When Outset Medical, a U.S. medical device company, opened a greenfield factory in Tijuana, Mexico to manufacture dialysis machines it was determined to not only leverage advances in technology but reap the benefits of integrating autonomous systems with human intelligence. Like most manufacturers Outset was aiming for lower than average labor turnover and transformative levels of increased productivity per worker. It faced the challenge of implementing technology while maintaining regulatory compliance. And, it worried workers would resist tech advances they feared would complicate or replace their jobs. Outset integrated multiple new technology systems to help manufacture them more efficiently. Then, it empowered its workforce through a citizen developer program called “Tuliperos” which involved operators in the application design process. Each of the new tech applications underwent anywhere from 9-100 revisions based on worker feedback. This not only reduced the tension between automation and autonomy but resulted in significant improvements, says Marc Nash, Offset’s senior vice-president of operations and R&D. By adopting new technology and involving the workforce in the process Offset was able to increase production capacity by 170% within nine months, says Nash. What’s more employee retention is 50% higher than the regional average, he says. Outset is an example of the benefits of becoming a “learning organization,” says Natan Linder, co-founder and CEO of Tulip, a frontline operations platform, and co-chair of the World Economic Forum’s Advanced Manufacturing Industry Governors Community. The benefits of becoming a learning organization were highlighted in a recently published white paper that outlines the Forum’s efforts to create what it calls the Lighthouse Operating System, a next-generation industrial operating system that distills the lessons of the world’s leading manufacturing sites into an actionable framework for the entire sector. |