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?

     Joseph Robinson    |    Visual Management


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

Before we begin, let's review some important management concepts, as they relate to this question.

What does Immersive Learning Technologies mean?
What does Operational Excellence mean?
What does Visual Management Practices mean?
What does Strategic Planning mean?


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.

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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.

Best Practices in Visual Management

Here are best practices relevant to Visual Management from the Flevy Marketplace. View all our Visual Management materials here.

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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.

5S Methodology Enhancement for Aerospace Defense Firm

Scenario: The organization operates within the aerospace defense sector, facing challenges in maintaining operational efficiency amidst stringent regulatory requirements and complex supply chain operations.

Read Full Case Study

5S Methodology Refinement for Semiconductor Manufacturer in High-Tech Sector

Scenario: The organization in question operates within the semiconductor industry, which is characterized by high-precision manufacturing processes and stringent quality standards.

Read Full Case Study

5S System Implementation for a Large-Scale Manufacturing Firm

Scenario: A large-scale manufacturing organization is grappling with inefficiencies, inconsistency in quality, and safety hazards in its operational area.

Read Full Case Study

Visual Workplace Transformation for Mid-Sized Agricultural Producer

Scenario: A mid-sized agricultural producer in the Midwest is struggling with real-time data visibility and decision-making in its Visual Workplace.

Read Full Case Study

E-Commerce Inventory Management for Niche Gaming Retailer

Scenario: The company, a specialized gaming retailer operating exclusively through e-commerce channels, has seen a significant uptick in demand.

Read Full Case Study

Visual Workplace Transformation for Construction Firm in High-Growth Market

Scenario: A mid-sized construction firm specializing in commercial building projects has recently expanded its market share, resulting in a complex, cluttered visual workplace environment.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

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]
How can augmented reality (AR) be further leveraged within the Visual Workplace to improve training and operational procedures?
Augmented Reality (AR) enhances Visual Workplace training and operations by providing interactive, real-time guidance and feedback, improving efficiency, safety, and learning outcomes. [Read full explanation]
What role does data analytics play in enhancing workplace wellness programs and initiatives?
Data analytics enhances workplace wellness programs by enabling personalized, effective initiatives through understanding employee needs, improving engagement, and accurately measuring impact and ROI. [Read full explanation]
How are emerging technologies like AI and IoT reshaping traditional workplace organization and employee productivity?
AI and IoT are revolutionizing workplace organization and employee productivity by automating tasks, enhancing decision-making, fostering Innovation and Collaboration, while also necessitating Upskilling, robust Data Governance, and strategic implementation to address challenges like privacy, job displacement, and the digital divide. [Read full explanation]
What role does leadership play in the successful implementation and ongoing adherence to 5S practices across an organization?
Leadership is crucial for the successful implementation and adherence to 5S practices, involving active participation, resource allocation, and cultural integration within organizations to achieve Operational Excellence. [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]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "What impact does the increasing use of augmented reality (AR) and virtual reality (VR) have on Visual Management practices, especially in training and operations?," Flevy Management Insights, Joseph Robinson, 2025




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