Pain point, Gap analysis, dan

Strategi Transformasi
Industri 4.0

Pelatihan Transformasi Industri 4.0

Kemenperin RI

PT. Virama Karya (Persero)

January 12, 2022
 Introduction 2

Kemal Hadid Kemal Hadid

Was born in Subang, West Java and raised in several city including
Jakarta, Makassar, and Bandung

Mechatronics Engineer
 Swiss German University
 Fachhochschule Südwestfalen

Director Manufacturing and Process Improvement

Mattel Indonesia (2020-Now)
Experiences:
• Director Materials and Process Improvement – Mattel Indonesia (2018-2020)
• Senior Manager Process Improvement – Mattel Indonesia (2014-2018)
• Management Consultant for Mining, Telco, Logistic, Manufacturing, and Retail – Renoir Consulting (2014)
• Manager Quality Assurance – Mattel Indonesia (2012-2014)
• Quality Engineer – Mattel Indonesia (2009-2012)
2
Kemal Hadid Susena 12-Jan-22
Current situation: The competition

The best industries

are getting better,
and the worst are
getting worse

The COVID-19 crisis has intensified existing trends,

widening the gap between those at the top and
Source: McKinsey & Company
bottom of the power curve of economic profit.
What's the state of Industry 4.0 in 2021?
Significant shifts in Industry 4.0 adoption

At the same time most companies are struggling with getting to full value. Lack of
the clear strategy and action plan are the reasons. The Industry 4.0 clearly need
combination both technology and people.
General - Industry 4.0 SWOT Analysis

1. Data security in a cloud

1. Process efficiency leading to
2. Complex and costlier to implement
high precision and quality
and maintain
2. Less human intervention
3. Not applicable for all business (SME,
3. High customization
some sectors)
4. Reduced usage of energy
4. Less manual labor needed (Role of
5. Lean processes and easy
government critical)
monitoring
5. Industry 4.0 in the beginning – fear

S W of “baby” mistakes & Fear of

technology leads to non-
implementation

1. Low acceptance level from

workers
2. Competition: non-trust from
T O
competitors to share datasets
3. Outsourcing threat
4. E-commerce “return rate” as a
risk for environment
1. Competitive advantage due to
process efficiency
2. Knowledge based industry and
Hub
3. Flexibility remains key factor for
the manufacturing work
 is the driver, is the enabler
The approach: is the foundation

Approach digital holistically with a

clear vision and develop a phased

1 Business
transformation
roadmap

Approach the opportunity

“value backwards” – rather
than technology forward

3
Drive
transformation Industry Form comprehensive
from the top, 4.0 and scalable
communicate technology stack
success stories Organization
transformation
Build and lead a focused

2
Get ahead of the
Technology ecosystem of technology
capability gap and
transformation partners
build the culture to
sustain it
SOURCE: McKinsey

6
 3 main questions to ask before starting the transformation journey

Why What How

do I need to transform? do I need to transform? will I transform?

7
 3 main questions to ask before starting the transformation journey

Why What How

do I need to transform? do I need to transform? will I transform?

Current state Where to go How to start

Understanding end-to Develop business Review of existing

end value streams deliverables initiatives

Pain points Consider required IT Prioritization of

and OT changes solutions

Digital maturity and Engage transformation Create digital

organization assessment partner governance team

8
 Building blocks of Digital Transformation

Customer Operational
Business Model
Experience Process

Customer understanding Process digitalization Digitally-modified business

• Performance improvement • Product/service augmentation
• Analytics-based segmentation
• New features • Transitioning physical to digital
• Socially-informed knowledge
• Digital wrappers

Top line growth Worker enablement New digital business

• Digitally-enhanced selling • Working anywhere anytime • Digital products
• Predictive marketing • Broader and faster communication • Reshaping organizational
• Streamlined customer processes • Community knowledge sharing boundaries

Customer touch points Performance management Digital globalization

• Customer service • Operational transparency • Enterprise integration
• Cross-channel coherence • Data-driven decision-making • Redistribution decision authority
• Self service • Shared digital services

• Unified Data & Processes • Business & IT Integration

Digital capabilities
• Analytics Capability • Solution Delivery

12-Jan-22 9
 How to choose Industry 4.0 project

VS

Quick Win Transformation

High readiness of Industry 4.0
Low impact to business
1. Not main business processes
2. New business initiatives that will bring new
equipment and technology
3. Simple and low investment
4. Common in several industries
High impact to business
Low readiness of Industry 4.0
1. Main business processes
2. Existing business model that use legacy equipment
and technology
3. Complex and Inter department impact
4. Specific to industry category
10
Data said that digital transformation is hot, but the success rates are not.

Top five success factors

are:

1. An integrated strategy
with clear transformation
goals
2. Leadership
commitment from
CEO through middle
management
3. Deploying high-caliber
talent
4. An agile governance
mindset that drives
broader adoption
5. Effective monitoring of
Source: BCG, 2020
progress toward defined
outcomes
Several challenges need to be addressed
Industry 4.0 - External Factors: Business is forced to drive change

Consumer Employee
Behaviour Mindset

Interconnected Speed of
Global System Change

Technology New Markets

Status Quo
Changes New Players

Security Global
Risks Players
Source: SAP
Industry 4.0 - Internal Factors: Organization culture often prevents
innovation and change

Silos
Mentality

Think

Lack of Focus Low Employee

On Users Engagement
Implement

Status Quo

Source: SAP
Constraint during implementation stage – survey by MDPI in 2020
Constraint during later stage – survey by MDPI in 2020
Where change management needed for Digital Transformation

CHANGE MANAGEMENT

PROJECT MANAGEMENT

17
Why change management is important?
6 Components of Project Management Overall Approach

Build a
Initiate the
Business Plan Implement Close
Project
Case

Ensure Efficient Change Management

19
1
2

PROJECT
MANAGEMENT
3

a current state -> future state

20
 1 2

CHANGE
MANAGEMENT
3 4

getting a critical mass of people

to be committed to the change
involved
21
 People Engagement is the critical aspect of
change management… Including Industry 4.0
22
Change Management considers that the acceptance of the changes/solution is vital…

Acceptance Effectiveness
Quality of of the of the
the Change Change Change

The projects will achieve acceptance by:

• Engage our people to do the problem statement (create awareness of the problems)
• Involving people in the solution development (buy in of the changes)
• Focusing on appropriate management styles (situational leadership) to ensure people
understand and are able to use the solutions
• Achieving results through the people and making them feel the benefits

23
The Stages for Changes
Four stages of change Four different management styles
Unable Able Unable Able
Aware

Aware
Understanding Usage Coach Support

Unaware
Unaware

Compliance Culture Direct Delegate

very often Delegation Management Style is used on Compliance Mindset

Outcomes
Strong Project / Program Outcomes
• High control • On time
• Low ownership • On budget
• Results focused and measured by tasks • Business objectives achieved
• Spotty accountability • Human objectives met
Project Management • Frequent changes to scope, budget, • Next project, program or initiative
and schedule implemented

• Project failure • High commitment

• Wasted resources • Less than optimal efficiency
• Next project more difficult to • Inconsistent results
implement • Potential for scper creep
• Future at risk

Weak Strong
Change Management