Evolution of Manufacturing Business Model
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Evolution of Manufacturing Business Model
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𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻
■ Manufacturing is the basis for human survival and the groundwork for its progression.
■ From history, we can observe that every system goes through an evolution along with a revolution.
■ There has been much innovation in manufacturing engineering, which has caused evolution within the industry.
■ Manufacturing has been one of the global evolutions in each part of the globe.
Any evolution is only possible with the help of certain elements only and manufacturing is based upon the foundation of the 4M: Man, Machine, Method, and Material.
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𝗕𝗮𝘀𝗲𝗱 𝗼𝗻 𝘁𝗵𝗲𝘀𝗲 𝟰 𝗠 𝘄𝗲 𝗰𝗮𝗻 𝘀𝗶𝗺𝗽𝗹𝘆 𝗱𝗲𝗳𝗶𝗻𝗲 𝘁𝗵𝗲 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗮𝘀-
■ Manufacturing refers to the processing of finished products from raw materials using a specific Method, with the help of skilled Manpower, and utilizing Machine tools, according to a detailed plan in a cost-effective way.
■ Manufacturing is a system in which raw materials are transformed into finished products while adding value to the process.
■ While individuals traditionally added value to raw materials by altering their structure, refining, and processing them into more useful finished products, the 19th-century Industrial Revolution led to the mechanization of the manufacturing process.
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𝗙𝗿𝗼𝗺 𝘁𝗵𝗶𝘀 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲, 𝘄𝗲 𝗰𝗮𝗻 𝗱𝗲𝗳𝗶𝗻𝗲 𝘁𝗵𝗲 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗳𝗼𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝟱 𝘀𝘁𝗮𝗴𝗲𝘀.
■ 1 𝗖𝗿𝗮𝗳𝘁 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
This business model was simply to produce handmade products and services.
■ 2 𝗠𝗮𝗻𝘂𝗮𝗹 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
Evolution took place with the advent of simple machines which prepared the rough ground for the 1st industrial revolution.
■ 3 𝗠𝗮𝘀𝘀 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
The subsequent industrial revolution took place through Mechanization (i1.0), Electrification (i2.0), and Computerization (i3.0). The key focus point of these three industrial revolutions was solely to achieve Mass Production.
■ 4 𝗠𝗮𝘀𝘀 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻
To meet the frequently changing needs of diversified customers, Business Drivers and Technology Enablers bring the 4th Industrial Revolution with the advent of Digital Transformation. Now Business Model focus is to manufacture the products with Mass Customization.
■ 5 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
Further with the advent of 3D Printing Digital Twin, and Blockchain technology, we are moving towards a new Manufacturing Business Model (Industry 5.0), which is highly Mobile with respect to the location of Manufacturing, Flexible in process and workflow of production, and with a focus to fulfill the personalized needs of the individual customer.
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THE INDUSTRY FOUR 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗣𝗮𝗶𝗻 𝗣𝗼𝗶𝗻𝘁𝘀
■ Technology is evolving, consumer behavior is changing, expectations are getting higher, and consequently, the way that organizations are doing business is changing and manufacturing organizations are no exception.
■ After years of slow growth followed by a global pandemic that shut down entire nations, one can think that manufacturing would be on the edge of disaster.
■ The manufacturing industry is one of the largest employers in the world. It’s also undergone a period of rapid growth over the last few decades.
■ It’s an exciting industry to be a part of, but, like every other sector, manufacturing faces its fair share of challenges.
■ Manufacturers must overcome these obstacles to continue being successful with a sustained competitive advantage.
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THE INDUSTRY FOUR 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗣𝗮𝗶𝗻 𝗣𝗼𝗶𝗻𝘁𝘀
■ Understanding the main challenges in the industry is a basic part of defeating them - still, the actual success is putting all together a plan of action to focus on the industry’s top pain points.
■ The manufacturing industry, along with many others, is at a decisive point in time - while it is a great opportunity for growth, challenges lie around every corner.
■ Industry Evaluation should start with its Pain Points and Challenges. There are several factors that impact the growth of any industry.
■ But sometimes growth is not the only focus area for a particular industry. There are several other areas and factors which appear as pain points and challenges for the industry.
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We can categorize these pain points and challenges into 4 areas and each area have 3 pain points and challenges.
1• 𝗚𝗿𝗼𝘄𝘁𝗵 𝗮𝗻𝗱 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 to capture new market areas and customer segments.
■ 1.1 - Increase in production line commissioning rates
■ 1.2 - Future product mix require simple production line customization
■ 1.3 - Future massive onboarding of devices and sensors
2• 𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗥𝗶𝘀𝗸 𝗮𝗻𝗱 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 to sustain and withstand any business-impacting incidents.
■ 2.1 - Infrastructure Security, Data Integrity
■ 2.2 - Personnel safety & Human / Machine interaction
■ 2.3 - Latency disturbances from connected assets
3• 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 to bring cost and time efficiencies in day-to-day operations.
■ 3.1 - Workflow interruptions and inefficiencies
■ 3.2 - Inefficient scheduled maintenance plans
■ 3.3 - Integration of new and old processes
4• 𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 to streamline the convergence of multiple streams of emerging technologies
■ 4.1 - Aggregating data flow from multiple complex systems
■ 4.2 - Extracting data from multiple vendors/machines to one platform
■ 4.3 - No complete digital overview of internal and external processes
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𝗳𝗼𝘂𝗿𝘁𝗵 𝘁𝗼 𝗳𝗼𝗿𝘁𝗵𝗰𝗼𝗺𝗶𝗻𝗴
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A knowledge artifact by - KULDEEP KAUSHIK
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