Case Study GTECH increases efficiencies in gaming machine manufacturing

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1 Case Study GTECH increases efficiencies in gaming machine manufacturing SHOPFLOOR-ONLINE TM from Lighthouse Systems enhances product component traceability, quality check information visibility, and line efficiency

2 GTECH is a leading commercial operator and provider of technology in the regulated worldwide gaming markets, providing a comprehensive suite of gaming products, including machine gaming, systems, interactive, sports betting, and lotteries. It designs, manufactures and distributes top-performing games, cabinets, central systems and associated software to legal gaming markets around the world through its SPIELO product brand. The SPIELO brand represents a complete range of end-to-end gaming products for diverse gaming segments, including distributed government-sponsored markets, commercial casino markets, and Amusement With Prize (AWP) markets. GTECH prides itself in the quality of its products and is committed to the highest level of integrity. GTECH was looking for ways to improve its operations and decided to invest in Manufacturing Execution System (MES) software that would enable it to increase the efficiency of its Canadian facility in Moncton, New Brunswick. After a thorough vendor selection process, GTECH chose the Lighthouse Systems Shopfloor-Online TM MES, based on its comprehensive functionalities, cost-effectiveness, and proven track record with many large, multi-national companies. Improving build validation and compliance At the Moncton factory, gaming machines are made to order in what is primarily a manual assembly process. Each machine is assembled from a standard cabinet type, based on the product line. A machine s cabinet is fitted with a number of sub-assemblies and individual components (hardware and software) that are tailored to each customer so that it complies with local gaming industry regulations and customer specifications (e.g., language, currency). About 400 parts, on average, go into making a gaming machine, and up to 15 percent of these are identified as critical parts that require traceability. Several of these various critical product parts are very 2 SHOPFLOOR-ONLINE TM Case Study

3 similar in appearance. To eliminate the risk of operator error in part selection, GTECH elected to install an automated build validation process and selected Lighthouse Systems as its preferred MES solution provider. Traditionally, the build records for each gaming machine were recorded manually on paper, and kept in a folder that traveled with the cabinet. The folder contained a Bill Of Materials (BOM) and a defects record form. The BOM served as a checklist for parts to build the order. The defects record form was used to manually record nonconformances. Shopfloor-Online TM meets GTECH s product build validation needs in two ways: it verifies by serial number that the right components are being used, and it automatically creates an electronic Build Record for each machine, listing all of the critical parts used in the build process. The same electronic Build Record also includes the results of all the quality checks performed on the machine throughout the production process. With Shopfloor-Online TM, all parts received from suppliers are captured at Goods-In. Serial number data for critical parts can be scanned in or uploaded into the Shopfloor-Online TM database, as can supplier names and corresponding part numbers. After passing inspection, the parts are made available for production. When critical parts are later consumed during assembly, the serial number is used to verify that the correct part is chosen and is then recorded within the build record. The production of a new machine starts with downloading a Work Order and the BOM form from GTECH s Enterprise Resource Planning (ERP) system to Shopfloor-Online TM. The system then schedules and releases parts to production based on priority, part availability, and other relevant factors. Once the Work Orders are released, operators can clearly see the BOM on their screens and distinguish between non-critical and critical parts. The manufacturing floor is comprised of work centers arranged in sub-assembly areas and main lines. At the sub-assembly work centers, operators construct sub-assemblies that are labeled and later routed to specific work centers on the main line. Operators then include the sub-assemblies in the gaming machine cabinet as the ERP provides production routing information. Warehouse technicians pull parts from stock and deliver them to work centers. Operators are able to request additional parts from the warehouse as needed from the BOM shown on the Shopfloor-Online TM screen. In the event that an incorrect part is scanned, Shopfloor-Online TM alerts the operator and prevents the wrong part from being installed. When tasks at one work center are completed, the cabinet can move to the next work center for further assembly. With the system, only completed cabinets fitted with the proper critical components 3 SHOPFLOOR-ONLINE TM Case Study

4 make it to the final quality checks that are conducted at work centers located at the end of the main lines. If a part is not available for production and can be added later, the system allows the part to be tagged as an Exception and permits assembly to continue. When the missing part becomes available, the system will identify which cabinets need the part so that it can be installed and tested. Shopfloor-Online TM provides a full history for each gaming machine by work order or serial number. GTECH clients can request Build Records for a specific machine at any time. Shopfloor-Online TM allows GTECH to swiftly respond to these queries with precise traceability information. Automating quality checks and performance verification Quality checks are performed throughout the production process and include: Incoming inspection of materials from suppliers In-process quality checks (against subassemblies and cabinets) Defect record sheets Functional test sheets (executed at the quality work centers on the main lines) GTECH also manages common, previously defined non-conformances within Shopfloor-Online TM. Operators can open a defect record at any point during production and pick from the list of causes. Quality issues can be addressed immediately or can be sent to the re-work area for resolution. Defective critical parts can be instantly traced back to their pack number and supplier. At the end of the manufacturing process, finished cabinets are wrapped and labeled through Shopfloor-Online TM in preparation for shipment. When a gaming machine fails a quality test, the event is recorded and must be addressed before the machine is permitted to ship. Manual data entry can affect production results, making it difficult for operation leaders to take corrective actions in a timely manner. Shopfloor- Online TM provides quality checks and test results immediately so operators can react quickly and decisively to any production issues. 4 SHOPFLOOR-ONLINE TM Case Study

5 Shopfloor-Online TM provides us with a worldclass measurement system so we can highlight inefficiencies and address them immediately. Steve Wheeler, Senior Manufacturing Manager are established by the system so that production performance calculations are not impacted. Through the system s quality acquisitions, production operators can quickly record defects at any point in cabinet production, in a standardized fashion. More importantly, defective critical parts can be instantly traced back to their pack numbers and suppliers. Providing a single and real-time view of shop floor operations Previously, GTECH personnel used a mixed system of paper records and a standalone Access database to manage production and quality. Shopfloor- Online TM provides GTECH with an integrated system with accurate, up-to-date, and available production and quality data for operators, team leaders and production managers. Before Shopfloor-Online TM, production data related to man-hours, downtime, overall equipment effectiveness (OEE), and time spent in rework was not available in real time, but was compiled at a later time. Now this information is captured in an ongoing manner and is available immediately through a variety of reports. GTECH s system has been configured to enable operators to electronically record every event that was previously written on paper. Each job is tracked in the MES with the date and time it started. As part of labor tracking, operators sign-on to the system, which records transactions for every user and eliminates time card data entry. Operators also enter downtime events and can assign a pre-defined downtime reason to each stoppage. Planned down events, breaks, and holidays for the production staff Besides exceptions, rework is also logged. When a defect can be fixed it can be made available in inventory, and if not, it can be scrapped. Production scrap is tracked so that it may be returned to the supplier. The defect information is kept in Shopfloor -Online TM for future reference and suppliers complaint handling. Monitoring individual performance With the new system, all operators can visualize their daily production target and their individual availability and performance. This feedback is displayed in easy-to-read gauges, a format that was positively received by operators. All of the screens are designed for easy usability, which contributed to quick adoption of the system users were up-to -speed in hours, according to GTECH Continuous Improvement Lead Matt Carreau. Increasing productivity by an estimated five percent Shopfloor-Online TM provides a centralized system that now eliminates the need for paper-based data recording and is expected to help GTECH save $30,000 a year on paper alone. With Shopfloor- Online TM, GTECH saves an average of 0.10 manhour on paper handling, as well as 15 sheets of pa- 5 SHOPFLOOR-ONLINE TM Case Study

6 per and the folder to bind them. Shopfloor-Online TM also provides instant access to real-time, accurate production and quality data, eliminating the need for manual data collection and time-consuming investigations. The data is available to employees through reports that facilitate faster escalation of production issues and quicker resolution. The status of an order is known in real-time, reducing the need for day-today production meetings as team leaders rely on Shopfloor-Online TM to get the information they need to run operations. In addition, preconfigured reports and visibility to KPIs provide employees with the data needed to continuously improve the quality management program. With Shopfloor-Online TM, all production data is available for productivity and traceability analysis through reporting. Also, a monthly capability report allows GTECH to measure key process parameters, as all reports can be filtered to suit individual needs. Using the new production performance data, GTECH was able to quickly identify improvements that increased production and reduced labor costs. Having a clearer view of production performance at a more granular level gives GTECH the ability to identify and implement improvements. Combined with the savings gained from eliminating the paper-based system, the operations improvements helped GTECH realize a productivity increase estimated at approximately five percent. Summarizing benefits and future considerations Shopfloor-Online TM is an integrated, comprehensive, web-based MES that provides a complete and realtime view of all aspects of manufacturing operations management. GTECH now has greater, more timely visibility into production schedules, line efficiency, traceability, and quality check information so that supervisors and managers can address critical issues quickly. GTECH Senior Manufacturing Manager Steve Wheeler reports that Shopfloor-Online TM provides us with a world-class measurement system so we can highlight inefficiencies and address them immediately. By choosing Shopfloor-Online TM GTECH was able to consolidate its in-house databases into one system, automate manual processes (exception handling and time tracking), and eliminate the need for meetings to communicate attainment to staff. With all of the improvements in place, the cost reductions for 2014 are expected to exceed $450,000. Further enhancements are being considered for the coming year. All images copyright GTECH Canada ULC. All rights reserved. 6 SHOPFLOOR-ONLINE TM Case Study

7 Lighthouse Systems is one of the world s leading provider of MES and Manufacturing Intelligence Solutions. Lighthouse Systems Shopfloor-Online TM is web based modular software that provides real time visibility of the entire manufacturing operations environment. Applications include Maintenance Management, Concern Management, Quality, SPC, Downtime, OEE, Energy and Traceability. Shopfloor-Online TM is being used in a wide range of industries. It is deployed in 15 languages in 46 countries. For more information, visit us at info@lighthousesystems.com, or contact one of our offices. UK ( Crawley, RH11 9AP) t: +44 (0) USA (Fairport, NY 14450) t: Asia (Singapore, ) t: France (Paris Marne La Vallée) t: Nordic (Eskilstuna, Sweden) t: Follow us: LinkedIn: Lighthouse-Systems Lighthouse Systems SHOPFLOOR-ONLINE TM Case Study