August 20, 2017 / best practices, blade failure, blade life, blade selection, bottlenecks, continuous improvement, LIT, operator training, predictive management, preventative maintenance, productivity, quality, workflow process
While some downtime is inevitable, more and more forges and other industrial metal-cutting companies are discovering that proper maintenance and proactive care of equipment can significantly reduce its occurrence.
The problem is that maintenance departments are typically busy putting out fires, which pushes anything “preventative” to the side. Why take the time to stop a potential problem when there are enough real problems happening right now?
However, as stated in the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, proactively addressing maintenance issues allows managers to reduce costs, increase blade and tooling life, and, most importantly, avoid costly mistakes. “With a simple check-list, operators can enhance their knowledge base and positively affect performance on the shop floor,” the eBook states.
What does this look like in practice? According to the white paper, Accounting for Operator Inefficiencies in the Metals 2.0 Environment, operators can conduct daily preventative maintenance (PM) checks in less than 10 minutes. Programs can be as detailed as a manager feels is necessary, but in a band saw environment, the following are a few key checkpoints to include:
- checking coolant levels
- cleaning saw blades of debris
- visual tests of critical tooling elements such as the feed system and lasers
- double-checking parameter settings (i.e., speed and feed rate)
Although many shops conduct PM checks at the start of each shift, there are several ways managers can schedule their PM procedures. In a recent blog, maintenance software provider SM Global offers four possible PM schedules:
- Date based: Schedule PM checks every X amount of days, weeks or months. So, for example, you can have a maintenance task scheduled every 5 business days, on every Friday, the second Monday of every third month, every January on the first Wednesday and so on.
- Meter based: There are two different meter types. In one, you schedule maintenance every time a meter reading increases or decreases by a certain amount. For example, an oil change when a meter reading increases by 3000 miles. The second type is a batch meter. You schedule maintenance after an equipment processes X number of units. For example, replace a bearing every time the equipment produces 500 widgets.
- Alarm based: You schedule a maintenance task every time an alarm condition happens. For example, an alarm could be excessive vibration on a machine. You can schedule a PM check on the machine when this alarm occurs.
- Relative to another task: Start a new maintenance task when another task completes. For example, order more coolant every time you clean your fluid/lubricant reservoir and screen (typically every 3 months).
If your metal forging operation doesn’t have a current PM program in place, you may want to consider working closely with your equipment and tooling supply partners to set up daily, monthly, quarterly, and annual PM schedules. In addition to helping you create checklists, many provide complimentary annual or bi-annual PM check-ups, which can provide more in-depth equipment diagnostics.
August 15, 2017 / best practices, blade failure, bottlenecks, continuous improvement, human capital, LIT, operator training, productivity, quality, Safety, workflow process
A top goal of every operations manager is to reduce error on the shop floor, whether it be mechanical error or human error. While 0% error rates are pretty hard to achieve, the reality is that even a small percentage of error can quickly add up.
An article from Competitive Production puts this into perspective:
“If things are done correctly 99 percent of the time, that equates to two unsafe landings at Chicago’s O’Hare International Airport each day; 16,000 pieces of lost mail each hour; 20,000 incorrect drug prescriptions each year; or 500 incorrect surgical procedures completed each week. In manufacturing, the slightest of errors, for example one-tenth of a percent, can have a significant impact on a company’s financial performance and profitability.”
When it comes to band sawing, error remains a top concern for managers. As Matthew Lacroix of LENOX explains here, fabricators and other metal-cutting shops have three main areas of concern regarding their band saw processes. “The top frustrations that we repeatedly hear from fabricators are machine downtime, blade failure, and operator error,” he tells Canadian Metalworking. “In each case, there are steps they can take within their own organizations to manage the problems.”
The white paper, Accounting for Operator Inefficiencies in the Metals 2.0 Environment, provides a few steps managers can take to reduce error in their band saw department:
- Optimize workflow. Reducing error and increasing productivity often go hand-in-hand, and taking steps to optimize workflow often accomplishes both. This typically includes analyzing equipment placement, material flow, and ergonomics. Even something as simple as adjusting the height of staging tables can make a difference. By reducing the amount of times an operator handles the material, managers can improve operator efficiency, reduce the chance for error, and improve safety.
- Implement accountability procedures. Without a paper trail, there is no way to account for errors when they happen. One-over-one verification procedures can be used to ensure that operators are following the correct procedures and running saws at the proper settings. Band saw operators, for example, could be required to sign-off on paperwork once they have set up equipment and performed the initial cuts. Another operator or supervisor can then sign off to verify that proper procedures have been followed.
- Make operator training an ongoing procedure. Most shops have multiple shifts, which means that inexperienced night-shift operators may be running the same machinery as seasoned day-shift operators. This often causes inconsistencies in quality and productivity. By instituting regular operator training, managers can level the shop floor talent and add consistency to production procedures. Managers can discuss topics such as proper blade selection and use, scrap rates, and material requirements. What other strategies has your machine shop implemented to reduce error?
December 25, 2016 / best practices, bottlenecks, continuous improvement, KPIs, lean manufacturing, LIT, performance metrics, workflow process
Lean manufacturing is nothing new. Principles based on continuous improvement, streamlining production, and machine efficiency have long changed the way manufacturers operate. Industry leaders like Jorgensen Forge have been using lean manufacturing tools like 5S and Total Productive Maintenance (TPM) for years to lower costs, improve responsiveness, and increase efficiency.
However, as stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, lean manufacturing is evolving. “Companies that ‘got lean’ years ago are focusing on continuous improvement, and a growing number of high-mix, low-volume operations are tweaking traditional methods to fit their specific situation,” the eBook states.
A recent article series published by IndustryWeek takes this idea further, arguing that lean manufacturing should be evolving. “I am convinced that for Lean to remain relevant as a strategy for improving manufacturing effectiveness it needs to evolve to the point where expert practitioners are NOT needed for most typical Lean transformations,” consultant Paul Ericksen states here in the first article of the series. “Lean shouldn’t be a mystery or black art that is only successfully conducted by an elite group of practitioners. For this to happen, additional Lean concepts, strategies, metrics, processes, and tools need to be developed.”
Specifically, Ericksen argues that the lean evolution needs to go beyond simple “tweaks” and instead, should change its current emphasis on waste elimination to one of total business performance (i.e., revenue). He calls this Next Generation Lean.
- Lean’s current focus on reducing Cost-of-Goods-Sold waste needs to be expanded to cover all waste associated with Order Fulfillment.
- Introducing an overriding strategy of lead-time reduction to Lean practice will change it from a methodology that produces isolated tactical impacts to one that delivers more comprehensive strategic transformation.
- An industry-wide, customer-focused metric for lead-time needs to be adopted to support strategic Lean practice.
- Market specific (customer-based lead-time expectations and competitor order fulfillment proficiency), build-to-demand capability is a company’s Lean end game.
- A lead-time metric could then be used to quantify a company’s current Lean status, as well as to define what it means for a specific company to be considered Lean. The difference between their current Lean status and their Lean end game goal quantifies a Lean-ness gap, finally giving Lean practitioners a concrete way to say where a company is in its Lean journey.
While Ericksen’s theory may or may not make sense for your shop, one key point is worth noting: Your approach to lean manufacturing should be continuously improving and evolving right alongside your operation. If your forging operation has been using lean manufacturing tools for years, perhaps it’s time to re-evaluate and reconsider how those tools could better serve your company.
December 20, 2016 / best practices, bottlenecks, continuous improvement, lean manufacturing, LIT, operator training, productivity, quality, workflow process
With a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—standardized processes.
In fact, according to the Lean Enterprise Institute, standardized work is one of the most powerful, but least used lean manufacturing tools. “By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement,” the organization explains here. “As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.”
As defined by iSixSigma, standardized work is the most efficient method to produce a product (or perform a service) at a balanced flow to achieve a desired output rate. It breaks down the work into elements, which are sequenced, organized, and repeatedly followed.
There are several benefits shops can gain from standardizing processes. The following are just a few:
- Reduced re-work due to errors in the production process or between operators
- Reduced wasted time looking for tools, documents, or required inputs to complete tasks
- Better, more comprehensive, training procedures for new staff and retraining of existing operators
- Improved quality, if implemented throughout the production process and focus on quality at the source
Many shops are experiencing these and other benefits of standardized processes. Hard Milling Solutions (HMS), a shop featured here in Modern Machine Shop, standardized its parameters for specific material and cutting tool combinations to manage a highly varied workload with minimal labor. “Our primary goal with this system is to ensure every programmer cuts the same way, and gets the same results,” Corey Greenwald, owner of HMS, tells Modern Machine Shop. “We want customer needs to dictate what comes out of this company, not the experience and ability of any one individual.”
Quality Industries (QI), a metal fabricator based in La Vergne, TN, have seen the benefits of standardized work processes across several business areas. “For QI, the move to standardized work created positive scenarios and brought both obvious and underlying benefits to the business,” the fabricator says here on its website. Below are just a few of the ways QI has made standardization work in its operations:
- Process Documentation for All Shifts. Historically, many of QI’s productive processes were understood only inside the heads of experienced team members. Creating precise documentation to supplement and replace this “tribal knowledge” helps the fabricator to critically evaluate each manufacturing process to ensure that the most productive sequences and work practices were being documented. In addition, the documentation ensured that a given process could be duplicated on all shifts, and in all work cells and departments.
- Reductions in Variability. Once production processes were standardized, variability in product characteristics and quality was greatly reduced. While slight variations still existed due to different machine types, makes or models or tooling types, QI says most of these variations were eliminated because of the achieved consistency of steps and sequences in both material work and downstream activities. This aspect of Standardized Work also delivered tremendous value to the customer, who could rely on consistent finished goods.
- Easier Training for New Operators. In any manufacturing environment, bringing new personnel up to speed quickly is a challenge. For QI, standardized work and well-crafted documentation simplified the process. The best process documents not only spelled out steps in clear language, but were also highly visual—with images, charts, drawings and any other helpful illustrations. This training resource provided a continuous reference for the operators and enabled a new communication system for the team. In the QI shop floor environment, team leaders and others from outside the department were able to determine the level at which each operator is qualified on machines, work cells, and specific operations.
In today’s fast-paced market, process control is essential for shops that want to stay competitive and maintain the high quality customers demand. As stated in the industry brief, “Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting,” today’s industrial metal-cutting companies can’t afford costly mistakes that can slow down or stop production. By implementing standardized work processes, many shops are finding they can not only increase productivity, but reduce variable(s?) variable overhead? and improve several other business areas that contribute to the bottom line.
Are your shop’s metal-cutting work processes standardized?
December 5, 2016 / best practices, bottlenecks, continuous improvement, industry news, operator training, Output, productivity, Safety, workflow process
Workplace safety is a priority for nearly every manufacturer. However, when industrial metal-cutting organizations need to do more with less to stay competitive, safety priorities can sometimes fall to the wayside—creating severe and costly consequences for workers and businesses alike.
Here’s the good news: According to OSHA’s “Survey of Occupational Injuries and Illnesses,” private industry employers reported 48,000 fewer nonfatal injury and illness cases in 2015 compared to the prior year. Unfortunately, the bad news is that the manufacturing industry had the highest proportion of accidents. As reported by OSHA’s Severe Injury Reporting Program, manufacturing accounted for 57% of all amputations and 26% of all hospitalizations, closely followed by construction, transportation, and warehousing. In addition, of the Top 25 industry groups reporting severe injuries, architectural and structural metal and fabricated metal product manufacturing came in at 17 and 20, respectively.
Of course, workplace injuries come with a cost—not only to employees’ health but to businesses as well. According to the 2016 Liberty Mutual Workplace Safety Index, the most disabling, nonfatal workplace injuries amounted to nearly $62 billion in direct U.S. workers compensation costs. That’s more than a billion dollars a week.
Workplace injuries also create production inefficiencies. As reported in the white paper, Accounting for Operator Inefficiencies in the Metals 2.0 Environment, a cleaner, safer work environment is a more productive, profitable environment. Often times, safety incidents may be rooted in issues such as lack of training, an unorganized shop floor, or poor workflow layout and ergonomics. Neglecting safety issues can lead to reduced output and, ultimately, a lower profit.
One way manufacturers can reduce workplace injuries is to not only make safety a priority, but to create a culture of safety throughout the organization. Tire manufacturer Goodyear, for example, reduced worldwide incident rates by 94% by creating an engaged safety culture in 49 facilities across 22 countries for its 66,000 workers.
In an interview with New Equipment Digest, Michael Porter, Global Environmental Health & Safety Director at Goodyear, said the key to building this type of culture is integration from the top down. “Starting from the highest levels of the company, we tie our EHS strategy down into our company’s overall strategy roadmap,” Porter explained. “Then that cascades down into how we operate on a manufacturing level.” This, he adds, includes everything from workforce organization and equipment care to continuous skills development.
To help create a culture of safety, there are a few strategies metal service centers can consider. Dave Stauffer, director of SBM Management, recently told attendees at the 2016 Safety Leadership Conference the eight building blocks his company has used to create a culture of safety in its 500 operating locations. The following are SBM’s top four strategies (You can read all eight here, as reported by EHS Today.):
- Employee observations. Coach and mentor employees to validate that they are doing their jobs safely. Ensure employees are wearing their personal protective equipment (PPE). Observe employees to make sure they are working effectively.
- Safety engagement. Establish rapport with employees to help reduce unsafe conditions and at-risk behavior in the workplace. Actively involve all employees in the health and safety of the workplace. Verify employees are engaging in the correct safety behavior.
- Employee recognition programs. Reward employees for safe job performance. Reinforce and recognize positive work culture. Celebrate employee successes.
- Interactive audits. Supervisors and managers should complete the observations daily and document them. Engage in conversation about safety and assure each employee has the skills, knowledge and training to perform their job safely.
The Metal Service Center Institute also recognizes the importance of safety and recently partnered with the National Safety Council (NSC) to release new safety resources optimized for the metal industry. The new tools include:
- Access to NSC safety reports
- Local access to the NSC’s Advanced Safety Certificate program
- Resources and approved model programs to help members create their own safety programs
While there is no magic formula for creating a “zero-incident” service center, industry leaders are taking steps to ensure their operations are safe. Creating a culture of safety can help identify and eliminate process bottlenecks, improve production, avoid costly injury implications, and most importantly, keep operators and workers safe.
What safety programs do you have in place at your metal service center? Do you consider your center to have a culture of safety?
November 15, 2016 / bottlenecks, continuous improvement, industry news, KPIs, lean manufacturing, material costs, productivity, root cause analysis, strategic planning
The metals industry is constantly facing challenges—high inventory levels, fluctuating raw material costs, and declining shipments to name a few. To help offset the challenges and meet customer demands, industrial metal-cutting companies have long turned to continuous improvement practices to reduce downtime and boost productivity.
In fact, continuous improvement is an essential practice for today’s metal-cutting organizations. As stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, the difference between a metal-cutting company that survives versus one that thrives is continuous improvement.
One continuous improvement tool executives are incorporating into their operations is “obeya.” As defined here in a blog from visual solutions provider Graphics Products, obeya (also spelled oobeya) is a Japanese term for “big room” or “great room.” In lean manufacturing, it is a dedicated room that is reserved for employees to meet and make decisions about any production challenges.
According to the blog, the idea behind obeya is for employees to collaborate easier and solve problems faster by having a central location to meet, share, and discuss key information. Benefits of using obeya include:
- Efficiency – Leadership can save time by brining visuals, data, and other vital resources together in one place.
- Focus – Project leaders can focus on the right issues faster by having the right team members in the same room at the same time.
- Collaboration – Employees can easily work together in real-time across disciplines, saving time and improving communication.
Like other lean practices, obeya is part of the Toyota Production System (TPS), which also includes 5S, Kaizen, and Total Productive Maintenance (TPM). According an article from IndustryWeek, obeya is also referred to as the “brain” of TPS and is often called the “Adrenaline Room” at Toyota.
“We call it the Adrenaline Room because we are trying to encourage our manager to address the day, every day, urgently, to improve the output to our customers, internal and external,” Scott Redelman, senior manager, production control and logistics at Toyota Industrial Equipment Manufacturing, told IndustryWeek. “So if we think about each process or each person—even within our four walls—as the customer, how do we aggressively have the adrenaline and the energy, the sense of urgency to quickly react and grow together to make that improvement for the customer? We have to have the adrenaline to do it.”
Industrial metal-cutting companies have also benefitted from obeya. As described in IndustryWeek, ball-bearing manufacturer Timken created an obeya at its Shiloh, N.C. plant four years ago to help meet sudden growth at the time. The company also added an obeya at its Honea Path, S.C. plant earlier this year. According to operations manager Robert Porter, the investment is paying off with productivity improvement year over year, even in down years.
Obeya, however, isn’t just placing your managers in a room and hanging charts on the wall. To ensure obeya is an effective tool, the Lean Enterprise Institute suggests managers focus on a few key issues:
- Customer complaints. Reviewing customer complaints keeps the organization focused on the customer, as well as the end product. The obeya is the space where employees can find ways to improve the process, product, and value the company offers.
- KPIs and objectives. Track key performance indicators (KPIs) and clearly display the overall objective. Have manages report on performance improvement progress and discuss ways to achieve the goal faster.
- Future changes. Post planned changes in the obeya so that everyone can start thinking about possible challenges or problems the change may create.
While there are many continuous improvement tools available, obeya has proven itself valuable. In fact, Toyota considers it one of its lean pillars. Industrial metal-cutting companies that are looking to stay ahead of the competition in today’s challenging market can experience the benefits of obeya too.
What lean manufacturing tools are you using to improve your metal-cutting operation? Is obeya one of them?
November 5, 2016 / blade failure, bottlenecks, continuous improvement, customer delivery, lean manufacturing, material costs, optimization, productivity, quality, workflow process
Process improvement strategies are nothing new to manufacturing. As an industrial metal-cutting company in today’s challenging market, chances are you’ve spent time finding ways to reduce costs while increasing output to keep up with rising material costs and customer demands.
However, with a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—process control.
Process control can help metal service centers ensure consistent quality, and minimize blade and machinery failures that can cause a workflow bottleneck. While there are many ways to implement process control, standardization is perhaps the easiest and most successful way to keep employees moving in the same direction.
Standardized practices, as defined by leanmanufacture.net, dissect larger, overall processes into simple, easy-to-follow steps that any operator can easily perform. This standardized approach allows operators to perform tasks the same exact way every time, which results in using resources, such as time and raw materials, more efficiently.
According to the Lean Enterprise Institute, standardized work “is one of the most powerful, but least used lean tools. By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement. As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.” The approach consists of three elements:
- Takt time, or the rate at which products must be made in a process to meet customer demand.
- The work sequence in which an operator performs tasks within takt time.
- The standard inventory, including units in machines, required to keep the process operating smoothly.
Benefits of standardized practices include:
- Reduced re-work due to errors in the production process or between operators
- Reduced wasted time looking for tools, documents, or required inputs to complete tasks
- Better, more comprehensive, training procedures for new staff and retraining of existing operators
- Improved quality, if implemented throughout the production process and focus on quality at the source
Not convinced such a simple approach can make a big impact? Case in point—McDonald’s, the world’s largest restaurant chain. As cited in this article by consulting firm WIPRO, McDonald’s has standardized it “manufacturing” process for hamburgers so well that most of the organization is focused on growing the business, product development and marketing.
As described here, metal manufacturer ThyssenKrupp reduced work-in-process by 40%, reduced operator movement by nearly 5,000 feet per day and improved productivity by 9% by implementing standardized work at two working stations at its Sao Paulo, Brazil plant.
In today’s fast-paced market, process control is essential for metal service centers that want to grow against competition. According to the industry brief, Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting, as the pace on the shop floor increases, metal service centers can’t afford a blade failure or costly mistakes that can slow down and stop production. Today’s metal service centers must focus on the process to identify and correct any mistakes on the shop floor immediately. By implementing standardized work, metal service centers not only gain insight into potential workflow bottlenecks, but also have a solid foundation for a continuous improvement plan going forward.
Even if your metal service center has a cutting-edge improvement plan in place, take a step back and look at your processes. Are they standardized? Have they gotten too complex? By going back to the basics and standardizing work practices, managers can optimize operations and ensure that every employee—and every process—is successful, every time.
What process controls and improvements have you implemented at your metal service center? Is standardized work one of them?
October 30, 2016 / agility, benchmarking, best practices, bottlenecks, continuous improvement, Cost Management, industry, LIT, predictive management, preventative maintenance, quality, strategic planning, workf
In today’s competitive and quickly changing market, manufacturers are finding that it pays to be proactive—not reactive—in their strategic approaches. That’s why a growing number of industrial manufacturers are starting to take a serious look at advanced technologies like predictive analytics, which allows them to not only measure performance, but to also predict and prevent future challenges.
According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, more than 500 senior manufacturing executives from around the world ranked predictive analytics as the number one technology vital to their companies’ future competitiveness. As reported here, another report from Aberdeen Group shows that 86 percent of top-performing manufacturers are already using predictive analytics to reduce risk and improve operations, compared to 38 percent of those companies with an average performance and 26 percent of those with less than stellar results.
The trend has found its way into industrial metal cutting as well. According to the LENOX Institute of Technology’s benchmark study of more than 100 industrial metal-cutting organizations, companies can gain additional productivity and efficiency on the shop floor by “investing in smarter, more predictive and more agile operations management approaches.”
What is Predictive Analytics?
Predictive analytics utilizes a variety of statistical and analytical techniques to develop mathematical models that “predict” future events or behaviors based on past data. As the Deloitte study explains, this allows companies to uncover hidden patterns, relationships, and greater insights by analyzing both structured and unstructured data.
In a manufacturing environment, companies can use predictive analytics to measure the health of production equipment and detect potential failures. However, the possibilities are virtually limitless. According to one analyst’s blog, manufacturers could potentially use software and predictive analytics to forecast potential staffing or supply-chain interruptions, such as a flu outbreak that could cause a temporary personnel shortage or even a blizzard that could disrupt deliveries.
Bearing manufacturing leader Timken has taken a different approach and is using predictive analytics to improve inventory optimization and supply chain performance in the automotive aftermarket sector. As reported by SearchAutoParts.com, Timken is leveraging sales history, registration data, and other information, along with complex analytics, to improve sales and reduce costs.
“Timken’s catalog team matches parts and vehicles, and combines that information with vehicle registration and replacement/failure rates, along with internal sales data,” the article explains. “Crunching that data using proprietary algorithms helps them predict how many parts will be needed in a given geography, and how those parts sales will fall within the premium aftermarket, economy aftermarket and OEMs.”
Common Use Cases
Because predictive analytics is an emerging technology, applications are typically specific to each manufacturer’s products and processes—as in the Timken example. However, an article from Toolbox.com describes four common use cases for predictive analytics that are applicable in most manufacturing environments:
- Quality Improvement. Improvements in databases and data storage and easier-to-use analytical software are the big changes for quality improvement. Standard quality improvement analysis is being pushed toward less technical analysts using new software that automates much of the analytical process. Storing more information about products and the manufacturing process also leads to analysis of more factors that influence quality.
- Demand Forecast. Predictive analytics takes historical sales data and applies forms of regression to predict future sales based upon past sales. Good predictive analytics modelers find additional factors that influenced sales in the past and apply those factors into forecasted sales models.
- Preventative Maintenance. Predictive analytics increases production equipment uptime. Knowing that a machine is likely to break down in the near future means a manufacturer can perform the needed maintenance in non-emergency conditions without shutting down production.
- Machine Utilization. Predictive analytics applications for machine scheduling combines forecast for demand with product mix to optimize machine utilization. Using new predictive analytics techniques improves accuracy.
While there is no question that predictive analytics is still new to many ball and roller bearing manufacturers, industry leaders know that proactive strategies are key in today’s uncertain market. Finding ways to anticipate future events and reduce unplanned downtime can not only help your operation gain efficiency but, more importantly, help you stay competitive.
October 15, 2016 / best practices, bottlenecks, continuous improvement, industry news, LIT, predictive management, preventative maintenance, productivity
While a full economic recovery is still uncertain, manufacturers are finding ways to gain a competitive edge and improve productivity. New advancements and technologies, including “smart” manufacturing and the Internet of Things (IoT), are helping the manufacturing industry do just that.
One way metal-cutting companies are optimizing their overall operations is by using technology to improve maintenance programs. As cited in this eBook, 5 Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, machine breakdowns are one of the top causes of lost productivity, and when productivity suffers, so does the bottom line. While many manufacturers have realized success with tried and true preventative maintenance initiatives, which ward-off an inevitable breakdown, two technologies—predictive maintenance (PdM) and CMMS— are helping manufacturers improve overall maintenance even more accurately.
According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, predictive technology, specifically, holds the most potential for manufacturers. According to the study, more than 500 executives from around the world ranked predictive analytics as the number one future advanced manufacturing technology. IoT, smart products and smart factories, and advanced materials were also considered critical to future competitiveness.
Unlike preventative maintenance, which uses anticipated and planned downtime to prevent unplanned breakdowns and minimize cost impacts, predictive maintenance (PdM) aims to predict breakdowns before they even occur. Software and sensors collect data, and algorithms identify not only the anticipated failure, but also calculate the probable time that failure will occur.
In fact, several metals leaders are already reaping the rewards of predictive maintenance to repair or replace parts before failure and eliminate both planned and unplanned downtime, as reported in this blog post.
Another technology helping industrial metal-cutting companies improve maintenance is CMMS, or a computerized maintenance management system. While PdM tools provide powerful data, most experts agree its information’s value is limited without the context provided by CMMS software. CMMS software tracks and schedules maintenance tasks by analyzing data to identify bottlenecks before they even take place.
According to an article from MRO Magazine, CMMS can improve maintenance on the production line as it reduces downtime and repairs, improves the lifecycle of equipment and forecasts replacement, and reduces rework and manufacturing scrap—all while providing crucial data for future decisions and improving scheduling and planning.
What does this look like in practice? As described here in an article from Better Buys, one CMMS solution included data-entry fields for technicians to input degradation values manually. The system would provide a graph indicating how many months were left until failure and then give a plan for replacement on a set date if the equipment continued being used excessively.
Making the Switch
In most cases, larger manufacturers have been the only ones looking into PdM and CMMS-based maintenance programs. However, as technology advances and competition intensifies, many smaller companies are starting to invest in the technology as well.
There is no question that making the transition from a paper-based maintenance system to a digital one can be overwhelming, especially for smaller metal-cutting organizations. An article from IndustryWeek provides a few tips for simplifying the transition over to CMMS:
- Form a team. Make sure a small team oversees the transition. Designate a lead planner and scheduler to define the processes (such as what equipment and data to collect). The team should understand how the company processes information, how it organizes workflows and analyzes key data.
- Data download. A CMMS system is only as good as the data in it. Determine how accessible that data is and establish a baseline of how much to collect before making the switch. Once up and running, don’t stress over every data point. Add as you go to bulk-up your data inputs.
- Tech knowledge. Consider how comfortable your team may or may not be with technology. Some may not have any computer experience. A basic computer training course can quickly ease worries.
- Tech training. In addition to basic training, the entire maintenance team should be trained on CMMS best practices. Develop step-by-step guides with screen shots at each workstation to help with the transition.
- Codes. To help track performance and maintenance trends, start with 10-15 industry-standard codes when setting up maintenance activities. Consistent problem and failure codes can provide valuable information when it comes time to replace equipment before failure.
Technology is no doubt changing the manufacturing landscape, and today’s industrial metal-cutting companies need to ask themselves if they’re willing to do what it takes to prepare for the future. Investing in new technologies and maintenance programs may be one way to keep the competition at bay while optimizing production for future demand.
What technology investments is your organization using to optimize your maintenance department?
September 30, 2016 / best practices, bottlenecks, continuous improvement, KPIs, lean manufacturing, LIT, operations metrics, performance metrics
Most companies that have adopted lean manufacturing strategies know the importance of measurement. When a manufacturing operation can quantitatively assess their performance, it can start to make significant improvements and set realistic goals to stay competitive. In fact, according to a series of case studies on high production metal-cutting companies, measurement was noted as a key best practice.
However, metrics are only meaningful if they are tied to strategy. That’s where key performance indicators (KPIs) come into play. Unfortunately, some companies fail to understand the purpose of KPIs and, therefore, are unable to take full advantage of the benefits they can provide. All KPIs are metrics, but not all metrics are KPIs. Understanding the difference is critical.
What are KPIs?
KPIs are the measurements selected by a company to give an overall indication of the health of the business. KPIs are typically dominated by historical, financial measurements, but most experts agree that they are more valuable if they also include operational measurements. Unfortunately, choosing the right KPIs to track isn’t as easy as it sounds and takes careful consideration.
There are hundreds of KPIs that can be measured, but experts suggest that companies focus on a select few. According to the University of Tennessee’s Reliability and Maintainability Center (RMC), manufacturers need to make sure all KPIs are aligned with the company’s business goals and strategy. Tasks should be explicit and all actions should support a larger goal. When it comes to KPIs, it is quality—not quantity—that matters.
Choosing the Right KPI
Because they are tied to strategy, KPIs will vary by organization. However, an article from Red Lion outlines seven of the common production KPIs used on automated plant floors:
- Count (Good or Bad). An essential factory floor metric relates to the amount of product produced. The count (good or bad) typically refers to either the amount of product produced since the last machine changeover or the production sum for the entire shift or week.
- Reject Ratio. Production processes occasionally produce scrap, which is measured in terms of reject ratio. Minimizing scrap helps organizations meet profitability goals so it is important to track whether or not the amount being produced is within tolerable limits.
- Rate. Machines and processes produce goods at variable rates. When speeds differ, slow rates typically result in dropped profits while faster speeds affect quality control. This is why it is important for operating speeds to remain consistent.
- Target. Many organizations display target values for output, rate and quality. This KPI helps motivate employees to meet specific performance targets.
- Takt Time. Takt time is the amount of time, or cycle time, for the completion of a task. This could be the time it takes to produce a product, but it more likely relates to the cycle time of specific operations. This KPI helps manufacturers quickly determine where the constraints or bottlenecks are within a process.
- Overall Equipment Effectiveness (OEE). OEE is a metric that multiplies availability by performance and quality to determine resource utilization. Production managers want OEE values to increase because this indicates more efficient utilization of available personnel and machinery.
- Downtime. Whether the result of a breakdown or simply a machine changeover, downtime is considered one of the most important KPI metrics to track. When machines are not operating, money isn’t being made so reducing downtime is an easy way to increase profitability.
Making it Count
For many managers, the above list and the resulting data may feel overwhelming. Others may be so afraid of missing something that they end up measuring more information than necessary. For example, research from the Advanced Performance Institute finds that less than 10% of all the metrics that are collected, analyzed and reported in businesses are ever used to inform decision-making. That means 90% of the metrics are wasted, or worse, used to drown people in data while they are thirsting for insights.
The question then becomes: How many KPIs are enough? Or, even more so, how much data is too much?
An article from IndustryWeek suggests that companies follow the “Rule of Three,” which involves dividing all KPIs into organizational categories and then focusing on the top three metrics within that category. This is a good way to keep managers focused on improvement without data overload.
If you are still unsure where to place your focus, the University of Wisconsin-Madison recommends that manufacturers in 2016 zero in on KPIs that fall under the following four themes:
As a high production manufacturer, odds are that your ball and roller bearing operation is already tracking some of the above KPIs. However, if that is not the case, now is the time to start identifying a few to measure. If the process feels overwhelming, do some research, ask your supply chain for help, and get started. In the words of quality expert H. James Harrington: “Measurement is the first step that leads to control and, eventually, to improvement.”