Manufacturing’s next act

I had never heard the term Manufacturing 4.0.  This McKinsey paper (from their blog) presents a good case for radical transformations in manufacturing.

McKinsey LogoManufacturing’s next act | McKinsey & Company.

Some of these transformations are genuine business structure innovations, such as the software alliance that performs consulting for major companies.  Some are not so new: auction marketplaces for outsourcing parts manufacture was tried in about 2000 by CommerceOne, and only became established in one or two indiutries (specialty chemicals and certain automotive and airplane parts).  (The company failed.)  Auction based purchasing and supply are only feasible when the suppliers have quite variable capacity they need to fill, and there is no differentiation among sources.

It also makes sense for production managers in any firm to become totally aware of the new technologies and processes, including those that are information based, that could impact their business.  Firms will need to jump onto a technology fast when it reaches their industry, leaving no time for indecision.

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