Posts

Digital Transformation and The Cost of Doing Nothing

Prior to Augmentir, our founding team was involved in founding Wonderware Software in 1987, Lighthammer in 1997, and ThingWorx in 2008. In 2017, we recognized that the technology and market forces were aligned yet again, for a fourth industrial software revolution. A revolution that focused on increasing the productivity and quality of processes involving front-line workers.

Times have changed since 1985 when relying on tribal knowledge was the only option for a frontline worker, and today, via digital transformation efforts, we are lucky enough to have new technologies and resources that enable frontline workers to do their best work in a complex world. Although taking the steps toward digital transformation can seem scary or overwhelming, the longer you wait and “do nothing”, the more difficult it becomes to modernize. Not having the proper resources or being unsure about the digital transformation process are common hesitations for most organizations.

Beginning your digital transformation is like beginning your journey to the gym after a long day. You can come up with a million excuses for not wanting to get your workout and usually, the hardest part is actually taking the first step to get there. But once you’ve started, you never regret it! According to LNS Research, most manufacturing companies have at least begun their digital transformation journey, and for those that have not, the hardest part is just taking the first step.

Here’s what doing nothing is costing you today.

“Doing nothing” is costing you $234,900 every year with 1 changeover

If you could reduce variability in the execution of one changeover you could save 15,660 hours each year.

If the variability in completing a changeover between 2 operators is 1 hour and a changeover is performed 1/day, you are losing 261 hours each year for 1 operator.

Now, let’s look at shifts – if the average variability between A-shift, and B-Shift is +1 hour and C-Shift is +2 hours – with a total of 20 frontline workers on each shift and each operator performing 1 changeover /day the variability in hours relative to A-Shift is equal to 60 hours every day and 15,660 hours each year.

Multiply that times at the national average of $15/technician, over the course of 1 year, “doing nothing” for just 1 task is costing you $234,900 in employee time alone.

Quantify increased throughput, proficiency, productivity, and quality though frontline digital transformation, and there is even more impact!

“Doing Nothing” for manual data entry is costing you $97,875 per year

If you could save 15 minutes per day for an operator by eliminating data entry, after 1 year you would save your employee 3,915 minutes!

Multiply that time across 100 employees at the national average of $15/technician, “doing nothing” is costing you $97,875 per year.

“Doing Nothing” for apprenticeship programs is costing you $5,742,00

The average time for a new unskilled hire in an apprenticeship program is 2 years. If you could reduce the time that the new hire spends in the apprenticeship by 25%, you would save 1,044 hours for each new worker you hire. Reducing apprenticeship time by 50% would save 2,088 hours for each new hire. Reducing apprenticeship by 50% for 50 unskilled new hires would save you 208,800 hours.

Multiplying that time at the national average of $15/hour across 50 new hires, “doing nothing” to reduce a 2 year apprenticeship program by 50% is costing you $1,566,000.

Quantifying the impact on the skilled workers giving their time to the apprenticeship program, at $40/hour across 50 new hires amounts to an additional $4,176,000.

Why not start today?

If increasing proficiency can pave the way towards frontline worker digital transformation and save you the cost of doing nothing, why wouldn’t you start today?

If reducing variability can pave the way towards frontline worker digital transformation and save you the cost of doing nothing, why wouldn’t you start today?

If one simple digital procedure can pave the way towards frontline worker digital transformation and save you the cost of doing nothing, why wouldn’t you start today?

The business impacts of doing something are clear:

  • Accurate Data Entry
  • Job Visibility
  • Execution variability insight
  • Downstream impact
  • Decrease downtime
  • Increase throughput
  • Reduce/ Eliminate training
  • Easily accessible documentation

With the proper AI-powered Connected Worker tools, your workers become more integrated and you gain access to a new rich source of activity, execution, and tribal data that lead to valuable insights into areas where the largest improvement opportunities exist. AI lays a data-driven foundation for continuous improvement in the areas of performance support, training, and workforce development, setting the stage to address the needs of today’s constantly changing workforce.

If you don’t start now, there’s always going to be something that happens in the next 6 months that will also prevent you. This was a trend that was occurring before the pandemic, but the pandemic has accelerated it greatly. There is pressure to keep up with the new normal and the faster you start the better equipped you will be. You could continue to fight this fire with a firehose and keep it at bay, but the fire isn’t going away until you solve the root problem.

You have an opportunity, right now! Older workers are aging out, and you’re working hard to hire new, young, bright, excited workers. These younger workers expect tech. They’ll embrace change. If not now, when?

National Roots Day – A History of Manufacturing Software Innovation

Prior to Augmentir, our founding team was involved in founding Wonderware Software in 1987, Lighthammer in 1997, and ThingWorx in 2008. In 2017, we recognized that the technology and market forces were aligned yet again, for a fourth industrial software revolution. A revolution that focused on increasing the productivity and quality of processes involving front-line workers.

National Roots Day is celebrated on December 23rd as a chance to celebrate one’s history, heritage, and ancestry. It’s often said that a combination of each person on one’s family tree helps to shape them into the person they are today.

At Augmentir, we agree that the past is important, and it has definitely shaped Augmentir into the company it is today. This year, we’re using National Roots Day to reflect on our history and how Augmentir came to be the modern Connected Worker platform that you use and trust today. The Augmentir founding team, Russ Fadel, Phil Huber, and Lawrence Fan, has been at the forefront of the most important software technology revolutions. Prior to Augmentir, our founding team was involved in founding Wonderware Software in 1987, Lighthammer in 1997, and ThingWorx in 2008. 

In 2017, the founders of Augmenir recognized that the technology and market forces were aligned yet again, for a fourth industrial software revolution. A revolution that focused on increasing the productivity and quality of processes involving front-line workers. 

Transforming How Machines Run

In 1987, Wonderware transformed how machines run, with the introduction and mass commercialization of Human-Machine Interface software. Wonderware enabled the first software-based industrial revolution and is still in evidence today by Wonderware’s continued leadership position.

Revolutionizing the Factory Floor

In 1997, Lighthammer transformed manufacturing yet again with the introduction of the first Enterprise Manufacturing Intelligence platform. Lighthammer revolutionized the factory floor by bringing both real-time intelligence and live synchronization with the ERP software layer. This enabled the second software-based industrial revolution and is still evidenced today by the ubiquity of this software (currently under the SAP MII brand).

Catalyzing the Industrial Internet of Things (IIoT)

In 2008, ThingWorx catalyzed the Industrial Internet of Things (IIoT) with the introduction of the first application platform for IIoT. ThingWorx transformed both manufacturing and service, becoming synonymous with Industrie 4.0/Brilliant factory, and Connected Service. This enabled the 3rd software-based industrial revolution and is still evidenced today by the ubiquity of IIoT software and the market leadership of PTC’s ThingWorx brand.

 

Today, at Augmentir, we are continuing this trend of bringing innovative software into the manufacturing sector by focusing on the people that make up such an integral part of the digital transformation equation.

How Digital Transformation Shapes the Future of Food Manufacturing

These virtual events were a great way to connect with manufacturing professionals and discuss some of the industry’s top challenges and topics – workforce transformation, learning and development, lean manufacturing, and autonomous maintenance.

Last week, Augmentir participated as a sponsor in the 2021 American Food Manufacturing Summit. This 3-day virtual event was designed to bring food and beverage manufacturers together to discuss current trends, strategic insights, and best practices in an ever-evolving environment. The event focused on addressing today’s top challenges and future of food processing and manufacturing, specifically around embracing digital transformation and technology for manufacturing excellence. Attendees were able to connect with top industry influencers and learn about different strategies to improve automation, operational excellence, quality, and safety in the food manufacturing industry through open roundtables and 1:1 meetings.

Augmentir’s Enablement Director, Shannon Bennett, hosted an open roundtable discussion on the role digital transformation plays in food and beverage manufacturing, and how technologies like artificial intelligence (AI) and connected worker platforms are helping companies kick-start their digital transformation efforts. During the discussion, Shannon opened the floor to the attendees to discuss the day-to-day challenges they face at their manufacturing organizations and the tools they’re looking into to solve those challenges. 

Solving Manufacturing’s Biggest Challenges with AI and Connected Worker Technology

The roundtable consisted of executives and manufacturing leaders from some of the world’s largest food and beverage companies to smaller family-owned and operated specialty food and beverage manufacturers. Throughout the roundtable, we heard the same challenges and frustrations related to standardization, moving from paper to digital processes, data collection, lack of traceability, and an overall need for digital transformation.

The overarching roundtable discussion was around digital transformation. Food and beverage manufacturers are accelerating the pace of digitization to address their top challenges – the labor crisis, increasing skills gap, and increased pressure for improved production efficiency, changes in consumer demands, and increased regulatory compliance related to food safety.

Moving from Paper to Digital

During our roundtable discussion, most of the manufacturing leaders were in the discovery phase of their modernizing process, where they were beginning to look into digital solutions to solve their challenges around manual processes and efforts to reduce paper. Some of the discussion around paper included issues with quality on the shop floor and wanting to go paperless, easier access to training for employees, lack of traceability (for example, maintenance schedules need more visibility of completion, where issues arise, and more transparency all around), and digitizing information from a quality standpoint.

Digital work instructions reduce the need for paper and deliver information to frontline workers when and where they need it. This provides frontline workers with a standardized way of performing technical work.

Lack of Data-Driven Insights into the Work Being Done

Another key challenge was the lack of insight into how workers were performing their jobs – whether it be in quality, equipment operation, or maintenance. One participant discussed labor challenges in their organization and that when they collect data it often gets lost and when they come back to it, they don’t know or remember why they’ve collected it in the first place.

Connecting workers with digital tools is merely a first step in the process of truly understanding and getting clarity on the work being done. Connected Worker data is inherently noisy, generating misleading signals that traditional business intelligence (BI) tools aren’t designed to handle. This leads to murky or contradictory conclusions that prevent organizations from taking anything but a “one size fits all” approach to work process and workforce investments. Or, even worse, false conclusions are generated about the state of work process and workforce opportunities, leading to targeted investments into the wrong areas.

The discussion shifted to AI as a solution not only bringing clarity to the work being done, but also more generally democratization of the workplace, and giving employees the tools to use data effectively to improve manufacturing operations. AI is designed for purpose to recognize patterns in the noisy data sets generated by a factory workforce, letting your continuous improvement and operations teams focus on what’s really going on.

Training

Employee onboarding and training was also a hot topic of discussion. Many participants spoke about manual processes and how traditional training methods are proving to be ineffective.  Traditionally, there was a clear separation between training and work execution. However, many participants shared that they are starting to re-think how they are training and onboarding their workers, and shifting more towards delivering training at the moment of need. The roundtable participants discussed at length approaches and strategies for re-thinking how training is delivered for today’s workforce.

Build a Modern, Connected Workforce with AI

To address these challenges, the roundtable participants overwhelmingly agreed that digital transformation initiatives for food manufacturing should start by focusing on streamlining data collection and digitizing valuable data. Using an AI-powered connected worker platform to accelerate this effort not only furthers a company’s digital transformation efforts, but also provides a whole new set of data that can provide really interesting insights and optimization opportunities. AI doesn’t remove the human worker from the equation, but rather, takes the human worker and embeds them into the digital operation.

 

To learn more about how AI is being used to digitize and modernize manufacturing operations, check out our latest eBook – Build a Modern, Connected Workforce with AI.

 

The Real Benefits of Digital Work Instructions in Manufacturing

The benefits of digital work instructions go far beyond simply standardizing work. The real benefit is in personalized guidance and support for today’s workers.

Digital work instructions are step-by-step directions on the best way to complete any task, from basic maintenance to fixing equipment. These digitized instructions are electronic versions of work procedures that are kept in a centralized system so workers can easily access them to work on tasks or to make timely decisions on projects. While the benefits of digital work instructions are numerous, the real benefit in manufacturing comes when digital work instructions can be personalized to the unique needs and skills of each worker.

So say goodbye to static documentation and hello to a new era of personalized digitization. If you’re interested in learning the real benefits of digital work instructions, read on about the following:

How digital work instructions are transforming manufacturing processes

Traditional instructions on paper can slow down a manufacturing operation. They can be lengthy, become quickly outdated, and are often full of mistakes. With paper-based reporting, for example, workers may forget to note the condition of equipment or update a faulty procedure.

Fortunately, digital instructions are an ideal solution. They offer visual demonstrations, how-to videos, and other resources for completing tasks. Most importantly, when digital work instructions are managed and delivered through a connected worker solution, they can be kept up-to-date to ensure compliance and product quality. According to Quality Magazine, not only do digital work instructions support overall enterprise productivity, but they also provide workers with an improved level of control over their work through enterprise data and automated insights.

benefits of digital work instructions

When you digitize your procedures, they can be accessed and kept up to date from wherever employees work. They can be enhanced with visual aids, contextual information, and augmented reality experiences to guide workers through complex jobs. Best of all, workers are less likely to make mistakes or miss steps when they can easily refer to clear and visually engaging information.

Digital work instructions are maintained via a connected worker solution, and delivered through mobile or wearable devices on the shop floor. These solutions can be coupled with AI-powered software to further help companies digitize production procedures.

This leads to greater worker productivity and output.

The real benefits of digital work instructions

Digital work instructions provide countless advantages when implemented throughout your entire organization, including improved production processes, decreased downtime, greater operational competence and safety, as well as support for a centralized database of knowledge. On their own, they deliver standard work guidelines but fail to consider the unique skills of each worker, which is increasingly important in today’s evolving and labor-constrained workforce.  The typical one-size-fits-all approach to managing, guiding, and supporting employees won’t cut it in today’s market.

Businesses need a solution that helps them improve manufacturing processes and meet their workers where they are.

This is where AI-based solutions come in.

Using AI-based connected worker solutions, organizations can digitize and easily manage skills tracking and training programs and connect them with frontline operations. Embedded AI can dynamically optimize work processes to deliver training in the flow of work, tailored support, and more. Solutions that combine skills tracking capabilities with connected worker technology and on-the-job digital guidance can deliver significant additional value. Data from actual work performance can inform workforce development initiatives allowing you to target your training, reskilling, and upskilling efforts where they have the largest impact.

It can generate an abundance of valuable data to provide tailored training support and skills endorsements and identify workforce opportunities. These benefits extend beyond simply standardizing work to include:

1. A more motivated, more engaged workforce

An organization’s commitment to cultivating its team’s skills can influence their attitudes toward the job. A worker is likelier to perform better when valued and appreciated. Digitized skills tracking also ensures that workers are qualified to perform their job.

2. Mitigate risk and ensure safety

Solutions that include personalized work instructions that incorporate worker skills allow organizations to validate at the time of work assignment who has the skill level to safely perform a specific task. This helps to mitigate risk and ensure safety.

3. Intelligently assigning work

Ensure the right person is assigned to the right job. Manage work assignments based on skill level, endorsements, and actual job performance.

skills taxonomy

4. Closes the skills gap

Tracking skills is a great way to identify gaps between the skills employees already have and the skills they need. With this information, the company can arrange for additional training or other ways to invest in their employees. Keep in mind that as your manufacturing organization evolves and grows, so should your employee skillset.

6. Identify upskilling or reskilling opportunities

Use data from actual work performance, combined with an employee’s current skills and endorsements to inform your reskilling and upskilling decisions. Knowing where improvements need to be made can close any learning gaps and boost the overall success of a company. Optimizing your workforce can help improve productivity in every department, giving your company a competitive edge in today’s market.

 

Connected worker solutions that combine skills management with digital work instructions, collaboration, and knowledge management are uniquely suited to optimize today’s variable workforce. AI-generated insights are pulled from patterns identified across all work activity in real-time. These insights identify where new and experienced workers may benefit from either reskilling or upskilling.

This combination of smart digital technology can also leverage your training resources, such as instructional videos, written instructions, or access to remote experts, to deliver personalized guidance for the worker to perform their best. These tools intelligently work together to help you assign workers to procedures based on required skill levels.

FAQs about digital work instructions

What is the purpose of digital work instructions?

Digitized work instructions provide clear, step-by-step directions on how each manufacturing task should be performed. They are kept in a centralized database for real-time view of procedures, how-to videos, training opportunities, and more. Companies implement them in order to improve workers’ procedural knowledge, ensure standard work compliance, reduce mistakes, and raise production quality overall.

How can digital work instructions help manufacturers?

Digital work instructions help manufacturers create a more productive workforce that values detail, quality, and learning. Work instructions can be updated to fit best practices, reduce human error, and provide learning opportunities with visual cues like videos, pictures, augmented reality experiences, and more.

Which work instruction software is right for me?

Although there are different software programs out there, Augmentir is the world’s leading connected worker solution, and the only solution that uses AI to personalize instructions based on individual worker proficiency and skill levels.

How Augmentir’s digital solutions can help

Digitizing work instructions is a great start to address manufacturing issues, however, alone, it won’t help completely solve some of the biggest workforce challenges. It’s not enough to simply move from paper-based to digital work instructions.

We must go a step further, for example, Augmentir’s platform provides complete digital workflow authoring tools that allow you to not only quickly convert your paper-based processes to digital work instructions, but also use AI to dynamically personalize them to the needs of your individual workers.

  • Digital work instructions, augmented with visual aids, contextual information, and industrial collaboration tools, help intelligently guide workers through complex jobs
  • Complete workflows allow you to digitize complex business processes
  • Embedded AI dynamically optimizes work procedures and workflows to deliver in-situ training and support

 

See Augmentir in Action
Get in Touch for a Personalized Demo
Book A Demo