Welcome to Arch System’s new newsletter, Manufacturing Intelligence!

Every other week, we interview an expert leading the charge on how innovation, digitization, and AI are reshaping manufacturing to be smarter and more efficient.?

In our very first edition, we dive into our interview with DP Prakash , Founder & CEO of DP2ventures . Here are the top takeaways from the interview.?

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#1: Leverage Adaptation and Innovation in Manufacturing Transfers?

“So transfers are very, you know, it's part of the routine, but in transferring you have to be careful about, okay, are the equipment matched? If the tools are different, then why do you expect the same exact result, right? So then the question becomes, well, the tools will be different, and because of practical constraints in business, you're mixing from different vendors and so on, and tools may have been bought at different times and so on. So the question then becomes, you have to work together as a team to understand.?

“See, at the end of the day, Mother Nature works through chaos theory and so on. In other words, there are minute changes that have big consequences. So by getting close to Mother Nature, listening to what she says and being humble about it and saying, look, these are the first principles and this is what worked there. But when we come here, this is what is changing. So how do we adapt? At the end of the day, it is about innovation and adaptation. You have to innovate and adapt. That's a constant theme that I learned from my journey. Certainly IBM magnified it.?

What are some of the challenges? The challenges are when there are even the smallest change you make and say, you know what, it's matched, matched its sector. But let's say the vendor could have been different and it could be a gas that was changed from a different vendor. It has these unforeseen consequences because processes interact with each other in ways that are not immediately obvious. And only at the end of the pipeline do you get to see you could have devastating consequences where millions of dollars could be lost because a process changes at one point, and there could be thousand steps involved. Anywhere from 7,000 steps involved in making a chip. And these things can interact in mysterious ways that are not fully always understood.”

Actionable Takeaway: When transferring processes or equipment, recognize that even minute changes can lead to big consequences. Work closely with your team to understand these changes, be humble in learning from nature’s chaos theory, and adapt your tools and processes accordingly to maintain consistency and innovation in your manufacturing workflows.

#2: Remember That Innovation Sustains Profitability?

“If you innovate, you can increase the price. If you don't innovate, price erodes. If you look at the quantity, if you want to max out the quantity, you have to have all the tools running. If you want to have all the tools running all the time. Because remember, a plane doesn't make money when it's on the tarmac, it makes money when it's flying. Same analogy.?

“Tools have to be up and running. If the tools have to be up and running, then the people running it have to be top notch. They have to understand what's going on. Degrees are secondary. Do they understand? Have you given them the tools to understand beyond the black boxes? Look inside, that is the journey.”

Actionable Takeaway: To maintain profitability, constant innovation is essential. In manufacturing, having tools that are running efficiently and operated by knowledgeable staff can maximize output. Focus on ensuring your team understands the inner workings of the systems and has the tools to look beyond the surface, driving continuous improvements.

#3: Utilize Timeless Metrics for Manufacturing Success

“How do you measure success in any manufacturing? The success 100 years from now will not change. The success metrics won't change. I believe so. And here is why. Number one, what is the most important metric for any manufacturing entity? It is safety that won't change. That didn't change 100 years ago, for Disney it was number one. [...] It didn't change at the time of pandemic. It became even more important. It will not change 100 years from now, right? So understanding when technology changes, what doesn't change is business outcomes is important.?

“Safety is first, second is operations efficiency. Every part of every business, every firm and every function has to relook at the workflow and come in and say, with the current capabilities, with AI, digital twins, and the associated building blocks of innovation, there are many of them — can we reinvent this for better efficiency? This rewiring has to fundamentally occur. Efficiency improvement is what AI is actually transforming.”

Actionable Takeaway: In manufacturing, key metrics remain constant over time: safety and operational efficiency. AI and digital twins are transforming workflows to achieve higher efficiency. Reassess your processes with a focus on efficiency improvement, while never losing sight of safety as the primary metric for long-term success.

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