With the current labor shortage expected to only get worse, lean strategies may not be enough to help manufacturers survive. Here’s how pairing automation and lean together can give manufacturers an edge to overcome staffing deficits, explains Ken Koenemann, VP of technology & supply chain, Dploy Solutions & TBM Consulting.
The onset of the COVID-19 pandemic eliminated 1.4 million jobs in manufacturing, and while some have been recouped over the last 18 months, companies worldwide are still struggling to fill vital roles, especially with skilled labor. Add in the number of call-offs due to COVID quarantines and everyday illness, and it’s no wonder manufacturers are scrambling to meet surging demand with dwindling staff. Worse yet, the staff shortages put an additional burden on current employees who come to work, leaving them feeling overworked and burned out.
And the labor shortage is only expected to get worse, with Deloitte predicting we could see 2.1 million jobs left unfilled by 2030. That means companies must figure out how to do more with less on a long-term basis.Â
While lean strategies have been commonplace for years, it may not be enough to overcome today’s employee deficit. Companies that have been lean may have already maxed out their potential waste reduction and efficiency and are looking for new solutions.
Pairing lean principles with manufacturing automation and analytics in a new ‘Lean 4.0′ approach has become one of the best ways to overcome labor shortages. Companies that were once skeptical of automation, following the mantra of “creativity before capital†in their bid to make improvements without investing in additional equipment or technology, are now seeing automation as a necessary investment in business growth. Â
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4 Strategies To Mitigate Labor Shortages
By combining the best of both worlds, here are four ways this Lean 4.0 approach can help mitigate labor shortfalls.Â
1. Automate the low-hanging fruit
When implementing automation, start by replacing non-value added, tedious tasks with automation. This could include moving raw materials, loading process equipment or monitoring processes and performance. By using technology to automate non-value add tasks, you can free up personnel and assign them to higher-level, mission-critical work.Â
For example, one manufacturer recently automated a riveting process that used to be done manually, where the operator held the case and the latch to be riveted, pressed a button, rotated the unit, and repeated the entire process seven more times. Now, the operator simply loads a machine that rivets all eight latches into place simultaneously, completing the job much faster, increasing throughput.Â
Even better, when you eliminate these tedious tasks and move employees to more productive pursuits, it often improves worker satisfaction and safety, creating a more engaging work environment.
2. Make your equipment smart
Installing smart sensors to monitor operational conditions on equipment can give you greater insight and better control to optimize their performance. This, in turn, can reduce the need for human intervention and cut downtime, while allowing humans to be more efficient when they do get involved.Â
For example, by using sensors and AI to determine optimal operating conditions for a piece of equipment, you can then program software to make these necessary adjustments in real-time to keep it running at peak capacity, eliminating the need for human monitors.Â
You can also use sensors and AI to identify the root cause for failures and alert maintenance staff when equipment is drifting out of spec so that they can respond quickly. This proactive approach can reduce or even eliminate minor stoppages and accelerate repairs to help staff perform at maximum efficiency.
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3. Optimize quality assurance
When you’re already running on the razor’s edge with barely enough staff to fill the bare minimum production requirements, the last thing you need is a product defect or recall.Â
By installing and connecting simple GoPro cameras along the production line to quality assurance (QA) visual analysis software, the system can immediately identify any errors or faulty parts and halt production so the problem can be rectified before it becomes widespread. Next, you can establish a digital standard of work procedures to monitor task completion and alert staff to non-compliance so they can take immediate corrective action.Â
By using automated technology to stop the glitch before it becomes a problem, you can prevent production do-overs that waste staff time, money and materials.Â
4. Digitize onboarding and trainingÂ
If you are able to hire new staff, bringing them up to speed will be a time-consuming process that often requires two people, the trainer and the trainee. It’s a double-edged sword: you need trained staff but can’t spare the staff to train them.Â
With a digital standard of work in place, companies can leverage this resource to train new employees and cross-train existing personnel more efficiently. Instead of requiring a senior employee to physically demonstrate the process, digital onboarding and training allows for a quicker ramp-up to efficiency for the trainee, without consuming twice the personnel resources. Instead of training other staff, senior workers could be assigned to more complex, value-added tasks.Â
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Slow and Steady Wins
Because automation is more affordable and widely available, companies sometimes want to jump in with both feet. But a word of caution: when you’re already dealing with a labor shortage, completely disrupting your already hemmed up process by implementing new ones across the board can be a disaster. Instead, tackle automation in small, manageable stages, addressing one problem before moving on to another. This “prove and move†approach allows you to realize quicker performance results and lessen the learning curve for staff to help them stay as productive as possible during the process.Â
And one final thought: having more automation isn’t necessarily always the answer. Lean 4.0 isn’t just about implementing new technology. It’s also about adapting to a new way of doing business and making a cultural shift across the organization. It requires being ready and willing to change, looking at all business areas and seeing what you could be doing differently. It requires being creative. Without that change-ready attitude, that agility and willingness to adapt, no amount of automation will rescue you in today’s uncertain environment.Â
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