From Manual to Digital - A DIY Workforce Transformation Guide

From Manual to Digital - A DIY Workforce Transformation Guide | Phoenix Contact

From Manual to Digital From Manual to Digital: A DIY Workforce Transformation Guide In 1981, Phoenix Contact founded its first US subsidiary in Harrisburg, Pennsylvania, which became our US headquarters. Over the years, the campus has grown to house the Manufacturing and Logistics Center for North and South America, managing over 7,000 part numbers and over 70 US patents. The landscape of our manufacturing floor has undergone constant evolution since it was established, with the regular implementation of new machines and technology and the integration of new employees. But in 2020, we encountered a challenge in our cordset production. We experienced an incredible surge in orders , and the team became overwhelmed trying to meet the high demand. When we looked more closely at the issue, we realized there was a variety of factors holding back our US workforce. • We needed more people: Specifically, we needed 136 new employees to be onboarded ASAP • We needed better training programs: Paper manuals and outdated processes were holding up workflows, language barriers were inhibiting learning • We needed improved support for staff: New employees needed additional support and direction in learning new concepts, handling equipment, and troubleshooting issues Uncovering the answers to these problems was going to take a lot of research and testing, with many hours of trial and error. However, the solution could be stated very simply: Digitalization was what we needed. And this is how we did it. 2 Phoenix Contact

From Manual to Digital STEP ONE: Define strategic goals Whether you are looking to reduce costs, enhance product quality, or increase flexibility, defining a specific goal at the beginning of your project will help create structure for the tasks ahead. Our goal was to improve our efficiency in the onboarding of employees. We needed to achieve this goal quickly, using minimal resources. It also had to be flexible for onboarding many employees or just a few. We determined that part of this solution would be a step-based instruction guide from the first-person perspective of an expert in manufacturing. This accelerated training program would include full procedures that captured approximately 40 years of experience while not affecting output or changing our existing processes too much. Video: See an example of AR being used in the manufacturing plant. We have a very diverse workforce. So in that, we have paper-based process specifications, tons of words, and it's very detailed. But if your English comprehension isn't the greatest, and even sometimes, you know, me as a native English speaker and reader, even I interpret them like, what in the world might they be saying?” Rob DeGroot Manufacturing Operations Manager 4 Phoenix Contact

STEP TWO: Assess your current state Next, we had to evaluate our existing processes, technologies, capabilities, and bandwidth, identifying the areas that needed improvement and where digital technologies could potentially have the most impact. Our onboarding included lengthy paper-based processes that fell short in capturing detailed tribal knowledge. These would need to be distilled into simplified concepts. But there was much more to consider. “We have a very diverse workforce. So in that, we have paper-based process specifications, tons of words, and it's very detailed. But if your English comprehension isn't the greatest, and even sometimes, you know, me as a native English speaker and reader, even I interpret them like, what in the world might they be saying?” Rob DeGroot is Phoenix Contact’s Manufacturing Operations Manager and one of the key drivers behind our digital transformation in manufacturing. “English is not every employee’s first language. At one point, we had employees speaking 12 different languages in second and third shifts alone.” Detailed written procedures presented potential challenges for both native and non-native speakers, contributing to a lot of time spent scrubbing through video tutorials to fully understand concepts. “A lot of people learn best by seeing and doing, especially in a manufacturing environment, getting their hands on it, watching others do it.” 95% of manufacturing employee onboarding is on-the-job training. This means supervisors and advanced personnel were taking time away from their work to get new employees up to speed, thus reducing outputs. Especially on second and third shifts, where a full staff is not always available, new or less-familiar employees unable to troubleshoot issues could hold up production for hours or even days until people with answers became available. Change is often challenging to implement in manufacturing, where employees must adapt to new technology and equipment. But knowing where to start and where we wanted to end up was vital in moving through the process. STEP THREE: Create a transformation roadmap Next, it was time to create a detailed plan outlining the specific steps, timelines, and resources required to get there. This included both short and long-term objectives, as well as benchmarks to measure progress. We established a three- month timeline for exploration and implementation, with our solution to be ready to launch in one year. A DIY Workforce Transformation Guide Video: See a walkthrough of our manufacturing center using Matterport technology. Phoenix Contact 5

Video: See a walkthrough of our manufacturing center using Matterport technology. From Manual to Digital STEP FOUR: Invest in the right technologies After careful research and consideration, we had to select the digital tools and technologies that we could leverage to align with our goals. We knew we needed a training platform designed for people with little to no familiarity with technology that could accommodate users of all ability levels with simple interfaces that were easily navigable on a smartphone or tablet. Subtitles and AI translations were necessary to accommodate a range of languages. As Phoenix Contact is based out of Germany, we also wanted a training program that could be used internationally as a consistent global training platform. We also wanted it to be a scalable solution that offered updates for improvements after implementation. After many hours of research and initial testing, our team determined that we could leverage Vuforia’s Expert Capture, and through in-house web application design know-how, create a unique Technician app to complete the process. “At that time, Matt had been working on some AR technology and looking into that I had a chat with him, and he was familiar with the Vuforia side. Then we realized, oh hey, there's this Expert Capture thing that sounds very much like what we're trying to do.” Rob connected with Matt Klinepeter, the Senior Web Developer at Phoenix Contact. “There were a lot of nuances in their request that we had to wade through to make it exactly what they wanted it to be.” Matt shared. “But we started by building a library of logs, documenting machine maintenance and troubleshooting issues. We had six machines that we scanned to review the data for.” Vuforia Expert Capture is a software solution that uses augmented reality (AR) to help companies create interactive work instructions. It allows subject matter experts to record step-by-step procedures and best practices while performing them in real-time, using a HoloLens eyewear device. As they record, experts can add annotations and visual cues, explaining what they are doing and why. The instructions can then be edited and shared with the broader workforce, who can view them on a variety of devices. Another tool that Matt discovered was AutoLeap’s Technician app, which allowed us to simplify processes for assigning work, tracking progress, flagging issues, and performing inspections—all in real-time. The two solutions enabled a more fluid training process that was easier for employees to use and easier for management to scale and improve. "Currently, only technicians are using the Technician app,” Amit Patel is the second - shift Supervisor in cordset production. “As a technician with six years of experience, I can attest to its efficiency. Prior to implementing this tool, finding part numbers in drawing books was time-consuming. The app offers multiple benefits, such as streamlining frequency controller programming. Previously, this task took over eight hours, but now it can be completed in just two minutes. Overall, this app is a significant time-saver." 6 Phoenix Contact

A DIY Workforce Transformation Guide Video: See how AutoLeap's Technician app is used in our manufacturing center. There were a lot of nuances in their request that we had to wade through to make it exactly what they wanted it to be. But we started by building a library of logs, documenting machine maintenance and troubleshooting issues. We had six machines that we scanned to review the data for.” Matt Klinepeter Senior Web Developer Phoenix Contact 7

From Manual to Digital STEP FIVE: Test, monitor, and optimize Once we had implemented our technology, we had to monitor the performance of the digitalized processes. Data analytics could identify areas for further improvement and optimization. One concern we had was how our employees would respond to the new technology. The programs assumed some of the tasks workers were previously responsible for, and we did not want them to view the changes as a potential threat to their jobs. But in our case, people had quite a different reaction. “People were generally excited to use new technologies and become specialists in using what’s new. Workers appreciate that tasks vary with digitalization progression,” Rob reported. “We still had a dedicated person to facilitate and manage the process for streamlined efficiency. A person was needed to demonstrate certain things, but digital resources and videos could support employees in learning and troubleshooting issues.” That was not the only success we had with our new platform. Managers and stakeholders can now see who is viewing the training content, what is being viewed, what is being skipped, and what employees have to go back and re-watch, enabling them to record trends for improvement. Users can also provide feedback in real- time to improve the training, and new training modules and procedures can be implemented quickly. “There is more we’d like to do,” Rob added. “Next, we want to work on integrating our HR learning path platform, PeopleHub, into the content.” But our digitalization journey has brought a scalable, successful solution to our factory floor. With data analytics and feedback, the system is set up for continuous improvement. People were generally excited to use new technologies and become specialists in using what’s new. Workers appreciate that tasks vary with digitalization progression.” Rob DeGroot Manufacturing Operations Manager

A DIY Workforce Transformation Guide STEP SIX: Foster a digitalization transformation culture A big part of Phoenix Contact’s culture is that we encourage continuous improvement and innovation. Our mission is: Together, we are creating a sustainable world based on our passion for technology and innovation. This mindset ensures that all employees understand the benefits of digitalization and are motivated to embrace new technologies. Likewise, our customers can know that our employees are well- trained and informed, creating better products and solutions that cater to the needs of today and tomorrow. Most people think of working in manufacturing as dirty, dangerous, and repetitive. But Phoenix Contact’s Manufacturing and Logistics Center is a well-lit, clean, and organized work environment. Along with our new system, we use a variety of cutting- edge technology, including cobots that work alongside our employees. With the implementation of our training program, we are changing negative stereotypes in the industry and opening new doors for collaboration and opportunity. We want to provide the best possible place for our employees to work, and with the help of digitalization, we will continue to improve and evolve our manufacturing in years to come. Video: See how AR equipment is being used in our manufacturing center. Phoenix Contact 9

Open communication with customers and partners worldwide Phoenix Contact is a global market leader based in Germany. We are known for producing future-oriented products and solutions for the electrification, networking, and automation of all sectors of the economy and infrastructure. With a global network reaching across more than 100 countries with over 21,000 employees, we maintain close relationships with our customers, something we believe is essential for our common success. Our wide range of innovative products makes it easy for our customers to implement the latest technology in a variety of applications and industries. This especially applies to the target markets of energy, infrastructure, industry, and mobility. phoenixcontact.com © PHOENIX CONTACT U007044A/10-2024