Issue link: https://iconnect007.uberflip.com/i/1284035
42 SMT007 MAGAZINE I SEPTEMBER 2020 being simulated for maximum throughput— are operating 10, 20, or even 40% away from a perfect balance. The simulation assumed the outcome would be one way, but their own real data showed it was entirely another— one head dropping more parts than expected, and another far newer or far older than aver- age. The result? Tens of millions of dollars of untapped capacity that had nothing to do with the 1% scrap. Instead, the first question to ask is, "Are you sure you're looking at the right thing?" What's the real value of that 1%? As shown in the previous two examples, the real value of that 1% is the untapped efficiency and utilization that was left behind in the pur- suit of it, sometimes for decades. Fortunately, Industry 4.0 brings the tools and processes needed to capture all that value that is now easily within their reach. Picture an iceberg. There's no way to know the real size of it without measuring under the surface, and there's no way to measure an ice- berg without specialized instruments. All mod- ern seacraft utilize these specialized instru- ments. Without them, seacraft are forced to operate by using outdated methods of naviga- tion. This means they ultimately make their best guess as to where they can't travel and then navigate around it. For those choosing to be extra cautious, they keep even farther away, just to be safe, because they lack the special- ized instruments to see all the safe places they could navigate. Likewise, when manufacturers tightly focus only on the tip, or product quality, they miss the giant mass of inefficiency and utilization that sits just below the surface. This is exactly what Industry 4.0 is all about—using tools now at our disposal to reset assumptions and achieve truly zero-waste, AI-predictive manu- facturing. Before new technology can be adopted, how- ever, every manufacturer looking needs to first ask two questions: 1. What is in my data? Where can I use machines, advanced analytics, or AI for it to do really well? 2. How is my organization willing to adapt? Are we ready for a 50/50 partnership between humans and machines? A tremendous opportunity lies at this inter- section—what the tools are ready to do well and what the humans are ready to step up and do well. Step back and consider an analogy. Imagine that, instead of running a factory, you run an accounting firm. Your people use calculators to crunch numbers, submit reports to custom- ers, and make a revenue for your firm. Imag- ine, further, that your accountants use the cal- culators for addition and subtraction, but not for square root functions. Why? Because your older calculators didn't have the square root function, so your humans are still doing it by hand. Personally, I don't think I've ever done the square root of 2 by hand. If you try to hire me to do it, I think I'd say no. I wouldn't want such a boring job and, if I took it, I would undoubtedly make an unacceptable level of mistakes. Imagine that an accounting firm is actually operating this way today when it is cheap to buy modern calculators that have a square root function and can immediately calculate it, never making a mistake. They just need to invest in the calculators and teach their people how to operate the square root function. And yet many factories are operating in a similar way. Compare two factories to see the differ- ence. In Factory A, a team of seasoned veteran experts is sent through the factory for about 12 months. They pick the right new sensors and hardware to increase visibility. They perform The first question to ask is, "Are you sure you're looking at the right thing?" What's the real value of that 1%?