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Remote Virtual Expertise: Empowering the Next Generation of Global ManufacturersCisco Manufacturing White Paper

The Challenges in Manufacturing TodayNever before have global manufacturers confronted challenges as tough as the ones presented by the current global marketplace. Supply chains and distribution networks continue to grow longer and more complex. Competitive pressures are equally daunting, forcing manufacturers to innovate, build, and launch products with unprecedented speed.

Meanwhile, the profit imperative puts ongoing pressure on manufacturers to cut costs, boost productivity, and maximize asset utilization. Then there are tightening industry regulations, which create new demands in product quality, traceability, and reporting.

The reality is that most manufacturers aren’t equipped with the technical and human resources needed to address all of these priorities successfully. The workers and technicians who keep the factories and warehouses running are spread across continents, creating local shortages of talent needed to fix production problems. Dealers and distributors are also far flung, leaving many without sufficient know-how to support customers and close deals.

Bridging Distance: Cisco Remote Expert for Manufacturing

Engineer in Scotland Expert in San Jose

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ExternalCollaboration Acceleration

CostContainment

RevenueGrowth

Time-Value Bene�t AcceleratesEnables

Internal ProcessOptimization

Drives

In most cases, the required knowledge does exist in the organization, but the subject matter experts (SMEs) who have it may be located several time zones away — at headquarters, research labs, and centers of excellence. Compounding the problem is an aging workforce in many countries. Experienced engineers in North America, for example, are under pressure to train new talent and transfer technology and skills to emerging markets.

Travel has been the traditional way to bridge vast distances, but that’s becoming more expensive every year, not to mention more tedious and fraught with delays. These costs and logistics place natural limits on a manufacturer’s ability to deliver expertise where it’s needed most. In an industry that depends on speed and efficiency in every phase of the product and production lifecycle, the shortage of on-the-spot expertise can place huge constraints on manufacturers and ultimately hurt their ability to successfully compete.

Cisco Remote Expert For Manufacturing: A New Way To Accelerate ValueSo how do manufacturers optimize globally stretched production networks and supply chains in a world where expertise is both scarce and widely dispersed? A growing number of global manufacturers are turning to virtual and mobile collaboration solutions to bring experts “face to face” with colleagues, dealers, partners, and customers no matter where they’re located.

Among the most advanced of these solutions is Cisco® Remote Expert for Manufacturing, an enterprise-class, remote collaboration and communications platform that combines high-definition video, audio streams, and data capabilities. Market-tested video conferencing tools like Cisco TelePresence® and Cisco WebEx® — already used by millions worldwide — are also woven into the remote expert solution. Figure 1 illustrates the time-to-value benefit of the Mobile Video Collaboration platform.

As this paper will show, the Cisco Remote Expert platform accelerates time-to-value across the manufacturing value chain — from sales and engineering to customer service and dealer networks. Using this platform, manufacturers rapidly find experts — engineers, technicians, planners and troubleshooters — located anywhere in the world and deploy them instantly over the virtual platform to avert or solve production bottlenecks, to train workers, or even to help close sales deals.

Cisco is making it possible for organizations to “Work Your Way” when it comes to implementing the Remote Expert for Manufacturing platform. Put simply, Cisco is enabling a unified workspace experience for manufacturing workers that encompasses both their fixed and mobile devices (wired or wireless connections) and can be cloud-based, physical, or virtual in terms of the supporting IT and compute infrastructure. The platform also provides device flexibility for greater worker satisfaction and productivity, creating an overall network that is “borderless,” accepting all kinds of connection-ready hardware and allowing greater collaboration and faster response.

Figure 1. Business Value of the Remote Expert Platform

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The Remote Expert for Manufacturing platform empowers collaboration both within the enterprise and outside it. Inside the enterprise, the platform:

• Facilitates sales deals with the timely insertion of subject matter expertise

• Shrinks product development cycles and time to market

• Boosts production efficiency and other measures of overall equipment effectiveness (OEE), including uptime, quality and throughput

Outside the enterprise, the Cisco Remote Expert platform:

• Enables fast, efficient capturing of customer opinion and feedback to improve product quality and adjust business strategies

• Provides access to real-time (or recorded) video interactions with customers, enabling better product support and services engagements

• Improves management of suppliers and their output

The following sections discuss the major benefits that companies will experience from Cisco Remote Expert solutions. The analysis is based on studies of manufacturers across a range of market segments, including automotive, discrete manufacturers, process manufacturers, mining, consumer packaged goods, food and beverage producers, and high-tech manufacturers.

Boosting Manufacturing Efficiency and Quality With experts and engineers in short supply, manufacturers are hard pressed to mobilize the talent they need to quickly resolve production bottlenecks and avoid downtime. That’s why top manufacturers constantly track and try to improve overall equipment effectiveness (OEE), a key measure of plant uptime and throughput. The impact to companies is hardly trivial: unplanned factory downtime can cost manufacturers millions of dollars per minute.

At customer sites as well, poor monitoring of installed equipment can cause unexpected malfunctions and downtime, impacting customer revenue, satisfaction and loyalty. The growing shortage of on-the-spot SMEs can also lead to product flaws that can jeopardize future sales.

Figure 2 illustrates how Cisco Remote Expert for Manufacturing minimizes downtime by supporting rapid problem resolution from the plant floor to external suppliers.

Figure 2. Cisco Remote Expert for Manufacturing: Process Flow

PlantFloor

InternalExperts

ExternalSuppliers

Remote Expert Resources/Central Technical Support

Organization Flow

Issue

IM and WebEx with Supplier

Publish on PortalCisco Show and Share

Onsite Expert and/or Cisco Uni�edPersonal Communicator Audio/Video Call

Need to Findan Expert Internally

Share via TelePresenceand WebEx

EngageCamera

Connect with Central Support

Need to Connect withSupplier Externally

AlertEmployee Onsite

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Figure 4. Accelerated Product Development Benefits of Cisco Remote Expert for Manufacturing

Today, remote or virtual expert solutions are helping manufacturers make significant headway against downtime and problems in quality. Using unified communications networking platforms, companies install live video and data feeds to monitor operations and control quality throughout the plant and on assembly lines. If trouble signs emerge, the presence capabilities built into solutions let managers connect with the first engineer or expert available to evaluate and fix the issue.

These kinds of remote monitoring and diagnostics (RM&D) solutions enable proactive management-by-exception by remote experts. Manufacturers can integrate similar RM&D solutions with product deliveries to perform real-time diagnostics at distant customer sites. The Cisco solution also allows companies to record diagnostic sessions, which can be incorporated into online “show and share” portals where engineers and technicians access discussions about root-cause analysis, get training, and share best practices.

Figure 3 summarizes the proven business benefits for manufacturers of the Cisco Remote Expert solution.

Accelerating Product Development and LaunchesManufacturers constantly face delays in designing prototypes and ramping up new products. The Cisco Remote Expert for Manufacturing platform addresses this challenge by collapsing time and distance and helping globally distributed teams speed product design and development (Figure 4).

Figure 3. Efficiency and Quality Benefits of Cisco Remote Expert for Manufacturers

Efficiency and Quality Benefits

Cut response time to quality problems by up to 35%

Respond to unplanned downtime 35% faster, helping reduce cost of goods sold and boost margins

Reduce travel costs by up to 100%

Resolve root-cause problems 25% faster due to greater participation by globally dispersed experts

Enhance sharing of techniques and best practices by 180%

Add incremental revenue and improve customer intimacy by offering RM&D asset-management services involving remote video and data monitoring

Accelerating Product Development

Accelerate research and development programs by weeks or months

Reduce travel costs by up to 100%

Reduce travel costs by up to 50% for engineers and subject matter experts

Deliver higher quality products, faster, to end customers

Launch products faster and capture “first mover” advantage; manufacturers report a 10% or more revenue boost due to speedier time to market

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Using the solution’s online presence capability, manufacturers rapidly find and assemble engineering talent from every corner of the globe and facilitate spontaneous video- and data-rich interactions. Such immersive collaboration sessions between experts and plant engineers drive rapid innovation while strengthening business relationships and trust between colleagues. Video and data integration also allows companies to incorporate customer feedback in development cycles and provide content for on-demand training portals.

Capturing Customer FeedbackRemote expert solutions are fully equipped to capture the voice of the customer (VOC) efficiently and directly through high-definition video interactions, helping manufacturers take advantage of customer feedback to improve customer satisfaction and service (Figure 5).

By deploying Cisco’s Remote Expert for Manufacturing solution, companies promote direct video collaboration and data sharing between development stakeholders and customers. As a result, these companies gain context-rich customer input―similar to that provided by traditional high-cost focus groups―that is uniquely valuable for improving both products and services.

Industrial Equipment Maker Streamlines with Remote Expert CollaborationOne of the world’s largest manufacturers of construction equipment has been a market leader for decades on the basis of constant innovation, excellent service, and rigorous cost control. To help engineering and service teams on five continents work together as an integrated whole, the U.S.-based company has been an eager adopter of new collaboration technologies.

The manufacturer recently teamed with Cisco to explore how remote expert solutions could improve operational performance in multiple business areas and functions. With several Remote Expert for Manufacturing projects scheduled for launch, the company is seeking to gain the following new capabilities and strategic advantages:

• Improved customer and dealer collaboration — through virtual face-to-face interactions at a distance

• Better global engineering collaboration — with interactive whiteboards, screen sharing, and video conferencing

• Improved product engineering knowledge capture and reuse — by establishing a “Corporate YouTube”

• Improved manufacturing-supplier collaboration — by giving support engineers real-time video visibility into problems

• Reduced warranty costs — with a video collaboration platform that integrates with claims system

• More sales of parts — through on-demand access to experts

Figure 5. The Benefits of Capturing Customer Feedback through Cisco Remote Expert for Manufacturing

Reduce travel costs

Increase productivity of developers, in large part by cutting travel to customer sites

Reduce time to market through better collaboration between product developers and customers

Improve customer satisfaction

50%

10%

25%

20%

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Facilitating Collaboration with SuppliersComplex global supply chains are the pervasive reality of modern manufacturing, which is why companies say that keeping suppliers up and running is their main critical-to-quality (CTQ) priority. This means manufacturers need to move rapidly to work with suppliers to identify and fix disruptions, bottlenecks, and delays as soon as they emerge.

The Cisco Remote Expert solution enables companies to install real-time video feeds that support face-to-face collaboration and data exchange between suppliers’ plant operators and OEM experts (Figure 6). This allows for efficient troubleshooting of supplier production issues while cutting travel time and expense. Using partner technologies such as LibreStream’s ruggedized, onsite cameras, engineers can view a live stream of machinery operating at a supplier’s facility.

Improving Customer Service and Warranty ProgramsRemote expertise can help manufacturers address warranty costs and the risk of product recalls, which can severely cut into profits and hurt future sales. Easy access to remote expertise helps staff handle daily product questions, concerns, and issues, boosting the effectiveness of product warranty and service operations. It also generates valuable insights that help engineers and product developers fix product flaws and address quality issues.

Remote video-collaboration platforms allow experts to examine specific claims without traveling to the site. These solutions also act as “early warning systems” that employ presence and routing capabilities to notify and quickly reach the right expert during a product recall event (see Figure 7).

Figure 7. The Benefits of Improving Customer Service and Warranty Programs

Business Benefits for Manufacturers

Increase customer satisfaction and retention

Improve product support and service delivery by reducing technician time to resolve product problems

Prevent future claims with video-enhanced knowledge capture to understand root causes

Minimize warranty-claim damages and product recalls through early identification and faster SME engagement

Decrease risk exposure and time-to-resolution of warranty claims and recalls

Figure 6. The Benefits of Facilitating Collaboration with Suppliers through Cisco Remote Expert for Manufacturing

Facilitating Collaboration with Suppliers

Cut response time to events at suplier sites by 25–35%

Accelerate issue resolution, minimizing production downtime

Reduce travel costs by up to 50%

Certify suppliers faster

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Fueling SalesSales cycles for large manufacturers (as well as their dealers) tend to be long and complex, involving dozens of stakeholders, complex technical issues, and multiple review sessions. In many cases, companies can accelerate sales cycles and close more deals by engaging and inserting the right expert into the sales process at critical points (Figure 8).

With the Cisco Remote Expert for Manufacturing platform, companies rapidly find the best subject matter expert (SME) available, regardless of location, and engage that person in virtual face-to-face sessions with customers to present key data and address questions and concerns. Behind the scenes, sales teams plug into the platform to find and collaborate with experts over secure video and data channels — for example, in the review and refinement of CAD drawings needed in sales proposals.

Manufacturers also say that the remote expert platform improves collaboration between their dealers and end customers, helping to boost sales across dealer and distributor networks. Also driving dealer sales is the efficient transfer of best practices and know-how from the OEM to the dealer networks using the virtual collaboration platform. This transfer can include delivering in-depth sales training to dealers that can shorten the learning curve for account teams and improve sales performance during new product rollouts.

Figure 8. Fueling Sales: Business Benefits for Manufacturers

Experience better closure rates on complex sales involving dealer network

Build richer �rst-year pipeline for new o�ers through dealers

Increase sales through dealers by accelerating time to market

Realize revenue faster due to improved customer inquiries

Reduce expert and customer travel costs

Incremental revenues through faster deal closings and time to market

50%

10%

10%

25%

30%

40%

Global Automaker Reinvents Value Proposition with Remote Expert SolutionsAn iconic automotive brand has been reengineering operations in recent years to seize growth opportunities in emerging markets and reclaim market share.

As part of its efforts to reinvent product development and marketing, the automaker has been examining remote expert technologies to quantify potential cost savings, productivity gains, and process cycle time reduction. The company is now looking at several remote visual collaboration solutions to facilitate everything from real-time access to SMEs, plant-floor troubleshooting, and global training of field engineers. The company has identified the following use cases in which remote expert solutions could enhance business performance:

• Improve field service effectiveness and reduce warranty costs — by offering real-time, scheduled, or impromptu access to SMEs via a pervasive video platform

• Build stronger relationships with external suppliers — by establishing effective B2B video conferencing

• Get new products to market faster with a faster product launch process — by using high-quality video communications to foster dynamic cross-business unit integration

• Enable faster and more effective response to plant-floor issues — through fast deployment of both internal and external technical support

Cisco and the Cisco Logo are trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.

ConclusionIn a global economy that is constantly reinventing itself, manufacturers are caught in a bind. Speed and agility are essential for success, but the distances separating operations and suppliers are greater than ever ― and that means the expertise manufacturers need to optimize production and profits are rarely located in the place they’re needed most.

By deploying Cisco Remote Expert for Manufacturing solutions, companies are conquering the challenges of distance and logistics, using secure video and data platforms to find and instantly engage engineers and SMEs to solve problems in operations anywhere in the world―and to transfer skills and best practices far more efficiently than before.

Furthermore, the Cisco Remote Expert platform enables tighter coordination with suppliers and dealer networks spanning time zones, helping improve manufacturing throughput, quality, and customer service. It helps product developers and sales teams build closer relationships with customers and to capture feedback, so that developers build better products going forward.

Faster and dramatically more cost-effective than traditional travel, Cisco Remote Expert for Manufacturing gives companies the power to realize value sooner across a range of business areas and compete more effectively in an accelerating global marketplace.

For More InformationVisit: www.cisco.com/go/remoteexpert