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An approach to Cultural Change on the Shop Floor

The topic is quite extensive, so, for this short article I will touch on an approach to and a high level action plan to effect successful cultural change.

Explanation and Action Steps

Explanation:

When attempting to initiate organizational change, it’s essential to recognize that both technical and psychological components are involved. The first two questions, What to Change? and What to Change Into? are primarily technical; they focus on identifying the specific issue that needs to be addressed and the desired outcome. These are the practical, data-driven questions that drive the problem-solving process. However, the third question, How to Cause the Change? is fundamentally psychological, as it involves managing emotional resistance within the organization.

Politics and established ways of doing things in many organizations create a natural resistance to change. The emotional pushback is a key obstacle, as individuals often perceive change as threatening their security. This perception can stem from fear of the unknown, fear of failure, or fear of losing control. As such, change is often met with emotional resistance, which, if not managed carefully, can derail even the best-planned initiatives. Understanding this psychological process is crucial to successfully navigating the change process and ensuring that the organization continues to improve sustainably.

Emotional Resistance to Change:

  • Any Improvement Is a Change: The improvement process is inherently a change, but not every change necessarily equates to an improvement. For a change to be successful, it must be seen as an improvement by those affected by it.
  • Change as a Threat to Security: Change, even when beneficial, is often perceived as a threat to personal or organizational security. This perception arises because individuals may fear that the new way of doing things will reduce their influence, position, or comfort within the organization.
  • Emotional Resistance: This threat to security triggers emotional resistance, which is a natural, protective reaction. However, this emotional resistance cannot be overcome with logic or reasoning alone. Instead, it requires a more powerful emotional response, such as a sense of urgency, excitement, or the feeling of ownership in the process.

The challenge here is to find a way to create a productive emotional response to change that outweighs the natural resistance. Traditional methods such as using fear or insecurity (e.g., “change or else we will fall behind”) may work initially but are not sustainable in the long term. They often create an environment of constant tension and insecurity, which leads to burnout, disengagement, and eventually stagnation.

The Power of the Emotion of the Inventor:

Rather than using fear or insecurity, a more positive and sustainable approach involves tapping into the emotion of the inventor—the powerful feeling of ownership and personal connection to a solution. This emotion arises when individuals come up with their own solutions to problems, as opposed to simply being told what to do.

The Socratic method, which encourages individuals to find their own answers by asking the right questions, can be an effective tool in inducing this emotion. It not only helps individuals feel ownership over the solution, but it also engages their creativity and problem-solving skills, leading to deeper commitment to the change process.

Action Steps:

  1. Identify Core Problems:
    • Action: Begin by identifying and clearly defining the core issues within the organization that need to be addressed. These problems should be specific, measurable, and impactful to the overall success of the organization.
    • Expected Result: This step ensures that the change efforts are targeted and aligned with the most pressing issues, preventing wasted time and resources. By clearly identifying the problems, you create a sense of urgency and focus, which helps drive the rest of the process.
  2. Construct Practical Solutions:
    • Action: Once the problems are identified, work with key stakeholders to design simple, practical, and actionable solutions. These solutions should be straightforward and focused on achieving clear outcomes, rather than overcomplicating the process with unnecessary complexity.
    • Expected Result: By developing clear, realistic solutions, you reduce ambiguity and increase the likelihood of successful implementation. Employees will feel more confident about the changes, as they will have a clear understanding of what is expected of them.
  3. Induce Invention of Solutions (Using the Socratic Method):
    • Action: Apply the Socratic method to guide individuals or teams in developing their own solutions. Instead of providing answers, ask thoughtful, open-ended questions that challenge them to think critically and come up with their own ideas. The goal is for individuals to feel like they are the creators of the solution, which increases their commitment to the change process.
      • For example, instead of saying, “Here’s how we will improve this process,” ask, “What do you think is the most critical challenge in this process? How could we overcome it?”
    • Expected Result: This approach helps to trigger the “emotion of the inventor,” fostering a sense of ownership and pride in the solution. People are more likely to follow through with changes when they have been part of creating them. This leads to greater engagement, more innovative ideas, and a deeper buy-in to the change process.
  4. Avoid Relying on Fear or Insecurity:
    • Action: While fear can sometimes motivate short-term action, avoid using fear-based tactics to induce change. Instead of focusing on the potential negative consequences of not changing (e.g., “We’ll fall behind our competitors”), focus on the positive aspects of change, such as growth, innovation, and improvement.
    • Expected Result: This helps to create a more positive, motivating environment for change. People are more likely to embrace change when they see it as an opportunity for growth rather than a threat. It also prevents the development of an unhealthy work environment dominated by fear, which can lead to disengagement and burnout over time.
  5. Revisit and Iterate the Change Process:
    • Action: Change is not a one-time event but an ongoing process. Regularly revisit and evaluate the progress of the change initiatives to ensure that they are achieving the desired results. Be open to adjusting the approach based on feedback and new insights.
    • Expected Result: This creates a culture of continuous improvement, where change is seen as a natural and ongoing part of the organization’s evolution. It prevents stagnation and helps the organization stay agile and responsive to new challenges. It also reinforces the idea that change is not something to be feared, but a constant driver of success.
  6. Cultivate a Culture of Ownership and Innovation:
    • Action: Foster an environment where employees feel empowered to innovate and contribute to the change process. Encourage creativity, celebrate small wins, and provide opportunities for individuals to take ownership of projects and solutions.
    • Expected Result: Promoting a culture of ownership and innovation increases employee engagement and reduces resistance to change. Employees will feel more connected to the organization’s success and more likely to proactively contribute to ongoing improvements.

Following these steps can create a more sustainable and positive change process. The key is to focus on emotional engagement, foster ownership, and avoid relying on fear or insecurity. This approach will help you implement successful changes and ensure that your organization remains adaptable, resilient, and continuously improving over time.

 

by Tim Smith

 

Essential Industry 4.0

In today’s manufacturing landscape, unplanned downtime is one of the leading causes of lost productivity, resulting in delays, dissatisfied customers, and substantial revenue losses. Recent studies estimate that this issue alone costs industrial manufacturers a staggering $50 billion annually. However, the solution lies in embracing Industry 4.0, the digital transformation of manufacturing, which leverages data analytics, artificial intelligence, machine learning, and other advanced technologies to enhance productivity, agility, customer satisfaction, and sustainability¹.

Despite the immense potential of Industry 4.0, many manufacturers still struggle to scale up their efforts and fully realize the value of their digital transformations². Financial hurdles, organizational challenges, and technology roadblocks are among the obstacles they face².

The cost of not adopting Industry 4.0 can be substantial, as evidenced by the average cost of an hour of downtime for a factory, estimated to be $260,000⁴. However, implementing Industry 4.0 solutions, such as predictive maintenance, can drastically reduce these costs³. Moreover, failing to embrace Industry 4.0 technologies means missed opportunities for improving customer service, delivery lead times, employee satisfaction, and environmental impact¹.

Industry 4.0 goes beyond addressing downtime and offers transformative benefits for manufacturers. It represents the current era of connectivity, advanced analytics, automation, and advanced manufacturing technology that has been revolutionizing global business for years². While small and medium-sized businesses (SMEs) may face challenges in adopting Industry 4.0 due to limited resources and knowledge, there are also advantageous trends for them. These include new business models, value-added services, networking, collaboration, increased flexibility, and enhanced quality¹.

SMEs should not underestimate the potential of Industry 4.0. By investing in research and development related to Industry 4.0, they can tap into a market with an estimated value creation potential of $3.7 trillion for manufacturers and suppliers by 2025². This represents an unprecedented opportunity for SMEs to innovate and compete globally.

In conclusion, Industry 4.0 is not a mere buzzword but a necessity for manufacturers aiming to remain competitive and drive growth. With the significant costs associated with unplanned downtime and the tremendous potential of Industry 4.0, overcoming the challenges and embracing this digital transformation is essential. By adopting Industry 4.0 technologies, businesses can unlock increased productivity, customer satisfaction, and sustainability. SMEs, in particular, should recognize the beneficial trends and seize the opportunity to innovate and thrive in the global market. The future belongs to those who adapt and evolve with Industry 4.0.

If you have any further questions about Industry 4.0 or need more information, please ask!

MEMEX - Data-Driven Manufacturing Application

MEMEX’s Sales Execution Continue; Over $300,000 in Net-New Purchase Orders & Component Sales

BURLINGTON, ON / ACCESSWIRE / August 15, 2017 / Memex Inc. (“MEMEX” or the “Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, announced today that in the 30-day period ending August 14, 2017, it has received more than $300 thousand in net-new purchase orders and component sales. In combination with MEMEX’s previous press release, the Company has announced in excess of $780 thousand (at today’s exchange rate) worth of purchase orders since July 12th, 2017.

“An increasing number of manufacturers are recognizing the compelling value proposition of IIoT and Data-Driven Manufacturing, leading them to select MEMEX as their vendor of choice,” said MEMEX President and CEO, David McPhail. “The Company has experienced an increase in purchase activity from multiple end customers that represent a diverse set of manufacturing sectors including oil and gas, industrial pumps, and industrial painting equipment. MEMEX’s MERLIN Tempus continues to offer our clients the capability to gain new, real-time insights into exactly what is happening on their factory floors, whether they are physically onsite, or observing their operations remotely. Our unsolicited, inbound inquiries continue to increase, as do client referrals, and current customer site expansion opportunities. When these sales activities are combined with our diligent trade show and thought leadership marketing efforts, designed to secure more sales opportunities and bring on additional new customers, we believe that the recent net-new orders are just the beginning.”

About MEMEX

Memex Inc. was founded with a vision to improve the way automated machinery and production equipment work and connect on the factory floor. Since then MEMEX has proved itself a pioneer in IIoT time and again. The company is committed to its mission of “successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. MEMEX is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real Time. MEMEX’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products have enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 per cent. For more information, please visit: www.MemexOEE.com.

For investor inquiries please contact:

Rashi Rathore, Marketing Manager
905-635-3040 ext. 103
Rashi.Rathore@MemexOEE.com

David McPhail, President & CEO
519-993-1114|
david.mcphail@MemexOEE.com

Sean Peasgood, Investor Relations
416-565-2805
sean@sophiccapital.com

MEMEX - Data-Driven Manufacturing Application

MEMEX Announces $500 thousand Deal with SEW-EURODRIVE for Plant-Wide Deployment of MEMEX MERLIN TEMPUS EE

Another MERLIN Pilot Transitions into Full Plant Rollout

BURLINGTON, ON–(Marketwired – Jul 12, 2017) – Memex Inc. (“MEMEX” or the “Company”) (TSX VENTURE: OEE) announced it has received a purchase order from SEW-EURODRIVE for $500 thousand (approx.) in a plant-wide deployment of MERLIN Tempus Enterprise Edition (EE) and MERLIN DNC software.

SEW-EURODRIVE, the Lyman, South Carolina-based producer of gearmotors and drive-based automation solutions, will install MEMEX’s machine-monitoring solutions onto most of the factory equipment housed in its 250,000 square-foot manufacturing facility.

“SEW-EURODRIVE researched very carefully for the right supplier of automated machine monitoring solutions and determined that MEMEX’s MERLIN was best able to capture the quality of data we were looking for,” said Jess Galloway, SEW-EURODRIVE’s Manufacturing Superintendent. Chuck Chandler, Plant Manager, added, “It is important for a world class manufacturing facility to have visibility of all operations and the use of these advanced data-driven manufacturing techniques extends our competitive edge.”

“We’re proud that SEW-EURODRIVE selected MEMEX after a thorough and careful competitive evaluation process,” said MEMEX President and CEO David McPhail. “SEW-EURODRIVE started with a MERLIN pilot, and has now committed to a full-plant roll-out of MERLIN Tempus EE and MERLIN DNC. This says a lot about how much value SEW-EURODRIVE places in the adoption of a data-driven manufacturing approach and in the MEMEX solution, in particular. We’re excited to work with SEW-EURODRIVE and are looking forward to helping this industry-leading manufacturer use data-driven manufacturing to achieve its business productivity and efficiency goals.”

About MERLIN Tempus Enterprise Edition and MERLIN DNC
The MERLIN Tempus Enterprise Edition works on MEMEX’s core MERLIN software platform, enhancing machine monitoring capabilities by adding additional metrics like Overall Equipment Effectiveness (OEE) — the industry standard measure of factory efficiency.

MERLIN DNC is a software plug-in to the MERLIN platform. It offers a browser-based interface that connects legacy CNC tools to modern networks, and allows CNC programs and data to be easily transferred.

About SEW-EURODRIVE
SEW-EURODRIVE is a world leader in drive technology and a pioneer in drive-based automation. Since introducing the gearmotor in 1931, the company has had a history of innovations, including the first variable speed gearmotor, early electronic drives, and the first motor with energy-efficient copper rotors. Over the last seven years, the company’s Lyman, South Carolina plant has more than doubled its manufacturing capacity to meet growing customer demand.

About MEMEX
Memex Inc. was founded with a vision to improve the way automated machinery and production equipment work and connect on the factory floor. Since then MEMEX has proved itself a pioneer in IIoT time and again. The company is committed to its mission of “successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. MEMEX is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real Time. MEMEX’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products have enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 per cent. For more information, please visit: www.MemexOEE.com

 

For investor inquiries please contact:

 

Rashi Rathore, Marketing Manager

905-635-3040 ext. 103

Rashi.Rathore@MemexOEE.com

 

David McPhail, President & CEO

519-993-1114

david.mcphail@MemexOEE.com

 

 

Sean Peasgood, Investor Relations

416-565-2805

sean@sophiccapital.com

MEMEX - Data-Driven Manufacturing Application

Podcast: The philosophy and application of data-driven manufacturing

David McPhail in conversation with James D. Sawyer – Editor Emeritus, Advanced Manufacturing

A manufacturing concern can get the greatest return on its investment by optimizing its overall equipment effectiveness, or OEE. In this podcast hosted for SME, MEMEX CEO David McPhail details the relationship between OEE and the Industrial Internet of Things (IIoT). Data, he explains, is what drives this relationship. Data-driven manufacturing consists of keeping track of everything that happens on the shop floor, and software, including MEMEX’s MERLIN Tempus solution, helps monitor and manage that data.