At a recent GDS Manufacturing Summit, BIC and BAE Systems spoke about the challenges they face as leaders in operations management. Some are global issues, and some are specific to supply chain or manufacturing and operations management. The combination of the two, making some organizations very vulnerable.
Saying that, it doesn’t mean they can’t be beat.
What are the challenges in operations management?
There are clear challenges the operations management industry is facing, and as Ash Dhupar, Chief Data & Analytics Officer at BAE Systems said “irrespective of what industry we’re in, the challenges are very similar”:
- Global inflation is running at its highest rates in at least a decade
- War is impacting the commodity shock
- The Great Resignation is unsettling the workforce
Alongside this, the manufacturing and supply chain industries have had more targeted issues:
- Evergreen ship getting stuck causing huge delays
- Global shipping shortage
- Supply chain crisis
The pandemic completely broke supply chains across the globe, which resulted in all algorithms having to be changed. But people and processes adapted.
While it is not easy to predict and control such challenges on a global scale, there are tools that can help manage the situation faced by operation managers.
Managing rapid change through data and AI
The changes over the past 2-3 years have been rapid and mostly unexpected. Ash Dhupar explained that the difference between now and 20 years ago is the speed to adapt using the power of data and AI. In particular, the ever-growing capabilities of AI and data management enables us to adapt faster now, than we ever previously could.
Looking at both the long and short term, with an unsettled, unavoidably changing future for production and operations management, will be key to understanding the best route to solve individual business challenges. Ash Dhupar, Chief Data & Analytics Officer at BAE Systems, makes it clear – do not over complicate it:
“Look at what business problems are there, how do you plan to solve them and how much AI do you need to be able to do it? How are you going to get there?”
“Data is still in silos [for example]. Some analysts look at the data and want to create a point-to-point connection believing it will solve all your problems – but you must look at it through a different lens. Consider creating a data hub which brings in the data that needs to talk to each other. Point to point takes so long. What are the important bits that needs to talk to each other? Does it really need to be everything?”
The roadmap to success
GDS Manufacturing Summit, Mario Berra, SVP Global Manufacturing at BIC talked about manufacturing operations management challenges they are facing and how to overcome them. He reminded us:
“In the middle of difficulty lies opportunity” – Albert Einstein.
Mario Berra explained that, whilst looking at quick wins, you also need to play the long game. BIC have a roadmap for the next 3 years with clear goals connected with employees, customers, warehouse staff, factories and dedicating themselves to “writing the future together”.
“It’s very important to set clearly how we will create a connection with suppliers, customers and within the factories, which has had a big focus over the past year for us, to bring those teams in and maintain team engagement”. Mario Berra, SVP Global Manufacturing at BIC.
He sets out BIC’s 5 steps to success:
- Set out a clear vision with the ‘what’ and the ‘why’ and involve other teams to help define the ‘how’
- Look at the whole picture – frameworks, global strategies, and broader initiatives. There will be local challenges specific to each business.
- Promote the creation of ideas
- Invest in a collaboration network
- Define actions and motivate employees
Engaging employees and keeping teams communicating and motivated are big factors in achieving these recommendations. With flexible working continuing and teams spread across the globe, it’s worth evaluating your hybrid work experience to see if it’s achieving what you want it to do.
Platforms such as Jugo and shared learning at GDS virtual events are both good starting points in understanding how you work with your teams closer and more productively as hybrid working continues.
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