Three Ways to Effectively Use Big Data in Your Manufacturing

Big data has emerged as one of the best drivers in the manufacturing niche, and most companies use it to get a competitive advantage on the market. As competition intensifies, managers are under constant pressure to achieve three things; optimize processes, cut costs, and grow profits. This post demonstrates how you can effectively use big data to drive success in your manufacturing unit.

Getting Asset Performance and Efficiency Gains

Because profit generation in manufacturing relies on optimizing the value of assets, asset performance gains can result in huge improvements. On the same trend, reducing asset breakdown can help to pull down inefficiencies and losses. This is why you should put a lot of focus on maintenance and maximizing asset performance.

The machine logs of your facility contain crucial data on asset performance. Internet of Things (IoT) provides new dimensions with sensors that are connected to the machines transmitting performance in real-time. This data makes it possible for manufacturers to analyze their assets and get useful insights that can improve performance.

Big data analytics can help to drive predictive analytics that you can use to schedule predictive maintenance. This will prevent expensive breakdowns and avoid unexpected downtime. With big data analytics, you can cut down breakdown by up to 26%.

Making product Customization Feasible

Traditionally, most manufacturers were largely interested in optimizing production and left customization to those dealing with niche markets. For traditional manufacturers, customizations never made sense because they thought it appealed to only a small group of customers, but that was wrong.

Big data is making it possible to determine the actual demand for customized products accurately. For example, big data analytics can help to identify changes in customer behavior and give manufacturers additional lead time. In addition, it highlights opportunities to make customized products more efficiently.

Using big data, manufacturers can easily identify points within their production systems where they can plug custom processes with in-house capabilities. In some cases, they can also postpone production to enable partners to implement customizations without causing significant disruption.

Improving Production Processes and Supply Chains

In a world that is increasingly interconnected, manufacturing and supply chains have become long and complex. Any effort to streamline production processes and optimize supply chains have to be supported by the ability to comprehensively examine every step and component in detail. Big data provides manufacturers this capability.

Using the right analytics, manufacturers are able to zero in on every segment of their production process and supply chain, accounting for individual activities and tasks. This means that they can easily identify bottlenecks and identify underperforming components. In addition, big data analytics can also help to reveal dependencies so that you can enhance production and design alternative plans to address potential challenges ahead.

With the right data integration and management, you can improve operations, strengthen relationships, and increase profits. Using big data has never been more crucial, and the time to put an elaborate analytics system is now.

Common Cybersecurity Threats and How to Avoid

Cybercrime is constantly evolving. As a manufacturer, it is crucial to understand these dangers and adopt the best strategies to address them. In this post, we have rounded some of the common threats that you need to know about so that you can adequately prepared to prevent and counter them when they inevitably attack your system.

Phishing

No matter the size or nature of your manufacturing organization, phishing is a constant threat. Despite being one of the oldest threats, cybercriminals prefer it because it is relatively easy to execute and causing the harm they want.

To carry phishing attacks, criminals use tools that your manufacturing workers regularly use, most probably multiple times during the day – email. Then, they send malicious emails, making them look as trustworthy as possible. The aim is to make the recipient believe that the email is reliable and clicking the link provided or download the attachment.

While some people think that they can easily identify phishing emails, criminals are becoming very sophisticated and will easily imitate what you regularly get from authoritative sources. Therefore, it is paramount to ensure you regularly train your employees on how to spot phishing emails.

Ransomware

Ransomware is one of the most dangerous threats, and it is becoming very common today. In 2017, ransomware variants, including WannaCry, NotPetya, and Locky, attacked major institutions across Europe, causing heavy losses to the affected institutions. But how do these attacks work?

Ransomware attacks usually start as phishing emails and only execute when an unsuspecting employee clicks the email. Then, the ransomware creeps in, encrypting an organization’s data and extending it to the entire network. Finally, the criminals demand that you pay a ransom to get the decryption code. If you do not, they steal the data and destroy it.

To protect your organization from ransomware, it is important to install an elaborate cybersecurity system in your manufacturing system. More importantly, you should have cold storage for your manufacturing organization data.

Supply Chain Attacks

Many are the times when manufacturers work with specific vendors, suppliers, or distributors who help with marketing. It is considered a good method of promoting specialization so that the manufacturer can focus on product development and the partners in the supply chain on marketing. However, these supply chains have become common points of weakness and target by cybercriminals.

In supply chain attacks, hackers target gaining access to your partners in the supply chain to get access to your data and systems. Then, they steal your data and cause harm to your organization. To manage this risk, it is paramount to be extra careful about who you share organization data with.

Manufacturing organizations face numerous threats today, and understanding them provides you with the best opportunity to craft a strong protection system. Remember to review the effectiveness of the cybersecurity system regularly and train staff on emerging threats.

How to Create an Effective Manufacturing Backup and Disaster Recovery Plan

Today, the manufacturing industries remain the main backbone of most economies, from Russia to China and the United States. However, manufacturers are highly vulnerable to threats such as ransomware and supply chain attacks that can easily cripple their operations. It is estimated that about 40% of companies that do not have good backups or plans for disaster recovery do not survive in the event of a disaster.

To be successful in manufacturing, it is paramount to ensure you have a good backup, but how do you develop one? Here are the main steps that you need to create an effective backup and disaster recovery strategy.

Develop a Backup and Disaster Recovery Team

The first step to developing a good backup and disaster recovery strategy is selecting the recovery team. Make sure that your team includes skilled people who can help you to accomplish the following roles:

• Team leaders: These persons are responsible for providing direction and leadership to your team.
• Operation coordinators: These are team members who are responsible for designing and implementing the decisions in different departments.
• Team administrator: Administrators work with coordinators to implement data recovery plans in the event of a disaster.
• Partners:These are persons who help to increase the knowledge base of the team. You might consider bringing on board an expert consultant in security matters.

Do a Comprehensive Risk Assessment

When developing a backup and disaster recovery strategy, it is paramount to understand the actual threats. From cyberattacks to fire attack, you need to categorize them and establish what poses the greatest risk to your manufacturing unit. For example, a manufacturer dealing with petroleum products might consider fire as the priority risk, while another one dealing with food items might consider contamination.

Identify Mission-Critical Assets, Resources, and Functions

Once you do a comprehensive risk assessment, the information is used to map the assets, resources, and functions that are crucial for the running of your manufacturing unit. Often, the sheer breadth of the assets managed by a manufacturing organization, from machines to warehouses and transport vehicles, can be overwhelming. So, the team will decide what to prioritize and might consider a list such as this:

• Production line (first priority).
• Customer service channels (second priority).
• Supply chain network (third priority)

Create a Backup and Disaster Recovery Strategy

Now that you have all the information, it is time to craft your strategy. Make sure to decide where you want to store the information, methods of data protection, and recovery. It is also important to set aside an ample budget for recovery in the event of a disaster.

To ensure that your strategy is good, you need to carry simulated drills to assess how the team would react in the event of a disaster. Furthermore, include regular training, adoption of new strategies, and progressive review to ensure that your team is always up-to-date.

The survival of your company largely depends on your company data and the strategies for success. With a good backup and disaster recovery strategy, you are sure of business continuity and success, even in the event of a disaster.

The Main Causes of Business Failure that You Should Know About

About 20% of businesses fail in their first year, while 50% more fail by their fifth year. So, if you are new or planning to start a manufacturing business, it is paramount to take note and ensure not to become part of the statistics. So, here are the main causes of business failure that you should know as a manufacturer.

Lack of a Good Business Plan

When entrepreneurs find a business opportunity, some of them jump into it without drawing a comprehensive plan for success, but this is a recipe for failure. Although you might have found an opening for products such as precious metals or construction materials, manufacturing them involves a lot of things, including the following:

• Getting the required licenses.
• Employing the required staff.
• Identifying and working with different supply chains.

A good plan allows you to look at all the factors of manufacturing and creating a strategy for smooth operations. In addition, it allows you to check what methods other successful manufacturers used so that you can craft better ones.

Poor Product Development

When designing products, it is paramount that they are aimed at a specific audience. However, some manufacturers fail to develop products that do not match what the targeted audience wants. Yes, you might have the idea of the final product, but do you understand the specifics? For example, a manufacturer making diapers might want to know about the colors, size, skin protection, and other parameters of interest.

To ensure you develop the right product, it is paramount to work closely with the targeted audience. You can know this by running surveys, interacting with clients via social media, or collecting feedback from points of sale. You also need to review what competitors are doing and use an innovative research and development unit.

Poor Marketing Strategies

Manufacturing a good product is only the first part; marketing is equally important. If you fail to market your product comprehensively, your targeted audience will not know about it, and you might get stuck with the product in your warehouse. The best marketing strategies are those that articulately carry your message and persuade the targeted audience to buy.

The causes of failure that we have looked at are only a few; the list can extend to things such as lack of enough capital, poor compliance, and disasters. The truth about manufacturing is that it requires you to have the whole picture for success. So, do not just think about production in the short-term; draw a good plan for the next ten years.

Cyber Hygiene in Manufacturing: What are the Best Practices

If you run a manufacturing unit, one of the most important things is cyber hygiene. As a person engages in specific hygiene practices for good health, cyber hygiene practices are crucial for keeping the data safe and protected. With good cyber hygiene, you are sure of maintaining properly functioning assets and systems by protecting them from attacks, such as malware.

Cyber hygiene denotes the practices and cautions that businesses use to keep their data organized, safe, and secure. In this post, we will outline the best practices for cyber hygiene in manufacturing.

Understanding Common Cyber Hygiene Related Issues

For a manufacturing unit to run optimally, maintenance is paramount for both computers and software. Often, files can become fragmented and programs outdated, increasing your system’s vulnerability. Other cyber hygiene-related issues include:

• Loss of data
• Data misplacement
• Security breaches
• Outdated software
• Older security software

With good cyber hygiene, it becomes easy to identify these issues early enough and avoid more serious problems from happening. So, here are some of the best practices in cyber hygiene:

Document All Your Manufacturing Equipment and Programs

To keep your data safe and optimize its safety, the first step is documenting all the hardware, software, and applications that your system uses. One of the best ways of doing this is developing a list of three core components:

• Hardware: These are the machines and devices in your manufacturing units. Examples include boilers, cutting machines, computers, printers, and fax machines.
• Software: These are programs that are installed directly into your manufacturing facility to run the production system.
• Applications: These are applications that are not directly installed on your devices. A good example is a mobile marketing app.

Analyze the Equipment and Programs

After creating the full list of equipment and programs, you should start analyzing them to identify vulnerabilities. Unused equipment in your facility should be disposed of properly. Then, software and programs that are outdated should be updated, and their passwords changed.

Some programs should be selected dedicated to some functions for all users. For example, if you use both Dropbox and Google Drive, consider one as the primary option while the other is selected for backup.

Develop a Cyber Hygiene Policy

For your cyber hygiene to be effective, it is paramount to have a common set of practices and rules. If you have multiple users, such as team leaders, departmental heads, and managers, make sure that these procedures are combined into a policy. Here are some of the common items to include in such a policy:

• Software updates.
• Password changes.
• Hardware updates.
• Managing new installs.
• Data backup.
• Limiting users.

Creating a comprehensive cyber hygiene system is a must for today’s manufacturing enterprises. When implemented in conjunction with enterprise-wide security practices, good cybersecurity hygiene can aid in reducing disruptions, reducing downtime, and optimizing profitability.

 

Importance of Machine Learning in Manufacturing

Manufacturing can be a complex and expensive undertaking, especially for businesses that do not have the right tools and resources. Artificial intelligence (AI) and machine learning (ML) are some of the technologies helping manufacturers to simplify production and cut costs. According to Mackinsey, 40% of all the potential value that can be created using analytics today come from ML and AI. Here are some of the main applications of machine learning in manufacturing.

Product Development

Data has opened huge opportunities for manufacturers, especially in product development.  Data helps manufacturers to understand their customers better and meet their specific needs. Therefore, they are able to create better products for the targeted audience.

When working with valuable data, manufacturers are able to optimize customer value and cut risks that are associated with introducing new products into the market. Simply put, you are able to adopt smart manufacturing and bring customers closer so that only what they want is designed and sent to the market. It is considered one of the best ways to grow your market share progressively.

Use of Robots in Manufacturing

The use of robots can change a lot of things in manufacturing. Particularly, robots are preferred for performing tasks considered too risky for humans. Robots are also preferred for reducing human errors in manufacturing. Using data gathered over time, machines are trained to follow specific trends to improve quality. For example, you can use robots and set them to turn off boilers when specific conditions, such as temperatures and pressure, are achieved.

Security

Today, all machine learning and artificial intelligence use apps, cloud and onsite platforms, and operating systems. Therefore, the security of these components is very important in modern manufacturing. The good thing is that machine learning allows the application of zero-trust security, where users’ access to information is regulated.

Machine learning is used to analyze how individual users access protected manufacturing information, the apps they use, and the way they connect to them. This way, you can create a strong perimeter around your digital assets and quickly detect when anomalies, such as unauthorized access, is made.

For years, manufacturers have been early adopters of different sorts of technologies, and now it is time for machine learning and artificial intelligence. It is particularly appealing because of the wide applications, from product development to security and marketing. So, whether your manufacturing unit is new or has been in operation for some time, there is a way to apply ML and AI for better results.

4 Most Important Things to Think about when Opening a Manufacturing Business

Are you planning to start a manufacturing plant? Success will largely depend on the strategy you use. Over 50% of businesses fail by the fifth year because of different reasons, such as poor marketing and product development.  As a new manufacturer, here are the four most important things that you need to think about for success.

Business Location

Where you locate your manufacturing business has a great impact on the success you can achieve. For example, you will realize that most of the manufacturing companies in China are subsidiaries of international businesses. In addition to placing your company close to the targeted customers, here are other things to consider when selecting a business location:

• Look for a location where the local administration supports businesses for success.
• If the jurisdiction under consideration has business parks for manufacturing, take advantage of them because they have well-developed amenities.
• Locate your enterprise in an area where you will enjoy tax incentives.

Product Development

The product you will send to the market will determine whether targeted customers get satisfied or not. Therefore, no effort should be spared in ensuring that your products are of high quality and will appeal to customers. So, consider installing an aggressive research unit to look into all aspects of the product. Take an example of an auto manufacturer. What model should you work on? What about the engine capacity, displacement, comfort, and speed?

Competitors

When entering into a new market, the chances are that others are already there, and the competition is likely to be tough. Therefore, you need to craft a good strategy to outdo them. This involves studying the competitors to establish their strategies and products.

Consider working with a professional team to improve your team’s innovation and focus on improvements. Remember that in addition to focusing on outdoing competitors, your research and development unit should aim at continuous improvements to stay at the top.

Business Expansion

When opening a manufacturing business, most people are largely interested in getting the enterprise on its feet and optimizing profits. This is a good thing, but you need to introduce another thing – the need for expansion. This means long-term planning.

Thoughts of business expansion mean that you will start looking for funds or setting aside some profits for expansion immediately. Therefore, if your business is located in the European Union, but you would like to expand to the Caribbean in the next five years, capital will not be a challenge.

To be successful in manufacturing, ensure to factor all the important components, from product development to need for expansion, and plan for them well. Consider bringing on board an expert to help you craft better strategies for success.

 

Four Aspects of a Business that You should Outsource

Do you have a manufacturing business, and running all the aspects of the organization appears challenging? It is not unusual to find plant managers lagging behind because they need to deal with product development, employees, and marketing, among other tasks. One method of reducing these tasks is outsourcing. Here are the main aspects of your business that you should outsource.

What is Outsourcing?

Outsourcing is hiring individuals or firms who do not work for your organization to do specific tasks for your business. Outsourcing comes with the benefit of saving your staff time so that they can focus on other activities. Other benefits of outsourcing include:

• It allows you to use the expertise of professionals in your organization.
• Helps you to save cost, especially for occasional tasks, such as auditing and staff training.
• You will find it a great way to network your organization with others and experts.

When you bring onboard experts, it provides your employees with an opportunity to learn new skills, which can help them to increase productivity, profitability, and success. Here are the main aspects of your manufacturing that you should consider outsourcing.

Cybersecurity

Cybersecurity is one area where a lot of expertise and attention to detail is crucial. At a time when threats directed at businesses have become way too common, neglecting the cybersecurity of your manufacturing unit can easily result in data breaches and breaches.

Since most security firms are focused only on developing advanced security systems, it implies that you will get the best protection.  See – you can concentrate on developing the best products and let experts in cybersecurity protect your system.

Accounting

Accounting is another common and very important function of a business organization. If you get it wrong on accounting, there is a danger of incurring losses, upsetting clients, and even landing into legal troubles. Therefore, putting the task of accounting in the safe hands of experts in bookkeeping can help save you a lot of headaches and provide expert financial advice on business expansion.

Training

Staff training is very important in developing the skills of your workers. It is also considered an important component of building a strong brand and staff retention. Whether you prefer sending staff to a management training program or onsite training, outsourcing the services of an expert will be a great idea.

For your manufacturing business to be successful, you need to outsource some of the activities as opposed to thinking that you can do all of them. The idea is to identify the activities such as accounting and cybersecurity and bringing experts to help you complete the process professionally. With experts on your side, you cannot go wrong.

 

Five Ways to Increase Your Organization’s Product Quality

Have you been working hard, but the results from your industrial manufacturing business are poor? There are a number of things that can cause this, and one of them is poor product quality. In this post, we will tell you the best strategies for improving the product quality of your organization.

Build a Good Production

In order for your products to stand out in the highly competitive market, you need a good product development strategy. This means being able to effectively conceptualize the product from scratch and building on a product that meets customer needs. You can get insights by working with an expert team and talking to the targeted clients.

In addition to good conceptualization, your product development strategy should be extended to improving on what competitors have. For example, if you are building a new product, consider studying what competitors have and work on improving it. Simply put – you want a product that is better than what competitors have to win a bigger market.

Adopt and Implement a Quality Management System

Good product conceptualization alone is not enough to improve the quality by default. In addition, you need a good quality management system (QMS), such as ISO 9001. The management system allows you to audit your processes alongside a globally accredited body. Because QMS’s are based on strict principles of quality, clients will approve your products without subjecting them to further audit them

The lovely thing about using QMS is that it also improves the credibility of your brand. Companies that use QMS find it pretty easy to sell their products both locally and penetrating international markets.

Make Quality Part of Your Organization Culture

Once you have adopted QMS into your organization, it is important to take it to the next step, which involves embedding the quality principles into the whole organization. This means that everyone, from the departments to individual teams, will be focused on increasing quality.

Since quality enhancement involves a lot of changes, your staff will support transformations that might be needed along the way. The new culture will make staff identify with improvements so that they will no longer be stabling blocks to changes, but enablers.

Success in manufacturing is only possible if you are able to deliver high-quality products to the targeted market. Therefore, make sure to understand the needs of targeted clients, work with an innovative team, and use an appropriate quality management system. Remember to progressively improve the quality of your products progressively to sustain high sales and profits.

Automation in Industrial Manufacturing: Strategic Approaches for Success

Automation has become an important component in modern manufacturing to help increase efficiency, cut the cost of production, and optimize profits. However, you should avoid falling into the trap of randomly selecting the technology to apply in a manufacturing unit. Instead, your system automation should be guided by comprehensive technical and commercial analysis to ensure you hit the perfect balance between cost, speed, quality, and value.

As new technologies for automation hit the market, you need to be more strategic in determining when to deploy the automation. So, here are some strategic approaches that you should consider when implementing automation in your manufacturing organization.

What You Need to Do Before Automation?

Before you can deploy automation in a manufacturing unit, you need to prepare an audit of the current processes to get a deeper understanding of the system. Then, identify ways that that can be used to improve the production. This implies that you can choose a method of optimization that meets both commercial and technical targets for your business.

The second thing you need to is developing a good objective for automation. The focus is on ensuring that automation aligns well with the overall mission of your organization. Simply answer the question, “Will the automation helping to add value?”

The last step is carrying comprehensive research on the available options for automation. Your goal should be identifying automation systems with proven data collection capabilities for additional analytics as well as predictive maintenance. One of the best options is cloud-based manufacturing execution systems.

Design Consideration when Implementing Industrial Automation

When implementing an automation system, it is paramount for engineers to do a design review, including risk assessment and addressing commercial issues that might arise. For this consideration, you need to factor the following:

• The Actual Volume of Product Parts and Steps for Assembly: If the identified automation is okay, the required parts, fasteners, and steps should be minimized. Make sure to also factor the inner spacing of the parts.
• Enabling Inspections in Real-Time: The design should be carefully developed to make inspection and data collection in real-time easy. This is crucial in helping to identify real or false errors in the production line.
• The Type of Production Materials: If the fittings and screws that are required for assembly can raise the risk of error, you should look for an alternative that is more suitable and efficient.

If you are thinking of automating your industrial manufacturing unit, it is prudent to ensure that only the system that will increase the value is adopted. After installation, review the automation system regularly to ensure that it is delivering the anticipated results.

 

 

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