Practical insights in your journey to Digital Project Execution
What does it mean and what should your corporation do about it?
Return on investment
Impact on current business and future success
When and where do you start?
What are the risks? How does a corporation start this journey?
Corporate office can do this but what about the front line?
“In other words, Industry 4.0 can be understood as digitally enabled lean.”
The above quote from Mckinsey&Company, Operations arch 2017, Industry 4.0 demystified—lean’s next level by Andreas Behrendt, Nicolai Müller, Peter Odenwälder, and Christoph Schmitz truly set forth the five important principals that can help companies find tangible value.
Making the next horizon of productivity gains possible & the opportunity to mirror the developments that unfolded in manufacturing, the authors state the following key points:
Proven principles of lean—such as reducing waste in the form of machine breakdowns or non-value-adding activities—will remain fundamental.
Digitally enabled transparency regarding performance5*
Now new sensors, more data, and advanced analytics can boost the ability to solve problems and identify sophisticated improvement measures, resulting in smarter solutions and new productivity gains. These advances can be complemented with digitally enabled transparency regarding performance.
Need to improve productivity
Industry 4.0 is the source of the next horizon of productivity gains: As cost pressure across all industries continually increases, companies face the need to improve productivity by two to four percentage points every year.
Industry 4.0 is a topic for the business, not just the IT department
IT enables Industry 4.0 but should not drive implementation. Companies should focus on how they will conduct their business in the future, thinking through changes from a value-chain and business-case standpoint.
Industry 4.0 efforts need to be led by top management—they cannot be delegated
Assigning Industry 4.0 responsibility to a staff function with no direct execution power, or placing the required responsibility far too low in the management hierarchy – in either case, realizing the full impact potential is jeopardized.
The journey means taking a risk – and risk taking cannot be delegated.