SMAC-enabled post digital shop floor Manufacturing technology strategies of the future Robert Bates, www.wipro.com Group Head, Advanced Technologies & Solutions Table of Contents 03 .................................................................................................................. Manufacturing technology strategies of the future 04 ...................................................................................................................................................................... A foundation of data 04 ...................................................................................................... Social: Delivering unexpected and unprecedented value 05 ........................................................................................................................ Mobile: Creating pervasive data environments 05 ...................................................................................................................... Analytics: Unearthing valuable business insights 06 .......................................................................................... Cloud: Stepping off the treadmill of storage and infrastructure 06 .........................................................................,................. SMAC technology and outcomes together on the Shop Floor 07 ...................................................................................................................,....................................................... About the Author 07 ............................................................................................................................................................................ About Wipro Ltd. Manufacturing technology strategies of the future The integration of digital technologies is rapidly enhancing tried-and-tested manufacturing activities. Some of the most obvious and beneficial changes happening are to those highly respected practices evolved from World Class Manufacturing (WCM). WCM encouraged iterative modification to optimize processes; iterations now being dramatically enhanced by the adoption of recent technology. Historically, shop floors often relied on whiteboards and team huddles to pool knowledge and debate solutions. Sometimes, this meant stopping production to align the team’s response to a challenge. While great progress was made by the contribution of peers, often production in real time; providing access to tools and interfaces for immediate and well-informed remedial action. SMAC has triggered an immense wave of change in all industries, but maybe none so keenly as to those individuals working on shop floors of the future. The influence of SMAC across line, cellular and hybrid manufacturing is dramatic. Monolithic and reactive management-driven shop floors of the last century are being retired. While the traditional capacity declines, a new class of manufacturing strategies based on dispersed teams for collaborative and proactive decision making is taking its place with the flexibility to produce iterations of both consumer and enterprise goods. Made possible by social and mobile-enabled environments, companies are delivering measurable improvements to production quality and efficiency, all-the-while creating a positive impact on workplace operations and safety. records and data were unreliable, thereby negatively effecting decisions Companies around the world are driving significant investments into that could have been better. Hemmed in by limitations, the outcomes manufacturing processes to analyse and deliver products quicker and were good, but not optimal. Contrast this with today’s manufacturing cheaper. Changes driven by innovation, specifically those SMAC-based environment. It is awash with new social, mobile, analytics and cloud shop floor strategies, find their success on the back of strong and accurate technologies, collectively called SMAC. Integrated SMAC architectures data-driven frameworks. Could data and data management become the are creating visibility for manufacturing organizations on the shop floor stumbling block for your shop floor? 3 A foundation of data upgrade their skill base. Additionally, they are frustrated by the fact that processes tuned for high velocity throughput do not allow them to contribute as much as they would like to. Social supporting technologies In a 2014 study, conducted by the Economist Intelligence Unit (EIU) can combat employee attrition by enhancing both the work and the roles commissioned by Wipro called Manufacturing and the Data Conundrum played by individuals at the workplace. – Too much? Too little? Or just right?1, researchers found that today’s shop floors consider data an important asset. Over 44% of manufacturers say they understand the value of shop floor data. While this indicates that manufacturers are finding insights from the shop floor, it also shows that Precedents for social demand are the organic, physical communities formed within manufacturing facilities. Segments of a production line or those employees tied to specific product work often naturally form social the industry has a long way to go to capitalize on the full potential of data. groups. In order to satisfy their desire to contribute, these communities The study, conducted with C-suite and factory executives across North order to meet and discuss workplace complications, solutions and the fuzzy America and Europe, showed that a mere 22% of the surveyed companies aspects of business. In large companies, communities don’t even have the have predictive analytics capabilities for production throughput and only luxury of physical proximity. Social technologies comprising platforms such 16% have mature analytical capabilities to generate potential solutions. The as collaboration and messaging are just the smallest of steps that can be study points to one certain conclusion: shop floors have a long way to go taken to bridge gaps across large production lines, buildings and countries. when it comes to leveraging data and those that move swiftly to embrace Social technologies are virtualizing shop floor communities. They are building it will see considerable gains. knowledge networks to provide employees with a chance to enhance their The good news is that manufacturing shop floors are not wary of technology often abandon their processes, sometimes bringing production to a halt, in skills and play more rewarding roles, thereby controlling attrition. any longer. If anything, the consumerization of technology - led by mobile2 In addition, social technologies can deliver immense value in production and social3 developments - has made employees demand both more and environments over previous decades: the potential to capture intra and better technology at home and at work. This has made it substantially easier interaction collaboration, track behaviour, and identify process nuances to introduce new approaches and concepts to manufacturing and drive collaboration. Now shop floors can free themselves from an abundance of physical technology infrastructure, enabling employees from across the globe - using cloud as the common platform and analytics as the common language–to manage manufacturing processes, share tools, optimize inventory and improve output. As markets and consumer behaviour become more volatile, data will play a fundamental role in creating predictability of business through simulation and subsequent decision-making. SMAC is already transforming traditional shop floor environments. And, for many, it holds the promise of being a game changer. Social: Delivering unexpected and unprecedented value Social workplace cultures are an attractive asset for companies looking to hire employees of all generations. One of the major challenges that repetitive, process-driven manufacturing has been beset by is attrition. Repetitive plant floor activity leaves people intellectually bereft. Because of low interaction levels with colleagues, employees are unable to regularly 1 http://www.wipro.com/mfganalyticsreport Mobile – Refers to the practice of using technology anywhere and with the right interface to perform work optimally. This should not be confused with mobile technology such as handsets, mobile phones, and tablets. 2 3 Social – The technology enhanced methods of engagement with individuals, groups or crowds. This includes collaboration but is often relocated to indicate social media – an asynchronous broadcast of info. 4 previously only known to a few. Embracing a supportive social technology stream. Analytics and the ability to contextualize data is at the very core strategy will drive even greater role-based productivity, allow distribution of of how demand signals can trace their way from consumers, back to the best practices across global communities, and create an engagement bridge inbound inventory of material on the shop floor. Two dimensions of between shop floor contributors and management. At no other time has analytics are increasingly viewed as important for manufacturers; internal and it been so easy to implement codified technology solutions in order to external. From the perspective of supply chain, the analytics is integrated. accelerate the accumulation of enterprise knowledge. Ultimately, social will However, the optimization of the smart supply chain within the four walls help both boost employee connection as well as mitigate skills attrition. of the manufacturing facility can be distinctly separated by looking at how that segment responds to external demand and supply signals – including Mobile: Creating pervasive data environments now the affiliated digital supply chain so tightly linked to the value of goods produced. History is replete with examples of how superior weapons have enabled armies to conquer vast lands. A digital frontier is no different – the analytics Ever increasing technology density on shop floors and cloud-ified connection weapons needed to conquer it are evolving quickly. Big Data platforms ‘off-floor’ is generating vast amounts of data. Employee activity derived designed to consume and tap into data reservoirs, first emerged for handling from motion and intent, machine-2-machine data executed in automation, large challenges like genome sequencing, have found their way through and translated analogue sensors are merged with the fabric of traditional mobile accessibility and cloud capacity onto and next to the shop floor. production and business data. All of this intelligence brings about the other Data mining tools applied to Big Data platforms can simulate the most likely face of mobile technology – movement of technology workloads is just outcomes for supply and demand as well as the ability to change instantly to as critical as smart phones and tablets. With pervasive data needed for adapt. A production facility, whether built on robotics or artisan craftsman, decision making and streams coming in from across the globe, the ability can only adapt so quickly to the raw materials for fabrication and to the to move work anywhere is a capability which will be just as critical for variations requested by customers. Updating, upgrading, or transforming corporate investment as are the connected devices necessary to make shop floors is a costly activity often requiring millions in capital costs. The work happen for anyone, anywhere as needed. single most malleable asset on a shop floor however is the human asset. Mobile technology specific to the shop floor is an evolving cost killer. With virtualized work, technology can play and support different activities dynamically. The use of mobile technology, delivered over the same device, This is where the social and mobile technologies mentioned above become so critical in order to reshape how, in what order, and at what capacity work gets executed on the line. can help floor members create more value per activity and also enable the Simulations of work on production lines are built from the structured and potential for individuals to have greater role diversity on the shop floor unstructured forms in which it is produced. Merged with variations from than ever before. Using desktop as a service technology, for example, across one industry, multiple geographies, and multiple industries, it rushes each time an operator arrives at a given work station, the access terminal in a torrent where analytics is the only force that can guide and refine it into can be armed with a different set of customized tools, thus enabling a a form which answers such critical questions as: do we make a red one or a flexible, multi-function, hybrid shop floor. The overall impact is enhanced blue one? The answer may sound simple, but wrong answers to a string of productivity both when employees don’t have to carry technology around such simple questions can cost companies thousands, millions, and billions with them and when they can. Mobile technologies will simply deliver the in capital if the wrong physical product rolls off that floor. Organizations right technology to the right person at the right place. This is a major shift know that their data holds valuable business insights and can help them from a standard where tools and human resources were restricted to a conquer the world, but most fundamentally they can help with answers fixed location on the shop floor. to those difficult questions, hunting for that elusive information needle in a haystack. Analytics has made it possible to beat a quick and accurate path Analytics: Unearthing valuable business insights to the needle. The subject of analytics is ever growing as is the technology that supports it. The art and practice of data science hold the promise of answering some of the right questions. Looking at the survey results, it can be anticipated As storage, computing and networking converge, the cost for the capacity that the use of analytical technology platforms is just taking shape. Very to capture, retain and leverage data seems to ever be growing. Process soon, industry leaders will be looking to sophisticated systems to produce information from social interaction, facilitation & collaboration technologies solutions, simulations and decision support extrapolated from many are growing, manufacturing production and back office enterprise systems sources (including geography, product, competitive environment and supply radiate petabytes of data, and consumers produce gigabytes in an endless chain capability). 5 Cloud: Stepping off the treadmill of storage and infrastructure Shop floors are covered in often expensive assets. Most of these equipment are depreciated over many years but more and more operational technology akin to industry standard IT systems have migrated to the floor. infrastructure do I need in a cloud environment? How can I make sure it is elastic? How do I adapt cloud to cellular or line manufacturing? How can cloud mitigate my business risk, not just my IT cost risk? SMAC technology and outcomes together on the Shop Floor This includes typically large scale MES and ERP systems formerly relegated to dedicated corporate data centers that now have virtual presence on the floor. Cloud platforms, managed elastic systems with a significant standardization are increasingly commonplace in areas of business including the shop floor. Cloud, while remarkable in capacity is not a revelation but a key enabler. As operations and information technology converge, the back-end platform is becoming a cost modeling exercise rather than one of strategic importance. This offers CIOs and CTOs the opportunity to fully integrate with their business counterparts to help answer complex questions using cloud as the foundation. For decades, shop floors have been subject to slow, iterative change. SMAC represents a dramatic disruption of that legacy. SMAC brings in efficiencies and flexibility that have rarely been a part of shop floor culture but always desired by those working on the floor and managing it. Using SMAC, shop floors can control and consume an asset that has always been available – data – but which was difficult to capture and even more importantly leverage. Today, SMAC spells a differentiator and a competitive edge. But tomorrow, it will be considered a natural cornerstone of success. Wipro’s study – Manufacturing and the Data Conundrum – Too much? Too little? Or just right?, demonstrates the unrealized potential of the technology on the shop floor as well as throughout the enterprise manufacturer. SMAC technology stacks can provide extreme benefits to the top and bottom line of organizations through impact on discrete as well as extended supply chains. Regardless of the rate at which SMAC becomes prevalent amongst manufacturers, the single most important and flexible asset remains the shop floor worker and his direct management team. All elements of SMAC are centred around and supportive of that team. The team on the floor may get smaller, but its value will remain no less important as the human element remains the ultimate influencer on the digital supply chain as well as its biggest benefactor. Concepts of a flexible shared system are not a new paradigm – most widely used by mainframes. Exponential capacity and inbound data in comparison to cost have however changed the transactional outcomes possible from shared, cloud systems. Most manufacturing programs often leverage projectbased accounting to manage the assets for a production line. Increasing percentage of dependency on technology, both information and operation, which comes with variable cost models will enable corporations to step off the requirement for singular large capex expenditures, match line retooling and skills development with technology refresh rates, and allow the shop floor become more adaptive to the extended supply chain. Technology CXOs with cloud as their foundation will be able to answer critical cost questions as well as those important to the business: How much IT should be onsite? How do I make sure I am not on a storage treadmill? How much 6 About the Author Robert Bates Robert Bates is the Head of Wipro Technologies Global SMAC Architecture Team. As the principal technical advisor and lead to the Wipro Advanced Technologies & Solutions service line, Robert is responsible for advising on all service design, delivery and technology programs. Additionally, he and his team evaluate and recommend co-investment customer research programs. Robert and his team engage developers, partners and extended teams to address some of the most forward looking technology challenges Wipro clients encounter. Robert is a veteran technology leader, performance advisor, as well as a business architect with a deep background in process and technology stacks supporting services delivery and management. Through Wipro, Robert provides strategic insight to unlock client potential as well as develop scalable, SMAC based solutions to meet business demands. Robert’s technical experience includes technology strategy, enterprise architecture, operations, information management, solution / product development and process / technology selection. He also has extensive experience with the design, development, implementation and integration of custom and COTS-based information technology solutions. About Wipro Ltd. Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 140,000, serving clients in 175+ cities across 6 continents. For more information, please visit www.wipro.com 7 DO BUSINESS BETTER WWW.WIPRO.COM WIPRO LTD, DODDAKANNELLI, SARJAPUR ROAD, BANGALORE - 560 035, INDIA CONSULTING | SYSTEM INTEGRATION | BUSINESS PROCESS SERVICES TEL: +91 (80) 2844 0011, FAX: +91 (80) 2844 0256 North America Canada Brazil Mexico Argentina United Kingdom Germany France Switzerland Nordic Region Poland Austria Benelux Portugal Romania Africa Middle East India China Japan Philippines Singapore Malaysia South Korea Australia New Zealand © WIPRO LTD 2014 “No part of this booklet may be reproduced in any form by any electronic or mechanical means (including photocopying, recording and printing) without permission in writing from the publisher, except for reading and browsing via the world wide web. Users are not permitted to mount this booklet on any network server.” IND/PMCS/WIPRO/AUG 2014 - OCT 2014