Eric Krell says that these days, thought leaders in manufacturing are focused on strategy, supply chain, sales & marketing, regulation & risk, process improvement, product innovation, sustainability and more. In short, we’ve moved way beyond the shop floor.
‘For the most part, manufacturers know how to make things,’ notes Craig Giffi, chairman and US national industry leader for consumer and industrial products at Deloitte. ‘They can create plants that are identical anywhere in the world. That was not the case 20 years ago… It’s not about the process of manufacturing right now.’
At least not nearly as much as it once was. Instead, much of manufacturing expertise requires capabilities that extend above and beyond the factory floor.
The supply chain, regulation & risk, process improvement and sustainability all have 1 thing in common – they are business processes that need to be managed.
Let me first say that I see visibility as a part of business process management. And, now to over simplify…
The supply chain – Managing the supply chain is a process between your company [engineering, procurement & manufacturing] and your suppliers [their engineering, procurement & manufacturing].
Regulation & Risk – In both cases, you need to have a plan to manufacture your ‘widgets’ that meets regulations, you must follow that plan and you must be able to prove that you have followed that plan.
Process Improvement – Companies have many processes, let’s focus on the critical ones like the engineering change process or the ‘quote to cash’ process.
Sustainability – In my view, managing your processes effectively goes a long way to sustainability.
Companies are looking for ways to either squeeze more profit out of their existing products, or find more products to sell. This is the year. No more putting it off. It is time to address business process management.
Where are you on Manufacturing 2.0?