The manufacturing industry has weathered its share of changes in recent years. The impact of tariffs, digital transformation, and an increased need for multi-skilled workers has caused organizations to pivot their strategies. Manufacturers are still exploring ways to capitalize on efficiencies while maintaining an innovation focus. In the meantime, the manufacturing industry has to solve ongoing issues such as waste, training costs, and assessing foreseeable risks.
Here are three issues the manufacturing industry is working to address for greater success.
Addressing Mass Personalization
Mass personalization is a concept that has been around for several years. However, scalability and success rates have hindered further progression. For this reason, mass personalization has rested on the back burner until now. Some organizations are seeing big wins by implementing new mass personalization initiatives while balancing digital technology integration. Manufacturers that are investing in mass personalization have seen 64% higher profitability 1 . However, only 25% of today’s manufacturers are taking the necessary risks to move in this direction. As a result, some organizations may fall behind to demand shifts that favor mass personalization methods.
The Charge to Reduce Waste
The impact of manufacturing is widespread. For instance, the manufacturing space covers $40 trillion of the world’s total GDP. The problem is approximately 20% of every dollar spent is waste. For instance, the recent China tariffs have forced manufacturers to make unconventional supply chain shifts 2 . The waste dilemma is also a result of product development costs (specifically for electronics), experimentation, and defects. Processes need to be in place to lessen possible risk and waste scenarios. Although waste in the manufacturing space is inevitable, leading organizations find ways to minimize it as much as possible.
Implementing Software Updates
As demand for digital integration continues to rise, manufacturers in the automobile industry are creating new standards. Frequent software updates are typical for handheld devices and computers. Now, we can add vehicles to the list 3 . In 2018 alone, nearly 8 million vehicles were affected by software defects. For this reason, routine software updates will allow consumers to get in front of potential defects. As a result, vehicle manufacturers will have quicker access to find out what defects are occurring and how to fix them.
Although all industries must navigate changing landscapes, manufacturing has a specifically challenging task. High waste factors, coupled with complicated production lines can create uncertainties. However, risks are necessary to achieve success and long-term savings. Ensure your organization is prepared to effectively meet demand and mitigate unnecessary roadblocks.
1 Is Mass Personalization the Next Big Hurdle for Manufacturers? by Jim Vinoski
2 Manufacturing Wastes 10% of the Global GDP Every Year. Here’s Why. by Anne-Katrina Shedletsky
3 Your Phone, Laptop, Get Software Updates All The Time-Next: Your Car by Jim Henry