Take equipment obsolescence as a prime example. In Eriks’ recent report, ‘The Challenge of Obsolescence: Strategies for managing and maintaining an ageing asset base’ – 19% of respondents admitted that they logged End of Life (EoLs) announcements but neglected to put a proactive plan in place, with 9% admitting to ignoring them entirely.
In addition, IBM’s Cyber Security Intelligence Index, cites the manufacturing industry as one of the most frequently hacked sectors. Furthermore, this report found that nearly 30% of all network attacks within the manufacturing sector could have been avoided through better security reviews and control processes. These attacks are becoming more sophisticated, are no longer just about the extortion of money, with increasing focus on Intellectual Property and data theft.
There may be many reasons why businesses fail to take a more proactive approach to equipment maintenance and the safeguarding of operations, but the reality of the situation is that failing to plan may be doing your business more damage than you think.
The creation of a plan may seem like a mammoth task, but if broken down into three core areas, it seems more manageable:
What are the equipment weak spots and where do the greatest vulnerabilities lie?
a. Conduct a detailed audit of plant – identify any areas of concern and then order them by criticality.
b. Conduct an asset consolidation – carry out a stock assessment and analyse the ordering and stores process.
What can a business do to prevent equipment failure and the ensuing loss of productivity?
If equipment does fail, how can the business recover from the situation?
The first stage is about identifying any ineffective processes as well as trends in purchasing that could be improved. The prevention and recovery phases are about understanding how and when equipment failure may occur, before building in strategies to help mitigate against the effect on the business – reducing costs and ensuring productivity is maintained.
Many companies may seek to do this internally but there are some key benefits to outsourcing, not least in terms of objectivity. They will also have an in-depth knowledge of these themes’ day-in, day-out and will therefore have a good grasp of the best measures and solutions.
With so much uncertainty in the market right now, planning for failure shouldn’t be feared it should be revered. Ultimately those businesses that prepare will be much better placed to weather the storm, no matter the forces at play.