- Automation challenges/ Digital transformation
Scaling up from isolated, ageing or inadequate in-house technology projects to full production lines or factories requires the right mix of vision and execution. For example, one heavy equipment manufacturer has been accelerating the convergence of “man, machine, and method” by optimizing performance using sensors to track assets and connecting its machinery to the cloud to enable real-time insights on maintenance. 19 others have been transforming brownfield facilities with IoT, robotics, automation platforms, and AI-enabled tools to support production.
Manufacturing suffered a heavy blow with COVID-19 labor shortages. Even before the pandemic closed facilities, 38% of U.S. manufacturers reported labor shortages. Post-pandemic, that number is now 54%. It has never been more important to find ways to do more with fewer people.
Supply chain issues include supply risks, delivery risks, cost, quality, market risks and the potential for fraudulent activity. Shipping and logistics prices are also on the rise. Container shipping prices, the backbone for manufacturers requiring parts made in Asia, have risen by 25-50% over the past year.
Almost a third of manufacturing teams identify measures as part of their process documentation. Less than 20% of teams connect their processes' performance to the business outcomes they drive. Only a quarter of teams have developed risk mitigation or contingency plans for when things go wrong. Until process measures are more strategically determined it's difficult to control execution effectively.
Manufacturing organizations need to follow state, government, and worldwide laws and guidelines applicable to their tasks.
Client and supplier contracts, alongside legal compliance, can create a complex or even conflicting set of priorities. SOC/Risk management audit
- Backlog of orders/Order management/ Asset & resources management
The backlog for manufactured goods has risen for six straight months. Nationally, it now stands at $1.23 trillion.