Manufacturing Global – January 2020

Page 1

Utilising artificial intelligence to advance operations manufacturingglobal.com

J A NU A R Y 2 0 2 0

New methods for customer engagement

TRANSFORMING THE WAY HARDWARE TEAMS DESIGN

PIONEERING SUSTAINABLE PACKAGING How the Finnish specialist is delivering sustainable solutions to increase revenue and protect the environment

Manufacturing Trends for 2020



FOREWORD

W

elcome to the January issue of

process beyond the company walls,”

Manufacturing Global magazine.

explains Mike Geyer, Head of Busi-

Our cover star this month is developing sustainable packaging

ness Development at Fictiv. Elsewhere in the issue, Euler Hermes

solutions capable of increasing

(backed by Allianz) predicts trade

revenue without impacting the envi-

and credit risk to give companies

ronment. Huhtamaki’s Chi Lu, Head

confidence in tomorrow. Its manu-

of Sourcing, Food Services in Asia

facturing specialist and Assistant

and Oceania, insists: “In terms of

Head of Risk Underwriting examines

changing from plastic to a more

the last 12 months and charts the

sustainable alternative, there is no

risks for manufacturing in his out-

challenge – it simply must be done.”

look for 2020.

Pushing the boundaries for Industry

If you wish to share your story,

4.0, we learn how Fictiv is democra-

or discuss key industry trends in

tising access to manufacturing,

more detail, please get in touch at:

and transforming the way hardware

daniel.brightmore@bizclikmedia.com

teams design, develop and deliver physical products, with a virtual distributed manufacturing platform. “Companies that had traditionally run their own factories or work-

Enjoy the issue. Daniel Brightmore Editor

shops, even for prototyping, are now looking at how they can reduce those capital costs and move that w w w.ma nufa c t uri nggl o b a l. com

03


Are you providing your customers a truly exceptional digital experience? Top B2B challenges

Losing revenue from bad search

A set of unconnected experiences

Limited personalization

Start improving your digital experience quickly with Bloomreach Experience (brX). brX is the API-first, headless experience cloud that allows you to build unique experiences fast and grow your revenue. Intelligent Merchandising Tools Open Headless CMS AI Powered Search

Benefits of Bloomreach Experience (brX) Quickly build engaging, personalized digital experiences across any digital channel. Utilize data & AI to drive highly relevant product search results.

UP TO 25%

UP TO 5%

UP TO 50%

Increase in Add to Cart Rate

Increase in revenue per visitor

Time savings from workflow efficiencies

AI shows most relevant items & boosts conversion

Customized results based on user behaviour and trends

Enable both Marketers & Developers to build content

Trusted by Leading B2B Companies www.bloomreach.com


Click the home icon (top right of page) to return to contents page at anytime EDITOR IN CHIEF

DANIEL BRIGHTMORE MANAGING EDITOR

MATTHEW HIGH CREATIVE DIRECTORS

DANIEL CRAWFORD STEVE SHIPLEY

WHEN YOU SEE THE PLAY BUTTON ICON, CLICK TO WATCH OUR VIDEO CONTENT

CREATIVE TEAM

OSCAR HATHAWAY ERIN HANCOX SOPHIA FORTE SOPHIE-ANN PINNELL PRODUCTION DIRECTOR

DANIELA KIANICKOVÁ PRODUCTION MANAGER

OWEN MARTIN

Wherever you see these icons in the magazine click to be directly connected via social media

DIGITAL VIDEO DIRECTOR

JOSHUA S.PECK DIGITAL VIDEO PRODUCER

EMILY McNAMARA KIERAN WAITE

05

SOCIAL MEDIA PRODUCERS

JACK GRIMSHAW DANIEL WEATHERLEY EVELYN HOWAT KAYLEIGH SHOOTER PROJECT DIRECTORS

MANUEL NAVARRO STUART IRVING CHARLOTTE CLARKE JUSTIN BRAND RICHARD DEANE TOM VENTURO

CLICK NOW TO SUBSCRIBE FOR FREE

DIGITAL MEDIA DIRECTORS

ARRON RAMPLING JASON WESTGATE OPERATIONS DIRECTOR

ALEX BARRON GROUP MANAGING DIRECTOR

JAMES PEPPER CHIEF OPERATIONS OFFICER

ANDY TURNER PRESIDENT & CEO

GLEN WHITE PUBLISHED BY

Visit the ManufacturingGlobal.com website and sign up to receive exclusive access to one of the world’s fastest growing business news platforms.


CONTENTS

12

24


36

62 MANUFACTURING TRENDS FOR 2020

78 46

Events & Associations


sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability. For more information, please visit: www.honeywellprocess.com/iiot


CONTENTS

82 T2 Tea

96 LOTTE Wedel

112 SAS Automotive Systems

xx




12

Packaging solutions to solve sustainability WRITTEN BY

OLLIE MULKERRINS PRODUCED BY

CAROLINE WHITELEY

JANUARY 2020


13

w w w.ma nufa c t uri nggl o b a l. com


H U H TA M A K I H O N G K O N G

14

Huhtamaki works with clients to find the most practical sustainable solutions to increase revenue without impacting the environment

H

uhtamaki is a global specialist in the food and drink packaging industry. The company

operates across 35 countries including Europe, Asia, Oceania (EAO) and the US, working across three verticals; flexible packaging, moulded fibre packaging and foodservice packaging. Through these key verticals, Huhtamaki holds sustainability at its core and ensures that it offers an increasingly diverse portfolio of sustainable products and practices to satisfy the rising demand for CSR coming from a more

JANUARY 2020


15

conscious consumer base. Chi Lu, Head of Sourcing –

to a functional sourcing organisation working within the Foodservice EAO

Foodservice Asia-Oceania at

segment,” explains Chi. “For sourc-

Huhtamaki, outlines the challenges of

ing, I’m part of a group function. Our

maintaining a network of sustainable

team supports manufacturing units in

products across distant locations and

India, New Zealand, Australia, China

evolving cultural shifts. Chi is respon-

and Malaysia, totalling seven factories

sible for the governance of sourcing

and four sales offices operating in the

operations in the Asia Oceania region

Asian Oceania region.”

within the Foodservice segment and

The complexities of finding sustain-

is accountable for managing five

able materials produced by sustainable

direct reports for the traded goods.

manufacturers, who take social respon-

He coordinates projects between

sibility seriously, provides its own

the group and local units. “I belong

challenges. To eliminate the ambiguity w w w.ma nufa c t uri nggl o b a l. com


H U H TA M A K I H O N G K O N G

“In terms of changing from plastic to a more sustainable alternative, there is no challenge – it simply must be done” 16

— Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki

of operating in smaller departments across a diverse range of countries and cultures, Chi has turned to creating a sourcing hub for traded goods in the Asia Oceania region, where suppliers and materials can be vetted through a single aligned process and set of regulations. To maintain consistency across all of its sourcing methods, Huhtamaki Foodservice EAO has chosen to apply a single centralised sourcing model within its group level. “In the group sourcing organisation, we have a sourcing director who is based in Europe for all the sourcing functions operating with our category buyers,”

JANUARY 2020


CLICK TO WATCH : ‘PLEASE MEET HUHTAMAKI’ 17 says Chi. “The group function will cen-

practicality of what a material can do

trally source key raw materials, paper,

when trying to replicate the versatility

polymer, resin, ink and logistics for the

and robust nature of plastics. Some

segment manufacturing units. My team

materials may require additional chemi-

looks after third party traded goods

cal additives to achieve a level of quality

and we are based in Asia.”

in line with what a consumer may be

When looking to find alternative

used to from traditional materials.

materials, a number of factors must be

“There are instances where a client

considered beyond the tangible assets

may be used to plastics, yet when turn-

being offered by a prospective sup-

ing to sustainable materials, has very

plier. Maintaining sustainability can be

high standards. Not every supplier will

easy to overlook with the production

pass those strict requirements,” affirms

methods or workforce conditions used

Chi. Another challenge to replacing

to manufacture any given material. As

traditional material like plastic is main-

a juxtaposition to this there is also the

taining its long-term sustainability. An w w w.ma nufa c t uri nggl o b a l. com


H U H TA M A K I H O N G K O N G

18

1920

Year founded

example “typical alternative to plastic utensils is wooden cutlery made from birchwood. Birch tree usually takes about 20 years to mature. In the US

€3.1bn+

alone, there are about 40bn plastic utensils used each year. If you intend to

Total Revenue

replace all 40bn units annually, the end

3,200

considered as a whole. With this in mind,

Number of employees

product wouldn’t be sustainable when we ensure our suppliers source their raw material from a sustainable source.” Huhtamaki is also a creator of sustainable materials. It’s Fresh initiative created a meal tray from natural wood

JANUARY 2020


E XE CU T I VE PRO FI LE

Chi Lu Chi Lu is an experienced senior strategic sourcing professional with industry experience spanning close to 20 years. He has worked for multinational corporations in Australia, New Zealand and Asia. His work portfolio is extensive, including logistics, medical consumables, dairy, building products/construction, and food packaging. Chi is recognised for his proven track record of improving profitability by delivering sustainable cost saving and being a driving force behind transforming from a transactional price based approach to a strategic focus value proposition model. He has influenced business decision making processes, challenged the status quo, and contributed to the growth of businesses. He has participated in organisational transformations and commercial optimisation projects which have contributed to the growth of businesses considerably. In his current portfolio he is part of a regional leadership team and is currently managing sourcing and sales operations. Prior to this, he served in various sourcing and commercial positions. He has a Bachelor’s Degree in Management Studies with a double major in Finance and Strategic Management and a Master’s Degree in International Business and Law from the University of Sydney. w w w.ma nufa c t uri nggl o b a l. com

19


Quality assurance PPD focuses mainly on thermoformed plastics in food packaging industry. Using high-speed in-line automatic forming machines along with in-house tooling and design team, plus in-depth industry knowledge and expertise in production, we will ensure high quality products to our customers. Learn More


“Our team supports manufacturing units in India, New Zealand, Australia, China and Malaysia, totalling seven factories and four sales offices operating in the AO region.” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki fibres, sourced from FSC certified

a natural alternative to provide one

renewable Nordic forests, in collabora-

solution with the resilience of plastic

tion with Saladworks and Södra. The

packaging. Bagasse is the dry pulpy

material can match the versatility of

fibrous residue that remains after sug-

black plastic but is still recyclable

arcane or sorghum stalks are crushed

and certified for home composting.

to extract their juice. This material can

“Huhtamaki Fresh has ensured

then be processed to create a biode-

the removal of 56 tonnes of hard to recycle black plastic from Waitrose

gradable plastic alternative. The perception of sustainable products can sometimes

& Partners supply chain,

be different from the

per year. The fibre-based

reality. Consumers

packaging is also 10%

may expect sustainable

lighter than conventional

materials to behave

trays and creates a 50%

a certain way on first

reduction in CO2 Emissions,”

impressions without

comments Tor Harris, Head

knowing the details behind

of CSR at Waitrose & Partners.

it. For example, there are

Chi has also turned to Bagasse,

instances of materials that w w w.ma nufa c t uri nggl o b a l. com

21


H U H TA M A K I H O N G K O N G

22

“We ran trials, product samples and negotiated the commercial terms” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki

JANUARY 2020

may be listed as biodegradable but require certain conditions to act as a catalyst in order to achieve that degradation, such as PLA. “PLA is made from starch and other compound which may be able to decompose into a carbon in a controlled environment; that is industrial composting facilities,” says Chi. “However, there are places that don’t have the industrial composting facilities needed to start this decomposition. Putting it into a landfill is not enough.”


to work with customers to find which materials would best accommodate the customer’s requirements, ensuring a satisfactory outcome for the business and the environment. Chi explains one example where Huhtamaki Foodservice EAO worked with its client to reach a sustainable and economically viable solution. “Our customer’s goal was to find an alternative to plastics by 2020. We were able to work with our customer, understand their requirements, and from there we ran supplier selection, trials, product samples and negotiated the commercial terms. The sourcing and product development process ran within our customer’s specific time line and, by the end, we were able to remove Huhtamaki is also educating customers around achieving sustainability

plastics in that supply chain.” The demand for sustainability is ris-

whilst maintaining high standards for

ing as consumers are unable to ignore

product packaging. The Packaging

the realities of a future reliant on sin-

for Good programme focuses on

gle use products manufactured from

four key themes – people, packaging,

pollutive materials.

supply chain and operations – to offer

“Sustainability is on top of the agenda

Huhtamaki’s expertise and guidance

for Huhtamaki,” summarises Chi. “In

for a company’s CSR goals and within

terms of changing from unsustainable to

Huhtamaki itself.

more sustainable alternatives, there is

By educating consumers on the reali-

no challenge – it simply must be done.”

ties of sustainable materials, Huhtamaki Foodservice EAO segment is able w w w.ma nufa c t uri nggl o b a l. com

23


LEADERSHIP

GLOBAL CONDITIONS TO REMAIN CHALLENGING FOR MANUFACTURERS IN 2020

24

Shannon Murphy, Assistant Head of Risk Underwriting and manufacturing specialist at Euler Hermes, examines the last 12 months and explains where the risks lie for the sector in the year ahead WRITTEN BY

JANUARY 2020

SHANNON MURPHY


25

w w w.ma nufa c t uri nggl o b a l. com


LEADERSHIP

M

anufacturers around the world have had a challenging year in 2019. The impact of the ongoing trade dispute between

the US and China and uncertainty surrounding the UK’s withdrawal from the EU have both contributed to the slowing of the global economy, which will have given the sector’s leaders many sleepless nights this year. For the UK it has been particularly volatile, with global headwinds compounding the Brexit-related issues the sector faces. Input cost rises, uncertainty

26

around tariffs after its withdrawal from the EU and unprecedented levels of stockpiling, along with a fall in investment levels in both technology and talent, have stagnated growth and resulted in a sharp rise in business failures. The number of manufacturing businesses entering insolvency has reached its highest level in five years in 2019, rising 7% year-on-year.

UNDERSTANDING THE YEAR AHEAD Manufacturers will be hoping for a turnaround in fortunes in 2020. With the likelihood of Brexit coming to fruition and the prospect of an end in sight for the political deadlock, the outlook is somewhat brighter for UK manufacturers. But uncertainty is likely to persist throughout any transition period for as long as the threat of a no-deal withdrawal remains on the table. JANUARY 2020


27

“ THE IMF FORECASTS 3.4% GROWTH FOR THE MANUFACTURING SECTOR IN 2020, UP SLIGHTLY ON THIS YEAR’S PROJECTION OF 3%, WHICH WAS THE LOWEST LEVEL SINCE 2009” Shannon Murphy, Assistant Head of Risk Underwriting, Euler Hermes

w w w.ma nufa c t uri nggl o b a l. com


LEADERSHIP

CLICK TO WATCH : ‘MARCEGAGLIA’S 10 YEAR RELATIONSHIP WITH EULER HERMES’

28

It’s unlikely there will be a marked im-

owing largely to the ongoing effects

provement globally. World trade growth

and uncertainty created by protectionist

will continue to move along at a glacial

measures. While the phase one trade

pace, increasing by 1.7%, but GDP

deal with China will provide a welcome

growth will decelerate to 2.4%, down

respite, as the country’s election ap-

slightly from 2.5% this year. Insolvencies,

proaches, the situation is unlikely to

on the other hand, will slow slightly,

improve, with many of the leading candi-

to 5% growth, but remain at an uncom-

dates either cool on free trade or with

fortably high level. The IMF forecasts

protectionist leanings. This will do little

3.4% growth for the manufacturing sec-

to fill exporters with confidence.

tor in 2020, up slightly on this year’s

The economic outlook is even bleaker

projection of 3%, which was the lowest

across the Eurozone, where growth is

level since 2009.

forecast at 1% in 2020. Of the UK’s big-

In the US, GDP growth will dip to 1.6% next year from 2.4% in 2019, JANUARY 2020

gest export partners, Germany is likely to fall into recession during the year –


with its manufacturing sector already there – and witness net growth of just 0.6% by the end of 2020. France and Italy, on the other hand, will record growth rates of just 1.2% and 0.4% respectively. Our global insolvency index is forecasted to increase by 8% both in 2019 and 2020, with a still noticeable 1% increase in Asia and a 3% rebound in Western Europe.

“ AI AND ROBOTICS WILL ENABLE FIRMS TO CONTINUE TO UPSKILL STAFF AND DRIVE EFFICIENCIES, HELPING TO IMPROVE PROFITABILITY” Shannon Murphy, Assistant Head of Risk Underwriting, Euler Hermes

ABO U T U S

We predict trade and credit risk today, so companies can have confidence in tomorrow. Euler Hermes is the global leader in trade credit insurance and a recognised specialist in the areas of surety, collections, structured trade credit and political risk. Our proprietary intelligence network analyses daily changes in corporate solvency representing 92% of global GDP. We give companies the confidence to trade, and be paid. We compensate your company in the event of a bad debt, but more importantly,

we help you avoid bad debt in the first place. Whenever we provide trade credit insurance or other finance solutions, our priority is predictive protection. But, when the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business. Headquartered in Paris, Euler Hermes is present in 52 countries with 6,050 employees. In 2017, our consolidated turnover was €2.6bn and insured global business transactions represented €894bn in exposure.

w w w.ma nufa c t uri nggl o b a l. com

29


LEADERSHIP

LOOKING FORWARD

China-US trade war casts a shadow over 2020

30

“Our proprietary Trade Momentum Index shows that the worst is behind us: it has stopped deteriorating, while still remaining negative. In 2020, we hence expect trade to remain in a low-growth regime, slightly accelerating to +1.7%, while the global economy continues to decelerate (+2.4% after +2.5% in 2019),” says Ludovic Subran, Group Chief Economist at Allianz and Euler Hermes. “The so-called ‘phase 1’ deal between the US and China, despite being superficial, may bring some comfort. But renewed threats of tariffs and a busy political year (global summits, US elections) in 2020 should bring higher volatility, leaving no hope for sizeable improvement going forward.” Euler Hermes notes the strongest export gains will

JANUARY 2020

be recorded in China ($90bn) and the US ($87bn). However, their trade feud has taken a toll: export gains for both countries will be roughly half of what they were in 2018. Rising protectionism in the form of US tariffs on cars could target Germany and the UK next. As for electronics ($47bn), metals ($42bn) and machinery & equipment ($27bn) will continue to ail in 2020. In contrast, software and IT services (USD62bn), agrifood ($41bn) and chemicals ($37bn) will see moderate export gains. sectors, electronics ($47bn), metals ($42bn) and machinery & equipment ($27bn) will continue to ail in 2020. In contrast, software and IT services (USD62bn), agrifood ($41bn) and chemicals ($37bn) will see moderate export gains.


31

w w w.ma nufa c t uri nggl o b a l. com


LEADERSHIP

“ PARTNERING WITH A TRADE CREDIT INSURER CAN PROVIDE FIRMS WITH INSIGHT AND KNOWLEDGE ON BOTH MARKETS AND TRADING PARTNERS THAT OTHERWISE MIGHT HAVE BEEN OUT OF REACH” Shannon Murphy, Assistant Head of Risk Underwriting, Euler Hermes

an economic downturn have been to blame. But, in Western economies the emergence of technologies that

Some areas of opportunity still exist, however. Resilient domestic demand

and rentals easier are all contributing

and rising wages will provide a boon

to the long-term decline of mass

to manufacturers in Eastern European

car ownership.

countries such as Hungary and Poland, 32

have made ride-hailing, car shares

2019 proved a worrying year for pro-

while emerging markets in the Middle

duction for UK carmakers too, with just

East will likely witness healthy growth

one rise in the monthly output recorded.

levels as oil prices stabilise.

Even that brief blip provided little comfort to manufacturers, however, with its

EMERGENCY HANDBRAKE FOR THE AUTOMOTIVE INDUSTRY

root cause attributed to Brexit-driven

These global economic and trade

sector though and we’ve seen two large

slowdowns will affect most sectors,

UK-based steel stockholders fail this

but none more-so than the automotive

year and also the insolvency of British

industry, which will bear the brunt of

Steel. There are several reasons why

many of manufacturing’s ills. Car sales

British Steel failed, but a primary one

are in decline globally and have been

cited was that the customer base

steadily falling since 2017. There’s

had lost confidence in the long-

a host of reasons for this.

term ability to be a supplier due

In China, a combination of an oversat-

stockpiling. It’s not the only vulnerable

to the uncertainty surrounding

urated market, declining consumer

the country’s future trading rela-

demand, trade disputes with the US and

tionship with its key export partners.

JANUARY 2020


THE ROAD AHEAD

NAVIGATING CHOPPY WATERS

Despite the challenging outlook, we’re

With financial risk set to remain high

seeing businesses across the sector

for manufacturers across the global

developing strategies to cope with

economy, particularly in the UK, it’s

the issues facing them and remain

essential that measures are in place to

competitive. One of these includes

deal with any potential risks. Partnering

investing in technology. AI and

with a trade credit insurer can provide

robotics, for example, will enable firms

firms with insight and knowledge on

to continue to upskill staff and drive

both markets and trading partners that

efficiencies, helping to improve

otherwise might have been out of reach,

profitability. Their use in the production

while their products protect against

processes will also play a vital role

the potential impacts of both late

in creating a more environmentally

and non-payments.

friendly sector.

Closely tracking customers and the wider supply chain for signs of financial distress, such as a slowdown in payment terms or a sudden stream of credit checks, will also prove key. As manufacturers welcome in 2020 it’s vital they do all they can to strengthen against headwinds facing them that will enable them to look forward at the strategic investments in technology, talent and training that will drive growth in the future.

w w w.ma nufa c t uri nggl o b a l. com

33


COVERING EVERY ANGLE IN T HE D I G I TA L A G E The Business Chief platforms offer insight on the trends inf luencing C and V-level executives, telling the stories that matter

CLICK TO SUBSCRIBE FOR FREE

H O M E T O I N D U S T R Y- L E A D I N G D I G I TA L B U S I N E S S P L AT F O R M S


w w w.businesschief.com

H AV E Y O U S E E N O U R O T H E R T I T L E S ?


TECHNOLOGY

36

SECURING THE FUTURE OF THE MANUFACTURING INDUSTRY Manufacturing Global hears from Censornet CEO Ed Macnair, who reasons that while digital might hold the key to the future for manufacturing in the UK, the cybersecurity risks it brings must be addressed. WRITTEN BY

JANUARY 2020

ED M ACNAIR


37

w w w.ma nufa c t uri nggl o b a l. com


TECHNOLOGY

F

aced with an uncertain future, British manufacturers are adopting next-generation technologies in an effort to boost pro-

ductivity and remain competitive. However, while

the Industrial Internet of Things (IIoT), artificial intelligence (AI), automation, and robotics are disrupting how the sector operates, these technological developments are also increasing its vulnerability to cyberattacks and data breaches. As manufacturers become ever more connected, they must ensure measures are in place to tackle 38

the growing onslaught of cyber threats they face, protecting their organisations against the theft of sensitive data and the disruption to their systems or operational technology.

THE FUTURE IS DIGITAL The long-term prosperity of the UK manufacturing sector is under jeopardy. Commenting on the CBI Industrial Trends Survey for July 2019, Anna Leach, CBI Deputy Chief Economist, said, “UK manufacturers remain on the receiving end of a double whammy: the slowdown in the global economy and Brexit uncertainty. Trade tensions between nations such as China and the US only exacerbate the demand uncertainty.�

JANUARY 2020


39

“ As manufacturers become ever more connected, they must ensure measures are in place to tackle the growing onslaught of cyber threats” — Ed Macnair, CEO, Censornet

w w w.ma nufa c t uri nggl o b a l. com


TECHNOLOGY

CLICK TO WATCH : ‘CENSORNET AUTONOMOUS SECURITY ENGINE’ 40 It’s perhaps unsurprising, therefore,

at encouraging the widespread adoption

that manufacturers have been turning to

of cutting-edge Industry 4.0 technolo-

the latest advances in digital technology

gies across the entire UK manufacturing

to help turn the odds in their favour.

industry. Former UK Business Secretary,

Indeed, three quarters of the respond-

Greg Clark, said of the initiative, “We

ents to a recent survey by PwC

want to support companies of all sizes

accepted they would need to adopt

who want to develop new digital capabili-

digital technologies in order to prosper.

ties […] we are committed to making sure

This need hasn’t gone unrecognised

manufacturers are best placed to take

by the UK Government. Its Industrial

advantage of the opportunities being

Strategy, published in late 2017, focuses

created by industrial digitalisation.”

heavily on technology as an enabler to

Digital is clearly seen as the future

productivity in the manufacturing sector,

of manufacturing. But it brings with

for example. To help facilitate this,

it a host of threats to the security

it launched “Made Smarter”, aimed

of the industry.

JANUARY 2020


UNDER THREAT According to a report by the EEF, the manufacturer’s organisation (now MakeUK), the manufacturing industry is the third most targeted by cyber criminals, after the finance sector and government. The report reveals that almost half of manufacturers have been victims of cybercrime at some point, with about a quarter admitting they had sustained financial or other business losses as the result of a cyberattack.

“ UK manufacturers remain on the receiving end of a double whammy: the slowdown in the global economy and Brexit uncertainty” — Anna Leach, Deputy Chief Economist, CBI

A fear of suffering such losses actu-

41

ally appears to be holding businesses back from adopting more advanced manufacturing technology. While nine in 10 manufacturers are investing in E XE CU T I VE PRO FI LE

Ed Macnair Ed Macnair is CEO of Censornet and a cyber security expert with more than 30 years’ experience in the industry. He was previously founder and CEO of SaaSID, a UK based single sign-on and application security vendor, and CEO of Marshal, a global web and email security company that merged with US web security provider 8e6 Technologies to form M86 Security. Macnair has also held senior positions at MessageLabs, Symantec, IBM and Xerox.

w w w.ma nufa c t uri nggl o b a l. com


TECHNOLOGY

digital technology to some extent, more than a third said concerns over cyber security prevented them from investing fully. Such fears are not unfounded. After all, the efficiency and productivity benefits that digital technology can offer a manufacturer can easily be undone as the result of a single cyberattack. Attackers tend to have one of three primary objectives in mind – to steal data, to gain business intelligence, or to disrupt systems or operations. And any one of these can have a negative

42

impact on a manufacturing organisation’s productivity, its bottom line, or its reputation. It’s imperative, therefore, that manufacturers consider the state of the threat landscape, where their own vulnerabilities may lie, and how they can best defend their business against attack.

OPEN TO EXPLOITATION To illustrate the extent to which manufacturers are vulnerable to attack, consider the growth of the IIoT. In basic terms, IIoT refers to a network of connected sensors, instruments and JANUARY 2020


other devices across a factory floor,

of-service (DDoS) attack. Forming

which leverage data analytics and

a botnet made up of a large number of

AI-powered “smart machines” for

compromised devices, attackers can

greater automation, efficiency and pro-

bombard a victim’s server with queries,

ductivity. So desirable are its potential

overwhelming it to the point that is

benefits that global spending on IIoT

no longer able to function.

platforms for manufacturing is

These are, of course, only a few of

expected to grow from $1.67 billion in

the many threats faced by manufactur-

2018 to more than $12 billion in 2024.

ers today. Cyber criminals don’t rest on

A growing number of connected

their laurels; they’re constantly updat-

“things” equates to a growing attack surface. Each of these things can be seen as an endpoint, and endpoints are vulnerable to exploitation by anyone with the will and the means to do so. By using such vulnerabilities as a point of entry, hackers can introduce malware into a manufacturer’s network; to exfiltrate sensitive corporate information, for example, or to take control of systems ­­– and even shut them down. Sometimes, their aim may be simply to wreak havoc. Devices can be hacked to misbehave, performing the wrong action, or communicating the wrong information with other connected devices, causing them to fail. Compromised devices can also be used to disable an organisation’s IT

CENSORNET FACTS

• 55% of UK businesses faced an attack in 2019 • Average losses from breaches rose to $369,000 • British firms have the lowest cyber security budgets, averaging a spend of $900,000 compared to $1.46mn across Europe • Almost three quarters of firms were ranked as novices in terms of cyber readiness • Eight in 10 UK firms have made changes since EU data protection rules were introduced last year

network as part of a distributed denialw w w.ma nufa c t uri nggl o b a l. com

43


TECHNOLOGY

44

ing and refining their attack techniques.

and could have a knock-on effect

And this continuous development

on its wider supply chain.

makes it hugely difficult for manufac-

Essentially, knowledge is power.

turers to detect a potential cyberattack,

The ideal solution would be to integrate

let alone defend against it.

all of an organisation’s existing security products using real-time intelligence –

QUICK TO REACT

on user activity, device behavior, and

Given the scale of the cyber threats

network activity – combined with the

facing the manufacturing industry,

latest threat intelligence from different

it’s essential that security solutions are

operation centres and third-parties,

as up-to-date and quick to react as

such as suppliers and customers.

possible. Any delay in identifying and

Armed with the knowledge needed to

preventing an attack can prove costly

identify potential threats to the network

to a manufacturing organisation,

– the moment they emerge – such

JANUARY 2020


“ Factory floors may be becoming more automated, but when it comes to security, autonomy is more important than automation” — Ed Macnair, CEO, Censornet 45

a defence platform could act autono-

offers cyber criminals, and ensure

mously and strike, often before the

provisions are in place to protect

threat has even entered the kill chain.

against them. Any security solution

As a result of current uncertainty

must be ready to act instantaneously.

around Brexit and concerns around

Factory floors may be becoming

the wider economy, the future of the

more automated, but when it comes

UK’s manufacturing industry is in a pre-

to security, autonomy is more impor-

carious position. Offering the opportu-

tant than automation.

nity to improve operational efficiency and productivity, manufacturers must embrace advances in digital technology if they are to remain competitive. They must be mindful, however, of the opportunities this technology also w w w.ma nufa c t uri nggl o b a l. com


M A N U FA C T U R I N G 4. 0

46

THE RISE OF DISTRIBUTED MANUFACTURING How Fictiv is democratising access to manufacturing and transforming the way hardware teams design, develop and deliver physical products with a virtual manufacturing platform

WRITTEN BY

JANUARY 2020

DAN BRIGHT MORE


47

w w w.ma nufa c t uri nggl o b a l. com


M A N U FA C T U R I N G 4. 0

F

ictiv’s manufacturing platform pairs intelligent workflow and collaboration

software with a global network of highly

vetted manufacturers, from prototype to production. The company emerged while CEO Dave Evans was working in the automotive industry at a research lab in California. Ford was keen to innovate at the speed of Silicon Valley, but the development cycle for consumer electronics is six months. Back in 2013, while working on infotainment systems, Evans was challenged by Ford to figure out how to move development cycles 48

closer together. “Dave was trying to iterate automotive dashboards at the pace of consumer electronics, in a matter of weeks not years,” explains Mike Geyer, Fictiv’s Head of Business Development. “But he found it was incredibly challenging to get physical prototypes made, either because Ford’s internal resources moved on much longer development cycles, or outsourced suppliers refused Ford’s projects.” Spotting a gap in the market, Evans and his brother invested in a small Makerbot 3D printer and started 3D printing parts for startups. Working out of the laundry room of Evans’ apartment block, just outside the Stanford campus, Fictiv was born. Now a thriving business, counting the likes of NASA, JANUARY 2020


49

w w w.ma nufa c t uri nggl o b a l. com


M A N U FA C T U R I N G 4. 0

Panavision and Ford among its customers base, Geyer notes the three main trends that created an environment for growth. “On a macro level, the first trend we identified is the current issues with tariffs across global trade. What’s underneath the surface is a move away from globalisation and back towards more economic independence. Regardless of the politics, it’s a fact of the map,” he asserts. “Global trade is causing a lot of uncertainty in the supply chain, so people are rethinking where they get their products made.”

50

Geyer adds that the second key trend is the growing acceptance of new technologies and approaches to manufacturing across the market. “Metal 3D printing, large format 3D printing, printing with embedded sensors and circuits — new means of production are rapidly coming online,” he says,

“ OUR DISTRIBUTED MANUFACTURING NETWORK CAN PROVIDE THE CONNECTIVE TISSUE SO THAT COMPANIES LOOKING TO ADOPT NEW TECHNOLOGIES CAN TRY THEM WITHOUT HAVING TO INVEST IN CAPITAL EQUIPMENT” — Mike Geyer, Head of Business Development, Fictiv JANUARY 2020


CLICK TO WATCH : ‘ABOUT FICTIV’ 51 stressing that, while many companies

STRATEGIC SOURCING

are interested in experimenting with

“We’ve got a team looking at the

these approaches, they’re not willing

manufacturing supply base around

to invest capital in equipment, hence

the world and evaluating trends by

why they’re looking to get access

industry, by investment, by customer

through other means.

demand; evaluating what new supply

“The third trend we’ve seen across

we need to bring online — be that new

many industries is outsourcing, from

capabilities, new countries, or new

engineering to actual fabrication,”

regions that allows us to give our

observes Geyer. “Companies that had

customers choices,” reveals Geyer.

traditionally run their own factories or

Fictiv’s strategic sourcing approach

workshops, even for prototyping, are

isn’t necessarily about finding the

now looking at how they can reduce

cheapest or fastest option, but will

those capital costs and move that

also include evaluations based on pilot

process beyond the company walls.”

projects, with some of the leading w w w.ma nufa c t uri nggl o b a l. com


M A N U FA C T U R I N G 4. 0

CLICK TO WATCH : ‘FICTIV CUSTOMER STORY | ANIMAX DESIGNS’ 52

JANUARY 2020


D ID YOU KNOW

Customer Success Story Animax Designs creates industry-leading 3D characters built with artistry using cuttingedge technology. Established over 30 years as a leader in the theme park industry, Animax designs and engineers some of the most famous animatronics seen every day by attractiongoers around the world. “In the theme park industry, we design around a character going into an installation and running for 20 years at 16 hours a day, seven days a week,” says Design and Engineering manager Kurt Oetken. “A character is going to see somewhere in the 20-30mn motion cycles.” Animax partnered with Fictiv for the first time early 2018, when they realised they needed high-quality parts at speed.

Since their parts require that they stand up to years of wear and tear, they needed a partner on whom they could rely. With Fictiv, Animax Designs knows that they will receive the quality parts they need, when they need them. “With the hundreds and hundreds of parts that we’ve ordered, they come in with an inspection report with actual dimensions marked on the print,” reflects Oetken. “Fictiv is the only group that does that for us. They allowed us to accomplish a lot of work in a very short time, work that we didn’t think we would be able to handle. If we ever had any questions, we knew that we could have a great conversation with their team and receive answers quickly.”

w w w.ma nufa c t uri nggl o b a l. com

53


M A N U FA C T U R I N G 4. 0

suppliers demonstrating new capabili-

designs to be able to provide real time

ties around the likes of metal 3D

feedback on manufacturability, cost

printing and polymer 3D printing.

and quality while mapping that to our

“Our distributed manufacturing network can provide the connective

54

supply base.” Fictiv positions itself as the manufac-

tissue so that companies looking

turer of record, but doesn’t own factories

to adopt new technologies can try

or machine shops. “We think of our

them without having to invest in

distributed business model as consoli-

capital equipment,” says Geyer,

dating fragmented demand across

explaining that Fictiv’s partnership

companies that develop products,

strategy is based on the creation

whether that’s the cell phone you’re

of a manufacturing ecosystem, not

holding in your hand, your new electric

just reliance on linear supply chains.

car or a surgical robot,” says Geyer

“It’s a holistic perspective,” he adds.

of a company hailed by Forbes as “the

“In many cases, we connect our

Airbnb of manufacturing”. “We channel

customers with other customers

that into latent capacity in our manu-

because they provide services, like

facturing network. This means small

engineering and design, that early

to medium size manufacturers are

stage companies don’t. We’re taking

getting demands they would have

a system approach and using AI and

never had access to otherwise. For

machine learning to analyse engineering

me personally, that’s really exciting

JANUARY 2020


“GLOBAL TRADE IS CAUSING A LOT OF UNCERTAINTY IN THE SUPPLY CHAIN, SO PEOPLE ARE RETHINKING WHERE THEY GET THEIR PRODUCTS MADE” — Mike Geyer, Head of Business Development, Fictiv

w w w.ma nufa c t uri nggl o b a l. com

55


M A N U FA C T U R I N G 4. 0

“ THE IDEA OF THE AUTOMATED, OR SELF-DRIVING, SUPPLY CHAIN IS GOING TO BE REALLY EXCITING WHEN YOU START TO THINK ABOUT CONNECTING LATENT CAPACITY AUTOMATICALLY AND USING MACHINE LEARNING TO DISTRIBUTE WORK” — Mike Geyer, Head of Business Development, Fictiv

56

because it means this business

really exciting and one

model has the ability to invigorate

of the reasons we’re

local manufacturing economies

getting a lot of interest

by driving demand from customer

from local governments

bases that could be in other parts

and their agencies that

of the world.”

are responsible for recruiting new

Geyer points out that, traditionally,

companies to come and bring our

small machine shops only have

business model to countries like the

access to customers they know and

UK, Japan and Germany. The key

don’t have the luxury of global sales

differentiator is that we’re not just a

and marketing teams. “Fictiv gives

big traditional contract manufacturer,

them access to all of the leading

we’re actually using latent capacity.”

innovators and customers around up operations in the UK. There’s

PARTNERING TO CREATE AN ECOSYSTEM

actually a retail robotics company

Geyer highlights the importance

that we’re starting to work with that’s

of strong investment partners, such

headquartered in San Francisco and

as G2VP, who bring “incredible value

recently moved to the UK,” he says.

in terms of connections and new

“We think that’s something that’s

geographies, along with the ability

the world, many of whom are setting

JANUARY 2020


Strategically, Fictiv is also aligned with companies like HP, with the launch of its MultiJet Fusion 3D printers, and working with Desktop Metal, MarkForged, Intel and Microsoft to further bolster its ecosystem and offer the kind of connections not normally available to startups.

ROBOTICS AND AUTOMATION “We’ve been really focused on robotics,” reveals Geyer. “We’re seeing a big investment in automation around industrial, medical, aerospace, and e-mobility.” Fictiv has been working to expand into new countries, create

with a medical robotics company

connections, offer advice and support

aiming to do laparoscopic surgeon-

the sourcing of talent.” This approach

assisted procedures, using an entirely

extends to Fictiv’s work with early

new robotic arm and control system.

stage venture-backed hardware

“The doctor sits in a terminal and has

entrepreneurs, who use the platform

a virtual reality view of the surgery for

to get referrals to deep engineering

greater precision and higher success

and design expertise that can help

rates,” explains Geyer. “We’re helping

bring their projects to fruition. “The

them create a complex robotic joint

Fictiv ecosystem offers expertise in

with a full range of motion. By looking

areas that are highly technical and

at our global network we found that

specialised,” confirms Geyer, citing

we were able to source the collection

the waterproofing of enclosures for

of parts required in 16 days, rather

IoT devices and the bespoke design

than the 16 weeks the company was

of light pipes for plastic bodies.

originally quoted. It warms my heart w w w.ma nufa c t uri nggl o b a l. com

57


M A N U FA C T U R I N G 4. 0

and is one of the reasons I love working in manufacturing and engineering — finding novel solutions to problems that impact people’s quality of life.”

THE FUTURE FOR MANUFACTURING What are Geyer’s predictions for the further development of on demand solutions for manufacturing? “The one that feels the most exciting is that, as digital manufacturing becomes more prevalent, companies selling a digitally 58

connected manufacturing equipment (such as a metal 3D printer) will be able to sell that printer with an uptime insurance contract,” explains Geyer. “At $1mn a piece, buyers concerned they won’t have enough demand to justify expenditure can connect to a digital network, like Fictiv, and, when

learning to distribute work to the

they have the capacity, channel jobs

places that make the most sense for

via the platform, making everything

the type of work that’s required,

from consumer electronics to

whether that’s because of quality,

aerospace components.”

or the geographic preference of the

“The idea of the automated, or

purchaser,“ adds Geyer, who believes

self-driving, supply chain is going

the technology will allow for broader

to be really exciting when you start to

customisation. “Right now, products

think about connecting latent capacity

are built based on market research by

automatically and using machine

the millions. They’re shoved onto store

JANUARY 2020


59

shelves in the hope that they sell.

a few years out, but the day is rapidly

What that results in is rising levels of

approaching. That’s when the impact

waste and cost. Imagine if 70% of the

on our carbon footprint and the benefits

stuff you buy is built on demand for

of sustainability could be really huge.�

you and is then tailored to your needs. If you have certain tastes and preferences for the finish of metal products or the texture of plastic goods, you should be able to customise that and have it made on demand. That’s still w w w.ma nufa c t uri nggl o b a l. com




62

Manufacturing Trends for 2020 MANUFACTURING GLOBAL HIGHLIGHTS 10 TRENDS SET TO DRIVE TRANSFORMATION AND DISRUPT THE MANUFACTURING

INDUSTRY IN 2020

WRITTEN BY

DAN BRIGHTMORE

JANUARY 2020


63

w w w.ma nufa c t uri nggl o b a l. com


T O P 10

64

10

5G NETWORKS

The potential for 5G to offer speeds of 10Gbps would make it 100 times faster than 4G. Harnessing its benefits will provide the fuel for innovation in the smart factories of the future. It will allow manufacturers to improve latency and enable real-time communication on a scale not previously possible. The rollout of 5G will offer a platform for more reliable remote monitoring of many areas of the production process; this will support the external guidance required to improve safety while optimising efficiency, flexibility, and availability.

JANUARY 2020


65

09

PREDICTIVE MAINTENANCE

According According to data compiled in 2018 by software service management company Oneserve, most manufacturers will lose between ÂŁ60,000-ÂŁ500,000 ($80,000-$665,00) each year as a result of unplanned machine downtime. This prediction is based on an average failure rate of every two and a half months. Predictive Maintenance is potentially one of the greatest achievements of Industry 4.0, bringing enhanced monitoring to every machine in the production process of the future. This could reduce unplanned downtime by an estimated 50% through the ability to foresee problems and plan maintenance in advance. w w w.ma nufa c t uri nggl o b a l. com


T O P 10

66

08

3D PRINTING

3D printing, also known as additive manufacturing, will continue to allow companies big and small to be nimble enough to make faster, cheaper prototypes and accelerate product development. With the cost of 3D metal printers falling, the technology has been democratised, delivering design freedom. Factories will become centres for just-in-time manufacturing rather than storehouses for products that take hours to produce and only operate in silos.

JANUARY 2020


67

07

INTERNET OF THINGS (IoT )

Mckinsey estimates the number of connected devices is expected to exceed 36 billion by 2021 and, according to Intel, the total global worth of IoT (Internet of Things)Â could be as much as $6.2trn by 2025. Most of that value comes from health care devices ($2.5trn) and more than a third from manufacturing ($2.3trn). IoT can deliver the intelligence organisations need to both sustain operational excellence and transform their businesses according to shifting industry trends and customer needs. Failing to invest in IoT could leave businesses at risk of becoming defunct.

w w w.ma nufa c t uri nggl o b a l. com


T O P 10

68

06

DISTRIBUTED MANUFACTURING

Distributed manufacturing challenges the way things have always been done by replacing much of the material supply chain with shared digital information. Harnessing 3D printing, the localised distribution of parts and products will aid the assembly and packaging of end products near to their final destination — in turn this can help businesses reduce their carbon footprint, minimise waste and improve efficiency. It also provides companies with a cost-effective option to get access to, and experiment with, new technologies without the need for huge capital investment. (To find out more about this approach read our feature about Fictiv’s manufacturing platform on Page 54).

JANUARY 2020


05

VR & AR

PwC advises that Virtual Reality (VR) is ahead for now, but that Augmented Reality (AR) will be a larger market in the long run. Neither can yet claim to be mature technologies, but the value of business applications leveraging these technologies in the manufacturing industry is compelling. Training can be virtualised, providing the opportunity for immersion into multiple scenarios from anywhere in the world. The design of physical assets can be positively impacted with iterations shortened by using VR or AR to visualise assets in truth-to-scale fashion. Smart information can be delivered to contextualise instructions during maintenance processes, while telepresence can drive collaboration and support safety in hazardous working environments.

w w w.ma nufa c t uri nggl o b a l. com

69


T O P 10

04

AI & MACHINE LEARNING

The surge in the number of connected IoT devices creates a need for better management of huge volumes of data during the production journey from factory floor to end user. The convergence of Artificial Intelligence (AI) and IoT has prompted companies such as SAS Software to suggest ‘AIoT’ as the next advancement based on Gartner’s prediction that, by 2022, more than 80% of IoT projects will include AI. It offers the ability to support predictive maintenance by using algorithms in the form of machine learning to brief technicians on inspections and repairs. In 2020, AI will 70

continue to enhance human-robot collaboration enabling robots to handle more cognitive tasks and make autonomous decisions based on real-time environmental data.

JANUARY 2020


03

71

CYBERSECURITY

Global spending on cybersecurity went past $100bn in 2019 as data breaches continue to be the biggest concern. This highlights the worrying statistic that the demand for cybersecurity professionals will continue to exceed supply, with as many as two in three organisations worldwide reporting a shortage of IT security staff and automated security tools, according to a 2018 (ISC)² study. (Learn more about how your business can be quick to react to cyber threats from security experts Censornet on Page 44).

w w w.ma nufa c t uri nggl o b a l. com


T O P 10

72

CLICK TO WATCH : ‘BLOCKCHAIN EXPLAINED’

JANUARY 2020


02

BLOCKCHAIN A recent Capgemini study found that gaining greater cost savings (89%), enhancing traceability (81%) and enhancing transparency (79%) are the top three drivers behind the blockchain investments of manufacturers today. Meanwhile, Gartner predicts the business value-add of blockchain will grow to more than $176bn by 2025, then exceed $3.1trn by 2030. Combining blockchain and IoT will revolutionise product safety, track-and-traceability, warranty management and maintenance, while offering a platform for new usage-based business models for smart, connected products.

w w w.ma nufa c t uri nggl o b a l. com

73


T O P 10

74

CLICK TO WATCH : ‘WHAT IS A COBOT?’

JANUARY 2020


01

COBOTS The World Economic Forum has predicted that although automation will displace 75 million jobs by 2022, 133 million new roles will also be created. The rise of collaborative robots, or ‘cobots’, will help manufacturers with the challenges posed by skills shortages that are forcing them to recruit from a diminished talent pool. Allied to this, recent research by Epicor shows that rather than being worried about job losses, industrial workers are willing to embrace robot co-workers. New technologies will prove key to attracting the workforce of the future with 41% of the young people Epicor surveyed indicating they would welcome the opportunity to work with the latest innovations. Meanwhile, efficiency and safety will be improved with less jobs being done by hand.

w w w.ma nufa c t uri nggl o b a l. com

75


29 - 30 January, 2020 | Hotel Palace, Berlin

Be Inspired – Our Featu

Curtis Carson

Head of Engineering Process, Methods, & Performance

130

John Vermeer

Director Digital & Smart Factory

Heiko Witte

Head of Engineering Improvement

Smart Manufacturing Leaders joining us in Berlin

45

Paul Mairl

Chief Digital Officer

Thought Leadin Pioneering Indu

Save 15% on your ticket when you use the code MANG


Join The Fastest Growing Fixed Income Community Implementing Industry 4.0: Connecting People, Process & Technology

ured Keynotes Includes:

Joachim Hensch Managing Director

Dr. Sama Mbang

Head of Digitalisation – Simulation Manufacturing Load Cases

ng Speakers Showing ustry 4.0 Projects

15

Jens Schmidt

Global Technology Director

Ilker Kalali

Head of Industrial Engineering & Manufacturing

hours of Invaluable Networking Time Over 2 Interactive Days

GLOBAL20 | www.manufacturing.wbresearch.com


EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DAN BRIGHTMORE from around the world

78

17–20 JANUARY

International Conference on Manufacturing Technologies [ SEATTLE, USA ] The 4th International Conference

dala (the Boeing-Pennell Professor

on Manufacturing Technologies

of Engineering at the University

(ICMT) focuses on encouraging the

of Washington and an expert on

collaborations that will promote the

Industrial & Systems Engineering),

engineering innovations of tomorrow

Prof Jing Wang of the University

and advance the industry. Keynote

of Florida on 3D-printed mmWave

speakers include Georgia Tech’s

devices and Washington Univer-

Prof Steven Y Liang on Predictive

sity’s Prof Ramesh K Agarwal on

Manufacturing, Prof Ramulu Mami-

the design of metamaterials.

JANUARY 2020


29–30 JANUARY

Connected Manufacturing Leaders Summit 2020 [ BERLIN, GERMANY ] “High-energy presentations from fan-

25 FEBRUARY

experience on what it takes to bring

Make UK National Manufacturing Conference

Industry 4.0 to life!” High praise for the

[ LONDON, UK ]

Connected Manufacturing Leaders

Make UK (formerly known as EEF)

Summit from Airbus Head of Engineering

champions and celebrates British

Process, Methods, Tools, Performance

manufacturing and manufacturers.

& Improvement, Curtis Carson. Learn

Its annual conference brings together

from speakers delivering insights on

over 800 industry leaders for a series

the future of connected manufactur-

of interactive workshops on a range

ing including ABB’s Global Director of

of topics including tackling the talent

Digital Development, Miika Murremäki,

pipeline, hollow supply chains and

BMW Group’s Head of Artificial Intelli-

peer-to-peer trading. There will also

gence & Innovation, Matthias Schindler,

be opportunities for networking through

and Coca Cola’s Director of Digital

the event’s delegate directory and

Operations Excellence & Digital Supply

speaker’s corner. Keynote speakers

Chain, Damodar Hegde. Sponsored by

include Jim Carter, Commercial Direc-

GE Digital, this year’s event focuses on

tor of Supply Chain at the Ministry of

the use of data analytics, robotic pro-

Defence, Deidre Fox, Director of

cess automation and the rise of cobots,

Strategic Development at Tata Steel

virtual reality and cyber security.

in Europe and Lord Sebastian Coe.

tastic speakers sharing their valuable

w w w.ma nufa c t uri nggl o b a l. com

79


EVENTS & A S S O C I AT I O N S

16–17 MARCH

Rethink! Smart Manufacturing Europe [ BERLIN, GERMANY ]

27–28 FEBRUARY

The 2nd Global Manufacturing Digital Transformation Summit [ SHANGHAI, CHINA ]

80

More than 100 plant managers and production leaders from across Europe will be in attendance to explore myriad solutions for tomorrow’s digital transformations. Siemens’ Head of Global

The 2nd Global Manufacturing Digital

Manufacturing Stephan Schlaub,

Transformation Summit embraces the

Airbus Head of Digitilisation & IT Henrik

Industry 4.0 era, examining the rise

Fransson and Hugo Boss Managing

of technologies such as cloud comput-

Director Joachim Hensch will be

ing, AI and IoT, while assessing their

among the industry leaders assessing

ability to improve operational efficiency

the future of smart manufacturing

and deliver supply chain optimisation.

and seeking answers to some of the

Conference themes to be explored

big questions posed by Industry 4.0:

through a series of panel discussions

what will the globalised company of

and keynote speeches include: how

the future look like and how will virtual

manufacturing can thrive in the digital

teams work together effectively? Key

age; how to build a smart, connected,

topics to be covered at Rethink! include

flexible and customised factory; the

smart factories, connected machines,

impact of the China-US trade war

the future for additive manufacturing

on manufacturing and how digital

and cyber risk management.

transformation is revolutionising the manufacturing production chain.

JANUARY 2020


24–25 MARCH

The American Manufacturing Summit 2020 [ CHICAGO, USA ] The American Manufacturing Summit will

have been tailored to change the culture.

welcome attendees from leading global

Great networking opportunities.” This

companies such as 3M, Duracell, Kraft,

year, Caterpillar Group President Denise

Boeing and Toyota, who will join hun-

Johnson, GE Appliances COO Melanie

dreds of delegates for two days of

Cook and Nestle Waters’ EVP Manufac-

leadership-focused strategising covering

turing Alexander Gregorian will deliver

the key themes of manufacturing profit-

keynotes examining the pathways to

ability and innovation, talent and

embracing innovation, lean manufactur-

capability and plant floor optimisation.

ing, managing and up-skilling the

Last year’s edition proved a hit with Cob-

workforce of the future, and the chal-

ham’s Director of Operations & Supply

lenges of integrating new technologies

Chain Arne Vogt: “A great conference

while establishing standardisation across

that provided insight on how lean tools

multiple manufacturing operations.

w w w.ma nufa c t uri nggl o b a l. com

81


82

WRITTEN BY

WILLIAM SMITH PRODUCED BY

STUART IRVING

JANUARY 2020


Digitally transforming the customer experience at T2 Tea

w w w.ma nufa c t uri nggl o b a l. com

83


T2 TEA

T2 Tea’s Global Head of Technology details the digital initiatives underway at the tea retailer pioneering new methods of customer engagement

T2

Tea is one of the world’s premium tea companies, operating in tea retail, wholesale and tea wares. Started in Melbourne

in 1995, in 2013 the company was purchased by 84

consumer goods giant Unilever. T2 nevertheless retains its Melburnian identity, while expanding in international markets, particularly the UK. Rohan Penman is the company’s Global Head of Technology, overseeing a systematic digital transformation as part of his role. “Anything that involves IT, I am accountable for,” he states. “That’s all the way from retail through to ensuring business to business connection capability, as well as having a website that is running efficiently, responsively and is always available.” Penman admits that there “had been a number of years where significant spend hadn’t occurred”. Consequently, since joining, Penman has overseen a comprehensive update of T2’s systems. “There was a lot of change, to say the least,” he notes. “To start with, the warehouse JANUARY 2020


85

management system had become ‘end of life’. So HighJump Advantage was installed to replace what was effectively an obsolete warehousing product.” Another system that received some TLC was point of sales (POS). “Our point of sale was end of life and very hard to support in the Asia Pacific region. So that was replaced with Triquestra’s Infinity product. Then we needed a new way of approaching communications. Luckily, we were using Microsoft 365, w w w.ma nufa c t uri nggl o b a l. com


T2 TEA

so we were able to take advantage of the upgrade path for SharePoint,

“We’re giving back and showing a moral commitment to the planet”

instigate SharePoint Modern and rebuild our intranet. With that, we were also able to install Microsoft Teams and put in a fairly basic software VoIP system for anyone that needed a phone system.” Systems change reached a new level of urgency owing to the recent headquarters move, which was both an opportunity and a chal-

86

Rohan Penman, Global Head of Technology, T2 Tea

JANUARY 2020

lenge. “From the get-go of starting at T2, we were aware that a move


CLICK TO WATCH : ‘T2 EVERYDAY – HOW TO MAKE MATCHA 3 WAYS’ 87 was required,” says Penman. That

such as Freshworks. “We started off

effectively gave me 18 months to

using Freshworks servers so that we

begin planning. We had priorities in

had an ITIL framework for incidents

the business, such as the warehouse

and problems,” says Penman. “The

management system and the new

Freshworks service desk was so

POS system. It allowed us to do risk

good that we then moved to using

management and an assessment of

the project management product

what infrastructure we were running

called Freshrelease, which is effec-

to make sure that effectively any-

tively a Kanban solution that allows

thing on premise could be turned off

you to run agile scrum methodol-

for quite a long time and the business

ogy.” Private infrastructure was also

wouldn’t notice it.”

moved to the Rackspace Intensive

Following that assessment, ser-

hosting environment. “Rackspace

vices which had to remain available

Intensive allows us to have a gold

were migrated to cloud offerings

standard of support, with business w w w.ma nufa c t uri nggl o b a l. com


T2 TEA

88

JANUARY 2020


trading 24/7, which we require as global retailers. Rackspace Intensive hosting offers that high level of management and service for all the applications that are hosted on their physical hardware.” The systems the company is implementing are ultimately a component of providing the best possible level of ecommerce experience. One such example is the capabilities of the newly introduced POS. “Infinity POS is actively updated,” says Penman. “It’s a platform you can happily build on, and it’s a very big enabler for us from a retail and digital point of view. It allows a unified strategy integrating the digital world and the physical store. It’s also let us engage with alternative payment methods. We’ve started to do a lot of work with providers like Afterpay and Clearpay, which

w w w.ma nufa c t uri nggl o b a l. com

89


Breaking the wall between

IT & Engineering teams 1

Employee issue

4 Assign & work on the bug in Freshrelease.

Happy Employee!

3 Create an incident in Freshservice.

Solved!

2

* #%@ IT

Service Desk

</>Developer hub Thanks !

IT Service Platform for the Enterprise

sales@freshservice.com


has definitely started to make a dent in the UK and the US.” The advanced approach to ecommerce opens up new avenues and new levels of customer interaction, as Penman explains. “To give customers the best experience, a modern retailer needs to have con-

“To give customers the best experience, a modern retailer needs to have consistent offerings and messaging digitally and in store”

sistent offerings and messaging, both digitally and in store. That’s the crux of the approach. That includes people being able to interact in store and online and have their details and transactions synchronised so that

Rohan Penman, Global Head of Technology, T2 Tea

w w w.ma nufa c t uri nggl o b a l. com

91


T2 TEA

1995

Year founded

$1.8mn Revenue in US dollars

100% Sustainably sourced tea

92

2013

Acquired by Unilever

JANUARY 2020


93

w w w.ma nufa c t uri nggl o b a l. com


T2 TEA

94

“There was a lot of change, to say the least”

they have a history of what they’ve done, so they can access that however and whenever they wish. It also allows the customer to shop where, how and when they want. “Ecommerce also allows us to present the premium product that is T2 as a lifestyle. Looking on the website, customers can see that T2 is a brand

Rohan Penman, Global Head of Technology, T2 Tea JANUARY 2020

that is trying to wear its heart on its sleeve, do good and give back.”


95

That sense of giving back is

wastage is a huge focus for the busi-

reflected in sustainability initiatives

ness, and has been for a couple of

undertaken by T2 and its parent,

years. We’re giving back and showing

Unilever. While Unilever has pledged

a moral commitment to the planet.”

to halve its use of new plastic by

As T2 balances internal change with

2025, T2 itself is focused on such

new methods of external engage-

initiatives as removing polyplastics

ment, this ethos remains at the fore.

from its packaging. “There’s a lot of people in the business that are passionate about sustainability,” says Penman. “Packaging and reduced w w w.ma nufa c t uri nggl o b a l. com


96

Driving innovation for a sustainable business WRITTEN BY

GEORGIA WILSON PRODUCED BY

MANUEL NAVARRO

JANUARY 2020


97

w w w.ma nufa c t uri nggl o b a l. com


LOTTE WEDEL

Poland’s oldest chocolatier shares its innovation journey, focused on ensuring a sustainable business model

S

upply chain is a challenging role; complexity constantly grows to reflect business needs, products, developing technol-

ogy, optimisation and efficiency,” says Sławomir Kluszczyński, Chief Operating Officer (COO) at LOTTE Wedel. For a business that has a vast 98

amount of history and tradition, it is important to balance innovation with a legacy that has seen it win the hearts of chocolate lovers worldwide since 1851. “Our industry is continuously changing,” notes Kluszczyński, “in particular our consumers are becoming increasingly aware of the impact of not having a sustainable business. The industry is not waiting, it is doing everything it can to support sustainability, and so is Wedel. It is a core part of our company values, a lot of our activities are focused on our impact on the environment,” he continues. When it comes to those company values, Wedel underwent a cultural transformation this year: “We have recently undertaken a number of activities in this area: we have redefined the mission and vision of Wedel and we have redefined organisational values. We began to build employee awareness in JANUARY 2020


99

w w w.ma nufa c t uri nggl o b a l. com


LOTTE WEDEL

100

this area, both at the level of the entire

business include, water and energy

organisation (culture research) and at

saving solutions, zero-waste activities

the individual level. The next steps are

and reduced plastic and paper usage.

to support employees with the tools

“We have a zero-waste policy, sensors

and systems that will help us to oper-

that limit the use of both water and

ate in accordance with the the new

electricity have been implemented

organisational culture. All of this is to

throughout the business. In addition, we

develop the competencies that will pro-

use mobile solutions and applications

vide Wedel with an innovative view, and

to reduce the need for paper printing,

quick solutions that will help achieve

as well as streamlining the amount

the goals set in our long-term strategy,”

of printing machines available,” says

Kluszczyński explains.

Kluszczyński. “When it comes to plas-

Current ways in which Wedel is

tic waste, we have eliminated it from

driving sustainability throughout its

our canteens, replacing plastics with

JANUARY 2020


CLICK TO WATCH : ‘WEDEL CORPORATE VIDEO’ 101

“ We value our people at Wedel, our Wedel family’s dedication to ‘Kaizen’ is what drives our success” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel

w w w.ma nufa c t uri nggl o b a l. com


LOTTE WEDEL

“ Wedel is very proud to partner with big international and local networks and suppliers” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel

Wedel’s workers help in building educational farm

102

biodegradable substitutes. Where we

developing its CSR strategy, which will

still need to use it, we reuse as much as

incorporate a long-term sustainability

possible in order to reduce our impact

plan. It is expected to be announced in

on the environment.”

early 2020.

However, it is not only company

Besides that, Wedel already under-

implementations that are driving

takes many social responsible activities.

Wedel’s sustainability focus. “We work

For example, the company cooperates

with suppliers and partners in logistics,

with NGO’s, partners and institutions:

that share our environmental goals

“We are very close with Praga-Południe,

as well as educate our employees on

where our factory has been located

environmental best practices, includ-

since 1930. As a result, we are involved

ing workshops detailing correct waste

in many local activities: we support

segregation,” explains Kluszczyński.

our neighbour, The Praga Museum of

Wedel is currently in the process of

Warsaw; we participate as a strategic

JANUARY 2020


partner in Polish-German Gardens, which works to revitalise the park near our factory; and we are titular sponsor of ‘Wedel’s Run’, which has run for 15 years,” Kluszczyński says. “We appreciate long-term cooperation. An example of this type of work and partner is Stowarzyszenie Serduszko dla Dzieci (Heart for Children Association), with which we’ve already done many interesting projects,” he continues. “For example,

Bee hives on the Wedel factory rooftop

the foundation’s proteges take care of hives located on Wedel’s factory

E XE CU T I VE PRO FI LE

Sławomir Kluszczynski Sławomir is a manufacturing and supply chain professional with 20+ years of experience and focused on continuous improvement, operational excellence and effective leadership. He graduated from the Warsaw University of Technology, Mechanics of Energetics and Aviation faculty. He has also obtained an MBA degree from the Warsaw University/ University of Antwerp. He has gained his professional experience in companies such as: Master Foods, L’Oreal, GlaxoSmithKline, Avon and Cadbury Wedel, getting wide manufacturing and supply chain expertise. Currently, Sławomir holds the position of Chief Operating Officer at LOTTE Wedel

w w w.ma nufa c t uri nggl o b a l. com

103



rooftop while learning the basics of

Wedel, this way of thinking is ingrained

entrepreneurship and sensitising to

in the mindset of our people. We call

environmental issues. We also support

this process ‘Kaizen’ – to change for the

the construction of a city farm in Wawer

better. Wedel is in the early stages of

(Warsaw’s district), which will be a

its industry 4.0 development strategy,”

friendly educational space enabling chil-

Kluszczyński continues. In the last cou-

dren and adults to enjoy the benefits of

ple of years the company has begun to

nature as part of gardening and farming

develop and implement innovative tech-

workshops. Our employees are involved

nology to transform its operations.

in gardening and construction works,

To compete with increasing quantity

including those related to the construc-

demands of its ‘Ptasie Mleczko®’ prod-

tion of the playground.”

ucts, Wedel has developed innovative

When it comes to having a sustainable

industrial-sized technology to allow a

business for long-term growth, “innova-

faster decorative process. In addition, it

tion is needed to bring increased value

utilises sophisticated machinery to per-

to changing customer demand and

fect its packaging process to remove

industry trends,” says Kluszczyński. “At

preservatives: “We have developed a w w w.ma nufa c t uri nggl o b a l. com

105


LOTTE WEDEL

“Innovation is needed to bring increased value to changing customer demand and industry trends” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel 106

JANUARY 2020


tray with a unique foil that prolongs the freshness of the product inside,” says Kluszczyński. The company has also been utilising iTRAK, the Intelligent Track System by Rockwell – the most innovative motion solution on the market today – to standardise its product cartoning process by implementing magnetic drives. When it comes to digital transformation of its systems, Wedel is working on a scheduling tool to strengthen the company’s production line. “We are currently in the last development stage to digitally transform our scheduling system used for inventory management. With this new technology – which we have begun to use some aspects of – we will be able to optimise our processes to reduce cost and achieve a more efficient production line. To develop this system we have been utilising IBM’s sophisticated algorithms,” Kluszczyński notes. For Wedel, Artificial Intelligence (AI) and machine learning, is still conceptual, with discussions for using automation in its packaging processes underway. However, Wedel has begun gathering data to build the foundations for rolling w w w.ma nufa c t uri nggl o b a l. com

107


LOTTE WEDEL

out these innovative technologies. In addition, it is utilising 3D printing for its products. “We currently use the technology for sample products and the manufacturing of spare parts for some equipment,” highlights Kluszczyński. We use advanced technologies during consumer research in order to get to know our present and future clients’ needs in the best way. By analysing the micro-expressions of the face, or the brain’s areas of activity, we are able to understand the types of emotions and 108

reactions that our products awaken. Knowledge acquired in this way has been used to redesign of Ptasie Mleczko® packages, for example,” explains Kluszczyński. Other key areas the company is focused on include factory expansions and exporting products. Currently, export makes up 10% of the company’s turnover and Wedel’s products can be found in over 60 countries. The company also looks to other directions, for example, Russia. “We are spending a lot of resources and efforts to achieve our investments,” says Kluszczyński. “Our factory expansions have included new products, JANUARY 2020


1851

Year founded

HQ

Warszawa, Poland

hybrid warehousing, IT systems and production machinery; this expansion is scheduled to be complete in 2021. In addition, we are continuing to work on exporting to Russia. Today the economic climate is much better now, both in terms of currency rate, custom duties and increased acceptance of foreign products.� When it comes to partners, Wedel’s key long-term partnership is with its owner LOTTE. For both LOTTE and Wedel this partnership is mutually beneficial in that it provides further market access and helps to develop innovative products and business operations. At the same time, cooperation between Wedel and LOTTE is based on w w w.ma nufa c t uri nggl o b a l. com

109


LOTTE WEDEL

partnership. Wedel is autonomous and is locally managed: “The reason for this is that LOTTE trusts us and knows that we have the best knowledge of the Polish confectionery market and the most experience in running a legendary chocolate company. People create Wedel. This is why they continue to have the greatest impact on our organisation, our products, our communication and our relationship with the environment. The company’s long-term strategy is being 110

developed and enforced in Poland,” explains Kluszczyński. He also emphasises that “Wedel is very proud to partner with big international and local networks and suppliers. We collaborate with pride, achieving sophisticated solutions and tailor-made offers for customised products. In return we are present in a wide network and benefits from long-term sustainable business partners.” Reflecting on the company’s transformation to date, Kluszczyński believes Wedel’s biggest success is its ability to maintain its heritage products while continuing to innovate and transform in order to keep up with changing JANUARY 2020


111

industry trends. This is reflected in the

quality and the best taste. At this point,

company’s mission: “We are constantly

I would like to mention our other value:

changing to make us and our clients

‘I provide quality’. However, Wedel

happy’. Kluszczyński attributes the

wants to continue to strive towards a

company’s overall ability to achieve

more sophisticated factory that has

this to its people, explaining that “we

the capacity to harness innovative

value our people at Wedel. Our Wedel

technology. As a result we will have

family’s dedication to ‘Kaizen’ is what

the ability to keep up with customer

drives our success. Also, continuous

demand and changing trends, to fur-

improvement is inscribed in one of our

ther drive a sustainable business both

organisational values ​​- I question the

environmentally and operationally,”

status quo.”

concludes Kluszczyński.

“Ultimately, at Wedel, we always want to have our heritage of guaranteed w w w.ma nufa c t uri nggl o b a l. com


112

EMBRACING D IN MANUFACT

JANUARY 2020


DIGITISATION TURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

w w w.ma nufa c t uri nggl o b a l. com

113


SAS AUTOMOTIVE SYSTEMS

With the manufacturing industry changing, Freddy Torres, Head of Corporate Operational Excellence at SAS Automotive Systems, discusses how his firm is utilising technology to advance operations

114

W

ith the manufacturing industry undergoing the fourth industrial revolution (industry 4.0), businesses worldwide are seeking

how new technology such as artificial intelligence (AI) and machine learning (ML) can be leveraged to accelerate operations. In the case of SAS Automotive Systems, Freddy Torres, Head of Corporate Operational Excellence, affirms how important digitisation has become as his company seeks to embrace new technology, particularly in its assembly process. “We’re always looking at how we can improve our assembly process and seek a solution which will enable us to increase our operational performance and find a way to create real more value in our operations,” says Torres. SAS employs approximately 4,300 people worldwide and produces around 5.2mn cockpits annually. Operating as a joint

JANUARY 2020


115

w w w.ma nufa c t uri nggl o b a l. com


SAS AUTOMOTIVE SYSTEMS

116

venture between two market lead-

increasing the robustness and capa-

ers, Continental and Faurecia, SAS

bilities of our tightening process,”

conducts operations from 21 locations

explains Torres. “Many companies

worldwide. Sound technical knowledge

collect this kind of information mainly

and strict quality standards form the

for traceability and process control. As

basis of the firm’s efficient processes

you understand more about the pro-

and reliable services.

cess by analysing its behaviour, more

As part of its digitisation journey,

effective improvement actions can be

SAS is making its first steps in taking

taken to accelerate its capability and

advantage of the actual Data Lake in

product quality which reduces opera-

order to create more value. “We deal

tional risk.” To amplify this, SAS has

with several safeties critical com-

successfully trialled three examples in

ponents so it’s important to continue

its digitisation journey so far featuring

JANUARY 2020


CLICK TO WATCH : ‘SAS AUTOMOTIVE SYSTEMS HD’

its paperless approach, 3D printer for

he lived for 10 years, Torres’ first role

tooling and web-applications such as

was as a research and development

“Truck Arrival” reducing waste in its

engineer in Okegawa, Japan, before

operations. “We are proud of having

moving onto work as a quality engineer

internally developed an electronic-

prior to leaving for Germany in 2011.

paper solution that adapt to our needs,”

Torres reflects on his unique begin-

he says. “This will enable us to keep

ning and believes the life experience

reducing our carbon footprint as we

acted as a springboard for where

deploy the technology in our plants.”

he is today. “That’s where I learnt my

It’s fair to say that Torres experi-

craft,” affirms Torres. “I was the only

enced a different start to his career

foreigner working at my former com-

from competitors in the field. Having

pany in one of two plants located in

begun his journey in Japan, where

Yamagata Prefecture, Japan; I really felt w w w.ma nufa c t uri nggl o b a l. com

117


Top Top10 10 Strategy Strategy Execution Execution trends trends 0101 Strategic Strategicexecution execution TheThe CXO demand a platform to to enable strategy CXO demand a platform enable strategy execution to be managed with the same disciplineasas dailybusiness. business. execution to be managed with the same discipline daily

0303

0202

04 04

05 05

Dedicated Dedicated platform platform

Data security Data security and reliability and reliability

dedicatedstrategy strategy AAdedicated execution C-suite execution C-suite

Specialised consulting firms Specialised consulting firms willwill be replaced internal strategy be replaced withwith internal strategy execution teams a dedicated execution teams andand a dedicated solution to support them. solution to support them.

With risks in data reliability and With risks in data reliability and security, leaders recognise critical security, leaders recognise critical data tools deserve more data andand tools deserve more respect than Excel and SharePoint. respect than Excel and SharePoint.

A dedicated C-suite leader A dedicated C-suite leader and supporting team will and supporting team will established deliver bebe established toto deliver an organisation’s strategy. an organisation’s strategy.

0606 Facts and evidence Facts and evidence take precedent take precedent

Guaranteed delivery delivery Swift, guaranteed execution of the

Swift, guaranteed the a higher strategy will beexecution provided of through volume scope deliverables, strategy willof besmaller provided through a higher aligned to eachscope otherdeliverables, and the greater goal. volume of smaller aligned to each other and the greater goal.

Forleaders leadersto tosuccessfully successfullycascade cascade For theirstrategy strategywith withits itsinitiatives initiativesand and their respectivecomponents componentsthere therewill will be be respective callfor foraadigital digitalplatform platformto toachieve achieve aacall thison onan anorganisation-wide organisation-widescale. scale. this

07 07 digitalboardroom boardroom AAdigital monitors performance monitors performance

Digital strategy execution boardrooms will offer Digital strategy execution boardrooms will offer real-time scalable insights aross the whole real-time scalable insights aross the whole organisation, monitoring execution through organisation, monitoring execution through progress and key outcomes in KPIs. progress and key outcomes in KPIs.

With global delivery across With global delivery across thousands of individuals and their thousands of individuals and their respective teams, common facts and respective teams, common and of evidence will become thefacts bedrock evidence will become the bedrock of performance management. performance management.

08 08Guaranteed

Global Global deliveryand and delivery execution execution

09 09

Procurement Procurement focus focus

With the stakes so With thewith stakes so to the high regards successful execution high with regards to theof the strategy,execution a formal, of standardised successful the strategy execution platform strategy, a formal, standardised procurement process will emerge, strategy execution platform driven by the CXO will emerge, procurement process driven by the CXO

10 10 Insights driving Insights action driving

action

Predictive external analytics Predictive external and AI, aligned to analytics your enterprise solution, and AI, aligned to yourwill alert your organisation enterprise solution, to willfuture alert risks of your strategy’s failure. your organisation to future risks of your strategy’s failure.


Many of the world’s largest businesses still use outdated approaches when it comes to executing strategy. Simon Crowther, CEO, i-nexus and Freddy Torres, Head of Operational Excellence, SAS Automotive Systems outline how digitalising strategy execution can be used to safeguard existing processes, continuously improve and deliver results. The time-consuming task of tracking and managing goals, programs and performance using methods like Excel and PowerPoint is an outdated way of

ForSAS SASAutomotive, Automotive,clearly clearlydefined definedand and For bindingstandards standardsare arethe thebasis basisfor forcreating creating binding reliable and sustainable products which reliable and robust processes to ensure are of high quality and performance. the customer satisfaction. At the same At time, same time, that means uncovering and that means uncovering and using the using potential for improvements and also potential for improvements and constantly constantly adapting processes. adapting to new customer needs. Real-Time Project Tracking

managing strategy execution that is still widely

“Our benchmark is to utilise the most

adopted by many global organisations today.

modern methods and work at a constantly high level of quality.

With 90% of strategies failing due to poor execution

Working with i-nexus has meant that

(Kaplan & Norton), it’s no surprise that strategy

we can maintain the exceptionally

execution is an emerging priority for C-level execu-

high standards our clients expect,

tives who demand a single dedicated platform to

while growing our business.”

transform, run and improve their businesses. “For us, quality relates to every area of the company, “Traditional approaches to managing

so we place great importance on continuously im-

strategy execution don’t offer the

proving quality.” Says Freddy Torres, Head of

versatility, collaboration and security

Operational Excellence at SAS Automotive Systems.

needed to successfully deploy, manage and optimise strategy at scale”, says Simon Crowther, CEO at i-nexus. “Strategy execution software offers control, accountability and visibility in an increasingly complex world. Experience has shown us that for leaders to suc-

Before using i-nexus, Automotive Before using i-nexus, SASSAS Automotive usedused Excel Excel to manage quality. The switch to the to manage projects and improvement initiatives. i-nexus digital platform that uncovering The switch to the i-nexus means digital platform means the uncovering potential for and adapting that theimprovements potential for improvements processes now easier. Theeasier. system has also and adaptingisprocesses is now The system driven assurance that projects are aligned has also driven assurance that projects are to the corporate strategy. aligned to the corporate strategy.

cessfully cascade their strategic plan across the whole organisation, on a global scale, a digital platform is a necessity.” Simplifying the time-consuming and complex task of delivering successful strategy execution is helping i-nexus’s market-leading clients like SAS Automotive Systems, Syngenta and CRH to gain competitive advantage.

“By digitalising all of our improvement projects and our gate review process in i-nexus, we are now able to track the value and status of each project. We can analyse the actions that are having a positive impact in real-time and intervene early to optimise and adjust.”

Take the free i-nexus StratexAssess Strategy Execution Maturity Assessment at www.stratexassess.com. Contact Matthew Redwood on +447917 435232.


SAS AUTOMOTIVE SYSTEMS

120

the senior people welcomed me and

some routines in daily life known in the

the experience helped me massively,

western world as kaizen tools are an

particularly in learning the meaning of

intrinsic part of the Japanese culture.”

Genba.” Moreover, Torres stresses the

Having made the switch to his cur-

influence “kaizen” (the Japanese word

rent position at SAS in 2017, Torres

for continuously improving all business

acts as a key link between several

functions across all areas of the pro-

Corporate Functions and the plants.

duction line) is having on firms in Japan.

“We want to increase the level of

“There is a big focus on the importance

alignment and transparency in the

of kaizen across all companies in

organisation.” Serving a range of high-

Japan,” says Torres. “I realised early

profile automotive customers such as

on during my time in the country that

FCA, Daimler, Volkswagen Group and

JANUARY 2020


121

E XE CU T I VE PRO FI LE

Freddy Torres, Freddy Torres, M.Sc. Material Sciences Engineer and automotive professional with more than 15 years of experience in industry in areas such as R&D, Quality Management and Lean Manufacturing. After starting his career in automotive industry in Japan moved to Germany in 2011 where he has hold several Regional and Global functions in Quality and Lean Manufacturing since then.

w w w.ma nufa c t uri nggl o b a l. com


SAS AUTOMOTIVE SYSTEMS

122

JANUARY 2020


123

“ There is a big influence on the importance of kaizen across all companies in Japan” — Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems

w w w.ma nufa c t uri nggl o b a l. com


SAS AUTOMOTIVE SYSTEMS

1996

Year founded

€633mn Approximate revenue

124

4,372

Approximate number of employees

Tesla, SAS delivers tailored customer service for each of its clients. Torres reflects on the role partnerships play on his firm’s operations, particularly its strategic collaboration with SK Automation. “SK Automation is becoming a key business partner that plays an important role in the establishment of our new production facilities in Europe and Asia. It has demonstrated the speed and effectiveness we need in JANUARY 2020


125

this kind of business,” explains Torres. “We must have a dedicated approach to each customer in order to fulfil their requirements. Take Tesla for instance, we’re learning how to build with it because it has a completely different approach to the traditional way of doing things and it’s important we adapt our services to suit each client’s different needs.” With a firm customercentric approach in mind, Torres w w w.ma nufa c t uri nggl o b a l. com


SK Automation Group Automation solution provider Turn key project machine builder Assembly, test, welding, industry software Focus on battery module pack and chassis system production line 600+ Employees world wide Facility in Europe, China and USA

Customer Reference

Contact SK Germany Address : An der Bรถrse 2, 30159 Hannover, Germany

Tel : 0049 -151 4264 5273

Email : sales@sk1.net.cn

Website : www.sk1.net.cn


127

Tesla ©

stresses the importance of ensuring

necessarily mean that we need to

customers obtain the best value. “As

introduce new technologies. It can be

we are in the JIS-JIT business, our

how we operate as a business to work

processes must be 100% robust

out ways to reduce costs and provide

so innovation remains a permanent

customers with a competitive cost. We

challenge for us,” he says. “We need

want to show that we’re 100% available

to search for opportunities that will

for our customers at all times.”

enable us to go the extra mile in com-

With the future in mind, Torres affirms

parison to our competitors and ensure

the aim is to ensure SAS can continue

we always deliver the best value for

to go from strength to strength as it

our customers. Innovation doesn’t

looks to expand over the upcoming w w w.ma nufa c t uri nggl o b a l. com


SAS AUTOMOTIVE SYSTEMS

128

JANUARY 2020


“ We want to show that we’re 100% available for our customers at all times” Volkswagon ©

— Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems

years. “Growth is the most important thing. Our expectation is to ensure we grow in North America and China because we believe that those countries remain our biggest chances of increasing our manufacturing footprint,” summarises Torres. “There’s also opportunities here in Europe so we must stay alert to ensure SAS can continue to grow.”

w w w.ma nufa c t uri nggl o b a l. com

129



Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.