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Innovations of Industrial Workers. Abhijit Roy CINE 21.02.2009. Shop Floor – Source of physical labor or Continuous innovation?. Innovation only in R&D lab? Shop floor - one of the major source of innovation
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Innovations of Industrial Workers Abhijit Roy CINE 21.02.2009
Shop Floor – Source of physical labor or Continuous innovation? • Innovation only in R&D lab? • Shop floor - one of the major source of innovation • Exploring shop floor innovations and integrating them with company’s long term strategy • lead to long term sustained competitive advantage
Source of innovative ideas http://www.killerinnovations.com/blog/reblog/2006/06/
Share of innovative ideas among employees http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0680070104.html
Obstacles to corporate innovation efforts http://www.killerinnovations.com/blog/reblog/2006/06/
Barriers to tap shop floor innovation • Lack of sharing • Generation gap – New age workers vs. old age workers • Rigid hierarchy • Language barrier • Lack of corporate culture • Dependency on latest technology • Dependency on external consultants? • Lack of investment
Importance of promoting Shop floor innovation • Cost saving • Proper utilization of limited resources • Developing a harmonious corporate culture and promoting team spirit • Drives culture of innovation • Improving productivity and process quality • Develop a sense of ownership among workers – more invovlement
Some corporate initiatives to explore shop floor innovation • Philips Electronics Company • New form of organizational structure to promote innovations from shop-floor workers • Mini-company concept at Roermond factory in The Netherlands • Product made in the factory - Ceramic multilayer actuators, an important device for inkjet printers • Rapid increase in demand for the product • Dynamic nature of market - Short time-to-market, high flexibility and tough competition • Close co-operation with the customer on product development Source:http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/0440100709.html
Philips – Contribution of Mini-Companies to Improvements/Innovations Source: http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/0140310305.html
Corporate initiatives to explore shop floor innovation • Tata Steel • Knowledge Manthan to promote innovations • “Aspire knowledge Manthan” launched in March, 2004 to capture tacit knowledge present in the shop floor and promoting sharing of the same with others • Mainly for non-IT literate workers • Workers will know best practices avilable in the organization itself Source: http://www.allbusiness.com/management/1081362-1.html
Corporate initiatives to explore shop floor innovation • I/N Tek, JV of Inland Steel and Nippon Steel in Indiana • Transformation of cold rolling steel process into a continuous process • Lot of time saved – from 12 working days to 10 minutes from start to finish • Unleashed collective intelligence of shop floor workers Source: http://creativeclass.com/rfcgdb/articles/When_lacocca_balked.pdf
Corporate initiatives to explore shop floor innovation • Honda • Automotive assembly complex at Ohio • Value shop floor workers knowledge due to their hands-on knowledge • Managers need to compulsorily listen to workers points and implement them Source: http://creativeclass.com/rfcgdb/articles/When_lacocca_balked.pdf
Corporate initiatives to explore shop floor innovation – Indian Experiences • Indian Oil • Workers involvement widened after implementation of Kaizen in refineries • One Point Lesson (OPL) scheme was promoted to tap workers subsist innovation • Proper recognition – good monetary incentive, best staff award etc • BHEL • Standing meeting to encourage sharing innovations of shop-floor workers • Encouraged sharing of ideas among shop floor workers
Corporate initiatives to explore shop floor innovation • TATA Group • Tata Group Innovation Forum to promote innovation – to explore different ideas and to explore lessons • Suggestion schemes • NTPC • Frequent workshops • Suggestion schemes
Recommendations to promote innovation • Proper utilization of suggestion scheme system • Close interaction between executives and workers • Recognition • More exposure to latest technologies and systems • Investment on human capital particularly shop floor workers is need of the hour Contd…
Recommendations to promote innovation • Meeting presided by shop floor worker at shop floor itself • Showing respect • Giving recognition for his work • Encouraging sharing of information • Presentations by shop floor workers at the workshops to the management executives • Sharing knowledge inputs • Honing skills of presentation • Informal meeting between executives and workers