Monday, January 5, 2015

Top 10 Manufacturing Operations Blogs for 2014


Many of you probably already are subscribed to MOM blogs, but just in case you not I though these top 10 showed some interesting thoughts.


http://cerasis.com/2014/12/22/top-10-manufacturing-blog-posts-2014/


On my blog the two topics which had a number of blog posts, but had highest hits were around:

1/ Situational Awareness , and change in the way we must design based upon impact
2/ Internet of Things and Cloud.

Interesting the year before cloud and internet of things created very little interest, but this aligns with significant growth in interest in these topics in 2014, and will only grow further into solid reality in 2015.
Enjoy 

Sunday, January 4, 2015

Why Companies must Reduce Complexity!!!

Happy New Year to all of you. 2015 dawns over the water here, and I have a chance to review many articles and and time step back and think. That is what the holidays provide for me a time of family time and reflection and direction.
In the last half of 2014 we saw a significant increase in companies wanting, engaging with with us on "operational System, Operational Environment in 2020 - 25". These were not esquires these were real engagements where companies were reflecting on their systems relative to the new operational landscape we are all facing over the next 10 years.I suspect that 2015 will continue this trend and different programs been taken by companies to guide investments, and technological adoptions to provide them with a foundation to address "operational transformation". Certainly from with in Schneider _Electric we focused on this transformation, and accelerating platforms, Products, applications that will enable operational systems for 2020-25. Addressing the increasing complexity of systems, without increasing operational process complexity is fundamental.

But I thought I would start the new year blog with a great article that I read through the holidays on companies addressing complexity. One of challengers we all face is the new operational landscape with changing products, a flat world of competition and changing workforce, we have a tendency to
think and create complexity is increasing value. This article by Neil Smith allows a good "step back" of the need stay focused on simplicity and this must apply to operational processes and systems, if we are going to be able to absorb change and compete.
So have a read, and lets make sure we do not loose focus on this fundamental objective of simplicity is key to "operational excellence"!!

http://changethis.com/manifesto/95.06.ReduceComplexity/pdf/95.06.ReduceComplexity.pdf

Thursday, December 25, 2014

Happy Holidays and Season

All the best for the year a season, it has been an interesting ride in 2014, with many evolutions in the the thoughts around operational systems. With the acceleration in talk, and smarter devices and the introduction of initial digitization industrial platforms, that we will no doubt see significant evolution in 2015.
    

Saturday, December 13, 2014

The Industrial Software space continues to outgrow its labels!!!!

As the 2014 draws to a close, I seem to be sitting in a growing amount of long term strategic meetings both within Schneider-Electric and within customers and discussing the landscape of 2020 -2025. What immediately happens is the labels we have used for years for products, spaces, and roles no longer mean the same thing. We rapidly find ourselves setting up a glossary of labels and what they will mean in 2020-25 in order to gain alignment.

Putting a label on this space has been challenging because it has evolved over the last 20 years and will continue to change as many technologies converge towards an integrated industrial software platform strategy.

1990 - 2010: The label “MES” was first introduced in 1990 to refer to a point application at a single site (typically Quality Management). Over the next 20 years, more functionality was added to MES to keep pace with Automation trends.


2010-2015: In recognizing its evolution, some industry analysts have offered new acronyms like MOM (LNS Research), while others have redefined MES as follows:

“For many, MES is no longer a point application, but a platform that serves a dual purpose: integrating multiple business processes within a site and across the manufacturing network, and creating an enterprise manufacturing execution capability.”

-          Gartner Group, Vendor Guide for MES 2012


Saturday, December 6, 2014

The Workforce Crisis of 2030!! And how to start solving it now

“People, workforce planning will become more important than financial planning.” Rainer Strack
This is a statement from good TED talk by Rainer on his interpretation of the workforce challenge of 2030. Supporting much of what this blog has been looking at this past year, but bringing another angle. The key we both trying to get over it is not about the changing workforce it is about the operational workforce transformation to a new workforce landscape of skill shortage, labor shortage and cultural and people change.

You can go to Ted talk with the following link.

http://www.ted.com/talks/rainer_strack_the_surprising_workforce_crisis_of_2030_and_how_to_start_solving_it_now

A couple of extractions:


The investigation and determination of a significant workforce shortage by 2030, but starting now:



The required strategies that will dominate much the thinking



Rainer is talking general workforce, if you take this and bring it into manufacturing, industrial world, the shortages will be all more acute. As pointed out in other surveys from Accenture and others.




This shows in US survey results on filling skilled and highly skilled roles, below is worked example of mid sized company in mid west.  



This is why the move from knowledge to wisdom is key, and emedding of knowledge and wisdom , actionable decisions into the systems is key to accommodate the transformation to dramatically reduced dependency on skilled people. From Rainer’s and other investigations that Operational Systems of the future in the industrial market have 50% + reduction in dependency in skilled and highly skilled workforce. This Ted talk supports this will be the biggest issue in the next 10 years to sustain competitive agility. Like we have seen in 2014, I believe 2015 this acknowledgment and strategies building around workforce change will intensify.    

Sunday, November 30, 2014

“Operations leaders know they have a problem but aren’t quite sure what the solution is.”

This statement continues to echo around the meetings I attend, the challenge is there are many parts to the dynamic situation we find ourselves and they are all converging at the same time.




The Top 3 operational challenges faced by executives tells us that functional silos of people and systems continue to frustrate them and they need help justifying potential solutions to address these challenges.
It also explains why software categories like Manufacturing Execution Systems has limited awareness outside the plant. Also the growing discussion around platforms to accommodate the variety and provide basis for absorption of differences, while applying consistent changes.
A big discussion last week with 3 different groups, but it all came back to trusted , validate data that decisions can be made on. It was clear that much of the recorded data when actually taken and moved to a basis for business decisions, that people had to stop with grand plans of information and knowledge, they had to go back to getting basics sorted with validate, trusted data.
While the diagram above indicates 48% had issues with collaboration across departments, (very true, just transparency and communication is an issue) but in two sessions it was clear terminology and alignment for these conversations was a basis for significant part of the problem. Between systems/ applications, and people.
What shocked me in the conversations was how people were taking a very pointed (local) approach to solving the issues of terminology and structure, and not looking at how to make it “sustainable innovation”. The models and approaches must not be “band aids” they must structured and sustainable, avoiding anything that is not “managed”.
The process of delivering goods and services better, faster and cheaper sounds simple but can sometimes be unpredictable and lead to shortages or surpluses. Over the past two decades, the supply chain journey has evolved through a number of distinct phases along with a shift in power from suppliers to customers. Over the course of this evolution, operations professionals have expanded their perspective and philosophy from an inventory-centric view in the 1980s to an order-centric view in the ’90s to a product-centric view today. As product lifecycles shrink, innovation has risen to the top of the CEO agenda. But product innovation cannot meet the business objectives of lifecycle profitability without supply chain process considerations.

Future operations professionals need to get involved in the product development process to enable both product and process innovation. The product lifecycle perspective becomes more important as it provides a holistic view across disparate enterprise silos to provide a coordinated response to the end-customer — who is the ultimate driver of demand. Integration of product lifecycle and supply chain management can provide fresh perspectives and critical insights that are often missed due to the extreme fragmentation of functions within the enterprise and across supply chains. This is the new frontier for value creation, an untapped area of opportunity to create competitive differentiation and growth for businesses

Making money is no longer from a transaction. It is from a customer experience for a lifetime.
As companies grapple with their own journey to “Operational Excellence” they must gain control on their information and data, otherwise the alignment and collberation, across teams, for actionable decisions will fail.
More and more of the problems we face today don’t have easy answers. Solving these hard problems require “integrative thinking”, a concept put forward by Roger Martin in his book, The Opposable Mind. Martin defines the term as follows: “The ability to face constructively the tension of opposing ideas and, instead of choosing one at the expense of the other, generate a creative resolution of the tension in the form of a new idea that contains elements of the opposing ideas but is superior to each”. Rather than accepting conventional tradeoffs where you choose either X OR Y, integrative thinking is about pushing the boundaries and searching for creative resolutions which give you X AND Y.

Sunday, November 23, 2014

Convergence on Wisdom (applied Knowledge), and Industrial Analytics / Operation Intelligence grow in importance!!!

It seems like a while I have been talking about Operational Intelligence/ Industrial Analystics, and then the movment to Wisdom (Applied Knowledge) all as separate threads but I was asked the question last week:
 “how do they relate?” .
They are different, but all related to empowerment of operational workforce to make faster decisions, and take actions. As I pointed out last week one of the big drivers to platforms is to manage varience. We talk Supervisory, MES, Information, Simulation platforms, but as we pointed out must a “People Platform” that covers:
·         Collaboration between people
·         Supports the hosting of “Activities” with their embedded information/ knowledge and their associated actions.
·         Transformation of Information to Situation ally aware for the particular user interested/ interacting.
·         Management of Operational Work between team members
·         Notifications

·         Plus more


This will abstract the turnover of the workforce, abstracting the different skill levels, and experience levels, with embedded “Applied Knowledge (Wisdom),  so the experience is now in the system. A key concept for the this upcoming Operational Transformation.


Industrial Analytics provides the shift from the past through the present and into the future based on high fidelity models(from experience). Providing a new dimension to the workers tools, and thru the decision they are about to make. Combining the “Future”    providing answers to “what will happen!!!” with the recommended actions to take.
Providing the answer to “What should I do Next?” with experience, fore thought, and understanding. Operation Intelligence also aligns with this by providing a screens, presentation of the situation or “ know Questions” with context and awareness.


Operational Intelligence providing the worker an understanding of “Now” , where he is, and what the future holds, simple and clear. Increasingly I am being asked for this type of “Operational window” and view; it is not analysis it practical information around my current situation and immediate future. No configuration just a simple view of task or question provides the view and clear awareness, providing an answer.
Are these different experiences, No, they are all functional value expansions on each other, and should seen as building blocks in the road to providing and Operational Execution knowledge platform, with built in experience. Providing a foundation for absorbing turnover, transition in the workforce while maintaining operational consistency and efficiency.