Real-time Visibility of Quality Metrics Drives 5-Point Increase in OEE
Did you know that manufacturers with visibility to real-time metrics in manufacturing have a higher average OEE (Overall Equipment Effectiveness) than those who don’t?
According to the LNS Research Report: “Big Data – Driving Quality Intelligence at the Speed of Manufacturing,” the difference is significant: 5 percentage points higher. You can request your copy of this report here.
How much would a 5-point improvement in efficiency, effectiveness, and quality make to your bottom line?
From abstract research to real life
I was thinking of that statistic when I got an email recently from a former client. Ralph Haynes retired recently from a 32-year career as Operations Manager, Quality and Packaging, for a major international health and beauty manufacturer. Ralph has been a GainSeeker user for more than 20 years. When we learned he was retiring, we asked him to reflect on his experience. He describes perfectly how real-time metrics impact business performance:
Quality and data are directly connected. Both are vital to any company’s survival and success.
Data integrity is everyone’s dilemma. Pure data is found at the source.
The source is where the work takes place – but the secret to good/accurate data is the ease/simplicity of collection ( . . . and paper tracking never accomplishes complete accuracy. The more complex the manual data tracking, the more likely it will have gaps).
Not only is Hertzler a conduit for collecting accurate quality data, the flexibility of its data summary features bring the data to life.
GainSeeker delivered the following savings across 7 filling lines in the following 3 steps:
- The data drove overfill reductions >$200,000 the first time and the detail of the data provided the documentation of savings (overfill averages and ranges were recalculated specifically for each filler and operators trained on specific targets for each formula).
- The 2nd pass overfill reductions >$125,000 (resulted once the filler operators were trained on setting specific targets and using statistical process control to maintain targets – not adjusting the fill weights each time a weight at the lower range was taken).
- The 3rd pass overfill reductions> $75,000 (came from lowering the targets a 2nd time once the overall filling range had been tightened due to good process control).
Now the software maintains the fill weight process control by allowing quick review of the data to determine where the loss is (filler set-up, operator training, individual nozzle variation outside acceptable limits, or bulk product variation outside acceptable limits).
Ralph’s comments tell a great story about how real-time metrics actually work to drive improvements to the bottom line. This isn’t smoke and mirrors; it is pragmatic problem solving.
What about your situation? How does real-time data – or the lack of it – impact quality, efficiency, and throughput? How does that impact costs, customer satisfaction, and your reputation in the marketplace?
The LNS Research Spotlight “Big Data: Driving Quality Intelligence at the Speed of Manufacturing” provides great insights into how other manufacturers are addressing these questions. Please download this free report now.