Connected networks of factory hardware and wearable technologies have the potential to improve operational efficiencies. Wearable devices like smart glasses, voice command headsets, fitness bands, and smart watches could enhance communication, productivity, and safety. For example, smart glasses could provide step-by-step instructions visually or enable remote support through video calls. Voice command headsets have already increased warehouse efficiencies by up to 30%. However, wearables need to be adapted for industrial use and address concerns around costs, network infrastructure, battery life, and data security before being widely adopted in manufacturing.

1. OPERaTIONS ADvANTAGE
The
42 Supply Chain Management Review • January/February 2016 www.scmr.com
The next wave
of manufacturing
innovation will come
from the Internet
of Things. Indeed,
connected networks
of factory hardware
are already enhanc-
ing process transpar-
ency and enabling
previously untapped analytics in several plants.
Wearable technologies have the opportunity to
further improve operational efficiencies. Also
known as wearables, the term refers to devices,
often connected to the Internet or to other devic-
es that are worn on the body and can be used to
enhance communication to and from the users.
Wearables are likely to be adopted quickly, given
the potential benefits in communication, produc-
tivity, and safety—and depending on the type of
technology that’s employed. For example, commu-
nication can be improved through smart glasses or
voice command devices. Step-by-step manufactur-
ing instructions can be transmitted visually through
smart glasses, while two-way audio headsets can
give users real-time notifications pertinent to their
activities on the floor.
Productivity increases from wearable voice com-
mand tools can increase factory warehouse efficien-
cies up to 30 percent, according to vendors of the
technology. Other wearables can monitor health and
stress levels of employees through fitness trackers,
while GPS and beacon technology can easily locate
employees and prevent them from entering a dan-
gerous zone, such as machine cages and boilers.
Let’s take a look at some of the wearable technolo-
gies that are likely to change the way you operate on
the factory floor in the future.
On Your Head…
While smart glasses largely remain a niche in the
consumer market, many of their capabilities can be
put to good use in industrial settings. Smart glasses
decouple operators from stationary terminals and
paper documentation. For example, pick-by-vision
provides benefits in operator safety and ergonom-
ics by allowing operators to be hands free. It also
increases efficiency by eliminating paper or sta-
tionary terminals, and increases accuracy by visu-
ally confirming via scanning. Another smart glasses
application is remote video conferencing, which
is emerging in field service industries because it
increases asset uptime and reduces support cost
by remotely supporting operators using cameras,
instead of having them wait on a technician to
arrive. Smart glasses can also decrease training lead
times, improve quality rates, and reduce cycle times
in assembly operations.
Voice control headsets are one of the oldest
wearable technologies and have been in use in
industrial settings for more than a decade. Today,
this technology is used almost exclusively in ware-
housing applications such as piece picking; verbal
commands direct operators to a picking location,
tell them what quantity to pick, and where to place
the picked items. Often, the device software links
with existing ERP software, allowing real-time
inventory updates and progress. So it’s not a big
leap for these warehouse applications to make their
way into a manufacturing environment such as an
PatrickVan den
Bossche is a partner
with A.T.Kearney and is
part of the firm’s global
operations practice.He
is based inWashington,
D.C.,and can be
reached at patrick.
van.den.bossche@
atkearney.com.
Christopher Simpson,
DanielWeiser,and
Nick Anderson are
consultants
with A.T.Kearney.
Wearables: Coming Soon
to a Shop Floor Near You
Connected networks of factory hardware are already enhancing
process transparency and enabling previously untapped
analytics in several plants.Wearable technologies have the
opportunity to further improve operational efficiencies.
By Patrick Van den Bossche,Christopher
Simpson, Daniel Weiser,and Nick Anderson

2. OPERaTIONS ADvANTAGE (continued)
The
www.scmr.com Supply Chain Management Review • January/February 2016 43
automotive plant. Where older devices rely on radio frequency
(RF), newer generations of voice control headsets can use WiFi
so that, combined with location detection, they can provide for
much more flexible applications (for example, materials han-
dling in plants). Because WiFi modules are now inexpensive,
allow for easy setup of applications, and integrate easily with
existing network security, they will most likely be the better
option for manufacturers looking to “get their feet wet.”
…Or on Your Wrist
The recent explosion of fitness bands and smart watches lets
users better monitor their health and fitness levels and com-
municate with the world around them. The fitness bands
on the market today use biometrics that detect and moni-
tor a user’s heart rate, determine how many calories the user
burns, or how well the user sleeps. Smart watches share
many of the capabilities of fitness bands, but with more com-
munication functionality because they’re typically integrated
with a smartphone and can display text messages, e-mails,
and calls without needing to access the phone. They also
operate many of the same applications as smartphones.
Both of these devices present interesting opportunities for
the factory floor. For example, the pedometer technology in
the fitness bands can measure efficiency and ergonomics by
tracking the steps required to execute particular operations.
This data can then be used in simulation software to further
optimize the storage locations of tools and parts in order to
minimize movement, similar to how you once videotaped
changeovers to reduce setup times. The GPS functionality
in these devices may prove increasingly useful from a safety
point of view as location-based applications can automatically
shut down robots or machines when employees are in danger,
including stopping a forklift that is rounding a blind corner. In
addition, employee biometrics could be monitored to identify
which operations or situations cause excessive exertion on an
operator that could result in future injury. QR codes on parts,
ingredients, or along process steps may provide traceability and
help maintain inventories. Or, instead of using clunky barcode
scanners, employees could use their smart watch to easily
update locations and quantities of inventories. Finally, transac-
tional operations that typically require computer terminals or
barcode scanners may now be performed in-line.
Security Concerns
As wearables gain a foothold in manufacturing, security
concerns will have to be addressed. The same security con-
cerns inherent in other digital applications apply, includ-
ing phishing, malware attacks, and network overloads.
Wearables collect specific data for manufacturing use, but
they never turn off, collecting extraneous data that could
be harmful if used incorrectly. Privacy is also a concern
because wearables can be used to collect data on person-
al habits, behaviors, and the health of employees. Making
this data secure, and abiding by government standards, is
of paramount concern if wearables are to become wide-
spread. Addressing these includes a variety of tactics, starting
with secure software and hardware development, and by creat-
ing proprietary tools that cannot easily be infiltrated. The judi-
cious deployment of devices (including role-based access and
specific user privileges) is another way to improve security.
Ready or Not
There is an opportunity for manufacturers to achieve both
tangible and intangible benefits from leveraging wear-
able technology. However, there are several considerations
before implementing a wearable solution in your factory.
Wearable devices are still relatively new. The consumer
applications in this space have only emerged in the past three
to four years, and the limited products that are available still
have some shortcomings that need to be addressed to make
them suitable for industrial applications. First of all, consumer
products are not designed or tested to endure the everyday
wear and tear of industrial operations, so wearables need to
be adapted to ensure structural integrity. Battery life is also a
concern as some of these devices, particularly smart glasses,
do not currently have enough battery life to last a full manu-
facturing shift. Finally, many factories do not have full Wi-Fi
coverage on the factory floor, or may not have the bandwidth
to handle full-scale wearables deployment, so manufactur-
ers should ensure their network infrastructure is prepared to
accommodate new devices.
Wearables suppliers also need to address cost. Because
most of today’s devices are designed to accommodate consumer
preferences and needs, their functionality is probably exagger-
ated for the shop floor and developers should “de-scope” func-
tionality to reduce the price. But, with the proliferation of the
Internet of Things, most manufacturers will already have the
systems, resources, and knowledge in place to accommodate at
least some wearable technologies.
Unlock the Benefits
The adoption of wearable technology on the shop floor has the
potential to tap new areas of improvement across industries.
Smart glasses, voice control headsets, fitness bands, and smart
watches are only the beginning of this next phase of industrial
modernization. To realize the full benefits, manufacturers need
to look at wearables not just as a gimmick to modestly improve
upon activities that are already done with other tools and tech-
nologies. Instead, they should be seen as a tool to capture a
combination of connected data (for example, location info, bio-
metrics, and product data) that is otherwise hard to come by.
Analyzing this data for trends and improvement opportunities
has the potential to unlock otherwise hard-to-identify benefits,
both for employees and employers. jjj