Tag Archives: Prepare for 2018

Manufacturing Trends to Watch For in 2018

As 2017 winds to a close it’s time to start setting goals and preparing for success in the New Year.

Each year, we forecast market threats and opportunities for our manufacturing customers. What will your customers and competitors talk about in the New Year? What pressures and technologies will influence manufacturers in 2018? What can you do to protect yourself and position your business for success as the market changes? The insight can be the strategic edge you need all year long.

Look Ahead to Manufacturing in 2018

As industry experts, here’s what we see influencing manufacturers in 2018:

  • Increased Customer Demands.

More than just larger orders, manufacturing customers are looking for more value from suppliers – value they are receiving in other industries. There’s customer pressure on manufacturers to improve, adapt, and deliver greater value and additional services. If they can’t, the customer will find a supplier that can. This is pushing manufacturers to embrace technology solutions, find additional ways to cut costs, and reduce the lead time on shipments even more than they have in the past to stay a step ahead of customer and consumer demands.

  • Alternatives to the Skilled Labor Shortage.

According to a recent article in Forbes magazine, a shortage of skilled labor could potentially limit business growth for manufacturers even as demand increases. Experts predict there will be a shortage of more than 2 million manufacturing workers in the coming years. In 2018, companies must find ways to overcome this problem, through training programs, technology solutions, or partnerships, to fuel future growth. The companies that implement programs now to overcome the skilled labor shortage will be positioned for success in the future.

  • First Steps toward Digital Transformation.

Many in the media have discussed the imminent “digital transformation” they see sweeping across manufacturing and modern business. As technology is applied to business and production processes, innovation and creativity will accelerate success and “transform” the business. While the media continues speculating and some supplier offer expensive products to “push” the transformation, many manufacturers are taking common-sense first steps toward the digital enterprise by replacing error-prone and dated manual processes with digital solutions that deliver production efficiencies and a rapid ROI. It may not be a “transformation,” but it is changing the manufacturing landscape.

  • Solution Divergence.

Some technology providers predict a single technology solution is on the horizon, and are happy to offer their version of this solution – expensive and overly complex enterprise software that makes no one happy. Despite predictions, many manufacturers are looking at best-in-class solutions to lower costs and improve efficiency rather than piling functionality on the ERP. In the past, adding modules to an ERP has exacerbated the situation rather than solving problems. Manufacturing solutions can’t be found in a system that doesn’t support production workflow or processes. More companies will embrace production control software connected to the ERP, rather than force more functionality out of their existing system.

 Accelerating Success in the New Year

There is no magic formula for finding success in a New Year, but there are proven strategies for capitalizing on opportunity and minimizing risk.

Set achievable strategic goals and take steps to ensure you can meet those goals. Make sure you have the right people, processes, systems and support in place. Continue to track progress against the goals, and when progress is lacking adjust the strategy as needed. Identify problems and inefficiencies in the business, and implement solutions that offer a positive ROI.

While every year brings new, and unexpected, challenges, it also brings opportunities. We look forward to working with manufacturers in 2018 to turn inefficiency and problems into problems and success. If you’d like to learn more about CIMx Software and how we work with manufacturers to eliminate problems and increase production profits, then contact us today and discover what Quantum can do for you.

Four Tips for Delivering Manufacturing Success in 2018

As 2017 draws to a close, businesses are planning for success in 2018. For make-to-order manufacturers, this means setting realistic sales and production goals. Success may require new products lines, attacking a new market vertical, or delivering new services to an existing customer base.

Setting goals is easy – successfully delivering on those goals can be difficult.

New product lines require agility, workflow flexibility and production control. Execution quality is critical, or you run the risk of losing customers before you ever really had them. Best practices for new workflows require process enforcement. Quick and accurate responses to variability are absolutely essential. Efficiency is the difference between success and failure.

Evaluate Your Current Processes

Meeting goals requires preparation. The planning you do now will result in 2018 success. Here are four questions you should ask as you prepare for the New Year:

  • Do you have a reliable source of production data?

The key to overcoming process variability is data. The granular process data that currently eludes manufacturers using dated, paper-based processes is critical to diagnosing problems during production and implementing rapid solutions. With real-time accurate data, companies can implement feedback loops, shortening the response to variability, adjusting processes with speed and accuracy so the business can roll out new products faster.

  • Do you have a firm grasp of profitable and non-profitable work?

Simply selling a new product or serving a new market isn’t a guarantee of success. True success is measured by the bottom line. Accurately calculating profit requires a precise view of production costs. You need to not only know your spend, but also costs and savings in the manufacturing lifecycle. The data and events surrounding expenditures will unlock potential additional savings that ensure profitable work and more accurate estimates.

  • How much control do you have over production?

When implementing a new process or rolling out a new product, best practices are critical. Any deficiency in workflow or processes will result in recurring costs, late shipments and quality escapes. Procedural enforcement, production visibility, real-time operator buy-offs and automated tolerance checks deliver shop floor control. Revision-controlled engineering documentation and digital work instructions eliminate errors on the front-end, providing the complete manufacturing lifecycle control manufacturers need.

  • How quickly can you adjust to changing production conditions?

Business moves fast. Increasing production yield or attacking a new vertical will only increase the pace of change. If you can’t manage change, and still rely on a red pen for every Engineering Change Order (ECO), you are increasing risk at an unsustainable rate. Experience has shown a single change can have an explosive effect on the manufacturing lifecycle, exponentially increasing the time and cost of production across the shop floor.

Prepare Now for Manufacturing in 2018

Answering these questions will identify the gaps in your current processes. These gaps are magnified as production is pushed to increase output and meet the requirements of a new market.

Address these gaps before you invest time and effort in a new product line or pursue a new market. Digital manufacturing software will transition your company from outdated methods to true production control that aligns current capability with aggressive business goals.

Contact CIMx software today to speak with an experienced Application Engineer about low-cost technology tools available now that can deliver shop floor and production control for the competitive edge your company needs in 2018.