News Factory of the Future

If you think about what life in the future means, there’s a good chance you might think about it in terms of being able to have what we want, when we want it. We’re already getting a taste of that. Through Netflix we can stream our favourite shows and movies, order food or an Uber with the tap of a button and buy online for same-day shipping. On-demand is the way of the future – and it’s coming for tool manufacturers too.
 
Just like Uber or Netflix, on-demand manufacturing means a customer can have their needs met in the fastest possible time.  It is a service-based model, responding and producing based on a customer’s request rather than what is in stock. The benefits are there for tool manufacturers too; it will allow products to be delivered to exact specifications, quickly and with minimal wastage.
 
Getting on demand tool manufacturing right requires a combination of good processes and great people, supported by clever automation. And it is always easier to get a foot in the door of an emerging market than it is to catch up to a saturated one. The good thing to remember is you can set yourself up to deliver on demand without investing in all new equipment or infrastructure. 

 

On-demand manufacturing means running lean

 

The cutting tool industry has traditionally waited for several orders to come in before ordering raw materials, to make production runs worthwhile. But by creating processes that enable you to produce on-demand you will be able start right away, knowing you have the systems set up to allow smaller batch runs with no loss of precision – meaning the client gets their tools faster, and you get paid faster too. 
 
Instead of having a warehouse packed with raw materials, businesses are using data and automation to forecast what’s required and carry only those supplies. When the order comes, whether it’s for one tool or 1000, just-in-time inventory management means they have exactly enough raw material on hand to fulfil it without wastage or leftovers.
 
Supplying on this basis also means you can avoid grinding in advance and keeping a range of tools in stock. That means lower up-front costs, reduced warehousing overheads, better cash flow and a more predictable inventory.
 
Sounds great – but how do you start?

 

Take an incremental approach to setting up

 

To stay competitive in this industry, you need to get on board – other businesses have already started! But you don’t need to set everything up all at once. You can take it in stages, working with what you already have and extending one step at a time. 
 
Start with your overall supply chain. On-demand manufacturing relies on getting the basics set up properly, so start by looking for where the inefficiencies are. Use the data you have already to identify bottlenecks and areas for improvement.
 
Once you know what needs to be done, it’s time to put more efficient processes in place. Look for steps that can be automated, like material ordering, tool plans, loading and packing. Being a small cutting tool manufacturer can be a benefit here – you have the flexibility to try new techniques, work in small batches and quickly pivot with the market.
 
Focus on the areas that will help you to create better quality products with minimal wastage. Upgrade or replace key equipment one-by-one, starting with those that will have the greatest impact on your production line. Invest in technology that gives you as much information as possible, then use that data to grow and reinvest.
 
The best on-demand manufacturing is a combination of good processes and great people, supported by clever automation.

 

Automation is key to successful on-demand manufacturing

 

Technology makes all the difference here. Through automation, each step becomes easier, more cost effective and of higher quality. 
 
With your machines networked, each piece of equipment in the process can speak to the others. Everything is integrated, from ordering to inventory and loading to unloading. Having comprehensive data means you can:
 

• forecast orders with the highest possible accuracy;
• easily identify which of your products are the most popular;
• know which of your customers are most likely to need products delivered quickly;
• track stock levels and manage inventory in real-time, so you know you can meet demand.

 
Best of all, you can control it all without human input. Grinding can continue when you go home for the day, and your employees can spend their time on more valuable tasks.

 

Become an on-demand manufacturing specialist

 

Large companies have their catalogue of products already – they’re not as interested in specialising. That opens up a huge opportunity for smaller tool manufacturers to fill in the gaps with quality, high-end tools.
 
With automated systems, you can have a whole library of plans for any number of tools ready to go. Your factory can become a holistic solution for each customer, grinding specialised tools literally at the touch of a button. You can switch between plans as required and manufacture to the specific needs of your customers. Instead of waiting weeks for their products, they will have the tools they need in record time.
 
With so many on-demand services around, customers are coming to expect a quick turnaround. Now they can get exactly what they need, when they need it, and your production won’t be bloated by carrying stock or excess materials. And knowing you can produce quickly and precisely will bring them back time and time again.

5 June 2019