Designing The Factory Of The Future

Transcription

1 Designing The Factory Of The Future World Manufacturing Forum 2012 Stuttgart, 17 October, 2012 Pier Manenti Head - EMEA Research IDC Manufacturing Insights

2 Business Process Business Process Information Technology The Dynamic Enterprise A division of IDC Develops industry research, benchmarking projects and advisory services on business process best practices and on the use of IT in manufacturing Helps manufacturers improving their capabilities in key business process areas Helps IT vendors to assess the market opportunities and better focus offering toward end-users needs IDC Manufacturing Insights Page 2

3 The Factory of the Future report Factory of the future Analysis of major business drivers Most critical Manufacturing Operations trends Definition of future factory models The role of IT and IT investments Research statistics More than 90 interviews. Mainly from developed economies (US and Western Europe) Equally distributed between discrete and process manufacturing industries Company size: 50% SMB (<500 employees) 50% larger business Job Role: CEO and LOB (Operations, Supply chain, Engineering 90% CIO 10% IDC Manufacturing Insights Page 3

4 THE MANUFACTURING INDUSTRY IN 5 YEARS FROM NOW IDC Manufacturing Insights Page 4

5 From Product Leadership to Product and Price Leadership Q. To what degree are the following sources of competitive differentiation today? And in 5 years from now? Product leadership and innovation 58% 08% +14.2% Customer service leadership 46% 19% +42.1% Today Price leadership or competitive prices 39% 17% +43.0% Global reach 43% 08% +18.5% In 5 years from now Mastering complexity 32% 13% +40.6% Process leadership 32% 05% +16.5% 0% 20% 40% 60% 80% IDC Manufacturing Insights Page 5 Source: IDC Manufacturing Insights 2012 N=90

6 What are the Attributes for Effective Manufacturers? Customer centric focused on customer fulfillment needs and open to market trends and opportunities. Moving from capacity to capability. Agile ability to quickly change tactical directions and reconfigure themselves to adapt to changes. Flexible Manufacturing. Robust Able to manage the increasing complexity in doing business in manufacturing IDC Manufacturing Insights Page 6

7 Renewed emphasis on disciplined operations management The volatile world economy has put a renewed emphasis on disciplined operations management The execution of manufacturing processes is where customer orders are fulfilled, is where customer satisfaction or dissatisfaction is originated Manufacturers are returning back to basics, to their manufacturing roots, and to put a renewed premium on production knowledge and operational excellence Governments better understand that an economy based on service industries alone can t survive in the longer run. Every $1 spent for a finished manufactured good, generates $0.55 of GDP in the manufacturing sector and $0.45 in nonmanufacturing (Source: US Bureau of Economic Analysis) IDC Manufacturing Insights Page 7

8 Designing the Factory of the Future A formal analysis and planning strategy - with top management backing, involvement and funding - is underway 08% 09% 16% 24% 43% Management is gathering some information, but most thinking about the future is informal at this time We are focused on current needs and issues; 5 to 10 years in the future is too far ahead to plan We are trying to follow industry trends, and are primarily relying upon third-party sources of information, including consultants, analysts and the industry press Don't know Source: IDC Manufacturing Insights 2012 N=88 IDC Manufacturing Insights Page 8

9 The driving principles for the factory of the future Q. What degree of importance do you anticipate your company will attach to the following measurements in judging the success of its factories and plants in the future? Production yield/manufacturing cycle time/product costs % Price Leadership 29% 1% The Perfect Order, on time and in-full delivery to customers Flexibility/Capability of fulfilling customer needs rather than making sure production capacities are fulfilled % % 38% 34% 6% 2% Customer Fulfilolment Total supply chain costs % 39% 6% Ability to ramp up production for new products % 37% 9% OEE (Operating Equipment Effectiveness) metrics % 44% 13% Emissions per unit of production, reportable safety incidents/year 35.00% 41% 24% Warranty costs per unit % 42% 27% 0% 20% 40% 60% 80% 100% Source: IDC Manufacturing Insights 2012 N=83 IDC Manufacturing Insights Page 9 High Moderate Low

10 Manufacturing Operations Drivers From Capacity to Capability The productivity-vise : productivity gains, when outpacing market growth, created idle capacity which put downward pressure on prices and resulted in the need to improve productivity even further Capability vs. Capacity: Ensuring the capability of fulfilling customer needs rather than making sure production capacities are fulfilled Fulfillment Efficiency Quality Volume Pre-industrial Phase 1 Phase 2 Phase 3 Phase 4 IDC Manufacturing Insights Page 10

11 TRENDS IN MANUFACTURING OPERATIONS MANAGEMENT IDC Manufacturing Insights Page 11

12 New Production Models Q. What is your primary production model today? Q. Looking ahead 5 years or more, what primary production model do you think your company will have? 100% 90% 11% 22% Engineering to order 80% 70% 30% Jurney towards Make-to-Individual 60% 35% Assembly to order / Build to order 50% 40% 39% Make to order 30% 20% 10% 0% 21% 34% 09% Make to stock Source: IDC Manufacturing Insights 2012 N=88 IDC Manufacturing Insights Page 12

13 New Supply Chain Models Q. What is your current factory network model? Q. What do you anticipate will be your company's primary factory network model in 5 years? 100% 90% 80% 29% Jurney towards Profitable Proximity Sourcing 24% A network of small local factories, proximate to demand and focused on local products 70% 60% 50% 40% 16% 09% 24% 19% Modular platforms are produced centrally following mass production principles, while suppliers, distributors or retailers customize final products on demand A significant part of production is outsourced to low cost countries 30% 20% 10% 46% 35% A few large factories producing multiple finished products with mass production principles to serve global markets 0% Source: IDC Manufacturing Insights 2012 N=76 IDC Manufacturing Insights Page 13

14 MTS Make-to-Individual Product dynamics Trend towards mass configuration MTO/ETO The journey towards the Global Plant Floor Global Plant Floor International: Highly verticalized, few large plants IDC Manufacturing Insights Page 14 Multinational: Multiple regional plants Trend towards multi-plant Production dynamics Transnational: Push-pull with small plants proximate to demand

15 MTS Make-to-Individual Product dynamics Trend towards mass configuration MTO/ETO The journey towards the Global Plant Floor The Global Plant Floor Network of factories, managed as a unique virtual factory that consolidates the number of different manufacturing plants in terms of resources, processes, and products. Call for the ability to harmonize, supervise and coordinate execution activities across company's and suppliers manufacturing operations with greater level of real-time visibility. Centres of Operational Excellence and plant-floor IT are essential to this transformation International: Highly verticalized, few large plants IDC Manufacturing Insights Page 15 Multinational: Multiple regional plants Trend towards multi-plant Production dynamics Transnational: Push-pull with small plants proximate to demand

16 THE FACTORY OF THE FUTURE IDC Manufacturing Insights Page 16

17 Definitions of the Factory of the Future People will be at the centre of the factory of the future as they provide the degree of flexibility and decision making capabilities that are required to deal with increasing complexity People-intensive Factory of the future Information technology will be essential to create real-time decision making environments to support the factory of the future IT-intensive Factory of the future The factory of the future will be automation intensive: all production processes will be highly or completely automated with few or no people involved in production operations Automation-intensive Factory of the future IDC Manufacturing Insights Page 17 Source: IDC Manufacturing Insights 2011 on Manufacturing Executive survey N=88

18 The Factory of the Future People-intensive Factory of the future Decision making environment IT-intensive Factory of the future Real-time data Automation-intensive Factory of the future IDC Manufacturing Insights Page 18

19 The Factory of the Future Mass Customisation Peopleintensive Area of focus for building the factory of the future People + IT + Automation 18.0% Leaders People + IT 31.1% IT-intensive IT 29.5% Focus area Emerging IT + Automation 14.8% Mass Production Automation-intensive Automation 6.6% Laggards IDC Manufacturing Insights Page 19

20 The People Intensive Factory People will be at the center of the factory of the future as they provide the degree of flexibility and decision making capabilities that are required to deal with increasing complexity Autonomation (Intelligent automation) Design and development of combined automation and human production systems Cost efficient when compared to full automation Next generation robots: emergence of cheap, easily configurable robots that can learn The Global Plant Floor Managing multiple different locations as a single entity Enterprise Manufacturing Intelligence Internet of assets / M2M Creation of multi-machine and multi-factory networks enabled by technology that provides for the acquisition and delivery of real time data as well as the ability to remotely control the equipment to initiate corrective action Augmented reality, virtual reality, digital manufacturing Technologies deployment to assist skilled workers on the shop floor for control, quality and efficiency improvement IDC Manufacturing Insights Page 20

21 BARRIERS IDC Manufacturing Insights Page 21

22 Top Barriers Q. What are the top barriers to implement your factory of the future strategy? Processes are not consistent across multiple manufacturing facilities 74% Low maturity/lack of production technology 73% Change management 73% Finding skilled people 71% The company doesn't have a factory of the future strategy 61% Difficulty in demonstrating ROI / cost 58% 0% 20% 40% 60% 80% 100% Source: IDC Manufacturing Insights 2011 on Manufacturing Executive survey N=81 IDC Manufacturing Insights Page 22

23 Would you recommend a carrier in manufacturing to family members? 100% 80% % % People-intensive Factory of the future Recommend: 73% Don't know No Maybe Yes 60% 40% IT-intensive Factory of the future Recommend: 57% 20% % Automation-intensive Factory of the future Recommend: 63% 0% IDC Manufacturing Insights Page 23

24 Thank You! Questions? Pierfrancesco Manenti Head of IDC Manufacturing Insights, EMEA Please contact me on site for a copy of this presentation IDC Manufacturing Insights Page 24