| | DECEMBER 202419CIOReviewTODAY'S MANUFACTURERS COULD REALLY USE A STRATEGIST ADOPTING A BIG-PICTURE MINDSET CAN HELP BALANCE SHORT-TERM PRODUCTIVITY WITH LONG-TERM NEEDS, HELPING TO DE-RISK AND FUTURE-PROOF A FACILITYWhen I joined our manufacturing operation in Orlando a few years ago, I was amazed at the innovative culture and mastery of day-to-day operations. The team planned out every activity in incredible detail, down to the minute, if not the second. I couldn't imagine improving on that level of execution. But as the plant's first full-time strategist, I saw an opportunity to get even more out of everyone's capabilities. The key was to complement operations acumen with a long-term strategic mindset. Developing our vision and using it as a guide would help channel and prioritize our day-to-day efforts, making us even more agile and resilient -- huge advantages when navigating today's dynamic technology trends and market conditions.Traditionally, manufacturers are driven to maintain margins by cutting costs and doing more with less. Such attention to detail is critical, but it's no longer sufficient. If a manufacturer focuses too much on the short term, they may miss out on long-term opportunities that aren't immediately obvious, especially those that require capital investment. Bringing in a strategist can help manufacturers identify wise spending choices for the long term, helping them invest effectively in new technologies and capture strong ROI.Building a business case for breakthroughsConventional wisdom says manufacturers should keep their machines running as long as possible, waiting to invest in new units until the old ones die. Saving on immediate capital costs has clear benefits, but it isn't always optimal. Strategists can help identify the best time to replace machines that are still in working order but are less efficient or productive than alternatives. They can also work with management to get beneficial but complicated and expensive projects off the ground. For example, our plant makes state-of-the-art gas turbines with blades and vanes that rotate at high speed in extremely high temperatures. Those components have 1/16-inch cooling holes that need to be cleaned periodically ­ not an easy job. We've always struggled to find and keep the people ­ we call them "blenders" ­ who can do this skilled but repetitive work. The problem got worse when the pandemic triggered a labor shortage. The operations team had explored a robotic solution years earlier, but the project never got off the ground. The strategy team revived the idea by developing a business case that highlighted the ongoing value of this one-of-a-kind robot, and ultimately helped secure the funding. Now a critical job will get done with remarkable precision, thanks to the latest computer vision and laser-guided technology, at a pace that doesn't slow production and will save consumable costs to provide a healthy ROI. Meanwhile, we'll build experience in automation and budgeting for large-scale projects, both of which will help us continue to design and implement valuable projects in the future. With the strategy team's assistance, Mitsubishi Power invested in a novel robotic system to clean the cooling holes in turbine blades and vanes and eliminate previous production delays.Finding opportunities in the big pictureA strategic mindset can help with much more than production-line bottlenecks. Strategists can also find opportunities in broader market trends. For example, sustainability standards and aspirations are forcing companies to think more carefully about the ways their manufacturing processes affect people and the environment. Strategic decisions to explore incorporating renewable electricity may help reduce emissions By Austin Daniels, Vice President of Strategy & Optimization, Mitsubishi Power AmericasAustin DanielsCXO INSIGHTS
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