Data sharing drives 21st century manufacturing

By Staff -- Modern Materials Handling, 2/1/2006

It's no secret that information sharing is a top priority for many manufacturing operations. And for those companies looking to leverage their capabilities in the near future, an enterprise architecture driving data proliferation throughout the supply chain is essential, says a study by ARC Advisory Group.

The "Collaborative Discrete Automation Systems" study shows that discrete events across the supply chain have a profound effect on all processes in the operation. To adjust for these fluctuations, supply chain managers need to be made aware of events in real time, the study asserts. The need to share event data across the supply chain becomes more crucial due to the increase in global supply chain partners.

In the recent past, growth and rapid technological implementation drove manufacturing. Now, "becoming a low-cost producer has superseded the application of technology for technology's sake and unbridled growth as corporate objectives," says Dick Slansky, senior analyst for ARC and principal study author. "Companies must recognize the value and necessity to develop and implement a comprehensive enterprise architecture that interprets and defines their manufacturing enterprise."

Additionally, the report urges manufacturers to develop an effective production-to-business (P2B) strategy to capture real-time events and disseminate the corresponding information throughout the supply chain. With a data-sharing network, supply chain hierarchies can be "flattened out," disassembling traditional barriers to coordination, according to the report.

Creating connections between C-level executives, floor managers and process professionals is the new key. "Companies need to be looking at the operations level for decisions," Slansky adds.