NOVEMBER 20219MANUFACTURING TECHNOLOGY INSIGHTSReal-time data allows for faster, more intelligent decision-making and process control throughout the organization. For example, the replacement of paper-based batch records with digital processes at one of our US production facilities increased the amount of work done right the first time to about 95%, up from 79% previously. Our goal is to apply digital best practices of this kind across our entire global network.In our move to smart factories, robots and virtual reality training are being used to reduce the production downtime required for maintenance, which frees up our people to focus their time on value-adding activities for patients. The Internet of Things (IoT)is also making our supply chains more transparent, slick, and reliable by tracking goods and keeping supplies replenished on a just-in-time basis.For clinical trial drug supply, we are using advanced analytics and modeling tools to more accurately forecast clinical trial drug supplies, reduce supply costs, and minimize waste at over 19,000 locations around the world.Our philosophy around innovation is to think big, start small, and then learn or scale fast. We've created digital lighthouses; we have five sites around the world that pilot digital solutions so that determine what is possible to introduce across our other sites, and how.As part of our smart factory acceleration, we are also making digital building blocks available across our Operations network. These are digital solutions, consisting of one or more digital technologies, that can be quickly adopted into a business process where it can create value and where there is an opportunity to optimize, transform, or completely disrupt the way we work today.Once a potential building block is identified, our operations transformation program confirms strategic alignment from a business and IT architecture perspective. Then, our digital lighthouses or sometimes other sites test it in a real setting and ensure it meets our security requirements. We are steadily building a catalog of these building blocks, so sites and functions can ultimately access them on demand. In addition, we are now accelerating our digital lighthouses in China and Sweden by deploying prioritized digital solution building blocks along the entire value chain at those sites. This enables us to learn and demonstrate how combining digital building blocks could exponentially enhance performance and deliver tangible results.We believe by focusing on these areas and by successfully combining digital technologies with a digitally enabled workforce, we will move from `doing digital' to truly `being digital.' We see the potential to deliver a reduction in lead time, an increase in Overall Equipment Effectiveness, and an increase in productivity. While our acceleration of smart factories is part of a long-term digital transformation strategy, it is already delivering promising results for our global operations.So, what lessons can be learned from our experience? We're already learned a great deal in a short time. First, the agile approach to testing first, failing fast, and scaling is proving of real benefit. Second, identifying and investing in the right technologies to pilot and implement digital transformation is key. And last, we've learned that in order for digital transformation to truly succeed, we must invest in our people and their capabilities, and bring them along on our strategic journey.The manufacturing industry as a whole is facing huge challenges in bringing the way we produce and operate into the future. While the pharmaceutical industry faces unique challenges in innovating the delivery of medicines to patients, I see many shared opportunities and ways to learn from each other as new technologies are introduced. Real-time data allows for faster, more intelligent decision-making and process control throughout the organization Gurinder Kaur
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