by Kelsey H | Jun 13, 2023 | Industry News, Process Improvement
For manufacturing organizations, gathering, organizing, and analyzing all the available data about their internal processes is important for many reasons. However, elite companies that want to gain deeper knowledge and implement the most successful strategies have started to look beyond internal data.
Recent reports signal that an increasing number of companies are engaging in external data sharing. According to a recent BCG global survey, nearly 75% of manufacturing managers are considering using external data sharing to improve their operations. In this article, we’ll explain what external data sharing is, the benefits it offers to manufacturers, and some ways to incorporate data sharing into your organization’s processes while still protecting your valuable IP data.
What Is Data Sharing?
Essentially, when businesses engage in external data sharing, it means they join with companies in similar industries or markets to exchange their anonymized data in a protected ecosystem. The goal of data sharing is for each organization to identify trends that could unlock new opportunities for optimization and improvements. Research from McKinsey has shown that external data sharing has become one of the best ways for businesses to improve their existing processes, enter new markets, or develop new competitive advantages.
Though data sharing does require companies to share some of their success with potential competitors, it’s still firmly a worthwhile practice for manufacturers in terms of generating revenue and growth. According to Gartner, organizations that share data externally generate three times more measurable economic benefit than those who do not.
What Are the Risks of External Data Sharing?
While external data sharing offers many strategic benefits, it does also require a high degree of trust between organizations and an extremely secure data sharing network. For many manufacturers, this can be a major barrier to starting a data sharing program. Analysis from Gartner has shown that less than 5% of data sharing programs in 2022 could locate reputable data sources and distinguish between real and falsified data.
Given the current state of cybersecurity, manufacturers can’t afford to make themselves vulnerable to security risks. According to data from Statista, manufacturers were the target of nearly 25% of all cyberattacks worldwide in 2022, the largest share of any industry. In addition to increased exposure to a cyberattack, if businesses are unable to verify the source of data, they may waste time and resources working with fabricated information that won’t bring them true insights or value.
Even when manufacturers can confirm the data comes from trusted sources, they often face other hurdles that make external data sharing more complex in practice than in theory. For example, companies may face issues with interoperability that make it hard to translate the data between different organizations’ systems. With these challenges, manufacturers may find external data sharing difficult to execute, even if they have a strong desire to gain its benefits.
How VirtECS is Built on Secure Data Sharing
For many companies, identifying more opportunities for optimization is one of the primary forces driving their interest in external data sharing – and for good reason. A recent BCG survey revealed that data sharing can unlock billions of dollars in value through optimization alone.
APCI has been developing and perfecting methods to optimize manufacturing processes for more than three decades. We learned long ago through the course of our work that utilizing a larger volume of advanced data will better inform scheduling strategies for all of our customers. That’s why we built our planning, scheduling, and optimization tool, VirtECS, to gather secure knowledge that allows us to continually improve the VirtECS algorithm.
This algorithm drives VirtECS by following each unique plant’s exact model, constraints, and circumstances to find the most optimized schedule possible. The program draws on data from our team’s 30+ years of experience working with manufacturers, allowing us to pool knowledge from a wide range of projects and applications. As APCI has grown into new markets and taken on more projects over the years, VirtECS has continued to learn more and grow stronger for new customers and longtime clients alike. Every time VirtECS is implemented in a new setting, the tool gains access to new information and generates better scheduling recommendations that improve efficiency or create more value.
Over the years, we’ve found that data from one industry can still apply to others. We’ve applied VirtECS to several different industries and use data from each of them to make improvements to the tool, giving our clients access to insights they might not discover otherwise. VirtECS isn’t a repository for our clients’ data, but rather a source of all the lessons learned from that data gathered over many years.
If you’re interested in learning more about how VirtECS can help optimize your production schedule, download our short guide here.
by Kelsey H | May 9, 2023 | Planning & Scheduling, Process Improvement
Despite the interconnected nature of the modern business world, many manufacturing companies still treat their production sites as individual, separate entities. These facilities are often located offsite from the company’s headquarters and tend to focus on their specific production duties, rather than the business’ broader strategies. As a result, these sites can end up disconnected from each other, with each plant using its own operations procedures, software systems and tools.
While giving plants the autonomy to make their own decisions might seem like the most efficient strategy, having a different system at each site can create siloed data and a lack of coordination across the entire organization. This frequently leads to errors in data reporting, forecasting and decision-making, as well as more labor required to sort through information from each site’s software. According to research from IDC, companies lose a significant amount of revenue each year due to inefficiencies from siloed business systems.
Breaking down data silos and increasing coordination among plants can help resolve many of these pain points. By implementing one software system across all manufacturing sites, businesses can improve their efficiency and decision-making as a whole.
More Powerful Data Set
When a company’s manufacturing plants all use the same software tools, it makes it much easier to compile and analyze the data generated by these sites’ production processes. Instead of sorting through multiple sets of data organized in all different ways, business leaders can use one tool’s powerful algorithm to quickly sort and analyze all of the information available at once. With a higher volume of data to access, the tool will be able to identify more opportunities for process improvements at each site. Even if the sites work on different products or perform different functions, data related to production efficiency can still provide relevant insights that every plant can benefit from.
Sharing Data Between Sites
On a similar note, easier access to mass data can also help plants share strategies and implement successful tactics more quickly. For example, if one site finds a base schedule that optimizes their material usage or minimizes downtime, other similar sites can access the published schedule and immediately start aligning their operations. If plants use competing programs, it can be difficult to translate the data and insights between them. Collaborating and sharing information about how to be as efficient as possible will help the entire business produce a higher output and generate more profits.
Smarter Decision-Making
The benefits to more accurate and accessible data aren’t limited to the plant level. With an interconnected system of software and data, company decision makers can also make more informed investments into their manufacturing processes. For example, a company may be considering adding capacity to one of their sites to increase production of a high-demand product. If they can access a virtual model of each site within one shared tool, they’ll be able to test and compare the impact of added capacity at every plant. Alternatively, shared resources can also be helpful in more urgent situations. When one plant experiences an unexpected delay, manufacturing leaders can identify available capacity at other sites with the necessary equipment and materials on hand to complete the production run. This information will help decision makers find the best potential return on their investment or make the most strategic choice for the business.
Integration Between Programs and Plants
To generate even greater insights, manufacturing businesses should strive to select software and programs that can connect and share data to other platforms. More data – and particularly more non-siloed data – will only give the business more opportunity for optimization and efficiency. Sharing data between programs can help the sites gain a deeper analysis of plant operations, understand the relationships between manufacturing functions, and better communicate important insights between departments.
Over the past 30 years, we’ve used our planning and scheduling tool, VirtECS, to generate optimized results for some of the most complex manufacturers in the world. Many of our client relationships started with just one project at one site, but after seeing how much value VirtECS could generate, they quickly decided to implement the tool at their other plants as well. In the past, we’ve connected VirtECS to many of our clients’ other programs, such as forecasting and ERP systems, to allow for end-to-end data sharing and optimization. To learn about our journey implementing VirtECS into several sites for one of our specialty chemical clients, you can read more in our case study.
by Kelsey H | Apr 11, 2023 | Industry News, Process Improvement
In recent years, manufacturers have started prioritizing investments in automation and AI for their plants. According to data from IFS, more than 90% of all manufacturers are planning to invest in AI for their production processes. We recently took a closer look at how AI and automation are impacting the pharmaceutical industry, offering benefits like heightened monitoring and detailed data collection.
However, relying entirely on an algorithm to run your critical manufacturing processes can carry significant risks. Over the years, there have been several examples of error-prone and biased decisions coming from AI tools. As such, there are questions about the security and safety of relying on AI and automation, particularly for highly regulated manufacturing fields.
To overcome these concerns, some companies have utilized a Human-In-The-Loop (HITL) approach. HITL refers to a model that requires human interaction at some point in the tool’s process to further strengthen the machine’s results. As noted in a 2018 Stanford study, HITL models are typically more accurate than both AI and human-only models. In addition to improving accuracy in your plant, there are several other leading reasons manufacturers are incorporating HITL models into their sites.
Get Started Quickly & Accurately
AI-powered software relies on a mass amount of data to learn patterns and provide solutions. When your plant introduces a new element of production or starts manufacturing a new product, the data set may not be large enough at first to produce an accurate algorithm. Relying on automation while still in an introductory phase often leads to increased errors and delays, which can be especially troublesome when rolling out a new product to market. Using HITL instead can help the system get up and running more efficiently from the start. As a result, the AI can observe successful examples of the new production pattern and begin adapting its algorithm quickly.
Better Read on Data
While algorithms can process sets of data very efficiently, the solutions it presents are only as strong as the data itself. If much of the data is raw or unorganized, the software will still produce unoptimized results. According to IDC, 90% of all data is “dark data,” meaning it must be labeled or structured before being fed to machine learning programs. This is where human knowledge and intervention becomes invaluable. By 2027, Global Market Insights predicts the data labeling market will be worth $5.5 billion. Once data is sorted or labeled based on employees’ real-world understanding of the plant, the AI can perform a more precise analysis and produce better, more accurate work.
Solve Issues
Despite their reputation for precision, sometimes machines still fail. We’ve seen this fact evidenced in several recent examples, such as AI imaging that produces portraits of models with a few too many fingers and automated recruiting tools that developed a gender bias. In these cases, had there been a dedicated, knowledgeable employee overseeing the AI’s activities, they could have resolved the problem manually before they were put into wider practice.
Increase Safety
In highly sensitive industries, such as pharmaceutical manufacturing, it’s especially critical for products to have “human-level precision.” Though machine learning can improve tracking and monitoring efforts, most still don’t trust AI to correct or repair mistakes. When people’s health is at stake, it’s absolutely essential for each product to be completely correct and safe. Having a human in the loop to double-check and fix errors identified by automated processes is the best way for manufacturers to increase efficiency while also meeting industry safety regulations.
VirtECS, our algorithm-driven planning and scheduling optimization tool, is one example of software using a HITL approach. VirtECS has been designed to make the most of human interactions with the software. Our tool enhances classic AI in manufacturing with an underlying set of equations that describe the fundamental physics of the processes. Decision-makers can then make more efficient use of their process data and human input by using the program to determine its best possible use.
Once the algorithm has completed its analysis, users can still retain direct and precise control over the scheduled activities. When users input new constraints or manipulate the schedule, the algorithm can automatically adjust to provide a new optimized solution, even with little to no training. To learn more about how VirtECS® can support your planning, scheduling, and supply chain operations, download our short guide here.
by Kelsey H | Jan 24, 2023 | Industry News, Process Improvement
After years of record growth in the industry, pharmaceutical manufacturers still aren’t slowing down. Recently, several of the world’s largest biopharmaceutical companies announced plans to invest in the expansion of some of their current manufacturing sites. In December, Pfizer committed to investing billions into their plants in Ireland, Belgium, and Michigan to expand production capacity, cold storage, and packaging. Bayer also broke ground on a $43.6 million extension of the packaging and production areas in their Myerstown, Pa. plant last month.
For some of these projects, the companies are spending as much money to expand their existing site as they would to build an entirely new facility. If they’re making such a significant investment, why choose expansion over building a brand-new site? While it may seem like a new plant would present the most advantages, adding onto a current successful site can be just as, if not more, beneficial.
An Existing Labor Base
One advantage an existing site offers over a new build is an already-skilled workforce. Though an expansion will likely require more employees, your company’s existing presence will make it easier to hire more qualified team members. The community will already be familiar with your business, and you’ll have your experienced employees on board to quickly train the new hires. When you open a new plant, you have to hire and train a completely new workforce in an unfamiliar area – a task that can be especially challenging given the manufacturing industry’s ongoing staffing shortage.
Simple Logistics
When manufacturers decide to build a new site, oftentimes their primary goal is to create more production capacity for a particular product. However, for companies trying to expand an existing product line, it can be more efficient to add an extension to a site that already produces the line. Taking this approach simplifies several logistical factors. For one, you can build upon the equipment and processes that already exist at the site, rather than replicating them from scratch in a new facility. Additionally, other precursors needed to begin production, such as storage requirements and a supply chain for raw materials, will already be in place. Adding square footage to your already-functional facility can save your company several steps and get the added production up and running more quickly.
Future Flexibility
In addition to simplifying logistics, creating one larger production site can also allow for more flexibility with the plant’s layout and potential reconfigurations. The added square footage will give you the space needed to address other, non-capacity-related improvements. With the opportunity to rearrange equipment or implement process changes, your site can produce added output and revenue, in addition to the increased capacity. If your production is split up among several smaller individual sites, each one is more limited in the space it has to reconfigure the layout.
An Extensive Database
One of the most important benefits of expanding an existing manufacturing site is the access to years of valuable data already gathered about the plant. Through the programs the site uses for operations, you could have years or decades of information regarding the most efficient or profitable ways to run production. This knowledge will help decision-makers make the best and most strategic choices about how to expand capacity in a way that maximizes the return on the investment. The data may be helpful when building a new plant, too, but there are always slightly different variables that are hard to account for in a new, separate facility.
If you aren’t able to sort through your data to make better-informed investment decisions, you may need to utilize a capacity analysis tool like VirtECS®. VirtECS® can create a virtual model of your unique plant configuration and analyze the best way for your site to add capacity or maximize throughput. For more information about how VirtECS® harnesses data to optimize your planning capabilities, download our short guide here.
by Kelsey H | Dec 6, 2022 | Process Improvement
Many of today’s manufacturing processes have grown increasingly complex, and as such, they can quickly become unorganized and scattered. If you work at a manufacturing site, you probably already know this. Like any strategic leader, you’re hoping to regain control and discover deeper insights about how to increase efficiency and profitability. To make significant improvements to plants and processes, the key is gathering accurate and detailed data. This information is the only way to implement real, workable solutions in your site.
However, many businesses struggle to track all the data generated at each plant. According to Forbes, many engineers working in manufacturing spend 30% or more of their time looking for information they need. When current data collection processes are so time-consuming, it’s no wonder these companies avoid implementing new solutions that require increased data upkeep.
Over the years, we’ve helped many of our clients overcome these same data challenges. With a few steps, any site can overcome their data problem and start making valuable process improvements.
Create Data Collection Tools
Before you can start better tracking and reporting data, your organization needs to set up a system to start collecting and sharing information across the site. We often run into scenarios where different departments manually gather only the data that is relevant to their job function with no easy way to reference data from other teams at the plant. Any data that may have been helpful for other departments is typically discarded. This lack of coordinated data collection results in data silos, which make it more difficult for the plant to respond to change, and decision-makers are left referencing inaccurate information.
As a first step, your teams need to communicate about which data from other departments would be beneficial for them to reference. Once those details are established, your site needs to implement a digital tool that gathers, stores, and shares data across departments. We often find that a digital tool that updates in real time is the most convenient and easy-to-implement solution for many organizations. Making data accessible throughout the site will cut down on any repeat data collection, which lowers to overall workload. It also prevents data silos from reappearing, giving teams at all levels a clear and accurate view of plant processes (as well as their inefficiencies).
Automate Your Data Collection
To further simplify your data collection process, be sure to connect your various supply chain systems whenever possible. If these external systems can share data, you’ll limit the time needed to update each individual platform with new information. Your team will spend less time colleting the data and instead dedicate more time analyzing it for improvements.
Additionally, the real-time data updates will help each of your supply chain tools unlock deeper, more powerful insights. When each system is working from the most current data, you can quickly and accurately analyze of the schedule for opportunities to take on new orders or products without disrupting other deadlines. These added capabilities can ultimately increase efficiency and profitability across production.
Ask for Help from the Experts
If the data collection process still seems overwhelming, it may be worth asking your software providers for help. These providers will know all the secret tricks and tips to their tool and may be able to provide advice. Perhaps there are configurations that you haven’t discovered yet that may be helpful, or there may be a feature they can add that will save you time. These expert tips may allow you to minimize the data input required to make the tool functional.
In the past, we’ve worked with our clients to create simpler data collection processes within our virtual modeling, planning and scheduling tool, VirtECS®. For example, for one of our specialty chemical manufacturing clients, we created templates within the software, which allowed them to duplicate fields as needed and quickly set up new products. We’ve also connected VirtECS® with our clients’ other tools, such as forecasting or ERP systems, to limit the need for data updates. If you’re interested in learning more about how VirtECS® helped one client gain control of their data, you can continue reading our internal case study here.
by Kelsey H | Sep 20, 2022 | Process Improvement
Sophisticated manufacturing facilities naturally require sophisticated software tools to optimize their supply chain operations. These tools typically include a wide range of features that help provide a deeper understanding of operational capabilities. Those insights may be incredibly valuable, but generating them comes with its own learning curve.
Once users are familiar with the software’s capabilities, it can save considerable time and effort. However, each user will need guidance to learn the needed functions and nuances. The more training your employees receive, the more value the software will bring to your organization.
When selecting a software partner and building your training guidelines, there are some key strategies that will help you get more value from the tool faster. Keep reading to find out how beneficial training can be when learning a new supply chain software.
Provide Background Information
At most facilities, your employees will be the people using the new manufacturing software most frequently. If they’re going to adopt the tool into their daily work and use it effectively, they will need to first buy into the benefits the software provides. Some users may be hesitant to accept the change, especially if previous processes were not unpopular. Before you dive into training employees on the many technical aspects, it’s important to start by explaining exactly how the software will improve operations, relieve pain points, and make employees’ day-to-day lives easier. With that kind of motivation, your team will feel much more inspired to learn as much about the tool as they can.
Take a Top-Down Approach
With everyone on the team on board, it’s time for your superusers leaders to spend time mastering features of the new software. Taking a superuser-first approach to training ensures that broader user training is informed by your organization’s needs and insights from the superusers. Additionally, if your superusers are skilled at teaching, they can also play an important role in training the rest of the team. Given that they already learned the software first, they may be able to provide helpful advice to new users or act as a consultant as more people begin working with the tool.
Give It Time
The sophisticated nature of manufacturing processes requires sophisticated tools that take time to master. If you tell each of your employees to simply finish learning new software as they have time, they may never have enough room in their work schedule to learn the tool’s full functionality. Therefore, it’s up to your plant’s leaders to encourage and facilitate training by building time into employees’ workdays to complete training. If the software improves operational efficiency, you’ll quickly recoup the time spent training and begin reaping the many benefits that made the tool attractive in the first place.
Use Interactive Formats
Think back to your school days. In your experience, was it easier to learn something new by reading facts out of a book, or by viewing examples and practicing the new skills yourself? For most people, it’s much easier to learn when provided with a more interactive format.
For manufacturing tools, this might mean asking your software partner to train a few “power users” in person, and then asking your new experts to guide other users as they begin the training process. You might also find it beneficial to compile a resource that allows employees to share tips or shortcuts amongst each other to help the collective group learn how to use the software most efficiently. Additionally, consider asking your software partner if they can provide engaging training guidelines of their own for you to pass on to your organization’s users.
Though the basic functions of VirtECS can be learned quickly, plants that wish to harness the full value and power of the tool will find the support from our dedicated experts especially helpful. We will work with your team to develop in-depth training materials and share best practices based on our extensive experience. Additionally, we are always working to update our resources for all current and future partners to help them gain the most advanced insights into their own facilities. For more information on how VirtECS® can remove bottlenecks and create optimized schedules for your plant, send us a message and one of our experts will reach out to you shortly.
