Tag: Advanced Manufacturing Technology

contract manufacturing

Why are Top manufacturers moving to Contract Manufacturing?

What is contract manufacturing?

Contract manufacturing is often used interchangeably with the term ‘outsourcing.’ outsourcing is the technique of transferring portions of work to outside sources and suppliers, instead of undertaking the entire work within the company, resulting in lower costs and expenses. Contract manufacturing is a form of outsourcing where a manufacturer enters into a formal agreement with another manufacturer (contract manufacturing organization) to produce parts, products, or components, which the former will then use in its own manufacturing process, to complete its own product. They then undertake their own marketing, sales and distribution, and customer service to bring the final product to the end-users or consumers. In some cases, contract manufacturers may also be specialized organizations that provide contract manufacturing services to more than one business. 

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Different types of contract manufacturing

The different forms of contract manufacturing vary based on nature and operations involved in a business. Some of the most common forms of contract manufacturing agreement includes:

Production of the entire product

As the name clearly suggests, this involves contract manufacturing organizations building the entire product for a company under the brand name or label of the latter. This type of contract manufacturing is also called as ‘private label manufacturing’.

Production of parts or components

In this type of contract manufacturing, companies depend on a contract manufacturing organization to produce parts or components that will be incorporated into the final product of the company. For instance, a computer hardware manufacturer can use contract manufacturing for producing smaller computer parts and components, which is then assembled into their final product.

Hiring service or labor force

This involves subcontract for labor. If a business does not possess enough manpower in their company to carry out production processes smoothly and quickly, then they can outsource labor. Take the example of big multinational companies in the US who set up their manufacturing unit in Asian countries and subcontract their labor forces to Asian human resource companies. The key reasons why companies adopt this form of manufacturing is the specialized skills that these labor forces have and the comparatively cheaper cost of labor when compared to their home countries.

Using manufacturing equipment or facility

Companies that do not have the facility or the equipment to manufacture can transact with a contract manufacturer for the use of their facility. This saves the company capital investment needed to set up a manufacturing unit.

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Why do top manufacturers favor contract manufacturing?

The decision to make or buy a product/ parts of a product can often prove to be a tough decision for companies. They often undertake feasibility studies for the management to gain a better understanding of what would be more beneficial for them. One of the key benefits that companies can derive from contract manufacturing is the reduction in cost and expenditure. But this is not the only reason companies opt to get into agreements with contract manufacturing organizations. Some of the other reasons include:

  • Improved allocation of resources
  • Greater focus on core business functions
  • Increased innovation and enhanced product quality
  • Reduction in manufacturing time
  • Streamlined business relationships

 

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Manufacturing Industry Trends: What’s New in 2019?

Despite the rising challenges, top companies are keen on orchestrating the latest manufacturing industry trends into their business strategy. As a result of leveraging advanced manufacturing capabilities, manufacturers are benefiting from increased visibility into operations, substantial cost savings, increased speed in production times and improved customer support. The future of manufacturing will continue to revolve around digitization and technological innovations. Based on our manufacturing industry trends analysis, here’s our take on the top trends expected to dominate the market in 2019 and how the recent trends in manufacturing technology are all set to revamp this sector.

Emerging manufacturing industry trends, market expansions, and technological innovations will underpin the growth of the manufacturing sector in 2019. Request a free brochure to learn how our solutions can help businesses adapt to the dynamic market.

Manufacturing industry trends 2019

manufacturing industry trendsPredictive maintenance

A manufacturing equipment breakdown could prove to be a costly affair for manufacturers – both in terms of repairs as well as the loss of productivity due to the downtime. In fact, a single hour of downtime could cost manufacturing companies thousands of dollars. Therefore, several companies in the manufacturing sector are turning towards the latest manufacturing industry trends like predictive maintenance to ensure proper functioning of all their equipment. In predictive maintenance, a number of performance metrics are used to monitor various equipment. Automating the data collection process using IoT technology helps manufacturers gain a better understanding of how systems work and when they are likely to fail. The ability to predict the maintenance cycle and requirements saves manufacturers valuable time, money, and resources.

Blockchain boom

The blockchain technology is now gradually taking the manufacturing industry by storm. In 2019, we can expect blockchain to be one of the most notable manufacturing industry trends that can have a direct impact on several sections of the manufacturing industry including- increasing speed, cost-effectiveness, and security. This technology is also likely to play a major role in enhancing the management, tracking, and transaction reporting in the supply chain.

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Reshoring

Reshoring or bringing back production operations into the United States is one of the key manufacturing industry trends to watch out for in 2019. There are several factors contributing to reshoring. Firstly, the increase in the standard of living of go-to offshoring countries is resulting in increased wages. Secondly, the countries that offer cheap labor do not have the infrastructure capabilities that are necessary to support the complex manufacturing processes. Today, one of the most notable manufacturing industry trends include automation for basic and repetitive processes, which is also a major contributor to the resurgence in reshoring.

Simplifying supply chain management

Delivering more value to customers when compared to the counterparts in the market plays an integral role in remaining competitive in the market. This is no longer accomplished through pricing strategies as savvy manufacturers are fast moving away from price wars and leveraging ways to gain competitive benefits. This includes simplifying supply chain management to gain operational efficiency, increased visibility and control, improved customer satisfaction, and lower operational costs. Some of the key supply chain technology solutions that can be used to address the challenges in manufacturing include- manufacturing optimization, sales and operations planning, business intelligence, and product lifecycle management.

ERP systems

New manufacturing industry trends such as enterprise resource planning (ERP) are playing a critical role in creating a lean and competitive advantage for manufacturers. ERP systems help manufacturers to streamline processes by automating business process and provide real-time and accurate information which helps reduce the administrative and operational costs. As a result, manufacturers can proactively prevent disruptions, manage operations, and facilitate quicker decision-making.

Why Infiniti?

Leading players in the manufacturing industry are confronting uncertainties in the face of digitization and new customer expectations. Moreover, with the rapidly changing manufacturing industry trends, industrial and manufacturing sector companies are facing the need to develop new strategies and invest in technology to gain a stronger foothold. Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.

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5 Smart Manufacturing Opportunities that Manufacturers Must Grab

Manufacturing is and will continue to be a critical force in both advanced and developing economies. However, the global manufacturing sector has undergone a tumultuous decade. From large developing economies leaping into the first tier of manufacturing nations, a severe recession choking off demand, to manufacturing employment falling at an accelerated rate in advanced economies. The good news here is that the manufacturing industry is all ready to be re-imagined, reinvented, and reborn. Here are five incredibly potent opportunities in manufacturing that manufacturers have to pounce upon if they wish to stay competitive through smarter manufacturing:

Smart manufacturing opportunities in manufacturing

Manufacturing intelligence

Intelligence in the manufacturing industry must be carefully planned, implemented, managed and invested in. This generally requires a completely new view and perspective regarding what is traditionally looked Get More Infoat as strictly a mechanical or procedural challenge. This includes advanced data collection from sensors and actuators, immediate knowledge of inventory, assets, production condition; and increased process, productivity, and cost granularity.

Predictive analytics

Manufacturing intelligence must be used by companies in the manufacturing industry in such a way that it will predict the future so that decisions and actions are taken before problems emerge, before the occurrence of risk, and before opportunities are wasted. This includes enabling predictive technologies, embedded analytics, and rapid response capabilities.

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Quality management

Quality management is the way ahead for how players in the manufacturing industry can achieve nearly zero waste, zero incidents, and zero emissions. The new improvements in quality will develop from factors including information visibility, connectivity, and analytics.

Manufacturing network monitoring

The ability to see and act on your entire network enables companies in the manufacturing industry to predict problems, quickly deploy corrective actions (such as repairs), and keep the entire network humming. This results in improved operational decisions; enhanced remote visibility; and the lowest cost of production possible.

Visibility and visualization

Unless information helps businesses to understand and act, it becomes practically meaningless. It is necessary to have a holistic, dynamic view of the company’s operations in real-time, and visualize people, systems, assets, and inventories as they make their way through a complex supply chain. Manufacturers can see multiple factories in a single view, utilize advanced manufacturing dashboards; and optimize their capacity across the entire enterprise using new instrumentation, networks, and control rooms.


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4 Digital Trends in the Manufacturing Industry to Buckle up For

Though the manufacturing industry in the US has taken a hit over the years, by-and-large it continues to be resilient by incorporating new methods and technologies while navigating through the related challenges. Currently, several tech and digital trends which include the Industrial Internet of Things (IIoT), robotics, and 3D printing, are delivering efficiencies and new opportunities in the way companies in the manufacturing industry approach developing products, managing new operations, and serving customers. Also, manufacturers are facing emerging challenges that include – managing legacy systems, finding and keeping viable workforce talent, and handling large volumes of data appropriately and effectively. 

Four Digital Trends in the Manufacturing Industry

IoT in B2B manufacturingRequest Proposal

IoT has helped attain new efficiencies in the retail and finance industry; however, industrial manufacturers have faced difficulty when it comes to understanding how this technology will create new business models and increase customer satisfaction. This year, it is expected that companies in the manufacturing industry will save more time and money as their IoT-enabled equipment undertakes self-maintenance and alerts managers to developments. Along with substantial material cost savings, this will reduce equipment downtime, overall maintenance costs, and maintenance planning time.

Collaborative robots

In 2018, smarter, less costly and much safer industrial robots called collaborative robots or ‘cobots’ are expected to replace bulkier, potentially more dangerous traditional industrial robots. With China and the United States taking the lead in adoption rates, cobot shipments are expected to increase significantly in the manufacturing industry.

Blockchain in manufacturing

The blockchain technology is mainly associated with cryptocurrencies – the technology creates a way for digital information to be recorded, stored, and distributed but not duplicated or copied. Industry experts believe that it will play an increasingly large role in other industries, including the manufacturing industry. It can be considered a more trustworthy way of building digital relationships.

Rise of cybersecurity risks

2017 had witnessed numerous cybercrimes that proved to be highly challenging for companies in various industries. And in 2018, these malware attacks are expected to become more severe with the increasing number of sensor-infused, internet-connected devices. As manufacturers increasingly embrace cyber-physical systems, the vulnerability of their operations will become far more vulnerable. However, advances in AI and machine learning offer solutions that will help predict and ward off cyber attacks.


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Why Should You Be Using AR in the Manufacturing Industry?

When you hear the word augmented reality, the first thing that comes to your mind is AR gaming. The application of augmented reality is not just limited to gaming. Its ability to turn the surrounding into an interactive virtual world can augment the experience and performance of any task. Manufacturing industry, in particular, is blessed by such advances in technology, as it increases the process efficiency and helps cut down on production downtime. So what Request Free Proposalare the benefits of using AR technology in the manufacturing industry?

Increase speed of work

It usually takes a lot of time for people to learn assembly and manufacturing skills. This is particularly true in the case of fighter jet engineers who go through years of training to assemble an aircraft. AR technology can hasten the process as it can overlay images in the real world using sensors and cameras. Such information helps engineers to see renderings of bolts, part numbers, and cables with specific instructions on assembling a specific component.

Solving problems

Whenever a problem arises on the shop floor, every team requires real-time access to solve the problem at hand. However, it cannot be possible for all teams to access the problem due to their location. Manufacturing operations employees can directly show all the issues at hand and explain it to the maintenance teams and engineers with the help of AR. Additionally, they can also keep track of the progress of diagnostics processes remotely.

Easy data access

Apart from projecting vital information within a user’s field of view, AR technology also allows service engineers and manufacturers to access data regarding the product or the manufacturing process easily. This includes information on the object’s location in the inventory, lead times to procure them, and their detailed specifications. Also, it is entirely possible to scan QR codes to view live videos, graphics, and images that can assist the engineers in the manufacturing process.

Decreased maintenance time

Augmented reality can project graphics and video in such details that the users would be able to carry out maintenance tasks just by following the instructions. The automotive company Bosch has collaborated with AR firm Reflekt to develop common augmented reality platform (CAP) that can help users with maintenance.

Reduction of production downtime

Production downtime can cause thousands of dollars in losses and incur an opportunity cost in a manufacturing firm. Augmented reality can help maintenance teams and engineers to identify the flaws and prevent downtime from occurring quickly. Teams in the manufacturing setup can use mobile apps to identify the problem on the shop floor and resolve it immediately.

Training uses

AR is one of the most preferred tools when it comes to training and simulation. VR is already extensively used for simulation training for aircraft pilots, military operations, and advanced surgeries. AR can be used in training to facilitate the learning process.

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Harness the Power of Rapid Prototyping in Your Product Design

Imagine a scenario where you manufacture a device in bulk only to find out that some parts don’t work in conjunction with others, deeming the product completely useless. That’s a nightmare for any firm in the manufacturing industry. Manufacturing firms are using rapid prototyping in their product design phase to avoid similar problems. Manufacturers create a 3D model of a part or a product to test its efficiency before manufacturing in large quantities. Rapid prototyping allows product designers to demonstrate the look and feel of the product to clients or in-house management. The manufacturing industry is increasingly adopting rapid prototyping, 3D printing, and additive manufacturing in the product design process to transform the concept into reality effectively.Request Free Proposal So how exactly can design teams and manufacturing companies benefit from rapid prototyping?

Design accuracy and precision

Conventional industrial prototyping was a very iterative process and inefficient, resulting in lower quality manufacturing standards. For instance, design firms used cardboards, empty cans, and deo roll-ons to create the first prototype of a computer mouse. The problem with such prototyping is that it is a distance apart from the final product and fails to acknowledge real-world working conditions. Rapid prototyping allows for flawless product design and flexibility with the help of rigorous testing, evaluation, and quick remodeling capabilities. Rapid prototyping and 3D modeling rely on software such as CAD, which facilitate virtual product trials and error elimination.

Incorporating instant changes

One way of gaining competitive advantage is being the first to introduce innovative products to the market. Being the first-mover in the manufacturing industry requires companies to have a very short time-to-market. Iterative product revisions slow down the product development process and the time-to-market as well. Rapid prototyping allows product designers to instantly incorporate client or management feedback and move the product through multiple changes quickly. This way, the final product meets the market demand and increases the acceptance rates and competitiveness of the company.

Communication of idea

Before a product hits the market, it gets approved by various internal and external stakeholders including management, product designers, marketers, clients, collaborators, and regulatory bodies. If the prototype is weak and doesn’t communicate the idea clearly, companies will face hindrances in getting quick approvals; thereby, delaying the product launch. Rapid prototyping allows companies to build sophisticated designs and present the design idea in a detailed and clear way due to their CAD capabilities. Easy communication of design ideas thereby translates to rapid innovation.

Customizing designs

There’s a high probability of incorporating customized changes along the design process. Rapid prototyping allows for the development of personalized products as per individual requirement without the need for special tools or process. All that is required is a small change in the CAD model, and they can deliver the design as per the requirement of the customer.

Minimizing design flaws

Since rapid prototyping allows for changes to be incorporated swiftly, all design flaws can be addressed instantaneously. With the help of additive manufacturing, the company can identify flaws prior to mass production. Since the prototype material closely resembles the properties and strength of the actual product, it allows for physical tests to be performed effortlessly. Consequently, product faults and usability issues can be identified earlier to prevent hiccups in the manufacturing process later.

Cost and time savings

Additive manufacturing can eliminate the need for developing molds, patterns, and special tools – resulting in massive time-savings. Unlike conventional prototyping methods like CNC machining, rapid prototyping produces minimal wastages as it only prints the materials that are actually required to build the object. As a result, it offers enormous cost and time savings to the manufacturers.

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5 Principles of Lean Manufacturing – Simplified

Lean manufacturing is the most trending buzzword in the manufacturing industry which is aimed at efficient use of resources to generate high-quality products. Lean manufacturing is a continuous improvement philosophy which was conceptualized by Kaizen or Toyota Production System. It is the same concept that helped Toyota to compete with the US car industry post-WWII period. The concept seeks to implement business processes that deliver high-quality results while maintaining worker safety and morale and also lowering cost and shortening lead times. Lean manufacturing can significantly improve the efficiency of the manufacturing industry and thereby reduce the production cost. Here are five principles of lean manufacturing that will help the manufacturing industry implementRequest Free Proposal lean techniques.

Identify value

Value of the product always refers to customer’s need for a specific product. For a long time, companies have been producing goods on the basis of what they think is the best, losing vision of customers being the end-user. As a result, if you want to design the best product, it should always start with finding ways to determine what customers actually want in the first place. They need to understand the customer needs in terms of product functionality, ease of use, and pricing. Players in the manufacturing industry can use tools and techniques such as brainstorming, market gaps identification, consumer research, and quality function deployment to identify various needs of the customers. Subsequently, companies should only engage in activities that improve the value of their product to the customers.

Map the value stream

After assessing what value the customers’ want, the next step is to map the value stream. Companies will have to map all the steps and processes involved in converting raw material into the finished product. In order to abide by the principles of lean management, companies should find the most suitable raw material and engage in adding value to each step and dissolve processes that don’t add value. To simplify things, managers can start out by drawing each step on a page as a map depicting the flow of materials and products through the process.

Create inventory flow

After identifying and removing waste from the value stream, it is important to ensure smooth flow of operations without any delays, interruptions, or bottlenecks. These value-creating steps should occur in tight sequences to ensure a smooth flow till the final product delivery to the customers. Employees must get rid of silo thinking and put in cross-functional efforts across all departments. Cross-functional efforts ensure smooth flow of operations even when employees are reshuffled across departments.

Establish value pull

With improved inventory flow, time to market can be drastically improved. This lean manufacturing principle requires players in the manufacturing industry to set out ways which make customers demand the product rather than pushing the product to them. Simply put, if the product was not designed to suit the customer’s needs, then companies will have a hard time persuading the customer to purchase the products. This saves company time and money as products doesn’t need to be created in advance or material stockpiled.

Seek perfection

Achieving perfection is the ultimate goal of the lean manufacturing principle. Manufacturers should always focus on perfecting their products by attaining perfection in each value creation steps and removing waste. Businesses should strive to deliver the product within the designated time and employ continuous improvement tools like Kaizen to achieve perfection.

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Top Trends in the Manufacturing Industry: Prediction 2018

The manufacturing industry is under immense pressure to innovate and bring down the costs rapidly. The rapidly rising rate of technological advancements and increasing product penetration in the emerging markets have raised the bar for the manufacturing industry. At present, the manufacturing industry has been aggressively pursuing digital transformation to improve process efficiency and empower innovation. According to a 2015 World Bank report, the value added in the economy by the manufacturing industry in China is anticipated to be around IR_Brochure$3,250,412 million, which is the highest in the world. It is also one of the biggest employers in the world, creating millions of jobs in the economy.

Top trends in the manufacturing industry

Leveraging digital platforms

The rising consumer expectations and advent of connected devices and platforms are the most significant drivers of digitization in the manufacturing sector. In order to ensure that the right products are manufactured at the right price and gets delivered to the right people, the industry has been using advanced digital technologies such as IoT, AI, machine learning, robotics, and data analytics. These digital technologies are crucial to optimize the enterprise value chain and supply chain.

IT and value chain

A vast majority of the companies are refraining from embracing digital technology due to substantial setup costs associated with it. However, companies have started to realize that the benefits far outweigh the costs. IT departments of the organization are making efforts to ensure that their value chain process is in alignment to their business strategy. Such steps will help release 10% to 20% of the total IT applications costs. It has been evident that early adoption of digital technologies pays up its initial costs by increased operational efficiency and productivity boosts.

Legacy applications

Legacy applications mostly have a negative connotation regarding being an outdated and inefficient system. However, this is not always the case as manufacturers processes, business data, and digital histories all exist within the legacy system. Replacing legacy system with newer technologies may not always facilitate smooth data and system transition. Most manufacturing companies are still relying on legacy systems; whereas, others are looking to phase out legacy applications to enable digitization slowly.

Smart manufacturing

The concept of smart manufacturing has gained a lot of attention in recent times, and many players in the manufacturing industries have introduced this concept in their plants and production zones. However, the majority of them are struggling to implement fully scaled smart manufacturing concepts. Industrial IoT has helped the manufacturing industry to implement fully scaled smart manufacturing concepts. Manufacturers are prioritizing predictive maintenance and energy management in the initial phases and are looking to implement more complicated AI-oriented applications. Such technologies will improve product quality, lower machine downtime, and save labor costs.

Pricing models

Outcome-based pricing has been popularized recently by the medical devices and pharmaceutical companies. However, in the manufacturing industry, the suppliers are still not ready to adopt such pricing models because of which buyers usually have to outlay huge budgets for equipment acquisition. The things look to remain the same in 2018 as well, owing to the fact that GE has not seen growth in its market share or stock price despite using such pricing models for their connected products. It is expected that companies in the manufacturing industry will continually examine the feasibility of this pricing model and practice it on a smaller scale.

 

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How is Technology a Boon in the Supply and Demand of Natural Resources?

In recent years, technology has transformed our lives drastically. While technology can be considered as a sword with two edges; for now, let us focus on the mounting benefits that it has offered to the human race.  For many years we have been depleting the natural resources for our uses. However, technological advancements have made it possible to reduce exploiting natural resources and switch over to other alternatives. Technological innovation such as robotics, artificial intelligence, Internet of Things and data analytics are hugely transforming the supply and demand of natural resources.IR_Brochure

Shift to Energy Efficient Technology

Over the years, consumption of energy has become less intense and more efficient as people have started resorting to energy efficient technologies in homes, businesses, and transportation.  In addition to this, technological innovation has helped bring down the cost of using natural resources for generating renewable energy; thereby influencing their demand-supply ratio. With the advent of technology, it has become much easier for resource producers to deploy a range of techniques into their operations, making the operations more efficient by shifting to predictive maintenance and using data analysis to discover, extract, and manage resources.

Technology in Enhancing Productivity

Machines can perform the same operations as humans in a much lesser estimated time and are more accurate. This is one of the main reasons why in many industries, such as mining, some of the crucial operations have been replaced by machines and technology. Technology has made industries much safer as well by reducing the risks involved in dangerous processes by replacing humans with machines in such activities. When the productivity of industries dealing with natural resources is increased, it will result in better supply and demand balance in the market.

Make the Right Decisions

Various advanced technologies such as data analytics, IoT, and predictive analytics can be employed by companies dealing with natural resources to determine the optimum level of extracting and using the resources with minimum costs and wastage. The demand and supply of natural resources can also be adjusted based on the data analyzed, giving the companies more room to plan and execute the operations and arrive at an equilibrium between the demand and supply of resources. Better analysis of data using technologically advanced techniques also helps companies to reduce the maintenance and repair costs in the long run.

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How Augmented Reality Can Change the Face of the Manufacturing Industry?

Manufacturing industries across the globe are increasingly adopting all the latest disruptive technologies of the 21st centuries including IoT, VR, automation, robotics, and big data analytics. Augmented reality is no exception to this statement. The outrageous success of Pokémon GO fueled the widespread acceptance of the augmented reality technology within numerous industries. The ability of this technology to augment digital information onto physical elements and objects has limitless possibilities in the manufacturing industry. It can also cut down operating costs and production downtime in addition to ensuring a smooth flow of operation.

Augmented reality in the Manufacturing Industry 

Helps with Complex Assembly
The manufacturing process has grown complex over time, requiring the assembly of hundreds and thousands of components in precise sequence. Missing any small component or the sequence could severely compromise the product’s quality. Augmented reality eliminates the use of documents such as instructions and dynamically projects all information on the field of view all the times.Contact US

Cut Down on Maintenance Time
Today, companies have to rely on the availability of the technicians for any maintenance tasks. Augmented reality can enable any person to do mechanical tasks by guiding them through 3D models to carry out the maintenance tasks. Additionally, it also eliminates the need for any maintenance manuals and displays the machine’s status in real time for timely maintenance.

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