Darshan Jain - Technology vs Process Improvement

Summary

In recent years, there has been a significant shift from traditional process improvement methods like lean, kaizen, and the Toyota Production Model, to a greater reliance on technology in operations. These traditional methods, while effective, are typically time-consuming. In contrast, technology offers faster solutions with potentially equal or greater payback, allowing for process automation without significant re-engineering. Operations have evolved over the last 20 years towards more immediate solutions facilitated by technology, reducing repetitive tasks and accelerating processes. This shift prioritizes quick consumer satisfaction and operational efficiency, shaping a new landscape where technology significantly disrupts traditional operation models.

Highlights

• Tech tools offer quick deployment compared to traditional process methods. ⚙️
• Operations now emphasize speed and efficiency, often through automation. ⏩
• The role of technology in operations has redefined job functions and expectations. 👩‍💻
• Consumer demand for quick services has propelled tech-driven operational changes. 🏃‍♂️
• Balancing tech advancements with traditional methods poses ongoing challenges. ⚖️

Key Takeaways

• The past decade shows a shift from traditional process improvements to technology-driven solutions. 🚀
• Automation is often favored over re-engineering slow, traditional processes. 🔄
• Tech provides instant solutions in operations, pleasing the 'instant gratification' culture. 📱
• There's a blend of excitement and concern over job displacement due to tech advancements. 🤖
• Traditional defect control principles are still valid, but less practiced with tech's rise. 🛠️

Overview

The past decade has ushered in a remarkable shift from traditional process improvement methods to technology-driven solutions in operations. Once dominated by methodologies like lean, kaizen, and the Toyota Production Model, the focus has now transitioned towards leveraging technological tools. This change provides accelerated efficiencies, enabling businesses to automate processes without extensive time or effort on re-engineering. The quick deployment and higher potential payback from technology have made it a formidable competitor to historical methodologies.

As operations evolve, businesses are increasingly prioritizing speed and efficiency brought about by technological advancements. The present-day operational landscape is marked by a preference for automation over manual intervention in repetitive tasks. This shift reflects a broader trend towards meeting consumer expectations for fast, reliable service—mirrored in the ubiquitous "apply online and get approved faster" services. While technology has undoubtedly disrupted traditional job roles, it aligns with contemporary demands for immediate solutions.

The interplay between traditional operational improvements and modern technology presents ongoing challenges and discussions. While some traditional principles remain relevant, their practical application is waning in the face of fast-paced technological disruption. This transformation generates mixed emotions, highlighting the excitement of rapid advancement alongside concerns over workforce displacement. As operations continue to progress towards tech-centric models, companies must navigate the delicate balance between embracing innovation and preserving valuable process methodologies of the past.

Chapters

• 00:00 - 00:30: Introduction to Process and Technology The chapter 'Introduction to Process and Technology' discusses the evolution and impact of technology in the last decade on industrial processes. It highlights traditional methodologies such as lean, kaizen, and the Toyota Production System, which have been prevalent for over 30 years. The chapter emphasizes a significant shift in the past ten years, focusing on optimizing these time-tested processes with newer technology advancements.
• 00:30 - 01:00: Technology's Advantages in Process Improvement The chapter focuses on the advantages of technology in enhancing processes. It discusses how technological tools can offer faster analysis and sometimes provide the same or a higher payback compared to traditional methods like Kaizen or Six Sigma. The narrative also mentions a shift in focus from process re-engineering to leveraging technology, noting that even if a process isn't perfect, technology can enhance it quickly and easily.
• 01:00 - 01:30: Automation vs. Process Re-Engineering The chapter discusses the choice between automating existing processes versus re-engineering them. It considers the method of identifying bottlenecks in a process and how automation can speed up the workflow without requiring extensive changes. The text also reflects on operational practices over the past 20 years, mentioning influences like Toyota and GE.
• 01:30 - 02:00: Technology's Impact on Six Sigma and Operational Changes The chapter discusses how technology has impacted Six Sigma and operational practices. While the principles of defect control remain relevant, they are not being widely practiced as technology has disrupted and re-engineered operations. This is driven by the expectation for rapid results, which technology facilitates.
• 02:00 - 02:30: Technology and the Transformation of Mundane Processes The chapter titled 'Technology and the Transformation of Mundane Processes' discusses the concept of automating repetitive tasks that humans often do without much thought. It refers to the idea of 'taking the robot out of the human,' where mundane processes, typically done by workers in industries like manufacturing and services, are automated. This shift allows workers to move away from repetitive nine-to-five tasks and potentially focus on more engaging or meaningful work. The chapter highlights how technology is influencing traditional job roles and changing how workers interact with their daily tasks.
• 02:30 - 03:00: Automation and the Changing Job Landscape The chapter discusses the increasing role of automation in the workforce, particularly in handling repetitive tasks that follow set business rules. It questions the necessity of human involvement in such tasks, arguing that people could better focus on roles that require cognitive judgment. An example is given with loan processing – if a loan exceeds $10,000, it requires supervisory approval, but if under $10,000 and the credit score is valid, it can be automated for approval. This highlights the shift towards automation taking over tasks that do not require human decision-making.
• 03:00 - 03:30: Impact on Consumer Society The chapter titled 'Impact on Consumer Society' discusses the transformation in service delivery brought about by technology. It highlights the role of software and automation in expediting processes that traditionally required human intervention. Examples given include the quick approval of mortgages, loans, or car leases, which can now be accomplished online or over the phone in record time—services that used to necessitate a visit to a bank branch. This shift illustrates significant changes in consumer expectations and interactions within financial services, reflective of broader impacts on consumer society.

Darshan Jain - Technology vs Process Improvement Transcription

• 00:00 - 00:30 basically saying that technology in the last 10 years it's been about technology where you have an understanding of what the process is and usually things like lean and kaizen and the toyota production model which we all now know for the last 30 plus years but really there's been a big shift in the last 10 years where all those things are so good
• 00:30 - 01:00 but they do take time they take time to analyze to have a kaizen advantage to do your six sigma style understanding where technology tools are much faster sometimes higher payback if not the same and you can deploy them with great ease so that's been where i've seen the shift and uh and i know the work that i'm doing today is less about process re-engineering and say you know what yeah your process isn't the great greatest by the time we
• 01:00 - 01:30 figure out what your process is where perhaps there's bottlenecks where it's broken we can just keep your process the way it is and automate it you're gonna get a x degree of acceleration in it without having to spend months and months trying to do all these changes so from an operations perspective it's been fascinating peter to see the last 20 years ops has been about again whether you credit toyota or ge these
• 01:30 - 02:00 influential companies to say we're going to really look at you know the six degrees of defect control all those principles are still valid but i don't see people practicing them very much technology has replaced as disrupted operations re-engineered because we just don't have the time the um people expect things done just tomorrow and technology luckily um is is doing that
• 02:00 - 02:30 we now call some of these technologies um really taking the robot out of the human so you probably heard that you know wow i'm a nine-to-fiver i go in i do my job i leave i live for the weekend you have a lot of workers whether they're in manufacturing or in the services industry and hey i get paid i just do my stuff the stuff that they do that they don't really have to think much about
• 02:30 - 03:00 we are now questioning all of these things because if they're mundane repeatable processes that they're following business rules wait a minute why do we have people who can do a lot more cognitive judgment based decision making basically following an if statement if the loan is over 10 000 pick it up to the supervisor not my concern if it's under 10 000 is the credit score valid yes yes no yes great approved
• 03:00 - 03:30 well guess what if that's what i have a person doing and actually have software doing it and we get it done faster so you've heard of these commercials hey call us or apply online and within an hour we improve your your mortgage or your loan or your car lease unheard of 20 years ago you have to go to a branch of a bank you'll see a loan officer you don't do any of that anymore so and guess what
• 03:30 - 04:00 now one side of me says well i'm sad about the person perhaps getting displaced but the consumer side of me says oh my god i'm not gonna wait weeks and weeks to see if my loan gets approved i can get the answer right now so we are as a consumer society instant justification uh instant um uh appreciation response and so that's the cycle that i'm finding so operations is just moving more and more towards that