Article by Anthony Mittelmark, Fujitsu Oceania, Chief Technology Officer for Retail and Commercial
The Australian manufacturing sector is in a state of emergency. Insolvencies have tripled in two years since 2022, and the industry is battling a perfect storm of labour shortages, supply chain disruption, and skyrocketing inflation.
The federal government has launched the Future Made in Australia initiative, the cornerstone of its 2024 budget to revitalise the sector.
At a time when the government is investing heavily in manufacturing, this as a great opportunity for manufacturing companies to invest in reinvigorating their operations, especially focusing on their biggest asset – their workforce.
Elevating employee experience with data and AI: Two stones with one bird
The Australian manufacturing sector is facing a critical workforce crisis. The ABS Labour Force Survey reveals a staggering 11.5% decline in employment over the past two decades, fuelled by gender disparity and lingering COVID-19 job losses.
The solution? Elevate employee experience.
Employees are at the core of business performance. Gallup’s research proves it: engaged employees drive a whopping 147% higher earnings per share and 21% greater profitability.
This is your chance to turn the tide. Data and AI are your secret tools to improve employee experience.
The first step? Start with data
The first step in this journey is through data. A robust employee measurement model is the foundation for building a truly engaged and thriving workforce.
Here’s how to get started:
- Gather valuable insights: Use surveys, pulse checks, onboarding feedback, and exit interviews to understand employee sentiment.
- Go beyond the numbers: Key metrics like employee net promoter scores, employee satisfaction indices, turnover rates, and absenteeism can provide a comprehensive view of your workforce’s “health.” But don’t just focus on the metrics – look for the underlying trends.
- Create a data-informed culture: Harness the power of data to create a truly employee-centric culture and unlock the hidden potential of your workforce.
AI will improve efficiency and profitability
Combining data with AI is the next step to elevate a manufacturing unit. Here we’ve provided some ways manufacturers can use AI to revolutionise their workplace.
Preventing turnover before it happens
AI can analyse employee data to identify potential flight risks. This allows you to intervene early and address concerns, keeping valuable talent on board.
Once AI has identified flight risks, it can help with offering personalised engagement initiatives to keep high-risk employees engaged and motivated.
Consider this scenario: AI detects that a seasoned machine operator, who has consistently excelled, is now logging increased overtime while productivity has declined. Rather than waiting for this employee to express dissatisfaction, the AI system can recommend tailored interventions to keep the employee engaged and motivated.
AI improves worker safety and compliance
Safety is paramount at any point of the manufacturing chain, however traditional safety measures are no longer enough.
AI-powered sensors and cameras are your eyes and ears on the factory floor, constantly monitoring compliance with safety protocols and providing real-time alerts. By analysing historical data, AI can even predict potential hazards before they occur.
A real-life application of this technology is Fujitsu’s Kozuchi, a cloud-based AI platform. When integrated with ServiceNow’s Occupational Health and Safety solution, it serves as an advanced safety management system that enables real-time monitoring of workplace conditions.
This proactive safety management fosters a culture of security and trust among employees, leading to higher engagement levels. AI-driven safety measures will also make manufacturing environments more appealing to diverse workforces, potentially encouraging more women to join the industry.
AI boosts productivity
AI is emerging as a vital tool for optimising productivity within manufacturing operations. By analysing workflows, equipment usage, and task completion rates, AI systems can pinpoint bottlenecks and recommend adjustments that streamline operations.
For example, Fujitsu’s AI-based quality inspection solution is revolutionising manufacturing lines for REHAU Industries in Germany, one of the world’s leading polymer manufacturers.
Previously, quality control at the firm relied heavily on manual checks, which were time-consuming and prone to errors, often catching defects only at the beginning or end of production. The new automated system now detects over 99% of defects in real-time, ensuring consistent quality and reducing the risk of costly production errors.
This transformation not only enhances product quality but also frees up workers to focus on higher-value tasks. This helps boost employee productivity and ultimately drive sustainable growth for REHAU.
In addition, AI tools help provide real-time feedback to employees on their performance, helping them identify areas for improvement and optimise their performance.
AI also equips managers with the insights they need to make informed decisions about staffing and resource allocation, ensuring a responsive workforce that can adapt to changing demands.
Employee experience is the key to business success, now more than ever
Globally, manufacturers are already embracing AI: Over half of European and North American manufacturing companies are already using AI to boost employee productivity, while over 30% are using it to create better work conditions.
Australian businesses have a burning platform to catching up.
By integrating AI into employee retention strategies, workplace safety protocols, and productivity enhancement, the Australian manufacturing sector can harness the power of technology to create a more engaged, secure, and efficient workforce.
This approach not only addresses current challenges but also positions companies for sustainable growth and success in a competitive landscape.
The impact extends beyond just workforces. Happy, engaged employees lead to increased customer satisfaction and long-term business success.
Investing in AI today can help secure the future of your manufacturing business.
