Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its...

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© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential, proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. Simon Jacobson VP Research, Supply Chain @simonfkj Transforming Manufacturing Operations In The Digital Age

Transcript of Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its...

Page 1: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is

proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

Simon Jacobson

VP Research, Supply Chain

@simonfkj

Transforming Manufacturing Operations In The Digital Age

Page 2: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

93%OF MANUFACTURERS CLAIM

MANUFACTURING OPERATIONS ARE

AN INTEGRAL COMPONENT OF THEIR

DIGITAL SUPPLY CHAIN STRATEGIES

Page 3: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

2 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

71% OF MANUFACTURING DIGITIZATION

EFFORTS ARE SEPARATE BUT

PARALLEL TO DIGITAL SUPPLY CHAIN

INITIATIVES

Page 4: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is

proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

Page 5: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

4 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Digital Pressures The Manufacturing Improvement Portfolio

Peak of Inflated

Expectations

Plateau of

Productivity

Expecta

tio

ns

TimeInnovation

Trigger

Trough of

Disillusionment

Mainstream Adoption

Corporate Production Systems

Synchronized BOMs

Network Design

OEE

Security

Digital Manufacturing

Supplier Quality

Emerging Practices

IoT

AR/VR

Cloud

AI

Digital Twin

Digital Thread

Smart Robots

Cyber Physical

Systems

Mobile

Factories

Source: “Hype Cycle for Manufacturing Operations Strategy, 2018”, Gartner 2018

Page 6: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

5 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Digital Pressures The Manufacturing Improvement Portfolio

Peak of Inflated

Expectations

Plateau of

Productivity

Expecta

tio

ns

TimeInnovation

Trigger

Trough of

Disillusionment

Mainstream Adoption

Corporate Production Systems

Synchronized BOMs

Network Design

OEE

Security

Digital Manufacturing

Supplier Quality

Emerging Practices

IoT

AR/VR

Cloud

AI

Digital Twin

Digital Thread

Smart Robots

Cyber Physical

Systems

Mobile

Factories

Separate Logic And Emotion

Source: “Hype Cycle for Manufacturing Operations Strategy, 2018”, Gartner 2018

Page 7: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

6 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Can You Change the

Wheels on a Moving Bus?

Page 8: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

7 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

INTERNAL or RESTRICTED

1. Disrupt How Outcomes Are Approached

2. Automate Beyond The Factory

3. Unlearn and Hack Your Culture

Page 9: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

8 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

1. Disrupt How Outcomes Are Approached

2. Automate Beyond The Factory

3. Unlearn and Hack Your Culture

Page 10: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Customer Experience

Digital Doesn’t Change The Outcome. It Alters Your Approach.

Transparency

Cost

Quality

Service Level

Page 11: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

10 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.

Pace of

Discovery,

Learning and

Execution of

Change

Automated

Breadth of Data Access + Analytical Techniques, and

Organizational Capability

Manual, Ad Hoc,

Start, Stutter, Stop

Change How Your Access and Use Production Data

Automated

Visibility

ImproveUnderstanding

Reconfigure Knowledge

Transform

Source: “Artificial Intelligence Will Make Manufacturing Smarter—But a Learning Curve Comes First”, Gartner, 2018

Page 12: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

11 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.

Digitized Production SystemImprove Material Yield Improve Without Emotion

What Can Be Achieved

Source: “Evolve Your Manufacturing Intelligence Strategy to Keep Pace With New Analytics Requirements” Gartner, 2018

Page 13: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

12 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

1. Disrupt How Outcomes Are Approached

2. Automate Beyond The Factory

3. Unlearn and Hack Your Culture

Page 14: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

13 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

New Operating Models Go Beyond Smart Factories

Product Life Cycles

Network DesignLifecycle Cost

Demand

Customer

Smart Factories

Page 15: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

14 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Cultivate Ecosystems Of Connected Processes and Data

Two years from now Today

Partner

Partner

Partner

Partner

Partner

Production

Plan Source Deliver Service

Partner

Partner

Partner

Partner

Manufacturing Processes/Activities That

Are Completely Digitally Automated

Base: All Respondents, n = 205, excludes don’t knows

Which of the following manufacturing process/activity are completely digitally automated today and which will be two years from now?.

24%

36%

32%

22%

33%

46%

43%

34%

Changeovers

Product Release

In-process QA/QC

Incoming Inspection

32%

34%

37%

43%

41%

40%

Production Planning

Materials Logistics

Reporting/KPI Management

Page 16: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

15 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Production Data Is The New Influence: Are You Aligned?

Source: “Survey Analysis: Lights Out Manufacturing is More Than Factory Automation” (G00329420)

Customer Service

Planning

(Short and Long Term)

Logistics and Delivery

Sourcing and Procurement

Manufacturing Operations

Page 17: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

16 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

1. Disrupt How Outcomes Are Approached

2. Automate Beyond The Factory

3. Unlearn and Hack Your Culture

Page 18: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

17 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

INTERNAL or RESTRICTED

Smart Manufacturing is a mindset shift and a change to

existing organizational

culture

Page 19: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

18 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Inability to recruit and hire fromthe outside

No knowledge management process for capturing undocumented knowledge from subject matter experts

Existing employees struggle to embed digital into their day-to-

day work

Lack of skilled workers inside the company to support

digitization plans

No formal career path/skills development for

existing employees

Lack of mentorship programs between new and

current employees

56%

52%

50%

50%

41%

40%

Becoming Digital Is More Than Recruitment Internal Skills and Talent Concerns Require Attention

Q: When digitizing the manufacturing operations, what were/are/will your company's top constraints with respect to skills and talent?

Base: All Respondents, n = 205, Life Sciences = 41

Percentage of Respondents Sum of Top 3 Rank Shown

Percentages may not add to Sum due to rounding

Page 20: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

19 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

INTERNAL or RESTRICTED

Nurture Natural InteractionHuman Machine Collaboration

Develop Digital Dexterity

New Competencies Learn Intelligently

#fail

Source: How to Overcome Three Obstacles to Accelerate Innovation in Manufacturing Operations With Bimodal Gartner, 2017

Page 21: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

20 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

INTERNAL or RESTRICTED

1. Disrupt How Outcomes Are Approached

2. Automate Beyond The Factory

3. Unlearn and Hack Your Culture

Page 22: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

21 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

INTERNAL or RESTRICTED

You Can Change the

Wheels on a Moving Bus!Source: “Self Assess Your Smart Manufacturing Strategy” & “Understanding the 5 Stages of Gartner’s Maturity Model for Manufacturing Operations” , Gartner, 2018

Page 23: Transforming Manufacturing Operations In The Digital Age1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This presentation, including all supporting materials,

is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

ReconfiguringManufacturing Operations In The Digital AgeSimon Jacobson

617.851.9061

[email protected]