2021 Marcum National Manufacturing Survey

07

www.marcumllp.com

S MA R T M A N U FA C T U R I N G D E L I V E R S H U G E B E N E F I T S

by David Mustin | Marcum llp

MORE DATA, MORE SOLUTIONS Smart manufacturing leverages the Industrial Internet of Things (IIOT), a network of interconnected sensors and devices that collect data and assemble it all in one place. Because it involves multiple devices, it makes your production smarter and allows you to precisely track throughput. You can understand things on a granular and holistic level. By knowing which machines are running well and which aren’t, you can predict failure points before they happen. Or you can see how heat, humidity, or volatile gases are threatening a job, allowing you to take action to protect employees and machines to avoid downtime. The net result is better and safer production, which leads to lower costs and more sales. AVOIDING FAILURE POINTS One machine can create a cascade of issues in a manufacturing process. Smart manufacturing provides critical real-time data that arms you with the knowledge necessary to make much faster decisions about job scheduling. You can be proactive and not reactive. For example, smart manufacturing offers the option of setting alerts for a vast array of situations, including when a machine slows down or stops, when there are delays anywhere in the line, or even when there are issues related to the operator of a machine. Sensors can detect movement or people around dangerous areas and can either warn people nearby or even automatically stop the machine for safety. Alerts can be tailored to reach the appropriate managers along the chain of command so they can act fast. NOT THE SAME AS ERP ERP machines don’t see inventory in real time. They don’t have trackers and sensors to let you see where and when a product moves or know right away when inventory needs to be replenished. Unlike ERP, smart manufacturing also shows which machines are the most productive. If a machine is

Most manufacturing leaders have access to plenty of insightful data about their companies’ financial performance, and enterprise resource planning (ERP) systems have helped companies understand systems and processes better than ever. But there’s a lot more data out there that can provide real-time information about how things are going on the shop floor. You can capture all of that data by embracing smart manufacturing. Simply put, smart manufacturing helps your facilities run more efficiently, safely, and effectively. It uses sensors on your equipment to let you know what’s happening on the floor in real time, allowing you to find and act on challenges and opportunities immediately. BECOME MORE COMPETITIVE Manufacturers are always striving to reduce costs, increase capacity, boost efficiency, and beat the competition. You might have an ERP for data around your operations, but that information won’t tell you what’s happening right on your floor minute by minute. Smart manufacturing collects data and analyzes it to help you make better decisions. Smart manufacturing is simple and inexpensive to implement. It delivers five principal benefits: 1. Increased labor and equipment efficiencies. 2. Improved inventory management (you can precisely monitor supply on hand, reorder points, lead times, etc.). 3. Better understanding of service and maintenance needs, which reduces costly machine downtime. 4. Enhanced worker safety (preventing injuries that incur workers’ comp costs, lower productivity, and increase liability). 5. Higher quality (you can catch problems before they reach your customers).

failing, slowing down, or wearing out, you’ll know immediately – and you’ll know if it needs service or if the operator is the problem. Getting down to these root causes means you nip problems in the bud. And with automated tracking of inventory and production, you can avoid stockouts, order inventory in a timely and prudent manner, and stay proactive across every element of your operation. BUILT FOR THE FUTURE Smart manufacturing is perfect for any kind of manufacturing, but it’s especially ideal for additive manufacturing and technology like 3D printing, which allow you to pilot test products with very little investment. These new technologies are causing everyone to think differently about manufacturing. Smart manufacturing lets you be a nimbler, more flexible, and more profitable manufacturer regardless of what you’re making. GETTING STARTED Harnessing all that knowledge and data may sound daunting and expensive, but pilot projects are very cost-effective and can be done on a small scale. That means your first step can be very affordable, allowing you to see how smart manufacturing works and whether it’s helping your meet your goals. Pilot projects come together fast and can vividly illustrate the benefits. Marcum can do an assessment that helps you understand needs and budget, and help you pick the right solutions. This can be part of a broader assessment, allowing you to adopt best practices across your whole operation (including your ERP system) and harness the power of the IIOT. Marcum tailors every solution to meet the needs of each client. Whatever your goals – efficiency, inventory management, quality, or safety – Marcum can get you there.

David Mustin, Vice President – Strategic IT Consulting, Marcum LLP 440.459.5755