The effects of a disengaged workforce that commits recurring errors are significant in manufacturing. Gallup estimates that disengaged employees cost the global economy $438 billion annually across industries. Usually, frontline teams lack practical tools for data collection, communication, and tracking improvement ideas. Which in turn leads to errors. But there are ways to mitigate this with the help of digitalization and more effective tools.
The numbers speak for themselves – the cost of workforce disengagement is $438 billion per year on a global scale. At the same time, 48% of manufacturers are dissatisfied with their frontline tools, rating them as average or below.
And there is a clear connection between these two figures. According to Beekeeper, “Frontline workers in manufacturing have limited or no access to systems, information, and resources needed.” There is also “a growing disconnect between frontline workers and management, leading to increased disengagement among frontline workers.” These factors, in turn, are resulting in frontline workers leaving their jobs at an exceptional rate. Almost half of the workforce leaves every year, resulting in $350 million in costs for an S&P 500 company.
The primary driver of most human errors and manufacturing downtimes is the use of analog workflows, with physical boards and checklists being the main culprits. We have previously written about how 23% of downtime originates from manual processes. (The Real Cost of Inefficiencies & Errors in Manufacturing)
Meviso success story: Rapala VMC Increased employee engagement and improved communication, leading to a more efficient operation.
Not having the right tools for the job affects manufacturers in multiple ways. Aside from the cost of disengagement, the lack of digital tools hinders continuous improvement (CI), as suggestions, ideas, and enhancements often get lost in Excel sheets or are ignored altogether.
By adopting an agile and digital approach to CI, manufacturers can achieve a 30% faster time to market and a 20% higher productivity compared to those using more traditional and rigid methods, according to McKinsey.
Meviso success story: Mevisio digitized Volvo Bil’s CI boards, enabling real-time suggestion tracking and transparent follow-up, increasing engagement and implementation rates.
In the report Digital Adoption: The Missing Link in Productivity Growth by Make UK, almost three-quarters (73%) of the responding manufacturers said that they believe that “failing to invest in new digital technologies would result in them falling behind their competitors.
67% of manufacturers confirmed that their investments in and adoption of digital tools enhanced their resilience against challenges, and 63% stated that these digital tools increased their productivity. Additionally, 50% of them said that their ability to maintain a five-year lead over their competition could be attributed to their investments in new digital technologies.
Many of the challenges presented in this text stem from the use of ineffective tools for data collection, communication, and tracking improvement ideas. Teams that use Mevisio get real-time transparency, fewer production disruptions, improved scalability, and efficient teamwork with high engagement. We promise four beneficial effects for your operation:
On June 30th, we’re introducing a brand-new way to get started with Mevisio, built to empower frontline teams with the tools they need to drive engagement, reduce errors, and accelerate continuous improvement from day one.