8 minute read 15 Oct 2020
Oil refinery at night

Four ways to use digital to strengthen manufacturing resilience

Authors
Craig Lyjak

EY Global Smart Factory Leader

Operational Excellence thought leader. Digital innovator. Passionate developer of people. Foodie. Father.

Morgan Malone

Ernst & Young LLP Americas Consulting Supply Chain and Operations Principal

Transformative manufacturing leader in consumer products. Building smart factories. Improving lives. Family man.

8 minute read 15 Oct 2020

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Digital solutions can enable manufacturers to build the resilience they need.

In brief
  • Digital solutions that form the foundation of EY Smart Factory drive global operational excellence programs in a connected and centrally controlled system.
  • Manufacturers can make it easy for workers to get the right information by applying intelligence to a database housing experts’ knowledge.
  • Control towers go beyond providing visibility. With advanced AI and analytics, a control tower can quickly simulate and model a wide range of scenarios.

As manufacturers grapple with how to respond to the impact COVID-19 is having on their businesses, the critical importance of manufacturing operations’ resilience has never been clearer. But even before the current crisis, manufacturers recognized the need to strengthen their ability to mobilize and bounce back from disruptions to the business.

Digital technologies have emerged as a powerful tool for helping manufacturers maintain continuity in the face of major challenges — whether they’re unforeseen ones, such as pandemics or natural disasters, or ongoing systemic issues such as an extreme shortage of crucial talent. A myriad of digital solutions that form the foundation of the smart factory can enable manufacturers to build the resilience they need to minimize the impact of disruptions and maintain effective operations during times of crises. Specifically, digital can help in four key ways:

  • Capturing workers’ knowledge
  • Enabling better access to expert knowledge
  • Speeding decision-making
  • Optimizing processes

Capturing workers’ knowledge

In traditional manufacturers, “tribal knowledge” is still widespread. It’s the master tradesman approach: a person has done a job for years and, when not hoarding that knowledge, passes it on to others via formal or informal apprenticeships. This not only keeps the company from more broadly capitalizing on what these experts know, but it also puts the company in the dangerous position of having that knowledge walk out the door as these experts retire.

Manufacturers are trying to get experts to document what they know, but their approaches — which usually center on the written word — aren’t always the most effective or efficient. Take, for instance, the writing of standards. Experts are often asked to develop short written documents that convey how to execute a certain task so that others can benefit from that knowledge. The problem is that it can be difficult to concisely explain an activity comprehensively enough so that it’s useful, but not in too much detail that it might prevent people from actually reading it.

Furthermore, these subject matter experts are generally much more comfortable on the floor “turning wrenches .” They’re not technical writers used to developing such content during the normal course of their jobs, so it can take them several hours to create a single one-page standards documents. The end result: it’s a burden on the experts, who don’t enjoy the task, and it’s hardly the best use of their time and abilities. Plus, the two to three hours an expert spends agonizing at the computer is time that they could have spent creating more product. 

Manufacturers can use digital to more easily and effectively capture and convert tribal knowledge into institutional knowledge that stays with the company, and can be more broadly leveraged across the company. Multimedia platforms are now available that enable workers to easily create instructional content of all kind, and in ways that don’t require the written word. Such platforms feature safe, secure and structured databases that can accommodate a wide range of content, including video, audio, written pieces, webcam images, screen captures and hyperlinks.

Instead of having to struggle for hours writing how to change a part on a particular machine, an expert can record a video of the process in only the amount of time it takes to complete the task and upload it to the platform. In our experience, digital tools can reduce the effort to capture knowledge by more than 80% in general, and as much as 95% or more when simple tasks are involved.

Enabling better access to experts’ knowledge 

What happens when there’s a problem on the shop floor? A worker needs help from an expert.  But what happens if that person is out sick? Who else should the worker call? And once the alternate expert is on the phone, what’s the best way to collaborate with him? 

In the typical large manufacturing organization, challenges abound in getting help with an issue, whether it’s not understanding exactly what kind of information is needed, difficulty getting in touch with an expert or even not knowing whom to call to begin with. With experts’ knowledge collected in a formal database, it’s now usable by those who need it, when and where they need it. 

Typically, three distinct types of tasks require knowledge transfer. They include:

  • Routine and regular tasks — these are tasks that are repetitive and occur with a predictable frequency as a result of the organization’s standard work practices. For these, we can provide simple multimedia instructions linked to the notice of the task.
  • Routine and non-regular task — these tend to be more complex, such as product changeover or quality inspections. As routine tasks, they have standards associated with them, but such standards may be a simple checklist without the associated training knowledge. Training in advance through videos (or virtual reality in the future) can eliminate that gap.
  • Non-routine and non-regular tasks — these jobs are responses to events rare enough to not have associated standards. A database of structured and unstructured data, as well as digital workflows on problem solving, are best suited for these activities.

By applying intelligence to a database housing experts’ knowledge, a manufacturer can make it easy for workers to get the right information without having to manually search through a sea of data — and potentially miss a document or video that’s key to solving their problem or answering their question. Artificial intelligence (AI) can operate as a sort of “digital coach,” interrogating vast quantities of structured and unstructured data quickly and efficiently to serve up the right expert knowledge to an end user, and eliminate the need to contact an expert directly. In doing so, AI enables manufacturers to get expert data in the hands of people, without having to invest a lot of time and money in distilling all that complex data into information that users can consume.

But sometimes direct expert support is still necessary — the need for it likely will never fully disappear. By also including an inventory of experts in its database, a manufacturer can enable workers to more effectively identify, link to and engage remotely with the right expert. Typically, that engagement would happen via a simple video chat or tool such as Microsoft Teams — for instance — enabling a worker to just turn his phone around to show the expert what he’s seeing and having the expert walk him through the fix.

At some point, we may see augmented reality or virtual reality replace video chat in this scenario. For example, mixed-reality devices, such as Microsoft HoloLens, could enable experts to coach or assist others in different plants or geographies without having to leave their home base — thus, effectively digitally “replicating” those experts and multiplying the impact of their knowledge.

Speeding decision-making

One aspect of resilience that the COVID-19 crisis has laid bare is the need for speed. During times of disruption, minutes often count and manufacturers don’t have the luxury of taking time to determine what their next moves should be. Making the right decisions quickly can spell the difference between surviving a disruption and being sunk by it. The speed of decision-making can mean swings of  significant value or significant market impacts. And when you're talking about making masks or protective equipment for health care workers, for example, those market impacts can have real consequences.

That’s where the concept of control tower comes in. At its essence, a control tower is a powerful dashboard that gives decision-makers full or nearly full visibility into all the key data and metrics they need to understand the state of the business and make relevant decisions in response. It draws on the power of tools, such as Microsoft Power BI, to enable a manufacturer to, for instance get a complete, real-time picture of the status of its raw material and parts supplies, the condition of its suppliers, current inventory, customer demand, facility utilizations and cost and profit per stock keeping unit (SKU). All of that is important during “normal” times, and is absolutely crucial when manufacturers need to move quickly, as they have in response to COVID-19.

But even with access to a lot of key data, decision-makers still have to sort through the data and come up with their response — which not only takes time but carries the risk that the responses may not be optimal. That’s why the best control towers go beyond providing visibility to delivering true decision support that drives integrated business planning. With advanced AI and analytics tools, a control tower can not only integrate relevant data, but also quickly simulate and model a wide range of scenarios. It can also suggest several optimal options for decision-makers to consider — whether that’s at the line level or the facility level, or company-wide. 

With such decision-support tools in place, a manufacturer can create more self-sufficient and agile teams. Leaders can identify what decisions they’re comfortable with each part of the organization making on their own, and then give them the relevant, sufficient information to drive business choices without having to seek authorization—further accelerating decision making.

Optimizing processes

During disruptions, the flexibility and responsiveness of various processes are tested. If a certain port is disabled, how does that affect the company’s ability to fill orders? How will product quality change if a certain standard raw material is unavailable and an alternative material must be used? What’s the impact on overall yield if two plants have to be shut down and product is consolidated in a third facility? And how does that affect the ability to meet demands?

Manufacturers can build resilience into their processes and ensure those processes are optimized on an ongoing basis by embracing the concept of the digital twin. The term digital twin may be familiar to many manufacturers but it’s not always accurately understood, as its definition can be vague or overly broad. For instance, a picture of a production line on a laptop is not a digital twin. At its most basic, a digital twin is a digital or virtual model of physical assets and processes. In “normal” times, its value lies in using tools, such as Microsoft Azure IoT Edge, Azure IoT Hub and the Azure Cognitive Services, to continually monitor and analyze aspects of an operation to spot potential issues and correct them before they become problems (thus, avoiding downtime). By providing self-monitoring and self-healing capabilities, digital twins optimize process consistency and throughput largely on their own — without the need for traditional experienced experts to troubleshoot and address issues.

But a digital twin is arguably even more valuable in helping identify the impacts on operations from a wide range of changes, planned or unforeseen. For example, consider a scenario where a key ingredient of a product suddenly won’t be available for several months. So now the manufacturer has a choice: does it reformulate the product or substitute the ingredient with something else that is available? With little time to act, the manufacturer could use the digital twin to virtually model the impact of several different possible substitutes on the product (and its price) to identify the best option to roll out into production in the least disruptive way — and, thus, minimize risks the new ingredient will have. 

Modeling and simulation are core tenets for the factory of the future.
Neal Meldrum
Business Strategy Manager at Microsoft

“Modeling and simulation are core tenets for the factory of the future,” notes Neal Meldrum, Business Strategy Manager at Microsoft. “Digital twins are powerful engines that allow agile validation or assets and processes before committing to production. EY is leveraging the Azure Digital Twins platform to quickly build these complex data ontologies and accelerate bringing twins to life.”

Furthermore, a new service from Microsoft enables digital models, that were initially created by a data scientist, to be tweaked and refined over time without the need for deep data science skills. With this service, process operators themselves can retrain the model to accommodate something that wasn’t accounted for originally or to take advantage of new, more relevant data. This is a significant breakthrough in the search to make digital twins more broadly scalable.

Of course, deploying a digital twin to handle this kind of challenge can’t be done overnight. It requires an immense amount of historical data (which many manufacturers don’t have), as well as time for data scientists to build and teach the model. So, it’s a journey that requires commitment and patience. But it’s a journey that can lead to optimized, highly resilient processes that have the right level of knowledge automation to accompany the strides made in physical automation in an effort to ultimately achieve a “touchless” manufacturing operation.

Four ways to use digital to strengthen manufacturing

What’s ahead?

Manufacturers today are seeing once again, firsthand, how critical resilience is to their operations. And no doubt, COVID-19’s immediate and longer-term impacts will certainly shape manufacturers’ thinking about how and where they can apply digital to strengthen their resilience. We will continue to explore this important topic in upcoming blog posts, starting with taking a deeper look at how some leading manufacturers are capturing their experienced workers’ tribal knowledge, so that entire enterprise can benefit from it. 

Summary

Digital technologies have emerged as a powerful tool for helping manufacturers maintain continuity in the face of major challenges such as pandemics. A myriad of digital solutions that form the foundation of the EY Smart Factory can enable manufacturers to build the resilience they need to minimize the impact of disruptions and maintain effective operations during times of crises. 

Specifically, digital can help in four key ways: capturing workers’ knowledge, enabling better access to expert knowledge, speeding up decision-making and optimizing processes.

About this article

Authors
Craig Lyjak

EY Global Smart Factory Leader

Operational Excellence thought leader. Digital innovator. Passionate developer of people. Foodie. Father.

Morgan Malone

Ernst & Young LLP Americas Consulting Supply Chain and Operations Principal

Transformative manufacturing leader in consumer products. Building smart factories. Improving lives. Family man.