End-to-end digitisation in manufacturing: what's in a name?

We have therefore learned what the right methodologies are, what works and what does not, and where technology and software add value. We combine our practical experience in digitising processes with the expertise of highly skilled engineers, business analysts and software developers. Our input ensures that manufacturing companies can switch faster, make fewer mistakes in the process and increase their returns.

End-to-end digitisation means we can smoothly handle the entire process of a product digitally, from the quotation meeting with the customer to the delivery of the final product. Most departments or disciplines within the organisation are involved: sales, engineering, purchasing, production, invoicing. Administration and paperwork are replaced to the maximum by software and online applications. This benefits quality, traceability and efficiency. Less paper equals fewer errors and less wasted time.

We start from the concrete demand and specific needs of customers. Even in a production environment, every project starts from the customer-specific question. We capture that question in a digital system at the time of the quotation and then streamline the various steps leading to delivery.

In our approach, we usually do not opt for a 'big bang'. We look for quick wins, starting with small steps, but framing them in a bigger picture: end-to-end digitisation is the final goal, but we work towards it gradually. The step-by-step plan also ensures that involved employees quickly see the results of efforts and investments. It also often solves very practical problems they faced.

Step 1: a blue paper workshop

To work out a vision of end-to-end digitisation, we start with a so-called "blue paper workshop". We invite the client to our office to brainstorm, away from the day-to-day concerns, what a digitised process will ideally look like.

For this, it is crucial to assemble a core team of people involved in each stage of the process so that their concrete experience can be brought in. These are some of the questions from which such an exercise starts: How do we make contact with the end customer? How is an offer made? What is the process of ordering? At what stage do engineers play a role? Where and when is the purchasing department involved? Where are the levers to achieve higher efficiency or better quality in production? What are the challenges in the process to which technology can provide an answer, ...?

We also take into account the internal know-how that has been built up over the years, often organically. The knowledge that has not (yet) been secured, but is present in the heads of the employees: which persistent problems do we need to tackle? What solutions were already thought of in day-to-day operations? Where is the biggest leverage when digitising?

Step 2: making technology choices

2.1 A Configure Price Quote system

Implementing technology in business processes can be done at different levels. Hence, we opt for a gradual approach within a holistic view of the digitisation process. We see that customers often start from the customer perspective, i.e. from the quotation process and internal order processing. This is where a Configure Price Quote (CPQ) system offers a solution: the preparation and calculation of the quotation, linked to the internal processing and the flow that follows an order to the ERP system and the shop floor. The higher the complexity (high variety of options, small volumes), the more efficiency gains to be made.

Squadron implements CPQ solutions such as Trimit and Elfsquad.  

• Trimit is a Danish solution, which has the great advantage of integrating perfectly with Microsoft Business Central. It contains a configurator for order intake or configuration of the product and the resulting logic for purchasing, production and pricing is immediately included in the various processes. It is therefore an ideal CPQ for high mix/low volume companies.  
• Elfsquad is a stand-alone application for product configuration, which does not integrate into the ERP environment. Only the end result is transferred into the ERP system. One of its strengths is the experience for the end customer: Elfsquad also includes 3D visualisation.   
• A third option is tailor-made development of a CPQ, e.g. because there are very specific needs for the configuration and pricing of a product range.

But we do not limit ourselves to standard solutions. If necessary, we provide custom software development and applications tailored to specific (sub-)processes. Shopfloor apps often offer quick wins, for example. They replace paper flows with a tool or dashboard app for the operator, e.g. to keep track of production numbers, do simple stock management, log quality indicators or register incidents. With an incident management app, it becomes much easier to record problems and then analyse the possible causes. Note: success hinges on simplicity and user experience.

Moreover, don't forget that in addition to implementing a tool, a guidance and change process is needed. After all, the way work is done also needs to be changed. 

A digital transformation is never finished. It becomes a continuous process of evaluating, adjusting, perfecting further. The more we can standardise in digital processes, the easier that becomes. Our lesson learned: keep your ERP system as standard as possible at the start to avoid experiencing problems with future upgrades. And make sure that any customisation is future-proof.  

As a partner of Microsoft, we prefer Business Central as an ERP. It was voted best ERP for the manufacturing industry by Forbes. Business Central offers the necessary functionalities to achieve good process management and includes all basic data as standard, linked to financial reporting. This usually allows us to meet most of a customer's specific needs.

On top of the Microsoft ecosystem, we can integrate existing applications via the Azure cloud and the Power Platform. We also develop new apps ourselves, tailored to the needs at the manufacturing company's end customers or for a specific need in production. Such integrations are tailor-made anyway. Linking different applications is also best done as automatically as possible. The more integrated it is, the less manual work remains.

If additional programming is required, we use the Power Apps platform. Since 2019, low-code allows us to develop new applications in a fast way, with less code and therefore less chance of errors. It allows you to create, deploy and quickly adapt customised applications. It is an ideal way to digitise processes.

In this way, data constantly provides new input to further develop the digital factory. For SMEs, this means opting for a flexible platform that allows gradual implementation, and scaling up according to the speed achievable for the organisation.  

CRUCIAL SUCCESS FACTORS

Our experience has taught us that four factors are crucial for successful digitalisation:

• Set aside enough time for analysis. There is a lot of truth in the way work is done today. Dissect that situation, examine the 'why' behind the current way of working. And then consider how it can be digitised to do it better. 
• Technology can do a lot, but not everything. Digitising a bad process produces a bad digitised process. Look for the added value of software and applications. Invest in the right solution that benefits the company, employees and customers.  
• Pay ample attention to the culture in your company. The entrepreneur's vision plays an important role in this, as does the freedom he gives to his teams. Collaboration across departments will be a necessity. Engagement and change management equally so. 
• Develop tools and applications that are inclusive and encourage their use. Let the app follow the logic of the employee, rather than vice versa. The easier it is to use, the smoother employees will start using it. Simpler applications usually also mean that you can control the budget better.

Excited to get started with end-to-end digitisation?