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The Three Biggest Issues on the

Shop Floor—and How to Fix Them

A guide by
®
In this guide
About Novacura ���������������������������������������������������������������������������������������������������������������������������������������������������� 1
Introduction ���������������������������������������������������������������������������������������������������������������������������������������������������������� 2

Issue 1: An aging workforce and less demand for manufacturing jobs ��������������������������������������������������������������� 3
Business process management ��������������������������������������������������������������������������������������������������������������������������� 4
Employee cross-training ��������������������������������������������������������������������������������������������������������������������������������������� 7
Customer case: Minco ������������������������������������������������������������������������������������������������������������������������������������������ 9

Issue 2: Adapting to Industry 4.0 �������������������������������������������������������������������������������������������������������������������� 10


Start with better data collection ������������������������������������������������������������������������������������������������������������������������� 11
Introduce mobile devices to the shop floor �������������������������������������������������������������������������������������������������������� 14
Choosing the best mobile devices for the shop floor ����������������������������������������������������������������������������������������� 17

Issue 3: Increasing customer demands and the Amazon Effect ���������������������������������������������������������������� 18


Create a customer self-service portal ����������������������������������������������������������������������������������������������������������������� 20
Leverage real-time data �������������������������������������������������������������������������������������������������������������������������������������� 23
Conclusion ���������������������������������������������������������������������������������������������������������������������������������������������������������� 25
About Novacura
Novacura are experts in business systems and process improvement.

Novacura Flow, our signature software, is a low-code platform that helps you optimize your business processes
and make your workforce truly mobile. Flow works as a layer on top of your existing business systems, helping
you connect data from multiple sources into easy-to-follow workflows and apps.

With Novacura Flow, you have a common language between business and IT, processes and ERP. You can easily
design and create your own business applications without adjusting the underlying business systems. Run those
applications on different user interfaces like mobile phones, tablets, PCs and hand-held terminals: it will work on
all of them, exactly how you want it to.

www.novacura.com

1
Introduction
Today’s manufacturers are at a crossroads.
On the one hand, they need to be agile enough to adapt
to the shifting processes, priorities and technologies that
make up Industry 4.0. But at the same time, they need
the stability of regular customers—who have increasing
demands for better service, visibility and personalization,
even in B2B.

On top of all this is a worker shortage that could reach


crisis levels in a few years. As older, experienced workers
start retiring, they’re leaving not just gaps in the schedule,
but knowledge gaps as well.

For the shop floor to continue running smoothly in the


midst of so much change, manufacturers need to focus
their time and effort on becoming faster and more flexible.

This guide offers 6 solutions to the biggest issues facing


manufacturers today. These solutions span from small
devices to large, over-arching changes to your processes.
They cover hardware, software, and human resources. But
they are all offered to you with the same goal: to help your
shop floor adapt to changing demands, processes and
technologies, and hopefully become future-proof.

2
Issue 1: An aging workforce and less demand
for manufacturing jobs
According to a report by the Society for Human Resources Management (SHRM), approximately
27% of the US manufacturing labor force are aged 50+.

As the workforce gets older, it creates specific issues on the So, you don’t just need to replace retiring workers: you find
shop floor. Aging workers aren’t as agile as their younger coun- ways to keep the valuable, practical knowledge of these older
terparts—but they have significantly more knowledge and training. workers in your business.

According to the Manufacturing Institute, “growth and a coming The last thing any manufacturer wants is to have to turn away
wave of baby boomer retirements mean that manufacturers are work because they don’t have the right people on-hand to
expected to need to fill upwards of 3.4 million jobs by 2025 (...) complete the job.
at current rates, only about 1.4 million of those jobs are likely to
be filled, leaving a gap of 2 million manufacturing workers.” So, what can you do to make sure your factory is well-staffed,
and that your employees have all the knowledge and training
In manufacturing, competitiveness is determined by output. they need—both now and in the future?
Output decreases when your most essential and experienced
workers leave the company.

3
Business process management
What it is
A process is a series of linked tasks that you complete to achieve a goal. Business process
management (BPM) is the term for improving the efficiency of your processes by mapping,
analyzing, improving, optimizing (and even automating) tasks and workflows.

Why it’s needed in manufacturing


Manufacturers have been dealing with increased pressure to raise output and reduce lead
times. This makes time one of the most valuable resources on the shop floor. Mapping, re-
viewing and optimizing your processes can help you identify bottlenecks, improve efficiency
and ultimately make the shop floor run smoother.

But mapping your processes has two other great benefits. First: when your processes are
mapped, everyone understands what they’re supposed to do and what’s expected of them.
This is especially valuable when training new workers. Second: the C-Suite gains a better
understanding of what happens on the shop floor. They can then use this information to col-
lect better data, monitor KPIs and make decisions about the business.

How it works
There are many methodologies to help you manage business processes: some of the more
popular options include Lean and Six Sigma. Whichever methodology you choose, the
steps to business process management are pretty much the same: design, modeling, exe-
cution, monitoring and optimization.

Benefits
• improves product quality
• ensures consistency
• boosts efficiency
• promotes better communication
• enforces accountability
• reduces paperwork

4
Automating processes on Which tasks can be automated?
the shop floor The best tasks for automation are:

Examples of automated processes you can • repetitive


use on the shop floor. • time-consuming
• rules-based
Let’s say you receive a work order for 100 widgets. Once • consistent
the order is in the system, it may trigger a few workflows: • data driven*
• An inventory check to assign the right materials
to the order (and another workflow to order
more materials if needed).
• A query to the warehouse to assign storage
space for 100 widgets until they’re ready for
delivery.
• A query to the logistics department to set up
delivery when the order’s done.
• A message to the customer letting them know
their order for 100 widgets has been received,
you’re working on it, and it will be shipped to
them in _____ days.

When it’s time to start working on the order, a whole


new set of workflows might be triggered:
• A manufacturing workflow to guide a worker
step-by-step through the widget-making
process. Once each step is complete, the
status of the order is updated in the MES and/
or the ERP.

• A QA workflow giving QA all the details of the


“100 widget” project, including all the notes
recorded by the worker, so that they know
where to check for possible defects.

5
How to get started
The first step is to map out your business processes as and entering it into a spreadsheet, could workers use
they are right now. Make sure to get input from as many mobile devices and enter data into your ERP or MES
people as you can, but especially the people who have right from the shop floor?
the most experience carrying out these processes.
Once you’ve defined your processes and determined
Keep in mind that even simple, straightforward process- what you’d like to optimize, look for a business process
es will have a number of variables, questions and forks management tool so you can control and automate your
in the road. Take note of all these variables and where in workflows. Options like Novacura Flow are flexible and
the process they come into play. easy to use, even with no prior experience.

Next, analyze the processes and come up with ways to Each department in your manufacturing business has
improve them. Are there places where your processes their own set of processes. By optimizing these process-
can be more efficient? es, you can help your employees work with more speed,
confidence, quality, consistency and transparency.
For example: instead of writing things down on paper
Employee cross-training
What it is Why it’s needed in manufacturing
Common in the military, cross-training is In manufacturing, schedules and priorities
when an employee learns the skills required are constantly shifting. Sometimes you
to perform tasks related to other jobs. might have a critical project, but the only
person with the skills to complete the proj-
In manufacturing, this might mean ect is on holidays, out sick, or otherwise
cross-training employees to work in different engaged. If you need something done and
departments, or training employees in the there’s no-one available to do it, the pro-
same department on different tasks. ductivity of your whole business can suffer.

It might seem counter-intuitive to train em- And as your most experienced employees
ployees in tasks outside their job descrip- start retiring, you don’t just need to replace
tion. But studies have shown that employ- them: you need to ensure production levels
ees involved in cross-training programs don’t fall while your new workers get up
become greater assets for the company to speed, and that your most ambitious &
while gaining knowledge and skills that ben- qualified employees don’t leave for a better
efit them personally. offer somewhere else.

Employee cross-training helps you manage


risk and keep productivity levels up. It also
helps your best and most ambitious work-
ers feel more job satisfaction and loyalty to
your company. But most of all, cross-train-
ing helps you ensure that the knowledge
and skills of your most experienced work-
ers get passed down to the next genera-
tion.

7
How it works
There are many ways to set up an employees cross-training program.
You may want to use weekly workshops, formal classes, job shadowing,
peer training, online courses or a combination of all four.
Here are some tips for effective employee cross-training:
• Make sure you’re training multiple people to cover the most
important tasks.
• Make collaboration and cross-training a key part of your
business vision so that every employee has at least one person
who can step in and cover for them at a moment’s notice.
• Ask employees for feedback on your cross-training system,
and adapt it as time goes on.

Benefits
• Less time spent onboarding and training new hires.
• A safety net in case you can’t find qualified hires when you
need them.
• A workforce that’s more flexible and adaptable to the changing
needs of the business.
• Gives workers greater job satisfaction because they’re learning
new skills.
• Keeps valuable, practical knowledge in the company, even after
people retire.

8
How to get started Third: schedule time for cross-training. It doesn’t have to take
weeks or months. An hour or two each week should be enough,
depending on the complexity of the task(s).
First: identify the skills and tasks you need more people to do.
Which departments are understaffed? Which positions do you Fourth: let employees put their new skills to work. What’s the
expect you’ll have trouble filling in one, three or five years? Do point of cross-training employees if they don’t get to use their
you have someone who can train people how to do these tasks new skills?
or gain these skills?
Don’t expect every employee to be thrilled about cross-training.
Second: identify the students and teachers. Your teachers will Some may see it as an obligation, a distraction or simply extra
be the employees with extensive training and experience. Your work. Focus your efforts on the people who are motivated to
students will be the employees who are willing and eager to learn (and teach) new skills.
learn.

Customer case: Minco


When you have customers, offices and manufacturing locations for stock and inventory, using hand-
around the world, it’s crucial that deliveries are correct. held devices and multiple desktop
scanners. The result? Better data,
But even with meticulous processes, Minco—who design and less discrepancies, and hours of time
manufacture advanced components for the medical, aerospace saved.
and defense industries—discovered that sometimes the inven-
tory on the shelves didn’t match the records in their ERP. “The stockroom group saves time and
steps, which is good for flexible pro-
Why? Simple human error. When employees have to enter all cesses,” says Matt Hanson, Planning
information manually, the potential for errors is high—and even and Materials Manager at Minco.
a small mistake can have huge consequences.
”But above all, we see that discrepancies and returns are going
Minco worked with Novacura Flow to create a barcode solution down – we simply have more satisfied customers now.”

9
Issue 2: Adapting to Industry 4.0
The fourth industrial revolution—Industry 4.0—is character- However, the International Data Corporation (IDC) predicts
ized by innovative technologies like augmented reality, 3D that only 30% of manufacturers currently investing in digital
printing and the Internet of Things (IoT). transformation will be able to maximize the outcome: the rest
will be held back by outdated business models and technology.
According to a 2015 report by Boston Consulting Group:
“Industry 4.0 will make it possible to gather and analyze data So, the challenge for many manufacturers will be how to ben-
across machines, enabling faster, more flexible, and more ef- efit from Industry 4.0 while dealing with legacy systems and/
ficient processes to produce higher-quality goods at reduced or outdated infrastructure... and making sure their new sys-
costs. This in turn will increase manufacturing productivity, tems are future-proof.
shift economics, foster industrial growth, and modify the pro-
file of the workforce—ultimately changing the competitive-
ness of companies and regions.”

First industrial Third industrial


revolution revolution
The first industrial The third industrial
revolution was brought revolution coincided
by the steam engine with computers, IT systems
& programmable logic

Until Mid.1800s Until 1914 From 1950s Starting now!

Second industrial Fourth industrial


revolution revolution
Electricity sparked the IoT, cloud technology, 3D
second industrial printing and artificial
revolution intelligence signal the
beginning of Industry 4.0

10
Start with better data collection
You can’t improve what you don’t measure.

There are five stages to successfully adopting Why it’s needed in manufacturing
industry 4.0-based manufacturing systems: In short: if you’re working with better, faster,
more accurate data, you’re able to make better
1. data collection decisions: about shop floor methods, processes,
2. data-to-information conversion part flows, machine performance, employee pro-
3. predictive analytics and machine ductivity, product quality and so much more.
self-comparison
And Industry 4.0 technologies, like smart sen-
4. machine self-assessment sors, make collecting good data easier than
5. machine self-configuration ever—even if your systems and processes hav-
en’t been updated in a long time.

Industry 4.0 is all about integration: connecting How it works


systems together, incorporating Big Data into The key is to collect as much good data as you
your processes, and augmenting processes can, without slowing down production or caus-
through the Internet of Things. But if you’re us- ing more work for your employees. You then
ing older, legacy systems—and you’re not in a need to store that data somewhere accessible,
situation where “rip and replace” is an option— in a format that’s easy to read.
are you out of luck when it comes to Industry
4.0? The majority of bad data is caused by one thing:
human error. So, to collect the best data, try to
The answer is: yes and no. It’s really hard to take humans out of the data collection process
make the leap from Excel worksheets to arti- wherever you can. Smart sensors, barcodes and
ficial intelligence, but there are ways you can RFID chips can all help you with this. For older,
benefit from new technologies even if your sys- legacy systems, you can install third-party sen-
tems aren’t so new. One way to help the shop sors and customize them to record the metrics
floor run better without completely overhauling you want to track.
your systems and infrastructure is to focus on
collecting better data.

11
But collecting data is only half the story: You can use these data dashboards on the Benefits
you also have to put the data to use. This shop floor to display real-time data about
• Get a clearer picture of how the
is where data visualization and dashboards production levels, key metrics and so on. shop floor runs.
come in. They say “a picture is worth 1,000 This helps build transparency and keep
• Get insight into any questions you
words.” Data visualization—through the everyone focused on the tasks at hand. have about current operations.
use of graphs and charts that update in
real-time—help you analyze your data and You can also use these dashboards in the • Continually improve product
quality and shop floor
spot issues much faster than staring at a C-Suite to get real-time insight into your performance.
spreadsheet. business and make quick decisions with
• Higher levels of traceability.
more confidence and accuracy.
• Maintain and repair equipment
faster.

12
How to get started
Chances are, you’re already collecting a lot of
data about your Key Performance Indicators
(KPIs) and processes. But maybe you’re not
using this data to its full potential.

The first step in updating your data collection systems should


be to write a list of questions that you can’t answer right now,
but wish you could.
These might be questions like:
• Why does machine A only perform at 75% capacity
compared to machine B?
• Why are we always behind schedule when producing
orders for Customer A?
• Why are products from plant B returned more than
products from plant A?
• Which employees are the most productive, and why?

You and your workers may have many opinions why, for exam-
ple, machine A doesn’t perform at max capacity. But can you
back up those opinions up data?

Next, determine which metrics do you need to track in order to


get the data you need. How can you measure these metrics?

From there, you’re ready to look into data collection solutions


like smart sensors, barcode scanning, RFID, IoT devices and
so on.

And don’t forget about data visualization. There are many


dashboard tools available: look for one that can connect to all
your systems and present information in real-time.

13
Introduce mobile devices
to the shop floor
Mobile devices help your workers do more, in less
time, with greater flexibility.
When you’re thinking about investing in new technology, you want to
make sure it will do a few things for your business: improve worker
productivity, reduce errors, increase asset uptime and improve opera-
tional visibility.

Mobile devices on the shop floor can help you achieve all that, for a
relatively small price.

14
How it works
According to a study by LNS Research, increased
use of mobile devices in manufacturing environ-
ments provides information to support both better
decision making and improved performance, as
well as the “potential to enable unprecedented
levels of interaction between traditionally discon-
nected workers in remote locations as well as in
different functional units in the value chain.”

Mobile devices like tablets are especially useful


for shop floor tasks like:
• inspection
• quality control
• production reporting
• cycle counting
• material handling

Introducing mobile devices the shop floor requires


two things: hardware and software. You need
hardware that stands up the to the demands of
the shop floor, and software that has an easy-to-
use interface, works perfectly on different de-
vices and connects seamlessly to your business
systems. Fortunately, as technology continues to
improve, it becomes easier to make great applica-
tions for almost any process.

Benefits
• More accurate and efficient than paper.
• Less chance of manual input errors.
• Less time spent walking back and forth
to a desktop computer.

15
How to get started
The first thing you need to do is find out how your MES and ERP work on a
mobile device.
Many business systems have cloud-based versions or even their own mobile apps. You can also
make your own app, either by hiring a developer or building something in-house.

Then, choose the mobile devices that will work best for your needs. There are many options to
choose from. Some Novacura customers have equipped their workers with iPads: others have found
that they need something more durable. It all depends on the conditions in which the device will be
used.

16
Choosing the best
mobile devices for the
shop floor
When selecting mobile devices for the shop
floor, keep these things in mind:
• Ingress protection (IP) rating—a higher rating means
better durability.
• Wifi and Bluetooth connectivity.
• Scanning capabilities—will you need to buy
separate barcode scanners?
• Battery life—will the battery last a full shift? Is it
replaceable? Will changing a battery cause data
loss?
• Storage space (especially if using offline apps).
• Accessories—will you need to attach the tablet, for
example, to a forklift? If so, you’ll need something
on which to mount the tablet.
• Required maintenance and software updates.

17
Issue 3: Increasing
customer demands
and the Amazon Effect
These days, manufacturers are being pressured
to provide retail-level service to their customers
—or even selling products to the end consumer
themselves.
And today’s customers are much more demanding than they
used to be. Now, thanks to e-commerce sites like Amazon, con-
sumers can buy whatever they want, at any time of day or night,
from anywhere, and have it shipped to their door in record time.
That means more competition in the market, more pressure to In addition, there’s drop shipping: when a retailer sells a product
cut lead times and less potential profits for you—whether you’re but the manufacturer holds the inventory and fills orders on the
selling products B2B or B2C. retailer’s behalf. These drop shipping order flows require dif-
ferent procedures for order management, warehouse manage-
They call this the Amazon Effect, and its impact is being felt in ment, inventory management, material handling, picking, pack-
every part of the supply chain. ing, shipping and transportation management.

The Amazon Effect means that manufacturers now have to pro-


According to an article from Industry Today:
vide retail-level customer service to their clients, regardless of
“Customers are expecting, or soon will expect, visibility into the
what they produce. And if your service isn’t up to par, the cus-
manufacturing process at every step. While they won’t want to
tomer will buy from someone else.
watch each individual unit be made, they will want to know, at a
high level, when each step of the process is complete. ”
So, how do you keep the shop floor running smoothly in the
wake of drop shipping and the Amazon Effect?
Both B2C and B2B customers are demanding this increased
transparency. And if you can’t provide them with the level of
customer service they’re demanding, they’ll buy from someone
who will.

18
Here is an example of how a Customer Self Service Portal could look

19
Create a customer
self-service portal
What it is
A self-service portal is a way for customers to answer questions
about your product and manage their orders, tickets and account
information—on their own terms, at any time, from anywhere.

Why it’s needed in manufacturing


In a recent study by Epsilon Research, 80% of consumers said
they were more likely to do business with a company if they were
offered a personalized experience.

The study also found that:


“Consumers who believe personalized experiences are very ap-
pealing are ten times more likely to be a brand’s most valuable cus-
tomer—those that are expected to make more than 15 transactions
in one year.”

A customer self-service portal allows customers to personalize


their experience with your business. Through the portal, they can
place and track orders (on their schedule), update information, an-
swer their questions about your products and decide exactly how
they want to interact with you—all without picking up the phone.

Customer self-service portals also give customers more visibility by


allowing them to track orders—or check stock levels before placing
an order.

In short: customer self-service portals make it easier for customers


to buy from you. And when it’s easier to buy from you, customers
are inclined to do it more often.

20
How it works
A customer self-service portal is usually a website that connects to your ERP, CMS, and so on.

Through the self-service portal,


customers can do one or all of the
According to the Consortium for
Service Innovation, a well-designed Benefits
following: customer self-service portal in- • Customers can place and track orders
cludes: in real-time.
• submit new orders
• You can receive orders 24/7/365.
• track the status of open • Findability – Driven by
orders • Save time and money on customer
context, structure, and rich support.
• view their order history environment statements.
• Customers appreciate the personal-
• chat with customer service • Completeness – Most ization and user-friendly access.
agents (or chat bots) of what we know that is
self-serviceable, needs to be
• perform administrative available quickly.
tasks like updating contact

How to get
information and resetting • Access – Self-service is
passwords integrated into the user
interface and is context-sen-
• get answers to questions,

started
sitive for where we are in the
either through a knowledge product.
base or a community forum
• Navigation – Intuitive and
aligned with the requester’s There are many software companies
Because the portal is online, custom- intent. Should provide for offering white-label customer self-ser-
ers can log in to their account at any both browsing and searching
time, from anywhere. This makes you and ensure a smooth way to vice software options: some examples
business more available to the custom- transition from self-service to include ZenDesk, FreshDesk and Live-
er and gives them the personalization assisted support. Agent.
they crave. • Marketing – A marketing
plan is required for Some ERPs, like SAP and IFS, have
But even better, it opens up your busi- self-service. The service customer self-service modules that you
provider must take explicit can buy.
ness to receive orders 24/7/365. actions to get requesters to
use self-service.
You can also hire a company to create
a customized system for you.

21
Real-time data helps your sales
people answer customer questions
in seconds—even when they’re in
the field.

22
Leverage real-time data
Real-time data gives you a more accurate and holistic view of the entire shop floor.

What it is Why it’s needed in manufacturing


The shop floor of the future needs to There’s information that the shop floor needs right away (for example: if you’ve run
be able to adapt quickly to change. If out of a certain material, or if a customer cancels an order). If the shop floor doesn’t
you’re not acting on the most current receive real-time updates, they’ll keep working from incorrect or outdated informa-
information, the shop floor is always tion, which costs everyone in the company time, money and hassle.
reactive when it should be proactive.
Real-time data helps with traceability, something regulators are increasingly demand-
Because of the Amazon Effect, custom- ing from manufacturers. When you can trace a product all the way through its lifecy-
ers are demanding faster production, cle in real-time, it helps you:
better quality and shorter lead times. • Be more compliant with traceability regulations.
By leveraging real-time data through- • Identify patterns, gaps and opportunities for process improvement.
out the supply chain, you’re better
• Anticipate issues and fix them before they become problems.
equipped to manage risk and adapt to
change, which makes for higher quality
products, less waste and more efficien-
cy on the shop floor.

23
How it works Benefits

How to get
There are many ways to leverage • Improves product quality and
real-time data on the shop floor. reduces scrap by helping you
identify and fix issues before

started
Here are a few examples: they become problems.
• Work order updates so • Helps the shop floor be
everyone knows when an more adaptable to changing
order is completed, updated, priorities.
changed or canceled. The first step to leveraging real-time data is
• Improves customer satisfaction to implement tools to collect data in real-time
• Inventory management to by empowering sales/customer
ensure all materials for an service teams with real-time (see “Start with data”).
order are on-hand when inventory and order tracking
needed. capabilities. Next is to find a way to combine data from
• Tracking materials, shipments • Gives the C-Suite a more different systems—like your MES and ERP—
and deliveries (with GPS) holistic view of the entire into a consistent format, so that you can
for better, more accurate company, which empowers leverage information from each system to get
scheduling. them to make faster, better and an accurate, real-time view of the company as
• Tracking of daily KPIs to more informed decisions.
a whole.
help gauge progress, adjust • Improves traceability and
schedules and make better makes your company more
business decisions. This can be a big task, as different systems
compliant with current
regulations. use different data collection protocols. Lucki-
• Machine output tracking ly, there are tools like Novacura Flow that can
to identify patterns and
implement predictive help you connect your systems using a con-
maintenance. sistent format and a user-friendly interface.
• Stock level updates so sales-
people can confidently Look for a tool that’s flexible enough to con-
answer customer questions nect to all your important systems without
in the field—or for customers changing the functionality of any of the sys-
to place orders themselves tems. Flow, for example, acts as a layer on
through a self-service portal.
top of your systems, allowing you to create
applications and workflows using data from
many systems at the same time without
affecting the systems themselves.

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Conclusion
The manufacturing industry is changing rapidly. On the one hand, a significant number of work-
ers are retiring—and taking decades of valuable, practical experience with them. On the other
hand, changes in technology and increasing customer demands mean that the shop floor has to
work harder—and smarter—than ever before.

If you want your shop floor to be productive and competitive for years to come, make adaptabil-
ity your overarching goal. If your workforce, machines and processes are flexible and adaptable
to change, your business will be virtually future-proof.

Imagine a shop floor where the reality is in sync with


your systems, all unnecessary work is eliminated and
everything going out is 100% accurate. Novacura Flow
makes it happen.

Learn more about Novacura Flow >

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