The ways a digital transformation unexpectedly creates extra work

 

Digital transformation insights

• About 86% of manufacturing professionals say their companies are undergoing a digital transformation, but these changes can result in some inefficiencies.
• Gray work is time employees lose to improperly streamlined processes and lags in workflows.

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Digital transformation is top of mind for manufacturing professionals, but these transformations come with some pitfalls, notably worker downtime. However, this worker downtime can be reduced by better-streamlined processes.

The manufacturing industry is especially ripe for digital transformations with 86% of professionals saying their companies are moving forward with such initiatives, according to recent IndustryWeek research. The key drivers include improved operational efficiency, reduced downtime and savings. A World Economic Forum study found that typical cost reductions for a digital factory transformation range between 15% to 30% with some reporting results as high as 70%.

However, an L2L Plant Engineering survey found that only 24% of manufacturing companies have a digital transformation strategy and 40% have yet to take the first steps toward implementing it.

There are several reasons why a digital transformation stalls, from a lack of strategy to treating it solely as an IT project or having unrealistic time frames for digitizing processes. Yet even in those instances where senior leadership is driving the initiative and embracing it as a technology-led business strategy, there is still a hidden issue that often goes unnoticed until much further into the transformation.

The issue is the proliferation of a variety of technology tools used by different teams for specific functions. On a tactical level, these apps, databases and other tools may offer shortcuts or solutions for individual projects and teams, but they inadvertently create more work by trapping critical information in silos.

For example, when analyzing production costs and monthly profit/loss statements, the information needed to create a report or dashboard is often stored in a variety of digital tools and/or paper-based record keeping. Employees must comb through various systems and information sources to get a big-   picture view, spending valuable time creating standard reports or attempting ad hoc analyses, slowing down operations. Factor in the ongoing manufacturing labor shortage, where an estimated 2.1 million jobs could go unfilled by 2030 (Deloitte/Manufacturing Institute) and things can grind to a halt.

In fact, a recent productivity survey found that workers in manufacturing were spending upwards of 11 hours a week searching for information throughout their company. This lost productivity is known as “gray work,” and it detracts from keeping the plant fully utilized with teams focused on meaningful work.

Avoiding common digital transformation pitfalls

Manufacturing is more susceptible to gray work due to the complex nature of the business. It requires coordination between digital and physical worlds for speed and scale, dominated by many moving parts –– both literally and figuratively –– where any unscheduled downtime can impact output. If data is housed in various systems, it makes it harder to manage teams, processes, assets, equipment and more.

This is not to say that digital transformation is not worthwhile. It is, if done right. Understandably, the issue is not digital transformation, it’s ensuring the connectedness among all the sources of information that keep the plant running.

Even with systems that are specifically designed to work better together, collaboration remains a struggle. According to the productivity survey, 69% of respondents say the use of multiple project management software solutions prohibits them from easily sharing project-related information.

To solve this issue, look at the underlying systems and infrastructure. A work management platform that centralizes information –– from machines, processes and people –– and automates workflows is the first step to eliminating gray work.

Next, make sure that workers on the plant floor are digitally connected with the back office. This way, valuable project information isn’t lost, and real-time insight and decisions can happen in real time.

Now, armed with this comprehensive view, you can integrate and streamline, identifying redundancies and shadowing IT in your tech stack that can lead to disconnected, inconsistent data, security risks and unnecessary subscription costs.

Once you have a consistent, accurate and streamlined view of everything happening at the plant (see Figure 1), the people closest to the business can customize the platform where necessary. This is a simple process on a low/no code platform because anybody can quickly build an app or form without any technical expertise or reliance on IT.

The limitations of artificial intelligence on digital transformation

As manufacturers accelerate digital transformation efforts, artificial intelligence (AI) naturally comes up as a discussion point, most commonly in trying to understand where it fits in the business and impacts the plant’s digital transformation. The reality is that AI cannot deliver any tangible benefits unless the underlying data is accurate. Manufacturers understand this, as only 10% of the productivity survey respondents report being extremely confident in the accuracy of their project information.

However, by centralizing data across the company and making it accessible through a work management platform, manufacturers are in position to execute a successful digital transformation, prepare for the evolution of AI and be ready for any other future changes the business may face.

Although preparing for a digital transformation can be challenging for manufacturers, centralizing data and streamlining task management systems can be vital tools in combating gray work and maximizing the benefits of a digital transformation.

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