What is Industry 4.0?

Industry 4.0 is about Connectivity!

Industry 4.0 is the trend towards automation and data exchange in manufacturing technologies and processes which include cyber-physical systems (CPS), the internet of things (IoT), digital manufacturing , cloud computing, artificial intelligence to name a few.

In what ways is Industry 4.0 relevant to COVID-19?

The global supply chain is experiencing a level of disruption that has never been seen before!

Some manufacturers have ceased production completely, some have seen greatly reduced demand, while others have seen a huge increase in demand. Every manufacturer is impacted by this crisis in one way or another.

Pre-COVID-19 Crisis

Prior to the crisis, Industry 4.0 was an area of great interest to many manufacturers. It was an exciting topic with huge potential & was widely regarded as a ‘positive’ and future thinking topic.

Infinite Crisis – COVID-19 Now!

Today, many of us are focused on the here and now! Our health & that of our family, friends, and colleagues; the ability to access the food and supplies we need; our job security; the financial impact on our employers, clients and partners. Beyond that we need to consider the wider economic impact & the unknown amount of time it will take for things to return to some level of normality.

At this point; it seems insensitive and inappropriate to discuss Industry 4.0 in the way it was discussed pre-crisis. The business drivers of Industry 4.0 pre-crisis were focused on competitive advantage, cost reduction, productivity, sustainability and innovation.

Manufacturers’ Dilemma

The focus for most manufacturers now is survival first and foremost and beyond that, damage control. This raises a few challenging but pertinent questions:

• Is Industry 4.0 a topic that manufacturers should consider or think about?
• Is Industry 4.0 relevant anymore? If relevant, in what ways could it help?

The short answer is a firm YES!

Industry 4.0 is not only as relevant as it was before; rather, it is actually far more relevant moving forward! Here’s why…

The priorities for most manufacturers today fall into three distinct phases:

• Phase 1 – Survival
• Phase 2 – Recovery
• Phase 3 – Business as Usual in the new post-crisis era

Post COVID-19 Crisis

The goal for all manufacturers will be to get to Phase 3 as soon as possible and at the lowest cost. In defining the operating model for Phase 3 they will factor in lessons learned from the crisis and try to build a more resilient and agile business.

They will be asking themselves some fundamental questions such as:

• Where were the weaknesses?
• Where did they make costly decisions and why?
• What would have helped to reduce the impact?

Thinking Differently

It is plausible to think that the key finding will be that the systems & processes in place weren’t fit for purpose. It might be too soon to say for certain, but it seems clear from events unfolding that one of the major weaknesses is a lack of real-time visibility across the business. Visibility that is essential to support critical business decisions.

Most data systems currently consist of a heterogenous mix of applications & data silos. This system structure results in latency of information and a lack of a single real-time view of the business status. As soon as this system was tested beyond its normal operating conditions it failed, and this is why it is not fit for purpose.

During the crisis, production have been changing on a much higher frequency as a result of changing demands and availability of raw materials, key staff, and assets.
Post-crisis, we will reach a new normality and manufacturers will be keen to make sure this cannot happen again!

Leveraging Industry 4.0 to Combat COVID-19

Industry 4.0 has a different role from the past, where it’s role should be:

1. Early-warning about any disruptions in the supply-chain that would cause a ripple effect on operations.
2. Visibility into contingency plans in case the supply chain gets disruptive.
3. Reliance on digital manufacturing to comply with social distancing & reduction in workforce capacity & the flexibility to switch suppliers or manufactures anywhere in the world remotely.
4. Shorten the recovery period & integrate an agile system that can accommodate changes in market demand & allow manufacturers the flexibility to utilize their assets to serve other industries with minimal adjustments.

Examples of Where Industry 4.0 could be applied in the Kingdom

Here are a few examples where Industry 4.0 can add value in the Kingdom post COVID-19:

1. Real-time visibility into the availability of raw materials, finished goods, Work-In-Progress (WIP), manpower and assets.
2. Use of artificial intelligence and machine learning to constantly reassess and re-plan activities.
3. The use of mobile technology and augmented/virtual reality to enable workers to perform tasks they were not trained for more easily. This could have assisted with skills shortages due to self-isolation, social distancing, or repurposing of manufacturing.
4. The same technologies together with digital manufacturing and remote support from manufacturers would improve availability of assets.
5. Digital manufacturing could enable more remote & virtual working to help with the issue of lockdown & social distancing.
6. Digital manufacturing using either conventional precision manufacturing (Computer Numerical Control – CNC) or 3D printing of spare parts that were stuck in the supply-chain

Rather than shying away from advanced technologies, we should be thinking about how we can use them now & in the future!

Questions to Consider

Can any of these technologies be deployed now to help deal with the crisis?

In what ways can these technologies be used to help us recover more quickly and develop more resilient and robust businesses that are better equipped to deal with this level of disruption in the future?

Where to go from here?

The key to successful digital transformation is not technology; rather, it’s collaboration & breaking the silos!

We need to break-down the traditional silos both within organisations and in the external supplier ecosystem.

Synchronizing efforts is essential so that we don’t have to reinvent the wheel.

This has ever been more pressing than it is today & the fact that we can all see it happening in so many different areas before our own eyes gives a lot of hope.

If there one thing that COVID-19 has taught us is that we’re all connected; whether we’d like to admit it or not!

We are all connected…

كورونا وإدارة المخاطر

ضربت موجة كورونا العالم، تأثرت المشاريع والأعمال،  لا شك ان هذه الجائحة من المخاطر الغير محددة التي لا يمكن التنبأ بها! إلا أن تكون في منظمة الصحة العالمية 😅. بعد حدوثها كان من المنطقي أن تعيد تقييم المخاطر و تعدل الخط الزمني في مشروعك. ولكن على ما يبدو أن المنطق العام ليس عامّاً.

تفاجأت بالحديث مع احد مديري المشاريع أن الشركة التي يعمل تريد استمرار المشاريع كما أن شيئاً لم يكن. لا أعتبره طموح ولكنه مكابرة ورفض للواقع. فمقولة المقاول مسؤول لا تسري في هذه الظروف القاهرة. من الأولى تقييم الواقع واعادة تقييم المخاطر ثم دراسة الخيارات والاستمرار.

معهد إدارة المشاريع وضع معايير للتجاوب مع المخاطر، ولا ننسى ان نذكر ان المخاطر هنا تشمل المخاطر الإيجابية او الفرص. امر عليها سريعاً في هذا الجدول.

المخاطر السلبية:

مثال و شرح	التجاوب
ويكون بأحد طريقتين، الأولى قبول سلبي، كارتفاع العملة في حال شرائك اجهزة من الخارج. والأخرى قبول فاعل حيث تستطيع إعداد خطة بديلة، مثلا بالتوجه إلى السوق المحلي	القبول
كأن يكون عندك موظف ممتعض من تقييمه السنوي وهناك إمكانية انه يستقيل في منتصف المشروع. يمكنك تقليل هذه الاحتمالية بإعطائه مكافئة متوسطة لتقليل احتمال استقالته	التقليل من الضرر
وهو أن تحول المسؤولية لطرف آخر. وابسط مثال له التأمين. فللتعامل مع السرقات في موقع العمل تقوم بعمل تأمين ضد السرقة. ومنه كذالك العقود الداخلية مع شركات تنفيذية	التحويل
وهو تجنب العمل المشروع أو العمل المسبب للمخاطرة، مثل بناء المساكن في مجاري السيول	التجنب
هو رفع المشكلة لمقام أعلى في اتخاذ القرار، كممول المشروع أو القسم القانوني. مثال ذلك أنك تقوم بتمديد كيابل ألياف ضوئية تمر بجانب قرية اعترض أهلها على تمديدها لخوفهم على الصحة مثلاً . عندها قد تحتاج إلى الاستعانة بالشرطة أو رفع قضية	التصعيد

المخاطر الإيجابية:

مثال و شرح	التجاوب
فقط استمتع بالمكسب	القبول
زيادة نسبة الاستفادة من الفرصة، كالاستعانة بخبرات مستشار بنكي قبل تقديم عرض المناقصة  للبنك	التحسين
في مقابل تحويل المخاطرة السلبية. ومنه التعاون مع شركة منافسة للحصول على عقد كبير لايمكن تلبية احتياجاته وحيداً. وقد عملته الشركتين الشهيرة لوكهيد و مارتن للحصول على عقد كبير، واستمروا بعدها على الاندماج ليكونوا  اكبر شركة لعقود الدفاع	المشاركة
قد تبدو مقاربة للتحسين، لكنها مختلفة. فاستغلال الفرصة يكون ليس فقط بالنظر للمشروع ذاته ولكن كيف ممكن أن تكون مجالاً جديداًحتى خارج نطاق المشروع	استغلال
تماماً كما في المخاطرة هو رفع المشكلة لمقام أعلى في اتخاذ القرار، كأن ترى فرصة لشركتك ولكنها خارج نطاق صلاحياتك. يمكن لمسؤول أعلى الموافقة عليها	التصعيد

فعند إعادة تقييم مشروعك بعد الكورونا تذكر أن تنظر بعين مختلفة فقد تكمن هناك فوائد و فرص كامنة تستطيع الاستفادة منها

ماذا عنك؟ كيف أثرت عليك الجائحة في مشروعك؟

“Upstream” The Quest To Solve Problems Before They Happen

Ever wondered why Superman is more popular than Batman?
It’s a fact that Superman was created first in 1938, where Batman came later on in 1939, but that’s besides the point!

Could it be because Superman is the one who saves the day in broad daylight & receive recognition & admiration by many people, whereas Batman lurks in the shadows & tries to prevent crime from ever happening in the first place in stealth mode?

Or is it our perception to call Superman to putout fires (Downstream thinking – Superman)?

Or is it our desperation that Batman has done his job watching over the city in case something happens (Upstream thinking – Batman)?

So what’s the difference between upstream & downstream thinking? Is one better than the other?

Downstream thinking deals with problems after they’ve occurred & the efforts are narrow, fast, and tangible.

Upstream thinking deals with problems before they occur & the efforts are broader, slower, and hazier (but when it works; it really works!)

So often in life, we get stuck in a cycle of response of putting out fires! We stay downstream, handling one problem after another, but we never make our way upstream to fix the systems that caused the problems to occurs in the first place. Cops chase robbers, and doctors treat patients with chronic diseases, and call-center reps address customer complaints. But crime and chronic disease and customer complaints are preventable! So why do our efforts skew so heavily toward reaction rather than prevention?

Attributes of Downstream Thinking – Superman Approach

• Reactive response
• Easy to see
• Easy to measure
• Think in isolation

Attributes of Upstream Thinking – Batman Approach

• Proactive response
• Can’t see the impact
• Required an understanding of the purpose
• System thinking

There are 3 barriers to upstream thinking

1. Problem Blinders
(If we can’s see problems, we can’t solve them)

• The belief that negative outcomes are inevitable
• Accepting the status quo
• Don’t question things
• Focus on doing instead of asking

2. Lack of Ownership
(Take a step back to see the bigger picture)

• It’s not my problem
• Conflict of interest (personal interest over that of the organization)
• Psychological standing on challenging the status quo
• Complacency & being comfortable with things the way the are

3. Tunneling
(Stop & observe)

• Little problems mask bigger ones
• Revert to quick-fixes
• Using scarce resources as an excuse
• Stuck or falling in love with the cycle

Here are 7 questions that upstream visionary leaders should ask:

1. How to unite the right people?

• Have a clear vision & articulated with a sense of purpose
• Surround the problem
• Identify clear roles & responsibilities
• Meet the team briefly & periodically
• Use a structured approach

2. How will the system change?

• Systems are the source of information & should be questioned
• Change/modify the environment to accommodate for productive change
• Spark courage by tapping into feeling & emotions about the problem’s effects/impact
• Empower & motivate people by aligning their goals with that of where the organization would like to be
• Change takes time, so patience is required

3. Where to find the point of leverage?

• Get closer to the source of the problem to identify where the money could be saved
• Identify risks & opportunity factors
• Perform a cost/benefit analysis
• Take it step-by-step using a phased-based approach to integrate new strategies into the existing system
• Accept failure as a learning process towards success (fail fast & early to learn how to develop & improve)

4. How to get early-warnings of the problems?

• Evaluate the environment & deploy “sensors”
• Look for predictors
• Estimate the time required to act
• Become aware of false positives to avoid derailing you from your tracks
• Understand the consequences of your actions & implications

6. How to avoid doing harm?

• See the whole system & look beyond the immediate
• Partial & whole convergence is system/approach in gradual stages of adoption
• Develop a feedback loop to improve the system & adopt to changes in the market
• Develop a continuous-Improvment system & culture

7. Who will pay for what does not happen?

• Pay money to make money, so align incentives with that of the organization
• Identify the source of cost problems by assessing it from different prospective
• Identify who can prevent the problem from reoccurring
• Understand the proper way to incentivise
• Incorporate small shift in the existing system to accommodate the required change in the system

There is a delicate balance between upstream & downstream approaches & both are needed!

If you want to be a strategic leader, ideally, you would want to put 30% of your efforts in downstream response & 70% in upstream prevention

Takeaways
To become a successful Upstream Leader, you must:

1. Detect problems early by putting-out sensors
2. Target leverage points in complex systems
3. Find reliable ways to measure success (try to include financial metrics)
4. Pioneer new ways of working together & integrate success between different departments
5. Embed collective success for different departments by streamlining their efforts

Use Upstream & Upstream approaches to solving problems in combination!

BTW, the Superman & Batman analogy was not in the book 🤣🤣🤣. It was my twist on the story to make it easier for people to understand 😇.

تربص بموظفيك وهم يحسنون صنعاً

في هذه الأيام الصعبة حيث الكل منعزل في بيته ويقوم بعمله عن بُعد قد نحتاج لهذه النصيحة اكثر من أي وقت مضى. خصوصاً لذلك المدير “القفّيط” اللي يآخذ حضور وغياب عن بُعد 😅. هذه المقولة قديمة ومترسخة في ذهني. ورأيت لها تأثيراً سحرياً فاق توقعاتي! في خضم العمل قد ننسى أن نقول كلمات لطيفة، يكون لها أثر عميق. التقدير من اهم أسباب رضاء الموظفين عن أعمالهم.

كُلّفت بمهمة إادارة الأعطال القائمة للشبكة، حيث انها بدأت بالتراكم و الشركة المتعاقدة لم تكن تقوم بعمل جيد. جاء هذا التكليف مواكباً لموظف جديد من الشركة المتعاقدة يستبدل السابق الذي كان ممن يزيدون الطين بلّه 🙄. عملت مع الجديد سوياً وضعنا اجراءات و رتبنا الأولويات، وانطلق هو في الميدان. لاحظت اجتهاده وبدأت فعلاً القائمة الطويل للأعطال بالتناقص. من الصعب عند ادارة اكثر من أربعة الآف برج أن يمر يوم بدون اعطال، ولكني كنت انتظر ذلك اليوم حتى كان. أرسلت له إيميل، و رصّيت مدرائه في الشركة المتعاقدة واداراتي في السي سي. حقيقة لم اكن انتظر رداً من احد! في طريقي لغرفة القهوة مررت بمكتبه، واذا به يقوم ويحضنّي 😳. كشخص من جيل الثمانينات أعيش التصحر العاطفي 😂 فاجأني الموقف. قال لي انه كان يعمل جاهداً الفترة السابقة وكان محتاج لاجازة قصيرة ومديره غير موافق للشد بين الشركتين. بعد الإيميل وافق مديره على اجازته، وكانت النتيجة أن الرجل من كثر حماسه يتابع العمل من الاجازة 😂. اهدى من كدا يا وحش 😝.

عند إرسال رسالة للإشادة بأحد او فريق تقول النصيحة أن تذكر عملاً محدداً مبتعداً عن التعميم العائم. صف الموقف ثم اشكر. مثال: عند ادارة أكثر من أربعة آلاف برج من الصعب المرور بيوم هادئ، اليوم عدد الأعطال في القائمة صفر، وذلك بفضل العمل المنظم والدؤوب من المهندس محمد. شكراً لك، اجتهادك صنع الفرق.

خبرني عن قصتك، ماهي طريقتك في تقدير فريق العمل؟