What are the benefits of achieving real-time manufacturing visibility?

Dealing with the impact of the global recession, while dealing with ongoing supply chain disruptions, labor shortages and rising energy costs, is forcing manufacturing companies to explore innovative ways to address business challenges.

Seeking to improve operational efficiency, ensure long-term growth and stay ahead of the competition, manufacturers are investing more in digital technologies such as MES, SCADA/HMI, predictive maintenance, simulation/digital twins, and edge-to-cloud . Manufacturing will benefit from the additional data these technologies bring, providing deeper insights for operational improvements.

Many manufacturers believe that increased capital investment is critical to improving productivity, especially in the process of increasing production capacity, improving quality and reducing costs. Manufacturers will invest more in software, acquisitions, new equipment and international expansion as they seek to achieve broader growth goals, accelerate digitalization, transition to net zero and open up new global markets.

Despite the current uncertainty, manufacturers recognize that investment is critical to boost growth, increase productivity and remain competitive in the global marketplace. It’s no secret that the manufacturing landscape is changing rapidly, and tomorrow’s manufacturing leaders need to stay ahead of the game today. Demand for new products and shortened delivery times show no signs of slowing down, with customer relationships reliant on fast, efficient “on-demand” delivery.

World-class manufacturers measure and monitor an agreed-upon set of KPIs and use them to evaluate business performance and as input to decision-making. Traditional metrics such as overall equipment efficiency and downtime are effective but have limitations when assessing overall manufacturing efficiency and productivity. Driving continuous improvement throughout the manufacturing process requires additional KPI metrics that take into account all areas that impact productivity, thereby increasing visibility.

1. Leverage real-time data to make actionable improvements

Measuring OEE is an important part of implementing digital lean and performance improvement initiatives. The data provided in the performance system must be processed quickly, otherwise, production managers will have difficulty discovering the root cause of the problem. Shop floor teams are encouraged to use data to uncover the causes of process inefficiencies to drive improvements, creating a culture of continuous improvement as operators actively engage with the system and see the value derived from it.

2. Ensure regulatory compliance and quality

Real-time visibility into quality issues, such as non-compliance events or process out-of-control, is critical to increasing yields, reducing production waste and avoiding costly Product recalls are critical. The impact of a product recall on a brand's reputation can be huge and the associated costs/hefty fines can be huge, not just for production. Understanding process capabilities across a manufacturing facility is critical to reducing low-quality costs, promoting continuous improvement, and creating sustainable competitive advantage.

3. Manage Energy Consumption

As energy costs continue to rise to unprecedented levels and energy contracts are about to expire, business owners will be concerned about how to manage rising energy bills. and reduce energy consumption. Measure and monitor energy usage in real time, rather than through monthly or quarterly energy bills, allowing for comprehensive corrective action.

Additionally, help proactively reduce energy by integrating energy and production data to identify improvement opportunities! Not forgetting the importance of achieving long-term sustainability and carbon reduction targets is another benefit of implementing digital technologies to support energy reduction targets.

4. Reduce production losses

Availability losses such as planned or unplanned downtime, machine installation time, inventory turnover and changeover time, will have a negative impact on OEE and performance . However, aspects such as the impact of non-productive tasks, machine downtime and its impact on other production are difficult to capture. Identifying inefficiencies throughout the production process is key to providing the real-time information needed to take corrective action.

5. Optimize maintenance activities

Unscheduled maintenance will lead to production losses, increased parts costs and time loss to repair problems, and the cost is significantly higher than planned maintenance. Adopt a more proactive approach to preventive maintenance to coincide with planned production downtime, significantly reducing costs.

Preventive maintenance needs to be effectively controlled and managed to ensure that equipment continues to produce high-quality products. Visibility into equipment availability and performance can help reduce unplanned downtime, optimize maintenance activities and get the most value from your assets.

6. Understand Labor Costs

Having the right number of people and a balance of skills on the shop floor is a huge juggling act! Too little can create bottlenecks and lead to missed production deadlines, too much can cause unnecessary labor costs and impact profits.

Obtaining detailed workforce information, such as how many employees are needed on a production line, required skill sets, and how long it takes to complete a job, will help paint a picture of your workforce needs. Likewise, understanding the relationship between employee performance and output, how profitable work is being run, and understanding the true cost of labor are also important considerations when optimizing workforce performance and ensuring maximum productivity.

7. Reduce Goods Cost

Most manufacturers include direct materials, labor and overhead when estimating costs. Here are three things to understand when trying to reduce your cost of goods, which can help achieve your business's bottom-line KPIs, including improving profit margins, ensuring business sustainability, and improving customer satisfaction. Increased visibility through digital technology and real-time data analytics can reduce cost of goods.

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