Comment
SYED SHAH – Managing Editor, Manufacturers’ Monthly
Stepping out of the comfort zone
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s we approach the mid-year mark of 2018, we should probably be making sure that those new year resolutions are being achieved. Whether it is kicking old bad habits to buying that new lawn mower, there are many reasons we decided to implement these goals. For manufacturers, it could be investing in energy-efficient air compressors to the next $100 billion order of aircraft. Whatever it is, we could find these changes too drastic or difficult – and they end up falling through or fading out. The point is, while we dream big, it can be hard to get motivated to embrace something new. For traditional manufacturing, doing things “the way they’ve always been done” feels more simple and comfortable. However, change can be good, and sometimes, it is a necessity. Let’s apply this concept to a manufacturing plant. Maybe the owners have spent so much time operating in a specific way that imagining any other method can be stressful. However, the manufacturing industry is facing
6 MAY 2018 Manufacturers’ Monthly
a slew of changes and challenges – from rapidly evolving technology through to new regulations. But, that is looking at it from just one vantage point. In the aftermath of the global financial crisis in 2008, Australia experienced a net loss of 6000 manufacturing firms, according to the latest AMGC report “Building Resilience in Australian Manufacturing”. Job losses and an immediate restructure were needed with reskilling of workers at the top of the government agenda. Australia’s automotive industry was hit the hardest with big brands moving their vehicle production lines overseas. However, the industry has been slowly recovering turning negatives to positives. A quarter-to-quarter review by the Australian Bureau of Statistics revealed that from the first quarter of 2016 to 2017, the number of manufacturing jobs increased from 874,000 to 914,000. That number would be close to the million mark by 2018. How did we address these concerns? The answer was (and still is) change.
Change keeps a manufacturer competitive. Implementing new technology improves operations, sustainability initiatives save on costs, while diagnostic analytics leads to better data gathering and analysis. The government and think tank agencies have long lobbied to local manufacturers to make these changes, because after the rough patch of transitioning from one method to another, there will be an improvement to operations. However, it would still be wise to know when and how much to implement. In February this year, I visited Dana’s assembly plant in Keysborough, Melbourne to have a look at its automotive parts assembly plant. I wanted to know what had kept it profitable all these years. From what I observed, while there were many processes that were still manual, there were lean manufacturing processes in those jobs more efficient. It was monthon-month, year-on-year reviews of its factory floor processes that kept the production flow efficient, which lead to increased output. Nick Stavrakis, managing director of Dana Australia,
told me that while it was true that new technologies like automation can help processes, it was done on a “need to” basis. At the same time, the company resisted outsourcing any of its assembly work, believing in the commitment to retain jobs locally. Of course, sometimes we have a choice in making the change, and other times changes are thrust upon us especially economic climate shifts driven by politics (think about the ongoing TPP saga). In either case, it is important to focus on not just the desired goals of your operations, but the necessary changes. Whether we choose these changes, or they choose us, the call needs to be madeeither way. Personally, I always encourage change in organisations. Refining processes, policies and purchasing systems is always a necessity to move forward. Why? Because that change keeps you competitive – the mainstay key to success in business, whether it is to improve lengthy or complicated processes, or saving money and time by increasing efficiency. Other times, change may be the only option to stay afloat during challenging times.
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