Industry 4.

0
The Quality Professional’s Future

Presented by Peter Merrill - Chair, ASQ Innovation Think Tank

Hosted by Pablo Baez, ASQ
 About Peter Merrill
• Founding Chair: ASQ Innovation Group
• Current Chair: Innovation Think Tank
• Author of Quality Press books:
– Do It Right the Second Time
– Innovation Never Stops
• Quality Progress: Innovation Columnist
• Twice chair of ASQ’s Toronto section
• President of the consulting firm Quest
• A member of the team that wrote the
– ISO 9000:2015 standard
• A graduate of the chemical engineering school
of the University of Birmingham in England.
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 Global Change

 Digitization

 Market Change

 Social Change

 Perfect Storm of Change

 Leading to more Change

It is not the strongest that survive,

nor the most intelligent,
but the one most responsive to change.
- Charles Darwin
Change Creates Need
 Respond by Innovating
 Range of understanding
 Number of definitions
 Like Quality

 Essential elements:
 driven by an unmet need
 create something new
 ‘the new’ creates benefit
 radical change in ‘doing’

 Entering Industry 4.0

Industry 4.0
4thIndustrial
Revolution
 Internet of Things (IoT)
 Big Data
 Artificial Intelligence
 World without Work
 Social Issue
 Opportunities
The Evidence

 Smart Phone
 Fitbit
 Smart Watch
 Auto Electrification
 Global Warming
 3D Printing
 I.o.T. Factory…
Internet of Things
 Network of physical objects
 devices, vehicles, buildings etc.
 Connectivity, embedded with
 electronics, software, sensors
 Enables
 collect and exchange data
 Allows objects to be
 sensed and controlled remotely
 Direct integration of
 physical world with IT systems
 Smart
 grids, homes, cities, transport
Smart Factory
 Connecting
 cyber-physical systems
 Virtual Models
 to operate
 Data analysis
 immediate decisions
 Independent decisions
 Internet of Services
 Flexibility
Challenges
 IT Security
 IP Protection
 Dark Side
 We can find a café
 Terrorists find each other
 Deep Web
 Benefit
 Big Data….but
 New Skill Sets needed
Big Data
 Big data influence
 (from IoT)
 Economic apps
 Uber, Airbnb
 Multisided platforms
 Medicine slow
 (Part Privacy)
 Dangers
 Need Data Protection Stds
 Data Opportunities
Data Opportunity
 Rolls-Royce

 sensor technology
 identify engine problems early
 optimize maintenance

 New business model

 retain engine ownership
 provide maintenance
 single fee from hours flown
 better inventory management
Data Opportunity
 UK “White Van Crowd”
 delivering from e-retailers
 roadway congestion 
 London Council
 Agile Urban Logistics project
 delivery data + traffic data >>
 shared-delivery services

 Vodafone, phone co.

 identify drivers speed
 pinpoint traffic jams
 TomTom, GPS provider
 TomTom buys information
 tell users where jams are

 Data Fuels A.I.

Data Fuels A.I.
 Artificial Intelligence (A.I.)
 Alan Turing
 Theory of Computation
 Binary Notation
 ‘Imitation Game’/Enigma
 1955 Intelligent Machines
 1974, 1987 A.I. ‘Winters’
 Post 2000 computer power
 Aims of A.I.
 Reasoning
 Solve problems
 Move objects etc.
A.I. Subfields

 Computer Science
 Mathematics
 Psychology
 Linguistics
 Philosophy
 Neuro Science
Current A.I.
 Search Doc’s
 Speech Recognition
 Digital voice assistance

 Computers play chess

 Driverless cars
 Robots can do simple stuff
 Can read simple emotions

 Humans - fast intuitive judgement

 Middle skill customer service
 Replace by A.I.
 Stephen Hawking warning
 No moral responsibility for A.I.
A.I. Challenges
 Nothing simply true or false
 ‘Common Sense’
 We have large knowledge base
 Instinct
 Chess player see’s threat
 Artist sensitive to colour
 Learning
 Computer to learn by reading?
 Future Challenges
 Social Intelligence, Creativity
 General Intelligence
Future of Jobs; WEF
 Keynes – 2030 – 3 hours a day
 7 million jobs will go in 5 years
 35% UK, 47% US workers lost

 Jobs in 10 years
 65% of these Jobs don’t yet exist

 Downward pressure on low pay

 US ‘On-shoring’ from India and China

 I-Pad Menu
 Robot serving Restaurant meal?

 WEF Report – ‘Future of Jobs’

World without Work?
 Work gives our lives meaning
 Kill jobs – Increase inequality
 Long term unemployed are giving up

 Super wealthy and poverty

 Major Social Pressure

 Need skill and adaptability

 Education still in 20th Century
 E-Learning still clunky
Major changes will occur in the next five years….
Major disruption in US and Asia
Engineering and Mathematics grow – Office and manufacturing decline
Not Just STEM; Top 10 Personal Skills

In 2015 In 2020
1. Complex Problem Solving 1. Complex Problem Solving
2. Coordinating with others 2. Critical Thinking
3. People Management 3. Creativity
4. Critical Thinking 4. People Management
5. Negotiation 5. Coordinating with others
6. Quality Control 6. Emotional Intelligence
7. Service Orientation 7. Judgement, Decision Making
8. Judgement, Decision Making 8. Active Listening
9. Active Listening 9. Negotiation
10. Creativity 10. Cognitive Flexibility
Complexity & Problem Solving

 Systems are Complex

 Set of interrelated & interacting elements
 Processes, people or technology
 Elements must be linked
 Deming; 90% of process problems
 Due to the system
 Cause and Effect are often not adjacent
 A small event at one end of a system
 Major consequence elsewhere in system
 Often called the 'Butterfly effect'
 Need to understand Complexity

References; ‘Chaos’ by Gleick and ‘Linked' by Laszlo-Barabasi

Complex
Problem Solving
 Natural for Quality
 Understand Complexity
 Understand system purpose
 ISO management systems
 Balance holistic, analytical
 Problem
 often due to links breaking
 Tend to focus on a process
 Should focus on links
 transfer of information.
Creativity
 For complex problem solving
 IBM CEO Survey 2010
 PWC CEO survey 2014
 People Engagement
 Collective knowledge
 Leads to radical solutions
 We’re born creative
 “nurtured out” through education
 Restore creativity
 Theatre, writing and painting
 Exploration, Collaboration
 Experimentation
Creative solutions

 Produce solutions through

 imagination and
 unconventional approach
 Occurs when we
 Have freedom to think
 interact with new stimuli
 Daily work removes freedom
 Step out of the box
 Use Collective knowledge
 go ‘right brain

Einstein; No problem can be solved with the

same level of consciousness that created it
Emotional Intelligence
 Be able to work well with others
 Be aware of one's emotions
 Manage them
 Express one's emotions
 Empathy, understanding of others
 Increases with creativity
 Google; Emotional Intelligence
 Score yourself
 Find the areas to strengthen
 Openness to experience?
 Conscientiousness, being
agreeable?
 2x importance technical
competence?
Innovation People

www.asq.org/innovation-group/self-assessment
Looking Forward
 Good to eliminate
 ‘Machine Adjunct’ work
 Work and income
 may separate
 ‘Non Manufacturing’ jobs
 STEM Skills
 Personal skills
 Entrepreneurship
 Digital Economy
 Entrepreneurial Opportunity
 New Technologies
 New Careers
Path Forward

 Self Assess (website)

 Think ‘Career’
 Join the Division
 Involve in a Project
To learn more…
Contact Peter Merrill:
• www.asq.org/innovation-group
• pm@questmgt.com
• http://questmgt.com/
• +1 905 335 2200

About the topic:

• Search ASQ’s Quality Resources
Center @ www.asq.org/quality-
resources/