Overview of Clients

In terms of precision component manufacturing, Global Innovations Inc. is a leader in the automotive, aerospace, and medical device sectors. Founded in 1978, the company now employs over 850 people, operates three production facilities around the Midwest, and serves clients in 27 countries. With an annual turnover of about $280 million, Global Innovations had established a solid reputation for dependability and quality, but it was coming under growing pressure from both domestic and foreign rivals with more sophisticated production capabilities.

The Problem

At the start of 2019, Global Innovations came to us with a number of serious issues that endangered their long-term viability and ability to compete:

• The majority of production planning was done by hand, which led to inefficient scheduling, frequent expediting, and exorbitant overtime expenses.
• Exorbitant inventory costs: The company kept an excessive amount of safety stock, consuming resources and storage space, because it was unable to access production and inventory status in real-time.
• Obstacles to Quality Assurance: Because paper-based quality methods took longer to identify problems, different product lines had reject rates ranging from 8 to 12%.
• restricted visibility of the data Leadership was unable to obtain timely insights necessary for strategic decision-making due to system silos and manual reporting.
• Employee Difficulties: Outdated methods and procedures made it difficult to hire new talent, and an aging staff put vital expertise at risk.
• Competition-related pressure: Competitors were able to offer more personalization, quicker lead times, and lower prices thanks to more sophisticated digital capabilities.

The loss of a long-term client to a rival that could provide the same quality components with 40% shorter lead times and 15% lower prices was the turning point for Global Innovations. According to Global Innovations CEO Robert Johnson, "That was our wake-up call." "We came to the realization that our prior advantages of reliability and quality were insufficient. In order to stay competitive in a market that was changing quickly, we had to modify our business procedures.

Our Method

We created a staged digital transformation plan after conducting a thorough evaluation of Global Innovations' operations, technological infrastructure, and organizational preparedness in order to address current issues and provide the groundwork for future innovation and expansion.

Phase 1: Quick Wins and Digital Foundation (four months)

We started by implementing quick wins and setting up the digital framework in order to show value and generate momentum:

• The IoT Sensor Network was able to track performance, consumption, and maintenance requirements in real time by installing sensors on vital equipment.
• Technology for Manufacturing Execution (MES): A contemporary MES was implemented to digitize production tracking and offer real-time operational visibility.
• Digital workflows and real-time data collecting in digital quality management have supplanted paper-based quality processes.
• Platform for Data Integration: To facilitate cross-functional analytics and link disparate systems, a data integration platform was created.
• The purpose of the leadership dashboard was to give executives instant access to key performance metrics.

During this time, careful change management was needed to overcome the initial opposition of long-tenured individuals. VP of Operations Maria Rodriguez remembers that "there was definitely skepticism at first," Many of our staff have been doing the same tasks for decades. We had to show how these new technology will make their jobs easier rather than replace them.

Phase 2: Five Months of Process Optimization and Advanced Analytics

Following the establishment of the digital foundation, we concentrated on leveraging data to enhance significant industrial processes:

• Predictive maintenance employs machine learning algorithms to anticipate equipment breakdowns before they happen, minimizing unscheduled downtime.
• Utilizing sophisticated algorithms based on capacity, demand, and material availability, production scheduling was optimized.
• Analytics-driven inventory management was used to optimize inventory in order to lower safety stock levels without sacrificing service quality.
• Models that allowed for early intervention were produced by using process factors to predict possible quality problems.
• Digital twins of important manufacturing lines were created prior to implementation in order to model and optimize process modifications.

Although this phase resulted in considerable operational benefits, it also required close coordination between our data scientists and the domain specialists at Global Innovations. Director of Engineering Michael Chen said the secret was to combine their data science knowledge with our manufacturing experience. "We knew our processes, but they helped us see patterns and opportunities in the data that we never would have identified on our own."

Phase 3 of the Supply Chain and Connected Factory (6 months)

We extended the digital transformation to include the full value chain by building on the achievements of the first two phases:

• Supplier Integration: Better online access to important vendors who provide current information on the availability and quality of materials
• The protected client site includes shipping specifics, quality information, and real-time order progress.
• In automated material handling, smart storage systems and automated guided vehicles (AGVs) were used to maximize material flow.
• Guidelines for Augmented Reality in the Workplace: To cut down on mistakes and training time for intricate assembly procedures, AR-based work instructions were implemented.
• Digital Product Lifecycle Management: To speed up the launch of new products and change management, a PLM system was put in place.

Significant cross-functional cooperation and process modification were needed for this phase. "We had to rethink not just our technology but our entire operating model," said Jennifer Thompson, the chief supply chain officer. "The digital tools enabled new ways of working with both suppliers and customers that weren't possible before."

Phase 4: Ongoing Innovation and the Development of Business Models

We collaborated with Global Innovations to take advantage of their new digital foundation for business model creation and innovation after gaining the necessary digital skills:

• Mass customisation made it possible to produce customized parts quickly, efficiently, and with little setup time.
• evaluated fresh service alternatives focused on predictive maintenance and product performance monitoring.
• Real-time customer interaction tools for product development and prototyping were implemented through digital design collaboration.
• Efforts to optimize energy use, minimize waste, and improve sustainability protocols by leveraging digital capabilities
• establishment of an innovation lab devoted to researching cutting-edge technologies and their possible uses

Outcomes and Effects

The operations and competitive strategies of Global Innovations have undergone significant changes as a result of the digital transformation.

In addition to these headline numbers, the modification has had some qualitative benefits:

• Enhanced Competitiveness: Global Innovations has been able to regain lost clients because to a 35% reduction in lead times.
• Quality Gains: Scrap rates have dropped from 8–12% to 3-4%, greatly increasing profitability.
• As part of its workforce transformation efforts, the organization has effectively hired new technical talent and upskilled current personnel.
• Client satisfaction: The Net Promoter Score rose from 32 to 58 to reflect the improved service quality and levels, and 8% of total revenue now comes from new revenue streams made possible by digital capabilities.

"This transformation has fundamentally changed our business. Over time, we have evolved from vying for market share to rising to the top of the business. Even more fascinating than the notable operational benefits is the fact that these new skills have created opportunities that were unthinkable just three years ago. We are providing our clients with comprehensive, one-of-a-kind solutions that address more significant issues rather than just making the same things more effectively."

— Robert Johnson, Global Innovations Inc.'s CEO

Crucial Teachings

Other manufacturers pursuing digital transformation initiatives can gain from the insightful information that the Global Innovations transformation produced:

• Start with Specific Business Goals: A successful digital transformation starts with specific business goals rather than just technology.
• In line with both short-term gains and long-term goals: When pursuing a complete transformation, a phased strategy with immediate outcomes is required to generate momentum.
• Prioritize people and processes: While technology facilitates change, behavioral change is the key to success.
• Data integration is crucial. Data silos must be broken down in order to fully utilize digital technology.
• Leadership Commitment Is Essential: To overcome inescapable opposition and obstacles, executive commitment must be upheld.

The Global Innovations case illustrates that digital transformation in manufacturing entails reevaluating how a business generates and provides value in a market that is changing quickly, in addition to increasing operational efficiency.