Smart Manufacturing and Culture Change
Smart manufacturing and culture change – why culture change is the magic ingredient in maximising the fourth industrial revolution.
First, some context for the uninitiated.
The first industrial revolution came with the advent of mechanisation, steam power and water power. This was followed by the second industrial revolution, which revolved around mass production and assembly lines using electricity. The third industrial revolution came with electronics, I.T. systems and automation.
Now we are at the genesis of the Fourth Industrial Revolution that you may have heard referred to as Industry 4.0, I4.0 or Smart Manufacturing.
Essentially, it is a digital transformation of the manufacturing lifecycle that extends and integrates the shop floor to digital technologies and approaches. It enables real-time decision making, enhanced productivity, flexibility and agility across the manufacturing business.
When computers were introduced to the manufacturing process we called it Industry 3.0. However, most of the computers that were introduced were standalone, siloed and not connected to each other. Planning and envisaging the whole manufacturing lifecycle was a manual process filled with inefficiencies and risk.
With Industry 4.0, computers are connected and communicate with one another to ultimately make decisions without human involvement. A combination of cyber-physical systems, the Internet of Things (industrial or otherwise) and the Internet of Systems make Industry 4.0 possible and the smart factory a reality. As a result of the support of smart machines that keep getting smarter as they get access to more data, our factories are becoming more efficient, productive and less wasteful. Ultimately, it’s the network of these machines that are digitally connected with one another and create and share information that results in the true power of Industry 4.0.
Industry 4.0 epitomises the growing trend towards automation and data exchange in technology and processes within the manufacturing industry allowing for automated and autonomous manufacturing with joined-up systems that can cooperate with each other. This automation includes interconnectivity between processes, information transparency and technical assistance for decentralised decisions.
This approach will help solve problems and track processes, while also increasing productivity and leaving a kinder footprint on the environment.
Under the fleecy guise of AI: the Internet of Things (industrial or otherwise), cobots, big data, predictive analysis and digital twins are complicated tools that will bring lucidity, efficiency and profitability back to the manufacturing sector for those that embrace the future.
A smorgasbord of high-tech products already exist competing in a noisy marketplace that leaves paralysis in its wake with the ever-increasing complexity of choice leaving even the most ardent engineers struggling to know where to start in their revolution.
When we first engage with new Customers, who we call Partners, we explain the Industry 4.0 layer cake. Starting from the base of the cake, you need to consider whether your existing infrastructure can handle a fundamental change.
IMIG AI Industry 4.0 approach
No one wants a soggy bottom
The connections between people, things (machines in this example) and data are going to increase in volume, frequency and complexity. Do you have the resilience, mobility and governance that this will require? Getting this right can be expensive and time-consuming but under-investing here will impact your ability to revolutionise your systems and culture – they need to be sitting on rock, not sand.
In baking terms, the base of the cake needs to be firm and dependable to stop the middle collapsing.
Augment rather than re-invent
The middle of the cake is a layer of interconnected systems that provide essential functions to the business and operational processes. If it helps, imagine it’s a layer of rich honeycomb.
Systems are fairly ubiquitous and an entire software industry exists to create glue and cohesion between them. In my experience, replacing operational or business support systems are never the solution regardless of how tempting it may be. Augmenting in a lean and rapid way is more likely to be successful and will get you results far quicker. Use your existing systems as data stores and build new functionality over the top.
How will your systems cope with increased data, interactions and needs? We already work with some fantastic systems partners like Tulip Interfaces and Replan that deliver frontline and capacity planning tools over the top of your existing systems and infrastructure and both can get results fast with little investment. How will your people adapt to new skill needs and faster response times?
Unity at scale
Lastly, it’s important to get to grips with the data you will create. First, do not under-estimate the volume you will generate. Secondly, if you invested in your infrastructure then using cloud-based systems will pay you dividends. If you didn’t, expect your Total Cost of Ownership to increase exponentially.
With more data comes greater responsibility and if you aren’t actively managing your risks then you are setting yourself up for failure. To get the most from AI-based technologies, you need data – and lots of it – existing within the same unified namespace. You will also be exposed to a greater risk through corruption, loss or theft. Treat your data as one of your most valuable assets. It’s the source you need to accurately train your future systems.
The magic ingredient
Culture is not the icing on top of the cake, it’s probably the most important layer. It’s both the creamy filling between and well as on top of the cake. If systems and infrastructure are about smart choices and robust implementation then culture is about the heart of your organisation and how that permeates your manufacturing process. Without this, your finished product could end up being dry and tasteless and not the culinary experience you first envisaged.
Consider culture in terms of people, things and data. Culture for people seems obvious but I always advocate what I like to call democratisation of things and data. By visualising shop floor processes you create buy-in from people. Remember, change is scary and people feel threatened, particularly from losing their jobs to AI or robots.
Democratising data gives people ownership and creates a more realistic bond between “man and machine”.
Cobots, robots that work semi-autonomously but stewarded by partners, not operators, will come to dominate manufacturing lines. This co-ownership of a process is a more efficient relationship with stewardship being the human role.
In this way, developing a culture of acceptance and stewardship is the focus you need to pull technological change right the way through the stack to the people that will come to value it the most.
Teaching old dogs new tricks with AI
A well-functioning organisation will be driven by data and again, culture plays an important part. This is less about numerical accuracy and more about visual literacy. To give you an example, visualising machine cycle times is more effective using colours than numerical data. The knowledge gap needs to be radically challenged and improved. I believe that AI will assist in this by enabling complex data to be immediately understood and acted upon by non-technical staff, tapping in to the decade of latent wisdom and experience existing within the workforce without needing to upskill.
Getting the right ingredients
Finally, it’s worth noting that Industry 4.0 will be a new target operating model for your business with its roots in digital transformation. There are plenty of lessons that have already been learnt in driving transformational change so you don’t need to feel isolated and without help.
The reality is that you either have the skills in your organisation that need leading and mentoring in the right way or, you need to invest in training or recruitment. Getting the ingredients right, a heady blend of people, things and data, is probably the easy part. Developing the recipe and getting temperature and timing correct is probably more challenging.
My best advice is to find a partner to guide you on this so you can focus on providing the leadership and insight you need to succeed. Find out more about our Digitalisation and Industry 4.0 services.
You can connect with Owen Tribe via his LinkedIn.