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Flevy Management Insights Q&A
What impact does the increasing use of augmented reality (AR) and virtual reality (VR) have on Visual Management practices, especially in training and operations?


This article provides a detailed response to: What impact does the increasing use of augmented reality (AR) and virtual reality (VR) have on Visual Management practices, especially in training and operations? For a comprehensive understanding of Visual Management, we also include relevant case studies for further reading and links to Visual Management best practice resources.

TLDR AR and VR technologies are revolutionizing Visual Management in training and operations, improving learning efficiency, operational efficiency, and innovation, with significant impacts on cost savings and employee performance.

Reading time: 4 minutes


Augmented Reality (AR) and Virtual Reality (VR) technologies are rapidly transforming the landscape of Visual Management practices, especially in areas such as training and operations. These technologies offer immersive experiences that can significantly enhance learning and operational efficiency. The integration of AR and VR into Visual Management practices is not just a trend but a strategic shift that organizations are making to stay competitive and innovative.

Impact on Training

Training programs are one of the primary areas within organizations that have been revolutionized by the advent of AR and VR technologies. Traditionally, training, especially for complex tasks or in high-risk environments, has been challenging and resource-intensive. AR and VR provide a safe and controlled environment where employees can learn and practice skills without the real-world consequences of failure. For instance, VR simulations are being used for surgical training in the medical field, allowing surgeons to practice procedures in a risk-free environment. Similarly, AR applications can overlay instructions and guidance directly onto the physical work environment, aiding in on-the-job training and reducing the learning curve.

According to a report by PwC, VR learners complete training up to four times faster than classroom learners. This not only highlights the efficiency of VR training but also its effectiveness in imparting knowledge and skills. Moreover, AR and VR can significantly reduce the costs associated with traditional training methods, such as the need for physical materials, travel, and accommodation for trainers and trainees. The immersive nature of AR and VR also leads to higher retention rates, with learners showing improved recall and proficiency in tasks trained via these technologies.

Real-world examples of AR and VR in training include Walmart's use of VR for employee training in customer service and management practices. This initiative has enabled Walmart to enhance employee performance and customer satisfaction. Similarly, Boeing has utilized AR for assembly process training, resulting in a 25% improvement in productivity. These examples underscore the transformative potential of AR and VR in training, making it a critical component of modern Visual Management practices.

Explore related management topics: Customer Service Employee Training Visual Management Customer Satisfaction Job Training

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Impact on Operations

In the realm of operations, AR and VR technologies are enabling organizations to achieve Operational Excellence through enhanced visualization, real-time information overlay, and predictive analytics. AR, in particular, has found applications in maintenance and repair operations, where technicians can receive real-time guidance and information overlaid on the equipment they are working on. This not only speeds up the repair process but also reduces errors, leading to higher operational efficiency and lower downtime.

VR is being used for operational planning and simulation, allowing managers to visualize workflows and processes in a three-dimensional space. This capability is invaluable for Strategic Planning and optimizing space and resource utilization. For example, logistics companies are using VR to simulate warehouse operations to identify bottlenecks and optimize layouts without physically rearranging the space. According to Gartner, by 2022, 70% of enterprises will be experimenting with immersive technologies for consumer and enterprise use, and 25% will have deployed them to production, underscoring the growing importance of AR and VR in operations.

One notable example of AR in operations is DHL's use of AR glasses in warehouses for order picking. The AR glasses provide visual aids to workers, showing the quickest route and placing a visual marker on the item that needs to be picked. This has resulted in a 15% increase in operational efficiency. Similarly, GE Healthcare has used VR to simulate the manufacturing process for new products, significantly reducing the time and cost associated with product development and manufacturing setup.

In conclusion, the increasing use of AR and VR technologies is having a profound impact on Visual Management practices, particularly in training and operations. These technologies offer innovative ways to enhance learning, improve operational efficiency, and drive innovation. As adoption continues to grow, organizations that effectively integrate AR and VR into their Visual Management practices will likely gain significant competitive advantages in terms of cost savings, operational efficiency, and employee performance.

Explore related management topics: Operational Excellence Strategic Planning Competitive Advantage

Best Practices in Visual Management

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Explore all of our best practices in: Visual Management

Visual Management Case Studies

For a practical understanding of Visual Management, take a look at these case studies.

Workplace Reorganization for Specialty Retailer in Competitive Market

Scenario: The organization in question operates within the specialty retail sector, facing significant challenges in maintaining operational efficiency across its numerous locations.

Read Full Case Study

Visual Workplace Transformation for Defense Contractor in Advanced Manufacturing

Scenario: A prominent defense contractor specializing in aerospace technologies is facing significant challenges in maintaining an efficient Visual Workplace.

Read Full Case Study

Operational Efficiency for Aerospace Manufacturer in Competitive Market

Scenario: The organization is a mid-sized aerospace components manufacturer in North America struggling with integrating Visual Workplace principles into their production floor.

Read Full Case Study

Visual Workplace Transformation for Global Manufacturing Corporation

Scenario: A global manufacturing corporation is facing challenges in increasing the efficiency and effectiveness of its manufacturing and operational processes through the implementation of a Visual Workplace.

Read Full Case Study

Educational Platform Process Reorganization for Online Learning

Scenario: The organization is a provider of online learning platforms catering to higher education institutions.

Read Full Case Study

5S Methodology Revitalization for Automotive Supplier in North America

Scenario: The organization is a North American automotive parts supplier struggling with operational inefficiencies attributed to ineffective implementation of the 5S methodology.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What are the critical success factors for embedding 5S practices into continuous process improvement initiatives?
Embedding 5S practices into continuous process improvement initiatives necessitates Strategic Planning, Leadership Commitment, active Employee Engagement, and Continuous Monitoring and Improvement to significantly boost operational efficiency and performance. [Read full explanation]
How is Kaizen methodology being enriched with 5S practices to foster a culture of continuous improvement and innovation?
Integrating Kaizen with 5S practices creates a comprehensive framework for Operational Excellence, driving efficiency, quality, and employee engagement through continuous, incremental improvements. [Read full explanation]
What metrics or KPIs are most effective for measuring the impact of 5S implementations on operational efficiency and employee productivity?
Effective 5S implementation metrics include Reduction in Waste, Improvement in Equipment Effectiveness, Cycle Time Reduction, Improvement in Work Area Efficiency, Increase in Employee Engagement and Satisfaction, and Enhancement in Safety Performance, as demonstrated by Toyota, Boeing, and GE. [Read full explanation]
What emerging technologies are expected to significantly impact the implementation of 5S practices in the next five years?
Emerging technologies like IoT, AI and ML, and AR and VR are poised to significantly enhance 5S practices in Lean Management and Operational Excellence by improving efficiency, safety, and productivity. [Read full explanation]
In what ways can 5S methodology be adapted to enhance customer experience and service delivery, beyond internal operational improvements?
Adapting the 5S Methodology enhances Customer Experience and Service Delivery through streamlined processes, engaging environments, and improved Employee Engagement, driving satisfaction and profitability. [Read full explanation]
What role does Visual Management play in enhancing cybersecurity awareness and practices within organizations?
Visual Management significantly improves cybersecurity awareness and practices by making complex information accessible through visual aids, fostering a culture of security awareness and collective responsibility. [Read full explanation]
How can Obeya rooms be designed using 5S principles to enhance team collaboration and project management efficiency?
Applying 5S principles (Sort, Set in order, Shine, Standardize, Sustain) to Obeya room design improves team collaboration and project management by creating an organized, efficient, and sustainable workspace. [Read full explanation]
What are the implications of remote work trends on the future of 5S and workplace organization?
Remote work trends necessitate the adaptation of traditional 5S principles to digital environments, focusing on digital decluttering, tool organization, digital hygiene, flexible standardization, and sustaining engagement, with an emphasis on leadership and technology in maintaining productivity and culture. [Read full explanation]

Source: Executive Q&A: Visual Management Questions, Flevy Management Insights, 2024


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