Tag Archives: Manufacturing

The manufacturing industry is experiencing multiple challenges this year. Among the most significant hurdles it’s facing is a high turnover. Roughly 75% of the manufacturing professionals surveyed by L2L reported a lack of skilled workers in the sector over the past 12 months, fueled by poor communication and management skills. That triggers a domino effect that can impact a manufacturing company’s ability to run smoothly, meet changing consumer demands to attract and convert leads, scale operations—and, ultimately, bolster its bottom line. This makes increasing sales and revenue arguably the biggest problem the industry is tackling today.

But how do you solve it when profit is also the one thing that will help you invest in the necessary solutions? Insights from the L2L report believe the answer lies in digital transformation. With the right revenue-boosting tools, manufacturing businesses can take advantage of a few key benefits that can help increase their profit margins and face the above challenges head-on. Here’s more on the value revenue technology can bring to the manufacturing industry.

It streamlines revenue recognition

Tracking income streams can often be more challenging in manufacturing compared to other industries. Businesses in this sector usually offer a more diverse range of products and services to cater to unique client specifications. That means production cycles in manufacturing typically take longer than average. Due to these factors, juggling multiple client contracts and receiving payment at irregular intervals is typically the norm for the manufacturing business. That can complicate revenue recognition, which involves recording and reporting all income a company generates in line with industry regulations and accounting principles. Revenue technology can streamline the process, making it easier to track all sources of income, more accurately assess a business’ financial health, forecast future revenue, and budget accordingly.

That’s why you’ll see even major manufacturers like IBM using the revenue recognition software on SOFTRAX. This multi-tenant solution uses back-office automation to recognize revenue for you in compliance with ASC 606 and IFRS 15, even if you use complex billing models. That way, you can practice continuous accounting no matter how many clients you’re handling and what kind of product they’re asking for. Automated revenue recognition solutions also free up employee resources for more valuable tasks, which can help hit multiple birds with one stone—they’ll have time to strategize on how to increase revenue further, and that can challenge their skills, enhancing job satisfaction for reduced turnover.

It enhances debt recovery capabilities

Despite the value technology brings to revenue recognition, the same factors that complicate the task of tracking income can make collecting payments from clients more challenging. The lack of communication mentioned above can often extend to clients, making overdue payments one of the biggest sore points that add tension to customer-supplier relationships. That’s why business development experts from Krem Energy find that manufacturing has the second-highest rate of overdue payment rate out of any industry, with companies often waiting an average of 32.8 days for compensation. This issue can significantly impact cash flow, which is why you’ll want to have a plan in place to deal with it. That’s where revenue technology can help.

With the right platform, you can automate everything from communicating with clients about overdue payments to ultimately collecting them. Vergent’s loan management software, which is used by leading lending firms like TMX Finance, illustrates how those benefits can apply to manufacturing. Though not originally designed for this industry, it offers automated collection services to facilitate smooth debt data and money transfers for streamlined recovery processes. It also provides the ability to customize client communications, which can be especially useful for manufacturing businesses with a diverse customer base. Automated tools like this one can reduce operational costs usually spent on debt recovery for improved savings, while also helping the employees typically assigned to this task focus on more pressing responsibilities.

It improves cash flow

The above benefits mean manufacturing businesses can ultimately use revenue technology to boost cash flow. That’s important because increased profits allow companies to invest in solutions that can answer multiple industry challenges and keep operations sustainable in the long run. For example, funding employees who want to take online classes from sites like Coursera can help upskill existing workforces to make up for labor and skill shortages, while ERP management software can pay for itself by streamlining inventory and project management for improved operations. More income also means businesses can refer to consultants to determine exactly what’s causing financial inefficiencies and receive tailored help implementing changes, which is precisely what we offer here at USC Consulting Group.

One great example of this can be seen in our case study, which outlines how we helped one of our clients—whose services specialized in moving equipment—increase cash flow. Our consultants first pinpointed a disconnected floor plan as the main issue, as it caused a lot of unnecessary travel for workers retrieving materials. They then implemented ways to eliminate redundancies. A major part of the improvement project? Creating a new floor plan in line with input from experienced employees. The client benefited from a 91% to 115% jump in efficiency, all while cutting down on the necessary manpower and expenses needed to make that happen. Revenue technology helps pave the way for manufacturing businesses to gather the funds needed to avail of these customized solutions, which is arguably where they provide the most value.

*This article is written by Rose James. Rose is a freelance writer with almost a decade of experience. She writes about new developments in business and finance, as well as on new technologies like AI and automation.

Back to top ↑

Got Gen Z on the payroll? If you’re like many companies in the manufacturing sector, the answer is likely “no.” That is a talent pipeline your business is missing out on. A couple of recent studies highlight the scope of it.

Here’s a snapshot:

• By 2030, Gen Z will make up 30% of the U.S. workforce. The seasoned pros and top employees you have now will be looking at retirement if not already out on the golf course full time.
• 70% of Gen Z would NOT consider a career in mining.
• 48% of Gen Z now working in manufacturing intend to leave their jobs within the next three to six months.
• 71% of mining executives said the talent shortage is now affecting their delivery, production targets and even strategic objectives.
• 86% said it’s more difficult to recruit and retain talent.

Despite these rather bleak statistics, there’s good news out there, too. It’s possible to turn those numbers around with some savvy strategies for hiring and retention.

Gen Z: The Toolbelt Generation?

The first step in attracting the younger generation to your workforce is knowing what makes them tick. Who are these kids?

Born between 1997 and 2012, Gen Z is digitally native, meaning they have never known life without a cell phone or the internet. They are extremely socially aware and environmentally conscious.

Gen Z grew up during the pandemic. These are the students who couldn’t go to their high school proms because of Covid-19 and discovered the realm of virtual learning.

Gen Z values work-life balance more than money, and are interested in career growth. They have heard about the crushing burden of student debt all of their lives, and the good news for manufacturing, Gen Z is trending toward trade schools rather than getting an expensive four-year education.

In fact, the Wall Street Journal just ran an article titled “How Gen Z is Becoming the Toolbelt Generation.” And it’s getting a lot of buzz.

The article highlights a growing trend of young people opting for trade schools over four-year college degrees. The reasons are as pragmatic as Gen Z itself:

• Student debt. They don’t want it.
• Immediate employment. They’ve seen their older siblings struggling in a tough job market.
• Changing perceptions about “the trades.”

6 tactics to attract Gen Z

So, what are some strategies to attract this younger generation?

Emphasize work-life balance. Gen Z is all about their work-life balance. That means flexible hours, competitive compensation, great benefits, and a healthy amount of vacation time.

Highlight problem solving. Gen Z loves to problem solve and put their minds to work.

Showcase high tech. Manufacturing organizations are leaning into tech jobs, with robotics, and data analytics. Showcasing these aspects of the industry will appeal to young digital natives.

Outline a career path of growth, development, mentorship and training. The last thing Gen Z wants is a job with no future. These young people need to see how they can grow and develop within your company, that there is a path forward and training to help them get there.

Partner with trade schools… Trade schools are your pipeline for new employees, so sponsoring a job fair, speaking to classes, and otherwise developing a presence at your local trade school will put your company top of mind when these young people graduate.

…or pay for them to get the training they need. An alternative or even complimentary strategy is recruiting students right out of high school or online with the promise you’ll pay for their degree. If families are wary of student debt, this can be a powerful motivator.

Attracting and retaining Gen Z can feel like a moving target. But by focusing on what’s important to this generation, you can zero in on an enormous pool of talent that will take your company into the future.

Back to top ↑

In the dynamic realm of industrial operations, downtime is the arch-nemesis of productivity and profitability. Every minute lost to equipment breakdowns or maintenance activities translates into potential revenue losses, increased operating costs, and compromised competitiveness. Amidst this relentless pursuit of operational efficiency, the emergence of low or no maintenance industrial machinery heralds a transformative era for industries worldwide.

High maintenance equipment has long been a staple in industrial settings, requiring regular servicing, lubrication, and part replacements to ensure optimal performance. However, the inherent drawbacks of such machinery, including frequent downtime, escalating maintenance costs, and operational disruptions, have spurred a quest for alternative solutions.

Enter low or no maintenance industrial machinery—an innovation poised to revolutionize the industrial landscape. Engineered with durability, reliability, and longevity in mind, these advanced systems promise to mitigate the adverse effects of downtime and high maintenance requirements, ushering in a new era of seamless operations and cost savings.

The detrimental effects of downtime on industrial productivity cannot be overstated. Whether due to unexpected breakdowns or scheduled maintenance activities, every moment of idle machinery translates into lost production opportunities and diminished output. Moreover, the ripple effects of downtime extend beyond immediate financial implications, impacting supply chain dynamics, customer satisfaction, and overall business resilience.

In contrast, low or no maintenance components, equipment, and machinery offer a beacon of hope for industries grappling with the specter of downtime. By incorporating self-lubricating mechanisms, wear-resistant materials, and advanced monitoring technologies, these innovative solutions minimize the need for frequent maintenance interventions and extend operational uptime.

The benefits of adopting low or no maintenance industrial machinery are manifold. Beyond the immediate gains in productivity and cost savings, these systems promote a culture of efficiency, sustainability, and resilience within industrial ecosystems. By reducing reliance on traditional maintenance practices, industries can reallocate resources towards value-added endeavors, enhance worker safety, and contribute to environmental stewardship efforts.

In this infographic from FLEXIM, we delve into the profound impacts of downtime and high maintenance equipment on industrial operations, while illuminating the transformative potential of low or no maintenance machinery. Through compelling visuals and insightful analyses, we aim to empower industries with the knowledge and tools needed to navigate the evolving landscape of industrial maintenance and usher in a new era of efficiency and prosperity.

To learn more about best practices for asset management and reducing downtime, contact us to connect with our subject matter experts.

Back to top ↑

As a manager in a business-to-business manufacturing environment, your goal is to ensure the accuracy and proficiency of your systems and employees. Other organizations depend on your work, and if you fall behind, the chain reaction could be catastrophic. As a manager, you need to find the top talent that you can mold and train for long-term success, and it starts from the day you put out a job description. Here are some important guidelines to follow for finding the best employees, ensuring maximum productivity, and retaining top talent for years to come.

Finding The Best Employees

The first step to a seamless production environment is finding the right people for the job. In addition to searching for those who have experience in what you do today, it’s wise to consider how tech and systems are evolving and to hire for the skills of the future.

One key skill is data analysis. This function is essential for checking on your processes to verify they’re running efficiently and that you’re making the most of your talent. You’ll also want to search for candidates who are familiar with automation. Machines are becoming more advanced, and many can perform repetitive tasks without human involvement. Good automation could bring your factory to the next level.

While reviewing applications, search for candidates who have experience in data analysis and automation. Pay special attention to people who have worked in the B2B manufacturing space. Since information on an application is not always obvious, ask good questions during the interview so you know you’re making the right choice when you hire.

Another way to find top talent is through your job listings. Create a strong job description that tells potential candidates exactly what you’re looking for and the requirements they’ll need to succeed. If you’re having trouble finding candidates, use social media and consider paid advertising. Your best option is to ask current employees you trust to refer others so you know you’re getting the best and brightest.

Staying Productive With Training And Analytics

Once you find the best employees, you need to have a system in place that ensures they can work as efficiently as possible.

Proper Training

One of the tactics that can create a smooth operation and mitigate potential supply chain issues is to put your staff through proper training. Teach employees the ins and outs of the work they’ll be completing and allow them to provide feedback that could prove valuable. As time goes on, offer annual training to reinforce current processes and teach new strategies.

How To Use Analytics

When you get things up and running, put your accountants and data analytics professionals to work so they can verify that you’re making the most of your staff and equipment. They can also ensure that you’re using your money wisely and that you can set aside enough for future staffing and development.

When reviewing your equipment and production costs, decide whether you’ll look at actual or standard costing. Many manufacturers use standard costing, which is when you plug in predetermined costs of materials, labor, and overhead using historical data. This method is useful when costs are generally predictable.

However, if you’re adding new processes and employees, you may want to go with actual costing, where you track costs as they occur. This latter method may take longer but you’ll have more precision with your numbers to make the best decisions.

You can review these numbers on a quarterly basis to determine if there have been any major shifts by viewing them with a comprehensive dashboard. Use it to track the figures by employee, machine, waste time, and more.

While you’re running analytics and measuring productivity, you may find that you can embrace automation and replace many processes that are currently done by hand. Many data entry tasks, like inventory management and order processing, can be done through automation. If employees are spending a lot of time on menial, repetitive tasks, let the machines go to work so your staff can focus on bigger things.

Retaining Top Talent

Talent management isn’t only about finding the best people. It’s also about keeping them happy and content so you can retain their services for as long as possible. A big part of a good retention strategy is providing a career path and opportunities for development. If an employee knows that there could be a promising future at your business, they’re more likely to stay and do their best work.

Recognition and monetary perks will also keep the team excited, so implement an employee incentive program to help retain talent. Incentives can include monetary bonuses, gift cards, time off, or other benefits. When you create a program and present it to the team, ensure that you set clear criteria so employees understand what they need to do to get an incentive. When the program is active, check periodically to verify that your systems are actually tracking team progress. Your team is likely to work harder and share their successes when they know there are perks at stake.

Finally, your talent is more likely to stick around when they know they’re cared for and listened to every day. Management should reach out to their teams regularly to check in and provide guidance. You should also be willing to accept feedback via surveys and anonymous messaging and take action to correct any concerns.

Conclusion

Since B2B manufacturing is an essential part of many thriving industries, it’s vital that you have the best people on the job. Take the time to train your people, monitor your processes, and set your operation up for success.

*This article is written by Ainsley Lawrence. View more of Ainsley’s articles here.

Back to top ↑

Since the industrial revolution, every technological advancement has been viewed through the lens of its effect on jobs. Will I be obsolete? Can a machine do my job better than I can? Are the bots coming for me? If my skills are rendered obsolete, what will I do?

The plain truth is, sometimes machines can do the job better, faster or more efficiently than a human can. Think of the advent of the sewing machine. Even your grandmother’s old Singer model is a whole lot faster, more precise and efficient than she is working with a needle and thread. The art and craft of sewing isn’t lost or obsolete, but for sheer volume and exact replication, you can’t beat the machines.

What’s happening now with artificial intelligence (AI) in manufacturing is a little bit like that. People on all levels of the manufacturing chain want to know if AI is taking over.

The answer is no. Don’t think of it as a takeover. Think of it as more of a transformation. It’s already happening, and it’s not all bad.

AI’s current impact on manufacturing

Artificial intelligence is seeping into the manufacturing workplace in a couple of important ways.

Automation: Much like the sewing machine and indeed all of the industrial revolution, AI has the power to automate repetitive tasks previously done by humans. Operating machinery, tasks on the assembly line, even inspecting products for defects – all of these things are increasingly being automated.

Efficiency: AI can help us optimize processes and procedures, leading to greater efficiency on the line and as a whole.

New job creation. Yes, you read that right. Whereas AI may reduce the amount of jobs focused on repetitive tasks, it is also creating jobs that we haven’t seen before in the manufacturing realm, including specialized programmers, engineers, and technicians. It means companies will need people with different skill sets, and the savvy employers will dig in and train the people they already have to take on these new roles.

Predictive analytics

At USC Consulting Group, we’ve already been using AI with some of our manufacturing clients, specifically in the area of predictive analytics. We spell it all out in our eBook, “AI and Machine Learning: Predicting the Future Through Data Analytics,” but here is the gist of it in a nutshell.

By now, we all know what AI is — computer systems that perform intelligent tasks, like reasoning, learning, problem solving, decision making, and natural language processing, among others.

Machine learning is a subset of AI. It is, technically, a set of algorithms that can learn from data. Instead of having to be programmed, the computer learns on its own based on data.

Predictive analytics is one output of machine learning. It is the ability to forecast future outcomes based on data. It’s like having a crystal ball that’s informed by vast amounts of complex algorithms and data.

You’re already familiar with predictive analytics but may not know it. You know how Amazon suggests an item for you to buy based on past purchases, or Netflix queues up new shows based on what you’ve already watched? That’s predictive analytics in action.

Much like Netflix’s use of predictive analytics created a seismic shift in consumer expectations, this technology also has the potential to transform operating procedures and processes for many industries.

The benefits of using AI in predictive analytics are many, including:

• Greater precision and accuracy. Yes, humans do the programming. But AI can analyze mountains of data and identify complex patterns people might miss.
• AI can analyze vast amounts of data in a snap. This helps companies make decisions faster.
• Increased efficiency. All of this accuracy and speed leads to greater efficiency, output and ultimately, profits.

Bottom line: AI needs us

AI is a powerful tool we’ve used at USCCG to help our clients achieve greater efficiency, productivity, and profits.

But here’s the thing about that. It’s a tool. And it’s only as good as the data we supply. Any variation, and there can be skewed results.

As we all know, life is not a data set. Variation is happening all around us, all the time, even in projects where we need great precision.

That’s why the bots are never going to replace humans. They need us as much as we need them. At USCCG, we have more than 50 years of experience making process improvements, finding hidden opportunities for efficiency, creating leaner systems and helping companies thrive. For the next 50, AI will be one tool we use to help achieve that.

Read more about this innovative technology, including a specific case study about how AI works in practice, in our eBook, “AI and Machine Learning: Predicting the Future Through Data Analytics.”

Back to top ↑

How’s your supply chain running these days? If you’re like most manufacturers, you’re still experiencing challenges. Big challenges. The pandemic threw the worldwide supply chain into chaos and it hasn’t yet recovered, but the truth is, there have always been supply chain issues bedeviling the industry. The pandemic just exacerbated what already had the potential to go wrong and uncovered new problems lurking just below the surface.

Just-in-time strategies, which were (and continue to be) popular methods of having just the right amount of inventory on hand at any given time, left manufacturers vulnerable to supply chain disruptions. The increasing complexity of global supply chains didn’t help the situation, nor did the pervasive lack of visibility into supply chains themselves.

What are manufacturers facing this year in terms of their supply chain? Let’s take a look at these issues, and examine some ways USC can help.

Manufacturers supply chain challenges for 2024

Materials shortages. Global instability, the lingering effects of the pandemic and other factors are leading to shortages of raw materials and components. Production delays, increased costs and unhappy customers are the result. And speaking of costs…

Rising freight costs. As fuel prices ride the same roller coaster we’re all seeing at the gas pump, and labor shortages and ongoing congestion at ports collide, it means costs to get those components and materials are going up, eating into your profits. And speaking of labor shortages…

Labor shortages. This problem is ongoing, and we have to say, it’s one thing that wasn’t caused by the pandemic. Manufacturing workers are aging and retiring, and there isn’t a large pipeline of younger people with the skills to replace them. It means reduced output and productivity, dwindling motivation and drive, and the loss of institutional knowledge.

DRIP. It stands for data rich, information poor. When you’re talking about the supply chain, it means you need to use data to its fullest. Outdated inventory systems won’t cut it.

Tactics that can help

Diversifying supply chains. Having too many eggs in one basket has proven costly when that basket falls apart. Reliance on any one supplier, especially if that supplier is overseas, is becoming yesterday’s strategy that is just not working in today’s market.

Reshoring. Supply chain disruption, ongoing global instability, higher costs (including higher labor costs in China), increased lead times and more hassles are leading companies to reconsider foreign sources. Many are already doing it. Yahoo Finance reported in June 2023 that 80% of manufacturers are now considering or acting on reshoring some or all of their production. A couple of quick examples: General Motors invested $7 billion in production facilities in Michigan to not just manufacture electric vehicles but the batteries that power them. Intel invested $20 billion in a new semiconductor manufacturing plant in Ohio, and is investing $30 billion for a similar facility in Arizona. Some manufacturers are “nearshoring,” bringing production closer to home, from China to Mexico, say. Not only will this reduce lead times, improve quality control and leave companies less vulnerable to global unrest, it will also create jobs here at home.

SIOP. We laud this tactic often because it really does improve efficiency, but in the age of supply chain disruption, it’s crucial. Sales, Inventory and Operations Planning (SIOP) is a collaborative process that aligns all departments. It involves using inventory as a strategic tool, demand management and supply planning, giving you the ability to capture, analyze, integrate and interpret data to give you a strategic advantage.

Learn more about SIOP in our free eBook, Sales, Inventory and Operations Planning: It’s About Time.

Solid training. The labor shortage isn’t going away, and we’re finding that many manufacturers are investing in training, ensuring that everyone is doing the job the same way, with rock-solid operating procedures. It’s a powerful way to keep institutional knowledge within your facilities, instead of losing it when people retire.

At USC Consulting Group, we have over 55 years of experience helping manufacturers ramp up their efficiency, production and operations. It’s especially crucial to be firing on all cylinders during challenging times… and we’re in them, right now. Give us a call and let’s talk about how we can help.

Back to top ↑

With Halloween just around the corner, we started thinking about nightmares that can occur to manufacturers. Is something bedeviling your productivity leading to more tricks than treats? Is there a ghost in the machine? Here are some of the most common “monsters” that haunt manufacturing managers, and ways to banish them from your operation for good.

Things that go bump in the night (or day). Every manufacturing plant on the planet has experienced an “unexpected shutdown” that seemingly comes out of nowhere. Something broke, wore out, went awry or otherwise seized up, causing production to grind to a halt. These unexpected dark periods, whether they last an hour, a day or longer until the problem is resolved, are extremely costly in lost productivity and revenue, delays in shipments and deliveries, and more.

Banish it! Regular shutdowns for maintenance need to be an essential part of your yearly calendar. Yes, these planned maintenance periods still mean downtime, but the point is, you build them into your schedule and plan accordingly for shift scheduling, delivery and other variables.

Zombies on the line. Unmotivated teams can bedevil companies in any industry. From the Great Resignation to Quiet Quitting, employee morale has taken a tumble since the pandemic. People are just going through the motions out there. Couple that with some spooky stats: According to a Gallup survey, only 36% of U.S. employees are engaged at work and 74% say they are actively looking for new jobs. Low morale costs companies in just about every way possible — increased absenteeism, dips in quality and efficiency, and rock-bottom motivation levels among them.

Banish it! There are many spells you can cast to break that zombie curse. Invest in training and development for your employees. Hold listening sessions to get ideas for improvements on the job. Walk the floor and talk to your people regularly, something management just doesn’t do enough. Build a promotion pipeline from your front lines. All of these will help increase employee engagement and get their heads back in the game.

Process poltergeists. Are you constantly putting out fires that seem to combust without warning? Human errors, unforeseen backups, supply chain bottlenecks, inventory imbalances (too much or too little), glitches on the line. It can feel like you have a firefighting mentality, and it’s counterproductive to, well, productivity. When you’re in a constant state of troubleshooting, you’re not efficient at doing the job today or laying the groundwork for tomorrow.

Banish it! A solid Management Operating System, which is a structured approach to your operations, will help stop trouble before it starts. This allows you to make adjustments and otherwise pivot so your operations aren’t adversely impacted. The best management operating systems focus on processes, systems, roles and structures to map out how the job gets done, and by whom. To learn about MOS in more detail, watch our short (and dare we say fun) video, Stop the Firefighting Mentality.

“20% of each dollar is wasted in manufacturing due to inefficient processes each year”

Wasting disease. Waste can hide on your shop floor like a monster under the bed. It hides where you least expect it, like time, energy, employee talent, productivity and more. Here’s a figure that will keep you up at night: 20% of each dollar is wasted in manufacturing due to inefficient processes each year, adding up to $8 trillion globally.

Banish it! Waste is such an enormous problem in manufacturing, Toyota (or Henry Ford, depending on who you ask) created a process methodology about it. Lean is all about identifying and eliminating waste in manufacturing operations. The classic Seven Deadly Wastes (we think it’s eight, but let’s not split hairs) include overproduction, waiting, transporting, processing, inventory, motion and defects. (People is our eighth.) Lean is the process to minimize or eliminate those, boosting your bottom line. Read more about it by downloading our eBook, “Lean Six Sigma: Do You Really Know These Methodologies?”

The invisible man (or woman). The loss of institutional knowledge happens when your best workers vanish (retire or quit) and take all their hard-earned, on-the-job know-how with them. It’s the tips, tricks and tactics that aren’t in the employee manual. The loss of this irreplaceable knowledge is a growing issue for manufacturing, because the workforce is aging, and there is a lack of skilled younger workers to take their place.

Banish it! Capture that knowledge before your seasoned pros retire or otherwise leave the workforce. Create mentorship programs pairing older workers with younger ones, ask those older employees to participate in roundtable sessions that can focus on “what’s not in the manual” knowledge, and solicit their advice on how to do the job better.

While this is a lighthearted look at manufacturing problems, these issues are no joke. They can seriously hamper your efficiency, productivity and ultimately, your bottom line. At USC Consulting Group, we’re the experts in helping companies reach operational excellence. If you’d like to learn more, please give us a call.

Back to top ↑

Remarkable innovations emerge seemingly every day in the world of manufacturing. One area specifically experiencing significant modernizations is in automated and numerical control precision machining. There’s so much progress, in fact, the level of growth in the precision parts and production market is expected to grow at least 12% by 2024.

Below, we’ll briefly go over what precision manufacturing is and how important it has become for manufacturers across the various industries.

What is precision manufacturing? Essentially, it’s an advanced method of industrial manufacturing using processes and techniques designed to produce versatile parts with tight or rigid specifications. It could pertain to a wide range of operations for precision metal cutting and tooling, such as the utilization of metal stamping in tandem with accurate tooling by metal fabricators. The goal is to produce identical high-precision parts and components, often for assembly into a larger product.

Precision manufacturing is important for many types of production, however, this method is particularly attractive to industries with tight tolerance requirements or under strict regulations. Several of the leading industries — which are not only driving the economy, but also generating improvements for our quality of life — would be incapable of meeting rising demands without it. What’s more, manufacturing products with complex geometries and tiny components is often accomplished more cost effectively via precision manufacturing.

Another reason why precision manufacturing has become so meaningful is its ability to generate output quickly and consistently. A consistent quality is essential for countless parts, components, and products on the market. If there are flaws in the part or product’s design, it leads to wasted materials, higher costs, and increased time to market. Precision manufacturing approaches — such as CNC precision machining — avoid these shortcomings by using automation and computer programming to create products with exact specifications.

It isn’t only the manufacturers who stand to benefit from precision in automation and manufacturing, but also it’s those receiving the products. For instance, within the medical device industry, product accuracy and reliability are paramount. Whether it’s endoscopies, respirators, or PPE, these incredibly important life-saving pieces of equipment could make all the difference in a patient’s outcome or caregiver’s safety. Because of that, product precision is key.

These are only a few of the reasons why precision manufacturing is quickly becoming one of the most sought-after advancements in industrial manufacturing. For further information on the capabilities, benefits, and importance of precision in automation and manufacturing, please see the accompanying resource.

Have questions about how to improve your manufacturing operations? Contact us today.

Back to top ↑

Strikes have been in the headlines lately, with the writers’ strike bringing Hollywood to a standstill and President Biden making history as the first sitting president to ever walk a picket line (he did it in Michigan in support of the United Auto Workers strike), and most recently healthcare workers are threatening to walk out as well. The average Joe is certainly impacted by these disputes between management and workers. The writers’ strike, which was recently resolved, means no new scripted programming this fall season (say it ain’t so, Law & Order!). The auto workers’ strike means new car prices are expected to rise… as if inflation and interest rates hadn’t handled that already. And a nurses’ strike will certainly impact the care people receive.

So, it’s easy to see how everyday people are affected by strikes. How do labor strikes impact the business side of the manufacturing industry? They can wreak havoc in many facets of operations, obviously bringing production to a screeching halt during the strike itself.

But those effects, and others, can linger when employees exchange the picket line for the production line, impacting operations long after the strike is resolved. Here’s how.

Decreased output. Obviously, production is brought to a stand-still during the strike itself. So, when employees get back on the job, the entire operation is behind. It affects everything from hitting forecasted numbers to earning revenue.

Inventory snags. Other parts of the industry, like the supply chain, can be unaffected by a strike, so inventory can accumulate. Getting inventory just right is a core principle for efficiency, and it’s a delicate balancing act between too much and not enough. Strikes can throw that balance off in a big way.

Delivery delays. Product isn’t being produced during a strike, period, so obviously it’s not going to be delivered on time. But even after the strike is over, delays can continue as companies play catchup. Those delays and shortages have a ripple effect, first hitting your partners and clients, but then rippling out to their partners and clients.

Damaged relationships. Employee morale is like gold in any industry, but after a strike, especially if it’s a prolonged one, relations between employees and management can sink to an all-time low. Distrust of higher-ups can seep onto the production line, disputes may not be completely resolved to both parties’ satisfaction, collaboration can suffer. With the battle for qualified, experienced workers in manufacturing, this is a tough setback.

Bottom-line woes. All of those production delays can result in fewer orders, distrust among your clients and vendors, stock prices could even take a tumble. All of it will eat away at your profits.

How manufacturing can bounce back after strikes

When the negotiation is done and the workers are back on the job, management’s next steps can mean the difference between bouncing back quickly from a strike or feeling those nagging, lingering effects. At USC Consulting Group, we’re the experts in helping management streamline operations, become more efficient, create effective training and more — all crucial elements in the next steps after a strike.

Careful scheduling to increase production. This doesn’t mean piling on the work to make up for the shortfall. But it might mean adding additional shifts, giving people extra hours or even hiring temporary help to close that gap.

A laser focus on employee relations. Now is the time for the C-suite to get out on the production line, if they haven’t already been walking that floor. Employee relations can be at an all-time low after a strike, so it’s vital to focus on employee retention efforts, additional training and other methods to make your employees feel valued and needed.

Involve employees in the fix. Items may have been hammered out at the negotiation table, but it doesn’t mean all employees will be on board with what the union agrees to. The old adage, if it ain’t broke, don’t fix it, applies here, only in reverse. It was “broke.” Involving the people on the front lines in the “fix” in terms of streamlining operations can go a long way.

Strive for operational excellence. This means efficiency and ease all the way down the line. When your shop is running on all cylinders, it’s not just good for your company’s bottom line. Employees like their jobs better when snags, delays and other frustrations aren’t happening.

Have labor strikes affected your manufacturing operations? Need some help improving your processes to please your employees and bottom line? Contact us today and we will walk you through the steps.

Back to top ↑

Statistical process control (SPC) is a commonly used machine learning software in manufacturing that measures the consistency of a product’s performance based on its design specifications. Minimizing variability is a crucial part of avoiding defects and maintaining resilient manufacturing operations.

This guide outlines the different ways that businesses can effectively utilize SPC and reap all of the benefits this technology has to offer.

How Statistical Process Control Works

SPC is a tried and true technology that businesses have been using for more than 100 years to improve their manufacturing operations. It conducts ongoing statistical analyses, taking into account factors such as the materials, design, employees who handled the product and the machinery used to create the product.

SPC’s constant vigilance enables businesses to make swift and accurate resolutions to quality control problems. However, it’s not fully autonomous like other manufacturing software that can identify statistical correlations without human help. Instead, it relies on large amounts of training datasets that another source must manually input to achieve the desired results.

This form of machine learning is known as supervised learning. Businesses can input human-labeled datasets by themselves, or they can recruit another algorithm to automatically input statistics in a process called “machine annotation.” In either case, SPC needs to absorb as much raw data as possible to maximize its efficiency.

SPC displays its findings in easy-to-read control charts, and it’s the business’s responsibility to set the parameters for each chart by providing the software with enough information. This process includes six basic steps:

1. Define the manufacturing process you want to monitor and control by establishing the input variables, output variables, equipment, materials and any other external factors that might affect the process.
2. Collect the data that the software extrapolated from the variables you provided, then organize it into a digestible format — usually a chart or spreadsheet.
3. Select and construct the control charts based on the type of data you’re using, such as weight, length, temperature and any defects that might have occurred.
4. Look for patterns in the control charts that indicate special cause variations in performance due to underlying defects. You can calculate process variability through a capability index, such as C, Cpk, Pp and PPk.
5. Investigate the root causes of the variations and make the necessary equipment, material or operational adjustments to correct them.
6. Continue to collect and organize data to identify more variations, updating the control specifications as needed.

This process sounds awfully similar to Statistical Quality Control (SQC), but there are some key differences. Statistical Process Control measures independent variables, while SQC strictly focuses on dependent process outputs. SQC also carries out acceptance tests by screening individual product samples, while SPC relies on large datasets and doesn’t have an acceptance testing feature.

Types of SPC Tools

Many types of analysis tools have developed during SPC’s century-long evolution. These tools are split into two main categories — basic tools of quality (7-QC tools) and supplemental tools (7-SUPP tools). Here’s a quick rundown of how businesses can use the 7-QC tools:

• Stratification: separating data into subcategories by unique characteristics to clarify the origins of an existing problem.
• Histogram: A bar graph that displays the frequency of variability and the most common offenders.
• Check sheet: A document with tabular or metric format that tracks the number of special cause variations.
• Cause-and-effect diagram: A chart that shows all of the factors that lead to special cause variations and draws potential correlations between them.
• Scatter diagram: A dotted diagram that displays the overlap between dependent variables on the y-axis and independent variables on the x-axis.
• Control chart: A line-based graph that shows processes’ stability levels and pinpoints the likely variation within produced items.
• Pareto chart: This chart applies the 80/20 principle — 20% of variables cause 80% of problems — to display the most common causes of manufacturing failures.

Stratification also often appears in the 7-SUPP tools category because of its versatility and importance to statistical analysis. Breaking up large datasets into smaller digestible chunks makes SPC software more accurate at identifying problems and reducing variability. Here are the other six 7-SUPP tools:

• Flowchart: A straightforward diagram that outlines the step-by-step process of a manufacturing sequence.
• Defect mapping: A chart that shows the different types of known product flaws within a business’s manufacturing operations.
• Events logs: A variable summary showing the chain of events that resulted from an undesired occurrence.
• Progress centers: Centralized locations dedicated to tracking improvements and supporting informed decision making.
• Randomization: The deployment of random manual and automated input variables to eliminate human bias.
• Sample size determination: Choosing the number of subjects to include in a representative group when tracking manufacturing trends.

Today’s SPC software modules include all of these tools, allowing businesses to access dashboards that display the various charts and diagrams in one place. These insights can lead to identification of quantifiable improvement opportunities that maximize operational efficiency.

Benefits of Using SPC

SPC is one of the most effective machine learning resources for achieving consistent performance in manufacturing operations. Eliminating process errors allows businesses to simultaneously address the three biggest challenges in material handling — workplace hazards, equipment damage and carbon emissions — in many ways:

• Reduces manufacturing costs
• Monitors employee productivity
• Improves resource utilization
• Optimizes manual inspections
• Reduces rework and warranty claims

When these benefits combine, the final result is a more satisfied client base and a more profitable business. While SPC software can’t do all of the inspection work on its own, the tools and insights it provides are invaluable in a manufacturing environment.

Use Statistical Process Control to Its Full Potential

Business leaders who are willing to put in the necessary effort to provide SPC software with large datasets can use this technology to its full potential. They will gain access to numerous eye-opening statistics about operational inefficiencies and have all the knowledge they need to make accurate adjustments.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

Back to top ↑