In every manufacturing process there are two elements; value added, and non-value added. Both cost time and money, but only one will yield returns. Machine monitoring systems connected to IIoT (Industrial Internet of Things) technology is the best way to capitalize on value-added innovative production processes.
Recently, we had the pleasure of participating in the speaker series with the Excellence in Manufacturing Consortium to discuss the 4 Myths of IIoT and how Industry 4.0 is collecting real-time data on older analog machines.
Business owners interested in Industrial Internet of Things (IIoT) are looking for ways to explore an asset performance management system for engaging employees, connecting machines and increasing productivity. In today’s world, attracting, retaining and empowering employees through new technology must be a core focus.
Let’s take a few moments and break down the 4 myths of Industry 4.0 and IIOT.
The political landscape of 2017 has been a portrait of peaks and troughs. Brexit in the UK presents potential possibilities for trade deals with the US and beyond, and (love him or hate him) President Trump’s tempestuous first year in office was preceded with promises to rebuild North America’s industrial sector. Whether his ambitious promises yield fruit is yet to be seen, and it’s rather too easy to get lost in the crowd hysteria that big change conjures. However, significant transformation brings significant opportunities, and in the manufacturing sector particularly, we’ve seen increased adoption of digital technologies, harboring a new dawn in manufacturing processes.
In the same way that the Industrial Revolution had a major impact on manufacturing and society, digital transformation within manufacturing houses is set to change the way we produce and cater to our customers. Not since Henry Ford developed mass-production manufacturing have we seen changes like those that 2017 has exposed us to; but “digital” represents a move away from mass-production, toward a leaner, less wasteful, bespoke, and customized production approach.
However, only 5% of manufacturing executives are satisfied with their existing digital strategies, or even recognize the importance of this digital revolution. Digitization helps to overcome the “Seven Wastes” of lean manufacturing by making more affordable the bespoke production approach; as opposed to over-producing, under-engaging employees and keeping customers waiting while we produce against demand.
Internet of Things (IoT)
At the heart of the change in manufacturing processes in 2017 was the implementation of IoT processes, providing live reporting of incremental production data, defect and damage.
By effectively connecting our analog (and digital) machines to monitoring networks, companies have found an essential, competitive edge in consistency, efficiency, employee engagement, and instant visualization of project progress; yielding benefits to the manufacturing process and to the customer, as the price of wastage drops as a result of digital monitoring.
Industry 4.0 and mass customization
Scary as it sounds, Industry 4.0 presents a reverie of the interconnected factory, and this has developed exponentially in 2017. Machines are online and capable of making decisions.
Now, don’t run for the hills, here – this is good! Industry 4.0 presents a hybrid approach of actual and virtual content-producing warehouses, freeing up workforce to focus on mass customization which can directly react to consumer demand.
IoT and Industry 4.0 are developing the way we interact with our customers post-sale, by providing immediate and consistent support online.
AI is nothing new – IBM’s supercomputer defeated the world’s best chess player over ten years ago, after all. Advanced algorithms are collecting data on the factory floor, performing skilled labor, and predicting consumer behavior, so that we, the manufacturer, can better cater to their needs. Smart factories can increase production capacity by 20% by gleaning live information from integrated IT systems. And FreePoint Technologies can help!
Quality becomes more consistent as machine learning determines the factors affecting service and quality of product.
Manufacturing continues to be an essential contributor to Canada’s GDP; providing 1.7 million quality, well-paid jobs, and contributing over 10% of Canada’s overall GDP (around $174 billion).
The manufacturing industry, therefore, has massive potential for strengthening Canada’s economic future. We have the skills, innovation and exports of more that $354 billion each year, which represents 68% of Canada’s entire merchandise exports. Competition is healthy and success breeds success: where our industry grows, we attract new investment.
Growth is dependent upon continued innovation, and the more we adopt new technologies, the more our healthy manufacturing sector continues to grow.
The following case study demonstrates how FreePoint Technologies has successfully helped a customer increase efficiency by 69% over a one-year time span and saved them $325/day.
The customer is a modern machine shop located in the border region in Mexico. The shop has 4 Electrical Discharge Machines (EDM) that are critical to the company’s production. The following figures demonstrate the impact of FreePoint Technologies’ system.
The image below (the before scenario) shows pertinent productivity information from these 4 machines from a typical day in October 2015. The blue bars illustrate the EDM machines’ run times for a 24 hour period and the white gaps indicate the setup time between each run. Both the run (blue bar) & setup times (white bar) vary depending on the job. The shop, in the before scenario, required 24 hours of scheduled production time to produce a total of 43.5 hours of “value adding” activity using the 4 machines on that day.
The screenshot below illustrates the exact same 4 EDM machines shown one year later (October 2016). Similar to the previous scenario, the blue bars still vary in accordance with the jobs being run on each machine, however, the setup times (the white gaps between the blue bars) are now consistently smaller than the 2015 snapshot. The result from integrating FreePoint Technologies’ system is that less time is being lost between productive “value adding” periods. For the customer, this means that more value adding activity (specifically 57 hours on this day) occurred in less scheduled production time (two 8.5 hour shifts vs. three 8 hour shifts). All of the recovered lost machine time was then aggregated, and the machines were freed up for an entire shift. Not only does this decrease production cost for parts being produced, but it increases the plant’s capacity and ability to take on more work.
The image below compares the month of October 2015 to the same month, one year later in 2016. As illustrated in the graph, every day of the month in October 2015 had machine activity, meaning that employees were in the shop running the machines. In 2016, the machine activity occurred only on weekdays, freeing up most weekend shifts as well. This allowed the customer to increase their capacity and take on more business. The machine’s efficiency went up from 33% on a typical 24 hour day in 2015 to 56% on a typical 17 hour day in 2016 representing an increase of 69%.
At that rate of productivity improvement, the system as implemented paid for itself in 20 days, and the cost of the ShiftWorx subscription is recovered in the first day of every month. It’s hard to beat that kind of ROI!
For more information on how a FreePoint system can benefit your plant, please contact firstname.lastname@example.org