Page 32 - ADT AUG - OCT 2024 Digital Magazine | GBP

 COLUMN

IT’S ALL CHANGE

IN THE DEFENCE SECTOR!

Successful digital transformation is essential for

defence manufacturers to overcome internal

challenges and unlock high-performance
manufacturing to capitalise on growing demand

T he U.S. defence sector Resource Planning (ERP) system, Vice President, Aerospace and
Rob Mather,

Defense Industries at IFS.
to provide that elusive single source
lost over 40 per cent of its
value just a few years ago
decisions.
as a result of COVID and lockdown of truth to make dynamic business
restrictions. But now, there’s a com- material requirements planning
plete turnaround. Here are the four pinch points (DDMRP). This will ensure inven-
where digital technologies are tory levels match demand levels
The same manufacturers that addressing defence manufacturing and supply chain variability. By look-
were once forced to scale back issues and boosting production ing at actual usage data, DDMRP
operations are now rushing to without driving up costs and risk: can determine if the stock level for
boost production levels to meet a part is sufficient to cover demand,
new requirements. However, 1. AI will accelerate problem making defense manufacturers
with increased production comes detection to augment and de-risk more sensitive to supply chain dis-
a number of challenges, which lean operations ruptions, variations in demand, and
can only be solved with digital production downtime.
technologies. The use of AI within defence
forces and manufacturers is on the 2. Project management platforms
Deloitte argues that A&D orga- rise. With the U.S. Department of will drive new efficiencies and
nizations must take digital Defense (DOD) budgeting US$1.8 increased optimisation
transformation seriously if they are billion for AI applications, it states
to unlock growth and efficiency in that AI applications will be used to Defense manufacturing projects by
today’s growing defense market help defence forces and organisa- their very nature are complex, with
environments. This means a com- tions recognise patterns, learn from multiple production lines working
pany-wide approach to software experience, make predictions, and to intricate assembly requirements.
and information that connects generate recommendations. Project management, already a
the shop floor to the top floor so major challenge for defense manu-
that they all operate efficiently to To help deal with surges in demand, facturers, is further exacerbated by
increase production, precision, defense manufacturers have ERP management software causing
and agility. And that means moving reversed inventory strategies from a disconnect throughout operations,
away from siloed and inconsistent lean and just-in-time principles alongside a lack of a skilled work-
information sources to a single to over-stocking parts to ensure force readily available to defense
integrated management system. inventory buffer. Despite reducing manufacturers.
Only this way will businesses be production risks, financial risks
able to collect the data from the have been increased due to cost of Implementing integrated project
Manufacturing Execution System purchase, storage, and tracking of management software will allow
(MES) and Enterprise Asset materials and parts. To better bal- defense manufacturers to align their
Management (EAM) system to ance risk, defense manufacturers planning through their operations
inform the Customer Relationship can look to integrate operations and to optimize their production and
Management (CRM) and Enterprise take advantage of demand-driven increase efficiency.
32 | AUGUST - OCTOBER 2024 WWW.GBP.COM.SG/ADT