The greenfield factory journey: Phase 4

Ramping your greenfield factory

Developing a greenfield site and bringing it online can take three to five years, so we’ve broken down the journey into four phases and 12 steps. This final phase, ramp, is filled with excitement to see months and years of hard work come to life. Now firmly in the “program oversight” portion of the project, ramping up a factory may feel like the end of a long journey, but it’s just the beginning of what’s next for your organization.

Step 11: Manufacturing optimization and the smart factory journey

As the factory ramps and production volume targets are achieved, efforts begin to shift toward optimization. Areas of focus often include decreasing overall factory throughput time, reducing costs, and improving yield and quality.

While some key considerations are outlined in this step of the greenfield factory journey, manufacturing optimization is never complete. There are many ways to enhance, develop, increase, progress, and upgrade manufacturing performance. The opportunities are seemingly endless—and thus the adventure of continuous improvement begins.

Continuous improvement
The continuous improvement process is simple, but few companies do it well due to not establishing the discipline to operationalize the continuous improvement process and make it a formal part of their culture. The following are various methods that can be used to formalize continued improvement.

• Plan-Do-Check-Act (PDCA)
  PDCA is a four-step methodology used to identify, test, and implement changes to improve a manufacturing process. It focuses on measuring and analyzing results to identify the actions needed for improvement efforts.
• Kaizen lean manufacturing
  Japanese for “improvement,” the terms “kaizen” and “continuous improvement” are often used interchangeably. The Kaizen manufacturing method focuses on making incremental changes in the factory that are often easy to implement and track.
• Six Sigma manufacturing
  Six Sigma is a manufacturing method designed to improve the quality of processes by removing defects and minimizing process variability, using data and statistics to analyze processes, and identifying areas for improvement.
• Lean manufacturing
  This approach is used to optimize production processes by eliminating waste and focusing on creating value for the customer. It is based on two core principles: continuous improvement and respect for people.
• Theory of Constraints (TOC)
  The Theory of Constraints concept focuses on identifying the biggest bottleneck in the factory to improve it. This concept hinges on the idea that identifying and addressing the biggest system constraint is the fastest path to improvement and continuous growth.

Implementing and formalizing the continuous improvement process takes commitment, ongoing effort, and continued practice to make a real difference. With the right strategy, tools, and leadership, efforts to optimize the factory will pay big dividends.

The smart factory journey
While planning and building a new greenfield factory, you can embark on a parallel trek—the smart factory journey. The specific elements of a digital thread within manufacturing will be different for each organization, but there are key characteristics that are common. A review of key characteristics affords manufacturers a chance to imagine the possibilities, ultimately leading to improved productivity and greater competitive advantage.

• Connected
  Smart factories require the underlying equipment, processes, and materials to be connected to generate data regarding current conditions and real-time status. This data then becomes the foundation for all other smart factory characteristics.
• Transparent
  Real-time alerts, notifications, tracking, and performance monitoring open the window of understanding into what is really happening, thereby enabling new, significant insights and opportunities for improvement.
• Proactive
  In a factory with proactive systems and processes, employees and systems can anticipate and act before issues or challenges arise or become significant, rather than simply reacting to them after they occur.
• Optimized
  An optimized smart factory has matured key capabilities such as improved tracking, dynamic scheduling, increased uptime, and improved quality, as well as minimized waste.
• Agile
  A flexible, agile factory allows for easy and rapid adaptation to schedule and product changes with minimal intervention.

Far from being an “end state,” the smart factory is an evolving solution as the industry forges ahead to integrate Industry 4.0 together with a software-defined future. It is an unending call for creative thinking and imagining the possibilities. Investing in smart factory capabilities and applying principles of software-defined manufacturing can enable manufacturers to develop a competitive advantage in an ever-more complex and rapidly shifting ecosystem.

How Deloitte can help the greenfield factory journey

With deep expertise across industries, Deloitte has helped many leading global companies develop a greenfield site. No matter where you are in the journey, we can help you get back on track and realize your ultimate greenfield goals, using new methodologies that reduce risk, improve performance, and save time and money.

As a strategic partner, our smart manufacturing team can also fill knowledge gaps across tax strategy, consulting, financial advisory, risk advisory, and business process transformation. Contact us today to learn how we can work together to bring your greenfield vision to life.