WEBVTT 1 00:00:00.269 --> 00:00:03.269 (upbeat rock music) 2 00:00:10.950 --> 00:00:13.830 Digitizing operations is more than a nice-to-have 3 00:00:13.830 --> 00:00:15.240 for manufacturing companies; 4 00:00:15.240 --> 00:00:17.460 it's an imperative, and they know it. 5 00:00:17.460 --> 00:00:19.860 More than 80% of them are actively investing 6 00:00:19.860 --> 00:00:23.720 in digital operations, according to a recent BCG survey. 7 00:00:23.720 --> 00:00:26.830 Digitization, when done right and at scale, 8 00:00:26.830 --> 00:00:28.310 yields impressive upsides, 9 00:00:28.310 --> 00:00:31.130 including a 10% to 20% reduction in production 10 00:00:31.130 --> 00:00:32.460 and supply chain costs. 11 00:00:32.460 --> 00:00:34.950 As our casework and research has made clear, 12 00:00:34.950 --> 00:00:37.920 a wide variety of success factors separate the leaders 13 00:00:37.920 --> 00:00:39.080 from the laggards. 14 00:00:39.080 --> 00:00:41.600 Ford stands out among the leaders. 15 00:00:41.600 --> 00:00:44.220 To find out what companies in all manufacturing sectors 16 00:00:44.220 --> 00:00:46.120 can learn from Ford’s success, 17 00:00:46.120 --> 00:00:48.470 we've come to its Advanced Manufacturing Center 18 00:00:48.470 --> 00:00:50.260 here in Redford, Michigan. 19 00:00:50.260 --> 00:00:53.410 Ford has invested in the center to accelerate deployment 20 00:00:53.410 --> 00:00:55.530 of digital operations use cases 21 00:00:55.530 --> 00:00:57.263 across its manufacturing network. 22 00:01:02.300 --> 00:01:04.810 Hi Mike. When you think about Ford's ambition 23 00:01:04.810 --> 00:01:06.380 for digital operations, 24 00:01:06.380 --> 00:01:08.400 first, how would you describe that? 25 00:01:08.400 --> 00:01:11.018 and then second, what do you see as the major challenges 26 00:01:11.018 --> 00:01:12.970 that you faced along the way? 27 00:01:12.970 --> 00:01:16.250 Our vision is to really leverage access 28 00:01:16.250 --> 00:01:19.140 to not just digitization of our manufacturing process 29 00:01:19.140 --> 00:01:21.710 but also the product realization, 30 00:01:21.710 --> 00:01:23.320 product development process, 31 00:01:23.320 --> 00:01:25.210 how our products are performing in the field, 32 00:01:25.210 --> 00:01:29.170 what our customers are interested in, and incorporating that into 33 00:01:29.170 --> 00:01:31.300 a really intelligent manufacturing process, 34 00:01:31.300 --> 00:01:33.440 one that really delivers the greatest value 35 00:01:33.440 --> 00:01:34.670 to our customers. 36 00:01:34.670 --> 00:01:37.490 This center, and your team specifically, 37 00:01:37.490 --> 00:01:40.050 what is your role in trying to overcome 38 00:01:40.050 --> 00:01:42.160 some of those challenges and speed up Ford 39 00:01:42.160 --> 00:01:43.130 along this journey? 40 00:01:43.130 --> 00:01:47.290 We have really a few principle priorities 41 00:01:47.290 --> 00:01:48.650 around data analytics 42 00:01:48.650 --> 00:01:52.960 and digital factory, digital engineering methods, 43 00:01:52.960 --> 00:01:55.940 process innovation, and certainly additive manufacturing. 44 00:01:55.940 --> 00:01:57.710 So we have people that are leading 45 00:01:57.710 --> 00:02:00.296 each of those five pillars. 46 00:02:00.296 --> 00:02:02.690 Where we're really getting the benefit is the fact 47 00:02:02.690 --> 00:02:05.416 that we're working across many of those priorities. 48 00:02:05.416 --> 00:02:06.417 Right. 49 00:02:06.417 --> 00:02:08.140 And the fact that we’re co-located in a place 50 00:02:09.162 --> 00:02:10.450 where we can really innovate across 51 00:02:10.450 --> 00:02:12.810 and incorporate the technologies 52 00:02:12.810 --> 00:02:14.900 at the right level and the right places 53 00:02:14.900 --> 00:02:17.600 to create really innovative, practical solutions. 54 00:02:17.600 --> 00:02:18.433 Yeah. 55 00:02:18.433 --> 00:02:20.120 I think that’s the real advantage 56 00:02:20.120 --> 00:02:22.218 of the Advanced Manufacturing Center 57 00:02:22.218 --> 00:02:23.051 and the people that are here. 58 00:02:24.360 --> 00:02:26.560 Structure and facilitation are essential. 59 00:02:26.560 --> 00:02:29.080 Many companies mistakenly conduct a broad survey 60 00:02:29.080 --> 00:02:31.360 to solicit ideas from operations employees 61 00:02:31.360 --> 00:02:35.530 or follow an ad hoc, first-come-first-served process. 62 00:02:35.530 --> 00:02:38.760 The problem is, without proper guidance about the context, 63 00:02:38.760 --> 00:02:40.390 employees often identify projects 64 00:02:40.390 --> 00:02:42.930 that are too narrow in scope or not scalable. 65 00:02:42.930 --> 00:02:45.230 How do you get your ideas? 66 00:02:45.230 --> 00:02:47.530 There's tons of needs and pain points 67 00:02:47.530 --> 00:02:49.550 and noise really from the organization, 68 00:02:49.550 --> 00:02:52.880 but how do you prioritize the places where you focus? 69 00:02:52.880 --> 00:02:55.160 They really come from three places. 70 00:02:55.160 --> 00:02:57.250 One is whatever the product demands are. 71 00:02:57.250 --> 00:02:59.930 So if you have areas in your current production processes 72 00:02:59.930 --> 00:03:03.660 where you're not meeting the customer requirements, 73 00:03:03.660 --> 00:03:06.970 those are obvious areas of focus. 74 00:03:06.970 --> 00:03:09.580 Sometimes in our product development plans, 75 00:03:09.580 --> 00:03:14.330 the product requirements for a new model may require us to 76 00:03:15.280 --> 00:03:18.878 innovate a process to meet some of the requirements. 77 00:03:18.878 --> 00:03:21.301 From manufacturing pain points, 78 00:03:21.301 --> 00:03:23.380 when we look across our operations, 79 00:03:23.380 --> 00:03:27.230 Ford has a very mature process for measuring performance 80 00:03:27.230 --> 00:03:29.290 across many indices. 81 00:03:29.290 --> 00:03:31.370 And so it's pretty easy for us to stratify 82 00:03:31.370 --> 00:03:33.270 our current process performance, 83 00:03:33.270 --> 00:03:35.480 recognize plants that are struggling 84 00:03:35.480 --> 00:03:40.480 and that might need help with a solution to close a gap to best end. 85 00:03:43.226 --> 00:03:48.226 Then the third source is we do a lot of technology scouting 86 00:03:49.570 --> 00:03:53.210 and looking for technology that maybe hadn't been 87 00:03:53.210 --> 00:03:56.100 previously considered as automotive application 88 00:03:56.100 --> 00:03:59.730 and evaluating where it may fit. 89 00:03:59.730 --> 00:04:02.790 The Center provides a unique physical space for testing, 90 00:04:02.790 --> 00:04:05.840 as well as access to specific technical skill sets 91 00:04:05.840 --> 00:04:08.190 that can be best utilized centrally. 92 00:04:08.190 --> 00:04:10.850 So how have you thought about building your team 93 00:04:10.850 --> 00:04:14.490 and structuring your team to really help Ford 94 00:04:14.490 --> 00:04:15.323 along this journey? 95 00:04:15.323 --> 00:04:19.509 So we made sure that the organization was small enough 96 00:04:19.509 --> 00:04:24.509 to be nimble but large enough to have significant impact. 97 00:04:25.950 --> 00:04:29.110 Our plan going forward, my plan going forward is to do 98 00:04:29.110 --> 00:04:32.450 some level of turnover where, as the technology 99 00:04:32.450 --> 00:04:33.763 continues to move, 100 00:04:34.750 --> 00:04:37.650 and we deliver solutions into the operations 101 00:04:37.650 --> 00:04:39.730 or into product programs, 102 00:04:39.730 --> 00:04:42.165 I want to move some of the people from this organization 103 00:04:42.165 --> 00:04:45.410 into those product programs and into those facilities. 104 00:04:45.410 --> 00:04:48.550 I want to extract either people from the operations 105 00:04:48.550 --> 00:04:52.130 or recruit from industry or 106 00:04:52.130 --> 00:04:56.580 from academia the next generation of forward thinkers. 107 00:04:56.580 --> 00:05:00.420 Ford's center features several cells in which agile teams 108 00:05:00.420 --> 00:05:03.650 use proof-of-concept projects to test technologies, 109 00:05:03.650 --> 00:05:05.610 including additive manufacturing, 110 00:05:05.610 --> 00:05:07.830 collaborative robots, machine vision, 111 00:05:07.830 --> 00:05:09.570 and automated guided vehicles. 112 00:05:09.570 --> 00:05:10.710 Obviously you're experimenting 113 00:05:10.710 --> 00:05:12.190 with a lot of different things, 114 00:05:12.190 --> 00:05:14.704 but are there particular technologies 115 00:05:14.704 --> 00:05:17.010 that you're doubling down on, so to speak, 116 00:05:17.010 --> 00:05:18.440 in this organization? 117 00:05:18.440 --> 00:05:21.480 We have a significant footprint of additive manufacturing 118 00:05:21.480 --> 00:05:22.800 at Ford Motor Company. 119 00:05:22.800 --> 00:05:24.490 It's somewhat distributors, 120 00:05:24.490 --> 00:05:26.704 it's historically been somewhat distributed. 121 00:05:26.704 --> 00:05:27.537 Sure, in the plants? 122 00:05:27.537 --> 00:05:29.480 In the plants and in product development 123 00:05:29.480 --> 00:05:34.480 and in some of our relationships with, again, academia. 124 00:05:34.570 --> 00:05:39.100 So the commitment to consolidate and bring the people 125 00:05:39.100 --> 00:05:40.810 and the equipment here, 126 00:05:40.810 --> 00:05:43.320 and really focus some of the development work 127 00:05:43.320 --> 00:05:46.320 around the next generation of materials, 128 00:05:46.320 --> 00:05:50.030 accelerating some of the openness of the software 129 00:05:50.030 --> 00:05:52.280 and the material sources, 130 00:05:52.280 --> 00:05:56.260 really developing automotive-grade solutions 131 00:05:56.260 --> 00:06:00.010 with the computing power that is emerging. 132 00:06:00.010 --> 00:06:02.980 It's now providing an opportunity to introduce 133 00:06:02.980 --> 00:06:05.360 artificial intelligence in places 134 00:06:05.360 --> 00:06:07.802 that we hadn't historically had the opportunity. 135 00:06:07.802 --> 00:06:10.890 So it's been really exciting to see, 136 00:06:10.890 --> 00:06:13.280 in much more simple processes, 137 00:06:13.280 --> 00:06:15.570 where you can introduce artificial intelligence 138 00:06:15.570 --> 00:06:17.690 and really accelerate process performance. 139 00:06:17.690 --> 00:06:18.981 Yeah. 140 00:06:18.981 --> 00:06:20.660 Reflecting on your journey over the past couple years, 141 00:06:20.660 --> 00:06:23.100 what advice do you have for someone in your shoes 142 00:06:23.100 --> 00:06:24.250 in a different company? 143 00:06:24.250 --> 00:06:26.710 It's really important to not be afraid to fail. 144 00:06:26.710 --> 00:06:31.110 That's really important. And it's easy to say, hard to do. 145 00:06:31.110 --> 00:06:32.610 In order to innovate sometimes 146 00:06:33.562 --> 00:06:35.220 you have to not follow processes. 147 00:06:35.220 --> 00:06:36.790 So I think that's one of the first pieces 148 00:06:36.790 --> 00:06:38.557 of advice I would give. 149 00:06:38.557 --> 00:06:40.440 You can't be afraid, there will be failures, 150 00:06:40.440 --> 00:06:44.130 you need to have the humility to learn from those things. 151 00:06:44.130 --> 00:06:46.800 That would be one of the biggest pieces of advice. 152 00:06:46.800 --> 00:06:49.560 One of the things I've really been impressed 153 00:06:49.560 --> 00:06:51.744 by with the team that I have here is 154 00:06:51.744 --> 00:06:54.320 it seems like the more fun we have, 155 00:06:54.320 --> 00:06:57.439 the higher the quality of the output 156 00:06:57.439 --> 00:06:59.440 and the higher the volume of the output. 157 00:06:59.440 --> 00:07:00.442 You gotta have fun. 158 00:07:00.442 --> 00:07:03.942 And I think you can have fun in your work. 159 00:07:05.400 --> 00:07:07.690 Ford has made great progress in transitioning 160 00:07:07.690 --> 00:07:09.390 to digital operations, 161 00:07:09.390 --> 00:07:11.570 but most companies have seen mixed results. 162 00:07:11.570 --> 00:07:14.770 Simply put, it's hard to digitize operations. 163 00:07:14.770 --> 00:07:18.570 A company needs to invest massively in change management, 164 00:07:18.570 --> 00:07:22.330 new technical skill sets, cross-functional collaboration, 165 00:07:22.330 --> 00:07:25.690 strategic investments, and access to pricey talent. 166 00:07:25.690 --> 00:07:28.720 It must also evaluate a daunting array of new technologies 167 00:07:28.720 --> 00:07:29.870 and vendors. 168 00:07:29.870 --> 00:07:33.203 And these are just the prerequisites.