Proponents of smart manufacturing often tout the advantages of connected machines, advanced robotics, and other digital technologies for achieving everything from faster production to a more engaged workforce. However, these benefits often go beyond the means of smaller manufacturers operating on tight margins with fewer resources than the big players. Perceptions of high costs and a seemingly overwhelming array of technology options can leave owners and managers with decision paralysis.
But, smart manufacturing technologies are not just for the largest manufacturers. By taking a strategic approach and leveraging your existing resources, you can unlock the benefits of these technologies for your small shop.
Here's how to overcome common misconceptions and implement smart manufacturing without incurring high technology and training costs.
Smart manufacturing challenges
Smaller operations face a number of challenges that hold them back from pursuing the digital transformations embraced by larger manufacturers.
The skills gap. The manufacturing-skills talent shortage affects all manufacturers, but small shops face the added pressure of competition from larger companies that have the resources to offer more benefits or higher salaries.
Tight margins. Small manufacturers typically operate on slimmer margins due to smaller production runs, and other factors. They also tend to have limited capital budgets to spend on new technology.
This problem may be compounded by inaccurate cost estimates created without the benefit of adequate historical production data. The absence of data on time and money consumed by similar projects may lead to unrealistically low estimates for customers. Quoting low may win more jobs, but those jobs often reveal themselves as less profitable once the work is complete.
Improving profitability through better estimates represents a key area of opportunity for smart manufacturing upgrades.
Resistance to change. Some workers and managers may fear that embracing digital transformation puts their jobs at risk. However, a recent Forester study commissioned by Hexagon shows that organizations are focused on easing talent shortage and improving team-member collaboration rather than reducing headcount via technology.
More than a third (34%) of large and small manufacturers surveyed report that automation has eased talent shortages, and more than half (54%) expect it to do so in the near future.
Another cultural challenge stems from many organizations' long-time reliance on manual data collection, and reporting methods such as spreadsheets and paper. Transitioning to digital technologies requires adjustments in the ways that people work.
To overcome these challenges it's best not to try to tackle digital transformation all at once. Instead, think of taking baby steps, starting with the technologies, machines, and people resources you already have.
Maximizing digital efficiency
Digital technologies can help small shops reduce costs, increase margins, and overcome the skills gap without undue cost burdens, and in those ways facilitate smart manufacturing.
Digital solutions integrate with data produced by a shop’s current processes and machines, such as production logs, maintenance records, and quality control reports. By analyzing this data, technology can provide managers with detailed insights into manufacturing processes, helping them pinpoint specific bottlenecks, inefficiencies, and areas for improvement. For instance, a digital monitoring system might reveal that a particular machine frequently causes production delays, prompting a targeted maintenance schedule to enhance efficiency.
The analysis allows shops to optimize their existing equipment and resources before spending the budget on technology that may not be needed to realize meaningful gains. For example, intelligent quoting solutions powered by data can quickly help sales reps win a higher percentage of more profitable jobs.
At the same time, implementing systems that connect different technologies already at work on the shop floor and in the office can promote streamlined workflows across the organization. To that end, digital solutions support real-time collaboration between teams and customers, whether it's reviewing designs or sharing inspection reports.
Affordable mobile devices on the shop floor can provide technical support through embedded knowledge bases, such as troubleshooting guides and step-by-step repair instructions, reducing downtime. For example, if a machine malfunctions, operators can quickly access repair instructions or contact remote experts for real-time assistance. Such systems can also help managers upskill new workers by drawing on the knowledge of more experienced team members, codified and presented at the right time and place. For instance, training modules or instructional videos can be accessed on demand, ensuring that new employees receive immediate, practical guidance on complex tasks.
Getting started
Before introducing new technologies a machine shop’s first step should be to identify the resources already on hand and make a plan for how to use them more effectively. In other words, there's no need to feel pressured to keep up with the flashiest (perhaps out of reach) new tech. Instead, you can start your smart manufacturing journey by identifying processes that can benefit from additional data collection and analysis.
To get the lay of the digital landscape in your business, ask these questions:
- Are you collecting accurate and detailed metrics such as machine uptime and downtime?
- Do you have real-time visibility into the status and location of jobs throughout production workflows, including the sales process and quality inspection?
- What level of digital connectivity do you have between different technologies and departments that can enable collaboration?
- What reporting capabilities do you have in place to collect historical production data and deliver insights for streamlining future work?
Speaking directly with operators and other staff to understand any daily pain points or bottlenecks experienced can bring out the most pressing organizational issues. You can also use a benchmarking tool to analyze your existing technology stack and operations against industry standards, to pinpoint opportunities for improvement.
Leveraging technology for operational efficiency
Once you have a good grip on the state of your existing operations, it shouldn't take long to identify where smart technology might enhance it. You likely won't need a complete overhaul of your shop to start to see significant improvements.
For example, you can realize cost savings relatively quickly by optimizing existing equipment utilization through data-driven insights. These insights can help you delay or even avoid new capital purchases.
By enabling real-time collaboration across teams through connected devices, any issues identified in the quality inspection process can be quickly communicated to operators on the floor. Notifying production teams of problems sooner lets them pivot quickly rather than, for example, continuing to produce the next 99 of a 100-part run that would otherwise go to waste.
Smart manufacturing software can also eliminate "paper travelers," job cards printed on paper that physically move between departments as parts progress through the production workflow. Replacing paper lets teams share production information in real time, improving communication wherever and whenever issues arise.
Customers can also benefit from paperless job information that allows them to adjust designs as needed with feedback from the manufacturing process.
Planning your digital transformation
Armed with an accurate assessment of the current state of your shop and processes, and an understanding of what you can accomplish with smart technologies, you can get a good start on digital transformation that works with your budget and grows along with you.
Facilitating the process, many manufacturers choose to work with outside experts to determine what technologies they can bring in for the biggest return on digital investment. You may not have the resources of a major manufacturer to hire a big-ticket consulting firm, but there are multiple resources to help smaller shops take advantage of smart manufacturing and realize the benefits sooner than you may think.
Jason Walker, is vice president - General Manufacturing at Hexagon Manufacturing Intelligence.
