Despite the challenging past year, a new study indicates that digital transformation has become more of a priority for 67% of manufacturers across Europe. The research, commissioned by Panasonic and undertaken by industry experts Aberdeen, showed organisations have recognised the importance of using technology to improve time-to-market, overall equipment effectiveness (OEE) and advance innovation, and are accelerating their efforts.
The top five Pressures to Improve Operations were:
– Increasing pace of innovation / changing business models – 34%.
– Customers demand competitive differentiation with higher quality – 34%
– Need to reduce costs – 31%
– Improve ability / flexibility to respond to business demands – 30%
– Need to shift manufacturing and sourcing due to supply changes – 30%
In the study, ‘Process Optimisation in Manufacturing: The Key to Best-In-Class Success’, Aberdeen defines Best-in-Class manufacturers by their ability to develop the most complex products at the fastest rate and at a reasonable cost. They are the Top 20% of manufacturers and they are ahead of the others in their percentage of products that meet revenue targets, percentage of complete and on-time shipments and their year-on-year ability to decrease manufacturing cycle times.
The results for these top manufacturers were impressive. Aberdeen was able to quantify that Best-in-Class manufacturers:
– Generate 31% more New Product Introductions that meet production targets.
– Realise a 2.4 times greater year-on-year decrease in production downtime.
– See a 1.4 times greater year-on-year decrease in time to decision.
– Report 37% more products meeting quality targets upon design release.
– Experience a 34% increase in year-on-year Overall Equipment Effectiveness (OEE).
“As this study shows, digital transformation is just the start of the journey towards realising the smart factory,” said Edin Osmanovic, at Panasonic Business & Industry Solutions. “It is a prerequisite to enhance process optimisation that delivers increased benefits and enables businesses in the sector to become Best-In-Class. Those organisations are using technology as an enabler to innovate and to drive efficiencies to cut costs while maintaining quality.”
To download a copy of the study click here