{"id":10812,"date":"2022-03-15T03:28:23","date_gmt":"2022-03-15T03:28:23","guid":{"rendered":"https:\/\/fortude1.wpenginepowered.com\/blog\/moving-from-open-loop-to-closed-loop-manufacturing-with-digital-transformation-blog\/"},"modified":"2026-05-07T05:56:36","modified_gmt":"2026-05-07T04:56:36","slug":"moving-from-open-loop-to-closed-loop-manufacturing-with-digital-transformation","status":"publish","type":"blog","link":"https:\/\/fortude.co\/blog\/moving-from-open-loop-to-closed-loop-manufacturing-with-digital-transformation\/","title":{"rendered":"Closed-Loop Manufacturing with Digital Transformation"},"content":{"rendered":"<p><strong>In this three part blog series, John Broadbent, External Consultant at Fortude, explains how F&amp;B manufacturers can do more with less while transforming business processes and services using digital technologies such as Industry 4.0.<\/strong><\/p>\n<p>Is digital transformation a fad, a necessary evil, or mere noise? How does your manufacturing business view digital transformation? Depending on how the business leadership perceives digital transformation, a manufacturing business may see it as a headwind or a tailwind. But, whether we like it or not, digital transformation (DTx) is happening!<\/p>\n<p>If you think about this for a moment, I\u2019m sure you\u2019d agree this open-loop method is less than ideal. It\u2019s almost a \u2018send it to the factory and hope for the best\u2019 approach.<\/p>\n<p>Lack of real-time visibility and operating in open-loop mode adversely affects:<\/p>\n<p>\u2022     Attainment<\/p>\n<p>\u2022     Adherence to schedule<\/p>\n<p>\u2022     Planning <\/p>\n<p>\u2022     MRP runs<\/p>\n<p>\u2022     Raw material and FG discrepancies<\/p>\n<p>\u2022     Requirement for safety stock<\/p>\n<p>\u2022     Unfavourable variances<\/p>\n<p>\u2022     Customer deliveries and DIFOT impacts <\/p>\n<h4><strong>Closed-loop manufacturing<\/strong><\/h4>\n<p>Let\u2019s look at how a <b>closed-loop<\/b> manufacturing environment might operate when DTx is embraced, enabling data collection and timely information delivery.<\/p>\n<p>Imagine a \u2018smart factory\u2019 where all the layers of manufacturing systems, from ERP to factory floor (also called \u201cTop Floor to Shop Floor\u201d), work<br \/>\nseamlessly and in real-time.<\/p>\n<p>The ERP generates production orders, which, when released, automatically find their way to the various systems on the factory floor.When orders are commenced, usually via a human-machine interface (HMI), a message is automatically sent back to the ERP<br \/>\nto notify the order has started.<\/p>\n<p>Along the production route, important operations (such as weighing) record actual values and report these consumptions in real-time, back to the ERP, allowing the ERP to adjust stock-on-hand (SoH) and more effectively manage its inventory. If a trigger level is reached, planners can place supplier purchase orders well before production reaches completion, averting stock-out situations while lowering safety-stock<br \/>\ninventory levels.<\/p>\n<p>As widgets are made, these can either be sent to the ERP individually (e.g., high-cost medical devices), sent as serialized cartons (F&amp;B), or grouped as entire pallets of goods\u2014all automatic without human intervention. This is closed-loop manufacturing. Any change in production, such as breakdowns or delays, can be assessed and, if needed, communicated with the customer.<\/p>\n<h4><strong>Visibility<\/strong><\/h4>\n<p>Visibility means planners and customer-service people know what is happening and can adjust plans and deliveries accordingly.<\/p>\n<p>Real-time visibility and information exchange can only be accomplished by embracing digital transformation and adopting closed-loop manufacturing. This increases the agility of a manufacturing business and enables them to respond to changing conditions, both within the four walls of the factory as well as along the external supply chain.<\/p>\n<p>Written by:<\/p>\n","protected":false},"featured_media":15333,"template":"","meta":{"_acf_changed":false,"content-type":""},"industry":[14,13,11,16,12],"service":[52],"class_list":["post-10812","blog","type-blog","status-publish","has-post-thumbnail","hentry"],"acf":{"blog_render_type":"legacy_acf","sections":[{"section_title":"In this three part blog series, John Broadbent, External Consultant at Fortude, explains how F&B manufacturers can do more with less while transforming business processes and services using digital technologies such as Industry 4.0.","section_content":"<p>Is digital transformation a fad, a necessary evil, or mere noise? How does your manufacturing business view digital transformation? Depending on how the business leadership perceives digital transformation, a manufacturing business may see it as a headwind or a tailwind. But, whether we like it or not, digital transformation (DTx) is happening!<\/p><p>If you think about this for a moment, I\u2019m sure you\u2019d agree this open-loop method is less than ideal. It\u2019s almost a \u2018send it to the factory and hope for the best\u2019 approach.<\/p><p>Lack of real-time visibility and operating in open-loop mode adversely affects:<\/p><p>\u2022     Attainment<\/p><p>\u2022     Adherence to schedule<\/p><p>\u2022     Planning <\/p><p>\u2022     MRP runs<\/p><p>\u2022     Raw material and FG discrepancies<\/p><p>\u2022     Requirement for safety stock<\/p><p>\u2022     Unfavourable variances<\/p><p>\u2022     Customer deliveries and DIFOT impacts <\/p>","section_image":"","table_rows":null,"pro-tip":""},{"section_title":"Closed-loop manufacturing","section_content":"<p>Let\u2019s look at how a <b>closed-loop<\/b> manufacturing environment might operate when DTx is embraced, enabling data collection and timely information delivery.<\/p><p>Imagine a \u2018smart factory\u2019 where all the layers of manufacturing systems, from ERP to factory floor (also called \u201cTop Floor to Shop Floor\u201d), work\nseamlessly and in real-time.<\/p><p>The ERP generates production orders, which, when released, automatically find their way to the various systems on the factory floor.When orders are commenced, usually via a human-machine interface (HMI), a message is automatically sent back to the ERP\nto notify the order has started.<\/p><p>Along the production route, important operations (such as weighing) record actual values and report these consumptions in real-time, back to the ERP, allowing the ERP to adjust stock-on-hand (SoH) and more effectively manage its inventory. If a trigger level is reached, planners can place supplier purchase orders well before production reaches completion, averting stock-out situations while lowering safety-stock\ninventory levels.<\/p><p>As widgets are made, these can either be sent to the ERP individually (e.g., high-cost medical devices), sent as serialized cartons (F&amp;B), or grouped as entire pallets of goods\u2014all automatic without human intervention. This is closed-loop manufacturing. Any change in production, such as breakdowns or delays, can be assessed and, if needed, communicated with the customer.<\/p>","section_image":"","table_rows":null,"pro-tip":""},{"section_title":"Visibility","section_content":"<p>Visibility means planners and customer-service people know what is happening and can adjust plans and deliveries accordingly.<\/p><p>Real-time visibility and information exchange can only be accomplished by embracing digital transformation and adopting closed-loop manufacturing. This increases the agility of a manufacturing business and enables them to respond to changing conditions, both within the four walls of the factory as well as along the external supply chain.<\/p><p>Written by:<\/p>","section_image":"","table_rows":null,"pro-tip":""}],"bottom_sections":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Closed-Loop Manufacturing with Digital Transformation | Fortude<\/title>\n<meta name=\"description\" content=\"Transform your manufacturing process with closed-loop systems. Discover digital solutions that drive efficiency and innovation today.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fortude.co\/blog\/moving-from-open-loop-to-closed-loop-manufacturing-with-digital-transformation\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Closed-Loop Manufacturing with Digital Transformation\" \/>\n<meta property=\"og:description\" content=\"Transform your manufacturing process with closed-loop systems. 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