Building a more productive, smarter and safer workplace

Transcription

1 Buildig a more productive, smarter ad safer workplace Digital techologies ca play a key role i drivig vital improvemets to both worker productivity ad safety. oit to Digital Maufacturig Jourey

2 A uderivestmet i digital techology desiged to improve productivity ca lead to icreased work hours, correspodig billig icreases, icreased operatioal expeses, schedule slippage ad lost reveue. Productivity is uder pressure The stark fact of moder busiess life is that productivity growth has slowed. Uited States Bureau of Labor Statistics productivity data sice 1964 shows that productivity growth, at oly 1.3%, is ow at the lowest poit sice the 1970s (calculated as the gross domestic product per hour worked). Ad that s despite all the iovatios we ve see i how compaies desig, build ad brig products to market. Safety remais importat While there has bee much work (ot all of it successful) to address productivity i recet decades, a strog focus o worker safety has cotiued to be a major focus for eterprises. As most orgaizatios kow, a set of comprehesive safety practices ad a reputatio for beig a safe workplace are importat to: hirig ad retaiig good people meetig the compay s obligatios to coform to statutory rules about employee safety reducig risk (to people ad property) ad possible litigatio Digital techologies ca help Noe of this is ew. What is ew, however, is the ability of all compaies across every busiess sector to use digital smart techologies to help make their employees more productive ad eve safer. The digital wave is more focused aroud ehaced customer experiece, efficiet supply chai operatios, predictive maiteace ad so o depedig o the idustry ad readiess of compaies. Esurig workers at site or plat are productive ad safe has log bee a key cocer ad it cotiues to be so especially for miig, eergy ad utilities, chemicals ad costructio compaies. However, compaies are t always ivestig i digital techologies for productivity ad safety improvemet at a rate that will do them the most good. A uder-ivestmet i digital techology desiged to improve productivity ca lead to icreased work hours, correspodig billig icreases, icreased operatioal expeses, schedule slippage ad lost reveue. Digital techologies ca also drive safety improvemets for compaies especially where third-party cotractors ad temporary workers form a sigificat portio of their workforce. So there are great opportuities worker productivity ad safety improvemets by gatherig data from various sources, coductig aalysis o it to geerate isights ad review best practices. Workplace complexity creates productivity ad safety challeges 2 Buildig a more productive, smarter ad safer workplace

3 Workplaces today are becomig ever more complex with a iflux of advaced tools ad equipmet, chagig job sites, exteral cotract workers, evolvig regulatory requiremets ad shortage of skilled labor. Due to these complexities, meetig the challege of effectively usig both labor ad equipmet ad providig a safe work eviromet remais a major area of focus for orgaizatios. You ca see the impact of this complexity i the umbers for productivity for the last 10 years from the US Bureau of Labor Statistics (Figure 1). The oly time there has bee a sigificat positive chage i productivity sice 2008 was i 2010, followig the huge ecoomic dowtur i 2008 ad Figure 1: Labor productivity (output per hour), ofarm busiess, percet chage from same quarter ad from previous quarter (aual rate), 1st quarter Percet chage from same quarter a year ago Percet chage from previous quarter (aual rate) Q Q Q Q Q Q Note: Shaded area represets recessio, as determied by the Natioal Bureau of Ecoomic Research Source: U.S Bureau of Labor Statistics 3

4 Figure 2: US Bureau of Labor Statistics: Occupatioal Ijuries ad Illesses Maufacturig Costructio Natural Resources & Miig Numbers cited i '000 The oly time (i the last decade) that there has bee a sigificat positive chage i productivity was i 2010, followig the huge ecoomic dowtur i 2008 ad Had-i-had with this slow productivity growth are occupatioal safety umbers from the US Bureau of Labor Statistics (Figure 2) that showed very little chage betwee 2011 ad 2016 with various types of occupatioal ijuries ad illess icidets slightly risig i some sectors (such as costructio ad atural resources/ miig) while slightly fallig i maufacturig. The cost of a uproductive ad usafe workplace Productivity loss at a workplace due to safety-related icidets leads to schedule slippage ad reveue leakage, evetually havig a measurable impact. Just how costly are those icidets? The huma toll is obviously sigificat ad so is the fiacial oe. The US Departmet of Labor estimates that orgaizatios pay almost $1 billio per week for direct workers compesatio costs aloe. Ad accordig to 2017 Liberty Mutual Workplace Safety Idex, serious workplace ijuries cost US compaies $59.9 billio a year. To provide eve more detail, a study by Populatio Health Maagemet (published by the Natioal Ceter for Biotechology Iformatio, U.S. Natioal Library of Medicie), reports that overall health-related work losses are estimated to cost US employers more tha $260 billio each year, ad may cost some compaies more tha direct medical expeditures. They also impact labor costs ad productivity. To get a sese of the overall reasos for labor costs goig up ad productivity goig dow, cosider the observatios made i a February 2018 Reuters story about this tred. Ecoomists blame soft productivity o a shortage of workers, which could be a obstacle to faster ecoomic growth, Reuters reported. Other ecoomists also argue that low capital expeditures, which they say has resulted i a sharp drop i the capital-to-labor ratio, is holdig dow productivity. 4 Buildig a more productive, smarter ad safer workplace

5 Impacts are felt by both employers ad employees Debbie Michel, geeral maager of Liberty Mutual s Natioal Isurace Casualty operatio, explais the impact. Workplace ijuries impact both employees ad employers. Ijured employees face potetial physical, emotioal ad fiacial harm, she says i the aoucemet of the idex results. Employers face the direct costs of workplace ijuries medical care related to the accidet ad some portio of a ijured employee s pay ad the idirect costs, icludig hirig temporary employees, lost productivity ad quality disruptios. Makig the workplace safer ad more productive The key to beig productive ad safe at a work site largely relies o havig the right iformatio at the right time for workers ad supervisors. Real-time iformatio availability helps i efficiet plaig ad prevetig major icidets at the work place. Access to the followig ca help orgaizatios i havig a positive impact o productivity ad safety: Visibility of work place (Site or Plat) Visibility of work to be performed Real-time commuicatio Adoptio of techology These factors become eve more importat whe you look at the rise i umber of temporary workers ad third-party cotractors eeded to perform field service ad maiteace activities at may sites ad plats. This situatio demads visibility of the site or plat layout to esure safety ad greater productivity. How do you keep a workforce safe ad productive? Safety is esured by makig workers aware of restricted ad hazardous zoes i real-time ad prevetig them from eterig such areas. Visibility of asset locatio ad avigatio assistace esures workers reach the specified work locatio quickly, helpig boost productivity at work. Workplace ijuries impact both employees ad employers. Ijured employees face potetial physical, emotioal ad fiacial harm. Debbie Michel, geeral maager of Liberty Mutual s Natioal Isurace Casualty operatio Takig a more detailed look at each of the factors that go ito creatig a safer workplace provides isight ito the actios that orgaizatios will eed to take. Visibility of tasks ad progress trackig i real-time Ofte i maiteace activities, workers ted to receive paper-based task lists for the day. That works util a emergecy work order or task is pushed ad the the iformatio is ot available to the workers util they receive the paperwork for it. This leads to schedule slippage ad may have sigificat impact o cost. Also, timely availability of work iformatio ad progress is key i accomplishig tasks quickly particularly those which ivolve multi-skilled craftspeople. So usig a digital solutio to capture the real-time locatio data of workers or cotractors ca help orgaizatios sigificatly improve productivity ad safety. Safety ca be esured by geo-fecig hazardous areas ad triggerig automated safety alerts to workers i case of breach. 5

6 Various safety reports such as umber of breaches by site or plat, umber of breaches by workers, frequetly breached zoes or frequetly breached work hours ca provide orgaizatios deep isights ito the curret operatios ad shall help them to formulate appropriate safety guidelies. With the available locatio data, time ad motio-like study ca be used to perform worker movemet aalysis to provide isights o productive time spet, supervisorcrew productivity, idetify iefficiet work practices ad so o. Also, by providig real-time visibility ito the work orders for workers, it is feasible to track actual time spet agaist work orders, thereby elimiatig ay billig discrepacies alog with productivity improvemet. Overall real-time commuicatio Real-time iformatio ad otificatios o exteral factors (such as weather data) helps workers pla work ad be safer. I the case of a emergecy, the ability of workers to immediately reach out to safety persoel i real-time ca make a huge differece to the outcome. Alerts to workers o their key health vitals ad the broadcastig of safety evets to all workers at a site are key real-time commuicatios aspects to be cosidered aroud safety. Capturig ad commuicatig the evirometal variables ca help improve safety coditios at workplaces to great extet. Cetralized warig systems ca be established by capturig data from various sesors like temperature, humidity, toxic or hazardous gas ad worker s vitals too. By correlatig this data, cetralized ad early warig mechaisms ca reduce safety related icidets. Itegratig weather iformatio with the system helps compaies to be prepared for ay catastrophic icidets ad provide early alerts to workers ad supervisors. Figure 3: Digital Orgaizatios Outperform their Peers Digital Orgaizatios All Firms 90% 70% 80% 90% 80% 41% 35% 34% 46% 35% Customer Satisfactio Partership Relatioship Stregth Iovativeess Profitability Growth Source: Orgaizig for Digital: Why Digital Dexterity Matters Report, Capgemii Cosultig, Buildig a more productive, smarter ad safer workplace

7 Adoptio of techology Capgemii, i collaboratio with MIT ceter for Digital Busiess coducted a idepth research study to gai isights o the capabilities ad qualities of digital orgaizatios. The research shows that digital orgaizatios outperform competitors o key performace idicators (Figure 3). Workers should have access to the latest techologies such as wearables ad sesors that ca help improve productivity ad esure the greater safety of their workplaces. Compaies where operatios are diverse across geographies must leverage latest digital techologies to gai visibility ito operatios i real-time to take timely actios (Figure 4). Figure 4: Productivity & Safety meet Digital Techologies Real time Alerts! Alerts & Isights from Cloud Workers/ Cotractors Assets/ Equipmets Eviorometal Data Locatio Data Workorder Data Asset Parameters Ilie Aalytics Quick ad low-volume Product Safety Cloud Big data Aalytics Detailed ad High Volume Reportig Time spet at Work Zoes Activity build-up Report Wrech Time Report Extesive Safety breach Report Asset Locatio Itelligece WorkOrder Time Trackig Report Device/Sesors Commuicatios Data Aggregatio Data Aalytics Itegratio Device & Sesor Selectio Security Protocol selectio ad Maagemet Device Maagemet Stream computig Security Framework Rule Miig Predictive Modelig EAM, EMS Cost effective sesors are available that ca track locatio, capture atmospheric gas level ad trasmit it to a cetral data repository. Data from these sources ca provide real-time visibility to supervisors ad workers offerig isights such as safety zoe breaches, alerts o health vitals ad otificatio o ew work orders assiged. Here s how it might work: Oce the data from all sources reaches the cloud, alerts ca be triggered to the device or edge after miimal data processig at the cloud. This ivolves aalyzig a combiatio of data ad patter matchig to provide alerts ad isights to the workers ad supervisors. This ca iclude aalyzig the speed ad directio of the worker ad provide a early warig o the hazardous zoes earby, avigatio assistace to the asset or equipmet depedig o the work order assiged, cetralized warig mechaism i case of hazardous gases exceedig the threshold ad emergecy work order beig pushed. Digital orgaizatios outperform competitors o key performace idicators. 7

8 Drivig adoptio of Productivity & Safety digitizatio For a orgaizatio to start digitizig its productivity ad safety operatios, a Proof of Value ad scale up approach makes the most sese. This process starts by idetifyig a specific use case for a pilot site for a closed group of workers. It ivolves device selectio based o the use case, site selectio ad the desired reportig ability. It is desiged to provide immediate value for orgaizatios by uderstadig the existig work practices ad idetifyig key areas for improvemet. Upo successful value realizatio, the scale up pla ca be created with use case extesio ad rollig out to a larger workforce across work sites or plats (Figure 5). The key for successful Proof of Value implemetatio ad scalig up is selectig the appropriate sesor or wearable from a wide rage of available techologies. Figure 5: The Value of Digitizig Productivity & Safety Descriptio Beefits Operatioal Beefits Reduced cotractor billig leakages by improvig time spet o site Improve wrech time Work Order visibility Asset locatio visibility Improved worker disciplie Reduce time take by cotractors to clock i (i lieu of maual clock i) Improved plaig ad schedule compliace thru time ad motio data Reductio i cotractor billig leakage by 6% Improvemet i Wrech time by 10% Improved Schedule compliace by 3-4% Beefits from Safety Reductio i icidets Reduced impact of icidets thru real time commuicatio Improved productivity durig site wide disruptios People recociliatio i Muster Area Improvig safety behavior ad root causig of icidets Improved Worker Safety & Reduced costs o Safety Icidets *Prevetio of a fatal icidet will save up to $900,000 Capgemii s Digital Productivity ad Safety Solutio Capgemii s Digital Worker ad Equipmet Maagemet solutio is a wearable ad cloud-based offerig aimed to promote safe ad productive workplace for Chemicals, Miig, Costructio, Eergy & Utilities ad Maufacturig orgaizatios. The solutio eables real-time trackig of workers ad equipmet i plat facilities, captures ad tracks time spet o work orders, provides proximity alerts ad otificatios ad comprehesive productivity ad safety reportig. Capgemii maitais a comprehesive repository of sesors ad has developed a sesor selectio framework to assist compaies i idetifyig the most appropriate oe based o the requiremet for Proof of Value ad larger roll-outs. 8 Buildig a more productive, smarter ad safer workplace

9 Case Study Capgemii implemeted the solutio for a leadig producer of fuels ad chemicals i North America. The cliet iteded to idetify cotractor productivity ad efficiecy improvemet opportuities, thereby modifyig work practices to profitably execute regular ad turaroud maiteace at the site. The major cocer area for the cliet was schedule slippage ad reveue leakage durig turaroud projects. Capgemii rolled out the Digital Productivity ad Safety solutio by provisioig Adroid-based smart watches for cotractors across sites to eable trackig, log i ad log out work time. Various productivity reports were developed to idetify time spet by cotractors i various zoes ad idetify ramp-up ad ramp-dow time. Based o the isights provided by the solutio, the cliet was able to idetify major improvemet areas ad act o them. Improvemet i worker s time spet i productive or work zoes: up from 40% to 60% Improved ramp-up time to work: 80% of workers at work zoes withi 60 mis of log-i from 60% of workers at work zoes after 90 mis to 120 mis of log-i Coclusio Digital techologies ca make a huge differece i addressig the sigificat, pressig ad urget eeds of orgaizatios to become safer, icrease their productivity ad reduce costs. Implemetatio of these techologies requires a kee uderstadig of the overall problems you are tryig to solve i your orgaizatio, as well as how each of the techologies you are proposig to apply will help address those problems. That s why it s importat to start small with the suggested Proof of Value implemetatio, take learigs from that ad the use those to iform broader rollouts. Ad, alog the way, make maximum use of the data ad isights you geerate. They will guide you i the cotiued productivity ad safety evolutio of your orgaizatio. 9

10 About Capgemii A global leader i cosultig, techology services ad digital trasformatio, Capgemii is at the forefrot of iovatio to address the etire breadth of cliets opportuities i the evolvig world of cloud, digital ad platforms. Buildig o its strog 50-year heritage ad deep idustry-specific expertise, Capgemii eables orgaizatios to realize their busiess ambitios through a array of services from strategy to operatios. Capgemii is drive by the covictio that the busiess value of techology comes from ad through people. It is a multicultural compay of 200,000 team members i over 40 coutries. The Group reported 2017 global reveues of EUR 12.8 billio (about $14.4 billio USD at 2017 average rate). Lear more about us at Authors Mike Deis Solutios Leader Eergy, Utilities, Chemicals ad Services mike.deis@capgemii.com Chirath Ramaswamy Solutios Director Eergy, Utilities, Chemicals ad Services chirath.ramaswamy@capgemii.com Arvid Subramaia Solutios Maager Eergy, Utilities, Chemicals ad Services arvid.subramaia@capgemii.com The iformatio cotaied i this documet is proprietary Capgemii. All rights reserved.