< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACTORY AUTOMATION SPOTLIGHT The dynamic relationship between human workers and automation technologies is constantly evolving – from collaborative robots to sensor-driven quality control measures. Together, they’re driving innovation and productivity in the manufacturing landscape. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link FACTORY AUTOMATION SPOTLIGHT C overing a multitude of technological advancements in streamlining manufacturing processes, factory automation is merely an umbrella term for a vast variety of possibilities. It can include the adoption of a whole spectrum of enhancements and replacements for human labour, ranging from partially manual operations to fully automated factories. It can also mean the integration of various technologies, including pneumatic and hydraulic systems alongside robotic arms, for an interconnected and self-sustaining system in any areas needed. By transitioning from partially manual processes to fully automated factories, businesses can unlock benefits that will revolutionise their operational efficiency and competitive edge within the market. Automated single machines, as a step along the way between manual operations and full automation, are equipped with advanced control systems that enable autonomous operation, reducing reliance on manual intervention. By automating discrete tasks within the production process, and decreasing the risk of human error, higher levels of precision and consistency are easier to achieve, which means more reliable product quality and reduced wastage. As businesses progress towards automated production lines, they’ll witness a transformation in their manufacturing capabilities. Integrated systems enhanced by individual machines will increasingly ease the flow of materials and components, synchronised for the quickest possible throughput and minimal downtime. By eliminating bottlenecks and inefficiencies inherent in manual processes, automated production lines allow for scaling of operations while maintaining quality standards. Additionally, the centralised control afforded by automation facilitates real- 22 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACTORY AUTOMATION SPOTLIGHT time monitoring and adjustment, enhancing the speed at which the line responds to market demands. For some, end-to-end automated factories will represent the upper echelons of manufacturing excellence. From raw material handling to finished product packaging, full automation ensures machine accuracy, efficiency and quality, with no human intervention whatsoever. The common reference to these kinds of factories as ‘lights out’ or ‘dark’ facilities illustrates their capabilities. They can run constantly, day and night for 365 days a year, only needing maintenance and some cleaning efforts to carry out their work. The truth remains that most factories will need some level of human oversight. Partially manual processes are still common in the running of many factories for this reason. This balance allows the machine qualities of speed and data- informed consistency to be matched by human insight and adaptability, whether to adjust processes, or for the intuition certain quality checks require. Some kinds of automation exist to work with and alongside humans for the best possible results. One branch of robotics includes collaborative robots, or cobots, which might be one of the most exciting ways to illustrate the best of automation and humans working together. Cobots can be assigned any potentially risky jobs, while also handling a wide range of repetitive tasks that could weigh heavy on the energy or focus of human workers. Protecting employee health and happiness is in any business’s interests here, as many slower and more tiresome objectives get a speed boost with robotic help, taking efficiency that much further. The inherent safety features of automated systems such as these, made with close work alongside humans in mind, lower the risk of workplace accidents and create a safer www.eastmidlandsbusinesslink.co.uk East Midlands Business Link FACTORY AUTOMATION SPOTLIGHT environment where tasks better suited to robots can be handed off easily. Robotics cover by far the most cutting edge and exciting areas of factory automation, and have the added bonus of being widely versatile in the tasks they can accomplish. Robots can be used to move essentials around the factory, transport raw materials to the production line, or bring finished products to the packaging area. But they can also be deft enough to manage the actual assembly and packaging of products, some having the fine motor skills to perform tasks such as welding, labelling, painting or screwing, and all with a level of precision and consistency that is difficult for humans to sustain. The beauty of automation extends beyond the simple actions robotic features can manage, bringing in sensors and software that fortify quality control measures. Embedded within the machinery itself, sensors can be vigilant for variables like temperature, swiftly adjusting parameters to maintain optimal conditions. Meanwhile, vision systems inspect products and instantly identify imperfections that might elude human detection. In maintenance, machinery wear and tear can also be managed through sensor technology. Scheduled maintenance, guided by data-driven insights, ensures uninterrupted production flow, reducing the costs of downtime. Additionally, robots lend their prowess to routine upkeep tasks, such as cleaning or oiling machinery, so the focus of human staff can go towards being the custodians of quality output. Perhaps the most alluring asset of automation is its ability to accelerate processes, driving productivity to new heights. However, automation’s impact transcends the factory floor and products themselves, exerting a profound influence on product quality and traceability. Sensors can track materials as they move through the production line, allowing for a detailed record of each step of the process and reducing the risk of recalls. Even when an error or flaw slips past detection, the trace established by data during production can remain linked so that faulty batches may be easily identified and pulled back from sale if necessary. Robots and other automations can complete all these tasks, and many others, much more quickly and efficiently than humans. Any level of automation will likely result in improved efficiency, because throughput will increase as production times decrease, leading to cost savings and growth in profitability. While robots can perform repetitive tasks at a constant speed without needing breaks, automation as a whole can manage and monitor production in up- to-the-moment real time, allowing for adjustments to be made quickly and efficiently. From solitary machines that stand in as masters of a specific task, to robotic- human collaboration and fully automated procedures, embracing automation heralds the future of thriving business operations. Selecting the best combination for a business’s unique needs can then unlock even further insights for future improvements, while safeguarding both quality and the wellbeing of workers. As businesses navigate this playground of innovation, one thing remains clear: the synergy of human ingenuity and technological prowess will be what continues to pave the way to success. © stock.adobe.com/Patrick Helmholz East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FAMILY BUSINESS A ccording to end of 2023 insights, an impressive 71% of family businesses reported expansion in their most recent fiscal year, with 43% of these even achieving double-digit growth. Moreover, 77% express optimism, projecting further advancement over the next two years. These figures not only reflect the robustness of family enterprises but also hint at their potential to serve as engines of sustainable economic development. However, tradition must not stand in the way of evolution. Research indicates that family businesses equipped with a communicated Environmental, Social, and Governance (ESG) strategy enjoy heightened trust from consumers, outstripping their counterparts by 13 percentage points. Yet, a concerning 67% of family businesses allocate insufficient attention to ESG considerations, perhaps overlooking a key avenue for bolstering stakeholder confidence and market competitiveness. To state the obvious, maintaining good customer service is paramount for the Taking family businesses to the next level Family businesses stand as pillars of resilience and innovation, seen as the embodiments of a unique blend of tradition and adaptability. Taking family businesses to the next level www.eastmidlandsbusinesslink.co.uk East Midlands Business Link FAMILY BUSINESS success of any business. This begins with understanding your customers and their needs intimately. Companies should always remember that going the extra mile for customers is the draw of a family business. Versatility and proactivity should be a focus, to create tailored solutions that not only meet but exceed customer expectations, fostering long- term loyalty and growth. Keeping one eye on market trends will help stay ahead of the curve, by identifying opportunities and potential risks, ensuring responsiveness to shifting customer preferences. Working with the best talent is not just a matter of pride but a strategic imperative for family businesses aiming for long-term success. Recognising that no individual can excel in every aspect of the business, it’s crucial to surround oneself with capable professionals who bring diverse expertise to the table. Importantly, this entails relinquishing the notion that familial ties inherently equate 26 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FAMILY BUSINESS to superior decision-making. Embracing this approach not only fosters a culture of collaboration but also ensures that the business remains agile and resilient in the face of adversity. Leadership dynamics within family businesses require more nuance and delicacy than corporate environments. Whilst traditional hierarchical structures may succeed for some, familial relationships generally demand a more patient and consensual leadership style. Adopting a ‘command and control’ mentality risks stifling innovation. Instead, experts advise leaders to cultivate an environment of mutual respect and open communication, wherein ideas are freely exchanged, and decisions are made collectively, fostering a sense of ownership and unity among family members. Furthermore, diversifying leadership by incorporating non-family members into senior positions can inject fresh perspectives and expertise into the organisation. However, the success of such integration hinges on achieving the right balance of chemistry and cultural alignment. Boards must navigate these dynamics with diligence, ensuring that the chosen candidates compliment the family’s values and vision while enriching the organization with their unique insights and experiences. In parallel, fostering an environment where leadership emerges organically, irrespective of familial lineage, is essential for nurturing talent and driving innovation. By providing opportunities for growth and development, family businesses empower individuals to realize their full potential, whether from the younger generation or the wider family cohort. This inclusive approach not only cultivates a pipeline of capable leaders but also fosters a culture of meritocracy, wherein individuals are recognised and rewarded based on their contributions and capabilities. Moreover, broadening the family’s collective experience beyond the confines of the business is invaluable for personal and professional development. Encouraging family members to seek exposure to diverse industries and organisations equips them with invaluable insights and skills that can enrich the family enterprise. Embracing training programs and networking initiatives that facilitate knowledge- sharing and collaboration with external partners further enhances the family’s collective expertise and builds a network of like-minded businesses for future support. Family businesses’ greatest asset is often their greatest weakness – constancy in the face of change. The desire to preserve the family legacy can lead to antipathy towards development. Yet, embracing change isn’t merely an option for companies, but an absolute necessity. Trusting in their talent, family businesses can navigate uncertainty with confidence, taking measured risks that propel them forward. For example, as sustainability initiatives gain traction, businesses are often daunted by the associated costs. However, presenting a comprehensive business case, focusing on potential revenues alongside expenses, can sure up success. Beyond www.eastmidlandsbusinesslink.co.uk East Midlands Business Link FAMILY BUSINESS business’s direction but also fosters buy-in from stakeholders, essential for transforming vision into reality. By encouraging open dialogue and collaboration, family businesses can harness the collective wisdom of their teams to develop a robust business plan that resonates with everyone involved. Expanding on sustainability initiatives, aligning the company’s purpose with the United Nations’ Sustainable Development Goals has been found to not only drive financial performance but also heighten chances of long-term success through social impact. Recent research underscores the correlation between clear family values, a defined business purpose, and double-digit growth. © stock.adobe.com/Africa Studio © stock.adobe.com/Minerva Studio regulatory pressure, supply chains are increasingly demanding better ESG reporting and performance in the businesses they work with. Family businesses hold a unique advantage here, with a wealth of historical industry knowledge and resilience to draw from. By fortifying governance structures, embracing diverse perspectives, and learning from the challenges faced by others, these enterprises can chart a course toward sustained relevance and success in an ever-changing world. Taking this further, clear strategy and vision are paramount for the success of family businesses, serving as common objectives that align teams, clients, and suppliers. Establishing a shared vision not only provides clarity on the East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Is it time to reflect on the culture of your organisation? James Pinchbeck, partner at Streets Chartered Accountants, considers the importance of a business’s culture. H aving been involved in recruitment interviews recently, in which seemingly all applicants asked what the culture of the organisation was like, it did give rise to reflection on the same and what is meant by culture and how it affects the success or otherwise of an organisation. Organisational culture refers to the collective beliefs, values, attitudes and behaviours that define the unique identity and character of an entity. It’s the intangible fabric that shapes how employees interact, make decisions, and perceive their roles within the organisation. Essentially, it is the personality of a business. Manifestations of organisational culture are evident in various aspects of workplace dynamics. This includes communication styles, leadership approaches, decision-making processes, employee relationships, dress code, workspace layout and even organisational rituals and traditions. These elements collectively reflect the underlying norms and values embraced by the organisation. Describing the culture of an organisation can vary depending on its unique characteristics and values. It could be described as collaborative, customer-centric, results-oriented, hierarchical, innovative, inclusive or bureaucratic, among others. People seek to change organisational culture for various reasons, including adapting to external market forces, addressing internal issues or inefficiencies, fostering innovation and agility or enhancing employee well-being and satisfaction. Changing organisational culture is a complex and challenging process that requires commitment, patience and strategic planning. It typically involves identifying areas for improvement, engaging employees in the change process, providing training and support and implementing new policies and initiatives aligned with the desired cultural shift. Current trends in organisational culture include a greater emphasis on more flexible and remote work policies and virtual collaboration tools, fostering diversity, equity and inclusion initiatives, promoting employee well-being and mental health support and adapting to rapid technological advancements and market disruptions. In conclusion, organisational culture is a vital aspect of any business, influencing its performance, employee satisfaction and long-term success. Understanding, assessing and shaping culture requires proactive efforts from leaders and employees alike, with a focus on fostering a positive and inclusive work environment conducive to innovation, collaboration, and growth. The impact of organisational culture on business performance is profound. A strong, positive culture can foster employee engagement, productivity, innovation and loyalty, leading to better customer satisfaction and overall business success. Conversely, a toxic culture marked by distrust, micromanagement, favouritism, resistance to change, fear or lack of transparency can hinder employee morale, creativity and collaboration, ultimately impeding organisational effectiveness and growth. Organisational culture is particularly important for new employees as it shapes their onboarding experience, integration into the company and long-term engagement and satisfaction. A positive culture can facilitate smoother transitions and help new hires align with company values and expectations. Assessing organisational culture involves analysing various factors such as employee attitudes and behaviours, management practices, communication patterns and alignment with organisational values and goals. While leadership plays a crucial role in setting the tone and direction of organisational culture, every individual contributes to its formation and evolution. However, senior executives and managers bear primary responsibility for shaping and nurturing a positive culture through their actions, decisions and reinforcement of desired behaviours. Next >