1. Making Supply Chains Resilient and Agile
If 2020 taught manufacturers anything, it was the need to become more resilient. Unexpected events that can affect large regions of the world can impact supply chains. For OEMs that rely exclusively on a set number of suppliers from specific places, the ability to make changes can become difficult due to the rigidity of the supply chain. Becoming more resilient and agile allows companies to more easily weather events that could impact supplies.
For resiliency, OEMs should plan for supply disruptions. Using software to simulate various shortages can help companies to better plan for problems. If a supply issue does occur, OEMs should identify the products with the greatest demand. By prioritizing the production of these products during supply disruptions, manufacturing can continue. Workers on the line will also need training in alternative production methods or using different supplies as needed to reduce decreases in productivity.
Staying agile during supply chain disruptions is another new requirement of OEMs. Designing flexible operations to adapt quickly to supply changes provides an option to continue to meet demand under challenging circumstances.
2. Modernizing Through Upgrading to Industry 4.0
Modernization is an essential aspect of OEM operations today. However, upgrading systems does not mean eliminating human workers. Human employees are even more important than ever. Modern OEM facilities will need to operate seamlessly with Industry 4.0 to maintain the highest efficiency and productivity. To keep things running smoothly, workers will need to operate and maintain the equipment.
Industry 4.0 is the next wave in manufacturing that includes using data to improve operations. It also generates transparency throughout production with connectivity from the beginning to the end of the factory line. For instance, in Industry 4.0, machinery can communicate to alert stations down the production line of possible delays or faster operations. This type of communication prevents bottlenecks.
Another aspect of Industry 4.0 is machinery communicating with people. The devices often use sensors to alert maintenance crews of when the machinery needs servicing. This predictive maintenance reduces unnecessary servicing while optimizing the efficiency of the equipment.
The key component of upgrading to Industry 4.0 is integrating data collection to optimize operations. To remain competitive, companies will need to make these changes.
3. Producing Customized Products to Meet Evolving Consumer Needs
Gone are the days of mass-producing single model designs. Today’s consumers demand even more customization options than ever. Therefore, luxury, base, sport, and other models for cars are becoming increasingly common. With so many options, even for the same model, OEMs will need to adapt their production lines to meet consumer demands. These adaptations may require changing supplies or upgrading production methods to permit multiple versions of vehicle models to go through manufacturing.
OEMs should keep track of the popularity of each option to meet the demands of an appropriate volume of products. Producing too many of a specific model to satisfy consumers can lead to wasted time and unsold products. Knowing what consumers want will reduce the chances of manufacturing vehicles that won’t sell.
