The manufacturing industry continues to navigate the challenges of low overall equipment effectiveness (OEE), supply chain disruptions, a shortage of skilled employees, and limited technology integration and poorly performing digital transformation initiatives. Facing immense pressure across multiple touchpoints from geopolitical instability through to economic and market volatility, manufacturing firms need smart, fast and efficient routes to optimising processes and overcoming challenges.
The challenge within those challenges is, however, finding the right technology.
McKinsey found that only 31% of companies managed to reach expected revenue gains and only 25% achieved the expected cost savings they’d planned for their digital transformation strategies.
Companies can see the potential value provided by digital, but this value remains consistently out of reach. They need their technology to directly address some of the core challenges, but instead of fixing the problems, tech is creating them.
Finding the right way through the complexity
It comes down to strategy and structure. For example, if a solution is implemented in one part of the business to address low OEE, it will modernise and optimise the processes and structures within this area. They don’t revise the entire business, just one part of it. The result is a tangle between modernised and legacy that ultimately pulls both sides down.
A strategic approach to manufacturing modernisation and transformation means applying digital throughout the organisation. Success takes the value of the technology throughout the estate with a digital transformation that encompasses every part of the business. This then must be bolstered by skills development, training and coordination of the new technology capabilities throughout the company’s ecosystem.
Translated? Technology is an enabler, but it has to be the right solution implemented holistically.
The challenges: Combat evolved
Your business needs a suite of specialised and intelligent business applications designed to integrate different processes, systems and information into a holistic solution that helps you overcome legacy challenges. Microsoft Dynamics 365 Finance and Operations (D365 F&O) is designed to create efficiencies and connect the digital dots throughout the organisation, and it provides you with real-time insights, predictive and proactive visibility into systems, and the data you need to shape business agility and growth.
Low OEE – there is a risk that productive capacity can be reduced by as much as 15% if maintenance isn’t managed effectively. Using the right technology, you can ensure your business achieves an OEE as high as 85% thanks to asset insights that allow for preventative and predictive maintenance.
Supply chain disruptions and shortages – D365 F&O can help you plan for natural disasters, shortages, delays and other unexpected disruptions. Remember the Ever Given event in 2021? It cost the global economy approximately $400 million an hour. While this was a stand-out event, companies can fortify their supply chain resilience using D365 F&O for visibility into bottlenecks, to proactively manage disruptions, real-time data and analytics for quick and efficient decision-making, and strategic contingency planning.
Cohesive system integration – D365 F&O unifies and automates business processes. You can integrate your financial data into core processes while automating tasks to boost productivity, support evolving business models and maximise financial performance. It is also seamlessly integrated with all other Microsoft products and solutions which means data visibility and management is cohesive throughout the business.
Integrating AI and IoT – along with other emergent and essential advances in technology such as automation and machine learning, AI and IoT add immense value to the manufacturing organisation. Microsoft’s prioritisation of AI and IoT within its architecture puts organisations on the front foot – you can leverage these technologies with ease within the ecosystem and evolve their use cases seamlessly.
D365 F&O also helps manufacturing organisations enhance quality and compliance, streamline processes, and scale to meet demand. It provides manufacturers with visibility into operations, sustainability, compliance and regulatory requirements and performance, and it empowers the business with real-time insights.
Mint has been working with Microsoft to create next-generation solutions for manufacturing organisations. Specialising in D365 F&O, among other core Microsoft technologies, Mint will work with you to ensure you not only choose the right technology, but implement it strategically for measurable results.
