Digital Transformation Project – PPG Industries

12

October

2016

5/5 (1)

PPG is a Pittsburgh based Fortune 500 company and a global supplier of coatings, optical products, glass, fiberglass speciality materials and paint. PPG is a large multinational company with over 47,000 employees worldwide, operating with over 150 manufacturing locations spread across all continents. PPG strives to develop innovative products to meet future needs, deliver consistent sales and earnings growth and achieve superior shareholder returns.

PPG operates in three main segments and produces a wide variety of products. Throughout these segments, PPG is creating value by using its strong distribution channels in order to meet the needs of the customers. Additionally, PPG produces highly innovative and specialized products. They won several prestigious R&D 100 Awards for the development of innovative technologies (PPG Inc., 2016). By creating these values, PPG developed a strong brand reputation and, thereby, consistent financial performance during the years. PPG improved net sales from continuing operations with $15,33 billion in 2015 compared to $14,27 billion in 2013 (PPG Annual Report 2015).

Project management at PPG is largely shaped by the project portfolio management. The aim of the project portfolio management is selecting projects for execution based on strategic fit and to allocate resources. PPG has various projects running with different aimed benefits and costs. Most ideas stem from employees within the department. The employee contacts his direct supervisor, and together they look at the opportunities the project has. Thereafter, the project is placed in an Excel file, which is updated monthly, showing the key aspects of the project.

The communication between the employees is based on traditional communication channels. First of all, the employees are using Webmail as communication tool, to stay connected with each other. The important information is being discussed by sending e-mails to colleagues. At high necessity, it is possible for employees of PPG to use the phone to share urgent information. Unfortunately, this is not always possible due to the time differences. Moreover, SharePoint is being used as a platform in order to share Excel and PowerPoint files within the organization. Several problems arise using these systems. For example, management does not always know to what extent the project is performing. Additionally, the project leader does not always provide updates.

To solve this problem, we strongly suggest to further digitalise project management and execution by implementing a cloud-based Project Management Information System (PMIS). This system will provide both management and workers with real-time information such as scheduling, budget management, task assignment, quality control, documentation and collaborative tools. The main purpose of the PMIS is to boost efficiency by making the development cycle more visible. Specific tasks could be tracked, and, thereby, all stakeholders can have a better understanding of the project’s process. In addition, the PMIS will also function as a platform for communication and collaboration. This will enable the organization to unlock additional value by streamlining and improving interactions. This change could improve the productivity and interaction of workers by 20 to 25 percent (McKinsey, 2012).

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Is the self-driving car taking over the world?

9

October

2016

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Self-driving cars are becoming a hot topic, while they are already cruising the streets today. The self-driving cars are not just about a hands-free driving experience, it is an urban transformation that will change the way people navigate, access information, and interact with each other. Self-driving cars are a rapidly evolving technology, which only a few years ago was still considered fiction.

Over the past 20 years, digital tools have changed the way people meet, access knowledge and navigate. More and more intelligence is entering our cities. We can now collect real-time data on every dimension of urban life. The same trend is happening in the automotive industry: cars collect information about passengers and about the environment. Self-driving vehicles are the result, and will have a dramatic impact on our urban life.

Important benefits of this technology are that autonomous vehicles don’t get lost, creating less congestion and shorten travel times. More important, they would also make much safer roads. Nowadays, more than 1.2 million people a year die worldwide, because of car accidents (McKinsey, 2015). The incredibly complicated technology behind self-driving cars makes hundreds of calculations a second by an on board computer. These readings have virtually eliminated driving errors for test cars on the road (Dailymail, 2014). Because of this, their potential to ease congestion is high as well. In addition, self-driving cars could mitigate parking problems. If no parking is available, cars could circle the block until the passenger is ready or could look in other regions for a spot by itself.

One of the key challenges for the driverless future is to address the underlying logistics and legalities (McKinsey, 2015). ‘Who is liable’ is one of the main questions. Social acceptance is another important component developers and technicians are struggling with. It is still questionable if drivers are ready and willing to take their hands off of the wheel. Additionally, digital security is another one. Computer viruses are too familiar and they can cause major problems.

All in all, I think that self-driving cars have the potential to cause an incredible new wave in the future where the whole world benefits from. Creating less congestion and less traffic accidents are convincing enough to accept this technology. I hope this will be the new way of driving.

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How disruptive is 3D printing really?

8

October

2016

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We have all seen and heard something about one of the newest and most decisive technologies in the world: 3D Printing. Although this phenomenon is already growing a couple of years, it has still not reached its peak.

3D Printing is an additive manufacturing process that creates a physical object from a digital design. All the 3D Printing technologies are based on one principle: a digital model is turned into a solid three-dimensional physical object by adding material layer by layer.

All the 3D Printing technologies are really hype today. Until 2009, printing was mostly limited to industrial uses, but then patents started expiring. The first 3D printer was born through the RepRap project’s mission to build a self-replicating machine (3dhubs.com, 2016). As more and more manufacturers followed, what once cost $200,000 suddenly became available for below $2000, and the consumer 3D Printing market took off in 2009 (Wohlers’s Report, 2015). 3D printer sales have been growing ever since, and as additive manufacturing patents continue to expire, more innovations can be expected in the years to come.

3D Printing is hailed as a revolutionary technology. The technology is received as disruptive and unwished on one hand. It could lead to confusion in the marketplace, with consumers struggling to wade through all the different options. It could result in a wide variation in standards and quality as regulators and government agencies struggle to keep up or act as enforcers in an increasingly growing and changing global market (Forbes, 2016). On the other hand, it could have significant potential to alter business, manufacturing and society in general. Start-ups, producing physical products, could gain from the significantly smaller turnaround time in prototype production. Besides that, firms can offer greater customization and do not have to hold stock unnecessarily. Additionally, 3D printers can also produce components that weigh less, important in fields as aeronautics and the automotive industry for example. Today, you can purchase 3D printed shoes, 3D printed jewelry, 3D printed pens. 3D printing is already changing health care, by developing 3D printed skin for example.

I think we can say that 3D Printing re-invented the way of production and consumption for all type of markets. A wide variety of markets can significantly benefit from this new technology, whereby the 3D printer will be more community driven. Unless the next developments remain an exciting unknown, the practical advantages of 3D printing nowadays are more than welcome.

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