Process optimization and training market poised for explosive growth, ARC finds
The real-time process optimization and training market is expected to grow by nearly 10% per year over the next five years. The market was about $670 million in 2005 and is forecasted to reach more than $1 billion in 2010, according to a new study by the ARC Advisory Group, “Real-time Process Optimization and Training Worldwide Outlook”.
“One segment in particular experienced significant upheaval that resulted in numerous acquisitions and reshaping of the market landscape,” said Tom Fiske, Ph.D., senior analyst and the principal author of the study. “Industry consolidation appears to have slowed down and with the strong prevailing economic conditions, strong growth lies ahead.”
ARC reports that the transition from production-driven manufacturing to demand-driven manufacturing requires a greater variety of products, more frequent changeovers, and shorter production runs. It also requires increased agility and flexibility so that plants can efficiently execute production plans and profitably capture spot market opportunities.
Competing with a demand-driven business model offers significant benefits, but it also places greater demands on manufacturing operations.
RPO solutions play a greater role in demand-driven environments as they reduce process variability, improve product quality, and allow operations to push constraints to the limit. With more frequent grade changes, RPO solutions are needed to effectively manage product transitions and provide the necessary agility to effectively operate in a customer-centric domain that improves overall profitability. Successful companies are driving out inefficiencies and attaining nearly flawless execution through the increased reliance on RPO solutions.
Manufacturers have been using RPO solutions for many years. Despite this fact, RPO implementations can be time-consuming and costly. Users are looking for ways to reduce the cost and risk associated with these solutions. Recently, RPO suppliers have responded to users’ demands by making a concerted effort to decrease implementation time and improve on-line service time to maximize the benefits of their applications.
Many suppliers have added sophisticated tools to ensure their applications perform at the highest possible levels. Meanwhile, RPO suppliers are increasing the functionality of training simulators to enable them to perform more design and operational decision support tasks.
For more on the report, go to www.arcweb.com .