Practical strategies for modern manufacturing
Innovation meets legacy in this roundup of profitability, sustainability, supply chain flexibility, and other key issues for manufacturers.
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Manufacturing executives today balance many fast-spinning plates. Along with supply chain disruptions, there are rapid technology advances, volatile trade policies, and sustainability concerns on top of the usual maintenance and productivity tasks. It’s like repairing a storm-battered ship at sea using unfamiliar tools, with uncharted waters ahead. This collection of articles helps find the way, with insights from subject matter experts at SAP and throughout the manufacturing community.
Among the key lessons:
- Upskilling current employees is vital for achieving advanced manufacturing objectives
- Done correctly, sustainability is profitable, with reduced waste and increased efficiency
- Generative AI (GenAI) can accelerate product innovation now, in addition to automating administrative work and simplifying contracts
- Modernisation isn’t all-or-nothing; retrofitting older equipment can increase production and reduce waste
- Building IT and operational technology (OT) cooperation? Try co-location, shared informational sessions, and a dose of empathy
- As digitised operations increase, security demands more visibility across myriad protocols and systems
Read on for in-depth explorations offering dozens of practical strategies in building profitable, sustainable, and data-driven manufacturing operations
Modernising factory operations
Factories are often enormous, expensive, and cumbersome, and just when a factory upgrade is complete, the next wave of technology is already rolling in. Embracing future opportunities whilst sustaining past investments is the name of the game.
Bridge the IT/OT gap
With new and modernised equipment roaming the shop floor, IT/OT convergence is at the heart of digital manufacturing. The two departments can no longer function separately. Cybersecurity is a natural starting point for tighter IT/OT collaboration; other strategies include cross-training and cross-exposure, joint leadership development programmes, and early involvement in each other’s projects. Addressing the traditional divide head-on with humour, empathy, and role-playing can go a long way.
Learn more in "Production logistics and the new OT"
Attract the manufacturing talent you require
Finding (and winning) hires in advanced manufacturing isn’t easy these days, but innovation in job descriptions, duties, and career plans can bolster your recruitment efforts. Begin with an audit of your employer brand to refine your reputation in the talent marketplace, increase your training efforts, and consider the job appeal of integrating cobots, virtual and augmented reality, or other advanced technologies in your investment calculus.
Find more strategies in "Hunting for advanced manufacturing talent: 4 moves"
Develop your team's advanced manufacturing skills
“We are on the cusp of one of the most substantial shifts in how things are made,” says Michael Gretczko, principal and chief business architect at Deloitte Consulting. “The workforce of the factory of the future will look markedly different from how it has looked since the dawn of the Industrial Revolution.” A fresh mix of capabilities will be in demand, including continuous learning, proactive problem-solving, a deep understanding of operational purpose, a drive for innovation, and specialised expertise.
Address these 12 security issues as your factories change
Concerning ransomware and other digital threats, “the worst is yet to come,” says Stuart Madnick, Founding Director of the Cybersecurity at MIT Sloan Consortium. As factories implement Internet of Things (IoT) and AI technologies, some common security risks develop, including limited visibility into OT environments (which hampers detection and response), inadequate protection of edge computing resources, and unsecured automated building systems such as HVAC, lighting, and access control.
Learn all 12 common security risks
Plan the factory of the future
Many companies struggle to build a factory of today, let alone tomorrow. Capital investments, workforce requirements, and the data-savviness required are tough to keep up with—especially at the scale required for the behemoth of the modern factory. Future manufacturing operations may look quite different from today's in a number of ways. This comprehensive special report explores investment and development strategies from site selection through productivity, safety, sustainability, and more.
Dive into the special report "Building the future factory"
Profiting from sustainability
There is no modern factory without considering and implementing sustainable operations. Not only can customers reject the products (or worse still, the brand as a whole) but, eventually, your business is likely to spend even more playing regulatory catch-up.
Transform your factory into a sustainable haven
Constructing smaller, eco-centric factories that integrate renewable energy, water recycling, and even biological building blocks is the way of the future. The idea is that factories of the future should positively contribute to the surrounding environment, not detract from it. Wondering how? This article outlines options for creating regenerative systems by capturing and transforming emissions, and more.
See how the sustainable factory is made
Reduce, reuse, and recycle with circular economy techniques
Products designed for short lifespans are on their way out. “Globally, customers are asking companies to help them meet their carbon neutrality goals, lower their carbon footprint, reduce waste, and be a responsible supplier,” says John Gagel, chief sustainability officer at Lexmark. “Participating in the circular economy plays a big role in these factors that are now considered table stakes.”
Find new uses for waste and by-products
For entrepreneur Shriti Pandey, the life-changing question was, “What if agricultural waste could be used as building material?” With a civil engineering degree but no industry experience, she turned crop stubble into durable, affordable panels used in construction—overcoming cultural hurdles, innovating through the pandemic, and even building a 75-bed COVID-19 hospital in just 45 days.
Follow one entrepreneur's journey into waste reduction
Address your sustainability concerns
This article addresses more than 20 common questions shaping corporate sustainability—and shows how some companies are gaining an advantage by cutting supply chain emissions, reducing waste, and boosting energy efficiency. Learn why waiting for government mandates is costly and risky, how your supply chain—from fleets to warehouses—can become greener, and why you don’t have to wait for sci-fi materials to build more sustainable products.
Discover what's next in corporate sustainability
Applying analytics and AI
Data analytics and AI are among the fastest changing and most foundational technologies disrupting the industry today. The challenge of incorporating them into manufacturing operations means that early movers still gain an advantage.
Gain a better understanding of your operations with digital twins
From the 1970 U.S. Apollo spacecraft through modern factories and even entire municipal areas, digital twins have helped pinpoint problems, sharpen operational efficiency, and conduct “what if”-scenario planning work.
See "Digital twins at work: 8 examples"
Look for early generative AI applications
GenAI is still new, but use cases are now. This article shows how manufacturers are already using it to improve operations. Early opportunities include streamlining equipment maintenance, improving production workflows, and enhancing worker training. GenAI also helps mitigate labour shortages by speeding up onboarding, upskilling junior workers, and preserving expert knowledge for the future.
See Torsten Welte's Q&A "How manufacturers can best utilise generative AI"
Accelerate product development with AI
Top innovators turn tech into business gold—and GenAI is the latest shiny tool to make that happen. But it’s not as simple as asking ChatGPT to serve up your next bestseller. Here’s how GenAI can help redesign products, spark new product ideas, kickstart your use case journey, and become your next creative collaborator.
Learn more in "How to rely on GenAI for new product ideas"
Address the contract manufacturing blind spot
Relying on contractor manufacturing without having visibility into their processes creates unnecessary risk for regulatory compliance as well as product availability. The technology to fix this blind spot is available now; cloud systems and IoT sensors allow seamless data sharing between brand owners and contract manufacturers. The real issue? Lack of trust! Bridge that gap by creating shared value and writing smarter contracts.