DOWN THE LINE – Tima January ‘25 Newsletter
Welcome back !
I hope you all have had an enjoyable restful break with the family and friends.
In this newsletter we highlight the Governments recent changes that impact Manufacturing, Science and the Economy, some recent surveys regarding Business & Technology concerns and How we can help Manufacturers become more Productive and Profitable.
With the dawning of a New Year, the Govt has realised ‘It’s the economy stupid’ and has been busy making ministerial appointments finally focusing on the economy ‘A Growth Minister’ finally inside cabinet and a senior minister being the Finance Minister, a change to the Manufacturing Minister but still outside council and a another first a ‘Minister for the South Island’ and more changes afoot with mergers of 7 Science and Technology SOE’s into 3 Public Research Organisations and the disestablishment of Callaghan Innovation….
‘AgResearch, Manaaki Whenua-Landcare Research and Plant and Food Research will be focused on a “bioeconomy” PRO; Niwa and GNS Science on an earth sciences-focused PRO; and ESR on one targeted at health and forensic science.
A fourth would also be created to drive research on advanced tech like artificial intelligence (AI) and synthetic biology.
The plans also create several new bodies: an agency, named Invest NZ, will be set up to draw foreign investment for industries and tech, while a prime minister’s council would advise on science and innovation.
Luxon confirmed he will appoint another chief science advisor – a role that’s sat unfilled for more than six months.
But Crown-owned Callaghan Innovation, which employs several hundred scientists and staff, would be shut down and its key functions moved to other entities.
Science, Innovation, and Technology Minister Judith Collins, who is departing the portfolio, said Lower Hutt-based Callaghan had been spread too thinly across too many areas, leading to poor financial performance and an “over-reliance” on Crown funding.
In all, Collins said the reset would boost the country’s long-term economic performance and ensure scientists could pursue “meaningful careers” here.
Luxon said the Government’s focus was about “unleashing economic growth”.[1]
We will see if these mergers make a difference to improved productivity, improved business engagement and results to the economy… I feel for Callaghan, as I thought they were doing good stuff in the manufacturing sector and other sectors, I hope this good work doesn’t get diluted, lose steam and they don’t lose people …
In a recent survey “Economic uncertainty has surged to become the top concern for business leaders.
Some 77% of senior managers identified it as the primary threat to their organisation over the next 12 months, compared to just 13% last year, according to the latest Business Outlook survey by Curia for Datacom.
Curia polled 200 executives in firms with 100 staff or more during the final week of November.
The survey found respondents from larger firms (those with 200+ staff), were more likely to give the Government good marks for its performance so far, and were more likely to be optimistic about 2025.
What do you believe are the biggest technology opportunities for your organisation in 2025?
1. AI 46%
2. Automation 41%
3. Data optimisation 40%
4. Skilled workforce 39%
5. Future workforce 19%
6. Cloud optimisation 18%
7. Cyber security 16%
Going into 2025, what do you see as the biggest threats to your organisation over the next 12 months?
1. Economic uncertainty 77%
2. Cyber security 29%
3. People (current) 28%
4. Lack of budget 26%
5. People (future) 25%
6. Customer experience 20%
7. Geopolitical climate 19%
8. Ability to adopt 16%
9. AI uncertainty 12%”[2]
?Following on from this survey, MYOB expands on these challenges...
4 business challenges for mid-market enterprises
1. Doing business as normal is costing mid-market businesses
Inefficient and/or ineffective business and people management software contributes an average of 28% extra in costs.
Businesses that are hesitant to take advantage of modern technology not only halt their growth but also waste resources and incur unnecessary costs each year.
In fact, the study shows that for an organisation with 100 employees, 12.5 hours of wasted time per employee each week equates to roughly AUD $2.8 million per year in extra costs.
2. Business growth is taking a hit
94% or more recognise that the challenges they have encountered from their current business software have a negative impact on growth.
Mid-market businesses that continue to rely on desktop platforms or piecemeal integrations for their core systems are missing out on growth opportunities. Fully unified cloud platforms help businesses simplify processes, connect data, reduce manual tasks and unlock growth.
3. Businesses are falling behind their competitors
Businesses using future-fit platforms and practices grow 3.2 times faster than their industry peers.*
The study revealed that more than 50% of current business and people management solutions are still hosted on-premises with either siloed or make-shift integrations across separate solutions.
Put simply, businesses that fail to digitise their processes and transform their core business systems risk falling behind competitors that do.
* Source: “Beyond Agility – Adaptive Enterprises Hold The Winning Hand,” Forrester Research, Inc., May 7, 2019.
4. Business leaders aren't driving positive change
More than a third of decision-makers report leadership don’t fully understand the impact business and people platforms have on broader business goals.
领英推荐
In order to successfully convince business leaders to seize the benefits of a unified business and people management platform, decision-makers need to make a strong economic case for a technology pivot. Presenting a business case that clearly highlights the cost of inaction and how a centralised platform will unlock productivity, efficiency and revenue benefits is key to achieving buy in.[3]
A further explanation of why to invest in technology even during a recession…
Technology
Why do companies invest in technology during a recession when money is tight?
Economists theorize that it’s because their opportunity cost is lower than it would be in good times. When the economy is in great shape, a company has every incentive to produce as much as it can; if it diverts resources to invest in new technologies, it may be leaving money on the table. But when fewer people are willing to buy what you’re selling, operations need not be kept humming at maximum capacity, which frees up operating budget to fund IT initiatives without dampening sales. For that reason, adopting technology costs less, in a sense, during a recession.
‘The first reason to prioritize digital transformation ahead of or during a downturn is that improved analytics can help management better understand the business, how the recession is affecting it, and where there’s potential for operational improvements.
‘The second reason is that digital technology can help cut costs. Companies should prioritize “self-funding” transformation projects that pay off quickly, Katy George, a senior partner at McKinsey, says, such as automating tasks or adopting data-driven decision making.
The third reason is that IT investments make companies more agile and therefore better able to handle the uncertainty and rapid change that come with a recession. In manufacturing, “we are finally seeing uptake now in the adoption of digital and advanced analytics,” she says. It used to be that a manufacturer could be the cheapest in the market or could stay nimble—but not both.
Flexibility came with serious costs. However, digital technologies “create much more flexibility around product changes, volume changes, etc., as well as around movement of your supply chain around the world.”
That, in George’s view, is one way the next recession might be different from past ones.
Companies that have already made an investment in digital technology, analytics, and agile business practices may be better able to understand the threat they face and respond more quickly. As we’ve seen, recessions can create wide and long-standing performance gaps between companies. Research has found that digital technology can do the same. Companies that have neglected digital transformation may find that the next recession makes those gaps insurmountable.’[4]
[4] The Harvard Business Review article https://hbr.org/2019/05/how-to-survive-a-recession-and-thrive-afterward by Walter Frick May – June 2019
How Tima can help you to drive up Productivity
This is a 'Whole of Factory' focused process review, which entails reviewing all aspects of the manufacturing process including supply chain and your people, to ensure that whatever the products that the company is manufacturing is at optimal productivity, that they have the right people, the right strategy and the right tools to perform and through our extensive experience and networks we will assist with rectifying the identified needs.
Our globally seasoned executives who are GM’s, Manufacturing Managers, Factory Managers, Production Managers, NPD, CI, Engineering, Supply Chain, Marketing, Sales, IT & CFO’s solve Manufacturing Process & Productivity issues in;
What you get from our Review:
Our follow-on Transformation Programmes result in;
2. Technology
Our Manufacturing Execution System www.esCollate.com provide Factory Teams and Management with Real time Production data, Real time Decision making, improving Productivity and much more…
Responsive & Real-Time
esCollate streamlines the flow of information with
Designed for People & Productivity
User friendly touch screens to custom event logging (root cause, waste & people cost etc) to support the automated event logging.? The logging functions, with the display of key production documentation allows for paperwork to be eliminated from the factory floor.
Focus on Productivity & Communication
esCollate motivates and engages all factory employees (incl Operations, Planning, Engineering, QA, etc) by providing real-time messaging between factory team members & by the productivity feedback on local production performance, to manage your Factory Teams & resources.
Accurate & detailed reporting of Production Performance Metrics, allows management to make real time decisions to reduce downtime, improve production and productivity.
Our Successes
We would like to feature some examples of our success,
Beverages & Diary Co
For a small manufacturer of Beverages and Dairy Products we implemented our reporting and coaching program, resulting in the company increasing production by 58% and downtime has reducing by 74%.? We have identified further improvements in monthly cashflow of $250k - $500k.
Spice Co
For a spice Co we implemented esCollate & Tima services and over the course of a week they increased production across all shifts by 87.5%.
Fish Co
A Fish co had the opportunity to win a major contract to supply NZ & Australia Fast Food chain with a key product. The Fish Co implemented esCollate & Tima's services and production doubled from existing shifts in 6 weeks.
Biscuit Co
A biscuit co had purchased a biscuit line made for the US way of manufacturing biscuits vs Australasian manufacturing. The US vendor was experiencing all sorts of problems they had not experienced before. With the implementation of esCollate and Tima's services, production doubled over the course of the year post commissioning.
Canning Co
Implementing Tima's services & providing real time data from esCollate to all departments, over the course of the first 2mths of implementation the canning lines downtime reduced by 78% and keep it in check and just as importantly, OEE increased by 54%. Prior to implementation of esCollate the canning lines had not been above 50% OEE.
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If you’re wanting to improve your Manufacturing company’s Productivity, Technology and more importantly Profitability, then make contact today and we will turn your company around !
For more info contact Mark Edwards on 0274 833 275, email [email protected]? or visit www.tima.co.nz ???www.esCollate.com