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Cost Savings: Data Automation & Tooling Digitalization in Manufacturing

Updated: 2023-08-11


In an era of advanced manufacturing, where technology and automation intertwine, the inconsistency and unreliability of data in external plant operations is a growing concern among manufacturers. A salient example is the utilization rate of manufacturing assets. Those not yet adopting automated data collection often harbor false confidence in their performance, a flaw rooted in manual data gathering's inherent inaccuracies. As OEMs stand on the verge of a significant shift, the demand for heightened efficiency and accuracy underscores the importance of tooling digitalization. Tooling digitalization isn't just innovation—it's an economic imperative, promising substantial cost savings. Consider the financial repercussions in a competitive market: each error in manual data management is a direct hit to the bottom line.

Pitfalls of Manual Data Management

According to a report approximately 48% of manufacturing firms still rely on spreadsheets or other manual data entry methods. Consequently, only 12% act upon their data-driven insights automatically.

Traditional data management tools, most notably spreadsheets, were lauded in bygone eras for their structured approach. Yet, in our contemporary landscape, their limitations become conspicuously apparent. Particularly in industries characterized by complex supply chains, such as OEMs, manual data entry is riddled with potential inaccuracies, ranging from human errors and inconsistencies to outdated or duplicated data. These inefficiencies can significantly impact an industry that places a premium on precision and operates on tight margins. Furthermore, manual data often culminates into imprecise, skewed, or glaringly absent information. 

Our Approach to Automating Tooling Data 

"Manual data entry poses challenges, making an automated platform essential for monitoring tooling lifespan and parts output". One of the world's leading global automotive companies echoed this view. 

Our methodology, which emphasizes real-time, automated data acquisition and processing, proves invaluable in our leap from manual systems to the modern realm of tooling digitalization. Central to this revolutionary shift are IoT sensors. Within the manufacturing domain, these sensors glean diverse data from toolings, usually the costly outsourced production asset, and transform it into an intelligible data model, paving the way for analytics. Within the outsource manufacturing terrain, there are many invaluable data points that are rarely used such as real-time tooling performance metrics, shift-based production outputs, supplier quality data, and predictive maintenance indicators. While each tooling possesses its distinctive data architecture, the prowess of our platform is manifested in its capacity to standardize this information, rendering it strategically actionable for OEMs.



The Cost Savings to OEMs

Every dollar saved is an advantage in the tightly bound economy of outsourced manufacturing. When we peer into the vastness of operations, tooling digitalization emerges not merely as a tool for improvement but as a pivotal linchpin for remarkable fiscal growth. Reflect briefly on the 1% error rate associated with manual processes. In isolation, such figures seem minuscule. Yet, magnified across the expansive operations of OEMs, they reveal a considerable effect, draining resources, time, and capital. It's more than correcting human errors; it's a transformation of the ecosystem. 

By employing predictive analytics, OEMs stand on the precipice of actionable foresight, enabling the proactive rectification of tooling issues. The resulting reductions in unplanned downtimes alone translate into significant monetary savings. But there's a broader canvas to paint. In an era of data, tooling digitalization facilitates a leaner approach to inventory management. 

Gone are the days of the disturbing disparity between the requested quantity of parts and the actual output from suppliers. This discrepancy predominantly stems from an inadequate analysis of suppliers' capacity, resulting in detrimental production delays and compromising the ability to meet customer demands. With real-time data, accurate forecasting isn't a luxury but a norm. OEMs can better forecast their inventory needs, analyze suppliers’ capacity, reducing overstocking or emergency procurement overheads. Furthermore, this systematic refinement cascades to the heart of daily operations: waste reduction, data-driven decisions, and optimized resource deployment, cumulatively yielding a drastic drop in operational costs.

What Business Leaders Should Do

In the ever-evolving technological landscape, business leaders must recognize and act on the imperative of data automation. Here's how they can champion the cause of tooling digitalization:

Prioritize Investment in Tooling Digitalization: Recognize it as the future of manufacturing. The initial investment will yield exponential returns through efficiency gains, waste reduction, and improved supplier relationships.

Adopt a Forward-thinking Approach: Understand that data automation, especially in tooling, is not just a trend but the future. It's a long-term strategic move that will define industry leaders in the future.

Collaborate with Tech Experts: Engage with technology partners who specialize in tooling digitalization to ensure the adoption of best practices and stay updated with the latest advancements.

Engage Stakeholders: Ensure every stakeholder, especially suppliers, understands the value and implications of tooling digitalization. An ecosystem where everyone recognizes the importance of data automation will ensure smoother transactions, better communication, and improved overall efficiency.

Discover more about how our tooling digitalization solution is transforming the outsource manufacturing industry. Explore our RESOURCES now 
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