Podcast

John Broadbent - Half a century in Manufacturing

Sep 17, 2024

Factory Futures Podcast Episode 1 - Digital Transformation in Manufacturing

Intro

It's been such a pleasure to have John Broadbent on the podcast.

It's been such a pleasure to have John Broadbent on the podcast. John is a one-of-a-kind veteran in the industry with nearly 50 years of experience (even if he doesn't look a day over 40!). With a career that spans from his early days as a mechanical engineering cadet at CSR to founding multiple successful businesses and becoming a renowned expert in digital transformation, John's journey is a testament to the evolution and potential of modern manufacturing.

Throughout the conversation, John shares invaluable insights drawn from his extensive career, highlighting the challenges and opportunities within the Australian manufacturing landscape. He discusses the importance of smart manufacturing, the role of automation in addressing labor shortages, and the critical need for real-time data integration.

Whether you're a site leader grappling with operational inefficiencies or an executive considering the digital transformation journey, John's practical advice and proven strategies offer a roadmap to achieving manufacturing excellence in the 21st century.

Some of our Favourite Parts

John shares so many gems in this podcast, some of our favourite parts where;

- 00:01:35 - The Beginning of John's Journey  
 John Broadbent shares his early career experiences, starting as a mechanical engineering cadet at CSR in 1975, setting the stage for his extensive journey in the manufacturing industry.

- 00:04:13 - Insights into Smart Manufacturing
 John discusses his pivotal role in building factories in China and Thailand, providing a firsthand account of the early implementations of smart manufacturing practices and their long-term benefits.

- 00:10:35 - The Challenges of Today's Manufacturing Leaders , and the Lego Meme

- 00:14:18 - Real-Time Data and Operational Improvement & Why OEE is becoming a Fad
 John emphasises the importance of real-time data integration and its impact on operational efficiency, offering practical advice on how manufacturing leaders can streamline their processes.

- 00:16:18 - Driving around town with no dashboard and no windows, and the MD in the passenger seat

- 00:19:53 - Addressing Labor Shortages with Automation
 John explores how automation can help mitigate labor shortages, using examples from successful companies like GPC Electronics and Coca-Cola to illustrate the benefits of investing in smart manufacturing technologies.

- 00:30:24 - The Necessity of Leadership Commitment
 John highlights the critical role of leadership in committing to digital transformation, outlining the steps organisations need to take to align their strategy and achieve sustainable growth in the manufacturing sector.

Full Podcast Transcript

00:00:03 JP Picard (Factory AI):
John. Good morning and welcome to the show.

00:00:07 John Broadbent (Realise Potential):
Thank you, JP. Good morning.

00:00:09 JP Picard (Factory AI):
Thank you, mate. It has been a pleasure to get to know you over the last few months. You've helped us understand better the landscape of Australian manufacturing. When we thought of suitable candidates for this podcast, you were definitely one of the first. Thanks for accepting to be here. Perhaps a good place to start is with the incredible story of your journey. If anyone opens up your LinkedIn, they'll find that your first role was as a mechanical engineer cadet for CSR in 1975?

00:01:08 John Broadbent (Realise Potential):
Yes, a while ago now.

00:01:11 JP Picard (Factory AI):
Well, you make it look like it's not that long ago. You started there, went to senior leadership roles in manufacturing, founded a few businesses, wrote a book. Can you share with us the story of your journey?

00:01:35 John Broadbent (Realise Potential):
Thank you. I fell into mechanical engineering because I wanted to be a navigator in the Air Force. I failed the medical due to eyesight issues, which put me into a trajectory of wanting to become a metallurgist. In about September 75, I wrote to 50 companies and got only two replies. One was from CSR offering mechanical, electrical, or chemical engineering cadetships, and the other was BHP, which required moving to Wollongong to study metallurgy. I applied for the CSR job. Four of us got the cadetships out of 400 applicants. The rest is history. I had an absolute ball over those six years, working in various locations and roles within CSR. I decided to get out after 11 years and broaden my experience. I spent 12 months in pharmaceuticals, which I didn't like due to the regulation. In 1987, I went out on my own, and in 1992, I was called back to CSR to relocate a factory to Kuala Lumpur. I worked on projects in China and Thailand, which gave me an insight into smart manufacturing. In 2000, I established Millennium IT, which became known for its project success rate. We did amazing projects with many manufacturing businesses. In 2017, I founded Realise Potential to focus on education and helping companies understand digital transformation. My role is primarily education, but ultimately to help companies set a strategy and implement it.

00:08:50 JP Picard (Factory AI):
What a story. I'm glad you finished where you did because you gave us glimpses into the potential of Industry 4.0 and some amazing success stories. You've also shared that you're here to educate. What challenges do today's manufacturing leaders face, especially at the site level?

00:10:25 John Broadbent (Realise Potential):
There's a great Lego meme with two guys pushing a cart with square wheels, and another character standing behind them with a round wheel. The caption reads, "I've got something for you," and they respond, "No, we're too busy." This represents operations managers who are time-poor and stressed, managing both up and down the hierarchy. They need to ensure production meets standards while keeping operators happy. The last thing they need is a consultant or a big consulting firm adding more to their plate. My job is to make their life simpler by showing them how judicial investment can give real-time insights into their processes, eliminating the need for manual data handling and enabling operational improvement.

00:14:18 JP Picard (Factory AI):
That's a desire many would resonate with. Speaking of lead and lag measures, do you discuss metrics with your clients? Which ones do you recommend?

00:15:06 John Broadbent (Realise Potential):
I tend to focus on core processes rather than just OEE. OEE can become a fad if there's no mechanism to move the needle. I work with a methodology called PNP, which develops KPIs from the core purpose of the organisation. This method ensures the measures at the periphery impact the organisation's core purpose. Often, organisations collect data without understanding its influence on the business. Efficient data collection and real-time process information are essential for meaningful KPIs.

00:17:51 JP Picard (Factory AI):
That's insightful. Another challenge we hear about is the labor shortage issue. What do you think when you hear this?

00:19:53 John Broadbent (Realise Potential):
Two examples: GPC Electronics in Western Sydney is thriving due to their integrated landscape and automation. Conversely, another company moved an old machine to Malaysia for lower labor costs, but now faces challenges with supply chain issues and rising labor costs. Investing in modern, less labor-intensive machines locally would have been more beneficial. Companies like Coca-Cola have highly automated facilities, reducing labor needs and retaining skilled workers. Smart manufacturing makes us globally competitive.

00:24:42 JP Picard (Factory AI):
So, through technology, you can mitigate labor challenges by reducing human dependency and attracting skilled talent to innovative environments. What do you recommend to those facing pushback on initial stages of technical projects?

00:30:24 John Broadbent (Realise Potential):
The issue is often a lack of commitment to digital transformation from the leadership. If it's not in alignment with the organisation's strategy, projects won't get approved. The leadership needs to commit to the digital transformation journey. Without this commitment, the organisation will remain stuck in inefficiency. A clear strategy and vision are essential for successful digital transformation.

00:33:54 JP Picard (Factory AI):
That's a critical point. Could you share some low-hanging fruits that can make a big impact in transformation efforts?

00:39:54 John Broadbent (Realise Potential):
Look at your highest cost of production: power, water, gas, and raw materials. Reducing waste in these areas can significantly impact your bottom line. Focus on efficiency rather than just cutting labor. Smart manufacturing investments can have spectacular returns on investment. For example, Coca-Cola's investment in an injection molding facility drastically reduced transportation costs, showing the benefits of automation.

00:42:05 JP Picard (Factory AI):
That's amazing. So, with an investment of around 1.5 to 2% of turnover, significant improvements can be achieved. John, thank you for sharing your wisdom. Where can people find you? Is LinkedIn a good place to follow you?

00:43:56 John Broadbent (Realise Potential):
Yes, I'm active on LinkedIn. I'm rerunning a video series on digital transformation. Every Tuesday afternoon, I publish one of these videos. I also have new content in the works. Organisations can contact me for keynotes or workshops to understand digital transformation.

00:45:15 JP Picard (Factory AI):
Thank you, John. It's been a pleasure. I look forward to another conversation in the future. Have a great Christmas.

00:45:17 John Broadbent (Realise Potential):
Thanks, JP. Have a great Christmas.

JP Picard

JP is the Co-Founder and CEO of Factory AI. Previously, he held senior sales leadership roles at Salesforce and Zipline, supporting executive teams in their digital transformation journeys. His passion for reliability and maintenance grows as Factory AI partners with clients to tackle unique challenges