In manufacturing, the supply chain manager is responsible for the flow of goods and services, including all processes that transform raw materials into final products. One critical aspect of this is inventory management. In the most rudimentary (but surprisingly still common) scenario, inventory managers are tasked with counting and logging each piece of inventory, comparing these with the amounts needed, and determining what items need to be replenished, and when. Although on the surface, this appears to be a relatively straightforward task, a deeper examination suggests that inventory management places a heavy load on the cognitive system in the brain, and thus is prone to error.

Consider the inventory manager standing in front of the first collection of items. From a cognitive neuroscience perspective, one first has to count each item. This involves fixating on the first item and incrementing a counter in working memory from 0 to 1. Then an eye movement and attention switch must be initiated from the first item to the second item and the counter must be incremented to 2. Another eye movement and attention switch to the third item ensues, and the process is repeated.

Any time working memory load and executive attentional demands are taxed, one is more likely to make an error
Share on X

Critically, the inventory manager must follow some systematic approach to the eye movements and counting process to ensure that they do not miss any items or count items twice. The process of counting and systematic shifts of eye fixation places a heavy burden on working memory and attentional processes. Next, the inventory manager must rehearse the final count in working memory while shifting attention from the actual inventory to the inventory log. On the log, they must find the appropriate location, then write the number down that they have been mentally repeating. This number must then be compared with some threshold number and a decision must be made whether to order more of that inventory item or not, and that decision must, in turn, be logged. The inventory manager moves on to the next inventory item, again in some systematic fashion to ensure counting all of the inventory, and repeats the process all over again.

The cognitive neuroscience research is clear that each of these repetitive steps requires an enormous amount of cognitive capacity (in the form of working memory) as well as cognitive energy (in the form of executive attention). Any time working memory load and executive attentional demands are taxed, one is more likely to make an error and miscount, double count, or forget the count completely and have to start over. Because this process is error-prone, it is impossible to know if the inventory counts are correct and where errors might be.

When it comes to inventory management, the advantages of a hands-free, wearable device should not be underestimated
Share on X

To optimize and increase the efficiency of inventory management, the cognitive load on working memory and attention must be reduced. Augmented reality (AR) tools offer significant promise for efficient inventory management because they reduce the cognitive load, and utilize the manager’s visual field and visualization processes in the brain.

Consider the same task, but where the inventory manager is wearing AR glasses. They enter the inventory room and visually scan it. Using visual assets such as text or colored arrows, the AR display directs them to the first set of items. They fixate each item and either manually count the items, or the AR system automatically counts the items. This value is then input into an electronic system either through eye fixations to locations on the AR glasses or through verbal commands.

Budgetary constraints can determine the sophistication of the AR algorithms to be used
Share on X

When the inventory is low, a warning is presented and the individual tags that inventory for immediate replenishment, again through eye fixations or verbal commands. Throughout this whole process, the manager is looking toward the inventory with minimal load on working memory and few attention switches. The glasses then direct the individual to the next item and the process is repeated. The path taken through the inventory is optimized to require the minimum number of steps to complete. Attention switching is almost nonexistent because the counting and tabulating tool are always on the AR screen. The cognitive load is minimized because the system is doing most of the calculating and tabulating. The number of physical steps taken by the employee is minimized and optimized by the system. In a nutshell, it works the way our brains work, creating an optimal environment for inventory management with a reduced likelihood of error.

If your organization is considering an AR inventory tool, they come in many forms and budget ranges. Although hand-held AR devices are more budget-friendly than hands-free devices, when it comes to inventory management, the advantages of a hands-free, wearable device should not be underestimated, as the ability to reduce eye movements and attention switches is far superior with a wearable device.

If you are considering do-it-yourself AR authoring tools, be mindful of the risk of cognitive overload
Share on X

Beyond that, budgetary constraints can determine the sophistication of the AR algorithms to be used. For example, whether counts are manual or automated, and whether the path through the inventory space is determined by the inventory manager or is optimized by the AR system. Consideration must also be taken to the human factors of the system. Augmented information can reduce the cognitive load, but can also overload the user with unnecessary information.

Look for vendors who address these issues specifically and can present data to support the effectiveness of their offering. If you are considering do-it-yourself AR authoring tools, be mindful of the risk of cognitive overload. Good experimental testing and modification to optimize your tool are in order. Your goal is to provide users with “what” they want, “where” they need it, and “when” they need it.

Tech Trends offers a broad range of Digital Consultancy services to guide companies, individuals, and brands in effectively leveraging existing and emerging technologies in their business strategy.

Todd Maddox is Science, Sports and Training Correspondent at Tech Trends, and the CEO of Cognitive Design and Statistical Consulting. Follow him on Twitter @wtoddmaddox

The post Report: Managing the Supply Chain With AR appeared first on Tech Trends.

Tetra Pak is one of the largest companies that most people never heard of. Chances are, however, that you’ve used one of their products very recently, as the Swedish company supplies food processing and packaging solutions to manufacturers in more than 175 countries. Last year alone, they sold 188 billion packages, netting $12.2 billion in sales.

The original Tetra Pak carton changed the milk industry back in the 1950s
Share on X

Their original carton changed the milk industry back in the 1950s. At a 1961 press conference in Switzerland, the company presented the first machine for aseptically filled bacteria-free milk, but they haven’t stopped innovating in the decades since, and are now at the forefront of implementing technologies that will enable it to continue to scale its global operations in a much smarter way.

“Over the past few years we’ve invested in new technologies such as artificial intelligence, automation and data exchange to enhance traceability, predict potential machine problems and optimise operational performance for our customers,” explains Johan Nilsson VP, Digitalisation and Industry 4.0 at Tetra Pak. ”By embracing everything that the 4^th Industrial Revolution can offer, we can shape the future, and help customers seize the tremendous opportunities in tomorrow’s connected world.”

Industry 4.0 is essentially the idea of smart manufacturing, achieved through the Industrial Internet of Things (IIoT) which collects and connects data from devices to improve processes and increase efficiency in real-time. Digital technologies such as machine-learning, augmented reality and many others are part of that picture, as they can connect workforces, transform processes, analyse data, and provide greater visibility and flexibility across our supply chains.

By connecting packaging lines to the Microsoft Azure Cloud, Tetra Pak can collect operational data to help predict informed maintenance timing
Share on X

Across all sectors, we’ve seen businesses investing in the equipment and software that allows this information to flow between different platforms, people, and business processes to create new data-based revenue streams and systems. One example of how this works in practice is that Tetra Pak have sensors on more than 5,000 filling machines at customers’ sites, all connected to Microsoft Azure, which feed real-time performance data to the company for monitoring and analysis – nearly 700 million data points each year. As a result, maintenance can be scheduled much more precisely and cost-efficiently.

By connecting packaging lines to the Microsoft Azure Cloud, Tetra Pak can collect operational data to help predict informed maintenance timing. This means they can better foresee machine problems and quickly spot breakdowns – reducing plant downtimes

“When you have plants around the world, the service knowledge we gain from one plant comes to benefit another. This prevents issues from happening,” says Nilsson.

Data that’s gleaned from connected machines gives company technicians an operational snapshot across thousands of packaging machines in use. That information helps service engineers swiftly answer critical questions, such as: When did a specific failure happen and how long did it last? What was that machine’s temperature at the time? What was the pressure? The performance data is aggregated and available on technicians’ mobile devices.

Like many enterprises in various industrial sectors, Tetra Pak is using Mixed Reality technology to optimize its processes and increase efficiency
Share on X

When equipment does break down, however, the company has streamlined machine diagnostics and repairs for customers using Microsoft HoloLens devices. Like many enterprises in various industrial sectors, Tetra Pak is using Mixed Reality technology to optimize its processes and increase efficiency.

Back in 2017, Tetra Pak began selling service agreements that incorporated HoloLens to enable the company’s local service representatives to triage diagnoses and repairs in real time with heads-up, hands-free calling. By integrating those capabilities with Microsoft Azure, system specialists were empowered to remotely guide a HoloLens-wearing service engineer – via Microsoft Dynamics 365 Remote Assist – through the steps to fix the machine thousands of miles away.

“This is how we take the global expertise that we have available somewhere in Tetra Pak and bring it to the fingertips of the engineer in the countryside in Chile or Pakistan,” explains Nilsson, adding that this significantly cuts repair time and saves huge amounts of money in reduced downtime, not to mention travel costs.

“Our partnership with Tetra Pak and their investment in the technology is further evidence of the potential of Mixed Reality within automation and manufacturing,” says Lorraine Bardeen, general manager, Mixed Reality Business Applications, Microsoft.

Industry 4.0 has the potential to not only save manufacturers vast amounts of money, but also improve things across the board for businesses, employees and customers
Share on X

“In the context of industry 4.0, Mixed Reality is expediting processes such as engineering and maintenance to support the creation of smart factories, and companies like Tetra Pak are reimagining their business by leveraging modern, unified, intelligent and adaptable solutions that bring together the vast amounts of data across their organization to empower their employees with new tools for productivity.

Industry 4.0 has the potential to not only save manufacturers vast amounts of money, but also improve things across the board for businesses, employees and customers through sustainable use of resources, safer maintenance cycles, and empowered employees.

In 2017 Tetra Pak began selling service agreements that incorporated HoloLens to enable the company’s local service representatives to triage diagnoses and repairs in real time
Share on X

Industry 4.0 will ultimately enable global industrial operations such as Tetra Pak to function even more efficiently and intuitively
Share on X

“A product of mixed reality among other technologies, industry 4.0 will ultimately enable global industrial operations such as Tetra Pak to function even more efficiently and intuitively,” adds Bardeen. “With Mixed Reality, we can understand data in context and simplify workflows to extend human ability. When this happens workers feel more effective, businesses see more progress and everyone has a chance to participate in the modern workplace.”

For companies looking to get into Immersive technologies such as VR/AR/MR/XR our Virtual Reality Consultancy services offer guidance and support on how best to incorporate these into your brand strategy.

Alice Bonasio is a VR and Digital Transformation Consultant and Tech Trends’ Editor in Chief. She also regularly writes for Fast Company, Ars Technica, Quartz, Wired and others. Connect with her on LinkedIn and follow @alicebonasio on Twitter.

The post Packaging the Future appeared first on Tech Trends.