The Shop Floor Culture Wars and Paperless Manufacturing

Conflict and miscommunication between IT and Operations may be hurting your company more than you think.

We work with manufacturing companies around the world. We’re a software company so we have developers, software engineers and IT experts on staff. We also love manufacturing – the hum of machines on the shop floor and the smooth efficiency of processes and schedules.  These (seemingly) dichotomous interests give us a unique perspective on the manufacturing industry… we know the software and technology and love the science and culture of manufacturing, which may be why we are so dismayed at the silent Culture War we see being waged at many companies.IT versus Operations… we’ve come to expect the unspoken conflict between these departments every time we work with a new company. In one organization, we were shocked to learn many in IT had never visited a shop floor or even knew what, exactly, the company made. In another company the Director of Operations told us he wasn’t sure what the IT department had to do other than fix computers. The organizational separation between IT and Operations causes serious harm to a business, limits the organizations ability to collaborate or communicate, and stifles creativity and efficiency. Vital information gets buried inside the organizational silos built between the departments.   These cultural differences within an organization lead to non-productive work and wasted resources.

The problem (I hope) isn’t open conflict or true warfare, but that decisions are made by both groups independently. Often, a company will assign responsibility to one group or another, and rather than working collaboratively one department will vigorously defend their power. Collaboration is seen as a loss of power.

From our perspective, there is absolutely no reason for this separation – no benefit. And yet, because implementing paperless manufacturing is as much a cultural project as a technical one, these silos that fuel the organizational culture wars are magnified during the implementation. Consider this:

• Implementing a software solution like paperless manufacturing or an MES without feedback and consultation with operations can lead to a system that causes more problems than it is worth, and ends up being unused. Operations is process-based, and any tool must be integrated with the processes as much as the business infrastructure.

• Without IT expertise, the software system may never be fully integrated into other systems, and may not ever have the support necessary to optimize production. Trying to cram more software tools onto servers haphazardly is a task doomed to failure.

• Miscommunication and misinformation during the selection and implementation can lead to gaps in coverage or service, leading to frustration and operational inefficiencies, and a solution that never delivers the full ROI.

When positioning yourself for success in a system implementation, the core problem is simple – both operations and IT play a critical role in a software system implementation for manufacturing, and any time you have these two organizations operating at cross-purposes, the project has little chance of success.

Solving Shop Floor Dysfunction

Any solution to this problem starts with bridging the gap between IT and Operations, and eliminating or minimizing the barriers and silos that develop between departments. There are several simple steps that can be taken by organizations plagued by internal culture wars:

• Foster a culture that looks to the future.

Silos develop when employees cling to the, “way things have always been done.” Internal departments look inward when they want to protect their way of doing things, which eliminates the opportunity for improvement and promotes organizational silos. Elect representatives from both IT and Operations to develop and manage process improvement programs, helping employees to embrace a culture of change. Focus on innovation and improvement, rather than maintaining the status quo.

• Help IT understand operations.

While it may not seem like a productive use of employee time, you can gain a lot by helping your IT department learn about production. Get them on the shop floor, and let them see how manufacturing struggles without digital tools. Give them an understanding of the shop floor processes and how operations works, and they will be in a better position to support production initiatives.

• Get IT involved in the project early.

If Operations sees IT as only, “the people who work on the computer,” then you aren’t adequately engaging one of your best internal resources. Don’t wait to get IT involved in a project till you need them, get them involved early and let them help build the requirements. Their involvement will help ensure you have a system optimized for your production environment.

• Share ownership of the system.

Many companies feel the project is over once the system is installed, but today, in a world where change is the only constant in manufacturing, maintaining the viability of the system is a critical competitive advantage. This can best be done, without putting an undue burden on either department, by electing a “system-leader” from both Operations and IT. Operations can focus on the functionality of the system, while IT can focus on other aspects of the software.

Shop Floor Efficiency the Easy Way

This may seem like an overly simple solution to a complex problem, but many employees and organizations fail to see the “big picture” connection between IT and Operations. Operations drive profit and generate money, while IT gives Operations the tools and support they need to succeed. There really is no difference – both work to serve the customer and the business.

Without collaboration and communication between IT and Operations during the selection and implementation of a new manufacturing software system, companies are often left with a software system that never meets expectations or operates efficiently. Requirements may be met, but the overall benefit to the organization is lacking. Opportunity is lost.

Want to know more, or see how CIMx can help you bridge the gap between IT and Operations? Give us a call or let us know how we can help.