How Smart Supply Chains Cut Down on Surprise Stops in Factories

How Smart Supply Chains Cut Down on Surprise Stops in Factories

More and more, factories are using "smart supply chains." This is like a new way of running things, called Supply Chain 4.0. It uses smart computers, information that updates all the time, and AI (artificial intelligence) to make factories stop working unexpectedly much less often and make more things faster.  

Why Unexpected Stops Are Bad for Factories

When machines in a factory stop working when they aren't supposed to, it causes big problems. It makes the factory make fewer things, costs more money, and can even make the business lose customers and look bad. This is especially true for factories that make things like medicine, airplanes, and cars because they use very complicated machines. One study said that factories lose about 25 hours of making things each month because of these surprise stops – that's like losing two weeks of work!  

Stopping Unexpected Stops Costs a Lot

Because things are costing more money around the world and factories are trying to make as much as they can, when machines stop, it costs even more. For example, in 2023, one study showed that when a car factory stops for one hour, it can lose over $2 million! In the oil and gas business, it's about $500,000 per hour. These numbers might even be lower than the real cost, which includes fixing the machines, getting new parts fast, and paying workers who can't work.

Even though it costs so much, many factories still just fix machines when they break or fix them after a certain amount of time, instead of trying to guess when they will break. This old way doesn't stop surprise stops very well. That's why trying to guess when machines will need fixing is the way of the future.

Guessing When Machines Need Fixing: Less Surprise Stops

"Guessing when machines need fixing" means using computers to watch the machines all the time and look at information to see if they might break soon. Then, the factory can fix them before they actually stop working. The important parts of this are sensors on the machines and internet technology. These things collect information about how the machines are doing all the time. Then, the factory can see if there are any problems starting and fix them before the machine stops suddenly.

By guessing when machines need fixing, factories can know when to order new parts, make their machines work better, and fix things like cleaning, oiling, and making sure everything is lined up right. This not only helps stop surprise stops but also makes the things they make better, uses less energy, and makes the whole factory work more efficiently.

Putting Smart Supply Chains and Guessing Together

Supply Chain 4.0 is like putting smart ways of making things together with smart ways of managing everything the factory needs. This makes making things and fixing machines even better. The important parts of a smart supply chain are sharing information all the time, being able to see what's happening with everything, and having all the different parts of the supply chain connected. When this happens, knowing how much of something will be needed, managing what's in the factory, and moving things around all become much easier, which means fewer surprise stops.

For example, smart supply chains use computers to guess how much of something will be needed so the factory doesn't have too much or not enough. By watching the market all the time, factories can change their plans for making things and make sure their machines are being used as much as possible and are working when they need to. Also, Supply Chain 4.0 uses AI and computers to manage the things the factory has so they always have the important parts when they need them. This stops machines from stopping because they are waiting for a part.

Moving Things Smartly: Fewer Stops Too

In a smart supply chain, how things are moved around is also very important. Internet technology, GPS, and special tags help the people in charge of moving things know where everything is all the time. This helps them find the best ways to move things and make sure everything arrives at the factory when it's supposed to. This not only makes it easier to know what the factory has but also makes the machines that make things more reliable and less likely to stop.

It's Not Always Easy, But It's Worth It

Making Supply Chain 4.0 happen isn't easy. It costs money to buy new technology, and the people in the factory need to learn new skills and work together in new ways. The factory might also need to work with other companies in new ways. But even though it's hard, it gives factories a big chance to do better. When things are not sure and supply chains get messed up, smart supply chains can help stop surprise stops and also make the factory stronger and able to handle problems better.

In the end, smart supply chains use information that updates all the time, internet technology, and AI to make the whole process of making things better. This helps stop surprise stops in factories. By guessing when machines need fixing, smart supply chains help factories fix things before they break, make more things, save money, and be able to change when the market changes.