S.M.A.R.T. The Oxford dictionary offers some definitions of what the adjective means. We all have grown up grooming our self to be just that. However, as the decades flew by, the meaning of the word kept evolving.
In 1981, three management gurus, George Doran, Arthur Miller, and James Cunningham, published an article that changed the simple word into an acronym. They said that our goals had to be Specific, Measurable, Assignable, Realistic, and Time-related. “Sure,” we all said. Then the wheels of time turned some more and taught organizations that the letter ‘A’ had another role — Automation. And now, we are in the era of Industrial 4.0 where SMART has become the buzzword once again. This time it has a whole new definition, especially in the context of manufacturing.
The new SMART is all about Augmentation. It coaxes you to adopt Augmented Intelligence to get to your manufacturing goals. Specifically, it is about using Artificial Intelligence (AI) technology — machine learning and integrated data analytics — not as a disruptive force but to enhance human intelligence.
Customers today demand and settle for only the best, fitting their exact specifications, and they want everything delivered as scheduled. Manufacturers are feeling the pressure to accelerate and optimize production to stand up to customer expectations. Those at the forefront of intelligent manufacturing are redefining their production processes and becoming more efficient with digitized, networked production sites. Their goals are specific and measurable ROIs, realistic and time-sensitive customer satisfaction.
Consider this recent use case scenario. Recently one of India’s largest defense aviation companies, which also works in the civil aviation space, was scheduled to supply critical component assemblies to a global aviation OEM. The complicated production process of the components required a specific raw material — Titanium plating. Besides, some parts also had to be exported for process completion. One can easily imagine the pressure! The monthly production volumes were high, and delivery timing was strict and contract-bound.
To state the business problem: Their production plan got created at the Macro level once every quarter and reviewed in detail only once a month, leaving no scope to factor in the delays that the raw material suppliers could create or the variability of lead times for the special processing of the components in foreign countries. Their detailed production plan also sorely lacked clarity of daily production issues such as resource availability, shift adjustments, or even jig breakdowns. The cumulative impact of these process anomalies resulted in delayed production and failure in adherence to delivery commitments stipulated in the contract. Not to mention the significant losses incurred due to the increased WIP inventory, poor delivery rate, penalties for non-compliance with contract terms, and decreased customer satisfaction.
Fortunately, the smart manufacturer took a timely leap, switching from traditional automation methods to an AI-enabled transparent, flexible, and efficient manufacturing ecosystem. And where there is the Bodhee Production Scheduler, there are real-time actionable solutions and direct business benefits.
The silos got broken down, and the cleaned-up master data inputs enabled integrated analytics. The app identified the gaps in raw material supply chain management. The algorithms calculated the actual lead times for process completion and recalibrated the production system. Constraints, as well as production goals, were configured for multi-objective scheduling. A detailed plan got customized considering every possible variability, from suppliers to lead times for the parts that needed special processing and resource availability, production capacity, factory holidays, staff shifts, and other shop-floor realities such as repetitive quality issues. The detailed production plans were made accessible to the production team with real-time actionable insights for timely adjustments. That ensured a significant reduction in WIP and efficient workflows, which translated as delivery targets getting achieved.
Within just 8-12 weeks, the Tier-1 aero-component supplier began enjoying reduced working capital by 8-10%, 5-7% improved capacity utilization, and 3-5% reduced batch cycle time.
So, now we know the answer to, “Who is the SMART manufacturer?”
The one who leverages data through integrated analytics to generate golden ROI is a SMART manufacturer. Also, the one whose goal is to break through the competitive manufacturing landscape and emerge as a new market leader. Savvy?
