Outlook
Shifting Automotive Dynamics Demand More Agile
IT Solutions
Te automotive industry is a continually growing and shiſting sector. Te resur- gence of production to nearly 16 million units per year—coupled with the rapid growth of technology within vehicles, continued pressure on margins, scarce access to capital and a shortage of skilled workers in the industry—is leading to ma- jor challenges throughout the supply chain. Automotive manufacturers or suppliers that are not highly attuned to these shiſting dynamics are destined to be leſt behind. In order to maintain this heightened
state of readiness and responsiveness, organizations must rely more on the IT solutions to provide a competi- tive advantage or even just stay in the game. Emerging technology offers the necessary speed and insight to power qualitative change for the manufac- turing process. Next-generation ERP systems with analytics and collaborative abilities make the difference between just adequate project management and moving to the forefront of innovation. Agility in manufacturing means
more than increasing the end-to-end throughput. Speed is only one factor— agility also relies on access to qualita- tive insights; the ability to adapt and respond to external requirements can be a litmus test for process modernization. Fortunately, advanced ERP technologies simplify these complex processes. Automatic monitoring and alerts
can assist with tracking key issues and abnormal events, both internally and within the supply chain. Real-time reporting tools can also help personnel throughout the plant to self-monitor their goals, key performance indicators and driving factors.
Collaboration tools are another way
that ERP technology is keeping up with the changing demands. With resources scarce and organizations running with lean workforces, the social enterprise is a way to gain productivity through collaborative thinking. Manufacturers and suppliers can leverage solutions that allow real-time collaboration and sharing of data, such as diagrams and 3D images.
Advanced ERP technologies sim- plify the complex processes required for agility in manufacturing.
Seamless connectivity throughout
the manufacturing supply chain allows auto manufacturers to maintain tighter version controls, manage ripple-effect changes, track critical escalations and capture relevant dialog in context to the product. Because dialog is captured in the ERP system in context of the component identification number or the vehicle model, the content can be ref- erenced for future decisions, reporting and process improvements— or when legal or compliance issues arise. Collaboration tools also play an
important role in speeding product introductions while reducing risk due to poor cross-discipline knowledge. Great- er cooperation between teams helps to speed the entire product lifecycle, meaning manufacturers can bring new concepts to market quickly and respond to shiſts in consumer preference. As consumer demand for specialized
products increases, this collaborative ability becomes increasingly important. Tis built-to-order trend, including col- ors and aesthetics, to accessory features
is finding its way into specialty vehicles and luxury autos more and more oſten. A robust IT infrastructure is needed
to control a business model with a large percentage of on-demand orders. Mass production also demands advanced ERP solutions as vehicle components increase in complexity and high-tech features, such as sensors, are embedded in axles and air- bags. In order to keep pace with the height- ened complexity of component versions, regulation compliance and certification re- quirements for these ever-changing parts, manufacturers must rely on technology solutions. Manual processes, spreadsheets, traditional reports and e-mail notices are just not reliable enough. With collaboration tools, questions can
be asked and answered immediately with- out costly delays and last-minute change orders, and shop-floor scheduling shiſts can be deployed with minimal disruption to the overall process flow. Unlike simple phone calls, collaboration tools record the communication. It becomes part of the his- torical ERP data, documented in context of the shiſt, machine and product. Nothing is leſt to memory, guesswork—or chance. Tis level of control—all the while
maintaining flexibility and agility—is the magic combination that automotive manufacturers require today. It’s a bal- ance of forces that may seem contradic- tory and difficult to achieve. Fortunately, today’s ERP technology offers the best of both worlds: control of processes and data flow—plus flexibility to adapt as new disruptive technologies and innovations emerge. Tis is what the future of manufacturing is all about, and why technology is at the core of the new manufacturing revolution.
Motorized Vehicle Manufacturing 35 Warren Smith
Automotive Industry Strategy Director Infor
New York
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