Part 1/5: The evolution of production: Uncovering critical success factors over time

Welcome to read part one of our industrial production blog series. In today's dynamic business landscape, understanding the ever-shifting nature of constraints in manufacturing operations and the end-to-end supply chain is vital. It has become clear to me that recognising the opportunities and challenges that lie ahead and identifying critical success factors and core competencies can be the difference between succeeding and just surviving.

Risto Lindroos

25.9.2023

Over time, I have observed manufacturing environments naturally evolve. Development initiatives in different business functions often kick off in isolation, gradually leading to increased complexity, fragmentation, and inefficiencies in business processes and production systems. During this evolution, it is easy to lose sight of the fundamental elements driving the business's success and the value that companies deliver to their organisations and customers.

Simplification: A key resilience factor

One of the valuable lessons I have learned is the importance of simplification as a critical resilience factor. Before initiating transformation projects like automation and digitalisation, simplification has proven to be a crucial aspect to consider. Simplification empowers organisations to identify critical success factors, improve productivity, and reduce costs. 

By streamlining processes, and harmonising and analysing data, organisations can identify activities that can be combined or eliminated. This comprehensive approach ensures a deep understanding of the end-to-end process before automation or digitalisation occurs, resulting in a higher return on investment. 

I have also witnessed that simplification extends beyond just business processes and data. In various domains, such as material handling and logistics, simplifying physical and transactional processes before automation is widely regarded as a best practice. This comprehensive approach lays a solid foundation for successful digitalisation efforts. 

Strategic foundations for transformation

Building on these experiences, I have found that having a well-defined manufacturing and supply chain strategy is the cornerstone for successful transformation projects in manufacturing operations. This strategy includes aspects like a make-or-buy strategy based on the organisation’s core competencies and assessed supply chain risks. Understanding the bigger picture and recognising the heart of the manufacturing process lays a robust foundation for achieving agility and resilience in a rapidly changing market. 

At Midagon, our extensive hands-on experience in successful transformations positions us to anticipate risks and navigate potential pitfalls while maintaining focus on the essentials. We understand that each customer is unique, and there is no one-size-fits-all approach. That is why we customise our toolbox for every case, ensuring that our solutions align perfectly with your specific needs and challenges. 

In conclusion, based on my long international experience in leading and transforming global supply chains, procurement, and operations, I believe that the ever-shifting nature of constraints in manufacturing operations demands a deep understanding of the organisation’s critical success factors and core competencies. Through simplification and strategic alignment, organisations can thrive and excel in a dynamic marketplace.