June 1, 2015 / bottlenecks, Cost Management, KPIs, LIT, operations metrics, performance metrics, productivity, quality, resource allocation, root cause analysis
With market demand finally on the rise, industrial metal cutting companies need to keep up. However, there is only so much managers can optimize through traditional lean practices and proven technology. While automation has helped create new efficiencies across many industries, including metal cutting, most experts believe the factory of the future lies in “smart” manufacturing.
As reported in this blog post from LENOX Institute of Technology (LIT), “smart” manufacturing technologies such as the Internet of Things (IoT) and real-time data are poised to transform the way manufacturers improve operational efficiency and productivity. In fact, according to an IDC Manufacturing Insights survey, manufacturers expect IoT to lower operational costs, increase the potential to retain and attract customers, improve service and support, and further differentiate themselves from the competition. [LINK].
Traditionally, monitoring shop floor operations in real-time has been cost prohibitive. However, with the prevalent availability of new technology, a growing number of manufacturers are investing in hardware adapters and software upgrades, with hopes of a big return.
As this Fabricating & Metalworking article points out, the potential return on investment is huge. For example, only 5 percent of the estimated 64-million computer numerically controlled (CNC) machines around the world are currently connected to the industrial Internet. However, if the remaining machines were connected and started reporting data, they could contribute a staggering $15 trillion to the global GDP by 2030, according to research by GE.
But can “smart” and connected manufacturing facilities really drive performance—and, —ultimately, drive profits—for industrial metal cutting companies? In the Fabricating & Metalworking article, author David McPahil says, “yes.” According to McPahil, “smart” manufacturers have seen positive results in key performance indicators like overall equipment effectiveness (OEE). Below are several ways connectivity can positively affect the three ratios used to calculate OEE:
- Ratio 1: Availability. With an integrated manufacturing execution system (MES) and machine-to-machine (M2M) communications, McPahil claims shops can see the largest and quickest improvement in availability. Run times increase as the connected machines measure idle time and categorize it per machine. With real-time data, workers can find and eliminate root causes almost immediately with improved accuracy.
- Ratio 2: Quality. A connected shop also helps increase quality by measuring outputs and, for example, keeping track of the number of cuts a certain blade has made. As each machine communicates with the rest of the factory, consistency improves across the entire operation, McPahil notes.
- Ratio 3: Performance. A typical manufacturer believes its overall OEE score is approximately 65 percent; however, McPahil says “smart” operational benchmarks reveal they are actually between 30 to 40 percent. If MES is used to optimize the floor, OEE scores often soar within a few months—some even reaching world-class status of 85 percent.
It’s important to note that getting “smart” doesn’t always require brand new, high-tech equipment. As described in a recent white paper from LIT, one metal service center developed an internal software system to automatically track the number of square inches processed by its existing sawing equipment. At any point, the manager can go to a computer screen, click on particular band saw or circular saw, and see how many square inches each saw is currently processing and has processed in the past. This allows the service center to easily track trends and quickly detect problem areas.
Of course, upgrading to a “smart” manufacturing operation does require some investment, but it often has a high return. If you haven’t already made the jump to add connectivity to your industrial metal-cutting operation, it may be worth looking into—and soon. As many “smart” companies have discovered, the results are both measurable and promising.