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Manufacturing Technology Insights | Tuesday, January 03, 2023
OEMs may holistically increase capacity by improving capabilities across all supply tiers while optimizing manufacturing processes.
FREMONT, CA: OEMs in the aircraft sector are confronted with never-before-seen difficulties and unpredictability. Consumer confidence is weak, labor markets are tight, skilled labor is becoming harder to obtain, and inflation is at a four-decade high. Stretched supply chains raise the risk of part shortages and unpredictability in supplier service levels.
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But production demand is quickly increasing again. The shift from low- to high-rate manufacturing marks a significant transformation for established industrial suppliers and upstarts. Since they have been operating at low production rates for so long, many aerospace and military industries, major industrial suppliers, and early-stage startups have underinvested in the infrastructure needed to operate successfully and efficiently.
Optimizing production: OEMs aiming to step-change production must embrace a utilization-based approach in addition to conventional lean manufacturing-based improvement measures, such as KPI setting and monitoring, visual performance boards, and daily target-setting meetings. Running machines near their maximum capacity—or "sweating" them—is a notion that high-volume producers naturally understand but is frequently far less prevalent in highly designed low-volume production. Creating specialized maintenance plans and codifying procedures necessary to maintain greater production levels are prerequisites for maximizing throughput per asset. These procedures incorporate productivity techniques, including enhanced batching, thorough job planning, and schedule optimization.
Managing staff requirements: Decoupling shift structures and creating custom shift strategies for each production asset is a non-capital-intensive lever to release additional capacity. OEMs may increase throughput while managing labor demands thanks to shift augmentation, which aims to enable assets to function at maximum capacity utilization. A more efficient use of operator cross-training, more standardized work, or both can produce redundancy in a confined setting, allocating resources following production demand. Budgetary constraints on OEMs are getting worse due to macroeconomic issues, which also limit the amount of cash that can be used to invest in new manufacturing equipment. When investing to fill capacity shortages, a total cost of ownership strategy that considers demand predictability, product design criteria, and lifecycle management should be evaluated. Capital investments can be reduced by analyzing levers like design-to-build and make-buy choices, which may smooth production flow and eliminate spikiness in transient demand profiles.
Advanced analytics: Maximizing throughput and learnings from each production iteration is critical in low-volume, long-lead manufacturing cycles. However, the most complicated manufacturing processes cannot separate batch production for testing or compare different production methods due to their very nature. Simulating many scenario-based pilots requires advanced analytics, essential for expediting production learning. With digital simulations (including sophisticated digital twins) and digital performance management, techniques like scenario-based modeling (including dynamic bottleneck reduction) are possible.
Optimizing supply: A constant and effective industrial operation depends on the availability of required parts. A thorough examination of a part's criticality to see if it can be redesigned, simplified, or multisource is the first step in scaling the supply chain. This is followed by a thorough risk analysis of a supplier's capacity to match the production pace. Assessing a supplier's ability to supply components on a schedule based on revenue criticality and geographic risk is key to validating past performance, assessing current manufacturing capacity and scaling, and evaluating overall reliability. Tolerating more redundancy in the supply chain and using customized fulfillment techniques based on part and supplier risk profiles may be necessary to mitigate possible risks.
Resources: Increasing production might severely restrict working capital if customers scale their inventory orders in response to increased output objectives while increasing the risk that surplus components would eventually turn into outdated inventory. Engineering designs that are insufficient or unstable run the potential of making entire categories of components obsolete, which increases the risk. By considering demand unpredictability, design consistency, and the capacity of suppliers to produce parts within the specified lead times, a plan-for-every-part fulfillment approach may assist in balancing part availability and reducing waste.
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