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We have seen a significant increase in awareness of the benefits of smart manufacturing techniques, especially cloud computing, in line with the rise of Industry 4.0.
Recent studies show that cloud spending per company in the manufacturing industry in the United Kingdom has increased by 21.4% from 2022-4. Despite this, identifying the right technology which is compatible with their current system is still one of the biggest challenges manufacturers face.
To help, we have put together a guide to best practices and overcoming common challenges when adopting smart manufacturing technology. Keep reading to find out more!
The manufacturing industry constantly evolves, and technology has improved to keep up with new requirements and help businesses remain competitive. Some of the most recent advancements include ERP systems and cloud computing, while earlier technological processes include Computer Numerical Control and Programmable Logic Controllers.
First created in 1952, Computer Numerical Control (CNC) machines became more popular in the 1970s to aid the precise control of machining tools through computer programming in manufacturing businesses.
Early applications of CNC for manufacturing businesses included precision manufacturing of detailed parts, batch production and prototyping of new designs. CNC machines are still extremely popular today in factories across the UK and are used for many applications, including glass processing, carpentry, and creative construction.
Next, Programmable Logic Controllers (PLCs) were adopted as they provided a flexible and reliable method of automation control compared to traditional relay-based systems in manufacturing settings.
PLCs give manufacturing businesses enhanced control over their processes, improved production efficiency, and reduced downtime. This can help organisations stay competitive while creating time savings that are beneficial further down the supply chain.
Enterprise Resource Systems (ERP systems) became popular in the 1990s and were adopted to replace data silos within legacy systems.
Early manufacturing applications for ERP systems included automation for technology, services, and human resources operations. Many manufacturing businesses choose to adopt an ERP solution in the 21st century to streamline operations, save on technology costs and create a centralised database to aid communication across the supply chain.
The 2000s saw significant advancements in robotics and automation technology. This technology was used in many manufacturing tasks, such as assembly, welding, painting, and material handling, to save time across teams.
Advanced robotics and AI-driven automation can streamline complex assembly processes, enhancing precision and productivity. By automating key tasks, manufacturers can also remove the risk of human error, which can create a more satisfactory product outcome for customers.
Cloud technology is widely adopted in the manufacturing sector by 2024, helping to create efficient systems that improve cooperation and communication within the supply chain.
In particular, the concept of multi cloud adoption is becoming popular as businesses look to enhance the flexibility of their technology and create bespoke solutions to suit their individual requirements.
At Essenkay, we can support you with smart manufacturing challenges and guide you in choosing the right system for your business as we see a move towards Industry 4.0.
Smart manufacturing refers to technology, processes, or techniques designed to meet demand flexibly, enhance productivity, and adapt to changing requirements. The types of technology used within smart manufacturing can vary, but they often include:
Smart manufacturing techniques are often adopted where legacy systems and inefficient processes are causing delays, or a growing business requires intelligent solutions to keep costs down and stay competitive.
Smart manufacturing benefits include enhanced cybersecurity, as cloud systems and ERP solutions provide encryption and role-based access controls. Overall, smart manufacturing can boost operational efficiency, productivity and product quality by harnessing real-time data insights and utilising automation.
With eight in 10 manufacturers believing that smart technology will enable companies to open to new markets and find new customers, we will likely see an increase in many different types of smart manufacturing techniques, including cloud commuting.
There are many smart manufacturing benefits within the Microsoft Dynamics 365 suite for manufacturing organisations, including enhanced product planning, improved financial reporting and automated inventory management.
Dynamics 365 Project Operations
Microsoft designed D365 Project Operations to support businesses in managing end-to-end project requirements, including manufacturing businesses. Examples of smart manufacturing with this technology include:
Dynamics 365 Supply Chain Management (SCM)
Microsoft D365 SCM has many smart manufacturing tools to enhance manufacturing operations and create long-term benefits later down the supply chain. Examples of smart manufacturing with Dynamics 365 Supply Chain Management include:
Dynamics 365 Finance
Microsft D365 Finance offers a variety of financial management tools to support manufacturing businesses and uses AI-powered suggestions to provide smart manufacturing solutions. Examples include:
Overall, the Microsoft Dynamics 365 suite can support manufacturing teams by increasing output and improving visibility across finances. With a centralised database, businesses can quickly access key project operations metrics to feed back to key customers and stakeholders.
Smart manufacturing techniques can also include Industrial Internet of Things (IIoT) sensors, which can help to provide real-time monitoring and predictive maintenance in the factory, reducing downtime and operational costs. The enhanced visibility and insights into the production processes that IoT sensors can provide enable better decision-making. Issues like machine breakdowns can be proactively addressed rather than reacted to as AI helps to learn about the machines.
Additionally, digital twins, supported by cloud computing, help to optimise manufacturing processes, improving efficiency and reducing resource consumption. Digital twins can capture and map manufacturing processes into an ERP database, allowing all authorised team members to access the information easily.
There has also been increased development of Augmented Reality (AR) and Virtual Reality (VR) tools within smart manufacturing. Virtual or augmented training videos can streamline HR processes and be accessed by the team should they require on-the-job additional support without placing additional pressure on management teams.
In general, using AI tools, production and manufacturing organisations can optimise product design with automated intelligent suggestions about ways products can be reused, refurbished or recycled in the future.
As with any form of digital transformation, smart manufacturing techniques and processes can cause organisations some worry, especially due to skills gaps and an ageing workforce.
Working with a digital transformation expert can help to alleviate these concerns - let’s explore some solutions below:
Upfront investment
If you decide to opt for a cloud system and currently have an outdated system, there are costs involved with overhauling the technology to ensure you are set up for success. At Essenkay, we also offer project recovery solutions to help those who have experienced implementation issues in the past.
Recent studies indicate the desire for government support for digital transformation investments, with 92% of manufacturers believing this would support growth within the sector. This suggests a worry about spending profits on technology, perhaps due to a concern about return on investment.
Despite an initial investment., businesses will likely see longer-term financial benefits as their team is more efficient, productive and collaborative. Cloud computing can bring significant return on investment, and we can work with you to continually review your technology budget and scale back if required.
Employee training
A skills gap in the manufacturing industry means organisations may be wary of adopting smart manufacturing. In addition, the manufacturing sector has an ageing workforce who may be wary of new technology or resistant to change.
Utilising a flexible training provider like Essenkay will help ease technology struggles whenever they arise. We offer training sessions on all aspects of Microsoft Dynamics 365 technology to ensure you get the most out of your ERP system.
Taking the risk on new technologies
We are seeing a discrepancy between manufacturing technology awareness and adoption. While AI ranks as the fourth highest priority for UK manufacturing leaders in 2024, only 9% of manufacturing organisations currently leverage the technology.
Despite these concerns, business owners can feel reassured when utilising cloud technology’s pay-as-you-go system. When choosing smart manufacturing features, such as process optimisation tools or finance management, you can test these out and can add new ones as the business grows.
Our team has expertise in guiding businesses of different sizes and sectors to find the most appropriate cloud-based solutions.
We provide bespoke Microsoft Dynamics 365 implementation services and work with your team to minimise any software difficulties.
If you want to explore how cloud systems could benefit your manufacturing business, get in touch today!
