Problems in manufacturing industry exists globally and at various levels. There are some that are beyond human control e.g., natural disaster, and there are others that are caused by humans and can be avoided if all stakeholders discuss regularly and be determined to find an amicable solution.
In this article we will shed light on 5 problems in manufacturing industry that are faced by industries in their day-to-day operation:
- Untrained Workforce
A report by Linkedin estimates that by 2030 there will be a shortage of 85.2 million talented workforce and this alone will cause trillions of dollars of economic opportunity loss to the companies. Untrained workforce also leads to loss of working hours and actual financial loss as manufacturing industries needs to allocate resource to train the untrained workforce.
The bright side is that this problem is not permanent and can be solved with the involvement of government, educational institutions, training agencies, and manufacturing industries. If skill training is offered to students while they are still in college then industries stand to benefit significantly as they will get trained workforce directly from colleges.
- Strikes and Demands by Labour Unions
Strikes by labour unions do cause financial loss amounting to several million dollars, and at times these strikes do become violent leading to deaths too. E.g., a labour agitation in 2012 at an automobile company plant in India lead to the death of a Human Resource executive.
At times the labour union do raise relevant concerns but many times it has been observed globally that vested interest in the labour union make unjust demands for their personal gains. These blackmailing tactics by few people in the labour union do cause harm to manufacturing industries but they also weaken the very purpose of having a labour union.
- Power Outage and Unavailability of Required Power
Undoubtedly one of the biggest problems in manufacturing industry, especially in developing economies and in nations that import coal, oil, and gas to generate power. Manufacturing industries run on machines and machines need sufficient, regular, and unfluctuating power to function well.
This problem can be solved by setting up more power plants, if that is not possible then nations need to look at alternative source e.g., solar, wind, geothermal, biofuel, etc. This may seem difficult but it is not impossible, nations like Iceland, Sweden, and Costa Rica are aiming to generate 100% of their electricity needs through renewable sources and they have been able to achieve a great degree of success too.
- Sudden Breakdown of Machines
Unplanned breakdown of machines disturbs the entire planning, it negatively impacts productivity, timely production, and delivery schedule. Abrupt breakdown of machines also affects the Overall Equipment Effectiveness (OEE) which leads to financial loss.
Coming to the reason, there could be several for sudden breakdown of machines, like human error, irregular maintenance, fluctuating power, lose parts, improper greasing, or even low quality raw material.
Using latest technology like Industrial Internet of Things (IIoT) can help manufacturing industries as they will be able to benefit from predictive and preventive maintenance capability that IIoT offers.
- Unavailability of Raw Materials and Reliable Vendors
One of another problems in manufacturing industry is availability of good quality raw materials on a consistent and cost effective basis. At times if a manufacturing industry relies too much on a single or a small group of vendors then they may also lose bargaining power to these vendors.
As far as ensuring regular supply of raw materials is concerned then several organizations needs to be involved, right from raw material suppliers, transporters, government and ultimately the manufacturing industries. By keeping all organization on the same page and by regular meetings and discussions, industries can make sure that their need for high-quality raw materials gets fulfilled in a timely manner.
With the adaption of latest technology manufacturing industries can drastically reduce the errors in products, improve machine reliability and plant availability, hence increase the overall company performance.
With our platform we are making a tiny efforts to contribute positively for the growth of Manufacturers, Traders, Importers/Exporters with our technology driven approach for the effective marketing, promotions & industrial trading and also empower the Industrial Buyer for a better procurement plan.
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