March 2019

54 n EXECUTIVE VIEWPOINT March 2019 www.drivesncontrols.com Name Txt Meeting Production Ebb and Flow is All About Flexibility Scada: a key element of the smart factory? “There has never been a better time to consider robotic automation, both from a practical and a financial standpoint.” Consignment stock is a relatively under- used resource in UK manufacturing. It is more commonly found in the retail industry where goods are shipped to a dealer who pays the consignor for the merchandise only when it sells. Products routinely sold on consignment include newspapers, magazines and Christmas decorations. Entrepreneurs needing to get their product on the market also use this technique. I originally started with the idea of consignment stock with our chainflex cables. When a customer’s engineering team needs more cable, instead of ordering from us, they simply go to a drum and unreel whatever is needed. This supports production ebb and flow and we can increase and change stock whenever necessary. The obvious benefit of consignment stock is cost savings. Since we still own the cable, the customer does not have the upfront costs. There are other benefits too, such as no expedited carriage costs and immediate availability. Originally we focussed this service on automotive plants and other large production facilities where downtime is expensive. Having consignment stock onsite solves this immediate problem. However, having visited smaller OEMs, they are interested in holding consignment stock too, because it is a great way of cutting their procurement costs and lead times. The OEM benefits from better service levels, as a result of the higher level of collaboration and better communication of each other’s needs. What’s more, they can cut their administrative costs because of the simpler procurement process. We have noticed a marked decrease in emergency orders, which supports this theory. By providing “on tap” product availability, JIT and LEAN manufacturing requirements are also satisfied. However, to ensure the consignment stock works effectively, both parties must work together. It is a long-lasting relationship and, as with marriage, it only works when both parties are open and flexible. I’d thoroughly recommend exploring this service to any manufacturer that is regularly using a supplier and has enough space in their warehouse. n Managing Director, igus UK Matthew Aldridge Sales Director, Products4Automation Natalie Turner Industry 4.0 is pushing operators to attain the smart factory – a facility with integrated devices that communicate seamlessly across a unified network. Scada can deliver tangible productivity and efficiency benefits to help achieve this, which is why its use is growing in the UK. We are now seeing more businesses benefitting from the growing flexibility and speed of response of Scada systems. Businesses that may not have considered Scada before are being drawn to the technology by its scalability. Modern Scada frameworks can suit either a single process on a production line, or every parameter in a facility. Large and medium systems can be supported, as well as the “micro” environments of simpler applications. Modularity, flexibility and scalability have