Lean First Just Digitized! You agree?
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Any process can be designed to be automated (if you have enough money). But companies that run automation without doing continuous improvement First, there is the potential for double losses. Here’s the explanation!
Citing Industryweek, a study by the Business Development Bank of Canada shows that one way for companies to attract and retain new talent is to embrace automation. What is your opinion?
Practitioners continuous improvement (CI) of course has a slightly different point of view on automation, in which process optimization is still considered the main backbone for conducting business efficiency.
4 Crucial Things
While agreeing with the need and importance of automation, it is equally crucial to consider the following four points before adopting automation into processes.
1. Is the process repeated? The note here is that automation will be prioritized for jobs or processes that are repeated. If you want employees to do more valuable work then it is right to consider automation.
2. Can the process be reduced? Evaluate your entire process, is there anything you can reduce or eliminate? Look for opportunities to eliminate non-value-added work. Otherwise, the automation carried out will only lead to further losses. Remember output one step process automatically becomes input for the next step!
3. Can variations of materials be combined? The more (different) materials used in production the more suppliers are involved. This results in increased processing time. Evaluate how many different types of materials were used to make your product, and see if the designs could be combined using fewer types of materials.
4. Is there standardization? In many articles Toyota is referred to as the benchmark for standardization. One of the KPIs used by Toyota is the percentage of vehicle components that can be assembled or disassembled using only a 13mm wrench.
Excellent people, as we know so far any process can be designed to be automated (if you have enough money). But companies that run automation without doing continuous improvement First, there is the potential for double losses. Here’s the explanation.
The Dangers of Automation Without CI
Each process has activities that are divided into two portions, namely activities that have added value or value added value add and activities that do not have added value or waste.
Activities included waste this is an activity that does not contribute any benefits to the organization or its customers, this activity only adds to the cost burden.
When the process is automated or digitized, we also increase these non-value-added activities. If it continues, it will cause a double loss, namely the process of waste and digital waste.
Well, the process that waste this should be removed first by using continuous improvement. This is why in best practice it is said that for digitization to be successful it must be continuous improvement must first be done in the organization.
Not only improving processes, CI will also improve the competence of human resources in the organization. With the occurrence change management during the CI process, people in the organization are ready and easier to face change, including when it comes to digital aspects. Remember in digital transformation, the challenges are not only on the technological aspect but also people.
Operational Excellence Viewpoint
In addition, perform process automation or digitization from the point of view of Operational Excellence must always refer to improvements in terms of parameters Q, C, D.
This means that the benefits of such automation should make Quality process becomes better (process error is reduced, risk is significantly decreased), Cost lower (costs become more efficient), and Delivery better (improved better delivery service to customers, faster lead times, and increased SLA)
In conclusion, by running CI first, there are many processes waste can become more valuable so that when digitized it will provide greater profits. Not only do you have the opportunity to attract the right talent, you also have a much greater benefit.