Make UK’s Q1 2023 Manufacturing Outlook report highlights that despite months of slowing activity, manufacturers have improved on their performance compared to the previous quarter. While there have been concerns that this year could be far more challenging than the last with factors including inflation, supply-chain disruption, soaring energy bills and labour shortages creating barriers to business growth, it seems as though manufacturers can now be cautiously optimistic.
But in a sector prone to turbulence that can result from a variety of factors, manufacturing organisations should seek to optimise key operational elements. Using technology to manage production, supply chain, shop floor control and quality, can help them remain competitive through reducing production costs, keep quality of output high and make intelligent business decisions based on real-time data.
Effective production management is a real efficiency driver
Effective production management is crucial to achieving operational efficiencies in manufacturing. Getting seamless processes in place for sales and work orders, scheduling, and order fulfilment are goals for manufacturing organisations and ones which can only be achieved with a single, real-time integrated solution. If any elements of this process are split across disparate systems, opportunities for efficiencies are lost and decisions may be made based on inaccurate data, as a result of being updated in different solutions at different times. Planning and scheduling can also be negatively affected by inconsistent order orchestration, and poor visibility or ineffective use of inventory. When this myriad of processes are managed disparately, not only can the negative effects of inevitable inaccuracies wreak havoc, but the opportunities to scale in accordance with demand are greatly hindered.
At a time when competition is rife, customer satisfaction is paramount and economic factors are turbulent, trying to manage a successful manufacturing operation in this way is an uphill battle not always won. This is why many organisations are turning to technology to help, and recognising and understanding the importance of it, rather than seeing it as a luxury. Many of the Enterprise Resource Planning (ERP) solutions available, like Oracle NetSuite, provide sector-specific features and apps, pre-configured roles and dashboards, all within a unified, real-time, cloud-based solution.
One of the areas this kind of solution can support, within production management, is scheduling – which is also one of the most complex functions for manufacturers and one which relies on accurate data around important elements like inventory. The latest ERP features enable drag and drop scheduling which facilitate adaption to last minute changes – which could be due to demand fluctuation or an inventory issue – while real-time scheduling enables automatic scheduling of work orders, within defined parameters and when they reach a pre-chosen status. Batch scheduling can be set to match machine capacity, and again, within set parameters to ensure compliance. When vital and complex manufacturing aspects like this can be automated, the efficiencies are infinite.
Real-time updates fulfil one of the most important scheduling aspects, which is the obtaining of production information that underpins informed decision-making and activities such as forecasting. Using specific demand planning functionality can assist forecasting further: utilising historical demand data, sales forecasts and open opportunities data to help predict future demand. Demand planning also helps with materials requirements planning, reviewing inventory along with demand before generating orders to ensure the right materials are available to facilitate planned production, without incurring overstocking. Features like this can be invaluable for manufacturers operating in a fluctuating market, or those producing products in seasonal demand.
Quality must be prioritised for customer satisfaction in a competitive landscape
The cost of poor quality management can be high, with quality issues potentially meaning wasted materials, energy and labour costs internally, and business reputation and customer goodwill externally. With customer retention being vital, negating customer acquisition costs, manufacturers keen to optimise opportunities in an upturn can’t afford to side-line quality and the effective management of it.
Getting company-wide buy-in and commitment to quality is key, but doing this via manual processes will be time-consuming. This is where technology can help by automating these processes. Quality management features within ERP solutions have the capability to quickly set and define relevant quality tests, and set parameters on which to evaluate results. They can be applied to certain items, so that different quality tests for different products at varying times can be automated, and captured in a centrally-managed location for an at-a-glance overview that can be drilled into for an in-depth view of any specific aspect or product. Automation of relevant actions follows, such as the item being moved to a hold location for further processing.
When data arising from testing can be pooled, and accessed via any device from anywhere in the plant – from the receiving area to the shop floor – by the relevant operatives, fast decisions can be made on-the-go to minimise impact on production and scheduled orders.
Supply chain collaboration provides visibility for manufacturers
Regardless of the size of the operation, having visibility over the supply chain is crucial for demand planning. Many manufacturing firms are now realising the benefits of collaboration platforms and portals that facilitate automatic communication between manufacturer and supplier on crucial information around product availability, location, order and delivery status – all on the cloud for easy access. Many solutions providers offer out-of-the-box pre-configured portals, with the capability to add specific role access so the user sees only the information relevant to them.
Through the use of supply chain management solutions, an optimal supply plan can be generated and maintained, while early indications of potential supply issues can be gained, and inventory managed accordingly. While when it comes to purchase order management, the creation of recurring or blanket purchase orders can be automated, within defined re-order point parameters. Elements such as contract-based pricing can be applied within these parameters. Automation of these time-consuming repetitive tasks helps manufacturers reap significant efficiencies and keep production moving.
There’s no doubt technology is providing a lifeline for manufacturers and an enabler to capitalising on the unexpected upturn, and organisations in this evolving arena should embrace and leverage digital technologies to enable them to survive, thrive and grow in a fast-paced and volatile landscape. Having the visibility that ERP solutions provide will enable manufacturers to turn potential risk into real opportunities.
