How technology is helping global industrial manufacturers drive significant savings
February 18, 2020 | 4 minute readIndustrial manufacturers’ expectations are rapidly shifting. Customers are changing how they source due to the improved visibility and efficiency enabled by technology.
In fact, customers are actively seeking improved efficiency and production transparency from their suppliers thanks to connected technologies and digitization.
Increased investment in technology
Many of the opportunities stem from streamlining processes, integrating with supply chains, and leveraging IoT technology. However, these changes don’t happen overnight.
Industrial manufacturing’s lack of standardization is a significant hurdle towards their goal of smarter factories and improved connectivity, particularly when coordinating across multiple factories.
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"72 percent of manufacturing companies surveyed by PwC said they are dramatically increasing their level of digitization and expect to be ranked as digitally advanced by 2020, compared with just 33 percent today.
These companies are committing US$907 billion per year — about 5 percent of revenues — toward greater connectivity and smarter factories.”
-"Industrial Manufacturing Trends 2018-19", Strategy&, part of the PwC network
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Two forward-thinking organizations in industrial manufacturing, AMP United LLC and SPG Dry Cooling, were recently recognized with 2019 Oracle Construction and Engineering Excellence awards for their compelling achievements, including improvements to their bottom line.
AMP United, LLC
AMP United, LLC is a US-based industrial and commercial coatings business servicing US Navy and US Coast Guard vessels. The company is working on an 11-month large and complex docking phased maintenance project on the USS George H. W. Bush (CVN-77) aircraft carrier.
The significant amount of integration with the general contractor, among other parties, was more than AMP United’s previous solution could manage, prompting the company to find a new and more comprehensive solution.
By selecting Oracle Primavera Cloud, AMP United was able to seamlessly integrate with their general contractor’s solution, Oracle’s Primavera P6 Enterprise Portfolio Management, to provide a complete project overview.
AMP United recognized that Oracle Primavera Cloud could increase the efficiency and visibility to their projects and standardized on the solution. AMP United has been able to use templates for each class of ship, just one of many advantages to standardization.
These templates can be easily shared across projects, even between the east and west coast. Standardization speeds project set up, reduces needed training, and enables best practices to be implemented across the board.
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“AMP United increased efficiency by sharing schedule templates for each class of ship, across coasts.”
-Wade Hyatt, Senior Project Manager, AMP United
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Schedule baseline
AMP United can easily establish a baseline to determine its own course of work, saving time and budget. The company also shares the impacts of changes against the budget and schedule and can allocate resources effectively, yielding a six-figure budget savings. Developing new schedules for each change used to take up to a few days, but now only takes 10-15 minutes.
AMP United can also assess their own needs as well as those of the subcontractors. The two week look ahead plan used to take three to five hours each week to prepare. Now, it’s almost instantaneous. The look ahead plan provides a better dialog with the general contractor to see in real-time what’s happening.
Condition found reports
About five hours are saved per schedule revision. What used to take about a day now takes just a couple of hours. Similarly, Condition Found Reports (CFRs) used to require creating a new schedule—which often took a few days—but now the schedule is instantly updated, saving two to three days per CFR.
Thanks to more credible information, the client also agreed to 90 percent of CFRs. The previous average approval rate was around 30 to 40 percent.
Scenario management
AMP United suggested an optimal solution and minimized the impact of a change to the client, reducing the impact to $100,000 instead of $300,000, by using the scenarios tool within Oracle Primavera Cloud.
Learn more about how Oracle Primavera Cloud can help you get ahead of the competition.
* "Industrial Manufacturing Trends 2018-19," Strategy&, part of the PwC network
Oracle Construction and Engineering, the global leader in construction management software and project portfolio management solutions, helps you connect your teams, processes, and data across the project and asset lifecycle. Drive efficiency and control in project delivery with proven solutions for project controls, construction scheduling, portfolio management, BIM/CDE, construction payment management, and more.
Janet Poses
Product Marketing Director
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