Boosting Manufacturing Capacity Without Hiring More People - It’s Easier Than You Might Think
Recently, I had the chance to host Ishan Galapathy on the Manufacturing Tech Australia podcast. Ishan, a well-respected figure in the industry, shed light on the realities of technology investments in the manufacturing sector and how businesses can better prime themselves for these pivotal changes.
Ishan holds an authentic and sometimes, stark view of the state of technological investments within manufacturing. As he sees it, one of the cardinal missteps businesses make is viewing technology as a cure-all, a silver bullet that magically resolves all inefficiencies. Many also wear rose-coloured glasses when it comes to ROI, leading to overly optimistic expectations.
Myth-Busting the "Silver Bullet"
Ishan and I agree that many businesses tend to significantly underestimate the effort necessary for effective technology implementation and that without initial refinement and streamlining of processes prior to digitisation, the results will be disappointing. After all a poorly constructed manual process, once digitised, often just scales up the inadequacies - do you really want to amplify waste?
So how do leaders ensure their businesses are ready for a digital transformation? Ishan proposes a simple, introspective approach. He invites leaders to ask these fundamental questions:
Do you know what your top three waste products are?
Do you know your top performing products from a manufacturing efficiency perspective?
Do you know what the biggest downtime causes are?
If these questions leave you stumped, don't worry, you're not alone. However, it may be a sign that you need to reevaluate your readiness for a digital transformation.
Unlocking Hidden Capacity
Ishan asserts there's a colossal amount of untapped capacity within our manufacturing businesses. It's not just based on hearsay either. The Australian Treasury’s 2021 Intergenerational report* lends credence to this claim, showing that "over the past four to five decades, our overall output has quadrupled. But the actual labour productivity is trailing below a 30 year average."
In a labour-limited market, Ishan is convinced that an investment in frontline leadership training can unveil capacity you never knew existed.
Empowering the Frontline
At the heart of Ishan's philosophy is the belief that involving shop floor personnel and eliminating barriers can boost productivity, minimise waste, and bolster profitability. He emphasises that frontline leaders need basic leadership training to effectively manage their teams.
The Power of Simplicity
This might seem like a lot of work but Ishan insists that it’s not complex or difficult. Bringing to the table decades of industry experience, with the past 8 years dedicated to being an independent productivity expert, Ishan has a unique perspective. He asserts, "These concepts and processes aren't complicated. I think we naturally have a tendency to somehow make these things overly complex and complicated. So I tend to simplify everything and say, look, this is easy, simple, but it's effective."
So, what does investing in your frontline leaders entail?
Solving the Right Problems - Choose a methodology and stick to it. The magic lies not in the tool itself, but in using it effectively.
Building In-house Capability - Equip your team to effectively solve problems using a structured approach. This includes sessions on improving efficiency, reducing downtime, reducing waste, and improving overtime.
Fostering Effective Communication - Regular huddles and pulse checks should be a staple. Digital dashboards can be a handy tool, but remember to start small and focus on the process. Always stay ahead by reviewing the past 24 hours and planning for the next.
For those seeking to delve deeper, Ishan’s latest book is titled "ADVANCE: 12 essential elements to supercharge productivity and profitability". To get a taste of the 4 principal paradigms and 12 essential elements required to supercharge productivity and profitability, you can download a free 32-page introductory overview at https://ishangalapathy.com/books/advance/
If you're a manufacturing leader wanting to unlock the untapped capacity in your business, Ishan's book provides a clear and actionable roadmap.
And if you’re ready to digitise those streamlines processes, give me a shout!
* The Intergenerational report is produced by the Australian treasury to assesses the long-term sustainability of current Government policies and shows projections of economic growth constructed from trends in population, labour force participation and productivity. Productivity refers to the average output produced per hour worked.