3 Keys for Digital Transformation in Manufacturing

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3 Keys for Digital Transformation in ManufacturingDave MorfasDirector of Product Marketing, Plex


Overview

• What is Digital Transformation

• Why manufacturers care

• How Digital Transformation applies to you

• How you benefit

• 3 keys that manufacturers can use to guide the Digital Transformation journey


We Have an Evolving Digital Economy

World’s Top 5 companies are digital

Internet (digital) economy is the world’s 5th largest

https://hbr.org/2016/10/the-missing-political-debate-over-the-digital-economyhttps://www.bcg.com/documents/file100409.pdf

https://hbr.org/2016/10/the-missing-political-debate-over-the-digital-economy


Manufacturing is Evolving in Parallel – With the Help of Technology

46%Technology had an effect on

manufacturer growth

Source: State of Manufacturing Technology Survey, 2016

Nearly 20%Are making their next technology

investment in smart/connected tools

https://www.plex.com/resources/white-paper/state-of-manufacturing-technology-2016.html


Digital Transformation is an Evolving Strategy

• Automating processes

• Becoming data-driven

• Connecting machines and people


Operational Challenges Abound

Source: CIO Survey, IDG, January 2016; Q - From an IT perspective, what are your top challenges with respect to your business operations today?

Top IT Business Operations Challenges


And Manufacturing Challenges Stack Up

Manual processes

Errors

Paper-based processes

Poor visibility

Lack of traceability

Waste

Scrap

Information silos

Quality

Efficiency

Faster decisions Accurate decisions

Cost pressure

Profit


System Complexity is Growing

Source: CIO Survey, IDG, January 2016Source: CIO Survey, IDG, January 2016

Manual processes

Errors

Paper-based processes

Poor visibility

Lack of traceability

Waste

Scrap

Information silos

Quality

Efficiency

Faster decisions Accurate decisions

Cost pressure

Profit

Complexity

See increase in complexity in their organization’s ERP ecosystem

70%


UNLOCK THE POTENTIAL OF PEOPLEInformed, engaged, and effective workforce

CONTROL THE PLANT FLOORReal-time visibility and control at the manufacturing moment

CONNECT THE BUSINESS TO EVERYTHINGStreamlined communication, collaboration, and connectivity

MAKE DECISIONS WITH CONFIDENCE AND SPEEDHolistic contextual view of the enterprise

3 Keys for Digital Transformation in Manufacturing

ControlControl

Connect

BetterDecisions

Unlock

Control

Connect

Transform

Unlock


Look Familiar?

Get rid of manual, error-prone processes

Eliminate paper handoffs

10

Maintenance Work Orders

Quality Reports

Gage Control

Work Instructions

Bulletins

Production Records


Plant Floor – You Can’t Manage What You Can’t Measure…or Track

Shipping

Inventory

Production

Inspection

QualityEngineering

Maintenance


SENSORS

Digital Transformation Helps Control and Connect the Plant Floor


ANALYTICS

SENSORS

Advanced Analytics Makes Data Actionable


Plants

Customers

Partners

Supply ChainHQ

Digital Transformation Helps Connect Everything and Everyone


“Connectedness” is Key to Managing Manufacturing

How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes?

Source: CIO Survey, IDG, January 2016: How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes?

90%For improving operational efficiency

82%For improving productivity

80%For improving communication and collaboration


A Connected, Digital World Ushers in Industrial Internet of Things (IIoT)

IIoTThe network of physical objects — devices,

sensors, machines, tools, vehicles, buildings, and products — that collects, measures,

receives, transmits, acts, and exchanges data in an industrial application


Digital Transformation Promotes IIoT

• Smart manufacturing/IIoT listed as a key factor in near-term growth

• Manufacturers are on the cutting-edge of modern technologies

• Modern technologies drive high data capture

Connected devices employed in manufacturing operations today

Hand s

cann

ers

Consu

mer m

obile

devic

es (e

.g., p

hone

, table

t)

Senso

rs

IP-e

nable

d too

ls an

d mac

hines

Low-p

ower

Blue

tooth

devic

es

Quality

scan

ners

Smart th

ermos

tats o

r ligh

ting c

ontro

ls0%

10%20%30%40%50%60%70%80%90%

100% 94%

79%

50% 46%37% 32%

24%


Digital Transformation Helps Unlock the People Potential


Fear Not: People are Still Core to the Future of Manufacturing

• Manufacturing is changing

• Skillset demands are changing

What do you see as the biggest obstacle to your company’s growth next year?

Shortage of skilled workers

Lower-cost competitors

Inability to take advantage of new technology

New competitors

Regulation

Shortage of capital

Weak demand among U.S. customers

Weak demand outside the U.S.

Other (please specify)

0% 5% 10% 15% 20% 25% 30%

28%

22%

5%

4%

3%

9%

17%

9%

3%



Digital Transformation Supports Untethered Workers


Modern Digital Solutions are the Way Forward

Yesterday’s Software Systems

• Accounting focus• Plant is an afterthought• Rigid processes• Limited access & visibility• Disconnected data

• Versionless, always current software• Plant floor to top floor connectedness• Flexible, collaborative processes• Always-on, real-time data• Single source of truth

Modern Software Systems

VS.


Cloud – The Right Path to Digital Transformation

Percentage of respondents that valued the following capabilities that cloud technologies deliver

1. Connectivity to systems, machines, suppliers, customers (98%)

2. Continuous innovation (97%)

3. Common data model (96%)

4. End-to-end solution (96%)

5. Lower cost IT resource requirements (96%)

6. Access to the customer community (93%)


https://www.plex.com/resources/white-paper/state-of-manufacturing-technology-2016.html


“We automatically report production at a highly detailed level, increase equipment uptime, and ensure a consistently high-quality part output. It completely changes the way we do business.” – Marwood Metal Fabrication

Results: Reporting, Quality, Uptime


“The automated, paperless system saves time and effort, and helps with ISO compliance.” – Newman Technology

Results: Time Savings, Eliminate Errors


With the Cloud model, it has allowed us to access information from anywhere, anytime. We are no longer chasing data from one source to another. It is now readily available to help us make informed and proactive decisions.” – Hatch Stamping Company

Results: Data access, better decisions


Summary

• It’s about transforming the business

• Eliminate archaic, manual paper processes and errors

• Gain visibility and control of your plant floor

• Connect machines, people, and your enterprise

• Unlock your people potential to focus on business improvements

• Embrace innovation, modern tools and capabilities

3 Keys for Digital Transformation in Manufacturing

Technology

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