5 Difficult Things About Manufacturing
It would be too simplistic to say that manufacturing in this day and age is harder than it was in the past as, in the context of each distinct time period, the relevant challenges seemed hard. However, it is true to say that the advent of industry 4.0 and the rapid pace of technological change we see around us today, present unique challenges to those in the manufacturing space in the 21st century.
In this article, we run through some of the most difficult challenges for manufacturers operating today.
1. How can we improve efficiency in manufacturing plants?
With machines and computers making it possible to produce things faster and with less human error than ever before, efficiency is becoming a more and more competitive goalpost. Some manufacturers sacrifice quality in a bid to produce more products at lower cost, but this ultimately backfires when overall profits are damaged by dissatisfied customers taking their custom elsewhere. So manufacturers are forced to seek other ways to optimize efficiency.
One of the best ways to optimize efficiency is through modernize processes using some of the new technologies available today. Advanced systems can help minimize time-consuming or labor-intensive tasks, as well as simplify the supply chain, reduce waste and optimize equipment usage. There are many such technologies on the market today and if your competitors are adopting new technologies that are ramping up their production rate and efficiency, you better get with the program or risk falling behind.
The problem is that things change so fast and the technologies get better all the time. Even if you updated your computer systems five years ago, you may be looking at a new upgrade this year (which was not the case in the past). It is hard to keep up if you are in the manufacturing space today. Things moved more slowly in the past. Today, you need to be constantly aware of new developments and technologies that can help you achieve your goals and you need to closely watch what your competitors are doing.
2. How can we improve ROI in Manufacturing Plants?
All manufacturers are preoccupied with increasing ROI, especially if they have recently invested in new equipment or upgraded their technology. One of the quickest ways to increase ROI is to raise the price of your products, however, in these erratic and uncertain economic times, this is not an effective long-term solution. Manufacturers must therefore work out how to sell more products, either on a continuous basis or at certain times of the year through special promotions and the like.
Another way to increase ROI is to ramp-up or improve marketing efforts (e.g. by exploring digital marketing methods) but this also involves a financial outlay which some will want to avoid. Trying to reduce overall costs is another way to boost ROI but this can introduce quality issues – no one wants to reduce costs by using lower quality raw materials and deterring customers. Investing in software is probably the most obvious (and most popular) choice for improving ROI in this day and age.
New systems that take advantage of data-collection, AI, smart technologies and more can help you streamline factory processes and make production faster, more accurate and/ or better. To unleash these benefits, however, there needs to be an initial investment in the technology which can be quite steep. Equally, it can take quite a while to realize the return on this kind of investment, which is a big deterrent for some.
3. How can we deal with the shortage of available skilled labor?
A factory job used to be a desirable job for life and it was not so difficult to find skilled and loyal factory workers in the past. Today, it’s a different story and many manufacturers find it hard to source the right kind of skilled labor to run their operations. While the world today is more accessible than it was in days gone by due to the ease and speed of transportation by sea, air, and land, manufacturing your products in another location is not always the cheapest or best solution – even if the labor itself is cheaper than in your native country. Many manufacturers who have turned to China and other countries as a source of cheaper skilled labor are beset by other problems. Taxes and tariffs involved in manufacturing in China, for example, can negate the benefits of the cheaper labor to be found there. You can read more about these issues in our blog post “What is the real difference between manufacturing in China vs. the USA?” Issues also arise from the cost and difficulties involved in shipping products from overseas and dealing with the bureaucracy of other countries. Quality issues can be a problem with using cheaper labor from other countries too, as not all of them uphold quality standards we are used to in the West.
4. How to handle robotics and automation changing factory jobs?
Automation and robotics is a fact of life in the manufacturing sector today. AI, IoT sensors are robots are already in widespread use on factory floors and the trend is set to continue. As automation and robots become more ubiquitous, the landscape of factory jobs will change drastically. Many people fear that as robots take on much of the work that used to be performed by humans, the number of factory jobs will go down and unemployment will rise. Actually, the opposite seems to be true as we discussed in our previous blog “will humans become obsolete in industry 4.0.” the reality is that more jobs will be created but these will be of a different and more highly-skilled nature. In all likelihood a huge skill-gap will arise where the right people to fill the glut of new-style manufacturing jobs will be hard to find. Automation, artificial intelligence, robotics and machine learning will create many new opportunities for people on the factory floor, the problem is that it’s hard to prepare a workforce for jobs that have not yet been created. One of the biggest challenges of this current phase of manufacturing is to try and anticipate what skills will be needed in the next industrial phase, and work out how to prepare for the workforce of the future.
5. How can we implement data-driven manufacturing processes in our factory?
It seems as if everyone these days is talking about the internet of things and digitalization. If you haven’t yet taken steps to upgrade your factory to Industry 4.0 specifications, you may understandably be worried that you are missing out and falling behind. New technologies are already bringing enormous value to the manufacturing industry by monitoring productivity, collecting data, streamlining and automating processes and more. Greater levels of productivity, accuracy, and efficiency will be attainable through the use of machines, robots and automated processes than were ever possible by human hands alone, the issue for most manufacturers is deciding how best to cash in on these technologies. When is the right time to invest and how much money should you invest? What are your priorities in terms of digitization? Must you digitize everything or only certain hard-hitting processes? These are questions that are not simple to answer.
In conclusion…
On the one hand, manufacturers today are faced with age-old problems they have always been faced with – how to improve efficiency, ramp up productivity, find the right workers, etc. – on the other hand, technology and industry 4.0 has presented new and different challenges which can be daunting especially for those who are used to operating in days when the world changed at a slower pace. Knowing how to steer your factory into the future depends on staying informed, following market trends and getting sound advice from those in the know. The possibilities for advancement are huge, but the learning curve is also steep. Taking a step-by-step approach to learning about technology and exploring various possibilities is probably the best advice we can give.