The Need for Paperless Manufacturing

May 5

In a world buzzing with digital technologies, it’s shocking to see the persistence of paper trails. My favorite term to describe this is ‘Sneaker Net’, a tongue-in-cheek play on the internet that refers to walking in sneakers as a transport mechanism for information. And hold onto your hats (or maybe your laces?), because the stats are eye-opening:

According to BCI’s 2023 Supply Chain Resilience Study, 59.8% said Excel spreadsheets remain the most popular indicator to record, measure and report on supply chain disruptions. What's worse is through the pandemic FEWER companies are now using technology to record, measure and report on performance-affecting supply chain disruptions – A drop of 14.9% from 2021 to 2022.

In the function of production – it is much worse! According to a 2022 iBASEt study, a whopping 95% of manufacturers still use paper based-vs digital processes in at least one function, while 27% use paper for over half of all activities. On top of that, according to Parsable in their 2023 State of Digital and Connected Work Report, 79% of factory workers still rely on paper-based documentation and checklists to track work and communicate with their team.

Let’s think about that implication for a minute...

Dr. Panko in his research in a study of human error, found that when performing data entry tasks related to spreadsheets, humans will average an accuracy rate of around 95%, even when dealing with small spreadsheets. When the complexity of the spreadsheet increases, the chance of a processing error rises to virtually 100%.

In addition, every year, poor data quality costs organizations an average of $12.9 million, according to Gartner.

From Basics to Excellence: Paperless Manufacturing Maturity Levels Explained

Paperless manufacturing isn't just about removing paper; it’s about empowering organizations with enhanced capabilities through strategic digital transformations. Let’s explore the capabilities each level of maturity brings and how to achieve them:

Level 1: Foundational Digital Capabilities

Real-Time Updates and Error Reduction: By implementing digital work instructions, companies can ensure that any changes in processes are immediately reflected on the shop floor, reducing mistakes and increasing efficiency.
Secure and Efficient Document Access: Transitioning to a cloud-based document management system allows for reliable and swift access to all necessary documents, ensuring that everyone is always on the same page.
Streamlined Operational Processes: Integrating basic ERP functionalities helps in managing inventory and scheduling more effectively, leading to smoother operations.

Level 2: Enhanced Integration and Efficiency

Automated Data Flow Across Operations: With full ERP and MES integration, data moves seamlessly across operations, providing the backbone for advanced automation and reduced human error.
Regulatory Compliance and Operational Flexibility: Advanced document control systems not only ensure compliance with industry standards but also offer flexibility to adapt to new regulations quickly.
Proactive Maintenance and Process Monitoring: Installing IoT sensors provides the capability for real-time monitoring of equipment, enabling proactive maintenance and minimizing downtime.

Level 3: Advanced Automation and Strategic Insights

Optimized Operations via Simulation: The use of digital twin technology allows companies to simulate processes and identify inefficiencies before they affect production, enabling preemptive optimization.
Data-Driven Decision Making: Advanced analytics and machine learning analyze data to offer deep insights and support complex decision-making, leading to smarter strategies and operations.
Adaptive and Innovative Culture: Cultivating a culture that values continuous learning and adaptation ensures that the organization remains innovative and competitive in a rapidly changing industry landscape.

Each capability at these maturity levels enhances operational efficiency, reduces costs, and boosts productivity.