A new phase in the industrial revolution is emerging upon us, and with it, the focus on interconnectivity, automation, machine learning, and real-time data is increasing. To walk in hand with these changing environments a complete transformation of the entire production and management system has become a necessity. In the logistics industry, it is becoming increasingly important to optimize transport routes, make full use of storage capacity, reduce wastage of resources and build a predefined plan keeping in mind the implementation of the human aspect within its system.
The complex nature of these cited changes and their impact on the manufacturing industry at all levels often result in a lack of competencies, technology, and increasing uncertainty when it comes to building a hassle-free environment. Furthermore, adapting to effortless manufacturing systems not only involves the knowledge and skills to use current technological solutions, but it also involves the preparation and guidance of employees and the workforce to adapt to the changes.
Here are a few approaches industries can adapt for an effortless manufacturing system in their workplace:
1 Take a generic people survey from diverse backgrounds:
A well-thought-out survey can help industries discover employee, workforce, and customer insights fast and efficiently. These insights can then be used by management to improve the work environment. Collecting data can help to analyze and understand personas, work behavior, plant goals and processes better. Understanding those who work in these environments can help provide the right environment for them to be productive, thereby benefiting all in the process. It’s intriguing how people from diverse backgrounds can give varied high-value inputs and perspectives.
When done correctly, surveys can help to reduce new product risks by providing insight into employee impressions of the product and delivery flow and exposing their motivations for contributing to the development of the logistic solution in the way it is used. It can also provide what the company feels are operational insights, which can then be compared to what the company realizes are operational preferences and demands. As a result, management can ensure that their logistics handling understanding and performance are all on the same page.
An earlier survey was conducted in December 2016 on Supply Chain Management Customer Satisfaction in small to medium enterprises. It investigated the relationship between customer satisfaction, supply chain management practices, and three input factors; namely, product quality, flexibility, and product variety in small to medium enterprises. The survey was conducted on 131 managers in small to medium enterprises based in Gauteng province, South Africa. The conclusion of the study was as follows “The purpose of this study was to investigate the relationship between customer satisfaction, SCM practices and quality, variety and flexibility amongst SMEs in South Africa. Two input factors; namely, product quality and flexibility emerged as significant predictors of the ease of adoption of SCM practices in SMEs. However, product variety had no significant relationship with the adoption of SCM practices. In addition, SCM practices significantly predicted customer satisfaction. It can be concluded then that there is a positive and significant relationship between customer satisfaction and two factors; specifically, product quality and flexibility, but the relationship is mediated by the embracing and implementation of SCM practices within SMEs.
Several recommendations can be put forward, based on the conclusions drawn from the study. First, it has to be acknowledged that the relationship between customer satisfaction, SCM practices and the three input factors as examined in this study is of fundamental importance to SMEs. In light of this, it is critical that SMEs be educated regarding the importance of these factors. Second, SMEs should consider forming strategic alliances and outsource suppliers to form part of the production process in order to realise and improve on the organisation’s core competencies such as product quality as well as flexibility. Finally, it can be recommended that a strategic training programme aimed at assisting SMEs in correlating the supply chain objectives with the business strategies outlined in the study should be implemented. This should also assist in mitigating any forthcoming supply chain challenges.
For example, if challenges such as lack of skills among SMEs, high cost of information technology and financial constraints are addressed, SMEs will have greater agility in handling other surprising challenges such as greater demands from order givers, competition in domestic markets, increased global competition, and organisational transformation, higher customer expectations of services and products and increased environmental concerns. SMEs may continue to experience challenges in implementing SCM practices if they are not managed by properly qualified individuals”
Research data link: https://sciendo.com/pdf/10.1515/subboec-2016-0004
It is important to conduct surveys on operational efficiency, logistics handling, and management, personal safety, training and skill enhancement, etc. To cover these factors and more, surveys should not be limited to a single format, a mix of different inputs, such as multiple-choice questions, questions that need people to enter in their answers, and a rating system (rating 0-10) should be adapted to ensure collection of more quantitative data.
2 Start collecting data at each point of handling:
Measurement of accuracy at different transit points of the warehouse requires systems that analyze both human and technological efforts/tasks. There are various indicators that conclude the inefficiency of a warehouse or a plant, researchers have explored warehouse performance evaluation formats in various different lines. The performance measurement is commonly assessed by the use of indicators, present in the majority of works. There are various indicators and measurements used by different researchers to measure warehouse performance, for example, Saetta et al. (Professor at Department of Engineering University of Perugia, Italy) measures customer satisfaction as “the percentage of orders on time”. According to Voss et al. (Associate Professor, University of Central Arkansas, USA) “the number of customer complaints by a number of orders” and measure “the percentage of orders on time” is the “on-time delivery” indicator. Basically, breaking all tasks down to the smallest unit tasks to measure each’s impact on the overall performance of the resources.
Typical warehouse activities include putting items away, moving items inside or between warehouses, and picking items for assembly, production, or shipment. Warehouses normally have many labor-intensive activities, executives are concerned about labor performance. Assembling items for sale or inventory may also be considered warehouse activities, In large warehouses, these different handling tasks can be separated by departments and the integration managed by a directed workflow.
3 Stakeholders in the Process:
Different Stakeholders in the industry have their own goals and objectives, that make important decisions about the organization, and are connected to a wider network of people who are, in turn, affected by changes and decisions in the industry. Engaging stakeholders in an organization has many benefits, for example, by getting plant managers, workers, vendors, logisticians, transporters, consultants who are involved in the different small and big processes like replacement of machinery, long-term plans for the company, managing teams of shippers and other operational processes.
There are several types of stakeholders but they can be typically categorized into internal or external stakeholders.
Internal stakeholders work within the company and include people like employees, the workforce, supervisors, managers, and directors.
External stakeholders do not work within the company but have an impact on its logistics performance, they are investors, customers, consultants, client representatives, labor unions, government, etc.
Effective communication with the identified stakeholders is important. It involves an open dialogue that helps in making more informed decisions, manage stakeholder expectations,s and improves the performance of the company. The first step is to successfully identify the target stakeholders and use the correct tone and style appropriate for the audience.
For example, the way you communicate with your employees will likely be very different from the manner in which you communicate with your customers. The next step is to establish what your goals are and create a clear plan for how you will achieve those goals. It is important to actively listen to the views and concerns of your stakeholders and make sure you acknowledge and address those concerns. Transparency is very important to assure that the stakeholders are well-informed. Some important internal stakeholders are Plant Managers, Admin, Security Guards, Engineers, Client representatives, On-ground Transportation people, Cleaners, Customer Care, Safety, Quality check and more…
4 Change of Attitudes through Change Management:
The roles of warehouse employees have changed drastically because of the adaptation of new and hassle-free techniques in the industry. For example, the warehouse workforce may no longer need to spend as much time moving, picking, or lifting goods. Instead, the job could be redesigned to include responsibilities such as health, safety, and environmental compliance, inventory optimization, and oversight of specialized cargo such as perishables. These changes demand logistics training, for employees to take advantage of job redesign. Employees should be taught technology management to augment their productivity.
A key issue is an organization’s readiness to change related to futuristic manufacturing. It not only entails knowledge and skills in the use of appropriate technical solutions but also staff preparation and counseling through significant shifts. Change is well recognized to elicit opposition from employees.
Preparing them, presenting, and explaining the new concepts would allow the negative consequences of the changes to be eliminated, especially because implementing contemporary solutions and technology is a tremendous opportunity and even a necessity.
As an example: A research survey was conducted on the analysis of skilled workforce effect on the logistics performance index on an Indian logistics service provider. The purpose of the research was to study the impact of the development of a skilled workforce through investment in training, welfare, working conditions, and wages on the logistics performance index. It was seen that with training provided to 36% of employees of the company, the retention rate improved by 58 % and the score of recruitment reached 4.4 out of five. The results show that investment done in human resources in the Indian logistics sector will help the logistics service providers and their customers in terms of improved logistics performance and higher profits and will also improve the image attractiveness of the Indian logistics industry.
Continued in Part 2..
