Manufacturers that best navigate the challenges of the world they operate in have a number of characteristics in common.
1. A clear vision of how their manufacturing operation looks like and operates in three to five years’ time.
They have decided which markets and customers they want to serve and understand what it takes for their manufacturing operation to enable business success. They focus on a “vital few” strategic initiatives with clear deliverables, and timelines and drive consistent execution.
For most manufacturers business conditions are more volatile and ambiguous than ever. Therefore, they review on a regular basis their strategic initiatives in the context of developing conditions and adapt. However, their long-term course is stable.
2. An aligned operating model
Winning manufacturers align their operating model with their vision. They know that if they don’t, their defacto strategy (their day-to-day operation) will deviate from their intended strategy. And they keep organisational complexity low as complexity drives costs up and speed and flexibility down.
This means well-aligned and “leaned out” business processes, KPI’s that help to control the operation, unambiguous roles and responsibilities, decision power low in the organisation, a reporting structure that creates transparency and insight in the actual performance, and a meeting structure that facilitates effective, fact-based decision making.
3. Employees with a high level of ownership
Employees at all levels in the organisation feel co-owners of the company and demonstrate a relentless drive to eliminate performance bottlenecks.
They have the skills to be successful and make sure they acquire new skills in line with the evolving needs of the company.
4. Drive to eliminate complexity
Complexity creates costs and inflexibility. They consider each and every type complexity: product and service design, the design of production means, total cost of ownership of purchased goods and services, cost of ownership of a supplier, contractor or client,
5. Continuous investment in smart manufacturing
With an increasing digitalisation of their operations, they gain significantly in speed, flexibility, and productivity. They develop new business strategies and innovate products and services portfolios. In developing smart manufacturing, they not only focus on selecting the right technology, analytics programs, and algorithms but also nurture a digital culture and skills.
Ever since 2006 we have been supporting manufacturing companies to deliver on their vision. Please get in touch to explore how we could support you in becoming one of the winners.
Maintenance maximises its value for the company by combining high asset effectiveness with low costs. We distinguish three main domains: (1) Reliability Management, (2) Reliability Improvement, and (3) Smart Maintenance.
1. Reliability Management
The domain of Reliability Management focuses on achieving the maximum reliability and availability of assets. In this domain, Maintenance and Production work hand in hand. They utilise the assets as intended and ensure that the necessary basic conditions are maintained. The quality of the interaction between Operators, Maintenance Technicians, and Maintenance Engineers determines the outcome.
Reliability Management is a combination of Corrective and Preventive/Condition-based Maintenance, where the behaviour of the assets, root causes of (potential) failures, performed maintenance work, and asset usage are carefully documented. There is a strong drive to continuously improve costs and efficiency within set frameworks. The insights provided by Reliability Management form the basis for Reliability Improvement
2. Reliability Improvement
Reliability Engineers and Engineers analyse the behaviour and usage of assets and enhance set frameworks by reducing the required maintenance of assets through improved maintenance routines, component redesign, and the introduction of new components. They prepare the organisation and assets for changing requirements, such as emissions and energy usage, as well as evolving market conditions, such as volume, product types, and the level of required flexibility.
3. Smart Maintenance
By utilising sensors and digital technologies, high-quality data becomes available, enabling the prediction of asset failure risks and the execution of maintenance precisely at the right time. Condition-based Maintenance transitions into Predictive Maintenance, which is carried out based on a forecast derived from the analysis and evaluation of critical parameters of asset degradation.
Other practical applications of digital tools within Maintenance include smart glasses, which allow technicians in the field to see where they need to perform which maintenance or to be remotely supported by specialists. Handheld devices, such as phones and tablets, provide work instructions and real-time information about spare parts, along with the ability to document performed work and observations immediately. RFID codes are used to identify assets with direct access to work orders and fault history. An integrated CMMS (computerised maintenance management system) or add-ons ensure efficient work order management.
Attaining world-class supply chain management and collaboration means developing and managing supply chains and partnerships so that your company is flexible and resilient, with response times and delivery performance that will beat the competition.
Future supply chains need to cope with the long-term trends of mass customisation, ever shorter life cycles and the more recent volatile conditions that are here to stay. In these market conditions, many companies will benefit from a “smart” supply chain, which combines the drive to eliminate waste (i.e. anything that doesn’t add value) with agility and responsiveness (i.e. the ability to handle unpredictability with speed and flexibility).
A smart supply chain enables fast, flexible supply of tailor-made products at competitive cost levels. It excels in having few product and process quality issues, reduced operational costs, increased flexibility, and high internal process speeds. It integrates customers and business partners to create value in both the primary and support processes.
Building a smart supply chain requires a holistic approach that integrates product and process design, organisation design, and digital solutions:
- an unambiguous supply chain strategy
- product configuration for late postponement
- processes that are aligned with strategy and designed for minimal order cycle times
- a flat organisation with multidisciplinary teams and no silos
- integration with partners throughout the supply chain
- an aligned performance management system with real-time information from the end-to-end process
- supply chain visibility with the ability for stakeholders throughout the supply chain to access real-time data related to the order process, planning, inventory, delivery and potential supply chain disruptions
Disciplined cash and working capital management drives good operational and financial performance. However, performance in order to cash, inventory management and procure to pay slumped over the 5 years prior to the COVID outbreak. A closer analysis reveals that inventory optimisation poses companies the biggest challenge – both in volatile and non-volatile markets. More Cash – Lower Inventory – Better Service, good inventory management is the key.
DELIVER DOUBLE DIGIT INVENTORY REDUCTIONS AND MAINTAIN OR IMPROVE SERVICE LEVELS
Decades of experience have taught us that going straight for the inventories themselves is both the quickest and the surest way of delivering a high-performing supply chain. Inventory sits right at the heart of your supply chain and is both a symptom and cause of your supply chain performance. Getting inventory right keeps your customers happy, increases flow and reduces cost and waste and frees up cash.
At Axisto, we combine the practical business focus of management consulting with the high-speed analytical capability of advanced information technology. We rapidly distil practical insights from data in Enterprise Resource Planning (ERP) systems. Our people concentrate on the human challenges of implementing and sustaining resilient and lean supply chains.
Our unique approach to supply chain puts inventory optimisation front and centre. This allows us to help deliver double digit reductions in inventory while maintaining or improving service levels – at speed in a low risk manner compared to traditional approaches.
OUR INVENTORY MANAGEMENT PROPOSITIONS
Axisto provides three inventory management propositions: inventory optimisation programmes, inventory analytics and inventory maturity assessments.
Our starting point with most clients is a quick scan. On the basis of just 3 standard reports from your ERP system, we quantify improvement potential item by item as well as overall. The output is both an immediate high-level quantification of improvement potential and the basis of a road map to deliver sustainable improvements quickly.
INVENTORY OPTIMISATION PROGRAMMES
We provide expert analytics and effective change management backed up by a clearly measurable business case. Improvements to inventory positions of 20% or more, sometimes much more, are usually achievable within the first year, at a high return on investment.
INVENTORY ANALYTICS
Do you find it difficult to really understand what your inventory data is telling you, or what you should do about it? Do you have optimisation tools that are difficult to use or which give results you know to be wrong, but you’re not sure why? With the proprietary technology that we use, we provide clients with rapid actionable insights into their inventory data.
In addition, we help clients with a range of targeted analytical exercises, ranging from strategic inventory positioning (where in your supply chain should you hold inventory?) through to setting inventory policies for items that are hard to optimise, such as spare parts, or make to order products.
INVENTORY MATURITY ASSESSMENTS
Inventory is influenced by almost every aspect of your business. Therefore, it can be hard to know at an enterprise level where the biggest opportunities for further improvement are, or how you compare to your competitors.
Axisto can take the temperature of your inventory management. We combine a granular, bottom-up quantitative assessment of your potential for improvement with a qualitative overview of your people, processes and systems, including relevant benchmarks, to give you actionable insights into where to find the next step change in your performance journey.
A CASE
CHALLENGE
A medium-sized industrial manufacturing firm with a strong market position and profitability had little historical focus on inventory. The consequence was that inventory was increasing gradually. It was time to act.
RESULTS
Inventory was reduced by more than 50% from the initial baseline over a period of 3 years, while service levels were maintained or improved. Improvements in the underlying data led to a better understanding of how and why to act – inventory management capability was significantly developed within the client’s teams.
SOME QUOTES
“We finally have full transparency of what we have, so we can make fact-based decisions on a weekly basis.” – Automotive manufacturer
“Since starting a programme, we have reduced our inventories by over 50%.” – Industrial manufacturer
“The results are exceptional and have made a major difference to our cash flow.” – Global manufacturing company
“The inventory programme brought a wide range of process issues into sharp focus, with an impact much broader than just inventory.” – Market-leading manufacturer
Industry 4.0 means the growing together of the digital and manufacturing industries. All physical assets are digitised and integrated into digital ecosystems with partners in the value chain.
Industry 4.0 represents a huge step in performance. You can improve your speed, flexibility and productivity by 40%. You can develop a new business strategy and take the opportunity to innovate your products and services portfolio.
Axisto works with you to map the digital maturity of your business with our AIMA (Axisto Industry 4.0 Maturity Assessment) and choose the elements that will deliver the most value in line with your vision. Well-chosen pilots will help you get on the learning curve and achieve some initial success. You will gain insights into the skills gap, and this can direct your HR strategy. We can help you to properly organise data analytics and develop your organisation more digitally. Axisto’s experience will ensure you avoid any pitfalls on your journey to becoming a digital enterprise.
Importantly, the biggest challenge for a company is not in choosing the right technology, but in having a lack of digital culture and skills in the organisation. Investing in the right technologies is important – but the success or failure does not ultimately depend on specific sensors, algorithms or analysis programs. The crux lies in a wide range of people-oriented factors. Axisto supports you in the development of a robust digital culture and ensures change is developed from within and driven by clear leadership from the top.
An autonomous operating model is not just a digital upgrade of your current operating model. It is a radically different way of conducting your business.
INTEGRATED PERFORMANCE MANAGEMENT
Primary and support business processes are integrated. This allows the financial department to act in a much more agile manner. The cash flow is visible on an ad-hoc basis, which improves planning and analysis abilities. A forecast supported by the IT system replaces manual forecasts. Once determined, KPIs make controlling easier through automated warning messages, thus allowing immediate intervention to take place.
The budget process is changed and no longer runs along the individual business functions (such as Sales, Marketing, Production, IT), but along value drivers (sales quantities linked to market data, prices in combination with customer clusters, etc.). At any time, the balance and P&L for the company as a whole and for each of the departments can be determined. This makes it possible to sail sharply close to the wind.
The entire supply chain uses a single point of truth for real-time information The transparency makes it possible to simulate different scenarios quickly and easily, but ultimately people make the decisions. The effect of decisions is calculated and communicated in real-time throughout the end-to-end supply chain. Margin, order cycle time and cash can be predictively optimised based on a holistic view of supply chain performance, stock levels and trend analyses.
MOBILE
Mobile devices are an essential interaction channel for both customers and employees. As a result, the management and control of the integration of different mobile devices and of the mobile applications are strategic factors. New and existing mobile technologies are easy to integrate.
AGILE COLLABORATION
Collaboration is largely multidisciplinary and without hierarchy. Knowledge and skills are not things that sets you apart from others in the company – they are things you make available to the team.
Collaboration must be able to be set up ad hoc at any time, from anywhere – even across geographic boundaries. Active exchange of ideas, knowledge and expertise requires an appropriate incentive system. This system focuses on the group outcome and allows them to participate in the overall success.
Social media and collaboration technologies are a central element of communication, knowledge transfer and teamwork. This applies to interaction with customers, employees and business partners. The technologies are used for the interactive exchange of information and content, thus making collaboration more effective, and they are increasingly focused on establishing interaction patterns in a digital culture.
The aim of redesigning the office environment is to increase cooperation and creativity in the company. This includes, for example, creating zones of creativity in offices, building open structures where there are no fixed desks and integrating the employee’s own home office.
STRATEGIC WORKFORCE MANAGEMENT
Digitisation requires new skills and abilities on the part of employees. The development of these competencies in the workforce requires strategic planning to address the requirements in the long term. The use of analysis methods not only enables the optimised deployment of employees, but also clarifies the question about which skills are needed now and in the future and how to get them as quickly as possible.
STRATEGIC WORKFORCE DEVELOPMENT
Knowledge and experience are becoming obsolete at an ever-increasing rate, and roles and tasks are constantly changing. The employees are constantly challenged to learn new things, to participate in training for new tasks and to adapt to role changes.
Our More Optimal Platform provides companies with solutions to model, plan and optimise their business operations from end to end. Our platform can handle scenarios that are considered too complex for other software solutions: planning and optimising complex production value networks, optimising intricate logistics operations, and planning and scheduling highly diverse workforces.
Key capabilities include predictive and prescriptive data analytics, forecasting, what-if scenario planning, collaborative decision-making, disruption handling and production scheduling.
The platform is hosted in the cloud and no separate tooling is required. You can model supply chain applications in your browser where end-users use it as well – what you see is what you get!
Supply chain modelling requires no code or specific calculations, and visualisation can be created using a small amount of easily understood code.
Powerful algorithmic building blocks for optimisation come out of the box and are fully integrated in the platform.
Serverless scaling enables multiple algorithms to be run in parallel so that large supply chain conundrums can be tackled.
Maps, 3D visuals, Gantt charts and other charts come out of the box and can easily be configured by the modeler. Custom visuals can be created using low-code and may be shared with other modelers in the More Optimal community.
The calculation engine makes sure you can focus on what needs to be calculated; dependencies between calculated fields are automatically handled by the platform.
Your operating result is determined by the “behaviour” of your business processes. Why is the order cycle time for order A so much shorter than that for B? Where are the bottlenecks in my processes? Where does rework occur and what does it look like? What can I do to speed up my cash conversion cycle? And what about compliance?
Axisto answers these and many other questions with the help of process mining. Process mining is a data-driven analysis technique that shows actual process behaviour. We use this technique as an analysis tool for process and performance improvement. And it can either be applied for internal/external audits or be integrated into day-to-day operations to increase insight and support decision-making. Axisto guides you through the maze of different process mining tools, helps you tailor-make a solution that is right for you, and supports you towards a successful implementation.
Although companies have automated many of their processes, much of the work is still done manually and routinely. For example, employees have to manually enter data and switch between systems, applications and screens in order for the critical business processes to function. Such activities have no added value in themselves. They take time, pose an inherent risk and are expensive.
Axisto replaces these tasks with Robotic Process Automation (RPA), which performs the tasks 24/7, quickly and error-free. In this way, employees can contribute added value by focusing their attention and expertise on those tasks that are important. Freeing up time simplifies the transition from reactive to proactive operational processes. RPA is highly flexible – it can be used in many different areas and can be scaled up and down quickly. RPA adds value by better exploiting and expanding the possibilities of machine learning and artificial intelligence. Axisto provides advice to find your best options and supports you to implement these new ways of working.
Disciplined cash and working capital management drives good operational and financial performance. However, performance in order to cash, inventory management and procure to pay slumped over the 5 years prior to the COVID outbreak. A closer analysis reveals that inventory optimisation poses companies the biggest challenge – both in volatile and non-volatile markets. More Cash – Lower Inventory – Better Service, good inventory management is the key.
DELIVER DOUBLE DIGIT INVENTORY REDUCTIONS AND MAINTAIN OR IMPROVE SERVICE LEVELS
Decades of experience have taught us that going straight for the inventories themselves is both the quickest and the surest way of delivering a high-performing supply chain. Inventory sits right at the heart of your supply chain and is both a symptom and cause of your supply chain performance. Getting inventory right keeps your customers happy, increases flow and reduces cost and waste and frees up cash.
At Axisto, we combine the practical business focus of management consulting with the high-speed analytical capability of advanced information technology. We rapidly distil practical insights from data in Enterprise Resource Planning (ERP) systems. Our people concentrate on the human challenges of implementing and sustaining resilient and lean supply chains.
Our unique approach to supply chain puts inventory optimisation front and centre. This allows us to help deliver double digit reductions in inventory while maintaining or improving service levels – at speed in a low risk manner compared to traditional approaches.
OUR INVENTORY MANAGEMENT PROPOSITIONS
Axisto provides three inventory management propositions: inventory optimisation programmes, inventory analytics and inventory maturity assessments.
Our starting point with most clients is a quick scan. On the basis of just 3 standard reports from your ERP system, we quantify improvement potential item by item as well as overall. The output is both an immediate high-level quantification of improvement potential and the basis of a road map to deliver sustainable improvements quickly.
INVENTORY OPTIMISATION PROGRAMMES
We provide expert analytics and effective change management backed up by a clearly measurable business case. Improvements to inventory positions of 20% or more, sometimes much more, are usually achievable within the first year, at a high return on investment.
INVENTORY ANALYTICS
Do you find it difficult to really understand what your inventory data is telling you, or what you should do about it? Do you have optimisation tools that are difficult to use or which give results you know to be wrong, but you’re not sure why? With the proprietary technology that we use, we provide clients with rapid actionable insights into their inventory data.
In addition, we help clients with a range of targeted analytical exercises, ranging from strategic inventory positioning (where in your supply chain should you hold inventory?) through to setting inventory policies for items that are hard to optimise, such as spare parts, or make to order products.
INVENTORY MATURITY ASSESSMENTS
Inventory is influenced by almost every aspect of your business. Therefore, it can be hard to know at an enterprise level where the biggest opportunities for further improvement are, or how you compare to your competitors.
Axisto can take the temperature of your inventory management. We combine a granular, bottom-up quantitative assessment of your potential for improvement with a qualitative overview of your people, processes and systems, including relevant benchmarks, to give you actionable insights into where to find the next step change in your performance journey.
A CASE
CHALLENGE
A medium-sized industrial manufacturing firm with a strong market position and profitability had little historical focus on inventory. The consequence was that inventory was increasing gradually. It was time to act.
RESULTS
Inventory was reduced by more than 50% from the initial baseline over a period of 3 years, while service levels were maintained or improved. Improvements in the underlying data led to a better understanding of how and why to act – inventory management capability was significantly developed within the client’s teams.
SOME QUOTES
“We finally have full transparency of what we have, so we can make fact-based decisions on a weekly basis.” – Automotive manufacturer
“Since starting a programme, we have reduced our inventories by over 50%.” – Industrial manufacturer
“The results are exceptional and have made a major difference to our cash flow.” – Global manufacturing company
“The inventory programme brought a wide range of process issues into sharp focus, with an impact much broader than just inventory.” – Market-leading manufacturer
