A featured contribution from Leadership Perspectives: a curated forum reserved for leaders nominated by our subscribers and vetted by our Manufacturing Outlook Advisory Board.

Electrolux

Automation, Connectivity, and Sustainability Driving Multidisciplinary Organizations

Marcelo Varreira

Marcelo Varreira

A multidisciplinary organization works to support and maximize the results of the automation and manufacturing strategy, and consequently of the business. It has been an alternative to business architecture for obtaining better returns on industrial assets and investments.

Over time, after the wave of standardization of product design through Design for Manufacturing and Automation (DfMA) techniques, where much of the work was conceived between the areas of Design, R&D, and Manufacturing, the scope of this drive reaches the entire operation chain in a more integrated way. It is connecting the entire organization, such as IT, Supply Chain, Purchasing, HR, and others as well.

Just to remind you, in the first wave, product platforms with suitable designs were developed so that manufacturing operations were carried out by robots or automatable stations to create standardization and consequently increase the scale of the operation. This increased the possibilities of using robotics and automation and increased the scale that helped to absorb the heavy investments. A simple example is the operations of joining or assembling two or more parts, as in an appliance, washing machine, or cooker, which have on average between 50 to 80 different fasteners, with different specifications, and sizes, and some with high complexity for automation projects. It makes returns on investments longer and automation design highly complex and expensive.

The main benefits of these organizations are manufacturing costs are more competitive, better quality with reduced variation, and faster consumer requirements are met. The financial maximization result came from the application of this method in product platforms with a larger production scale, and consequently, intensive use of labor. Until that point, industrial managers, product and manufacturing engineers, technicians, and designers were the main protagonists in automation and robotics on the factory floor. This strategy found better results where the manufacturing costs are higher and close to the largest consumption markets.

Recently, the global consumer goods industry has struggled against the Global Supply Chain disruption, wherein logistical costs have risen more than transformation or manufacturing costs, new demands and challenges have arisen like Industry 4.0, targets for sustainability like carbon emissions reduction, and digitalization. It causes more pressure on the costs and prices, so organizations are looking for organizational models that are increasingly aligned with customer service and that maximize the return on the assets.

Organizational multidisciplinary is an approach to achieve more robust results, meet new demands, and increase business profitability from the top of the organization, focusing on the customer and user end. The definition of priorities for actions and investments comes from the commercial area, which has the end customer’s vision and integrates the inputs to achieve the business result. Deploying in the operations area requires connecting the supply chain, manufacturing, R&D, IT, HR, finance, and quality to align investments and projects with the priorities of the end customer. This requires the digital mindset and the already existing and consolidated automation drive in the organization from all areas.

An example of this multidisciplinarity is the development of the packaging flow between facilities and suppliers. Design for automation in the supply chain area to think about packages that can be handled in automatic warehousing, in trucks with automatic loading and unloading, with RFID reading of component and packaging codes and that can be used directly in the point of use of an assembly line, with robotic stations. This demands the background and expertise of different areas of the organization, leading projects that are more aligned with the objectives of the organization and consumers.

With the advancement of Industry 4.0 technologies and data analytics tools, an automated factory floor with robotic stations and a consolidated OT and IT network of information, and the advancement of connectivity between machines open up the possibility of using this data in any area of the organization, not only for the benefits already known in manufacturing, but also for areas such as quality, industrial safety, R&D, sales, supply chain, and new business. For example, to monitor or predict potential failures or incidents, the sales area to monitor the progress of a customer order in real-time, and the supply chain to reduce operating, storage, and transport costs. The company’s business connectivity, through data and information, and the design of products and services aligned with this scenario.

"Organizational multidisciplinary is an approach to achieve more robust results, to meet new demands and increase business profitability from the top of the organization, focusing on the customer and user end."

From the point of view of sustainability, data from the manufacturing area provides the best use of resources in transport, reducing freight and carbon emissions, as well as the use of recyclable packaging or return between factory and supplier. It also optimizes operations that demand energy and water in production processes.

Finally, the requirements of a multidisciplinary organization driven by automation are the alignment of the area’s objectives from the customer, prioritizing products, channels, and consumers to investments and automation strategies, connectivity, and sustainability throughout the company’s pipeline, and ultimately cause a positive impact on the business. This demands a wide range of different backgrounds and expertise, aligned with digital and data technologies and organizational architecture. Projects and tasks exclusive to an area are increasingly rare. Below are some of these structural features.

Cross-Functional Organization where all functional areas of the company support product and service development with resources and skills.

Environment and Collaborative Relationship between areas. The competitive internal environment loses space and tends to be reduced.

Digital Mindset and Automation Expertise throughout the business pipeline.

People are driven by Digital, Data, and Automation that demand new behavioral and technical skills.

The benefits are the best use of resources, the maximization of the company’s results aligned with the customer’s priorities, improving cost, and return on assets. On the other hand, this type of organization is more complex, and decisions can take longer, due to the more multidisciplinary involvement in projects and new developments.

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.
Take Me Top