There is a good buzz in the Indian Manufacturing Industry now about Digitalization and Industry 4.0. Every Managing Director would like to tell his/her colleagues at the Club about how they are implementing Digitalization in a big way and trying to implement Industry 4.0 and so on.
I hear many Functional Managers also trying their hand at collecting more data from machines. They are not very clear what exactly they want to do with that data. But, they have started a Project anyway.
This same companies are having modern Machine Tools that already collect a lot of data as a routine. Most of this data is not being used at all.
The other day I heard about a Machine Shop Manager who is collecting data about vibration on the tool holder on the Machine tool and trying to decide when to change the Tool. This is a smart local application. This will definitely help the Manager to avoid Quality losses due to blunt tools running for more than their life.
But, these smart local applications are very few.
Irrespective of what they already have, Managers and Managing Directors across the Industry are in mad rush to get a tag of ‘We are implementing Industry 4.0’.
I see following problems in many of these companies rushing to ‘try Industry 4.0’:
1. Many Indian Manufacturing Companies have not yet implemented the Basic Lean Practices in their Shop floors.
2. The Pull principle is not being used. There are many companies that are still having Batch Production on their shop floor.
3. The Layouts are still archaic that necessitate unnecessary movement of material.
4. I have seen companies allowing excess Production as they do not want their
workmen to be idle!!
5. There is no focus on the Skills of the Workmen. With the attrition problem on the Shop floor, this is a serious problem for the industry.
6. I know many companies that have not solved some perennial Supply issues and resultantly produce according to what material is available and not what Customer wants!
7. Wherever the Companies have installed Automated Machines and invested in to Technology, I have seen that the Company is having more problems with the Higher Technology machines. The Quality losses are higher in these machines, they breakdown more and over a period of time many of the wonderful features of these machines are by passed and it is used worse than its’ less Automated cousin that is co-existing.
This is not a complete list of problems. I am not saying there are no Companies that are not using Technology and Lean Principles. But, this is a very small percentage.
I see three issues from this situation:
a) Understanding Lean approach: Majority of Indian Companies have still not understood and leveraged the Lean Principles.
b) People element: We have not understood how to address the ‘People’ element when we bring in higher Technology. We need to help the person involved to ‘Work differently’.
c) Short term approach: We are still looking at this year results and many of us are worried about this Quarter performance and this Month’s performance. We continue to remain ‘Short Termish’!
While this is the status, there are some companies that are waking up as the Market Competition is increasing and they can’t simply tolerate the HUGE inefficiencies on the shop floor.
Every Company has to wake up!! If they are not woken up by the ‘Indian Competition’ then they will be woken up by the ‘International Competition’.
The Other Side
While this is the status of majority of the Companies trying to implement Industry 4.0, the Companies offering ‘Industry 4.0 solutions’ are also in the same Boat! While there are some International Companies like Siemens and a few of Local Companies that have understood how to use Industry 4.0 elements to take their clients to the next level, majority of the Companies offering the ‘Expert services of Industry 4.0’ do not know what they are talking about!
I have personal experience of talking to a few of these experts who have fancy websites calling out the World to implement Industry 4.0 with their help. Most of these Companies have not done anything in this area. Most of them do not
know anything about Lean!
So, we have a very dangerous combination of Companies who are not ready for Industry 4.0 but want to implement it anyway! On the other side we have a big contingent of Companies who do not know anything about Manufacturing offering Industry 4.0 solutions. A lot of money is getting wasted around!!
How can we go forward?
It does not matter what the current status of the Manufacturing Company is, if they have understood the need to improve their efficiencies and the power of Lean then we can progress.
I would suggest that these companies take up a Re-Engineering of their Manufacturing that would involve the following:
- Put Three Year Targets like:
o Tripling People Productivity (Blue and White Collar Please)
o Cutting Quality Losses by 75%.
o Cutting Manufacturing Costs by 50%
o Solving 100% of Customer related problems permanently
You can formulate a few more Goals that are relevant to your company.
