Using Technology to Improve Productivity and Fill Talent Gaps

Our industry is facing a new reality: We may never have enough people in manufacturing to fill our current talent gaps and meet future demands. Another reality is that manufacturing is no longer about who is making the cheapest parts, components, and products, but who is making them the smartest. Quality, materials, timely delivery, and collaboration matter greatly in the current supply chain.

The good news is companies are leveraging advanced manufacturing technology to address these realities. Using a sports analogy, advanced manufacturing can help you play defense and offense at the same time. You can invest in technology to address pain points in your operation by automating tasks that few want to do, such as welding, material cutting, and machine tending. You can also invest in technology to grow your capabilities and production capacity.

Investing in technology is a force multiplier for your company and people. You are providing your people with higher paying, more enjoyable work with clear career paths as you benefit from higher retention rates while improving efficiency and unlocking capacity.

Let’s look at a scenario in North Dakota. The state has the nation’s lowest unemployment rate, but manufacturers and other companies lack the workforce to meet growing customer demand, enable expansion, or increase productivity. The North Dakota Department of Commerce recently launched a $5 million “Automate ND Grant Program” in response to its workforce shortage. Impact Dakota, which is part of the MEP National Network™, helped 46 manufacturers conduct a feasibility study as part of the application for a grant to invest in automation.

This article will look at how several North Dakota-based manufacturers are using grants to leverage technology to improve productivity and fill talent gaps. We’ll also look at how manufacturers can approach investing in technology solutions, including readiness assessments and value stream mapping.

New Approaches for Leveraging Technology in North Dakota Manufacturing

The Automate ND grant program funded 18 projects across the state. The most common automation solution was robotic welding, which is not surprising given how hard it is to find and retain welders to do difficult and repetitive tasks. Robots can perform precise welds with consistent quality, reducing defects and rework, and can operate 24/7. In many cases, robotic welding can be used for repetitive tasks and allow a welding specialist to focus on custom and higher-value work.

Five of the grants included robotic welding. One went to Mid-Mach in Jamestown for three robotic welding cells. Mid-Mach focuses on metal fabrication for the energy and agriculture sectors. Some of this grant funding focused on streamlining operations with material handling, parts retrieval and storage, and autonomous carts. One grant was for automating wash bays, and another was for cleaning equipment.

Additional grants went to more value-add processes that are key to core operations. The breadth of these grants shows some of the many ways smaller manufacturers are using technology, including:

● A robotic brake press for Malach USA in Valley City, which specializes in metal bending and precision machining.

● An autonomous linear saw, jigging, and laser system for Northland Truss Systems in Abercrombie, which manufactures wood truss systems.

● The automation of milling, liquefaction, and fermentation stages of ethanol production for Blue Flint Ethanol in Underwood.

● The Dairy Dozen in Milner, which is undergoing significant facility and process improvements. It is using its grant for a milking robot, an automated manure collector, and for an automated feed pusher.

Lessons Learned From the Two Main Camps of Technology Adoption

One of the key benefits of Automate ND was that it was an opportunity for small manufacturers to explore automation, even if they had been hesitant to invest in the past. In fact, our manufacturing clients here in North Dakota generally fall into one of two distinct camps:

● Shops with numerous vacancies that have difficulty attracting talent: If a manufacturer is turning down work because “they don’t have enough people,” it is often a symptom that they have been slow to adopt new technology. Even with recruiting tactics such as sign-on bonuses and raises, they will never have enough people to do that work.

● Early adopters of technology embracing change to streamline operations: These manufacturers are thriving and taking on more clients. They are investing in new technology and upskilling their existing people, which leads to higher job satisfaction and better retention rates. They are innovating to do more work with the same team as they grow their capabilities and production.

What are the lessons learned? People and organizations are often resistant to change. However, making changes such as technology adoption creates new paths to a sustainable future — for new business growth, upskilling existing people, and increasing retention.

Why a Readiness Assessment Is the Key Starting Point

As mentioned, Impact Dakota helped 46 manufacturers with a technology readiness assessment as part of the Impact ND applications. The Impact Dakota assessment identifies a manufacturer’s overall level of readiness by rating 22 areas from beginner to expert. The areas are divided into four main areas of focus:

Business Operations and Strategy
Customer Focus and Logistics (outward concerns)
Supply Chain and Logistics (inward concerns)
Manufacturing Operations

Let’s look at two examples of how readiness is measured. The first is in the Manufacturing Operations category of “equipment control,” which is essentially the degree of automation in your shop. Ratings for this category are based on:

● Level 1: Machines are manually operated with 100 percent local control.

● Level 2: Machines are partially automated, often through the use of PLCs.

● Level 3: PLC-based control of equipment: Workcells are mostly or completely automated and may be operated from a centralized control room.

● Level 4: Processes run with little operator input. Control is autonomous or partially autonomous and remotely accessible.

Here is another automation example under the Customer Focus and Logistics category for customer integration and visibility:

● Level 1: Your customer has no visibility into your systems.

● Level 2: You provide minimal integration with periodic updates into order status and supply.

● Level 3: There is integration with the customer but the automation only provides minimal updates.

● Level 4: You have completely embedded systems with the customer's ERP, providing visibility to production, MES and fleet data, with cybersecurity protocols in place. Customers have complete visibility of where their products are and they can modify plans per your system outputs.

As you can see from these examples, the assessment not only provides a snapshot of your current state, it also provides guideposts for what is required to improve your technology.

How to Incorporate Readiness Into Technology Adoption

Another powerful tool for technology adoption is operational value stream mapping to identify pain points and opportunities for efficiency. Keep in mind that the value-add steps customers are paying for you to do versus the cost of doing business. Be sure to have KPIs in place to track performance, revenue, and margin.

You also want to map your ideal state to identify opportunities to add production capacity or new capabilities. Your ideal future state map might include:

● Process Flow: Map out the ideal sequence of value-added steps, minimizing non-value-added activities.

● Time: Indicate the target cycle time for each step.

● Information Flow: Show how information flows between steps and decision points.

● Visual Controls: Implement visual management tools to improve communication and problem-solving.

At this point, you will be able to identify improvement opportunities, such as:

● Waste Reduction: This could be in the form of overproduction, waiting, transportation, overprocessing, inventory, motion, and defects.

● Cycle Time Reduction: Identify bottlenecks and possible fixes.

● Quality Improvement: Implement quality control measures to prevent defects and rework.

● Flexibility Enhancement: Design a flexible system that can quickly adapt to changes.

Your Local MEP Center Can Help Transform Your Operation

Advanced manufacturing technology is a true force multiplier that can help even the smallest manufacturer improve productivity, fill talent gaps, and transform operations. Contact your local MEP Center to speak with a technology expert who can help you get started.

About the Author

Jodie Mjoen, CEO/President, Impact Dakota

Jodie leads Impact Dakota, which is part of the MEP National Network. He plays a leading role in developing strategy for modernizing North Dakota's manufacturing base and leveraging technology to meet the needs of small manufacturers. He has more than 25 years of experience in manufacturing in the private sector, specializing in quality management and lean manufacturing.