-Adam Sharman, CEO LMAC Group, APAC

Argus ManuTech is a new name, but it has over 50 years of experience as an industry-leading manufacturer of electrical products. It specialises in cable and harness assemblies, viscous reheating products, and electrical medical devices. It has a rich history of supplying local and global customers from its facility in Christchurch.

The global manufacturing sector is experiencing a major transformation fuelled by rapid technological advancements and an increasing demand for efficient, sustainable, and data-driven operations.

Recognising the opportunities these changes presented, Argus ManuTech set out to tackle key challenges such as improving productivity, optimising supply chains, and remaining competitive despite rising labour costs.

To address these issues, the company developed a clear roadmap for its digital manufacturing transformation.

Argus ManuTech’s digital transformation strategy was developed through an initial two-step assessment process. Initially, a business survey was conducted with all employees to understand their challenges and needs regarding their work and the opportunities for the organisation.

This survey proved invaluable in shaping the transformation strategy and identifying key insights and themes. Nathan Hay, General Manager, says, “I can’t stress enough how impactful and important it was to engage with staff before developing any strategy.”

The second step involved using the Smart Industry Readiness Index (SIRI) framework to guide Argus ManuTech in prioritising initiatives for digital transformation initiatives.

The SIRI framework, an Industry 4.0 diagnostic tool facilitated for Argus ManuTech by LMAC’s certified assessors, was employed to evaluate the current digital state of Argus ManuTech’s factories. This framework addresses three fundamental aspects of Industry 4.0: Process, Technology, and Organization.

Based on this assessment, four high-impact areas were identified for ManuTech to focus its resources on: vertical integration, shop floor automation, shop floor intelligence, and inter and intra-company collaboration.

Using these impact areas, Argus ManuTech developed a digital transformation roadmap.

1. Vertical Integration: This strategy aims to refine decision-making processes, reduce manual tasks, and improve forecasting and inventory management through data-driven solutions.

Partnering with Dsifer and LMAC, Argus ManuTech established a data lake to aggregate unstructured and structured information into a single data source for manufacturing and organisation insight and system integration.

2. Shop Floor Intelligence: Using technology and the data available through the data lake, ManuTech partnered with Dsifer to develop a visual shop floor with real-time information feedback, enhancing decision-making processes and overall operational improvement.

This includes implementing digital work instructions, real-time production dashboards, and machine data collection. Nathan Hay says, “This transformation has been a game-changer, enabling our operations teams to identify problems and potential areas for improvement promptly, preventing issues before they escalate.”

3. Shop Floor Automation: Argus ManuTech recognised the opportunity for automation to enhance safety, maximise efficiency, improve productivity, and drive innovation in the manufacturing process.

The automation strategy involved partnering with Design Energy to identify automation opportunities, prioritise them based on potential ROI, and involve shop floor team members in the scoping, selection and implementation process.

4. Inter and Intra-Company Collaboration: Argus ManuTech recognised that team engagement and capability building are crucial for a successful digital transformation. This strategy focuses on driving transformational change through improved collaboration between and within teams and business units.

A digital lean training program was established through partnerships with the Learning Wave and LMAC to foster collaboration and continuous improvement and build digital skills in the workforce.

Underpinning these focus dimensions, Argus ManuTech developed a comprehensive change management strategy to support team engagement around an aligned purpose.

Branded, the Argus Improvement Mission (AIM), a programme was developed to provide deliberate focus on organisation identity, values and mission to create a one-team culture of support, innovation and improvement.

Through this holistic approach to digital transformation, combining technology, data, automation, and people focuses, Argus ManuTech has seen a significant uplift in production performance, moving from 80% efficiency in 2023 to 93% in 2024. The data-driven approach to production planning and forecasting, combined with production efficiency uplift, has resulted in a $1.6m inventory savings in the same period.

Perhaps, most importantly, Argus ManuTech has seen a significant shift in culture, resulting in an all-of-team approach to continuous improvement, with new ideas being generated from all areas of the business.

Nathan Hay says, “The reason we have the traction we have is that many of the new initiatives are being driven by the teams themselves, not by management”.

Argus ManuTech Ltd.’s digital transformation journey is a testament to the company’s commitment to innovation and operational excellence. By engaging the whole organisation, leveraging the SIRI framework and focusing on key areas such as automation, vertical integration, and collaboration, Argus ManuTech is well-positioned to navigate the challenges of Industry 4.0 and emerge as a leader in the manufacturing sector.

Argus ManuTech has proven how it is possible to manufacture in NZ competitively. And how this valuable capability is shared by providing competitive manufacturing services to their contract manufacturing clients. The strategic roadmap outlined in this article provides a comprehensive guide for other companies looking to embark on their own digital transformation journeys.