With the inevitable arrival of Industry 4.0 in the manufacturing environment, putting people at the center of strategic planning will pay off and increase business performance, says Ashley Darley of Pollen Consulting Group.
The modern fool is worried that their jobs will be replaced by a robot. They claim we will lose the human touch. But this time, the machines aren’t chasing physical activities – they’re tasked with thinking, because the robot’s brain is evolving faster than their bodies.
From mechanization in the first industrial revolution (1.0) to mass production in the next (2.0) and on to automation, computers and electronics (3.0), there is an underlying theme of replacing humans with some kind of machine or process. The introduction of Industry 4.0 is no different, as computers are expected to replace some office functions through smart connectivity and the use of big data.
While several unknowns remain surrounding the actual likely impact of 4.0, or exactly when it will take hold, one thing we know for sure: it’s on its way. So rather than reacting when it hits, businesses should move forward by being proactive, especially when it comes to people. Advances of this kind should be seen as an opportunity rather than a threat. This is essentially a step change in the skill set needed to manage and operate the factories of the future, rather than a replacement. How can businesses embrace this? By having strategies for their people…
In business, people are our greatest asset. Despite advances in technology over the past few years, machines still lack a few things that humans bring. At the end of the day, it is the person who ultimately buys the product or service offered, so it makes sense that people are involved in the conception, development and production. People should complement what technology has to offer rather than being replaced by it, which can lead to a loss of knowledge, emotion and brand ambassadors. Therefore, alongside any technology strategy, there must also be a people strategy, which refers to the acquisition of skills from the outside and the use of those that already exist.
Retraining for the future
Rather than losing employees to the hands of technological advancement, we should try to take them on the journey with us. For example, the role of a production planner may soon be a thing of the past and replaced by smart systems connected to machines that optimally plan and sequence production at the click of a button. Wouldn’t it be better to proactively retrain an existing production planner for a new role that will be required, such as IT security, data analysis, coding or programming, to retain knowledge and passion for the business?
This doesn’t just apply to the office. In old factories, one of the biggest obstacles to change and improvement has always been the burden of additional processes: manual measurements, new quality assurance paperwork, calculating KPIs, filling out forms for visual management. Why not leverage technology and implement a factory of the future where visuals, KPIs and forms are all digital, auto-generated and user-friendly? Removing non-value-added elements not only increases productivity, but also increases the chance of change getting stuck. After all, who wouldn’t prefer a fancy gadget over paper and a calculator?
Both of the above examples require people planning and strategy in line with a clear technology strategy. It will be too late to act after the new system is in place and our people will be left behind.
Remember the days when applying lean principles set you apart from your competitors? Sadly, those days are gone; instead, it becomes a necessary condition for mere survival. Those who want to get ahead of the pack now will need a new competitive advantage and are increasingly likely to adopt and use some (but not all) of Industry 4.0 technologies. Whether it’s using big data to create a digital twin and make strategic decisions, or predicting future performance based on live data analysis, change is on the way, and as always in the past, people will be at the heart of success.
This article was previously published in “It’s not a revolution – it’s an evolutionWhite Paper by Pollen Consulting Groupan Australian consulting firm specializing in the FMCG sector.