.jpg)
By Rodney Repullo *
In manufacturing, people connect to processes and machines to produce the best product possible. For this to work and ensure an uninterrupted supply chain and smooth, efficient production, managers need reliable data at all levels and across all departments in the company. But, this is not an easy task.
Managers work hard, but it never seems to be enough to get everything done, even when operations are running smoothly. And, of course, rarely does everything go well at all times.
Chronic problems that are resolved only temporarily, may not disturb operations repeatedly. However, those unexpected problems often cause prolonged slowdowns or stops while the source of the problem is located and corrected.
Over the course of many years working with hundreds of manufacturers around the world, we have identified five major challenges that continue to arise.
In our experience, the top five operational challenges faced by midsize manufacturers, which can challenge even the most experienced managers, are:
1. Firefighting
If it is not dealt with promptly, even a small problem can turn into a major disaster. Management needs to deal quickly and effectively with unexpected and disruptive events that threaten operations, such as a lack of supply or unwanted surpluses, delays, machine or management system or shop floor malfunctions, including a lack of spare parts , insufficient data or inadequate communication.
Even something ostensibly smaller, like a flat tire on a forklift, for example, can lead to major disruptions. If the tire cannot be repaired, the forklift goes out of service, the supply of raw materials to the machines is interrupted, production slows down and the inventory and material in process accumulate.
Managers, in this and other cases, need to deal with all of these problems on the spot, but they may not have the information needed to do it efficiently, wasting time and money. And when they're wasting a lot of time putting out fires, they just don't have time to focus on the long-term strategy. Repetitive interruptions can be symptoms of deeper problems: lack of data visibility, drop in system connectivity, lack of control and real-time data for proper reaction.
2. Lack of visibility
A recent article on Inc.com points out, "Tracking and capturing the right information in a timely manner and then communicating that information effectively to the entire organization is crucial." When data is stored in an offline and inaccessible repository, it is invisible and does no good to anyone. Static, non-integrated systems - which cannot communicate - keep critical data out of the sight of those who need it most, reducing their ability to monitor processes, avoid problems or notify others of harmful events as they occur.
Invisible data silos, like cold war missile silos, should be a thing of the past. To keep operations running smoothly, managers need visible, accurate, real-time data from multiple sources.
3. Lack of Connectivity
A common complaint in the manufacturing industry is the lack of communication on the shop floor or between other departments. In many cases, systems are not designed to communicate with each other and, therefore, there is a lack of communication and visibility, impairing connectivity.
Without real-time connectivity, data from CRM, ERP, SCM and PLM systems are not effectively integrated or analyzed and are not available to managers. This results in more machine downtime, supply chain breaks and missed deadlines, resulting in less products being manufactured and sold and - consequently - less revenue.
Unless systems can communicate freely and provide accurate, up-to-date, integrated, and real-time information, managers end up not having access to the data they need to control processes and keep operations running smoothly.
4. Lack of Control
"You cannot control what you cannot see". When data is blocked in inaccessible silos and systems are not integrated, managers do not know what is happening, they lose control of the systems for which they are responsible, decision making is reactive when they should be proactive, and so the OEE - main indicator of global equipment efficiency - declines.
Managers can only control what they can see. Only a system that provides complete visibility of information from all areas of the plant is able to help decision makers regain control of their plant. It can also help managers implement measures to optimize each step of operations, optimize management and OEE, and reduce costs and downtime.
5. Lack of information for actions
Just as you cannot control what you cannot see, you cannot manage what you cannot measure. To be of any use, the measurement needs to be accurate. To do this, one must take into account all parameters from all reliable sources, as much as possible.
Measurement is a means to an end, not an end in itself. The measurement must be actionable and designed specifically for the purpose of informing decisions or actions and guiding long-term strategies. Decision makers do not have time to compare or interpret data from a variety of sources. Only readily accessible information can be understood and is “actionable” by decision makers.
With actionable information available, decision making ranges from guesswork to data-driven decision making, providing better control over events and establishing a solid foundation for long-term management.
View, Measure, Control, Manage
As Williem Sundblad pointed out in Forbes (1): “To become part of the Fourth Industrial Revolution, you need to deploy an intelligent system that helps manufacturers to solve not only the problems in progress more quickly, but also to address and incorporate new issues that they would not be able to solve it ”.
In Industry 4.0, state-of-the-art management for medium-sized industries means making decisions based on integrated, accurate and easily accessible information. Having access to this information allows managers to predict and prevent operational downtime and slowdowns, as well as institute strategies guided by solid data, instead of mere guesswork.
* Rodney Repullo, CEO of Magic Software Brasil.
Warning: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
EN 
PT 
