Manufacturing is the process of producing goods to sell to customers. It was mainly a manual industry. Using computer systems led to more time reviewing, analyzing, and entering data. The operations and processes were managed primarily in spreadsheets, with minimal analysis and planning capabilities. Today, the manufacturing of individual products and components is drastically changing. Some of the largest global industrial product companies are increasing their digital technology investments.
The use of digital technologies assists manufacturers in increasing operational efficiency and streamlining many business processes, including supply chain management and product development. Hence, the impact of digitalization on digital manufacturing companies is enormous, and the transformation is necessary to meet evolving customer needs and fierce competition. Also, manufacturing companies can utilize hr on-demand services to hire experienced employees in the technology field, thereby improving the effectiveness of the manufacturing sector.
Introduction to Digital Manufacturing
Digital manufacturing means utilizing digital technologies commonly used today, such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and automation, to optimize manufacturing processes, improve supply chain management, and enhance customer engagement. Digital manufacturing can also be called Industry 4.0 or smart factory. Digital Manufacturing is the “Fourth Revolution,” changing the whole manufacturing concept in the traditional sense.
The benefits of digital manufacturing are numerous, like improving efficiency and reducing waste can help digital manufacturing companies save money and increase profitability. Additionally, digital manufacturing can help companies become more agile and responsive to changing market conditions.
According to the report of Mckinsey, because of successful digital transformations in many manufacturing sectors, it is common to see 10%-30% increases in throughput, a 15%-30% improvement in labor productivity, a 30-50% reduction in machine downtimes, and an 85% increase in more accurate forecasting. So, at last, every manufacturing hub is different and could require different technologies to take that digital leap depending on the operational business model and overall goals.
Need for Digital Manufacturing
According to a Gartner survey, 83% of manufacturing leaders understand and acknowledge the need to invest in intelligent manufacturing. Tremendous benefits to organizations undertaking digital transformation include
- Less time to launch a product.
- Reduced costs.
- Strengthening supply chains.
- Improved customer experiences.
Integrating intelligent machines and automation software in manufacturing can provide helpful insights into production processes. Employees can remotely monitor and control all equipment connected to the internet. Manufacturers can use digital manufacturing processes to swiftly adapt production and meet the evolving needs of their customers. It also helps maintain efficient energy usage levels and minimizes material waste. Also, the digital inventory management system keeps stock updated in real-time, reducing costs for holding or dead inventory.
The manufacturing industry can address job openings by utilizing digital manufacturing. The companies can hire hr on demand services to hire or retain employees who can use the technology to improve manufacturing processes and increase efficiency. Also, COVID-19 has demonstrated the importance of embracing digital technologies in manufacturing. In summary, digital transformation in manufacturing is a blessing.
Examples of best digital technologies
Significantly, customer expectations and increased competition are the main drivers of digital transformation in manufacturing. By leveraging digital technologies, manufacturers can improve speed and efficiency, increase production, decrease costs, and provide a better customer experience. Some of the significant digital technologies needed to run a digital manufacturing business in the fourth industrial revolution include Smart Factories, Robots, Predictive Maintenance, Big Data and Analytics, 3D Printing, Digital Twins, Artificial Intelligence, Internet Of Things(IoT), Cloud-based ERP and other manufacturing software, Augmented and virtual reality, etc. Most manufacturing industries rely on big data, analytics, and digital technology. Therefore, manufacturers must combine these tools to get the best results.