June 20, 2016 / agility, human capital, industry news, KPIs, lean manufacturing, maintaining talent, operations metrics, performance metrics, skills gap, strategic planning
In today’s lean manufacturing world, managers and executives are encouraged to “stay grounded” and find out first-hand what is happening in their operations. As we stated in a previously published blog, improvement decisions can’t be made in an ivory tower. Instead, lean experts advise manufacturing executives to make the time to visit the shop floor—also known as taking a “gemba walk”—so they can see their operation from the front lines.
At the same time, however, today’s competitive market requires leaders to keep a pulse on “megatrends” so they can create innovative, strategic solutions that balance internal efficiency with external demands. In other words, even small shop managers need to be tracking larger scale trends so they can stay competitive and respond to changing customer expectations and an evolving manufacturing industry.
According to Modern Machine Shop, the recent MFG Meeting in Palm Springs, CA highlighted some bigger picture trends that are shaping manufacturing. Below is a summary of three key trends, as reported by Editor Mark Albert:
- Navigating a sea of information. Albert notes that in three to five years, more than a trillion objects will be networked. “Products and user communities will merge,” he states. “The structure of the factory will evolve into a social network. Designers and manufacturers must be ready to create products that behave like living organisms.”
- Cyber security. “The pervasive interconnection of things (which exists today) exposes every company to a massive threat from cyber criminals and malicious hackers,” Albert states. “Companies must adopt defensive strategies that build in, not bolt on, protection at every level.”
- Stay optimistic. Albert says that despite what seems to be persistently negative influences and nagging uncertainties, the economic outlook for U.S. manufacturing is positive. As one leading economist asserted at the MFG meeting, a calm and rational analysis sees better times ahead—as indicated by the numbers, not the emotions.
A contributed article appearing in IndustryWeek echoed similar trends, but zeroed in on the effect “Big Data” will have on manufacturing. “The ability to collect and analyze large volumes of data in economic transactions has revolutionized customer care in the retail and finance sectors,” the article states. “In manufacturing, Big Data will accelerate the integration of IT, manufacturing, and operational systems on the shop floor and lead to better forecasting and understanding of plant performance.”
The IW article also noted the changing demographics of the workforce—a trend of which most machine shops and industrial metal-cutting companies are well aware. According to the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal Cutting Organization, by the year 2020, most companies will have five generations in the workplace. This may certainly create some challenges, but as the eBook explains, managers can also use this demographic mix to their benefit by leveraging the different strengths found within their multigenerational workforce.
“While younger, less experienced workers may lack industry knowledge, they are typically more technology savvy and more willing to embrace new techniques,” the eBook explains. “Seasoned workers, on the other hand, may be resistant to both change and technological improvements; however, they typically have a vast amount of experience and loyalty, and may be able to mentor new employees.”
Of course, these are just some of the big-picture trends affecting machine shops, and many are already responding. As reported in our “Machine Shop Outlook for 2016,” a benchmarking study from Modern Machine Shop revealed that leading U.S. machine shops this year are focusing on workforce training and talent to close the skills gap, improving shop floor practices to optimize processes, and investing in future technology to stay competitive.
How is your shop responding to these megatrends?