Since its heyday in the 1960s, the Australian manufacturing sector has declined from 30% to just 5% of GDP. The Australian government is now investing $1.5 billion to resuscitate the ailing manufacturing sector, predominantly through technological advancements. However, most Australian factories are struggling to simply rise above the daily chaos. What needs to happen before these factories can leverage technological advancements and increase our Australian manufacturing capacity?
Here are five essential mind shifts required before our factories can leverage technological advancements and increase Australian manufacturing capacity:
Technology Is Not a Silver Bullet
A recent study conducted by the Australasian Supply Chain Institute (ASCI) found that in 2018–19 our overall supply chain maturity dropped by six percentage points from 52 to 46 despite off-the-Richter-scale advancement in automation. Are you implementing technology as a solution looking for a problem?
‘Red Is The New’ Green Approach
The daily huddle isn’t a novel concept. However, many businesses haven’t established the right structures, cadence or focus to harness the real value from these gatherings. How are you encouraging your teams to see the red metrics as an opportunity to understand the process failures?
The ‘Pit Stop’ Mindset
An F1 pit stop crew operates with precision, diligence and predictability. Its performance can win or lose a race. World-class companies also operate with this mindset. Are your teams operating with this mindset?
Structured Problem-Solving Cadence
Many of us are good at firefighting; however, we aren’t so good at structured problem-solving. Develop a cadence of identifying, prioritising and solving significant issues and constraints that are holding you back. Don’t be at risk of taking on too much and delivering little. Stop starting and start finishing. How rigorous is your problem-solving cadence?
Frontline Leadership Focus
For most manufacturing businesses, the real value-add component occurs on the shop floor. Yet, the focus is on MBA’s for middle managers and executive coaching for senior leaders. How are you developing and coaching your frontline leaders to be tomorrow’s operations managers?
Releasing capacity through productivity improvements requires a framework with multiple processes—like the multiple cogs of a world-class Swiss watch. Focus on the process and this will deliver results.
