Data management, AI and organizational change management

Jordan Lecat / am,

Getting the best out of production

The use of artificial intelligence in the factory promises productivity gains and can also contribute to employee satisfaction. The prerequisites are a good data basis and close cooperation between IT and specialist departments.

The use of AI makes complexity manageable - but the decision still remains with humans. © Nararro

3,000 square meters, several floors, powered by renewable energy: More and more factories are also being built in Germany to develop cutting-edge AI models and applications for industry. The technology is intended to ensure competitive, automated production of highly complex and individual products in the long term. The benefits for economic performance are already visible today. Studies show that productivity growth has almost quadrupled since the spread of GenAI. It is estimated that an average annual increase of 0.9 percent is possible by 2030 and a further 1.2 percent by 2040. Applications such as personal AI assistants, chatbots, voicebots and AI agents will make processes across departments and systems more efficient, qualitative and future-proof.

Making complexity manageable

In most cases, artificial intelligence - specifically machines or deep learning - is used to analyze large amounts of data, identify patterns, create forecasts, plan scenarios and receive situation-specific recommendations for action. The decision remains with humans. For example, whether a product is faulty, needs to be rejected or improved. On the one hand, this form of quality control reduces workload and increases customer satisfaction. On the other hand, it also enables minimum downtimes, maximum machine running times and higher added value overall. It also contributes to sustainable production by reducing waste and saving material and energy. Other application scenarios include smart product development and adaptation, full traceability of the value chain, machine monitoring and predictive maintenance and servicing.

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Successful AI implementation requires reliable access to operational and historical data via a modern enterprise data platform. To achieve this, the entire production process must be networked via sensors and algorithms must be developed to convert this data into information. Certain sub-processes can then be controlled by AI-supported automation with minimal human intervention. This ranges from data evaluation in real time to produce a new product version to independent further development of the product. The complexity of finding the right or optimal solution from numerous options cannot be directly reduced through the use of AI, but it does become manageable.

Taking employees with you

As positive as AI in production is, employees will ultimately also have to adapt to a much faster pace of change. For them, jobs and requirements for specialized practical skills are changing, and there is a new understanding of good leadership. Training alone is not enough; employees need to be inspired to adopt an open, innovative and critical mindset towards new technologies.

Many companies are still reaching their limits here. The problem: for a long time, digital transformation was seen as a purely technological project. A standard solution, a management tool or an MES system was simply introduced. In theory, everything seemed to fit. But in reality, the results were often disappointing. Why? Because the crucial point was ignored: A factory cannot be controlled from a data center. The transformation begins in production by involving those who actually operate it.

Successful AI implementation requires reliable data access. © Nagarro

The success of industrial digitalization projects depends largely on close cooperation between IT and operations departments, based on common goals, a clear budget and joint management. While the former contribute practical ideas and suggestions, the latter create the strategic, technical and cultural conditions. In this way, companies ensure that new solutions are not only implemented, but also accepted and used. To achieve this, the key people - such as team and plant managers - who are committed to the initiative should be identified early on in the project.

Follow five key principles

The digital transformation is a fundamental restructuring that should take place step by step. Old and new must be connected, adapted to existing systems and integrated into daily workflows. For implementation, it is advisable to prioritize important areas of the company, test on a small scale, make adjustments, demonstrate the benefits and then scale up. Five principles have proven their worth:

  1. Never start with the technology: Before companies choose a solution, they should analyze their needs, processes, weak points and bottlenecks. Three questions are a good starting point: which routine activities waste the most resources every day, what information is missing for more efficient work and what would be the one adjustment you would like to change.
  2. Involve teams from day one: It is often the experience that newly introduced software is quickly switched off again because it was not trusted or understood - advantages and benefits in daily use should therefore be experienced early on. Concepts of coexistence, cooperation and collaboration ensure that humans and AI interact successfully.
  3. Establish multidisciplinary governance: A collaborative approach between IT and specialist departments in the form of a steering committee that regularly coordinates according to a joint project plan and defines roles and expectations is important.
  4. Secure collective knowledge: What happened on the night shift, how did the production launch go? Answers to such questions are often passed on verbally. Essential information is lost in the process. Companies should therefore document the experience of their employees and incidents on the store floor centrally, digitally and in a comprehensible manner. This makes it easier to transfer work instructions, hand over shifts more smoothly and rectify errors more quickly.
  5. Measure results: AI applications in production must offer a clear return on investment. In addition to the classic key figures, other KPIs should also be collected, such as time savings and employee satisfaction.

Jordan Lecat, industrial transformation expert at Nagarro

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