“Shopfloor” stands for the area in the company where the actual value creation takes place. Digital store floor management refers to the use of digital tools and methods to control and optimize processes at production and logistics level. This includes real-time monitoring and control of production lines, effective management of manpower and resources and the analysis of production and logistics data for continuous improvement.
Do you know the potential for improvement, but also the risks in your value creation processes?
Have you already identified waste in production and logistics processes, developed and implemented appropriate measures, introduced visual andon boards and regular, cross-departmental shopfloor management (Haka) meetings and thus increased productivity and efficiency in the first step? The task now is to anchor the measures permanently and make production and logistics fit for the future through the targeted use of digital tools as part of digital shopfloor management. You can find out more about KPI definitions and best practices in our white paper “Operational Excellence”
“The term shopfloor management is often used incorrectly. Shopfloor management is not a tool for measuring performance, but an optimization approach from the lean toolbox. At ifp consulting, we know both the differences and the advantages of both approaches.”
Dr. Gerhard Nowak, Managing Partner at ifp consulting
The main advantages of traditional and digital store floor management (SFM), as understood by the lean philosophy, are high transparency through simple and comprehensible KPIs, clear objectives and the continuous comparison between target and actual, and, derived from this, structured problem solving and continuous improvement in order to close the existing gap between target and actual quickly and permanently. The basis for this is the PDCA cycle (Plan-Do-Check-Act), or alternatively the Haka meetings from the Japanese part of the lean philosophy.
Both methods aim to achieve continuous improvement on the basis of transparent key figures, a comprehensive root cause analysis and structured measures with responsibilities and deadlines. While the Haka method, as part of the morning routine of a production or manufacturing manager, sees continuous follow-up as the core of success and is therefore used for smaller improvements, the PDCA method is used for larger and more complex problems. These can also arise from the Haka meetings.
Successful with digital store floor management
ifp consulting’s approach to the development and implementation of digital store floor management encompasses both methods and begins with the definition of the right KPIs, e.g. in the areas of safety, quality, efficiency, costs, but also quite profanely to describe the output quantity in the actual and target state. Thanks to our in-depth expertise in production and logistics, we support the development of measures in close coordination with the project team.
What are the benefits of digitizing store floor management?
The increasing digitalization in many areas of industry and the rapidly growing number of available technical solutions and tools are decisive factors for the digitalization of store floor management.
The advantages are obvious: immediately available data on the current status of production and logistics and the ability to intervene directly in the event of deviations in the KPIs.
In addition, digital tools promote data-supported decision-making, which is crucial for optimizing production and logistics processes. Consequently, the digitalization of store floor management can enable real-time decision-making. In concrete terms, this means a reduction in the time that elapses between the occurrence of the event and the reaction to it. In addition, digital andon boards can be used to inform all employees continuously, directly and transparently about performance with regard to the defined KPIs in order to increase their awareness of process performance and thus actively involve them in the optimization process. We at ifp consulting know the most important solutions and tools, which can then be implemented in cooperation with the customer’s IT department. The consistency of the data model used is also crucial in order to avoid system breaks with the corresponding difficulties in further processing, as well as the simplicity of application and configuration for use on the store floor by employees, team leaders and the management team.
What are the benefits of digitizing store floor management?
The most important requirements are:
What are the benefits of digitizing store floor management?
The successful introduction of digital store floor management requires the right attitude from everyone involved. This starts with management’s commitment to the digital transformation and includes involving a broad spectrum of employees in the development and implementation process and then providing them with comprehensive training. Step-by-step implementation, e.g. via a lighthouse application, makes it possible to test and adapt the system without disrupting ongoing processes in production and logistics. A rapid and comprehensive expansion of the implementation helps to leverage the momentum of the successful lighthouse application and initiate a successful transformation process towards digitalization.
The success factors for the introduction of digital store floor management are divided into visible (20%) and invisible (80%) criteria, similar to the visibility of an iceberg.
While the first category focuses on the obvious criteria, the optimization of the invisible area is much more subtle, in-depth and requires a sustainable transformation process.
A collaborative mindset helps to reduce silo thinking in the organization as a whole and to pursue common goals more effectively. The technologies and data provided by digital systems enable continuous analysis and optimization of processes. Employees who are motivated to learn from data and adapt processes accordingly make a significant contribution to increasing production and logistics efficiency. Two aspects are of particular importance here, which we at ifp consulting encounter time and again in projects of this kind and therefore incorporate in the development of solutions:
Building trust in digital data and decision-making
Employee trust in the data generated by digital systems is of crucial importance. A data-driven mindset encourages the use of this data for problem solving and strategic planning. Without trust in data integrity and the resulting analytical insights, it would be difficult for employees to rely on digital tools, which would compromise the effectiveness of digital shopfloor management.
Adaptability and flexibility
Employee trust in the data generated by digital systems is of crucial importance. A data-driven mindset encourages the use of this data for problem solving and strategic planning. Without trust in data integrity and the resulting analytical insights, it would be difficult for employees to rely on digital tools, which would compromise the effectiveness of digital shopfloor management.
Extension to indirect functional areas
Digital store floor management can be effective not only on the store floor, but also in other departments: It creates transparency through visualized data flows and promotes a focus on achieving company goals as well as efficient troubleshooting. This leads to improved work processes and an increase in overall operational efficiency.
