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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

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 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

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

Digital Resilience Initiative for Semiconductor Manufacturer in Asia-Pacific

Scenario: A leading semiconductor manufacturer in the Asia-Pacific region is confronting significant strategic challenges due to its outdated workplace organization.

Read Full Case Study

Visual Management Revamping for a Large-Scale Manufacturer

Scenario: A global manufacturing firm is grappling with poor operational efficiency, exacerbated by inadequate Visual Management across its expansive factory floors.

Read Full Case Study

E-Commerce Visual Workplace Transformation for Retail Apparel

Scenario: The organization, a mid-sized e-commerce platform specializing in retail apparel, is facing significant challenges in maintaining an efficient and effective Visual Workplace.

Read Full Case Study

5S Efficiency Enhancement in Life Sciences

Scenario: The organization, a biotech research and development company, faces significant operational inefficiencies within its laboratory environments.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can organizations leverage gamification to enhance employee engagement in workplace organization initiatives?
Gamification in the workplace utilizes game mechanics like points and rewards to boost employee engagement in initiatives, aligning with organizational goals and culture for improved performance. [Read full explanation]
What role does cross-functional collaboration play in the successful implementation of Visual Workplace initiatives, and how can it be fostered?
Cross-functional collaboration is essential for successful Visual Workplace initiatives, enhancing Operational Efficiency, Employee Engagement, and aligning with organizational goals through teamwork, communication, and shared objectives. [Read full explanation]
What role will 5G technology play in enhancing real-time collaboration and visualization in the Visual Workplace?
5G technology will revolutionize real-time collaboration and visualization in the Visual Workplace, significantly improving Operational Efficiency, Decision-Making, and Innovation through superior speed, reduced latency, and support for advanced tools like AR and VR. [Read full explanation]
What are the best practices for integrating Visual Workplace methodologies with existing enterprise resource planning (ERP) systems?
Integrating Visual Workplace methodologies with ERP systems improves operational efficiency and visibility through Strategic Planning, customization, and a focus on Training and Change Management. [Read full explanation]
What role does 5S play in facilitating the adoption of circular economy principles in the manufacturing sector?
5S methodology significantly supports Circular Economy adoption in manufacturing by improving Resource Efficiency, Waste Reduction, and the standardization and sustainability of best practices, exemplified by Toyota and Philips. [Read full explanation]
How can Visual Workplace tools be used to enhance transparency and trust in organizational leadership and decision-making processes?
Visual Workplace tools, including digital dashboards and visual management boards, improve organizational transparency and trust by making information accessible, fostering accountability, and promoting collaborative problem-solving. [Read full explanation]
What best practices should be followed when implementing Visual Workplace methodologies to enhance shop floor productivity and safety?
Implementing Visual Workplace methodologies involves Strategic Planning, Goal Setting, customization of visual tools, and a focus on Training and Culture Building to improve shop floor productivity and safety. [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]

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


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