Mile Island, particularly because of machinery malfunctions and manual errors in operating procedures.

This is the chief reason why the manufacturing sector is employing a range of technology disciplines to make machines smarter and production monitoring easier. An efficient and functional machine and production monitoring system can prove highly beneficial for:

- Preventing delays in shipments by reporting technical faults to suppliers on time

- Keep track of operability of machines and facilitate proper maintenance thereby preventing accidents

- Check and verify the whole spectrum of manufacturing instead of keeping a limited view of production 

- Hassle-free recalibration of equipment for production

As stated above, machine and product monitoring involve a combination of technologies rather than depending on any single tool. The IT technologies which are amalgamated for its formulation are:

- Industrial Internet of Things (IIoT)

- Blockchain technology

- Artificial Intelligence, Machine Learning and sensor technology

- IT/OT integration

5. Real-time Data & Analysis

The market today is all about the data game. The more data you can gather, organize and analyse in real-time, the more successful your business can become. This applies to the manufacturing industry too. Gathered and processed data can prove beneficial in mitigating risks, meeting customer demands, identifying problem areas and finding viable solutions. But in order to accomplish these purposes, implementing appropriate tools is necessary.

Tons of real-time raw data are generated every day via multiple sources which include AI-driven tools, mobile devices, social media, sensors, networks and log files. The raw data holds immense potential and power to propel businesses towards unprecedented growth, given they are processed properly.

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In order to address this issue, a separate IT discipline called Big Data and Analytics has come into play which signifies the use of advanced tools and techniques against massive data sets gathered from various data sources. These techniques are applied to both semi-structured and unstructured data sets to decode valuable information from them.

Some common technologies used in this discipline are:-

• Data Management Tools: Before you can extract information from data, it needs to be handled and organized. With the help of specialized software, companies can segregate data and organize them under proper categories.
• Data Mining Tools: Data mining tools make use of software and systems powered by Machine Learning algorithms to sieve large datasets, reveal patterns and provide actionable insights.
• Predictive Analytics Technology: Predictive analytics technology uses statistical algorithms and helps companies in making more accurate predictions by analyzing historical data and forecasting possible outcomes.

Benefits of Technology in the Manufacturing Industry

Technology holds undeniable advantages for the manufacturing industry. Its transformative effects can be vividly felt as it has improved the production systems and increased the efficiencies of manufacturing companies. But some of its most noticeable benefits are mentioned below.

• Smart manufacturing: Right from automating operations like automated packaging to using advanced analytics, the integration of technology has led to the development of smart manufacturing solutions. Predictive maintenance, supervising production processes and maintaining multiple warehouse locations, smart solutions have made manufacturing intelligent, accurate and specific.
• Better Resource Management: Whether it’s money, materials or time, unnecessary and extra processes require extra resources. Automating operations like shipment tracking, stock updates, production reports and automated packaging can free up resources thereby minimizing costs and resulting in better employee engagement, management and productivity.
• Track and Improve Production Quality: Production today is not simply about producing goods. It’s about taking care of all other things associated with it like recycling resources as much as possible and reducing wastage and emissions. By integrating technical solutions, it becomes easier to track the parameters and keep them in check.
• Precision in Order Management: One of the biggest problems faced by the manufacturing industry is to sync between product demand and production. While surplus production can often come in handy to address shortages, it is not always beneficial, especially in the food sector. Manufacturing technologies can lead to precision in order management.

With the help of ML-powered algorithms, predictive analysis and production monitoring systems, owners can decide how much goods to produce so that there is less wastage but enough goods to meet market demand.

Conclusion

Investing in manufacturing technologies is undoubtedly a wise decision because not only it propel the business towards smart digitized transformation but also helps in keeping up with today’s competition. These technologies are turning out to be essential in addressing some typical problems of the manufacturing industry like establishing communication channels between vendors, suppliers and customers, improving production quality and utilizing big data.

However, they have their disadvantages too. The most concerning issue related to manufacturing technologies is the loss of jobs. While some say that technical systems are going to replace manual labour, others speculate that these are indeed going to result in better employment opportunities. Also, the initial configuration cost may seem expensive.

But, the pros of IT solutions for manufacturing outweigh the cons, and this is the reason why companies are willing to take this risk. The companies know that sooner or later, these technologies are ultimately going to make their way into one or the other process. So it’s better to embrace it now.