ServiceNow: 4 benefits of a connected manufacturing workforce

The gap in manufacturing skills is expected to leave more than 2 million jobs unfilled by 2030, costing the U.S. economy up to $ 1 trillion, according to a report by Deloitte and The Manufacturing Institute.

When COVID-19 hit, approximately 1.4 million people lost their manufacturing jobs, according to the report. Although the industry has taken on many workers, hundreds of thousands of positions remain unfilled. Aside from layoffs, workers retired in bulk.

In response, manufacturers are working to change their processes related to acquiring, onboarding, and knowledge sharing. The emerging workforce will need to manage Industrial Internet of Things (IIoT) devices, use analytical tools to inform their decisions, and manage advanced technological operations — while keeping the lights open and training the next generation.

At the same time, manufacturers need to comply with emerging regulatory guidelines to improve safety and ensure compliance. To meet these needs, manufacturers are trying to build smart factories in the future.

Factory workers are an important part of this journey. After all, better enterprise resource planning (ERP) systems, manufacturing execution systems (MES), computerized maintenance management systems (CMMS), robots, conveyers, and machinery still require people to run everything.

Executives must work to build a connected workforce that uses digital tools to streamline processes and digitize knowledge. Let’s explore the four benefits of a connected manufacturing worker:

1. Reduced human error

In the coming years, manufacturers will need to hire new workers and upgrade their skills using on-the-job training. Experienced employees can quickly pivot to another production run or collaborate with the team, but new hires need extra help. As new hires speed up, they have the potential to make mistakes. According to the Department of Energy, 80% to 90% of downtime is caused by human error.

To minimize human error, manufacturers rely on standard operating procedures (SOPs) documented in paper manuals or verbally notified by employees. But with current labor shortages, and with the rapid evolution of manufacturing technologies, organizations cannot rely on institutional role and knowledge. Old SOPs can even cause hazardous conditions in the workplace.

A connected workforce that uses digitally recorded SOPs will make it easier to retrieve and deliver information. Digital workflows can seamlessly guide employees to perform tasks and procedures accurately, with easy accessibility from a laptop or mobile device. Digital record keeping and knowledge transfer prevents human error, provides intuitive training for new hires, and allows employees to keep up with evolving processes.


2. Supercharged efficiency

Creating a connected workforce breaks down loopholes and contributes to a better employee experience. Workers must communicate digitally and access information on a single platform — from their office, on the factory floor, or outside the premises.

Manufacturers should look at systems that connect and enable collaboration across ERP, MES, quality management, customer service, and customer relationship management (CRM). Easier collaboration and a clearer context will help employees make better, faster decisions, which will drive efficiency throughout the production team.

3. Improved OEE and COGM

Connecting plant operators using mobile digital tools allows work to be done faster, more efficiently, and at lower cost. Digital SOPs help ensure that even your newest hire takes the next best possible action. IoT insights, formerly confined to management dashboards, are turning into workflows that drive action on the factory floor.

Escalations are alerting operators to leave non-urgent tasks and rallies where they are most needed. Research has shown that these enhancements can result in a significant improvement in overall equipment effectiveness (OEE) and reduce the cost of products produced (COGM).

4. Increased routine and safety compliance

Manufacturers are burdened with huge regulatory reporting, from filling out forms to sending emails to making sure papers are signed. Moving those tasks online can ease the burden.

When simple tasks like 5S and safety inspections are digitized, the system ensures nothing is missed. Audible notes with time and date stamps are stored in the cloud. Issue reporting and alerts go to the appropriate teams, with appropriate escalation paths if responses are out of date.

Modify your operational processes

A connected workforce is the key to manufacturing success — allowing your team to drive better action on the factory floor. With all the information and feedback captured on one platform, built-in predictive intelligence analyzes trends and opens up opportunities for improvement.

Learn how the ServiceNow® Manufacturing Connected Workforce puts employees front and center, gives plant leaders visibility into processes and roadblocks, and gives workers the tools they need to succeed on the first day.

© 2022 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.

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ServiceNow Inc. this content was published to 24 January 2022 and is solely responsible for the information contained herein. Shared Public, unedited and unchanged, on January 24, 2022 16:13:02 UTC.

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Analyst Recommendations to SERVICENOW, INC.

Sales 2021 5 884 M

Net income 2021 236 M

Net cash 2021 1 671 M

P/E ratio 2021 431x
Yield 2021
Capitalization 101 B
101 B
EV / Sales 2021 16.9x
EV / Sales 2022 13.1x
Nbr of Employees 13 096
Free Float 99.6%

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Number of Analysts 36
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$ 507.74

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$ 719.85

Spread / Average and Target 41.8%

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