It was only a metaphor, definitely, for the challenge of managing major change within a constant enterprise. But it came frighteningly close to capturing the reality of production management involving sophisticated and tremendously regulated products such as for example commercial aircraft, where every element—labor, materials, engineering, technology, design, equipment, processes and more — is pricey, subjected to regular change and intensive scrutiny — almost always in the face of unforgiving deadlines. These are industry issues sure to contribute to the growing buzz surrounding the upcoming International Paris Air Show in June.

 

Responding to these problems, numerous solutions — some more comprehensive than others — have appeared over the past 30 years to more efficiently manage company systems involved in producing complex products and to quicken their speed to market. All of those solutions—PLM, ERP, CRM, HRM, PDES and more—are digitally driven. 

 

Meeting the 'Data Challenge' for Improved Manufacturing Visibility

 

But securing, analyzing and then applying the huge volume of data that comes with visibility into the complexity of a sprawling shop floor — an environment which commonly faces frequent engineering revisions, highly distributed supply chains, constant process changes, and extensive product customization — and then integrating that information into the production work flow in real time, demands a really high level of digital sophistication and IT investment.   

 

For many people, the last goal — creating a fully automated, end-to-end manufacturing process, where every variable is traced, controlled, and validated — is the vision behind Manufacturing Execution Systems, or MES. To many, it may look like a quest for the elusive Universal Field Theory — the Holy Grail of process management. But nobody is there yet—at least not when it comes to complex, high-cost industrial products including most military systems and commercial aircraft. 

 

Connecting Silos with a ‘Digital Thread’

 

Investments in point data systems can function as essential steps toward eventual integration into comprehensive management systems, in addition to generating immediate value. This is why many manufacturers are working to create a ‘digital thread’ consisting of a communication framework that connects the various siloed elements of a company’s manufacturing processes and provides an integrated view of its business assets throughout the manufacturing lifecycle.

 

It is usually why a lot more companies are creating corporate positions that never existed before such as Chief Digital Officer and Vice President of Digital Strategy. Their task is to pinpoint how to use data smartly to run the business and to integrate the enterprise’s resources throughout a product’s life cycle.

 

Regardless this trend, many major manufacturing organizations remain stuck in the paper age. Take, for example, the case of MRO—goods and equipment used in repair process such as maintenance supplies, spare parts, and consumables—things which are not in themselves the end products of that process. Traditionally, mechanics have only tracked those items using paper-based systems. But one of the trade-offs has tended to be a loss of traceability into how the asset was updated as a result of being refurbished using MRO materials. In the case of an aircraft, it could easily have undergone two or three significant overhauls within a 10-year period. 

 

So if, for example, someone discovered that a part was malfunctioning and should be substituted in a number of different engines, you would need to learn which engines actually had that part installed. You need traceability to make certain that whoever is responsible for investigating the issue can confidently make the needed repairs. A robust digital system could be an amazing help there.

 

Modernizing Supply Chain Management

 

Managing supply chains is a different area where traditional paper-based systems are commonly used. What usually happens is that directions to a supplier are provided in writing or by email. While that can be satisfactory in a one-to-one supply arrangement, most supply chains are multi-level. Therefore each supplier, in turn, passes the instructions along to their own suppliers using unstructured communication channels. That is why, nobody is sure what standards are being enforced. 

 

The situation is aggravated by the growth of specialization—an evolution which, in theory, provides customers with additional efficiencies.  But as specialization grows, supply chains lengthen, both internally and externally.  Actually, if national flags were attached to recognize the source of each component in a complex system like an airplane, it would look like an Olympic village. Paper-based methodologies only compound the problem, leading to even more delay and confusion, particularly when things keep changing. So implementing digital systems, from beginning to finish, can help a company secure the visibility and exercise the control measures a varied group of suppliers requires.

 

Keeping an Eye on Rising Costs

 

At the moment, there are costs — important costs. Arguments between design and engineering departments, terribly communicated changes, the discovery of defective parts, keystroke errors resulting from paper-based systems, missed instructions, and silos of data that don’t communicate, are among the inefficiencies that drive the costs of many products through the roof. A plane that should only cost $10 million might turn out costing $70 million. And some issues are never corrected until it is far too late.

 

So there is plenty of room for enhancement. At present,, perhaps 10 percent of the world’s aerospace companies are actually doing a good job of it. The remainder rely on different legacy systems and pinpoint solutions that hold them back from becoming what they would be capable of being with the use of more holistic digital approaches to manage their business.

 

In order for the newest aircraft designs to ultimately take flight, manufacturers will need to re-think their basic processes and begin to take significant steps to modernize.

 

This article is originally posted on tronserve.com