Vice President, Operations, Europe & Asia Neapco Holdings, LLC Brighton, Michigan
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This presentation will provide an overview of a comprehensive strategy map of work in progress for transitioning to Quality 4.0 as a competitive advantage in automotive manufacturing business environment. The presentation starts with postulating a compelling case for designing and operationalizing a fully functional Quality 4.0 system to realize potential of an Industry 4.0, or the fourth industrial revolution operational system. In fact, several landmark studies indicate that in future, Quality 4.0 will be the single most critical-to-success factor in any efficient and profitable Industry 4.0 operational system, especially in fast paced manufacturing environment. Quality 4.0 will ensure a smooth and efficient conversion value stream of given inputs into desired outputs at required level of quality, cost and on-time delivery as demanded by customers. Business leadership requires constantly looking out for new and improved technologies, infrastructure, and processes; adopt them ahead of competition, mitigate the risks associated with innovation and stabilize the system ahead of next iteration. Comprehensive literature survey and benchmark studies for the research for this project identified five (5) key elements to consider and effectively address for a flawless transition to Quality 4.0 system. FIVE CRITICAL ELEMENTS 1. Quality 4.0 / Industry 4.0 enabling technologies – Internet of Things (IoT), cloud computational environment, large data processing for predictive analytics, Artificial Intelligence (AI) and machine / deep learning, 2. Human capacity building – A comprehensive human skill, knowledge and capabilities building plan to fully utilize all the benefits of technologies, 3. Key processes selection – Selecting processes that can become Quality 4.0 compliant conveniently and show performance improvement quickly, 4. Proactive risk management – Building in sufficient automated features and control. A self-sensing, and self-correcting system for known issues and abnormal process conditions, and. 5. Return on Investment (ROI) on resources – A comprehensive ROI analysis is an essential part of strategy map. Quality 4.0 strategy map includes specific action items and milestones to be completed for a flawless migration to a Quality 4.0 system. Those milestones are discussed as follows: 1. QUALITY 4.0 ENABLING TECHNOLOGIES: These days, several solutions are available for use in Quality 4.0 system but the primary focus of this strategy map is to ensure that the selected tools are the most efficient solutions available at the time of project execution, so the selection criteria includes: a. Useful life: What is the fully functional life of major technological components including software, hardware, and infrastructure. Useful life is the most critical factor for investment purposes. Most of the elements have 24-, 30- or 36-month life span. b. Connectivity, availability and compatibility: Quality 4.0 will be extensively using IoT and cloud environment, so seamless connectivity, availability and compatibility across all devices ranging from smart phones to onsite mainframe computers is a must. c. Ease of data storage and retrieval: Far larger quantities of data will be collected in Quality 4.0 system. It is important to acquire technology that efficiently collects, processes, stores and analyzes data for intelligent decision making and better new product development. d. Vertical integration: Ensuring that the subsequent newer versions of technology is seamlessly integrated, no data or useful information is lost during upgradation and expansion during business growth periods.
2. HUMAN CAPACITY BUILDING After technological infrastructure has been designed, it is important to consider that skill and capacity of the people managing that system. The following factors are considered for workforce development. a. Ease of learning and skill building: How long it takes to learn the technology? How many people need to acquire expert, intermediate, basic levels of skills to make best use of technology b. Ability to solve problems and prevent reoccurrence: Probably, the biggest promise of Quality 4.0 which people need to learn to leverage. Far larger data will be available that will help in solving the problems to true root cause and prevent recurrence e. Changing roles and nature of work: It is anticipated that Quality 4.0 will bring significant modifications to the way people work; the strategy maps explain how to prepare people for that changing nature of work throughout the implementation process.
3. KEY PROCESS SELECTION Based on best practices in change management, it is recommended to implement Quality 4.0 system gradually. Initiating several changes at once usually cause confusion and frustration, in this proposal, some recommendations are as follows: a. The least capable processes: A logical choice for transition to Quality 4.0 is to select processes that cause the most harm to operational system like customer dissatisfaction, non-compliance, efficiency losses etc. f. Easy to implement: This is another meaningful option, selecting simple processes with significant improvement impact. This option also provides encouragement and encouragement to people with early wins.
4. PROACTIVE RISK MANAGEMENT An exhaustive industry data for this project’s bench marking showed that 80% of the time businesses tend to fix the problem after-the-fact. Ability to see the risk well in advance and fix the abnormalities before they become full blown crisis is a great advantage of transitioning to Quality 4.0 by. a. Preventing errors before they happen: There are several built-in features, signals and warnings that prevent occurrence of non-conformance b. Able to distinguish between normal and abnormal process conditions: Quality 4.0 systems have several embedded artificial intelligence features including remote sensing and monitoring, fixing problems quickly and remotely. g. Self-correcting and self-healing: Quality 4.0 is a memory enabled and fast learning system with ability to restore to normal operational state without complex human intervention. Also remembering all experienced failures and abnormalities.
5. RETURN ON INVESTMENT (ROI) With all the promises and expectations associated with the Quality 4.0 systems; it is always a million-dollar question, “Is it worth the effort or investment?” Some of the factors included in the project are: a. Current cost of quality: Establishing a baseline of current cost of quality at enterprise level. b. Estimating savings over time: What are the cost reduction opportunities in a fully functional system? c. Computing ROI: This includes comprehensive analysis of all initial costs, how frequently the system would be refreshed and what are incremental costs? d. Leasing services versus owning the infrastructure: To build a full-service in-house system to lease one. SaaS (Software as a Service), PaaS (Platform as a Service) and IaaS (Infrastructure as a Service).
1. Develop a clear but simple understanding of Quality 4.0 system framework and its’ critical elements including enabling technologies, human factor, process quality controls, proactive risk management and financial impact.
2. Develop understanding of available enabling technologies, their potential in enhancing quality system and operational efficiency
3. Prepare workforce in newer skills and embrace changing nature of work. Build appropriate skill levels and become more productive without exerting more
4. What are commonly experienced risks and challenges during transition to Quality 4.0 system? Tips for planning ahead to avoid these risks and overcome challenges.
5. Tips for developing a compelling business case for transition to Quality 4.0 system. Quality 4.0 generally requires significant capital investment; attendees will learn how to rationalize that investment.