Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation A series exploring Industry 4.0 technologies and their potential impact for enabling digital supply networks in manufacturing Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation Contents What are smart glasses and augmented reality HMDs? 4 Benefits of smart glasses and AR in the supply chain 6 Criteria for evaluation and adoption 8 Key applications for smart glasses in your supply chain 10 Getting started with smart glasses and augmented reality devices 11 Key Deloitte contacts in smart glasses and augmented reality 12 02 Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation Do you need smart glasses in your supply chain? Smart glasses are already being used to improve quality, standardize workflows, accelerate decision making, and enhance communication in logistics, manufacturing, and maintenance operations throughout the supply chain. Of interest because: A trend in more universal, data-driven decision making is evolving just as leaps in hardware and software capability have led to smaller, more ergonomic devices. Could improve your supply chain by: Boosting labor effectiveness and productivity; reducing quality defects and rework; improving workflow standardization; enhancing workforce collaboration; improving safety. Why not? The technology is still rapidly evolving and has not yet reached operational maturity. Companies will have to understand how they will leverage data for critical use cases and should expect difficult integration challenges. Deloitte recommends: Evaluate the business case for smart glasses and augmented reality in your supply chain and pilot on a small number of critical use cases. 03 Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation What are smart glasses and augmented reality HMDs? Overview Recent developments and outlook as manufacturing, logistics, field services, Smart glasses and augmented or mixed Smart glass technology has evolved inspection, and operations. A recent reality head-mounted displays (HMDs) are significantly over the last five years. Today’s study showed that 93% of large industrial wearable electronic devices that interface devices are less intrusive, more ergonomic, companies are either using or evaluating between humans and computing through and faster than their predecessors. smart glasses in their enterprises today, various forms of a heads-up display. Smart Emerging from the initial lackluster reception indicating that decision-makers foresee glasses typically have multiple features to these devices faced in the consumer setting, wearables as a major enterprise platform.1 allow users to both display and analyze the capabilities enabled by smart glass Product-specific attributes such as an information relevant to their surroundings. solutions are poised to drive real value in easy-to-use design, improved ergonomics, With augmented or mixed reality, digital enterprise environments. This enterprise and portability have improved the general projections are overlaid onto real life movement will likely unfold over the next usability of the devices and decreased objects, providing contextual information decade as smart glasses and augmented environmental safety risks. These changes and allowing users to visually manipulate reality HMDs continue to improve on their are playing out in the market today: their surroundings. Today, augmented reality ability to address important commercial Alphabet recently relaunched Google is possible through smartphones, tablets, use cases. Glass, eschewing the consumer market for and a host of other mediums; this paper will Smart glass technology is already serious enterprise customers. And many focus specifically on head-mounted displays advancing in hands-on industries such hardware manufacturers are incorporating and their impact on supply chains. 4 Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation augmented reality into safety glasses enterprise use in the supply chain and Overview or existing industrial equipment. The operations functions. technology is improving at a rapid pace— Value • Contextualized information Smart glasses in the supply chain battery life has been extended, visual drivers • Increased workflow Smart glasses and augmented reality latency continues to drop, and many devices standardization devices have the potential to enhance and can now even accommodate prescription • Enhanced training and even replace existing technology solutions lenses—and the technology hype is starting communication within enterprise supply chains, and in to turn into reality. Companies are starting • Hands-free assistance some cases even change the very structure to pilot the technology, selecting smart • Visual documentation and of the work environment. Companies glasses that have high-performing hardware, enhanced process tracking implementing augmented reality HMD pilots a simple and intuitive interface, easy • Greater employee are already demonstrating use cases that integration, and an ecosystem of services engagement lead to increases in workplace efficiency, and accessories. productivity, and compliance, and this will Scope Enhanced capabilities only grow as the technology matures. Initial Forrester predicts over 14 million workers within all segments of the implementation will be driven through will use smart glasses by 2025. Enterprise supply chain spending on smart glasses, $6 million in the logistics, maintenance, and assembly 2016, is expected to reach as high as functions, but as the devices gain more Technology Smartphones, tablets, $4.3 billion in 2022.2 Technology cost mainstream adoption, companies will be substitutes PCs, handheld scanners, and barriers to adoption will continue to more comfortable experimenting with the manuals, VR devices decrease as this market continues to grow, technology in different environments. and it will likely be driven by increased Five key developments in smart glasses and augmented reality IoT infrastructure Battery life Cost reductions Improvements in hardware form factors and ergonomics Parallel advancements in VR 5 Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation Benefits of smart glasses and AR in the supply chain Primary potential benefits Value drivers for smart glasses Through audio and video capabilities, When used effectively in the right setting, workers can interact with other colleagues smart glasses and AR displays have a and seek assistance on complex issues Increase productivity number of important advantages over from experts within their organization through real-time, computers, tablets, and other existing anywhere on the globe. Such productivity contextualized workflows technology: contextualized information, gains improve the cost-effectiveness of increased workflow standardization, hands- supply chain operations, expedite issue Reduce quality free assistance, and documentation. troubleshooting, and reduce the number of defects and rework quality errors. While performing complex Smart glasses provide a hands-free tasks, workers can summon interactive approach to performing work by providing on-demand training videos, which overlay data and virtual instructions to workers as augmented reality on their environment. Facilitate informed, they complete activities. Virtual instructions This is especially critical in industries that real-time decision-making are being used to standardize workflows in face an aging workforce where significant industries with seasonal labor changes, such institutional knowledge is disappearing as ecommerce logistics, and for complex, rapidly. Companies are starting to mitigate Enhance workforce rapidly changing tasks, such as maintenance the risks of industry transition and collaboration and repair. Improve safety through standardization Secondary potential benefits (intangibles) of smart glasses • Simplify routine workflow items such as picklists and checklists • Decrease risk in industrial operations • Enhance effectiveness of training programs with the use of interactive and virtual sessions • Capture workflow analytics to identify process improvement opportunities • Increase accountability through inspection workflow recording 6 Using smart glasses and augmented reality head-mounted displays to drive supply chain innovation institutionalize knowledge by facilitating standardization and learning through the Case study: Semiconductor Manufacturing Co.3 devices to increase speed to proficiency. A semiconductor manufacturer faced Observed benefits in the supply chain: various issues with its incident resolution Furthermore, archived videos captured • Enabled high-quality and reliable processes, resulting in severe delays while performing job duties can be used off-shore manufacturing and assembly during critical component assembly. An as evidence during inspections to improve by providing the capability to bring inability to visually communicate issues standardization and prove regulated steps real-time distributed expertise spread with remote experts and cumbersome were followed. Companies are starting to over three continents in a matter process manuals were the key use these capabilities for end-of-line quality of seconds examinations where detailed checklists and contributors of the issue. • Fifty percent reduction in repair time