Manufacturing Mindset Reset

Let’s shake things up! Let's lead the Fourth Industrial Revolution [I4.0] straight to both ends of the supply chain! The disruption of the global pandemic has given us a golden opportunity: we don’t need to return to normal: we can resist the status quo and we can evolve. Over the last year, we’ve seen manufacturers suffering shortages, an inability to meet production demands, goods not getting to suppliers, crates stockpiling or shipping empty. We have identified the issues with a laser focus, let’s turn the spotlight on solutions. Consumer activity is increasing and demands are high, now is the perfect time to?reimagine manufacturing through the lens of fulfillment and growth.?

We need to look at the future of industry and evaluate our tools, operations and policy paradigms. We need a new manufacturing ecosystem of collaboration, end-to-end resource sharing and renewed commitment to quality, conservation and sustainability. Let’s shift the manufacturing paradigm. Let’s launch a manufacturing mindset reset.?

Digital twins — extended!

Digital twins are vital to the future of manufacturing.?Accenture Labs defines them as a digital representation of “a physical object, system or process that exists (or could exist) in the physical world,” like a factory or distribution channel; their purpose is “to monitor, analyze, and simulate their physical counterparts.” Once extended across the supply chain,?they?improve supply chain operations and planning decisions, such as capacity planning, critical resource planning and fidelity on order promise. This changes the focus from cost to customer value. When companies worry about the ROI in scaling their smart manufacturing pilots,?digital twins can provide the best customer use case. They are the ultimate real-time SWOT analysis on operations.?

Collaboration versus control

Control is so yesterday. And, it doesn’t foster innovation or trust. Still, control tower mindset has taken root. Let’s start thinking of them as collaboration towers, instead. The pandemic has demonstrated that manufacturers and suppliers who are already working with shared resources and data sets can achieve greater resilience and agility in their operations. To create start-to-finish visibility of operations and adoption of cloud and edge computing, I4.0 principles needs to be implemented at scale. This will shift the manufacturing paradigm to a more sustainable footprint, like a collaborative manufacturing ecosystem.

Manufacturing ecosystems?

At Accenture we define a manufacturing ecosystem as “a network of industry players who work together to define, build and execute market-creating customer and consumer solutions; defined by the depth and breadth of potential collaboration among a set of players.” For a healthy ecosystem, five persistent issues need addressing:

1.?????The labor and skills shortage in North America

2.?????The growing knowledge gap as the manufacturing workforce ages out and talent development lags

3.?????The lack of trust between manufacturers and the supply base

4.?????The lack of urgency integrating sustainability into business strategy

5.?????Trends around electrification and renewables in heavy manufacturing.

Only?10% ?of companies’?supply chains ?stand out above their peers. They are innovative, flexible, transparent and their ecosystem designs offer collaborative end-to-end solutions. They also share four key traits:

·??????They are customer-centric

·??????Their digital architecture is built for innovation and scale?

·??????They have capabilities that are creating differentiation

·??????They have CEO engagement.

Forty-five percent ?of consumers are making more sustainable choices during COVID-19 and will likely continue. They’re demanding change along the supply chain and across industry; business, policy and government must keep up. Sustainable manufacturing needs collaboration, transparency, low-energy consumption and zero waste. But how? Start with digital twins, collaboration and a manufacturing ecosystem. That’s how we shift the manufacturing paradigm.

Next in The New Manufacturing Paradigm blog series, I’ll tackle the issue of quality in manufacturing. Do the core principles of quality need revising in this post-pandemic digital revolution? Consumerism and technology have integrated into every aspect of our lives, have their traits of make, model and iteration transformed quality, too?