It’s the buzzword of all buzzwords – digital transformation – but what are we really talking about, how do we get there, and what are the obstacles along the way?
In 2020, Deloitte conducted an extensive survey about digital transformation and found that:
“Digitally mature companies enjoy a wide range of specific benefits arising from their digital transformations that include, but go well beyond, the bottom line. Many of these benefits, such as improved product quality and customer satisfaction, contribute to better financial performance. Others, such as reducing environmental impact and increasing workforce diversity, are increasingly seen as part of companies’ broader social responsibility.”
The authors refer to the bounty of benefits that accrue from digital maturity. In its 2021 survey, Deloitte once again affirmed the fact that more digitally mature businesses outperform industry averages on a variety of financial metrics.
And we couldn’t agree more.
We see digital manufacturing as a critical capability integrating planning, scheduling, quality, cost management, asset management, material movement, and shop floor control, resulting in reduced costs, higher quality, and greater customer service.
Did You Miss the QAD Tomorrow: Digital Manufacturing Event?
In our most recent Tomorrow broadcast event, we explored the role of digital manufacturing capabilities and ways enterprises can leverage them for improved performance to become Adaptive Manufacturing Enterprises.
The Tomorrow broadcast focused specifically on;
- Digitizing Quality and Industry Compliance
- Digitizing the Shop Floor
- Automating Material Transfer
- Building a Digital Foundation
How Do Manufacturers Optimize Digital Manufacturing Efforts?
We’ve got an app for that, or more specifically, we’ve got a diagnostic tool to help manufacturers assess where they are on their journey reaping the benefits of full digital manufacturing. The Digital Manufacturing Diagnostic tool provides insights into the digital areas of focus that can have the greatest impact. It draws insights from how respondents answer questions about nine dimensions of the digital manufacturing maturity scale in the three areas of planning, execution and monitoring/adapting to events:
Planning
- Is it realistic?
- Is communication sufficient?
- Is planning aligned with execution, monitoring, and the ability to adapt to change?
Execution
- Are directions clear?
- Is data efficiently captured?
- Is full traceability available?
Monitoring and Adaptability
- What are the actual costs?
- Is the enterprise responsive?
- Are assets optimized?
An enterprise may have strengths in one area and weaknesses in another – the diagnostic report points out the areas which would yield the best results from the implementation of a digital solution.
In addition to identifying areas of strength and weakness, the diagnostic delves into the level of variability among the enterprise’s responses to the nine dimensions. The range of variation, or high performance in one area and low performance in another area, might uncover vulnerability in the business processes. The diagnostic might expose areas where best practices from a high performing area could be applied to improve a low performing area.
The diagnostic report guides respondents toward actions to improve operational metrics, for example, relating to on-time delivery made in full, maintaining appropriate inventory levels, setting workable lead times, and checking costs of quality. Similarly, it responds to business metrics including the cost of goods sold, return on working capital, cash to cash cycle times, adaptability in the supply chain, and resilience in the face of significant increase or decreases in volume.
Digitally Mature Manufacturing: Bickford’s
Bickford’s, one of Australia’s oldest and most treasured food and beverage brands, manufactures, produces, markets, and sells beverages, such as cordials, sodas and iced coffee syrups, all over the world. A digitally mature company, Bickford’s has innovated by automating its production lines, digitizing pallet-wrapping and integrating laser-guided vehicles with QAD software, instructing the vehicles where to pick up stock in the warehouse and where to put it away. Using modern techniques, the company surpasses its objectives and continues to satisfy customer expectations. Watch Bickford’s customer success video to learn more.
Take QAD’s Digital Manufacturing Diagnostic
QAD’s Digital Manufacturing Diagnostic tool consists of 12 short questions about your enterprise in the areas of planning, execution and monitoring/adapting. By completing the diagnostic, you can assess your company’s level of maturity mastering digital manufacturing. If you’d like an idea of what to expect, review this sample results report.
