A lot of people have been talking about production tracking lately, so now is a good time to talk more in depth about some of the issues involved. With increased demand for the handling of metrics, levels of complexity and ever-changing conditions, manufacturers have been moving toward more automation of data handling on production floors. They are using systems which can integrate with their current software that require less training and reduce the need to mine data from one system to the next (which add another level of training and wasted time). And having multiple levels of different software adds an extra interface that forces someone to continuously check the output and verify the correct info is being sent. If a data field is incorrectly sent or received into a formula, the impact could be devastating.
Connected technology is driving rapid innovations in manufacturing along with advances in robotics and other machinery automation. Some of the equipment is being connected in the cloud – resulting in the encompassing term, the Internet of Things (IoT). But it is this connected technology where our focus needs to be, and there we can understand how to use metrics in these systems as part of our Lean manufacturing operations.
Manufacturers who have a handle on their analytics/metrics are better positioned to prevent errors and more efficiently resolve ones that do occur. As a result, by having a handle on your metrics, you increase potential to increase efficiency and resulting gross margin. So how important is it to have updated metrics for your company? In today’s manufacturing, it is critical – a metric used for equipment that might have been manually operated in the past is not the same as one that is automated. Metrics used for the movement of material in manual systems are not the same as those used for automation.
Try this: get out your stopwatch and look at what you are doing today. Take some quick measurements and see where your metrics line up with what you have recorded. The results may surprise you.
Even if you are crunched for time, as many operations are, getting accurate metrics is still important. There are resources available from experienced experts who are actively updating information with live data. Additionally, you want to make sure you are getting information from sources such as the manufacturer of the equipment and combine that with actual time studies.
The next step to look at, if you are not already, is using manufacturing ERP (Enterprise Resource Planning) systems in your operation. As I mentioned above, more manufacturers are moving in this direction using software from their supplier to manage component tasks in the plant. An effective ERP system with the right metrics can help all areas of your operation run efficiently and allow you to effectively schedule to maximize machine capacity. When training managers and supervisors, I always stress the importance of Scheduling and Batching in an operation. Both functions can allow you to run efficiently or will run your operation in the “red”. With connected technology of the equipment we use and the manufacturing ERP systems we have, we can truly manage scheduling in a more effective manner. Component manufacturers have the ability to determine the demand they have and what assets are required to complete the work. The next step is scheduling this work in a way that balances the demand so you are maximizing machine capacity . . . but that is a topic for another day!
If your metrics are not correct at the start, then scheduling/batching will never be correct and efficiency in the plant will suffer. Sometimes it can be confusing moving from one system (ERP) to another, but it certainly does not have to be. Simple tweaks to what you are doing today or adjustments to your current metrics can be made. There are two measures (among several others) that I emphasize in evaluating the overall effectiveness of a metric and any changes to them: (1) does everyone including the associate on the floor understand the metric, and (2) does it tie back to your P&L?
Smart manufacturing and connected technology are transforming our component operations and changing how we not only manufacturer but deliver our product. Making sure our metrics are kept up to date with these changes and ensuring our operations are staying in step with changing technology and plant ERP systems are critical, but not something to fear. (As a side note, this is one of the great reasons SBCA started the Information Technology Committee.) Those of us who have been supporting these systems for some time are here to help when you are ready to make the change.
On a lighter note
I had the pleasure to tour the plant of Rehkemper & Son in St. Rose, IL recently. As a young boy, I remember touring through their former plant when Jerome Rehkemper and my father, Don Hershey, would talk about trusses. Today, Rehkemper is run by Jerome’s son, Mike (who is about my age), but Jerome remembered me and was quick to let me know he is still active in the company. This is yet another example of one of the many family institutions in our industry. I am a product of a fathers-kids company and several of my clients are father-son/father-daughter or father(s) and kids-run companies, and I am proud to be associated with each one of them. I hope to share more photos in the future of these family-run companies.
Ben Hershey is the CEO of 4Ward Consulting Group, LLC, the leading provider of Lean Management and Manufacturing Consulting to the Structural Component and Lumber Industry. A Past President of SBCA, he has owned and managed several manufacturing and distribution companies and is Six Sigma Black Belt Certified. You can reach Ben at ben@4WardConsult.com or 623-512-6770.