Digital Transformation in Manufacturing #2
Building on the imperative to maximize human potential, the strategic aim of leveraging digitized knowledge is clear: to ensure the entire operation is robustly future-proofed against the inevitable shifts and churn within the modern workforce.
To delve deeper into these strategic implications, we return to our speakers and leaders. Shinichiro (Shin) Nakamura, President of one to ONE Group (o2OG), a global company specializing in steel tube engineering and manufacturing. This group also includes the 90-year-old Japanese steel tube manufacturer, Daiwa Steel Tube Industries (DSTI). Joining him is Arjun Chandar, Founder and CEO of IndustrialML, an innovative technology partner of o2OG.
Moderator: Arjun, you discuss enhancing human flexibility, which appears to differ from the typical Industry 4.0 emphasis on machine efficiency and automation.
What are the main blind spots or weaknesses in a data strategy that relies only on machines, which might stop manufacturers from effectively preparing their operations for inevitable future changes in personnel?
Why Machine-Centric Isn't Enough to Future-Proof Operations
Arjun: No business is ever going to make exactly the same parts exactly the same way forever; their customers will inevitably evolve, and so the companies will need to evolve as well.
This means that there will always be a need for human expertise to know how parts are made and how to maintain or upgrade equipment properly, even if the company automates more mundane tasks. There is also always going to be a need to have at least some people on the plant floor to monitor machines.
However, people change jobs (more often nowadays than in decades past) and people retire, which means that new people need to be able to integrate into those operations quickly to minimize risk. Ideally, future-proofed manufacturing operations must therefore also be resilient to changes in the workforce and maximize human flexibility.
Shin: Digitization of knowledge is critical to that. Once the skilled expertise from the factory floor is digitized, it is transferable across generations and locations.
Mod: What are the current challenges for manufacturers in this regard in building resilience through the use of digital technology?
Arjun: A big part of the management mentality for Industry 4.0 is that people are the biggest bottleneck in operations, with sayings like, “I can take more of the responsibility away from people." Nevertheless, over the past six or seven years, managers and companies in the manufacturing industry have come to understand that people are still very important to the manufacturing operation in some ways, and that's always going to be true.
Industry 4.0 mainly focuses on collecting data from machines and using it to improve their efficiency. In contrast, human-centered digitalization, especially when it comes to real-time use, hasn't progressed as far in its implementation.
Mod.: That is a common challenge of digital transformation. What solutions are possible?
Labor Shortage Solution: Maximizing Human Flexibility with Integrated
Arjun: Information regarding man, machine, and money can be integrated, utilizing AI to assist on-site workers’ immediate decision-making. This realizes operations resilient to workforce changes, while maximizing human flexibility.
That means, instead of machines just exchanging information with each other or with the system, people’s comments or activities, along with machine information, interact with each other in every way.
Mod.: Can you elaborate on that?
Arjun: For example, we can use AI to convert text into speech more easily so that people don't have to spend as much time writing. We can also use AI to process and summarize all the information coming from these sources, allowing you to present conclusions to people more quickly, rather than requiring someone to read a lengthy report to obtain those conclusions.
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The labor shortage solution, including knowledge transfer, requires moving beyond mere automation. It demands adopting a system designed to maximize human flexibility and operational resilience. For deeper dives into truly future-proofing your manufacturing enterprise, subscribe to the o2Oh blog for exclusive access to our ongoing insights.
