The Factory Floor Meets Artificial Intelligence
And the Bots Are Learning to Listen, Remember and Guide
A ‘good’ way to think about AI in Manufacturing:
As manufacturing leaders navigate the complex landscape of digital transformation, artificial intelligence (AI) emerges as a potential solution to longstanding industry challenges. In a recent in-depth conversation between Michael Hoagland of Hoagland Management & Consulting LLC (HMC) and David Uram, CEO of Factory Bucket (now CohesivAI), the two industry veterans shared crucial insights about implementing AI in manufacturing environments. Their discussion revealed both the immense potential and practical pathways for manufacturers looking to embrace AI technology.
On a crisp November morning in Connecticut, where submarines take shape in one of America's naval shipyards, Michael Hoagland contemplates a challenge that would have seemed like science fiction just a few years ago: how to teach artificial intelligence to understand the intricate dance of manufacturing. "It's not about replacing workers," says Hoagland, the founder of Hoagland Management & Consulting, “empowering people with better tools leads to better decisions. AI amplifies this by enabling smarter work, increasing both effectiveness and efficiency in ways that transcend traditional methods.”
The saying, 'a rising tide raises all boats,' has never been more relevant. With AI, every individual in the workforce has the opportunity to improve significantly gaining capabilities that were once out of reach. It’s not just about working harder; it’s about leveraging AI to unlock new levels of productivity and impact. This philosophy is at the heart of a quiet revolution taking place in American manufacturing, where artificial intelligence is being reimagined not as a replacement for human expertise, but first as an apprentice eager to learn the unwritten rules of a given factory floor and then becoming the easily available source of this hard-earned practical wisdom.
The Manufacturing Dilemma: Legacy Systems and Modern Demands
For decades, manufacturers have grappled with rigid Enterprise Resource Planning (ERP) systems that force businesses to adapt their processes to fit predetermined software logic. These systems, while functional, have created significant barriers to adaptability and innovation.
Traditional ERP systems have long forced manufacturers to adapt their processes to fit rigid, Boolean logic-based software. As David Uram explains, "Traditional software for the last 20 years has been deterministic, driven by SQL databases, and you have to structure it in such a way that's really hardcoded and inflexible”. This observation touches on a critical pain point in the industry: the disconnect between how manufacturers actually operate and how their software tools expect them to work. The result? A proliferation of stopgap solutions, primarily in the form of complex spreadsheets and tribal knowledge held by key personnel.
However, as David Uram explains, the emergence of AI is fundamentally changing this paradigm. "Now you can explain and capture ‘your’ business processes through a natural language interface, and your AI assistants can help guide more inexperienced staff to follow ‘your’ processes and make better real-time decisions,” says Uram. This shift represents a significant departure from the conventional IT approach that requires extensive coding and configuration to alas be left with spreadsheets and whiteboards.
From Spreadsheets to AI Whisperers
David Uram remembers the moment everything changed. Sitting with a client, frustrated by the endless tweaks needed in a traditional manufacturing software system, he pulled out his phone and began experimenting with an early AI chatbot. In two hours, he replicated work that had taken his team 200 hours to complete.
"Right there, I knew we had to pivot the entire company," says Uram, CEO of CohesivAI (formerly Factory Bucket), whose eyes light up when he describes the transformation. His company, once focused on traditional manufacturing software, now helps factories teach AI to understand their operations using plain English instead of computer code.
The shift represents a fundamental change in how factories operate. Moving away from decades of manufacturers struggling with rigid software systems that forced them to adapt their processes to fit the software's logic. It was like trying to speak a foreign language in your own home.
The Hidden Cost of Tribal Knowledge
In a typical medium-sized factory, millions of dollars in production decisions often rest on the shoulders of a few veteran employees who carry decades of unwritten knowledge in their heads. "We call them the 'people with the whiteboard,'" Hoagland explains, referring to the employees who seem to have a sixth sense for production scheduling and problem-solving. But as manufacturing faces a generational shift, with experienced workers retiring and fewer young people entering the field, this reliance on tribal knowledge has become an existential threat. "What happens when the person with the whiteboard retires?" Hoagland asks. "That's what keeps executives up at night."
Teaching Machines to Listen
The solution, according to Uram and Hoagland isn't to replace these experienced workers but to capture their wisdom in a way that's never been possible before. Using advanced AI systems, factories can now preserve and share critical knowledge simply by having conversations. "Imagine having a really smart apprentice who never forgets anything and can be in multiple places at once," Uram explains. "That's what we're building."
The technology is already showing promise. At one manufacturer of industrial pipes, a team spent just one hour with an AI system and built an application that could handle complex pricing decisions that previously relied on a single employee's expertise.
The Human Element
But the transition isn't without its challenges. "Some people aren't ready," Uram acknowledges. "We've had boot camps where we realize a company needs six months of preparation before they can really start using AI effectively."
Success, both men agree, requires more than just technology. It needs what Hoagland calls "executive buy-in" – leaders who understand that implementing AI is more like raising a child than installing a new piece of software. It requires patience, dedication, and a willingness to learn alongside the technology.
A New Skill for a New Era
Perhaps most intriguingly, the rise of AI in manufacturing is creating new kinds of jobs. "Prompt engineering" – the art of effectively communicating with AI systems – is becoming as essential as spreadsheet proficiency was in the 1990s.
"It's really about becoming a better communicator," Uram explains. "The better you can explain your process to the AI, the better it can help you."
Looking Ahead
The implications extend far beyond individual factories. In Connecticut, where manufacturing remains a crucial part of the economy, the ability to triple submarine production could depend on how effectively the industry adopts these new technologies.
But for Hoagland, whose consulting work brings him into contact with manufacturers across the country, the most exciting aspect is how AI might help preserve and enhance human expertise rather than replace it. As in many situations, there isn’t just one right answer, but more critical is understanding the logic behind those decisions and if the decision was a good/best one. AI is helping us capture that kind of wisdom on the factory floor.
As manufacturing faces unprecedented challenges – from supply chain disruptions to workforce shortages – this new approach to AI could offer a path forward that preserves the best of human knowledge while embracing the possibilities of artificial intelligence.
"You’ve got to step off the sidewalk and into the street," Hoagland says with a smile, leaning into the metaphor. "Real learning happens when you’re in motion, navigating challenges as they come. The only way forward is to start moving."
Ready to Step Off the Sidewalk?
AI in manufacturing is no longer science fiction—it’s here, and it’s shaping the industry in real, transformative ways. CohesivAI and Hoagland Management & Consulting LLC are at the forefront, helping businesses unlock the power of AI to preserve and elevate human expertise. Whether you're aiming to streamline processes, capture invaluable tribal knowledge, or empower every worker with better tools, the journey starts with a single step forward.
Stay tuned for our next post, where we’ll guide you through the first steps to start your AI journey. Let’s move forward together.
For manufacturing executives interested in exploring AI implementation, Hoagland Management & Consulting LLC (www.hoaglandmgt.com) offers comprehensive guidance and support through their partnership with CohesivAI (www.cohesivapp.com).
About the Author
With over 30 years of experience in B2B product management, finance, and marketing, Dean specializes in driving innovation and uncovering market opportunities. From startups to Fortune 100 companies across industries like healthcare, technology, and manufacturing, he brings expertise in navigating uncertainty and accelerating growth. As the founder of In-Starting LLC, Dean developed the Lean Product Management (LPM) Framework, now utilized at Hoagland Management Services to help enterprises quickly and strategically advance innovations for a competitive edge.
Read Dean’s full bio to learn more about his background and expertise.