Vince Sassano Of Strategic Performance Company On How To Use Digital Transformation To Take Your Company To The Next Level
Best Practice Sharing: For larger organizations, it’s possible to garner insights and expertise on projects others have done to investigate their viability in your department.
As a part of our series about “How To Use Digital Transformation To Take Your Company To The Next Level”, we had the pleasure of interviewing Vince Sassano.
Vince Sassano is the founder and CEO of Strategic Performance Company, Inc., a technology provider specializing in cost-effective, low-risk Digital Transformation. SPC focuses on meeting manufacturers where they’re at to improve productivity and drive frontline worker engagement, leading to greater profitability and sustainable cultural change. You can reach him at www.3dspc.com.
Thank you so much for joining us in this interview series. Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
After graduating from Iowa State with a bachelor’s degree in computer science, I started as a computer engineer doing IT consulting, which led me to build a firm that provided IT services and the installation of accounting and ERP systems. I sold the firm in 2000 and decided to focus solely on Operational Technology (OT) and shop floor efficiencies and the barriers that limit productivity. This was the genesis of Strategic Performance Company (SPC). My combination of technology background and 30+ years of operations experience has enabled me to provide unique and significant value to manufacturers as they navigate the challenges associated with collecting and transforming data into actionable insights, leading to greater profitability.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lessons or ‘take aways’ you learned from that?
During the process of creating a custom report that gave a client visibility on exposure to risk, the calculations got mixed up and I commented, “Well, it’s only money!” Not surprisingly, my attempt at humor did not go over well. I was reminded that data is relied upon to make critical company decisions affecting the livelihood of many employees.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?
That person is my dad. We were deep into a project with one of our customers and they refused to pay some outstanding invoices, which meant that making payroll would have been nearly impossible. Dad was a banker and had this advice, “Their refusal to pay does not mean they don’t owe you the money. Sit down, talk to them, and work something out.” I did and it saved the day. I learned that empathy and face-to-face communication are critical elements of creating a successful business.
Is there a particular book, podcast, or film that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
That’s an easy one. The book “The Goal” by Eliyahu Goldratt. The way the author nests principles of plant productivity into a story about life is brilliant! I don’t want to give away the punch line but finding bottlenecks (aka Herbie) is the key to reaching higher levels of productivity. Teaching manufacturers to find and resolve bottlenecks on their own utilizing Digital Transformation tools is incredibly rewarding, and that is SPC’s aim with every customer.
Extensive research suggests that “purpose-driven businesses” are more successful in many areas. When your company started, what was its vision, what was its purpose?
The company’s vision is embodied in our domain name: 3dspc.com. 3d stands for Data Driven Decisions. SPC’s purpose is to democratize data, making it accessible and actionable for the entire operation. We specialize in providing our customers with trusted data as a foundation, followed by operation-wide visibility, which leads to action and results.
One of our first experiences of being driven by purpose was with an injection molding company, well-known for its toy models. The VP of manufacturing had done his research and was confident in the data he needed for improvement. We provided the digital tools necessary to collect, analyze, and act on the relevant data. Armed with the visibility needed, decisions moved from gutfeel to objective and data-driven, with excellent results.
Are you working on any new, exciting projects now? How do you think that might help people?
Yes! We are incorporating limited memory AI into our core ProdoTrakTM platform. This implementation of a machine learning model derives knowledge from previously acquired data, typically from machines, work cells, and/or operators. The results are insights derived from existing data without requiring analysis or human interpretation. While these insights are available in today’s platform, manual drill-down is required. SPC’s AI version will increase the ease of access to insights, drive that up and down the operations chain, ensure a common language for objective decision-making, and drive productivity gains faster.
Thank you for all that. Let’s now turn to the main focus of our discussion about Digital Transformation. For the benefit of our readers, can you help explain what exactly Digital Transformation means? On a practical level what does it look like to engage in a Digital Transformation?
Digital Transformation, often used interchangeably with Industry 4.0, is the application of digital technologies to transform every aspect of a business. In the manufacturing domain, SaaS tools are frequently deployed to improve operations, customer experience, and product development. In my experience, however, some form of customization is normally required to address a plant’s specific needs. And this customization combined with properly implemented culture change makes all the difference in success rate.
On a practical level, companies need to identify or brainstorm with peers or outside firms about the primary setbacks to achieving higher productivity. Typical pain points include attracting and retaining talent, lack of visibility on bottlenecks, and acquiring specific knowledge or skills on a particular line that needs to be more profitable. The critical success factor for Digital Transformation is openness to change. And that change must result in tangible financial benefits to be justified.
Which companies can most benefit from a Digital Transformation?
Those who have resisted embracing an open and honest discussion regarding the potential benefits. SPC typically encounters three types of companies: (1) those who have reinforced the status quo, (2) those who have tried and failed and are now skeptical, and (3) those who are willing to move forward but have no idea how and where to begin. It is important to assess a company’s readiness for Digital Transformation and craft an appropriate strategy that creates confidence and builds momentum. Quantum leaps are risky, but continual, annual improvement almost always reaps rewards.
We’d love to hear about your experiences helping others with Digital Transformation. In your experience, how has Digital Transformation helped improve operations, processes and customer experiences? We’d love to hear some stories if possible.
SPC engaged with a client that was operating a $500 million, 1000+ employee plant tracking more than 30 production lines on a spreadsheet for downtime, efficiencies, yields, rejects, and waste. Tracking was done weekly by department and by line. Daily tracking was not possible because the data entry alone would be too daunting. Even the weekly data became too cumbersome, as it was stale by the time they had entered and corrected all the data. We introduced them to the power of a database. Within 6 months productivity increased 10–25% and they sustained these gains for years. Not only did they invest the time to set up the system properly, but they also sought trusted outside experts to guide them. Now they have the visibility to support continual improvement initiatives and have the money to do so, because of increased profits.
Has integrating Digital Transformation been a challenging process for some companies? What are the challenges? How do you help resolve them?
Absolutely, and I would not say some companies, I’d say most. One of the most prevalent challenges is cultural change. Companies, especially manufacturers, often do not know how to effectively manage the change process and cultural transformation required. As a result, the status quo becomes the norm. SPC is a catalyst for change by educating senior management on all aspects of a Digital Transformation project, including the investment required (financial, HR, resources) along with the resulting benefits.
Based on your experience and success, what are “Five Ways a Company Can Use Digital Transformation to Take It to The Next Level”?
Each manufacturer we work with is in a different place concerning Digital Transformation. We refer to it as Digital Maturity which is a measure of willingness to change and readiness for change. While the end goal may be the same, the starting point is likely different. From our history of working with manufacturers from many vertical market segments, here are 5 strategies manufacturers employ to get started and progress to the next level.
- Wholesale Change: This is a top-down approach where senior management recognizes the need for improvement, the potential benefits of relevant technology, and they are ready for large-scale change.
A manufacturer reached out for help in improving productivity. After achieving buy-in from the operations team, SPC implemented its core ProdoTrakTM solution providing greater visibility, starting at the top and progressing department by department. The results exceeded expectations (20%+ boost in throughput) because they were starving for reliable, trusted data and they immediately took action to achieve the desired results.
2. Modular Pilot. Great for an organization that is skeptical of large initiatives or unpredictable budgets. This modular approach targets a particular pain point based on baseline measurements and improvement objectives. The project is generally low cost and low risk with significant impact which builds confidence and momentum.
An existing customer was experiencing inconsistent performance on primarily manual lines. SPC determined that productivity could be increased if the operators had greater visibility into how the line was performing relative to its potential. SPC installed intuitive digital technology that informed operators about real-time line performance using a green/yellow/red numerical score, leading to a rapid increase of 40% in throughput. Breakeven occurred in half the expected time so the project was repeated on multiple lines.
3. Departmental Quick-Hit. Department heads with sufficient autonomy can decide to do something within their authority. Keeping the dollar amount within their operations budget raises fewer eyebrows and allows departments to reap the benefits.
SPC worked with a plant department lead who had the authority to purchase and utilize technology as long as adhering to budget guidelines. Downtime was a major pain point. The goal was to address three problem packaging lines. They were confident that the rewards would justify the investment. The department achieved a 30% downtime reduction within 90 days. The project had little chance of being implemented had multiple levels of approval been required. The manager was rewarded for taking the initiative. Ironically, project funds came from the painting supplies budget! :)
4. Frontline Driven: Day-to-day roadblocks to achieving higher levels of throughput are often most evident to those who live on the front line. However, these workers often do not have the authority or a voice to impact change.
One of our customer’s front-line workers was certain that a small digital implementation would lead to greatly improved operations. She scratched out a simple justification, received project approval, and achieved performance gains that exceeded expectations. The initiative demonstrated by the worker made the line operators’ jobs easier by reducing problems while increasing profits for the organization.
5. Best Practice Sharing: For larger organizations, it’s possible to garner insights and expertise on projects others have done to investigate their viability in your department.
One of our clients with sister divisions spread across multiple states heard about SPC Digital Transformation successes in other plants. They embarked on a fact-finding mission visiting plants to observe results firsthand. After completing due diligence, they embarked on a series of their own transformation initiatives. The beauty is that it was all based upon proven projects, thereby mitigating risk. Seeking out similar deployments within their own corporate structure turned out to be the quickest and most cost-effective means to accelerate their own Digital Transformation.
In your opinion, how can companies best create a “culture of innovation” in order to create new competitive advantages?
Most important is a spirit of openness that allows the seeds of innovation to germinate and grow, along with a willingness to regularly challenge the status quo. One of our customers was convinced they were “fine” and did not need any help, digital or otherwise. They were measuring increased performance by pounds produced compared with the previous month and/or year. SPC engaged them in a discussion on world-class manufacturing and deduced that their throughput efficiency had increased from 35% to 45%. Before seeing the data, they were sure they were knocking it out of the park. We showed them what was possible with minimal risk, and cost-effective Digital Transformation. SPC implemented ProdoTrakTM and the company is now consistently 80–85% efficient. Second and third- shift resource requirements have been reduced and the need for capital expenditure has dropped significantly due to the increased plant capacity.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
“To become different from what we are, we must have some awareness of what we are.” — Bruce Lee.
It constantly reminds me of how important it is to fully understand your current state and take inventory of your strengths and weaknesses. Building a better future starts with honest self-evaluation. Only then can manufacturers identify opportunities to create a more efficient and profitable business, increase customer satisfaction, and foster a better working environment.
How can our readers further follow your work?
I’d love to chat and exchange ideas on how to drive manufacturing success! Feel free to reach out to me on LinkedIn or visit us at www.3dspc.com.
Thank you so much for sharing these important insights. We wish you continued success and good health!
