EQMS Forecast Calling for Clouds

Last week, we covered the basics of cloud-computing in manufacturing. Much excitement in the space surrounds how Service as a Software (SaaS) delivers improved configurability, scalability, low implementation costs, and a reduction in the need for maintenance.

Cloud-computing is a new paradigm that will be increasingly considered in business decisions as time goes on. While the concept is still young and there is enormous room for improvement, web-based systems have already made significant impacts on key manufacturing areas, specifically within Enterprise Quality Management Software (EQMS).

In this blog, LNS Research examines how cloud-computing is ameliorating collaboration and supply-chain visibility. We will also take a look at the implications of a web-based migration for your organization.

Enterprise Collaboration in the Cloud

A growing focus in manufacturing, whether it pertains to mitigating operational risk, staying in compliance, or any number of other issues, is on interconnecting disparate groups and business processes for greater efficiency. Collaboration between the right mix of people, resources, and technology is key for this to happen.

Companies need strong communication between manufacturing, engineering, and the supply-chain among others for smooth collaboration. To accomplish this, many leading manufacturers are looking toward core IT platform plays, like Microsoft SharePoint. SharePoint allows users to share and collaborate on hundreds, thousands, or even millions of documents in a manner that is structured and centrally managed. Many companies use this solution as a first step toward collaboration, building on top of it with applications by Independent Software Vendors (ISVs) offering more specific functionalities.

There are several EQMS applications in the marketplace today that are built on top of the SharePoint platform. These solutions allow users to benefit from proven security, scalability, and flexibility, while also having industry-specific functionality, such as change management, audit management, and submission control.

Supply-Chain Management in the Cloud

Managing a global supply-chain comes with many risks, but if it’s leveraged correctly, the bottom line and operational benefits can be significant. When supplier quality management solutions are implemented on a global level, cloud-computing can help users better understand the processes of their suppliers. For instance, root causes and failure modes experienced at one supplier plant may be assessed and resolved before the product has even been shipped, decreasing the need for delivery inspection. Because every plant is running on the same system over the cloud, this can then be communicated to others that may be using similar processes.

Access to real-time information across plants can reduce or eliminate the need for on-site audits, reduces the need for warranty reserve over time, helps to communicate best practices to suppliers, and can reduce the number of quality inspections and defects. Compiling this information into a comprehensive supplier risk portfolio over the cloud gives users a better understanding of how their quality is affected externally.

Cost Implications of a Migration

With many applications and systems still working on proprietary networks or now migrating in piecemeal, cloud-computing remains very much so an emerging technology. Larger manufacturers understand that the benefits of moving to a web-based system are integral for remaining competitive in the future. However, because of previous heavy investments in on-site infrastructures, the advantages of the move may be somewhat bittersweet in the short-term. The cost of a systematic re-architecture can be daunting.

Alternately, applications running on cloud-based software seem to be a particularly good choice for up-and-coming smaller businesses aiming to gain a share in traditionally rigid markets. Via cloud subscriptions, these organizations now have access to capabilities, which, in the past, were mostly offered to those with larger budgets.

Where to Go From Here

Cloud-computing is gaining ground quickly. Whether you’re just starting a business or you’re the CEO of an international conglomerate, the idea of what it can accomplish at an enterprise level is very exciting.

The question today seems to be whether to continue with waiting for economies of scale benefits with large up-front investments in on-site implementations or to pay a relatively low monthly subscription fee now (a fee that will likely increase over time, which is a fact that should be considered in these decisions). Still, we believe that in the not too distant future, using cloud-enabled web-based systems that are flexible, scalable, and allow for interoperability will be a best practice of quality management.

Keep that in mind in your upcoming technology decisions!