Okay, the headline is a bit harsh. But it captures the frustration I’ve heard from many people about leading with technology instead of strategy. This is especially true in conversations about smart manufacturing and digital transformation.
For example, I recently spoke with Tim Stuart for another story in this issue. He has an interesting perspective on this pain point. Stuart is the founder and president of Visual Decisions Inc., and he works with small and midsize manufacturers that are conflicted about how to modernize their operations. He leads them through a process to understand their goals, as well as what they need, or don’t need, to achieve those goals. Most companies fall into the trap of starting with technology purchases to solve problems. Do they even know what the real problems are? No. Do they invest in technology solutions anyway? Sadly, yes.
It’s easy to get excited about technology. Just look at the volume of shiny machines, slick robots and flashy 3D printers vying for our attention and dollars. They all have their place when aligned with specific actions that map to a goal. And that’s the piece that’s missing.
Whether it’s related to digital transformation or not, before any action is taken, you must have a goal. To set that goal, you must understand the current state and where you want to go. That’s where companies go wrong, says Stuart.
“Smart (manufacturing) is not about the technology,” Stuart asserts, offering an analogy many can appreciate. “I’ve been wearing a Fitbit 14 years now, and I’ve gained 20 pounds. That’s not the Fitbit’s fault. It’s a great device.” Yes, it has sensors, uses the cloud and offers pretty charts that demonstrate all sorts of analytics. But if you don’t change your behavior, you’re not getting any benefit from that smart device strapped to your wrist. The same is true in business, he adds. “You have to think, ‘What are we going to do differently tomorrow?’ You have to change the way you do business.”
Back to Basics
The next time you hear someone say, “We need automation,” ask them why. Do they know the cost of machine downtime per day, week, month or year? Two minutes of napkin math can help sort that out. Those insights are important in setting specific, measurable, achievable, relevant and time-bound (SMART) goals.
Here are a few examples of SMART goal areas in manufacturing, courtesy of Shoplogix:
- Increase daily output of a product line by 10% in three months.
- Reduce defect rate from 3% to 1.5% in the fabrication department by the end of the fiscal year.
- Decrease unplanned downtime in Production Line 2 by 20% within the next six months.
- Reduce workplace injuries by 25% in 12 months.
- Reduce excess raw-material inventory by 10% within six months.
Nowhere in those goals is an allusion to technology. Instead, technology is an enabler to achieve the goals. That kind of SMART thinking can save a lot of time and money before you invest in any technology, putting you well on the way to achieving your desired state.
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