7 Strategies to Accelerate Adopting Technology and AI in Manufacturing

  • Manufacturing
  • 12/2/2024

Leaders across Wisconsin gathered to hear six manufacturing executives discuss efforts to transform operations and adopt new technologies.

On November 18 in Green Bay, followed by a twin program at UWM’s Connected Systems Institute on November 19, leaders from across Wisconsin gathered to hear from six manufacturing executives about how they are transforming operations and accelerating adoption of technologies, including AI.

Skillfully moderated by Craig Dickman, Managing Director, TitletownTech, over 150 executives heard from pioneers who have successfully inspired staff to lean in and adopt key technologies. The Green Bay program was sponsored by CLA and Nicolet Bank. The Milwaukee program was hosted at the University of Wisconsin-Milwaukee’s Connected Systems Institute (CSI) and sponsored by CLA, BMO, and Michael Best.

What is the Connected Systems Institute (CSI)?

The Connected Systems Institute is a collaboration between industry and academia focused on manufacturing research and industry application. The Microsoft AI Co-Innovation Lab for Manufacturing in Wisconsin is co-located within the CSI and facilitates collaboration between the two organizations.

The purpose is to help manufacturers with early-stage testing and design evaluation, as well as destination for manufacturing leaders to incubate ideas. The Co-Innovation Lab in Wisconsin is one of seven worldwide and is the first Co-Innovation lab dedicated to the manufacturing industry. The partners in the AI Co-Innovation Lab include Microsoft, TitletownTech, CSI, the Green Bay Packers, and the State of Wisconsin (through the Wisconsin Economic Development Council).

An all-star lineup in Green Bay and Milwaukee

The executives on the panels represented a broad spectrum of industries: including AI powered shop floor communication systems, consumer and commercial appliances, industrial hydraulics; commercial voice/data/security systems, and industrial infrastructure.

Craig and team explored five key themes:

  • Practical examples
  • How to accelerate adoption
  • Upskilling the workforce
  • Justifying investments
  • Future innovation plans

This blog summarizes the top takeaways from both back-to-back events.

1. Focus on the problem

An executive shared how laser scanning has been used for a long time on jobsites. Inefficiencies were slowing down lead times. His team tinkered with a mobile scanning solution and mounted a sophisticated system worth seven figures on a truck.

The business had to immediately build a processing center to handle huge datasets from the field and a series of IT upgrades to support it. What started as an experiment paid off — and enabled opening up new applications in new markets.

During his time at a consumer products manufacturer, an executive shared his team was struggling with 80% turnover and 12 languages on the shop floor. The company experimented with radios that enabled real-time translation. For the first time, 100% of staff could communicate with each other and collaborate on improvements. Turnover dropped from 80% to 20%, and a planned $200 million in capital expenditure to increase capacity was avoided thanks to a 20% increase in productivity.

Sometimes the simplest resolution might not actually involve any technology. In this great example, hundreds of engineering hours were consumed trying to deal with liners coming out of gaylords and getting into grinders — which created a contamination hazard (and recall issues). Engineers came up with all sorts of complicated ideas. The problem was finally solved by a welder who attached two brackets worth three bucks to each side of the gaylord. The key takeaway was to avoid over-engineering the problem and look to shop floor workers for some of your best ideas.

Key takeaway: find value by digging into workflows.

2. Avoid shiny objects

A panelist in the consumer products space emphasized how his company’s engineering teams insisted that the frequency of a consumer habit was once a week. After connecting with Microsoft’s Co-Innovation lab and embedding AI into appliances, facts became friends and the data showed consumer habits were realistically once a year or less.

Empowered with real-time data flowing in from installed appliances, engineers today have massive quantities of data to improve user experience, customer service, reduce energy consumption, and reduce warranty claims. Lacking these skillsets in-house, collaborating with engineers in Redmond was a valuable time saver.

Another panelist wanted to right-size training for staff. Using AI, leadership learned that most workers absorb information more efficiently when it is delivered in bite-size packages around 3–4 minutes long. That led to a significant repackaging of all company training programs.

Key takeaway: focus on how to make lives better and ROI will follow.

3. Wisdom is not resistance

One executive shared how his team is currently struggling to implement a shop floor system — which includes eliminating blueprints and paper travelers — and can’t seem to get past a 50% adoption rate. His more senior workers are not giving up paper. Management would love to accelerate change but is reluctant to force the transition.

A panelist suggested that the older generation has decades of wisdom, which isn’t resistance. A bridge must be built from experience to opportunity. Another panelist suggested bringing together those not adopting and be candid — admit the launched happened fast. Get feedback by asking “what did we miss?” As the workforce ages, there’s a lot of value in understanding experience across each generation. Some won’t get it and need an exit strategy (including younger workers). Cultivate those who are willing and able to assist with design, learn, and inspire others.

Another executive shared how it took his company about two years to be fully paperless. Every team member was given a tablet device. There is no check-in or check-out process. Paychecks are tied to workflow that tracks time at each station. Process integrity is maintained because staff can only progress from step A to B by completing each task.

Key takeaway: Empower accelerators as close as possible to where the work is being done.

4. Lead with practical benefits

When an opportunity to install dash cams in trucks was launched, a panelist shared how initial resistance was fierce — nobody wanted to feel tracked. However, when a dashcam exonerated a driver after an accident, suddenly everybody wanted one.

Another panelist is using technology that enables geo-tracking of each worker. Similar to the concern with the dashcams, employees were initially concerned about being tracked. Concerns were alleviated, however, upon explaining the benefits of confirming evacuations in an emergency and helping first responders locate those still in a building should an industrial accident occur.

Key takeaway: find a way to remove the fear.

5. Empower a tech culture across the enterprise top to bottom

One executive discovered the value of encouraging ideas from all staff levels. A technician responsible for a 911-related critical infrastructure system saw a repetitive task, did research, developed a cost/benefit analysis, and launched an innovative solution that improved cybersecurity. The solution offered payback in under a month.

Another executive described how staff is motivated early to dive into root causes of a problem. Unsolved service tickets with any technology system keep escalating (including across multiple facilities on a common platform) up to and including the CEO. So, issues that bubble up are handled quickly — no one wants to have an issue wind up on the top boss’s desk on their watch.

Key takeaway: a technology adoption mindset is cultural.

6. Want to accelerate adoption? Get super creative

In the shop that adopted translation radios, the executive noted how hard it is to encourage change, especially on the manufacturing floor. Getting people to wear headsets was a challenge. One team member suggested adding music to headsets, and management experimented with a subscription to a popular global music streaming service. Safety managers went nuts, so a decision was made to use headsets covering only one ear. Headsets were not mandated but when music was added, adoption went to 100% within a month.

Another executive shared the importance of knowing your team, working with early adopters, broadcasting adoption rates, using the intranet to share examples, and building recognition as well as milestone celebrations into a program.

Craig Dickman described a program at UW Green Bay that gave AI bots to incoming students, which enabled them to ask normal language questions. Ease of use resulted in a 96% adoption rate.

Key takeaway: focus on relationships and the human experience, and the adoption will follow.

7. Focus on upskilling

As this topic was launched, one executive noted the difference between upskilling and enabling. In the process of adopting show-floor communications technology, staff were enabled to do Gemba Walks in their native language, which had never happened before due to a language barrier. He noted “we learned we had engineers on our workforce we didn’t know we had once we could communicate and better understand their education.” Staff also figured out how to use the technology to upskill, by listening to instructions in their native language while simultaneously reading a transcription in order to improve their English.

Another executive commented about how we’re good at early adopting. We’re less good at operationalizing — especially staff engineering. Engineers will adopt early but they won’t give up their favorite tool. They discovered success bringing along engineers by analyzing the total cost of ownership related to legacy technologies (cost to patch, cost to maintain, etc.).

Executives reflected on how little we use the technologies we’re implementing. Today the average person uses a fraction of the capabilities in our smartphones and even less of common applications like Excel.

Key themes of creative thinking

Once a company gets to a certain size, innovation is less clear. Creative thinking involves staying focused on the user or process first, versus the technology.

  • Focus on workers — make lives better. Innovation will come from unexpected places. Empower those closest to the process (easier said than done). Consider the balance between accountability and responsibility.
  • Don’t be blinded by shiny objects — agree on what to measure early. Remind staff everyone must be stewards of financial resources.
  • Relationships are key to success. Alignment creates agility and speed. • Before considering any automation, fix the process first. Confirm the problem to be solved. Don’t automate a bad process. Use simple lean tools like value stream mapping.
  • Treat your IT department as a company. P&L — show cost, usage, and ROI.

How we can help

The pace of change will only increase and those who are agile are well positioned to succeed. Need help accelerating adoption and improving profitability? CLA’s digital manufacturing professionals are ready to assist you, whether you are just getting started or looking to take your enterprise performance to new levels.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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