Leverage Data-Driven Manufacturing for Greater Productivity, Efficiency and Profits

Transcription

1 Leverage Manufacturing for Greater Productivity, Efficiency and Profits SME Smart Manufacturing Series Cincinnati, OH May 24, 2017 Presented by: John Rattray, Senior VP, Sales & Marketing, MEMEX Inc.

2 Agenda - What will be covered Factory of the future and Production Visibility Data Streams Required to Fuel an IIoT Implementation Agenda Situational Awareness in the IIoT era Areas to Explore for Benefits - OEE Specific Examples of Results Achieved With REAL numbers... Additional Transformational Benefits.. Summary Questions and Answers

3 The Drive Towards Connectivity Connectivity is an essential part in generating manufacturing big data Drivers include: Higher customer satisfaction Lower costs Competitive agility Greater Productivity Ubiquitous connectivity where the business runs on the network CUSTOMERS SUPPLIERS Information Enterprise Data Streams The Fuel Factory of the Future / Production Visibility SHOP FLOOR MANAGEMENT IIoT Situational Awareness Examples

4 Factory of the Future and the value of Production Visability

5 Manufacturing: How it comes alive Evidence Based Real time data collection at each machine and Discrete Process on the shop floor Work Order Scheduling and Results Reporting Direct To / From ERP Data Streams The Fuel Drive costs out of the manufacturing process, leading to higher capacity utilization and higher profits for the same level of effort Process Improvement, Benchmark Analysis, Corrective Action, Repeat WIP, Raw Material, Valuable Tooling, and Finished Goods Tracking with RFID & ERP Horizontal & Vertical Integration Vertical: Shop Floor To Top Floor, Integrating and optimizing all equipment and processes, from machine sensors to the ERP system Horizontal: Across the Complete Plant, Integrating, communicating and optimizing production operations. Factory of the Future / Production Visibility IIoT Situational Awareness Examples

6 Factory of the Future - The HOW Involve and empower the Operator by giving them the tools to be part of the solution, instead of simply pointing out there is a problem Data Streams The Fuel Initiate and sustain a culture of teamwork as it relates to continuous improvement by delegating resources, setting achievable goals, and vetting progress regularly, adjusting goals upwards over time. Factory of the Future / Production Visibility ERP SHOP FLOOR Adopt technology that connects the top floor ERP system to the shop floor asset(s) (equipment and personnel) bidirectionally, affording unparalleled visibility and transparency of shop floor processes. IIoT Situational Awareness Examples

7 Factory of the Future - The WHEN With a 10% 50% Sustainable increase in capacity utilization, which translates into a significant increase in IFO, companies who adopt the philosophy of the Factory of the Future experience investment returns usually measured in months. Data Streams The Fuel Utilizing a proven solution, and with management setting the course for systemic cultural change, the risk of project failure is virtually eliminated. Factory of the Future / Production Visibility The time is now.. Money is being left on the table (locked / lost in the past) each day that the Factory of the Future remains simply a concept, not reality. IIoT Situational Awareness Examples

8 Production Visibility On the Factory Floor Data Streams The Fuel Production data captured in real-time, analyzed and sent to management. Increases machine operator awareness of how down times affect productivity. Factory of the Future / Production Visibility Defines how manufacturers can generate more revenue and margin. IIoT Situational Awareness Examples

9 Production Visibility Gemba Boards and Andon Screens Data Streams The Fuel Common and Objective Data Right Across the entire Factory 6-10% efficiency gain, on average by simply installing Andon screens throughout Factory of the Future / Production Visibility Transparent, Accurate, and timely real-time data delivered to the entire Operational Management team IIoT Situational Awareness Examples

10 Data Streams Required to Fuel an IIoT Implementation in Manufacturing?

11 Business System Integration Link manufacturing production to ERP, bi-synchronously Data Streams The Fuel Improve scheduling accuracy, keep finished goods inventory accurate, eliminate manual data entry, improve product costing, track raw material usage. MES Software on Server ERP Import ERP production schedule into MES Job Queue Factory of the Future / Production Visibility Track Job Progress on each machine in real time, pro-active alerts At Shift / Job end, export actual production results data to ERP Minimize WIP, eliminate errors, automatic data collection, timely information IIoT Situational Awareness Examples

12 Confluence of 3 data streams AUTOMATED APPROACH MACHINE-CENTRIC TRADITIONAL APPROACH OPERATOR--CENTRIC Data Streams The Fuel Historian SQL Database PROACTIVE ALERTS Real-time data MTConnect/OPC/ Hardware adapter DATA PRODUCER Open Database Two-way, Bi-synchronous ERP, MES Dashboard DATA Consumer REACTIVE INFORMATION Generating lagging metrics Business systems data Factory of the Future / Production Visibility Connect directly to the machine, automated data collection in real-time Data collection depends entirely on operator action IIoT Situational Awareness Examples Machine data Operator data

13 Situational Awareness in the IIoT era What does it look like?

14 Situational Awareness Example 1 Data Streams The Fuel Factory of the Future / Production Visibility IIoT Situational Awareness Examples

15 Situational Awareness Example 2 Data Streams The Fuel Factory of the Future / Production Visibility IIoT Situational Awareness Examples

16 Situational Awareness Example 3 Data Streams The Fuel Factory of the Future / Production Visibility IIoT Situational Awareness Examples

17 Situational Awareness Example 4 Data Streams The Fuel Factory of the Future / Production Visibility IIoT Situational Awareness Examples

18 DDM Applied in Manufacturing Reality vs Myth REALITY Disruptive - in a good way. Transformative in a good way. A known and quantifiable payback, with examples and case studies articulating the exact return received and how it was generated the Why Practical and proven to be of major benefit in eradicating productivity gaps. Presently generating an on average 300% Internal return rate of capital in discrete manufacturing deployments globally. Available - Today. MYTH A theoretical construct with no practical application(s). An unquantifiable capital expenditure with a unknown associated payback. A highly technical deployment strategy where the technology is unknown, the path unknown, and both unproven. A magic bullet or a solver of every problem presently facing global manufacturing IOT / IIoT / I 4.0 What s the fuss? IT vs OT Manufacturing - Benefits

19 Order of Why / When / What / How Relative time spent in each stage Why = Business Outcome expected, quantified in REAL Dollars When = Urgency to act based on perceived / actual ROI, backed up by Facts, not Hype What High level project description of an IIoT solution applied to MFG How = Technical details associated with IIoT solution deployment Manufacturing - Roadblocks ROI with REAL Numbers Traditional IIOT Project Discussion Order Preferred IIoT Project Discussion Order Additional Transformational Benefits

20 Areas to Explore for Benefits Overall Equipment Effectiveness (OEE)

21 Critical business challenges Rising Business Costs Reducing Operating Costs Visibility of shop floor operations and real-time status of production IOT / IIoT / I 4.0 What s the fuss? Productivity and assets utilization maximization Flexibility of production is and quality (no bad parts) Performance to standard IT vs OT Data collection accuracy and Integration of business systems such as ERP Continuous improvement initiatives, TPM, LEAN, etc. Manufacturing - Benefits

22 Why OEE matters in the IIOT era IOT / IIoT / I 4.0 What s the fuss? IT vs OT OEE is now the most important metric in manufacturing World-class OEE of 85% is entirely achievable with the automated approach Manufacturing - Benefits

23 OEE: The Critical Metric Percentage of scheduled time that the operation is actually operating. IOT / IIoT / I 4.0 What s the fuss? Good Units produced as a percentage of the Total Units Started. IT vs OT Speed at which the Work Center runs as a percentage of its designed speed or ideal cycle time The gold standard for measuring manufacturing excellence Manufacturing - Benefits

24 What drives desire for OEE Replace manual, subjective data collection with automatic, objective data collection IOT / IIoT / I 4.0 What s the fuss? True visibility means shining a light on dark production assets IT vs OT The opportunity to take lean manufacturing to the next level Reveal your hidden factory Manufacturing - Benefits

25 Specific Examples of ROI With REAL Numbers

26 Hidden Capacity: Eliminating The 6 Big Losses 120% The improvement opportunities are always in one of the following buckets 100% 80% 60% 40% Maintenance Setup Downtime Small stops Speed loss Manufacturing - Roadblocks ROI with REAL Numbers 20% Productive 0% Actual Availability Desired Additional Transformational Benefits

27 Value Proposition Real-time machine visibility + OEE numbers including alerts Operator Productivity Increase 2-5% 1-10% Manufacturing - Roadblocks Reduce Downtime 3-8% Minimize Rejects Root Cause analysis 2-4% 2-4% 10% 50% Productivity increase ROI with REAL Numbers Value Stream data collection & analysis 2-4% Labor productivity tracking 3-6% Usage-based Preventive Maintenance 1-2% Additional Transformational Benefits Benchmark scheduling & value streaming 2-6%

28 SME Example 1 Small Manufacturer 10 machines 5 Days / Week, 8 hours / day, Loaded labor cost of $85/hr. Monday, November 2, 2015 Quick Value Equation Calculator Manufacturing - Roadblocks To start, fill in the yellow boxes with data requested ROI Benefits 10 Number of machine to connect to MERLIN MES 5 Number of Hardware connections required Reduce Downtime 3 Minutes of Downtime per hour saved per machine Improve Visibility 2 Minutes of Downtime per hour saved per machine through increased Visibility Increased Production Time/Day/Machine 0.67 Amount of Downtime saved per machine per day in Hours Total Increased Production Time/Day All Machines 6.67 Amount of Downtime saved per day All Machines in Hours OEE Increase 8% Percent of Overall Equipment Effectiveness gain ROI with REAL Numbers Per Machine Return $ Assumptions Value Reduced Downtime per machine/hour $ 7 $85 Machine cost per hour, fully burdened Value Reduced Downtime per machine/day $ 57 8 hours per day operational Value Reduced Downtime per machine/week $ days per week Value/Machine/Year $ 14, weeks per year Value/Machine/3 years $ 42,500 Y MERLIN Enterprise Edition Additional Transformational Benefits

29 Example 1 - Results Small Job Shop 10 machines 5 Days / Week, 8 hours / day, Loaded labor cost of $85/hr. Total time saved per hour / per machine 5 minutes Total time saved per shift / per machine.67 hours Production time recovered per shift All machines 6.7 hours Total project spend Manufacturing $ 63 thousand Total cost saved in the first (12) months $ 142 thousand Internal return rate IRR on capital Payback period for the project > 200% < 6 Months Total Savings over (3) years $ 452 thousand Manufacturing - Roadblocks ROI with REAL Numbers Additional Transformational Benefits

30 SME Example 2 Medium size Manufacturer 30 machines 5 Days / Week, 16 hours / day, Loaded labor cost of $85/hr. Manufacturing - Roadblocks Monday, November 2, 2015 Quick Value Equation Calculator To start, fill in the yellow boxes with data requested ROI Benefits 30 Number of machine to connect to MERLIN MES 15 Number of Hardware connections required Reduce Downtime 3 Minutes of Downtime per hour saved per machine Improve Visibility 2 Minutes of Downtime per hour saved per machine through increased Visibility Increased Production Time/Day/Machine 1.33 Amount of Downtime saved per machine per day in Hours Total Increased Production Time/Day All Machines Amount of Downtime saved per day All Machines in Hours OEE Increase 8% Percent of Overall Equipment Effectiveness gain ROI with REAL Numbers Per Machine Return $ Assumptions Value Reduced Downtime per machine/hour $ 7 $85 Machine cost per hour, fully burdened Value Reduced Downtime per machine/day $ hours per day operational Value Reduced Downtime per machine/week $ days per week Value/Machine/Year $ 28, weeks per year Value/Machine/3 years $ 85,000 Y MERLIN Enterprise Edition Additional Transformational Benefits

31 Example 2 - Results Medium JS 30 machines 5 Days / Week, 16 hours / day, Loaded labor cost of $85/hr. Total time saved per hour / per machine 5 minutes Total time saved per shift / per machine 1.33 hours Production time recovered per shift All machines 40 hours Total project spend Manufacturing $ 149 thousand Total cost saved in the first (12) months $ 850 thousand Internal return rate IRR on capital Payback period for the project > 400% < 3 Months Total Savings over (3) years $ 2,550 thousand Manufacturing - Roadblocks ROI with REAL Numbers Additional Transformational Benefits

32 Additional Transformational Benefits of Leveraging Manufacturing in the IIoT era

33 Impactful Continuous Improvement Discover the hidden factory and manage operations proactively Connect to any machine, old and new Monitor and assess manufacturing productivity in real-time Manufacturing - Roadblocks ROI with REAL Numbers Analyze causes for Downtime and Rejects then eliminate them Identify Bottlenecks and Constraints Additional Transformational Benefits

34 Customer Success with IIoT / DDM Precision machining Aerospace Large equipment manufacturer Specialty Machining group Enterprise aerospace Fine tuning setup process Furniture manufacturer company realized a 25% savings on whole plant company realized 11% efficiency improvements in first 3 months 24% to 62% OEE on machines from 25% to 60% OEE company saw a 25% overall improvement went from 410 parts/week to 690, a 68% gain 25% improvement, no overtime more production Manufacturing - Roadblocks ROI with REAL Numbers Additional Transformational Benefits

35 Benefits of Manufacturing Production increase in 4 months from 52% of the time to 63% OEE across 30 machines went from 40% to 82% Palletech system has seen 140% gain in efficiency Legacy Mazak lasers: 40% gain Manufacturing - Roadblocks 20% increase in efficiency just by having everyone aware of what is happening 42% boost in machine utilization in the first six months 100 hours of reduced operator overtime per month 11% increase in capacity utilization in the first 3 months ROI with REAL Numbers 12.5% improvement in capacity utilization from a $1B agricultural manufacturer Cost savings associated with employing a data collection person Improved OEE 100% on one bottleneck machine in one week given the data Eliminate machine downtime caused by Shift changes happening early Additional Transformational Benefits 35

36 Real Improvements Post Implementation Manufacturing - Roadblocks QA & Setup decreased by 72% Run Time increased by 45% ROI with REAL Numbers Additional Transformational Benefits

37 Real Results - Post Implementation Manufacturing - Roadblocks Over 90% Improvement in OEE ROI with REAL Numbers Additional Transformational Benefits

38 Summary IIOT is being applied successfully in manufacturing today why wait? Can generate a 300% IRR on average, which equates to a (4) month payback. Manufacturing - Roadblocks The path is known, proven, and available today. The benefits are extremely compelling, hard to overlook. The Why should ALWAYS BE the first discussion point. Cost effective, proven solutions exist which drastically reduces the risks ROI with REAL Numbers The last meter problem has been solved...so get connected. Data can be cost effectively collected from ALL MFG equipment and processes. Metrics require data to function, real-time data is the most accurate. There is a direct link to increased productivity and increased profitability. Additional Transformational Benefits Internet Security applied to the factory should be part of the discussion.

39 Thank-you, Questions? MemexOEE.com ext. 101 (Toll Free) If you want a copy of the presentation, please send me an