21 May Understanding your manufacturing performance
When it comes to any business investment whether it’s in regard to technology, staff, training or otherwise, organisations will look to measure performance levels and understand overall ROI. This can, of course, be reviewed in terms of monetary figures, but it should also be measured by productivity levels and overall efficiencies, which can be measured by your maintenance management systems and can help your business to grow sustainably. For our blog this week, we’re discussing the value of measuring your manufacturing performance to help shape a roadmap to business success.
Percentage planned vs emergency orders
Research shows that unplanned work can cost up to nine times more than planned work thanks to reduced asset insight and a poor maintenance process, meaning it can have a negative impact on your overall bottom line. Therefore, it’s essential to understand your Planned Maintenance Percentage (PMP) figures. For example, if 300 out of 400 hours are spent on planned maintenance, your PMP figure is 75% or 3:1 in terms of ratio. The aim is to reduce any unplanned work such as breakdown or corrective maintenance, ensuring you can reap the rewards of planned manufacturing delivery. This can help boost performance levels and improve budget control, with the goal of extending the lifecycle of assets.
Overall Equipment Effectiveness
One key area for analysis and one that is often used as a measure for plant productivity is Overall Equipment Effectiveness (OEE), which is particularly pertinent for shop floor activity. This can help your organisation to measure speed and quality of production, as well as understanding any system downtime therefore minimising costs but maximising profits. This can be used to monitor one piece of equipment or an entire production line, depending on your requirements. Insight from Industry Week demonstrates that the powerful data that OEE systems can provide can help to improve real-time analysis to monitor progress and make an incredible impact on bottom line savings. However, the key is understanding and interpreting this data in order to implement it effectively.
Enhanced the customer experience
Performance shouldn’t simply be measured on your systems alone but should also be determined by customer relationships. Great customer experience is essential and will demonstrate that your organisation can continuously meet client needs in a highly competitive market. The key to success is on-time delivery time and time again, especially as customers are demanding better service from their manufacturers and systems providers than ever before. While technology has allowed manufactures to create better products faster than ever before, customer standards have increased and the phrase, ‘the customer is king’ has been utilised for quite some time. Communication is key – listen to your customers, understand what they want, and you can ensure that you get delivery right on the first occasion, minimising waste and meeting those all-important deadlines.
Manufacturing measurement is crucial, utilising metrics which can act as a guide to success, demonstrating positive examples and failures which can also act as a roadmap to change for the better. Any measurement strategy is also key when demonstrating the value of new systems to decision makers and those utilising your products. For example, OEE systems can be essential when looking to maximise efficiencies, helping to monitor speed and system performance. This is where Idhammar can help. For more information about Idhammar’s OEE, MMS or WCM systems, contact us today on email@example.com or call us on 0117 920 9400.