With underinvestment in digitization technology
Today the global military satellite market is a $14.44 billion industry, according to Precedence Reasearch. While it might seem that the sector is at the forefront of technological innovation, the reality is somewhat different.
According to iBase-t’s A&D Digital Manufacturing Productivity Snapshot research, 97% of A&D manufacturers, including satellite manufacturers in the U.S. and the UK, say the industry has suffered from an underinvestment in digitization and that now is the time to improve supply chain efficiencies and create a productivity advantage.
Considering the complexity and risks involved, it is alarming that a majority of manufacturers continue to use paper-based processes (88%) and spreadsheets (57%). The fact that major satellite projects are potentially being run spreadsheets, or pen and paper, creates a huge cause for concern.
At best, this approach can cause inefficiencies and lead to mistakes. At worst, it could lead to project failure and space leaders losing their jobs. Notably, almost half (48%) of respondents say a lack of investment in new technologies and processes has resulted in them losing business — alarm bells should be ringing across the industry.
Getting A Tighter Grip On Supply Chains
A lack of digital maturity has become a serious roadblock to productivity in manufacturing in the satellite sector.
Although Industry 4.0 advancements have proven critical to sustaining operations during the pandemic, most manufacturers grapple with a lack of system and process maturity and this is preventing them from leveraging operational data for business intelligence and smarter decision-making. Being able to convert critical data into actionable improvements is pivotal to true digital transformation.
While this lack of digital maturity impacts many areas of satellite manufacturing, one area in particular that requires close attention is the supply chain. In this industry, it’s absolutely mission-critical that organizations are able to manage a highly regulated manufacturing environment, and complex production processes.
Manufacturers require strong control and visibility over lot and serial tracked parts for all materials, components and subassemblies, from ‘cradle to grave.’ Full traceability is essential if manufacturers need to look back and check whether they have used a certain component or material, that they have been alerted may be faulty or out of compliance.
To optimize performance, satellite manufacturers must also carefully track how each supplier is contributing to their enterprise. Are suppliers causing problems, or are they enabling success?
It’s important to view supplier management as an ongoing process, rather than a one-time project. It requires continuous optimization to maintain top performance, and centralized communication with suppliers is essential.
However, today there is an overreliance on email and paper-based communications, which is not only inefficient but can also lead to significant quality issues.
Digital Tools Unlock Intelligence
Satellite manufacturers must act now and invest in digital, or else they run the risk of falling behind the competition.
A Manufacturing Execution System (MES) can make all the difference. By placing an MES front and center of digital operations, manufacturers can address the data concern, unlocking real-time visibility and intelligence, while enjoying improved control.
Organizations that have already adopted MES have had a head-start, not just in embracing innovation, but also in channeling it toward achieving bespoke goals and aims, ensuring more sustainable decision-making moving forward.
When also connected with Supplier Quality Management (SQM) and Maintenance, Repair and Overhaul (MRO) solutions, the result is a holistic, connected and strategic disruption of all aspects pertinent to manufacturing excellence. This creates a framework for collaborative supplier quality, and eliminates the problems caused by email and paper-based communication.
Taking Action With Your Digital Investment
The incorrect tools cause inefficiencies and that can result in costly mistakes aas well as leaders losing their jobs.
It’s been more than ten years since spreadsheet errors contributed to JP Morgan Chase losing $6 billion in the London Whale incident. This lack of digital maturity could cause equally damaging outcomes in the manufacturing industry.
As satellite manufacturing accelerates, there has never been a more important time to relinquish paper-based systems and spreadsheets and leverage the power of digital technologies to gain a productivity advantage.
Tom Hennessey
From improving efficiency, productivity and performance to attracting the next generation of talent, the benefits are clear for those who want to get ahead of the competition.
www.ibaset.com
Author Tom Hennessey is the Chief Marketing Officer at iBase-t.
