1、Why Do We Need Human-Machine Collaboration and Process Optimization?

Market Changes and Quick Response in Product Development Cycle

The global market competition is intensifying, and customer demands are rapidly changing. Digital transformation helps companies quickly respond to market changes, providing more personalized products and services, thereby enhancing customer satisfaction. For example, Nike uses automation and 3D printing technology to achieve mass customization, shortening the product development cycle by 50%. This flexibility not only improves customer satisfaction but also strengthens the company’s market competitiveness. Digital transformation enables companies to adjust production lines flexibly and quickly respond to market demands, maintaining an edge in fierce market competition.

The Importance of Process Optimization and Human-Machine Collaboration

The Industry 4.0 value chain involves multiple areas such as design and engineering, warehousing, production, outbound logistics, and support services, relying on emerging technologies like 3D printing, 5G, and artificial intelligence. However, the key lies in optimizing human-machine collaboration processes. For instance, Siemens uses digital twin technology to simulate production processes, increasing production efficiency by 30% and reducing energy consumption by 20%. After introducing collaborative robots (Cobots) and digital twin technology, companies need to redesign production processes to ensure seamless collaboration between humans and machines, thereby fully leveraging new technologies.

Data-Driven Decision-Making and Automation Benefits

Digital transformation enables companies to collect and analyze massive amounts of production data for predictive maintenance, quality control, and supply chain management. For example, digital quality management systems can reduce product defect rates by 30%-50%. Automation technology significantly enhances work efficiency in small and medium-sized enterprises (SMEs), saving a considerable amount of time. Data shows that SMEs can save 26-40 minutes per week on marketing tasks. These quantified results indicate that automation and data-driven decision-making not only improve product quality but also significantly reduce production risks and operating costs.

2、Which Application Scenarios Should Manufacturing Focus on for Automation and Human-Machine Collaboration?

1. Quality Control

Common Pain Points:

1. Quality control monitoring projects are numerous and prone to errors, causing delays and production discrepancies.
2. Different quality control methods result in inconsistent products.
3. Manual record errors and data isolation lead to cost overruns and delays.

Power Automate Applications:

• Use SharePoint and Power BI to automate quality data collection and analysis, reducing human errors. For example, a large manufacturer used Power Automate to automate equipment calibration reports, reducing product defect rates by 30%.

2. Supply Forecasting

Common Pain Points:

1. Manual supply demand forecasting easily leads to shortages or excess.
2. Inaccurate inventory forecasting increases supply costs.
3. Chaotic data and systems result in mismatched supply levels.

Power Automate Applications:

• Use Excel Online and Power BI to automate supply forecasting, improving accuracy. For instance, a tech manufacturing company used Power Automate to optimize inventory management, reducing inventory backlog by 20%.

3. Production Tracking

Common Pain Points:

1. Production interruptions lead to delays and inventory shortages.
2. Dispersed system data causes production issues to be overlooked.
3. Manual tracking and non-systematic methods cause reporting delays and inaccuracies.

Power Automate Applications:

• Use SharePoint and Notifications to automate production progress tracking and notifications. For example, an automotive manufacturer used Power Automate to monitor production progress in real-time, increasing production efficiency by 25%.

4. Order Processing

Common Pain Points:

1. Order management is time-consuming and error-prone, reducing customer satisfaction.
2. Manual order processing leads to delays and frequent errors.
3. Inaccurate or changing processing times affect satisfaction and loyalty.

Power Automate Applications:

• Use Outlook and SharePoint to automate order processing and follow-up, reducing errors and delays. For instance, a food supply chain provider used Power Automate to automate order input, shortening delivery times by 50% and significantly improving customer satisfaction.

Summary of Benefits:

1. Reduce Errors and Delays: Automated processes reduce manual operation errors, improving efficiency.
2. Enhance Production Efficiency: Real-time monitoring and notification features ensure smooth production processes.
3. Optimize Resource Utilization: Automated data analysis helps companies utilize resources more effectively, reducing costs.

3、Common Pain Points in Manufacturing Digital Transformation

1. Silo Effect

Digital transformation in manufacturing is often hindered by a lack of collaboration between departments. Independent digital transformation teams, business leaders, on-site operations, manufacturing excellence departments, and central IT departments often lack communication, making it difficult to integrate and achieve expected results.

2. Resistance to Change

Internal employees’ acceptance of new technologies and processes is often the biggest obstacle to digital transformation. This resistance may stem from fear of the unknown technology or concern over job security. Effective training and support systems are crucial for alleviating this resistance.

3. Lack of Overall Strategy

Many companies lack a clear strategic plan when promoting digital transformation, leading to unclear direction and wasted resources. Clear goals and priorities help companies maintain consistency and increase success rates during digital transformation.

4. Communication Gaps

Digital transformation requires effective communication between all levels and departments. However, many companies fail to adequately convey the benefits and specific impacts of the transformation, leading to a lack of understanding and support from employees. A clear and transparent communication strategy helps build consensus across the organization.

5. Outdated Infrastructure

Old IT infrastructure often struggles to integrate with new technologies, posing a major challenge to digital transformation. Companies need to update and retrofit existing infrastructure during the transformation process to ensure the smooth implementation of new technologies.

6. Security and Privacy Issues

As digitalization increases, data security and privacy issues become more prominent. Ensuring data security throughout the digital transformation process is a major challenge for companies, as any data breach could lead to severe financial losses or reputational damage.

Five Steps to Greatly Increase the Success Rate of Transformation

1. Comprehensive Process Inventory and Roadmap Establishment

Before promoting digital transformation, companies should conduct a comprehensive inventory of existing business processes to identify current problems and bottlenecks. This allows for targeted improvement measures and the development of a specific optimization roadmap, ensuring that each step has a clear action plan and timeline, making the entire transformation process more orderly and efficient.

2. Utilize Third-Party Perspectives and Objective Data to Avoid Conflicts from Different Viewpoints

External consultants with rich digital transformation experience can provide targeted advice and solutions. They can help companies analyze processes, develop strategies, and provide technical support, improving the success rate of digital transformation. Combining process visualization tools (such as Process Mining), external consultants can use data analysis to identify bottlenecks and inefficiencies in processes and provide specific improvement recommendations. This external perspective and objective data help companies avoid conflicts and decision-making blind spots caused by internal biases, promoting more objective and comprehensive problem-solving.

3. Expectation Management and Building Internal Small Wins

Digital transformation is a gradual process, and companies need to manage expectations effectively at both the upper and lower levels. Setting phased goals and small wins, and promptly recognizing them upon achievement, can boost employees’ confidence and engagement, gradually advancing the overall transformation process. This strategy helps maintain employee enthusiasm while gradually driving overall change and reducing resistance. Internal small wins also demonstrate the positive effects of change, motivating employees to participate in subsequent transformation efforts.

4. Strengthen Internal Communication and Collaboration

Digital transformation requires effective communication between all levels and departments. Companies should establish a comprehensive internal communication mechanism, such as regular monthly reports and routine meetings, ensuring that all relevant personnel are informed of project progress and changes in real-time. Using data to communicate, through transparent data reports and analysis, enhances employees’ understanding and support for the transformation. For example, using data dashboards to display key indicators and results in the transformation process ensures that employees can clearly see the effects and progress of the transformation.

5. Employee Training and Cultural Change

Internal employees’ acceptance of new technologies and processes is often the biggest obstacle to digital transformation. To alleviate this resistance, companies should provide ample training and support, helping employees understand and master new technologies. For example, organizing specialized training sessions, providing online learning resources, and setting up internal technical support teams. Additionally, companies should promote cultural change, encouraging innovation and continuous learning, cultivating employees’ interest and acceptance of new technologies, thereby building a corporate culture that supports digital transformation.

KSCC is a management consulting company in Taiwan. Our services include corporate in-house training, consulting, and leadership management.For more information about our corporate services, please feel free to visit our website: https://kscthinktank.com.tw/custom-training/ 

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