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Tuesday, May 14, 2019

Cornerstones of digital transformation - Mckinsey


One global designer and maker of electronics products demonstrated a sound approach to creating road maps when it plotted the transformation of its manufacturing operations, as part of a broader effort to continue leading the industry on cost, quality, and lead time. The leader of each major unit in its value chain—inbound supply and logistics, circuit-board fabrication, assembly, and outbound logistics—began by assembling a cross-functional team of people to analyze the unit’s business processes from end to end, paying close attention to customer or user pain points and sources of waste.

Next, the team articulated potential improvements (such as greater output from circuit-board fabrication, lower assembly labor costs, and shorter production lead times) and identified suitable technology applications. In all, the teams defined more than 100 applications. Only 32 of those were selected for development, based on the maturity of the underlying technologies and the potential returns on investment.

Unit leaders grouped the 32 solutions into three waves to roll out over two years, starting with low-cost options. In inbound supply and logistics, for example, the first wave of solutions focused on using robots and AI to automate in-plant logistics or the movement of materials and components within factories. The second wave called for automating warehouses in a similar fashion, and the third wave anticipated the use of emerging technologies, such as augmented reality, that would improve the accuracy and efficiency of manual labor. Each unit prepared its road map independently, making connections with other units where necessary. This way, each unit could focus on building and implementing the solutions it needed to transform its area of operations.

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