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High-mix, low-volume manufacturing and AR technology with Brian Montanari

Modern Industrialist Podcast

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High-Mix, Low-Volume Manufacturing and AR Technology

At HABCO Industries, 96% of all orders are for quantities below five. 82% are for a quantity of one. What can we learn about operational efficiency from such a high-mix, low-volume manufacturer? A lot actually. Brian Montanari, President & CEO of HABCO, explains.

What Makes High-Mix, Low-Volume Manufacturing Different

Brian is deeply trained in the traditional ‘Lean’ approach to manufacturing optimization. In this approach, the focus is implementing Kanban and Pulls systems, and rightfully so. Those are critical in high-rate production environments where flow is the priority.

But when the product is a quantity of one, you have to think differently, Brian says.

In a high-mix, low-volume environment, the focus of optimization needs to be on-time starts and effectiveness in the operation. Timing is the priority, not flow. Pushes are key.

How AR Technology Can Help Low-Volume Manufacturers

When Brian analyzed his pushes, he realized that Augmented Reality (AR) technology could help. Stenciling was one of the longest lead times for HABCO’s productions.

Working with an AR firm, he created a Microsoft HoloLens program that cut stenciling time down from 3 hours to 30 minutes.

That timesaving adds up and makes it possible to accept a greater number of unique projects. It also allows for more optimal use of HABCO’s worker pool. Instead of being limited to the schedule of a worker with specialized training for stenciling, the simplicity of the HoloLens program allows a larger number of workers to easily step into the role.

The Team Development Aspect

Brian is a champion for his workers. You can tell by the way he talks about his employees and workforce development. He sees it as his responsibility to help workers upskill and create more value for themselves. Brian sees AR technology as a path to do this– he can cross-train workers quicker and help them break out of career silos.

The bottom line, Brian says, is that manufacturers of all shapes and sizes need to evaluate digital transformation approaches based on their own unique business.

Produced by NOVA

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Summary and themes explored in this episode:

Introduction and Background:

  • The episode kicks off with host Jason Hehman introducing co-host Patrick Turley and guest Brian Montanari, President and CEO of HABCO Industries.

  • HABCO Industries specializes in manufacturing support and test equipment for aerospace, with a focus on innovative solutions and operational efficiency.

  • Key focus: Exploring HABCO's digital transformation, the role of leadership in innovation, and specific case studies like the implementation of Microsoft's HoloLens technology.

HABCO’s History and Niche:

  • Brian shares HABCO's unique positioning in the aerospace aftermarket, supporting maintenance and repair rather than direct production.

  • Introduction of a FAR 145 repair station in 2023, enabling some parts manufactured by HABCO to take flight.

  • HABCO operates on a high-mix, low-volume model, with 96% of jobs involving five units or fewer.

Brian’s Leadership Journey:

  • Transitioned from high-volume manufacturing to HABCO’s custom approach.

  • Early misconceptions about applying high-volume production principles to HABCO’s business led to significant learning.

  • Brian emphasizes the importance of a flexible and people-centric leadership style.

Digital Transformation and AI Strategy:

  • HABCO shifted from ad hoc tech adoption to a focused digital strategy.

  • Collaboration with the Connecticut Center for Advanced Technologies (CCAT) led to innovative applications like augmented reality.

  • HABCO leverages Epicor ERP systems for integrated solutions, prioritizing scalability and consistency over disparate systems.

Key Innovations in HABCO’s Workflow:

  • Implemented AR through Microsoft's HoloLens to reduce stencil application time from three hours to 30 minutes.

  • The approach increased efficiency, cut costs, and widened the resource pool by simplifying skill requirements for tasks.

Challenges and Change Management:

  • Addressed hurdles in implementing new technologies by fostering a culture of excitement and early adoption among employees.

  • The "SABA" framework (Structures, Activities, Behaviors, Attitudes) is used to drive sustainable cultural change.

  • Cross-training during slower periods, like the COVID-19 pandemic, enhanced workforce adaptability and efficiency.

Partnerships and Broader Impact:

  • CCAT played a pivotal role in guiding HABCO’s tech journey, introducing partners like SphereGen.

  • HABCO’s involvement in aerospace ensures its indirect contribution to virtually every commercial and military aircraft.

Future Vision and Role Models:

  • HABCO aims to expand its presence in the defense industrial base while continuing to innovate in aerospace.

  • Brian finds inspiration from both industry mentors and direct interactions with his employees.

  • Emphasized the importance of passion and compassion in leadership, balancing technology with human elements.

Final Reflections:

  • The discussion ends with insights on the value of focusing on people, leveraging technology for operational improvements, and preparing the workforce for the future.

  • Jason and Patrick reflect on the inspiring and actionable lessons from Brian’s leadership journey.


Produced by NOVA

Published by Jason Hehman , Patrick Turley in podcasts

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