Per Harvard Business Review, most manufacturing/service operations repeat in some way; this provides the opportunity to continuously improve their underlying processes. Until recently, process improvement (PI) methods were performed by human experts. This is changing fast due to AI tools that can perform tasks faster/cheaper than humans alone.
Conventional approaches to PI are Lean and Six Sigma. Lean originated at Toyota and improves processes by removing activities that don’t add value (“waste”). Six Sigma has its roots in Motorola and improves processes by reducing undesired variation (“defects”) in process steps. They are often referred to together as “Lean Six Sigma” (LSS).
Central to LSS is a structured approach to identify root causes of an operational problem, devise a remedy, and make sure the improvement sticks. This is the focus of PI specialists (e.g. Black Belts) who design improvement projects and oversee implementation.
AI is increasingly supporting PI efforts. Johnson & Johnson has an “intelligent automation” initiative applying automation/AI tools to automate processes and enhance productivity, which has saved $500M in cost. Voya Financial has also combined traditional PI with AI/automation tools.
DMAIC (Define-Measure-Analyze-Improve-Check) is often used in LSS. AI is now used to augment all DMAIC stages and can accelerate speed and reduce labor intensity of improvement projects.
As AI grows in importance for PI, leaders will face challenges. For example, current PI approaches rely on scripted routines that allow workers to use them. With growing use of AI, the importance of these standardized tools will diminish, and may be resisted by Black Belts/consultants who have built their careers on applying them.
Skills required to leverage AI are also not covered in LSS training or most business school curricula. Leaders will need to champion such training efforts.
Building buy-in will also be a challenge. For example, PI teams now leverage process maps and “five whys” root cause analysis. AI can do most of these tasks better/faster. As a result, sense of ownership will diminish and workers may be less inclined to support PI efforts driven by AI.
AI can revolutionize PI and cut labor intensive tasks used in traditional methods. To realize this potential, leaders will need to reorient workers to these new tools and create trust among process owners that AI is equally or more effective than human PI experts.
MOSIMTEC data scientists/industrial engineers are process improvement specialists. We leverage computer and digital twin simulation to support PI every day in a wide range of projects/industries. We are also technology specialists, helping companies leverage/integrate new technologies, such as AI, to improve performance. Technology has come a long way. It’s your turn to make it work for you. MOSIMTEC can help future-proof your business.
#Manufacturing #ProcessImprovement #Implementing Lean #LeanSixSigma #ArtificialIntelligence #AI
Read More: https://hbr.org/2023/11/how-ai-fits-into-lean-six-sigma?autocomplete=true