It’s generally accepted that large organizations, for a host of structural and cultural reasons, are at a disadvantage when it comes to innovation. Less agreed upon is why their employees outside of R&D should care. Can’t acquisitions and partnerships make up the creative deficit?

Think again, counsels Manuel Sosa, INSEAD associate professor of technology and operations management, in a recent interview for the INSEAD Knowledge podcast. Sosa says that the fruits of innovation—novel, valuable products and services—should not be confused with the tree itself.

First and foremost, innovation is a process for conceiving “novel and useful” solutions, which is necessary for business and career success, no matter where you’re sitting in an industry or organization. The fruits can easily be bought and sold, but planting, cultivating, and harvesting know-how is far less transferable. For the neophyte, learning to innovate requires diligence, patience, and (most of all) direct collaboration with skillful role models.

In the context of our increasingly disrupted, globalizing, and multicultural world, quality leaders greatly appreciate the security and comfort of clear-cut strategic plans for the future. After all, following our in-the-moment intuitions frequently leads to business disasters, and strategic plans help prevent such problems.

Tragically, popular strategic analyses meant to address the weaknesses of human thinking are deeply flawed. They give a false sense of comfort and security to quality professionals who use them, leading them into the exact business disasters that they seek to avoid.

Take one of the most popular of them, the SWOT analysis, where you try to figure out the strengths, weaknesses, opportunities, and threats facing your business. SWOT doesn’t account for the dangerous errors of judgement revealed by recent research in behavioral economics and cognitive neuroscience, what scholars call cognitive biases.

Today, the survival of many organizations depends on their plans to leverage cutting-edge artificial intelligence (AI) technologies to transform their workplaces into augmented environments.

A recent IBM study found that, as a result of AI and intelligent automation, 120 million workers will need to develop new skills or even be transitioned out of companies to different jobs during the next three years. Half of the surveyed organizations had done little to rethink their training strategies to respond to this urgency.

For that digital transformation to happen, organizations must avoid the costly “buy, not build” talent strategy that involves opting for expensive new hires instead of retraining their current employees.

The Automotive Industry Action Group’s (AIAG’s) and German Association of the Automotive Industry’s (VDA’s) new Failure Mode and Effects Analysis Handbook (AIAG, 2019) offers significant advances over FMEA as practiced 15 or 20 years ago.¹ The publication is definitely worth buying because the new approach includes valuable methodology; this article will cover the most important points and highlights.

New features

The new process is qualitative rather than quantitative, which overcomes a major drawback of the previous approach. The older occurrence ratings were based on the probability of a failure, and the older AIAG manuals even tabulated recommended nonconforming fraction ranges. If, for example, the failure was 50 percent or more likely, the occurrence rating was 10 (worst possible on a 1 to 10 scale), while one or fewer per 1.5 million opportunities earned a rating of 1. These probabilities can be estimated from a process capability study, assuming that one is available; otherwise, one might easily have to guess.

If you are wondering whether your organization could benefit from formal root cause analysis (RCA) and corrective action training, read on to see if any of these issues are present in your day-to-day operations. RCA and corrective actions are some of the most useful tools for continual improvement.

Here’s why you should include them among your company’s (and all employees’) tool set.

1. High number of NCRs in your company

It’s true that the number of nonconformance reports (NCRs) will depend on the volume of operations a specific company has. Therefore, the “number” of NCRs is a relative figure. However, if you know you have a high number of NCRs, the issue may be that you are not performing effective RCA and corrective action.

If industrial manufacturing had a buzzword of the decade, it might be “Industry 4.0.” The concept is inescapable, yet it can be hard to define, especially for small and medium-sized manufacturers (SMMs). After all, SMMs’ capabilities, needs, and budgets look very different from the large companies that often drive the latest innovations and trends. However, Industry 4.0 is so pervasive that many smaller manufacturers know more about the technologies than they might think. Below, we define Industry 4.0, then explore ways that SMMs can and do implement it already.

What is Industry 4.0?

To date, there have been four major technological trends during the past few hundred years that have revolutionized industry and manufacturing. The first was the combination of mechanization with both steam and waterpower. The second joined mass production and electricity. The third was the rise of electronic and information technology (IT) systems, and with them automation.

As usual with Quality Digest’s diverse audience, this year’s top stories covered a wide range of topics applicable to quality professionals. From hardware to software, from standards to risk management, from China trade to FDA regulations. It’s always fun to see what readers gravitate to, and this year was no different.

Below are five articles that garnered a lot of interest from our readers. As you can see, the topics are quite diverse.

Improve Risk Management and Quality Across the Value Chain by Increasing Visibility
by Kelly Kuchinski

Eric, a 40-something married father of three, runs a successful startup. Given his demanding career, he and his wife decided she would be a stay-at-home mum. Eric believed the attention he devoted to his family was adequate, and that he had fully harmonized his work as CEO and life as a family man.

On a recent family trip, Eric continued working as much as he could, as he always did. While taking a conference call, he dropped his phone and, without hesitation, leapt to catch it at the risk of hurting himself. Seeing this, his 13-year-old son blurted out, “I don’t know if you would have jumped after me like that.” Only then did Eric realize that his son didn't think he prioritized their family. Eric had been oblivious that his family felt neglected; he had been unaware or was in denial.

After being an ergonomist for almost 15 years, I can honestly say I have never been more excited about the future of this field. When I first began working at Humantech and would do wall-to-wall assessments every week, I didn’t think I would last.

The pen and paper-based methods we used were often a little too simple to uncover all the risks that our professional experience taught us were present. I also had terrible handwriting and would often come back to the office after a data collection and not understand my own notes. Now, 15 years later, cutting-edge technologies make things more efficient. I wish I was still going onsite to do data collections because the process is so much better now. Here are three ways that technology has vastly improved the field of ergonomics.

Learning

Training has evolved over time, along with access to technology, and we have a better understanding of how adults learn best. While traditional training focused on telling, research is showing, and actions are proving, that we need to shift from instructor-led to self-paced and action-oriented workshops.

Earlier this year, the Minority Business Development Agency (MBDA), a part of the U.S. Department of Commerce, celebrated its 50th anniversary. The recognition is much deserved for an agency that has worked hard to strengthen minority-owned businesses. Through a network of centers and partners not unlike our own Manufacturing Extension Partnership (MEP) National Network, the MBDA works with minority-owned businesses to create and retain jobs, build scale and capacity, and increase revenues. The drive to increase the competitiveness of underserved businesses by leveraging a network is something that connects the MBDA and the MEP program.