In our 2024 Manufacturing Sector Trends report, 58 per cent of businesses in the sector said boosting efficiency and increasing productivity were key priorities for the coming year – and more than half are already using technology to help them reduce waste.
As the UK dips into a shallow recession, leaders minds turn away from expansion, and towards achieving growth through cost control. A suite of new technologies are streamlining processes and reducing waste of materials, money and employee time. Here, we explore five potential routes to a more streamlined, economical use of resources.
1. 3D printing
3D printing, also called additive manufacturing, layers material to create a 3D part based on a digital file. It differs from traditional subtractive manufacturing, where designs are cut from a larger quantity of material and as a result, waste is created. 3D printing is well established in automotive and aerospace manufacturing to create parts like fixtures and cradles, and prototypes – generating on average 70 to 90 per cent less waste. Due to its customisable nature, 3D printing can also facilitate more efficient methods of manufacturing, allowing for the creation of personalised products like custom moulds and jigs, tools to control the movement of other tools. Investigate if there are any parts of the production line that could use 3D printing instead of traditional methods, or if there is any potential custom apparatus that could boost efficiency, when printed quickly and to suit your needs exactly.
2. CNC production
Computer Numerical Control (CNC) refers to controlling a machine automatically by a computer rather than by a human operator. Often applied to tools like mills, lathes and routers, CNC eliminates the human error that often results in waste, as machines can be programmed to cut with total accuracy. You can carefully control cutting speeds, feeds and tool paths, eliminating the variability of human operators and ensuring that all machines are programmed to follow the absolute optimal methodology. For example, if using metal sheets in the production process, CNC allows for an ideal layout to cut more units, delivered in the exact same way each time. CNC machines are also increasingly energy efficient, with new designs reducing heat generated by the spindle, drives and motors.
3. Machine learning
CNC has been reducing waste for many years via humans creating individual programs to achieve their objectives, feeding these into each machine. However, Artificial Intelligence (AI) has opened up the potential for machines to create their own optimal processes. Machine learning algorithms find relationships and patterns from data and can learn from repeated action, potentially outperforming the human programmers in creating ideal ways of working. For example, at Unilever’s site in Germany for creating Magnum ice creams, a machine learning system was able to optimise how much chocolate coating was needed and how best to recirculate the waste – combining with other methods to result in total food waste reduction of 30 per cent. Machine learning can be deployed to root out inefficiencies and create new, improved operational tactics.
4. Real-time material management
Inventory waste is lost revenue through unprocessed or unsold inventory, and amounts to $163 billion each year globally. It can be reduced by effective stock management. Previously, this was done through manual systems and spreadsheets, but new technology can skyrocket stock control accuracy, ensuring that surplus is accounted for, resold or repurposed. Automated material tracking, such as radio-frequency identification (RFID) sensors, provides procurement and operations leaders with a real-time view of inventory location and levels, reducing unnecessary purchases due to data errors or lost stock. Savings of just one per cent in purchasing eventually translate to five percent growth in profits - meaning that effective real-time material management can have a direct effect on your bottom-line.
5. Vendor managed Inventory
Vendor managed inventory (VMI) passes responsibility onto the suppliers when managing inventory levels. By providing full transparency of stock using the real-time material management methods outlined above, such as RFID or barcode scanning, replacements can be sent by the supplier - often automatically - when levels fall low. Manufacturing procurement teams can therefore reduce the time they spend raising orders and awaiting deliveries. VMI also allows manufacturers to maintain lower inventory levels, as there is less need for safety stock or buffer inventory. Strong VMI processes rely on effective software for collaboration between supplier and manufacturer, and, increasingly, strong automation to calculate inventory targets and process data inputs. It is a key area for improvement when reducing waste across the business, with Intel, for example, avoiding inventory carrying costs of $68 billion via a new VMI model.
These five innovations, each in their unique way, provide opportunities for boosting profits and sustainability through waste management. Leaders should consider whether adopting any of these technologies, even at a small, pilot level at first, could help their business operate more efficiently and access a competitive edge.