Manufacturing Industries
Assessment of Digital Maturity

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Synopsis

According to industry reports, the vast majority of discrete Manufacturing companies remain reluctant to brave the challenges of going digital. The progress, albeit limited has been different for different areas of Digital Transformation. Most efforts have been towards improving operational excellence both in supply chain management through procurement platforms (excepting tail spend) and in production through ERP systems and IioT and some limited worker enablement with AR. The B2B customer experience has not seen the digital evolution witnessed in the B2C, albeit with limited progress in things such as B2B ecommerce, CPQ, P2P etc. While CRM adoption and omni channel marketing is progressing, manufacturers have been hesitant to make the transition away from legacy wholesale and distribution networks. Some limited business model transformation has also taken place through product as a service models. Overall most of the progress has been the domain of larger corporations with small and medium manufacturers being “onboarded” into digital transformation. As a result the discrete manufacturing sector remains somewhat exposed to potential digital disruption.

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Digital Transformation in the Manufacturing Industries - CASE STUDIES

Digital Transformation at Lokheed Martin - something to learn from

LMCO F 35 IN FLIGHT WITH CREDIT 1Background

Arriving to much fanfare, the X-35 concept first took shape in a 1997 government competition. The first F-35A rolled off the company’s Fort Worth production line for testing in 2006 and by 2011, the company was delivering aircraft. The F-35 program is one of the most high-profile in the storied history of Lockheed Martin, and over the past three years the company has faced tremendous internal and external pressure to cut costs and ramp production. Over the coming years, the success of mission-critical business systems on the F-35 production line will determine the program’s ability to deliver for customers

Challenge

Over the more than 10 years since the initial buildout of the production line, the disparate software packages on the production line have grown to include over 80 homegrown applications for managing quality, maintenance, productivity and human resources among many other areas, forcing users to use multiple screens for a variety of operations, including the manual movement of data from one system to another.

Input

To ramp up production the role of “digital manufacturing fellow” was created. It included responsibility to chart a path forward for the software to jumpstart the ramp up.The first hurdle was that many team members were hesitant to adopt new software and second, the team’s focus on feature and function comparisons rather than overall application and information architecture. As the team members ran into the types of starts and stops that are typical for any MES project, they fell into the classic pitfall of companies first starting with solution selection, when in reality that should be the endpoint. Many did Lockheed Martin Digital Transformation 1not realize the wide scope of different applications that existed on the shop floor and had to be educated on how to use enterprise architecture to align technology with business goals.

Lockheed Martin senior management also retained LNS Research to define a scope for the project to align with industry best practices and standards for developing an automated interface between enterprise and control systems. The new practice area included business functions and technologies and put MOM software on an even playing field with other technologies like ERP. LNS Research introduced to company executives to its framework for digital transformation and recommended that the Lockheed Martin team should not start with solution selection, but rather take the strategic objectives already defined for the F-35 program and use them as the input for the enterprise architecture process that would provide a roadmap for the solution selection and adoption of both IT and OT, including MOM software.

Output

Over the next year and a half, a grass-roots approach to drive the discipline of Enterprise Architecture across Lockheed Martin was adopted and implemented. With a robust enterprise architecture in place, the company now has the capability to ensure its manufacturing systems helps it get to where it needs to be.

Source: LNS Research

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